Increased Cyber Risk Leads to more Cyberinsurance

Insurance Journal reported on June 15 that a recent increase in corporate security breaches is pushing some many companies to opt for cyberinsurance for increased risk mitigation. The article notes that the US Senate, the International Monetary Fund, Lockheed Martin Corp., Citigroup Inc., Google, and Sony Corp. are among the various institutions that have experienced cyber attacks. When a cyber attack occurs, cyberinsurance can cover things such as civil suits, fixing computer systems, providing identity theft services to customers, fines from governments and regulators, or civil suits. In addition, cyberinsurance can cover mundane things that are necessary in such an event, such as sorry letters to customers.

However, with an average data breach claim of $7.2 million in 2010, insurance companies carry exclusions for things such as us incidents involving unencrypted laptops, computers that don't receive regular updates, etc. Unfortunately for now, companies offereing cyberinsurance are having a difficult time regulating the industry, because there are no set standards, unlike the auto industry where it is possible to require people wear a seat belt. Insurers, however, are confident that that will change.

For more information, take a look at how Travelers Insurance manages CyberRisk, or call today at 508-540-2400.

Texting While Driving Could Raise Your Auto Insurance

Back in January, we posted an article about the dangers of texting while driving. As we mentioned, not only is texting while driving dangerous, it is also currently illegal in 30 states, including Massachusetts, and many states are looking to join those that have already made it illegal. In Massachusetts, using any kind of mobile communication (including using hands-free calling) is illegal for operators under the age of 18; the first offense results in a 60 day license suspension, a $100 fine, and requires an attitudinal course. Fines and license suspensions only increase from there. For drivers over the age of 18, texting while driving is illegal, and an initial offense results in a $100 fine. Second and third offenses result in $250 and $500 fines. For a full list of all the offenses, check up on the Safe Driving Law, which was enacted on September 30, 2010.

Although texting while driving in Massachusetts is considered a civil offense and not a moving violation, in some states, such as Connecticut, texting while driving is considered a moving violation and can result in increased insurance rates. While you're traveling this summer, stay safe and be aware that many states have different laws on the legality of texting while driving, and whether or not it counts as a moving violation.

Planning Your Vacation Away from Home

As the summer season rolls into gear and families begin making plans for vacation, make sure to take a look at some of our tips for avoiding problems while you're gone, especially if you're leaving for an extended period of time.

• Suspend mail and newspaper deliveries.
• Arrange to have your lawn mowed and use automatic lighting timers to discourage break-ins.
• Adjust your thermostat.
• Arrange to have a friend, neighbor, or family member to spot check while you're away.
• Unplug non-essential electronics and appliances, such as computers, lamps, clock-radios, etc.
• Turn off your water; doing so will stop a potential minor leak from turning into a major flood.
• Leave a set of car keys with a neighbor or friend if you leave a car behind, in case it might need to be moved.
• If you have an alarm, make sure someone you trust has access to the cancellation codes. Notify the fire department and police department that you will be away and give them your trusted friend's contact information so that they know who to go to for problems with the house.

Stay safe, enjoy your vacation, and have a great summer!

Stay Safe While Driving in the Rain

While the bulk of the rainy spring season may be over, it's always important to keep in mind safe driving tips, especially, with Cape Cod's unpredictable weather. When driving in the rain, it's safe to drive similar to how you would in snow conditions.



When navigating wet roads:

• Slow down by 5 miles per hour
• Give the vehicle in front of you twice as much distance as you normally would.
• Pull over to the side of the road for a few minutes if heavy rain makes it too hard to navigate.
• Keep in mind that roads are typically the most slippery during the first 10-15 minutes of rain, as oil and other pollutants can mix with the rain water and make the roads more slick.

