Tag: Commercial Auto Insurance

Beauty Salons

How much insurance coverage do Beauty Salons need?

 

There are many Beauty Salons all across the country. Each one has their own unique set of risks depending upon the scope and scale of their operations. THe risks facing a beauty salon are very different from the risks of a real estate agency, a day care center or even an electrician.  All of these industries have their own individual needs and that is why each need their own package of insurance protection.  Here are four insurance coverages’ every Salon should have in order to properly protect their business. There may be more coverages that may be needed based on the actions of your employees. For this reason, it is extremely important to spend additional time speaking with your insurance agent about what exactly your employees do and do not do on a daily basis.

Beauty Salons

 

✓ General Liability
✓ Professional Liability
✓ Inland Marine
✓ Workers Compensation

 

 

General Liability

General Liability Coverage will protect most beauty salons from property damage and bodily injury claims to third party.  Because of the high amount of traffic coming in and out of the business there is a likelihood to have more than average claims due to slips trips and falls.  Keeping the premises clean and not cluttered can go a long way towards limiting these types of claims.

Professional Liability

Professional Liability Coverage is a coverage specifically designed for businesses that provide specialized advice or services.  The need for this coverage will be higher the more high end your business is or if you work with customers around special occasions like weddings, birthdays, religious celebrations, proms, etc.  This policy will cover most legal fees if your business is sued by a customer for not providing the proper service for their occasion.  The lawsuit does not have to result in a judgment against your business to rack up an enormous cost. Even if you are innocent, you still have to hire a lawyer to defend yourself in court and you may have to take time away from your business to defend your reputation.

Inland Marine

Inland Marine Insurance Coverage will protect your property that is highly specialized or frequently in transit.  Exposures to this equipment may come if employees provide their own tools.  If they do, there may be an employees, tools and equipment exposure. If your stylist goes to the client’s premises to perform services, there may be goods off premises or in transit. There may be a bailees exposure with wigs or other hairpieces, or from storage of customers’ goods at all-day events offered by some high-end salons.  If any or all of these exposures exist than your business needs to add this coverage.

Workers’ Compensation

Workers’ Compensation Insurance is required by law in 48 out of 50 states. Depending upon the rules and regulations of your state, you may or may not need to secure this coverage.  How your business is structured and whether or not your employees are W-2 or 1099 employees can impact the requirement for this coverage as well. Workers Comp Coverage will cover your business for most lawsuits that occur from injured workers who were hurt because of a normal business activity. It will provide your employee with medical costs and some lost wages while they are hurt and not able to work.

Electrical Contractors

Insurance needs and concerns for Electrical Contractors

Electrical contractors carry unique risks that many other businesses in the construction industry do not face.  With those risks come additional types of insurance needs.  Each electrician is unique in the scope and capacity in which they operate their business.  Depending upon the type of work each electrician partakes’ in, there may be a number of types of coverage an electrician needs to secure in order to properly secure their business.  Here is a list of 5 commonly carried coverages most electricians secure.

 

  • General Liability
  • Commercial Property
  • Commercial Auto
  • Inland Marine (Tools and Equipment)
  • Workers Compensation

General Liability

Exposures at the contractor’s office are generally limited because of the lack of access to the premises. Storing materials outdoors may create vandalism and attractive nuisance hazards.  Electrical voltage is always a risk for electricians.  This is due to the risk of electrical burns or electrocution to employees or other third parties.  An electricians’ employees can cause damage to the client’s property and can cause bodily injury to members of the household, the public, or employees of other contractors.  These are risks that are covered by a general liability policy.

Commercial Property

If you own a property; no matter how small, your business needs to secure commercial property coverage. Property exposures at the contractor’s premises typically are fairly low for electricians.  This is generally limited to those of an office and storage for supplies, tools, and vehicles.

