commercial insurance help Archives - Page 5 of 7

Claim Or Lawsuit? Know The Difference For Your Business

The terms claim and lawsuit are often used interchangeably, but they have very different meanings and affect your business in very different ways. If you own a business, it is important to know the difference so that you can handle each situation properly, both in regards to the individual who is making a complaint against you and your insurance company. When someone files a claim against you (a claimant), it doesn’t necessarily mean that you will be facing a lawsuit. There are steps you can take to prevent major losses.

Claims

Claims are formal requests to be compensated for damages that are presented in writing to an insurance company. If you have been negligent, made a mistake, or caused some kind of loss to a customer or client, they can go to your insurance company with a claim, which could eventually lead to lawsuit.

When a customer files a claim against you, it will not necessarily cost you anything out of pocket if you are covered by a commercial liability policy. Once the customer submits a claim, your insurer assigns the case to a claim adjuster who then reviews the submitted documents and investigates further. Then a series of back-and-forth negotiations are initiated between the insurer and the claimant, which will result in a final claim amount being settled upon. The money is given to the claimant and the whole thing is over. As long as you have insurance when the incident occurs, then your policy will take care of it.

brown gavel on the block — *Lawsuits will cost you more than a claim, because you will need defense and can lose a lot more money.*

Lawsuits

Lawsuits are more involved than claims, and will cost you much more than a claim made against your business. A lawsuit is filed if no settlement can be reached through the claims procedure, or when the demands of the claimant are not met. You can attempt to resolve the lawsuit via mediation, but, no matter what, a lawsuit will cost you more than a claim. This is because you will have to hire an attorney to represent you even in the case of a mediated suit. You could end up losing a substantial amount of money during a lawsuit, through both attorney fees and damages, which could greatly hurt your business.

What You Can Do

The best way to protect your business from both claims and lawsuits is to have commercial liability insurance. A general liability insurance policy will protect you in most instances, but a professional liability insurance plan will cover your business for claims resulting from a service provided. Errors and omission insurance, which falls under the umbrella of professional liability insurance, is claims-made coverage, which means the policy will cover claims on active policies regardless of when the claim happened. If you want to simplify your commercial insurance, a business owner’s policy can bundle all of your coverage needs into a single policy. It is best to stay ahead of the game before a claim is made against your business. Accidents happen, so it’s important to make sure you are protected.

illustrationof two businessmen in suits shaking hands while standing under a yellow and red umbrella. — *Get properly insured to protect your business by speaking with an EZ.Insure agent.*

Need Help?

Don’t make the mistake of getting the bare minimum commercial insurance coverage that just includes the basics. If you don’t have the proper liability insurance, you could end up losing your business. Liability coverage will help cover the cost of lawsuits, including your legal defense and any damages that you are ordered to pay.

To find the right commercial insurance to fully protect you from a claim or lawsuit, you need to do a lot of research, because different businesses will require different policies. EZ’s agents are trained in the commercial insurance industry so we can help cover you and your business. We understand how important it is to protect something that you worked so hard to build. Our agent will go over all the policies you need and will find the best rates with the most coverage. To start comparing plans for free, enter your zip code in the bar above, or to speak to an agent, call 888-615-4893.

How To Save More On Business Insurance With EZ

It is easy to find cheap commercial insurance, but, more likely, a cheap plan will not provide the coverage that your business needs. If a policy is a lot less expensive than others, there is usually a reason: most cheap plans do not cover what other policies do. Saving money by cutting corners will just lead to insufficient protection, which can only end up costing your business money. Having the right business insurance is important for the success of your business and your bottom line. There are ways to find affordable commercial insurance with the proper coverage for your business so that you can save money in the long run.

caucasian woman sitting at a desk looking at her laptop with her hand on her chin — *You can get the most savings by understanding what kind of insurance your business really needs.*

Understand What You Need

Different types of businesses face different types of risks, and will need different types of commercial insurance. Some businesses require multiple insurance policies, while others require just one or two policies. Having a better understanding of exactly what your business needs will ensure that you’re covered in every eventuality.

If you run a moving company, for example, you will have to insure all of your commercial vehicles, as well as the workers who are driving them. You will also need commercial liability insurance to protect your business against claims that you damaged customer property. To make sure that you are covering every aspect of your business, consider speaking to an EZ agent. Our agents are educated and experienced in the business insurance industry, so they can advise you on what insurance your specific business needs.

