What is Terrorism Insurance Coverage

Posted on May 10, 2011 by John Gardner

Historically, terrorism insurance was not offered by most insurance companies because the premiums were too difficult to calculate due to the enormity of a terrorist act. Most terrorist acts cost businesses millions of dollars, so terrorism insurance was never an issue for most people until September 11, 2001. The 9/11 terrorist attacks changed the way insurance did business. The Terrorist Risk Insurance Act was introduced in November of 2002, and since that time, terrorism insurance has been a must-have. Since 2001, there have been many other terrorist acts in other countries, but the United States is still vulnerable. Another extension was added to the Terrorist Risk Insurance Act in December of 2007 that included chemicals, nuclear, radiological, and biological terrorist acts. The North American Industry Classification System has been working with the local government and insurance industry to try to find the best affordable terrorist insurance for all companies.

Typically, the coverage for terrorism insurance is as follows:

Eligibility of Insurers- Any company that owns commercial property and already has coverage for casualty insurance is eligible for terrorism insurance.

Coverage Terms- After a terrorist attack happens to a business that has commercial property and casualty insurance, the insurance will automatically go into effect.

Cap on Assistance- Insurance companies have placed a cap on assistance that cannot exceed over $100 billion each year.

Terrorist Insurance Coverage Terms- After a terrorist event, the federal government will pay eighty five percent of the cost, and the insurer will pay fifteen percent.

Lines that are covered- Commercial property, war coverage, and worker’s compensation is covered.

Mandatory Terrorism Coverage- Insurance companies must offer terrorist insurance to all companies who own commercial property. The terms of insurance must be the same for all companies that have terrorism insurance. Any losses that are not due to terrorism acts will be limited.

Assistance Recoupment- Surcharges for recoupment can be up to thirty percent a year in premiums for all insurance policy holders.

State Workers Compensation Fund- Workers compensation is included in the insurance, as well as insurance for state workers compensation, self insurance, and surplus carrier lines.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

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Keeping Your Cool While On The Road

Posted on April 19, 2011 by John Gardner

With so many people on the road during peak vacation months, it may be a good time to brush up on what you should do in the event you’re involved in a crash. Here are some tips that may save you some time and aggravation.

Preparedness starts before you leave the driveway:

Put a cheap digital camera and pen and paper in your glove box. Car insurance claims can be settled faster if there’s a good record of what happened, and pictures always help. If you can take photographs or collect license plate numbers, or even names and phone numbers of witnesses, these can all help your claims personnel establish facts faster.

If you’re involved in a crash:

  • Move your vehicle out of the roadway, if you can. If your car is able to be driven, move it off of the road a safe distance. Most states require that you do this, so it is ok. By getting off the road, you can help to avoid a second collision.
  • Turn on your flashers or your lights if there is no hazard of fire. You want to be certain your vehicle is visible to other drivers.
  • Check yourself and your passengers for injuries first, and then those of the other vehicle. If someone is injured, call 911 immediately.
  • Call local police to report the crash.
  • Call your insurance agent or company as soon as possible to report the crash. The earlier your insurance company knows about the crash, the faster it can get to work to resolve your claim.
  • Start documenting what happened, if you can. If you’re able to do so safely, take photographs, make notes, ask witnesses for names and phone numbers. If you’re not able to do so safely, stand as far from the roadway— and the crashed cars—as you possibly can.
  • Exchange only your insurance company name. Don’t discuss the details of your coverage with anyone at the accident scene, and don’t accept responsibility for anything.
  • Exchange vital information with the other driver(s) such as names, addresses, and phone numbers. These are all useful to your insurance company in settling the claim.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

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Hurricane Checklist That You May Find Useful

Posted on April 8, 2011 by John Gardner
This year is predicted to be “a big one” in terms of hurricane activity! Just to get you started on your preparations, here’s a quick checklist of supplies. This is the simplest way to prepare in advance. 

Your storm kit should always have the following! Get these ready early, and consider giving one of the personal supply kits to each employee. Be sure to use sealed, waterproof boxes. You should make two or three kits and send them home with different managers.

