Managing Losses

What Is Loss Control?

A smaller dog is a lower risk for loss!

The process of identifying and acting upon situations that may lead to losses is called "loss control." Loss control may involve both simple and complex ways to reduce the likelihood of facing a loss. Besides insurance, you can choose to use protective devices, oral or written contracts to shift the responsibility for a loss to someone else, avoid ownership of items that may cause a loss (such as large pets), avoid dangerous hobbies and activities, or change your environment. Let's look at some areas where you might exercise loss control.

Loss Control - Automobile

•  Use a bike or public transportation instead of owning your own car
• Borrow or rent a car only when needed
• Take a course on defensive or advanced driving skills
• Practice defensive driving
• Obey traffic laws
• Avoid driving distractions such as texting
• When appropriate, voluntarily yield right of way
• Adjust driving habits according to driving conditions
• Park or store your car where there is greater security
• Install security alarm and/or other anti-theft devices
• Properly maintain the car in good condition, especially safety devices such as brakes
• Purchase or use cars that have higher safety ratings
• Don't lend your car to inexperienced or inconsiderate drivers
• Have an emergency kit available, including first aid 

Loss Control - Home

• Keep your  home and surrounding access ways in good repair
• Carefully store flammable liquids and dangerous chemicals
• Install security alarm and/or other anti-theft devices



an attractive nuisance?

• Consider an apartment or condo which avoids certain risks of home ownership
• Warn visitors about any known hazards in your home
• Avoid running a business from your home
• Take precautions when your premises includes attractive nuisances such as play sets, trampolines, tree houses and swimming pools
• Keep dangerous objects out of the reach of children
• Carefully scrutinize activities that may create a bigger exposure to loss such as dangerous hobbies or highly visible activities (volunteer work for organizations that may create extra chances for losses)
• If you are involved in high risk hobbies or activities, get the training and/or take precautions to be sure that your participation is as safe and responsible as possible
• Take care with heating and electrical devices and systems (such as portable heaters, loads on electrical circuits, etc.)
• Keep first aid kit available 
• Have a fire escape plan, including any needed safety devices (such as escape ladders from second floor exits)

Loss Control - Miscellaneous

• Store important papers in a secure, fire-resistance box or even in the corner of a freezer.
• Keep all the negatives of photos, so they can be reproduced
• Make digital recordings of personal property as documentation of your possessions
• Make copies of personal videos or digital property.
• Be sure to carefully read contracts or agreements before accepting them
• Arrange to exchange and keep important papers and mementos such as copies of videos and photos with friends so they're easier to access and less expensive than storing in a safety deposit box

Of course the help of an expert is invaluable and your insurance agent is a very helpful source for reviewing any actions you're considering to reduce your chances of facing a loss. So contact your agent for his or her expert assistance.

--------------------------------------------------------------------------------

COPYRIGHT: Insurance Publishing Plus, Inc. 2011
All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.

How Much Are Your Possessions Worth?

In order to properly value your personal possessions, you have to go through the tedious, difficult process of documenting what you own. The following list could be very helpful in identifying what you own and, more importantly, be used as proof of loss in case disaster strikes such as a serious storm, theft, or fire.

If you print and complete this list, make a couple of copies, keeping one or two at a location away from your home. If you also want to keep a copy at your home, use an insulated safe (small ones are sold for in-home storage of important papers). Another good location is to put a copy in a plastic bag and keep it in your freezer (which can offer extra protection for non-food items).

Besides listing what you own, it's also good to do the following:

• take pictures of and/or videotape your possessions
• keep your sales receipts
• keep your warranty information
• get appraisals and keep them current (appropriate for expensive property)
• For items which you don't have receipts or product information, include information on when and where you bought the property.
• It may seem like a lot of work, but you'll be happy to have this gold mine of information to assist your insurer in giving you protection against loss of your possessions.

