Page 8 - CooperatorNews New York June 2022

8 COOPERATORNEWS — JUNE 2022 COOPERATORNEWS.COM Loss, Insurance, & Claims A Primer BY COOPER SMITH For many, the topic of insurance can strophic loss. be a bit overwhelming. Even the terms we use as insurance purchasers differ sub- stantially from the terms industry profes- sionals use when discussing and settling claims—which can leave laymen feeling cial loss or injury resulting directly from like we need a translator to make sense of an unbroken chain of events, or a proxi- what exactly we’re paying for, what’s cov- ered, and (even more importantly) what’s an insurance policy. The latter refers to not. For example, take the expression ‘to- tal loss.’ The average policyholder likely or in case of the presence of superven- takes it to mean that there’s no hope of ing events, no damage or injury would repairing the asset in question, whatever have resulted.” An example of direct loss that may be. To an insurance profession- al, however, ‘total loss’ means something and took the roof off your building; your else. Replacement isn’t really the issue. It’s direct loss would include the damage to more a matter of numbers; are the pro- ceeds from the claim enough to repair the furniture, inventory, etc. asset to its prior state? And in the world of insurance, that’s only the beginning— so it’s incumbent on boards, managers, or property that is beyond the scope of and even individual owners and share- holders to better understand what’s cov- ered, what’s not, and how a claim is made. Types of Loss Loss—of property, possessions, even store, not only are there rebuilding costs, of life—is the basis of the entire insurance but the business cannot operate until the business, and therefore the industry has damage is fixed. Income lost during the as many words for loss as the Inuit have rebuilding—and after it, if customers for snow. That said, the basic terms most stick with the alternatives they found in of us need to be familiar with are direct the meantime—represents indirect loss. loss, indirect loss, partial loss, and cata- According to Insuranceopedia.com, these different losses can be defined as follows: Direct loss refers to physical or finan- mate cause that led to a risk covered by a cause that immediately precedes the damage or injury, and “without which would be if a tornado struck your town the structure, as well as to any equipment, Indirect loss is “an expense caused by damage or injury to insured individuals the covered damage. This expense is at- tributable to the covered loss, but is not part of the covered loss itself.” If that same tornado destroys the roof of your Partial loss refers to damage to an in- INSURANCE MACKOUL RISK SOLUTIONS Less than 10% of community associations have proper coverage in the event of a breach. www.mackoul.com Is your association covered for a cyber attack? THE AVERAGE COST OF A DATA BREACH IS $4.24 MILLION AS OF 2021. * *FORBES.COM These alarming cybersecurity statistics are a call to take risk management more seriously. Contact Mackoul today to help reduce your association’s risk! CYBER INSURANCE There is a hacker attack every 39 seconds. Phishing attacks account for more than 80% of reported security incidents. MACKOUL RISK SOLUTIONS Are you keeping up with safety measures to protect your HOA’s sensitive data? Get an Instant Quote! 25 Nassau Lane Island Park, NY 11558 516-431-9100 www.mackoul.com The Bike Stacker • Staggered, formed bike trays hold any style bike upright • Tear drop tire slot (pat. pending) • Made of 1/8” steel angle and 14 GA steel formed channel • Heavy-duty 11 GA steel • Vinyl sleeve protects wheel rim • Installs easily...with two 1/2” round holes for wall mounting • Includes security cable • Heavy-duty 11 GA steel • Vinyl sleeve protects wheel rim The Wall Riderhe Wall Rider • Heavy-duty 11 GA steel T ® Serving The New York Area For Over 20 Years. WireCrafters.com | 800-808-1860 | info@WireCrafters.com Tenant Storage Solutions • Single or double tier • Industrial grade construction • Installation service available Tenant Storage Lockers & Package Delivery