Seven Steps to Get Your Business Ready For the Big One
Wednesday, November 9th, 2011 | Commercial Lines | No Comments
A big earthquake like the monster we’ve witnessed in Japan gets smart entrepreneurs thinking: What if a big quake hit my business? As a survivor of three major quakes — San Fernando, Northridge and Nisqually up in Seattle — I can tell you it really pays to think ahead about quake preparedness.
And don’t think you aren’t susceptible if you live outside California, either. There are quake zones throughout the U.S.
Here are seven tips for improving your odds of coming through an earthquake with little or no business interruption:
1. Get insured. Even in quake-prone California, statewide insurer the California Earthquake Authority reports only 10 percent of properties are insured. Right after a major quake — like now — it may be harder to get, so be prepared to knock on a few doors. There’s a popular myth that earthquake insurance doesn’t matter because if a big quake hits, the Federal Emergency Management Agency, or FEMA, will ride to the rescue. Although FEMA can offer low-interest loans, it won’t hand you cash. And it could take a while. Having earthquake insurance can help your business rebuild quickly.
An umbrella policy or standard business insurance that includes business-interruption insurance can be valuable here, too. Earthquake insurance only covers the cost of rebuilding, not the lost sales during the days — or months — you can’t do business.
2. Have a disaster plan. Make sure employees can work on the business remotely, and then run practice drills every so often. Have everyone stay home, or meet at an agreed-upon alternate site. Also, make sure your data is accessible remotely and everyone has the necessary passwords. Set up a phone tree, complete with non-work numbers and email addresses, as well.
3. Secure your facility. Everyone in your company should know where the water and gas shutoffs are in your building and how to use them. Multiple people should know where keys are and how to set security alarms. They should also learn how the fire extinguishers work.
4. Locate an alternate site. If you have a home office and it was knocked out in a quake, consider where else you could set up shop. You could secure a nearby co-working location or possibly use the computer terminals at a hotel business center. Similarly, if you manufacture products, establish an alternate production site.
5. Call in a pro. Get your home evaluated by a contractor with a specialty in earthquake mitigation. Ask a local builders association for referrals.
6. Do it yourself. Of course, their recommendations could get pricey. But there are some low-cost measures you can take to secure your building and prevent further damage. Among other things, secure tall bookcases to the walls or consider buying a $40 kit at a hardware store.
7. Stock up. You never know when a disaster will strike. Keep plenty of water and food on hand — even at the office.
Source: Entrepreneur Magazine
Insure Your Home Based Business
Wednesday, November 9th, 2011 | Commercial Lines | No Comments
Think your home insurance covers your new home business? Think again, and then read on to find out how to protect your venture.
There are about 18 million homebased businesses in the United States. But some 60 percent of them are gambling with the future of their businesses–and most don’t even know it. These homebased entrepreneurs don’t have enough business insurance coverage, according to the Independent Insurance Agents of America Inc.(IIAA), an Alexandria, Virginia-based trade group.
Many entrepreneurs mistakenly believe they’re covered by their homeowners insurance, but most homeowners policies limit loss of business property to $2,500, don’t cover losses away from the home, and exclude liability coverage for business-related activity. Consider these risks:
• A graphic artist can easily have $20,000 in computer equipment and software in the home.
• Sales representatives often take a laptop and cell phone on the road to meet with customers.
• A client could slip and fall during an appointment at a homebased bookkeeping service.
• A homebased manufacturer could be held liable if his or her product injured someone.
Assess Your Needs
Ask a lot of questions to determine the amount and type of insurance your business needs, says Amy Gergely of the IIAA. Start with these:
• What inventory do you have at home? How much equipment? How much would it cost to replace them?
• How many customers come to your home?
• What would happen to your business if a disaster forced you out of your home temporarily?
Read the fine print on your homeowners policy to find out the restrictions on business property and activity in the home. “Get quotes from a number of companies,” says Gergely. “The average independent insurance agent represents eight companies.”
Types of Insurance
As a homebased business owner, two types of insurance cry out for your checkbook: liability and property damage. Liability protects you against someone getting injured on your premises or by one of your products. Property damage protects against damage to a host of things, from computers to carpets.
