Category Archives: Health & Safety

With Violent Crime Up, Negligent Security
Is a Looming Hazard

By Maria Sassian, Triple-I Consultant

While property crime (except for car theft) has been on the decline, the United States has been experiencing a worrying surge in violent crime since the start of the pandemic.

Murder and non-negligent manslaughter rose 29.4 percent in 2020 from 2019, the biggest rise since recordkeeping began in 1960, according to F.B.I. data.  The trend continued in the first half of 2021, when the number of homicides increased 16 percent from the same period in 2020 and 42 percent compared to the same period in 2019. Aggravated assault increased 9 percent, and gun assaults were up 5 percent, according to the Council on Criminal Justice.

Crime analysts have suggested several possible contributing factors, including the many strains brought on by the pandemic; a pullback in enforcement by the police; and a spike in firearm purchases.

Negligent security

When a violent crime occurs on a business or residential property, the victims often can hold the owners liable for damages stemming from “negligent security.”  Negligent security cases are based on the obligation (“duty of care”) of a property owner or tenant to provide a safe environment for their customers, residents, or visitors. According to PropertyCasualty 360, such cases are a “significant and growing subset of premises liability.”

Examples of negligent security include:

  • Poor lighting,
  • Lack of security guards or guards who fail to do their job properly, and
  • Insufficient locks or other security devices.

The duty of care borne by property owners can vary based on the types of businesses they operate. A shopping mall with limited hours may have a lower duty of care than an assisted living facility charged with caring for vulnerable residents 24/7.

Negligent security cases incur significant investigation and settlement costs, though few make it to trial.  Cases that do go to trial can get widespread media coverage, and juries, sympathetic to violent-crime victims, can hand down massive awards.  In Georgia, for example, lawsuits stemming from criminal attacks in CVS and Kroger parking lots ended in verdicts of $43 million in Fulton County and $69.6 million in DeKalb County, respectively, in 2019. CVS and Kroger were held liable on the basis that they should have had more security.

Risk management

Property and business owners can prepare to demonstrate that they have taken reasonable precautions by making sure crime prevention practices are in place. Steps that can be taken include:

  • Have on-site security staff and make sure they follow up-to-date policies and procedures,
  • Make sure security equipment is up-to-date and working,
  • Make sure all staff is trained in security and in how to handle potentially dangerous situations,
  • Perform regular inspections on lighting, stairs, windows, and doors,
  • Maintain landscaping properly, and
  • Investigate all threats of criminal activity.

The role of insurance

Negligent security is part of the broader coverage of premises liability. Whether you are covered or not depends on your individual policy. If negligent security is excluded, it should plainly say so in the policy. If the policy language  is ambiguous, courts may favor the policyholder in a coverage dispute.

When you’re covered, your insurance underwriting professional will work with you to make sure recognized crime prevention practices are being followed on the property. That way you will be prepared to prove that you followed reasonable precautions if a violent crime occurs.

If a violent crime does happen and a negligent security insurance claim is filed, the insurer will want to respond quickly to investigate the security measures that were in place, retain legal counsel, and engage a premises security expert. Delays in developing a defense plan can adversely affect the outcome and cost of the case. It’s important for the policyholder to have an emergency call list in the event of a crime and to have someone from the claims group on that list.

An insurance adjuster can help to resolve complex claims quickly, as well as help property owners prevent future incidents. The adjuster might dig into a property’s history to illuminate what’s considered “normal” and what activities owners should reasonably have anticipated. A history of break-ins or muggings, for example, could establish that the owner knew about the risk and, therefore, should have strengthened security measures in response, according to Engle Martin & Associates, a loss-adjustment and claims-management provider.

The adjuster may also look at the property owners’ social media and online reviews for previous complaints about security.  If the owners issued warnings about criminal activity and shared their attempts to improve security, for example, that can bolster their defense, said Natalie Prescott, casualty claims manager at Engle Martin.

Taking appropriate security measures and understanding your insurance coverage will go a long way toward helping you be prepared if a violent crime happens on your property.  Of course, you should seek guidance from your insurance or legal professionals about your specific circumstances.

As COVID-19 Drives Rise in Domestic Abuse, Insurers Seek to Empower Victims

Layoffs, loss of income, and living in isolation with abusers due to working remotely have increased the incidence of domestic violence. Associated Press photo.