Commercial Auto

Automobile liability exposure is higher for electrician than other brick and mortar businesses.  Most electrical contractors are in transit to transport workers, equipment and electrical supplies to and from job sites.  A driving hazard is a huge risk for insurance companies to insure.  The more time your business spends driving the higher the likelihood of claims.  Those claims tend to rise in both frequency and severity.  Implementing a safe driving program and keeping up to date driving records for all employees can help limit what you pay in premium.  Age, training, experience, and drivers’ records, as well as the age, condition, and maintenance of the vehicles, are all important items to consider.

Inland Marine

Inland marine is also commonly called ‘Floaters’ coverage.  It is meant for specialized equipment that is frequently in transit as a part of business operations. The exposures often include owned or rented equipment, building materials, as well as materials being transported to and from the job site.  This is commonly needed for businesses that transport their equipment to a third party site for use delivering a service.  The most basic example of an industry that needs this coverage is a landscaping company.  It can also include any business that takes equipment away from the premises for use as a part of normal business operations.

Workers’ Compensation

Workers compensation insurance is required by law in 48 out of 50 states.  Each state has their own specific exclusions depending upon the number of employees and the scope of your work.  It is important to check with the proper governing agency in your state to determine if you are required to purchase this coverage. Even if you are not required to purchase this coverage in many cases it is still beneficial to your business to secure it.  The coverage provides you with protection from lawsuits that may result from injured employees who are injured as a result of normal business practices.  Employees give up the ability to sue for normal injuries, but get back coverage for their medical expenses and some portion of their wages while they are hurt and not able to work.  Typically they are reimbursed 60 percent of their normal wages for the time they are not able to work.

 

Real Estate Insurance Needs

5 Types of insurance every Real Estate Agency should have.

 

Real Estate Agencies take on a unique set of risks compared to other traditional businesses.  Many businesses, like a restaurant for example, have a brick and mortar location where a majority or all of the business takes place.  Real Estate Agencies, while most do have a physical address, have a majority of their work taking place at a third party location.  These locations frequently are at the property they are helping to sell.  For this reason, real estates agencies have to secure a unique group of coverages in order to adequately protect their business. Here are 5 recommended coverages most real estate agencies should secure.

 

  •    General Liability Coverage
  •    Errors and Omissions (Professional Liability)
  •    Property Insurance
  •    Hired and Non-Owned Auto
  •    Workers’ Compensation Insurance

 

General Liability Insurance

For most real estate agencies, the risks related to general liability coverage are often minimal.  This is primarily due to not much business occurring at the physical location.  A majority of their work is done over the phone, by electronic mail or at a third party location. Off-Premises risks can be extensive for this industry. That is true whether you are dealing with the selling of properties or rental properties.  These risks typically arise from sales visits, inspections, open-houses and similar work done at the customers’ home or other buildings.  In some cases, there is an agent representing both the buyer and the seller.  Any damage that occurs during joint operations, like an open-house, can cause a dispute between all parties involved. Monitoring of keys is another risk that must be dealt with carefully.  Documenting every time, you access a facility is highly recommended to limit the risk you face regarding access to the facility.

Errors and Omissions Coverage (Professional Liability)

Exposure associated with errors and omissions (E&O) may be the most significant risk a real estate agency faces.  This is because a majority of the work you do is highly specialized and you are giving advice.  If you give the wrong advice, it can cause the business to be liable to the client in the future. To limit these risks the agency can make sure all employees have the proper credentials, experience and has the proper ratio of professional employees to clerical employees. Thorough background checks are essential to limit E&O Claims.

Commercial Property Insurance

If your agency owns physical property, you need to secure Commercial Property Insurance.  There are two ways these policies are sold.  They are sold on a replacement base or on an agreed upon value of the property.  In most cases, it is better to secure a policy at replacement level.  This will include the cost to tear down the facility, remove all debris and build a new facility.  If your policy is an agreed upon value it typically does not include these additional costs.