Choose A Higher Deductible

The higher your deductible is, the lower your premiums will be. If you want to save money on insurance, then consider opting for a higher deductible. This will save you money on the premium costs, since your premiums would be lower than those of other plans with lower deductibles. But before opting for a higher deductible, make sure that you would be able to pay your deductible if something did happen.

Consider Paying in Full

You have the option to pay your insurance premiums in full for the year, or to pay in monthly installments. You can save money by choosing to pay for your policy in full, because many insurance companies offer discounts for up-front payment. If you plan accordingly and set money aside throughout the year, you can pay for your insurance policy in one payment and lower your premiums without losing any coverage.

Bundle!

Most insurance companies will offer a discount when you purchase multiple policies. It can be cheaper to buy a package policy such as a business-owners policy (BOP), as opposed to purchasing general liability insurance and commercial property insurance separately. Packaged policies, while cheaper, offer just as much coverage as separate policies.

Ways To Prevent Losses

body in a suit with caucasian hands pointing at an insurance policy that is being held by another set of hands — *If your insurance company has some recommendations to follow, then do so so you can save more.*

You can reduce your insurance premiums for certain types of coverage by following any recommendations given to you by your insurance company. This can be anywhere from increasing workplace safety measures to human resource interventions. Knowing what the recommendations are and following them can mean saving more money. Following these guidelines can also help to reduce the number of claims you make on your insurance, which can further lower your premiums – insurance companies tend to reward customers who haven’t made any claims.

Reduce Risks

If you have any outside third parties working for your business, you can save money by making sure that they have their own insurance coverage. This means that, if an accident or other loss occurs, you won’t be held liable and have to pay any claims. In addition, if you decide to work with another business, ask to be listed on their policy as an additional insured. By becoming an additional insured on their policy, you are minimizing your risk if something goes wrong.

Use An EZ Agent

Researching and comparing insurance can be difficult and time-consuming. Instead of feeling helpless and lost, contact an EZ agent. Working with one of our experienced insurance experts will help you save money without sacrificing coverage. What separates us from the rest is that we offer expert advice at no cost to you, and we work with all the top-rated insurance carriers in the United States. That means we can compare all available plans to find you the best coverage at the right price – and we’ll do it for free! We can also guide you towards a bundle so that you can save more money. Start saving money by entering your zip code in the bar above, or to speak directly to one of our licensed agents call 888-615-4893.

Additional Insured VS Loss Payee

Insurance terminology can be confusing, you’re a business owner, not an insurance expert. It can be difficult to differentiate between terms, but it is crucial to understand the differences in order to ensure that you are getting the right coverage, and that you are in compliance with your plan’s conditions. For example, there are two terms, “additional insured” and “loss payee,” that both describe a third party who requires special protection as part of your commercial insurance policy. The two terms may be similar in some ways, but are very different in terms of the protection offered to all parties involved.

Additional Insured

caucasian hand holding a pen and paper pointing to another set of hands — *You should request to be added to a business’ liability policy if you are being contracted to perform a job. It will protect you in case something goes wrong.*

Simply put, an additional insured is anyone added to an insurance policy who is not the primary policy holder. If your business contracts any outside workers or businesses that could be held liable for jobs that they perform while working with you, those third parties will often request to be added to your commercial liability policy. Adding them to your policy will mean that they will be covered for work done with your business or on your premises. You should also request to be added to a business’ liability policy if you are the one being contracted to perform a job.

For example, let’s say you hire a janitorial company to clean your workplace, and a customer or other person who doesn’t work for your business gets hurt on your premises because of something the janitorial company has done. If you have listed the janitorial company as an additional insured on your general liability insurance policy or business owners policy, BOP, then the janitorial company will be protected under your policy in case they are sued for negligence. The additional insured has liability protection, but they don’t have a legal first right to claim payments from the named insured’s insurance policy.

Loss Payee

A loss payee is a third party listed on a commercial property insurance policy’s declarations page who is entitled to all or a portion of the insurance claim payments in the event of a loss. When there is a loss payee, who is usually a finance company, bank, or other lender, listed on a policy, the insurance company will pay claims directly to the loss payee first before it makes payments to anyone else, including the policy owner. The named insured, or policy holder, comes second because loss payees have an insurable interest in the property.

For example, if your business takes out a loan to purchase a building, the mortgage company who is financing the building might require you to list them as a loss payee on your commercial insurance policy’s declarations page. So, if there is any damage to the property, such as a fire, or an accident, then the mortgage company’s interests will be protected. Whenever you file a damage claim, your insurance company will have to notify the loss payee (your mortgage company). The insurer will then issue a check to pay for repairs, made out to both the named insured (you) and the loss payee (the mortgage company).