If you get stuck in a hydroplane, follow these guidelines:

• Ease off the gas
• If you begin to swerve, turn in the direction of the skid
• If you have antilock brakes, apply the brakes firmly; don't pump them
• If you don't have antilock brakes, practice threshold braking: apply the brakes at a medium pressure so that you slow down, but not so hard that you enter a skid

Reporting an Auto Insurance Claim

As the summer season arrives and traffic increases on Cape Cod, the risk of a car collision naturally increases. Murray and MacDonald Insurance Services wishes you a safe and enjoyable summer season, but should you need to report an automobile claim, keep some of these tips in mind:

While there is a range of automobile insurance options, some of the more common insurance claims include liability, collision, and comprehensive.

If you are found at fault for a car accident, liability insurance covers the cost of repairing property damaged in the collision, including buildings and vehicles, as well as medical bills that may be associated with the collision.

A collision claim is a car insurance claim in which your car was damaged as a result of a collision, which is not necessarily limited to collisions with other vehicles. Collision claims may include solo car accidents, for example, in a case in which you may have run into a telephone pole or a building.

A comprehensive claim is for any damage or loss to your car that is not a result of a collision. Vandalism and theft are some of the more common incidents that result in a comprehensive claim.

If you've suffered a loss or damage to your vehicle, you should contact your insurance agent. Remember, if you need to contact Murray and MacDonald Insurance Services, we are open from 8:30AM-4:30PM on Monday-Friday, and our phone number is 508-540-2400.

If you wish, you can contact your insurance company directly. You can find a list of insurance companies that Murray and MacDonald Insurance Services does business with here. Keep in mind that many insurance companies now allow you to submit claims online.

When reporting a collision claim, make sure you have as much of this information as possible:

• Date, time, and location of accident
• Information from the other driver, including name, address, phone number, and driver's license number.
• The current location of your vehicle and whether it is drivable.
• Information regarding other vehicles involved, including make, model, VIN, and license plate number.
• Insurance information from other parties involved, including the carrier and policy number.
• Contact information from any law enforcement agencies or witnesses that were at the scene.
• If possible, take pictures with a disposable camera or a cellphone of the vehicles involved, including pictures of damaged areas and the license plates of the vehicles involved.

When reporting a comprehensive claim, make sure you have as much of this information as possible:

• Details on the loss or damage, including time, date, and location.
• Current mileage of your vehicle and options included with your vehicle in order to determine the current value of your vehicle.
• Current location of your vehicle and whether it is drivable.
• Contact information of the financial institution that financed your vehicle.
• Contact information from any law enforcement agencies or witnesses that were at the scene.
• If necessary, take pictures of the damaged areas of the vehicle.

Have a safe and enjoyable summer, and remember, should you need any assistance or should you need to report a claim, you can contact Murray and MacDonald Insurance Services at 508-540-2400, at murmac@mmisi.com, or by visiting our website at www.mmisi.com.

Inexperienced Operator Discounts

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Many insurance companies offer student discounts, driver training discounts, and away-at-school discounts which help clients save money when they add their teenage son or daughter to their insurance policy. It's no secret that teenage drivers are expensive to add to insurance due to their inexperience and high percentage of crashes per total teenage drivers.
Arbella Insurance recently announced an account credit that will benefit clients with teenager operators. Check with us to see if you qualify.

Preparing for a flood disaster

According to FloodSmart.gov, floods are the #1 most common natural disaster in the United States. In the past ten yeas, the National Flood Insurance Plan has paid out nearly $30 billion in claims as a result of flooding, with an average claim of about $50,000. While many people think that they are in the clear because they are not in a high risk area, FloodSmart notes that 24.4% of National Flood Insurance Plan claims are filed in moderate-to-low-risk areas, which is why it is essential to be prepared for a flood situation, regardless of your level of risk. Even if you think you're not at risk, it's not difficult to find accounts of flooding across Massachusetts, like the spring flood that affected Massachusetts a year ago. 25% of all businesses that close during a flood never re-open their doors, because of inability to deal with post-flood expenses. Don't let your business be one of those 25%, and don't let a flood ruin your personal or business life! Take a look at some of our tips in order to prepare yourself for a flood.

When do floods happen?

