Courtesy of iii.org

I came across this from Swiss Re around 2 a.m., which helps explain why it caught my (sleepy) eye:

Consider these two facts: Firstly, two out of three man-made losses worldwide are due to human failure. Based on Swiss Re’s sigma research, this would mean that people trigger a loss volume of around USD 3 billion per year.

Secondly, life insurance generated premiums of USD 2.6 trillion in 2017. These two facts are linked because tired people make more errors and insomniacs are at a greater risk of dying earlier than would otherwise be the case.

That’s right – the insurance angle on sleep.

The lack of sleep is associated with increased rates of heart attacks, strokes, obesity and other diseases. Sleeping less can also contribute to the development of Alzheimer’s. And recent research found that chronic sleep restriction increases risk seeking behaviour.

If these trends change the loss patterns in property and casualty or mortality rates, this could have a multi-billion dollar impact on the insurance industry in the long run.

The lack of sleep has caused some high profile accidents, the most notable in my world being a New Jersey Transit train that in 2016 crashed into Hoboken terminal because the engineer, suffering from sleep apnea, zoned out at a crucial moment. One woman died, dozens were injured.

Swiss Re posits that society, ever accelerating, robs us of ever more sleep. The less we sleep, the woozier we become. And the more errors we make. (Our bodies wear out faster too, becoming susceptible to the maladies Swiss Re mentions above.)

A good dose of resilience helps here. New York area railroads are installing (by federal mandate) positive train control systems, which automatically stop trains in any sort of peril, including that of a tired engineer. The illustration above describes how the system works.

As for my own struggles – an e-book of white text on black background, and perhaps a cup of chamomile tea.

Courtesy of iii.org

Each year, the insurance industry comes together for the Insurance Industry Charitable Foundation (IICF) Week of Giving. During this eight-day international and industry-wide initiative, insurance professionals complete volunteer projects in support of community nonprofit organizations.

The IICF is a nonprofit organization that unites the insurance industry in helping communities and enriching lives through grants, volunteer service and leadership. For more than 20 years, thousands of insurance industry volunteers representing their own companies work together in the spirit of industry camaraderie to serve local communities. These projects include partnerships with hundreds of nonprofits and charities, focused in the areas of early childhood literacy; homeless and veterans causes; support of women, children and families; food insecurity; child abuse prevention; beach, river and community park clean ups; disaster preparedness and safety; and other important programs. In 2017, nearly 10,200 industry volunteers, in 173 cities, participated in the IICF Week of Giving. More than 28,800 hours of service, dedicated to projects, were completed with nonprofits and community organizations across the United States and United Kingdom.

The 2018 Week of Giving runs October 13 – 20. For more information—and to sign up as a volunteer—go to www.weekofgiving.iicf.org.

2018 IICF Week of Giving Press Release

2018 IICF Week of Giving Communications Toolkit

2018 IICF Week of Giving Volunteer Team Leader Guide

2018 IICF Week of Giving How To Report Service Guide

2018 IICF Week of Giving FAQs

Courtesy of iii.org

Hey guys, I know you’re busy having fun watching football, but it’s time for us to have a talk about renters insurance. Why? Because the I.I.I. found that only 37 percent of renters have renters insurance. Which is bad, because renters insurance is important and good.

One of the most important things renters insurance covers is damage to your personal property. Your landlord’s insurance probably doesn’t cover any of your personal belongings if a covered loss happens to the apartment.

(Covered losses usually include fire, water damage from an overflowing sink, theft, vandalism, and a few other things. But be sure to talk to an agent and read your policy because different companies often vary in their wording.)

It’s important because you own things

The first objection I often hear about renters insurance is “Lucian, I don’t need it because I don’t own a lot of stuff.” Yes, we’re all about minimalist Instagram chic – in theory. But in practice, we own a lot of stuff, because we’re human beings who need clothes and dishes and sometimes we even own a couch.

Think about clothing for a minute. Unless you live by Miami Beach and only need a bathing suit, you own more than one set of clothes. A few pairs of pants. Blouses. Underwear (presumably). Maybe you own a suit or nice dress for work. If you live up north, you probably also have an entire winter wardrobe.

Now imagine you lost all your clothes in a fire. It could cost you hundreds, if not thousands of dollars to replace them. Because you own a lot of clothes.

Nothing is free – especially not replacing all your stuff

Another objection I often hear is “Lucian, won’t I just be giving those big insurance companies free money if nothing bad happens to my stuff?”

First, premiums are often pretty reasonable. The most I’ve ever paid for renters insurance was around $25 a month, and that was in a part of New York City where I was still probably getting a bargain. Some of the new app-based companies charge premiums as low as $5 a month. Your budget won’t hate you for that kind of expense.

Besides, no one ever says “at last, I can finally cash in on those insurance premiums I’ve been paying!” after their apartment building burns down and they lose everything.

Which leads me to my second point: an intangible value of insurance is peace of mind. People like to know that they don’t have to spend all their disposable income replacing everything they own. Odds are, you’re also one of those people.

