Avoid these 5 Mistakes when Buying Car Insurance

Ensure Your Special Items Receive Special Coverage

Even though your homeowners insurance allows you to pick an amount of coverage for personal property – your personal belongings inside the home – you may be surprised that your policy includes limits on certain items; most are higher-end items, such as cameras, electronic equipment, guns, and jewelry.

So, if you buy a policy with $50,000 in personal property coverage, there are still limits on what your insurer will pay to replace or repair these items. Often the limits read as, “$1,000 limit on jewelry” or “$500 limit on guns” or “$1,000 limit on computers.” So, if you experience a total loss and file a claim, your $50,000 in personal property coverage still only covers up to the policy’s limits on these specific items.

The peace-of-mind solution

Talk to your agent and make sure you feel comfortable with the policy you’re buying.

You should discuss with him or her additional riders that are available and describe or show any special items you own, such as collectibles, jewelry, or artwork. With some insurers, the rider can be added so you can obtain more coverage, or you can schedule the items at a stated value or appraisal cost. For special items, it may be best to buy a special policy, which is like a spin-off from a homeowners policy and provides coverage for just those items you choose.

Be aware that you’ll have to provide appraisals to ensure adequate coverage, and that you should always have your special items appraised regularly to maintain adequate coverage in the event the items increase in value.

What’s Ahead in Coffee Trends? Read the Grounds

cup If you can’t start your day without a cup of freshly brewed java, the National Coffee Association (NCA) is happy to hear it. They’re the folks who study coffee-drinking trends and report their findings to everyone in the industry – from growers to baristas.

According to Daily Coffee News, an NCA 2014 study found that “daily consumption of gourmet coffee among adults is up to 34 percent, a 3 percent rise over last year.” The report goes on to say, “Twenty-nine percent of respondents who drank coffee within the past day said they used a single-cup brewer, up nearly 50 percent from last year,” a statistic that bodes well for Bosch Tassimo, Keurig, Nespresso, and other coffee equipment manufacturers across the globe.

Apparently, coffee is hot news: There are coffee blogs, coffee magazines, and coffee books. Everyone has their favorite coffee house, and North America may even beat out Europe in celebrating coffee-drinking as a daily ritual.

But most notably, the latest medical studies now debunk the myths and promote the health benefits of the brew. The Caffeine Informer notes a Harvard University report confirming the results of the ground-breaking Framingham Heart Study. This study showed “no significant relationship between caffeine consumption and development of stroke or cardiovascular disease.” In fact, we learn that for most people, coffee is not only not unhealthy, it’s downright good for you – up to four cups a day.

Last year, coffee consumption moved from cultural phenomenon to health promoter. So what will 2015 bring? Read the grounds.

Size Matters When You’re Waist Watching

Jeans The secret to keeping next year’s resolution to eat better may not be the food in your refrigerator, but the refrigerator itself. When people keep more food in their homes, they’re likely to eat more. And refrigerator-freezers provide ample space to store those not-so-wholesome goodies.

According to a New York Times report, the average North American refrigerator has about a volume of 17.5 cubic feet (roughly 500 liters). But most current models have volumes of 25 cubic feet (roughly 700 liters). This doesn’t mean the people who have larger refrigerators are larger, notes author and professor Brian Wansink, who has written about the subtle things that affect people’s eating habits. But buyers should show caution when purchasing new kitchen appliances. Avoid models where the fridge and freezer compartments open side-by-side; they give a view of both healthy and unhealthy options. And most of us would pass up carrots for ice cream, given that choice.

One of the best suggestions may also be one of the most frugal: place clear containers or plastic bags of cut veggies and fruit slices on the refrigerator shelf; you won’t have to dig through the crisper for the good stuff.

Buying Car Insurance? Avoid These 5 Mistakes

When buying car insurance, many people think they know what they’re doing, but are unaware of some of the misconceptions they hold that may lead to some serious mistakes. This is particularly true when buying coverage without professional guidance. Your agent is a great resource in helping you avoid the following five common mistakes made when buying auto insurance.

Assuming state minimum liability limits are sufficient: Everyone likes to save money, but you need to balance that with ensuring you are getting adequate protection. State minimums are not enough. For the extra, say, $10 you save by paying only for state minimum coverage, you may risk being underinsured and facing $300,000 in out-of-pocket costs as a result.

Raising deductibles to $1,000 to save $10: Unless you’re a high-risk driver who is paying thousands of dollars for full coverage, increasing your deductibles – particularly comprehensive deductibles – won’t pay. Reserve that major choice in case you should have a major violation or a series of accidents and tickets.

Leaving out information about household drivers: Sometimes you just don’t think: You might believe you can save by not mentioning household drivers who would likely generate higher premiums. In fact, you’re actually opening yourself up to denied claims or a felony charge for insurance fraud.

Buying collision coverage for a 10-year-old car: Unless it’s a stated value classic or custom car, you don’t need to pay full coverage for damage to your vehicle. Effectively, you may be paying more in premiums than the car’s worth. The best rule of thumb: Once annual premiums for full coverage are over 10 percent of current value, drop your collision coverage.

Not insuring custom parts or modifications: If you’ve sunk $10,000 on rims, tinted windows, top-of-the-line stereo systems and chrome, you need to protect your investment. Some policies may cover up to $2,500 in custom parts, but that’s obviously insufficient.

Independent Contractors Risk All Without the Right Coverage

More companies are outsourcing jobs to freelancers or independent contractors (ICs). According to the Bureau of Labor statistics, the number of freelancers and ICs has grown dramatically in the last few years and is expected to continue rising.

Many freelancers and ICs themselves have failed to keep up with the times; these days you need commercial insurance more than ever, but few realize that without it, they’re setting themselves up for big risks. Contractors and freelancers essentially share the same risks as small businesses. Consider yourself a type of small business, and protect yourself as such.

As soon as you start freelancing or work as an IC, you need insurance. Essentially, every freelancer and independent contractor needs professional liability insurance, even sole proprietors, such as writers or accountants. Depending on your job, you may need other types of commercial insurance as well.

Freelancers and ICs are often considered experts. Most projects involve working for another business or individual, meaning that if a business loss results from a project done by an IC, he or she is financially liable for that loss and other resulting damages.

Several types of commercial liability policies are available for both ICs and freelancers, although what is needed depends on your line of work, job functions, and other factors (such as whether you see customers at your own place of business or drive a vehicle solely for work). These factors help determine what coverage is needed.

