What is professional liability insurance and why do you need it?
One question people ask me a lot is: what is professional liability and what does it cover? Professional liability is like a general liability policy for industries that provide service and/or advice. It is also commonly referred to as errors and omissions insurance.
This is not to say that a general liability policy should not be chosen in addition to a professional liability policy for these service industries. In some cases, especially when there is an office where customers visit, a general liability policy should also be considered.
Professional liability policies not only pay out for any awarded damages to another party but they can pay your cost of defense in these situations as well. So even if a suit is unwarranted, the cost to defend yourself can cripple your business if you don’t have a policy in place to protect you for this.
What types of industries need professional liability or errors and omissions policies?
What is a retroactive or retro date?
Professional liability policies are on a claims made basis. What this means is that your policy would cover any losses that arose during that policy period only. A retroactive date can be used on these policies that will go back to the original date you began your business.
So if your policy was in effect from 04/01/2018-04/01/2019, your expiring policy would no longer be on the hook for any claims made after that expiration date of that policy. If you moved to another insurance company that began on 04/01/2019 then they would pay out on any claims made after 04/01/2019 regardless on when the said error occurred.
If you started your business in June of 2003 than that would be your retroactive date on your policy so any losses during that policy term would pay out for any errors that occurred since your business began. This is why your rates for errors and omissions policies increase the longer you are in business.
What is tail coverage or extended reporting period?
Tail coverage, also known as extended reporting coverage, cover claims arising after the policy period is over. This is common on a business owner that retires or sells his business. You pay a premium based on how long this tail coverage extends for.
What does retention mean in professional liability?
Retention, when referring to professional liability insurance, refers quite simply to your deductible. Typically deductibles chosen are much higher for these policy types. Most common retention ranges from $0 to $10,000 with the most common around $2,500. This means that if you have a loss you will be responsible for your deductible before your insurance company begins paying on the claim. Keep that in mind if you choose a higher retention option.
What are some common claims covered on professional liability?
Errors
Omissions
Breach of contract
Misrepresentation
Inaccurate advice
Let’s give a few more examples of real life claim situations.
A computer consulting and security company provides you with advice on how to keep your computer server and customer data safe. The advice they provide is less than adequate to prevent a data breach. This results in client information being stolen. You then file a professional liability claim against the consulting company’s policy.
You hire a property manager to manage a rental property for you. A guest of the tenant falls due to a broken step. You file a claim against the property manager’s professional liability policy for failure to maintain safe conditions of the property.
You buy a property from a real estate agent to use as business office. Your agent wrongfully tells you that this will be fine. Due to zoning laws, you are forbidden from using that property for your business office. You file a claim against the real estate agent’s professional liability policy.
You should be aware that a professional liability policy is likely not enough for you to be covered in every situation. These policies will not cover you if you cause bodily injury or property damage to someone outside the scope of a professional liability policy. This is why we would recommend you having a general liability or BOP policy to supplement this policy to avoid any uncovered items arising.
If you have any further questions as to what policy is best for your business, please give us a call at 704-494-9495 and we would be happy to discuss any questions you may have.
Getting your trucking insurance policy from a local agent is extremely important. Customers tell us that “finding truck insurance near me” is not easy to find. The main reason for this is because the trucking industry is complicated. Most of them had been insured with an agent or call center across the country. Dealing with a local agency that you can sit face to face with can be very helpful though when you are dealing the complications and claims situations.
Commercial trucks can include any of the following types of businesses:
Types of commercial trucks
Dump Truck Insurance
General Freight Hauler Insurance
Auto Hauler Insurance
Contractor Insurance
Public Transportation Insurance
Tow Truck Insurance
Non-Emergency Medical Insurance
If you own a business similar to one of the ones listed above, then you will likely have either a Federal or State of NC requirement to be able to acquire and keep a commercial tag. Even if you don’t have those requirements, then you may have requirements from a contract that requires the same or higher limits as those required by the Federal Motor Carrier Safety Administration (FMCSA) or the state of NC.
What Types of Coverage Do you Need?
This question will vary depending on your business type, the requirements of the State of NC and Federal Government.
Business Auto Liability Limits: You will have some limit of liability required, depending on several factors. These limits can range from $30,000/60,000/25,000 up to $5,000,000 combined single limits. The amount of coverage required can depend on your vehicle, radius, what you are hauling, gross vehicle weight, and if you are crossing state lines to name a few.
