For lawyers who are required to travel due to their type of practice or even lawyers who are travelling for leisure, trying to navigate the rocks and shoals of rules, regulations, restrictions and “convenience charges” can be rough sailing. There are a number of websites that can assist with selecting flights such as Kayak  or AirfareWatchdog  or SmarterTravel , or determining if the seat you’ve selected is a good one at Seatguru . But how do you figure out checked bag fees, fees to rebook flights, selecting your seat in advance, in flight snacks charges? SmarterTravel, AirfareWatchdog and Seatguru have teamed up to create the “Ultimate Guide to Airline Fees” which you can read about here and download the PDF here:

While it doesn’t cover every airline (for those of us in Wisconsin, Midwest is noticeably absent), it does cover most of the major carriers as well as JetBlue and Southwest.

Once you have your air and hotel booked, visit TripIt to consolidate all of your travel information into a concise travel summary. You may also want to bookmark the FAA website in case you have questions about approved carry on items, information on airports and airport traffic.

Protecting Your Business Against Floods and Other Risks:

Which Insurance Coverage is Right for You?

 

By Gordon Davenport III, Connor Sabatino, and Krista Sterken

 

The severe storms that struck southern and central Wisconsin in early June left hundreds of homes, roads and businesses under several feet of water.  The misery was compounded when many home and business owners found themselves without insurance coverage for their losses.  A number of law offices were impacted as well.  Standard property insurance policies cover damage to property caused by such things as fire, tornado, wind, lightning and hail, but they generally do not cover damage caused by floods and certain other perils.  It is important for law offices to be aware of that, and to know what options are available to fully protect their businesses.

 

Standard Property Insurance

Standard property insurance policies generally do not cover damage caused by flood, sewer backup or earthquake.  They also do not cover losses and expenses due to interruption of the business, unless that coverage is purchased, usually at an additional charge.  And even when business interruption coverage is purchased as part of a standard policy, it will not apply to interruption caused by excluded perils such as floods.

Yet floods are a real risk in many parts of Wisconsin, as we have seen this year.  What options are available to law offices to protect their property and business against this risk?

 

National Flood Insurance Program

The federal government offers flood protection through the National Flood Insurance Program (NFIP).  Unfortunately, this program is not always a viable option because it is not available to everyone.  In order to qualify, the property must be in a designated flood plain, and the community in which the property is located must opt-in to the NFIP and comply with FEMA standards for flood control measures.  Further, NFIP rates and terms are set by the government and cannot be customized to meet individual needs.  The amount of protection is capped at $500,000 for commercial property, with an optional “contents” add-on also capped at $500,000.  The contents add-on covers actual cash value, not replacement costs.  Therefore, some law offices may find that NFIP coverage is not adequate to meet their needs even if they qualify for it.  In that case, private coverage may be an option.

 

Additional Coverage Available Through Standard Property Insurance Policies

Many law offices purchase business interruption coverage as an addition to their property policies.  It may also be possible to obtain flood and earthquake add-ons.  Flood coverage is often written as excess coverage in addition to the NFIP, and can sometimes be written in lieu of the NFIP program.  “For high-risk flood zones, private insurers may only be willing to provide flood coverage in excess of the $500,000 NFIP limit, and not in lieu of the NFIP,” says Kellye Golden of Mortenson, Matzelle & Meldrum, a Wisconsin insurance broker.  “Once businesses in high-risk flood zones secure the NFIP coverage, they can obtain coverage in excess of the $500,000 from a private insurer if the NFIP limit is insufficient.”

If business interruption coverage has been purchased, adding flood coverage should extend the business interruption coverage to interruptions caused by flood.  But it is important to double-check the language of the policy.  It is also possible to purchase coverage for interruptions to business caused by loss of utility services.  This coverage may come in handy if the office space escapes actual flood damage but is out of operation due to problems with utilities.

 

Difference in Conditions Policies

Large law offices may find the coverages available as add-ons to standard property policies to be inadequate.  If so, a separate policy may be available.  One type of policy commonly used for non-standard coverage is a Difference in Conditions (DIC) policy.

