Archives: 2021

The Ins and Outs of Business Contents Insurance

Your business contents are items belonging to your business that are not permanently attached to the building. They may include small items, such as laptops and mobile phones, or furniture, office equipment, raw materials, or large machinery. No matter the size or nature of your enterprise, the loss of some or all of these essential items could significantly disrupt your operations. 

Business contents insurance is designed to provide protection against such a loss. This coverage is included in property insurance policies. It is also known as commercial contents insurance or business assets insurance. 

Items Covered By Business Contents Insurance

Purchasing business contents coverage involves listing and valuing items to be insured. Coverage is typically available for:

• Furniture: Bookshelves, desks, tables, chairs
• Fixtures and fittings: Lighting, flooring, kitchen utensils, appliances
• Office equipment: Computers, printers, scanners, copiers
• Manufacturing tools and equipment: Tools and equipment for producing or packaging goods
• Personal belongings: Items belonging to employees or clients in the building

Categories of Covered Items

For business contents insurance purposes, your business property fits into one of two categories – contents or mobile equipment. In addition, the property of others may be specified, if routinely housed by your business. Generally, mobile equipment is more costly to insure because it may move off the site and be exposed to greater risks. Mobile equipment is covered while off-site, but contents are not. If your business owns only a few items of mobile equipment that remain on the premises, you may have the option to insure these items as contents. 

Covered Events Under Business Contents Insurance

Most providers cover business contents that are destroyed or damaged due to:

• Fire
• Flooding
• Theft
• Explosions
• Extreme weather
• Natural disasters
• Malicious damage

Types of Business Contents Coverage

There are two basic types of business contents insurance:

• Replacement as new: The policy will pay to replace a lost or damaged item with a new one.
• Indemnity: With this type of coverage, the insurer pays for the cost of replacing the item at current market value, factoring in wear and tear and depreciation. 

How To Value Your Business Contents

When purchasing business contents coverage, make sure your business assets are insured for replacement value rather than purchase price. If you stock more materials, products, or other items at certain times of the year, make sure those contents are covered. Be certain you are not underinsured, as that could prevent you from reopening following a disaster. 

Coverage for Income Reduction With Loss of Contents

Business contents insurance only covers damage to or loss of the contents of the business. When an event occurs that destroys business equipment and materials, it can seriously interrupt operations and reduce business income. For protection against that type of loss, you need business interruption insurance. 

Professional Guidance For Business Insurance Needs

It is more important than even these days to insure your business against losses. Our knowledgeable agent can go over your business policies with you and help ensure you have the coverage you need at the best available rates.

A Parent’s Guide to Teen Driver Safety

Learning to drive and getting a license is an important step in the process of becoming an adult. But that does not make it any less stressful for the teen’s parents! It is nearly impossible not to worry when you are aware of teen driving accident statistics and know how susceptible that age group can be to driver distraction. If you are a parent of a teen driver, the following guidelines can give you greater peace of mind and help ensure your teenager is safer when behind the wheel.

Set a Good Example

Whether you realize it or not, your teen is watching what you do and hearing what you say. Teenagers make mental notes of their parents’ behavior, and that includes what they do while they are behind the wheel of a car. It is critical that you set a good example while operating a motor vehicle. Buckle your seatbelt, stick to speed limits, drive safely and responsibly, and never drive distracted or impaired.

Teach Your Teen to Slow Down

Speeding or driving too fast for conditions are among the most dangerous driving conduct common in young, inexperienced drivers. Excessive speed is a major contributing factor to traffic crashes nationwide. Explain the laws of physics to your son or daughter. The faster a vehicle is traveling, the more time and distance is required to stop, and the greater the impact in a collision.

Outlaw Texting and Driving

Texting while driving is the most alarming form of driver distraction, as stated by the National Highway Traffic Safety Administration (NHTSA). It requires visual, manual, and cognitive attention and takes the driver’s eyes off the road for five seconds at a time – equivalent to the length of a football field at 55 mph. Consider installing an app, many of which are free and offered by your cell service provider, which silences calls and texts once the speed of the vehicle reaches 15 mph, sends auto-replies, and can alert you if the app is turned off. 

Consider a Dash Camera

Dash cameras are video cameras that can be installed in your vehicle to record footage of the exterior and/or the interior of the vehicle. With a two-channel model, one camera records what is in front of the vehicle, and the other records the interior of the vehicle and what is behind it. Parents are able to view this footage after a teen drives the car to monitor safe driving habits and determine if anyone else was in the vehicle. This camera footage also provides evidence of how an accident happened if one should occur. 

