Entries Tagged 'General Insurance' ↓

When searching for ways to lower insurance premiums, you don’t have to look very far. By going over your policy and goals with my office, you can find ways to save on your current policy. Here are three ways to get lower rates on your current policy.

Cut extra fees

Ask if you’re paying extra for such conveniences as monthly installment fees. If you pay your premium monthly, virtually every insurance carrier will charge you an installment fee of up to $5 a month.

By paying your premiums in full, or as much as possible over a couple of months, installment fees will be lower or removed completely (when paid in full). Setting up an electronic funds transfer (EFT) from your bank account can reduce or eliminate fees as well.

Some carriers also provide “paperless discounts,” easily obtained by agreeing to have all your policy documents sent electronically.

Improve your credit

Credit ratings are significant factors when calculating premiums. Some companies have become so strict with this they’ll sometimes refuse to write a policy for someone with poor credit, and existing policyholders may see premium increases at renewal or even policy cancellation notices for a worsened credit rating. The takeaway: improving your credit can help lower your rate.

Avoid making small claims

You don’t necessarily have to make a claim for minor damage. For example, if your rear-view mirror breaks, instead of filing a comprehensive claim, you could absorb the cost yourself. Most claims, regardless of size, will affect premiums for three to five years, and claims history plays a big role in premium calculations.

As well, once you’ve paid the deductible, you may end up paying more in higher premiums than by covering it yourself.

Go For the Win-Win

By working with my office, you can avoid the disruption and frustration of looking around and reduce your premiums – a win-win

People are working at home more than ever now. However, few realize they need special insurance for their home-based business. After all, they have homeowners insurance…they’re covered through that, aren’t they?

Unfortunately not. But if you didn’t know this, you’re not alone: According to the Independent Insurance Agents and Brokers of America (IIABA) 60 percent of home-based businesses lack sufficient business insurance coverage.

There are three types of insurance designed specifically for home-based businesses:

Homeowners insurance policy riders

Adding a rider to your homeowners insurance is the most economical, with an average cost of under $15 a year to obtain about $2,500 in additional coverage. This isn’t a lot, but it will often make a big difference to smaller companies; this option is usually only available to businesses with $5,000 or less in gross annual business and not much equipment.

In-home business policy

This policy is more appropriate for someone with several employees and a lot of business traffic in and out of their home. It provides more coverage for a variety of incidents, on average $10,000 or more, and costs about $200 a year on average. This policy also includes general liability coverage from $300,000 to $1 million, and limited coverage for loss of valuable documents or information, off-site business property coverage, and use of commercial equipment.

In most cases, you also will be covered for lost income and continuous overhead expenses (such as Internet service, website hosting, and phone service) if your business closes temporarily.

Business owners policy

Also known as a “BOP,” this is what most small- to medium-sized businesses need, and it is a great choice for home-based businesses that have items manufactured or produced elsewhere but run the business from home. It’s also good for those who make products at home to sell elsewhere or online. It includes all the coverage options seen in an in-home business policy, but on a larger scale.

Peace of mind

Paying for additional insurance policies may seem like more bills added to the pile, especially when you’re starting out and want to minimize your expenses. However, it’s one of the most important things business owners can do.

The consequences to a home-based business of not having the right commercial coverage can be dire. Losses will have to be paid out of your own pocket. If you can’t cover them, you could face lawsuits and may be forced to release assets such as your home, savings, business, or more.

Worst case scenario: You may have to return to being an employee to pay off the judgment through your wages. Until a judgment is paid, your assets will continue to be seized, likely meaning you’ll have to shut your doors for good.

Of all the worries you have as a small home-based business, having the right insurance coverage will minimize at least one; effectively, having the right insurance provides peace of mind.

Look at it as an investment equal to the protection you may get from working for someone else.

No matter what line of business you’re in, you probably have one thing in common with other businesses: Most businesses benefit from information databases, communicate via email, and handle other tasks on a computer – online or offline.

Technology allows businesses to communicate with customers as never before and to work more efficiently than ever. But that efficiency comes with a price – major security issues. Even the U.S. government is taking new measures due to an increase in cyber attacks; between 2006 and 2010, computer security breaches increased by a whopping 650 percent, and they have increased since.