DIC policies are not standardized, and they are given different names by different insurance companies.  But they generally fall into three categories:  DIC property coverage, DIC business interruption coverage, and DIC loss of utilities coverage.  These policies provide coverages that are analogous to those which can be added to standard property policies, but on a larger scale.

DIC property policies are written much like a standard property insurance policy, except that they specifically cover losses caused by perils excluded under standard policies, such as flood or earthquake.

Similarly, DIC business interruption policies cover losses of business income resulting from perils typically excluded, such as flood or earthquake.  Coverage can be purchased for a maximum dollar amount and for a maximum period of time.  Businesses must typically submit information about their revenues and profits to determine the amount of coverage available.

DIC loss of utilities policies cover losses due to a lack of incoming utilities.  These policies are also sometimes referred to as “off premise power coverage”.  While standard property policies may cover a loss of power due to a downed tree from a thunderstorm, they typically do not cover losses due to an excluded peril such as flood or earthquake.

Every DIC policy is a customized policy.  This allows for flexibility in crafting coverages, but requires great care in reviewing policy language to make sure the desired coverage is provided.

 

 Which Coverages Are Right For You?

The cost for DIC policies typically starts at about $10,000 per year.  This may be appropriate for large law offices.  For smaller offices, purchasing additional coverages as add-ons to a standard property policy may be a better solution.  All law offices should evaluate their need for these kinds of coverages.  Even law offices located in upper floors of large buildings may need coverage if, for example, a flood prevents access to the building or knocks out power. 

Offices that face no risk of flooding may still benefit from coverage for loss of utilities.  However, “business interruption and loss of utilities endorsements can vary widely as to what coverages are provided”, warns Christopher Fill, Vice President of AON Risk Services Central, Inc.  “It is important that the policy specifically defines whether coverage is limited to gas, water and electric or if it is extended to telephone and internet.”

 

Electronic Data Storage

It is important to keep in mind that insurance only covers financial losses and cannot replace unique files, documents, or evidence that may be kept in a law office.  As computer technologies increase and costs decrease, it is becoming easier to make use of imaging technology to store documents electronically.  Once files and documents are in electronic form, off-site data storage and backup services can be used to further protect critical materials.

Finally, it is important for law offices to ensure that their policies contain coverage for Electronic Data Protection (EDP).  Even partially destroyed computers can sometimes have their hard drives restored, but this can be costly, and is sometimes not covered by standard property policies.

 

Gordon Davenport III, U.W. 1983, practices insurance litigation with Foley & Lardner LLP, Madison. He acknowledges summer interns Connor Sabatino and Krista Sterken for their contributions to the article.

 

 

 

o    Consult a Computer Specialist for further assistance

o    Pulling the plug could:

§  Severely damage the system

§  Disrupt legitimate business

§  Create officer and department liability

The U.S. Small Business Administration continues to provide information on its resources that are available to Wisconsin residents and businesses. The following information is the latest that has been provided by the US SBA Office of Disaster Assistance.

 

Residents of 29 Wisconsin counties may be eligible for disaster unemployment for loss of income caused by the severe storms, tornadoes and flooding in Adams, Calumet, Columbia, Crawford, Dane, Dodge,
Fond du Lac, Grant, Green, Green Lake, Iowa, Jefferson, Juneau, Kenosha, La Crosse, Manitowoc, Marquette, Milwaukee, Ozaukee, Racine, Richland, Rock, Sauk, Sheboygan, Vernon, Walworth, Washington, Waukesha and Winnebago counties since June 5.

 

Additional information on Wisconsin disaster recovery can be found at www.fema.gov or http://emergencymanagement.wi.gov/. 

 

The first step is to complete the FEMA registration—even if you are a business, LLC, LLP.  That will trigger the SBA sending the SBA application package.  As an FYI, a person can have “economic injury” without having physical damage.