By Loretta Worters, Vice President – Media Relations, Triple-I

When you think about domestic violence, insurance typically isn’t top of mind.  But financial security and access to resources can make all the difference to victims when deciding to leave an abusive relationship. And insurance is an important component of financial planning that can help survivors move forward.

Financial abuse is a common tactic used by abusers to gain power and control in a relationship. The forms of financial abuse may be subtle or explicit but, in general, include tactics to conceal information, limit the victim’s access to assets, or reduce accessibility to the family finances.

Growing evidence shows the pandemic has made intimate partner violence more common—and often more severe.  Layoffs, loss of income, and living in isolation with abusers due to working remotely have dramatically increased the incidence of domestic violence, further hampering a victim from leaving an abusive situation.

Survivors struggling to get back on their feet may also be forced to return to their abuser.  That’s why it’s so important that survivors understand how insurance works and what a critical role it can play in gaining financial freedom and economic self-sufficiency.

In support of Domestic Violence Awareness Month, Triple-I offers financial strategies to protect victims before and after leaving an abusive relationship. They include securing financial records, knowing where the victim stands financially, building a financial safety net, making necessary changes to their insurance policies and maintaining good credit. 

The National Coalition Against Domestic Violence (NCADV) reports that 10 million people are physically abused by an intimate partner each year, and 20,000 calls are placed to domestic violence hotlines each day. In addition, 85 percent of women who leave an abusive relationship return because of their economic dependence on their abusers.

“Home is often times a dangerous place for survivors of domestic violence, and COVID-19 exacerbates the circumstances, due to the abusers’ ability to further control,” said Ruth Glenn, president and CEO of the NCADV. “Tactics abusers use include ruining the credit of their victim as well as financial and digital abuse, such as stimulus funds being co-opted by abusers to an increase in domestic online harassment,” she said. 

Experts agree that domestic online harassment can come in many forms, from impersonating a victim by email to sabotage her work to controlling information about the pandemic to make her more fearful and dependent.

Since 2005, The Allstate Foundation has been committed to ending domestic violence through financial empowerment by helping to provide survivors with the education and resources needed to achieve their potential and equip young people with the information and confidence they need to help prevent unhealthy relationships before they start.  The Allstate Foundation offers a Moving Ahead Curriculum, a five-module program that helps prepare survivors as they move from short-term safety to long-term security. Modules of the curriculum include: Understanding Financial Abuse; Learning Financial Fundamentals; Mastering Credit Basics; Building Financial Foundations and Long-Term Planning.

“One of the most powerful methods of keeping a survivor trapped in an abusive relationship is not being able to support themselves financially,” Glenn explained. “That’s why insurance and financial education are so important,” she said.  “Education can save a life.”

Cyberattacks on Health Facilities: A Rising Danger

By Max Dorfman, Research Writer, Triple-I

As cyberattacks have increased in recent years, one area of particular concern has been those that target hospitals and health systems. These attacks have affected not only private information but also threatened the lives and well-being of patients.

A major shift

Hospitals rely more than ever on computerized systems to manage their information and systems. With the added complications related to the COVID-19 pandemic, the dangers associated with cyberattacks have only worsened.

“It’s part of a trend we’ve seen building over the last couple years, even before the pandemic,” said Scott Shackelford, chairman of the IU Cybersecurity Risk Management Program. Unfortunately, health-care providers are very much in the crosshairs. Not only do they often have insurance and deep pockets, but doctors need access to patient information to perform procedures and provide required services.

Because of this vulnerability and urgency, Shackelford said, “They are more likely to pay up.”

“If you look at the surveys that have been done, about one-in-three health providers have been hit by ransomware attacks just since 2020, and there’s been a 45 percent uptick in that rate since last December,” Shackelford added.

One recent attack, on Johnson Memorial Health in Franklin, Indiana, disabled its computer system. Although the hospital said it could still manage its patient intake, the loss of computer capabilities slowed operations down dramatically.

“We’re used to sending lab orders via computer, sending prescriptions to pharmacies via computer, so we’re going back to a real reliance on paper again,” Johnson Memorial President and CEO David Dunkle said. “We’re using more human runners, people taking lab recs between the ER and the lab.”

Hospitals have been slow to respond

Although there have been major technological advancements in the medical field, not all health systems have provided robust IT teams or thorough safety protocols. One area of note is with new medical devices, which take years to earn FDA approval and can come with outmoded software and operating systems without the latest security mechanisms.

