Question: I have Health insurance that would cover me if I was injured in an accident; why am I required to carry Personal Injury Protection too?

Howey & Associates’ Solution:
Personal Injury Protection is a mandatory coverage included in Michigan’s No-Fault Automobile insurance. In addition to paying for medical treatment   necessitated by the accident, it provides coverage for replacement services and wage loss for 3 years after the accident. For example, if your auto accident-related injury prohibits you from doing your yard maintenance, your policy would pay up to $20 per day for replacement services. If you were unable to return to your job, the policy would provide a lost wage benefit for up to 3 years. Some Health policies exclude coverage for auto-related injuries; we urge you to check your coverage.

Question: Does my Homeowner policy cover flooding in my basement?

Howey & Associates’ Solution:
The cause of the flooding in your basement will determine whether your Homeowner policy will afford any coverage. Following are some common scenarios: If the cause is back-up of sewers or drains, many policies will offer limited coverage, with an option to increase the coverage limit for an additional premium. If the cause is a broken pipe, the Homeowner policy will not pay for the cost to repair the pipe, but it will pay for the ensuing damage. If the water seeped into the house through the basement walls, there is     ordinarily no coverage. If an adjacent natural body of water flooded and your home was damaged by the flood waters, your homeowner policy would not provide coverage; that situation would be covered by a specific Flood policy written through the National Flood Association.

Question:  How important are certificates of insurance?

Howey & Associates’ Solution:  
It is imperative that you secure and maintain current certificates of insurance from all subcontractors used by your business before they begin any work. Without a current certificate of insurance, your General Liability and Workers’ Compensation audits can include costly penalties for using uninsured subcontractors. Apart from the audit issues, claim payments are a critical concern. You want to make sure that bodily injury or property damage claims that result from your subcontractors’ negligence or their employees’ injuries are covered by the subcontractors’ insurance, not your policies. We recommend that you request that your business be named as an Additional Insured on your subcontractors’ General Liability policy, that you be given a 30-day notice of intent to cancel or non-renew any policies.

Question:  What is the difference between a PPO (Preferred Provider Organization) and HMO (Health Maintenance Organization)?

Howey & Associates’ Solution:
The most significant difference is that of patient choice. If you have an HMO Plan, your care just be directed by your “primary” physician; you must receive a referral from the primary doctor before seeking treatment from other physicians. If you have a PPO, you need no referral.

DID YOU KNOW….You may be able to receive a partial policy benefit in the event of a terminal illness diagnosis.

Disclaimer:  The comments and explanations contained in this newsletter are not intended to modify or replace any policy coverages,  conditions, or limitations. We recommend that you consult with your insurance agent and/or legal counsel to determine the appropriate coverage solutions for you and/or your business.