In today’s society, as an employer you need to be aware of the possibility of loss due to the very nature of having employees. The obvious coverage needed is workers compensation as it is required by law in Oregon.

In the State of Washington, as an employer you also need to carry Stop Gap/Employer’s Liability.  This is included with the workers compensation coverage in most other states, but in Washington it is not included with the mandated state fund policy.  Stop Gap coverage bridges the gap between workers compensation and general liability if an employee sues the employer for their liability other than as their employer (i.e. as a manufacturer of a defective product that injures the employee).  This coverage is would be added on to the general liability policy.

Other employee exposures that exist which should be included within your insurance program are:

Employee Benefits Liability (EBL): Employee Benefits Liability will cover the liability of your business for an error or omission in the administration of an employee benefit program, such as failure to advise employees of benefit programs.

An example of how Employee Benefits Liability comes into play would be as follows. You hire a new employee, benefits for this employee are to be offered after 60 days of employment. At the 60 day mark the employee requests medical coverage for their spouse and son. The benefits administrator does not get the employee added as requested. The employees son is diagnosed with cancer and has over $400,000 in uncovered medical bills as a result of the error.  As the employer you are found liable for the uncovered medical bills.

Employment Practices Liability (EPL): Employment Practices Liability will protect your business from the financial consequences associated with a variety of employment-related lawsuits. Employment Practices Liability, also known as EPL, can protect your business against charges of:

• Sexual harassment
• Discrimination
• Wrongful termination
• Breach of employment contract
• Negligent evaluation
• Failure to employ or promote
• Wrongful discipline
• Deprivation of career opportunity
• Wrongful infliction of emotional distress
• Mismanagement of employee benefit plans

The coverage can also protect your business against legal conflicts that flare up between employees and third parties, such as vendors or customers, this would be known as third-party coverage. This coverage is not always a standard part of an Employers Practices Liability policy and can be added by an endorsement.

An example of  how this coverage would work is if a female employee claimed her supervisor had sexually harassed her, along with a number of other employees, and she was retaliated against after she complained to senior management.

Employer Benefits Liability and Employer Practices Liability can be added to general liability policies or sold on a standalone basis. Please contact our office for more information or to obtain an insurance review.

Q: What is Permanent Life Insurance?
A: Whole Life and Universal Life are examples of Permanent Life Insurance policies. These insurance policies can be structured to last your whole life, while building cash value. Because permanent policies are structured to last a lifetime and build cash value, they are more typically more expensive than term policies.

Q: What is Term Life Insurance?
A: A Term Life Insurance policy covers the insured for a stated period—typically 10, 15, 20, or 30 years. Because the insurance company’s liability is limited to a specific period, Term is the least expensive type of Life Insurance one can purchase.

Q: What is ROP Life Insurance?
A: ROP Life insurance is Term Life insurance that offers Return Of Premium. ROP Life Insurance has a higher premium than regular Term Insurance because at the end of the guaranteed 10, 15, 20, or 30 year term period, the insurance company will return all of the premiums the policy owner may have paid.

Q: What type of life insurance policy should I get?
A: The kind of coverage that might be right for you depends on your unique circumstances and financial goals.

Term insurance offers the greatest amount of coverage for a lower initial premium. Basically you are renting insurance – it provides protection for a specific period of time (the “term”) and pays a benefit if you die during the term. It is a good solution for people with temporary needs or a limited budget. Often, the need for life insurance is realized when there are life events such as marriage, birth of a child, or when a home is purchased.

ROP life insurance makes it possible to have term coverage with an end net cost of zero because at the end of the term, if the insured is still alive, they will have had coverage AND the policy owner will have gotten all of their money back.
Permanent insurance provides lifelong protection. This type of insurance is designed to accumulate cash values which the policy owner can borrow from. As long as the premiums are paid, and no loans, withdrawals or surrenders are taken, the full face amount will be paid.

A combination of term and permanent insurance might work best; however, one should consult with an insurance professional to determine the best solution for each situation.

The insurance information provided is merely descriptive and should be used for reference only.

Many people have heard of HSA medical plans (Health Savings Account) but not many understand them.

An HSA generally refers to a “qualified high deductible” health insurance plan. What makes it qualified by the IRS is the deductible has to be at least $1,200 (individual) annually and most services, including prescriptions, must go to deductible first.

By purchasing an HSA health plan, you are then qualified to open an HSA savings account with your local bank or credit union. The IRS has determined the maximum amount of money an individual or family may put into this savings account each year.

