Ensuring your clients' holidays stay merry and bright

Now is the time to discuss clients' holiday plans and review their coverages to ensure that they’re protected for a worst-case scenario.

The holidays can be filled with celebrations and joy as long as precautions are taken. (Photo: Shutterstock)

The holiday season is a joyful time of year, but it can also be filled with unintended consequences.

Criminals tend to strike more often, preying on people who let down their guard — burglaries and thefts of opportunity rise. And, while people enjoy the spirit of the season, they forget to practice common-sense safety or take measures to keep themselves from becoming a victim. As a risk manager, protecting your clients is your priority. Now is the time to discuss their holiday plans and review their coverages to ensure that they’re protected if the worst-case scenario does happen.

Scammers and cybercriminals 

According to an Internet Retailer and Bizrate Insights survey, 60% of consumers surveyed planned to purchase from online marketplaces during the holiday season. Unsuspecting shoppers can become targets. It is easier than ever for scammers to present themselves as legitimate businesses online and steal financial and personal information. Remind clients that vigilance is key to avoid becoming a victim. Before buying online, encourage them to check for the following:

Coverage for valuables

While many families travel or take a vacation this time of year, criminals do not. Are your clients adequately protected? Do they have the proper coverage to travel with valuable jewelry or heirlooms?

A May 2019 survey conducted by Jewelers Mutual Insurance Group found 20% of travelers reported missing jewelry while on vacation. That percentage doubled since 2015. Take the time to talk with them about their vacation plans. Review their coverage and make sure the policy extends worldwide if they plan to travel abroad. Other tips:

Safeguarding homes 

Holiday decorating is the hallmark of many family traditions. For most families, it involves Christmas trees, lights, extension cords, candles and tons of cooking. Talk to your clients about decorating do’s and don’ts.

Between 2013 – 2017, U.S. fire departments responded to an average of 160 home fires per year that started with Christmas trees. According to the National Fire Protection Association (NFPA), 25% of those Christmas tree fires were caused by heat sources, such as a candle or a piece of equipment that were too close to the tree.

In addition to protecting homes from fires, families must take precautions to protect their homes from theft, particularly if they plan to leave their homes unattended. Experts say criminals drive through neighborhoods looking for empty houses to burglarize. Clients should do the following:

Playing it safe when hosting a party

Holiday parties give us all a chance to take a break and enjoy the season with friends and family. Despite the fun, they also present risks, such as theft and liability. Take this time to review your clients’ coverage to ensure that high-end art, jewelry, heirlooms or any collections are properly insured for theft and accidents.

If a client plans to host a party and serve alcohol, proper coverage is essential to reduce their liquor liability. According to the Insurance Information Institute, homeowners can be held legally responsible for guests’ actions after they leave the party.

Homeowners should consider the following:

The holidays can be filled with celebrations and joy as long as precautions are taken. One can never be too aware, too prepared or too careful. Engaging in open and honest dialogue with your clients now can go a long way in safeguarding their future.

Lisa Lindsay is the executive director with the Private Risk Management Association (PRMA), a collaborative nonprofit that aims to raise awareness and educates agents and brokers about the evolving insurance industry landscape so they can better serve high net worth insurance consumers. She can be reached at llindsay@privateriskmanagement.org.

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