What Motorcycle Insurance Coverage Is Required in New York State?

Operating a motorcycle is no different than driving a car when it comes to insurance. It is necessary to have your motorcycle insured to get it registered and to protect yourself and others in the event of an accident. Having proper coverage is crucial to operate a motorcycle legally and to protect yourself if you are injured.

Getting proper insurance coverage is necessary to operate your motorcycle in New York. It will be needed for purposes of registration and personal protection. ASZ International, Inc. in Westchester, NY has many years of experience helping motorists with a variety of different insurance options.

Do I need motorcycle insurance?

You will need minimum liability insurance to operate a motorcycle in New York. The state does allow individuals to carry a financial security bond or have a financial security deposit, but typically people purchase insurance from a provider to get minimum liability insurance. Helmets are mandatory in New York, and failure to wear one can have a negative effect on coverage if there is an accident.

What kind of motorcycle insurance is required?

Motorcycles are no different than cars when it comes to insurance requirements. They require the same type of liability coverage as cars do. There are slight differences, and some states do require some form of personal injury protection. New York does not require additional personal injury protection, though you may choose to get this added. Bodily injury, property damage, and personal injury are covered with minimum liability insurance.

If you own a motorcycle and need quality assurance, the agents at ASZ International, Inc. in Westchester, NY can help. Give us a call to speak to a representative today to discuss your insurance needs for your new or used motorcycle.

Protecting Your Boat Adventures with Boat Insurance in Westchester, NY

During the summertime, being able to enjoy the weather is what many individuals decide to do. Some people end up going to the lake to cook, swim, play sports, and have a good time. At the end of the day, having fun is a great thing, but we are here to protect you and your boat along the way. 

ASZ International is based in Westchester, NY, and believes in taking a different approach as an insurance company. As an agency, focusing on the fact that insurance is a crucial investment and a commodity is a better viewpoint. Protecting the investment that individuals make for their boat should be taken with the utmost care.

What are some of the things that you should focus on when searching the market for boat insurance? 

Bodily injury liability is one of the most important details of your coverage. Seeing that there is typically more than one person on a boat during the summer, protect yourself from medical expenses, just in case any injury happens on your boat. Property damage liability is also vital in the worst-case scenario that you are at fault for causing damage to someone else’s boat, docks, structures, or property. Collison damage is important in case you need something replaced on your boat or the boat repaired.  

Would you like to talk to one of our agents about boat insurance options available for you? Please feel free to contact us via phone call during our business hours at (800) 694-0279. ASZ International in Westchester, NY is ready to help you find the policy you need and start you off with a quote.

Coronavirus and Employment Practices Liability Claims

With the global economy facing potential upheavals from COVID-19, some companies could be forced to lay off employees. These actions will likely trigger employment practices liability insurance (EPLI) claims, especially knowing the commonality of these cases already.

Former employees might quickly jump to conclusions, such as wrongful termination or discrimination, resulting in EPLI litigation. Defending against allegations of this nature could be incredibly costly—even if there’s no legitimate cause found. An EPLI policy would work to cover defense costs and help your company navigate the jittery economy. 

In order to put your business in the best possible position ahead of a decision about a Employment Practices Liability claim, adhere to the following best practices.

Document and report claims immediately. Without ample notice and prompt filing, coverage will likely be denied. There is no downside to filing claims as soon as possible. Doing so ensures that your business will be in the right place when applicability of WC coverage claims are resolved.

Provide comprehensive details surrounding each claim. File each claim with as much detail as possible to ensure thorough review of your coverage and unique scenario by the carrier.

Record each individual claim by line of coverage. Doing so will make it easier to monitor carrier response internally and simultaneously provide your carrier with a simplified way to absorb multiple claims from your business.

Coronavirus and Directors & Officers Claims

One of the largest areas of exposure for public companies (and to some extent, private companies) is securities class actions and/or shareholder derivative claims relating to affirmative acts of mismanagement and/or failure to act/disclose by officers and directors in response to the COVID-19 outbreak.

Another major area of concern relates to liability arising from cyber security and privacy issues, given that many company employees are now working remotely to avoid exposure to COVID-19. The failure to sufficiently protect a company’s network could leave the company vulnerable to cyberattacks, ransom demands, loss of company data, and overall exposure for failing to insure against cyber risks.