This has given hackers the ability to disable medical imaging devices like MRIs. They can then shut down or interfere with machines.  A recent study by McAfeeEnterprise’s Advanced Threat Research Team uncovered that an IV pump created by German medical manufacturer B. Braun possessed a susceptibility that would allow hackers to change medicine doses remotely.

And while traditional phishing attacks require a user to open a corrupted file — a trend that is now on the decline — new attacks can use so-called Zero Click malware, which can infect a system merely through receiving a text or email.

Additionally, sensitive data that health systems possess gives hackers the opportunity to sell this information online — or threaten to — with demands rising into the millions of dollars. After a 2009 U.S. law was passed that required Medicare and Medicaid providers to implement electronic health records, these risks have only accelerated.

Life and death circumstances

Hospitals are now not only seeing the financial risks with cyberattacks, but the threat to their patients’ lives.

In July 2019, Springhill Medical Center faced a massive ransomware attack that disabled its electronic devices. This failure created dire circumstances for one infant, causing doctors to be unable to monitor the child’s condition during delivery. The infant died, and the hospital is being sued by the mother for malpractice—a charge Springhill denies.

Another attack in Düsseldorf, Germany in 2020 saw the death of a 78-year-old woman from an aortic aneurysm. What was supposed to be a routine pick-up turned into a nightmare, when the local hospital’s system was disabled by a ransomware attack, forcing the emergency department to turn away the woman and causing the ambulance to travel much farther. During this time, the patient’s condition worsened, and she eventually died.

How much worse can it get?

By the middle of August of 2021, 38 attacks on health-care providers or systems had interrupted care at approximately 963 U.S. locations. For all of 2020, only 560 sites were affected in 80 separate incidents, according to Brett Callow, a threat analyst at security firm Emsisoft.

With the vast amount of data and equipment at each of these health facilities—as well as the linked networks of many systems—the threat of cyberattacks in health care will only continue to grow unless more action is taken.

Pandemic Drives
Life Insurance Sales, Especially Among
Young Consumers

By Maria Sassian, Triple-I consultant

The COVID-19 pandemic contributed to a decrease in life expectancy in the United States for the first time in decades, according to the Centers for Disease Control and Prevention (CDC).  After climbing steadily for many years, life expectancy fell by 1.5 years from 2019 to 2020 – the largest one-year dip since World War II, when it declined by 2.9 years between 1942 and 1943.

Life expectancy at birth for the total population declined from 78.8 years in 2019 to 77.3 years in 2020.  The grim prospect of mortality, as well as the financial havoc wrought by the pandemic, has led many people to consider protecting their loved ones with life insurance.  

A survey by Life Happens and LIMRA published in April 2021 found that about 31 percent of consumers said they are more likely to buy life insurance because of the pandemic. And the latest data show they followed through on that intention. Total U.S. life insurance premium increased 21 percent in the second quarter 2021, the largest year-over-year increase since third quarter 1987. For the first half of 2021, total premium increased 18 percent, compared with the first six months of 2020, LIMRA reports.

Life insurance is now attracting younger customers. LIMRA’s survey shows that 45 percent of millennials said they are more likely to buy life insurance because of COVID-19.  This increased interest could be explained by the fact that younger people are more likely to have children who are minors and higher amounts of outstanding mortgage debt to cover if they died.  Younger workers also faced higher unemployment rates throughout the pandemic compared to older workers, so they may have purchased individual coverage to make up for the loss of employer-sponsored policies.

Decisions about buying a policy or increasing coverage also vary by race. Deloitte research found that underinsured Hispanic/Latino buyers were most interested in increasing life insurance coverage as a response to the pandemic, followed most closely by Black buyers. Deloitte speculates that this is due to the higher unemployment rates among Black and Hispanic/Latino people during the pandemic, which resulted in the loss of employer-sponsored life coverage. Overall, Black and Hispanic/Latino people were disproportionately affected by COVID-19.

September is Life Insurance Awareness month, and now turns out to be a good time to get the coverage. Insurers have made it easier to buy policies during the pandemic. Many companies are temporarily waving in-person medical exams and streamlining the buying process with simplified underwriting.

Companies with the strongest digital capabilities are benefitting from a 30 percent to 50 percent increase in online life insurance sales since January 2020, according to Deloitte.  Consumers like shopping online, and interest in agent-driven sales is decreasing, with just 41 percent of consumers saying they prefer to buy in-person in 2020 – down from 64 percent in 2011.