Types of insurance:

Professional Liability Insurance:
Often referred to as professional indemnity insurance, and sometimes as independent contractor liability insurance, this policy protects against possible claims from clients, such as a costly mistake that the contractor may be liable for. It provides liability coverage in different amounts, and helps cover costs of liability claims should the claimant prove contractor liability.
Product Liability Insurance:
If you create products or items others will use, purchasing product liability insurance is a must. For example, a freelance computer software consultant is hired by a company to build software programs for them. Shortly thereafter, the software crashes, deleting all the information in the company’s database and potentially leading to multiple lawsuits on a number of grounds.
Cyber Liability Insurance:
Cyber liability essentially provides protection against losses related to electronic storage – something not usually covered under regular commercial policies. This protects you if one of your clients and/or the client’s customers experience losses due to unintentional or purposeful negligence on your part.

For example, a freelance computer software developer builds a database for a company that stores sensitive, personal information on their customers. It’s hacked, and a customer’s identity is stolen. The customer could sue the company, and the company could, in turn, sue the freelancer for a number of things, such as loss of business, costs of obtaining new databases and security features, and more.

If you’re an IC or freelancer, discuss liability policies, as well as commercial auto insurance, physical premises liability, and other types of coverages with your agent, for your own peace of mind.

INSURANCE
Home Childcare Providers Need a Commercial Policy

In the U.S., there are more than 280,000 regulated “home daycares” (also known as “family daycares”) that are run out of residences. It seems that in-home daycare is a popular choice for parents . . . and a booming business. Whether you operate a daycare center or simply provide childcare for family or friends, if you receive compensation for it, the operation becomes commercial, with the attendant risks and legal concerns. All childcare providers are potential lawsuit targets, so at minimum, you’ll need liability protection. Here are some facts you should be aware of:

Homeowners insurance: As of 1991, homeowners insurance excludes liability protection related to home-based commercial activities. Furthermore, the majority of homeowners insurance policies specifically exclude liability coverage for claims arising from home childcare businesses. Homeowners insurance endorsements may provide limited protection, but few insurers offer it. When it is available, it’s often restricted, limiting you to the care of three or four.

Coverage: Business liability insurance is the best choice. There are a range of commercial childcare policies, many offering protection for professional liability claims, which homeowners insurance endorsements don’t cover. These policies differ greatly in coverage and exclusions. Usually, there are exclusions for claims dealing with the administration of medicine, field trips, transportation, pets, or “attractive nuisances,” such as pools or trampolines.

As for liability limits, you should have at least $1 million of coverage on a per-claim occurrence.

MARKETING
All You Need to go Viral is Good Timing and a Piano-Playing Cat

Piano Cat In planning a new ad campaign, you probably think its success depends on your content. So, whatever your product or service or cause, you get busy assembling the key points (aka: the content).

You choose content so strong and so persuasive that you know it will blow their socks off. You have it produced by a pro, and it’s great! But nothing happens. Nobody cares.

Wonder why your fabulous spot didn’t go viral?

Current research tells us that 60 percent of B2B businesses will increase their content marketing this year, and of those, only 6 percent will achieve 100,000 viewers. Fewer than 1 percent will reach a million. The reason is simple: Content isn’t engaging; emotional appeal is.

According to Lauren Covello, who wrote, “What the ALS Ice Bucket Challenge Can Teach us About Content Marketing,” we can learn three things from that spectacularly successful challenge:

“People like to interact with people, not organizations.”
“People are just as likely to act when you make them laugh.”
“The call to action is fun and free.”

As Veronica Maria Jarski, senior writer with MarketingProfs, notes in her infographic on going viral: “Content that arouses curiosity, amazement, astonishment, uncertainty, humor, and admiration has a greater chance of going viral. Negative emotions do not inspire sharing.”

Jarski suggests other things you can watch out for: timing the release of your video when people are looking for it (not on weekends), and ensuring it’s well designed.

So, in your next campaign, while you’re assembling content for a dynamite video you hope will reach millions, it might be smart to release your well-designed video on Wednesday and integrate the content with a sure winner…like a piano-playing cat.

ENTREPRENEURS
Multitasking. No One Likes it. Mistakes Happen. Why do it?

Juggler Society wants us to multitask. So we do. And no one multitasks like the average small business owner, not because it’s enjoyable or even because it’s something he or she excels at, but because – let’s face it – who else will?

Do we (and our companies) benefit from our multitasking? And does it matter?

It matters. A Huffington Post infographic entitled, “The High Cost of Multitasking,” suggests that multitaskers make up to 50 percent more errors: “According to 2013 estimates, trying to do too many things at once costs the global economy $450 billion annually.”

David Strayer, a University of Utah researcher into attention and performance, also found that multitasking leads to diminished performance. He postulated that the human brain is not wired to do two things at once.

Indeed, a recent New Yorker article reported that when Strayer and his colleagues observed thousands of drivers approaching a stop sign, they found that those using their cell phones were twice as likely to go through the stop.

Strayer wanted to know more, so he and Jason Watson, a cognitive neuroscientist, set up a series of experiments. For most subjects, the more tasks they had to complete, the worse the performance. With this exception…

Two percent of the population actually performed better when multitasking. Further testing demonstrated that the neural architecture of these “supertaskers” is simply different than the rest of us.

So, unless you are in that lucky 2 percent, stop trying to be all things to all people, and focus.

Car Repair Insurance or Extended Warranty?

Coverage Protects You Against Uninsured Drivers

Have you ever looked at your insurance policy and wondered what these two lines mean?

Uninsured/Underinsured Motorists Coverage Property Damage (UMPD/UIM-PD)
Uninsured/Underinsured Motorists Coverage Bodily Injury (UMBI/UIM-BI)

It’s not as it seems – you’re not paying for coverage for people who can’t afford it, you’re paying to protect yourself. UMBI pays for your injuries, and UMPD, for your vehicle’s damages if you’re involved in an accident with another driver who either doesn’t have insurance coverage or doesn’t carry sufficient insurance to pay for the damage. It also kicks in if he or she commits a hit-and-run. For example:

Jack doesn’t have insurance. He crashes into you, leaving you with $50,000 in medical bills and $15,000 in vehicle damages. Your policy’s UMBI/UMPD would pay for both, up to its UMBI/UMPD limits.

