Those buying commercial insurance are looking for the best deal, but often what seems like a great deal can lead to bigger costs down the line. Specifically, coverage for pollution and contamination risk are often severely underestimated, leaving a duration of environmental loss exposure that could have been avoided. Further, there has historically been an underestimation of the effects pollution and contamination exclusions have on property and liability policies.
There is also an overestimate, in most cases, of the amount and reliability of coverage that is attributed to exceptions related to pollution exclusions with the added issue of a lack of adjustment in insurance specifications in procuring contracts. If adjusted properly, such policies could reflect gaps that have accrued over years due to pollution and contamination exclusions. It is estimated that 95% of commercial insurance policyholders are uninsured or severely underinsured in relation to pollution and contamination over the past decades despite an oversupply of environmental insurance.
Ensuring Proper Coverage
While agents are here to help policyholders get the right coverage, there are some steps a policyholder can take to ensure they are getting the best policy for their needs.
- Liability coverage should be adequate and consistent with the limits in your other liability coverages.
- Assess your exposure to flood and earthquake incidents and consider which coverage will best benefit your policy. For instance, those with flood exposure can save a lot in the long run by having adequate coverage limits that will be high enough for interior structural insurance obligation.
- Sewer backup coverage can be a valuable coverage addition as it helps cover damage to the units along with pump failure and other general losses that quickly add up.
- Special perils can also be added to a policy for better coverage. This includes things such as roof leaks and paint spills. Depending on your business, specific coverage can help with risk exposure.
- Get an accurate estimate of the cost to replace all structural items and give the list of total values to your insurance agent. They can better help with your coverage needs when they have a fuller picture of what you need covered.
If you are unsure of what insurance you need for your business, contact an ABCO agent today.
As a small business, there is a large array of different employment types you will come across. From full-time employees to contractors and vendors, it can be difficult to navigate to whom you owe certain liabilities. In fact, for many small businesses, independent contractors are a necessary and important piece of getting off the ground. First-time owners are likely unaware of what insurance they need to have and what insurance they should expect their contractors to have on their own.
Insurance to Require for Independent Contractors
When an independent contractor makes a mistake, it could cost the business owner a lot of money. This is particularly true for technology-based technology as a third-party installer could make vital mistakes in networking that your company could be liable for. Insured contractors have the opportunity to recover some of the damages through a lawsuit. However, uninsured contractors leave little room to do so. Two important coverages for this purpose include:
- Professional Liability Insurance. Also known as Errors and Omissions Insurance, this coverage includes mistakes and oversights that could be made by a contractor when they are performing a professional service, such as the networking example.
- General Liability Insurance. Accidents, especially those involving property damage, are covered by this general insurance. This would also cover one of your own employees sustaining a physical injury caused by the contractor or their work. Often, this will also include Product Liability for physical products created or installed by the contractor that inflicts bodily harm.
Checking Contractors’ Insurance Policies
Like any small business, a contract is likely to have their own insurance to cover when things go wrong. Because of this, those hiring a contractor shouldn’t feel awkward asking for proof of the insurance. Even further, they are likely used to such a request. Simply tell the contractor your insurance requires proof and they can send a Certificate of Liability, which is easily downloaded as a PDF file. For the extra cautious, the insurance carrier can be called to confirm the insurance policy using the policy number on the certificate.
Should I Cover Contractors in my own Small Business Insurance?
Contractors should have their own insurance, but it can pay to be prudent. Your own insurance will give the ability to add subcontractors or additional insureds. If you are hiring extra helpers for a service you are providing, it is both smart and potentially required for you to do so.
Need help figuring out your insurance policy, or looking for a better small business insurance policy to cover contractor liability? Contact us today to talk to an ABCO agent.
After Hurricane Katrina, homes with flood insurance were 37 percent more likely to be rebuilt, yet many homeowners still don’t have flood insurance. It has been proven that flood damage has been increasing, likely due more homes being built in climates more susceptible to the increased downpours, stronger hurricanes and rising seas associated with the rising climate temperatures.
In spite of this, flood insurance policies are actually dropping off. According to the National Flood Insurance Program (NFIP), which is the main source of flood coverage nationally, flood coverage has been steadily dropping since 2011. This could be due to the pricing of policies, but is leaving many without necessary coverage that could lead to lessened financial burden in the event of a flood. In fact, early on for NFIP, Congress made flood insurance mandatory for homes located in flood-prone areas as mapped out by FEMA. This was to better protect homes that were likely to flood and cause less strain on national resources.
The fact of the matter is, most people underestimate the risk of natural disasters happening to them personally. This paired with a lack of requirement for the insurance, many feel the expense is not worth it or they will never use it, not realizing its application for the long-term savings and considerations for themselves and their families.
