Author: Steve G

Insurance blog, articles, and news written by Stephen Gebhardt, founder and CEO of Gebhardt Insurance Group an Insurance agency in Casa Grande, Arizona.

Surety Bond vs. Insurance: Which One Is Better?

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Surety Bond vs Insurance

As a service provider, having a financial failsafe is proactive risk management. If you find yourself in a position where you need to file a claim or compensate for damage to customer property, having the right policies in place can save large and small businesses alike thousands of dollars.

Among the most popular options are insurance policies and surety bonds. While the policies themselves both offer financial security, they are very different in how they work and who they protect. As such, some business owners elect to purchase one, the other, or both.

Are you unsure of which policy is right for your company? See our breakdown below to help your understanding.

Who Does the Policy Protect?

Surety bonds and insurance policies are designed to cover different individuals in the process of rendering a service. Insurance is a contract between the person or business being insured and the insurance company.

A surety bond is a contract between the business—otherwise referred to as the principal, the person requiring work or project owner —otherwise referred to as the client, and the bond company.

For instance, in public work projects, payment bonds guarantee that subcontractors are paid for their work if the contractor defaults.

Furthermore, while surety bonds are single format and are backed by a bond company, there are several different types of insurance services (such as business insurance, general liability insurance, workers compensation, and more).

To get a better understanding about which individuals are protected by which policy, let’s look at an example with a moving company:

While moving a client’s belongings, a mover drops a particularly heavy piece, damaging it badly.

In this case, insurance will protect the company from any injuries suffered by the worker, while a surety bond will cover the loss of the damaged furniture.

In short:

  • An insurance policy protects the policyholder from financial loss
  • A surety bond protects the person receiving services (obligee) from financial loss

How Premiums Differ

Another way insurance and surety bonds differ is in the way their premiums are paid.

When it comes to insurance, some degree of loss is expected. This is why everyone contributes an ongoing monthly premium.  Depending on your history, line of work, and other factors that determine your risk bracket, the rate of your monthly premium is adjusted over time. When damage arises, you can file a claim and receive a variable amount of coverage.

Sureties are designed to cover potential losses. As loss is not necessarily expected, surety premiums are only paid once per renewal period. Depending on the policy, this renewal period lasts anywhere from 1 to 3 years. If loss occurs, this allows the client to interact directly with the surety company to redeem compensation.

Percentage of Compensation

As mentioned briefly above, when you file a claim with an insurance company, there is no guarantee that your damages are fully covered. This is because insurance claims often go through insurance agency adjusters, attorneys, and several rounds of negotiation before a final coverage price is reached.

Sureties are fully funded from the beginning and can be used to make disbursements if damage occurs. However, unlike insurance where the business files the claim, it is up to the obligee to file against the surety.

This goes back to the original principal discussed: insurance protects the business, sureties protect the clients.

Arizona Insurance Experts

Surety bonds and insurance can either be used together or separately depending on your business needs. To make sure you have the best information on the best route for you, be sure to talk to a professional from Gebhardt.

At the Gebhardt Insurance Group, we offer a variety of coverage from a host of major insurance carriers with an experienced staff that can help you determine the coverage you need.

Give us a call at 520-836-3244 and make an appointment to get more information on state requirements, insurance providers, and bond premiums— all from an Arizona insurance expert.

3 Best Supplement Insurance for Medicare 2021

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Best Supplement Insurance for Medicare 2021

Health insurance is a central and important concern for most Americans, especially seniors since aging increases the likelihood of need for medical intervention. Because of this, programs have been developed to help keep seniors insured and give access to affordable care.

When it comes to Medicare, there are many plans available and each provides different levels and costs of coverage. In addition, the government also offers Medicare supplement plans to cover additional costs. Because of this, the process of picking the proper plan can sometimes create more questions than answers.

In this quick guide, we will explain and unpack some of the basics of Medicare and outline the best supplemental insurance options for those with additional needs.

What is Medicare?

Medicare is a government-subsidized insurance plan with certain eligibility restrictions. An individual is eligible for medicare if one or more of the following apply:

  • They are over the age of 65
  • They suffer from an end-stage renal disease
  • They suffer with disabilities

In the case of persons with disabilities, Medicare can potentially offer coverage to younger individuals. Coverage is withheld until after a 2-year waiting period has elapsed and the individual seeking coverage can produce 2 years’ worth of Social Security Disability Insurance (SSDI) checks.

Medicare Plans: Original vs. Advantage

Individual coverage needs and financial ability is often the guiding factor in choosing between the different medicare plans. There are two “types” of Medicare offered: Original Medicare and Medicare Advantage. Both types are federal programs, but each have different covered services and thus different monthly premium costs.

Keep in mind that monthly premiums and deductibles change on a yearly basis. While updated information can be found on cms.gov, premiums can vary based on income and some plans may require a high deductible.

Original Medicare is separated into the following three plans:

Part A: Hospital Coverage

This plan covers inpatient hospital stays, skilled nursing facilities, some forms of home health care, and hospice.

Part B: Medical Insurance

This plan covers outpatient care, certain doctor’s services, preventative care, and medical supplies

Part D: Prescription Drug Coverage

This plan covers prescription drug costs to any of the original medicare plans in addition to potential coverage on some Medicare Cost Plans, Private Fee-for-Service Plans, and Medical Savings Account Plans.

Please note that Part D is offered by Medicare approved private insurance companies. As such, exact prices and extent of coverage may vary between plans and individuals.

Medicare Advantage 

The skip from Part B to Part D is intentional– Part C is reserved for Medicare Advantage. As such, the Advantage plan includes everything in Parts A, B, and D.

Advantage functions as an insurance bundle offered by private insurance companies contracting through the federal Center for Medicare and Medicaid Services (CMS).

What is a Medigap Plan?

Even when an individual utilizes a Medicare health insurance plan, there are certain expenses such as copayments, coinsurance, and deductibles that the individual is required to pay out-of-pocket. Keeping track of these amounts can be burdensome and the expenses may add up. Therefore, to help with these out of pocket costs, an individual can apply for supplemental insurance, also known as Medigap. These supplemental plans may also include additional coverage such as dental care, vision care, and more.

Medicare Supplement plans are sold by private companies but each plan offered must follow federal and state guidelines. Insurance companies do not have to sell them but if supplement plans are offered, they must include standardized coverage.

It is important to note that all 50 states have standard coverage laws but Massachusetts, Minnesota, and Wisconsin are the only states that have their own state standards that differ from federal policies.

How Much Does Medigap Cost?

The cost of Medigap is difficult to broadly estimate because costs depend on the chosen plan, the company you choose, the state you live in, and your zip code.

