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Top 10 Small-Business Insurance Claims
February 17th, 2019 — Commercial Insurance
General Liability vs. Professional Liability: The Difference?
January 16th, 2019 — Commercial Insurance
Business professionals bear the burden of responsibility in two distinct arenas: general liability and professional liability. Both types of coverage are necessary to secure sufficient protection for your business. Here’s the difference:
General liability offers protection against costs associated with property damage, medical expenses, settlements, and slander.
For example, if a customer comes into your store, slips, falls, and sues your business for his medical costs, your general liability insurance will pay for these expenses. Another general liability situation would be a contractor who causes damage to a client’s home and is sued for repair costs.
Professional liability protects your business against claims that you did not do your job properly. In other words, any time you offer a professional opinion or perform a duty, you are professionally liable for the results and are vulnerable to lawsuits.
For example, an accountant who offers tax advice might be sued by a client who loses money after taking that advice. Another company might be sued after failing to file important documents appropriately.
Professional liability insurance is also called Malpractice Insurance and Errors and Omissions Insurance. When business owners hear these terms, they may assume this coverage is necessary only for doctors and similar professions. However, even an honest clerical mistake can be considered an error in professional services and result in a lawsuit.
To fully protect your business, consider holding both types of policies. My office can help you determine the coverage that is best for your operations.
Deck the Office Halls…and Avoid Damage
December 17th, 2018 — Sign Of The Times
A little festive cheer can boost office morale and make surroundings more appealing to employees and customers. With this in mind, many businesses decorate for the holidays; however, it’s important to also keep safety in mind. Unsafe decorating practices can lead to personal injury or property damage. To avoid these disasters and the ensuing claims, use the following precautions:
The gift of gravity: Don’t take chances when stringing lights on doorways or windows. Rolling office chairs do not make good step stools. Always use a stable, well-positioned ladder to reach decorative heights.
A sprinkling of good cheer: As you decorate, it might be tempting to hang items from sprinkler heads. Don’t do it. The decorations can prevent the system from working properly.
Chestnuts roasting on an open fire: Do you plan to plug in lights or other electrical décor? Inspect all cords before using them. If any items have frayed cords, exposed wiring, or damaged prongs, do not use them. These pose a fire hazard.
An extended holiday: If you need to use extension cords for your decorations, be careful about placement. Avoid stringing these cords in high-traffic areas or under rugs, as they can create a tripping hazard.
Stuffed with goodies: Be careful not to overload circuits when powering electrical decorations. You may cause shorts that damage office equipment or cause overheating that starts a fire.
To all a good night: Put a system in place to ensure all indoor and outdoor electrical decorations are turned off at the end of the day or before everyone leaves the building.
Workplace Injuries: First Five Steps
November 16th, 2018 — Commercial Insurance
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Peer-to-Peer Home Rentals: Here’s What You Need to Know
October 16th, 2018 — Personal Insurance, Sign Of The Times
Are you considering renting out your home, guest room, or basement? Peer-to-peer home rentals and services such as Airbnb have grown in popularity. Discovering the income potential in these opportunities may entice you to hand over your keys.
While this may be a good option for you, it’s important to first consider the insurance implications involved. Do you have the right coverage for peer-to-peer rentals? If a renter starts a fire in the home, will you be covered? Always consult with your insurance provider before pursuing any rental arrangements.
If you will be renting all or part of your property on a regular basis, your homeowner’s policy is likely insufficient. You may need business coverage, such as a hotel or bed-and-breakfast policy. Month-to-month home-sharing liability policies may also be available that suit your circumstances. On the other hand, if the rental situation is a one-time occurrence, you might be covered by your current homeowner’s policy, or you might be required to add an endorsement.
Either way, notify your carrier about your intent to determine whether your current coverage is appropriate. Your agent can help you make any changes needed to ensure you and your property are fully protected.
Additionally, if you are considering renting someone else’s peer-to-peer rental space, confirm your coverage with your carrier. Typically, your homeowner’s policy will provide coverage for stolen possessions and accidental injuries you cause to others. However, you should verify this with my office before making any rental agreements.
When it’s Time for Teenagers to Take the Wheel
July 18th, 2018 — Personal Insurance
He has matured past the tricycle phase, grown beyond the bicycle stage, and is ready to try his hand at something with an engine. Your teen says he’s ready to drive. Are you ready?
Whether or not you’re emotionally up for the task, you can at least prepare yourself financially. Take the following steps before your teen takes the wheel.
