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Food Truck Insurance

Food Truck Insurance

One type of insurance that has grown significantly over the last decade is for food truck businesses.  If you run a food truck in NC or are thinking about starting up a business in the industry, then you will have several insurance policy coverages 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 worker 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 coverages 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 coverages 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 SURETY BONDS

CONTRACT SURETY BONDS

A contract bond is a type of surety bond that helps 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.
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:
  1. The Principal– The party purchasing the bond that is being required to fulfill the terms of the agreement.
  2. 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.
  3. 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.
A list of common business types that will be required to have these bonds are:
  • Concrete construction
  • Electricians
  • General contractors
  • HVAC contractors
  • Painters
  • Roofers
  • Plumbers
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.
NC CYBER INSURANCE

NC CYBER INSURANCE

Cyber liability insurance is one of the fastest growing 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.
WORKERS COMPENSATION AUDITS

WORKERS COMPENSATION AUDITS

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:
 
  1. Terminating an employee
  2. Hiring an employee
  3. A rise or fall in business causing payroll to change
  4. Hiring an uninsured subcontractor
  5. Hiring an employee or sub outside of your normal class code
  6. 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)
  • 940 Reports (Employer’s Annual Unemployment Return)
  • 1099 Forms (Subcontractor Pay)
  • Checkbooks
  • Ledgers
  • Receipt Books
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.
Truck Insurance Near Me

Truck Insurance Near Me

If you are looking for truck insurance for your business vehicle from a local insurance agency near you that can help you find the best rates and coverage, than read on to see if we can help.  Dealing with a local agency that you can sit face to face, if you so choose, can be very helpful when you are dealing the complications of commercial auto insurance.  Commercial trucks can include any of the following types of businesses:

  • 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.

  • 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 Liabilty: 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..
  • 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.
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.  Please contact us at 704-494-9495 if you have any questions or would like a shopped quote from the top insurance companies in your industry.
BEST MOTORCYCLE INSURANCE

BEST MOTORCYCLE INSURANCE

As we gear up for the upcoming motorcycle season, we would like to discuss some important insurance topics to consider before you purchase the best motorcycle insurance you can in NC.
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 coverage options.  
ELD Mandate for NC Commercial Auto Drivers

ELD Mandate for NC Commercial Auto Drivers

We have had a lot of questions from our NC commercial auto drivers regarding the recent ELD mandate so we figured we would do a short article offering an explanation as to what that is and how it may effect you.

A new mandate has been put in place by the US Department of Transportation (DOT) that requires an electronic logging device (ELD) for most motor carriers and drivers that are required to maintain records of duty status (RODS). The deadline for this mandate is December 18, 2017. If you have a grandfathered automatic on board recording devices (AOBRD), then the deadline will extend to 12/16/2019 for these drivers. After this deadline, then all motor carriers and drivers will need to adhere to the ELD rule if they are registered with the Federal Motor Carrier Safety Administration (FMCSA).

A link to the ELD rule is shown here:

https://www.gpo.gov/fdsys/pkg/FR-2015-12-16/pdf/2015-31336.pdf

This link from the FMCSA website will help you in choosing the correct ELD:

https://www.fmcsa.dot.gov/hours-service/elds/choosing-electronic-logging-device-checklist

Who is not required to have an ELD?

  1. Drivers who don’t use paper logs more than 8 times during a 30 day period
  2. Driveaway or towaway drivers
  3. Drivers who drive vehicles manufactured before 2000

Aside for the requirement, there are many reasons that an ELD will be beneficial to you.

Some of the benefits of having an ELD are shown below.

      1. They make logging easier and quicker.
      2. You can qualify for a discount from your insurance company.
      3. They lower the likelihood of driver mistakes.
      4. Helps losses due to employee fatigue.
      5. Lets you better track driver location.

If you have any questions on this new mandate or where to get one. Please reach out to us at 704-494-9495 and we will be happy to go into more detail with you. Please remember to let us know if you have an ELD that you are currently using, because the discount on your insurance can be significant and we want to make sure you are receiving the proper premium credits on your insurance policy.

 

CARGO INSURANCE

Cargo insurance is a rapidly growing industry in NC. Due to the increased popularity of Amazon delivery, package delivery has increased by quite a bit in the last couple of years. This coupled with freight delivery of all kinds, has increased a need for more cargo insurance companies.

We have an expertise on trucking insurance of all kinds. There are several factors that you should focus on when choosing the correct insurance coverage and commercial trucking insurance company.

You will want to make sure the insurance company that you go with can offer you your required limits at competitive premiums.

The limits you choose for each commercial auto liability coverage should be sufficient to the following parties:

  1. Yourself
  2. DOT regulations
  3. The companies you are contracting with

 

AUTO LIABILITY INSURANCE

Auto liability will cover anyone that you hit while driving your commercial truck.

