commercial insurance Archives - Page 11 of 12

Business Interruption Insurance and the Rising Risk of Pandemic

“Pandemic” seems to be the word on every one’s lips these days. Recent events, as well as our modern world’s reliance on global travel and trade, have made many think about the risk of illness spreading quickly from country to country. While our first worry is always for the health and well-being of our loved ones and ourselves, it can also become necessary to think about such tragedy’s effect on our businesses. How do businesses protect themselves financially against catastrophic events? And is a policy such as business interruption insurance enough to protect them from the modern risk of disease?

umberella with a money sign under it being covered fromt he rain. — *Business interruption insurance helps protect a business during catastrophic events.*

Business Interruption Insurance

Is there a type of insurance that helps businesses recoup losses after a disaster? The answer is yes: it is called business interruption insurance. However, this type of insurance is not offered as a stand-alone policy: it can only be purchased as an add-on to property/casualty policies or included in a package plan.

As its name implies, business interruption insurance pays out if your normal operations are halted due to an event such as fire or natural disaster. It replaces income that you would have been getting had your business been up and running.

The pay-out period usually runs from the time of the event to the time when your insurance company decides the interruption is over – usually when your business is repaired / returned to the same condition as it started. How much you get during that time will be based on your previous financial records.

What Does Business Interruption Insurance Cover?

silhouette of a business man in suit and suitcase with a red line driving downwards behind him. — *Business interruption insurance will help your business recover from loss of profits, and more.*

Generally, business insurance policies can cover the following:

Profits

Fixed costs such as operating expenses

Temporary location

Training costs in case employees need to be retrained on new equipment

Employee wages

Taxes

Loan payments
Civil authority ingress/egress, which covers closures and resulting loss of income due to government intervention (such as curfews or street closures because of a covered event like fire)

Are There Limitations?

Business interruption insurance can obviously be very helpful to you and your business in time of need. But now we can look at whether it might be a way to help businesses get back on their feet after a devastating pandemic, or even a pandemic scare.

As with all insurance policies, business interruption insurance will only pay out if the cause of the loss is covered in the policy. In most policies, a business needs to suffer “direct physical loss or damage.” When most people think of damage to a business, they think of structural damage, but that doesn’t have to be the case. Let’s say, for example, that a business was directly contaminated by a pandemic virus, then you could certainly make the argument that your business was damaged and interrupted by the event.

However, the question remains whether businesses closed due to an outbreak can claim on their business interruption insurance. While they will obviously suffer income loss if they have to close their business, it seems unlikely that insurance companies will decide to pay out. They do not consider contagious diseases damage to property, and some insurance companies have even been specifically singling out viruses and bacteria as things that are not covered in their policies. The only other possibility for help might be the “civil authority ingress/egress” coverage. If the government closes all businesses, then perhaps you could argue that they are the cause of your loss.

The best thing to do when considering these uncertain situations is to contact your insurance company and ask lots of specific questions about your coverage. And remember, EZ.Insure is here to help you find the best plan to protect your business. Our services are always free and nobody will ever hound you with endless calls. You have enough to worry about! To get started simply enter your zip code in the bar above, or you can speak to an agent by calling 888-615-4893.

Get The Most Accurate Local Quotes From Ez.Insure

The time has come, and you find yourself in need of a new insurance plan. A sense of anxiety sets in, and you slowly become overwhelmed with researching. When shopping for insurance, it can be hard to find a company that provides you with the best services. This includes providing you with accurate quotes on the plans you are searching for. Whether it be Medicare Supplements, health insurance plans, or commercial business plans, EZ.insure has got your covered. How?

young man frustrated with his hand in his hair looking at his laptop. — *Researching and comparing all the different companies and plans can lead to time wasted, frustration, and inaccurate information.*

Instant Quotes

Well it’s simple, we provide you with instant accurate quotes so you can compare plans for yourself, and choose which best suits your needs and budget. No more jumping from site to site trying to compare plans, we do it for you in seconds. Not savvy in computers? That’s okay! We offer a plethora of highly trained agents within your area that can provide you with all the quotes, compare the plans, and sign you up. All of these services are free!

