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Contractors Insurance… The Sleeping Giant
Lots of people around the country are looking to hire contractors to do a wide variety of tasks for them from remodeling a kitchen, to building new homes, and more. Because of this there are many people looking to go into the contracting business.
But what many of these new contractors are unaware of is the fact that they must have contractors insurance.
Contractor liability insurance is absolutely vital because there are so many things that can go wrong in the construction industry. Contractors need to make sure they have liability insurance to protect themselves. The average contractor today carries about two million dollars worth of insurance at all times.
The amount and type of contractors insurance varies from contractor to contractor depending on the exact type of work being done, how much liability coverage will be carried, how much the contractor actually makes, and the amount of payroll expense being carried by the contractor.
For further clarification on any point or to get super competitive quotes, click on the blue links above.
Generally, they will make a down payment on the insurance and will then make regular monthly payments for about 9 to 10 months.
There are a few things contractors should look for when deciding on an insurance company to provide them with contractor liability insurance.
First off, all insurance companies receive some sort of rating (A++, A+, A, A-, B++, and so on). It is the responsibility of the contractor to learn the company’s rating and how long that rating has been held.
Another factor of importance when choosing contractors insurance is how accurate and timely the company is when asked to provide any required paperwork.
When you need to provide certificates for work with very specific, rigid deadlines, it’s imperative to work with a company that is able to provide any necessary paperwork very quickly.
For example, in most construction work, you are able to bid on the work without showing any certificates. But generally, you cannot actually begin the work until the certificates are in place- and these must be original certificates each and every time.
Finally, the contractor should also determine whether to go with an admitted contractor’s insurance company or a non-admitted contractor’s insurance company. An admitted company is one which has set aside funds to protect their policy holders in case that insurance company goes out of business.
A non-admitted company does not set aside these funds company-wide, but may have some agents who have done so.
The bottom line is if you wish to get into the business of contracting, you must protect yourself and your clients by having contractors insurance.
Product Liability Insurance for Small Business… Scary Stuff!
You have just recently opened your first toy store. You inwardly smile as you see the children with their parents, running around the store thrilled with all of the sights that greet their eyes: the talking Barbie dolls, the remote-controlled dump trucks, the giant castle play area for a backyard.
Suddenly you realize that a little girl over on aisle four is looking over one of the newest products to your shelves, a mini-bake oven.
For a moment, your mind frets over potential issues if the little girl doesn’t like the product, but then you have a mental sigh of relief because you know you have liability insurance for small business coverage.
Check out the links on the top of this page for competitive quotes.
Many new business owners would like to dismiss the need for liability insurance for small business, but there is a very good chance that this is a decision they will come to regret. Once you choose to enter the “stream of commerce” you become part of the chain of people that can be sued for damages if a product is faulty in some way.
Just because you didn’t manufacture the product doesn’t matter, the law says if you are going to actively sell something, you become responsible to a certain degree if that product should be defective in some manner.
There are three basic areas which are usually covered by liability insurance for small business: manufacture and production flaws, design defects, and defective warnings or instructions. Manufacture and production flaws are when something goes wrong in the production process and creates a flaw.
This means the product will fail even though that was never the company’s intention. While you are not actually part of the manufacturing process, you are considered liable because you are offering that product for sale to the public.
Design defects are those flaws in a product which make that product inherently unsafe.
One very famous example of a design defect was in the production of the Ford Pinto in the 1970’s. Because of its design, the Pinto was more liable to catch on fire than most other cars on the market. This knowledge came out after thousands of them had already been sold to the company.
Quite a few dealerships were forced out of business because they had sold this car to people and didn’t have any liability insurance for small business. When the news of the Pinto flaw got to the public, they demanded their money back first from the dealerships.
When a product doesn’t carry proper warnings or instructions, retailers can also be held liable for these errors. This is why McDonald’s coffee cups all carry very strong warnings about the temperature of their coffee.
If you are going to run any type of business where you will sell a product or repair a product, it is vital that you have liability insurance for small business to help protect yourself against claims of damaged products.
A Bedtime Story About Commercial Property Insurance
A rather sad story of Commercial Property Insurance (or lack of)
So, you’ve opened your first store, you’ve made sure you have product liability insurance, and you’re ready to open your doors to your first customers & you stroll to the front of the store.
Suddenly, you trip and start to fall.
You reach out to try to grab onto something to prevent your downward momentum. In doing so you drag an entire endcap display of electronic video games crashing down with you.
