Earthquakes, though they are among the most catastrophic natural disasters, are infrequent and unpredictable, so many people choose to ignore the risk. However, not preparing for an earthquake could be a devastating decision in the long run. Find out more about earthquakes and protecting your business.
In the past 100 years, earthquakes have occurred in 39 states, and about 90 percent of Americans live in areas considered to be seismically active. According to the Earthquake Education Center at Charleston Southern University, there is a 40 to 60 percent chance of a major earthquake occurring in the eastern United States in the next 20 years. The Midwest region of Arkansas, Kentucky, Missouri and Tennessee has a similar probability of a major earthquake in the next 15 years. In addition, increasing urban development in seismically active areas and the vulnerability of older buildings has increased the potential cost associated with earthquake recovery.
Earthquake Hazards
The damage caused by earthquakes can be quite extensive and can take many forms. They can seriously damage buildings and the contents within, along with disrupting gas, electric and telephone services. Equipment, ceilings, partitions, windows and lighting fixtures often shake loose, resulting in a significant danger for building occupants. Beyond the physical damage caused by the earthquake itself, an earthquake can also trigger landslides, avalanches, flash floods, fires and tsunamis. In addition, aftershocks often occur for weeks following the initial earthquake.
What’s The Implication For Your Business?
Building damage can result in long or short-term business interruption. Just as detrimental can be the loss of utilities, which can occur even if your building is relatively intact. In addition, your employees will be unable to work, there will be difficulty getting supplies or materials, you may not be able to pay employees, there maybe difficulty delivering products and customers may go elsewhere for goods or services. Without any cash flow during and right after the incident, resuming operations becomes an uphill battle in the aftermath of the quake.
What’s Your Earthquake Risk?
Nearly everyone in the United States is vulnerable to an earthquake, but certain areas carry a much higher risk. California, Oregon and Washington are the highest-risk states, but a dangerous fault also runs through parts of Illinois, Arkansas, Indiana, Kentucky, Mississippi, Missouri and Tennessee. The U.S. Geological Survey website can offer you more specific information of your state’s exposure.
If you are located in one of these states, then protecting your company against earthquakes should be a large part of your risk management and contingency planning programs. Even if you do not operate in the most at-risk states, you should consider the catastrophic possibilities of an earthquake and protect your company accordingly.
There are many effective precautions, ranging from simple and cost-effective to comprehensive and far-reaching, and you can determine just how thoroughly to integrate various measures based on your risk factor.
Beyond geography, there are other areas that could increase or decrease your company’s exposure to the effects of an earthquake. Certain factors may limit your company’s access to resources, ability to maintain clients, access to credit,opportunity to receive governmental support and overall chance of survival. Such at-risk firms include young companies, small companies, those in highly competitive industries, independent firms and those in any type of financial trouble at the time of the disaster. However, even businesses that fall into these categories can survive and succeed after a natural disaster with the right type of preparation and planning.
How To Protect Your California Business
More so than other natural disasters, earthquakes occur suddenly and without warning, leaving you little time to prepare. These strategies can be effective for any business and can truly make a big different in your company’s chance for survival.
Inspect your facility or hire an engineer to do so. Make sure it is up to building codes and that everything is braced and reinforced properly.
Secure all shelves,cabinets, tall furniture, equipment, machinery and anything that could move or fall. Move large and heavy objects to lower shelves, and never hang heavy items near work spaces.
Important documents, such as inventory and financial records, insurance forms and documentation of valuables for insurance claims, should be copied and stored in a secure, off-site area. Otherwise, any claims following a quake could be delayed or denied.
Identify resources that you may need following a disaster, including local aid groups, banks, utility companies, law enforcement, government aid groups, public works departments and hospitals.
In addition to taking the above steps to safeguard your business, it is important to have a comprehensive business interruption planin place in order to decrease costly business interruption.