Commercial Auto/Hired and Non-Owned Auto Coverage

If you own vehicles for your employees to use when they are away from the office than you need to secure a Commercial Auto Policy.  Most real estate agencies do not own vehicles specifically for company use, but they do have agents who use their personal cars for business purposes.  When these employees are using their personal vehicles for business purposes the business is liable for any accidents that may occur.  The business is not liable for the damage to the employee’s car. This is covered by the employee’s personal auto insurance policy.  The business is liable for damage to the car and any bodily injuries that may occur to third parties.  A Hired and Non-Owned Auto Insurance Policy will take care of most liability a business faces resulting from accidents that occur when employees drive their personal cars or rented vehicles for business purposes.

 

Workers’ Compensation Coverage

Workers’ Compensation Insurance is required by law in 48 out of 50 states.  Each state has their own rules and regulations regarding the administration of this system.  Each state has their own exceptions for some small or family owned businesses.  Workers Comp is similar to general liability, except that it covers employees and not third parties.  When an employee is hurt on the job, work comp coverage will cover some of their lost wages (typically 60%) and medical costs incurred as a result of the injury.

Garage Liability Insurance vs. Garage Keepers Coverage

The difference between Garage Liability Insurance Coverage and Garage Keepers Coverage is the difference between Liability Insurance and Physical Damage Insurance. The first covers the insured’s liability for operations and autos. The second covers damage to a customer’s vehicle. All businesses with garage risks need both coverages to properly insure their loss exposures.

Gold Colored Cylinders in a Car Engine showing the need for Garage Liability Insurance.

A typical garage business has an auto exposure, both owned, non-owned and hired. These businesses also have risks related to premises/operations, contractual and products/completed operations exposures. Rather than writing two separate policies, the Garage Policy allows a business to combine the coverages into one all encompassing Insurance Policy. A Garage Policy is a combination Business Auto Coverage form and a Commercial General Liability Coverage form. Garage liability insurance is an absolute necessity for the owner of a car dealership, a local mechanic, a tire dealer or a company doing oil changes. These policies are for employers who make a living working on cars. These programs can also apply to companies installing stereos or satellite radios. Business owners should not make the mistake of believing Garage Liability Insurance covers the loss of a customer’s auto while in your care. A separate Garage Keeper’s Policy or an addendum to the garage (service center) policy already in place must be added.

Auto Repair Shops: Garage Keepers Coverage

Garage Keeper’s Coverage

Under the Garage Keeper’s Coverage, there are two options for the auto service operator to consider. One is called direct excess coverage. This policy pays up to the value of the destroyed vehicle above the owner’s coverage. The other type of coverage is direct primary coverage, where the service owner’s carrier shares the loss with the car owner’s insurer.

Garage Liability Insurance

If you own or operate a business that has a repair center and the repair center has a fleet of tow trucks or dispatched repair vehicles, those assets are covered under Garage Liability Insurance. However, if the customer car is sitting outside waiting for service, or inside on a lift, they are not covered.  This is the reason why you need a keeper clause for the protection of your business. Please note that most Garagekeeper’s Policies excludes loss to non-factory installed sound equipment.

Keys, Workshop, Mechanic, Tools

Garage Liability Insurance providers may become extremely discriminatory regarding the requirements for getting the insurance, such as strict loss prevention or risk management efforts by the auto service owner. To cut costs and keep premiums lower, indemnity companies are often refusing to underwrite such things as wind and hail damage for company and customer vehicles. Tolerance by insurers for multiple incidents at a garage is limited. These are things a business owner should keep in mind when purchasing insurance. Partnering with an experienced independent insurance agent is the best way to determine how your business should best proceed when purchasing this type of insurance coverage.

Make sure every employee and officer of the company is on the policy. Coverage is usually only afforded to the locations and drivers listed on the coverage. Employees that get a DUI or go over their point allowances may be excluded from driving privileges and non-company drivers need to be discussed with the agent.

