Small Business Insurance Cost and Options

by

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

by

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.

What is Business interruption Insurance

by

What is Business interruption Insurance

While not sold as a separate form of insurance in and of itself, business interruption insurance coverage is a common rider on many comprehensive policies. This allows for a given package to cover more than just general liabilities, such as property damage that can occur in face of a natural disaster or unexpected event.

However, in the age of coronavirus, business owners are now looking to their insurance policies to see if it can help them cover the cost of lost income, reduced hours, and the myriad of challenges they face during the pandemic.

Unfortunately, there are limitations to all insurance plans. Do you qualify for compensation? Keep reading to Find out more.

There Must Be Physical Damage

A main tenant of business interruption insurance is physical damage. Furthermore, it must be shown that the physical damage itself was the main cause for necessary interruptions in the business. For most policies, if this element is not present, coverage is not triggered.

If you believe this is limiting, you are correct. The origin has to do, coincidentally, with another virus.

Since the SARS pandemic, insurance companies have been careful about the wording in their policies specifically to exclude coverage caused by viruses and bacteria. This is due to the general fragility of the insurance industry as a whole— should too many claims be paid out at once, there is the risk of serious financial destabilization and even bankruptcy.

What Does Business Interruption Insurance Cover?

If your policy does qualify you for business interruption insurance, there are several types of damages for which you can seek compensation. These include the following:

Profit Loss

Profit loss is calculated by comparing your average monthly earnings before the interruption to your average monthly earnings after the interruptions. Generally, you can seek compensation for the resultant difference in those two numbers.

Temporary Location Coverage

For businesses that have to move to a temporary location during a period of restoration, the cost associated with such an accommodation is sometimes covered.

Civil Authority Coverage

Commonly included as part of a commercial property insurance plan, this type of coverage protects your business against loss relating to government closure orders. Similar to property damage, you must be able to show your business losses were a direct result of these mandates.

Employee Wages

This offers coverage for employee payroll to maintain staff during a period where there is little to no income revenue to support payments.

Fixed Costs

This is reimbursement for operating expenses of running your business. Depending on your industry, what these costs include will vary greatly.

Extra Expense Coverage

This is added reimbursement for costs that may not otherwise fall into the “fixed costs” category.

It must be noted that not all policies are the same and, as such, my yield different levels of coverage for some of the options listed above.

There is More Than One Type of Insurance Coverage

Finally, there is one more type of insurance coverage some individuals can potentially use for help cover losses. This is known as contingent business interruption insurance.

Unlike regular BI insurance, contingent plans relate to losses covered due to third party instability. Common third parties for this type of claim are suppliers, as if they did not fulfill their obligation, those who contract with them would suffer a financial loss.

Insurance Experts of Arizona

One of the only ways to know what your policy covers is to review your specific plan. This can help you understand whether you are experiencing a covered event in addition to make insurance adjustments going forward.

We know that finding the right insurance policy is difficult, especially with the vast number of policies there are to choose from. This is why it’s important to work with an insurance specialist who is knowledgeable about the market and who can guide you to the best policy for your situation.

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. We can help everyone from individuals looking for a basic health policy to families, persons with pre-existing conditions, and even those who are looking to purchase life insurance.

If you have any questions, give us a call at 520-836-3244 to get a quote and make an appointment to take the final steps in insuring your business.

Business Interruption Insurance COVID-19 and Coverage Concerns

by

Business Interruption Insurance COVID-19

Business interruptions have swept the nation and the world as the coronavirus crisis continues. While states and countries tentatively reopen, businesses are left with the damages of months spent with closed doors, lower operating capacity, and reduced hours.

With the prospect of a second wave on the horizon and a need to help the small businesses currently suffering, determining how COVID-19 will ultimately impact business interruption insurance policies is of global importance.

What is Business Interruption Insurance?

BI insurance is a type of policy that seeks to provide support if there is physical loss or damage to a business. This damage would need to create enough distress that the business itself could no longer function, operate, or provide services normally. When these conditions are met, insurance coverage is triggered.

Unfortunately, in these unprecedented times, insured companies are finding that their policies, in large part, do not necessarily offer coverage from damages resulting from communicable diseases. This is because while there has been a marked decrease in business function, the requirement of physical property damage goes unmet.

