Thanksgiving Risk Management

Ahh, Thanksgiving.  A time of food, family and football.  What could possibly go wrong on this wonderful holiday?  Well, for starters, how about house fires, food borne illness, intoxicated drivers, backyard injuries and more?  The following are some tips that will help better protect you and your family this Thanksgiving.

Fire Hazards

Many people forget just how dangerous cooking can be, especially when additional "cooks" and adult beverages are thrown into the mix.  Home fires on Thanksgiving nearly double from any other day of the year; and it's no wonder.  We all want to show off our culinary abilities, and often disregard common sense and normal safety precautions. Plus, your house is usually full of family and friends, which makes the potential of injury that much greater.  Here are a few things to consider.

• Leave the frying to the pros.  Deep-frying your turkey is one of the most hazardous things you can attempt to cook, and, yet, each year tens of thousands of Americans will attempt to do just that.  Make sure you follow all of the instructions on your fryer, or consider an alternate method of cooking.  None of the commercially available turkey fryers are listed as "safe" according to Underwriters Laboratories, an independent safety organization.  Check this video for some examples of what these things are capable of.

• Check your smoke alarm's batteries the day before to make sure they are functional.
• Cook as much as possible before Thanksgiving Day.  That way, you won't be overloading your oven.  Many fires are the result of trying to cram too many things into one oven.
• Check your fire extinguisher.  Make sure you know where it is, and that it's functional.  Also, make sure you have an appropriate extinguisher for the type of cooking you'll be doing.  Not all extinguishers are registered for grease fires and will do little to stop them.  

The Turkey

Hopefully, you've decided that deep-fried turkey is better left for the local fire department to prepare.  How then do you cook it?  Roasted, brined, braised?  Any way you decide to cook your turkey, you'll need to know how to prevent food borne illness.  Here are some tips:

• If you are brining your turkey (soaking it in a salt/sugar bath overnight), make sure it stays cold.  The best way to brine a turkey is keeping it in the fridge while it is soaking.  But the average turkey weighs 15 lbs., and most people brine in a Coleman cooler that is far too big for a home refrigerator.  So, just make sure you keep it covered in ice water.  Put more ice on it before bed and check it first thing in the morning.  Don't let the water temperature get above 40 degrees.
• Wash your turkey.  Yes, wash it.  So many people cook the turkey right out of the packaging.  Much of the bacteria in a raw turkey can be simply washed away.  Just make sure you pat it dry before cooking, so it will still brown.
• Pass the 409.  Everything the raw turkey touches needs to be cleaned with an antibacterial cleaner.  With the number of children and hungry guests in and out of the kitchen, you have to make sure that every contaminated area gets cleaned quickly.  
• Use a digital thermometer.  A thermometer needs to reach 170 before the turkey is safe to eat.  This includes whatever you stuff in the cavity, which is not advised.  A digital thermometer can be inserted prior to cooking in the thickest part of the bird.  You'll also be able to gauge how quickly the turkey is cooking and adjust the side dishes accordingly.

Beverages

We all like to celebrate.  Thanksgiving, like all holidays, is often an excuse to pour a little more wine, have a couple more beers or have that last glass of single malt scotch.  But, don't overdo it.  There are more people traveling on Thanksgiving than most days, and you need to keep the roads safe.  If a family member/guest has too many drinks, offer to call them a cab or provide a comfy couch for them to sleep on.  There's no excuse for letting a loved one get behind the wheel while drunk.  They could get a DUI as the police are out in full force, or, worse, they could injure or kill someone.  It's just not worth the risk.  Plan ahead.

• Have an exit strategy.  How are people getting there and how are they leaving?  Plan on designated drivers, cabs, or people crashing at your place for the night. 
• Stock the medicine cabinet.  If people do indulge (and they will), plan on having the essentials for a rough morning after.  Aspirin, gatorade and coffee should be on hand.  And make sure everyone drinks a large glass of water (or three) before bed.

Thanksgiving should be about fun with your family.  Some simple preparations will ensure that it stays fun from start to finish.  From all of us at JJ Wade Insurance, we wish you a Happy Thanksgiving!