People who get life insurance don’t tend to regret it. In fact, LIMRA reports that that almost 40 percent said they wished they had purchased it at a younger age. And while many people believe life insurance is too expensive, most overestimate the cost. LIMRA found that 44 percent of Millennials thought the cost of  term life insurance was more than $1,000 a year, when it’s closer to $160 for a healthy 30-year-old to own a $250,000 level term life insurance policy.

Related links:
Triple-I’s Life Insurance Basics
Facts & Statistics: Life insurance

New Perils Arise
as Air Travel Resumes

Among the many things we’ve missed since the start of the pandemic, travel has been one of the most notable. Whether for business, to visit distant family members, or just get away from our now-too-familiar surroundings, many of us have been keenly anticipating a return to air travel.

Flying is among the safest activities people can engage in (see infographic). But new concerns are being raised about risks emerging in a post-COVID-19 world.

The risks highlighted in a recent report from Allianz Global Corporate & Specialty (AGCS) include “rusty” pilots, “air rage”, new aircraft, and even insect infestations.

The industry is slowly rebounding, and AGCS notes that the airline teams have stepped up to ensure that air travel remained safe, despite layoffs, financial struggles, and the pressures attending an overnight shift to remote working.

“But as more aircraft return to the skies,” the report says, “there has been much discussion about the hazards that may arise from such an unprecedented period, as well as some of the changes the sector will see.”

Earlier this year it was reported that dozens of pilots had notified the Aviation Safety Reporting System about making mistakes after climbing back into the cockpit. Operated by NASA, the Federal Aviation Administration (FAA) watchdog system enables pilots and crew members to anonymously report mechanical glitches and human errors.

“Many of the pilots cited ‘rustiness’ as a reason for the incidents after returning to the skies following months of lockdown,” AGCS reports. “While there have been no reported incidents of out‑of‑practice pilots causing accidents injuring passengers, mistakes reported included: forgetting to disengage the parking brake on takeoff, taking three attempts to land the plane on a windy day, choosing the wrong runway, and forgetting to turn on the anti‑icing mechanism that prevents the altitude and airspeed sensors from freezing.”

Condition of aircraft

At the peak of the first wave of the crisis, airlines parked around two thirds of the total global fleet. More than a year later, many are still mothballed.

“This unprecedented situation has resulted in a host of new challenges,” AGCS writes. “Loss exposures do not just disappear when airplanes are parked.”

Rather, the risks and their costs change. AGCS cites fears of damage among grounded aircraft during thunderstorms in Texas that pelted the region with golf ball‑sized hail.

Aircraft are large and tricky to maneuver on the ground, and ground incidents can result in costly claims. When operators transferred fleets from the runways to storage facilities at the start of the pandemic there were a number of collisions. It would not be surprising, therefore, to see more such incidents as planes are moved in preparation for reuse.

The European Union Aviation Safety Agency has reported  “an alarming trend…of unreliable speed and altitude indications” related to accumulations of foreign objects, such as insect nests in areas of aircraft that provide flight-critical air data information.

“This has led to a number of rejected take-off and in-flight turn back events,” the agency reports.

On the other hand, as many airlines have retired larger aircraft earlier than planned due to COVID-19, there will be many newer planes on the runways and in the air, which presents its own challenges from an insurance coverage perspective. As we’ve written previously, more modern planes are more expensive to repair or replace when there is an incident, leading to more expensive claims.

Air rage on the rise

In May 2021, an attendant on a Southwest Airlines flight attendant had two teeth knocked out after an altercation with a passenger over wearing a mask – the latest in a spate of highly publicized incidents that moved the FAA to issue a warning about a spike in unruly or dangerous behavior. More recently, an American Airlines flight to the Bahamas was canceled when some among a group of high school students refused to wear masks.

In a typical year in the United States, there tend to be no more than 150 reports of serious onboard disruption, the AGCS report says – but by June 2021 that number had already reached about 3,000, including about 2,300 involving passengers who refused to comply with the federal mandate to wear a mask while traveling.

Few COVID-19 claims

The aviation industry has seen few claims directly related to the pandemic to date, AGCS says, also noting a decline in slip-and-fall and lost-baggage claims at airports because of the reduced number of passengers during the pandemic. Such claims are expected to return to more typical levels as people resume traveling, and insurers will need to be mindful of new hazards that could affect claims experience.

Long-Term Considerations
From Condo Collapse

The insurer for the Champlain Towers South condo association has said it will make an up-front payment to resolve damage claims related to the 12-story beachfront property in the Miami  suburb of  Surfside, Fla., that collapsed on June 24, 2021.