Having flood insurance is vital for homeowners, but there are three considerations prior to purchasing the important disaster coverage.
Policies Take 30 Days to go into Effect
It is important to purchase flood insurance as soon as possible. This is because it takes 30 full days to go into effect, meaning purchasing around flood season could be too late. Of course, buying any insurance sooner is better than later, but most policies go into immediate effect making flood insurance an important consideration.
Floods are Common and Costly
On average, flood insurance only costs around $700 each year. However, the average claim is around $30,000 due to the sheer cost of flood damages. This is not only a consideration for those in FEMA designated flood zones, as around 20 percent of claims come from outside the map.
Typical Homeowners Insurance Doesn’t Cover Flood Damages
Unless you specifically ask for it, it’s unlikely your homeowners insurance policy covers flooding. This is due to the amount of damages that come with floods. Be sure to always review these types of insurance policies to discern what you have or don’t have in terms of coverage.
Looking for a quote? Contact us today to discuss the coverage you need with one of our agents.
If you’re a contractor, construction insurance is an absolute must. However, not all insurance is equal and for most contractors, insurance policies are something you only think about when renewal comes around each year. At that time, many contractors will simply stick with what they have. While a policy may have worked for one year, the needs for insurance may change as a business grows and shifts. Without a prudent insurance broker, you may be missing out on important insurance that could save a ton of money by limiting your exposure.
Of course, contractors are not in the business of insurance. This leads to a lot of confusion that could be saved with a few simple tips that keep proper insurance as a lessened burden.
Get the Right Broker
Having the right insurance broker on your side can lead to much better deals. By working with the right person, you can stay up to date on the latest coverages and get the best deal for the size of your business without exhaustive research. When you don’t have the right broker, you risk losing out on better coverage, getting policies for a worse price, or not getting a new coverage that could have protected you before an incident occurred. The right broker can also help you fill out paperwork properly and help to lower your costs at each stage of your business.
Pay Per Worker
Workers’ Compensation insurance is calculated by classification of worker. Unless each of your employees makes the same amount of money and works the same hours, you could be losing a lot of money by bundling them into the same classification. For instance, a worker that makes $30 an hour should cost less to insure than workers that make $25 an hour. In fact, if a worker makes $25, it would cost less to pay them more each hour than the extra cost of insurance. Most employers would rather give their workers more money than spending it on a bad insurance policy.
Having the right safety training can help lower your insurance premiums. Contractors are legally required to have safety meetings every 10 working days. By showing you have properly given instruction for each potential hazard, such as how to use a harness, you’ll be better positioned to prove the employee had the right training prior to the incident. This can help against being sued by discontented employees.
At ABCO, we understand the insurance a contractor needs and can give many options in the right coverage. Contact us today to find out how we can help your business succeed.
It’s an exciting time of year–it’s almost time for college students to head back to campus. While many students still live on-campus, if you are a college student that is going to be in your own apartment this year, congratulations! This is one of the many steps you’ll take towards independence.
Although you may be focused on getting the perfect furniture and cool decorations for your new place, you should also be prepared in case something goes wrong. Now, you probably don’t want to think about it, but there are a lot of things that can happen at your apartment, and no, that doesn’t include any fun parties you might be throwing.
What do you do if someone breaks something in your place? Or your friend hurts themselves while dancing around your living room and decides to sue you? These accidents, while scary to think about, do in fact happen, and you should be ready just in case. Renters’ insurance is a great way to be prepared for the worst while hoping for the best. It will protect your belongings, protect you from any liability and also cover any living expenses if your apartment becomes unlivable for a time. Let’s look at these three aspects of renters’ insurance.
Property Replacement Basics
If you own an expensive laptop, a high-quality flat screen TV or any nice furniture, you might want to take care of it. One way you can do this is by protecting your valuables with renters’ insurance. How does this work? Well, you can insure each of your important belongings in your apartment, so that if thieves come and steal your things or there’s fire or water damage that occurs, you can call your agent, fill out any paperwork, and get the monetary value of each item back. This way, you’ll be able to replace anything that’s been stolen, damaged or destroyed.
The Essentials of Liability Protection
Let’s say you’re throwing an amazing party, and someone happens to slip and fall on a rug that you have in the living room of your apartment. They sprain their ankle or break their arm, and all of a sudden, that friend of yours is suing you. While it was obviously an accident, you still are responsible. With renters’ insurance, you don’t have to worry about footing an expensive medical bill. It will cover the cost of repairs for any damage that occurred, as well as the medical expenses for your friend’s injury.
What About Living Expense Coverage?