Let’s start with the most inclusive type of insurance and work our way down:
• A business owner’s policy (BOP)includes both liability and property damage coverage. Typical hazards covered include loss of data, software or income; theft; and general business liability. The structure housing your business is also covered, so this might duplicate your homeowners’ coverage. A BOP also provides some off-premises coverage, including liability coverage for products you sell or parts you install. Things like flood protection or insurance for outdoor signs may be optional.
• A home office policyis a step down from a BOP. This policy combines homeowners and business insurance, eliminating duplicate coverage or gaps. This is a good choice for a company with no more than a handful of business visitors each week and quality computer equipment. It covers general business liability, lost income and ongoing expenses like payroll for up to one year if the business can’t operate because of damage to your home. Also covered are loss of records, accounts receivable, some off-site business property, fire, theft and personal liability. Many policies don’t cover “options” such as floods or earthquakes.
• A “business pursuits” endorsementto your homeowner’s policy provides the least protection, and isn’t recommended for most homebased businesses that have customers on site or costly equipment.
Examine your business and your assets to determine your net worth, likelihood of business interruption, and liability “red flags.” When you’ve found a policy that’s within your budget and covers possible losses, review it yearly to make sure it’s still adequate.
One final note: If your business has employees, you need workers’ compensation insurance, which covers employees’ injuries on the job. Requirements vary from state to state–check with your state’s employment office to see what’s required.
Cover Your Assets
Just because you have insurance doesn’t mean you want to use it. Take steps to protect yourself from losses. “We ask our clients to do common-sense things like installing surge protectors and uninterruptable power supplies for their computers,’” says Brian Haase of Safeware, The Insurance Agency Inc., in Columbus, Ohio. Here are some other steps you can take:
Crime and disaster prevention:
• Install smoke detectors, fire extinguishers and deadbolt locks.
• Install motion-sensitive outside lights.
• Keep your office equipment out of view from the street.
• Keep money and important documents in a fireproof safe.
• Develop a disaster recovery plan to minimize losses and return to normal operations quickly.
Accident prevention:
• Make sure electrical circuits aren’t overloaded.
• Keep stairs and walkways free of ice and debris.
• Set and enforce safety rules.
• Practice preventive maintenance on all equipment.
Liability prevention:
• Make clearly labeled backups of important documents and store them at another location.
• Don’t accept work assignments you aren’t qualified to perform or make promises you can’t keep.
• Read the fine print in contracts to avoid assuming someone else’s liability. Have an attorney review contracts.
Source: Start Your Own Business, Entrepreneur magazine and Biz Start Ups.
November 2011 Newsletter
Wednesday, November 9th, 2011 | Commercial Lines | No Comments
http://conta.cc/tXAOvr
Top Seven Mistakes Business Owners Make Filing Insurance Claims
Monday, September 12th, 2011 | Commercial Lines | No Comments
Now that Hurricane Irene is done pummeling the Eastern Seaboard, affected business owners will move on to the next phase: trying to figure out if insurance will cover their losses.
In the chaos that follows a natural disaster, mistakes can be made that may delay insurance reimbursement, or mean your insurance won’t pay at all. Long delays can be deadly for a business trying to bounce back and get the doors open again.
Here are the top seven mistakes business owners make in filing insurance claims:
1. Not contacting your insurer immediately. Many people make the mistake of cleaning up damage before an insurance representative visits the business. This creates confusion about how bad things really were, and you may find that labor you did or paid for is disallowed if it preceded an insurer’s inspection. In a disaster situation, many insurers have a quick-response team that will come out to survey the situation.
2. Not documenting the damage. Often, repairs must begin immediately to prevent additional damage, or equipment must be moved to a new location. If so, be sure to photograph the original scene to document how it was before you started your cleanup effort. Also take photos of any repairs you make.
3. Not keeping damaged goods. If your business cleanup includes removal of items such as water-damaged merchandise, flooring or insulation, keep it all, even if it has to pile up in the parking lot. The damaged materials are all evidence of the impact of the disaster on your business.
