Essential Insurance Coverage For Online Businesses

Insurance is low on the list of priorities for many online businesses – and this could be a mistake. The truth is, online businesses face unique threats that could lead to loss of income, or the loss of the business itself. If you own an online business, purchasing an insurance policy to provide protection against common risks just makes good business sense.

What Threats Do Internet Businesses Face?

Online businesses face risk of loss related to a variety of factors, including:

Internet connection loss because of weather, fire, or vandalism
Hackers and cyber theft
Computer viruses
Privacy of customer information
Copyright violations
Breach of contract allegations
Product liability
Suspension from an e-commerce platform

What Types of Insurance Does an Online Business Need?

The types of insurance your online business needs can depend on the size of your business and whether you have employees. Recommended coverage for an internet business may include:

Cyber liability insurance: This coverage can protect your business in case of a data breach, whether the information is stolen or leaked. Many cyber liability insurance policies will cover business interruption, computer restoration, ransomware expenses, public relations, and legal fees related to a data breach.
Commercial general liability insurance: This insurance helps protect your business from third-party liability for property damage or personal injury on your business premises, and from liability for injury caused by any product your business sells. Amazon and other e-commerce platforms require businesses that sell through them to carry commercial general liability coverage.
Seller suspension insurance: If your online business operates by selling through an e-platform such as Amazon, you are probably aware that your account could be suspended at any time, at the discretion of the platform. Even if you appeal the suspension and win, your business could come to a halt for weeks or even months, causing a significant loss of income. Seller suspension insurance could help cover your losses and expenses involved in getting your account reinstated.
Chargeback insurance: This coverage is designed specifically for retailers who are paid primarily with credit or debit cards. It protects your business from loss in case of charges made with stolen cards or counterfeit card numbers.
Workers’ compensation insurance: If you have employees, you need a workers’ compensation policy in case of a work-related accident or illness. Workers’ comp will cover an injured employee’s medical expenses and lost wages from time away from work. It also helps protect your business from potential injury lawsuits filed by employees.
Employment practices liability insurance: We live in a litigious society. Employees file lawsuits against employers in high numbers in the USA, alleging discrimination, harassment, wrongful termination, and other employment practices claims. If your online business has employees, you should consider purchasing employment practices liability insurance to protect your enterprise against these claims.

Each online business is unique. Our experienced agent will be happy to advise you on the types of business insurance to purchase based on the risks you are facing. We can also help you obtain the coverage your business needs at the best available rates.

Preparing Your Home For The New Year

With all the holiday activities coming to an end, the New Year is a great time to give your home a fresh start. These tips can help you get your home clean, organized, and prepared for the winter months ahead.

Clear Out the Clutter

Christmas decorations, wrapping paper, and odds and ends that accumulate over the holidays and throughout the year can add to the clutter in your home. New Year’s cleaning and organizing projects can give your home a fresher feel. Now is a good time to:

Wipe down the kitchen walls and ceiling: Use a sponge mop with dish soap and water to clean the ceiling. Use a cloth to wipe down walls and woodwork.
Turn your mattresses: Vacuum the box springs with an upholstery attachment when you remove the mattress to flip it. Wash your comforters, throws, and pillow covers to give beds a fresh smell.
Clean out your junk drawers, coat closet, pantry, etc.: When you tackle an area, take everything out, clean all the surfaces, discard unwanted items, and organize and replace remaining items. The best way to start organizing is to make piles of items to keep, throw away, give to charity, return, repair, etc.

Make Sure Your Home Is Safe

Properly functioning smoke and carbon monoxide alarms can help keep your family safe. According to the National Fire Protection Association (NFPA), 40% of home fire deaths occur in homes with no smoke alarms, and 17% occur in homes with non-functioning smoke alarms. Dead batteries are the cause of one-quarter of the cases of smoke alarm failures.

The New Year is an excellent time to test your alarms and replace the batteries. Check the manufacturing date while you’re at it. Smoke detectors should be replaced after 10 years, while CO detectors should be replaced every five years.