Keep Your Teen Off the Road at Night

Fatal crashes are more likely to occur after the sun goes down, as stated by the CDC. For the first six months of driving, make it a rule for your teen not to drive after 9:00 p.m. When he or she has six months of experience, go out with your teen and practice night driving. 

Make Sure You Have the Right Auto Insurance Coverage

Having a teen driver in the family increases your risk of liability and your need for medical coverage. It can also increase your premiums. Our agent can help you find the car insurance coverage you need at the best available rates.

I Didn’t File a Claim but My Home Insurance Went Up. Why?

Fall Safety and Security Tips to Implement in Your Business

Every season of the year poses safety and security challenges. In the fall, the days grow shorter and the nights grow longer, providing greater opportunity for thieves and vandals. Falling leaves can make walkways slippery, increasing accident risks. The following tips can help you reduce the risks for your business during the autumn months. 

Install Proper Lighting

We have fewer hours of daylight in the fall. If your business is not well-lit, it could attract burglars and other criminals at night. Adequate interior and exterior lighting can discourage break-ins and make it easier to identify intruders. 

Invest In a Professional Security System

A proper alarm system and high-quality surveillance equipment can go a long way toward protecting your business. Many modern security cameras have night vision features, making them effective deterrents against vandalism and burglary in the dark hours. 

Drill Security Protocols

Have emergency protocol and alarm system procedures in place, and make sure your employees know them. Get them trained on workplace safety and drill them on emergency procedures. Review arming and disarming the security system with your team.

Update Your Security System for the Fall

Daylight Savings Time ends and the clock falls back an hour on November 3rd. Many businesses run on a different holiday season schedule beginning at Thanksgiving. This can affect card access systems on automatic lock schedules and the opening and closing of alarm systems. Make sure to update all security systems to the correct time. 

Clean Up Your Exterior and Landscaping

Overgrown shrubs, trees that need pruning, fallen leaves, and debris can present safety and security hazards. Autumn leaves can make walkways slippery and increase the risk of a fall. Overgrown shrubbery gives criminals a place to hide and can obscure the line of sight for officers or security guards on patrol. Maintaining your landscaping and exterior can not only improve your business image but also reduce safety and security risks. 

Be Alert for Shoplifters

When the weather cools down in the fall, people are more likely to wear bulkier clothing. This makes it easier for shoplifters to hide items they are planning to steal. Train your staff to greet customers as they walk in the door (as a courtesy and to let them know they are noticed) and be alert for shoplifting. If a customer is behaving suspiciously, instruct your staff to ask if any help is needed. This lets potential shoplifters know they are being watched. 

Have Staff Walk Out Together After Dark

Criminals take advantage of the darker, colder months when it is easier to hide and there are fewer people around to observe them. Instruct your staff to be alert when walking to and from your business, and to walk out together in groups or pairs for greater security. 

Review Your Business Insurance Coverage

It is important to have sufficient business insurance for protection against theft, vandalism, accidental injury, or assault on your premises. Fall is a good time of year to review your policies. Our agent can help you find the coverage you need at the best available rates.

Is Lost or Stolen Jewelry Covered by Homeowners Insurance?

Personal jewelry items can be extremely valuable. For example, the average cost of an engagement ring in the U.S. is $7,829, as reported by Brides.com. A strand of South Sea pearls can be worth more than $100,000, as stated by The Pearl Source. If jewelry is lost or damaged because of a covered peril, such as theft, it is covered by homeowners insurance, up to specific limits. 

What Are the Common Covered Perils?

Your homeowners insurance policy will likely reimburse you for lost or damaged jewelry, up to the stated policy limits, if the loss was caused by one of the following common perils:

• Fire
• Lightning
• Theft
• Explosions
• Smoke damage
• Vandalism
• Hail or windstorms
• Falling objects
• Vehicle or aircraft-caused damage
• Volcanic eruption
• Riots
• Water damage
• Electrical current damage

When Is Jewelry Not Covered By a Homeowners Policy?

Your homeowners insurance will not cover loss or damage to valuable jewelry if it was not caused by a covered peril. For example, if you drop a diamond ring down the drain and are unable to retrieve it, your insurance company is not likely to reimburse you for the loss. The same applies if you accidentally damage a piece of jewelry, for instance, by exposing it to harsh chemicals while cleaning the oven. As standard homeowners policies do not cover flooding, jewelry lost or damaged in a flood is not covered. 

How Much Jewelry Coverage Will a Homeowners Policy Provide?

