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Archive for July, 2011

Private Security Companies

Sunday, July 31st, 2011

Security guard and alarm companies have unique exposures that make these services not the typical main street type business.  Because of their exposures, these must be matched to an insurance company proficient in the business so ratings must be matched to risk.  Most of these companies can provide risk management tools to aid in reducing both number and severity of claims.  These risks include bodily injury and property damage to others.  These are the type claims filed resulting from their particular business operations.

 

Proper insurance evaluation of the risks involved can help in finding the best premium match to the risk, but can also avoid a security business from being under-insured when a loss does occur.  Please contact your agent or talk with one of ours to find out more about this type of insurance.

 

 

Commercial Insurance.Net, LLC Advisor is not an attorney, accountant or certified financial planner and makes no representations or warranties to that effect.  Always check with your chosen professional as to statements made in this blog for your particular situation.

Certificate Of Insurance

Saturday, July 30th, 2011

We are asked many times by our insureds to issue Certificates of Insurance.  Most of the time, they are required to present one to a person who is in control of awarding contracts or work to be done by independent contractors, such as our clients.  We are happy to do so and issue many per day.  Occasionally, we are requested to issue a certificate a certain way to comply with another’s requested wording.  Sometimes, we are unable to comply due to the fact of “hold harmless” wording, additional insured requests, and contractual requirements.  An agency does not have the power and authority to override an insurance policy, and unless an insurance company agrees to add the particular request, we are not able to provide the certificate requested.

 

In addition, there are varying state laws regarding certificates.  Many states prohibit adding an additional insured and some certificate holders so regardless of what is issued by the agency or company, statute law will be the deciding factor.  If you are requested to provide a Certificate of Insurance, please talk with your agent or one of ours for validity.

 

Commercial Insurance.Net, LLC Advisor is not an attorney, accountant or certified financial planner and makes no representations or warranties to that effect.  Always check with your chosen professional as to statements made in this blog for your particular situation.

 

 

Commercial Rental Vehicle Insurance

Friday, July 29th, 2011

While traveling from city to city, it is common for a business to rent a vehicle, either by the owner, officer, director, or employee.  I often receive a call asking if they should purchase the physical damage or loss damage waiver.  My response is always the same.  I need to know exactly who will be renting the vehicle to determine if there is coverage under the commercial vehicle insurance policy.  What I mean is, will it be in the owner’s business name, or individual.  This is what determines physical damage transference and I explain how that may work in case of physical damage and liability to the rented vehicle.   

 

However, there is more information a client needs for determining the need to purchase the rental agency’s insurance policy.  I talk about the fact if an accident occurs, then the rental company suffers loss of revenue from that vehicle and whether the commercial policy will pay such loss in addition to paying for damages.  I also talk about the rental car company’s ability to assess “diminished value” loss to the client.  Many years ago, rental companies kept a vehicle in rental service.  Today most place the vehicles for sale before it reaches a specified mileage.  Because the vehicle has had repairs for an accident, there is now “diminished” value.  However, this is subjective before a sale has taken place.  Please talk with your agent if you rent vehicles for your business or call one of ours for additional information.

 

Commercial Insurance.Net, LLC Advisor is not an attorney, accountant or certified financial planner and makes no representations or warranties to that effect.  Always check with your chosen professional as to statements made in this blog for your particular situation.

 

Business Income & Extra Expense

Thursday, July 28th, 2011

Business Income and Extra Expense is a coverage offered under commercial insurance property coverage.  Under a Business Owners Package there is usually a limited amount automatically covered.  However, this coverage must be selected under the Commercial Property policy.  This coverage is designed to recover lost income and any extra expenses involved getting a business back to the financial position prior to a covered loss. 

 

One example would be for a flower shop.  Suppose a restaurant next door to a flower shop caught on fire.  Most likely, the flower shop’s power will go off, and be off several hours.  The flower shop may suffer not only smoke damage to the shop, but the loss of refrigeration will cause loss of inventory, which in turn, causes loss of sales.  This coverage within the policy will allow the flower shop to arrange for generators operating temporary refrigeration, operations and whatever else the shop needs to continue business operations.  This is the extra expense side of the policy.  Smoke clean-up will be through the property side of the policy and loss of sales income will be through the business income.  Please talk with your agent or one of ours to find out if you need this coverage for your business.

 

 Commercial Insurance.Net, LLC Advisor is not an attorney, accountant or certified financial planner and makes no representations or warranties to that effect.  Always check with your chosen professional as to statements made in this blog for your particular situation.

Classifications Within General Liability Insurance

Wednesday, July 27th, 2011

Insurance policies covering commercial business operations for legal liability is called General Liability insurance. The policy covers negligence by the insured business causing bodily injury or property damage to a 3rd party. In the industry, we as agents, sometimes refer to this as “slip and fall” insurance. The insurance companies employ actuaries who can devise a rate for a particular classification according to risk. This classification is extremely important to us so we as agents, can match the policy coverage to the risk and collect premium according to risk, so insurance companies have the money to pay a claim, if one occurs.

 

As with any business, the more history one has, the better projections of the future can be made. Insurance companies have a great deal of history to base future loss projections of each classification. Therefore, the reasoning for rate changes. But also for clarifications of policy definitions, classifications and endorsements available for increase or decrease of coverage. Correct classification of your business is extremely important for both rating and insurance coverage. Please take time to tell your agent everything your operations include so correct classification my be applied. Talk with your agent or one of ours to be sure your business is properly covered.

 

 

Commercial Insurance.Net, LLC Advisor is not an attorney, accountant or certified financial planner and makes no representations or warranties to that effect. Always check with your chosen professional as to statements made in this blog for your particular situation.

 

Who Is Insured?