The Difference

silver scale with a question mark on each side — *Additional insured and loss payee are similar, but the difference determines what protection you get.*

Additional insured and loss payees are both entitled to receive insurance benefits from the named insured’s (policy owner) policy. The main difference is that additional insured will receive liability protection, whereas loss payees will only receive property damage coverage. Additional insured generally cannot receive any payments for any property claims, unless they have a direct involvement in the claim. For example, if the janitorial service from above did not service an area of your business where a customer was injured, then they would have no ability to file a claim.

Whenever you work with another business that increases your business’s legal liability, you should consider requesting to be added as an additional insured on their policy. On the other hand, if you have a direct interest in investing in another business and are considering becoming their lender, then you should request to be added as a loss payee on their insurance policy. That way your interests are protected, and you will get first rights to claim proceeds from their insurance company in case of any damage.

You can’t add an additional insured or a loss payee to all types of small business insurance; these endorsements are only available on some small business insurance policies. To find out if you can add either to your insurance policy, and which one might be right for you, you should speak to an insurance agent. EZ.Insure offers highly-trained agents who will review your business insurance policies, make sure you are properly insured, and help you determine if a third-party request to be named as a loss payee or additional insured is reasonable. Make sure you’ve got the right coverage for your business at the right price by connecting with one of our agents. To get started, simply enter your zip code in the bar above, or to speak to an agent directly call 888-615-4893.

Commercial Insurance Renewal Checklist

Having commercial insurance is important for your business. The right coverage mitigates any financial risks and protects you in case of any unexpected events. To make sure that your business has adequate insurance coverage, you need to review your commercial insurance policies annually, rather than just allowing them to automatically renew. Using a business insurance renewal checklist will make it easier to assess your current needs and will make the renewal process go as smoothly as possible. You can also use a checklist to prepare you to speak with an insurance agent. An EZ agent will use the info you gather to help make sure you are fully covered, and to see if there are any discounts available.

two pages with data reports on them laying on a table next to a computer keyboard — *Review your financial statements, data, and property values.*

1. Gather Policies, Reports & Data

Before it is time to renew your commercial insurance policies, gather all your financial reports including profit and loss statements, so you can go over your real property values and locations, income generated from those properties, gross revenues, inventories and any other financial details related to your business. Any changes in your revenue affect your insurance; as revenue increases, your premiums will increase as well.

In addition to gathering all of your financial documents, you should also look at all of your insurance policies, and your workers’ compensation experience data rating sheet. Reviewing all of these documents together can help you determine if you need to lower your coverage, increase your coverage, or get rid of certain policies.

2. Review Any Changes You’ve Made to Your Business

If you have opened a new location, purchased new equipment, or updated your current building, this will affect your commercial insurance coverage. If your business has grown, then the coverage that you had from last year will not be sufficient. On the other hand, if you’ve pared down, then you might be paying for insurance that you don’t even need!

3. Review Changes To Your Staff

Have you hired any new employees? Have you lost some? Are some employees doing riskier work now than they were last year? If you’ve answered yes to any of these questions, then your current workers’ compensation coverage might need to be updated. The size of your payroll affects your workers’ compensation rate, so any time that employees join or leave your business, workers’ comp coverage levels should be adjusted. The insurance renewal process is the perfect opportunity to make sure that you have the appropriate workers’ comp coverage.

4. Check Policy Exclusions

When it is time to renew your insurance, make sure to double-check your policy exclusions to determine what events and circumstances your policies will and will not cover. Make sure that you are comfortable with these exclusions, and if you are not, speak to an EZ agent. Our agents will make sure that any particular event you want covered will be covered next year.

claims written on a blue post it note that is on top of a stack of paperwork with the word "claim form" on the top — *The less claims you have made, then the lower your rates may go down over time.*

5. Review Your Claims History

Losses and claims have a major effect on your insurance premiums. A history of claims will drive your premiums up, but if you have a clean loss history, your rates may go down over time. Assess how many claims you have made and why, and see if there is a way to prevent making them in the future. And if you have not had any claims or losses, speak to an EZ agent to see if you can get a discount on next year’s policy.

6. Choose The Right Agent

A good insurance agent will take the time to review all of these documents, statements, and changes to your company. They will also take the time to review your policies and make sure your business will be fully protected in the coming year. Even if there haven’t been any changes to your business, it is still good practice to regularly update your existing policies, and an EZ agent can check to see if there might be a better policy available to you.