This reality has created an increase in litigation as businesses try to receive compensation for truly unavoidable circumstances.

A Spike in Business Litigation

As the coronavirus pandemic develops, there is an increasingly complicated legal web enveloping the insurance industry.

In a study done by Lex Machina, insurance disputes and contract litigation are both on the rise. This indicates insurance claims are getting contested as are work contracts going unfulfilled and delayed in the aftermath of lockdown.

When looking at these cases, it becomes clear that the legal field is attempting to find exceptions to bring greater flexibility to rigid policy limitations.

To support their view, lawyers are becoming creative in what they determine as “property damage.” This results in arguments claiming that if a sick customer were to utilize a service, they could potentially be contaminating the area. This contamination would result in the area being unsafe to visit, effectively “damaging” the property.

This is just one of many ways legal professionals are adapting their strategies to better serve businesses affected by COVID-19. Unfortunately, we will now know for quite some time if these efforts are truly effective.

How are Claims Being Handled?

After declarations of a States of Emergency and Shutdown Orders were implemented, many businesses were left without income. Unless business owners were in healthcare or directly part of the supply chain of distributing and selling essential goods, doors were closed due to COVID-19.

Unfortunately, due to the wording implemented in most politics, insurance companies have taken the stand that these types of losses are not included in insurance coverage.

Recall from the previous section that business interruption losses are those caused specifically by physical damage. This is the standard wording in most insurance policies. At this point in history, that places business and insurance companies alike in the midst of a heated debate.

For the insurance industry, covering losses from the virus would result in unprecedented payouts and financial destabilisation. For shops looking to receive compensation from mandated lockdowns, these business interruption claims are the lifeline that will keep many from closing their doors permanently.

Who is Affected Most?

Those industries affected most by COVID-19 are those which are non-essential and whose business income relies on a steady flow of customers. Particularly, the restaurant and hospitality industries were particularly affected.

Even once lockdown restrictions ended, these companies still suffer from extended damage as they are unable to work at full capacity for the indefinite future. Furthermore, as cases begin to spike, there is the omnipresent speculation of whether a second lockdown will be instituted, where it will occur, for how long, and to what effect.

Arizona Insurance Specialists

These are uncertain times for everyone, with business interruption coverage producing intense turmoil for smaller businesses of all types. This makes it dire that you have knowledgeable insurance personnel in your life who can help connect you with the best policies, policy resources, and understanding of your plan limitations.

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. We can help everyone from individuals looking for a basic health policy to families, persons with pre-existing conditions, and even those who are looking to purchase life insurance.

If you have any questions, give us a call at 520-836-3244 to get a quote and make an appointment to take the final steps in insuring your business.

What is Workers Compensation Insurance?

by

Workers Compensation Insurance

Workers’ compensation insurance is a type of policy which compensates workers for injuries or illness caused by their job while simultaneously protecting employers from crippling liability and excessive litigation. As such, an injured employee has the option to either file for compensation of their injuries or sue their employer for negligence, intentional harm, or poor workplace safety.

These types of policies follow the “common law” of the state, meaning that which benefits are available and how the policies are enforced, depends entirely on existing state laws and court rulings.

Which Injuries Are Covered?

While Workers’ Compensation laws vary by state, they all  cover the same category of claim: employees who sustain work-related injuries while carrying out a duty specifically related to their job responsibilities.

What Benefits Are Available?

The benefits earned between a Worker’ Compensation claim and a traditional lawsuit can be somewhat different, with lawsuits offering more flexibility in relation to damages, but also a higher risk of loss. Workers’ Compensation however, was made for the narrow cause of providing aid to injured workers. As such, the damages you can claim through this type of insurance are straightforward and easy to prove with the correct documentation. Among them:

Lost Wages: Here, insurance compensates for wages missed after the injury until the employee is able to return to work.

Medical Expenses: Any medical expenses, including necessary treatments, medications, and tests, associated with the workplace injury.

Rehabilitation and Retraining: Covers the cost of any rehabilitation or vocational retraining needed for the employee to return to work or continue working.