How We Provide Accurate Quotes

Unlike other companies, we make sure we do our research and homework. Ez.Insure uses state-of-the-art technology that provides accurate live quotes. Live quotes mean that the quotes provided are the prices you would pay for the plan if you signed up today. Because the market changes, as well as personal situations, the prices of insurance changes as well.

black and white photo of a dartboard with one dart in the center and another being thrown towards the center. — *Ez.Insure uses state-of-the-art technology that provides accurate live quotes.*

As soon as you submit a form, you will see your free quotes and your agent based on your needs. Before you even speak to an agent you will know who they are, some of the companies they work directly with, and what some of the plan prices they offer are.

Avoid all of the work of trying to find an accurate quote. Searching online can leave you with inaccurate quotes, and false information. If you’re not an industry expert, scams, errors, or simple ignorance can cost you tons of money, making this process even more difficult. It’s your health, and it’s important.

EZ.Insure offers accurate quotes instantly. You will not be left in the dark. We will provide you with quotes of all the plans, without any hidden fees. Just instant, upfront information, and what the plan covers exactly. This will help you make the best decision regarding your own healthcare, and also alleviates further headaches like unexpected bills for medical expenses. Save your money and time. To get started, enter your zip code in the bar above, or to speak to a specialized agent within your area, call 888-350-1890, or email [email protected].

Can you Cancel a Commercial Insurance Policy?

As a small business owner, you might find yourself in a situation where canceling your policy is the best solution. This comes from a variety of reasons: you have a better policy offer elsewhere, changes in your business mean you need different coverage, or you might be shifting your company’s goals altogether. Whatever your reasoning, there are a few things to consider before you cancel your insurance.

hands to cancel policy — *Think before you back out on a contract. There are more penalties than just a fee attached.*

Penalties & Changes

Often times, your insurance company will impose a penalty if you cancel it, rather than waiting to not renew. Signing the contract for your policy is to ensure you’ll pay it for the full term. It’s security for the provider.

However, if you find yourself needing to cancel, the penalty fee might actually be cheaper than trying to ride out the term or doubling up on policies. We know rising insurance rates play a part in policy changes, but here are a few things you might not know:

Comparisons between plans should be the item on the checklist. If your new plan is cheaper, note the final difference to see if canceling will actually benefit you.
If you do decide to go forward, ask for the penalty specifics from your insurance provider. Having concrete numbers to work with will help with the bottom line for your business, so you can plan for the financial changes.
Has your new insurance firm made all the final checks? Make sure you have a 100% accurate number for your premium.
Finally, check with the next company you’re signing up with. Do they have bundles to save you money? Are they easy to work with? How is their customer service team?

When you finalize and complete these items, you will have a well-rounded idea of what canceling your insurance policy will bring.

A Note on History

Like any relationship, having a history with a company could help you in the long-run. If you’ve been with a company for several years, then you’ve built trust with them. Canceling and turning to another company could spell trouble in the long run. While the policy could be cheaper, if something were to happen (like your account falls into bad-standing) then it could prove harder to recover.

For example, if you know your broker on a first-name basis, then they might help vouch for you with an underwriter for a new policy, should you find it in turmoil. Too many claims or cancelation threats from the company could be easily solved by citing your history with the company.

person talking with agent to cancel policy — *If you like your insurance agent (and trust them), it could be worth paying a little more and staying with your current policy.*

All in all, if canceling is in your future, it needs to be done with as much (maybe even more) preparation than purchasing coverage. There are many strings attached to these policies, and you need to be aware of each of them and how they’ll affect your business in the future. It could be as simple as an added fee, but if you don’t check it out, you could be saddled with hefty premiums in the future.

EZ.Insure can give you the help you need to make the best decisions for your business. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing [email protected] or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.

Cybercrime Stats and Why You’re at Risk

It’s no secret that the internet is changing the way society interacts. This goes from social media affecting our relationships and the way we view each other, to the rising rates of cybercrime on the web.

a man with a suit and tie with his finger choosing a one star review. — *The damage an act of cyber theft can leave on your business is crippling, it can also ruin your reputation.*

The damage an act of cyber theft can leave on your business is crippling. Not only can it leave you feeling violated, scared, and confused, it can also ruin your reputation for safety amongst your customers–one fatal mistake for any small business. It’s already hard enough to survive in the current corporate atmosphere.