It's important to note that floods don't simply happen because of excessive rain. There are a multitude of other factors that contribute to flooding. Take a look at FloodSmart's website to see what sorts of conditions cause flooding. For Massachusetts residents, take note of heavy rain and snowmelt. Also keep in mind that many areas around Cape Cod are very close to sea-level and that tidal surges combined with heavy rain can cause major flooding.

Preparing for a flood

First, ensure that you have appropriate flood coverage. Remember, flood damage is not included in homeowner's insurance! Next, learn your flood terms. For example, recognize that a flood watch means a flood is possible, while a flood warning means a flood is in progress, or will happen soon. When you think flooding is possible due to extreme weather, keep up-to-date with the weather, or check NOAA's website for flood information. Ensure that you know where to turn off utilities in case of flooding. Put together a kit with bottled water, food, clothes, flashlights, a whistle, and other essentials. Ensure that your house is built with proper safety standards; take a look at FEMA's guidelines to get an idea of what you should be looking for.

During a flood

Preceding or during a flood, make sure to secure outside furniture. Turn off your utilities if instructed to do so, and avoid leaving your house, unless instructed to evacuate. Avoid walking or driving during a flood, as moving water can sweep pedestrians off their feet. Keep in mind that six inches of water is enough to stall many vehicles, one foot of water will float many vehicles, and two feet of rushing water can carry many vehicles, including SUVs. 

After a flood

Remember that tap water may have been contaminated; listen to local reports to learn if the water is safe for drinking. Avoid floodwaters, as they may contain contaminants, such as gasoline. Remember that structures and roads may have been compromised from floodwaters; use caution when driving or approaching structures and roads where floodwaters have receded. Stay away from downed power lines and report them to your electric company. Service damaged septic tanks, and clean and disinfect items affected by floodwaters, as they may have been contaminated by floodwaters. If you experienced major damage due to flooding, read FEMA's information on coping with flood damage.

Call today if you need to report a claim, or if you would like to learn about flood insurance, at 508-540-2400.

Ice Dam Claims with Arbella Insurance - What To Do

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1. Protect the property from further damage
2. Make reasonable and necessary repairs required to protect the property
3. Keep an accurate record of repair expenditures
1. Try to photograph the damage (with your phone, digital camera, etc)
2. Obtain an estimate to repair the damage

note: wait until the water stops coming in before obtaining the estimate



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 If there is interior water damage from an ice dam, Arbella Insurance will pay for reasonable costs incurred to remove snow or ice from the roof to protect the property from further damage. Ice dams can be removed from a home; however the process can place the roof and person removing the ice dam at serious risk. We recommend that customers hire a professional who has the equipment and expertise to do the job safely. Preventative roof maintenance is the responsibility of each property owner, and for this reason, snow or ice removal is not covered under the homeowner's policy.

Arbella will assign all claims to Arbella claim service specialists and they will contact your customers as quickly as possible.

Here is a detailed explanation of ice dams that you may find valuable for prevention or early detection.

note: the above information was brought to you by the claims department of Arbella Mutual Insurance

Winter Home Protection Tips

Massachusetts is several months into its winter season, yet the snow keeps on piling on. With some of the most snow that Massachusetts have seen in years, it's important to keep in mind some tips to keep your home and business safe and protected from the elements. From heavy snow accumulation to water damage and  bursting pipes, there are a range of potential dangers to look out for.

Firstly, heavy snow accumulation can pose a threat both as it builds up and as it melts. 

• Watch out for snow accumulation on the leeward (downwind) side of your roof. Allowing heavy snow to accumulate can lead to roof damage. One of the most common options is to use a snow rake to easily scrape snow off the room from the safety of the ground. If you are unsure of the best practices for your particular roof, consider contacting a roofing contractor for a consultation.
• Make sure to remove snow from basement stairwells, window wells, and walls, as melting snow can lead to flood damage of your building.
• Keep your attic well ventilated to maintain a temperature close to that of the outdoors. If your attic is warmer than the outdoors, snow on your roof can melt and drip down to gutters, where it can refreeze and cause ice dams.