Though companies must offer federal standardized coverage, rates may vary per insurance company based on age, gender, health condition, discounts, and more.

Remember: premiums paid for Medigap are fees paid in addition to Original Medicare premiums.

How to Purchase a Medigap Plan

If you have decided a Medigap plan is right for you, there are a few steps that need to be taken before purchasing a plan.

  1. Eligibility

You must ensure that you are eligible and currently enrolled in Original Medicare. Once this has been determined, you can begin the process of looking for individual insurance companies that offer a Medigap plan.

  1. Research

While the research process might take a little time, information about insurance plans can be found through internet searches, calling customer service phone numbers, or even contacting your state’s insurance assistance program. The government also provides a free to use Medicare provider lookup tool.

While close friends or family can also be a resource, it is important to take into consideration the potential differences in their health and living situation from your own. Choosing the right insurance supplement is ultimately about choosing what is right for you.

  1. Compare

Once you have begun the process of gathering information, you can begin the comparison. Important items to consider in your comparison are: monthly premium rates, the option for high-deductible plans, and whether or not you will receive aid with matters such as part b deductibles, part b coinsurance,or prescription drug plans. 

  1. Purchase

Finally, it is time to purchase the plan itself. This is completed by contacting your chosen insurance company and purchasing your coverage directly through them.

Best Supplement Insurance Plans for 2021

In 2021, there are currently 10 Standard Supplement Insurance Plans available. The best plans are those that balance coverage and cost. Unfortunately 2 of these plans, Plan C and Plan F, are no longer available to new enrollees, therefore if you have not yet purchased supplement insurance, you have 8 to choose from in 2021.

Plans that offer more comprehensive coverage will incur higher premiums and vice versa. These plans can range from $62-$784 per month in 2021.

Below we have outlined our Top 3 Recommended Choices for Supplement Insurance in 2021:

Best Comprehensive Plan: Plan G

Plan G has one of the higher monthly premiums of up to $473, but this plan includes all coverages except for the Medicare Part B Deductible. This means that you are responsible for paying the $203 deductible in 2021 before costs are covered, but after that all coinsurance, other deductibles, and excess charges are covered.

Best Cheaper Plan: Plan N

Plan N is very similar to Plan G except, in addition to not covering the Part B deductible,  it does not cover Part B excess charges. These charges can add up due to Part B covering routine care such as outpatient procedures and preventative care. If you are relatively healthy and do not foresee needing much additional care, this may be a good plan for you.

Best Cheapest Plan: Plan K

This plan is much cheaper than any other supplement insurance plan but that does come at a cost. This plan differs from all the other plans in that Medicare Part A coinsurance is covered at 100% but everything else is only covered at 50% or not at all. Therefore if you need outpatient procedures, blood, preventative care or skilled nursing, only 50% of these costs are reimbursed. This is a great plan if you only need assistance with coverage to offset costs, not to cover costs.

Special Considerations

Like the Medicare Advantage Plan, Medigap is purchased from private insurance companies. However, it is illegal for an insurer to sell you a Medigap plan if you already own Medicare Advantage. Medigap is only offered to those on the Original Medicare plan.

In addition, Medigap policies are specific to the individual. This means that if both you and a spouse would like the additional coverage, you will both need to purchase separate policies.

Furthermore, even with the addition of medigap, there are still some fees that might go uncovered. Unless otherwise specified, these generally include costs for vision and dental, prescription glasses, hearing aids, long term care, and private-duty nursing.

Another factor to consider when selecting your Medicare and Medigap coverage is based on doctors who accept medicare, most offices will accept the coverage but it is always a good idea to confirm before selecting a plan.

Selecting Your Insurance

Making sure your healthcare needs are met is an important necessity that should not be rushed but should also not be put off for later.

Choosing the right policy is not only a matter of knowing what you need today, but knowing what you may need in the future. This, in addition to the difficulty often involved in changing Medigap policies once one has been instated, is the main reason to choose a plan you can grow into as you age.

There are many factors to consider when making the right choice for yourself and we know it can seem overwhelming, but you do not have to do it alone. Our insurance agents are well educated on the major insurance companies plans when it comes to Medigap insurance, these companies include Blue Cross Blue Shield, AARP, Humana and more.

The Gebhardt Insurance Group offers years of experience in understanding the country’s most respected insurance providers to help individuals find the coverage they need when it comes to Medicare insurance, auto insurance, life insurance and more. Call us to discuss your options at (502) 836-3244.

Why Do I Need Renters Insurance?

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Do I Need Renters Insurance

If you do not own a home, you are off the hook for purchasing homeowners insurance but that does not mean that you do not need to buy any insurance at all. No matter what your lifestyle or status, your belongings should be insured by a rental policy.

If you live in a rental home, then the landlord insures the home itself. That is, the building and appliances that come with the rental. But if there is an incident where your own personal property is damaged, such as furniture or electronics, then you will pay out of pocket to cover the damages. Therefore tenants choose to purchase renters insurance to help cover losses and replacement costs.

What is Renters Insurance?

A standard renters insurance policy covers your property in the case of damage or theft. It can also cover medical expenses and personal liability if an injury occurs at your place of residence. Carrying renters insurance is an affordable way to ensure that your hard earned money is safe in times of uncertainty. The Insurance Information Institute quotes that the average annual premium for renters insurance is around $200 per year, or $17 per month.

Is Renter’s Insurance Required?

In many cases, landlords require renter insurance be carried by tenants. Your lease will signify this specification and you may be required to show proof of coverage. Rental coverage is not required by law but it is legal for a landlord to require coverage as part of a rental agreement.

What is Covered with Renter’s Insurance?

Personal Belongings

Personal Property coverage extends to all of your personal property. This can include living items such as furniture and clothing or electronics such as televisions and laptops. This coverage applies whether the belongings were inside your home, vehicle, or another location with your person, such as on vacation. Many choose to forgo this coverage because they don’t feel they have enough expensive items but the average 2 bedroom apartment is considered to have around $30,000 worth of property and even more for houses.

Personal Liability

Liability coverage is necessary to have in case of injury or incident on your property. Even if you do not tend to have visitors or high incident items such as trampolines, sudden accidents can happen due to slips or trips. This coverage not only covers medical expenses incurred but also covers fees brought on by a lawsuit. Common instances where renters liability coverage is used are in instances where a family pet bites a visitor or a visitor slips on a stairwell.

Loss of Use

In cases where your home may become uninhabitable for a season such as in the instance of fire, water, or smoke damage, renters insurance will not only replace damaged items but will also cover additional living expenses. This means that if you must live in a hotel or temporary rental while repairs are being made, renters insurance will typically cover rental and food costs of your temporary stay.