Coverage under a D&O policy for the above exposures will vary according to the individual terms and conditions of the policy. Nevertheless, securities class actions and shareholder derivative claims are claims that typically fall within the scope of the insuring agreement under a D&O policy. In assessing the potential for coverage, careful review of several exclusions and other issues is necessary. For example, the language of any bodily injury exclusion should be reviewed for its breadth (e.g., claims “arising from” bodily injury vs. claims “for” bodily injury) as well as any exceptions to that exclusion, such as securities actions.

As is often the case with D&O claims, the language of the conduct exclusion (i.e., dishonest, fraudulent, malicious, and criminal acts) should be reviewed to determine whether its application requires a final adjudication exhausted by appeal or only “in fact” confirmation of such conduct. Moreover, claims also may implicate the professional services exclusion to the extent an employee’s professional services to the company gave rise to the claim, such as legal advice from an in-house counsel, forensic accounting services by the Chief Financial Officer, or otherwise.

As to cyber security and privacy, direct losses caused by a cyber event may need separate cyber insurance. To the extent the cyber event triggers a securities class action, however, there are a number of exclusions (including those discussed above) that may require consideration. For example, the exclusion for war or terrorism should be considered in the event of a cyberattack because there are instances in which cyberattacks are orchestrated by state actors or quasi-state actions and/or terrorist organization criminal enterprises – as opposed to random, “lone wolf” actors.

In order to put your business in the best possible position ahead of a decision about a Directors & Officers Liability claim, adhere to the following best practices.

Document and report claims immediately. Without ample notice and prompt filing, coverage will likely be denied. There is no downside to filing claims as soon as possible. Doing so ensures that your business will be in the right place when applicability of WC coverage claims are resolved.

Provide comprehensive details surrounding each claim. File each claim with as much detail as possible to ensure thorough review of your coverage and unique scenario by the carrier.

Record each individual claim by line of coverage. Doing so will make it easier to monitor carrier response internally and simultaneously provide your carrier with a simplified way to absorb multiple claims from your business.

Coronavirus and Workers’ Compensation Claims

At the precipice of the issue for employers and business owners is the liability they may be required to shoulder if essential workers contract the virus on the job, spread it to others or bring it home to their families. Could the business be liable for a workers’ compensation (WC) claim?

The answer is: it depends. The clarification of insurance coverage remains largely undecided as it relates to Workers Compensation. Right now, the answer is almost exclusively at the carrier’s discretion. Application of coverage eventually “may” be decided by state and federal courts, or government intervention.

Workers Compensation coverage is subject to each state’s jurisdiction. Currently, a few states – Kentucky, Washington State, Michigan and Colorado have officially ruled on WC and COVID-19. These states will provide Workers Compensation benefits or wage replacement to healthcare workers and first responders during the time they are quarantined after being exposed to the virus on the job. Washington State Workers Compensation coverage will pay for medical testing, treatment expenses and provide indemnity payments for those who cannot work, while the Kentucky Employers Mutual Insurance Co., said they will pay wage-replacement benefits for first responders or healthcare employees while in quarantine.

For non-healthcare workers and general employees in every other state, Workers Compensation coverage remains a moving target and compensability will be based on the work of each individual class, and ultimately determined by the carrier and individual state. It has to be in the course and scope of employment.

In order to put your business in the best possible position ahead of a decision about a Workers Compensation claim, adhere to the following best practices.

Document and report claims immediately. Without ample notice and prompt filing, coverage will likely be denied. There is no downside to filing claims as soon as possible. Doing so ensures that your business will be in the right place when applicability of WC coverage claims are resolved.

Provide comprehensive details surrounding each claim. File each claim with as much detail as possible to ensure thorough review of your coverage and unique scenario by the carrier.

Record each individual claim by line of coverage. Doing so will make it easier to monitor carrier response internally and simultaneously provide your carrier with a simplified way to absorb multiple claims from your business.

Coronavirus and General Liability Claims

Even though questions pertaining to how the General Liability policy will respond to COVID-19 has been limited, it is still important that it is addressed.