You live in Colorado, which requires $25,000 per person/$50,000 per accident in bodily injury coverage, and $15,000 in property damage liability. Jack only carries state minimum liability limits. He crashes into you, resulting in $50,000 in your medical bills and $20,000 in vehicle damage. His policy would pay $25,000 of your medical bills, $15,000 towards your car’s damage, and your UIM-PD/UIM-BI would pay the difference.

Always match UMBI/UMPD limits to your liability limits – don’t insure someone else for more (or less) than you insure yourself.

Your City at Night: Beautiful…But Scary

City You could think of it as an astronaut’s guide to correcting light pollution – as compiled by non-astronauts.

Since 2003, International Space Station crews have been taking photographs of the earth at night giving us a glimpse of our cities from space. Until now, these images have been scattered around the Internet. But according to a recent article in the Atlantic, a group of volunteers has now put many of them together on a searchable database.

At Cities at Night (www.citiesatnight.org), users can click on a map to find images of different cityscapes, as viewed from space. Envision your hometown beaming light into the universe. Many of the pictures are still unclassified, and viewers are asked to get involved by helping identify the cities in the photographs.

Cities at Night isn’t just about viewing your home from space. It’s about showing and learning about the effects of light pollution, which can cause health problems, disrupt ecosystems, and interfere with research into the hows and whys of our galaxy, among other things. Organizers hope to identify patterns in light pollution to motivate change.

This Month’s Smile: Burning Questions

Have you ever had a burning question and needed it answered now? It’s usually a simple question that few people want – or need – answered. Except you.

Take, for example, the pronunciation of the condiment, Worcestershire sauce.

Do you pronounce all the syllables, or is there another way? A right one? That’s easy: According to the Oxford Dictionary, it’s pronounced “wooster-sher” sauce.

But what about all those other burning questions, such as: “Is there a foolproof way to cure hiccups?”

Fortunately, some of these hot queries can be answered by experts, providing you’re a curious pre-teen. In Big Questions from Little People, children from four to 12 have some of their burning questions answered by a team of famous scientists. We all should be so lucky!

Car Repair Insurance or Extended Warranty?

There’s a saying that one can either make monthly payments on a new car, or pay an equivalent amount for repairs on an older vehicle. Often true. So if you’re buying a new car, you might be thinking about getting mechanical breakdown insurance or an extended warranty for repairs needed outside of car accidents. But which?

Both help cover vehicle repair costs and operate similarly, both require repairs to be carried out at one of several pre-authorized repair shops, and both offer plans with different coverage levels, addressing various parts and repair types.

But that’s where the similarity ends. If you’ve bought a new car and are considering which to buy, here’s how they differ.

Who offers coverage? Mechanical breakdown insurance is an actual insurance policy offered by insurers who specialize in auto insurance policies. Extended warranties are offered by auto manufacturers or independent companies.

When and where to buy: Mechanical breakdown insurance may be available through your regular auto insurer as well as dealerships and auto lenders. Often purchased for new vehicles, most policies won’t be needed until the bumper-to-bumper manufacturer warranty period is up. Therefore, it’s often wiser to buy coverage once the vehicle is nearing the end of its manufacturer warranty.

Extended warranties are typically bought through dealerships at the time of purchase, but again, they usually don’t become useful until the manufacturer’s warranty is up. Some dealerships may sell them after the time of purchase.

Costs: Like auto insurance, mechanical breakdown insurance is paid over a determined period of coverage time, such as six months, and can be renewed, providing you continue to pay the premiums. Payments are spread out, and coverage can be dropped any time.

Extended warranties are paid for upfront at a negotiable rate. The rate can also be included in car loans. This may spread out costs, but you’ll typically be paying interest for it.

The Five-Second Rules, and Liability Insurance Information

Eat and Enjoy: The Five-Second Rule Rules

You’re at the cafeteria about to take the last bite of your homemade chocolate chip muffin, but you drop it on the floor. Relax and enjoy: research out of UK-based Aston University supports the five-second rule, suggesting it may be okay for us to consume food that’s been dropped on the floor, providing it goes from floor to mouth in five seconds or less. Researchers tested a variety of foods and investigated the levels of bacteria contracted after 3 to 30 seconds on different types of flooring. The findings? Certain floors and certain types of food transfer bacteria more readily: Carpeting is least likely to pass on bacteria, and tiled surfaces, most likely. Not surprisingly, moist foods picked up more bacteria when they came in contact with the floor than their dry counterparts. If you picked up and ate that last piece of muffin, you’re not alone. The study found that 87 percent of people polled happily ate food they’d dropped on the floor. So, while science hasn’t necessarily proven the five-second rule is totally safe (the study still has to be peer-reviewed), it’s sounding good. But there is one exception: if your piece of muffin is covered in grime, skip that last mouthful and bake another batch.

This Month’s Smile: Signs

Signs can be a great source of humor, intended or unintended. Take these real signs posted by food-related businesses: One grocery store’s frozen food section is marked by this unusual sign: A hand-drawn picture of a grumpy cat and written underneath are the words: FROZEN…like my heart. You have to feel for the Japanese restaurant with violent customers. Their sign warns: No matter how angry you are, no flicking (sic) over tables. One Italian restaurant sold out to an esthetics clinic, which didn’t bother with a new sign. The clinic just added to the restaurant’s sign its own specialty, Laser Fat Removal. Too bad they didn’t partner up. Another had a sign outside with a mention of the day’s special: Soup of the Day: The Tears of Our Enemies. Yum!

Vacant Land Needs Liability Insurance, Too

If you own vacant land, you may assume it doesn’t need insurance, but unfortunately, that’s not true. Vacant land can be a breeding ground for liability lawsuits. You’re responsible for what happens on your property, meaning any accidents to others could cause you big headaches. Although you’re not legally required to carry vacant land insurance, doing so will protect your other assets. If someone is hurt on your property, you could be sued. Vacant land insurance will help pay for injured parties’ medical expenses, legal expenses, and certain types of property damage.

Why do I need vacant land insurance? If you suspect trespassers may be using your land, you probably need it; if you permit people to use your land, and they pay you for the privilege, you’re liable for anything that may happen to them. Even if they don’t pay, you’re liable, but not to the same extent.

What can happen?

