NC Home Insurance Rate Increase

NC Home Insurance Rate Increase

The NC Insurance Commissioner, Mike Causey, announced on November 10, 2020 that the NC Rate Bureau (NCRB) has requested an increase on NC home insurance rates.  The requested increase is 24.5% statewide.  The proposed rate hike would go into effect on August 2021.  If accepted by the NC Department of Insurance (NCDOI) all NC home insurance writers would be obligated to comply and increase their rates.

Before you get too concerned, it is worth noting that the actual rate increase will probably be settled much lower.  The final rate increase cannot be implemented without the approval of the NC DOI.  Typically in these rate hike requests the NCDOI will negotiate the rates lower than suggested.  The last time this has taken place was in 2018 when the NCRB requested a rate increase of 17.4% and it was negotiated down to 4%.  

It is tough to say how much lower the 24.5% will be whittled down to.  I personally don’t see it going any lower than a 6% hike and it will likely be higher than that.  The primary factor in the need for a larger rate increase is due to the increased wind and hail claims in North Carolina.  Most notably the number of roof replacements stemming from such losses.  Some of these claims are from legitimate storms but most, I fear, are not.

I have been saying for a decade that there are entirely too many roofs being replaced on older roofs that are attributed to wind and hail losses.  The true cause of the damage to these roofs though is often just normal wear and tear.  In most cases, the claims come from roofs 15-20 years of age or older.  I often joke that wind and hail somehow never seems to find its way to newer neighborhoods with roofs less than 10 years old.  I suspect that we will only trend with higher rates until a decision is made on rectifying this problem.

Insurance companies and the NC DOI really need to determine their stance on this.  A distinction should really be made on the causation of the damage to a roof.  Is it wind and hail? (a covered peril) or is it normal wear and tear? (not a covered peril).  If we are using our home insurance policies as a form of warranty than we have to expect higher insurance rates.  

To put some perspective on this, you can compare it to needing to replace your hardwood floors.  If you have not updated them in 25 years, you can expect some wear and tear and when it comes time to replace them you wouldn’t expect to be able to file a claim for that loss.  

With continued rate increases on home insurance, there has never been a more important time to have an independent insurance agent working for you.  Aside from state mandated regulations raising home rates, you can expect carriers to have fluctuations in their rates over a several year span as well.  You need an agent that will keep a watchful eye on your policies and be there to step in and move it to another carrier if your current company gets out of line on their home insurance premiums.

Over the years last 15 or so years I have seen the best rates shift from Farmers to Hartford to Bankers to Heritage and now to Homeowners of America.  That is a generalization of course.  These are the companies that have been the most competitive across the board during this timeframe.  We also see companies like Travelers, State Auto, Kemper, and Universal Property and Casualty win a good bit on premium too.  

It is so important to have an independent insurance agent as your advocate not only on rates, but also on making sure you are adequately covered.  You just can’t trust one individual insurance company to have your back year after year.  Let us know how we can help by reaching out to us at 704-494-9495 or by emailing us at contact@pegramonline.com.  You can always reach me directly at coreyi@pegramonline.com as well.  I would be happy to discuss this topic further with you or answer any other questions you may have.

Dump Truck Insurance in Charlotte, NC

Dump Truck Insurance in Charlotte, NC

Dump truck insurance is a common request here in Charlotte, NC.  Charlotte is one of the fastest growing cities in the nation and with that comes construction.  A lot of construction.  We know a lot about insuring dump trucks.  You will need to not only focus on NC state limits but Federal requirements as well.  Aside from those requirements, you will also see contract requirements for the company you are hired to drive for.  Finally, you should be concerned with not only requirements, but having proper coverage to protect yourself.

It is important to make sure that the registered owner of the vehicle is also the policyholder. Just as in personal auto insurance policies, the correct owner should be listed as the named insured. If your vehicle is registered in your business name, then you should also insure it in the business name instead of your personal name.

Next, you should determine what coverage you need. We will discuss the most important types here.

