Family Day Care Liability Insurance - Are you Covered?

 Why Do I Need Liability Insurance?

While most providers never need to file a claim, daycare liability insurance is a wise investment. As careful as you are with the children in your care, accidents can happen. If a child in your care is injured or there is an allegation of abuse or sexual misconduct, you can be sued. Even if you win the case, litigation could cost you a great deal of money for legal fees. Childcare liability insurance gives you peace of mind.

Doesn't My Homeowner Policy Cover My Day Care Business?

Most homeowner policies exclude coverage of family day care. In fact, some insurance companies will not insure a home at all where a child day care business is run. You can check with your insurance carrier to find out if you are covered. Be aware that if your insurance carrier will not cover a day care home, you may end up having to seek coverage elsewhere. However, it is better to have proper coverage than to avoid the issue.

If you are not covered by your homeowner policy, you can seek separate family day care liability insurance coverage. This would be an insurance policy that is separate from your homeowner policy. There are several companies that offer coverage. Some companies offer coverage to providers across the nation, while others are more localized.

Shopping for Liability Insurance
The rates for liability insurance vary greatly from one area to the next. When shopping for family day care liability insurance, look at the amount of coverage you are purchasing, as well as what is covered by the policy. The basics should be covered: bodily injury, property damage, accidents, medical payments, and personal injury.

Additionally, you should look for coverage that includes a provision for sexual abuse. False accusations or misinterpretation can result in the need for such protection. Such issues as libel, slander and alienation of the affection of a child toward his/her parents should also be covered.

Look for a policy that covers claims on an occurrence basis. This means that claims that occur during the policy period will be covered, regardless of whether they are reported after the policy expires.

What is Not Covered by Liability Insurance?

You must look at your individual policy for the "Exclusions" section to find out exactly what is being excluded from coverage. Most companies will not cover claims resulting from: transporting children in a motor vehicle, swimming pools, certain breeds of dogs, admitted sexual misconduct, willfully hurting a child or failing to follow state licensing regulations.

Ronald Dwyer is an independent insurance agent licensed in Michigan for Home - Auto – Business Insurance. He can be reached at rondwyer@roninsureme.com or 248-390-6345. His website address is www.roninsureme.com , Linkedin address is www.linkedin.com/in/ronalddwyer and Facebook address is www.facebook.com/dwyerinsurance

How to Prevent and Deal With Frozen Pipes

Bitterly cold temperatures have hit the area hard.

One big headache that can accompany the dangerously low temperatures is frozen water pipes in unheated basements and crawl spaces of local homes. 

Why Frozen Pipes Are a Problem

Water expands as it freezes.

This expansion puts extreme pressure on whatever is containing it, including metal or plastic pipes. Pipes that freeze most frequently are those that are exposed to severe cold, like outdoor water faucets, swimming pool supply lines, water sprinkler lines, and water supply pipes in unheated interior areas like basements and crawl spaces, attics, garages, or kitchen cabinets.

Also, pipes that run against exterior walls that have little or no insulation are also subject to freezing.

A 1/8-inch crack in a pipe can leak up to 250 gallons of water a day, causing flooding, serious structural damage, and the immediate potential for mold.

In the US, frozen pipes cause significant damage every year, but they often  can be prevented. Taking a few simple steps, even now, may save you the aggravation and expense.

Prevention

There are three common causes of frozen pipes:

•  Quick drops in temperature
•  Poor insulation, and
• Thermostats set too low.
• There are a number of preventative steps you can take to keep your pipes from freezing:
• Check the insulation of pipes in your home's crawl spaces and attic. Exposed pipes are most susceptible to freezing.
• Heat tape or thermostatically controlled heat cables can be used to wrap pipes.  Be sure to use products approved by an independent testing organization, such as Underwriters Laboratories Inc., and only for the use intended (exterior or interior). Closely follow all manufacturers' installation and operation instructions.
• Seal leaks that allow cold air inside near where pipes are located. Look for air leaks around electrical wiring, dryer vents, and pipes, and use caulk or insulation to keep the cold out. With severe cold, even a tiny opening can let in enough cold air to cause a pipe to freeze.

Use an indoor valve to shut off and drain water from pipes leading to outside faucets. This reduces the chance of freezing in the short span of pipe just inside the house.