Extension cords
Small desk lamps and spare bulbs
Manual phones that require no power to operate
Duct tape
Water
Granola bars and snack foods
Wet wipes
Gas/Fuel for generators
Batteries (AA, AAA, C, and D’s)
Bug Spray
Flashlights
Candles and matches and lighters
Lanterns and oil
Sunscreen
Fix a Flat
Alternate supply source!
Fire extinguisher
Coolers for ice, etc.
Fans
Antibacterial cleaning wipes, and old towel or two
A list with everyone’s contact information, laminated, and a phone tree.

If the storm is bad enough that any of your employees are homeless or affected in a big way – you’ll need everyday personal supplies like:

Sundries (shampoo, cream rinse, soap, razor’s, toothpaste, toothbrushes, hair brushes, shaving cream, lotion, & deodorant, sunscreen, bug spray)
Personal feminine hygiene products
Handi-wipes; any kind of clean up cloths in packaging i.e. pamper or huggie wipes.
Hand sterilizer products
Due to the stress, you will need Mylanta, Pepto, Imodium, Alka Seltzer, Aspirin, Tylenol, etc.
Paper products (toilet paper, paper towels, paper plates, plastic glasses, plastic ware, tissues)

Food items that are useful:

Dinners in a can like stew, thick soups, chow mien – and a can opener!
Other canned goods
Crackers and breakfast type foods, breakfast bars for example
Water, soda, instant tea, coffee
Sweets like small pre-packaged cookies, twinkies, graham crackers, raisins etc.
Packaged chips, pretzels, nuts and snacks
Peanut butter and jelly

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

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What An Umbrella Policy Is, and Why You Might Need It

Posted on March 31, 2011 by John Gardner

Most Americans view auto insurance as necessary to protect against the costs of a car accident. Likewise, it’s common knowledge that homeowners insurance helps families rebuild their lives and homes. An “umbrella” policy is not as well known, but anyone who owns a home or any assets should consider buying it.

Umbrella liability insurance covers you in many situations if you are held responsible for bodily injury, property damage, or personal injury. The product got its name because it adds a higher level of protection above auto, homeowners and boat policies, which are “primary” policies. Umbrella coverage kicks in after primary insurance is exhausted. What’s more, an umbrella policy offers primary coverage for losses not covered by other insurance.

Typically, insurance agents sell an umbrella policy in conjunction with auto and homeowners coverage. You can usually add $1 million-plus of liability insurance for a few hundred dollars per year, and a multiple-policy discounts often can be had. One tactic insurance pros suggest: raise deductibles on auto and homeowners policies, and use the premium savings to pay for umbrella coverage.

What does primary insurance pay for? Liability insurance under auto and homeowners policies pays expenses (for example, an injured person’s medical care, rehabilitation and lost wages) because the policyholder was at fault through negligent actions. Liability coverage also pays for costs of defending against a claim or lawsuit. It’s common for a driver, vehicle owner, homeowner, or boat operator/owner to be held responsible for someone else’s injuries, property damage, lost wage and/or expenses. An at-fault driver also can be held liable for personal injury (which is distinct from bodily injury), including psychological injury such as “pain and suffering.”

What does umbrella coverage do? The umbrella is a shield to protect an individual from having to tap into savings or sell assets to pay a judgment or claim. The umbrella policy keeps the hands of the claimant from the personal, family and business assets of the negligent person. Intoxicated drivers leaving a party at your home, dog bites, and the neighbor kid falling off the trampoline– these incidents can cause financial losses. Even lending a friend a ski house or lake house for the weekend can create a claim. A tree in your yard that blows over in a storm and crushes the neighbor’s car is another example. A home-based business that requires visitors to come to your house may create a loss that’s excluded from homeowners coverage. But all these incidents may cause bodily injury, personal injury and loss of wages. These losses might exceed (or be excluded from) primary insurance limits and coverages.

Who should consider an umbrella policy? Most homeowners should consider an umbrella, but especially those active in community affairs. Serving in civic, charitable, and religious organizations can lead to conflicts, claims, and even lawsuits. Even if a lawsuit is thrown out of court, you still must defend yourself. Umbrella liability coverage picks up these costs, whether or  not a person is actually found to be liable. Defense costs generally are covered in addition to the liability limits of the umbrella policy. Conversely, a person might face a damaging situation such as a false arrest or imprisonment, defamation, invasion of privacy, wrongful entry, eviction or malicious prosecution. Most will want to defend themselves, but will face legal and other costs to do so. Homeowners coverage won’t cover it; umbrella coverage can.