Whatever the policy limits of your homeowners insurance, you cannot apply the entire amount to jewelry coverage. Your policy will specify personal property coverage limits at a certain percentage of the total policy – usually approximately 50%. However, as this type of property is considered easily stolen and of high value, many homeowners policies set coverage limits specifically for jewelry, often as low as $1,000 or $2,000. 

How Do You Get More Insurance Coverage for Valuable Jewelry?

Floater

If you have valuable items of jewelry, you may want more coverage for this property than standard homeowners insurance will provide. One way to get it is to purchase an endorsement for scheduled personal property coverage. The cost of this additional coverage will depend on various factors, including the location of your residence and the number and value of the items you want to insure. In addition to increasing your coverage limits for jewelry, this type of endorsement (also known as a floater) may protect you against certain additional losses, such as accidentally losing your engagement ring. 

Jewelry Protection Insurance

Another option is to purchase separate jewelry protection insurance. This type of policy is separate from your homeowners insurance, and any claims made against it will not affect your future homeowners insurance premiums. Jewelry protection insurance covers all events, including accidents and damage caused unintentionally, up to policy limits based on the appraised value of the jewelry. Cost is also based on where you live and the number and value of items being insured. 

Our agent can advise you on the different options and help you find the best coverage to protect your treasured jewelry items.

What Is Employment Practices Liability Insurance, and Why Does My Business Need It?

Employee lawsuits against employers are on the rise. Employment practices liability insurance (EPLI) is coverage to protect your business against employee claims that their rights have been violated. Some insurers will provide this coverage as a Business Owners Policy (BOP) endorsement, while others offer it as stand-alone insurance. 

What Does EPLI Cover?

Employment practices liability insurance provides protection against a range of employee claims, including:

• Discrimination
• Wrongful termination
• Sexual harassment
• Retaliation
• Mismanagement of employee benefits
• Wrongful discipline
• Negligent evaluation
• Breach of employment contract

It can help cover your legal defense costs and any settlements or judgments arising from such a claim. Common exclusions include third-party property damage or bodily injury, work-related employee illness or injury, wage and hour claims, and intentional or dishonest acts. EPLI coverage will not typically pay for punitive damages (designed to punish the defendant for wrongdoing) or for civil or criminal fines. 

What Is a Claims-Made Basis?

This type of coverage is typically written on a claims-made basis, meaning the incident that led to the claim and the claim notification must have occurred during the coverage period. Employment practices claims often arise months or years after an alleged incident occurred. If your policy was no longer in effect when a claim was made, your business would not be covered. 

When Would My Business Need Employment Practices Liability Insurance?

A business of any size is at risk of litigation brought by employees. The risk increases as you hire more employees and managers. Even interviewing a prospective employee poses a risk, as that person could allege discrimination. 

We live in a litigious society. Defending your company against an employment lawsuit could cost many thousands of dollars, in addition to the cost of any award or settlement. 

How Can I Help Prevent Employee Lawsuits?

The best preventative approach is to educate managers and employees so problems do not occur in the first place. You will need effective hiring and screening programs in place to avoid discrimination, and company policies posted throughout the workplace and placed in employee handbooks. Educate employees on what steps to take in case of harassment or discrimination by a supervisor, and make sure supervisors are aware of company policy. 

How Much Does EPLI Cost?

Annual premiums for employment practices liability insurance can vary widely, depending on a number of factors, including:

• Number of employees
• Coverage amount
• Deductible or self-insured retention (amount for which the policyholder is responsible)
• Employee turnover rate
• Hiring and firing practices
• Claims history

According to Fit Small Business, EPLI premiums for a company with one to 10 employees, with coverage amounts of $500,000 per occurrence and $1 million aggregate, and a $2,500 deductible (or self-insured retention) range from $800 to $2,000 annually. You can lower your premiums by increasing your self-insured retention or deductible amount, but that also means you will cover more costs in the event of a lawsuit. 

Our agent can evaluate your company’s employment practices liability insurance needs and help you find the appropriate coverage at the best available rates.

Safety Tips to Remember During Motorsports Awareness Month

Originally, motorsports in America were mainly about motocross, NASCAR, or drag racing. Today, they often involve motorcycles or all-terrain vehicles (ATVs). 

August is Motorsports Awareness month in the U.S. This is a time for promoting the enjoyment of motorsports and for educating people regarding safety. It is also an excellent time of year for motorcycle road trips or exploring trails on ATVs. These common-sense safety tips can help keep children, young adults, and all motorsports participants safe on the road or trails.

