Do I buy a Personal or Commercial Auto policy?

July 28th, 2010

Everyone agrees that selecting the appropriate tool for a job is the difference between success and failure in any profession. So why should it be any different when managing the risk associated with your commercial insurance policies. While price should always be considered, having the appropriate coverage (tools) can also mean the difference between staying in business or folding up shop because you are under or not even insured. Having the proper coverage for you, your business, and your employees could give you the needed protection in the unfortunate event that one of your vehicles is involved in an accident.

So, if you own a business and you or your employees use a vehicle for any business-related activities, you may need a commercial auto insurance policy that’s tailored to more closely suit the needs of your business instead of just a personal auto policy. Sit with an independent insurance agent to determine your exposures and solutions.

Asking yourself the four questions below will help you determine if you might need a commercial auto policy instead of a personal auto policy:

1) Do you need higher liability limits than your personal auto policy (PAP) provides? Most of the time, commercial auto policies provide significant higher limits of liability, but may be lacking in areas that are not associated with commercial auto risks.

2) Do you need any special coverages while conducting business? Commercial auto policies usually offer additional coverages not found in the PAP—such as hired and non-owned auto or coverage for towing a trailer that is used for business

3) Do you need to list any employees as drivers? This is a big difference, and this is easily done with a commercial auto insurance policy.

4) Do you use your vehicle for business purposes? If you use your vehicle in the course of doing business, you might need a commercial auto policy.

Making good and informed decisions about your insurance needs will help you manage all of your risks, and allow you to sleep better at night. Make sure you consult an independent insurance agent before engaging in a new business or taking on new roles as a business. They represent multiple carriers and can help you find the right commercial policies that will fit not only your business, but your budget as well

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What is MedPay coverage on my auto policy?

July 19th, 2010
What are Medical Payments

Medical Payments, typically called MedPay coverage, could be a part of your personal auto policy.

It pays for the cost of necessary medical care you receive as a result of an auto accident, and can be used regardless of what party is at fault. MedPay often is limited to the medical treatment you receive within the first three years after a covered accident, and is limited to a specific dollar amount. In some states, MedPay only applies after all other medical insurance is exhausted. Call us to check what yours covers.

An Example

If you sustain $3,500 in injuries from an accident in which you ran into a building, and you do not have any health insurance whatsoever, in most cases this means you can use your MedPay coverage, up to the $1,000 limit you selected, for your injuries. As a result, you will be responsible for the other $2,500 in medical bills.

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This Summer, Get In the Water—and Get Out, Safely

July 11th, 2010

A cool swim on a hot day is an American tradition. As temperatures rise, most folks want to get into the water—whether at the ocean, lake or pool.

The combination of high fuel prices and an economic slowdown may keep Americans at or near home more than usual this summer. But water safety is a concern wherever you—and especially your children—venture this summer.

Pools present dangers, particularly for young kids. Each year, some 3,500 deaths—about 10 per day—are cause by drowning, according to The Centers for Disease Control and Prevention (CDC). And another 4,000 people are treated at hospital emergency visits total for injuries and trauma related to pool accidents.

 The Consumer Product Safety Commission (CPSC) notes that drowning is the second-leading cause of injury death for children ages one to 14. Each year, 283 children under age five die in America’s pools and spas, a statistic that has worsened since the turn of the century. Most deaths and injuries related to pools occur on residential properties. Most involve children ages one to two, according to the commission.

Here are the problems that lead to children drowning in pools:

Unprotected pools. Pools must be treated as attractive nuisances, meaning children will want to get to them to play. One risk: Pools with a three-sided fence where the home forms the fourth side of the barrier. That simply means children can gain access to the water through a door rather than over a fence. Other problems include frost heaving that opens a gap in a fence gate, and wooden fences that rot and break.

“Little children are fiendishly clever and they can get away,” pointed out Dr. Jonathan Midgett of the CPSC. “For those brief moments when children elude us, we need layers of protection around our pools. The more obstacles between your child and the pool, the better! Fences need to isolate the pool from the house; have well-maintained self-closing, self-latching gates; and [have] back-up layers of protection, like sensors and alarms.”