Extreme winter conditions can also lead to water damage. If your building has suffered from water damage as a result of melting snow and ice, make sure to call us at 508-540-2400 to report a claim.

• Make sure the building is safe to enter and/or re-occupy.
• Turn off the electricity and don't use electricity until it is safe to do so.
• Secure the exterior to ensure that additional water damage does not occur. This can mean removing snow around the exterior of your building, boarding up broken windows, making temporary roof repairs, and sealing cracks.

Once it's safe to begin cleanup:

• Disconnect all electronics and move them to a dry and safe location.
• Remove as much standing water from the building as possible. Try using a wet vacuum to suck up the water.
• Remove water-damaged materials.
• Ventilate the building with fans and dehumidifiers.
• If necessary, contact a water removal company.

An ice dam is the accumulation of ice at the edge of a sloped roof, as a result of melting snow on the roof refreezing at the edge of the roof. If enough water or ice builds up, water can seep into your attic or down the inside of your walls and cause water damage.

• As  mentioned above, ensure that your attic is properly ventilated, so that the attic remains at a cooler temperature, preventing snow from melting on the roof.
• Clear gutters of all leaves and debris.
• Ensure that the attic floor is well ventilated to minimize heat rising from residential areas of your building into the attic.

Bursting pipes occur when a pipe freezes and water pressure builds up between the ice blockage and the closed faucet. Pipes in attics, outside walls, and crawl spaces are particularly vulnerable to cold temperatures and freezing.

• Make sure to properly insulate pipes in the above mentioned vulnerable areas.
• Ensure that outside walls are properly sealed from cracks and holes.

For more information on bursting pipes, read our blog post on preventing frozen pipe bursts.

For other winter-related reading check our posts on tips for driving in the snow and avoiding "slip and fall" claims, but most of all, stay safe this winter season, and call us at 508-540-2400 if you need to report a claim, or are interested in an insurance consultation.

Preventing dryer-related home fires

Every year, thousands of home fires across the country are the cause of thousands of deaths and injuries and billions of dollars worth of damage to homes. What many people don't know is that dryers in residential homes are a major cause of fires, as many dryers are not properly maintained. According to the National Fire Protection Association, dryers are the cause of roughly 17,000 home fires, 15 deaths, 360 injuries, and $200 million worth of damage every year. Of those 17,000 fires, about 30% were a result of a failure to clean the dryer. There are several simple steps you can do to ensure that your dryer is properly functioning, which is a crucial step in avoiding dryer-related home fires. Not only will proper maintenance of your dryer prevent home fires, it can also decrease your gas or electric bill, and increase the life of your dryer.

What causes dryer fires?

The root cause of most dryer fires is lint. Lint buildup poses two problems: lint buildup causes the dryer to work overtime, which can cause overheating of the dryer. Second, lint is highly flammable. Overheating combined with highly flammable lint are a perfect recipe for starting a fire.

What can you do to prevent dryer-related fires?

1. Have your dryer installed and periodically serviced by a professional. Once a year, or if you notice that it is taking longer for your clothes to dry, arrange to have your vent system thoroughly cleaned.

2. If installing a new dryer, or constructing a new home, arrange to have a direct vent system to the outside, using rigid venting. Flexible venting and long vent lines are more likely to sag or compromise air flow.

3. Ensure that the air exhaust vent pipe is cleared and that the vent flap is working properly.

4. Clear your lint tray every time before using the dryer.

5. Never dry items that have come in contact with flammable material, such as cooking oil, gasoline, paint thinner, and alcohol, regardless if that item has been washed or not.

6. If using a gas dryer, arrange to have your dryer periodically inspected in order to check for faulty gas lines.

7. Keep the dryer area clear of things that can burn.

Practicing these preventative measures can help save your family and home from injury and damage. If you need to report a claim, call our office at 508-540-2400.