A trickle of hot and cold water might be all it takes to keep your pipes from freezing. Let warm water drip overnight, preferably from a faucet on an outside wall.

Keep your thermostat set at the same temperature during both day and night. You might be in the habit of turning down the heat when you’re asleep, but further drops in the temperature – more common overnight – could catch you off guard and freeze your pipes.

Open cabinet doors to allow heat to get to un-insulated pipes under sinks and appliances near exterior walls.

If Your Pipes Do Freeze...

Don’t panic. Just because they’re frozen doesn’t mean they’ve already burst. Here’s what you can do:

• If you turn on your faucets and nothing comes out, leave the faucets turned on and call a plumber.
• If your house or basement is flooding, turn off the water valve and immediately call 911.
• Do not touch or use electrical appliances in areas of standing water due to electrocution concerns.
• Never try to thaw a pipe with a torch or other open flame because it could cause a fire hazard. Every year, many building fires are caused by people trying to thaw frozen pipes. All open flames in homes present a serious fire danger, as well as a severe risk of exposure to lethal carbon monoxide.
• You may be able to thaw a frozen pipe with the warm air from a hair dryer. Start by warming the pipe as close to the faucet as possible, working toward the coldest section of pipe.
• Again, if your water pipes have already burst, turn off the water at the main shutoff valve in the house; leave the water faucets turned on and call 911. Make sure everyone in your family knows where the water shutoff valve is and how to open and close it. Likely places for the water turn-off valve include internal pipes running against exterior walls or where water service enters a home through the foundation.
• If you will be going away during cold weather, leave the heat set to a temperature no lower than 55ºF Bitterly cold temperatures have hit the area hard.

One big headache that can accompany the dangerously low temperatures is frozen water pipes in unheated basements and crawl spaces of local homes.

This expansion puts extreme pressure on whatever is containing it, including metal or plastic pipes. Pipes that freeze most frequently are those that are exposed to severe cold, like outdoor water faucets, swimming pool supply lines, water sprinkler lines, and water supply pipes in unheated interior areas like basements and crawl spaces, attics, garages, or kitchen cabinets.

Also, pipes that run against exterior walls that have little or no insulation are also subject to freezing.

A 1/8-inch crack in a pipe can leak up to 250 gallons of water a day, causing flooding, serious structural damage, and the immediate potential for mold.

In the US, frozen pipes cause significant damage every year, but they often  can be prevented. Taking a few simple steps, even now, may save you the aggravation and expense.

Prevention

There are three common causes of frozen pipes:

1.  Quick drops in temperature
2.  Poor insulation, and
3. Thermostats set too low.

There are a number of preventative steps you can take to keep your pipes from freezing:

• Check the insulation of pipes in your home's crawl spaces and attic. Exposed pipes are most susceptible to freezing.
• Heat tape or thermostatically controlled heat cables can be used to wrap pipes.  Be sure to use products approved by an independent testing organization, such as Underwriters Laboratories Inc., and only for the use intended (exterior or interior). Closely follow all manufacturers' installation and operation instructions.
• Seal leaks that allow cold air inside near where pipes are located. Look for air leaks around electrical wiring, dryer vents, and pipes, and use caulk or insulation to keep the cold out. With severe cold, even a tiny opening can let in enough cold air to cause a pipe to freeze.
• Use an indoor valve to shut off and drain water from pipes leading to outside faucets. This reduces the chance of freezing in the short span of pipe just inside the house.
• A trickle of hot and cold water might be all it takes to keep your pipes from freezing. Let warm water drip overnight, preferably from a faucet on an outside wall.
• Keep your thermostat set at the same temperature during both day and night. You might be in the habit of turning down the heat when you’re asleep, but further drops in the temperature – more common overnight – could catch you off guard and freeze your pipes.
• Open cabinet doors to allow heat to get to un-insulated pipes under sinks and appliances near exterior walls.

If Your Pipes Do Freeze...