4. Not appealing your insurer’s lowball estimate. Your insurer will give you a damage estimate after surveying your business. If you think it’s too low, you can appeal. Hire your own adjuster to do a second estimate. Usually, an impartial, third-party mediator will then be employed to make a final decision on the payment amount.
5. Not reading your policy. It’s a common myth that if you have insurance for a building, you must have coverage for flooding, earthquakes and all other possible calamities. But often, it’s not true. In earthquake-prone states, for instance, this coverage often must be obtained on a separate policy or rider, and flood insurance is only offered through the National Flood Insurance Program. Don’t waste time submitting claims to your private insurance policy if it won’t cover you for the disaster you’ve just suffered.
6. Counting on FEMA for quick help. If your business is in a federally declared disaster area, federal aid will be available. But you can ask survivors of Hurricane Katrina how maddeningly slow this aid moves. It might provide homeowners with temporary shelter and eventual money to rebuild. But for a business owner, your private insurance will be your best chance at receiving money fast enough to reopen before all your customers drift away.
7. Not preparing ahead of time. Obviously, the aftermath of a disaster goes more smoothly if you are ready to swing into action when trouble hits. Start with reviewing your policy to make sure you have adequate coverage. Then be prepared. Do you know where your insurance policy is kept? Is it handy, where you could grab it if you had to leave suddenly? Is an extra copy in a safe deposit box where it would be safe from flooding or fire? Do you have your insurance agent’s number programmed into your phone? It’ll prevent delays if you have your information handy.
-Entrepreneur Magazine
CONSTRUCTION CONTRACTORS MUST PROTECT THEMSELVES FROM LITIGATION BY FOLLOWING SOME SIMPLE STEPS TO AVOID BEING NAMED IN A LAWSUIT AND PAYING FOR CONSTRUCTION INSURANCE CLAIMS THAT ARISE DURING CONSTRUCTION PROJECTS.
Tuesday, May 24th, 2011 | Commercial Lines | No Comments
The planning stages of a multi-million dollar commercial project or home kitchen remodel generally include the analysis and development of contract language and proper procedures designed to protect the owner/contractor from being sued or paying for damages themselves do to their insurance company denying a claim. Contractors can also be at risk from insurance claim denials for not following procedures outlined in their policy. Yes, insurance companies will in fact deny your insurance claim if you haven’t followed proper procedures or have a solid contract in place with your clients and/or subcontractors.
With careful planning, contractors can protect themselves if the unfortunate happens and are named in a lawsuit and are forced to file a claim with their insurance company. Just as you would not undertake a project without ensuring the work complies with the local building code’s requirements, you should also not start a project without knowing your rights and ensuring you have agreed to answer for a loss should one occur. Contractors can take some basic steps to help insulate themselves and their insurance policies from paying for claims that occur from someone else.
The first and most important step is the inclusion of an indemnification provision or hold harmless agreement running in your favor in all contracts you use. This agreement will protect you from being sued because of a third party negligence. All insurance companies will require this procedure for you to be insured and will deny a claim if it is not followed. Some will even want to see your contract even before you can buy their insurance.
The second is a contractual requirement for all contractors and trades to name your company as an additional insured on all General Liability, Workers Compensation, Commercial Vehicle and sometimes Property Insurance or Errors and Omissions insurance policies for work that is subcontracted. Be sure that the subcontractor’s insurance company’s financial rating is equal or higher than your own and collect all certificates and endorsements. Otherwise, your insurance company can deny any claim brought against you. You can check any insurance company’s financial rating by visiting AM Best at www.ambest.com.
The third important thing is to know if the insurance broker you are working with is selling you a General Liability policy form that is on a Claims Made, Full Occurrence or includes a Manifestation or Sunset Clause in it. Not knowing this can wipe out your entire business and possibly your life savings.
Construction Claims Made policies became popular in the mid 1980’s and have been around ever since. The promise of these policies were lower rates, but at what long-term damage? In most instances there is no cost savings. Claims made policies for a contractor are the worst possible policy you can buy as you can only make a claim against your insurance company during the policy period. But what happens after your project is completed and defects or something else arises and you are named in a lawsuit a few years down the road? Answer is there is no coverage unless you stay and renew with the same carrier over and over again. If you want to leave that company and go to another company you will have to purchase additional insurance (called tail coverage) to cover you for the next ten years as the statute of limitations for most states is ten years.
