Thinking about a side hustle? Check with your insurance agent

Today, it seems like everybody’s got a side hustle, which is essentially just a fancy rebranding of what used to be called moonlighting. But today’s moonlighting often comes with a twist …. these gigs often involve using your personal car or home to generate extra income. Whether it’s driving for Lyft, dropping off packages for Amazon, delivering meals through DoorDash, renting your home through Airbnb or just taking advantage of a tourist influx during a big local event by renting out your home, five words of advice: check with your insurance agent.

If your goal is earning some extra cash, make sure you understand and are covered for potential risks. You might think you are covered by working for a third-party service, but if you injure yourself or someone else while working, if you damage or lose someone’s property or if you suffer a loss to your own property, you may be on your own. Here are just two examples:

Home rental – If you want to start renting out all or a portion of your home through a peer-to-peer rental service, what happens if a guest is injured on your property? Or if a guest burns the whole place down in a cooking fire, will your rental service cover your home replacement?

Some services, such as Airbnb and VRBO, offer programs such as host guarantees or host liability insurance. On first glance, these may look adequate – $1 million liability coverage should be enough, right? But like most things, you need to read the fine print because there are conditions, limitations and exclusions that could leave you exposed to serious loss. You also should not assume that your own homeowners policy will provide coverage in a home rental scenario. Insurance Information Institute says:

Standard homeowners and renters insurance policies are designed for personal risks, not commercial risks. Some insurers now offer a home-sharing liability insurance policy that can be purchased on a month-to-month basis, but there may be exclusions and limitations, so read the policy carefully. If you plan to rent out all or part of your home on a regular basis, many companies will consider this a business use and you may need to purchase a business policy—specifically either a hotel or a bed-and-breakfast policy.

Ridesharing – Check with the service you are contracting with about any coverage that they might offer – states are increasingly mandating that third-party services provide some coverage, but again – there could be conditions, limitations and exclusions that leave dangerous gaps in your coverage. And it’s a mistake to assume that your own personal auto insurance will cover you. Insurance Information Institute says:

Generally a standard personal auto policy will not provide coverage for ride-sharing. A standard personal auto insurance policy stops providing coverage from the moment a driver logs into a TNC ride-sharing app to the moment the customer has exited the car and the transaction is closed.

They also advise:

Prospective drivers should ask the TNC what level of coverage it provides. Drivers should also contact their own auto insurer to address gaps, if any, in their liability protection. It is also recommended that TNC drivers review a copy of their TNC’s insurance contracts so they know the exact terms and conditions of the coverage.

Learn more: Ride-sharing and insurance: Q&A

These are just two common examples of so-called side-hustles, but other income-generating activities might call for other types of coverage, such as product liability or home business coverage. Your agent can also help you assess the adequacy of coverage offered by a third-party.  If you are considering a side-hustle, give your independent insurance agent a call to talk things over.

Reprinted from Renaissance Alliance – no usage without permission.



Do you fly in the U.S.? You might need REAL ID by October 1, 2020

Do you fly on commercial airplanes for work or for pleasure in the U.S.? Do you regularly visit military bases or secure federal facilities? If so, this is the year you will need to have either a REAL ID-compliant license or a valid US passport to take commercial flights within the US or gain access to secure federal facilities. The law goes into effect on October 1, 2020 so there is still plenty of time to assess whether this is something you need or not and, if so, time to get the required documents.

Here’s the scoop. After 9/11, federal legislators and security officials established consistent, minimum security standards that would be enforced in all states and territories. Beginning on October 1 of this year, federal agencies, including DHS and TSA, will only accept compliant documentation at TSA airport security checkpoints and some federal facilities, such as military bases and nuclear power plants. The most common forms of documents are REAL ID-compliant licenses or US passports or passport cards. A handful of states (Michigan, Vermont, Minnesota, New York and Washington) issue enhanced driver’s licenses, which are also acceptable.

You do NOT need a REAL ID if:

  • you have a valid U.S. passport or passport card
  • you don’t use commercial airplanes to travel domestically
  • you don’t visit military bases
  • you don’t visit secure federal facilities
  • you are under 18 years of age

You can use a passport if you have one, but you have to remember to bring it with you in instances where it wasn’t required previously.

What is a Real ID and how do you get one?

It’s possible that if you renewed your license in recent years, you have a Real ID-compliant license because states have been phasing them in. Homeland Security says that “REAL ID-compliant cards will have of one of the following markings on the upper top portion of the card. If the card does not have one of these markings, it is not REAL ID-compliant and won’t be accepted as proof of identity in order to board commercial aircraft.”

REAL ID symbols

And here is a sample of a Massachusetts REAL ID-compliant license vs a noncompliant one. The designation in the upper right-hand corner varies by state.

Massachusetts REAl-ID compliant license sample

Homeland Security has many resources to learn more, including

You can also check with your state’s registry of motor vehicles to see if your license is REAL ID compliant. Here are links to REAL ID info for state RMVs in the New England region

 

Reprinted from Renaissance Alliance – no usage without permission.



New Massachusetts hands-free driving law to go into effect in February 2020

You might have been distracted over Thanksgiving and missed the news: Massachusetts enacted a hands-free driving law, making Massachusetts the 21st state to ban the use of all hand-held electronic devices while driving. This follows quickly on a similar Maine law which went into effect in September. Other neighboring states — Connecticut, New Hampshire, New York, Rhode Island — also have hands-free driving laws on the books.