Don’t panic. Just because they’re frozen doesn’t mean they’ve already burst. Here’s what you can do:

• If you turn on your faucets and nothing comes out, leave the faucets turned on and call a plumber.
• If your house or basement is flooding, turn off the water valve and immediately call 911.
• Do not touch or use electrical appliances in areas of standing water due to electrocution concerns.
• Never try to thaw a pipe with a torch or other open flame because it could cause a fire hazard. Every year, many building fires are caused by people trying to thaw frozen pipes. All open flames in homes present a serious fire danger, as well as a severe risk of exposure to lethal carbon monoxide.
• You may be able to thaw a frozen pipe with the warm air from a hair dryer. Start by warming the pipe as close to the faucet as possible, working toward the coldest section of pipe.
• Again, if your water pipes have already burst, turn off the water at the main shutoff valve in the house; leave the water faucets turned on and call 911. Make sure everyone in your family knows where the water shutoff valve is and how to open and close it. Likely places for the water turn-off valve include internal pipes running against exterior walls or where water service enters a home through the foundation.
• If you will be going away during cold weather, leave the heat set to a temperature no lower than 55ºF

12 Scams of Christmas

Christmas is here, and although the holiday is associated with cheer and generosity, scammers are in full force, ready to take advantage of unwary individuals who can be easily duped.

In the spirit of the popular holiday tune, Better Business Bureau wants people to be aware of the 12 scams of Christmas. These frauds and cons are common during the holiday season, and being alert can save clients from the negative repercussions of these frauds during the otherwise jolly holiday season.

On the twelfth day of Christmas, a scammer gave to me:

Twelve malware e-cards

During the holidays, people love to spread the cheer, sometimes in the form of holiday e-cards. But viruses and malware often travel in e-mail attachments or links.

Better Business Bureau advises deleting e-mails from people whose names you don’t recognize. When in doubt, delete the e-mail or e-card. It is better to take caution than to fall victim to a corruptive virus.

Eleven stranded grandkids

Family is important, especially around the holidays. Scammers, however, can take advantage of this, utilizing what the Better Business Bureau characterizes as the “classic grandparent scam.”

If someone calls or sends an email pretending to be a grandchild, relative or friend, claiming they were robbed or harmed overseas, asking for money, check to verify that it is true before taking action.

Ten counterfeit gifts

Everybody likes a good deal, but low prices on luxury goods almost always means that the product is a cheap counterfeit.

Be careful while holiday shopping this year, especially online. Counterfeit transactions are illegal and harmful for brand owners and can leave customers dissatisfied.

Nine pockets picked

Cold weather means bundling up. But with some of the extra padding of a puffy coat, we may not notice pickpockets who are willing to take advantage of the situation.

While out and about this holiday season, keep your purse or wallet secure. Better Business Bureau also warns against putting shopping bags down, even for a moment. Experienced thieves are waiting for the perfect moment to snatch up any valuables.

Eight stolen gift cards

Gift cards can be the perfect gift: easy to buy and are usually a big hit with recipients. However, make sure that you are purchasing gift cards from a reputable dealer.

Scammers can sell you a card and use the funds, even before you have the chance to give the card as a gift, the Better Business Bureau claims.

Seven fake coupons

Buying so many gifts during the holiday season, it is no surprise that many look to coupons to save a little cash, but Better Business Bureau suggests that people use caution when downloading coupons.

A retailer’s website is the best place to find coupons, and be wary particularly if a website asks for personal information.

Six Santa scammers

Receiving a letter from Santa Claus can be the highlight of the Christmas season for a young child, but these websites could put you at risk for identity theft.

Before entering any personal information, verify that the site is real, and not just gathering data to commit fraud.

Five fake charities

The Christmas season is about generosity, and many charities thrive on end-of-the-year giving as part of their annual income.

Although Better Business Bureau encourages charity, be careful when giving this holiday season. Scammers set up fake charities that have names that often sound legitimate or are similar to popular charities. Verify the organization before you make a charitable donation this Christmas.

Four bogus websites

For those who do not know what to look for, it can be almost impossible to differentiate a real website from a bogus one.

It is easy for a hacker to mimic a real website. A red flag is if a website reads “http” in the address bar instead of the more secure “https.” Additionally, if contact information is not listed, or they are asking for a payment by wire or money card, look for verification that the website is not a fraud.

Three travel scams

Travelling during the holidays can get pricey, so airfare bargains can be tempting. But this is just another way that scammers can take advantage of unsuspecting travellers.