Physical Damage

Physical damage (comprehensive and collision) is required if you are making payments on the dump truck through a bank. Even if you own the vehicle free and clear and there is no bank, you should still strongly consider insuring the vehicle for comprehensive and collision losses. Most commercial companies will ask you for a stated amount for each vehicle requesting this coverage type. Stated amount is simply the value of the vehicle today. In the event of a loss, the insurance company will pay the value of the vehicle minus the deductible you choose on the policy.

Business Auto Liability

Liability coverage is the part of your insurance policy that is required by the state or the Federal Motor Carrier Safety Administration FMCSA before you can even get your tag. Most common limits of liability chosen on a dump truck policy would be either $750,000 or $1,000,000. The North Carolina Department of Motor Vehicles (NC DMV) will determine what limit of liability is required. To determine the required limit of liability you will need to provide them the following:

  • Gross vehicle weight(GVW) of the vehicle. This is the total weight of the vehicle when fully loaded to manufacturer’s recommendations.
  • Radius that the vehicle will be driven. This is the typical one-way mileage driven to each destination.
  • The items you will be hauling. For example dirt, sand, and gravel.
  • Whether or not you will be crossing state lines.

The minimum limits for most dump trucks not crossing NC state lines is $100,000/300,000/50,000.

Dump trucks crossing NC state lines will usually require limits of $750,000 combined single limit.

Here in NC there are many state and city projects that are calling heavily on dump truck operators. Here in Charlotte alone there is the light rail project, Interstate 485 expansion, Charlotte Douglas International Airport and the Independence Blvd expansion just to name a few.

To be on any of these projects will require a minimum auto liability of at least $1,000,000. This is higher than NC DMV and FMCSA requirements.  In addition to this, you will also likely be required to have many other additional policy types.

Medical Payments

Medical payments covers drivers or passengers.  Choose a limit here that will cover at the very least, a deductible of a health insurance claim made for an accident that causes bodily injury.  

Un/underinsured Motorist Coverage

Un/underinsured motorist coverage covers your bodily injury and property damage to your truck caused by an uninsured driver or under-insured driver.  You should consider the likelihood of your dump truck being hit by uninsured drivers or those who may only have state minimum liability.  The coverage you choose here should be enough to cover bodily injury to yourself or driver as well as your vehicle.

Workers Compensation

Any employee working for you should have workers compensation coverage.  This will not only cover the doctors bills in the event of an accident but also any loss of time at work.  

If you don’t have any employees but still have a contract requirement to have a workers compensation policy click here for some more information on that.  

Truckers General Liability

Certain contracts will require general liability.  This would cover claims outside of you or a driver being involved in an accident.  Negligence from a loss can cover both bodily injury and property damage losses.

Commercial Umbrella

A commercial umbrella policy is a form of a blanket limit that picks up and pays where your other underlying policies leave off.  To have an umbrella policy, you will be required by the insurance company to meet certain limits on those underlying policies.  It is very important to know what the umbrella policy is over.  If you have commercial auto, general liability, and workers compensation policies for your business, you should make sure the umbrella is over all of these policies for you to be adequately covered.

Dump Truck Liability

You don’t run your business like this so don’t let just anyone handle your insurance.

Rates for dump trucks are very affordable considering how often they are on the roads and how many miles are being driven each year.  A clean driving record will also help lower those rates even further. If we can help with any of your dump truck insurance questions please don’t hesitate to give us a call at 704-494-9495.

 

Charlotte Car Insurance

Charlotte Car Insurance

Comparing Car Insurance Rates in Charlotte, NC? 

I am going to tell you the best way to do it and how to get the best rates on your Charlotte car insurance.