Faulty equipment. Suction outlets in pools and whirlpools are a hazard to catch hair and fingers. Anti-entrapment drain covers must be secured in place.

No rules for the pool. Parents may rely on a neighbor, friend or caregiver/babysitter when children are in a pool this summer. Children must be made to understand that, whoever the authority figure is, they must respect that person’s directions. Make safety rules for the pool clear before anyone sets foot inside the pool area.

Poor supervision. Doctors put it bluntly. “Never leave your children alone in or near the pool, even for a moment,” advises the American Academy of Pediatrics.

The doctors’ group adds a rule of “touch supervision” with children younger than five years. This means that the supervising adult is within an arm’s length of the child at all times.

Children can drown in a pool full of people. This happens when no one adult is designated to supervise the pool or if the supervisor isn’t paying proper attention. The CPSC recommends at least one adult taking responsible for watching children around the water. 

“This person should avoid distracting activities that can take their attention away,” explained Dr. Julie Gilchrist of the CDC. Distractions include: playing cards, reading, checking e-mail, and talking on the phone. In the time it takes to do these things, a child may quietly slip under water. “Drownings happen quickly and usually silently,” she added.

Anyone who owns or uses a pool should consider learning basic first aid and cardio-pulmonary resuscitation (CPR). “CPR can make a big difference by reducing the likelihood of brain damage in the few minutes it takes for 911 emergency responders to arrive,” Gilchrist, a medical epidemiologist, noted.

Swim lessons. Learning to swim is not just recreational, but a way to teach children how to save themselves, noted the CDC. Yet even strong swimmers must be supervised, no matter what age.Any homeowner who has a pool—whether in-ground, above ground, or inflatable/temporary— should have liability insurance coverage, including umbrella liability coverage. Contact us, your Trusted Choice® independent agent to review homeowners and liability insurance protection.

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The Special Risks of Hurricanes and Floods

July 2nd, 2010

Those who are dealing with the crises created by natural disaster need more than news coverage—they need insurance coverage. There are significant risks presented by natural disasters, which not only threaten homes and businesses but also endanger the health and lives of people in their paths. 

Nowhere is the value of insurance more apparent than with natural disasters. But consumers must make decisions on important issues in order to insure their homes and possessions from the financial risk of hurricanes and floods:

Hurricane deductibles. June through November is hurricane season in the United States. Many remember the disastrous 2005 hurricane season in the south, when insurance companies paid an estimated $41 billon for 1.7 million claims for damage to homes, businesses and vehicles in six states from Hurricane Katrina, according to the Insurance Information Institute. The Katrina disaster, combined with Hurricanes Rita, Wilma and Dennis, led to more than $57 billion of insured losses and 3.3 million insurance claims.

In recent years, insurance carriers have begun requiring homeowners to have a “hurricane deductible” where permitted by state insurance law. Designed to help insurers manage the significant financial risk they carry when paying thousands of claims in one geographic area, hurricane deductibles apply to damage solely from hurricanes.

Hurricane deductibles range from one to 5% of a home’s insured value. Coastal areas may be higher. The deductible is “triggered” based on the circumstances stated in the homeowners insurance policy language. For example, a 2% hurricane deductible for a home valued at $200,000 means that the homeowner would pay the first $4000 (2% x $200,000) of damage from a hurricane.

Like most insurance coverage, premiums are higher with a lower deductible. Policyholders may have the option of a traditional dollar deductible (such as $500 or $1000) in some states, although that’s not typically offered in higher-risk coastal areas.

Flood insurance. Flood damage is specifically excluded by homeowners and renters insurance policies. Flood insurance coverage, though, is available through independent insurance agents as a separate policy from the National Flood Insurance Program (NFIP), a federal insurance mechanism. In the 1960s, taxpayers often had to “bail out” flood victims, and Congress created the NFIP to make flood insurance available in communities that adopted floodplain management laws to reduce flood damage.