Legal Liability Required
To lead into the CGL’s response to the coronavirus, one key fact must be understood. If there is no legal liability, coverage is not triggered in the CGL and the policy will not respond. Legal liability exists when:

1. The wrongdoer is found guilty of “Negligent Conduct” (meaning they breached a duty owed to the injured party); 

2. The injured party suffers actual damages; and

3. The wrongdoer’s “Negligent conduct” is the proximate cause of the injury or damage.
 
Far more than these triggers are required to ultimately establish legal liability, but such detail is not the focus of this article.

Was There an “Occurrence”?
A second requirement contained within the insuring agreement plays a role in the CGL’s response to any injury supposedly arising from the coronavirus – the injury must qualify as an “occurrence” before the policy responds. The CGL form reads:

b. This insurance applies to “bodily injury” and “property damage” only if:
(1) The “bodily injury” or “property damage” is caused by an “occurrence” that takes place in the “coverage territory”
 
Within the CGL an occurrence is defined as an accident, including continuous or repeated exposure to substantially the same general harmful conditions. Is contracting a virus an occurrence within the policy form?
To decide if this qualifies as an “occurrence” the question must be asked, is passing along a virus an accident? Maybe, but there are too many variables are involved to provide a definitive answer. As part of the question of an “occurrence,” the injured party has to prove that the virus was contacted at the insured’s premises or arising from its operations. Given the specifics, this might be almost impossible.

For sake of the overall discussion, assume making another person sick qualifies as an “occurrence” in the CGL, and that the person is able to prove that his/her only exposure was at the insured’s locations or a result of the insured’s operations. 

If the insured is legally liable, if there is an occurrence as defined in the CGL and if the exposure can be narrowed down to the insured, the next step is to look for exclusions within the CGL.

Are There Any Exclusions?
Review the exclusions in the unendorsed CGL and only one exclusion could possibly negate coverage for spreading the coronavirus to members of the public, exclusion 2.a. Expected or Intended Injury. For example, if the insured requires an employee to continue working or come to work who is known to be infected, spreading the virus should be expected (even if not intended). No coverage due to the exclusion.

If, however, the expected or intended injury exclusion does not apply, there do not appear to be any other exclusions applicable to the spreading of the coronavirus. Although some enterprising claims person would surely try to use the pollution exclusion.

This leaves us with the impression that the CGL may provide coverage for infecting a third in certain circumstances. But this is not necessarily true.

A Common (Ubiquitous) Exclusionary Endorsement
Even if an incident leading to bodily injury from coronavirus clears all the required hurdles (the insured is legally liable, the incident qualifies as an occurrence, the injured party can prove the exposure is the from the insured’s actions, and the claim is not hindered by the expected or intended injury exclusion), there is still one roadblock – an exclusion common to most CGL policies – the CG 21 32 05 09 – Communicable Disease Exclusion.

Undoubtedly the question to be answered is, does a virus qualify as a disease? In a “roundabout” way, yes. It’s not the virus that causes harm, it’s the disease that results from the virus. The immune system destroys some viruses before they can cause any harm, but some viruses overpower the immune system and lead to sickness (disease).
When the CG 21 32 is attached, there is no coverage for the transmission of the coronavirus and the resulting sickness (disease).

How is the CGL Going to Respond to the Coronavirus?
Without overstating the reality, it seems rather unlikely that a CGL policy will ever pay a claim arising from the coronavirus. The facts may negate any possibility that the insured is legally liable for spreading the virus/disease. And even if the insured is legally liable, does spreading a virus actually qualify as an occurrence as defined in the policy? If these two insuring agreement conditions aren’t met, there is no need to go any further into the coverage form because there is no coverage.

In order to put your business in the best possible position ahead of a decision about a CGL claim, adhere to the following best practices.

Document and report claims immediately. Without ample notice and prompt filing, coverage will likely be denied. There is no downside to filing claims as soon as possible. Doing so ensures that your business will be in the right place when applicability of CGL coverage claims are resolved.

Provide comprehensive details surrounding each claim. File each claim with as much detail as possible to ensure thorough review of your coverage and unique scenario by the carrier.

Record each individual claim by line of coverage. Doing so will make it easier to monitor carrier response internally and simultaneously provide your carrier with a simplified way to absorb multiple claims from your business.