Coverage Add-Ons

There are instances where damage is not covered under an insurance policy such as with floods and earthquakes. With these instances it is important to purchase floaters or add-ons to your standard policy. These policies can also include specific expensive items such as jewelry, furs, collectors items such as baseball cards, and high price electronics.

It is important to note that many policies have limits on how much can be covered toward a specific type of item under a standard policy, such as: $2500 for electronics or $1500 for jewelry. Adding a high priced computer or an engagement ring as a personal article policy to your standing policy is a much more affordable option (dollars per month) than buying individual stand-alone policies for these items.

Where to Start

At Gebhardt Insurance Group, it is our goal to connect you with the insurance products and services that best suit you. In many cases, it is wise to bundle your renters insurance with your current carrier for auto or life insurance for a discount.

As Independent Insurance specialists, we can find you the best deal for all of your insurance needs. Call us today to begin the search for the best renters insurance policy for you!

How Much Home Insurance Do I Need?

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How Much Home Insurance Do I Need

Are you shopping for home insurance? Most homeowners understand the need for carrying home insurance and don’t debate its necessity. But many questions surround the topic, including:

  • What exactly is homeowners insurance? 
  • What is covered? 
  • Is it required? 
  • What amount of coverage should I carry? 
  • Does my current policy cover my needs?

Below we have answered and explained a few of these questions to help you understand home insurance and how much home insurance you need.

What is home insurance?

Home insurance is a type of property insurance that covers losses, damages, and repairs to a residence and personal property. Standard homeowners insurance will pay for the repair or replacement of your home in case of events like fire, tornado, hail, lightning, vandalism, explosion, even volcanic activity in certain areas.

What is covered under home insurance?

Rebuilding Structures

Homeowners insurance covers the costs of rebuilding a home structure in the event of damage or disaster. This dwelling protection includes damage to a main house and other attached structures such as a garage. Most policies also have the option of covering structures that are not connected, such as sheds, fences, guest houses, mother-in-law quarters, and others of the like.

This rebuild coverage includes every aspect of replacing the damaged home. Therefore, in addition to the structure and interior and exterior walls and finishes, utility systems are covered. These utilities include plumbing, electrical wiring, heating and cooling, etc.

Replacing Personal Belongings

More than just replacing the home itself, home insurance includes personal property coverage. In catastrophe or damage, the items inside your home will also be replaced, such as furniture, appliances, clothing, and other possessions. You will either be paid the actual cash value or the replacement cost of the property destroyed, depending on your policy.

The actual cash value is the amount you would receive if you sold the item today, less the depreciation of your property. Replacement cost coverage is the amount it would cost you to buy or acquire a new replacement, making it more expensive than actual cash value coverage.

Living Arrangements

If your home is damaged, and you need to seek shelter elsewhere while your house is being repaired, your home insurance policy will cover your additional living expenses. This is referred to as “loss of use” coverage in a home insurance policy.

Your policy will reimburse you for the cost of a hotel or rental stay, the cost of meals or groceries, and additional living expenses up to a certain amount. Typically, most insurance companies calculate this amount by paying 20% coverage for loss of use. For example, if your home insurance coverage is $100,000, your loss of use coverage is approximately $20,000.

Liability Protection

Further, a home insurance policy will give you personal liability insurance coverage. The typical amounts are between $100,000 to $300,000. This is enough to cover medical expenses from an injury sustained by any individual who was injured within your residence or property.

This coverage also extends to any legal costs you may incur in the case of lawsuits. This is an often overlooked aspect of a home insurance policy. Still, it is beneficial because being involved in a lawsuit can be very costly, and an insurance policy can ease the burden.

What is not covered under home insurance?

Damage from some specific natural disasters is not included in typical home insurance policies. For instance, damage caused by earthquakes requires a separate special policy. Those living in common earthquake zones should purchase this additional policy.

Flooding is also not covered by basic home insurance. If you live in a flood plain, you must purchase a separate flood insurance policy from the federal government’s National Flood Insurance Program.

Is home insurance required?

There aren’t any state or federal laws that require homeowners to purchase home insurance. If you seek a loan from a mortgage company, though, most will have a requirement that you carry adequate insurance coverage. Companies that do not require home insurance coverage typically have very high premiums to offset the risk.

How much home insurance coverage should I carry?

To quickly estimate the amount of insurance you need to carry: multiply the total square footage of your home by local square footage building costs. This will give you a basic estimate of the minimum cost you should carry.

This estimate does not give an accurate number of the total cost you should carry because it does not consider personal property, loss of use, or liability coverage.

It is important to note that most home insurance companies will only provide full coverage if the owner has purchased coverage equal to a certain percentage of the home’s total replacement value. This percentage is typically 80%.

For example, if the total replacement of your damaged home costs $200,000, the dwelling coverage limit of your policy must be at least $160,000 to receive full payment.

To avoid this issue, many insurance companies offer extended replacement cost or guaranteed replacement cost options where applicable. These options mean you will receive 20% extra of your insurance coverage limit. Or your entire cost of replacing the home will be covered even if the policy limit is surpassed.

Others with significant investments or holdings may also purchase an umbrella insurance policy to cover claims in excess of a home insurance policy. Of course, you will have to pay extra premium costs for these types of policies.

Additional Cost Considerations

Knowing the true value of your home ensures that you buy the correct amount of insurance. Do you have upgrades such as custom woodwork, stone fireplaces, additional garages, sheds, or other special features? Make sure to buy additional coverage if you want these items to be covered too.

The age of your home and where your home is located may affect the amount you will pay for your insurance. If you happen to live in an area prone to severe weather, rates may be higher, or you may need to purchase additional policies.

Experts also suggest that you should know how quickly your selected insurance company will pay on your claims. Indeed, you would not want to wait for months before getting the amount needed to repair and replace lost property.

Does your policy have you covered?

For many people, owning a home is the most significant investment decision they will make in their lifetime. It can be a devastating and costly decision not to ensure that the home investment is adequately insured in case of disaster.

Recent studies reveal that a large portion of U.S. homeowners does not have sufficient insurance for their homes. This can be due to purchasing lower policies or perhaps not updating an old policy when the home value or changes are made. If you have a current policy, it is good to speak with an agent to ensure that you have the correct amount of coverage.

The peace of mind that home insurance coverage gives is worth every penny. If you are searching for a new policy or would like to update or replace your current policy, call us at the Gebhardt Insurance Group to speak with an insurance agent today.

Life Insurance for 50 and Over

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Life Insurance for 50 and Over

Turning 50 is a wonderful milestone and this time of life brings new adventures, challenges, and celebrations. You are now wiser, more respected, and still have much life to live without the stress of youthful inexperience. You are truly in your prime!