The endcap is completely destroyed as are some of the games, but it’s ok. You’re not actually injured and you know you have commercial property insurance which will cover the costs of replacing the endcap and most of the games.
Should’ve clicked on one of the blue links above BEFORE the fall.
You hand the key over to a sales associate to open the doors and begin the process of cleaning up the debris.
Any commercial business needs to have adequate insurance to cover any damage to the building, its contents, and items around the building. There are two very basic forms of coverage, the property that is actually insured and coverage for events which lead up to the loss.
Often policies will just cover basic equipment such as the building itself, inventory, and any furniture or equipment necessary to operate the business. Other policies will include things like money held in a store, records and important documents and that type of thing.
In terms of commercial property insurance which covers events leading up to damage (known as perils) there are two basic forms of policies: the named perils policy and the all-risk policy. The named perils policy will only cover damage caused by specific perils named in the policy.
If damage occurs to the business from something that is not actually named in the policy, the insurance company will not cover the costs to repair that damage.
In an all-risk policy, all perils will be covered unless otherwise specified in the policy. The all-risk policy generally carries higher premiums than the named perils policy, but it is also the most widely recommended policy for most businesses.
The business owner will need to decide if the commercial property insurance will pay the replacement cost basis or an actual cash value. With an actual cash value policy, the insurance company will pay the costs to replace or repair the damage minus the depreciation to the property.
This type of policy generally comes with lower premiums because it doesn’t pay out as much as the replacement cost basis policy.
There are a number of factors which will be taken into account when determining the premiums set for the commercial property insurance policy.
The type of building, safety measures which are already in place versus those which are missing, the location of other high-risk areas, and any outlying buildings or structures which will be included in the policy.
Even though it might seem like a waste at the outset, business owners who have had to deal with natural disasters like hail, tornadoes, and other weather damages or who have had their building catch on fire know that commercial property insurance is almost as important as having actual customers.
Commercial Insurance Brokers… Who Needs Them?
Commercial insurance brokers or agents, help you to find the best possible commercial insurance plans for your business needs, for a fee, of course.
The advantage as far as you are concerned of hiring commercial insurance agents or brokers is that they don’t represent any particular insurance company and are more likely to find you the best coverage at affordable prices, and to be more impartial in judging plans and benefits.
You can actually achieve the same outcome by clicking the blue links above.
In addition, commercial insurance brokers are professionals who are masters of their own field, something that you are not, and are much more capable of understanding the complex insurance needs of your business, and getting you the best deal for coverage.
It is always a good idea to seek the help of a highly recommended professional rather than blunder around on your own and lose by it.
A commercial insurance broker, however, is not a typical insurance agent who represents a particular company. The broker is independent, and therefore in a better position to find you the business coverage plans that best cover your needs, regardless of what company offers them.
They are highly specialized professionals, and will, for a price, put together the perfect commercial insurance package for your needs. Commercial property insurance brokers, for example would be in a better position than a layman, to judge just what kind of coverage, and how much of it, your commercial property requires.
Once that has been determined, the broker would also search through the available products in the market, to find the deal that best works for you.
Similarly, for a business owning a lot of vehicles with different kinds of insurance needs, commercial auto insurance brokers might be a good way of simplifying the process of buying coverage.
Commercial insurance brokers help to get you exactly the right coverage to protect your assets, but make sure the professional you choose understands your specific kind of business, and its particular needs.
The commercial insurance agents you choose would then negotiate with various insurance companies, to get the perfect deal, or at least the best possible deal, for you.
The entire process can simplify the hassles of buying insurance, and help you avoid the common mistakes that arise from not knowing enough. Commercial insurance brokers also know the entire range and variety of insurance products available to you, and can make confusing policies and rates, simpler to understand.
Do I Really Need Commercial Motor Insurance?
Short answer: YES.
Commercial motor insurance is the specific kind of insurance policy that covers risk and losses that can be incurred by commercial vehicles. The reason there is a need for a specific set of insurance for commercial vehicles is the specific set of risks that are associated with them.
Since owning and operating commercial vehicles is different from your typical family car scenario, it only makes sense that there would be a separate kind of insurance for this situation.
Click on the blue links above to check out some options.
Commercial motor insurance reduces your risk by providing coverage at a small monthly or annual premium. In case one of your commercial vehicles is involved in an accident, you would be covered for all the damages arising from it, even if the total amount exceeds the sum total of premiums you have paid to date!
You may have paid only two premiums on your commercial vehicle insurance policy when the accident happened, but you would be covered for the full amount nevertheless.