Hunters and fishermen pose heightened risks of injuries or fatal wounds. Even when it’s something that could be considered their fault, such as falling into a creek.
ATV accidents: There were 1,701 ATV rider deaths during a five-year study, conducted by The Insurance Institute for Highway Safety in 2013. One could have been on your land.
Hikers unfamiliar with the terrain can be injured, with resulting liability claims.

Protect your assets

Insuring land isn’t difficult, and it’s reasonably priced, especially if it’s an extension of homeowners or farmers liability policies. However, you may also need umbrella insurance, which will add liability coverage from $1 million to $5 million. If a lawsuit maxes out a homeowners or farmers policy liability limits, this coverage kicks in. To decide if you need vacant land insurance, consider your land’s current use and assess possible risks. Also, know your state’s landowner laws. Your agent will help you determine if and what coverage you may need.

What are Surety Bonds, and Do You Need Them?

What Are Surety Bonds, and Do You Need Them?

We often see the phrase “bonded and insured”, but what exactly does it mean? This refers to the process of bonding through surety bonds. Although they are a form of commercial insurance at their core, surety bonds work slightly differently: Generally speaking, they play a different role and fulfil a different objective than other insurance policies by financially guaranteeing that a contract will be fulfilled as originally agreed to by the parties to the contract. Person(s) bonded will:

remain compliant with a law, regulation, or contract;
be honest and forthright;
act with integrity;
be financially responsible.

Here are three important bond categories:

Commercial surety bonds: Permit, notary, public official, and license bonds are required by law for certain types of companies.

Fidelity bonds: If you own a business, this helps protect you and your clients/customers from employee theft or any act deemed dishonest that results in a financial loss. For example, if a contractor’s employee steals some of a customer’s belongings while on the job, a fidelity bond would cover his and his customer’s losses.

Contract surety bonds: If you’re a contractor, you may need one or more contract surety bonds (which include performance bonds, bid bonds, payment bonds and maintenance bonds). These bond types guarantee that the contractor will honor contract terms, such as what supplies he or she provides, the price for the job, and the work to be performed.

HOT BIZ TOPICS

Real-Time Marketing: A New Level of Customer Interaction

Marketing is usually described as what you say (and how you say it) to convince somebody that your product or service is worth buying. But real-time marketing is something else again. And ad agencies, digital marketers, and PR firms are scrambling to get in on the act, because, apparently, it pays off big time. So, what is it? Real-time marketing is the act of determining what a potential buyer wants right this minute – and pitching it – now! It can range from smartphone coupons to online popup ads and more, all tailored to meeting customers’ immediate needs. A survey by real-time marketing solutions company Evergage found that 76 percent of marketers described it as “personalized content or creative in response to customer interactions.” And some 88 percent of those surveyed noted it is an important component of their 2014 marketing programs. Why? It works. The Evergage study found that “among the marketers that measure the ROI of their real-time marketing, a quarter sees returns of more than 50 percent and nearly as many sees 75 percent ROI.” It’s all about monitoring those customer interactions, and not necessarily through social media. According to a post in iMedia Connection, Evergage CMO Arthur Sweetser notes: “Real-time marketing has grown beyond social media.” Interestingly, the late twentieth-century business guru Peter Drucker may well have been talking about real-time marketing when he said, “The aim of marketing is to know and understand the customer so well [that] the product or service fits him and sells itself.”

MARKETING

Young Entrepreneurs Teach Marketers to Use Social Media

Today’s teenagers spend a lot of time tweeting, Facebooking, and otherwise engaging via social media. A Pew Internet report (2013) on American teens’ usage of the Internet found that:

95% of teens (12-17 years) use the Internet.
Roughly 80% of teens use some form of social media.
77% of online teens use Facebook.
24% of online teens use Twitter (versus 16% of adults).

According to the Pew study, many users, particularly girls and older teens, visit social networking sites several times a day. They frequently use multiple platforms, including Facebook, Twitter, Instagram, YouTube, Tumblr, Google Plus, Pinterest, Snapchat, Vine, and others for a variety of purposes. Now some enterprising young entrepreneurs have figured out how to capitalize on their own knowledge, experience, and skill in using social media to help businesses define and execute their social media marketing strategies. Fifteen-year-old Lane Sutton, for example, consults with a number of small businesses and has been featured on CNN, Forbes, the Wall Street Journal, Adweek, Fox Business and other media outlets. Sutton, who began social media consulting at 13, advises clients to use social media as an engagement and conversation channel and emphasizes inbound marketing strategies that personalize and humanize marketing efforts. Another company, the Dash Agency, was founded by high school friends Christian Lunny and David Bell. These two teens help companies tailor their marketing messages through Facebook, Instagram, Twitter, Snapchat, and more. They’ve worked with established companies such as Aveda Canada and the Boyd Group, as well as startups and solopreneurs. Now that social media has become embedded in the marketing mix of most organizations, young entrepreneurs are showing even seasoned marketing professionals just how to maximize its power and potential.

INSURANCE

At Risk of Liability Lawsuits? You Need This

If you’re a business owner, you likely already know the value of liability insurance, because – unfortunately – you’re probably a target for lawsuits. This is crucial considering the litigious society we live in; more than 15 million civil lawsuits are filed annually, and one of three small business owners have been sued or threatened with lawsuits. So how do you prepare for a time when you may be on the receiving end of a lawsuit?

Excess liability insurance

You obviously need commercial insurance coverage. However, to be truly prepared, there’s another policy you also may need – excess liability coverage, or “umbrella liability.” It offers $1 to $5 million – sometimes $10 million – of liability coverage in addition to the liability limits of your existing commercial insurance policies (including general, professional, and employers’ liability, as well as hired or non-owned commercial auto liability.)

Aren’t my commercial liability limits sufficient?

First, liability limits of those policies may have exclusions, so certain claims may not be covered. Excess liability insurance may help fill those gaps, but more importantly, this policy extends liability coverage from existing commercial policies is usually grossly inadequate when compared to the current costs of commercial lawsuits, claims, and judgments. One claim (and the legal fees) can put your business into bankruptcy unless you have very deep pockets. Excess liability could save your business should you exhaust the limits on your other commercial policies. Granted, not all lawsuits ask for millions of dollars; the numbers depend on the business type and claim. But here’s one liability lawsuit scenario that could apply to most small businesses: Say the court awards $1.5 million in damages to the claimant. However, your professional liability has a $1 million limit. Excess liability would kick in and pay the remaining $500,000.

