Ocala Insurance Blog

Tips and Help with Insurance

What is Business Interruption Insurance?

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Courtesy of iii.org

Business interruption insurance can be as vital to your survival as a business as fire insurance. Most people would never consider opening a business without buying insurance to cover damage due to fire and windstorms. But too many small business owners fail to think about how they would manage if a fire or other disaster damaged their business premises so that they were temporarily unusable. Business interruption coverage is not sold separately. It is added to a property insurance policy or included in a package policy.

A business that has to close down completely while the premises are being repaired may lose out to competitors. A quick resumption of business after a disaster is essential.

  1. Business interruption insurance compensates you for lost income if your company has to vacate the premises due to disaster-related damage that is covered under your property insurance policy, such as a fire. Business interruption insurance covers the revenue you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt.
  2. Make sure the policy limits are sufficient to cover your company for more than a few days. After a major disaster, it can take more time than many people anticipate to get the business back on track. There is generally a 48-hour waiting period before business interruption coverage kicks in.
  3. The price of the policy is related to the risk of a fire or other disaster damaging your premises. All other things being equal, the price would probably be higher for a restaurant than a real estate agency, for example, because of the greater risk of fire. Also, a real estate agency can more easily operate out of another location.

Extra expense insurance

Extra expense insurance reimburses your company for a reasonable sum of money that it spends, over and above normal operating expenses, to avoid having to shut down during the restoration period. Usually, extra expenses will be paid if they help to decrease business interruption costs. In some instances, extra expense insurance alone may provide sufficient coverage, without the purchase of business interruption insurance.

Home-Based Business & Insurance

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Courtesy of iii.orgWhether you’re running a part-time, seasonal or full-time business from your home, you’ll want to carefully consider your risks and insurance needs. Starting a business—even at home—can be a challenging venture, and having the right insurance can provide a financial safety net and peace of mind.

Your insurance choices should, in part, be based on the type of business you operate. For instance, if you’re a sole practitioner home-based accountant, you’ll have very different insurance needs than your neighbor who runs a childcare business. When considering insurance for your business, here are some questions to ask yourself:

  • What type of business do I run? What are the potential risks faced by your type of business?
  • What is the value of my business property? Do you have expensive equipment, such as cameras or commercial printers? Do you stock valuable business inventory, such as gemstones?
  • Does my business have employees?
  • Do customers or contractors visit my business at my home?
  • Do I use my car or other vehicles in the course of my business operations?
  • Does my business store customers’ financial and personal information on a computer or through a cloud computing service?

The answers to these questions will guide which types of insurance to purchase—and how much coverage you’ll need. For your home-based business, the main types of insurance to consider include the following:

Property and liability insurance

Depending on the nature of your home-based business, you’ll need insurance to protect the value of your business property from loss due to theft, fire or other insured perils. You’ll also need liability protection to cover costs if someone is injured as a result of visiting your business or using your product or service. Your homeowners insurance may provide some protection for your business, but it may not be sufficient. Options for property and liability insurance for home-based businesses include:

  • Adding an “endorsement” to your homeowners policy
  • Stand-alone home-based business insurance policies
  • A Business Owners Policy—or BOP—which combines several types of coverage

Business vehicle insurance

Your personal auto insurance may provide coverage for limited business use of your car. But if your business owns vehicles or your personal vehicle is primarily used for business purposes, you’ll need business vehicle insurance.

Workers compensation insurance

If you have employees, you’ll want to strongly consider purchasing workers compensation insurance to cover costs if an employee is hurt on the job. Workers compensation insurance provides wage replacement and medical benefits to employees injured in the course of employment, in exchange for relinquishing the right to sue the employer. In some states, workers compensation insurance is mandatory, so be sure to check your state’s workers compensation website for local requirements.

Other types of insurance may be suitable for your home-based business as well. Your insurance professional can help you evaluate your needs and select insurance to meet your budget.

Do You Need Business Interruption Insurance?

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Courtesy of iii.org

Business interruption insurance can be as vital to your survival as a business as fire insurance. Most people would never consider opening a business without buying insurance to cover damage due to fire and windstorms. But too many small businessowners fail to think about how they would manage if a fire or other disaster damaged their business premises so that they were temporarily unusable. Business interruption coverage is not sold separately. It is added to a property insurance policy or included in a package policy.