Risks include

• damages from unauthorized access to computer systems by third parties
• disclosing or misusing private information, whether this is committed by the business or because the business failed to protect against unauthorized individuals obtaining this information
• transmitting a computer virus or sending an email that causes a crash
• defense and damage costs from alleged copyright, trademark, title or slogan infringement
• defense and damage costs from charges of defamation, libel or slander caused by emails, website or blog content, or postings in online forums

While this is scary, you have options: cyber liability insurance (also called technology errors and omissions insurance).

What does cyber liability insurance cover? Like all insurance policies, options vary, and each business’ requirements are different. The important thing is that you get the right coverage for your needs. Cyber liability insurance typically provides coverage in six main areas:

• Business interruption – If your company is the victim of a cyber crime, this covers revenue losses whether you experience a temporary shut-down or a long-term interruption.
• Notification expenses – Most states have notification requirements dictating how and when a business must notify parties whose private information was possibly compromised or obtained by someone without authorization. In some cases, a business must provide ongoing credit monitoring or identity-theft insurance. This covers that.
• Content liability – Like homeowners insurance, which protects your personal property, content liability helps pay for anything related to your online content and provides protection from copyright claims, slander, invasion of privacy and other IT claims.
• PR and crisis management – If your company experiences a security breach, the company image is tarnished. This coverage would help pay for subsequent public relations and marketing efforts required to restore the damage done to your company’s brand.
• Data loss and system damage – If you’ve always assumed your current commercial liability policy includes computers under personal property coverage, you may be surprised to find it that it only covers the computer itself – not what’s inside. Computer data isn’t protected under other insurance products, so this coverage is vital to the functioning of the company and its systems.

What factors do you believe determine insurance rates? If your answer is: At-fault accidents, violations, where you live, property value, and what you drive, you’re right.

You’d also be right if you mentioned other factors such as age, experience, claims history, and prior insurance coverage. But here’s one you may not have guessed: Your credit history. And this is something – unlike age – that you can control.

The credit link

Research firms have found a link between bad credit and increased claim-filing. They also found that individuals with better credit have fewer traffic violations and accidents than those with bad credit.

After looking at data from roughly 1.4 million policies, the Federal Trade Commission (FTC) found insurers paid out almost twice as much for claims made by those with poor credit compared to people with higher scores.

The FTC said that credit scores are predictive of the number and cost of claims filed, and are effective at assessing risk and rates.

Good credit equals lower risk

Customers who pose less risk in all the factors used to calculate premium rates pay lower premiums. The corollary is that high-risk customers pay higher rates. The “credit” factor is similar to any other factor, such as make of car, at-fault accidents, your neighborhood, and your claims history. It will impact your rate.

While it’s unlikely you’ll start making financial decisions based on how they might affect your insurance premiums, it’s important to know how insurance companies establish premium rates.

What you can do

Understanding why credit affects rates can make you more aware of those things that affect your credit score – missed payments, high credit card debt, and even closing a credit card or an account. Controlling these factors can make a difference.

Make your good credit work for you. Not just when you apply for a mortgage, but also when you purchase insurance.

Depending on the type of business you own, you or your employees may drive regularly on the job. Maybe you own a delivery service or trucking business, but regardless of how you and employees use commercial vehicles, your company risks accidents. And this risk is real; there are more than 5 million commercial vehicle accidents annually.

If that doesn’t convince you to carry commercial auto insurance, consider this: The average commercial vehicle accident with injuries costs an employer $74,000, and $500,000 or more when fatalities occur. And that’s not likely to change any time soon.

But what’s a commercial auto policy like? What are the most common commercial vehicle accidents? How do you file a claim? And most importantly, how can they be prevented? The most common commercial auto claims are often covered by a process similar to those for personal auto policies, as described below:

No-fault accidents: Insurers will file a claim with the at-fault party’s insurer, and the other party’s collision and/or liability coverage will pay for your repairs and incidental expenses. If the other person doesn’t have insurance or doesn’t carry enough coverage to pay your claim, your commercial policy would pay out under uninsured/underinsured motorists’ coverage.