Today, NFIP insurance covers up to $250,000 for the structure of a residential property and $100,000 for contents. Premiums start at $348 for that coverage for a residential property and its  contents. Some insurance carriers offer additional flood insurance (called “excess coverage”) above the basic policy limits or for people whose communities do not participate in the NFIP.

In 2008, a survey by the Insurance Information Institute found that 17% of Americans have a flood insurance policy. The national flood program reported that the average flood claim amounts to $33,000.

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A Safe Workplace is Smart for Business

June 23rd, 2010

As a business owner, you have the responsibility in your work environment to provide a healthy environment for the safety and welfare of your employees as well as visitors. To make your work place safer, below are some tips that will focus on key common areas of risk.

Put Your People First

You personnel are by far your company’s number one asset and keeping them safe and healthy is not only good for your business, it can minimize your workers compensation exposure. To do that:

  • Offer them prevention and wellness activities such as dance instruction, boot camps, or even an outdoor event such as volley ball.
  • Have immediate access in place so your injured employees can receive immediate treatment.
  • Have a team that is always searching for and eliminating workplace hazards.
  • Offer your employees early intervention and rehabilitation programs for drug and alcohol abuse.
  • Provide them some free medical services such as free flu shots or some health screenings.

Provide a Safe Environment

Heavy equipment, electrical hazards, unsafe building environment, and even desk chairs can potentially pose health threats to your employees or even visitors. You may want to look at some of the following solutions to keep your environment safe.

  • Make sure you conduct routine maintenance on equipment.
  • Always make sure your employees are exercising proper ergonomic conditions.
  • Monitor your equipment for unsafe wear and tear, and replace or repair as necessary.
  • Help your employees by educating them on hazards and risks.
  • Always make sure employees utilize all protective gear when operating any equipment.
  • Create, test, and monitor a disaster plan.
  • Control and eliminate any toxic chemical use where you can…green is in!
  • Make your workplace smoke-free. This can save you on health care costs.

Lead by example

Workplace safety starts within the company’s leadership. In order to establish and communicate your company’s vision, mission, policies and trust you need to:

  • Make sure you keep all confidential medical information protected.  
  • Have meetings and offer educational programs to improve health and safety in the workplace.
  • Discover how to find and prevent accidents in the workplace.
  • Make sure you have zero-tolerance policies for workplace violence, and retribution.
  • Offering access to cost effective health care benefit programs is a great benefit.

If you have any employees, most states require you to have a workers compensation policy to insure coverage for those employees against a workplace injury. In most cases, the owners of a sole-proprietorship or a partner in a partnership are not considered employees and have the option whether to cover themselves or not, and can opt out or sign a form doing so.

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Insurance does not Cover Maintenance Issues

June 20th, 2010

The insurance you carry on your vehicle does not cover vehicle breakdown due to  equipment failure, and even your warrantee may have exclusions if you do not maintain your vehicle correctly,  so it is important that you take care of your vehicle…especially if you don’t want to be stranded somewhere. Below are the main things you should pay attention to, and you can look in your owner’s manual for other maintenance items and timelines, and some you could do yourself. Other things you may need to have a qualified mechanic with the expertise and equipment to do the job correctly for you.

Change the oil and oil filter regularly.

The owner’s manual for your car will specify exactly how often you should do this, but a good rule of thumb is to change them every 3,000 to 4,000 miles. If you change the oil and filter yourself, be sure to dispose of the used oil properly.

Check all the fluids.

This includes brake, power steering, transmission, transaxle, windshield washer and antifreeze fluids. Your owner’s manual will tell you how to check these. If you don’t feel comfortable doing this, have a mechanic do it.

Check the air pressure level in your tires at least once a month.

Your owner’s manual should specify the ideal air pressure for your particular tire. If not, check on the outside of the tire. It is always listed on the sidewall.

Make sure all your lights work.

Check you headlights, turn signals, brake lights and taillights.

Replace the windshield wiper blades periodically.

If your wiper blades are cracked or torn, or if they begin to streak, it’s time to replace them.