“We want to make it known that James River Insurance Company has made the decision to voluntarily tender its entire limit from the enclosed policy towards attempting to resolve all the claims in this matter,” the insurer’s attorney wrote to the judge handling a class-action lawsuit seeking millions of dollars in damages from the association.

Since the collapse last week, four residents or their families have filed lawsuits against the association. Many more suits are expected in the coming months, and litigation could take years as investigators work to determine what caused the collapse. The first court hearing was held yesterday, and a Miami-Dade Circuit judge acknowledged that the building’s $48 million in total insurance coverage likely won’t be enough.

In all, the court heard, the condo association’s master policy has $30 million in property coverage and $18 million in liability coverage. The condo association has agreed to hand over financial decision making to a court-appointed “receiver.”

Seeking survivors as storm nears

With investigators still working to find and rescue survivors and Hurricane Elsa – the first of the 2021 Atlantic hurricane season and earliest “E-named” storm on record – heading toward Florida, the situation remains fluid. This week, dozens of units at a Central Florida condominium complex near Disney World were deemed unsafe after an inspection found the walkways leading to the units were at risk of collapsing, according to an Osceola County spokesperson.  Residents were advised to enter the buildings containing the units at their own risk, the spokesperson said, adding that county staff were offering residents assistance with temporary housing.

Increased attention to the condition of older high-rise buildings in South Florida and across the U.S. in the wake of the Champlain Towers collapse could lead to a rise in claims for loss-of-use coverage. In addition, many businesses in the vicinity of the collapse have been made inaccessible during the rescue operation, which could lead to business interruption claims.

Spotlight on building codes

Furthermore, this event could lead to a review of building codes and inspection practices nationwide. South Florida’s building codes are among the nation’s strongest – designed to keep residents safe from hurricanes. The state implemented mandatory codes after Category 5 Hurricane Andrew ripped homes from their foundations and left 65 dead in Homestead in 1992, and some counties – particularly in South Florida – have added more stringent requirements.

But after last week’s collapse, IBHS chief engineer Anne Cope said, “This is a moment like Katrina and Andrew, where we are going to learn something and make changes.”

Many of the region’s buildings – including  Champlain Towers South – were built before 1992 as part of a South Florida condo boom. Those buildings are subject to codes that were in place at the time of their construction, and are only required to undergo local county inspections every 40 years – such as the 2018 review of the Surfside condo in which an engineer raised red flags that the building was beginning to address but didn’t warn of imminent disaster.

A FEMA study last year said implementation of modern building codes could save states and localities billions of dollars.

Independence Day Summer Fun Also Carries Risks

By Loretta Worters, Vice President, Media Relations, Triple-I

Independence Day is associated with fireworks displays, barbeques, and poolside parties, yet even summer fun carries risks.

Here are four summertime liability risks you should be aware of and recommendations on what you can do to protect yourself:

FIREWORKS: Fireworks may be a Fourth of July tradition, but they can also cause either injuries or fires. More than one of every four (28 percent) fireworks-caused fires nationwide each year occur on the Fourth of July, according to the National Fire Protection Association (NFPA.) In recognition of Fireworks Safety Awareness Week (June 28-July 4), the Triple-I encourages everyone to follow federal fireworks laws and local fireworks laws

GRILLS: About four out of five (79 percent) grilling fires involve gas grills, according to the U.S. Fire Administration (USFA). Patios, terraces, and screened-in porches are the leading home locations for grill fires, the USFA has found. The NFPA reports an average of 8,900 home fires are started by grills each year, with numbers peaking during the month of July. Grill-related fires can damage your house, outdoor possessions and structures and cause injuries to guests. The latter could result in a lawsuit.

POOLS: Drowning is the leading cause of unintentional death among children aged one to four years old and, between 2016 and 2018, 83 percent of these tragedies occurred at residential pools, according to the U.S. Consumer Product Safety Commission reported. In addition, non-fatal pool and diving board accidents can leave victims with long-term health issues.

ALCOHOL: Social host liability laws vary widely but 40-plus states have them on the books. Most of these laws offer an injured person a method to sue the person who served them alcohol while on their premises. Criminal charges may also apply under some social host liability laws.

Any of these scenarios pose a liability risk, so homeowners are advised to review their insurance policies to understand their policy’s liability limits. A liability limit of at least $300,000 is often a cost-effective step to take in consultation with an insurance professional.

In addition, consider adding an umbrella liability policy, which provides liability protection over and above current coverage. 