You should identify critical systems, operations, services, supply chains and personnel. Some possible backup measures include mirrored data sites in multiple locations, backup work sites, the ability of employees to work from home and multiple communication alternatives. Any remote backup business site should be as far as possible to avoid the disaster, but close enough for employees to commute. Data and hardware backups should be even farther away, and high-risk businesses should have multiple backup locations.
Educating Your Employees
Just as important as protecting your business is protecting your employees. Much of this will come from planning and education.
Establish policies and procedures, including what to do during and after an earthquake. Teach employees to “drop, cover and hold” (drop to the ground under something sturdy and taller than you, cover your head and hold onto the object you’re beneath)in the event of an earthquake, and conduct drills so employees are comfortable with the procedure.
Ensure employees are familiar with all contingency plans and how they fit into those plans.
Educate employees about possible hazards that an earthquake can cause and train them to handle possible scenarios they may face. For instance, they may need to shut off the water, gas or electricity lines.
Your California Business Insurance Coverage
Depending on your risk factor, earthquake insurance may also be a wise purchase to fully protect your business. Earthquakes are not covered under standard business insurance policies, so you will need to buy either an endorsement to supplement your policy or a separate earthquake policy. These policies will generally cover building and property damages caused by the shaking of an earthquake.
You should also consider business interruption insurance and commercial property insurance policies. Though it may feel like overkill, each of these policies generally covers different aspects of earthquake damage. Read these policies closely and consult an expert to avoid coverage gaps, as some will specifically exclude claims due to earthquakes. You should also know how much time you have to file a claim following the quake since damage is not always immediately apparent.
Most commercial auto policies will cover earthquakes in the comprehensive portion of the policy, and workers’ compensation insurance will cover injury to employees at work during an earthquake. However, because earthquakes are such a unique and large-scale risk, many insurers avoid offering coverage or provide scaled-down policies. It is vital that you understand exactly what each of your policies covers—GDI Insurance Agency, Inc. can help ensure that you don’t have any coverage gaps.Ideally, you should have enough earthquake coverage to cover all replacement and reconstruction costs for your building and equipment.
The cost of earthquake insurance will depend on your location, the age of your building and the type of structure—ensuring that your building is up to modern codes can help reduce your premiums. Earthquake insurance typically carries a relatively high-percentage deductible that can range from 2 to 20 percent of your coverage amount. But don’t let the cost deter you from purchasing insurance—you should consider all of your risk factors with the cost, taking into account your potential losses if an earthquake occurred and you were uninsured or underinsured.
Don’t Wait Until It’s Too Late
It is easy to have the attitude of “it will never happen here,” but instead, you should consider how a catastrophic event such as an earthquake would affect your business. Will your company be able to survive? Will it ever be the same after? Think carefully about those questions and assess your risks to keep your company safe.
GDI Insurance Agency, Inc. can help you develop risk mitigation strategies, implement preparation measures and discuss your insurance coverage needs.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more.
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive business insurance quote!
Commercial fleets need to maintain a workforce of loyal, qualified drivers in order to succeed. But recently,increased demand for freight volume has highlighted an ongoing driver shortage that’s left many motor carriers operating under capacity. Find out how to attract and retain commercial drivers.
In order to ensure that your business can attract and retain talented drivers, you need to evaluate how the shortage may be affecting you and the steps you can take to make your workplace appealing.
What’s Contributing to the Shortage?
The first step to attract or retain commercial drivers should be to understand the underlying causes of the driver shortage:
Wages—According to the National Transportation Institute, drivers’ wages have lagged behind both inflation and minimum wage increases. Since 2006, for-hire drivers have seen wage increases of 6 percent compared to a 17 percent increase for private fleet drivers. However, inflation and the minimum wage have increased by 18 and 40 percent over that same period, respectively.
Age—The average age for a commercial driver is 55, according to the Bureau of Labor Statistics. More drivers are retiring every day, and a federal law that prohibits drivers under the age of 21 from obtaining intrastate commercial driving licenses makes it difficult to attract younger replacements before they enter another industry.