Getting and keeping garage liability insurance can be daunting. Proper night lighting, well landscaped grounds, well maintained signage and windows as well as a freshly painted exterior as well as clean floors and bathrooms inside can make or break a policy being approved.

 

My Insurance Question is a creation of The Insurance Shop LLC. The Insurance Shop was formed in 2005 and over the course of a decade and a half they have developed relationships with more then two dozen carriers. Those carriers allow their agents to get the best value on commercial insurance for many different industries. If you are ready for a new look at your coverage, give us a call at 800-800-4864.

New Business- Starting from scratch

Ideas for Start-up Business Plans

So you have decided to (or maybe you are still considering) taking a leap most of us only dream of.  That leap is to start your own business. Perhaps you have worked for someone else in your trade for several years and want something of your own.  You may be fresh out of school (or still in school) and want to get started early.  Maybe you just have a unique opportunity to start your own business. If this is you than you are probably looking at what you need to start:

  • Start up capital
  • Supplies
  • Office/shop space
  • Sales opportunities

These are things all first time business owners are looking for. One thing many new businesses put off until last moment is insurance. You will spend thousands of dollars just to start up your dream of owning your own business; you don’t want one accident to take it all away from you. Below are several insurance policies that can protect you from claims that could easily ruin your dream of owning your own business. Here we will go over the basic areas that you want to look at for starting your own business, and when you want to start looking.

First, Why is this important? Claims with new businesses can be more devastating for a few reasons.

  • The controls that are in place to prevent/reduce the extent of claims/liabilities are less established. Many of these types of firms can be started in a home office.
  • New businesses are many times less defined in their operations, which can bring the operations in to areas the business owner may not be as familiar with. These areas they may not have as much experienced in. This can bring up more risks a
  • Some businesses do not have an established LLC or Corporation established. Regardless of the insurance policies you have, it’s important to work with your attorney and CPA to make sure you choose the business entity type that works best for you. This separates your business liabilities from impacting your personal assets. It is bad enough if the incident you could have protected closes your business, but it is a much worse situation if the same incident causes you to lose your house or your savings.  

 

Here are a few policies we recommend you start out with pretty early on:

Commercial Auto – Commercial auto is a topic in itself and oftentimes one of the most overlooked policies by a new business owner since many people just use their personal auto’s and don’t see this as something they need. This might not be the first new policy you look to get, it should be the first insurance policy you likely already have that you will want to look at changing though. If your using your personal vehicle for business purposes, at the very least you want to make sure your agent and insurance carrier is aware of that and that you have business use on your policy, upgrading your personal auto policy to a commercial auto policy might be a couple bucks more, but in many cases the difference is a lot less than you may expect, plus, a less expensive policy that doesn’t cover what you need isn’t really that valuable anyway.

General liability –  Starting a business, general liability is the first policy most companies look for. If you’re a retail store its sometime referred to as “slip and fall coverage” to cover liability from bodily injury on your premise. Keep in mind, some of these policies only do that and might not cover all/any off premise damages. These policies come in a variety of forms and coverages and the pricing typically reflects that, that’s not also to say you cant shop to make sure you’re getting the best value. This for some business types can be packaged into a Business Owners Policy that can cover property and other additional coverages your company needs like Data Breach, EPLI and Hired/Non owned auto liability.

Workers Compensation –  For starters let me clear a couple things up first: Workers Compensation is not automatic; it’s not something automatically gets taken out of payroll without you getting a policy in place first. This policy covers employee injuries when hurt on the job for medical expenses and a portion of lost wages. For some high risk businesses like heavy manufacturing, construction and transportation this can be one of the most expensive and hardest policies to get competitive quote’s on and can be frustrating for businesses owners that just want to buy the policy. The key in the beginning is getting a policy in place, pay your bill on time, and keep continuous coverage. Once you have a prover record, especially for 3 years with coverage in place the market is a lot easier to get coverage for companies that have established. If you are a labor intense business the pricing can seem very high, the expense for covering a claim out of pocket, and fines from many states can be just as expensive if not more than your premium would be anyway. This normally isn’t needed until you hire an employee, but sometimes contracts can still require it which can open up more business opportunities for your company.