The first step is to be aware of the risks. The next one is to learn how to protect yourself.

Cybercrime Stats

First, let’s take a look at what constitutes cybercrime:

Selling illegal items online
Human trafficking
Identity theft
Malware/Ransomware
Privacy violations
Digital currency scams

The sad fact that combined, all of these contributed to over $1 trillion in profits for cybercriminals across their industries, and that number is still growing. Things seem bad now, but what does the future hold if these crimes continue to rise? To put things into perspective, most countries fall below the trillion-dollar mark–so cybercrime could be considered its own nation on profits alone.

Social media is the biggest channel criminals use to engage with people outside of the dark web. While sites like Facebook do invest money in protecting people’s private information, most people readily volunteer this info on their public pages. A criminal simply has to look at a profile to see things like where you’re checking in, what current interests you have, and even job history or address. To put things into perspective:

Social engineering is more useful the more information you have about someone.
Cybercrime tools are widely available for purchase.
Social media fraud attacks on the rise, up to 43% since 2018.

This provokes the question of how much balance can someone maintain. While these numbers are dire, there’s no getting around using social media for marketing.

It seems like no one is safe, but small business owners have a lot more to lose. 85% of phishing or social engineering attacks were reported by organizations in 2019, and that’s just the reported ones. We can’t even begin to estimate how many are in the private sector as some could be so subtle, they’re either ignored or outright passed over.

Person sitting at a laptop with a dark hood on, with a question mark over the face. — *If you’re in the professional services industry, such as any business needing a license to operate, then you’re most at risk for these attacks.*

For any company, malware is going to be your biggest threat. In 2018, malware cost companies upwards for $2 million, growing over 10% from the previous year.

If you’re in the professional services industry, such as any business needing a license to operate, then you’re most at risk for these attacks. This is because your industry type often has a wealth of private data for your clients, and yet most go with little to no protection.

Finally, the costs of cybercrime are intense. Top companies pay an average of $25 a minute to keep themselves protected, altogether, the costs can soar to around $3 million. That’s an incredible sum just considering it’s to protect against a criminal industry that’s making a hundred times more.

What Is the Best Way to Protect Yourself?

Odds are, you might have fallen victim to some form of cybercrime in the past. If you’re currently suffering, we have a guide here to help you out.

If you’re lucky enough to still be on the other side, then the best thing to do is join the industry with coverage, malware protection, and simple scam awareness.

lock with chaines that are black with the words "data protection" on the lock. — *The best way to protect yourself is with cyber liabilty coverage which offers malware protection, and simple scam awareness.*

Cyber liability insurance is designed for just these types of situations. With this policy, you’ll have coverage for:

Lost or damaged electronic data
Computer operations Interruption
Privacy & Notification to customers and other affected parties
Some may offer protection from lawsuits

This is your first line of defense, besides that, keep up to date with current protective software, and if something seems too good to be true from an email, it probably is.

EZ.Insure is there to make sure you’re not alone in protecting your business. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing [email protected] or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.

Protecting Yourself from a Lawsuit

The business world is filled with lawsuits nowadays, and protecting yourself is a key skill for staying afloat. The average lawsuit a small business faces (across the country) can be in the tens of thousands, with some of the worst cases going above $100,000. No company wants to incur unexpected expenses, and some just outright can’t afford it.

man in a suit needing lawsuit protection — Lawsuits can come from any direction–and from anyone. Professional liability is a must.

Let’s take a look at what sparks negligence or liability lawsuits:

An accident that could have been reasonably prevented
A situation you were informed of that led to a negative situation

Basically, any event that can reasonably be linked to common human error can lead to thousands of dollars in restitution. If you want to say safe, here are some easy guidelines to follow.

Professional Liability Coverage

We bring this up first because no one is above mistakes. Even the most well-meaning business owner will trip up once, and that can be enough to bury your company in financial debt. Get started here with professional liability coverage.

Secure Your Assets

The court can assist lawyers in coming after your physical property and even the money in your bank account. There are several things you can do to protect these items before a lawsuit comes to your door:

Put funds into a retirement account – These are generally protected by law, so you can rest assured the funds will still be here.
Form an LLC – A Limited Liability Corporation is set up just for cases like these. It limits your personal involvement with the company while still maintaining some control.
Real Estate Protection Laws – Investing in your real estate can protect your money in the event of a lawsuit. Your money will be safe invested in your mortgage as the creditors cannot take your home away from you.