Games Can Change Your Commute from Boring to Brilliant, plus Auto Liability Information

Three Insurance Mistakes You REALLY Don’t Want to Make

Sometimes we make mistakes because we don’t know and don’t ask. This is often the case with insurance, so here are three important general insurance mistakes to avoid: Not carrying the right policy: Just because you can buy a certain type of policy doesn’t mean it’s the best fit for what you want to insure, even if it is cheaper. For example, standard auto insurance is cheaper than collector car insurance, so many people insure their valuable collector cars with standard auto insurance, just as they would any other car. In fact, collector cars should be insured on an agreed-value or stated-value basis. They present different risks than other cars, so a standard policy may be insufficient or not even cover a claim. Discuss what you want to insure and the kind of protection you want with your insurance agent. Failing to read your policy: Insurance policies can be a bit long-winded, but read them to understand what protection you have – or don’t have. Failing to do this can be devastating. For example, a large number of homeowners whose homes were completely destroyed in Hurricane Katrina learned – after the storm – that homeowners insurance doesn’t cover flood damage. Leaving coverage gaps: Learn exactly how your policy works. Take homeowners insurance, for example. There’s quite a gap between insuring your home at replacement cost versus its market or appraised values. If you know how the policy works, you won’t be left with a gap, nor will you pay for more insurance than you need.

Games Can Change Your Commute from Boring to Brilliant

There are many millions of commuters across North America – 128.3 million in the US alone. They commute by train, subway, bus, bicycle, car…and nearly every one of them hates it. The global average commute is 40 minutes. According to research, a commute of more than 30 minutes diminishes life satisfaction and may spike blood pressure. In other words, the average commuter isn’t healthy…or wasn’t. Now that interactive gaming has arrived, the trip seems faster, blood pressure is stable, and anxiety reduced. Commuters are actually having fun on that used-to-be-awful ride to work. However, as mashable.com reports, there are two problems facing commuting gamers: First, many modes of transport don’t have Internet access, so your Angry Birds Season 2014 won’t work on your train commute. Second, you should be able to play your favorite game with one hand while holding the safety strap with the other. The digital game, Cart-Load-O-Fun (CLOF), has the second issue covered. A research project developed in Exertion Labs at the University of Melbourne, Australia, CLOF can be installed on buses, trams, or trains. Two players work together to move a dot around a laptop screen by manipulating pads fixed to safety straps. In the YouTube demo, passengers loved it! While CLOF isn’t for drivers, they and their passengers can still have fun (and be safe) on their commute with Licence Plate Poker, Dashboard Scrabble and more. Check out the oldie-but-goodie website, thefuntimesguide.com, for games drivers can play. And don’t suffer through your commute. Play something!

This Month’s Smile: Teenage Angst

The teenage years are described as “that awkward moment between your birth and your death.” Or maybe more…

Teenage Angst #5004: Not paying attention. With dire consequences. Like the 9th grader who accidentally transcribed a conversation with her best friend about a boy she liked into the school newspaper’s horoscope section.

Teenage Angst #387: Communication failure. Example: the boy who finally decides to confess his undying love to his secret crush but slipped the note into the wrong locker.

Teenage Angst # 4: Domestic miscommunication: “My parents say it’s their house, but when it’s time to clean, it magically becomes my house too.” Ah, those awkward but instructive moments!

Do You Have Enough Auto Liability Coverage?

When buying auto insurance, you may be tempted to opt for the liability limits your state legally requires you to carry, and pay lower premiums. However, this can be a dangerous decision. If you’re at fault for an accident, the liability portion of your policy would pay for two things:

Bodily injury liability would pay for another person’s medical expenses.
Property damage liability would pay for damage you cause to another person’s property.

If damages and medical expenses exceed the policy’s limits, you’re responsible for them out-of-pocket. If you can’t pay out-of-pocket, you could be sued, and if found liable by courts, your assets could be seized or wages garnisheed. According to the AAA, the average auto accident costs roughly $26,000. In some states, required liability limits would barely begin to cover the costs of repairing or replacing vehicles, other property damage, or medical expenses. For example, Ohio only requires $12,500 in bodily injury coverage and $7,500 in property damage protection. If you plow into a Porsche with two people inside who require emergency medical care, you could end up paying hundreds of thousands of dollars from your own pocket because of insufficient coverage. Carry at least $50,000/$100,000 in bodily injury liability (limit per person/limit per accident respectively), and $25,000 in property damage. If that’s too costly, carry $25,000/$25,000 plus $25,000 for six months to a year, and step it up the following year. You’re unlikely to see skyrocketing rates, because you’re establishing “financial responsibility” as a policyholder, meaning cheaper rates in the long run – another reason minimum coverage isn’t really the cheapest. Carrying state minimum liability simply means you’re legal to be on the road – it doesn’t mean you have sufficient protection. Talk with your insurance agent to find a coverage you feel adequately protects you. Then be confident that your financial future is secure – at least insurance-wise.

Recipe: Coconut Braised Spinach and Chickpeas Serves 4

1 tablespoon oil
1 small onion, chopped
4 cloves garlic, peeled and minced
1/2 cup seeded and chopped red bell pepper
1 large lemon, zest and juice
15-ounce can chickpeas, drained
1 pound baby spinach
15-ounce can coconut milk
2 teaspoons salt
2 teaspoons ground ginger

Directions

Heat oil in a large, heavy pot over medium-high heat. Add onion and cook until it begins to brown – about 5 minutes. Add garlic, pepper and lemon zest and stir for another 3 minutes. Add chickpeas and cook over high heat for a few minutes until everything is coated with the onion and garlic mixture. Add spinach in several batches until all is included and wilted. Add coconut milk, salt, ginger, and lemon juice. Lower heat, cover, and cook for 10 minutes or until everything is warmed through. If needed, add more salt and lemon juice.

The Art and Science of Being a Great Salesman, and Professional Liability Information

INSURANCE
Common FAQs About Commercial Insurance

Running your own business can be challenging, and you likely have many questions about all aspects of it, including commercial insurance. Here are some common FAQs about commercial insurance:

What is professional liability insurance?

This coverage provides liability protection for claims made against your services or products, such as failing to perform work or causing losses as a result of mistakes in these services or products.

Are employees’ personal autos covered under commercial auto insurance policies when they use their cars for business?