A business that has to close down completely while the premises are being repaired may lose out to competitors. A quick resumption of business after a disaster is essential.

  1. Business interruption insurance compensates you for lost income if your company has to vacate the premises due to disaster-related damage that is covered under your property insurance policy, such as a fire. Business interruption insurance covers the revenue you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, like electricity, that continue even though business activities have come to a temporary halt.
  2. Make sure the policy limits are sufficient to cover your company for more than a few days. After a major disaster, it can take more time than many people anticipate to get the business back on track. There is generally a 48-hour waiting period before business interruption coverage kicks in.
  3. The price of the policy is related to the risk of a fire or other disaster damaging your premises. All other things being equal, the price would probably be higher for a restaurant than a real estate agency, for example, because of the greater risk of fire. Also, a real estate agency can more easily operate out of another location.

Extra expense insurance

Extra expense insurance reimburses your company for a reasonable sum of money that it spends, over and above normal operating expenses, to avoid having to shut down during the restoration period. Usually, extra expenses will be paid if they help to decrease business interruption costs. In some instances, extra expense insurance alone may provide sufficient coverage, without the purchase of business interruption insurance.

What is a Managed Repair Program

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Courtesy of iii.org

You’ve heard of preferred providers for health insurance policies. They are considered mutually beneficial because insured people get medical services at a reduced rate and the provider gains business since more patients are directed there. Auto insurers have used that model for decades. They have networks of pre-approved auto body shops to repair cars involved in crashes. Because most people don’t know the best place to unbend a fender bender, this is a proven formula for piecing a car back together. Similar programs also exist when a home or business suffers damage. Many insurers have managed repair programs for filing property claims to get damage repaired promptly and correctly – and to help control claims costs.

The most important thing to understand about controlling claims costs is the consumer benefit. Insurance is the cost of claims. If the cost of claims is controlled, then the price you pay for insurance is controlled. It is NOT about paying less on the settlement amount of the claim; it is about paying what is owed and what is necessary at a fair price.

When a homeowner has a claim and their insurer offers a managed repair program, the repairs are done through a contracting company that has been vetted, approved and overseen by the insurer. Use of a managed repair contractor saves the homeowner time (“Time is money”) and the hassle of taking a chance on an unknown and unproven repair company. Many times, the insurance company also backs up the workmanship of their approved contractors with a stronger guarantee or warranty than what one would find if going directly. It’s about customer satisfaction.

Managed repair programs are optional (although an insurer offering a premium discount for signing up for one may allow you to change your mind only at renewal time – not in the middle of a claim).

There is a lot to like about this managed repair concept, if you understand how it works and whom it benefits. Saving money on homeowners insurance is more than a concept. It’s the goal.

Insurance & Women

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Courtesy of http://www.iii.org/press-release/what-do-women-business-owners-want-credible-accurate-insurance-advice-022616

Women have made great strides in the business world in the past few decades. And business insurance is essential to protecting their hard-earned capital, according to the Insurance Information Institute (I.I.I.).

Forty years ago women owned just 5 percent of all small businesses in the United States. Today, they own one-third, generating nearly $1.5 trillion in revenue and employing over 7.9 million people. Between 1997 and 2015, the number of women-owned firms increased by 74 percent, according to the 2015 State of Women-Owned Businesses Report. And the majority of new women-owned firms launched in 2014 were owned by minority women.

“Whether launching a new business, growing your business or competing in the global marketplace, it is essential that women business owners get the right type and amount of coverage,” said Loretta Worters, a vice president with the I.I.I. “Without adequate insurance, a natural catastrophe, employee lawsuit or even the death of a business partner could destroy what they’ve built,” she warned.

In recognition of Women’s History Month, the I.I.I. recommends the following six strategies to ensure that your business is financially protected:

1. Assess your risks. What business property, including inventory and equipment, do you own? Do you have employees? What is the nature of your business? This basic snapshot will help an insurance professional provide recommendations about the type of coverage your business needs.

2. Find the right insurance professional. When shopping for insurance most business owners use an insurance broker—you’ll want to find one who is familiar with the risks of your specific business. A qualified broker can help collect all the necessary information and paperwork to apply for a policy, and comparison shop among several options and quotes. Here are some tips for finding the right fit: Finding the Right Insurance Professional for Your Business.