General Personal Property Inventory

Inventory completed by___________________________
Date completed_________________________________

$__________Sofa, couches, etc.
$__________Chairs
$__________Tables, end tables, etc.
$__________Desks, secretaries
$__________Chests, cabinets
$__________Cupboards, buffet, etc.
$__________Lamps
$__________Pictures, wall hangings
$__________Clocks
$__________Decorations
$__________Books
$__________Draperies, curtains, blinds
$__________Rugs
$__________CD players, DVD players and accessories
$__________Radios
$__________Televisions
$__________Digital Recorders
$__________Home entertainment accessories (speakers, digital equipment)
$__________Computers, scanners, copiers, monitors, printers, speakers
$__________Other computer accessories
$__________Table linens
$__________China, chinaware
$__________Crystal, glassware
$__________Kitchen appliances
$__________Small appliances
$__________Cookware
$__________Cutlery, utensils, etc.
$__________Beds, mattresses
$__________Dressers, vanities
$__________Bedding, blankets, linens
$__________Bath towels, linens
$__________Suits (men's, women's)
$__________Coats (men's, women's)
$__________Dresses
$__________Jackets, sweaters
$__________Skirts, slacks
$__________Shirts, blouses
$__________Hats, gloves
$__________Purses, wallets
$__________Costume jewelry
$__________Robes, lounging wear
$__________Shoes, boots, slippers
$__________Luggage
$__________Sports equipment
$__________Miscellaneous effects

$__________TOTAL


Valuables and Treasures

$__________Fine jewelry (list items separately at the bottom of the page)
$__________Valuable furs (list items separately at the bottom of the page)
$__________Art treasures
$__________Silver, silverware
$__________Camera equipment
$__________Guns and accessories
$__________Musical instruments
$__________Stamp collection
$__________Coin collection

$__________TOTAL


$__________GRAND TOTAL OF ALL ABOVE


List specific items and value below:


$__________ item__________
$__________ item__________
$__________ item__________
$__________ item__________
$__________ item__________
$__________ item__________
$__________ item__________
$__________ item__________
$__________ item__________
$__________ item__________
$__________ item__________
$__________ item__________
$__________ item__________
$__________ item__________
$__________ item__________
$__________ item__________

--------------------------------------------------------------------------------

COPYRIGHT: Insurance Publishing Plus, Inc. 2011
All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.

Subrogation

Are you familiar with “subrogation”? It is a common insurance policy provision it is an important one! Your appreciation for insurance will increase if you learn about it!

An insurance policy, no matter what is being covered, is a contract between the insurance company and the person or organization that wants protection. When a policy involves liability coverage, the contract, essentially, means that the insurance company will handle losses (injuries to other people and/or loss or damage to property that belongs to others). However, eligible losses are restricted to those that are the policyholder’s legal responsibility. There are many times that a loss is settled under a liability policy; but someone else may actually be responsible. Consider an example:


Jon and Jenny are new to a neighborhood, so a few months after moving in, they throw a huge party and invite all of their neighbors. One of the activities is volleyball and they set up a net and space to play in their backyard.

The neighbors know each other well and they are quite competitive. During one game, an accident happens. Glen is injured while trying to block a ball at the net. The injury is very serious and Glen ends up paralyzed. He sues Jon and Jenny for his substantial medical costs and Jon and Jenny’s insurance company settles the loss.

Later, it is discovered that Paul, who was on the opposing volleyball team, had grabbed and pulled Glen when they were battling at the net, causing Glen to lose his balance and fall. Jon and Jenny’s insurance company learns of this and they sue Paul to recoup the money they paid for the loss.

The effort to recover payment made by Jon and Jenny’s insurance company illustrates “subrogation”. It is a legal right that allows the insurance company to take over a right held by their policyholder. Once an insurance company claims this right, it can pursue recovery from another person (including other entities such as partnerships or corporations) who is actually responsible for a loss.

Subrogation is an important process. When it is used, it helps to keep everyone’s insurance costs down and it also makes sure that liability insurance policies work as intended – by making sure that those parties who cause losses are held accountable.





--------------------------------------------------------------------------------
COPYRIGHT: Insurance Publishing Plus, Inc. 2011

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.