Like life itself, renters insurance is about more than just the things you own

But let’s pretend for a minute you don’t actually own any stuff. Renters insurance also usually covers:

• Your liability expenses if someone gets hurt in your apartment. Imagine someone is over at your apartment that has no furniture in it because you don’t own any stuff. Now imagine that someone gets hurt after slipping on your uncarpeted tiled floor because you don’t own carpets and they sue you. Your renters insurance will probably cover some legal costs. And even if they don’t sue you, your insurance can cover certain medical expenses for your injured guest.
• Increased living expenses. Unfortunately, this doesn’t mean your insurer will cover your rent increase. But it does mean that if a covered loss (think: apartment fire) makes your apartment uninhabitable, your policy could reimburse you for food and temporary housing. You don’t want to be that person without renters insurance standing outside their burning apartment building in 20-degree January weather with no place to go.

It’s really easy to buy

We’re all busy, but applying for renters insurance takes maybe 15 minutes, tops. Many companies let you apply via an app, so while your train is hopelessly delayed you can use that time to protect yourself and your stuff. That way, if your apartment building catches fire while you’re at work, you can rest (relatively) easy knowing that you’ll have help buying replacement stuff and having a place to stay while you find a new apartment – for about the price of a coffee or four a month.

Seriously, get renters insurance.

Courtesy of iii.org

Insurance can provide limited coverage for property damage for small boats such as canoes and small sail boats or small power boats with less than 25 mile per hour horse power under a homeowners or renters insurance policy. Coverage is usually about $1,000 or 10 percent of the home’s insured value and generally includes the boat, motor and trailer combined. Liability coverage is typically not included–but it can be added as an endorsement to a homeowners policy. Check with your insurance representative to find out if your boat is covered and what the limits are.

Larger and faster boats such as yachts, and personal watercraft such as jet skis and wave runners require a separate boat insurance policy. The size, type and value of the craft and the water in which you use it factor into how much you will pay for insurance coverage.

For physical loss or damage, coverage includes the hull, machinery, fittings, furnishings and permanently attached equipment as part of either an actual cash value policy or on an agreed amount value basis. These policies also provide broader liability protection than a homeowners policy. But there are distinct differences between the two types of policies.

Actual Cash Value policies pay for replacement costs less depreciation at the time of the loss. In the event of a total loss, used boat pricing guides and other resources are used to determine the vessel’s approximate market value. Partial losses are settled by taking the total cost of the repair less a percentage for depreciation.

Agreed Amount Value basis policies mean that you and your insurer have agreed on the value of your vessel and in the event of a total loss you will be paid that amount. Agreed Amount Value policies also replace old items for new in the event of a partial loss, without any deduction for depreciation.

Physical damage exclusions might include normal wear and tear, damage from insects, mold, animals (such as sharks), zebra mussels, defective machinery or machinery damage.

Boat insurance also covers:

• Bodily injury—for injuries caused to another person
• Property damage—for damage caused to someone else’s property
• Guest passenger liability—for any legal expenses incurred by someone using the boat with the owner’s permission
• Medical payments—for injuries to the boat owner and other passengers
• Theft

Most companies offer liability limits that start at $15,000 and can be increased to $300,000. Typical policies include deductibles of $250 for property damage, $500 for theft and $1000 for medical payments. Higher limits may be available. Additional coverage can be purchased for trailers and other accessories. Boat owners may also consider purchasing an umbrella liability policy which will provide additional protection for their boat, home and car.

Boaters should also inquire about special equipment kept on the boat, such as fishing gear, to make sure it is covered and verify that towing coverage is included in the policy.

Boat owners should also inquire about discounts for the following:

• Diesel powered craft, which are less hazardous than gasoline powered boats as they are less likely to explode
• Coast Guard approved fire extinguishers
• Ship-to-shore radios
• Two years of claims-free experience
• Multi-policies with the same insurer, such as a car, home or umbrella policy
• Safety education courses, such as those offered by the Coast Guard Auxiliary, U.S. Power Squadrons, or the American Red Cross.

Boat Safety

There are thousands of recreational boating accidents per year. Contributing factors to these accidents include traveling too fast for water or weather conditions, driving under the influence of drugs or alcohol, failing to follow boating rules and regulations, carelessness and inexperience.

To prevent boating accidents, we offer these safety suggestions:

Care and protection of vessel

1. Check weather forecasts before heading out.
2. Let someone know where you’re going and when you expect to return.
3. Check engine, fuel, electrical and steering systems, especially for exhaust-system leaks.
4. Carry one or more fire extinguishers, matched to the size and type of boat. Keep them readily accessible and in condition for immediate use.
5. Equip the vessel with required navigation lights and with a whistle, horn or bell.
6. Consider additional safety devices, such as a paddle or oars, a first-aid kit, a supply of fresh water, a tool kit and spare parts, a flashlight, flares and a radio.

Care and protection of crew and guests

1. Make sure that every person on board the boat wears a life-jacket.
2. Know and obey marine traffic laws, the “Rules-of-the-Road.” Learn various distress signals.
3. Keep an alert lookout for other watercraft, swimmers, floating debris and shallow waters.
4. Pay attention to loading. Don’t overload; distribute the load evenly; don’t stand up or shift weight suddenly in a small boat; and don’t permit riding on the bow, seatbacks or gunwales.
5. Don’t operate a boat while under the influence of alcohol or drugs.

Skippers can obtain free advice and boating-safety courses from the U.S. Coast Guard Auxiliary. Upon request, the auxiliary will conduct a Courtesy Marine Examination (CME) on your boat, checking electrical and safety equipment and fuel hoses. Boats meeting safety standards are awarded the CME decal “Seal of Safety.”