Lifestyle—Commercial drivers often operate over long hours without breaks and are frequently away from home. Many motor carriers also assign new drivers to long or isolated routes, which can make open positions unappealing to prospects.
Growing economy—As the U.S. economy continues to grow, increased demand from retailers has led to record demand for trucking capacity, putting a strain on available drivers.
In-house Adjustments to Attract and Retain Commercial Drivers
Before you consider changing your pay models or workplace benefits, there may be some operational changes you can review to attract or retain commercial drivers:
Offer flexible scheduling. Many prospective drivers are afraid of being away from home for long periods of time, and giving them the option to work closer to home can make your business more appealing.
Consider new fleet management procedures or technology to help reduce your drivers’ average length of haul.Although you want to keep your drivers on the road frequently to increase your capacity, reducing the average length of haul can help drivers improve their health and manage the balance between their work and home lives.
Adjust training programs to target other departments or industries.Prospective drivers may be intimidated by the amount of experience or legal requirements needed to obtain a commercial driver license. Simply adjusting your training programs can help your business integrate drivers from outside the industry.
Wage Considerations For Truck Drivers
One of the most effective ways to appeal to
drivers is to increase wages. Although this can be done by simply giving
drivers a set raise or bonus, there are alternative payment models and other considerations
to keep in mind:
Bonuses—Many carriers now offer staggered bonuses that incentivize
retention, such as $10,000 bonus that’s split into payments after a driver has
worked for 30 days, 90 days and six months. However, some experts believe that
these bonuses may also cause drivers to leave once they’ve collected all of
their payments.
Hourly pay—Drivers aren’t frequently paid by the hour because it’s
hard to prove when they’re on duty. But now, tracking technology like GPS and electronic
logging devices can make it easy for carriers to know when their drivers are on
the job.
Flexible models–Many businesses have started to incorporate
multiple pay models into their operations to accommodate drivers. For example,
drivers who are paid by the mile earn very little when slowed by traffic or
unloading. Now, tracking devices can detect legitimate delays and switch to a
different pay model during that time in order to make long or congested routes
more appealing.
When considering raises, bonuses or other pay models, keep in mind that your drivers’ wages could impact your liability or workers’ compensation rates. Contact GDI Insurance Agency, Inc. at 209-634-2929 for more help addressing your specific concerns.
Workplace Benefits For Truck Drivers
Another way to make your business appealing to talented drivers is to offer a competitive benefits package and create a positive work environment. Besides 401(k) investment matching and comprehensive medical coverage, you should consider the following:
Paid time off to allow drivers to visit home or take a break while still making an income
In-house programs that reward successful drivers with priority at service stations, pay bonuses or new equipment
New equipment and vehicles to make drivers’ day-to-day operations easier and attract tech-savvy applicants
Additionally, an emphasis on respect can help your business attract and retain drivers. Experts believe that drivers maybe turned away from the transportation industry due to a perceived lack of respect for the long hours they put into their jobs. Make sure to show drivers they’re respected by paying attention to their feedback, recognizing their accomplishments and staying involved in their personal and professional lives.
Finding Consistent Success
The driver shortage isn’t going away anytime soon, and you need to constantly review your operations to ensure you’re attracting and retaining a talented workforce. Get in touch with GDI Insurance Agency, Inc.today for more resources on driver training, legal requirements and transportation-specific news.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more.
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive commercial auto insurance quote!
California has enacted a new law that requires employers with five or more employees to provide sexual harassment training. This training is required within six months of when each employee assumes a position. The state has also enacted other new laws addressing workplace harassment. Is your business ready?
On Sept. 30, 2018, California enacted a series of laws that strengthen the state’s protections against workplace harassment. Effective Jan. 1, 2019, these new laws:
Require employers with five or more employees in the state to provide sexual harassment prevention training to all employees;
Expand and clarify employer liability for workplace harassment; and
Prohibit employers from entering certain agreements related to sexual harassment and other unlawful acts in the workplace.