Contractual Protection

The law is black and white. So, if you move the liability from your company to another in specified cases, this can protect you down the road.

For example, if you own a business in a small shopping mall, then you could already be protected in the event someone slips in snow outside. Senior citizens are more at risk for these situations. Check with the property’s owner for who is liable in this case.

books on a shelf about a lawsuit — *You don’t need a law degree to know suing can ruin a company.*

In these cases, insisting on written contracts to make sure lawsuits find their intended target is your best bet. That way, if something unfortunate happens, the court can read your contract and absolve you of liability.

We hope you never have to deal with a lawsuit, but the reality is that small businesses face these threats daily. Learn to protect yourself from these guidelines and practice everyday safety. There are hosts of manuals, pamphlets, and safety guidelines out there for risk management in any business. Taking the time to learn these cases will give you the knowledge and surety to get yourself out of uncomfortable situations in the future.

EZ.Insure is here to help you make the best decisions for your business. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing [email protected] or calling 888-615-4893. EZ.Insure makes the entire process easy, and quick.

The Future of Commercial Insurance

The future is now. We’re researching virtual reality, nanobots for health, and can even talk to coma patients without the use of invasive surgery. With all these advancements, our world is going to change how we interact with the economy, and therefore, insurance.

However, these changes come with some pushback. Not everyone is on board with progress, take Blockbuster for instance. They decided to opt-out of utilizing the internet to disperse their videos and look at them now.

Can the same be said for the insurance world? We as people are shopping differently, working differently, and expecting different results. What does this mean for commercial insurance?

apps on a cell phone changing the way we get insurance — *There’s an app for everything now! Pizza, games, meetups, dating, and now–insurance?*

How Are We Different?

It’s no secret what our demands are now: everything delivered and fast. With the rise of Uber, Shipt, and Doordash, we now can live our lives completely in the comfort of our own home. Why leave? We have Amazon to give us our essentials, and with their rising drone fleet, even that could be delivered on the same day.

We’re changing as a society to having our needs met within the hour they arise. Want a date? Download Tinder. Throwing a party? Order food and play music on your phone. Apps dominate our handheld ecology, further pushing this culture of the world literally at our fingertips.

Why Is This a Problem?

To put it simply, the insurance industry needs to catch up.

Some companies have, like Lemonade (homeowners and renter’s insurance) or Root (car insurance). They are the exception to the rule, however, not the standard. And this isn’t to say companies aren’t creating apps, some are, but the truth is, it only delivers information to people’s fingertips, not the power to change things.

Truthfully, the industry must expand its liability coverage. Not everyone goes to work in an office anymore. With the rise of freelancers comes a need to fit policies to an odd-shaped market. These freelancers are small-business owners, and a whopping 40% are uninsured, barely even looking at liability for their work life. And it makes sense, the policies offered just don’t fit their lifestyle.

Modern insurance contracts are clunky, long, and don’t favor short, bursts of work. For these gig workers, they need a snappy, instant digital certificate to insure them. Who wouldn’t chuck $5 at an insurance company for a BOP-lite policy for a 2 week period?

Small businesses are born online, further widening our technological world. How does an insurance company begin to cover these businesses? Some are fully remote, requiring cyber liability, and while useful, they aren’t optimized.

Designers, writers, software developers, and more use bite-size jobs, but who’s going to cover them?

These business owners can live highly stressful lives, and constant market changes don’t support purchasing a hefty policy. If commercial insurance wants to snag this group of people, it needs to shift its focus to supporting what they need.

What Can Change?

The insurance industry can benefit from the overall interface of companies like Netflix, Doordash, and Amazon, meaning a focus on customer satisfaction and flexibility.

The new generation of small-business owners need policies that they can interact with at the flick of a finger, not another chore to accomplish like a meeting. And further, these policies need to be bite-size enough to not only explain fast but also be able to buy fast. Lowering policy coverage can also make it cheap enough to be a viable option for these small business owners.

Slap on an amazing customer service team with 24-hour availability (with a cute logo), and you’ve got yourself a whole new client base.

Tag: commercial insurance