While your landlord should have insurance that covers any cost of repairs in case of a natural disaster, like a hurricane or fire, what it won’t cover is the cost of you having to live somewhere else while the building is being repaired. Renters’ insurance, however, will cover these costs, also referred to as living expenses. Even if you only spend a few nights at a hotel, you can still run up a hefty tab. That’s where your renters’ insurance will step in, so you don’t have to worry about a thing.
So, Where Can You Get a Good Renters’ Insurance Policy?
We know you’ve got a lot on your plate, from physics to frat parties. So, let the experts at ABCO Insurance Agency, Inc help you find the perfect renters’ insurance policy for you. Contact us today to get started.
If you are a company that sells computer hardware or software to another company, you would probably greatly benefit from investing in a good technology insurance policy. You will save yourself a lot of time and money if you do so, even if the initial cost of the policy seems expensive upfront. Whether you’re a startup or a larger, more established corporation, signing up for tech E & O, or technology errors and omissions insurance, is a wise idea. Let’s look at the basics of technology insurance, and specifically tech E & O insurance.
What Is Technology Insurance, Anyway?
Technology insurance is like any other form of insurance, except specifically for technology providers and technology companies. What does this mean, exactly? Well, let’s say you manufacture and sell computer parts to a computer manufacturer that creates laptops, netbooks and desktop computers. These parts are installed in the computer, and are supposed to work in order for the computer itself to work. If they don’t, then you have a problem. Technology insurance will cover you as the computer part manufacturer and protect you from having to pay any costs for anything related to damages or malfunctions.
What About Tech E & O Insurance?
This is a more specific and granular form of technology insurance. Let’s say you’ve developed a software program that processes data for analysis, and that you sell it to a computer manufacturer to include as part of their complete computer “package”, so to speak. However, when the software is used, it either doesn’t work or doesn’t draw any analytical conclusions from the data. This makes it pretty useless, doesn’t it? Tech E & O would cover you as the software company from having to pay damages related to the errors and omissions that occurred.
Do You Really Need This Type of Insurance?
The short answer is: yes! Most commercial general liability insurance won’t cover the issues that occur with technology, while adding a tech E & O policy or a more general technology insurance policy will greatly benefit you. It is always a good idea to be insured for things that you may suspect will never happen, but could. There’s always that “if”, so it’s wise to be prepared.
But What About Commercial General Liability Insurance?
While these policies are usually great at having a wide range of coverage, they will not cover anything related to errors and omissions. This may be considered by some to be a form of property damage, but it’s not, at least not in the more traditional CGL insurance sense. An error or omission usually just renders property less useful or useless. It’s not really outright damage to the property, so it doesn’t really fall under the scope of a CGL policy.
Get Technology Insurance Today
If you work in the vast field of technology and create products or services that are used by other technology companies or manufacturers, a good technology insurance policy is an excellent idea. ABCO Insurance Agency, Inc. can help you find the policy that’s right for you. Contact us today to see what we can do for you.
Did you know that the Atlantic hurricane season runs from June 1st to November 30th? If you don’t know much about hurricanes and the damage they can cause, now’s the time to learn. These powerful storms can destroy homes, boats, cars and more. They present problems ranging from flooding and water damage to violent wind gusts and even tornadoes.
In order to protect your family and property from hurricane damage, it is important to know a few helpful tips.
Before the Storm Hits
Long before a hurricane even pops up on the radar, if you live in a storm-prone area, you should have a supply of canned goods, drinking water and other non-perishable foods. You should include a manual can opener in this list as well. Remember, once the power goes out, it can take a while for it to turn back on.
Be sure that you also have a supply of flashlights and batteries. Also, if you take medicine, be aware that you may need to have enough for several days.
If you need to evacuate, be certain to board up windows or protect them with storm shutters. Secure any outdoor objects, including boats.
How Does Insurance Factor into Storm Preparedness?
While you may already know about the steps listed above to make sure your family is safe during the storm, you might not be aware of the limitations of your homeowners’ insurance policy. Keep photographs and documentation of your household valuables, and store copies of these documents in a safe deposit box at a bank or other secure location. This will help you when or if you need to file a claim.
Also, it is obviously very smart to have the claims telephone number of your agent or insurer in a safe place that is quickly located in the event of an evacuation. And of course, review your policy to see what is covered and what is not. Remember, flooding is generally not covered under standard homeowners’ insurance policies.
What to Do After the Storm
Of course, the first thing you want to do is make sure you and your family are all right and safe. That is clearly the most important thing. Once that occurs, you will want to report any property damage to your insurance agent immediately. Take photos of any damage to document it. If you’ve evacuated, be sure your insurance agent knows how to contact you.
It is also a good idea to separate damaged items from undamaged items. This will help your claims adjuster complete an inventory of the damage and speed up the settlement of your claim.