Choosing the right agent is the best way to save money on your commercial insurance policies, and EZ has the best agents for the job. Our agents will assess your business’s needs and compare all available plans in your area at no cost to you. We truly care about your needs, which is why our services are always free. To get instant, accurate quotes, enter your zip code in the bar above, or to speak directly to one of our licensed agents, call 888-615-4893.

Coinsurance Clause? Agreed Value? Make Sure You Have Enough Commercial Property Insurance!

Having enough commercial property insurance coverage is crucial to protecting your business. Whether you’re choosing to insure the actual cash value (ACV) or the replacement value of your real property (your building) and business personal property (everything in it), you need to purchase a policy that will cover as much as possible in case disaster strikes. One major storm, one act of vandalism, or one kitchen fire can mean thousands of dollars in repairs, and could even mean closing your doors forever.

There is another reason, though, that you need to purchase the right amount of coverage: your insurance company might actually require you to have a certain amount. Check your policy for what is known as a coinsurance clause, and make sure that you’re meeting your insurance company’s requirements, otherwise you could end up paying for damages to your business out-of-pocket.

What Is Coinsurance?

caucasian hands pointing at a piece of paper that says "insurance policy" on it — *Make sure to read your commercial insurance policy to see if you are required to pay a coinsurance clause.*

Your commercial property insurance can feel like another expense in a very long list of expenses that pile up every month. It might be tempting to cut your premium by skimping on coverage – after all, what are the odds that you’ll be forced to make a claim? Well, commercial property insurance claims are more common than you might think, and more costly than you might think, as well. That means that, if you’re covered by a commercial property insurance policy, your insurance company will have to lay out a lot of cash in the event that you do make a claim. It also means that your insurance company needs you (and every other business with a policy) to pay enough in premiums to keep them afloat.

One way that insurance companies make sure that you’re paying enough in premiums is by adding a coinsurance clause to your policy. You may be familiar with this term as it relates to health insurance, but it works a little bit differently in a commercial property insurance policy. If you have a coinsurance requirement in your health insurance plan, it means that your insurance company pays a certain percentage of the bill, and you pay the rest. If you have a coinsurance clause in your commercial property policy, it means that you need to purchase a policy with a certain policy limit, or maximum amount that your insurance company will pay for a claim.

For example, your insurance company might write an 80% coinsurance clause into your policy. This would mean that you would need to purchase enough insurance to cover 80% of the value of your property. So, if you were insuring a building that would cost $1 million to replace, you would have to purchase at least $800,000 in coverage.

How Coinsurance Works

Coinsurance clauses encourage business owners to purchase enough insurance to make sure that any possible claims are fully covered, and to make sure that insurance companies collect enough premium dollars to keep rates fair for everybody. Not every policy will have a coinsurance clause – check your policy conditions to see if yours has one. If you do have a coinsurance clause, it won’t have any effect on your policy unless you experience a loss that requires you to make a claim. If you make a claim, and you haven’t fulfilled your coinsurance requirements, then you could face a penalty.

If you need to make a claim for damages, your insurance company will compare the insurance limit on your policy to the amount of insurance you were required to purchase based on your coinsurance clause. If you purchased less than you were required to, your insurance company might reduce your claim payment in proportion to the difference. For example, if you purchased 10% less than required, your insurance company might pay 10% less than they would if you had purchased adequate coverage.

For example, let’s say that you have an office that is valued at $100,000, and you have a 80% coinsurance clause in your property insurance. You would have to insure your office for at least $80,000. But let’s also say that you’ve only insured it for $40,000, 50% less than you were required to. There is a fire in your office that causes $20,000 in damages – but because you insured your property for 50% less than you were supposed to, your insurance company will now only pay 50% of the claim, or $10,000. You can see why it’s important to pay attention to your coinsurance requirements!

One other very important thing to note: your insurance company will decide whether you have met your coinsurance requirements based on what your property is worth at the time that the damage occurs. So, if your property has increased in value, and you haven’t purchased more coverage, then you could be hit with a penalty.

Avoiding a Coinsurance Clause

illustration of black hands shaking with a black and white suit on the arms — *if you want to avoid the coinsurance clause, then you will have to buy agreed value coverage.*

One way to avoid a coinsurance clause is to purchase agreed value coverage. An agreed value clause is added to a policy when you and your insurance company agree on the insurable value of your property. In order to reach this agreement, you need to submit a statement of values to your insurer before your policy begins. This statement of values will list everything you are insuring and its value.