Studies: Car Crashes Rise as Recreational Cannabis Becomes Legal in States

Connecticut this week became the latest state to legalize recreational use of marijuana, and more are expected to follow.

The increased marijuana use that accompanies legalization has raised concerns about road safety.

Researchers at Insurance Institute for Highway Safety (IIHS) and the Highway Loss Data Institute (HLDI) since 2014 have been examining how legalization has affected crash rates and insurance claims, and evidence is emerging that crash rates go up when states legalize recreational use and retail sales of marijuana.

The most recent of these studies, released on June 17 by the IIHS, shows that injury and fatal crash rates in California, Colorado, Nevada, Oregon, and Washington jumped in the months following relaxation of marijuana laws in each state. The five states experienced a 6 percent increase in injury crash rates and a 4 percent increase in fatal crash rates, compared with other Western states where recreational marijuana use was illegal during the study period.

Only the increase in injury crash rates was statistically significant.

“Our latest research makes it clear that legalizing marijuana for recreational use does increase overall crash rates,” says IIHS-HLDI President David Harkey. “That’s obviously something policymakers and safety professionals will need to address as more states move to liberalize their laws — even if the way marijuana affects crash risk for individual drivers remains uncertain.”

Insurance records show a similar increase in claims under collision coverage, which pays for damage to an at-fault, insured driver’s own vehicle, according to HLDI’s latest analysis. The legalization of retail sales in Colorado, Nevada, Oregon, and Washington was associated with a 4 percent increase in collision claim frequency compared with the other Western states from 2012 to 2019. That’s down slightly from the 6 percent increase HLDI identified in a previous study, which covered 2012  to 2018.

While the evidence that crash rates have increased in states that legalized marijuana is mounting, it appears that further study is needed to determine whether marijuana use alone is responsible. Preliminary data suggests people who use alcohol and marijuana together are accountable for most of the crashes.

Another factor may be that marijuana users in counties that do not allow retail sales are driving to counties that do. The increased travel could lead to more crashes, even if their crash risk per mile traveled is no higher than that of other drivers.

Expect a Memorial Day travel surge

This Memorial Day weekend, the unofficial start of summer, many are feeling a renewed sense of hope as COVID-19 infection rates fall and vaccinated individuals are given the green light to travel.

Over 37 million Americans are planning trips of more than 50 miles from their homes this weekend, according to AAA, an increase of more than 60 percent from last year, but still 6 million fewer than 2019’s pre-pandemic travelers on the same weekend.

Drivers are reminded to exercise caution on the roads, as Memorial Day has some of the highest auto accident rates, with alcohol consumption as a major contributing factor.

Triple-I recently spoke with Forbes magazine about avoiding some of the other hazards of summer, including car theft, grill fires, and dog bite liability.

We hope that you take the extra precautions outlined in the Forbes article — as well as review your insurance coverage – and have a safe, healthy summer.

Protecting your income with disability insurance

May is Disability Insurance Awareness Month, an occasion to raise awareness about this underutilized financial product, which is designed to safeguard your income in case you get sick or injured and are unable to work.

Disability insurance, also known as disability income insurance, complements health insurance and is meant to replace lost income and help protect you and your family from an otherwise financially catastrophic illness or injury.

Depending on where you have been employed, whether you’ve served in the military, and the reason you’re unable to work, there are a number of potential sources of disability income.

Employer-paid disability insurance is required in most states, and so is the most common. Most employers provide some short-term sick leave. Many larger employers provide short-term disability (STD) and long-term disability (LTD) coverage as well, typically with benefits of up to 60 percent of salary lasting from five years to age 65. In some cases, LTD insurance is extended for life. Disability benefits from employer-paid policies are subject to income tax.

When you buy a private disability income policy, you can expect to replace from 50 percent to 70 percent of income. When you pay the premiums yourself, disability benefits are not taxed.

Social Security disability benefits may be paid to workers whose disability is expected to last at least 12 months and is so severe that no gainful employment can be performed.

The Department of Veterans Affairs will provide some replacement income for veterans, depending on the nature and circumstances of the disability.

Auto insurance may cover some income loss under the personal injury protection (PIP) portion of the policy if the disability results from an auto accident. As always, this depends on the policy, the insurer, and the circumstances.

Disability insurance provides vital protection for most workers against events that are hard to contemplate. Securing this protection in the event of a serious illness or injury is just as important as insuring your home or car.

Click here to learn more about the types of disability coverage available.