Entries Tagged 'Sign Of The Times' ↓

Books. Batteries. Even pizza. You can buy anything online now. You can comparison shop and bargain hunt as long as you wish, spend less time, maybe less money … and choose from many options. It seems shopping online is a win-win proposition.

Not always. For some products, you’ll only lose, and insurance is one of them.

With so many websites providing insurance quotes, you might think shopping for insurance online is completely safe, but that’s not always the case. Here are some of the dangers of shopping online for insurance:

Missing out on discounts

If you’re a new insurance shopper, or don’t know a lot about insurance, you won’t know what discounts you may be eligible for. In fact, there’s a wealth of discounts, some reducing your premiums by up to 10%. These include:

• Safe driver discount
• Good student discounts
• Vehicles with safety and anti-theft features
• Affinity discounts, given for belonging to certain organizations, working for certain employers, or for alumni of certain schools.
• New family discounts for newly married couples or those who have just had a child
• Multi-policy discounts for carrying two or more policies with the same insurer

Not all quoting websites recognize that you may be eligible for discounts. They may not connect the dots, and it’s highly unlikely they’ll ask. For example, the website doesn’t ask if you recently married or had a child and would therefore be eligible for a discount. Your loss is their gain. Your personal insurance agent, on the other hand, knows what to ask and will give you quotes that may land you discounts.

Premiums that increase after you’ve bought

Say you’ve provided all the information required for quotes and decide to purchase the policy that is right-priced. Then you receive your new policy in the mail and discover your premium has doubled. Even worse, the online company tells you you’re ineligible for coverage and your policy will soon be cancelled. How does this happen?

After buying a policy, it’s sent to underwriters for review and official approval. Depending on the policy type, there may be other steps, like visiting homes or businesses. Usually when changes in premiums or eligibility happen between the time of purchase and the time of the first bill, it’s because the purchaser has left out information – either accidentally or on purpose – and it was later discovered by the underwriters.

Other times, the site didn’t pick up on or correctly factor in information found in the new policy reports they submit to insurers. People, reports, and even computers make mistakes, and small pieces of information discovered afterwards can change everything.

Not getting, or knowing, what you need

Always compare apples to apples – be sure the policies you are comparing are identical in every way. This isn’t always easy, especially online. You need to know what you want. Or else.

Most online quoting systems default to the lowest coverage amounts and leave out options like roadside assistance. If you don’t pay attention, you won’t be guided to other options as you would if you were dealing with an experienced agent familiar with your situation. You may get attractive quotes. However, you probably won’t have adequate coverage or will have less coverage than you have had previously.

Some online insurers encourage you to click through without examining the options and will give you quotes that are cheaper than what you’ve had. But just try going to the FAQs online to find answers to your questions.

Beware of websites promoting “name your own price” tools. You can name your price, but 99% of the time to get it you’ll end up with a bare-bones policy with the lowest coverage limits available.

For example, in the case of bodily injury coverage, you may pay $30 monthly for limits of $25,000 to $50,000. But you’re hardly saving if you cause an accident and injure someone, only to find yourself responsible for their $200,000 medical bills. With an agent, you’ll be well-informed, know what options you need, why you need them and in what amounts.

The internet is a great tool, but it can’t ask or answer questions, make suggestions, or look for missed savings opportunities. Buy the wrong sized sweater online – send it back. Buy the wrong policy online? No refunds given, and you may suffer consequences for a long time.

Exercise more. Eat better. Learn something new. It must be New Year’s resolution time again. As 2016 approaches, it’s a good opportunity to make New Year’s insurance resolutions by reviewing your coverage and deciding if changes are needed. As you examine your policies, consider making these resolutions for next year:

Update home inventory: Is your home inventory up to date? What have you sold, donated, or pitched in the past year? What devices will the family splurge on this Christmas? An up-to-date home inventory is essential to make the most of your coverage in case of theft or disaster. Include all items and their cost. Store this list off-site or in the cloud.

Assess car policies: Does your vehicle coverage accurately reflect your car’s value? As autos age, you may want to reduce coverage. Who drives the car? Are primary and occasional drivers designated properly?

Check for savings: Are you currently taking advantage of every savings opportunity? A call to my office will be worthwhile. Check for new programs, multiline discounts, and changes in policy requirements; they may save you a few bucks in the coming year.