Once you have provided a statement of values to your insurer, they will waive your coinsurance penalty for one year (the term of your policy). If you end up making a claim for damages, your property will be assessed based on the agreed-upon value as long as you have insured your property for that amount.

Getting the right commercial property insurance policy is one of the most important things you need to do for your business. Being underinsured can spell big trouble, because you could be hit with a coinsurance penalty by your insurance companies. Always make sure that your policy is keeping up with your growing business, and always make sure to go through your insurance conditions with a fine tooth comb. If you need help with either of those things, talk to EZ. Our knowledgeable agents can answer all of your commercial insurance-related questions, find you great policies, and keep them all up-to-date – and we’ll do it all for free! To get started with us, simply enter your zip code in the bar above, or you can speak to an agent by calling 888-615-4893.

Expanding Your Business? EZ’s Got You Covered

If your business is really taking off, and you’ve decided to expand, then you’ll need to start thinking about updating your commercial insurance policies. When you first started your business, you purchased the right amount of commercial insurance, but as your business grows and changes, so do your insurance needs. The last thing you want is to lose your business due to outdated or insufficient coverage. There are a few situations in which you need to rethink your commercial insurance coverage.

Adding A New Service

orange round sticker with the word new on it in white — *Adding services to your business does not mean that they are automatically covered by your current commercial insurance policy.*

As your business expands, you might decide to offer new services to your customers. Adding services to your business does not mean that they are automatically covered by your current commercial insurance policy; if you don’t update your policies, you are likely to end up with gaps in your coverage. For example, if you are adding an online service, then you will need to make sure that you get the correct cyber liability insurance.

Unfortunately, many business owners make the mistake of thinking that their general liability policy covers all liability, but this is not the case. Commercial general liability is not likely to cover all the threats that come with conducting business over the internet, such as data breaches. If your company’s information were hijacked, the cost of recovery could be astronomical, and the loss of customers and your reputation could be even more damaging.

Adding other services could also mean needing more professional liability than you currently have. This type of policy is necessary for any business that offers a professional service or regularly gives advice to clients. Let’s say, for example, that you decide to start offering workshops for customers through your business – in this case, you’ll probably need more liability insurance.

If you’re unsure whether you have the right coverage for your expanding business, EZ will go over your current policies to make sure that you are fully covered. We will evaluate all of your current commercial insurance policies, including general liability, BOP, professional liability, and workers compensation insurance. Then we will determine what you need to add on in order to be fully insured without any gaps that could damage your business.

Adding Multiple Locations

Hooray, your business is growing so much that you need to open another location! When adding multiple locations to your business, you have to keep several things in mind, such as:

What is the surrounding area like? Do you need more security, such as cameras or metal shutters? Could the weather in the new location lead to property damage?
Have employees been given the same guidelines and training as at those in the primary location?
What is the risk of injury to third parties at all locations?

Once you answer these questions, you can assess your new needs. To cover your multiple locations, you’ll probably need more commercial property insurance. In addition, adding more employees means you’ll also need to re-evaluate your workers compensation and employee liability insurance. Each location should have its own set of business insurance policies that meets each of its specific needs.

Upgrading Your Business’ Equipment

2 computer screens with a cell phone and headphones — *If you do not upgrade your insurance when you upgrade your equipment, then you might not have enough coverage for the new items.*

Have you recently upgraded all of your computer systems at your business? Have you added more equipment to your office? If so, then your current insurance policy might not include the correct amount of protection for the equipment. If you do not upgrade your insurance when you upgrade your equipment, then you might not have enough coverage for the new items if they are damaged or stolen. The last thing anyone wants is for a very expensive item to get stolen or damaged without any protection to cover the costs of repairing or replacing it. One of our agents will go over all of your upgraded equipment and machinery, and make sure that you are covered properly.

Depending on your type of business, you are likely to need multiple types of commercial insurance coverage. And as your business grows, your commercial insurance coverage needs will change, as well. In order to make sure you have adequate coverage, you need to have an agent that knows what kind of coverage you need and how much of it you should have. EZ’s agents are trained to make sure your most important asset, your business, is secured with comprehensive coverage. If you are looking to increase your insurance coverage, or find out if your business has enough insurance for your current situation, our agents can help you determine that free of charge. To get started, enter your zip code in the bar above, or to speak to an agent call 888-615-4893.

Tag: commercial insurance help