Usually a company’s commercial auto insurance includes an endorsement that covers employees using their private vehicles for business. However, the employee’s personal policy would still be the primary insurer and would pay for any damage to an employee’s auto, even when it’s used for business purposes. The endorsement would apply only after the personal coverage is used up.

When should you buy workers compensation insurance?

Most state laws require businesses to carry workers compensation if there’s more than one employee. This varies from state to state, so ask your insurance agent.

What coverage is needed for home-based businesses?

Homeowners insurance usually doesn’t cover home-based business losses. Sometimes commercial insurance can be added onto homeowners insurance, but coverage may be insufficient. Consider a business-owners policy, which covers liability for yourself, employees, buildings, and more.

HOT BIZ TOPICS
The Art and Science of Being a Great Salesman

Science A lot has been written about how to sell, and a lot of trainers have made a lot of money helping people do just that. But to be successful in selling, you have to pair the art of communication with the science of psychology.

A recent article in Inc. by Steve Cody, who co-founded Peppercomm, a strategic communications firm, breaks down what any individual needs to turn great products into a sales win.

Entitled, “Tips From the Best Salespeople I’ve Ever Met,” the article underscores listening as a pivotal skill. Cody notes that his “uber-sales” people “don’t utter a sound until they’ve processed exactly what they’ve seen and heard.”

Processing the signs your client is sending out involves knowing how to read people. Dr. Paul Ekman, an American psychologist and pioneer in the study of body language and micro expressions, has revolutionized how we read people.

Ekman believes that most people tell you exactly what they think through the tiniest changes in their expressions – each change can tell you exactly what the person is thinking, often before they’ve even realized it themselves.

Although they work in different industries, Cody’s three top salespeople appear to be intuitively connected to Ekman’s research. For them – and Cody himself – selling is done one-on-one, probably not by email, or even phone, although sometimes it will have to do.

To them, it’s not until you make eye contact that you can really tell what the client wants and how you can sell to him or her based on that.

MARKETING
How to Avoid ‘Survey Fatigue’ and Gain Valuable Feedback

Yawn Many consumers have become jaded about customer response surveys – call it “survey fatigue.” They have come to the conclusion surveys are a waste of their time and that, in most cases, the survey taker will not follow up and doesn’t really care about their opinions anyhow.

How can you solicit feedback from your customers without hitting their survey fatigue buttons? Here are some tips for surveying your customers effectively:

Make your surveys short and to the point. Focus the questions on areas that you know need attention.
Don’t ask vague or general questions. Use direct, clear, concise language that leaves no room for misunderstanding.
Do not ask questions filled with jargon, technical language, or double-speak.
If you solicit feedback via social media, be timely in responding to the comments you receive.
Make sure the “contact us” or feedback page of your website works. Check for comments frequently.
If you use written comment cards or survey forms, consider them as part of the customer experience. Make sure they are free of spelling and grammar errors.
Explain why you want feedback and what you will do with the input you receive.
Thank your customers and assure them that you value their opinions.
Don’t over-survey; that will hasten survey fatigue. If you send out too many surveys too close together, you also may find you haven’t got sufficient resources to follow through on what you’ve learned.

Customer surveys can help you understand the drivers of customer satisfaction and cement customer loyalty. They can aid in spotting trends and identify areas of weakness. And finally, instead of being upset about a complaint, consider it a gift that tells you where to focus your efforts to improve.

INSURANCE
Do You Need Equipment Breakdown Insurance?

As a savvy business owner, there’s no doubt that you’ve looked into basic commercial insurance coverage and its cost. So you may recognize the two most common business insurance policies: general liability and property damage.

Depending on the type of business you own, there’s one important thing you may have missed in reviewing the options available. That is, unless your electrical and/or mechanical equipment is damaged by one of the general perils specifically listed on your property damage policy, you won’t be covered if you have to replace or repair it.

A few examples of commonly covered perils are events such as fire, wind, hail, smoke, and civil unrest. However, the average policy usually doesn’t include any coverage for mechanical breakdown. And not having the proper endorsement to properly protect your equipment could shut down your business for days or weeks, during which time your income and profits could all but cease.

Who needs it?

If the extent of your business’s equipment is a small cash register and a phone, and/or if you rent a space where the owner provides maintenance, heat, and air, you may find that you’re not going to need mechanical breakdown coverage as an essential part of your commercial insurance coverage, providing, of course, you have saved up the money towards replacing or repairing your cash register and phone in the event of a non-covered loss.

Those business owners who should be especially concerned about equipment breakdown coverage are companies that have any or all of the following: manufacturing equipment; more than one computer; refrigeration; boiler systems; cooking equipment; generators; motors; fire and security systems.

Equipment breakdown coverage is important whether you own or lease the equipment. To protect themselves, leasing companies will often require you to carry this protection, not unlike an auto lender that insists you carry comprehensive and collision coverage on your auto insurance policy when you’re financing a car.

What’s covered?

This policy will cover labor and other costs of repairing equipment, not just replacing it. There are other residual losses that may occur due to the breakdown that are also covered. For example, if you own a restaurant and your freezer breaks, causing you to lose thousands of dollars’ worth of frozen food, that would be covered.

Clean-up services may also be covered if the breakdown causes a mess. One of its greatest benefits is that it will also cover any loss of business you experience while getting the equipment repaired or replaced.

Some insurance companies will offer equipment breakdown as a separate policy, or it can be added as an endorsement – a special addition – to your existing commercial insurance policy.

Ask your insurance professional if there are differences in the coverage limits and options, so you can make a well-informed decision about which option would be better for you.

Prepare and protect the flow of your business to ensure minimal interruption if something or, as sometimes happens, everything breaks down. Your business account (and your personal checking account) will thank you.

Want Lower Premiums? Look to Your Own Insurance Agent

Want Lower Premiums? Look to Your Own Agent

When searching for ways to lower insurance premiums, you don’t have to look very far. By going over your policy and goals with your agent, you can find ways to save on your current policy. Here are three ways to get lower rates on your current policy.

Cut extra fees Ask if you’re paying extra for such conveniences as monthly installment fees. If you pay your premium monthly, virtually every insurance carrier will charge you an installment fee of up to $5 a month. By paying your premiums in full, or as much as possible over a couple of months, installment fees will be lower or removed completely (when paid in full). Setting up an electronic funds transfer (EFT) from your bank account can reduce or eliminate fees as well. Some carriers also provide “paperless discounts,” easily obtained by agreeing to have all your policy documents sent electronically.

