Tag: Real Estate

Unique Commercial Insurance Risks

8 Industries with Unique Commercial Insurance Risks

Commercial Insurance is a necessary evil that all successful businesses need. Depending upon the state and industry you operate in, your business may face different commercial insurance risks. Because of these unique commercial insurance risks, your business may need just a small amount of coverage or a substantial amount of coverage to properly cover your business.  Regardless of the amount of insurance you choose, you need to make the best decision for your unique business. That can only be done with the help of an experienced insurance agent. Taking some additional time to discuss the day-to-day operations of your business can go a long way towards covering your business. Here are eight industries that have unique risks not present in most businesses.

 

Ridesharing Vehicles

As Ridesharing Companies have grown in popularity, insurance carriers have expanded their offerings to meet the demand for coverage. Normally, rideshare insurance covers personal use and has an add-on for part of the time drivers are signed in to a ridesharing app. The coverage has many grey areas, because of the newness of the profession. Partnering with an experienced insurance agent is highly advised and do not rely solely on the coverage offered by the companies.

Hotel Motel Industry

As with any business in the Hotel Motel Industry, businesses face many risks that can damage the company if not properly prepared for. Depending on all the offerings of your location, there may be a substantial difference in the types of insurance you need. If you offer a restaurant, there will be specific commercial insurance risks associated with that area of the operation. If that restaurant serves alcohol, there are additional risks. It is important for a hotel owner to be prepared for all commercial insurance risks that may arise.

Lawncare & Landscaping

Commercial Insurance Risks in the Lawncare & Landscaping Industry arise from installation, service, and attractive nuisance at the job site. Depending upon the specifics of your operation, work hazards may include injury or damage from debris thrown by power mowers, trimmers, and other equipment. The application of lawn chemicals presents additional commercial insurance risks. Contractors who do not obtain and keep proper licensing and certification for chemical applications create a serious liability exposure to themselves.

Non-Profit

Professionals who work in the Non-Profit Industry, for the most part, go in to this sector to be a part of something greater than themselves. Most do not anticipate having to manage risk or buy insurance. Interacting with volunteers, part-time employees, donors and at-risk populations brings extremely unique risks to non-profit associations. How effectively a non-profit organization handles commercial insurance risks, will contribute immensely to the success or failure of your organization.

Auto Repair Shops

Auto Repair Shops are different from many other industries because of what they do and what they sell. Some shops only perform oil changes, while other shops do most mechanical work on any vehicle. Other shops might work on niche specific cars and some may even offer retail offerings. Each type of business has its own risks included. Taking additional time to speak long and honestly with an experienced insurance agent is the best way to determine what types and how much insurance your business needs.

Commercial Cleaning

Commercial Cleaning Companies have less premises liability because a majority of their work is performed at a remote site. Damage to the clients property is high in this industry as is the risk of employee theft. Wet and slippery floors can add to the risk of slips trips and falls.  Securing the work site during and after the work is completed is a huge risk for commercial cleaning companies. High turnover among employees in this industry adds to this industry.

Construction Industry

The Construction Industry is a common industry that employs people throughout the country, bit the size and scope of each individual business can bring immensely different risks to businesses within this industry. A family operation that builds starter homes in a rural town may face different risks than a large construction company that works building high rise apartments in major cities. Whether the employees are W2 or 1099 can complicate the risks the business faces. The only way to know for certain if your business is covered to your specifications is to partner with an experienced independent insurance agent.

Day Care Center

A Day Care Center, like many industries, have very unique risks. If there is playground equipment at the location, the equipment should be maintained periodically and that maintenance should be documented. Because the nature of the work forces the employees to work near children who do not have strong immune symptoms, cold and flu are common. Proper hygiene is a must to limit the amount of liability to the children and your employees.

Most businesses in this industry operate at one location, but some smaller operations will operate out of a private residence. State laws determine what types of coverage each business is required to carry. In most cases general liability and workers compensation is the bare minimum a day care center can operate with. In most cases, the business will need additional coverage. Partnering with an experienced agent is the only way to know if you are fully covered.