Cargo Liability: This covers the commodity that you are hauling and can vary a great degree depending on the contract requirements and the Federal or State of NC requirements.
Physical Damage: This covers the value of the vehicle you are driving, and the coverage required will depend either on your comfort with losing the value of your vehicle in the event of a loss or the bank requirements of the bank you are financing the vehicle through.
On Hook: This covers the vehicle you are hauling in towing insurance risks. The value of the coverage chosen should be minimally, the highest value of the vehicle you would ever tow.
General Liability: This covers your negligence outside of hitting someone with your vehicle or damage to the items you are hauling.
Umbrella: An umbrella or excess liability policy will cover above and beyond where your underlying policy limits leave off. You want this policy in place to protect yourself further or to satisfy a contract. Many of the bigger contracts will require this policy today.
Workers Compensation: This covers your legal liability for your employees or subcontractors and may even be required by a contract even if you don’t have employees. Even if you hire only one independent contractor, you are obligated by NC law to carry workers compensation.
Commercial truck insurance takes on a whole new level of responsibility than your personal auto insurance. You may want to consider consulting an agent that is near you, to help you with local State of NC laws and help you determine what coverage will best suit you for these requirements.
Outside of government responsibilities, you will likely encounter contract requirements that a veteran agent and agency can help you navigate. You will also want an independent agency that can help you get quotes from multiple carriers. For those of you saying I want the best commercial truck insurance near me, please contact us at 704-494-9495. We are here if you have any questions or would like a shopped quote from the top insurance companies in your industry.
Garage repair facilities have special insurance requirements that can be a bit different from other types of businesses. You have a liability exposure not only your business location, but also for your customer’s vehicles. This makes garage insurance in a class by itself. There are several different insurance policy types you will want to make sure you are covered for.
Your policy or policies should likely cover all or most of these exposures. Insurance for these businesses can be quite confusing. In fact, even some insurance agents get confused on proper policy coverage required. Like for instance, what is the difference between garage liability and garage keepers legal liability insurance? That is why you should be dealing with an expert. We will discuss some of the specifics now.
Types of Repair Shops
There are many types of shops where the described coverage come into play.
Below is a list of the more common types of garage shops in Charlotte, NC.
Auto Body Shop
Auto Repair Shop
Brake Shop
Tire Shop
Truck Repair Shop
Car Wash
Fix It Yourself Garage
Some of the common insurance policy types are shown below.
Business Owners Policy (BOP)
A business owner’s insurance policy covers liability for your premises along with many other coverage options. There are a lot of bells and whistles on these policy types but make sure the requested endorsements have been added because some may have to be selected as an add-on individually.
Garage liability covers any damage incurred while driving a covered vehicle. This could be a vehicle owned by the business and scheduled on the policy, a customer’s vehicle, or an employee’s vehicle used in the business. The vehicle itself is not covered under this coverage type, only what is hit by that vehicle. We will discuss this under garage keepers legal liability (GKLL). Garage liability will also extend to premises liability as well. This means that there would be coverage for a slip and fall of a client while on the business premises.
Garage Keepers Legal Liability
Garage keepers legal liability insurance covers damage to your customer’s vehicles while they are in your care, custody, and control. This includes coverage for theft, weather related losses, accidents, etc. Rates can be improved if you keep certain security measures in place. This can include security systems, gates, fences, cameras, and garages to store the vehicles.
Business Auto Liability
Any trucks or autos owned by the business should be scheduled under a business auto policy. You can choose liability coverage which will cover anyone or anything hit by your business owned cars used in your business. You can also choose to have physical damage coverage on these vehicles which will cover comprehensive and collision losses.
Workers Compensation
Workers compensation, also known as employer’s liability, works just like any other business for this policy. It will cover you at the limit you choose for any employees while they are engaged in business operations. This policy picks up any medical bills as well as payments for being out of work due to the injury or illness incurred while on the job. You should be aware of any NC laws regarding workers compensation mandates. You can check these out here. http://www.ic.nc.gov/
Commercial Umbrella
A commercial umbrella policy will cover above and beyond over any underlying coverage that you have in place at the umbrella limit you choose. You should make sure that you know what the umbrella policy is over. An umbrella policy could be over just certain types of policies, like a general liability or garage liability policy only. You should make sure that it picks up over any of the policies you wish. Further, you should make sure you have the minimum underlying limits on each policy that the umbrella policy is over. Insurance companies require you to have certain underlying limits on your policy before an umbrella policy will pick up and pay.