Assign for savings: Which car will your teen drive? If possible, ask your insurer to assign your teen to the car with the lowest value. Keep in mind that this must be the car that the teen drives. By linking your teen to the least-valuable car, you can save on insurance premiums.
Boost your coverage: If you currently have minimum liability insurance, consider increasing your coverage. You may be fortunate to have a responsible teen, but statistics are still stacked against him. Research shows that teens are more likely to be involved in car accidents than adults, and their chance of being held accountable for a crash is twice that of adults. You’ll be grateful for greater coverage if your teen has an accident that results in costly repairs or lawsuit payments.
Balance the cost: As you raise your liability, you may pay higher premiums. To balance this, consider raising your deductible. Higher deductibles typically result in lower premiums. You can apply this savings to your increase in overall coverage.
Make the call: As with any life changes that may affect your insurance, contact your agent to discuss what solutions are best for your new teen driver.
Car Sharing and Auto Insurance: What You Need to Know
June 15th, 2018 — Personal Insurance, Sign Of The Times
More and more car owners are looking to their vehicles as sources of potential income. The family sedan is no longer simply a tool to get to work, and it does more than deliver pizzas.
Peer-to-peer car-sharing services have made it possible to “rent” a personal vehicle to other drivers who are seeking transportation. If you don’t drive your car every day, this can be a fairly simple way to earn a little extra cash. However, there are a few important considerations to keep in mind regarding car sharing and auto insurance. Using your vehicle in this way can greatly affect your coverage. First, your policy may not cover your vehicle while it is being driven by other people under a car-sharing agreement. Your carrier doesn’t have any information about who is driving your car or their driving record, so the coverage cannot extend to them. If someone is in an accident or your car is stolen while he or she is using it, you may not have coverage. Second, you are making money with this arrangement. This puts your vehicle use into a business category, rather than personal. Again, this might negate coverage from your personal policy. Due to these circumstances, car-sharing services typically offer their own auto insurance. If you’re considering offering your vehicle for peer-to-peer car sharing, first consult with my office. Someone here can advise you about your coverage and help you determine if this is a viable option for the use of your vehicle. |
Take a Bite Out of Crime (and Your Insurance Premium)
May 15th, 2018 — Commercial Insurance
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Protect Your Rep or it Could End Up Costing You
May 15th, 2018 — Sign Of The Times
How can business owners best protect their companies? You may have heard the most common small business claim is theft. This is true, but it’s not the most costly one. Reputational harm claims top this list. These claims include libel, slander, and violation of privacy.
The average cost for these claims is $50,000. If the claim involves a lawsuit, the price skyrockets. Costs to defend and settle the suit raise the average cost for these types of claims to more than $750,000. Typically, around one-third of all general liability claims result in a lawsuit. For small businesses without proper coverage, these suits can prove devastating.
Of course, the preferred solution is to avoid these claims altogether. To protect your business from reputational harm claims, take the following precautions.
Ask permission, not forgiveness. Would you like to post photos on your website or use them in your marketing materials? Do you plan to use a quote or other content for your next marketing campaign? Before you launch your initiative or post your social media blast, get permission to use these items. Copyright and privacy suits can prove costly. Obtain written permission to avoid reputational harm claims. Additionally, ensure all employees are aware of your permission policies.
If you can’t say something nice… Cutthroat competition can make criticizing competitors a tempting tactic. Don’t do it. When speaking publicly or with customers, avoid criticizing competitors. If you never say anything negative about them, they will not have any ammo to use for a slander suit.
Do I Need Extra Insurance for Exterior Rebuilds?
April 16th, 2018 — Personal Insurance
You’re planning your next remodeling project. Perhaps you’re expanding your home to enjoy more living space. Maybe you’re replacing the 1990s siding. Whether your project is a minor exterior renovation or major roofing repair, it’s important the work is properly insured. This may or may not involve the purchase of additional insurance.
In dealing with a contractor: If you are planning to hire a contractor to perform the work, protect yourself and your property with proper coverage. For example:
By placing yourself as an additional insured on your contractor’s policy, you’re also covering the gray areas that include situations such as a roofer’s ladder falling over and damaging your neighbor’s property. The additional-insured documentation should protect you in these types of third-party cases. For major projects, such as additions or new homes, you might want to consider purchasing temporary builders risk insurance. This will cover mishaps during construction. Contact my office: Whatever type of project you’re planning, contact your insurance agent early in the process. Your agent can advise you on the best type of coverage to add. He or she can also make the proper adjustments to the value of your home. If you are building an addition, for example, your home will be worth more than when your homeowners policy was originally written. Communicate with your agent to ensure you have appropriate coverage based on the new value of the property. |