Your Insurance Premiums Are Going Up

So you were notified that your insurance premiums are going up.  Again.  What to do?  If you're like most people, you'll head straight over to the computer and start typing. C-H-E-A-P_I-N-S-U-R-A-N-C-E.  But, is that going to solve the real issue?  Probably not.  Why did your premiums go up in the first place?  The answer, unfortunately, is most likely: Because of YOU!!!

Not me, you say.  But the fact is, whether you are an individual or a business and whether this is life & health or property & casualty, insurance is primarily based on the perceived risk involved.  Yes, the company (or in many/most cases the company's actuary-tweaked computer system) is looking at you and determining how risky you are as a client.  My goal is to point out a few things you need to know about why premiums increase, and if you can do anything about it.

Why Premiums Go Up:

1) Claims

This is a major reason many people see a spike in their insurance premiums.  But, isn't paying claims what insurance is for?  Well, yes and no.  Insurance is designed for protecting you from catastrophic losses that most of us could not recover from financially.  If your home burnt down, could you rebuild it tomorrow with the money that's in your savings account?  Probably not. 

But, many people use their insurance policies like a product warranty.  The old roof that need replacing turns into a "hail" claim.  You need to understand that the more you use your insurance policy, the more likely the insurance company is going to want more premium.  But, I'd argue that it's completely fair.  If a company has paid out $7400 in claims and your homeowners insurance went from $435 to $490, you're still getting a very good deal. 

Just be certain that when you turn in a claim, you understand that it might affect your loss history in a negative way.  This goes for all lines of insurance.  So, what to do?  Well, the more proactive you are about protecting yourself, the better your insurance rates will be.  In other words, the less risky you will appear to the all-knowing computer.

2) Changes in the Exposure

Many people don't put it together that a change in the "exposure" will result a change in the premium.  Up or down, there will be a change.  So, if you buy a new car, it might cost more to insure.  If your 16 year-old gets their drivers license, it WILL cost more to insure. 

Factor that in to purchasing decisions.  I know the last thing on your mind at the car dealership is your boring insurance agent, but you might need to hear that your 2011 BMW 550i will cost $120 more per month than your 2002 Honda Acura does.

3) General Rate Increases

Contrary to popular belief, Insurance companies are not made of money.  They do need to take in enough money to pay the claims and their staff.  Most companies operate with a very small margin of profit.  Most of their income is dependant on the stock market. 

Due to inflation and the general increase in the cost of living and goods, most companies need to periodically increase the rates.  Fortunately, the rate increases are usually very small (2-4%).  You should know that many times a rate increase affects all companies in a certain region or state.  So shopping around for better rates may be counterproductive.

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What can be done about keeping costs down?  Well, fortunately, the vast majority of insurance premiums are controllable to a degree.  Below is a small list for personal and business insurance that will help you understand your role in what you pay.

Personal Insurance (Home, Auto, Boat, Umbrella, Etc.)

• Practice Safe Driving - Make sure all drivers in the household know that speeding tickets, at fault accidents and other "reckless behavior" will be rewarded with a rate increase. 
• Be wary of "Free" Roofs - Know that many roofing companies are approaching homeowners indicating that they have "hail" or "wind" damage and that they are entitled to a free roof.  While those claims are covered under most homeowners policies, they are very rarely the sole cause of the damage.  Put simply, roofs in good shape do not suffer hail or wind damage frequently.  Whereas, old roofs in disrepair do.  Understand that a $7000+ roof claim, in addition to others, can increase your insurance premiums - or worse, make you uninsurable at all.  Make sure if you turn in a claim, it is for an occurrence that is sudden and accidental.
• Check out Consumer Websites on the cheapest autos to insure.  Many times, two equally priced and equipped vehicles will have vastly different insurance rates.

Business Insurance (Liability, Property, Workers Comp, etc.)

• Implement a Safe Workplace Program - Businesses have the most control over their Workers Comp pricing.  Therefore, making sure your employees stay happy, healthy and productive is critical in keeping your Workers Comp costs in check.  For more information about how to do this, check out our Work Comp page.
• Implement a Vehicle Management Handbook - Business Auto claims can be catastrophic.  Make sure all employees know how vehicles are to be used and how they're NOT to be used. 
• Implement Good Hiring Practices - Most claims begin on the date of hire.  If you knew that a person you're considering hiring for a driving position has three DWI convictions, you may want to look elsewhere.