GDI Insurance Agency, Inc. Training Program
Our clients have access to an online sexual harassment training through our HR program, at no additional cost to them. Protect your business with this convenient training program!
Our training is an online platform with built-in monitoring and status updates on training taken by each employee.
The training can be taken all at once or broken out into smaller time segments as needed.
You can even have their OSHA logs on the same portal.
All California employers should become familiar with the new laws. Those with five or more employees should review the new training requirements and monitor the California Department of Fair Employment and Housing’s (DFEH) website for training courses and additional guidance.
If you are a client of GDI Insurance Agency, Inc. and need access to the training, contact us today.
If you are NOT a GDI Insurance Agency, Inc, it’s not too late. Get your business quote today and we’ll get you started on your way to this required sexual harassment training. Contact us today 209-634-2929.
Why Did The Law Change?
The California Fair Employment and Housing Act (FEHA) broadly prohibits workplace harassment. All employers in the state are prohibited from harassing individuals or allowing harassment based on any of the protected traits listed below. Employees, applicants, unpaid interns, unpaid volunteers and anyone providing services under a contract in the workplace are all protected under the law.
Under the FEHA, any employer, regardless of size, may be held liable for sexual harassment committed in its workplace, even if the harasser is not an employee. The FEHA also requires employers with 50 or more employees in the state to provide sexual harassment prevention training to all supervisory employees every two years.
Overview of Changes Effective Jan. 1, 2019
Effective Jan. 1, 2019, the FEHA is expanded as follows:
The current requirements for supervisor training on sexual harassment are expanded to employers with five or more employees. These employers must also provide one hour of sexual harassment training to all nonsupervisory employees.
Employers may be held liable for workplace harassment that is based on any protected trait (not just sexual harassment) committed by nonemployees in the workplace. The rules on what an employee must prove in a harassment claim have also been clarified.
Employers may not require an employee to sign any agreement that waives a claim or right for workplace discrimination or harassment, or that prevents disclosure of any information about unlawful acts in the workplace.
California law has also been changed to prohibit confidentiality requirements in sexual harassment claim settlements and sex discrimination claim settlements.
New Training Requirements
Effective Jan. 1, 2019, every California employer with five or more employees must provide:
Each supervisory employee with at least two hours of sexual harassment training; and
Each nonsupervisory employee with at least one hour of sexual harassment training.
The appropriate sexual harassment training must be completed by each employee within six months of assuming his or her job. Each employee must receive the appropriate training once every two years. The deadline for initial compliance with these requirements is Jan. 1, 2020. Employers must provide the initial training after Jan. 1, 2019, in order to meet this deadline.
As of Jan. 1, 2020, special requirements will apply for seasonal employees, temporary employees and any employees who are hired to work for less than six months. For these employees, employers must provide the required training within 30 calendar days after the employees’ hire dates or before the employees have worked 100 hours, whichever comes first.
The DFEH plans to develop two online training courses that employers may use to satisfy the training requirements. Employers should monitor the DFEH website for these courses and additional guidance.
Expanded Employer Liability for Workplace Harassment
The FEHA allows an employer to be held liable for acts of workplace sexual harassment committed by nonemployees under certain circumstances. Effective Jan. 1, 2019, employers may also be held liable for nonemployees’ acts ofany type of unlawful workplace harassment. An employer may be held liable if:
A nonemployee commits harassment against any of the employers’ employees, applicants, unpaid interns, unpaid volunteers or people providing services pursuant to a contract in the workplace;
The harassment is based on any FEHA-protected trait;
The employer (or its agents or supervisors) knows or should have known of the conduct; and
The employer fails to take immediate and appropriate corrective action.
Prohibited Waivers and Confidentiality Agreements
An employer may not require an employee to sign either of the following in exchange for a raise or bonus, or as a condition of employment or continued employment:
A release of a claim or right against the employer for employment practices that violate the FEHA; or
A non-disparagement agreement or other document that prevents the employee from disclosing information about unlawful or potentially unlawful acts in the workplace.
These rules apply to agreements executed on or after Jan. 1, 2019.
