| For some business owners, seasonal changes mean significant business changes. Have you considered what summer means for your company, aside from sunny, warm days? Does your business have the appropriate insurance for the coming season? Consider the following factors as you evaluate your summer insurance needs:
Increased workload: If your company is heavily seasonal, such as landscaping or construction, your workload is likely much higher in the summer. Do you hire extra employees during this time? Ensure your workers’ compensation policy is adequate. Do you purchase or lease additional equipment? Verify that this additional equipment is covered, and check any limits on your policies. Increased driving: Summertime may mean more driving time. Check commercial auto insurance policies to ensure you have proper coverage for every vehicle and driver. It’s important to keep in mind that coverage for the vehicles is different from the coverage for employees. Increased time off: Summer is also prime vacation time. While regular employees are away, you may hire temporary staff to keep things running smoothly. Check whether your commercial policies provide appropriate workers’ compensation for temporary staff, as well as whether you’ll incur any additional liability. It may be necessary to get extra riders on your commercial policies to carry you through the summer season. Or you may need to rethink your yearly coverage. Contact my office to review your policies and determine if your current coverage meets your summer business needs. |
Business Owners Need More Than SPF Coverage in Summer
June 16th, 2016 — General Insurance, Sign Of The Times
Weigh Anchor with Insurance Coverage This Summer
June 16th, 2016 — Boat Insurance
Are you ready for another boating season with your favorite vessel? Of course. But don’t set sail without your anchor, your insurance anchor, that is.
While car owners usually ensure they obtain proper coverage for their vehicles, boat owners are often unaware of their options. Due to the risks and potential costs involved, insuring water vehicles is just as important as insuring land vehicles. In fact, your boat may well have a higher value than your car! Before you hit the lake with this valuable asset, talk to my office about insurance coverage for your boat. Options are available for a wide range of boating concerns:
- Risk coverage: Insure your boat in case of fire, theft, storm, capsizing, stranding, collision, or explosion.
- Property coverage: You likely have a lot invested in the equipment aboard your vessel, possibly more than you realize. Insurance can cover items such as tools, life preservers, seat cushions, anchors, oars, dinghies, extra fuel tanks, canopies, and skis.
- Liability coverage: This will provide coverage in the case of an accident. You will be protected against legal liability if you injure someone with your boat or cause damage to others’ property.
- Medical payments coverage: This provides payment of medical expenses if you and/or other boat occupants are injured in a boating accident.
- Wreck removal: This coverage pays expenses incurred if you have to remove or destroy your wrecked boat.
Stop Thief! Protect Against Business Burglaries
May 15th, 2016 — Commercial Insurance, Sign Of The Times
If a thief breaks into your house and steals your TV, your homeowners insurance policy usually covers your losses. But what about a business burglary? Will insurance save you from these thieves?
Typically, yes. A business owner policy (BOP) covers theft. However, it does work a bit differently from homeowners insurance by providing additional protection business owners need. In addition to theft, fire, and liability, a BOP includes business interruption insurance.
If a thief walks away with the tools you need for construction work, the computer required to run your office, or the inventory you rely on for sales, your policy will help cover your lost operation time. It will keep money coming in while you are unable to run your business.
But like homeowners insurance, business owner coverage offers either actual value or replacement value for reimbursement of stolen property.
If you receive actual value, you will get the worth of the item(s) minus depreciation. With replacement value, you receive the amount it will cost to replace the item. The type of coverage you have for your business helps determine the rate of the premium.
Each owner must decide which is the most cost-effective for his or her business. Consult with my office for advice on determining what is best for you.
Regardless of coverage type, you should keep complete records of all items at your business site. This can include receipts, photos, or a video documenting what is on the premises. This will provide proof for your claim and help expedite the process.
How to Prepare Your Business for Cyber Attacks
May 15th, 2016 — Commercial Insurance, Sign Of The Times
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Going Green? Don’t Forget to Check Your Insurance Coverage
April 13th, 2016 — Commercial Insurance, Personal Insurance, Sign Of The Times
Increasing numbers of businesses are striving to reduce the size of their carbon footprint. While these efforts to go green save valuable resources in the long run, their initial setup can be costly.
For example, under traditional commercial insurance coverage, replacing or repairing old equipment with more environmentally friendly parts is not fully covered. Reimbursement is based on the value of the original equipment, which is typically lower than that of its green counterparts.
However, in response to these growing green needs, many insurers are now offering green endorsements that businesses can add to commercial property policies.
Green materials and equipment endorsements cover the higher cost of environmentally certified materials and equipment. It includes coverage for the difference in cost if your previous equipment was not green certified. If you must rebuild, the policy can also allow you to elevate your building to green certification status.
Green construction endorsements cover all miscellaneous costs involved with green construction, including design, engineering, certification fees, and recycling. Additionally, some insurers offer discounts for hybrid and electric cars if used for commercial purposes.
Some aspects of going green may require business owners to increase their coverages. For example, because green construction typically takes longer than traditional construction, business owners may want to extend their business interruption coverage.
They may also wish to increase overall property coverage if new environmental features are added.
Is Homeowners Insurance Tax Deductible?
April 13th, 2016 — Sign Of The Times
| This month is tax time – an annual ritual in which taxpayers search for every possible savings to help reduce their taxes, including deductions for eligible expenses. Is homeowners insurance one of these?