Part of taking advantage of this newfound freedom and aging gracefully includes making provisions for your belongings and loved ones in the event of your passing.

A recommended way to achieve this is by buying life insurance coverage. Now, you may have been told that having a life insurance plan is not available or necessary for people over 50. Perhaps your children are grown and have already attended college, your home and debts have been paid off, and you have a considerable amount of life savings. In that case, you may choose to opt-out of carrying life insurance.

But for those who still have young families, children in college, debts, or a spouse to care for after passing, life insurance is still necessary, even though you are over 50.

If you want peace of mind and reassurance of your loved ones’ financial stability once you are gone, a life insurance policy may be a viable option for you.  You have many options from which to choose your policy.

When shopping for life insurance quotes over the age of 50, there are several factors to consider:

Price

Naturally, aging means that you are getting closer to your life expectancy. Unfortunately, this means that insurers have less time to collect premium payments from you and an increased risk of paying out benefits as each year passes. Therefore, after turning 50, insurers pass this risk on to you in the form of higher premium payments, making life insurance more expensive.

Pricing increases do not only apply when purchasing new life insurance policies, though. They can also apply to existing policies. If you already have a life insurance policy, typical premiums will generally increase at age 50. Some policies may provide a guaranteed premium, while others have steadily increasing rates based on your age. All companies and policies are not the same, though. You can shop around to try and keep rates within a reasonable amount.

When turning 50, it is always advisable to look over your insurance policies. It may be an excellent opportunity to have an agent review your existing policy and compare it to a new policy’s pricing. You may find that it is more cost-efficient to switch policies depending on current rates and your health.

Aging Considerations

Most life insurance policies require a medical exam to be conducted at the time of purchase, no matter your age. But for people over 50, the likelihood of having a preexisting health condition is increased. Therefore it may be beneficial to take advantage of policies that waive this medical exam and offer guaranteed acceptance. In many cases, the premium payments for this type of coverage are higher. However, if you know that you have a disqualifying condition, you can ensure you still have excellent life insurance coverage for the benefit of your loved ones.

Policy Type

When looking at types of life insurance, you have many options. Below, we will focus on two categories of basic choices:

Term Insurance:

Term insurance is available for a designated amount of time. You can generally purchase term insurance for 10, 20, or 30 years. Once the term has passed, the policy expires. If you outlive your policy, you must then forfeit the premiums you have paid, buy a new term policy at a much higher rate, or purchase a different type of insurance. Some companies might offer the option of converting a policy before expiration.

The benefit of carrying term life insurance is that the policy is guaranteed to provide a death benefit if the insured person dies during the policy period. This is an excellent way to ensure that your family is cared for if you experience a tragic accident or sickness at an early age.

The hope is that you never need to benefit from term coverage since the only way to receive payment is through the insured’s death. Companies know that the risk of paying a death benefit is low for most. So to offset your costs, term insurance premiums are much less expensive than permanent insurance.

Permanent Insurance:

Permanent life insurance has several key differences from term life insurance and has many different variations available to purchase. The most notable difference is that permanent insurance lasts through your lifetime.

The two common types of permanent insurance are Whole Life coverage and Universal Life insurance. While similar in that they both have a guaranteed payout at the end of life and both have cash-value options, they differ in the amount that must be paid in premiums. Whole Life has a steady set amount that you must pay as long as you are living. In contrast, Universal Life has more flexibility in payment options. The interest of which is dependent on market conditions.

Because your insurance company will have to pay at the time of death, permanent life insurance premiums are much higher than term insurance. Permanent insurance may be a better option if you are looking for life insurance for a death benefit and a cash savings vehicle.

Your policy’s cash value can be taken out as a loan while you are living, but keep in mind that doing this may directly impact your death benefit amount, depending on your policy. You can utilize this type of policy to help pay for your children’s college or add to any other future cash need you see on the horizon. Permanent insurance can be used as a forced savings account to build financial strength for those who have trouble putting money aside and then used later when needed.

Permanent life insurance is an excellent option for those who need to guarantee financial stability for loved ones left behind. Many who have adult-dependent children or large estate tax payments often opt for permanent coverage.

Policy Benefits

Before purchasing life insurance, it is essential to assess your own needs to determine your policy’s benefits.

If you do not have dependents, debts, or savings accumulated elsewhere, you may not need coverage. Or you may opt to carry coverage that only covers funeral expenses.

Life insurance may be a good fit for you if you have minor children, anyone that is financially dependent on you, a mortgage to pay off, or limited savings.

If you are a business owner, you may need to protect your business and employees. Can your business financially sustain itself without you? If not, you may need a life insurance policy to protect your investment. This protection is an essential consideration for you as a sole business owner or for any partners necessary to the business.

Other situations not mentioned here may apply to you. Still, the overall consideration is that being over the age of 50 does not mean that life insurance is not available or necessary to you.

Your Insurance Needs

The options for life insurance coverage can seem overwhelming and difficult to understand or select. There are many factors to consider. It is exceedingly important to look at your entire financial picture and your goals before selecting a life insurance policy.

The first step is to identify your goals for a life insurance policy and then work with an experienced agent to find the right policy to achieve those goals.

  • How close are you to your retirement goals?  
  • Do you have people in your life that are financially dependent on you?  
  • Do you need assistance with saving for the future?  
  • How much can you realistically afford to pay in premiums?

These are all questions that you should consider and answer when selecting the policy that works for you.

At Gebhardt Insurance Group, we desire to connect you with the exact agent and policy that fits your needs. We are an independent insurance agency that represents many of the leading life insurance companies.

We are confident that we can provide answers to all of your life insurance questions. Our team is dedicated to ensuring that you find the right coverage for you and your family.

Contact our office today at (520) 836-3244 to begin your search for life insurance for 50 and over.

How Does Car Insurance Work?

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how does car insurance work

The purpose of car insurance is to provide economic compensation if something unexpected happens involving your vehicle. The insured party enters an agreement with an insurer that contains the terms. This includes details such as the policy coverage period, the maximum limits of coverage, and the cost (premium). As with most types of insurance, states develop their own set of rules and provide some oversight in the market.

“How do I make my car insurance affordable?” is one of the most frequently asked questions about auto insurance.  The key to understanding how to make insurance affordable is understanding how car insurance works.

Why Is Auto Insurance Important?

It’s a Requirement if Your Vehicle is Leased or Financed

If you are thinking about skipping insurance in the name of pinching pennies, think again. If you are leasing your vehicle or have a loan, your finance company will require you to have insurance. The lending company needs to ensure that your insurance will cover the cost of repairs or replacement if the vehicle is damaged.