Get Ready for Harsh Weather

January and February are the coldest months of the year in many parts of the country. You can stay warmer and save money on energy bills by preparing your home for colder temperatures and winter storms:

Clean leaves, dirt, and debris out of your gutters.
Weather strip outside doors and windows to help keep heat in and cold air out.
Get annual maintenance performed on your furnace.
Clean or replace air filters and humidifiers.
Install a programmable thermostat (if you haven’t already done so).
Hang thicker curtains or drapes to improve insulation.

Ensure You Have the Right Home Insurance Coverage

Your home is probably your largest investment. It is also the place where you and your family are likely to spend a great deal of time during the colder winter months. Although you take steps to keep your home safe, anything is possible—from a home fire or brutal winter storm to vandalism or an injured visitor. It makes sense to protect your investment with the right home insurance coverage. Our knowledgeable agent will be happy to review your current policy and help ensure you have the homeowners insurance you need to protect your home and belongings.

Does My Building Have Enough Coverage?

Your building is a major asset of your business. As a business owner, it makes sense to have adequate commercial property insurance to protect your investment. No two buildings are alike, and properties may have a higher risk for different perils. Our experienced agent can help ensure you have the business insurance you need.

How Much Commercial Property Insurance Is Enough?

The term “full value” means the cost of rebuilding from the ground up at current prices. If you have your building insured for the cost of the building or the amount you are carrying on your books, it is probably not enough coverage. You should ensure you have enough insurance to cover the real replacement costs in case your building burns to the ground or is a total loss due to a natural disaster. If your goal is to lower your premiums, this can be accomplished by choosing a higher deductible, while maintaining full value coverage.

What Does Commercial Property Insurance Cover?

Commercial property insurance can protect your business property from a range of perils, including fire, theft, vandalism, and natural disasters, such as windstorms. Generally, it protects commercial property in the same way that homeowners insurance protects private dwellings. However, the premiums for commercial property insurance are typically deductible as a business expense.

This type of policy should cover your:

Building
Inventory
Equipment
Furniture
Satellite dishes
Accounting records and essential documents
Outdoor signage
Fencing
Landscaping
Damage to property of others

Your policy may provide protection against loss of income in case of loss of business property. You will also want to ensure you have third-party liability coverage in case another person is injured on your property.

What Factors Determine Business Insurance Rates?

Several factors can impact your rates for the building coverage you need. They include:

Occupancy: The type of business occupying a building can affect its fire rating, commercial property insurance rates, and the amount of coverage needed. For example, a restaurant has a higher risk of fire than an office building.
Construction: If your building is constructed out of fire-resistant materials, you could pay less for business insurance. This is something to consider, if you are adding on or remodeling. Using wood floors, stairways, or partitions can increase your rates.
Location: If your business is in an extreme weather area, you are at higher risk for damage, which means your premiums are likely to be higher. As cities and towns have fire protection, it could also affect your rates for a building located outside the city.
Protection: Does your business have a security system, a fire alarm, and a sprinkler system? How far away are the nearest fire station and the nearest fire hydrant? These may be factors in the cost of commercial property insurance.

The best way to determine if your business has adequate building coverage is to sit down with an experienced professional and discuss all the factors involved. Our friendly agent can help ensure you have the commercial property insurance you need at the best available rates.

Do I Need To Insure My Car During Winter Storage?

It is not uncommon to put a vehicle in storage over the winter months. If you are not planning to use your car during the winter, it makes sense to keep it safe and protected from the harsh weather.

It may be tempting to cancel your auto insurance coverage during this time, while your vehicle is not being driven on public roadways. After all, it could save your several months of car insurance premiums. However, there are some major drawbacks to canceling your insurance while your car is in winter storage.

What Are the Disadvantages of Canceling Car Insurance for Winter Storage?

Cons of canceling auto insurance during winter storage include:

Lender and state requirements: You may not have the option to drop your car insurance if you financed your car. As a condition of your loan, continuous coverage is likely required. In addition, mandatory minimum auto insurance may be required for your vehicle registration to remain valid.
Gap in coverage: If you cancel your policy when you put your car in storage, it creates a gap in coverage, which makes your auto insurance history look riskier to insurers. This could mean higher premiums when you reinstate your policy.
No protection for your vehicle: With no comprehensive coverage, you will not be protected from damage that could occur during the period your car is parked in storage. A vehicle does not have to be on the road for mishaps and damage to occur. A roof collapse, a tree falling on the building, fire, theft – anything is possible.