We are a Trusted Choice® agent and can review your family’s coverage to ensure you are protected.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

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A Look At Boat Insurance Coverage

Posted on March 21, 2011 by John Gardner

Boat insurance is an important type of coverage, as boats can be quite expensive. You wouldn’t drive a car without insurance, and it’s a bad idea to drive a boat without appropriate coverage.

Many different types of boat insurance are available for different types of crafts. For instance, major insurance companies will often offer sailboat insurance, jet ski insurance, and even rowboat insurance. The major differences in these plans are often their cost; riskier craft come with a higher cost. Speed boats and jet skis often carry the highest boat insurance premiums. The number of individuals that can ride on your boat will also affect your premiums, and many other factors will also be at play, including the lake that the boat is stored on and your age. An insurance agent should be able to tell you about the common factors that go into boat insurance premiums, and this can be very useful information if you’re trying to get lower premiums.

Coverages can provide for repairs to a boat, personal injury coverage, and special add-ons for water towing or “roadside” assistance. Deciding on an appropriate amount of coverage can be difficult. It’s generally a good idea to opt for emergency add-ons and to buy personal injury protection (PIP) as well as liability coverages. Check your state’s laws to find out whether certain amounts of boat insurance are required, and again, check with your insurance agent. It may be a good idea to buy total loss coverage, which can cover the cost of your boat if it sinks or if it’s involved in a major accident. An agent should be able to explain this coverage and give you solid feedback on how much coverage that you need to buy.

Always shop around when buying boat insurance, and have as much information about your boat prepared as possible. This will make it easy to compare rates and find a great low cost policy with sufficient coverage. You’ll feel a lot safer when you’re on the water with the right boat insurance coverage–don’t wait to buy.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

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Host Liquor Liability and Your Homeowner’s Insurance

Posted on March 7, 2011 by John Gardner

If you are hosting a party that includes alcohol in your home, you may be subject to host liquor liability. You may be held financially responsible if you serve alcohol to a guest and that guest goes on to cause harm to a third party, such as in a drunk driving accident.

Although the best way to protect yourself from liability is to not serve alcohol, there are other ways to provide some protection for yourself. Laws in this area are often specific to serving guests who appear intoxicated so it is best to not to continue to serve anyone who is obviously drunk. Setting up designated drivers or alternative transportation plans in advance can also help. For larger events, consider hiring a professional bartender who is trained in determining when and how to stop serving alcohol.

Before an event that includes alcohol, check with your homeowner’s insurance agent to determine whether your policy includes coverage for host liquor liability. In some cases, coverage may be available with specific limits on the type of events and whether alcohol is for sale. In other cases, a special rider may be required to get coverage.

If you are throwing a party, you want your guests to enjoy themselves, but don’t forget to consider their safety too. By preventing drunk driving through responsible hosting, you are protecting both yourself and your guests from the consequences of an accident. Understanding your homeowner’s policy can also give you the peace of mind of avoiding personal liability in case your other safeguards are not enough.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

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Life insurance: Do you need it?

Posted on February 23, 2011 by John Gardner

The most frequently asked question about life insurance is: Do I need it? The answer depends greatly on your situation. So, let’s determine if you need it. Review these statements and check all that apply:

__I am married.

__I have children.

__Our family recently welcomed a new baby.

__I am single, but I have dependents (a child or an elderly relative) who I support.

__I am the sole breadwinner in my household.

__I recently changed jobs.

__My income has changed.

__I recently bought a house.

__I will pay for my children’s college education.

__I own a business.

__I am in debt.

__My family has a history of illness, such as diabetes or heart disease.

__I have trouble saving/investing money.

If you checked any of these statements, you need life insurance to protect the loved ones who rely on you for their financial support.

Imagine if you died unexpectedly. What would happen to your spouse, your children and other dependents? Would their standard of living or care slip significantly? Who would pay your children’s college tuition? Who would pay your mortgage and other debts? Would your business survive?

With life insurance, these concerns go away. If for no other reason, get life insurance for those most important to you—your family.