Be cautious when booking travel through an advertisement online, and never wire money to someone you do not know. Using trusted travel agencies or websites recommended by friends and family members can ensure that you will not fall victim to travel scams.

Two phony loves

Everyone wants someone special to share a kiss under the mistletoe or as the ball drops on New Year’s. But for those looking for love online, the holidays are a prime time for scams.

Be careful when finding an online sweetheart, especially with an online match that that gets cozy too fast and asks for money, the Better Business Bureau warns.

... And a totally fictitious puppy

There may be no better gift than a cute and cuddly puppy, but be careful when buying a pet online.

Scammers take advantage of those who want to give puppies for the holidays. Sometimes these puppies can come from puppy mills, and could have serious health problems. Other scams could involve paying for the pet online, but never receiving the puppy because it was all a scam.

If you decide to give man’s best friend for Christmas, find a reputable breeder or local rescue league to avoid being burdened by an online con.

How to Survive a Power Outage During an Ice Storm

Sometimes power outages are expected by the arrival of severe weather events such as severe thunderstorms or ice storms. These are additional steps you can take to prepare your home for weather-related blackouts.

Keep at least ½ of a tank of gas in your car at all times. Many gas stations rely on electricity to power their pumps. While it may seem inconvenient to make more frequent stops at the gas station, if you have a near-empty tank during a power outage, you may lack the fuel to travel in an emergency.

Trim tree branches in your yard. It's a good idea to address any landscaping concerns before the storm season begins in your area. When a storm is approaching your home, take note of the tree limbs on your property. If they hang over power lines, make sure to trim them before the storm hits. Doing so will decrease the chances your power will be cut by a fallen tree limbs.

Turn your refrigerator and freezer to their coldest settings. Lowering the temperature before you lose power will allow the refrigerator to keep acceptable temperatures for food longer. Eat perishable foods first, conserving canned or other non-perishable items for the possibility of a long-term outage.

After determining the cause of a power outage, use these measures to weather the outage safely.

Help prevent pipes from freezing. If your home is without heat, the water in your plumbing can become frozen and create expensive repair problems.


To help combat this, allow a small stream of water to run from faucets. The American Red Cross advises this action and says, "Running water through the pipe - even at a trickle - helps prevent pipes from freezing."

If you own a generator, operate it safely. Never run a generator inside a home or garage, they produce potentially deadly carbon-monoxide fumes. Always keep running generators in an open and ventilated area. Also, do not directly connect the generator to your home's wiring. Plug all necessary appliances directly into the generator. When a generator is connected to a home's wiring, it can create a "back feed" into utility lines which can injure or kill anyone who is working to restore the power.

To maintain the refrigerated and frozen foods, keep fridge and freezer openings to a minimum. By not opening the door, you can keep the temperature lower for a longer period of time. Make a conscious effort before you open the fridge/freezer to plan what you will take out and close the door quickly. To increase the effectiveness of your powerless fridge, you can fill plastic containers with cold water and place inside the appliance. Not only does this increase your emergency water supply, it also helps keep the air cool inside the fridge to slow the spoilage of your food.

Although it may seem sensible to put food outside in the cold air, this is not recommended.  It is not a good idea to put food from the refrigerator and freezer outside. The temperature outside can vary hour by hour, and frozen food can thaw if exposed to the sun's rays, even if it is very cold.

Unplug all appliances and leave only one light switched on. There is an added risk of power surges occurring that can destroy your appliances. Leave one light on in your home so you know when the power has returned.

In case of extreme temperatures, plan on visiting locations and businesses that are likely to have generators. For instance, power outages are common during ice storms. Plan on visiting shopping malls or community centers that have generators to keep warm.

Follow these essential tips to help ensure the safety of you and your family from the unpredictability of power outages.

State of Michigan Suspends Burton Insurance Agent's License

State officials have suspended a Burton insurance agent's license following accusations she failed to submit customer applications and kept payments that left clients without insurance.

The state Department of Insurance and Financial Services on Nov. 12 suspended the license of Angella K. Swain-Jones, owner of Swain Insurance, 4251 Davison Road in Burton, who specializes in property and casualty insurance. 