The weight of your truck, the radius that you are traveling, and the type of goods you are hauling will all impact the minimum insurance requirement for auto liability. The most common limit though when crossing state lines, is $750,000 per the Federal Motor Carrier Safety Administration (FMCSA).

Keep in mind that your contract may require higher limits than the minimum FMCSA limits. Even if your contract doesn’t require it, you may want to consider higher limits to protect yourself further.

 

CARGO LIABILITY INSURANCE

Cargo liability will cover damages to the goods you are hauling due to your negligence.

The FMCSA also has cargo liability requirements for certain trucking risks. If you aren’t required to have this per the FMCSA, you likely will with any contract you enter into. We typically see a minimum cargo liability requirement of $100,000.

A similar coverage type is On Hook Liability which is more common on towing and auto hauler risks. If requesting On Hook Liability coverage on auto haulers, be careful, as there are certain coverage gaps when choosing this policy type. The premiums are usually less expensive, but you don’t want to be caught without the correct coverage.

 

MOTOR TRUCK GENERAL LIABILITY INSURANCE

A lot of contracts will require you to have a General Liability policy in force. This will cover claims outside of anyone you hit or damages to the freight you are hauling. Claims on these policy types are less common but they still can occur.

Losses for general liability can occur for delivery errors, driver negligence while loading or unloading, libel, and slander. A typical required limit of liability on this coverage is $1,000,000. Premiums for this coverage type are generally the lowest of the commercial cargo trucking polices.

For questions of any kind on commercial cargo insurance, please feel free to give us a call at 704-494-9495. We can also offer free quotes with all of our various commercial trucking insurance carriers.

SHORT TERM RENTAL INSURANCE

We will discuss insurance policies for short term rentals or seasonal homes.  This can commonly be referred to as Airbnb insurance, VRBO insurance, or vacation rental insurance.

Short term rental homes are not a new phenomenon, but there has been a large increase in these as of late. This is due largely to the advent of companies like Airbnb, (Airbnb.com) and VRBO (vrbo.com). These companies make the job of leasing your home out a breeze. A lot of people don’t want to turn down the opportunity to make the extra income on their seasonal or secondary homes. If you own a home that you use as a seasonal or vacation home and also rent out, then you should make sure that your insurance policy covers you accordingly.

A lot of people don’t understand that you need to have a specific policy in place to make sure short term rental properties are covered. You need to notify your home insurance company if you move out of your home and lease it to a tenant or have it unoccupied or coverage can be denied. You also need to notify your insurance company of any changes in usage of your secondary home as well.

Most home insurance policies will exclude coverage for business pursuits on your home. This makes your standard home insurance policy inadequate for covering such losses on short term rental properties. Further, if you have a commercial policy in force, but you also use your home as secondary residence for yourself, a commercial policy won’t be sufficient coverage either. This is why you need a specialized policy that acts as sort of a personal and commercial policy hybrid.

Quite frankly, most insurance companies have yet to offer coverage for such a risk. That is just one of the reasons that a large percentage of people do not have proper insurance on their short term rental properties. Another reason is consumer education. Don’t fret though. We have multiple markets that will take on this risk and we are able to close the knowledge gap on this topic.

There are many properties that can constitute a short-term rental policy. Some of the more common types are listed below.

Common Seasonal Homes and Short Term Rental Types

  1. Beach house or condo
  2. Lake house
  3. Mountain house or cabin
  4. City condo
  5. Golf course house or condo

What coverage types should you focus on when getting a policy? There are several endorsements that should be considered. The 4 most important types coverages for short term rentals are the following:

  1. Dwelling
  2. Contents
  3. Liability
  4. Business Income

DWELLING

The dwelling is the structure you want to cover. For your home or condo to be covered it is important to make known the use of the building. Like your primary home insurance, this will cover things like fire, water losses, falling objects, lightening, wind, etc. If you use it as a vacation home and a temporary rental, this should be disclosed to your agent. Insurance companies may deny coverage even on these losses if they discover you are renting your house out, even on a short-term basis.

In many cases you can also cover detatched structures such as sheds, barns, guest houses, and garages. You want to make sure to tell your agent about these to make sure they are listed on your policy. Some policies will cover up to 10% of the primary dwelling amount. Some, but not all. You may also find that these detached structures need to be covered for more than this amount.

CONTENTS OR PERSONAL PROPERTY

These items include clothing, appliances, furniture, lawn care items, etc. It is highly recommended that you add a replacement cost endorsement to your policy so these items can be replaced instead of just receiving the depreciated actual value of them today if there is a claim. That way if you had a fire loss, you could truly replace everything with like items that are brand new.