Rating Factors
Certain things will play a factor in the rate for insurance for your auto repair shop. Some of those things are shown below.
Years in business
Claim history
Sales amount
Total payroll
Number of employees
Security measures
Details of the business
Types of coverage chosen
Previous insurance
Not all auto repair shops are the same. Nor should the insurance policies for those shops be the same. Give us a call today at 704-494-9495 to discuss in detail any questions you may have. We will also be more than happy to get you insurance quotes from our numerous carriers. You can also email us at contact@pegramonline.com.
I am often asked to explain what a personal umbrella insurance policy is. Put simply, an umbrella policy is an excess policy that covers you where your underlying limits leave off, at whatever umbrella limit you choose. Umbrella insurance policies give you an extra layer of protection over top of your other personal insurance policies.
This policy is oftentimes purchased as your net worth grows. In our litigious society today, it is very important to protect your assets. Many times it is predatory claimants that will come after you once they find out you have something to lose. Most times though, it is there to protect you against catastrophe situations that may arise, such as major accidents or lawsuits.
What Types of Policies Will My Umbrella Policy Cover?
Most of your personal insurance policies will be covered under your personal umbrella insurance policy. An umbrella policy is what is known as a follow-form policy. A follow-form policy means that if your underlying policy covers you on a claim, then your personal umbrella policy will pick up where that policy left off. Some common personal insurance policy types include:
Auto Insurance
Home Insurance
Motorcycle Insurance
Boat Insurance
RV Insurance
Seasonal Home Insurance
Rental Property Insurance
Personal Watercraft Insurance
How Much Does an Umbrella Policy Cost?
Most umbrella insurance policies are quite affordable. In fact, they are probably one of least expensive personal lines policies available. Typically for a household with 2 drivers and 2 vehicles, the premium for an umbrella policy will run around $200 per year or less. The premium is based on several risk factors.
How is an umbrella premium determined?
Some of the most common rating factors for umbrellas are shown below.
Number household of drivers
Number of household vehicles
Age of household drivers
Driving record of household drivers
Number of residences owned by insured
Number of other owned toys such as motorcycles, boats, RV’s, etc
When Should I Purchase an Umbrella Policy?
The short answer is anytime you have a concern of being sued you should buy an umbrella policy. We have some clients that purchase these policies when they are very young and have very little net worth. Others will purchase one as they start to gain some equity in their homes or other assets. Still others will do this when their kids reach driving age and there is a concern that they might be involved in auto accident that might cause them to be sued.
There is no perfect answer for everyone. You have to weigh the costs versus the rewards. With the cost of the premium being so small, there isn’t a lot holding you back from protecting yourself. The chance of having an umbrella claim is significantly less than having a claim on your auto and home policy. However, when you do need to file an umbrella claim, it is typically for a large sum. There are many cases where uninsured people lose everything if they aren’t adequately covered. With the benefits outweighing the costs, most people find that $200 per year is worth the peace of mind.
What Liability Limits Should I Have on My Underlying Policies?
While each company can vary on their minimum underlying limit requirements, the most common minimum limits are shown below by policy type.
Auto Insurance- $250,000 Bodily Injury Per Person, $500,000 Bodily Injury Each Accident
Home Insurance- $300,000
Other cycle or boat insurance policies- Either $300,000 Combined Single Limit or $250,000/$500,000 Split Limits
It is important to understand that if you don’t already carry these minimum limits, you would need to increase them to qualify for an umbrella policy. There will be an increase in premium for the increase in limits as well. Most times the increase in minimal, depending on what your current limits are.
What Else Do I Need To Know About Umbrella Policies?
There are some other important concerns you should be aware of when you have an umbrella policy.
Notify the carrier if anything changes. This includes new cars, drivers, residences, toys, etc. It also includes any new major violations. Most companies will send you a questionnaire at each renewal period to make sure they have the updated information.
Most companies will offer umbrella limits up to $5,000,000. Ask for quotes on each $1,000,000 layer until you hit your comfort level based on premium. Find your sweet spot.