When you put money into the HSA savings account, the bank issues you a debit card just for that account, to spend on IRS qualified health insurance expenses. You then use the debit card to pay for medical services at doctor offices, facilities, pharmacies and even for things not covered by your health insurance like dental, vision or chiropractic care.
The amount that you put into this savings account each year is then tax deductible on your personal taxes at the end of the year. So if as a family you put in the 2012 maximum of $6,250, that amount is considered non-taxable at year end.

In many cases, an HSA medical plan is priced lower than a traditional medical plan with copays, so you save two ways, on premium and on taxes.
One other way that you could potentially save money on your medical expenses by purchasing an HSA; HSA plans tend to have overall lower catastrophic expense exposure when compared to a traditional medical plan.

HSA’s are not for everyone, it‘s a good plan for those who can plan and put away for their medical expenses. Following please find some Q and A about HSA plans.

Q. Are HSA funds “use it or lose it?”
A. No, any balance left in the account carries over to the next year.

Q. What happens if I try to put extra money into the account above what the IRS allows?
A. The IRS would require that you take the excess money out of the account and may assess a penalty.

Q. What happens if I don’t have enough money in the account to cover a particular charge?
A. The debit card will allow you to spend only what you have put into the account, so you would have to either make a contribution to the account or use another method of addressing the medical charges.

Q. Can I withdraw the money in the account if needed for non-medical or qualified expenses?
A. Yes, but taxes and applicable penalties will apply.

Q. I can really use the money for things not covered by my HSA plan such as vision, dental and chiropractic?
A. Yes, that is correct. Please visit the IRS website publication 502 for a complete list. http://www.irs.gov/pub/irs-pdf/p502.pdf

Q. What happens if I cancel my HSA medical plan and I still have money in the HSA savings account?
A. Once you no longer have an HSA medical plan you are no longer eligible to contribute any more funds to the HSA savings account. You may keep the account open and continue to spend any funds remaining in the account on qualified medical expenses.

For more information about HSA health plans, including quotes, please contact our benefits department team at 503-296-0077. We are here to help!

Of all the appliances found in the home, the water heater and washing machine are the most likely to cause serious damage, and cost home owners a bundle.

According to a nationwide analysis by a leading Insurance Company, one out of every 10 water-damage claims can be traced back to a malfunctioning hot water tank or washing machine. These two appliances are more likely than Mother Nature to inflict damage on the home.

“Water is the most common cause of home damage today – even more likely than fire,” said Jim Swegle, vice president of personal property for Safeco Insurance.

“Americans are spending twice what they were 10 years ago to repair water damage. In most cases, home owners can save themselves a lot of time and money by adding a few simple protective devices and doing routine maintenance. These tasks usually take just a few minutes and the parts often cost less than $20,” Swegle said.

Some water damage is covered under homeowners insurance, but some damage is not, he noted. Home owners who fail to maintain appliances and plumbing systems may face thousands of dollars in repair costs and weeks of invasive home repairs.

Simple fixes, such as installing a $10 stainless steel hose or replacing an aging water heater, could save a homeowner thousands of dollars and a lot of hassle.

But home owners can take simple steps to reduce their chances of water damage.

• Replace old water heaters. Water heaters do damage when they get too old and the tank rusts and bursts. Replace your tank once a decade. Today’s energy-efficient systems also will be cheaper to operate.

• Stainless steel hoses: Inspect standard rubber or plastic hoses used with washing machines, refrigerators and dishwashers and consider replacing them with stainless steel-braided or mesh hoses. Worn-out hoses with kinks, cracks or bulges need to be replaced immediately. A $10 braided steel hose can save thousands.

• Turn it off before you leave. Don’t leave dishwashers and washing machines running if you leave the house.

• Check attic air conditioners. At least once a year, go up to the attic or roof to check these appliances before they wear out. Look for wear and tear and loose connections.

And if you have water damage, feel free to call Leonard Adams Insurance first for advice about filing a claim.

Leonard Adams Insurance
503-296-0077 phone
503-296-0044 fax

The National Weather Service is calling for the potential of 100 + MPH winds. With this bad weather the potential for property damage is imminent. A familiar question we receive is “if a tree falls on my neighbor’s property who is responsible to pay for the property damage?”.

You might not like this answer but keep in mind that each claim is unique and would be handled on its own merits by the insurance company. The cleanup and responsibility of the property damage would fall on the property owner where the tree or limb lands. Most often the property where the tree or limb originated would not be responsible if a storm blew it down as technically it is your property and you would have a responsibility for maintaining the property as a result of said damage. We say most often because with claims there are always gray areas, if you warned your neighbor about the tree being dangerous because it was dead and or dying and asked him to do something about it, then it might be their responsibility after all.