Professional Liability –  For some companies your biggest risks aren’t necessarily a customer slipping and falling, or an employee injuring themselves. Many professional firms have what can be equally as damaging of risks to them. The obvious ones are your Physicians Medical Malpractice, your insurance agents and accounts have Errors and Omission’s insurance to cover mistakes or professional errors made. Little mistakes can make huge claims but there are some companies you don’t think of needing this like Printing companies, Website Developers, IT Companies, Bookkeeping and Marketing Firms. Website Copyright infringement, or a faulty code in a software program that causes a glitch or even worse a breach could be a huge expense and could mean huge liability on your company.

 

Every business owner is worried about protecting what they own. The property you own can be devastating if its lost, damaged or stolen. However, the liabilities you take on during the everyday course of your business operation can be even worse and costlier. Even if you don’t own any property. There are insurance policies to cover the obvious, but also many things you wouldn’t think of. If there is a chance of an injury, fire, something stolen, or decreasing in value for something other than every day wear and tear (heck maybe there’s a policy for that too) there is likely an insurance policy for it. Working with a Professional Insurance Agent that can give you options and help guide you on the coverages that would be most important to you.

6 coverages every Lawn Care or Landscaping business should carry.

Lawn Care and Landscaping is a diverse industry and with that diversity comes a lot of risk. How you go about protecting your business from those risks can make all the difference in the long term success of your business. Some landscaping businesses simply mow lawns, others lay sod and plants shrubs, some even climb several feet into the air to work on trees and others grow and sell plants at one central location. No matter what type of landscaping business you are running, here are 6 coverages that every business in this industry should carry.

  • General Liability
  • Workers’ Compensation
  • Commercial Auto or Hired and Non-owned Auto
  • Inland Marine
  • Commercial Property
  • Business Owners Package

General Liability

General Liability Insurance is a policy that most every business needs. Depending upon the state and industry you operate in, it is required by law to be in business. For the lawncare and landscaping industry this coverage can prevent your business from damage that is caused to third parties by you or your employees. This can apply regardless of whether the incident occurs on your property or at the property of the customer.

Workers’ Compensation

In 48 out of 50 states workers comp is required by law. What you pay in premium will depend on your experience modification rating and the NCCI class code for your business.  Lawn care and Landscaping is an industry that has several classification codes which include: 9102, 0042, 9182, 0106, 9220, and 9016.

Commercial Auto or Hired and Non-owned Auto

Commercial Auto and Hired and Non-owned Auto Insurance are two coverages that deal with vehicles being used for business purposes. Which of these two coverages your business needs is determined by whether or not the business owns the vehicle that is being used for daily work. If you have employees using their own vehicle as a part of their job than you need Hired and Non-owned Auto Coverage. If you are leasing the vehicle for the season, than this is the coverage you need as well. If your business owns the vehicle than you need commercial auto insurance.

Inland Marine

Inland Marine Insurance Coverage is also known as equipment coverage or floaters coverage. These terms are used because this insurance is for equipment not covered by your property or auto insurance policies and it is usually equipment that is going to be in transit. If you have a trailer with several pieces of equipment that is going to be transported to several locations throughout the day than you need this type of coverage. This could also be necessary for greenhouses if they are having plants delivered to a clients location. while the products are being transported they would be covered by this policy.

Commercial Property

If you own property, no matter how big or small than you need this coverage. Without it you can put at risk everything that makes your business run. Unless you can afford to replace the property and everything inside it than you need this coverage. This policy can usually be added to  BOP for minimal cost to the business.