3. Compare rates. As a general rule, you’ll want to get business insurance quotes from at least three different companies. Try to find policies that offer similar coverage so that you can clearly compare prices.

4. Evaluate insurers, policies and services. When purchasing business insurance, price is just one consideration. Make sure a potential insurer is reputable and in good financial condition. In addition, review and compare policies in depth. Does one policy have exclusions that another does not? In the case of litigation, does the insurer provide an attorney or reimburse you for an attorney you choose?

5. Lower your premiums. Choosing a higher deductible can lower your premiums significantly and insurers will often lower your rates for putting in place programs to minimize losses from fire, theft and employee and customer injuries. This is particularly important for start-ups that are low on initial capital.

6. Review your risks and insurance policies annually. Talk to your insurance professional prior to renewing you coverage each year to determine what adjustments should be made to your business insurance policies. If your business is expanding, you have purchased or replaced equipment or have started working with vendors internationally, you may have new liabilities that require higher insurance coverage.

Don’t Overlook These Coverages

Life insurance is vital to any business—both personal and for the company. Should you die prematurely, a personal life insurance policy can replace your income from the business and protect your family. In the event an owner, partner or key employee dies, life insurance will take care of your business.

Another key coverage is disability insurance. More than twice as many people will be disabled during their career as will die before they retire. “Income protection for small business owners is critical for the long-term security of the owner and the company if they cannot work due to an injury or illness,” said Worters.

Insurance Spring Cleaning

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Spring may be the traditional time of year for cleaning out closets and drawers and organizing attics, but it is also a great time to review of your insurance coverages, according to the Insurance Information Institute (I.I.I.). 
“Just as it is important to look at your wardrobe, electronics and other personal items to see what needs to be tossed, fixed, updated or stored for the coming months, everyone should do a thorough evaluation of their insurance coverage at least once a year,” says Jeanne M. Salvatore, the I.I.I.’s SVP and Chief Communications Officer. “So why not make a policy review part of your spring cleaning ritual?”
As your life changes so do your insurance needs. Instead of just dusting around the corners of your insurance policies this year, take the time to read them over and ask yourself the following key questions:
1. Is my home covered for its full rebuilding cost?
Review your policy to make sure that you have enough insurance to rebuild your home. If you have made major improvements to your home, such as adding a new room, enclosing a porch or expanding a kitchen or bathroom, you risk being underinsured if you don’t adjust your homeowners insurance coverage limits.
And if you don’t yet have a separate flood insurance policy, now would be a great time to check whether your home is in a flood risk zone at FloodSmart.gov.
For more information: How Much Homeowners Insurance Do I Need?; Does My Homeowners Insurance Cover Flooding?
2. Do I have enough coverage for expensive items?
Have you bought or received as a gift any valuable jewelry since you purchased/renewed your policy? And, when was the last time you had the items you owned appraised? Standard homeowners insurance has dollar limits for the theft of certain types of expensive items like jewelry, furs and silverware. This means that the insurer will only pay the amount specified in the policy—generally $1,000 to $2,000. To insure these items to their full dollar value, consider a special personal property endorsement or floater. This coverage includes “accidental disappearance,” meaning coverage if you simply lose that item—and there is no deductible.
But remember that items can go up or down in value.  Floaters and endorsements are priced on the appraised value of an item or collection so have periodic reappraisals done to make sure you are purchasing only the amount of coverage you actually need.
The best way to keep track of your belongings and make sure they are adequately insured is to create a home inventory—find out how here.
3. Do I still need comprehensive/collision on my car?
If you’re driving an older car that is worth less than $1,000—or less than 10 times the insurance premium—the optional coverages may no longer be cost effective. Consider saving money on your premium by dropping either comprehensive or collision.
4. Do I have enough liability insurance to fully protect my assets?
Standard homeowners and auto policies liability coverage, paying for judgments against you and your legal fees, up to a limit set in the policy. However, in our litigious society, you may want to have additional protection—that’s what an umbrella liability policy provides. An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. If your assets have increased of late, you’ll have more to lose and may want to consider this extra layer of protection.
5. What kind of vacation will I be taking this summer?
If you are taking an expensive, pre-paid vacation or an active vacation such as biking or hiking in an exotic locale, travel insurance can help protect the financial investment in your vacation.
6. Should I rent out my house during the vacation period?
Whether you own a second home that you plan to lease to a tenant, or want to rent out your primary residence though an online service such as Airbnb, your first step should be to call your insurance professional. Depending on the rental scenario, your standard homeowners policy may not cover losses incurred while your home is rented out, and you may require a more specialized insurance policy. Reprinted courtesy of iii.org

