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12 terms to familiarize yourself with before your next renewal.

Insured

The person, group, or organization whose life or property is covered by an insurance policy.

Insurer

Insurance company that issues a particular insurance policy to an insured. In case of a very large risk, several insurance companies may combine to issue one policy.

Named Insured

Any person, firm, or organization, or any of its members specifically designated by name as an insured(s) in an insurance policy. .

Premium

The price or amount paid for insurance.

Claim

A formal request to an insurance company asking for a payment based on the terms of the insurance policy.

Carrier

A company that offers and underwrites insurance policies.

Policy

A document detailing the terms and conditions of a contract of insurance.

Underwriter

The person who decides whether to provide insurance and under what terms.

Agent/Broker/Producer

A person licensed by a state and employed by an insurance company to sell insurance policies on the company’s behalf.

Umbrella Coverage

Umbrella coverage protects your business when your existing liability insurance policy limits can’t cover all the expenses of a claim.

Hired and Non-owned Auto

A coverage that is commonly added or endorsed onto a commercial auto insurance policy. This endorsement adds additional coverages for the insured in the event there becomes a liability issue for an automobile accident involving a vehicle they don’t directly insure (rentals or employee owned cars).

Experience Modification Rating

An employers’ Experience Modification Rating refers the factor calculated from actual loss experience. It is used to adjust the businesses premiums (higher or lower) based on the businesses loss experience relative to the average underlying manual premiums for workers compensation coverage. The Modifier (Mod) compares the insured experience to the average class experience.

Additional Terms to consider familiarizing yourself with before your nest renewal

Waiver of Subrogation

A Waiver of Subrogation is a contractual provision whereby an insured waives the right of their insurance carrier to seek redress or seek compensation for losses from a negligent third party.

Certificate of Insurance

A certificate of insurance is a document that is used to provide info on specific insurance coverage and provide verification insurance is in place at the time of issuance. The certificate contains the types and limits of coverage, the carrier, policy number, named insured, and the policies’ effective dates.

Certificate Holder

The certificate holder is the person, business, or nonprofit organization who is provided with a certificate of insurance to prove coverage is in place at the time of issuance. The certificate holder will be notified if at any time the policy is cancelled before the listed policy effective date.

Additional Insured

The Additional Insured is the person or organization who is not automatically included as an insured on an insurance policy, but who is included under the policy at the request of the named insured.

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.

5 Myths about Commercial Auto Insurance.

Commercial Auto Insurance can be a tricky coverage for many business owners. Many think it is just like their personal auto coverage and many think it is an all encompassing policy, meaning if something happens to my business car I am covered. Right? That would be wrong and here are five examples of incorrect assumptions, many business owners make regarding their commercial auto Policy.

All of My Employees Are Covered While Driving Company Vehicles

It depends on the policy and the carrier. Some policies require you to name drivers. In some cases companies will exclude some of your employees because of their driving record. Most all carriers have an option to include all drivers. Like in all situations, it is best to consult with your agent about the limits and exclusions to your policy. That way you can be crystal clear what is and is not covered under your particular commercial auto insurance policy.

I Can Cancel My Policy During the Off Season to Save Money

You can choose to cancel your policy in the off-season if your business is seasonal. It can save your business some money on premium if you are able to store your vehicle indoors and in a secure place. If you are planning on doing this you need to be aware that the vehicles are still at risk. If there is damaged you are liable for the repairs. This damage can come from via natural causes like wind and hail damage. Damage can also come from things like vandalism or theft. If you experience any of these problems while not covered you or your business will be responsible for damages.

The Entire Premium is Due Up Front

Most companies allow commercial policies to be paid in monthly installments. Most refer to these policies as Pay as You Go. If you have the ability to pay the full years amount up-front, many carriers do offer a discount for doing so.

Bundling is Always Cheaper

In many cases this is the case, but it is always a good idea to shop your policy around just in case. Some carriers specialize in certain coverages and some carriers change their appetite for certain industries and types of coverages. This means that if your carriers has recently taken a loss in one industry or in one type of coverage, they may not be as excited about quoting your policy. This may cause them to offer a higher rate for this one policy or for your industry. For this reason, it is important to partner with an agency who has partnerships with many carriers and can quote your policies as a bundle and individually.

If you are self employed you don’t need Commercial Auto Insurance

I drive a company car, so I don’t need my own auto insurance.
The car may be covered, but you may not. Even if your employer has coverage that provides some liability protection, it may not be enough, or you could be sued personally in a bad accident. Also if you borrow or rent a car, you should have your own protection. Being listed on another auto policy isn’t enough to protect you because business use is different. You need to purchase special protection.

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.

6 Types of Insurance every Home Healthcare Small-Business needs.

Home Health Care is one of the fastest growing industries in the country. With the baby boomers moving up in age, the need for these services is growing larger every year. The need for proper insurance in these businesses is also becoming more important. For a business owner, most of the clients in this industry are nearing the end of their life. Most are not in good health. Many get hurt or are sick frequently. Protecting your business from mistakes or court costs is crucial in this industry. Below are 6 types of coverage every Home Health Care Business should carry.

Home Health Care

General Liability
Professional Liability
Business Personal Property
Hired and Non-Owned Auto
Workers Compensation
Commercial Crime/Employee Dishonesty

General Liability

General Liability (GL) Insurance, in most cases, is the most important insurance coverage a home health care business can obtain. In most states it is required by law and it is usually the first line of insurance purchased by a business. It protects your business from most liability exposures other than automobile and professional liability. Other coverages are usually added to this depending on the business needs, but all businesses need General Liability. Unlike Workers Compensation Insurance this coverage protects your business from liability to third parties.

Professional Liability

Professional Liability Insurance is coverage for professional businesses that give expert advice or provide technical services for a fee. It is designed to help protect a business against any claims of negligence. Therefore, professional liability insurance helps business owners defend themselves from lawsuits and helps pay the damages awarded in a civil lawsuit. Professional liability insurance is commonly referred to as errors and omissions (E&O) or medical malpractice.

Business Personal Property

Business Personal Property Insurance is usually an addition to a Commercial Property Insurance Policy. It protects your business from damages to your buildings and property of your business. The personal property of your employees and the personal property of others you might be responsible for. In most policies it also provides additional coverages including: debris removal, pollutant cleanup, preservation of property, fire department service charges, increased cost of construction, electronic data, newly acquired or constructed property, off-premises property, valuable papers and records, outdoor property, and nonowned detached trailers

Hired and Non-Owned Auto

This type of auto insurance coverage is for when employees of a home health care business use their own vehicle or a rented vehicle to do company business. This can be as simple as an employee running to the grocery store to buy snacks for a meeting, an employee using a rented vehicle while away at a conference or using a rented truck to transport your equipment.

Workers Compensation

Workers’ compensation insurance differs from most other forms of business liability insurance. That is because it is specifically designed to cover your employees and not third parties. Workers Comp covers insurance claims by employees in the event they are injured on the job. The function of workers compensation insurance is to insure a business is not liable for most accidents that occur on the job and employees have comfort knowing their doctors bills and some lost wages will be covered if they are hurt on the job.

Commercial Crime/Employee Dishonesty

This type of insurance coverage is mainly for employee theft of money, securities, or property. Most policies include some or all of the following types of employee crimes: forgery or alteration, computer fraud, funds transfer fraud, kidnap, ransom, extortion, and counterfeit money. It is usually written with a per loss limit, a per employee limit, or a per position limit.