These rules do not apply to agreements to settle claims involving unlawful acts in the workplace that have been filed by an employee either in court, with an administrative agency, in an alternative dispute resolution forum or through an employer’s internal complaint process. However, there are new restrictions on settlement agreements involving claims of:
Workplace sexual harassment;
Employment discrimination based on sex; or
Retaliation related to claims of sex discrimination or sexual harassment in the workplace.
Effective Jan. 1, 2019, these settlement agreements may not include any provision that prevents the disclosure of factual information related to the underlying claim. Settlement agreements executed on or after Jan. 1, 2019, that violate this prohibition are void and unenforceable. The bill also prohibits courts from issuing any order or stipulation that restricts this type of disclosure in sex discrimination or sexual harassment cases.
However, settlements for sex discrimination or sexual harassment may shield the claimant’s identity and all facts that could lead to the discovery of his or her identity (including pleadings filed in court), as long as the claimant is the one who requests it (and as long as no government agencies or public officials are parties to the settlement agreement). In addition, settlement provisions may prevent parties from disclosing the amount paid for a claim settlement.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc.is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more.
With locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive business insurance quote!
In-Unit and Building Risks for Apartments and Condos
We understand that managing a property—whether it be an apartment, condominium or similar dwelling—can be a challenge, particularly from a risk managementstandpoint. Even if a property manager only looks after a single space, they face innumerable exposures—exposures that can come from a variety of sources and lead to thousands of dollars in damages and loss of income potential in an instant. In-unit and building risks are a source of these exposures. You can download our Loss Control Guide for Apartments and Condos for a full description and valuable checklist.
You can’t always predict when a major fire, disaster, accident or similar incident will occur. However, with the right loss prevention program, you’ll be properly prepared and can reduce the impact of an incident or even eliminate certain risks altogether. Having a comprehensive habitational insurance policy can protect your apartment or condo complex. Call GDI Insurance today 209-634-2929.
Balconies and Deck Liabilities
Balconies and decks create a variety of potential injury and liability concerns. In the event that they fail or don’t feature the proper guardrails, residents can fall and injure themselves. In addition, residents may store heavy items on these structures, which can injure passersby if they fall.
Many injuries related to balconies and decks are a result of poor construction, improper maintenance, structural weaknesses and, in some instances, inadequate warnings to residents. To protect you and your residents, it’s important to be proactive in managing building risks associated with balconies and decks.
How are Windows an Exposure?
While some building risks differ depending on the type of dwelling, windows are a universal exposure. What’s more, windows present a variety of potential liability concerns, and property managers need to account for all of them.
Not only do faulty windows create potential injury risks related to falls and broken glass, but they can also lead to security and break-in concerns. This is especially true for units on the first floor. Additionally, broken windows that go unrepaired can increase the likelihood of water damage caused by storms or even cause heating and cooling problems at your property.
Doors and Locks Your First Line of Defense
When it comes to building security, doors and locks are your first line of defense. Residents expect safe and secure buildings, and it is your job as a property manager to control access to your property and individual units. To protect resident safety, it’s essential to secure your building and provide appropriate means of egress in the event of an emergency.
While apartments and condos have traditionally relied on key and lock systems, more and more modern buildings are turning toward electronic access control systems (key fobs). Both of these systems have their advantages and unique security considerations.
Mechanical, Plumbing and HVAC Systems
Mechanical, plumbing, heating and cooling systems are complex and an essential component of every property. A failure in any one of these systems can directly affect your residents, leading to a number of potential issues. Regular preventive maintenance tactics and structured repair procedures are crucial for ensuring the smooth operation of mechanical, plumbing, heating and cooling systems, and the health of your property.
Electrical Safety Building Risks
Electricity is one of the most important components of comfortable and functional housing. The use of electricity in your building is unavoidable, making the proper safety protocols even more critical. Improper electrical safety in your building can lead to resident injuries or even death. What’s more, something as simple as an overloaded outlet can cause extensive property damage.