Permanent Disability: any ongoing care costs associated or directly related to being injured on the job.

Death Benefits: In cases where the employee dies due to the injuries they sustained on the job, death benefits help covering costs such as funeral preparations for the affected family.

However, be aware that this is the full extent of the damages you can recover for in a workers’ compensation case. Unlike a lawsuit, you are not allowed to file and claim damages for pain and suffering, or request punitive damages against your employer.

How Do I File a Claim?

In Workers’ Compensation, it is the employee’s responsibility to begin the claims process. This claim must further be filed within one year of sustaining your injuries or you will no longer be eligible for benefits.

The most important step to filing your claim is making sure you seek any necessary medical attention and report your injury to your employer as quickly as possible. If possible, document the time, date, the exact circumstances under which the injury occurred, in addition to the symptoms of your injury.

Next, you will fill out a Worker’s Report of Injury form (resources here) and send these forms, by mail, to the Industrial Commision of Arizona. Filling this form will constitute filing a claim, and therefore fulfil your responsibility of fulfilling the claims process.

Finally, it is your employers responsibility to file a claim with the insurance company.

How Quickly Will I Receive Compensation?

If all the above steps are taken correctly, the insurance carrier has 21 days to respond to your claim. Depending on the type of care needed and the extent of your injuries, some benefits can be immediate and others will take longer to arrive.

Without taking the above steps as quickly as possible, it can result in a delay of processing your claim and potentially limit your employer’s ability to complete an investigation. If this occurs, it could potentially put your claim in jeopardy, thus causing you to lose benefits.

Hiring and Insurance Expert

Workers compensation coverage varies by state. As such, it’s important to speak with a local insurance agent to know which insurance companies can offer you the best policy based on what your state requires. At Gebhardt, we can put you in contact with an expert from Workers’ Compensation Insurance in Arizona.

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. We can help everyone from individuals looking for a basic health policy to families, persons with pre-existing conditions, and even those who are looking to purchase life insurance.

If you have any questions, give us a call at 520-836-3244 to get a quote and make an appointment to take the final steps in insuring your business.

Commercial Performance Bonds in Casa Grande and Maricopa

by

A surety bond is a contractual agreement that ensures a party’s commitment to properly satisfy a “debt, default, or failure.” There are three different parties involved in these agreements. The obligee may be a government agency or other owner of a project needing to be completed.

The principal in the agreement is the party that is committed to performing services or providing products such as a contractor. The surety is a state-approved entity that is protecting the owner of the project (obligee).

Contract vs Commercial Bonds

The National Association of Surety Bond Producers explains that the two categories of surety bonds are contract and commercial. Commercial bonds are also commonly referred to as miscellaneous bonds. Contract bonds are often associated with construction projects. A contractor may be required to secure a bond as a means of protecting the owner of a project if the contract is not satisfied. 

Commercial surety bonds may be a requirement according to state statute, local ordinance or another agency requirement. Individuals and businesses must secure a surety bond to remain compliant with these laws. They are most commonly issued for one-year but certain types extend for two years.

Types of Commercial Surety Bonds

  • License and permit bonds: Those who operate in certain professions may be required to obtain these types of bonds. Common examples include automobile dealers, mortgage brokers, and various specialty contractors.
  • Court (or judicial) bonds: Parties that are involved in judicial proceedings may secure bonds that protect other litigants or parties. They may or may not be required by law. Common examples include appeal bonds, guardianship, and attachment bonds.
  • Fiduciary (or probate) surety bonds: These may be required for those who are administering a trust that is subject to court oversight. A fiduciary is commonly also referred to as a trustee. A fiduciary role is associated with those in a position of trust that has some ethical or legal relationship with another party.
  • Public official bonds: Those who hold public office may have a bond requirement. They commonly apply to those serving as a treasurer or county clerk. This protection is afforded to the public if the official commits acts of wrongdoing.
  • Miscellaneous bonds: The term miscellaneous applies to surety bonds that do not fit into the primary categories. There are many types including fuel, warehouse, and utility bonds.

Performance Bonds

Construction projects generally require that contractors are prequalified before being deemed eligible. A performance bond provides the project owner with protection in the event of default or another failure to complete a project. Contractors may be assessed based on their financial standing and work history.

