In the Aftermath. . .Ordinance or Law Endorsement

Imagine this . . . one unforeseen night, a sudden fire sweeps through the building that houses your business, destroying over half of the property and its contents. It's bad enough that you have to deal with such a massive catastrophe. But, now you learn that local ordinances require you to demolish what's left of the building. Then, the building inspector informs you that the building cannot be reconstructed exactly as it existed before the fire because that would violate current building and zoning codes. After all is said and done, you're looking at a gigantic sum to get your building back again. You hope your insurance will at least cover the cost—but, will it?

Generally, basic commercial property policies exclude coverage for building updates, repairs, or demolitions mandated by public law or ordinance. This can be a very expensive gap in your coverage even if you are ordered to add a sprinkler system or to make other changes to meet current codes. The cost of meeting public access requirements by the Americans with Disabilities Act (ADA) is also generally excluded under basic commercial property contracts.

To fill this vital gap, you may want to consider an ordinance or law endorsement to your business owners policy. In the event that your building is damaged by an insured peril, an ordinance or law endorsement can provide coverage for:

• the increased cost of construction necessary to comply with current building codes;
• the cost of demolishing the undamaged portion of the building; and
• the cost of rebuilding the undamaged portion that was demolished.

Your building may have met all existing laws and ordinances when it was constructed, but codes can easily change in even a year's time. As a building owner, an ordinance or law endorsement could prove to be a valuable addition to your insurance protection. Even if you rent your building, you may have a need for such an endorsement. Please stop by or call us if you have any questions or would like further information on ordinance or law endorsements.

Office Theft: Cause for Alarm

In response to a growing concern about crime, nationwide efforts to curb burglary and other crimes have increased. Your business can take steps to help fight crime on your property by investing in a quality alarm system.

A recent study showed that suites in office parks without alarm systems were 14 times more likely to be burglarized than those with alarm systems. The most effective system is the one that alerts either a private security agency or the local police station. However, even a basic on-site alarm that activates a bell or siren can frighten an intruder or attract attention.

There is a wide variety of affordable alarm systems on the market. Some detect motion, while others are activated by sound, heat, vibration, etc. The level of effectiveness depends on the quality of the alarm's components, installation, and maintenance. Before purchasing an alarm system, try to verify its reliability—in short, check references and obtain several written quotes.

Please be sure to protect your business with an effective alarm system, and always make sure you have adequate crime coverage. Feel free to stop in or call for more information.

Incentives to Encourage Workplace Safety

Every employee likes to be recognized for good work—especially if that recognition comes in the form of a free lunch, a preferred parking spot, or time off from work. By promising small rewards to those who demonstrate safe workplace behavior, you can motivate your employees to help you reduce on-the-job accidents.

While incentive programs allow a great deal of flexibility and creativity, there are some general guidelines you can follow in order to boost your chances of success.

1. Keep rewards relatively small and frequent. Suggestions include t-shirts, hats, pizzas, tickets to events, preferred parking for a month, gift certificates, etc.
2. Base the incentive on specific, individual acts. This allows you to single out certain ideal behaviors. However, group safety goals can also be rewarded.
3. Use a variety of rewards and deliver them promptly. Changing incentives from time-to-time will help maintain employee interest in the program.
4. Establish detailed criteria to measure employee performance. Deserving employees can only be rewarded if supervisors know what to watch for. Establish and record criteria that will help keep the selection process fair and objective.
5. Get everyone involved. Kick off the program with a company-wide meeting led by top managers to show your commitment to workplace safety. Employees should not only help create the rewards, but also deliver them to recipients.

Most importantly, emphasize to your employees that the incentive program should never deter them from reporting valid injuries. As long as your workers keep the program in perspective, it can be a fun and effective way to increase workplace safety and ultimately reduce workers compensation claims as well.

Boiler and Machinery Insurance

When a mechanical, electrical, or pressure breakdown occurs in your business, there's no time to waste. Without the necessary equipment repairs, you may have to close shop until things are up and running again. Businesses that store perishable products face the added risk of losing inventory due to spoilage.

In such a troubled situation, the last thing you want to hear is more bad news. This is why any business that depends on machinery or other vital equipment should have a boiler and machinery insurance policy. Since commercial property policies generally do not cover mechanical, electrical, or pressure breakdowns, a boiler and machinery policy is an essential addition to your insurance program.

Boiler and machinery insurance covers a wide variety of perils, including breakdowns in heating, air conditioning, refrigeration, compressors, steam boilers and steam piping, electrical systems, and much more. This valuable insurance provides for the following:

• equipment repair;
• extra expenses incurred to get the business running again;
• business income that may be lost due to suspended business operations; and
• product loss resulting from equipment breakdowns.

While machinery is at a standstill, there is a good chance that your business may also come to a halt. Therefore, it's wise to inspect your equipment regularly to prevent breakdowns, and make sure you have the proper insurance coverage. We would be happy to review your risks and provide more information should you be interested.