What Are Your Options for Insuring a Car In Winter Storage?

You may be able to reduce your auto insurance premiums without canceling your coverage entirely for winter storage. One way to do this is to lower your coverage amounts. You are not likely to need collision or liability coverage while your car is stored in a garage, as it is virtually impossible to be involved in a wreck under those circumstances. However, some lenders may require borrowers to maintain both comprehensive and collision coverage for the duration of the loan.

Some auto insurance companies offer coverage specifically for vehicles in storage. This type of policy includes only comprehensive coverage, to protect you against damage to your car while is non-operational. Storage coverage is much more affordable than full car insurance coverage, and it keeps a gap in coverage from showing up on your insurance history.

This type of coverage only protects you while your vehicle is in storage. It is a violation of law to drive your car without auto liability insurance. Your vehicle registration could be flagged and suspended if you drop the state mandated minimum coverage. To avoid this, it may be possible to file an Affidavit on Non-Use with the DMV.

If you plan to put a car in storage for the winter, speak with our friendly agent. We can help you obtain the car insurance coverage you need at the best available rates.

Do I Need More Than Just General Liability Insurance?

General liability insurance is essential for many types of businesses. This coverage is particularly critical if your business is open to the public, rents or owns commercial property, works closely with clients or customers, or handles client property. Most new business owners buy a general liability insurance policy right away. However, it is not the only business insurance you are likely to need.

What Is Covered by General Liability Insurance?

Most business enterprises have some exposure to liability. General liability insurance can help protect your business from third-party lawsuits for bodily injury, property damage, or advertising injuries, such as libel or slander. It can also protect against product liability lawsuits, in which a consumer claims to have been injured by a product. A general liability policy can cover the cost of your legal defense and any settlements or judgments if a third party sues you.

What Additional Coverages May Be Needed?

Other types of insurance coverage may also be vital to the future of your business. Our knowledgeable agent can work with you to design an affordable business insurance package that provides the protection you need. New business owners commonly purchase the following types of insurance.

Workers’ Compensation

General liability insurance covers claims made by third parties, not employees. Employers in most states are required to carry workers’ compensation insurance. This coverage pays for medical expenses and lost wages if an employee is injured on the job. It also helps protect business owners from employee lawsuits based on work-related illnesses or injuries.

Errors & Omissions (E&O)

Any business that provides a service or offers advice needs E&O insurance. This includes, but is not limited to:

Lawyers
Architects
Engineers
Accountants
Insurance agents
Real estate agents
Financial advisors
Consultants
IT companies

Also known as malpractice insurance, Errors & Omissions coverage helps protect your business against liability for injury a third party alleges was caused by something you said or did, or failed to say or do.

Commercial Property

General liability insurance will not cover damage to your business property caused by fire, explosions, theft, vandalism, or natural disasters such as hail storms or hurricanes. For these risks, you need commercial property insurance. This type of policy typically covers your building and everything in it, including computers, furniture, equipment, documents, and inventory, in addition to exterior signs, fences, and landscaping. It may also pay for damage to someone else’s property caused by a covered peril.

Employment Practices Liability Insurance (EPLI)

If your business has employees, you probably need Employment Practices Liability Insurance. Employee discrimination lawsuits are more common than ever today. This insurance can help cover your legal defense and any settlements or judgments if you are sued by an applicant, employee, or former employee who is accusing your company of discrimination or harassment.

Commercial Auto

Generally, personal car insurance policies will not cover accidents that occur while a vehicle is being used for business purposes. If your business has company-owned vehicles, or if it uses personally-owned vehicles to conduct business, you need a commercial auto insurance policy.

Avoid Common Home Accidents During The Holiday Season

From late November to mid-January, the holidays bring good cheer and gatherings with friends and family. They are also a season when home accidents frequently occur. The following are some common holiday-related accidents, along with tips to help keep your family safe at home over the holiday season.