Tuesday, July 26th, 2011

The “insured” on a commercial insurance policy can be a confusing issue, so I want to talk about determinations of how we arrive at discovery of exactly who is to be placed on the policy as insured.  We will always ask the name of the business, but the answer to the next question we ask is critical.  We ask what the business entity is.  Is it a LLC, partnership, joint venture or incorporated?  We may also ask if this is a sole proprietorship if your name is included.  The answers provided will determine the name we write the policy for.  At claim time, coverage is afforded to the name we have established as the business insured. 

 

If one is a sole proprietor, the named insured and spouse are covered with respect to  conduct of the business. 

 

If one is a partnership or joint venture, then the partnership or joint venture is covered along with members, partners and their spouses, but also with only conduct of the business. 

 

A LLC is an insured as are managers, but only with respect to business conduct.  Any other organization, such as a corporation, is an insured as are executive officers, directors and stockholders, but there again, only with respect at to the business interest.  Same with a Trust; only the trust and trustees are insureds.

 

Other than the sole proprietorship and partnership/ joint venture descriptions, spouses are not insured unless holding an office within the business operations.

 

Please talk with your agent about who is covered under you commercial insurance policy.  Or call one of ours to discuss this further.

 

Commercial Insurance.Net, LLC Advisor is not an attorney, accountant or certified financial planner and makes no representations or warranties to that effect.  Always check with your chosen professional as to statements made in this blog for your particular situation.

Insurance Coverage For Privacy

Monday, July 25th, 2011

There is hardly a day that goes by we do not read or hear of some company’s or government computer system being breached and confidential information being compromised.  There are those who wish to obtain private information for their own financial gain, but there are others who want to prove it can be done.  I call that “too much time on their hands”.  Because most of us just want to do our job and make a living, we do not think about it happening to us.  However, nothing could be further from the truth.  We are all vulnerable. 

 

Insurance companies are working hard at battling the cyber age as many lawsuits are arising out of these breaches of information.  And the electronic age have erupted at a pace much greater than our laws can catch up.  However, damages to individuals or companies are not limited to financial, medical, and identity theft.  A business spends millions trying to repair credibility, trust, notification and monitoring services.  Does your business need this coverage?  Does your insurance policy provide these services.  Ask your agent or call one of ours. 

 

Commercial Insurance.Net, LLC Advisor is not an attorney, accountant or certified financial planner and makes no representations or warranties to that effect.  Always check with your chosen professional as to statements made in this blog for your particular situation.

Ethics In Business

Sunday, July 24th, 2011

I come from a generation full of handshake deals.  What I really mean is, I saw very few “contracts” my Dad ever signed.  Negotiations were very short, agreements very quick, and deals were completed with a handshake.  Unfortunately, those days are gone, and with our litigious society and court rulings, we can no longer trust our memories to verbal deals made.  Insurance policies are a prime example of this thought.  Insurance companies have actuaries to help decide what perils a policy may offer and at what price.  This is not intended to deceive an insured, but is to keep the insurance company profitable.  What that means to customers is the company will have the ability to pay claims when catastrophe strikes.  We have seen a great deal of catastrophes this year throughout the south and southeast parts of the country. We have seen wildfires and dust clouds in the west.  Insurance has been described as a “necessary evil”.  But the true value is determined when one has a claim to report and expects payment.  Please talk with your agent about your company.  You may also check on your insurance companies’ solvency ( the ability to pay claims ) on the internet at A.M. Best Company.  Please contact any one of agents for help in determining insurance coverage for your business.

 

Commercial Insurance.Net, LLC Advisor is not an attorney, accountant or certified financial planner and makes no representations or warranties to that effect.  Always check with your chosen professional as to statements made in this blog for your particular

Insurance For Fundraisers

Saturday, July 23rd, 2011

Did you know there is insurance for fundraising?  Each year I arrange a golf tournament to raise money to fund a college scholarship.  We have a lot of fun, good food and great prizes.  Quite recently, we have added special events for fun, but also some very serious prizes.  These include $50,000 for one event, $5,000 for another, and a 5 day cruise for another.  We guaranteed a winner for the cruise.  There were many other awards and prizes along with these.  Since the purpose of the tournament was to raise money for a chosen charity, we certainly could not afford to take these winnings out of the money raised.  Instead, these prizes were funded by insurance.  I purchased the insurance policies from a leading company so our charity could relax and enjoy the event.

 

If you are considering a club event, fundraising event, or charity event please talk with your insurance agent to discuss any risk exposures you may be facing, but also ask about fun additions to give a new twist in your marketing efforts.  Please call one of our agents for your event insurance.

 

Commercial Insurance.Net, LLC Advisor is not an attorney, accountant or certified financial planner and makes no representations or warranties to that effect.  Always check with your chosen professional as to statements made in this blog for your particular situation.

 

Jargon Speak

Friday, July 22nd, 2011

No matter the industry, we are seem to come up with a new foreign language.  We have certain catch phrases and acronyms that is widely used and understood by persons within that particular realm.  However, people outside that particular realm do not have the same understanding, which leads to mis-communication.

 

We in the insurance industry are very good at understanding acronyms since we use so much of them.  However, even after 30 years in the insurance industry, I am having to ask for clarification so I have to wonder how a lay person can possibly understand and interpret our language.  I am sure many of us speak a foreign language to them because these terms are so common to us, we do not consider they can be misinterpreted.  When talking with your agent, please ask what certain terms mean to you and your business.  We may forget acronyms and catch phrases are not an all encompassing language.  Please call one of our agents, and we will be happy to speak to you in plain talk.

 

Commercial Insurance.Net, LLC Advisor is not an attorney, accountant or certified financial planner and makes no representations or warranties to that effect.  Always check with your chosen professional as to statements made in this blog for your particular situation.