To protect your building and residents from the dangers associated with electricity, you must take care to inspect your property thoroughly and establish the appropriate safety standards.
Building Premise Security
Security can be a scary prospect for property managers. While you want to provide your residents with a safe place to live, the level of security you need to provide is not always clear-cut and, if it is lacking, could potentially make you liable for damages.
Increasingly, residents are looking to receive compensation from their property managers after they fall victim to a crime on leased property. It’s becoming more common for courts to rule in favor of the residents. While property managers are not responsible for the damages caused by every criminal act, they do have a duty to provide residents and their guests with reasonable measures of security. The simplest way to avoid liability is to reduce opportunity by eliminating conditions that attract criminals.
What To Do Next
Many building risks stand between a property manager and a secure building. To keep residents safe, it’s imperative that property managers take every precaution and thoroughly inspect their premises regularly. Doing so not only reduces liability concerns, but it can also make your property more attractive to potential residents. Download our Loss Control Guide to find out how to avoid most risks. Contact GDI Insurance Agency, Inc. for your habitational insurance quote209-634-2929.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more.
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive insurance quote!
Elemental and Weather Related Apartment and Condo Risks
Managing a property—whether it be a California apartment, condominium or similar dwelling—can be a challenge, particularly from a risk management standpoint. Even if a property manager only looks after a single space, they face innumerable exposures. These exposures that can come from a variety of sources and lead to thousands of dollars in damages and loss of income potential in an instant. Today we are going to look at elemental and weather related apartment and condo risks.
To assess their various weather related apartment and condo risks, property managers should implement a loss prevention program. Loss prevention programs are procedures, policies and other steps organizations can implement to reduce the likelihood of an insurance claim or costly incident. In the property management industry, loss prevention programs set the standard for how stakeholders maintain and improve the buildings and units they oversee.
Download our Loss Prevention Guide for Apartments and Condos
At GDI Insurance Agency, Inc.we want to make sure you are prepared for disasters with a loss prevention program for your apartment building or condo. This easy to use guide includes multiple Loss Control Checklists, to help reduce your buildings’ risks. Download it today, or give us a call to find out how we can help! 1-209-634-2929.
You can’t always predict when a major storm or disaster will arrive. However, with the right loss prevention program, you’ll be properly prepared and can reduce the impact of weather related apartment and condo risks.
How To Deal With Water At Your Apartment or Condo
Water is one of the most common causes of property damage. Water damage is not only expensive—it can also create potential health risks. What’s more, an incident in one unit can easily affect other areas of your building, including common areas and other residents’ apartments. Rain can cause weather related apartment and condo risks.
Water damage is particularly concerning, and its effects can linger long after the initial damage occurs in the form of stains and mold. While water damage is usually associated with flooding, the most common sources of water damage are often overlooked:
HVAC systems—Heating, ventilating and air conditioning (HVAC) systems are necessary in maintaining a comfortable space. However, if these systems are not properly maintained, they can cause serious, costly water damage.
Water heaters—Water heaters hold and transfer water continuously. When these systems fail, they release water and can cause significant property damage. Over time, deposits accumulate at the bottom of the water heater tank and corrode the tank liner. Moving water can also cause substantial wear and tear on a water heater tank and its piping.
Damaged roofing systems—Your building’s roof is part of a complex system of coverings, flashing, metal work and sealants that work together to keep water out. Leaks in your roofing system can lead to rot and mold growth, even damaging surfaces inside the building. Furthermore, severe roof damage can allow water to pool in your building, causing major structural damage.
Faulty windows—Windows require routine maintenance to remain watertight. Windows that are improperly sealed can allow water to seep into your building. Keep in mind that a more complex window system may require additional attention to prevent damage.
Exterior walls—Exterior walls are designed to shed water; however, they are not built to hold back standing water. As water pushes against a building, it can deteriorate the protective layers, creating an entry point for water. The likelihood of water damage increases whenever landscaping or the grading of exterior soil allows water to drain toward or stand against walls.
