October 2006 You Can Help Your Clients Turn Up The Heat The change of seasons brings the risk for equipment breakdowns. Heating equipment is often damaged because it is pressed into service without proper maintenance. Likewise, air conditioning breakdowns can be traced back to a lack of attention when it was shut down. It's not too late to help avoid heating breakdowns this winter and cooling problems next spring. Click on HSB's Equipment Care online resource for loss prevention tips. Credit Checks Don't Always Detect ID Fraud You're told to check your credit on a regular basis for signs of identity theft. That's good advice, but it may not go far enough if you are the victim of identity fraud. A review of identity theft crimes conducted for HSB found that 81 percent of the fraudulent activity would not show up on standard credit reports. HSB offers identity recovery coverage that can dig deeper to uncover fraud and help insureds get control of their personal identity. Previous surveys have shown that most of your clients lack equipment breakdown insurance. The main reasons, according to those responding, are that insureds don't understand the coverage, or don't believe they're at risk. Which of the following tools do you think are most effective in selling this important coverage? Click your answer below: •  Suggested tactics and strategies to overcome objections. •  Claim loss examples to show what's at risk. •  Information about the changing nature of equipment exposures. •  Basic explanations about how the coverage works. •  Exposure information about specific types of equipment or businesses. Big Homes, Big Risks - Houses are Getting Larger, with More Equipment that Needs New Coverage HSB's Equipment Breakdown Program for Homeowners Offers Broad Protection for Your Clients American homes keep getting bigger. They're also more expensive and better equipped. As the size of the typical house has increased over the years, so has the amount of equipment it takes to keep them comfortable. CHALLENGE AND OPPORTUNITY This presents an opportunity for insurers, which are expanding homeowners coverage to include protection against equipment breakdowns, and agents who want to broaden coverage for today's exposures. It's also a challenge to add a specialty coverage that for decades has only been available to commercial clients. A GROWING COVERAGE GAP Homeowners have a lot invested in equipment for air conditioning, heating, hot water, security and other basic services. Homeowners policies provide a range of insurance, but are not designed to cover most mechanical, electrical, or heating equipment breakdowns. The trend toward larger and more costly homes with many types of equipment can create a coverage gap for policyholders. BREAKDOWNS REQUIRE SPECIAL COVERAGE Personal lines insurers are responding by adding equipment breakdown to their homeowners policies. But equipment claims are not like other property claims. It takes experience and specialized knowledge of equipment to underwrite the business and adjust the claims. HSB MAKES IT EASY A simple and effective way for insurance companies to add equipment breakdown is through a specialty reinsurer. HSB's Equipment Breakdown Coverage for Homeowners provides everything from underwriting to claim service for companies that partner with HSB, making it easy to broaden coverage without adding staff and resources, or increasing handling costs for insurers or their agents. Sloppy Service A steam boiler that heated a convent apparently was leaking for some time before it broke down. An investigation found a service contractor checked the boiler but didn't report the leak and had failed to perform recommended maintenance. Total Paid Loss $111,150 This example summarizes actual losses and coverage. For all terms, conditions and exclusions, consult the actual policy. Hartford Steam Boiler - One State Street - P.O. Box 5024 - Hartford, CT 06102-5024 Phone: 860-722-1866 - Fax: 860-722-5106 ©1996-2006 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.