LIABILITY

This might be the most important coverage type. If you are leasing out your home and you are sued for negligence of any kind, your liability coverage will protect you. Keep in mind you don’t even have to be at fault to get sued. Lengthy court battles can get expensive and your liability will cover these expenses. They will also cover settlements if the courts rule in favor of the plaintiff.

Do yourself a favor and choose the highest liability limit the company will offer. The cost differential is not that much and the reward for having the higher limits can be huge. Many companies will offer a limit up to $1,000,000 for liability.

BUSINESS INCOME

Sometimes referred to as loss of use coverage, business income covers expenses you would incur by not being able to rent a property due to a covered loss. For example, if you had a fire and the home had to be renovated or replaced, your business income coverage would pay for loss of rental income during this time of reconstruction. This is not always standard so be sure to ask for this if you want the coverage.

Two final recommendations.

  1. If you plan to rent out a property of any kind, you may want to consider transferring that property into a business name or LLC. This will further protect you from anyone being able to access any of your assets in your personal name. Just make certain your insurance policy is in the same name as the property owner.
  2. Consider an umbrella policy that will pick up where your underlying property policy leaves off. Again, make sure you have the correct name listed as named insured on this policy as well.

For any questions on anything discussed please feel free to give us a call at 704-494-9495. Our agents can help explain these matters to you and get you a free quote on this coverage.

AMAZON DELIVERY INSURANCE

Amazon has recently introduced Prime Now to the Charlotte, NC region. This has opened up a need for more drivers and an important insurance implication that should be carefully considered. We will focus on Amazon delivery insurance in this article.

Amazon employs independent contractors to help assist the US Postal Service and other large package delivery services like Fed Ex and UPS. Independent contractor drivers are commonly referred to as Amazon flex drivers. Amazon also uses delivery providers. For more information on this you can go to https://logistics.amazon.com/ or https://flex.amazon.com/.

Amazon has certain requirements to become a driver that vary depending on if you are considered a subcontractor or a direct employee of a delivery provider. Some of the main requirements are shown below for each.

Delivery Provider

  1. A cargo van with at least 300 cubic feet of cargo space
  2. Complete a safety and driver training course
  3. Wear a uniform
  4. Have minimum insurance requirements

Flex Driver

  1. Have a smart phone and be able to download the app
  2. Be able to complete a background check
  3. Have the minimum required vehicle such as a mid-sized 4 door sedan, SUV, mini-van, or pickup truck with an enclosed bed
  4. Have the required license to drive and minimum insurance requirements

For a list of frequently asked questions on becoming a driver you can go to https://flex.amazon.com/faqs/

With all those requirements in place, there currently appears to be a coverage gap on being properly insured though. Delivery providers typically have minimum requirements for having commercial insurance. Flex drivers, not so much. Proof of a personal insurance policy may be sufficient for Amazon, but it is not for you and your insurance company.

One of the main exclusions on your personal auto policy is any kind of business use with your vehicle. A personal auto policy will allow a business use class endorsement for certain business uses, but package delivery is not one of them. To be adequately covered to use your vehicle for any kind of package delivery, you would need to have a commercial auto policy in force. Some commercial auto policies will also cover you for personal use if that is requested on the policy. That way you are covered for business and personal use under one insurance policy.

Just as transportation network companies such as Uber and Lyft have recently arrived and created a new era of insurance concerns, Amazon’s changes to package delivery has also opened up these same concerns. Just because you are fine in the eyes of Amazon, doesn’t mean you are fine if you have a claim.

For example, if you back up your vehicle after delivering a package and run over someone or something, your insurance company will want to make sure that you are covered under a commercial policy before paying out on such a claim. This would effect not only damages to your vehicle, but also the liability for the damage you did. Don’t expect Amazon, Uber Eats, or any other company you are delivering for to pay for your loss.

With the recent purchase by Amazon of Whole Foods, this will also create even more opportunities for more drivers, which in turn brings more insurance questions. We mention Amazon when referring to these package delivery opportunities because of their relative market share for home delivery. They are absolutely not alone though. Virtually every large retailer has plans implemented, if they haven’t already begun to deliver items. Whether it is restaurant food, groceries, general merchandise, or any other items, a personal auto policy will not cover you for delivery of any kind.

It is very important to make sure you are adequately covered before starting to work for any company doing delivery of any kind. Many people hear commercial insurance and get scared thinking your premiums won’t be affordable. That isn’t really the case at all. Many commercial policies can be quite similar in premium to your personal auto policies. Don’t wait until you have a claim denied before looking into this. Call us at 704-494-9495 if you have any questions and one of our friendly and knowledgeable agents will be happy to discuss options with you.