Life changes: Be sure to discuss with my office any life changes, such as marriage, divorce, death, or births as well as home purchases, renovations, job changes, and health concerns. These can impact your insurance needs and may affect everything from your homeowner and life insurance policies to health insurance. You may even need commercial insurance if you’re starting your own company in the New Year.

Wherever you live, winter brings the possibilities of storms. In the northern part of the country, whether we welcome him or not, Jack Frost will find his way to our doorsteps, along with ice storms and snow drifts.

In other areas, hurricanes, tornados, and all manner of other nasty weather will cause floods and wind damage. It’s winter again. But it’s also time for seasonal insurance savings.

Two methods of savings are often overlooked by car owners:

Seasonal rides

If you own a car that you don’t intend to expose to the elements this winter, you can save money by reducing your coverage during winter months. Whether it’s a collector car or a sporty coupe with no business on the road in a gale or snowstorm, if it’s not leaving your garage all winter, you can benefit from these savings.

Of course, even in the garage your car remains at risk; you will want it protected against theft or a storm that collapses your garage. But you also don’t want to pay for unnecessary insurance. The solution: remove your liability and collision coverage and maintain your comprehensive coverage. This should reduce your rates and still provide the protection you continue to need.

Home from college

Your student is coming home for the holidays! Providing he or she is studying at a college that is more than 100 miles away, you may already have saved on premiums by removing him or her from your policy.

However, if he or she is now returning, you may want to check with your insurance agent.

If your student’s annual mileage is less than 25% of your car’s total annual mileage, you may be able to switch him or her to an occasional driver; your student remains on your policy but not as a primary driver, and you can save on your car insurance premiums.

This holiday season you want festivities filled with fun, family, and fab food…not insurance claims. Unfortunately, with each holiday season comes the potential for disaster. As you celebrate this season, keep the following in mind. It may not help with in-law issues, but it will, at least, give you peace of mind.

Cooking: According to the National Fire Protection Association, cooking is the leading cause of residential fires in the U.S. From deep-fried turkeys to pie bake-a-thons to reheating contributions to potluck suppers, cooking for the holidays offers the potential for kitchen fires. To improve your odds, closely monitor long cook times and take precautions to avoid spillovers.

Decorations: Festive decorations can also be fire hazards. Don’t leave candles unattended, especially with young kids around, and plan to clean out your fireplace by Thanksgiving. Water your Christmas tree often, don’t use lights with frayed wires, and don’t overload outlets.

Theft: The holidays are busy times for everyone, including thieves. Take steps to protect your property and your finances. Check your credit card statements and remain vigilant for cyber criminals. Protect more expensive purchases by placing them in a safe rather than under the tree. Also, check your homeowners insurance to make sure purchased gifts are covered; for high-value items, you may need to add a rider to your policy.

Finally, if Santa brings you something nice, don’t forget to add it to your home inventory for potential fire or robbery claims. And enjoy your peace of mind this holiday season.

Increasing numbers of homeowners are considering turning a second home into an investment property by renting it out. If you’re thinking about this alternative, depending on the type of rental you’re considering, you may need landlord insurance.

If you are planning to rent all or part of your primary residence for a short time (a week or less), you may not need a landlord policy. Often your homeowners policy will cover this situation. However, check with your insurance advisor to see if any additional endorsements are required.

If you want to start a bed & breakfast in your primary residence, you are then considered a business and will need a business insurance policy.

But when you decide to make a second home into an investment property to rent to tenants over the long term, you have become a landlord, and you will need landlord insurance. The policy may be customized to suit your needs and will provide the additional protection you will need as a landlord.

Options typically include:

• Standard structure protection. The home, any other structures on the property, and any owned items on the premises, such as appliances, are covered.
• Liability. As a landlord, you will need greater liability coverage to protect against claims for injuries on the property.
• Fair rental value coverage. This option reimburses you in the event of a disaster where tenants can no longer live in the home and aren’t paying rent. Your loss of rental income is covered while the home is being repaired or rebuilt.
• Some companies offer extra coverage options such as lock replacement and emergency repair service.

Because landlord policies provide the higher coverage you need, they typically cost about 25% more than a standard homeowners policy. However, discounts such as multipolicy and new/renovated home discounts may be available. Contact my office for the option that’s best for you.

Legal firm Norton Rose Fulbright recently released the results of its 2015 Litigation Trends Annual Survey. The survey involved companies in 26 countries and over 800 corporate legal representatives. These results indicate the areas business owners may want to examine closely as part of a review of their current insurance coverage.