Business Owners Package

Most insurance carriers have what are called Business Owners Packages designed for each industry and each classification code. Through their experience with claims in each industry, each carrier has a basic recommended package of coverage they deem appropriate for each business. These packages can be adjusted based on the industry you are in and the amount of risk you as a business owner are comfortable taking. This is where the advice of an experienced insurance agent who you trust can be very valuable. An experienced agent should be able to lay down the risks and rewards of each coverage and help you to make the most informed decision possible when buying insurance for your business.

 

 

SIC Business Insurance Codes:

•   0781- Landscaping and Planning

•   0782- Lawn and Garden Services

NAICS Liability Classifications:

•   541320- Landscaper Architectural Services

•   561730- Landscape Services

Business ISO General Liability:

•   Code: 97047- Landscape Gardening

•   Code: 97050- Lawn Care Services

Common Workers Compensation Class Codes:

•   0042- Landscapers and Drivers

•   9102- Park Maintenance, Lawn Care, and Drivers

•   0106- Tree Pruning or Spraying

Have employees travelling? Do you know what kind of insurance you need?

Many businesses have employees who travel regularly as part of their job.  This is a part of many industries that can open up new markets and help to keep important clients happy. Nothing can replace meeting with someone for a firm handshake and a smile. With this travelling brings on a diverse amount of risk that your business is taking on. Your business should have written policies in place for how to protect company information while employees are travelling. Here are some things to consider:

 

  • Are your employees flying or driving?
  • Is the car being driven an employee owned vehicle, a company vehicle or a rented vehicle?
  • Are the employees taking a company laptop, tablet or other computer device?
  • Are all of your insurance policies still in place when the employee is out of state?
  • Is the employee coming home immediately after business is done. If not, policies need to be clear when they are on company time and when they are off.

 

Here is a list of policies to consider when having employees travel as part of their job. It is also always a good idea to consult your agent or insurance professional about the risks you may be taking.

 

Hired and Non-owned Auto Insurance –  Hired and non-owned auto insurance is commonly added as an endorsement onto a commercial auto insurance policy. The endorsement adds additional coverages for the insured for an automobile accident involving a vehicle they don’t directly insure.

 

Commercial Auto –  Commercial auto insurance for company vehicles is an important aspect of any business insurance program. This coverage provides protection against physical damage and injury resulting from car accidents. It should also provide some protection from theft and vandalism.

 

Workers’ Compensation –  Depending on where your employees are travelling to you may need to check with your insurance agent or carrier to make sure your employees are covered underneath your workers’ compensation policy while they are travelling. The Walsh Test is a good measuring stick to determine where jurisdiction will be when a workers compensation occurs involving more than one state.

 

Cyber Liability Insurance –  Cyber Liability Insurance, also known as Data Breach Coverage is coverage for your business from the intentional or accidental release of secure information to an unsecured environment.  A breach is typically a single incident where confidential, or protected information, is either viewed, copied, or stolen by someone not authorized to have access to the data.  You need to have a strict company policy in place for how you will safeguard company and client information while the employee is travelling.

 

What is Artisan Contractors Insurance? 

Inside the insurance industry Artisan Contractors Insurance is commonly referred to as insurance for Artisan Contractors. What is an Artisan Contractor? That is a question many new business owners ask when applying for insurance the first time. These business owners frequently find out this is what classification their business is in. Artisan Contractors are a wide range of businesses that operate in different parts of the construction industry. Electricians, Plumbers and Painters are all included in this category.

Artisan Contractors Insurance for Electricians

Some common (NCCI) industry classification codes include:

  • 5191 Electricians
  • 5183 Plumbers
  • 5537 HVAC Contractors
  • 5221 Concrete Construction
  • 5474 Painters
  • 5437 Finishing Carpenters

They each have a similar, but different role within the construction industry and each type of work carries unique risks. From an insurers perspective they each carry their own risk and that is why they are separated into several separate class codes. Working with your insurance agent to make sure you are in the proper classification code can go a long way towards removing any headaches down the road relating to your commercial insurance policy.