The project owner is placed in a risky position when a contractor fails to meet their obligations. The bond may be used to retain another contractor or otherwise provide critical financial resources to ensure the work is properly completed.

Bonds vs Insurance

Surety bonds are often incorrectly viewed as being a form of insurance. They are not insurance policies and will not protect a party from problems such as those involving construction liabilities. A surety bond is used to compensate for obligations specified on the bond. The requirements of the value of a bond may vary based on a host of factors.

For example, an Arizona contractor’s license bond amount is determined by estimating the volume of earnings for the coming year. The bond’s value may range from roughly $5,000 to nearly $100,000. Bond value and type vary in Arizona and differ in other states or for specific circumstances. In California, contractors are generally required to maintain a $12,500 bond.

In Washington State, the contractor is required to meet both surety bond and insurance requirements. To be an eligible contractor for Northern Arizona University, the requirements include commercial general and automobile liability insurance. This is in addition to worker’s compensation coverage and the surety bond(s) specified in the contract.

Agency Provider of Commercial Bonds in Arizona

The Gebhardt Insurance Group offers a truly comprehensive array of products for individuals, families, and businesses. This includes insurance for your home, life, and automobile and contract and commercial surety bonds. We now have offices in Casa Grande and Maricopa for the convenience of our customers. You are encouraged to contact us today to speak with one of our professionals.

Types of Business Interruption Insurance

by

Types of business interruption insurance

Your business is an investment of your time, money and energy. You probably already have an insurance policy in place to protect. (If you don’t, there’s no time like the present!). An important part of any business insurance policy is business interruption insurance.

Business interruption insurance works to protect you by financially covering you in the event of unforeseeable damages and expenses incurred because of those damages.  Key terms to keep in mind for this insurance include: covered peril and restoration. If your business sustains damage or is destroyed interruption insurance can help reimburse you for lost income and other related expenses. This will only take place if the damage is caused by a “covered peril” and will only cover losses sustained during a reasonable period of time for rebuilding or restoration.  Covered perils will depend on your policy and any listed exclusions.  Your restoration period will be determined by the amount of damages and how long it reasonably takes to get your doors open for business again.  In simpler terms, business interruption insurance provides financial relief in the amount of the actual loss provided the cause of the loss is not excluded by the policy and only during the time period it takes to rebuild or restore the business to its previous operating ability.

There are three primary types of business interruption insurance.

Basic coverage

Basic interruption insurance is designed to cover you losses and expenses while your business is in the midst or repairs or rebuilding and is unusable. This coverage ends as soon as repairs are completed or sooner if you have a predetermined time limit built into your policy. It is also important to note that this insurance extends only for as long as it reasonably takes for repairs to take place. If you have long delays or prolong the repair process, your insurer may decline to cover beyond the reasonable period of time.

Extended coverage

Extended coverage includes an additional period of time from your repairs being completed to the time your business begins to earn income. For many businesses, it may takes some time to reopen their doors and start to make money again. If you can’t afford a lag in profit earning, you may want to consider extending your interruption coverage and make sure you are covered in case there is a gap.

Contingent coverage

Contingent insurance extends even further, to connected issues and entities. If you are a primary supplier of parts and your inability to supply a vendor that relies on you is financially damaging, your contingent coverage can kick in and save the day. This policy has a much wider reach than basic coverage and can extend to earnings that are not directly tied to the physical damage of your business.

There are some key questions to consider when assessing your business interruption insurance needs.

What do you have available for reserves?

Business interruption insurance can help keep your company afloat and solvent in the event of an unforeseen disaster or damages. If you have a healthy amount of reserve funds in the bank, you may be fine with basic coverage. However, if being closed for a month due to unexpected damages could put you out of business, consider increasing your coverage.

What is included in your basic business insurance policy?

It is critical that you understand what is and is not included in your existing policy. It is always a good idea to have your insurance professional review your policy with you to make sure you understand existing exclusions and policy amounts. If it would only cost $10,000 to rebuild your business and income for six months, you probably don’t need a million dollar policy. Appropriate coverage amounts are determined by many different factors and should be thoroughly discussed with an experienced agent. Also, your insurance professional can review your policy and identify any gaps or double coverages that can be eliminated.