Since 1933 Leonard Adams Insurance has been providing Portland and the Northwest with local and national insurance options. The insurance information provided is merely descriptive and should be used for reference only.

You’re having a meeting at Stumptown Coffee or at one of the many nationally recognized coffee spots in Portland, you get home and realize your laptop is not in your work bag. The laptop contains confidential and sensitive data belonging to your company’s largest clients. If the data gets into the wrong hands, it could result in the disclosure of private information of thousands of your clients customers.

The Oregon Identity Theft Protection Act which was passed by the Oregon Legislature in 2007 requires that you provide a notice of a breach of security. The law defines breach of security as “unauthorized acquisition of computerized data that materially compromises the security, confidentiality or integrity of personal information maintained by the person.” The law further states “Personal Information” is defined as “a consumer’s first name or first initial and last name in combination with any one or more of the following data elements and are not rendered unable through encryption, redaction or other methods, or when the data elements are encrypted and the encryption key has also been acquired:

A. Social Security Number
B. Driver’s license number or state identification card number issued by the Dept. of Transportation
C. Passport number or other United States issued identification number; or
D. Financial account number, credit or debit card number, in combination with any required security code, access code or password that would permit access to a consumer’s financial account.

As our economy continues to turn into an information economy the problem of data breaches are not going to go away and is more than likely to grow. The risks are not limited to sophisticated hackings such as the April 2011 hack of Sony’s network in which more than 100 million users were affected. A breach can result from something as simple as a laptop or thumb drive being stolen.
A single data breach can result in both first party and third party losses. For example, a system being hacked may shut down your company, resulting in the interruption of business and lost profits (first party loss) and if the hacking results in the dissemination of your clients financial information, you could face lawsuits from those clients (third party loss).
Your Standard General Liability and Property policy will not cover your business from risks relating to information technology infrastructure and cyber activites. You will need to have a specific Cyber Insurance policy in place to offer protection from these risks. There are several types of cyber liability protection; most coverage’s are purchased ‘a la carte’ and would be incorporated into one policy. The various options include:

• Privacy- This covers the unauthorized acquisition, access, use, physical taking, identity theft, mysterious disappearance, release, distribution or disclosures of personal and corporate info.
• Technology Security – This covers the failure to prevent a party from unauthorized access to, use of or tampering with technology, including denial of service attacks.
• Web-Media Services – This covers personal injury claims including the gathering, publication, or dissemination of web-based content.
• Privacy Breach Containment - With this type of policy the costs of notification and investigation of the attack are covered, as are the crisis management expenses and credit monitoring costs.
• Technology Extortion – Extortion payments to a third party related to a technology threat are also covered. This includes the expenses to investigate the extortion and the costs incurred to pay the extortion.
• Data Restoration – Costs to restore, recover, or replicate data that is damaged by a technology breach.

The marketplace for Cyber Insurance continues to expand, it is important that your company is aware of what you are purchasing as terms of coverage vary widely. You might be able to purchase an endorsement from an existing policy you already have in place in lieu of purchasing a specific cyber liability policy. As an Oregon business you need to evaluate your risk and sources of exposure regularly, and make sure your insurance program keeps pace with the risks and realities of today’s business environment.
Leonard Adams Insurance is a local Portland insurance broker that has access to the cyber insurance marketplace. Contact us so we can assist in putting the right Cyber Liability program in place for your business.

The insurance information provided is merely descriptive and should be used for reference only.

With the great weather and the start of football season, it’s a great time to throw a party. Whether it’s your daughter’s wedding or your annual party, there are several risks you should be aware of if you plan to host a party. With so many risks to consider, there is one common risk at parties that you should always be aware of: serving alcohol

Alcohol and Social Host Liability:

Most homeowner’s policies will cover your liability if you serve alcohol, but not if you sell it. If you don’t serve alcohol responsibly, you can have a host of problems with drunk drivers or potential injuries to guests. It is much better to be safe rather than sorry. There is liability coverage available for nearly every type of event so be sure to review your insurance policy with your agent before any event to ensure that you have the proper liability coverage. Give us a call at Leonard Adams Insurance at 503-296-0077 if you have any questions regarding hosting a party, whether you are serving alcohol or not.

On campus Housing:

Insurance companies consider college students to be residents of their parent’s home, temporarily residing elsewhere. Most homeowner’s policies limit the amount of coverage for a student’s belongings to 10% of the total amount of a policy’s overall coverage for personal possessions. Thus, if the parents have $110,000 worth of insurance on their personal possessions, the student will have $11,000 worth of coverage on their possessions away from home. The student’s possessions would be covered for the same perils that are in a standard homeowners or renters policy. These include fire, theft and vandalism. If the student does not have enough extended coverage from their parent’s homeowners policy they may want to purchase a personal property floater, an endorsement to their homeowner’s policy, or a separate renter’s insurance policy.