Below are some common types of insurance recommended for Artisan Contractors Insurance:

 

General Liability

General Liability (GL) is typically the first line of insurance purchased by a business. GL is required by law in most states; additionally, businesses are often required to purchase coverage with most contracts for leases, loans, and work performed for others. GL exposures are primarily at the contractor’s office or shop and are generally limited due to lack of public access to the premises. Retail sales increase the possibility of customers slipping, falling, or tripping if customers visit office to view products.  Job-site exposures include potential injury to the client or damage to the client’s property. Tools, power cords, building materials and scrap material, use of saws and other power or hand tools are all potential risks.

Workers’ Compensation

Workers’ Compensation Insurance is a state mandated insurance coverage required by nearly every state in the country. The basic purpose of Workers’ Compensation Insurance is to assure that injured workers get medical care and compensation for a portion of the income they lose while they are unable to work.  Workers receive benefits regardless of who was at fault in the accident. Also, Workers’ Compensation Coverage prevents the employer from bearing the costs of injuries that occur during normal business operations.

Commercial Auto

Automobile exposures are generally limited to transporting workers, equipment and supplies to and from job sites. Hazards depend on the type and use of vehicles and radius of operation with the main hazards being upsets. Vehicles may have special modifications or built-in equipment such as lifts and hoists.  If employees utilize their own personal vehicles for work related tasks then Hired and Non-Owned Coverage should be purchased.

Hired and Non-Owned Auto 

Hired and non-owned auto insurance is commonly added (or endorsed) onto the commercial auto insurance policy. This endorsement adds additional coverages for the insured in the event there becomes a liability issue for their business for an automobile accident involving a vehicle they don’t directly insure. This coverage will pay for damages to a third party, on behalf of you the insured. This coverage kicks in if the business is held liable for an accident or injury caused by a vehicle they hired or a vehicle someone uses while performing work for a business. If you send an employee to run and errand on behalf of the business, your business is responsible for damages that occur.

Property Insurance

Commercial property insurance for business owners covers many types of losses and damages to a companies property. Property exposures are generally limited to those of an office, shop, and storage of materials, equipment, and vehicles.  Property insurance typically provides coverage for events like fire, smoke, wind, hail and vandalism. Policies often have included or excluded coverages. Some natural disasters like earthquake or hail, may have separate deductibles.

Inland Marine

Inland marine exposures include contractors’ tools and equipment, including ladders and scaffolding, hoists, and portable welders, the transport of materials, and installation floater. Goods in transit consists of tools and equipment as well as products purchased by the customer for installation at the job site.

 

Types of Business Insurance

The other day I was going through my emails at work and I notice something that I hadn’t really noticed before. In the past couple months, I have received numerous emails from clients asking what different insurance policies cover and what additional coverage they need. After replying to each individual email, I came up with the great idea to create a template that briefly explains the different kind of business insurance policies a business owner might need.

 

What Types of Business Insurance Are Available?

The main types of business insurance you should consider include:

  • Property and Casualty Insurance: Property insurance covers the physical location of the business (even if it is rented or leased) and its contents from things like fire, theft, flood, and earthquakes—although read the terms carefully to make sure they include everything you need. Casualty insurance, on the other hand, covers the operation of the business, but the two are usually grouped together in policies.
  • Commercial Auto Insurance: Commercial auto insurance covers your business for loss or damage to vehicles used by your business and for damage to others caused by your business vehicles. Note that vehicles used for business are not covered under your personal auto insurance policy even if a vehicle is used for both business and personal purposes.
  • Liability Insurance: Liability insurance covers you in the event someone sues you for negligence, which can occur, for instance, if someone falls on your property.
  • Product Liability Insurance: Product liability insurance covers your business for damages caused by a product designed, supplied, or manufactured by your business.
  • Business Interruption Insurance: Business interruption insurance can make up for lost cash flow and profits incurred because of an event that has interrupted your normal business operations.
  • Health Insurance: Health insurance provides health coverage for you and your employees.
  • Life and Disability Insurance: Life and disability insurance covers your business in the event of the death or disability of key owners, partners, or employees.
  • Workers’ Compensation Insurance: If you have employees, you must, by law, participate in workers’ compensation programs; workers’ compensation insurance covers employees if they are injured on the job.