Many lenders and finance companies require insurance in the amounts of 100/300/100. This means you have $100,000 bodily injury liability insurance per person, $300,000 total bodily injury liability insurance per accident, and $100,000 property damage liability per accident. You will usually have to have proof of the minimum required insurance before a lender will finance your vehicle.

It’s a Requirement by State Law

Finance companies aren’t the only ones that require car insurance. The government also legally requires you to insure your vehicle. This is determined at the state level. Each state has its own minimum requirements so if you move, make sure that your insurance meets your new home’s insurance minimums.

For Casa Grande residents, the state of Arizona requires minimum coverage of $15,000 bodily injury liability per person and $30,000 per accident. There is also a property damage minimum coverage of $10,000. When it comes to types of car insurance, the bare minimum can be dangerous.  

If you only carry the required state-level amounts, an accident can cost you much more in bills and expenses than your insurance will cover. Work with a skilled agent to make sure you have enough coverage at a price you can afford. There are many ways to bring down car insurance premiums without sacrificing the coverage you need. Having financial protection will give you peace of mind.

It Provides Assistance When Accidents Happen

More than 90% of car accidents are the result of human error. In recent years, we have recognized the dangers of distracted driving. The Centers for Disease Control and Prevention estimates that distractions cause nine accident fatalities each day in the U.S. The problem is mostly the result of drivers who are using mobile devices. Newer vehicles are also equipped with more sensors that create visual and audible distractions and onboard electronics.

The prices of newer vehicles continue to rise. Many people do not have the cash-on-hand to repair their car if it is significantly damaged in an accident. In fact, 40% of Americans would be unable to pay for an unexpected expense that exceeds $400 without borrowing.

Between 2015 and 2017, there were 7.4 insurance claims filed for every 100 people. Lenders require those who are financing a vehicle to maintain “full” insurance coverage.

Know Your Policy and State Requirements

You need to read your policy and understand your type of coverage. If you purchase a policy without understanding it, you may not realize your coverage gaps until it is too late. Liability, personal injury, and property damage insurance are all crucial facets of your policy. What you don’t know can hurt you and your wallet.

For instance, if you are in a car accident, your insurance policy may only cover your vehicle’s value. If your car is fairly new and the rate of depreciation is high, the car’s estimated value may be much lower than what you owe.

This means that the reimbursement from your insurance company might not be enough to pay off your damaged vehicle, much less help you get a new one. Your comprehensive coverage will only cover the damage to your car if caused by something other than accidents like theft or fire.

Gap insurance is designed specifically to help bridge the “gap” in circumstances like this. It can help you pay off the remainder of your vehicle so that you can start fresh. This is just one example of possible policy gaps and why you need to know what is and isn’t covered.

Those registering a vehicle in the state will need to have proof of liability insurance coverage. This covers other people and their property in an accident. Insurance companies in Arizona must notify the Motor Vehicle Department when a policy is canceled, not renewed, or a new policy is issued. Drivers must have proof of insurance with them in case they are stopped by law enforcement. They may show this proof using a smartphone.

Bodily Injury and Property Damage Liability

The state-mandated bodily injury coverage is used when a driver causes injuries to others. This coverage does not pay for injuries sustained by the party who is at fault in an accident. The property damage coverage insurance pays for damage caused to other vehicles, objects, etc. It is worth noting that the mandated minimum liability coverage also applies to motorcycles, mopeds, and personal golf carts.

Understand the Money Mechanics of Insurance

Understanding how car insurance works helps you make informed, affordable choices. Car insurance companies make their money by collecting more in premiums than they pay out in claims. Many factors go into your insurance rates.

Statistics: All insurance companies will compare your basic information to current statistics. If you are a male, 18-year-old driving a sports car, your insurance rates will most likely be much more expensive than a female in her 30’s driving a minivan. This is primarily because of statistics.

The numbers show that women and more experienced drivers are less likely to be in an accident. Similarly, a minivan driver is much less likely to be in an accident than a person behind the wheel of a Ferrari. While you may be a very responsible, law-abiding teenager with a new sports car, your insurance rates will initially reflect statistical averages and not your specific situation.

Driving record: Generally, the better your driving record, the better rate you can get. Additionally, as you become more experienced behind the wheel, you will be eligible for the best possible rates. Insurance companies prefer responsible drivers with few or no claims.

Suppose you have an accident or traffic violation such as a speeding ticket. In that case, your insurance company may automatically increase your rates. The best way to keep your rates down is to keep your record clean.

Affordable premiums: There are ways to make your premiums affordable. A good agent will review your policy with you and help you stay within your budget.

For instance, you can usually decrease your premium by increasing your deductible. This should be done strategically. While a lower monthly premium is tempting, you need to make sure you have a deductible you can afford.

You can also save money by bundling in one company. By using one company for multiple policies, you will usually be able to take advantage of deep discounts, giving you lower overall premiums. Also, don’t be shy about shopping around. There is lots of competition in the insurance industry, which is good for the consumer.

Penalties for Failing to Maintain Coverage

Those operating without the mandated insurance that the state requires will face a driver’s license and registration suspension, in addition to fines. To restore driving privileges, the motorist must obtain an SR-22 Certificate of Insurance, and they must maintain it for three years. Those who do not reinstate their Arizona license from failing to have insurance will be unable to obtain a driver’s license in another state.

Other Types of Auto Insurance Coverage

  • Uninsured and underinsured motorist: Uninsured motorist coverage is used if you are involved in an accident caused by an uninsured driver. Underinsured coverage applies when the driver responsible for the accident has insurance coverage limits that are insufficient to cover the full cost of damage.
  • Collision: This coverage is used to pay for car repairs or your vehicle’s replacement when involved in an accident. It is most commonly used when you are the at-fault driver in an accident. It also may apply if you were to strike a tree or other object while driving.
  • Comprehensive: This form of coverage is commonly referred to as “comp.” It is purchased in conjunction with collision coverage to obtain “full” coverage. It is used to repair or replace your vehicle stemming from an event other than a collision. 
    Common examples include theft, vandalism, or fire. Full coverage policies often contain a provision covering the cost of a rental car when necessary during repairs.
  • Medical Payments: This coverage is commonly referred to as “Med Pay” or Personal Injury Protection. This option will cover any medical bills for you and typically any passengers in your vehicle. Examples would include if you needed an expensive surgical procedure or rehabilitation. Those who lack health insurance coverage are among those most likely to purchase it for medical expenses.

Questions About How Car Insurance Works?

We’ve got answers! Knowing how car insurance works helps you get the coverage you need for a price you can afford. The Gebhardt Insurance Group is an independent insurance agency that represents many of the leading auto insurance companies.