Be prepared for higher rates when household drivers are inexperienced or if you have a driver with a DWI or other major violation.
Your personal umbrella policy will only cover personal lines underlying items. If you have a business and business policies then you should purchase a commercial umbrella policy over those underlying policies. For info on commercial umbrellas or other commercial policies check out one of our previous blogs on the subject.
Ownership matters. Make sure all items are owned by the same named insured. Due to insurable interest, you must make sure all of the underlying policies are also in your name and that the umbrella policy matches that name. Typically this means placing everything in your name and your spouse’s name.
We write umbrella policies through multiple companies. We take all factors into consideration when we shop out these policies. In some cases it is best to have all policies with the same company. In others, the rates are much more affordable to spread them out to multiple carriers. As an independent insurance agency, we put your needs first. Please give a knowledgeable agent a call at 704-494-9495 for a quote or with any other questions you may have regarding umbrella policies.
Restaurant insurance policies have very specific insurance differences compared to that of other types of businesses. There are varying factors that can be brought into a suit in the event of a claim. Each restaurant is different and has varying degrees of risk. We will discuss some of the common claims types and coverage options to protect you if you have a claim. There are so many different types of restaurants and there is no one size fits all policy for all restaurant types. When determining the right type of restaurant insurance policies for you, make sure you are dealing with a professional that can walk you through the options and foresee some of the future claims you may incur.
Some common restaurant types
Fast Food
Fine Dining
Food Truck (check out our blog on food truck insurance)
Bar
Night Club
Deli
Brewery
Lunch Counter
Cafe
Bistro
Buffet
Cafeteria
Coverage Types
Restaurants have a large array of needs for insurance. It is important that you sit down with an insurance professional and discuss all of the liability exposures you may face. We will discuss some of the more common policy types that restaurants choose to cover themselves.
General Liability
You should choose a comprehensive general liability policy sometimes referred to as a BOP(Business Owner’s Policy) for your restaurant. You want to make sure you are covered adequately for most perils. BOP policies offer many endorsements that can be added to your policy to lower the likelihood of an uncovered peril.
Some of the common perils under this policy type include:
Customer slip and fall
Food spoilage
Advertising liability claim
Food poisoning illness
Crime Insurance
Any acts of dishonesty by one of your employees are covered under a crime policy. In many cases, this can be added as an endorsement under your general liability policy. These policies will pay out for losses you have incurred due to some of the following types of crime insurance.
Theft of money or securities
Employee dishonesty
Forgery
Funds transfer fraud
Computer fraud
Counterfeit money
Liquor Liability
If your restaurant sells alcohol of any kind, you need to have a liquor liability policy in force as part of your restaurant insurance checklist. Your general liability policy will exclude this type of loss. If a suit comes back in any way against an over-served patron it will also likely fall back on your establishment. Remember, your employee doesn’t even need to be negligent for you to get sued. A liquor liability policy will pay the costs to defend you as well. Discounts are often available if you have completed training with your staff on reading the signs of an inebriated customer. We recommend taking classes for this outside of just the discount offered.
Property Insurance
Restaurants have quite a bit of business property that would need to be insured. Equipment and furniture alone can add up to quite a lot. Some of this may be owned by you while others may be owned by the property owner you are leasing from.
Some common types of property in a restaurant include:
Building
Interior additions and alterations
Furniture
Computer equipment
Inventory
Kitchen equipment
Miscellaneous equipment
Signs
You should do a personal inventory of the items that would need to be replaced in the event of a loss, say a fire.
Even if you don’t own the building you operate out of, you still want to be covered for any interior permanently attached equipment. You may have sank quite a bit of money into what they call improvements that would need to be insured to put you back where you were before the loss.
Workers Compensation
Claims for workers compensation are not uncommon in this industry. Slips and falls are common, as are kitchen accidents. In NC, a business with 3 or more employees, including the owner, is required by law to carry workers compensation insurance. Workers compensation pays out not only for the medical bills of an injured employee, but it also covers any lost time at work. These expenses can get quite expensive and with the likelihood of a claim, workers compensation is essential.
Commercial Auto Liability
Many restaurants do outside catering and have a need for commercial auto insurance. This policy will cover any liability that results while a vehicle is being used for business use. Damage to the vehicle will also be covered if physical damage is chosen as well. In some cases, where an employee’s vehicle is being used instead of a restaurant owned vehicle, a non-owned auto endorsement would need to be added to the policy to cover that specific vehicle.