Drone Technology

How Drone Technology impacts the Insurance Industry.

Drone Insurance

Many new technologies impact many different industries on a daily basis.  As long as there has been commerce taking place, there have been new and better technologies that have come along to shake up things for most industries. No matter if it was Benjamin Franklin discovering electricity in the 1700’s, Alexander Graham Bell inventing the telephone in the 1800’s, the Wright brothers inventing the airplane in the 1900’s or Mark Zuckerberg inventing Facebook new technology has been developed longer than the United States of America has been a country.  Companies that adapt to technological change are the companies that succeed in the long term. Today, many technologies are changing our lives at a dramatic pace.  None more apparent than drone technology.

Drone technology is advancing at a very rapid pace. As the technology advances the capability of the drone is growing and the price to enter the market place is dropping dramatically.  Because of this people are buying up drones at an enormous pace. What far too many of these drone owners do not realize at this time is the type and amount of risk they are taking by operating a drone.  This applies whether the drone is being used for commercial or personal use and whether the person is on their own property or on the property of a third party. Here are a few ways that drones will impact the insurance industry now and in the future.

Drone Technology

What industries are using drones to do business?

Construction Industry –    In the Construction Industry  business owners can use drones to analyze a property in ways that were not imaginable just a decade ago. They also can aide construction companies in the repair of facilities after an accident or natural disaster.

Insurance Industry –  The Insurance Industry is using the technology to examine properties after a natural disaster to get a jump start on which properties need the most examination and at what part of the property.  In the future drone technology may be able to aide in the prevention of fraudulent insurance claims by taking pictures of insurable assets periodically throughout the policy period.

Real Estate –  Real Estate agencies are able to get an in-depth look a the properties they are working with in new ways. They can use this technology to give their clients an even better idea of the property they are purchasing or selling.

TV Media –  Drones will give the television industry the ability to get to even more places when covering live footage or it can allow a camera to get to a new place that was not possible before.  Laws and legislation over the next few years will determine how much this technology will be allowed in the media.

Search and Rescue –  Search and Rescue groups can use drones in some scenarios instead of helicopters. This will put the operator of the helicopter in danger less often and will allow the search and rescue teams to get to new places that a helicopter cannot access.

 

Beneficial impacts of the drone industry on insurance. 

Drones and aerial photography can speed up the processing time for claims.  With the use of drones the time to process a claim may move from a few weeks to a few days to eventually a few hours.  Because of this quick turn around in processing, companies in the insurance industry will be able to hire less employees or it can free up more employees to service customers in different ways. This will increase the level of service they are able to provide and lower the price they are forced to charge customers for coverage.

Fraud Prevention is another beneficial part of the use of drone technology on the insurance industry.  The main way drones can aide in preventing fraud is by allowing insurance carriers to more easily monitor what a property looks like throughout the period of the policy.  If they can fly a drone out to observe your property once a month or even once a quarter it is more likely to be able to prevent people from filing fraudulent claims after a natural disaster like a hurricane or a tornado.  This is a prime time for property owners to claim damage to their property was caused by the natural disaster when in reality the damage occurred much sooner and was not a covered loss.

 

Challenges drones present for the Insurance Industry

Start-ups will pop up that challenge the current business model.  A few businesses have already poppped up to serve drone users in ways the traditional insurance industry is not able or prepared to.

Verfily and Dart Drones are two such companies that have already formed to fill a void in the drone market.  Verifly is a that offers drone users the opportunity to buy insurance coverage for a small amount of time when they will be using the technology.  When the drone is not in use they do not have to pay for coverage of the product.  This is especially beneficial to businesses who want to use the technology, but may use the drone only a few times a month or even only a few times a year.  Dart Drones is a business that sprung up because there currently is no industry standardized license for operating a drone. This business offers classes and certifications on the proper use of a drone.  This will allow a business owner to show his insurance company the people using the drones are trained professionals and it is a way for the employee to show they are prepared to operate the drone for the needs of the business.