Of the U.S.-based businesses surveyed, 55% reported facing more than five lawsuits in the past year, while only 18% reported zero lawsuits. All surveyed were asked to choose the top three types of litigation their companies faced in the past year. Out of the 20-plus categories listed, these were contracts, labor/employment, and regulatory/investigations.

What does this mean for business owners? In addition to general liability insurance, which is a must, you may want to consider obtaining coverage that targets these high-litigation areas.

Depending on the specific needs of your business, some types of coverage may be more relevant than others. But here are some policies you may want to focus on in light of the top areas identified in the survey.

Contracts

Contract Litigation Insurance (CLI) offers an important type of protection: Are you aware that generally the losing party in a contract dispute is forced to pay the winning party’s attorney fees? These fees can range from thousands to millions of dollars, depending on the case. General Liability, Errors and Omissions, and other types of policies may cover your own legal costs but typically do not offer protection from paying the other side’s legal costs. CLI offers this coverage.

Labor/employment

Workers’ Compensation Insurance is required for any business owner with employees. It must provide strong coverage and reflect the needs of your business. But if your company is particularly concerned with the area of labor relations, you may also want to consider Employment Practices Liability Insurance, which will extend your protection to cover suits involving sexual harassment, hostile workplace claims, unfair employment practices, and discrimination. In addition, ensure that your company is following regulations for Unemployment Insurance and adhering to any specific regulations applicable to your type of workforce.

Regulatory/investigations

Leaders of a company facing litigation can themselves be charged for breaches such as failure to follow regulations, mismanagement, and operational failures. Other policies in place may cover the business, but individuals may not be protected from a lawsuit. If your business has concerns about regulatory/investigations litigation, Directors and Officers (D&O) Insurance may be a good safeguard. This offers coverage for individuals against claims made while they served as an officer or on the board.

In addition to these specialized policies, it is often necessary to simply increase your general coverage. A high-payout lawsuit could require funds beyond the limits of your general liability insurance. To protect yourself in these cases, you can add an umbrella policy. This business liability “umbrella” insurance will kick in when your general liability insurance limits are reached.

By remaining aware of trends in your industry, you can protect your business by having the proper policies in place for your commercial needs.

It’s hurricane season, but the next tropical storm is not the only water threat to your business. Flooding is frequently caused by snowmelt, rainstorms, inadequate drainage systems, and broken levees or dams. In fact, FEMA’s National Flood Insurance Program (NFIP) works on the assumption that everyone lives in a flood zone. The only question is whether it’s a low-, moderate-, or high-risk area. In fact, you’re not protected even if your building is built on a hill; although your company may be located in a low-risk area such as this, you still need flood insurance.

Depending on your mortgage program, many lenders require flood insurance. However, even if they don’t, insurance is still recommended and advisable to protect your business; roughly 20% of NFIP claims and 33% of disaster assistance for flooding involve areas considered at low or moderate risk.

So for the most part, you do need flood insurance. The good news is that low-risk-area businesses will pay less for coverage.

Flood insurance coverage is purchased through an insurance agent, and most insurance companies can obtain coverage through the NFIP, a federal program that offers set rates. The rate for your particular business will depend on factors such as the date of construction, building design, amount of coverage requested, and the area’s risk level.

Twenty-five percent of businesses that close after a flood event never reopen. Be one of the 75% that do. And don’t delay. A 30-day waiting period from the day of purchase is standard.

Your child is leaving the nest. The car is packed to the hilt and pointed toward campus. Among your concerns about tuition, courses, and when you will see your child next, have you considered the contents of your car? Will your student’s belongings be insured in his or her dorm?

While the contents of a dorm room often include secondhand furniture and repurposed thrift store items, among these there will probably be a few pricey electronic devices, gadgets, and gear. Chances are you (and your departing student) have been too busy to consider the importance of insuring these possessions. Homeowners or renters insurance policies usually cover your student’s belongings in the dorm, but here are a few things you may not have thought of:

• Check your policy. Confirm your student’s possessions are covered as part of your homeowners policy.
• Check your limits. Policies sometimes limit dorm coverage to 10% of the total, meaning a policy providing $150,000 coverage for possessions at your residence may only provide dorm room coverage up to $15,000. That may seem like a lot, but consider the replacement cost.
• Take inventory. Before it’s all crammed into the dorm room, make a detailed list, including values. Create a file including receipts for electronics and other high-end items in case you have to make a claim.
• Consider options and alternatives. While your homeowners policy may cover your student’s laptop from theft, it won’t replace it if it’s shorted out by a spilled Frappuccino. For individual items, consider riders or special warranties that protect against such accidental damage. And, of course, items such as heirlooms and expensive jewelry are better left at home.