Women Statistically Underinsured

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Whether or not they hold   down a paying job, many women contribute to the economic well-being of their family in important ways—from taking care of household tasks to acting as the primary care giver for children and aging parents. But these contributions are too often left unprotected by life insurance, according to the Insurance Information Institute (I.I.I).
A national poll by wholesaleinsurance.net, an industry news and information resource, finds 43 percent of adult women have no life insurance. And among those who are insured, many are underinsured, carrying roughly a quarter of the coverage necessary for their needs. Women now comprise 57 percent of the U.S. labor force, according to a Bureau of Labor Statistics study, yet they carry 31 percent less life insurance than their male counterparts.
A LIMRA survey found that while younger women are now as likely as their male counterparts to have coverage, women ages 55 and older are still considerably less likely than men the same age to own life insurance. And women of all ages have smaller average amounts of individual life coverage than men in equivalent age brackets. On average, women have $129,800 of individual life insurance, to men’s $187,100. In addition, women with high personal incomes ($100,000 or more) are less likely to have life insurance than men at the same income level.
“Women’s History Month is an important reminder of how far women have come,” said Loretta Worters, vice president with the I.I.I. “One hundred years ago women weren’t even able to buy life insurance; today women hold leadership positions in corporate America, including the insurance industry. So it’s more important than ever that women place a value on their contributions and purchase the right type and amount of life insurance.”
Worters added that the services stay-at-home spouses provide to their families are significant. “If a stay-at-home spouse dies, the family would need to hire someone to cook, clean, chauffer, tutor, nurse, handle household maintenance, bill paying, yard work and a host of other important duties,” she noted. “It could cost a small fortune to replicate the care they provide. A life insurance policy can help cover those expenses.”
Life insurance can be a good choice for single women with no dependents as well. Women are, as a group, living longer than ever before, and the need for sufficient retirement income is crucial. A cash value life insurance policy, for example, can help accumulate funds on a tax-advantaged basis to supplement other retirement income. And life insurance can pay for outstanding debt, funeral, burial, probate and estate administration expenses or be used to leave behind a legacy in the form of a charitable contribution.
To better understand the life insurance options available, give us a call today!
reprinted courtesy of iii.org

Gifts that Need Insurance-Please Watch

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If you are lucky enough to get a sparkling engagement ring for Valentines day, be sure to have it properly insured. Jeanne Salvatore, Senior Vice President and Consumer spokesperson for the Insurance Information Institute explains that a special policy called a floater will protect your expensive items from theft as well as “mysterious disappearance”.
Ocala Insurance
2831 SE 17th Street
Ocala, FL 34471
Phone: 352.732.2233
Fax: 352.867.7020

Cyber Security Intelligence Index

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There’s an interesting moment in a report on the current state of cyber security leadership from International Business Machines Corp (IBM).
For those who haven’t seen it yet, the report identifies growing concerns over cyber security with almost 60 percent of Chief Information Security Officers (CISOs) saying the sophistication of attackers is outstripping the sophistication of their organization’s defenses.
But as security leaders and their organizations attempt to fight what many feel is a losing battle against hackers and other cyber criminals, there is growing awareness that greater collaboration is necessary.
As IBM puts it: “Protection through isolation is less and less realistic in today’s world.”
Consider this: some 62 percent of security leaders strongly agreed that the risk level to their organization was increasing due to the number of interactions and connections with customers, suppliers and partners.
Despite this widespread interconnectivity that drives modern business, security leaders themselves aren’t sufficiently collaborative, IBM says.
Just 42 percent of organizations that IBM interviewed are members of a formal industry-related security group. However, 86 percent think those groups will become more necessary in the next three to five years.
Instead of focusing on just their own organizations, security leaders need to take a “secure the ecosystem” approach, IBM concludes.
This joint presentation Robert Hartwig, president of the Insurance Information Institute, and representatives of PriceWaterhouseCoopers and attorneys from Lewis Brisbois Bisgaard & Smith addressed important issues relating to cyberbreaches in today’s corporate environment. Hartwig’s presentation focused on insurance strategies, including a discussion of the growing cyber exposure, the typical structure of a cyberinsurance policy and a look at the marketplace for cyber policies. 
Other presenters focused on corporate governance and compliance issues; and developing incident response plans after an incident.
Please click on the file name below to view the presentations. Once open, you can choose “file” from your menu and then save the PowerPoint presentation to your disk. The presentation also is available in Adobe Acrobat format. The Adobe Acrobat file is smaller and faster to download. However, you do need the appropriate software to view.
You can download Adobe Acrobat Reader, free of charge, from the Adobe website (http://www.adobe.com/products/acrobat/readstep.html).
Thanks to iii.org.

