Certificates of Insurance

It is good risk management for customers to check and make sure their vendors have insurance. Because of this small business owners are often asked to prove to their customers they do indeed have insurance. When customers ask for proof of insurance what they are often asking for is a form called a certificate of insurance. A certificate of insurance gives the basic information of a business insurance policy. It tells things such as the insurance company's name, dates the policy covers, name of the insurance agency who handles the policy and highlights the different types of liability coverages the policy has and the limits or amount of insurance in each of those coverages.

Any type of business can be asked to provide a certificate of insurance. Three areas where you see certificates of insurance most commonly asked for are construction and maintenance contractors, businesses that lease space and consultants. The reason that construction and maintenance contractors are often asked to show certificates of insurance are because their customers want to be sure if they cause injury around their premises or damage around their premises that they are covered. Also, many contractors are acting as subcontractors to other construction and maintenance companies. If their subs cause damage or injury they want to be sure they have insurance because if they do not they will then be the responsible ones.

People that lease space are asked for certificates because the owner of the building wants to make sure that if they cause damage to the building they have insurance to put the building back as it was prior to incident that caused damage. They also want to make sure if the person leasing space is responsible for someones injuries while they are visiting the building that they have insurance in place to cover those injuries.

Consultants are asked to provide certificates of insurance in order to meet contract requirements. Often, consultants sign a contract with their customers and in the contract there is always an insurance section that outlines the required coverages they must have. The best way for that customer to make sure the consultant is meeting the requirements is to ask for a certificate of insurance.

So the next time you are asked by a customer to show proof of insurance you will understand that you are being asked for a certificate of insurance. Contact your agent and let them know you need a certificate of insurance. Make sure to provide them with the name and address of the company or individual that is asking you for the certificate.

Rough Notes Homeowner Video

The Rough Notes production department has put together a wonderful video that goes over the basics of a homeowner insurance policy and how it protects your house.  This is a great video for any homeowner to view, especially someone buying a house for the first time.

To Shovel or Not to Shovel? Here's the law in Ohio

This is an article posted on "Ohio Insurance Institutes" website:

As far as Ohio law goes, homeowners don’t have a legal obligation to shovel sidewalks due to a natural accumulation of snow and ice, but this doesn’t mean you shouldn’t at least try to maintain them.


In December 1993 the Ohio Supreme Court upheld this law when a guest attempted to sue a homeowner in Franklin County for a slip and fall outside of the homeowner’s house.

In the case Brinkman v. Ross, the court ruled that you are walking at your own risk when Mother Nature calls. The case stemmed from a visit by the Brinkman’s to the home of the Ross’ in February 1989. Ms. Brinkman slipped outside the Ross home breaking her ankle. She sued her hosts in Franklin County Court of Common Pleas. The court threw out the complaint, indicating that it had long been established that Ohio homeowners are not obligated to remove natural accumulations of snow and ice.

The decision was reversed in the court of appeals, saying that if a homeowner knows of a hazardous condition and invites guests to visit, there is an obligation to at least warn them. The case then went to the Ohio Supreme Court where the judgment was overturned.

It’s up to your guests and other pedestrians to assume that due to the nature of Ohio winters, there’s always a risk of a slip or fall due to the natural accumulation of ice and snow.


Local snow removal ordinances

Local municipalities may invoke snow removal ordinances. If your city or township has an ordinance that requires residents to keep walkways free of snow and ice, then you have a responsibility to maintain your sidewalks. Some Ohio cities with snow removal ordinances levy fines for not removing snow in a timely manner while others issue warnings.

However, a local ordinance does not automatically implicate a homeowner if someone slips and falls on their uncleared property.

Examples of local snow removal ordinances/requirements
Below are links to information and/or ordinances for a handful of Ohio communities. The Ohio Insurance Institute suggests checking with your local municipality on any snow removal policies or requirements. Many provide this information online.

• Centerville

• Dublin

• Forest Park

• Fairfield

Waiver of Subrogation, What is it?

If after an insurance claim is paid out by your insurance company, it is deemed that another party was actually the negligent one, then your insurance company (via the insurance policy contract) has the right to go after the negligent party. This right is usually found in the "Conditions" section of your insurance policy. This conditional right can, however, be waived. This means that your insurance company would then not be allowed to go after the negligent party. The term for this waiving of rights is called Wavier of Subrogation.