What is most necessary and important to keep your business running?

Can you live without the work space but desperately need the staff on your payroll? Is the existing business space critical to your earning ability? It is helpful to identify which parts of your business are essential and then work with your agent to ensure they are covered by your policy.

Your business is more than just a brick and mortar building. Interruption insurance can help cover the cost of moving to a new site, payroll expenses, loss of income and much more. The best way you can protect your investment is to make sure you have the business insurance you need. If you are concerned about your existing policy, please call our office and let us review current coverage. We work with many different insurers and quote your policy needs with multiple companies to get you the best pricing possible.

Business Interruption Insurance: What it can and cannot cover

by

Business Interruption Insurance what it can and cannot cover

As a business owner you may put much more than just money into your business. Your blood, sweat and tears may also go into making your business a success. That’s why insuring your investment is so important.  Business interruption insurance may also be called business income insurance and you may ask yourself, “what can business interruption insurance cover?” This type of insurance is designed to protect your business in the event of losses that could be incurred by loss or damage caused by a covered peril. Covered perils will depend on your policy type of business interruption insurance and any listed exclusions. These types of policies typically cover the actual loss a business sustains during restoration.

While this all may sound very complicated, the structure of the policy is fairly straight forward once you move past the insurance jargon. In simpler terms, business interruption insurance provides financial relief in the amount of the actual loss provided the cause of the loss is not excluded by the policy and only during the time period it takes to rebuild or restore the business to its previous operating ability.

An example of a time when business interruption insurance may be used is rebuilding a business after a disaster such a fire. If your business were to suffer damage after a disaster, your business interruption policy may kick in and cover sustained losses such as:

Loss of income

If your business is closed for 6 months, you may lose a significant amount of sales. Your insurance company may use prior accounting records to determine an average amount of monthly losses.

Operating expenses

You may still be responsible for operating expenses which may be covered with this type of policy. Again, the insurer may look at historical records to determine an average expense and reimburse you accordingly. Your insurance may also help you with loan costs and even tax payments that are due.

Relocation

If your property is no longer usable you may be forced to relocate your business while the primary location is being rebuilt or repaired. Your insurer may cover moving and operating costs for your temporary location.

Employee wages

You don’t want to lose your best employees while your business is closed. Interruption insurance can help cover payroll costs until you are back up and running.

Additional expenses

You may be reimbursed for reasonable additional expenses that are incurred as part of the loss. Keep in mind that the insurance company will stress the reasonable part of this coverage.

There are some important points you should be aware of when considering business interruption insurance.

Business interruption insurance won’t cover everything.  It is not typically sold as a stand-alone policy. Because business interruption insurance is usually part of a broader business insurance policy, make certain that you understand what is and is not covered and where your policy starts and ends. For example a broader policy could exclude flooding from coverage, so your business interruption insurance will also not cover damage from floods.  Additionally, there are things that this type of policy won’t extend to. Flood damage and earthquake damage are good examples of items that are usually not covered unless they are specifically added to your policy or purchased additionally.

Business interruption coverage will only reimburse you up to a policy limit. Carefully consider what it would cost you to relocate your operations and be out of business if disaster struck. Use this cost to determine your best policy and coverage amounts.

This type of coverage stresses financial protection during the time of restoration.  Your insurance company will only be held liable for the reasonable amount of time it would take to rebuild, repair or restore your property. This period of time starts at the time damage was incurred and ends when your property has been reasonably restored.

There may be a waiting period. Many policies have mandatory waiting periods which can very from three days to three months. Make certain you know if your coverage includes a waiting period and what this time frame is. You should also have some savings set aside to cover this waiting period, just in case.
An important part of being a business owner is protecting everything you have built. Business interruption insurance provides coverage for you, your property, your income, and your employees in the event of unexpected disaster. Choosing your policy and understanding your coverage are imperative parts of making sure you have the insurance you need.

We offer the opportunity for you to work with experienced business insurance agents that will be detailed and take the time needed to ensure you understand your coverage. Our individualized attention ensures you can benefit from all aspects of your business coverage. We work with many different insurers which gives us the ability to get you coverage at the best possible price. We have made it our business to protect your business.