Decorating Fall Accidents

You may be surprised to learn how many people are injured while decorating their homes for the holidays. The Centers for Disease Control and Prevention (CDC) reports that, over three winter holiday seasons, an estimated 17,465 people were treated in emergency rooms for fall injuries related to holiday decorating.

Approximate 43% of these falls were from ladders, many of which occurred while stringing or removing outdoor lights. People decorating for the holidays have also fallen from furniture, stairs, porches, and roofs, or have tripped and fallen on tree skirts, extension cords, or other holiday decorating gear.

To help prevent holiday decorating fall accidents:

Use a sturdy, dependable ladder on a level surface.
Make sure step ladders are fully opened and locked.
Move the ladder instead of overreaching.
Place the bottom of the ladder one foot from the wall for every four feet in height.
Have another person standing by to assist you while stringing lights and exterior ornaments.

Fires During the Holiday Season

According to the Consumer Product Safety Commission (CPSC), there were 100 fires started by Christmas trees and 1200 fires started by candles in a recent two-year period in the U.S., to say nothing of common cooking-related fires. To help reduce the risk of fire over the holidays:

Make sure to follow all proper safety precautions if you choose to deep-fry your Thanksgiving turkey.
Check for freshness when buying a live Christmas tree. The tree should be green, and the bottom should be sticky with resin. When tapped on the ground, the tree should not lose many needles. The needles should be difficult to pull from the branches and should not break when you bend them between your fingers.
Place your Christmas tree away from heat sources.
Make sure the tree is supplied with water at all times.
Look for the “Fire Resistant” label when buying an artificial tree.
Keep candles on a stable, heat-resistant surface, well away from flammable items.
Keep all burning candles in sight. If you are leaving the room, extinguish candles first. Flameless LED candles are far safer. If you enjoy candle scent, you have alternatives to candles.
Use only lights that have been safety tested by a nationally-recognized lab.
Check each set of lights for frayed wires, loose connections, and cracked or broken sockets. Discard any damaged sets.

Slip and Fall Accidents

A white holiday season may be beautiful, but snow and ice on walkways can be treacherous. Depending on the circumstances and state laws, it could also leave you open to liability. Slip and fall accidents can cause serious injuries, including head trauma, fractured bones, strains, sprains, and dislocations. To help keep family and visitors safe on your property, shovel snow from walkways and use ice melt to reduce the risk of slip and falls.

Make sure you have the right home insurance to protect you from loss in case of a fire and from liability in the chance that another person could be injured on your property. Our friendly agent can help you get the best quote on a homeowners insurance policy to match your needs and budget.

Is My Event Big Enough For Special Event Insurance?

Special event insurance is not only for large events. This coverage is designed to protect you, the event holder, from liability, whether you are hosting a small wedding or a large company retreat. Coverage applies to third-party claims for bodily injury or property damage sustained during the event. Some special event insurance policies also provide cancellation coverage to reimburse you for lost deposits or other expenses that could be incurred if the event was canceled or postponed.

What Are the Reasons to Buy Special Event Insurance?

Liability

It is always a good policy to plan for the best outcome and prepare for the worst. Despite your careful planning, things can go wrong at an event of any size. Employees you hire to work your event or guests may accidentally cause injury or property damage to others. If alcohol is served at your event, a guest may become intoxicated and cause problems, such as exhibiting aggressive behavior. Special event insurance can cover medical expenses resulting from an injury that occurs during the event or damage to property caused by someone you hired. Some of the possible hazards at a special event include:

Slip and fall accidents
Fights between attendees
Collapsing structures that cause injury
Auto accidents caused by intoxicated guests
Fires or damage to property caused by employees

Venue Requirement

Many venue owners will not rent to you without proof of liability insurance. You will need to show your Certificate of Insurance to the facility. Depending on the venue, you may also be asked to add the facility as an additional insured to your policy. This is a common requirement for many venues.

Cancellation Protection

Most special events proceed as planned, but in some cases, they have to be canceled or postponed due to circumstances beyond your control. The cancellation could be due to severe weather, such as a hurricane or tornado, a fire at the venue, or a key speaker or performer’s failure to appear. A wedding might be postponed due to an unexpected illness of the bride or groom or an immediate family member, or even military deployment. Event cancellation insurance can reimburse you for deposits made to vendors (venue, caterer, band, florist, etc.) and help reduce your losses.