Often you will see the Waiver of Subrogation in commercial leases. Landlords will require that tenants have this verbiage in their insurance policy so that if a claim occurs at the leased location that the tenant's insurance company cannot come back after them for damages. The landlord, however, would be less inclined to have this wording on their policy since it would mean they and their insurance company would not be allowed to go after their tenant after a claim. A building owner and their insurance company usually have more to lose (the building and its rental income) than the tenant does so they would be very interested in being able to go back after a negligent party.

There are two example of where a landlord may want the Waiver of Subrogation wording on their own insurance policy. The first is if they are renting to a family member or friend who they know doesn't either have enough assets or money to be able to cover them in case of a claim, they may not want their insurance company to be able to go after them to collect for damages. The second is if the landlord and tenant are owned by the same person or organization. In some cases, usually for legal or tax reasons, a person may have one company that owns the building and another company that owns the business that is the tenant. In those cases you would probably want both the landlord and tenant policy to have a Waiver of Subrogation clause in their policies so that you don't have your two insurance companies fighting over payout.

Another place where you will see Wavier of Subrogation is in situations where companies or organizations will subcontract work to other companies or organizations. Often, if a business is going to hire another business to do work on their behalf they will request that the subcontractor have Wavier of Subrogation on their policy. Similar to the Landlord/Tenant relationship, if the contractor requires the subcontractor to have Waiver of Subrogation on their policy it means the subcontractor, if a claim arises, is not able to go back after the contractor for money.

When entering into a lease or a business contract it is important to know if you are going to be required to have Waiver of Subrogation and if you have it or not in your insurance policy. It is best to have both your legal team and your insurance professionals review contracts to make sure you are adequately protected.

Own or Plan to Own a Classic Car? Protect Your Investment

Antique and classic cars are not only a treasure to their owners, but also can be a lucrative investment. Collector cars in mint condition can command many times their original value. But, whether you have one, are considering restoring one or are looking to buy, you need to consider a number of things before spending a lot of money on your "dream car".

Hurricane Sandy, which recently hit the East Coast, damaged thousands of collector cars. One insurance company specializing in classic and antique cars estimated that between 8,000 to 10,000 collector cars were damaged in the storm! Although it is impossible to protect these cars against a force of nature this devastating, it serves notice that classic car owners ensure that their car, whether a treasure or an investment, is as safe as possible. That starts with, but is not limited to, adequate insurance.

Adequate Insurance

Since collector cars don't depreciate like regular cars, coverage is based on an agreed value rather than a cash value. You and your insurance company agree on a value when the policy is purchased that takes into account everything you have invested in your collector car.

Antique or Classic?

Is your car an antique or a classic car? The general rule is that antique and classic stock vehicles were built from the turn of the century through 1972.

It used to be said that any vehicle 20-25 years old or older was considered collectible. That is no longer true. Automakers' production numbers significantly increased in the mid-1970's and quality standards fell. Because of this, there are some mid-1970's and 80's vehicles that are not collectible.

However, some still are because they have desirable amenities such as:

• Convertibles
• 2-door sports cars (few 4-door sedans are collectible)
• Unique body shapes
• Foreign sports cars
• Big block V8 engines

Safe Storage

A garage is a necessity for your collector car, and you need to make sure the building is solidly built. Is the foundation strong enough to withstand earthquakes or flooding? Is the roof in good condition, free of debris, and the gutters working properly? Make sure the siding and windows are in good shape and sealed from the elements. While there's little you can do if a hurricane or earthquake strikes, many collector cars are ruined by leaking roofs, excess moisture or minor flooding that could be prevented with a little building maintenance.

If your garage is like most, you probably also have garden tools, a lawnmower, paint and cleaning supplies stored there. All of these items can cause damage if they drop or fall against or into your classic car.