Life insurance tips

Now that you’ve determined that you need life protection, here are 10 suggestions to help you look for the best life policy for your family’s needs:

  1. Get the right amount. Remember that the amount of life insurance you need is directly related to the dependency of your family. An eight-year-old child is more dependent than a 20-year-old already is in college. Plus, knowing how much coverage you need prevents you from paying for unnecessary insurance.
  2. Start young. Get your life insurance while you’re young. Generally, premiums are cheaper for younger people because they are healthier than the rest of the population. Also, buying young will enable a cash-value policy to grow in value.
  3. Live healthy. Don’t smoke. Tobacco users pay more than twice the premium as non-smokers. Also, don’t cheat because benefits can be denied if someone who claims to be a non-smoker dies of a smoking-related illness. Also, you can improve your insurability and get a better rate by routinely visiting your doctor and improving medical conditions, like high blood pressure.
  4. Know what life policy you need. Learn the difference between term life and whole life policies, as well as that of a cash-value policy versus an annuity. There are products that serve several purposes and those that serve a single purpose. Know what your needs are first. Then you’ll know which coverage you should purchase.
  5. Dual incomes? If you and your spouse are breadwinners, get life insurance for both of you. That way, if either of you passes away, the family’s standard of living will not suffer.
  6. Prepay the premium. Ask the insurance company if you can pay your premium in advance, instead of monthly. This approach will save money on administrative or handling fees. Not all companies do this, but it never hurts to check.
  7. Want to save money, too? Some life insurance products—known as “cash-value policies”—are both a savings tool and a death benefit. These polices are ideal if you cannot save money. The cash value accumulates and can be borrowed or used for other purposes.
  8. Buy ‘bulk.’ Some insurance companies charge less for buying more. For example, it may be cheaper to purchase a $250,000 policy rather than the $230,000 you need.
  9. Don’t rely on employer-provided coverage. Many group plans limit the amount of coverage offered, which may not be enough for your needs. Additionally, you likely cannot take the life insurance with you if leave your job.
  10. Keep your coverage current. Major life events will impact the amount of coverage you need. Many events—such as having a child, getting married or buying a big house—will increase the amount of coverage you need. Others—such as children leaving the roost—may decrease the coverage you need.

Losing you would be painful enough for your family. The right life insurance can at least alleviate concerns about the financial implications of your death.

We are a local Trusted Choice® agency that represents multiple insurance companies, so we offer you a variety of personal and business coverage choices that can customized to meet your specialized needs.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

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Who Wants to Be You? Identity Theft a Common Risk for Consumers

Posted on February 15, 2011 by John Gardner

Nine million! That’s how many Americans have their identities stolen each year, estimates the
Federal Trade Commission.

From January 2005 until October 2007, a staggering 215 million personal records were breached,

reported the Privacy Rights Clearinghouse. The FTC noted that, in half of the criminal incidents

in 2005, thieves obtained goods or services worth $500 or less. In 10 percent of cases, thieves stole at least $6,000.

ID theft has only been a crime since 1998, when Congress passed the Identity Theft and Assumption Deterrence Act, but it’s escalated as a problem. Not only do criminals use identity theft to steal assets, they also commit crimes in the name and character of the victim.

The FTC urges a “deter-detect-defend” approach to battle ID theft, which costs consumers and businesses plenty of money and time. Deterring means safeguarding personal data to make it harder to steal and misuse. Detecting means monitoring and becoming aware of irregularities that indicate data has been stolen. Defending means reporting the crime and then taking steps to regain data security, recover stolen assets and fix misused information.

Identity theft criminals commonly use six methods to steal consumer and business information:

1. “Dumpster diving” for papers with personal information

2. “Skimming”—stealing credit/debit card numbers when a card is processed

3. “Phishing”—pretending to be a financial institution or company and sending spam e-mail messages to get people to reveal personal information

4. Changing an address by completing a change of address form to divert bills to a criminal’s location

5. Stealing wallets, mail, checks, employer personnel records and other paperwork—through

breaking-and-entering physically or electronically or bribing employees who have access to information

6. “Pretexting”—using false pretenses or tricks of social engineering to obtain personal information from consumers, financial institutions, telephone companies and other sources.