Our customers benefit from our personalized approach. We will look closely at your individual circumstances to make sure you have proper coverage for you and your family. Contact our office today at (520) 836-3244.

The Factors That Determine Homeowners Insurance Cost

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Homeowners Insurance Cost

For some, home insurance can be a sore subject, especially if you have had a negative insurance experience in the past. However, insurance doesn’t have to be complicated. Understanding what determines insurance premiums can help you make more informed and confident decisions concerning insurance policies.

So, how much does home insurance cost? The average cost of homeowners insurance in Arizona is $132 per month or $1,589 annually. Your cost may look different depending on factors such as square footage, the cost of your home, risks on your property, how old your home is, your desired coverage, and more.

Depending on your insurance carrier, you may even be able to bundle your home and auto policies, which could lead to savings. So, what factors determine homeowners insurance rates?

Location of Your Home

If you live in a state that is prone to natural disasters, your location is bound to affect your homeowners insurance cost. This is especially true if you live near a body of water. Being close to lakes, oceans, and rivers, to name a few, puts your home at risk for flooding.

It’s important to note that flood damage is not covered by homeowners insurance. You will need a separate policy that covers flood damage to your property if you live on the coast or close to any body of water. Earthquake damage is also not covered on a standard homeowners policy.

One factor that may positively impact your home insurance rate is if your home is near a fire station. Another positive determinant is how close your home is to a fire hydrant.

Age, Condition, and Construction of Your Home

Unfortunately, older homes can cost more to repair or replace if they are damaged. The materials used in older homes can be more challenging to find if a replacement is needed and be more costly too. Sometimes, old houses even require specialists for repairs, which costs your insurance company more.

Consider the state of your home when shopping around for homeowners insurance. If insurance costs are a concern, aluminum wiring, a leaky roof, or old plumbing can cause steeper home insurance costs.

Property Risks

While you may dream of building a swimming pool in your backyard, if you’re unprepared to pay more for home insurance, your dream may feel more like a nuisance once it comes to life. Pools, hot tubs, trampolines, tree houses, and wood-burning stoves are all property risks that factor in when determining your final homeowners insurance rate.

If you add any of these onto your property over time, make sure you notify your insurer. Keeping your insurer up to date on these additions will allow you to rest assured that you are covered in the event of an accident.

Having safety precautions in place may mitigate some costs. Such precautions can include:

  • A net around your trampoline.
  • A fire extinguisher in your home.
  • A secure pool fence.

Dogs You Own

Many pet owners have special and loving bonds with their furry friends. However, dogs can impact your home insurance rate. Each year, around five million people report being bitten by a dog. 

Your dog may be on its best behavior for you, but there is still a risk. While home insurance covers dog bites, it may impact your rate.

If you have a canine friend at home, insurers will look at your dog’s history. This history can include aggression and if they have bitten you or others before. They will also look at their breed. Some aggressive breeds such as Rottweilers, pit bulls, german shepherds, chow chows, great danes, and siberian huskies are considered more of a risk than others.

Businesses Based Out of Your Home

Some business owners choose to make their home their place of business as well. For example, a hairstylist may decide to turn their garage into a salon studio. If you have a home-based business, inform your insurer so they can help you take steps to protect your equipment, your investment, and even yourself. You may need additional personal property coverage or even business insurance.

Your Credit Score

The dreaded credit score – it will never stop following you around. Thankfully, insurance companies have their own formulas to determine your insurance credit score. However, if you have a low credit score, it is still likely to factor into your final rates.

Your current debt, types of credit you have, your debt payment history, if you have filed for bankruptcy, and more all factor into this formula. If you have a concern about your insurance credit score, talk to one of our agents today.

Your Claims History

Just like your credit score, your claims history follows you around as well. Insurance is there for a reason and is meant to be used if needed! However, if you have made insurance claims before, you are more likely to make claims again in the future, and insurers view that as a risk.

Homeowner’s Marital Status

Usually, married couples file fewer claims than single people. Insurers tend to view married couples as more responsible and less likely to take risks. In the case of homeowners insurance coverages, your relationship status may have an impact.

The Deductible 

One way to save money on your homeowners insurance monthly is to choose a rate with a higher deductible. This option may result in a cheaper monthly rate. However, if you need to file a claim and you can not afford your deductible, you will not be in a better spot in the long run.

Consider if you can realistically afford a higher deductible before choosing a policy with such. For some, a $1,000 deductible may be attainable, but this may be a significant burden for others.

The Coverage Amount

Some people like to have as much coverage as possible in order to be “fully prepared”. But keep in mind that the more coverage you want, the higher the cost will be. You may be able to increase your maximums if you feel that a standard policy’s maximums are too low to cover:

  • Your belongings. 
  • The repair of your home in the event of an accident.
  • A place to stay while your home is repaired. 
  • A lawsuit due to an incident that occurred on your property,  

Keep in mind that this will cost more than a standard policy. However, if it gives you peace of mind and confidence that you are prepared for the worst, increasing your coverage may be a great option.

Why Choose Gebhardt Insurance Agency?

The best part about utilizing an independent insurance agency like ours is that we can shop around many homeowners insurance companies for a policy that best suits your unique needs and price point. Even better, we can shop for car insurance with multiple carriers and may even find you a home and auto bundle that saves you money.

There’s no better homeowners insurance calculator than our agents at Gebhardt. Not only will we do the legwork for you, but we can accurately consider discounts for which you may be eligible. This level of accuracy is something that many online calculators cannot provide. For more information on our home insurance products and services, contact our agents today and get a free quote!

Car Insurance Discounts to Ask About

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Car Insurance Discounts

The primary thing that’s on the mind of every person shopping for auto insurance is what type of rate they can get. For many, car insurance costs can be cut through the application of one or more discounts. Luckily, many insurance carriers offer discounts because car insurance is legally mandated, and companies want to remain competitive in the insurance industry. This leaves drivers with multiple options for insurance companies and types of discounts for which they can apply.

While auto insurance premiums should be a consideration when choosing a policy, make sure you consider each policy’s coverage. By only having the legally required amount of coverage, you may expose yourself to financial trouble if you cause a terrible accident.

Tips for Examining Auto Insurance Discounts

Before getting into the different types of discounts available to drivers, it’s important to note some possible stipulations attached to each one. Here are things to consider and speak to your insurance provider about when researching car insurance discounts:

Maximum Amounts May Apply:

Pay attention to language like “up to _% off,” as there may be specific requirements to qualify for the highest discount offered. However, you may still receive a portion of the discount, so it is essential to ask before banking on it.