Improve your credit Credit ratings are significant factors when calculating premiums. Some companies have become so strict with this they’ll sometimes refuse to write a policy for someone with poor credit, and existing policyholders may see premium increases at renewal or even policy cancellation notices for a worsened credit rating. The takeaway: improving your credit can help lower your rate.

Avoid making small claims You don’t necessarily have to make a claim for minor damage. For example, if your rear-view mirror breaks, instead of filing a comprehensive claim, you could absorb the cost yourself. Most claims, regardless of size, will affect premiums for three to five years, and claims history plays a big role in premium calculations. As well, once you’ve paid the deductible, you may end up paying more in higher premiums than by covering it yourself.

Go For the Win-Win By working with your current insurance professional, you can avoid the disruption and frustration of looking around and reduce your premiums – a win-win.

This Month’s Smile: Medical Miscommunication

They say laughter is the best medicine, and sometimes that comes from innocent medical miscommunication. Take, for instance, the elderly woman whose allergies were printed on her medical wristband. Later that day, the woman’s son called and complained that his mother had been labelled “bananas.” Nurses face another sort of communication problem: Excuses from patients and colleagues. The most common excuse for missing a long-postponed appointment is a grandmother’s death. As one nurse confided, “This was (the patient’s) sixth grandmother to die within two months.” Interestingly, they also hear an equal number of excuses from doctors, who are usually stuck “on a boat” in the middle of nowhere and therefore can’t make rounds.

Protect Your Child from Hazards in the Kitchen

If you have toddlers, it’s hard to imagine a more dangerous area of your home than the kitchen. Knives, stovetops, and potential toxins all pose hazards to your kids, who can and will want to touch. If you have a small child entering a particularly “grabby” phase, try these tips to childproof your kitchen.

Move things out of reach Cleaning supplies, glassware, and knives should all be stored where small children can’t reach or climb to them. Don’t leave glasses on counters where they can be knocked over; store bleach and other household cleaners in a locked cabinet, and leave knives in a drawer that can be locked.

Cover knobs and outlets Kids can easily stand on tippy-toe to turn oven knobs and dials, or sit on the ground and play with electrical outlets. Purchase plastic knob and outlet covers to prevent disasters.

Lock the fridge A curious little one may be inclined to open the fridge to root around for a snack. Protect their tummies, your food, and the floor by using a fridge guard to keep it closed when you’re not looking.

Ditch the linens Tablecloths and runners are just begging to be yanked by a chubby little hand. Get rid of them entirely to protect your child’s head (plus your nice dishes and glassware).

Change habits Not every safety tip is a matter of hiding, installing, or removing; being mindful of your own behavior in the kitchen is important. Use the dishwasher at night while children are asleep, so they won’t unlock the door and scald themselves.

Give them Alternatives Take pressure off yourself and your little ones by giving them something to play with when you’re in the kitchen. Why not store your plastic storage bins and containers in a low unlocked cabinet? They’ll spend hours building and knocking down the containers. And avoid other, more dangerous, playthings.

How to Save Money on Auto Insurance by Driving Less

Auto insurance. Repair. Maintenance. Taxes. Gas: Owning a car is expensive. Carpooling, using public transportation, walking, or biking can help save money. But if you don’t have those options, rarely drive, and want to save money, then what? If you work from home, are retired, only drive occasionally, or have one pleasure vehicle you only take out on weekends, your best bet is still auto insurance. How is that possible? Ask your agent about the following options:

“Pay-as-you-drive” (PAYD) policies Many insurers now offer PAYD policies. This involves the addition of a device, easily installed below your steering wheel, that records how much you drive, when and where you drive, and your driving habits, such as the way you brake and accelerate. The insurance carrier calculates an amount monthly, and you simply pay for what you use. Even if you don’t like feeling as though you’re being “tracked,” consider the savings – some see premium reductions of up to 30 percent.

How is your vehicles rated? On your insurance policy, your vehicle will be rated as “pleasure” or “work.” If you commute daily to work or school, your vehicle will be rated as “work”. If you’re retired, work from home, or drive only on weekends, it should be rated as a “pleasure” vehicle. If your car has been rated as work and is now pleasure, there could be a fairly significant drop in premiums, since the likelihood of having an accident is reduced when you spend less time on the road. Check it out.

Your Credit Rating Can Affect Your Insurance Premiums

Your Credit Rating Can Affect Your Premiums

What factors do you believe determine insurance rates? If your answer is: At-fault accidents, violations, where you live, property value, and what you drive, you’re right.

You’d also be right if you mentioned other factors such as age, experience, claims history, and prior insurance coverage. But here’s one you may not have guessed: Your credit history. And this is something – unlike age – that you can control.

The credit link

Research firms have found a link between bad credit and increased claim-filing. They also found that individuals with better credit have fewer traffic violations and accidents than those with bad credit.

After looking at data from roughly 1.4 million policies, the Federal Trade Commission (FTC) found insurers paid out almost twice as much for claims made by those with poor credit compared to people with higher scores.

The FTC said that credit scores are predictive of the number and cost of claims filed, and are effective at assessing risk and rates.

Good credit equals lower risk

Customers who pose less risk in all the factors used to calculate premium rates pay lower premiums. The corollary is that high-risk customers pay higher rates. The “credit” factor is similar to any other factor, such as make of car, at-fault accidents, your neighborhood, and your claims history. It will impact your rate.

While it’s unlikely you’ll start making financial decisions based on how they might affect your insurance premiums, it’s important to know how insurance companies establish premium rates.

What you can do

Understanding why credit affects rates can make you more aware of those things that affect your credit score – missed payments, high credit card debt, and even closing a credit card or an account. Controlling these factors can make a difference.

Make your good credit work for you. Not just when you apply for a mortgage, but also when you purchase homeowners insurance.

The Basics of Insuring Your Collector Car

When you begin shopping for collector car insurance, ensure you familiarize yourself with the different coverage types available and the eligibility guidelines. Below is information on the coverage available for your collector car and eligibility guidelines. Ask your insurance professional for details and advice on the best type for you and your car.

Actual cash value: Similar to standard auto insurance, unless you can prove it is an “exception” to depreciation, you’ll receive whatever it would cost to replace the car, less depreciation. If the car is totaled, the most you can hope for is what you paid for it. With actual cash value, you can choose your comprehensive and collision deductibles.