Identity theft robs a victim of time that must be urgently spent to alert police, credit bureaus, financial institutions, medical providers and others. A victim has to prove an identity loss or financial loss; close accounts; write letters to government entities; and even work with a legal advocate to recover and rebuild a stolen identity.

Likewise, the costs for legal fees can quickly add up and overwhelm a stressed victim. The loss of work time also can be costly, at the very time when financial resources are under attack by a criminal.

Personal and business insurance can play a key role in the “defend” stage of the identity theft battle. Insurers offer services to help consumers and businesses report identity theft and recover from it. Sometimes these services are included as part of a homeowners insurance package or even a business insurance package; the cost may be included or additional.

An identity recovery package may include reimbursement of legal fees related to identity theft, as well as costs of credit reports and postage, phone, shipping fees, lost wages and child/elder care for those forced to spend time away from family to resolve the situation. The ID package also might include a limited benefit for mental health counseling for crime victims. The first step in checking on whether you’re covered for identity theft?

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

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What Does Umbrella Insurance Cover?

Posted on February 4, 2011 by sapuser

Perhaps, you have been repairing your outside deck and patio due to the wood becoming old and rotten. You mean to finish this job quickly, but it drags on. One day, you invite a friend over. He wanders onto your deck and falls through it. He badly injures himself and sues you for over one million dollars. You may be wondering what kind of insurance you should buy to protect against situations such as these. The answer is umbrella liability insurance.

It is for extreme situations such as these that umbrella insurance is purchased. Umbrella insurance, however, is not really something designed to be purchased alone. It is designed as more of a way to fill in gaps in existing forms of insurance coverage that an individual may have. You may need Umbrella insurance, for example, if your car insurance can only pay out a certain amount in certain situations. Another situation may present itself when your home insurance can only pay out at a certain rate.

Umbrella insurance acts as a kind of backup insurance to come into play when other forms of coverage a person owns have become exhausted. For example, a person may be sued for $1,200,000. That person may have car insurance that can only pay out $400,000 and home owners insurance that can pay out $250,000. If this person does not have umbrella insurance, that person may end up losing almost all of her possessions. However, with one million dollars worth of umbrella insurance, the amount of coverage may be more appropriate to cover the actual loss amount.

Umbrella insurance doesn’t only fill in the gap for these kinds of policies. It can also be used in many other situations in which a person may be sued for damages. The reason it is called umbrella insurance is because the kind of coverage it provides is very broad. This is why umbrella insurance is extremely popular with businesses that are at risk of being sued in a multitude of different scenarios.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

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How to protect your business commercial auto risks in three easy steps

Posted on January 26, 2011 by John Gardner

Your business is only as safe as the tools you use. One of the best tools your business can use to protect your assets is a commercial auto insurance policy.

Understanding insurance can be tricky. That is why you should consult an independent insurance agent since one of the first steps toward making informed decisions is to understand your coverage and service options. Here are some easy steps to help you figure out your commercial auto insurance risks and needs:

1. Make sure you choose an insurer with the right combination of price and service options to suite your needs. Insurance isn’t just about price. It’s about the service, too. How are claims handled? How fast are they settled? How long will it take to get your vehicle back on the road? Do you have access to someone to assist you outside of business hours or online, and do they know the answers to your questions?

2. Research all of your policy options. Having the correct coverage is important. Most standard commercial auto policy generally includes coverage for the following:

•Injuries or damage that you create or cause.
•Your driver’s injuries.
•Injuries and damages caused by uninsured or underinsured drivers.
•Damage to, or theft of, your vehicle(s).

When it comes to the damage that you may cause, you may be required by your carrier to purchase certain limits based on who you work for. For instance, if you work for a certain company, you may be required to carry $2 million in liability limits. You will need to consider how much you are willing to pay out of pocket if your liability in an accident is more than your policy limits.

3. Know how your policy is underwritten and priced. You most certainly can control your insurance costs. To get the best rates, run MVRs (motor vehicle reports) on your potential drivers. If you let your insurance lapse (expire), you’ll probably pay more for your next policy. Ask about discounts, including paid-in-full and renewal discounts.

Just like your customers rely on your professional skills, call an independent insurance agent who will be your trusted advisor who will research your options and recommend the best options for your business!

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

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