You may also notice that you could qualify for several of the discounts we will discuss below. But, many insurance companies have a maximum value you may receive overall.

Discounts May Vary:

The type of discounts offered can vary from company to company, as well as from state to state. Some state laws mandate specific discounts, while others do not.

Pay Attention to How Discounts are Applied:

You may need to ask for your discounts to be applied, as some are not automatic. Also, some discounts may apply to your insurance bill overall, while some may only apply to specific aspects of your coverage. Be sure to ask for clarification on how your discounts are applied.

Types of Auto Insurance Discounts

Cutting car insurance costs is possible with auto discounts. The first step is assessing your current policy to understand your current coverage and car insurance premium.

Next, check out the following auto insurance discounts and consider the values for which you may qualify. For more information, contact our agents today. They can assess your needs and check for possible deals.

Good student discount: 

It pays to be a good student. Aside from maintaining good grades (at least a B average,) you must supply your insurer with your grades and be a full-time student to qualify.

Accident-free driver discount:

A clean driving record can help you save significantly. Drivers that have not been in accidents typically have lower premiums and may be eligible for accident-free driver discounts. Some carriers will automatically apply this discount after a certain amount of time has passed where you are accident-free, giving you further incentive to drive safely!

Low-mileage discount: 

You’re less likely to be in an accident if you don’t often drive, as this decreases your chances for a collision. Low-mileage drivers often are rewarded for this with insurance discounts.

Affiliation discount: 

Teachers, firefighters, police officers, college alumni, and military members may qualify for specific discounts due to their affiliations. Some employer-specific deals exist as well. Ask one of our agents for more information and to see if you are eligible.

Defensive driving discount: 

A driver that takes a certified defensive driving course will typically receive a 10-15% discount on their car insurance. Not only will the course prepare you to be a better driver and keep you safe from harm, but it will also save you money in the long run. Check with your insurance company before signing up for a class and see if there are any classes they specifically require to receive the discount.

Bundling discount: 

Some car insurance companies offer bundle discounts if you have multiple cars insured with them. For homeowners, you may be able to bundle your home and car insurance with the same company for a discount as well. Some carriers will even allow you to bundle your policy with life insurance too.

Anti-theft devices discount:

Stolen vehicles can be difficult to recover. Safety features such as GPS systems, car alarms, VIN etching, and trackers can help recover stolen vehicles. Insurance companies reward the installation of these features through discounts, anywhere from 5-25% off.

Car Safety discount: 

Depending on your carrier, you may qualify for a discount if you have anti-lock brakes, daytime running lights, or extra airbags in your vehicle. If your car has any added safety features, notify your insurer to see if you qualify for a discount.

Eco discounts: 

Electric vehicles have proven to be less likely to be involved in accidents. Owning a hybrid or electric vehicle can save you up to 10% on your car insurance, providing further incentive to go green!

Safe driver discount: 

Your driving habits can directly impact the amount of money you will save on your car insurance. Drivers who find themselves being pulled over and ticketed frequently will not qualify for this discount. The more claims you file and the more tickets you receive, the more your car insurance rate will increase.

Paid-in-full discount: 

If you choose to pay your auto insurance premium in full and up-front, many carriers are happy to give you a discount. The discounted premium option will often be listed on the bill you receive, showing you how much you could save if you pay in full instead of paying in installments throughout the year.

Paperless billing discount: 

While paperless billing discounts are usually smaller in size, they still may help you cut costs. Helping your carrier save money on paper and printing is excellent for not only the environment but for your wallet as well.

New car discount: 

Newer cars generally have the most up-to-date safety features installed, resulting in new car discounts. Sometimes, you can save 10-15% on your insurance premium if your car is less than three years old.

College student discount: 

Young drivers, often college students, may leave their vehicles at home when they go to college, significantly reducing the risk of a car insurance claim. Policies with this discount applied may see reductions of up to 25%.

Customer loyalty discount: 

Customer retention is vital for any business, and the insurance industry is not exempt. Many carriers offer customer loyalty discounts when you renew your policy.

Credit stability discount: 

Insurers like to see stability with your credit score. A credit score is often important when purchasing a house or a car or trying to qualify for a loan, but your credit score may also benefit your car insurance rates. Studies show that people with lower credit scores tend to have a higher rate of claims.

Senior discount: 

Some carriers offer a discount specifically for seniors. If you’re a senior citizen, contact our agency for more information.

How Independent Insurance Agents Can Help

Shopping for car insurance can feel like a hassle, especially if cutting costs is at the forefront of your mind. Independent insurance agencies can find you the best insurance coverage at the lowest prices because they can compare policies from multiple carriers. Where you may not qualify for a discount with one carrier, you may be eligible with another.

Our agents can find a car insurance policy that fits your needs and is priced competitively. Discounts vary depending on your carrier. We may even be able to offer you a deal for which you didn’t know you qualified! Give us a call for a free car insurance quote and learn more about lowering your insurance premium.

Small Business Insurance Cost and Options

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Small Business Insurance Cost

Arizona small businesses need to protect themselves, not only to keep their doors open but for the state’s economy as well. There are 592,485 documented small businesses in Arizona. Without the proper insurance coverage, any number of these companies could go under in a flash.

Lawsuits over faulty products, bodily injury, and service discrepancies are common occurrences. Without general liability insurance, you can expect to pay out of pocket costs. The question you should ask yourself is, could your business survive?

Accidents happen and sometimes, at the worst possible time. As a small business owner, protecting your company also means protecting yourself and your investment. However, small business insurance costs are one of the primary concerns among business owners. Here’s what you should know when considering a policy from an insurance company to protect your business.

Types Of Business Insurance

When deciding which insurance coverages you need, it’s essential to understand the different types of commercial insurance policies available and what they cover. The following are some of the most common types of coverage available to businesses.

General Liability Insurance

Most companies choose to purchase general liability insurance because it acts as an umbrella, covering several types of claims, all of which can be extremely expensive. General liability insurance protects your business in the event of a bodily injury claim, property damage, and legal fees.

This type of coverage provides essential financial protection. If a customer slips and falls in your store, your insurance can cover their medical bills. It can also cover any costs incurred if they decide to sue you.

If your product or services hurt someone, you may be in for a legal battle. The biggest mistake you may make with this type of insurance is not purchasing enough.

Commercial Auto Insurance

If your business has any company-owned vehicles, commercial auto insurance is essential. The more vehicles owned by the company, the greater the risk you take by not having insurance. This type of insurance can protect you from accident liabilities. It’s smart not to take any chances, especially if your employees are in the driver’s seat.