Since we represent most of the insurance companies available in Charlotte, we know a thing or two about car insurance here.  Who has the best rates in Charlotte?  We will tell you. There are several factors that are considered when rating auto insurance.  We will discuss those and some ways you can save the most money on your car insurance rates.

comparing car insurance

Shopping Charlotte Auto Insurance Companies

You would need a crystal ball to know which insurance company is going to offer you the best rates.  The only way to truly know is to quote every single company that sells car insurance in NC.  We know you don’t have time for that.  So what is the next best option?  Your best bet is to find an independent insurance agency that represents the most companies.  We shop to find our clients the best rates.  In order to win more than 70% of the time, we have to represent the majority of insurance companies in Charlotte.  It is just the law of numbers.  

Don’t focus on bundling with one company.  In most cases you can fall into a trap on that.  The reason is, it is unlikely that one company will offer you the best rate on your auto insurance, home insurance, business insurance and motorcycle insurance.  If a company is low on car insurance, they will likely be higher on one of those other lines.  They typically have to make up for low rates on one policy with higher rates on another.  

An independent insurance agency can spread your policies around to the best company on each line of business.  They can also offer bundle discounts, in many cases, just for having your other policies with the agency.  The end result is you save the most money on each policy.  That is what we do with our own policies and that is what we do with our clients as well.

Even if you could find one place online that you could quote all companies yourself (you can’t), you don’t always know everything you need to know regarding the insurance coverage.  That is why it is imperative to find an agent you can trust to do it for you.  One that has your best interests at heart and can provide all of the insurance discounts needed to offer you the best rate.

So you found an agent that can help you shop multiple companies.  What is next?  We will discuss what factors play a role in getting you the best rate in Charlotte, NC.

Charlotte Insurance Rates by Zip Code

In the past in NC, zip codes played a much smaller role in car insurance rates.  Today the rates can be vastly different.  There is a lot of data that is looked at to determine what zip codes should have higher rates and which should be lower.  They look at the chances of accidents and theft when making these determinations.  

I can’t say I agree with the actuaries completely on this.  I agree they should play small role, but we have seen rates go up as much as 30% when a client moves from a preferable zip code to one that is higher rated.  First of all, the zip codes in Charlotte are pretty large.  In many cases there are pockets where the accidents and thefts are occurring much more than other areas within the same zip code.  In addition, very few people work in the same zip code that they live in.  This work address isn’t picked up on the risk and we all spend a significant time at work which leads to our vehicles spending time there too.  It isn’t just the commute either.  If you go out for lunch or to run errands during a break, you may be more likely to have a loss around work than home.

For those that live outside of Charlotte, your rates are cheaper.  If you live in Concord, Harrisburg, Waxhaw, Matthews, etc then you will see a significant rate reduction then those living in Charlotte.  This is true even if you work in Charlotte.  Below is a breakdown of some of the higher and lower zip codes.

Cheapest Charlotte Zip Codes:  27277, 28227, 28226, 28210
Highest Charlotte Zip Codes:  28216, 28262, 28269, 28213

Charlotte Population

Charlotte, NC is the 16th largest city in the nation.  We are just above Indianapolis and just under San Francisco.  The estimated population as of 2019 is 872,500.  This is a 19% increase in just 9 years.  To say that Charlotte is growing is an understatement.  In fact, Charlotte, NC is the 5th fastest growing city in the US behind Phoenix, AZ; San Antonio, TX; Fort Worth, TX; and Seattle, WA.

With population increases like these, along come increases in crime and accidents as well.  These things will dramatically effect car insurance rates.  Each time companies take large losses, they will raise rates to incorporate their profit margins in what is called loss ratio.  Insurance companies are in the business of making money after all.  If they incur more losses, the only other option is to raise rates to lower their loss ratio and increase their profitability.

Charlotte Insurance Driving Experience Years

The number of years you have had your license has the largest impact on your rates.  The reason for this is statistics overwhelmingly show a correlation for new drivers and accidents.  Currently the inexperience rating factor is incremental starting with 0 years experience and phasing out at 3 years.  This means that you pay the highest when you have under 1 year of experience and your rates go down for each year you have been licensed.  