Freeze-ups—During severe cold spells, sprinkler systems and water pipes can freeze, burst and cause devastating water damage. Equipment that contains or uses water, produces condensation or relies on pneumatic controls is also susceptible to freezing and water bursts.
Sewer backups—Sewer backups occur when sewer systems are over capacity or when a blockage is present. The excess water created from blockages can force sewage into buildings through floor drains, toilets and sinks.
Household appliances—Any appliance with pipes or other fixtures that feed into a water line has the potential to develop blockages or spring leaks, which can lead to serious flooding if left unchecked. Property managers need to be particularly cautious of refrigerators, dishwashers, washing machines and water heaters, and make sure to install and maintain them properly.
Bathroom and kitchen fixtures—Of all the areas in your building, bathrooms and kitchens are the most prone to water incidents. To complicate matters, property managers aren’t always aware of plumbing issues that occur within individual units, making it all the more important to educate residents and perform regular maintenance.
Automatic sprinkler systems—Leaks in connection points and damaged sprinkler heads can cause not only property damage, but also damage to tenants’ personal property for which you could be held liable.
Fires in Apartments and Condos
Unlike with stand-alone homes, fires in apartments and condos can affect multiple residents at once—even displacing hundreds of individuals at a time. Property owners and managers must maintain safe conditions for occupants by accounting for a variety of potential fire hazards. Additionally, property managers need to be aware of any applicable fire codes, ensuring that their property is in compliance and safe for residents.
Earthquakes
Damage caused by earthquakes takes many forms and can be quite extensive. They can seriously damage buildings and the contents within, along with disrupting gas, electric and telephone services. What’s more, equipment, ceilings, partitions, windows and lighting fixtures often shake loose during a quake, creating dangerous conditions for building occupants. Even if your building is not located in a high-risk area, you should still consider the catastrophic possibilities of an earthquake and protect your property accordingly.
Air Quality
Of all the exposures property managers face, air quality is one of the apartment and condo risks that is often overlooked. As we learn more and more about the prolonged health effects of poor air quality, it’s critical for property managers to take a proactive role in managing sources of pollution. Poor air quality can contribute to minor discomfort or more serious concerns, like chronic illnesses.
However, managing this exposure isn’t so cut and dry, as poor air quality can stem from a variety of sources, including mechanical problems or bad ventilation. In addition, your building’s specific exposures will differ depending on the type of HVAC systems and equipment you utilize. To ensure that the air in your building does not endanger your residents’ health, indoor air quality management is crucial.
Lightning, Rainstorms, Hailstorms and Tornadoes
Lightning, rainstorms, hailstorms and tornadoes are common across the United States. Each one of these weather events creates their own unique exposures—exposures that property managers need to take into consideration:
Lightning—While a single lightning strike to a stand-alone home can be incredibly costly, it is even more devastating for apartments, condos and other multiunit structures as they often have more electrical wiring. Complicating the issue, lightning strikes can occur at random.
Rain and hail—Equally as damaging as lightning are rainstorms and hailstorms, which impact a number of U.S. regions throughout the year. For property managers, these storms are not only unpredictable, but costly as well. In fact, it doesn’t take much rain to cause property damage, and just 1 centimeter of water from flooding can lead to major losses. In fact, over a 10-year period, the average annual aggregate insured loss from hail was $134 million. For more information on the risks associated with water damage, click here.
Tornadoes—Tornadoes are one of nature’s most violent storms, causing fatalities and devastating a neighborhood in mere seconds. A tornado appears as a rotating, funnel-shaped cloud that extends from a thunderstorm to the ground with whirling winds that can reach 300 miles per hour. Damage paths can be in excess of 1 mile wide and 50 miles long.
Snow and Ice
During the winter season, walkways, stairs, driveways, interior roadways and parking lots become slip and trip hazards as snow falls and ice forms. This is not only a safety concern, but it can also be an expensive liability if an accident occurs.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more.
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive habitational insurance quote!
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