Property Insurance

Just like homeowners insurance, commercial property insurance covers damage to your property due to vandalism, fire and storms. This coverage protects more than your building, but your equipment, computers, inventory, etc., as well. A fire that burns your warehouse to the ground with all of your stock inside could prevent your company from coming back from the incident if you’re uninsured.

Professional Liability Insurance

Also known as E&O (errors and omissions) insurance, this type of coverage protects you in the event you are sued for advice that hurts someone. Legal fees are covered with this type of liability coverage.

Workers Compensation Insurance

State laws usually require this type of coverage. Workers comp protects you and your employees. Suppose you have an employee that is injured on the job and suffers lost wages or medical bills.

In that case, workers’ compensation will cover their medical payments related to the incident. It will also pay their lost wages. Whether you, the employee, or another is at fault, this policy will provide financial protection.

Data Breach Coverage

If you have a business that handles personal or sensitive information, data breach coverage is essential. Data that is stolen, hacked, or lost can have negative implications for any company. It may even lead your clients not to trust you or utilize your services further. Having coverage in place can at least protect your business financially and from legal liability if there is a data breach.

Small Business Insurance Cost in AZ

The cost of small business insurance varies from company to company. Many factors may impact your annual premium. How much you spend may vary significantly from the other businesses around you.

The following are factors that influence the cost of commercial insurance. To receive a quick, personalized quote, contact our office.

  • The number of employees your company has
  • Equipment
  • Vehicles
  • The location of your business
  • The industry or profession of your business
  • The services you provide
  • Your claims history
  • The amount of coverage you select
  • How long you’ve been in business
  • Your business revenue
  • Any products you sell

Get A Quote

Our agency works with small businesses across Arizona to ensure that they are adequately covered in case disaster strikes. No matter what industry your business is a part of, we’re ready to help you get the protection you need. Having proper protection will allow you to focus on what matters most: running your business!

We can help you identify what types of coverages are appropriate for you and create an insurance bundle if needed. Even better news, we give free quotes! Give us a call today at (520) 836-3244 to receive a free insurance quote. Our agents are happy to guide you through the process and answer any questions you may have.

The Different Types of Business Insurance

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Types of Business Insurance

Insurance is necessary for businesses, big and small. However, the types of insurance your business may need will depend on different factors such as the type of industry your company is in, risk of employee injury, federal, state and local laws, where your business operates and more.

Business insurance policies can protect your company, your employees and yourself in the event of injury, property damage, theft, fire and liability claims. While it’s an additional investment in your company, it’s one worth making.

What is Business Insurance?

Business insurance is intended for companies rather than individuals. Depending on the type of business insurance you purchase, it can even protect your company from lawsuits. Small businesses usually are more exposed to financial losses and even business closures. Business insurance can protect against this and help you keep your company up and running, even in the darkest of times.

Our agents can evaluate your risks and help you pick which types of business insurance you need while keeping your budget in mind. If you cannot cover out-of-pocket costs in the event of a disaster or lawsuit, talk to one of our agents today.

Types of Business Insurance

Commercial Property Insurance

Damage can happen to any business. Whether you sustain damage to your office, your company vehicles or any other type of company property, property insurance can cover the cost of repair or replacement. The damage may be caused by man or through natural events.

It’s important to note that damage due to flooding and earthquakes is usually not covered with this type of policy. Vandalism, lightning damage and fire are typical coverages with a commercial property policy.

Your physical assets may be included in this type of policy as well. Make sure you provide your insurance agent with an inventory of company assets. This may include computers, machinery, furniture and more.

Workers’ Compensation Insurance

Workers’ Compensation insurance (also known as workers’ comp) protects your employees that are injured on the job. It will cover their medical expenses pertaining to the injury and may also cover their lost wages while they recover.

Workers that fall ill due to occupational hazards may also be covered under this type of insurance. Most states require companies to carry workers’ compensation insurance by law.

Commercial Auto Insurance

Any company that has company cars or vehicles needs commercial auto insurance. Whether you use trucks for landscaping or allow employees to use company cars to take clients to lunch, every business owner needs the proper coverage in place.

Professional Liability Insurance

If your company is sued for negligence, having a professional liability policy in place can help. Also known as Errors and Omissions insurance, if a client thinks you made a mistake regarding your professional services and they were harmed in any way, they may sue you for damages.

Business Interruption Insurance

Businesses that are forced to close for short periods of time can have difficulty keeping the company afloat. This type of policy, also known as business income insurance, can cover your financial losses by replacing lost income and help you continue to pay for your office space, employee salaries, etc.

Data Breach Insurance

If your company stores any private personal data or financial data, data breach insurance is crucial for your protection. Unfortunately, hacking is common and if you are hacked, your company’s private data may be stolen as well as confidential client data. This type of insurance will cover the damages due to a data breach.

General Liability Insurance

As far as business insurance coverage goes, this one is part of the first line of defense. In the event of a lawsuit, general liability coverage can cover the cost of an attorney. It acts to protect your business in the event of liability claims due to bodily injury, personal injury and property damage caused by your business.

Home-based Business Insurance

If you run your business out of your home, this type of policy may protect you. Homeowners insurance policies do not cover businesses run out of your home. If your office equipment is stolen or damaged, a home-based business insurance policy can cover your items.

Directors and Officers Insurance

If your company has a director or officer and they act inappropriately towards customers or employees or conduct business unethically, a scandal may be on your hands as well as a lawsuit. This type of policy will pay for legal costs and pay for the financial aftermath.

Life Insurance

A business can purchase life insurance for any employee that is considered essential to the company’s operation. For small businesses or family owned companies, this can be crucial to have if the person in charge passes away.

Product Liability Insurance

Does your business sell a product? If so, product liability insurance may be an asset for your company. If your product or service injures a customer, this type of policy will cover legal and medical fees. Additionally, if your product is defective and a class action lawsuit occurs, it’s smart to have insurance so you will be protected financially. Otherwise, your business may collapse.

What Type Do I Need?

There are four main types of business insurance that almost every company needs: workers compensation, property, commercial auto and liability insurance. It all depends on your business size, location, potential risks and revenue.

If your company has company vehicles, it is an absolute must to have commercial auto insurance. This will give your company and vehicles protection in the event of an accident.

Unless your business is private and located in Texas or Oklahoma, you will be required to have workers’ compensation insurance. These requirements vary by state. To make the process simpler, work with an insurance agency to navigate these requirements correctly.

How We Can Help

At Gebhardt Insurance Group, we have extensive experience insuring businesses just like yours. Whether you need small business insurance or have a large company, we can help you assess your risks and get you covered so you’re prepared in case disaster strikes.

Our insurance company will work tirelessly to help protect your business. Need help determining what type of business insurance you need or interested in additional coverages? Give us a call at 520-836-3244.