Holidays & Host Liability

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Hosting a holiday celebration? You could be liable…
One-third of homeowners fail to realize they can be found legally accountable if an intoxicated visitor causes a car crash, according to a study by the Independent Insurance Agents & Brokers of America.
Courts in many states will rule against hosts of holiday parties where alcohol is supplied to minors. Also, liquor must not be served recklessly to any guest who clearly has actually had too much to consume.
Normally, inebriated visitors can not effectively take legal action against celebration hosts. However 3rd parties victimized in alcohol-related mishaps can and do, specifically when the drunk driver has little or no insurance.
Inebriated driving claims can lead to monetary mess up to the party discovered liable. This past February, for example, a Colorado guy won an $18.5 million settlement after an intoxicated motorist ran him over in his own driveway.
Hosts likewise can be accountable for losses that happen at the party. Think about a minor guest who was served alcohol and whose cigarette sets a Christmas tree on fire. If the resulting blaze ruins surrounding homes, the Christmas party host can be held responsible.
Depending upon state social host liability laws, party hosts may be liable even when no alcohol is included.
A guest who falls on the front pathway of the host’s home can take legal action against the host. A costly claim also can result if partygoers become seriously ill after consuming food served at the celebration. Items on the host’s home, such as swimming pools, trampolines, weapon collections and pet canines, broaden the list of prospective charges.
Insurance for home celebrations
The initial step in preparing a holiday celebration is to verify that the host’s property owner’s insurance (or renter’s or condominium occupant’s insurance) policy offers enough coverage for party-related accidents. Hosts must guarantee there are no policy exemptions associated with serving alcohol.
Another study by the Independent Insurance Agents & Brokers of America exposes another major issue: two-thirds of tenants have no renter’s insurance at all.
After a careful assessment of the financial risks, holiday party hosts might choose to get an umbrella liability policy that offers much higher optimums than the underlying protection. For a fairly low premium, umbrella liability policies normally supply an extra $1 million or more of coverage.
Sufficient insurance can be a blessing for hosts who deal with damaging legal settlements.
Job-related vacation parties need to abide by stricter codes of conduct. Lawyer Russell J. Thomas explains that due to the fact that a vacation celebration is a company-sponsored event, “all legal requirements and all policies in the employer handbook continue to be in force.”.
The Insurance Journal reports a spike in sexual harassment claims instantly after the holiday season. Sustained by alcohol, offensive behavior at office parties can lead to problems– versus business and hosts– of a hostile workplace or of harassment.
According to the Independent Insurance Agents & Brokers of America, companies should:.
Guarantee their comprehensive basic liability (CGL) policies provide protection for third-party liquor liability through a special endorsement.
Purchase unique event protection or a separate alcohol liability policy before hosting a vacation office party.
Hosts holding vacation celebrations off-site ought to ask the place’s owner for copies of insurance certifications for alcohol liability.
Businesses likewise are qualified for million-dollar umbrella liability policies.
Substituting fun for alcohol.
Risk-averse party hosts may decide that legal obligations that go along with serving liquor are too difficult.
One option is to shift the focus of the vacation party far from alcohol by hiring improvisational comedians to emcee occasions. Other alcohol-free alternatives consist of inviting visitors to compete in interactive video games or take part in a motif night.
Celebration hosts likewise might want to change alcoholic beverages with a variety of exotic sodas with flavors such as cherry wine and citrus peppermint. Thanks to iii.org.