Road accidents are an everyday occurrence, and chances are that you commercial vehicle is likely to be in some accident, somewhere, at any given time. With the right commercial motor insurance policy, you can reduce, or even eliminate, the financial risk to yourself or your business, and pass it on to the insurance company instead.
Even a fairly cheap commercial vehicle insurance policy will help to protect you and your business from possibly crippling financial loss. If, on the other hand, you are not insured, a car crash can mean a huge amount of outlay in repairs, as well as possible legal spending in case of liability and lawsuits.
To find the right coverage, consider your particular needs first, and then search for commercial vehicle insurance quotes through your favorite search engine. You can easily find the insurance companies that have the lowest premium rates, with a simple compare and contrast exercise.
Whether it is an employee driven car, owned by the company, or a vehicle both owned and operated by the business, it is better to be covered for any possible financial loss. In the end, whether it is the CEO’s company-bought Porsche, or the company mini-van that ferries employees back and forth, the company might be held liable for any damage or loss caused by it.
This is exactly when the commercial motor insurance can come in handy, and save you a huge amount of expense.
Compare Car Insurance Estimates BEFORE You Drive Out
Compare car insurance estimates before you drive out of the showroom & keep it one of the best days of your life. The day you buy that brand new car you’ve been eyeballing and dreaming about, maybe for years, and it’s finally here.
However… before you’re going to be allowed to bring your new baby home, you will have to provide proof of insurance.
Click on the above links & get these suppliers fighting for your business.
But you’re a smart shopper so you know better than to just run to the nearest car insurance provider and take whatever policy they offer at whatever, outrageous price, offered. No, you are going to compare car insurance to ensure you get the best coverage you can afford.
There are a number of ways to compare car insurance estimates.
You can call a number of insurance companies directly, tell them exactly what type of coverage you want, and have them give you a rate. Nearly all major insurance companies are willing to provide you a quote. They will do this even if you’re not already one of their clients.
These quotes do not cost you a cent- after all, the insurance companies want your business so they’ll work with you to a degree at the outset. Then you can run a comparison on your own. This is very reliable, but also extremely time-consuming…and you’ve got that beautiful new car just sitting on the lot, in the sun, dreaming of living in your garage.
Another option to compare estimates is to use the Internet. If you go to a search engine such as Google, Ask, or Dogpile and type in some keywords such as “compare car insurance estimates,” you will get back a gigantic list of websites which enable you to compare policies in one location.
Or… click on a couple of the blue links above & get some competitive quotes right here!!
It is recommended you use websites which are not affiliated with a specific insurance company. You’ll see that insurance companies such as Geico, State Farm, and Progressive all offer to compare car insurance quotes for you. You must keep in mind that these companies also want your business.
There are a number of fairly reliable, easy to use websites that you can use instead.
With most websites, you’ll first be asked to tell exactly what type of automobile you’ll be purchasing and your zip code. This is to ensure they are searching through their databases with the correct information, because car insurance laws vary from state to state.
You will usually be asked a series of questions such as age, years driving experience, and whether or not you already have coverage on another vehicle. This is because some insurance companies offer a discount when you insure more than one car with them. You will also be asked if you’ve ever received any tickets or been in any accidents involving other vehicles.
Sometimes you’ll be presented with a list of the most popular insurance companies in your area from which to choose those that will be compared, but this is not always the case. At some websites, it’s assumed you wish to compare car insurance through the major insurance companies.
Ultimately, it’ll be up to you to determine which company best suits your needs. You will then have to contact that company to establish a policy so you can then return to the dealer. Your proof of insurance allows you to drive away in your new vehicle, safe in the knowledge that you are covered. You will know that the research you conducted by comparing car insurance estimates has guaranteed you are not paying too much for your car insurance.
Commercial Liability Insurance… One NOT to Be Forgotten
Commercial liability insurance is the coverage you can buy to offset any liability your businesses or commercial establishment might face in the event of a lawsuit. The policy would then pay a part, or the entire amount, of expenses and damages where the company is faced with a legal liability situation.
To checkout current pricing & find out who REALLY wants your business, click on a couple of the blue links above.
In order to survive and thrive in the current scenario, with lawsuits being filed for the smallest, most insignificant, of reasons, it is essential to have commercial liability insurance. The cost of defending the company against claims and lawsuits can be enormous and damaging, unless you have had the forethought to cover yourself against just such an eventuality.
Adequate insurance coverage can make the difference between the survival and bankruptcy of your business. After all, if you had to bear the cost out of pocket, every single time, the pockets would soon run empty, no matter how deep they are. There is a range of such products available, and a little research can enable you to find a good plan for your needs.