Business Income
Business income is insurance that covers you for lost income due to a covered peril. If you had a fire and had to close your doors for several weeks or months to complete the repairs, could you withstand the loss of income? Your expenses such as salaries, rent, and taxes will still need to be paid even if you lose all of your income. A business income policy will assist in keeping you afloat during this time.
Cyber Liability
Cyber liability if one of the fastest growing insurance types. You will be handling customers payment info and if that were to get into the wrong hands it can be very expensive if a claim were to arise. For a more detailed listing of what is covered in cyber liability please view my blog from a couple of months ago on the subject.
Commercial Umbrella
You can also purchase a blanket umbrella liability insurance policy that will kick in and pay up to the limit of your choosing once the underlying limits for policies listed above are exhausted. Your commercial umbrella carrier will want to be made aware of any policies under the umbrella that will be covered. You will also have to meet the minimum underlying limits on those policies to meet the umbrella policy requirements.
You can see that restaurant insurance can be quite complicated with various types available. It is important to discuss your specific needs with an insurance expert in this industry. Please feel free to call us at 704-494-9495 and discuss any questions you may have with an agent specialized in restaurant insurance.
One area of insurance that has grown significantly in our agency over the last decade is Charlotte food truck insurance. If you run a food truck in Charlotte, NC or are thinking about starting up a business in the industry, then you will have several insurance policy options to consider.
We have various carriers that specialize in these policy types and we can offer the most competitive rates in the market. We will discuss some of the most common policy types that you will want to protect you and allow you to complete contracts.
Auto Liability
Auto liability on a food truck is similar to a personal auto insurance policy and it will pay out in situations where you are involved in an incident while driving your food truck. If you hit a vehicle, person, or other object, your auto liability policy will pay for the bodily injury or property damage of the injured party. You can also include comprehensive and collision coverage, medical payments, etc along with your auto liability policy as you would your personal auto policy.
Auto liability limits chosen maybe be split limits like $100,000/300,000/50,000 or combined single limits of $1,000,000. The limits you choose will want to meet your minimum threshold to protect yourself and the limits being required by a contract.
General Liability
A general liability policy will pay out for losses outside of negligence while driving your vehicle. This could include claims of illness from the food that you serve or an individual being injured around your truck.
Typical limits for a general liability are $1,000,000 per occurrence. This is a common requirement if you plan to sell food in a public place.
Business Personal Property
Any business property that you use to serve, prepare, and deliver food should also be covered if you want protection for losses from fire, theft, or other losses. Your auto liability will likely have a cap on any of these items, even if they are permanently attached to the vehicle. Business personal property can included grills, coolers, products, and cash registers.
Workers Compensation
If you hire employees in your business, then you will also want to make sure that you have a workers compensation policy in effect. If your employees are injured in a workplace accident you can be sued not only for their injuries, but for their lost time at work.
There are laws in place that require workers comp coverage for your employees. In NC the minimum required limits for workers compensation is $100,000 each employee, $100,000 each accident, and $500,000 for the policy limit. You can increase these limits up to $1,000,000 for a nominal price increase.
Liquor Liability
If you serve alcohol, you will want to carry a liquor liability policy. These policies payout on claims that result from injuries caused by intoxicated patrons served by your establishment.
Aside from protecting yourself from catastrophic claims and being sued for losses, you will likely encounter a need for insurance due to contract requirements. NC counties, especially Mecklenburg County, have stringent insurance requirements for food trucks and vendors. In order to meet their requirements, you will need to prove that you have the minimum requirements by presenting an insurance certificate. It is not uncommon to see requests for insurance from other entities like building owners, landlords, restaurants, and festivals.
Some final thoughts on compiling food truck insurance quotes.
It is important to understand that you don’t need to combine all policy coverage types under one policy or carrier. In some cases, bundling these policies under one policy can be beneficial. In others, it can cost you more. You have to understand that sometimes insurance companies may offer you a lower rate on one coverage type, say auto liability, but make up for it by charging a higher premium on another policy type, say collision.
It is best to let an experienced insurance agent peruse all of the companies at hand and possibly piecemeal these policies together if it makes more financial sense for you.