• Take a motorsports safety course: These courses are available for ATV riders, motorcyclists, and all types of racers. They can help reduce the number of accidents and injuries.
• Stay off paved roads on ATVs: All-terrain vehicles are designed for off-road use only.
• Look over all of your equipment before you set out on a ride: This includes checking to make sure you have enough gas for the trip. 
• Never allow children under the age of 16 to ride adult ATVs: Most ATV injuries involve children.
• Make yourself as visible as possible on a motorcycle: Many crashes involving a motorcycle and a passenger vehicle occur because the driver failed to register the motorcyclist in the roadway.
• Wear a proper helmet and protective gear: Go for quality over cost savings when it comes to protective equipment. Protecting your body from injury is well worth the additional cost. ATV safety equipment should include helmet, goggles, gloves, long sleeves, long pants, and thick boots.
• Never drink while riding or driving: Alcohol consumption slows response time, impairs judgment, and significantly increases the likelihood of a crash. 
• Don’t take a passenger on an ATV: Unlike motorcycles, many ATVs are not designed to carry passengers. When riding an ATV, you need to shift your weight in different directions to maintain control. This becomes more difficult with an additional person on board.
• Pay careful attention to trail conditions on an ATV: All trails are different to begin with, and rain or other weather can drastically alter their condition. Take all factors into consideration in adjusting your speed and deciding which route to take. 
• Ride all-terrain vehicles in the daytime (or on a well-lit track): It is much more difficult to accurately judge a trail in the dark. 
• Watch your speed: Control of an ATV corresponds directly to how fast you are going.
• Ride within the limits of your own skill: Do not attempt tricks or stunts you are not qualified to perform safely.
• Make sure you can call for help in case of a crash: Cell phones may not work in some off-road areas for ATV riding. Ensure your cell phone is charged, carry a portable charger, and find a method by which you can contact emergency medical care should the need arise. 

Taking the right safety precautions can help protect you and your family from accidents and injuries while you are enjoying your favorite motorsports. But accidents can still happen, despite our best safety efforts. Our agent can help ensure you have the right ATV insurance, motorcycle insurance, or car insurance to provide the protection you need in case an accident should occur.

How To Protect Your Small Business from a Data Breach

Data breaches are becoming increasingly more common, particularly for small businesses. Cyber attacks are a means for hackers to collect personal information for fraudulent purposes. Small businesses may have budget and staffing limitations that make them more vulnerable to attack. Fortunately, there are steps you can take to protect your company from a data breach.

Understand How Data Breaches Occur

Data breaches can happen in a number of different ways, including social engineering (use of deception to manipulate individuals into divulging personal information), misuse of privilege, human error, negligence (such as losing a laptop containing sensitive information), criminal hacking, and malware (malicious software). As a first step, it is important to become familiar with the different types of security breaches and find out what you can do to prevent them. Keep in mind that hackers are constantly devising new ways to steal data. 

Control Who Has Access To Data

Cybercriminals look to employees for access into a business. The best way to minimize this risk is to ensure only authorized employees have access and to have ample network and information security. Access should be restricted to only the data necessary for an employee to do his or her job. Many businesses employ a cost-effective method known as role-based access control (RBAC) to limit employee access to data and help prevent information leaks.

Educate Your Employees

The importance of educating your staff on security measures cannot be overstated. Uninformed or careless employee actions are among the top causes of data breaches. Security training can be used, both to assess your employees’ knowledge and to improve it. Train your staff to identify phishing emails and emails with attachments from unknown sources. Educate them on effective passwords, safely navigating the Internet, and use of mobile devices.

Have Separate Hardware For Business and Personal Use

In a small business setting, you may be tempted to use the same computer for business and personal matters. This can significantly increase your exposure to risk. Keep one computer strictly for business and designate another for personal use. 

Encrypt Sensitive Data and Monitor Your Company Network

When data is encrypted, hackers will not be able to read it. Sensitive data your company possesses is likely to include:

• Employee personal information – birthdates, Social Security numbers, addresses
• Bank account and routing numbers
• Credit card numbers
• Client personal information – names, addresses, email addresses, telephone numbers

It may also be wise to invest in remote monitoring by a managed services provider (MSP). This will provide continuous monitoring of your network, enabling you to stay on top of any incident.

Make Sure You Have Data Compromise Coverage

You can add this optional coverage to your business insurance policy. Also known as data breach liability insurance, it can help cover costs incurred by your business because of a data breach. These costs may include legal fees, credit monitoring services for affected customers and employees, access to an identity theft helpline for affected customers and employees, and costs of notifying affected individuals of the data breach. Our agent can help you find the best available rates on data compromise coverage for your business.