A hearing in front of an administrative law judge can be requested by Swain-Jones in regard to the suspension no later than 20 days after the order was issued, or later if requested.

The state department said it began an investigation in March 2013 into Swain-Jones after receiving several complaints from customers.

"Although Swain Agency holds itself to the public as engaged in the business of insurance, Swain Agency is not a licensed resident producer agency as required by the (Michigan Insurance) Code, and is not authorized to transact the business of insurance in Michigan," states a summary order to suspend Swain-Jones' license.
The suspension order further states that Swain-Jones made an attempt to conceal "her misappropriation of customer funds" by issuing false proof of insurance certificates.

Several accusations were included in the suspension order of customers issued certificates for no-fault insurance and finding out they had no policy when switching to another agency. In another instance, a customer was in an automobile accident and Swain-Jones allegedly paid for damages, the order said.
The Department of Insurance and Financial Services said it attempted to conduct an examination on Sept. 17, 2013, of the business' finances, but they were refused access to documents.

Swain-Jones has been fined in the past by the state agency. She was ordered to pay $3,000 in January 2003 for "fiduciary violations," $300 in March 2006 for failing to pay premiums and maintain reasonable accounting methods, and $500 in December 2009 for the same reasons.   

Swain-Jones could not be immediately reached for comment on the suspension order.

Drivers who made a purchase through Ms. Swain-Jones are urged to contact the insurance company listed on their policy to determine if their coverage is in fact valid. Consumers who wish to file a complaint can contact DIFS toll-free at 877-999-6442.

A copy of the full order of Summary Suspension, Notice of Opportunity for Hearing, and Notice of Intent to Revoke can be viewed at, http://www.michigan.gov/documents/difs/Angela_Swain-Jones_13-11834_439881_7.pdf.

A a DUI arrest can haunt you for life

Whether it's called driving under the influence (DUI), operating while intoxicated (OWI) or driving while intoxicated (DWI), drunk driving is a nationwide problem of seismic magnitude. A majority of states use .08 percent as the legal level of intoxication for adults.
According to the National Highway Traffic Safety Administration, an estimated 10,228 people died in drunk driving crashes in 2011, accounting for 31 percent of all traffic deaths that year.

Since NHTSA began recording alcohol-related statistics in 1982, drunk driving fatalities have decreased 52 percent, from 21,113 in 1982, in large part because of public awareness campaigns and tough nationwide laws.

And a DUI can haunt every aspect of someone's life, from employment to insurance rates.

A DUI conviction can be a bar to employment.  If an employer has 10 qualified applicants for a position, does a background check and one of them has a DUI conviction, that person will likely be amongst the first cut. That is especially true in as competitive a job market as we have today.

DUI punishment

Ohio's OVI (operating a vehicle under the influence) penalties are particularly harsh. A first offense gets you a possible three-day jail stint, a 72-hour intervention program (usually held in an area hotel), a three- to six-month license suspension and fines of $375 to $1,075. Blow over .17 on a breathalyzer test and your jail time is mandatory -- and you've bought yourself a specialized bright yellow DUI license plate for your suspension period that lets everyone know you got a DUI.


Upon a second offense in Ohio, you get a mandatory ignition interlock, which costs up to $200 for installation and $80 per month maintenance. It uses a breathalyzer system that's connected to the vehicle's engine that's required to start the car and keep it running. If alcohol is detected the car won't start or will disable in motion. Currently 36 states have ignition interlock system laws.


Refusing to blow

So why not refuse the breathalyzer? Here's why: The majority of states have some type of "implied consent" law.


"This means that when you sign up for your driver's license, you also consent to taking a breathalyzer test upon demand from a police officer," says Eric Misterovich, a DUI attorney at Newburg Law in St. Joseph, Mich.

Many times people refuse a breathalyzer because they don't want to provide evidence of their blood alcohol to police out of fear of being arrested. However, the penalty for refusing the breath test can be harsher than the OWI charge, says Misterovich.


"A first-time OWI charge in Michigan is a misdemeanor punishable by 93 days in jail, $2,500 in various fines, six points on your record and a 30-day license suspension with an additional 150 days of a restricted license," he says.

The majority of first-time offenders are not sentenced to jail; rather, they are given probation, fines and license restrictions.