Be sure to mitigate, or protect against, any additional damage. Cover holes or openings in walls, windows and roofs. If you think it is unsafe to do this on your own, hire a contractor and make sure to keep the receipts of the work.
Get Homeowners’ Insurance Before the Storms Come
While it may already be hurricane season, it is still a wise idea to shop around for a quality homeowners’ insurance policy. At ABCO Insurance Agency, Inc., we will compare rates from 25 different insurance companies to make sure that you get the best deal that’s right for you. Contact us now, before the storms come.
As a small business owner, you know that you’ve got a lot of expenses to worry about, from renting a space for your bakery to purchasing raw materials for your crafts. Depending on the type of business you own (like a cupcake shop compared to a fine crafts store), you may have more costs some months than others. It can definitely be difficult to budget.
However, one cost that is essential is business insurance. Despite misconceptions, this form of insurance is very useful and can be well worth the expense. Besides, if you shop around, you could still find a good rate.
Let’s take a look at some of the basics of business insurance.
Who Needs It?
Like many small business owners, you may feel that you don’t really need this kind of insurance. After all, will you really encounter a situation in which it would be useful? The truth is, yes, you probably will. At some point during your company’s lifespan, you may have to deal with a natural disaster, a break-in, theft or even someone suing you. Business insurance can cover all of these incidents.
What if I Have Other Insurance?
You might be wondering if you need business insurance if you have renters’ insurance. While renters’ insurance can cover some physical property, such as an expensive camera or laptop that you use for your business, it doesn’t cover everything. In fact, many renters’ insurance limit what can be covered under “business pursuits”, which means the entirety of your small business may not be covered.
What if Something Really Bad Happens?
If, say, your work laptop gets stolen, some business insurance policies will reimburse you for the total amount you paid for that computer. This is a recent change in insurance. Usually, you would get what it was worth at the time it got stolen from you. However, be aware that not all policies offer this perk, and that policies that do offer it are generally more expensive.
What Does “Liability” Mean?
This can be confusing for people to understand, because the insurance definition of “liability” differs a little from the layperson’s definition. In insurance terms, liability essentially means that if you are negligent and someone gets hurt because of it, that person can sue you.
This is different from “errors and omissions.” This term means that there was a professional mistake, or error. For example, if you are a photographer taking photos for a big charity event, and your hard drive fails or you miss an important shot of the CEO, that would fall under this category. If your business insurance policy includes professional liability, which does not usually occur, that is what would cover you if an error or omission happened.
Get Covered Today
Remember, not every business insurance policy is the same. One may be better for you than another, and you also have to factor in comparing costs and benefits. At ABCO Insurance Agency, Inc., we offer you the chance to compare rates from 25 different insurance companies. That way, you can find which would be best for you. Contact us today to get started.
Did you know that basic homeowner’s insurance does not cover floods? Many new homeowners are not aware of this fact. That can cost them.
Floods occur all across the United States—in all 50 states, in fact—and often strike with little or no warning. One moment, you may just have a little water in your basement. The next, your living room could have two feet of water in it. Floods are scary and can be very dangerous, and a decent amount of flood claims happen outside of traditionally known flood zones. This makes it imperative that a new homeowner has quality flood insurance.
There are some basics of flood insurance that every homeowner should be aware of. Read on to learn more about them.
What Flood Insurance Includes—And Doesn’t Include
Flood insurance is offered through the National Flood Insurance Program, or NFIP. NFIP is administered by FEMA (the Federal Emergency Management Agency). This kind of supplemental insurance covers up to $250,000 in structural damage, as well as up to $100,000 in content loss. Content, in this case, refers to objects like furniture.
Homeowners should know that the terms “flood” and “water damage” are not interchangeable. A flood is more about damage to the environment surrounding you, as well as your house. Water damage refers more to cracked or burst pipes, and is not covered by flood insurance.
Also, when it comes to the basement—probably the place where most floods begin—it is important to note that only essentials will be covered by flood Insurance. If you have a finished basement that has a high-definition flat-screen TV, that TV will not be covered by flood insurance.
But Do You Really Need It?
The short answer is: yes. Many homeowners with flood insurance only have it because they’re required to purchase it. For example, they may live in flood-prone areas, like near the mouth of a river. However, even if you don’t live near a river or other body of water, you should still consider flood insurance. Many areas that have been hit in the past by hurricanes weren’t necessarily considered high-risk areas in terms of flooding. Many people in those areas still had damage to their homes, though. Unfortunately, not all of them had flood insurance.
Flood Insurance Can Cost Less Than You Think
Even if you don’t live in a flood-prone area, you should still consider getting flood insurance. It can cost less than $1,000 a year to protect your home from flood damage. If you’re ready to insure your home against damaging floods, contact an ABCO agent today to compare rates.