A lot of people believe car insurance is rated based on your age.  This isn’t true.  It is solely based on when you first obtained your license.  This means if you first got your license at the age of 40, you will still pay higher rates as if you were 16 years old.  

Keep a watchful eye on the House Bill HB 221 that is in the NC General Assembly currently.  If approved, this will increase the number of years that you can face higher inexperienced rates in addition to charging any violations of 4+ points for a longer number of years.

Charlotte Insurance with Tickets and Claims 

accidents and insurance

The quickest way to raise your insurance rates is to cause an accident or to get a speeding ticket.  Your car insurance rates can go up 30-40% just for one of those unfortunate events.  The more you get, the more your rate goes up.

Accidents are settled as either not-at-fault, 1 point, 2 points, or 3 points.  The more points an accident is, the higher surcharge on your auto insurance policy.  You need to weigh this when you decide whether to file a small claim or not.  Depending on the company’s underwriting guidelines, this can effect you for 3 years or as much 5 years.  

Other Discounts on your Charlotte Car Insurance

There are many factors that effect your rate on Charlotte car insurance other than your driving experience, zip code, vehicle and driving record.  Some may surprise you.  I will mention several with explanations

Credit Rating

Most companies will adjust rates depending on your credit rating.  If you have worked hard to maintain excellent credit, then this will be very pleasing to you.  If you haven’t, then not so much.  Either way most companies will rate based on this factor.  Favorable credit can save you hundreds of dollars per year so it pays to clean it up if your credit rating is less than stellar.

Marital Status

That’s right.  Your marital status can effect your rate as well.  Marriage is more than just blissful love and tax benefits.  It will also save you on your auto insurance as well.

Incident Free Discount

This one is relatively new.  It used to be that if you were involved in an accident that was not your fault, it would not impact your rate in any way.  Not so anymore.  A lot of companies will give you an additional discount if you have had no driving incidents.  This includes being free of not-at-fault accidents, waived speeding tickets and accidents, and even those improper equipment rulings you paid your attorney to get you out of that speeding ticket.  These items don’t vastly increase your rates but it will make a difference with many companies.  It is always helpful if your driving history is blemish free.

Gender

This one is new in NC as well.  Other states have rated males higher for quite some time now.  Yes even way back when I got my license this was the case.  NC did not base rates on gender at all for a long time.  They do now.  It isn’t excessive, but you pay a little more.  Females do typically mature faster than males and statistics don’t lie.

Length of Prior Insurance

Having prior insurance will impact your rates.  Some companies won’t write your policy at all without prior insurance.  Others give larger discounts if you have had it.  Still others look at the length of prior insurance with your previous insurance company.  Call it a loyalty credit for how long you were with your prior company.  The new company hopes you will do the same with them.  Most insurance companies don’t make any money until you renew your policy after all.  This is due to the increasingly higher costs of doing business and the expenses of running motor vehicle reports.

 

10 Largest Auto Insurance Companies in NC

Top Charlotte Insurance Companies

Below is the list of the largest companies in NC by market share on written premium. Combined they make up over 86% of the market share in NC.  After these top 10, it is very much spread out from there.  

  1. State Farm
  2. Geico
  3. Nationwide
  4. National General
  5. NC Farm Bureau
  6. Allstate
  7. USAA
  8. Progressive
  9. Erie Insurance
  10. Liberty Mutual

Top Charlotte Insurance Companies by Risk Type

Charlotte car insurance has become more complicated to rate than ever before.  When shopping our clients in the past, we could very intuitively choose which company will win on a certain risk type.  Due to an increased number of rating factors, it is much harder to guess which companies will be the best with each risk type.  With that said we will give several scenarios along with the insurance company that would likely offer the best rates in Charlotte.  