Why You Should Consider Travel Insurance for Your Next Cruise

With summer coming to an end, you may be planning one last family trip before school starts again. If a cruise is on the horizon, you might want to consider travel insurance. COVID-19 has shown us how important this type of coverage could be, with the number of cancellations that have occurred. 

Benefits of Travel Insurance for a Cruise

People generally book cruises to relax and unwind, as well as get away from it all. But emergencies and mishaps can be exacerbated when you are on a cruise and at sea. Travel insurance can give you peace of mind and provide protection in a range of situations.

Last-Minute Cancellations

Life happens, particularly when you have children. When you book a cruise, there is always the possibility you will be forced to cancel because of a family emergency. If you cancel within 30 days of your trip (or longer in some cases) the cruise line will not refund your money. Travel insurance allows you to cancel if you must, for several covered reasons, without losing your travel investment.

Medical Emergencies

No matter how healthy your family members are when you first set out, it is impossible to foresee sudden illnesses or injuries. Someone could come down with the flu (or worse), sprain an ankle, or break a wrist. It is likely that your health insurance will not cover medical treatment received aboard ship. Particularly if medical evacuation is required, the out-of-pocket costs can be astronomical. A travel insurance plan can help cover these costs, with emergency transportation and emergency medical benefits. 

Missing the Boat

If you are not there for embarkation due to circumstances beyond your control, the boat will leave without you. It will not wait if your flight is canceled due to weather, or for any other reason. Travel insurance with trip delay benefits can help cover the costs of lost prepaid expenses, hotels, and meals if your trip is delayed for a covered reason. When you miss the boat and have to travel to the first port of call to catch up, travel insurance missed connection benefits can reimburse you for those costs. 

Getting Home In a Hurry

If an emergency arises at home while you are mid-cruise, travel insurance can help. When you need to get home fast, this coverage will reimburse you for the cost of your flight from the ship’s next port of call and other transportation expenses. It can also reimburse you for the unused portion of your cruise.

Cruise Line Insurance vs. Outside Insurance

Cruise lines offer some coverage, which may be convenient, but it’s probably not your best option. It may be overpriced and may not offer the same coverage available with outside insurance. Outside travel insurance for a cruise is generally reasonably priced and could save you many thousands of dollars in the event of a medical emergency requiring evacuation. It can also make it easier to relax and forget your worries for the duration of the cruise. Our agent can help you find the best travel insurance policy for your upcoming trip.

Business Income Coverage vs. Business Interruption Insurance: What’s the Difference?

Protecting your business with insurance is essential. It starts with understanding what each type of business insurance covers. Business income coverage and business interruption insurance are terms often used interchangeably – but is there a difference? All business insurance policies vary in what they cover. You may have access to a policy that protects repairs to a facility, damaged inventory, and lost income, or you may need two separate policies based on the policies an insurance provider offers. 

Business Interruption Insurance

Business interruption insurance protects against the losses and expenses incurred in covered perils, such as damage to your building or office due to storm events. Keep in mind that you must fully document the damage. Every policy has a coverage limit, which must be chosen wisely based on the value of your facility, inventory, and equipment. 

These business insurance policies provide the financial wherewithal to replace damaged equipment, inventory, pay for needed repairs, or relocate. The perils covered by an insurance provider come with a specific “restoration period.” In some cases, the policy may also cover lost income, but this coverage is more generally known as “business income coverage.”

You may need a business interruption insurance policy with an “extra expense” policy to cover the cost of moving to another location, renting equipment or property, and paying employees during the transition. The bottom line is that every policy differs. 

Business Income Coverage

Business income insurance covers the loss of income incurred when a business cannot operate after being affected by a covered peril. These typically include damage to a business from fire, theft, and wind-related events. The lost income can be paid out by your policy for a specific length of time, called the “restoration period.” The amount paid out on your policy is based on your business records. Ensure all records are stored digitally, accessible under any circumstances.

What is Covered by Business Income Insurance?

This insurance often covers the following losses:

• Lost net income, based on your financial records
• Cost of paying a mortgage, rent, or lease
• Loan payments
• Tax payments
• Fixed costs
• Commissions
• Costs of training
• Losses related to a forced closure by civil authorities
• Wages

What is Not Covered by These Policies?

Business income insurance or business interruption insurance does not pay out for some types of damage, which require a separate policy:

• Broken items such as glass
• Flood damage
• Earthquake damage
• Utilities
• Losses from a virus or pandemic

Protect Your Business the Smart Way

The ideal business insurance policies are affordable, have high limits, and cover the greatest range of potential losses. Our local agent can help you come to the right decision by showing you what is currently offered by various providers and determining what policy provides the best protection with the least impact on your bottom line.