At-fault employee accidents: Collision coverage would pay for your damage, and your liability coverage (property damage and/or bodily injury) will cover the other party’s claim.

When an employee hits an animal: Your commercial policy’s comprehensive coverage would pay for the damages to your vehicle.

Damage by something beyond your control: This includes hitting an animal, damage resulting from poor weather conditions, theft, broken glass, falling tree limbs, and more. Your comprehensive coverage would pay in this scenario.

In a minor accident, or if you or one of your employees is at fault, evaluate whether it’s worth filing a claim. If damage costs add up to less than your deductible, it may be better to pay them out of pocket to avoid harming your claim-free status. However, if you need to file, follow these steps immediately:

• Determine if anyone is injured, and contact the police or ambulance service.
• Contact your insurer to report the accident.
• Collect and record important information before making a claim; this should include names, license plate numbers, witness contact information, vehicle information, and insurance information.
• Record accident details. Take pictures of the accident.
• Make a claim.

Preventing Commercial Auto Insurance Claims: You want to avoid claims, but accidents happen. Taking measures to prevent claims is crucial and include:

• Keeping safety checklists in company vehicles. .
• Coaching employees on safe driving, and setting rules, including hands-free phones only and seatbelts required.
• Establishing commercial vehicle safety criteria and checking it regularly.

If an accident happens on the clock, you’ll be glad you obtained the right coverage, especially in an at-fault accident; when commercial vehicles are responsible, you’re more likely to see larger claims and lawsuits. And with commercial vehicle accident costs skyrocketing, it’s always better to be safe than sorry.

Whether you own a large or small business, workers compensation insurance is a must. Some states require it, but regardless of whether or not it’s required, this important policy protects your employees and your business.

Workers compensation insurance protects you from being sued. If an employee is injured on the job, that employee can sue you for injuries developed as a result of the accident. With workers compensation, an injured employee forfeits the right to sue and receives cash benefits to cover medical expenses, lost wages, or other incidental expenses.

Costs

Without workers compensation, you’d be liable for damages that are probably well in excess of your workers compensation premiums. My office can explain how rates are determined in your area. It’s important that employees notify you immediately if they’re injured while working. Plan for this eventuality and post the plan for workers to see. Naturally, your first step is to deal with the employee’s injury, then file a claim.

Claims

Workers compensation claims are investigated; ensure you provide as much information as possible. Once the claim is deemed legitimate, your workers compensation insurance will pay benefits to the injured employee. Workers compensation is a safety net for employees, but also provides protection for your business.

If you don’t have a workers compensation policy, talk to my office…for everyone’s sake.

People are afraid of doing anything that might cause their auto insurance premiums to increase – even filing a claim for damages that someone else admitted to causing.

In this situation, do you make a claim with your insurer, or do you wait for the other party to file a claim with his or her insurance company?

Although you might be reluctant to contact your insurer, you should always do so. If the other party never makes a claim, you could be left paying for the damage he or she caused. You should also immediately file a formal claim with the other party’s insurer.

If he or she disappears or has given you false information, you can rely on your own policy’s uninsured/underinsured motorists’ coverage – and rates shouldn’t go up.

In general, if you need to file a claim for damage that isn’t your fault, it’s unlikely your premiums will rise unless you have had multiple claims, especially in a one-year period. If you’ve had four accidents in a year, even if none of them was your fault, your insurer will take note.

This claims history may signal fraud, bad driving habits, or bad luck – none of which insurers like.

If you have a bad claims history, and the accident hasn’t caused major damage, both parties might consider leaving insurers out of it. But do ensure you write down the at-fault driver’s license and plate number, as well as insurance and other pertinent information.

Remember, if you’re suspicious, contact your insurer regardless.

Commercial auto insurance or personal auto insurance? That is the question. How do you know which you need, and what defines a commercial vehicle?

Auto insurance carriers have specific guidelines that distinguish personal vehicles from commercial vehicles, but these lines blur when it comes to issues such as telecommuting.