Experienced drivers with excellent credit, prior insurance, and no prior driving incidents:

  • National General
  • Progressive
  • Geico

Driver with a DWI conviction:

  • National General
  • Dairyland
  • Progressive

Mom and Dad with a child in the household that is a new driver:

  • Travelers
  • National General

Driver with 3 or more accidents in the last 3 years:

  • Dairyland

Clean driver with previous military service:

  • USAA

NC Minimum Liability Requirements

North Carolina has minimum liability requirements of $30,000 bodily injury each person, $60,000 bodily injury each accident, and $25,000 property damage each accident.  These split limits are commonly referred to as 30/60/25 in shorthand. 

These limits have been the same for way too long.  In today’s dollars, these amounts don’t go too far.  We recommend having at least 100/300/100 on your policy.  A large percentage of vehicles purchased new are well over the $25,000 minimum property damage required.  That that means is if you hit a car over $25,000, you are responsible for the rest.  

At the very least you should purchase one step up from the minimum 30/60/25 limits and choose 50/100/50.  Some people will try to protect themselves with limits 250/500/100 and further protect themselves with an umbrella policy over top of that.  I believe the small change in premium is worth the peace of mind that you are covered if an accident occurs.  Also, companies increase your discount for having prior insurance if your limits were higher with your previous insurance company.

Charlotte Car Insurance Rate Compared to NC and the US

NC has some of the cheapest auto insurance rates in the nation.  In fact compared to the rest of the United States, we are the 5th lowest in the nation.  Charlotte just happens to have some of the highest rates in NC though.  As stated earlier, this becomes much more complicated when zip codes are taken into consideration.  Some of the lower zip codes in Charlotte may see lower rates than higher zip codes in other towns, even though that town itself offers lower overall rates than Charlotte does.  

To conclude, there are more factors used to rate an auto insurance policy today then ever before.  Insurance actuaries are always trying to find new ways at assessing risk.  This means that shopping for car insurance rates are harder now as well.  It is probably more important now than ever to have a knowledgeable agent as your advocate to ensure you are getting the best rates.  We have saved our customers hundreds and even thousands of dollars by using our vast knowledge and number of insurance companies to their advantage.  

If we can help you with your car insurance or answer any further questions, please don’t hesitate to reach out to us at 704-494-9495.

Does Your Business Need Cyber Insurance?

Does Your Business Need Cyber Insurance?

8 Questions Regarding Cyber Insurance and Your Business.

Cyber insurance is relatively new in comparison to other business insurance types.  It is increasingly being a necessity for many businesses today though.  Some industries require it while others simply want it to protect themselves.   

You have worked hard to build your business and maintain it.  It can only take one unfortunate situation to cost you a significant amount of money or even put you out of business. 

With cyber insurance being so new, many companies don’t fully know exactly what it is and if they have a need for it.  We have put together a handy questionnaire to help you assess your need for this valuable product.

Ask yourself these 8 questions when determining if cyber insurance is right for you.

      1.  Do you have employees? 

Most breaches come from mistakes made by your employees.  You may tell yourself that you wouldn’t make any mistakes that would cause a data breach.  The same may not be said for those who work for you. 

Even when an employee has the best of intentions, mistakes can be made.  Simply opening an email that is suspect could lead to someone accessing your customer’s or vendors information wreaking havoc on maintaining the success of your business. 

Also, keep in mind that we are all humans and even us as business owners can make a simple mistake.  Oftentimes you don’t even need to make a mistake.  You have just experienced bad luck in becoming the target.   

     2.  Does your business have a website? 

Your website could be hacked which could cause valuable information getting stolen.  You could also face business disruption due to your website being down.  Further, you could be at risk of defamation in printed word and copyright and trademark infringements. 

You should also make proper considerations to ensure your business website is ADA compliant.  Your cyber insurance policy may protect against some of that backlash.

     3.  Does your business accept credit or debit cards or other mobile friendly payments? 

Cyber criminals are most often trying to obtain customer credit card numbers in these data breach situations.  This can be especially detrimental if you store any payment information. 

In fact, 40% of all cyber crimes come from an attempt to steal client credit card information 

     4.  Does your business use email? 

A lot of information is delivered by email and could get into the wrong hands which can come back as a claim against your business. 