Can You Save Money by Bundling All Insurance in the Same Company?

by

Can your Casa Grande insurance agent really save you money by bundling your policies?  The short answer is yes, and here’s how to “Bang for Your Buck“:

  1. Discounts, discounts, discounts. An insurance company is anxious to earn your business and will want to earn as much of it as possible.  To that end, many insurers will offer discounts if you bundle multiple policies.  Some Casa Grande insurance companies can offer you homeowners, business insurance bundles, vehicle and umbrella insurance all in the same place.  The more insurance policies you bundle, the deeper the discounts.  Bundling is an easy way to be fully insured and save money on your insurance premiums.  It is far more expensive for an insurance company to earn new business then to keep an existing customer.  This encourages them to offer you deep discounts to bring all of your business to them and stay with them.  Once a customer has moved his/her policies to an insurance company he or she is less likely to go elsewhere.  The eagerness of the Casa Grande insurance companies to earn your business, and as much of it as possible, is your opportunity for big savings.
  2. Convenience: There is something incredibly simple about having all your insurance policies with one carrier. If you have multiple policies with different carriers you can look forward to multiple bills in the mail every month, different policy cards to keep track of and multiple phone numbers and calls that have to be made.  When you bundle your policies you can streamline all of that.  Your many different monthly bills can be consolidated into one.  If you only have one payment to keep track of you are much more likely to pay your bill on time, avoiding any late fees and penalties.  You also get to limit yourself to working with one company, one insurance card and one system of filing a claim.  Working with your Casa Grande insurance company to bundle your policies can make your life simpler and your insurance premium easier to pay and manage.
  3. Coverage: There are instances where your insurance policies can either overlap or have gaping holes.  Bundling your insurance with the same company allows an agent to review your coverage comprehensively and identify any gaps.  That same agent can review all your policies to see if you have any overlapping coverage and make adjustments to save you money.  The key to successful coverage, whether you choose to bundle policies or not, is to understand your insurance policies and coverage benefits.  Work with your Casa Grande insurance company and agent to thoroughly review your coverage and identify any overlapping items that can be reduced to save you money.
  4. Deductibles: When you bundle policies you may only be required to pay one deductible when you would otherwise have to pay multiple deductibles with different carriers. com gives an example, “But what if…, your car is damaged by the same hailstorm? If you don’t bundle, you might have to pay the $1,000 home insurance deductible and a $500 auto insurance deductible before you received help from your policies. Some providers, when you bundle coverages, have a single deductible requirement – though usually you have to pay the larger of the two deductibles. Even if your Casa Grande insurance company requires you to pay the higher of any applicable deductibles, it could still be more cost effective than paying multiple deductibles to multiple carriers.  In this instance, if you have bundled your policies, the claim process is also simplified.  You only have to pay one carrier and you only have to file one claim.  When dealing with an unexpected accident or property damage, the least amount of work and inconvenience the better.

Bundling is usually, but not always, a good idea.  If you need specialized coverage, you may not get the best deal bundling.  It may be most cost effective to separate out your policies so that you can obtain the best rate for your specialized needs.  Bundled policy rates will vary by insurers so even if you are bundling you will want to shop around.  Also, an insurer may require a long term commitment from you to qualify for the savings, so make sure you are getting the best deal possible before committing.

The savings of time, money and headaches can be reflected in a study published by Insurance Journal.com  as they studied Generation Y and their satisfaction with their insurance.  This article demonstrates that, “Members of the Gen Y generation, who were born between 1977 and 1994, are less satisfied with their homeowner’s insurers than others.  One reason may be because Gen Y home owners are less likely than older or younger customers to bundle their insurance policies with a single insurer….Satisfaction among bundlers averages 810 vs. 741 among non-bundlers.”  This report reflects higher satisfaction rates for those customers that bundle their insurance.  The financial and logistical savings make bundling a great option for most.  Your Casa Grande insurance company can review your specific circumstances and make sure that the advantages to bundling are a good fit for you.