 

 

U. S. SMALL BUSINESS ADMINISTRATION

FACT SHEET - DISASTER LOANS

 

     

WISCONSIN #11288 & #11289

                                                                                        (Disaster #WI-00013)

For the Counties of Columbia, Crawford, Dane, Dodge, Fond du Lac, Grant, Green, Iowa, Juneau, Kenosha, Marquette, Milwaukee, Ozaukee, Racine, Richland, Rock, Sauk, Sheboygan, Vernon, Washington, Waukesha and Winnebago and for Economic Injury Only the contiguous counties of Adams, Calumet, Green Lake, Jackson, Jefferson, LaCrosse, Lafayette, Manitowoc, Monroe, Outagamie, Walworth, Waupaca, Waushara and Wood in the State of Wisconsin; contiguous counties of Allamakee, Clayton and Dubuque in the State of Iowa; and contiguous counties of Boone, JoDaviess, Lake, McHenry, Stephenson and Winnebago in the State of Illinois; and contiguous Houston County in the State of Minnesota.

 

Result of damages caused by Severe Storms, Tornadoes and Flooding

Occurred June 5, 2008 and continuing

 

Filing Deadline for applications for Physical Damage 

to homes, personal property, businesses:                                                               August 13, 2008                        

 

Filing Deadline for applications for Economic Injury:                                    March 13, 2009       

    

Whether you rent or own your own home, own your own business, or own a small agricultural cooperative located in a declared disaster area, and are the victim of a disaster, you may be eligible for financial assistance from the U.S. Small Business Administration (SBA). 

 

What Types of Disaster Loans are Available?

Home Disaster Loans – Loans to homeowners or renters to repair or replace disaster damaged real estate or personal property owned by the victim.  Renters are eligible for their personal property losses, including automobiles.

 

Business Physical Disaster Loans – Loans to businesses to repair or replace disaster-damaged property owned by the business, including real estate, inventories, supplies, machinery and equipment.  Businesses of any size are eligible.  Non-profit organizations such as charities, churches, private universities, etc., are also eligible.

 

Economic Injury Disaster Loans (EIDL) – Loans for working capital to small businesses and small agricultural cooperatives to assist them through the disaster recovery period.  EIDL assistance is only available to applicants and their owners who cannot provide for their own recovery from non-government sources.  Farmers, ranchers, nurseries, religious and nonprofit organizations are not eligible for an EIDL.

 

What are Mitigation Loans?

If your loan application is approved, you may be eligible for additional funds to cover the cost of improvements that will protect your property against future damage.  Examples of improvements include retaining walls, seawalls, sump pumps, etc.  Mitigation loan money would be in addition to the amount of the approved loan, but may not exceed 20 percent of the approved loan amount.  It is not necessary for the description of improvements and cost estimates to be submitted with the application.  SBA approval of the mitigating measures will be required before any loan increase.

 

What are the Credit Requirements?

Credit History – Applicants must have a credit history acceptable to SBA.

Repayment – Applicants must show the ability to repay all loans.

Collateral – Collateral is required for physical loss loans over $10,000 and all EIDL loans over $5,000.  SBA takes real estate as collateral when it is available.  SBA will not decline a loan for lack of collateral, but requires you to pledge what is available.

 

What are the Interest Rates?

By law, the interest rates depend on whether each applicant has Credit Available Elsewhere.  An applicant does not have Credit Available Elsewhere when SBA determines the applicant does not have sufficient funds or other resources, or the ability to borrow from non-government sources, to provide for its own disaster recovery.  An applicant, which SBA determines to have the ability to provide for his or her own recovery is deemed to have Credit Available Elsewhere.  Interest rates are fixed for the term of the loan, are determined by formulas set by law, and may vary from disaster to disaster with market conditions.  Currently (for disasters, which occurred on or after April 21, 2008) the applicable interest rates are:

                                                                                                                         No Credit Available                      Credit Available

                                                                                                                        Elsewhere                                        Elsewhere             

Home Loans                                                               2.687%                                                    5.375%

                                                Business Loans                                                       4.000%                                                    8.000%

                                                Non-Profit Organizations                        4.000%                                                    5.250%

                                                Economic Injury Loans                                           4.000%                                                    N/A

(more)

 

 

 

 

What are Loan Terms?

 

The maximum term is 30 years.  However, the law restricts businesses with credit available elsewhere to a maximum 3-years term.  SBA sets the installment payment amount and corresponding maturity based upon each borrower’s ability to repay.