If you’re driving your vehicle to and from work, you don’t need commercial coverage. However, if you use it in your job, or if you’re self-employed and use it for business, you’ll probably need a commercial policy – especially if you have passengers.

You definitely need commercial coverage if you transport people, products, food, or other goods; or if employees drive your vehicle. If you own a business, and a vehicle is in your business’ name, you’ll need commercial coverage, regardless of how often or how it’s used.

Be forewarned: If you list a commercially used vehicle on your personal auto policy, your insurer won’t pay the claim. This leaves you responsible for all accident-related expenses such as medical costs and property damage.

It’s also not uncommon to see claims and lawsuits skyrocket when people realize the involved vehicle is a commercial one. Without coverage this could cost you your business, and your home and other assets.

Commercial auto insurance isn’t that much more expensive than personal insurance, especially if usage is limited and you don’t transport people. But it’s worth the peace of mind, even if you never need to file a claim.

So you’ve bought that much-desired luxury vehicle. Congratulations. Now comes the second sticker shock: the increase in premiums you have to pay to insure your ride.

When purchasing a car – whether it’s new or resale – you should always consider your auto insurance premiums. Many factors determine rates: driving history; amount and type of usage; safety and crash tests ratings; theft statistics; where you live and work; and more.

But even if your vehicle has all the safety bells and whistles, you’ve never had a ticket, and you live in an insurance-friendly (safe) area, there’s no denying one of the most important rate factors of all: your car’s make and model.

The vehicle’s make and model play a very important role in the risk models insurers use to set your premiums. It’s simple logic: The more expensive the vehicle, the more insurers have to pay in the event of losses. So your luxury car will need more coverage, and you’ll pay more in premiums.

If you’re thinking of buying a car in the new year, when great deals abound, be sure to check this list first. So if you do opt for your dream car, at least you’ll expect the premium sticker shock.

Here, courtesy of consumer insurance website Insure.com, is a list of the top 20 most expensive cars to insure in 2013 and their average premiums:

Mercedes-Benz CL600: $3,357,
Mercedes Benz CL65 AMG: $3,330,
Mercedes Benz S65 AMG: $3,221,
Mercedes-Benz SL65 AMG: $3,207,
Mercedes-Benz CL63 AMG: $3,184,
Mercedes-Benz S600: $3,158,
Mercedes-Benz SL63 AMG: $3,075,
Mercedes-Benz S63 AMG: $2,978,
Mercedes-Benz CL550 4Matic: $2,897,
Mercedes-Benz SL5508: $2,671,
Mercedes-Benz S5508: $2,640.

Porsche 911 Turbo: $2,958,
Porsche 911 Turbo S: $2,925,
Porsche Panamera Turbo: $2,912,
Porsche 911 Carrera 4S6: $2,642,
Porsche 911 Carrera S6: $2,626.

Jaguar XKR (convertible): $2,822,
Jaguar XKR (coupe): $2,756,
Jaguar XK8: $2,684.

BMW 650i8: $2,681.

Did you know that homeowners insurance doesn’t cover ANY damages or losses attributed to floods, regardless of origin – hurricanes, torrential rains, or tornados. Many don’t realize this until it’s too late, and they’re absorbing losses themselves.

Experts expect our extreme weather patterns of the past two years to continue. So what can homeowners do?

The NFIP

Flood insurance is available through the National Flood Insurance Program (NFIP), a government program that provides contents and structural coverage through participating insurance companies.

Premiums depend on location and coverage options, providing either structure coverage, contents coverage, or both. Those living in low-to-medium risk areas qualify for Preferred Risk Policies (PRPs). As of October 1, 2013, PRP premiums start at $129 for properties without basements or enclosures.

What’s covered

Depending on your coverage, flood insurance will cover damage to personal belongings as well as structures. However, many types of damage aren’t covered, including those resulting from mold or moisture that could have been prevented, or damage to items outside insured structures, such as swimming pools, trees, and septic tanks.

Flood insurance is required for residents mapped as living in high-risk areas. But because of the increased claims resulting from extreme weather (consider the damage from Hurricane Sandy) re-mapping is underway, and this may change.

Check with your insurance professional for the most recent information.