You could also have someone hack your email and send out phishing emails that could come back on your business. 

     5.  Does your business keep records of customer information? 

If you keep records of customer data than you could be at risk of this data being stolen. 

That includes but is not limited to the following: 

  • Social Security Numbers 
  • Date of Birth 
  • Drivers License Numbers 
  • Credit Card Info 
  • Bank Account Info 
  • Addresses 
  • Email Addresses 
  • Medical Records 
  • Company Tax ID Numbers 

     6.  Do your employees use personal devices? 

Stolen phones, laptops, and tablets could contain valuable customer data that could be detrimental if it got into the wrong hands. 

Even if a hacker can’t get into your network, they may have a much easier time getting into your employee’s devices. 

     7.  Does your business have a social media presence? 

I don’t have to tell you that we live in very sensitive times.  If you or an employee posts a comment on Facebook, Instagram, Next Door, etc, and it is seen as discriminatory or harmful to another person it can be very damaging to your business.   

Remember, the intentions of your comments don’t even matter these days.  Only how someone received your comments. 

    8.  Do you know exactly how to react if you had a cyber breach? 

Let’s say the worst thing happens, and you are a victim of a data breach.  There are certain things that need to happen immediately.  If you have cyber insurance, the company will immediately go to work to rectify the situation and acting quickly can be the difference between an unfortunate situation and something that may put you out of business. 

Let’s discuss some of those common claims paid by cyber insurance companies. 

Common Claims Paid by Cyber Insurance 

  1. Paying ransomware. 
  2. Covering fraudulent funds transfer from your bank. 
  3. Reimburse you for lost income from a network or website interruption. 
  4. Cover legal fees in suits made against your company from a data breach. 
  5. Pays legal fees for slanderous comments made by your company on social media. 

I hope this has helped shed some light on the world of cyber insurance and how it can be useful to your business. 

If you have any questions or would like a quote on this valuable coverage, please don’t hesitate to reach out to us at 704-494-9495.  We directly represent the best companies and the most competitive premiums in the industry.   You can also click here for my previous article on this topic.

Special Event Insurance

Special Event Insurance

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If you are hosting a special event, you will likely be considering a general liability policy. This is a policy put in place to protect yourself and any liability against yourself or your organization if you are sued during the event.

Even if you don’t desire the insurance to protect yourself, you are likely going to be obligated to have it if you are holding your event on city, county, or even privately owned property. Many entities require you to have special event insurance policies to protect them from any lawsuits that may arise.

The most common limits that are required are $1,000,000 per occurrence and $2,000,000 aggregate. Aggregate means the maximum limit the policy will pay out for that term. Lesser limits are available if that is all that is required.

These policies generally have shorter terms which would cover only that event for it’s duration. There are longer terms available, up to 1 full year, if you plan on having multiple events throughout the year. In many cases each event does not need to be specifically scheduled. You should definitely check with your agent to ensure that you will be covered though.

Additional Insureds

You will likely be required to list the city, county, or individual company that owns the venue or property where the event is being held as additional insured. By listing these entities as additional insureds, they receive additional rights on the policy and they are typically notified in writing if your policy is ever to cancel.

Common Additional Insured Types

Below is a list of common entities that may require you to have general liability insurance for your hosted event.

  • Venue owners (convention centers, concert halls, playhouses,etc.)
  • City of Charlotte (or other city, county, state)
  • Charlotte Mecklenburg Police Department or other county police force
  • Neighborhood condo or home association
  • Apartment complex owner
  • Church
  • School district

What exactly are we talking about when we discuss special event liability insurance? Below is a list of some common events that may require liability insurance.