Companies that provide this type of insurance reserve the right to decide the eligibility, both who and how much, of the client for coverage. General commercial liability insurance is the basic coverage, and a must have if you own a commercial property or a business.
You can buy this kind of coverage as an independent policy, or you can club it together with many other kinds of policies to create your own package, where the policy would also include coverage of your property.
However, do keep in mind that the commercial liability insurance coverage you would get as a part of a package deal would have lower limits. Consider a separate liability insurance policy if you fall in the high risk category. Consider the amount of risk your business generates and choose your insurance package accordingly. Location can also be a factor, as some states have a record of high awards for lawsuits.
If you buy adequate general commercial liability insurance, the insurance company will have to pay your defense and legal costs if the liability is covered in the plan. This would include compensatory or general damages that you become legally bound to pay.
However, the punitive damages may not be covered, especially under a general policy. The policy will list a maximum payable amount, and a maximum amount per occurrence, so check that they cover your needs before you buy the plan.
Commercial Health Insurance
Commercial health insurance, or private health insurance, is the kind that is NOT paid for by the government. Unlike Medicare, Medicaid, and such like, commercial or private health insurance has to be paid for by the person themselves, their employer, their union, and so on.
Commercial health insurance companies have a range of these products that they offer to their clients to cover their various needs, but one must keep in mind that the rules that apply here are different from the ones applicable to government sponsored plans.
Click on the blue links above & get these guys fighting for your business.
This type of insurance can be an indemnity plan (fee-for-service), or more recently can be an HMO (health maintenance organization), a PPO (preferred provider organization), or a POS (point-of-service) plan. Indemnity plans cover a pre determined and limited range of benefits and the doctor is not necessarily specific.
In other words, you can choose to get the listed services from any doctor, and the plan should cover your costs.
HMOs will give you the minimum services required by your state, but you have to choose a primary care provider from the HMO list. A POS Plan from a commercial health insurance company also involves choose a primary care physician from a previously compiled list, but you CAN choose to go to a different doctor if you pay more out of pocket.
If you have a PPO commercial health insurance, you will have a list of doctors you can see at a discounted price or go to off the list doctors if you pay much more. Also, you will not have to choose a primary care physician at all.
Commercial health insurance companies reserve the right to renew or refuse to renew the policy when the term period ends. At the time of renewal, premiums might be re-adjusted, up or down, and perils insured against, or other benefits might be reduced.
And most important, make sure you read all the fine print before you buy. So many people make substantial financial commitments without reading the fine print. We all know it’s an extremely boring thing to do but it’s just one of those things that must be done.
You need to be aware of exactly what the terms of your plan are and what it’s going to cost. This will help you avoid unpleasant surprises in the future.
Commercial Building Insurance
Commercial building insurance, as the name implies, is insurance that specially caters to the needs of owners of commercial buildings.
No startling news there!!
These are office buildings, malls, stores, or any other buildings used for a commercial purpose. When you own such a building, chances are that you face a number of risks.
From fire hazards due cafes or restaurant kitchens, to water damage from businesses and offices housed in your building; from earthquakes and tidal waves to terrorism and acts of god, any number of things can go wrong, impacting not just the safety and integrity of the building, but the profitability of the businesses housed in it, and by extension of the building owner.
All these and many more such factors make it essential for the owner of a commercial building to get commercial building insurance.
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There might be other responsibilities that may come with owning the building. For example, the owner might be responsible for maintaining the common areas and the parking lot, or the general upkeep and maintenance, such as fixing leaky roofs.
Every commercial building has a different set of problems and risks associated with it, and a unique set of specific insurance needs. However, there are also a number of general needs that are common for most buildings of this type. Commercial building insurance is the ideal way to make sure that your building is protected from losses.
However, there are literally hundreds of insurance companies out there, and rates can vary quite widely. When you decide to go shopping for a policy, there are ways to make sure that you get the best protection and coverage, at the best rates.
This type of insurance is likely to cost you a bit of money, obviously, and it does not pay to rush into it with both eyes closed… so make sure you do some research.
Search online for quotes, so that you can do a bit of comparative shopping. Compare and contrast the commercial building insurance rates from as many companies as you can to find the best rates for you. Compare the different provisions and types of coverage that are available and consider a basic liability policy to protect yourself from injury others incur while in your facility.
When buying commercial building insurance, cover all possibilities. Property damage insurance is the usual basic package, to cover damage or destruction while liability coverage protects from lawsuits. Another possibility for additional coverage is rent interruption insurance.