When your child leaves home for college, the experience can be wrenching, exciting, busy, and frustrating. Make sure it’s not a bad one by insuring your student’s personal possessions before you start packing the car.

Some common backyard activities may lead to claims and lawsuits. Don’t spoil your summer. Here are some activities you may need to insure against:

“Attractive nuisances”: Seventy percent of drownings happen in the summer and occur in backyard pools. A backyard pool is just one example of what insurers call “attractive nuisances”-items that pose great potential danger and are particularly interesting to children. This category also includes ponds, fountains, trampolines, and swing sets.

The solution: Raise liability limits and get umbrella liability insurance. Some insurers will require safety measures; ignoring this could mean cancelled policies or denied claims.

Summer soirees: You’ve gathered friends and family for a barbecue, complete with wine spritzers and beer. But remember: If alcohol-related accidents happen during or after your party, you’re liable for damages in most states.

More than 40 states have host liability laws, making hosts responsible for guests injured-or worse-from consuming alcohol. And more than 35 states have host liability laws that specifically pertain to third-party property damage or injuries stemming from alcohol consumed at your home/party.

Don’t leave alcohol in the open, ensure drinkers are of age, and don’t push your friends to drink more. Consider taking their keys on arrival. Call my office about your state’s regulations and be prepared to increase your liability limits.

Grills and fireworks: Fire risks increase in summertime-just consider that grills alone cause roughly $35 million annually in property damage, and fireworks account for two of five fires reported on Independence Day. Set off fireworks as far from your home as possible, and don’t place your grill too near porches or trees. Also have fire extinguishers nearby, and ensure you’re aware of local fireworks regulations.

Confirm you have adequate liability, property damage, and medical coverage. And don’t forget to ask about coverage terms if someone else causes damage or injuries.

The Internet has made many things possible, and one of these is running a business from the comfort of your home. For many, the dream of becoming one’s own boss is now a reality, but that doesn’t mean you don’t need comprehensive commercial insurance. While some of your insurance needs are the same as those of a regular storefront, you also face different risks that standard insurance policies might not address.

The majority of businesses today obtain insurance coverage through a Business Owner’s Policy (BOP), which lumps several different types of policies into one plan. Luckily, this can be tailored to meet your needs; but exactly what kind of insurance does an e-commerce business need?

First, you’ll still need to invest in standard policies such as:

Property insurance: Just because you aren’t operating a physical business doesn’t mean you don’t need property protection. What if your headquarters/home were to catch on fire? This type of insurance would help pay for repairs, but it can also help cover computer issues and data loss.

Liability insurance: If someone tries to sue you, whether it’s from data loss or libel, liability insurance will help pay for defense costs as well as for settlements against you. It’s extremely important to set the appropriate limits for this coverage, as lawsuits can sometimes climb into the millions of dollars.

Workers compensation: If you have one or more employees, it’s likely required by your state that you offer them workers compensation. If someone is injured while at work, this benefit pays his or her medical expenses and protects you from being sued. Make sure you check with your state board to ensure your policy meets the law’s standards.

Then there are other less common forms of insurance you should consider, including:

Intellectual property insurance: A form of liability insurance, this coverage protects you in case you’re sued for copyright infringement. Even if you’re certain your idea or trademark is 100 percent original, many claimants simply take businesses to court because they know those companies don’t have the money to pay for a court case.

Transportation insurance: Many e-commerce businesses are retail based and rely on second-party shipping and handling to transport goods. Although many shipping facilities have insurance policies of their own, you need to be sure your goods are covered. This policy helps you recover from losses resulting from a failed shipment.

Business interruption insurance: While it’s true the Internet never sleeps, there’s always a chance that a glitch could knock you offline for days, whether it’s a natural disaster or a third-party problem. If it’s a long enough interruption, you could suffer profit losses. This type of policy can help you recover once you’re back online.

It’s important to connect with my office when searching for e-commerce insurance products. Data and Internet security is a top priority, and malware isn’t the only threat lurking around the Internet. Like the Internet, insurance has no physical presence, but when you need it, it’s there.