Full Occurrence policies is the best insurance form you can purchase as your work is covered for up to ten years (statute of limitations) after your policy expires. The policyholder is covered for any incident that occurs during the term of the policy regardless of when the claim arising from the incident is reported to the company. In some situations the claim might be made many years after the incident occurred. This leads to uncertainty for both the insured and the insurer and your insurance company has the duty to defend you.
Sunset Clauses take the Full Occurrence policy form and limit the length of time you are allowed to file a claim against your insurance company after the policy has expired. The lengths I’ve seen are from 2-5 years but every carrier will vary. After that time has expired, your insurance company is off the hook from insuring your work if a claim should arise. However, you can see a significant decrease in premium dollars for choosing a Sunset Clause.
Finally there is the Manifestation Clause. What this does is take a Full Occurrence policy and turn it into a Claims Made policy. How? Let’s say you had this type of policy and it expired 4/1/08. You then switched to a standard “occurrence” form policy. Unbeknownst to you (or anyone else) a claim “occurred” sometime during or after you completed a remodel job that finished 3/1/08. On June 1, 2008 the building owner notices a strange smell coming from a seldom used storage room in the back. He opens the door to discover a soaked buckled floor, swollen moldy drywall, and water stained furniture, etc. The ensuing investigation shows that a pinhole leak in a pipe in the wall has been leaking for months.
The 2 questions asked by adjusters will be:
1. When did this claim “manifest” itself? … and
2. When did this claim actually “occur?
The simple answers are:
1. It “manifested” itself when it was discovered (June 1).
2. It “occurred” when the construction was completed (March 1, 2008). (In construction defect claims most courts deem the occurrence date to be on or before the last date when construction was completed.)
Because your “manifestation” clause policy expired April 1, it won’t respond to this claim. The claim “manifested” after the policy expired. Your new “occurrence” policy also won’t respond because the claim “occurred” (3/1/08) prior to their policy inception date. Now you’ve got an uncovered loss and a big problem.
Most insured’s with a Manifestation or Sunset Clauses on their policy either do not know they have one, don’t know what it is, or are looking for a cheaper policy not a quality policy.
Another piece of solid advice is to make sure your defense costs are outside the limits of liability. If not, your attorney’s fees could swallow up your coverage limits and leave you with not much of a way to pay the actual claim you’re being sued for.
Allan Elliott
Integrity Insurance Services
Owner
(619) 567-6824
It’s Not What You’re Buying – It’s Whom You’re Buying It From…
Saturday, February 26th, 2011 | Uncategorized | 3 Comments
One thing I have found in busines it’s not the product or service your buying, but more importantly whom your buying it from. Particlularly in a service related industry like myself. Is the person knowledgable about their field? Do they sound up beat and positive? Do they show intrest in you, the client? Are they easy to get a hold of when you need them and if not, do they have a back up?
Now, I’m not talking about your basic goods or services like something you would purchase at a chain store or buying a cell phone or something else that requires little or no attention. For instance, if you were looking for a mechanic to work on your car, where do you go? Who can you trust to get the job done right the first time and not take advantage of you? This used to happen to my wife quite often before we were married being she’s female and really doesn’t know much about cars. So, she would typically buy what the mechanic is selling even though she doesn’t really need it.
Another expample is insurance. How many times have you purchased insurance from somone just because it was cheap and knew nothing about the person or firm you were purchasing from? Now, I don’t mean some of the large and well recognized places we hear on the radio or see on TV time and time again. I’m talking about the smaller independent insurance agent like myself who can sell and service many different insurance carriers (a few of them are the large companies you see advertised on TV and radio) all under one roof and is looking to build relationships rather than make a sale. This is what I am talking about! I’m talking about the person or people at the insurance firm, not the firm itself.
