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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. If not please call us at 704-494-9495 to discuss any other questions you may have or to clarify anything that we have 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. 

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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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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 for not only your business location, but also for your customer’s vehicles.  There are several different insurance coverage 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 certain types of coverage.  Like for instance what is the difference between garage liability and garage keepers legal liability insurance?  I will discuss some of these things now.   

Types of Repair Shops 

There are many types of shops where the described coverage come into play.

Below is a list of the common types of garage shops in Charlotte, NC. 

  • Auto Body Shop 
  • Auto Repair Shop 
  • Brake Shop 
  • Tire Shop 
  • Truck Repair Shop 
  • Car Wash 
  • Fix It Yourself Garage 

 

Some of the common insurance policy types are shown below.

Business Owners Policy (BOP) 

A business owner’s insurance policy covers liability for your premises along with many other coverage options.  There are a lot of bells and whistles on these policy types but make sure the requested endorsements have been added because some may have to be selected as an add-on individually. 

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/

 

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.

 

RESTAURANT INSURANCE

RESTAURANT INSURANCE

Restaurants have very specific insurance needs 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.  

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 with.

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.  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.  

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.
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.

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.