How to Reduce the Risk of Damage:

• Store rakes, shovels and other hanging tools in cabinets and secure them with hooks. If cabinets aren’t feasible, secure tools to their wall hooks with small bungee cords or rubber straps.
• Cover your car when it’s being stored to help protect it from flying debris.
• If you store your car elevated, be sure to support it on sturdy jack stands under the suspension, which should always be under tension. Never use concrete or cinder blocks.
• For long-term storage, always disconnect the battery. Also, if you know a storm is coming, be sure to pick up from the ground any battery tenders and extension cords to keep them out of floodwaters.
• Secure heavy objects, such as drills or toolboxes and appliances, with safety straps.
• Install safety latches (like childproof ones) in cabinet doors and drawers to prevent them from opening and spilling their contents.
• Fasten ceiling lights and other hanging equipment to supports by using safety cables.
• For framed pictures, car signs and neon signs, use long-shanked, open-eye hooks and picture wire to fasten them to walls. Make sure the hooks are anchored into the walls with studs. You can also try closed-eye hooks and securely screw them into the back of the frame.
•  Install flexible gas lines and automatic gas shutoff valves (if your garage is heated).
• Keep a multipurpose, dry-chemical fire extinguisher in your garage.
Even if disaster never strikes, following these tips may contribute to a garage that has less clutter and an environment in which your classic car is generally safer.

Sources: Progressive Insurance and Hagerty Classic Car Insurance

Your Car Needs Care to Keep Healthy

Just like your regular health checkup at the doctor, your car needs a good checkup to see how healthy it is.

To keep your car running smoothly and getting optimum gas mileage, it needs to be properly maintained all year, but especially as the weather turns colder. Windshield wipers, as well as antifreeze and oil levels need to be checked to make sure they’re adequate. Tires need to be checked for wear and proper inflation, and headlights checked for alignment and adequate luminosity. Batteries, which are forced to work much harder in cold weather, need to be fully charged and able to hold the charge. With long, cold, dark nights ahead for the next few months, your safety and the safety of your passengers will rely on your vehicle being in good condition.

While most of the simple maintenance can be done at home, it’s best to have a certified auto repair facility give your car a complete checkup. With their sophisticated diagnostic equipment, they can discover potential problems before they strand you on the road. A weak battery that is adequate in the warmer months, can suddenly give out when you need it most because of the added strain of turning over a car’s engine in the cold. Suddenly the battery won’t start the car and you’re stuck.

Engine oil is another factor. Not only is the oil level important, but the weight of the oil plays a crucial role, too. 30- or 40-weight oil in the summer is fine, but it’s necessary to have a multi-viscosity oil (10-30 or 10-40 weight) in your car for colder weather. 10-weight viscosity is thinner, which helps keep the oil from turning to sludge in the cold, whereas straight 30-weight oil remains thicker, making it difficult to turn the engine over to start it.

It’s also a very good time to have your belts, hoses and fluids tested. While the belts may not be making noise or the hoses leaking, they may be getting worn to the point that they will break at any time. The harsher temperatures put an added strain on them, and can result in a breakdown.

Tires need to be checked for wear, and replaced if worn out. Wet, slippery or icy roads will test a tire’s ability to ‘hold the road’, and worn-out tire treads are dangerous in these conditions. State law also mandates a minimum tread depth, and anything below that can result in a ticket. Additionally, if you are involved in an accident with illegally worn tires, you can be held liable for the damages, depending on the situation.

Why take chances with your car’s health or yours? It can also affect you and the passengers in the car if your car breaks down or is involved in an accident due to being poorly maintained. It can end up costing you much more than the checkup.

Thanksgiving Safety Tips from NFPA

Here is an article from the National Fire Protection Association (NFPA) on Thanksgiving Safety Tips.  From our family here at Fey Insurance Services to yours, have a wonderful and safe Thanksgiving! 

THANKSGIVING SAFETY TIPS
The kitchen is the heart of the home, especially at Thanksgiving. Kids love to be involved in holiday preparations. Safety in the kitchen is important, especially on Thanksgiving Day when there is a lot of activity and people at home.

Safety tips:


•Stay in the kitchen when you are cooking on the stovetop so you can keep an eye on the food.

•Stay in the home when cooking your turkey and check on it frequently.

•Keep children away from the stove. The stove will be hot and kids should stay 3 feet away.

•Make sure kids stay away from hot food and liquids. The steam or splash from vegetables, gravy or coffee could cause serious burns.

•Keep the floor clear so you don’t trip over kids, toys, pocketbooks or bags.

•Keep knives out of the reach of children.

•Be sure electric cords from an electric knife, coffee maker, plate warmer or mixer are not dangling off the counter within easy reach of a child.

•Keep matches and utility lighters out of the reach of children — up high in a locked cabinet.

•Never leave children alone in room with a lit a candle.

•Make sure your smoke alarms are working. Test them by pushing the test button