Stated value: The insurer will pay the insurance value you’ve put on it. You’ll need to prove via appraisals that the car is worth your stated amount. This may sound easy and as though it’s the best option, but most insurers won’t agree to full-stated value coverage, and it generally carries a $1,000 deductible.

Agreed value: This is the most common coverage type for collector cars, and refers to values you and your insurer agree upon. There usually isn’t a deductible.

Eligibility: Rating factors used to assess eligibility are those used in standard policies, but some factors are weighted more heavily when applied to antique car insurance. Some policies have monthly mileage limitations, normally about 250 miles. If you drive the vehicle only a couple times a year, or to parades or shows, ask for a lower mileage limit. It may mean a cheaper premium.

For affordable premiums and to maintain eligibility, you need to

maintain a good driving record
show a 10-year driving history
not include on your policy teenage drivers or drivers with poor records
ensure the vehicle is in a safe place – preferably in a locked area – and parked off-street
prove another car is used for daily transportation.

Recipe: Picanha (Brazilian Tri-tip Barbecue)

Serves 4 to 6

1 tri-tip roast, about 3-4 pounds
5 cloves garlic, crushed
1/2 cup coarse or rock salt
1/4 cup olive oil

Directions

If you can’t find tri-tip, look for top sirloin cap. Trim excess fat off the meat. One side will generally be covered in a layer of fat; do not remove it, just trim it down to about 1/8″. Mix the salt and garlic together to make a paste and rub it all over the meat, adding a little olive oil if needed to help it stick. Leave the meat to marinate for at least two hours, turning it occasionally.

Heat the barbecue to the highest setting. When ready to cook, scrape excess salt off the meat and place on hot grill, fat side up. Do not turn over until the first side is nearly burnt. Turn once and check doneness with a meat thermometer; medium should take about 35 to 45 minutes, depending on the meat’s thickness.

Remove from grill and rest five minutes before carving.

Term Life Insurance, Is It Right for You?

Term Life Insurance, Is It Right for You?

Many of us think of life insurance as something that will last for the rest of our lives – but that’s not always the case.
So-called “whole” life insurance policies do stay in effect for your lifetime, providing you continue to pay the premiums.

“Term” life insurance, on the other hand, provides coverage for a limited period of time or “term,” and the length of the term is up to you. For example, if you choose a 10-year-term, the insurance company would pay your beneficiary a death benefit if you die within the next 10 years.

Why consider term life instead of whole life insurance? Term life might be appropriate if, for example, one or more of your dependents doesn’t rely on you financially.

In this situation, you may want to have coverage for your minor children only, as your spouse is not now dependent on you financially and will be able to care for himself or herself if you die. Coverage for your children may last until they’re grown, if you choose.

Term life insurance is usually the least expensive way to purchase a substantial death benefit, so if you are in this situation, purchasing term life may be the solution for you.

A few caveats: Term life insurance generally cannot be used for estate-planning or charitable-giving strategies, as other types of life insurance can.

There may also be issues with re-insurability. Say, for example, that you acquire a terminal illness during the term of the policy. If you want to continue holding life insurance when the term expires, you likely wouldn’t be able to do so. However, some policies offer a feature called guaranteed re-insurability to address this.

There are many other factors to take into account when buying life insurance, such as how much life insurance to buy. Your advisor can help you make those determinations.

This Month’s Smile: ‘Your Child Said What…?’
Kids are a delightful reminder that the world is actually a big brightly colored circus. Here are some great online examples of the fun things they say:

They’re usually full of questions, but then there’s the one who just thinks and thinks…then asks. Like the 4-year-old who overheard her teacher mention kickboxing. Weeks later, out of the blue, she asked why her teacher “kicks boxes.”

The little girl was diligently pounding away on her grandfather’s computer, lost in story writing. When he asked what it was about, she answered: “I don’t know. I can’t read.”

Some kids may have a better grasp on reality than the rest of us. For example, young Frankie answered the question of how he earns money at home by saying: “I don’t. I’m a freeloader.”

Five Tips to Help You Create Your Own Outdoor Kitchen

Dining al fresco is one of summer’s greatest pleasures. But it can be hard to pull off a great outdoor dining experience without the proper setup. Enter the outdoor kitchen. Interested in creating your own? Check out these tips:

Constructing your own island or grill area with stone can get expensive, plus it can’t be easily moved. Keep costs low and set up easy with a pre-fabricated counter or grill space. Pre-fab options are often on wheels, making them easy to move, and can be purchased with built-in sinks and lighting.
Keep durability in mind. Your outdoor kitchen furniture and appliances will be exposed to the elements; choose resistant, reliable materials and treat them as recommended. Remember that the space will be exposed to cooking oils and high temperatures, so any materials used in the area will need to be heat resistant and easy to clean.
Setup is important – don’t site your outdoor cooking space too far from where you plan to put the dining area. Also, consider the proximity of the outdoor kitchen to the indoor one; you’ll need to move things from one space to the other, so make sure there’s a clear path.
Plan to cook and dine, rain or shine? Make sure you incorporate a rain shelter.
Grow as you go. Plants, flowers, and decor can be added on an ongoing basis. Make sure the essentials are in place before emptying your wallet on extras.

Confused About ACA Penalties? This Primer May Help You

The Affordable Care Act (ACA) is confusing for many, and the penalties associated with it are no exception.

Will you have to pay penalties? If you and your dependents don’t have minimum essential coverage that meets the ACA’s individual requirement, there are several groups and categories that are exempt, including:

those who have coverage through their employers and those who purchased coverage by the ACA deadline;
those who found the cheapest plan available to them was over 8 percent of their income, those with annual household incomes below $10,150 and/or those who face other economic hardships;
Native Americans and non-US citizens;
Federally recognized religious groups whose religious beliefs clash with ACA provisions;
members of federally recognized healthcare sharing ministries.

Those subject to penalties include: Individuals who go three consecutive months without coverage; as well as those who only have insurance for part of the year.

How much are the penalties? In 2014, without coverage, you owe the highest of the following: 1 percent of annual household income; or $95 per uninsured adult annually, $47.50 for children under 18, and up to the maximum of $285 for families. If you don’t pay, the ACA doesn’t include measures for penalty collection, so the IRS can’t press criminal charges or get property liens.

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