However, if you refuse to take a breathalyzer or refuse to take a chemical rights test in Michigan (but in some states called chemical test rights), you are subject to an automatic license suspension of one year and given six points on your record, among other penalties. "Worse, even if you refuse the chemical rights test, the police will be able to obtain a warrant to draw your blood," says Misterovich.

The one-year license suspension will likely have a greater impact on your life than an OWI charge. Plus, given the police's ability to draw your blood anyway, you could still be charged with OWI.

"In short, at least for first-time offenders where there is no car accident or bodily injury, refusing to take a breathalyzer will likely subject you to greater penalties than the OWI" in Michigan, says Misterovich.

Every DUI case is different and many variables -- from your past driving history, the judge assigned to your case -- and even the courtroom you're in -- play a role, as well as your attorney.


Forty-two states suspend licenses for first-time offenders. An SR-22 form is required to reinstate driving privileges after a DUI in most states. The form, which must be carried for three years, also puts offenders in a high-risk insurance category and raises rates by at least 30 percent.

The SR-22 car insurance form: When you have to prove you have auto insurance.

All states require drivers to buy auto insurance (with the exception of New Hampshire), and of course not everyone complies. But if you’re caught, you may find yourself required to have an SR-22, says Alex Hageli, director of personal lines policy with the Property Casualty Insurers Association America, an industry trade group.

The SR-22 form, also called a Certificate of Financial Responsibility (CFR), is a financial responsibility document that car insurance companies file with the state for customers who are required to prove they have insurance.

Rules on SR-22s vary by state, but usually it's legally required for drivers that have been convicted of certain driving-related violations. Examples include DUI convictions, reckless driving and accidents caused by uninsured drivers.

How to get an SR-22 insurance form

If you need an SR-22, the court or your state department of motor vehicles will notify you of the requirement, says Loretta L. Worters, vice president of the Insurance information Institute. "A person should notify the insurer providing his or her insurance that an SR-22 is needed," Worters says. "Once the [insurance] purchase is completed, the insurer will begin the process of filing the certificate on the behalf of the policyholder."

According to Worters, Delaware, Kentucky, Minnesota, New Mexico, Oklahoma and Pennsylvania don't require SR-22s. But if you already have an SR-22 and move to one of those states, you must continue to meet the requirements of the SR-22 state where your offense was committed. Also, your insurance policy in your new state must have the liability limit minimums required in your former state, Worters says.

New York and North Carolina don't require SR-22 filings, and if you have an SR-22 and move there, you don’t have to follow your former state’s requirements because most companies don't offer out-of-state SR-22 filings for policies in those states.You’ll generally need to pay a $25 one-time fee to file an SR-22.  You’ll have to pay the fee again if you allow your policy to lapse and the SR-22 has to be re-filed. In addition, a filing fee is charged for each individual SR-22 filed. For example, if you and your spouse need SR-22s, you’ll pay the fee twice, Worters says.

The long SR-22 insurance road ahead

As long as your auto insurance policy remains in force, the SR-22 remains valid. If your policy is cancelled while you're still required to carry an SR-22, your insurer is required to notify the state. Failure to maintain continuous coverage could cause you to lose your driver’s license.

How long the SR-22 filings are required can vary by state and the severity of the offense, but it’s typically three to five years, Worters says.

If you cancel your policy prior to the termination date, your insurance company must file an SR-26 notifying your state you no longer have insurance.

Some insurers can’t be bothered. Also, many auto insurance companies don't want the hassle of filing SR-22s with states -- and also filing SR-26s when policies lapse, Hageli says. "And there are companies that decide that people who require SR-22s are not the type that fits their profile of someone they will underwrite."

The SR-22 will affect both your choice of insurance companies and the car insurance rates you’ll pay, now and in the future. You’ll likely be moved into a higher risk category and pay more for insurance due to your violation. "Some companies review rates on a case-by-case basis, looking at factors such as age, gender, driving history and vehicle model," Worters says. "It's possible that your insurance company will never find out about your DUI conviction if your state doesn't require you seek an SR-22." If your insurance company misses the conviction at the time it happens, however, it may still have a few years to raise rates if it discovers the DUI later.