Coronavirus and Business Interruption Claims

COVID-19, better known as the Coronavirus, originated in Wuhan, China. According to the Centers for Disease Control (CDC), the Coronavirus is thought to be transmitted person-to-person through “respiratory droplets produced when an infected person coughs or sneezes … these droplets can land in the mouths or noses of people … or possibly be inhaled into the lungs.”

Major operations have slowed or even ceased operations, travel is at a bare minimum, and supply chains are severely disrupted in many industries. In reality, the ultimate global economic impact of this virus will remain unknown for many months after the danger and fear have passed.

ASZ continues to receive calls and emails nearly every day regarding the insurance implications of this virus, and the most common question relates to business income, specifically: “Is there business income coverage if a governmental authority (civil authority) requires businesses to close?”

Before business income responds there must be damage to property leading to the cessation of a business. This requirement applies to business income dependent property losses (supply chain) and civil authority losses covered by business income policies. Additionally, there is a specific property exclusion applicable to viruses that may (generally will) apply. This is true of “standard” business income forms; there may be some proprietary forms that respond, but these are rare.

In response to the Coronavirus, and because many, if not all policies contain a virus exclusion, the Insurance Services Office (ISO) created two business income endorsements as a specific response to the Coronavirus:

  • Business Interruption: Limited Coverage For Certain Civil Authority Orders Relating To Coronavirus ─ Edition February, 2020; and
  • Business Interruption: Limited Coverage For Certain Civil Authority Orders Relating To Coronavirus (Including Orders Restricting Some Modes Of Public Transportation) ─ Edition February, 2020

Coverage provided by both endorsements:

  • Begins immediately upon suspension of the insured’s operations (there is no waiting period).
  • Extends for the time period specified in the schedule.
  • Is provided on an annual aggregate basis limited to the amount stated in the Schedule.

Both endorsements:

  • Provide limited coverage when/if there is a suspension of operations due to closure or quarantine at the insured location ordered by a civil authority attempting to avoid or limit the spread of infection by a Coronavirus.
  • Extend dependent property coverage (contingent business income) for named locations, if the policy includes dependent property coverage, when there is an interruption in the insured’s business due to closure or quarantine to avoid or limit the spread of infection by a Coronavirus ordered by a civil authority at the dependent property.
  • Apply to income loss suffered by insureds operating from a vehicle or mobile equipment, if the policy is endorsed to recognize such vehicle-based operation.

Lastly, both endorsements specifically exclude:

  • Intentional action by any person, group, organization or sovereign state to introduce or spread the virus;
  • Costs to clean, disinfect, dispose of or replace any property;
  • Costs to disinfect or dispose of any bodily fluids or waste materials;
  • Costs of testing for or monitoring the presence or absence of the virus;
  • Loss or expense due to fear of contagion, e.g., when customers, tenants or vendors avoid a part of the insured’s premises not under quarantine;
  • Loss or expense related to absence of infected workers or those suspected of being infected; and
  • Any fines or penalties.

Even BI policies with a pandemic endorsement(s) are being reviewed by carriers at this time due to other exclusions in those policies that may prohibit coverage for COVID-19. The mandated closure of businesses has not yet altered the coverage position set forth by these policies.

In order to put your business in the best possible position ahead of a decision about a BI claim, adhere to the following best practices.

Document and report claims immediately. Without ample notice and prompt filing, coverage will likely be denied. There is no downside to filing claims as soon as possible. Doing so ensures that your business will be in the right place when applicability of BI coverage claims are resolved.

Provide comprehensive details surrounding each claim. File each claim with as much detail as possible to ensure thorough review of your coverage and unique scenario by the carrier.

Record each individual claim by line of coverage. Doing so will make it easier to monitor carrier response internally and simultaneously provide your carrier with a simplified way to absorb multiple claims from your business.

Can You Benefit from Umbrella Insurance?

Some people have the mistaken idea that umbrella insurance is only for the rich. If you own a home or have financial assets, you can benefit from what umbrella policies have to offer. Umbrella insurance provides extra liability protection above the limits of your home, condo, or auto liability coverage. In fact, you cannot purchase an umbrella policy unless you have another form of liability coverage.

Here’s what an umbrella policy from ASZ International, Inc. in Westchester, NY has to offer you:

Higher Liability Protection

Umbrella policies offer much broader liability protection than that provided by the typical home, auto, or condo policies. This extra protection will cover broad liability claims made against you for serious accidents you may cause. Umbrella insurance also protects you against issues that aren’t covered by other liability insurance, such as slander, libel, and defamation of character.