Also, it is best to be prepared and present the needed information when getting quotes so you won’t have to go back and forth with the agent.
Below are some of the questions you may be asked when requesting quotes.
Vehicle info including VIN numbers
Driver info including date of births and license numbers
Total annual sales
Total annual payroll
Liability limits
Specific contract requirements
Mailing and garaging address
Please let us know if you have any other questions regarding insurance for food trucks and trailers. Our expert agents are here to help.
Contract bonds are a type of surety bond that help guarantee that the terms of a contract are met. If a contractor does not adhere to the terms of the contract than the injured party can collect any financial losses incurred from the bonding company. It is an additional safeguard to ensure the principal performs all items in a written contract.
Types of Contractor Surety Bonds
A contract bond is often times synonymous with the following terms:
Contractor Bond
Construction Bond
Bid Performance Bond
Bid Bond
Proposal Bond
Payment Bonds
The two common types of contract bonds are bid bonds and performance or payment bonds.
Bid Bonds specifically protect the obligee from the Principal either backing off of the stated bid that has been accepted or submitting a low-ball bid and then not honoring the agreed upon price. Bid bonds are typically issued between 5-10% of the overall bid.
Performance Bonds will protect the obligee in areas of the contract like completing a job when agreed upon and under the agreed upon items. It guarantees that the contractor will perform the contract and pay for the labor and materials needed to complete the project. Payment bonds are typically issued at 100% of the contract amount.
A surety bond is an agreement that involves three of the following parties:
The Principal– The party purchasing the bond that is being required to fulfill the terms of the agreement.
The Obligee– The party that is usually requiring the bond and is reimbursed for financial losses due to the principal’s failure to fulfill the duties of the contract.
The Surety– The party that is responsible for paying out the financial losses of the obligee due to the prinicipal’s failure to fulfill the duties of the contract.
Contract bonds are usually only required on larger projects by large builders or subcontractors. It is a way to easily recover from financial burdens without having to enter into costly lawsuits against the contractor. Typically any public project over $100,000 will require a a contract bond.
Business Types Needing Contract Bonds
A list of common business types that will be required to have these bonds include:
Concrete construction
Electricians
General contractors
HVAC contractors
Painters
Roofers
Plumbers
Common Underwriting Requests for Contract Bonds
Due to the nature of these bonds and high possible payouts, most companies will run a credit score on the principal before agreeing to issue a bond. In addition to this, some companies may require the following other items to consider a risk.
Financial statements for the business
Personal financial statement for the owner
Resume of owner
Certificates of insurance on other commercial policies the principal may have
Questionnaire
Bank letter of reference
Job reference letters
Schedule of current projects on hand
Our agency writes through various bonding companies, as we do insurance companies. Preferred risks will see the best pricing in the industry with a couple of our carriers, but we also have other markets that may not be considered by the preferred companies for one reason or another. Please call us at 704-494-9495 for any questions you may have on this surety bond type or to get a quote today.
Cyber liability insurance is one of the fastest growing business insurance policies that NC small businesses are looking to protect themselves with. Because it is such a new policy type, there are several questions on what it is and what it covers. We will discuss exactly those things in this article so that you can make an educated decision if this policy is right for your North Carolina small business.
Everyone knows how much cyber is a growing concern, but it might surprise some businesses just how common it is. It is far from being a concern for only large corporations too. In fact 60% of cyber crimes are against small businesses. 60% of those businesses that are victims of these attacks go out of business within 6 months of the attack. The costs are staggering when they do occur and those without cyber insurance are left with 100% of those costs.
Are you exposed to the possibility of this happening to your business?
If your company has/does have any of the following, then the answer is a resounding yes.
Company Website
Social Media Accounts (Facebook, Twitter, Instagram, Linked In)
Accept Credit Cards
Uses Online Banking
Store Customer Data (Name, Address, Date of Birth, License Numbers, Credit Card Info, Social Security Numbers)
If you realize that you could be at risk, but are still confused on what types of things could happen to you, then you are not alone. It can be very complicated. We will discuss and clear up some of those common claim types below and explain the ways that a cyber policy will help cover those things.
SOCIAL ENGINEERING
Social engineering is a predatory type of cyber crime where an employee is tricked into sending or uploading money to someone through false pretenses.
Cyber insurance will cover those lost funds from these types of schemes.