What Is Not Covered by Special Event Insurance?

Special event insurance policies restrict coverage to the specific date and event described in the endorsement. They generally exclude activities involving:

Fireworks
Firearms
Trampolines
Ski jumping or other aerial maneuvers
Rodeo events
Amusement equipment

Certain events may be subject to additional exclusions and limitations.

How Much Does Special Event Insurance Cost?

The cost of special event insurance will depend on the type and size of the event and who is purchasing the policy. Basic, one-day insurance for a small event could start as low as $100 and increase from there, based on several factors. If you are planning a special event, our knowledgeable agent can help you find the insurance coverage you need to protect your investment and shield you from liability at the lowest available rates.

What Happens If I Get In A Wreck With An Uninsured Driver?

Most states have mandatory minimum auto insurance laws, but some people still drive without the required coverage. The Insurance Information Institute (III) reports that in a recent study, 13%, or one in eight drivers in the U.S. is operating a vehicle without insurance. Many such drivers cannot afford the cost of car insurance, which makes it difficult to collect damages after an accident. Fortunately, there are ways to protect yourself if you have been involved in a wreck with an uninsured driver.

Uninsured Motorist Coverage

Uninsured motorist protection is a type of auto insurance designed to protect you if a driver without insurance causes a car collision. Hit and run accidents are also covered. This coverage is optional in most states but required in others. If the driver who caused the crash has no car insurance, your uninsured motorist coverage will kick in to cover your damages, up to your policy limits.

Underinsured Motorist Coverage

Even if a driver is carrying the minimum liability auto insurance, it may not be enough to cover your losses. In many states, mandatory minimum financial responsibility limits for bodily injury and property damage are as low as:

$25,000 per person bodily injury
$50,000 per accident bodily injury
$25,000 property damage

Medical expenses for injuries sustained in a serious accident can run far more than $25,000. The average cost of a new vehicle in 2020 is $37,851, according to the Kelley Blue Book.

Underinsured motorist coverage provides you with added protection in case the policy limits of the driver who caused the accident does not fully cover your losses. If you are in an accident with an underinsured driver, you need to file a claim with the at-fault driver’s insurance company and inform your own auto insurance provider. If you receive inadequate reimbursement from the other driver’s insurance company, your underinsured motorist coverage can pay the difference, up to your policy limits.

How Much Uninsured/Underinsured Motorist Coverage Do I Need?

Coverage levels for uninsured/underinsured motorist insurance can vary widely. Some insurance companies may limit you to coverage no greater than your other liability limits. In general, it is wise to have the same amount of uninsured motorist coverage as you have for bodily injury.

Uninsured motorist insurance may be available as a split limit policy, or, in some states, as a combined single limit policy. Split limit policies have separate limits for bodily injury and property damage. For example, an uninsured motorist plan may cover $50,000 bodily injury per person, $100,000 bodily injury per accident and $25,000 for property damage. In a combined single limit policy, one coverage level ($100,000, for example) applies to both bodily injury and property damage.

How Much Does Uninsured/Underinsured Motorist Coverage Cost?

The average cost of uninsured/underinsured motorist coverage is approximately 5% of annual auto insurance premiums. Various factors can affect the price of this type of insurance, including driving record, previous claims, and policy discounts. Our experienced agent can help you find the best rates for the uninsured motorist protection you need.

Beginner’s Guide To Workers’ Comp Insurance

If you are an employee who has been injured on the job, you are most likely eligible to collect workers’ compensation benefits. The following questions and answers provide some basic information about the workers’ comp claims process, and the benefits you may be entitled to receive. Our friendly agent is also happy to help.

What Types of Injuries Are Covered By Workers’ Comp

Workers’ compensation insurance covers only work-related injuries. The injury or illness must have been sustained in the course of your employment. If you have clocked out for the day and you are involved in a traffic accident on your way home, workers’ comp will not cover your injuries. If you trip and fall in the workplace, break your arm, or sustain another injury while performing the duties of your employment, you should be entitled to workers’ compensation benefits.

What If I’m At Fault for the Accident that Caused My Injuries?