The new Massachusetts law bans any hand-held device while driving motor vehicles and bicycles. There are limited exceptions to allow for emergency reporting provisions. The law will take effect until Sunday, February 23, 2020, 90-days after the law was enacted. For about the first month, first-time violators will be issued warnings, but after that, fines will apply.

In Massachusetts Has A Hands-Free Driving Law: Four Items Everyone Needs To Know, Agency Checklists offers more details on the law, including penalties for violation:

According to the terms laid out in the new Bill, a first-time violation with result in a $100 fine, a second offense will be a $250 fine, followed by a $500 fine for a third or subsequent offense. While a first or second offense is not categorized as a “surchargeable incident” under the statute, a third or subsequent office will be considered as such.

For more on the new law, see What You Need To Know About The New Distracted Driving Law In Mass.

Hands-free driving laws in the Northeast

Maine’s Hands-free Driving Law went into effect on September 19, 2019. It prohibits the use of mobile telephones, handheld electronic devices and portable electronic devices while operating a motor vehicle, unless specifically exempted by law. Violations will be subject to no less than a $50 fine for the first offense and not less than $250 for a second or subsequent offense. The Chief Judge set the fine amount of $230.00 for a first offense and $325.00 for a second and subsequent offense.

New York state has been on the forefront of the distracted driving issue since enacting the nation’s first statewide handheld phone law, which took effect in November 2001.

Connecticut has had hands-free driving laws since 2005, prohibiting the use of any hand-held mobile electronic device while operating a motor vehicle. Penalties range from $150 for first-time offenders to $500 for a third offense. Drivers may also be subject to demerit points on their driving record.

New Hampshire has had a hands-free driving law since 2015, prohibiting all motorists from using a handheld cellphone or other device to text message or talk while driving.

Rhode Island’s hands-free driving law went into effect on June 1, 2018. Drivers cannot hold a cell phone or other wireless device while operating a vehicle. The use of headphones or other accessories that cover both ears also is not allowed.

For laws in other states, the Governors Highway Safety Association offers a listing of Distracted Driving Laws by state (but note that most recent developments such as the MA law may not yet be reflected)

Reprinted from Renaissance Alliance – no usage without permission.



Cellphone driving laws: Florida and Massachusetts

Florida has a new law that prohibits texting while driving, which went into effect July 1. It’s called the Wireless Communications While Driving Law. From now until January 1, 2020, drivers who break the law will get a warning, but after that, a $30 fine will be imposed for a first offense, and a $60 fine for a second offense. But that’s actually just the tip of the iceberg – there are court costs, insurance surcharges and more that can make breaking the law quite costly. Florida Today explains why your $30 ticket becomes way more expensive, breaking down additional court costs and fees that bring your actual first-time penalty to $119 in Brevard County. (Each county’s fees may differ)  In addition to that, your auto insurance rates could cost you up to 25% more per year for three years. That means that a quick text could be very costly!

Local 10 offers a recap of what you need to know about Florida’s new texting while driving law. There are some exceptions, which they list as:

“Some exceptions apply. The law does not apply to vehicles that are stationary or to a driver who is:
– Performing official duties, such as operating an emergency vehicle (i.e., law enforcement, fire service professionals, and emergency medical service providers).
– Reporting an emergency, a crime or other suspicious activity to law enforcement.
– Receiving messages that are:
a. related to the operation and/or navigation of the motor vehicle; b. safety-related information (emergency, traffic, and weather alerts); c. data used primarily by the motor vehicle; or d. radio broadcasts.
– Using the device in a hands-free manner for navigation purposes.
– Using the device in a way that does not require manual entry of characters, except to initiate a function or feature.”

Massachusetts cell-phone ban law in the works

Massachusetts residents take note: In June, Boston.com reported that a driver hand-held cellphone ban moves closer to becoming law. The Senate and the House have both approved versions of the law and must now reach agreement on a compromise bill. But be aware that proposed fines are costly:

The bill calls for a fine of $100 for a first offense, $250 for a second offense and $500 for a subsequent offense. Those who commit a second or subsequent offense would be required to complete a program that “encourages a change in driver behavior and attitude about distracted driving.”

A third or subsequent violation would also be a considered a surchargeable incident under car insurance policies. The bill would allow an exception to using cellphones in the case of an emergency if no one else in the car is able to make the call.

Driving & cellphone use laws by state

Here’s a handy tool to bookmark: The Insurance Institute for Highway Safety (IIHS) maintains a summary of cell-phone use laws with maps and a detailed chart listing of cellphone use laws by state.

They summarize three types of prohibitions for cellphone use laws:

  • Hand-held ban laws: Bans on hand-held phone conversations while driving are widespread in other countries and are becoming more common in the U.S. In 2001, New York became the first state to ban hand-held phone conversations by all drivers. Now 20 states and the District of Columbia have similar laws.
  • Texting ban laws: Texting is banned for all drivers in 48 states and the District of Columbia.
  • Young driver phone ban use laws: 38 states and the District of Columbia restrict cellphone use by young drivers.

Reprinted from Renaissance Alliance – no usage without permission.