RANSOMWARE
This is a virus sent as a link in an e-mail. Once an employee clicks the link, the virus immediately begins to to encrypt computer files. The imposter will then demand funds in order to recover the company’s files. Typically bit coins will be demanded.
The cyber liability policy will cover the cost of the ransom in order to have your files recovered.
DATA BREACH
This type of attack gains the most media attention. Large organizations like Sony, Target, and Equifax have recently been in the news for being hacked. These losses occur when a cyber criminal breaches a company network and gains access to customer data.
Cyber policies will typically cover the following:
1. Fines by regulatory commissions and other penalties
2. Legal fees toward lawsuits from customers
3. Security expert assessments
4. Public relations firm services
5. Customer notification costs for those effected by the breach
MEDIA LIABILITY
Covers defamation or slander by an employee about a customer on social medial accounts causing a lawsuit.
Cyber insurance will cover defense in a lawsuit against your company.
FUNDS TRANSFER FRAUD
Hackers gain access to your system and transfer company funds to their account.
Your cyber policy will cover any losses incurred, not covered by your bank for fraudulent transfers.
NETWORK SECURITY
Your company site gets hacked making your system inoperable and not allowing customers access to their information.
Cyber insurance will cover lawsuits by customers for not being able to access their account.
One final myth we would like to dispel regarding cyber liability insurance, and that is that the premiums are too expensive for a small business. We write through some of the leading insurance companies in the industry, with the most competitive premiums. Premiums start as low as $800 per year depending on the business type, size, and exposure.
Please call us at 704-494-9495 with any questions, or if you would like a quote on this valuable insurance policy today.
A workers compensation audit is an inevitable part of all workers compensation policies. While many other commercial insurance policies may require them as well, it is not always done in every case. These policy types can include commercial general liability, commercial property, commercial auto, professional liability, etc. With a workers compensation policy, you can count on an audit being done for each policy term.
A lot of our clients may feel overwhelmed by these audits at first. However, after completing their first audit, they become less daunting in the future. The purpose of these audits is to accurately assess the correct premium based on the actual payroll versus the payroll that was estimated at the beginning of the policy term.
Quite simply, if you overestimate your payroll, then you will receive a refund. If you underestimate your payroll, then you will receive an additional premium bill. Coming up with an estimated payroll, in almost every industry, is really just a best guess. There are several factors that may cause your payroll to go up or down.
Some of the factors that may cause payroll to change are:
Terminating an employee
Hiring an employee
A rise or fall in business causing payroll to change
Hiring an uninsured subcontractor
Hiring an employee or sub outside of your normal class code
Work that changes depending on the season or the weather
In addition to assessing the correct payroll, the workers compensation company will want to confirm that the correct class code is chosen for that business. Class codes are the best description given to the actual work being done by that business. For some businesses, the actual class code is easy to determine. For others, it can be a little more tricky and the insurance company will have to accurately assess the risk based on the day to day work being done.
In some cases, one business may have several class codes. This is seen very often with construction companies where they may have painters, electricians, concrete construction, tiling, plumbing, HVAC, roofing,etc. Businesses with multiple class codes will want to separate their payroll based on these different classes or they will likely face their total payroll being lumped into the most expensive classification.
Class codes can range in scope from very expensive to extremely inexpensive. One of the lowest and most inexpensive class codes is clerical office employees. One of the most expensive classes is for roofers. The reason for this discrepancy is due to the risk level involved in each line of work. Not only will these rates be determined due to the chances of an accident, but also the severity of the accident. The more severe the accident, the more that worker will need more money to pay for medical bills and the longer he/she will be out of work.
Their are certain records will you need to produce to show the proper documentation in completing your audit.
Some of the items you will be asked to present to complete an audit may include the following:
Form 1040 Tax Return(this is for sole proprietorships)
Schedule C (this shows the profit or loss breakdown of expenses on your tax return)
Schedule SE (Self Employment Tax)
Schedule K1 (Shareholder’s Share of Income)
Form 1120 (US Corporate Income Tax Return)
941 Reports (Quarterly Federal Payroll Tax Reports)
You should know what payroll will be picked up on your premium audit.
Who will be included in my payroll?
1. Anyone that you paid as a W2 employee will be counted as payroll.
2. Any 1099 subcontractor that your business paid that you did not receive their workers comp certificate of insurance from.