Workers’ comp is a no-fault system. Even if your injuries resulted in part from your own failure to take the necessary safety precautions, you are still entitled to benefits in most cases. In return, you are precluded from suing your employer for injuries covered by workers’ comp insurance.

What Benefits Are Provided By Workers’ Comp?

After an on-the-job injury or illness, workers’ comp will pay for your medical care related to the injury and replace a portion of the wages lost as a result of your injury. Typically, wage replacement amounts to approximately two-thirds of the worker’s average wages, up to a specific fixed limit. Benefits may also include:

Compensation for any permanent disability
Occupational rehabilitation or retraining if your injuries prevent you from returning to your previous position
Survivor benefits for families of workers killed on the job

How Do I Apply for Workers’ Compensation Benefits?

The workers’ compensation claims process may vary somewhat from state to state. Generally, to collect workers’ comp benefits, you must notify your employer and the workers’ comp insurance carrier of your illness or injuries.

Ensure you have the necessary medical treatment right away. Then notify your employer in writing, complete an official claim form, and keep detailed records of your treatment. Make sure to notify your employer and file your claim within the required time frame, which can vary from state to state.

Are My Workers’ Compensation Payments Taxable Income?

In most cases, workers’ comp payments for wage replacement or permanent disability are not subject to state or federal taxes. However, a portion of this money may be taxable if you are also receiving Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI).

What If My Workers’ Comp Claim is Denied?

If you file a claim for workers’ compensation benefits and your claim is denied, you still have recourse. The reason for denial should be explained in the denial letter. If you feel your claim was incorrectly denied, you may appeal the decision through your state’s workers’ compensation board. Common reasons given for denial include:

Insufficient evidence that the injury is work-related
Employer is disputing the claim
No medical treatment was received
Injury was not reported to the employer within the specified time limit
Claim for benefits was not filed before the deadline

How To Know When Your New Car Needs A Tune-Up

Modern cars do not generally require a tune-up in the traditional sense. Engine parts are designed to last longer, and new cars don’t have the same components that needed to be adjusted or replaced in the past. Nevertheless, modern vehicles require regular maintenance. The following are signs that your new car is ready for a trip to the mechanic.

A Light on the Dashboard Comes On

Warning lights on your dash come on to alert you that something in your engine needs attention. Although the issue may not be serious when the light comes on, it could become a serious problem or safety risk if not resolved promptly. Check your owner’s manual or search online to find out what the light indicates, and contact your mechanic to schedule service.

Your Gas Mileage Decreases

It is a good idea to keep track of your gas mileage. To do this, record the mileage every time you fill up, then reset the counter. If you notice you are not able to go as far on a tank of gas as you did when you first acquired your new car, it may be time for routine service, including an inspection for any underlying problems that could be decreasing fuel efficiency.

Your Car Is Making Unusual Noises

When you first get a new car, it doesn’t take long to become accustomed to the sounds it makes. If you hear an unusual noise, it could be a sign that something is wrong. A checkup performed by a trained mechanic can reveal what is causing the noise, so it can be adjusted or repaired before it develops into a bigger problem.

You Feel Unusual Vibrations

Your car should not be vibrating while you are driving on a smooth, paved road surface. Whether you feel the vibration in the seat or in the steering wheel, and whether it is always there or only at certain speeds, it is an indication that something is wrong with the vehicle. It could be a problem with the tires or alignment, or an internal problem with the vehicle. In either case, if your car is vibrating, it is time to see your mechanic.

Your Vehicle Has Less Pickup

When your car is lacking pickup, it can cause performance problems (for example, when you are merging with traffic or traveling uphill). If the vehicle is not accelerating properly, it may be a sign of a problem that should be resolved as quickly as possible.

The Engine Misfires

Misfiring means a loss of power to the vehicle. It has several possible causes, including fuel system problems, faulty ignition, and engine defects. If your car misfires, schedule a maintenance appointment as soon as possible.

Protect Your New Car Investment with the Right Auto Insurance

New cars today are built to last and require a substantial investment. It makes sense to protect your investment with the right car insurance policy. Our knowledgeable agent can help you find the auto insurance coverage you need at the best available rates.

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