Before I started selling personal auto and homeowners insurance, I was working at this insurance agency that only sold commercial lines to business owners. Well, my wife and I bought a home and I needed homeowners insurance and I couldn’t write it myslef because I didn’t have access to any personal lines insurance companies. So, I called around. I called some big name companies that claim to have low pricing and excellent service. T he pricing varied from company to company but the people on the other end of the phone either cared about my needs, wanted to only make the sale with hard closing tactics or couldn’t wait to get off the phone with me so they could text back their boyfriend or something. This is what sets most places apart from one to the other. Just because you call and get info from a big, well known insurance company, doesn’t mean much if the service and the person you bought it from doen’t care about YOU.
I have been in the insurance industry for 15 years and I haven’t survived this long just because I want to make a sale. Those people come and go. It’s because I care. I listen. I care about your needs and want to set myslef apart from my competition. And if I know that what I offer isn’t going to be a fit for you, I will refer to someone who I think will so you are taken care of.
Allan Elliott
Owner/Producer
Integrity Insurance Services
Bad Customer Serivce
Saturday, November 20th, 2010 | Uncategorized | No Comments
Nothing gets me more heated, is when I leave a message for someone whom I’ve hired for their services or an insurance carrier I sell and I do not receive a returned message in a timely manner. If there are four important things I’ve learned in the 15 years I’ve been transacting insurance is 1. Be pleasant and be engaged. 2. Pay attention and listen. 3. If you’re in a service business like I am, return your clients messages in a timely manner. 4. Thank them for their business.
Customers are King! Without them, we are nothing.
Workers Comp Money Saving Secrets Business Owners Need To Know About
Wednesday, October 20th, 2010 | Commercial Lines | No Comments
Rule #1 Insurance Companies are in business to MAKE MONEY.
You need to know that YOU pay outrageous premiums. Then, you pay again for almost all yourclaims! Unless you have a “huge” claim, your company will get back the money they spend onyou, FROM you!
How do you pay for these expenses on your workers comp policy?
1. You pay for employee injuries through lost dividends and lost return of premium.
2. You pay more because your Experience Modification increases.
3. You pay for lost productivity from your employees.
4. You pay for the low morale of the other employees who must fill in for the
injured employee who is now out of work.
#2 -You have Workers’ Comp for reasons:
a) Because the law requires it.
b) Because workers’ comp spreads the actual cost of employee injuries out over time so you can
afford the losses.
Workers’ Compensation Insurance Companies do not pay for employee injuries. You do!
So, how can you reduce the cost of workers comp? Here are five simple ways to incorporate aprocess to minimize the cost of the injury and expedite your injured employee’s return to work -AND – in the process, lower the cost YOU pay for workers comp.
#1 -Understand that YOU pay for your employee injuries. Therefore, YOU must take control ofyour employees’ safety and do ALL that you can to get them back to work.
#2 Claims management services are usually dreadful – try to be active in the process of managing your own comp claims. A qualified agent knows how to control your costs. Contact your agent abut claims control and managing your experience modification.
#3 Your dividend and retro program may not be what it appears to be. Did you buy your Workers’ Comp based on that fancy proposal your agent presented or did you read the contract’s terms of your retro or dividend program? If you don’t understand the contract, you’re in for a big surprise that could cost you a lot of money. Your real insurance cost is determined after your policy expires.
#4 Watch your audits carefully. It’s essential the audit is correct. You’re at a disadvantage from the start. The insurance company auditor knows the rules, you don’t.
The law does not compel an auditor to explain the rules. One very common error is that oftentimes your entire payroll is put into the highest classification. The “standard class exceptions” are put into the incorrect cost classification. When someone is not properly moved to the lower cost classification, you pay at the highest rate. Misclassifications are common and the system is designed for you to pay for all mistakes. There are many other errors or omissions that are made in addition to mis-classifications. You need an expert on your side. Make sure your agent is involved in your audit and checks the results for you.
#5 Most Workers Compensation policies are overcharged. You have to watch it carefully. Here’s what your agent must do to insure you’re not being overcharged:
-Claims need to be monitored
-Premium audits must be managed and verified
-Experience modifications must be double checked for accuracy
-The contract must be analyzed by your agent
-If you use sub-contractors’ – you must be EXTRA careful – they are usually charged against you in some way.
If you need a specialist in any one area of your insurance programs, it is managing the insurance programs that affect your employees the most—Workers’ Comp. Call us for a quote today!