 

            I get it! Trying to find the perfect coverage at an affordable price is extremely difficult. If you are a new business owner or even a business owner who hasn’t gotten any insurance before, it can be complicated. Not knowing what each term means in a policy is frustrating. That is why I provided a brief description of the basic policies that business owners frequently purchase. Never be scared to call a professional and ask them for more advice. And always make sure you are reading the exclusion page on your policy. You want to make sure you are properly covered for your job. The last thing you want is for something to happen, and realize something isn’t covered under your policy.

Ride Sharing and Auto Insurance

Our country is dealing with some phenomenon’s that we have never experienced before and its causing some big changes in the insurance business.  Not all insurance companies have caught up to the technological advances of Drones, Driverless Cars and Ride Sharing or “Transportation Network Companies” as states are now referring to now.

Drones and Driverless cars are going to have to be an article for another day. For now, companies like Uber and Lyft are quickly changing how Americans get around. They both offer an opportunity for individuals to make money off their personal vehicle by giving others a ride for a fee. Ride sharing is a trend that is developing into a major industry that insurance companies and state lawmakers have quickly had to adjust to. Most states are opening up to this, some more openly than others as you would expect and the same goes with insurance companies.

 

What does Ride sharing have to do with Insurance?

Most personal auto policies are going to exclude business use from coverage on your policy. Many carriers have “business use” as an option, however it is important to know what that means as the coverage can vary greatly from carrier to carrier. So if you are driving for one of the new or existing Ride sharing companies it is important to know your personal auto coverage well. If Ride sharing is not covered at all, you really should take action. Either by seeing if a commercial policy is available with your current insurance company that would cover Ride sharing (not all carriers do) or by shopping for a new personal or commercial auto policy that will cover these operations.

 

Limits, limits limits….

As insurance agents we preach that the state minimum limits are very risky for your personal auto policy. In states like Missouri the state minimum liability limits are $25,000 for bodily injury, $50,000 for total bodily injury and $10,000 for total property damage. Think about the last time you went to the doctor with anything serious. It’s not far fetched to say these types of limits are not hard to meet in any serious vehicle accident. Consider if you were to have a paying customer in the car or possibly multiple. Many articles are pointing out the coverage gaps that Ride sharing brings about. This is important, however the limits of your policy are something that need to be addressed even if your insurance carrier says they will cover the claim. The coverage doesn’t matter as much if the limit of the coverage is too small to cover the claims.

For example; say you were to get into an accident which caused injuries to the another person which resulted in bodily injury claims of $90,000. If you have state minimum limits in Missouri with $25,000 in bodily injury liability per person this means $65,000 of the damages are not covered by your insurance and that goes back to you personally. Forget about mortgage, student loans and all other bills, that is a big hit that leaves nothing for you to show for it. If you had spent a little more on your auto insurance policy and had limits that were more acceptable, your insurance could cover this.

The amount an agent would recommend for auto insurance is going to vary on your individual circumstances and risk. Generally most recommended commercial auto policies have limits of at least $1 Million combined single limit. This allows a sufficient baseline of liability limits to make sure your covered claims are covered to the amount you would need them to be. The minimum limits we would typically recommend for a personal auto policy are around $100,000 bodily injury for each person, $300,000 for bodily injury liability for each accident and $100,000 Property Damage Liability. If you add the Ride-Share exposure, increasing those limits to at least $500,000 or $1 Million individually or combined single limit is better to make sure your protected for the full amount you need. This does cost a little more in premium. However, if a claim occurs the premium difference is the last thing you are going to worry about. Especially if your limits are less than the cost of the accident.