Do I Need Insurance for My Business?

by

Do I Need Insurance for My Business? The short answer is yes; you absolutely need insurance for your business. Your business is the product of your blood, sweat and tears. It may be a new enterprise or a booming and established business but either way, it is important that you protect what you have worked to build. Doing business without insurance leaves you and your company open to a world of potential problems.

When looking at insurance for your business you have lots of options and things to consider. As a business owner you have a lot to protect. Just like no two businesses are exactly the same, no two businesses will have the exact same insurance needs. Some insurance offerings are appropriate for a business based on size or industry. It is important to talk to an experienced agent that can help you cover all your business insurance needs without overpaying for insurance you don’t need. There are many different types of insurance offerings out there for you to consider.

Property insurance: Property insurance typically covers losses and damages to real or personal property. You can purchase additional insurance that covers specific things such as debris removal and glass replacement. If you own a restaurant you may consider a specific property insurance to cover your equipment such as your kitchen appliances, cash registers, booths, and bar area in case of a fire or other covered loss.

Liability insurance: Despite the fact you are the model business owner you always face the possibility of a law suit. Liability insurance comes in many shapes and sizes. “Any type of insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury or negligence. Liability insurance policies cover both legal costs and any legal payouts for which the insured would be responsible if found legally liable. Intentional damage and contractual liabilities are typically not covered in these types of policies.” In this litigious day and age liability insurance is a very wise investment. The cost of coverage can vary and depend on what industry you are working in and the size of the business you own. For instance, a large construction company may find liability insurance much more expensive than a small marketing company.

Workers Compensation: If you have employee’s you will more than likely need workers compensation insurance. As of 2010 workers compensation was required by 49 of the 50 states, with Texas being the only exception. Workers compensation regulations vary by state. Some states require workers compensation for companies with only one employee while others require it for companies with at least three employees. Workers compensation provides coverage for employees that are injured on the job. It can cover the injured employee’s medical expenses and partial disability payments while the employee is unable to work. For a comprehensive list by state of the workers compensation regulations visit the National Federation of Independent Business’s website: https://www.nfib.com/. Because workers compensation is generally mandatory by law you should consult a state specific insurance expert to help guide you in your obligations and make sure you are compliant.

Life Insurance: Could your business continue if something unexpected were to happen to you? If you are a key employee, partner or owner and you were to die suddenly could the business go on without you? If the answer to either of these questions is no, life insurance for your business may be a consideration. A good example of this would be a husband and wife that have a family and own a small business together. If either spouse were to die unexpectedly not only would the family need funds to supplement the loss of income, so would the business. Life insurance designated for the business allows an influx of income if needed due to the loss of a key partner.

Data Breach Insurance: This insurance is an additional policy intended to cover the cost of a data breach. In this day and age of technology and hackers this policy may be well suited to your company, depending on what you do and if you handle sensitive data. An IT company or a doctor’s medical practice might be good candidates for this insurance. According to USAToday, 43% of companies experienced a data breach in 2013. In 2014 Target, Neiman Marcus, Michaels, UPS, Dairy Queen, and Home Depot were just some of the bigger named companies that experienced data breaches. Your general liability insurance may address a data breach to a limited extent. Consult with an experienced agent to make sure you have coverage appropriate for your industry and potential risk.

Commercial auto insurance: If your car is used for business purposes or is owned by your company you may need commercial auto insurance. If you use your vehicle for personal and business purposes you still may want to consider commercial auto insurance. Without it, if you are involved in an accident the insurance company may deny your claim under your personal car insurance because the commercial use of the vehicle may violate the terms of your insurance policy. The use of your vehicle and type of business will help determine your need for commercial auto insurance.

Directors and Officers Insurance: This is commonly known as D&O insurance. This business insurance is designed to protect you from personal losses if you are sued as a result of serving as a director or an officer. It may also cover legal fees for the organization should a lawsuit occur. D&O insurance can take different forms based on the industry and potential liability. Typically, D&O insurance does not cover fraud or dishonest acts.
As you can see you have many different options when it comes to insuring your business. Don’t let an unfortunate accident or lawsuit damage the business you have worked so hard to build. Your business needs insurance. Some policies will be required by law while others are optional and case specific. Consult an experienced insurance agent to figure out which insurance options are appropriate for you.