Integrity Solutions Insurance Services is an independent agency specializing in commercial lines insurance services in San Diego County.
Excertps taken from ca-workercompensation.com
An Accurate Auto Insurance Policy Application is Key to Ensure Rapid Auto Insurance Payouts
Wednesday, September 8th, 2010 | Shopping For Insurance Online and There Struggles | No Comments
Auto Insurance Companies do have a reputation for exploiting loopholes when it comes to honoring their policies and if there are any inconsistencies in your policy or claim they can often make a good case to either decline or delay payout of what monies are owed to you. This can not only effect you but also any other parties that may be involved in your auto insurance payouts. The stress levels involved at this time are often quite high for there is blame and guilt being thrown at different people including yourself, so ensuring that you have followed these basic rules will ensure that your auto insurance payouts are dealt with and processed rapidly with no problems.
1. Accuracy is the key. To ensure that you get a fair insurance deal and prompt payouts you do need to make sure that you fill out the auto insurance policy form correctly. Not only can the fine print can be easily skimmed over but some of the main questions can be interpreted two ways and you do not want this to come back to haunt you. If you do not understand the question or are unsure of the answer then get advice from a local insurance agent that can assist you.
2. If you are doing your auto insurance shopping online, have consistency in your insurance applications. Make sure that you submit duplicated information when you fill out each individual auto insurance policy form so you can compare “apples with apples”. One of the best ways to get fast car insurance quotes is to go online and apply for a number of quotes from reputable car insurance companies or independent agencies. Independent agencies work with multiple insurance companies under one roof and this will speed up the process and allow you to work in your own time, making detailed comparisons between quotes.
3. Check your application. It is so easy to cut corners, as getting a number of car insurance quotes can be time consuming. Take the time to go back and check your application. If you are challenged to find the time submit your applications online for fast insurance quotes, compare the details, make a choice, and then re-submit the application taking care to make sure all the questions are answered correctly and double check this new application.
Follow these 3 key tips when you fill out your auto insurance policy application and you will speed up your auto insurance payouts if you need to make a claim
Shopping For Insurance Online? Buyer Beware.
Saturday, September 4th, 2010 | Uncategorized | No Comments
If you have ever gone online to shop for insurance on the internet, there are some websites out there you should be aware of. Aside from the regulars and heavy hitters that do mass advertising, there are a lot of independent websites out there that will intice you with getting multiple quotes in one click of your mouse. This is good as you can compare rates in one place without having to fill out form after form to get an idea on what you should be paying in the market place.
However, beware of these types of insurance providers as they do not quote nor sell the insurance you are looking to buy. Rather they sell your information to multiple insurance agents (up to 8 or more) so they can call you on the phone and flood your e-mail with their offers.
If you don’t think this will bother you, fine. If you would like to avoid these websites and have a much more pleasurable and non-invasive experience without spending much time in the shopping process, avoid websites that will usually have a section for insurance agents to join their network for insurance leads. These are usually located on the very top or bottom the home page. This is a dead give away that they are selling your info to multiple insurance agents at once.
We have a solution if you are looking to compare multiple auto insurance rates in one place without the frustrating sales calls or spam. Our new quoting system will allow you to see real live quotes rated from highest to lowest after you submit your info. You will see the names of the carriers as well as the total price and payment options. No sales calls and no spam.
Please visit www.integrityinsured.com/save and get a quote today without the headache or frustration.
-Allan Elliott
Integrity Solutions Insurance Services is an independent agency specializing in auto, home, motorcycle and commercial lines insurance in San Diego County.
We are proud to be agents of Progressive Insurance.
Recent Posts
- Seven Steps to Get Your Business Ready For the Big One
- Insure Your Home Based Business
- November 2011 Newsletter
- Top Seven Mistakes Business Owners Make Filing Insurance Claims
- CONSTRUCTION CONTRACTORS MUST PROTECT THEMSELVES FROM LITIGATION BY FOLLOWING SOME SIMPLE STEPS TO AVOID BEING NAMED IN A LAWSUIT AND PAYING FOR CONSTRUCTION INSURANCE CLAIMS THAT ARISE DURING CONSTRUCTION PROJECTS.