Umbrella insurance begins when your primary liability coverage runs out, so there are no gaps in your coverage. This extra coverage saves you from having to pay the damages of large liability claims out-of-pocket.

Protection from Lawsuits

Umbrella insurance protects you against lawsuits if a severe accident prompts someone to sue you for damages. A major lawsuit can quickly deplete you of present and future financial assets. The more assets you own, the greater your chances of being sued. Losing a lawsuit could cause you financial ruin.

If you participate in a sport that poses a risk to others, own an aggressive dog, or have a pool on your property, you may be more susceptible to a lawsuit in the event of an accident. Umbrella insurance can protect your home, savings, retirement funds, and even future earnings from large liability claims that can lead to a lawsuit.

To learn more about umbrella insurance policies, contact ASZ International, Inc. in Westchester, NY today.

What Every New York Resident Should Know about Flood Insurance

The weather in Westchester, NY keeps changing and getting worse by the day. Tropical storms, Nor’easters, and severe thunderstorms have deluged the county with higher intensity and frequency.

At ASZ International, Inc., we recommend checking your area to find out if it is in a flood zone and taking the necessary safety and precautionary measures to lessen the effects caused by floods on residential homes and business premises. Here is what to do if you find out that you live in a flood-prone area.

  • If you are under a flood warning, evacuate and find shelter immediately. 
  • Do not try to drive or walk through flooded waters and keep off bridges with fast-moving waters.
  • Determine how you can stay safe based on the type of flooding. You can evacuate, move to higher grounds, or stay where you are till help comes.
  • If flash floods are a risk in your area, monitor potential signs like heavy rains and stay up to date with the weather forecast.
  • Gather supplies in case you need to leave the house immediately while keeping in mind the unique needs for every occupant in that house, like medication and pet food. Have external phone batteries and other critical equipment.
  • Keep relevant and essential documents in a safe, waterproof container and create a password for digital copies.
  • If you have enough time, move your property, including valuables, to safer areas. Declutter all gutters and drains.
  • Depending on where you are and the effects and warnings provided by the government, determine a safe area to go or prepare an emergency exit plan for floods.
  • If you have been told to evacuate, don’t hesitate or waste too much time packing. Do so immediately. 
  • If your vehicle is trapped in moving water, stay inside, but if the water is rising inside, seek refuge through the roof.

Another important thing on your things-to-do before flooding begins is to purchase flood insurance. Floods are not covered under homeowners’ insurance; therefore, it’s prudent that you have this separate.

In case you feel stranded or need further clarification on how to stay safe from floods, speak to ASZ International, Inc., and we will answer all your questions.

What Is Covered With Condo Insurance?

Many insurance companies offer condo insurance policies but what it covers is different from one company to the other, as well as the premium. However, when you purchase your condo insurance from ASZ International, Inc., serving people from New York to Connecticut, it will come with the following coverage.

Loss Assessment

You will be compensated for your portion of any losses allotted to you by the association. An accident can happen at any time where your residents incur some losses. In such a situation, the association will share the losses proportionately. In such a situation, you’ll fall back to your condo insurance policy.

Loss of Use

If your apartment is uninhabitable, for some reason, you may have to lodge elsewhere depending on when it can be fixed. You will be compensated for the cost of lodging elsewhere and the cost of your transportation to the location. 

Personal Liability

If you’re being sued for any damages, you’ll be compensated for your legal expenses from the claims against you, should you be found culpable. This is the most important coverage in the insurance policy as a single lawsuit could plunge you into debt. 

Personal Property

When your furniture, electronics, and other movable goods get damaged or stolen, you will be paid the cost. In case your apartment is razed by fire or it gets flooded, many of your appliances will be damaged. This is where this coverage comes in handy. 

Building Property

This coverage is for the unit itself and this also includes the fixtures and walls. 

Bear in mind that this coverage can vary slightly across states and insurance companies. So, before you purchase it, always take the time to check what it covers. Initially, it may sound expensive, but in the long run, you will enjoy it. In fact, it is worth the cost.

Some associations make it mandatory for condo buyers to purchase the policy. For more information, contact ASZ International, Inc. in Westchester, NY.