Off campus Housing:

Some students may move off campus into apartments or houses. As long as the student is still considered a “household member” of the parent’s home, (general rule of thumb parents still claim the student as a dependent) the student is covered at the “off campus” location with the 10% personal property coverage extension. When a student signs a lease, they generally become liable if someone is injured on their leased premises or by their property. As a household member of their parents home, the parents policy with extend to this “temporary location”. However, when living off campus, each student may want to consider obtaining their own renter’s policy, even if they didn’t sign the lease, or they should extend the liability from their parent’s homeowner’s policy via endorsement. A renter’s policy premium is pretty inexpensive, usually under $250 a year to cover $20,000 worth of contents and liability. An extension of liability from a homeowner’s policy will only cost about $20-$30 a year.

Wheels at school:
Considering the high amount of risk for students having cars in college, the best option is to just leave the car at home. If the student is over 100 miles away, let the insurance company know and you may be eligible for a discount. If a student is going to take their car to school, also let the insurance company know as you may save some money depending on the location of the car. Some insurance companies also offer discounts if students get good grades. Parents can also explore the option of having the student get his or her own auto insurance policy. This can decrease the parents liability exposure. Last of all, discourage students from letting anyone else drive their car at school, as they are still responsible for their car and what is done with it.

Long story short, be sure to check with your insurance agent or advisor to make sure that your student is properly covered at school. Give Leonard Adams Insurance a call today at 503-296-0077 if you have any questions!

It is especially cool when we get invited to fun events, such as a private tour of the “Allure of the Automobile” exhibit at the Portland Art Museum. 

Thank you to our trusted partner, Chubb Insurance for sponsoring this event.   


Do you have a collector car to insure?  Please call our office at 503-296-0077, we can help!     

Which one is your favorite? 

Stingray - MY Favorite!!

General Motors has announced a new promotion to offer free automobile insurance on their 2010, 2011, and 2012 models to any new car buyers that are residents of Oregon or Washington. At a first glance this appears to be a nice little deal, but buyers need to be careful to accept the new offer or even use it as an incentive to purchase a new car.

As independent insurance agents we don’t see this deal offering any benefits for the consumer.  Here are a few reasons:

1. You won’t get to choose your insurance carrier.  Your insurance would be provided by Metlife Home & Auto, and you would be subject to all of their standards and policies provided within this promotion. Will Metlife be able to meet and satisfy your individual insurance needs?
2. You won’t get to choose the level of your insurance coverage. You are stuck with standard packages specifically outfitted for this offer (not personally tailored for you as the consumer) and although they are above the minimum insurance requirements for both Oregon and Washington, the coverage offered would not be sufficient for many consumers who have significant assets. For a full list of the details of the policy and its coverage click here. 
3. The insurance policy offered might be in conflict with existing insurance policies in place. If you carry a personal umbrella or excess liability policy through an insurance carrier other than Metlife will they provide you the excess liability protection you expect? Many carriers will require that you have your auto insurance with them in order to qualify for an umbrella/excess liability policy. This can also complicate things if you have your home and auto policies in a package, if you move your auto coverage away from your existing insurer you will lose the package discount of having your home and auto coverage bundled with the same company.
4. Who is your independent insurance agent? The offer does not detail who you will have as a resource from coverage questions, billing questions, and your resource if you need to file a claim.
5. Free coverage ends after a year. While you may save money on your insurance for a year’s time with the risk of having this specific, standardized policy not tailored to your needs, after your 12 months are up, the policy will not automatically be renewed or replaced. At the end of one year “eligible” customers will be offered a replacement policy at the end of the year at a premium that is determined by the company.  Nothing is guaranteed by this promotion!

The program offered by GM and MetLife is a good marketing gimmick. As discussed above as a consumer you will lose out with this program. You won’t have the immediate and direct assistance you get from an independent insurance agent and you won’t have the assistance to ensure that you are getting the best service, the best coverage and the best deal on your insurance. You lose the value that you find in having an independent insurance agent and the only value you gain is saving a year’s worth of insurance premiums to buy a new car.

Leonard Adams Insurance has been serving the insurance needs of the Pacific Northwest since 1933, trust as your independent insurance agent to take care of you and make sure that your have the best and proper coverage for you! Have questions? We have answers! Learn more from our Portland Oregon Auto Insurance page or contact us today at (503) 296-0077 for a no obligation auto insurance review.