UAV

Like many things in life, every problem presents an opportunity.  This is very much the case in the drone industry.  Successful insurance industries in the future will be the companies that can harness technologies like drones for their benefit and use the technology to gain a new share of the market they did not have previously.  The companies who are the quickest to adopt this technology and offer coverage for it users will position themselves to be the leaders in this potentially high growth portion of the insurance sector.

 

Inland Marine Insurance Policy

10 businesses that can benefit from an Inland Marine Insurance Policy

 

Landscaping

Lawn care and Landscaping companies use trailers to transport the machines they use to do their work.  A commercial auto insurance policy will cover your vehicle, but not the trailer and any equipment being transported.  An Inland Marine Policy will cover the specialized equipment landscaping companies transport to the facilities they work.

Real Estate Agencies

Much of the work that real estate agents do is over the phone, via email or at a remote location. If the business provides the agents with their own mobile device or laptops than those devices are at risk without an inland marine insurance policy.  There may be other types of equipment agents use for promotional purposes that are covered under the policy as well.

Construction Companies

Construction companies are very diverse in the scope and extent to which they work.  Some companies are a handyman with one or two employees who may have a minimal amount of tools. Other construction companies may have as many as 20 employees who each have their own set of tools, backhoes, tractors, paving equipment and generators just to name a few.  No matter how many tools a construction business does have, without an inland marine insurance policy those tools are at risk.

IT Professionals

Information Technology Professionals tend to work with and on technology products.  Primarily, personal computers and other types of computer products.  Frequently, these companies are having to make house calls, either to customers’ residence or their business, where they are working with the tools these people use to do their work and live their lives.  Many of these customers have a very basic knowledge of how computers and their networks actually work.  Helping these people fix their products without putting yourself or your business at risk is a slippery slope.  Securing an inland marine insurance policy is a must for this type of business.

Electricians

Electricians, like many businesses, do a majority of their work at a remote site. Many random pieces of equipment are needed for electricians to do their jobs.  And Inland Marine Insurance Policy can help Electricians protect themselves and their business from damage, theft or vandalism.

Musicians/Travelling Entertainers

Entertainers spend the majority of their time out on the road.  With the onset of digital technology, record sales have plummeted over the past decade. For this reason, entertainers must make their living through the live performance. Musicians have an extremely large amount of equipment they carry with them everywhere they go. Failing to secure an inland marine policy can be the difference between replacing your gear after one missed gig or cancelling an entire tour because you do not have the cash flow to cover damaged or stolen equipment.

Engineers and Architects

Engineers and Architects tend to do a decent amount of their work out on location.  There is usually a significant amount of equipment they carry with them to the job site and the equipment tends to be expensive.  Unless they have an inland marine insurance policy the risk for losing this equipment falls on the business. Partnering with a trusted independent insurance agent can be beneficial for these businesses to determine just how much equipment they have, what the value of that equipment is and if they are willing to take the risk of that equipment being damaged or stolen.

Commercial and Residential Cleaning Companies

Cleaning companies have a lot of equipment they use on a daily basis. Some of the equipment can be extremely expensive. The risk for inland marine coverage is greatest for residential companies. This is because residential cleaning companies typically travel to two or more locations throughout the day.  While the employees are driving from location to location the business is at risk.  The business is also at risk while the employees are at the remote location doing the actual cleaning. Commercial cleaning companies on the other hand commonly travel to one site and clean one or a few facilities at the one location.  The equipment is stored at the location and not transported to and fore.

Appraisers

Appraisers; like architects, electricians and engineers, travel to off-site locations frequently. While travelling to the location and while out performing work the equipment they use to do their job is at risk of being damaged or stolen.  Depending upon the scope or your appraisal business this can be a significant risk.  Consulting with a trusted insurance agent can help you determine how much risk your business faces and how much if any coverage you need.

Home Health Care Agencies

Home health care agencies perform all of their work at the location of their customer. This industry can be very high risk.  It tends to have a larger than normal amount of claims and their severity can be severe. These risks typically are bodily injury from the employees lifting and transporting the sick or elderly patients.  The equipment they use to do these jobs can be expensive and if not covered by an inland marine insurance policy the business is at risk for any damage to the equipment.