Inspect the engine belts.

They should not look dry or frayed. Some belts are easy to change, but some you may need a mechanic.

Check the air filter.

The filter should be clean, not clogged or damaged. This will also help with fuel economy.

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Three Questions Consumers Want Answered

June 8th, 2010

Insurance comes in a wide array of choices for a variety of consumer and business needs. Even the best-educated consumer who spends time researching insurance issues will come across a topic he or she doesn’t understand.

Let’s take a look at what consumers say when asked: “What’s one thing you don’t understand about insurance?” Here are three common questions that Trusted Choice® insurance agents and brokers hear: 

Q: Why do I need insurance?

Insurance is for the uncertainties of life. Accidents and catastrophes happen. What can’t be predicted is when they will occur, and whom they will affect. Most people understand they’ll get sick at some point in their lives, but they can’t predict the severity and extent of the illness nor the cost of the treatment.

Catastrophes strike: In 2005, there were 24 weather-related or other disasters causing a total of $61 billion of insured losses. Hurricane Katrina alone caused $41 billion in damage from 1.75 million insurance claims.

Even the safest drivers face the risk of an accident, and even the safest homes can catch fire. In 2006, about 5 percent of insured homes had a claim, according to the Insurance Services Office. About 94 percent of these homeowners insurance claims were for property damage, including theft.

Lawsuits are another uncertainty that businesses and homeowners face. They’re costly: In the 56-year period from 1950-2006, the costs of the tort lawsuit system in the U.S. increased an average of 9.2% each year, reported Tillinghast-Towers Perrin. While most lawsuits are settled before they reach the courtroom, Jury Verdict Research data show that the median plaintiff award in personal injury cases was $45,000 in 2005, compared with $32,000 in 2002. Insurance provides two benefits to those who are sued: It pays for the cost of defending the lawsuit and pays for any liability payments for which the insured is found responsible. 

Q: How do you define what insurance is … or does?

Insurance is simply a vehicle for transferring risk from one party to another. You need insurance if you have financial risk (and everyone does) and you want to reduce that risk. To do so, you pay someone else (e.g., the insurance company) to assume much of the risk for you, in return for a payment known as a “premium.”

Because American consumers hold a tremendous amount of wealth in property—ranging from homes and cars to collections of baseball cards and Christmas ornaments—they have a basic need to protect themselves from losing that value.

Insurance is designed to “make people whole” after their property or assets are damaged or stolen, or if they are responsible for harm caused to another party. An insurance policy is a contract under which an insurance company agrees to pay a certain amount of money to the policyholder if certain events happen (and their property is damaged or they cause harm to someone else or someone else’s property).

Q: Is life insurance an investment or purely insurance? 

A: Life insurance for centuries has been first and foremost insurance: it provides a death benefit to the family or business partners of an insured person.

Beginning about 30 years ago, the attractive returns in stock investments led insurance companies to bring investment elements into life insurance policies. For example, agents and companies offered consumers the choice of placing life insurance premiums into mutual funds, stocks, and bonds within the life insurance contract—known as “variable” life insurance. The term “variable” implies that the investment returns on these premiums vary with market performance.

With these types of life insurance policies, the insurance carrier takes the policyholder’s premium dollars and places them in the investment account(s) chosen by the policyholder. These types of life insurance policies are subject to state insurance regulation and federal and state securities regulations.

While investment-oriented life insurance has grown popular over the past generation, traditional life insurance (both permanent and term) continues to be purchased in large amounts. Americans purchased $3 trillion of new life insurance coverage in 2006, according to the American Council of Life Insurers.

If you’re not sure whether a life insurance policy includes investment elements, you can check the disclosure information on a life insurance application or policy, which must discuss whether securities are part of the life insurance contract.

What are your particular questions about insurance? Contact us. We are a Trusted Choice® insurance professional.

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Cell phone distraction affects and impedes driving for all but a few of us.