Common Types of Events Requiring Insurance

  1. Concerts
  2. Sports tournaments
  3. Beauty shows
  4. Auto shows
  5. Conventions
  6. Dog shows
  7. Fairs
  8. Flea markets
  9. Food tastings
  10. Hay rides
  11. Parades
  12. Poker runs
  13. Walkathons
  14. Races
  15. Music festivals
  16. Wedding receptions
  17. Religious meetings
  18. Craft fairs
  19. Festivals
  20. Dances
  21. Sports camps or clinics
  22. Christmas tree farms

When you call to request a quote for insurance on your event you will need to have certain information available. This type of policy can be quoted and issued very easy. In fact, it is much easier than most commercial general liability policies. You will need to provide some basic information though. In order to quote and issue your event insurance policy the company would need to know the following:

Items needed for quoting

  • The event type
  • Date and times of event
  • Location of event
  • Number of attendees
  • How long the event will last
  • Number of set-up and take-down days
  • If there will be any beer, wine, or liquor served
  • If there is private security at the event
  • If there are amusement rides
  • If there will be fireworks
  • If there have been any prior losses or claims

Two common occurrences that are not covered under your special event liability insurance policy are liquor liability and workers compensation. We will discuss both briefly below. If you have a need for either you should discuss this with your insurance agent.

Liquor Liability

Liquor liability coverage is required when you sell, serve, or furnish alcoholic beverages to customers. Any liability that arises from over-serving patrons or selling to minors would be covered under a liquor liability policy. Your special event liability policy would limit or exclude such losses so make sure you have a liquor liability policy in place if you plan to sell alcohol at your event.

Workers Compensation

Workers compensation, also referred to as employers liability insurance, is an insurance policy that will cover your employees or subcontractors for any lost wages or medical payments from losses while they are hurt on the job. NC law requires that any business with 3 or more employees have a workers compensation policy in force. This includes independent contractors if they don’t have current coverage themselves. If you want to protect yourself for any employees injured while working at your event, you should purchase a workers comp policy to protect yourself since these losses will also be excluded from your special event liability policy.

I hope that this article has answered many of your questions regarding special event insurance.  Please call us at 704-494-9495 to discuss any other questions you may have or to clarify anything that we have not discussed. We specialize in special event policies of all kinds throughout Charlotte and all areas of North Carolina.

We also have a limited market offering online quotes.  If it doesn’t fit the target market of the companies on this rater, feel free to give us a call so we can shop our other markets. 

Instant Online Quotes

 

 

 

Professional Liability Insurance

Professional Liability Insurance

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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?

Professional Liability in NC

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.

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Truck Insurance Near Me

Truck Insurance Near Me

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:

Truck insurance companies

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.
White Dump Truck
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 704-494-9495We are here if you have any questions or would like a shopped quote from the top insurance companies in your industry.
Garage Insurance

Garage Insurance

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 

Repair Garage Insurance

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. 

Some common BOP coverage types include: 

  • General Liability 
  • Signage 
  • Business Interruption Insurance 
  • Property Coverage 
  • Crime Insurance 
  • Cyber Liability 
  • Personal Advertising Injury 
  • Equipment Breakdown 
  • Employment Practices Liability (EPLI) 

Garage Liability 

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.

Garage Liability

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.

 

Umbrella Insurance

Umbrella Insurance

What is Umbrella Insurance?

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.

  1. Number household of drivers
  2. Number of household vehicles
  3. Age of household drivers
  4. Driving record of household drivers
  5. Number of residences owned by insured
  6. 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.

  1. Auto Insurance- $250,000 Bodily Injury Per Person, $500,000 Bodily Injury Each Accident
  2. Home Insurance- $300,000
  3. 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.

  1. 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.
  2. 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.
  3. Be prepared for higher rates when household drivers are inexperienced or if you have a driver with a DWI or other major violation.
  4. 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.
  5. 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

Restaurant Insurance

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

  1. Fast Food
  2. Fine Dining
  3. Food Truck (check out our blog on food truck insurance)
  4. Bar
  5. Night Club
  6. Deli
  7. Brewery
  8. Lunch Counter
  9. Cafe
  10. Bistro
  11. Buffet
  12. 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.