3. Owners that have not rejected coverage as either owners, officers, members, etc where allowed by law.
Every state has different workers compensation laws and you will need to discuss with an insurance professional the laws within your state. You will also need to confirm if your workers compensation policy in the state where your business resides will cover you while doing work in another state. For instance, in NC, a policy purchased here will not cover even 1 employee that would be doing work in FL. Not even temporarily. It is very important that you discuss this with an agent before beginning work in another state. The penalty for not doing so can result in large fines from the state or you being responsible for paying out in the event of a claim if it is denied by your insurance company.
In closing, don’t let the workers comp audit scare you. As long as you maintain accurate records, you will be fine. We strongly urge our clients to not let any 1099 subcontractors do any work for you, without first getting a copy of their own workers compensation certificate. An audit can actually be a good thing. For a lot of our clients, they see a refund at the end of their audit term. This is a welcome surprise and it is a much better feeling then being hit with a large additional premium because you didn’t adequately plan or keep accurate and ongoing records.
If you have any further questions on this subject or on workers compensation policies in general, please feel free to give one of our friendly commercial agents a call at 704-494-9495.
We would like to discuss some important Charlotte motorcycle insurance topics to consider before you purchase the best motorcycle insurance policy available at the best possible rates.
When it comes to protecting yourself and your property, there are few policies more crucial to get right than motorcycle insurance. There are several similarities to auto insurance but a few crucial differences. You want to cover your bike, but more importantly, you need to consider your bodily injury if you are in an accident.
LIABILITY INSURANCE
We highly recommend choosing a higher bodily injury limit with matching un/uninsured motorist coverage. If you are in an accident in an auto, you certainly have a risk of sustaining serious injury or death. On a bike, your risk is significantly higher.
We recommend choosing at least a limit of $100,000 bodily injury each person and $300,000 each accident. If you hit another rider on a bike, you want to protect yourself with the highest limit possible to prevent yourself from being sued where your limits stop. The current state required limits in NC are $30,000 each person and $60,000 each accident. These limits can easily be exhausted very quickly if a rider is thrown from their bike and you are liable.
UNINSURED AND UNDERINSURED MOTORIST COVERAGE
Be sure to choose the highest limit you can here. I can think of a couple of incidents where we have had clients with this coverage, at our recommendation, and have been extremely happy these limits were chosen. There is a high number of drivers on the road that carry minimum limits of liability, or worse, are driving uninsured. If this happens, then you want to make sure your limits kick in and pay where the other driver’s limits leave off.
COMPREHENSIVE AND COLLISION COVERAGE
This coverage is very similar to auto insurance. One area worth mentioning is comprehensive coverage though. Especially with sport bikes, theft is a major cause of loss. Make sure that you are protected with the proper comprehensive coverage to protect you if your bike is stolen.
You may also have a concern that your bike is not being covered for the value you have in it. Most policies only cover the NADA value which includes depreciation. We have companies that offer the true replacement of your bike. This can include additional aftermarket alterations made to your bike at a limit you choose. This is especially important with custom motorcycles.
PERSONAL ITEMS
Some of our carriers offer coverage for your personal items from being damaged or stolen. This can include helmets, jackets, or other personal items.
MEDICAL PAYMENTS
A lot of companies may not offer coverage for your medical payments. It is important that you choose a company that will offer you this coverage if this is important to you. The medical payment limit covers both you and your passengers at the amount chosen.
DIMINISHING DEDUCTIBLES
This option is currently offered through Progressive Insurance, one of our more popular and competitive carriers. They offer a 25% annual decrease in your initial chosen deductible. This can be a nice surprise if you have an unexpected claim after a few claim free years.
DISCOUNTS
There are quite a few options for discounts on motorcycle policies. We have a list of several examples below. Make sure you are getting credit for all that apply.
-Motorcycle endorsement on your license
-Rider associations
-Multi-policy discounts
-Prior cycle or auto insurance
-Homeowner discount
-Experienced rider
-Claim free discount
-Safe driver discount
-Married discount
Riding on the open road is an exhilarating feeling. It is important that you can rest easy that you are adequately insured in the event of an accident or claim. Please don’t wait until it is too late to consider these important cycle insurance coverage options. Contact us at 704-494-9495 with any questions you may have regarding Charlotte motorcycle insurance.