May 27th, 2010

 

A recent study out of the University of Utah found that there are very few, a whopping 2.5% of those studied, who can actually multitask by driving safely and talking on their cell phone. Most of the rest of us, 97.5%, could not stand up to the challenge of chatting on our cell phones and driving in a simulated test. It those 97.5% of people, about 20% percent longer to brake when they needed to, compared to how quickly they could brake without the distractions of their cell phone.

So when you are talking on your cell phone and driving, you might think you are one of the few, the proud, the 2.5%, and can do it safely, but there is a 97.5% chance you can’t. A lot of people don’t realize the damage that this can cause to not only property, but to individuals as well, and just because you may be insured, the consequences of cell phone or PDA (personal digital assistant) distractions could be a life changing event and not just damage to property…think about it!

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A Safe Workplace is Smart for Business

May 18th, 2010

As a business owner, you have the responsibility in your work environment to provide a healthy environment for the safety and welfare of your employees as well as visitors. To make your work place safer, below are some tips that will focus on key common areas of risk.

Put Your People First

You personnel are by far your company’s number one asset and keeping them safe and healthy is not only good for your business, it can minimize your workers compensation exposure. To do that:

  • Offer them prevention and wellness activities such as dance instruction, boot camps, or even an outdoor event such as volley ball.
  • Have immediate access in place so your injured employees can receive immediate treatment.
  • Have a team that is always searching for and eliminating workplace hazards.
  • Offer your employees early intervention and rehabilitation programs for drug and alcohol abuse.
  • Provide them some free medical services such as free flu shots or some health screenings.

Provide a Safe Environment

Heavy equipment, electrical hazards, unsafe building environment, and even desk chairs can potentially pose health threats to your employees or even visitors. You may want to look at some of the following solutions to keep your environment safe.

  • Make sure you conduct routine maintenance on equipment.
  • Always make sure your employees are exercising proper ergonomic conditions.
  • Monitor your equipment for unsafe wear and tear, and replace or repair as necessary.
  • Help your employees by educating them on hazards and risks.
  • Always make sure employees utilize all protective gear when operating any equipment.
  • Create, test, and monitor a disaster plan.
  • Control and eliminate any toxic chemical use where you can…green is in!
  • Make your workplace smoke-free. This can save you on health care costs.

Lead by example

Workplace safety starts within the company’s leadership. In order to establish and communicate your company’s vision, mission, policies and trust you need to:

  • Make sure you keep all confidential medical information protected.  
  • Have meetings and offer educational programs to improve health and safety in the workplace.
  • Discover how to find and prevent accidents in the workplace.
  • Make sure you have zero-tolerance policies for workplace violence, and retribution.
  • Offering access to cost effective health care benefit programs is a great benefit.

If you have any employees, most states require you to have a workers compensation policy to insure coverage for those employees against a workplace injury. In most cases, the owners of a sole-proprietorship or a partner in a partnership are not considered employees and have the option whether to cover themselves or not, and can opt out or sign a form doing so.

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Basic Understanding of Business Auto

May 12th, 2010

Many people don’t know that Business Auto Coverage (BAC) provides protection against a broad range of hazards arising out of “autos”. This is different than “mobile equipment” Which is generally defined as automotive equipment designed for use on public roads.

You will find in the BAC two types of coverage, Liability and Physical Damage. You can also get other coverages which are basic to business auto exposures, and added by an endorsement to the policy. Each state may have different kinds of coverage, but some may be Personal Injury Protection, Medical Payments or Uninsured Motorists.

LIABILITY COVERAGE.

Liability coverage protects those who are “insured” from legal liability for bodily injury,  property damage to others, or caused by auto accidents. Generally the insurer also agrees to defend insured against all liability claims for which coverage is afforded.

PHYSICAL DAMAGE COVERAGES.

Coverage for accidental damage to those designated as “covered autos,” in your policy without regard to fault, is available through Physical Damage coverage. Physical Damage is generally broken up into subsections

The first section, collision or overturn and the second section, causes other than collision or overturn, which may be either “all-risk”, (Comprehensive) or for named perils (Specified Causes of Loss).

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