 

 

What are the Loan Amount Limits?

 

Home Loans – SBA regulations limit home loans to $200,000 for the repair or replacement of real estate and $40,000 to repair or replace personal property.   Subject to these maximums, loan amounts cannot exceed the verified uninsured disaster loss.

 

Business Loans – The law limits business loans to $1,500,000 for the repair or replacement of real estate, inventories, machinery, equipment and all other physical losses.  Subject to this maximum, loan amounts cannot exceed the verified uninsured disaster loss.

 

Economic Injury Disaster Loans (EIDL) – The law limits EIDL(s) to $1,500,000 for alleviating economic injury caused by the disaster.  The actual amount of each loan is limited to the economic injury determined by program standards, less business interruption insurance and other recoveries up to the administrative lending limit.  SBA also considers potential contributions that are available from the business and/or its owner(s) or affiliates.

 

Business Loan Ceiling – The $1,500,000 statutory limit for business loans applies to the combination of physical and economic injury, and applies to all disaster loans to a business and its affiliates for each disaster.  If a business is a major source of employment, SBA has the authority to waive the $1,500,000 statutory limit.

 

What Restrictions are there on Loan Eligibility?

 

Uninsured Losses – Only uninsured or otherwise uncompensated disaster losses are eligible.  Any insurance proceeds which are required to be applied against outstanding mortgages are not available to fund disaster repairs and do not reduce loan eligibility.  However, any insurance proceeds voluntarily applied to any outstanding mortgages do reduce loan eligibility.

 

Ineligible Property – Secondary homes, personal pleasure boats, airplanes, recreational vehicles and similar property are not eligible, unless used for business purposes.  Property such as antiques and collections are eligible only to the extent of their functional value.  Amounts for landscaping, swimming pools, etc., are limited.

 

Noncompliance – Applicants who have not complied with the terms of previous SBA loans are not eligible.  This includes borrowers who did not maintain flood and/or hazard insurance on previous SBA or Federally Insured loans.

 

Is There Help Available for Refinancing?

 

SBA can refinance all or part of prior mortgages that are evidenced by a recorded lien, when the applicant (1) does not have credit available elsewhere, (2) has suffered substantial uncompensated disaster damage (40 percent or more of the value of the property), and (3) intends to repair the damage. 

 

Homes – Homeowners may be eligible for the refinancing of existing liens or mortgages on homes, in some cases up to the amount of the loan for real estate repair or replacement.

 

Businesses – Business owners may be eligible for the refinancing of existing mortgages or liens on real estate, machinery and equipment, in some cases up to the amount of the loan for the repair or replacement of real estate, machinery, and equipment.

 

 

What if I Decide to Relocate?

 

You may use your SBA disaster loan to relocate.  The amount of the relocation loan depends on whether you relocate voluntarily or involuntarily.  If you are interested in relocation, an SBA representative can provide you with more details on your specific situation.

 

Are There Insurance Requirements for Loans?

 

To protect each borrower and the Agency, SBA may require you to obtain and maintain appropriate insurance.  By law, borrowers whose damaged or collateral property is located in a special flood hazard area must purchase and maintain flood insurance for the full insurable value of the property for the life of the loan.

 

For More Information Contact:  SBA Disaster Assistance Customer Service Center at

(800)-659-2955 or disastercustomerservice@sba.gov

www.sba.gov/services/disasterassistance

While there are other search engines that are available for use to search the Internet, Google has ascended to primacy for most users. Some of the best ways to use Google are the least known such as its ability to work as a calculator, convert currency and units of measurement, track packages, find the location of area codes and more. Google provides a helpful page on many of these features here. PC Magazine just published its 20 Google Tips and Tricks detailing these and others here.

 

To get the most out of a Google search, resources such as Google Guide can be extremely helpful in helping you draft your query and the interpreting the results. Google Guide also has several cheat sheets including this one for general search use and this one for doing basic and advanced calculations.

 

As lawyers, we too often focus on legal specific search and research tools provided by LexisNexis and Westlaw, but to be truly proficient, you need to use all of the tools at your disposal. Google can be a valuable addition to your Internet toolbox.