Although many people believe it is, the short answer is no. However, some exceptions do exist and partial deductions may be possible. Rentals: Rental homes are the most common exception. You may deduct all of the property insurance for homes used exclusively as rental properties. If you rent out part of your home and report the rental income, you can deduct your property insurance as a business expense on the portion of the home you rent out. Business: Do you use part of your home for business? You may be eligible to deduct some of your homeowners insurance, based on how much of the home is devoted to business use. This can be tricky, so it’s best to leave calculations to an accountant. Loss: If you made a claim for theft or other damage on your homeowners insurance policy during the current tax year, you may be able to make a partial deduction. If your insurance was not sufficient to cover losses, you may be eligible to deduct the difference between actual cost and your settlement. Itemizing: You must itemize on your tax return to take advantage of any of these insurance deductions. But itemizing may make you ineligible for other types of deductions. Consult with a tax expert to decide which approach to take so that you will gain maximum benefit. Check with your insurance agent to verify what out-of-pocket insurance deductibles, premiums, or other insurance costs you have incurred over the year to see if you’re eligible for deductions. It’s also beneficial to have a professional prepare your return or check it, cost notwithstanding. The good news? Next year, you can write off the cost of hiring the tax preparer. |
Will Fully Automated Cars Be Fully Insured?
March 15th, 2016 — General Insurance, Sign Of The Times
| For those eager to try an autonomous vehicle, the future is now. Earlier this year, the Canadian province of Ontario announced it will take applications for driverless test car licenses, providing there is a licensed driver to take over if necessary. This raises a question: How will the insurance industry handle automated vehicle coverage?
Underwriting: Currently, an insured’s accident history and the average number of miles driven are used to price vehicle insurance. But soon the self-driving features of a particular model may become the important factors influencing insurance prices. “Black boxes”: As well, monitoring driver activity may become the norm. Insurance companies currently offer policies based on driver behavior data gathered through telematics devices (black boxes.) While not in wide use now, these may become more usual as insurers push for increased monitoring of driverless cars. Costs: Theoretically, the number of accidents should fall as automation increases. With human error taken out of the equation, the result should be reduced cost. Fewer accidents could mean cheaper rates for collision and other types of insurance. Actually, costs may shift. Manufacturers and suppliers may be held more liable for accidents due to product failure. Complex parts will be expensive to replace. Repair costs may increase. These new complications may make it difficult to ascertain if consumers will see a reduction in costs overall. The Ontario initiative should yield not only accident stats, but also important insights into the public perception of driverless vehicles. Because, this, too, remains to be seen. |
Learn the ABCs of Asbestos, Taking Special Note of ‘B’
March 15th, 2016 — Commercial Insurance, Sign Of The Times
Contrary to popular opinion, asbestos is still around: asbestos liability remains one of the biggest threats to U.S. businesses, and the insurance industry estimates that asbestos-related losses could go as high as $85 billion. Here are the ABCs of asbestos – something you may not have thought you’d need to know about:
Asbestos: Naturally occurring in the environment, asbestos is a group of minerals that exists as bundles of fibers, which can be separated into threads. Because of their durability and resistance to heat, fire, and chemicals, asbestos fibers have been widely used in many industries, including construction, shipbuilding, and automotive.
After heavy use in many products, asbestos was discovered to be a health hazard. Consequently, the use of asbestos has been greatly reduced. However, older products, especially older buildings, still contain asbestos. It is still legal to use asbestos in some applications, providing the product contains less than 1% asbestos.
Business insurance: Asbestos can prove costly to business owners whose employees use or regularly encounter it. Be aware of safety regulations, and implement them, using the help of employee education programs. Liability lawsuits are still being filed by individuals exposed to asbestos, and liability insurance is a must-have – not a should-have. Check with my office to ensure your coverage is appropriate for your level of risk.
Claims: The initial discovery of the harmful effects of asbestos resulted in a surge of claims. By the 1990s, it seemed this wave had passed. Recently, though, it has resurfaced. Business owners should be prepared with proper insurance.
Whew! Old MacDonald Had Insurance on His Farm
February 13th, 2016 — Farm Owner Insurance
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What Is Terrorism Insurance and Should I Have it?
February 13th, 2016 — Commercial Insurance, Sign Of The Times
Terrorism insurance coverage is not what it used to be. Prior to 9/11, business owners got terrorism coverage free or for a small fee. Events of the past fifteen years have changed this.
As of 2002, the Terrorism Risk Insurance Act set out insurance coverage basics for terrorist attacks.
The act established that commercial property owners must be offered a terrorism coverage option. Private insurers provide the commercial policy, but it is reinsured by the federal government.
Premium rates are based on risk for attack. If your business is located in or near a potential target for terrorism, rates are higher.
A policy for a large business in an urban area may costs thousands per year, while less vulnerable areas can see annual premiums of just $25.
It is up to the Treasury Department to administer the program and officially declare whether an event is a certified act of terror – only then is compensation provided for the losses.
If an act is certified as terrorism, a business owner’s terrorism insurance kicks in to cover property damage or losses caused by the attack.
These may include damages to structures and/or vehicles and injury or death of workers. Nuclear, biological, chemical, radiological, and war events are not covered.
Currently, 60 percent of business owners in the U.S. carry terrorism insurance. Should you? Consider the following:
- Are you located near a potential target?
- What is at risk? (Do you have a lot of property, vehicles, and employees?)
- What is the policy cost?
