commercial insurance Archives - Page 12 of 12

Differences Between Commercial Insurance and Medicare

Both Medicare and Commercial Insurance have their strengths when it comes to coverage. In this time of debate over insurance and its costs, it’s more important than ever to know the differences between the two.

For business owners, you might be nearing the Medicare age and wondering which insurance you should focus on, or even how to balance them. While both have their merits, they each shine in their own way.

people in a meeting over commercial insurance and medicare — *It’s easier to see the difference between two concepts if you know how they work independently.*

Basically, Medicare was created to absorb risk for people with complex or expensive health issues. Commercial Insurance is a mandatory business expense for companies to operate in our economic sphere. One is social; the other is commercial.

Let’s expand more on these concepts, and how they actually help you.

How Commercial Insurance Helps

You can refer to our guides for commercial insurance if you are starting a new business, but for everyone else, the simple answer is minimizing risk.

Commercial insurance works to protect businesses from extenuating circumstances. From Worker’s Compensation to Business Owner’s Policy, these coverage types are put into place specifically to help businesses navigate through bad luck or human error.

Without this insurance, the negligence cases alone would bury any small business trying to set up. Any theft or property damage could cripple a company, not to mention the rising rate of cybercrime. It’s a dangerous world and the protection offered by this type is critical, if not enforced as mandatory by the state, to make sure business can continue.

How Medicare Helps

Medicare is completely different in conception. Instead of strategically sidestepping risk, it instead was created to help as many people as possible. American citizens pay into it throughout their careers so that when we arrive at either old age or a disability, we can access health care.

Medicare provides protection in these cases only, not for lawsuits or property damage. So, it is more effective for the average citizen. There is still confusion over whether Medicare offers the most coverage or an employer’s group health insurance. For more on that topic, read this.

One For Each Need

With what we’ve covered, commercial insurance is fantastic in the business world, as it has been designed to work in that sphere. On the other hand, Medicare, as a federally administered program, is a different beast entirely.

people discussing commercial insurance and medicare — *A simple look: Medicare is for everyone, while commercial insurance is just for businesses. Each individual must see how these stack in their case.*

While they can be used simultaneously, the different insurance types must be used properly in specific situations. These can be overwhelming to look at, especially if you want to use both to the best of respective strengths. Ready to get your best coverage?

EZ.Insure can give you the help you need to navigate both Medicare and Commercial Insurance. 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.

What Could Climate Change Do to Commercial Insurance?

Climate change has been a hot button issue for a while now, and the debate is only getting worse. While NASA scientists are still working on the culprit, recent disasters have been a direct influence on a rise in insurance rates.

activists raising a sign for climate change — *Both climate change and insurance are difficult topics to discuss. We need concrete facts to move forward.*

Basically, our weather seems to only get hotter each year, causing more intense storms, and while the rates slowly climb, people can only pay for so much. With insurance needed more than ever, we are left to wonder how it will play out.

Global Warming

Scientists create future climate models to predict the weather. Research like this can help save lives by warning people before storms even form. With these studies, scientists find that greenhouse gases are the most rational culprit for the storms we’ve seen.

With more gas in our atmosphere, scientists predict that the planet’s overall temperature will rise. Everything besides the greenhouse gas evidence is just conjecture. However, future predictions lean towards stronger winds, bigger storms, and increases in droughts. Areas like the continental US are already feeling the effects.

While the temperature is what we have evidence for, storms are the main issue here. Global warming will decrease the temperature difference between the poles and the equator, causing a decrease in storm formation. These findings are from research at both Columbia University and NASA’s Goddard Institute for Space Studies. At first, this seems like good news.

view of hurricane forming from space — *Hotter temperatures mean more intense storms and more intense storms mean more damage.*

However, with the temperature changes come more water vapor. As our atmosphere becomes more humid, the number of powerful storms rises. This means we may see less rainfall, and when it does come, it’ll be more on par with catastrophic weather patterns.

Hotter temperatures will also increase hurricane ranges as the weather creates an easier travel route for the storms. More places inland and higher from the equator are affected by the terrible storms, and they won’t be ready for them like currently affected zones.

One other effect of the temperature rising is coastal flooding. Melting ice caps and glaciers can cause a rise in sea-level, terrorizing a coastal populace. While it is still a theory under inspection, the research is strong enough for insurance companies to start looking into risk management.

Our Insurance Costs

Traub Lieberman Straus & Shrewsberry LLP and Aspen Re recently published a white paper detailing current issues for the insurance industry involving climate change. They’ve found that 2017 was the most expensive year for insurance companies involving catastrophic weather. Loss estimates, they claim, totaled $140 billion that year.

Overall temperature increases for the future, even of just 1℃ could rocket these loss estimates even higher. Their 3.7℃ prediction as the extreme would see totals climbing to $551 trillion.

Rostin Behnam, sitting on the Commodity Futures Trading Commission, plans on forming a panel of experts to address these issues. However, studies for how these issues affect our financial sector have been put on the backburner as our current administration ignores the scientific empirical evidence.

What Can We Do?

Like most overhead issues, we must keep them at hand. For these rising insurance costs, California already feels the damages from its recent terrible wildfires, and Texas with the flooding issues affecting the Houston area. These are only small disasters compared to America at large and even the globe. Really, the only thing at a personal level someone can do for global warming is turning to a vegan diet or recycling.

save our planet sign held by an activist — *Activism is a great way to spread awareness, but make sure you’re educated with the latest information.*

We need to understand how the market affects our policies. As catastrophic storms increase, so do damages to people’s homes as well as medical expenses. Our government handles most widespread insurance policy changes.

So, the only task we can do as citizens is to pay attention to whom we are electing, and make sure that our representatives understand the current insurance crisis. You can call or email your representative so that they know this is an issue for their constituents.

Bottom line: We may have skyrocketing insurance claims and the companies may not have the capital to pay it off. We must keep up to date with current insurance laws and work with the companies to write better legislation.

The Beginner’s Guide to Professional Liability Insurance

If you sell products or provide services, you need professional liability. Your business can only benefit from this coverage.

Here, we’ll take a look at what Professional Liability covers, real-life examples, and costs.

business owner looking at professional liability coverage — *Running a company is difficult, but professional liability will bring peace of mind.*

What is Professional Liability?

This policy is often called “Errors and Omissions,” so if you see either, know they mean the same thing. Businesses need protection from professional mistakes, and this insurance type offers just that.

The worst-case scenario is a negligence lawsuit against your company. But, with this policy, you’ll be covered! A Professional Liability plan will help cover all costs and fees associated with the lawsuit, this includes legal fees and damages you have to pay. For businesses offering things like advice or services, it comes with the territory. An example of this would be a construction worker who is sued because a wall he built fell during a storm and the customer believes it was because of the companies negligence. A lawsuit like this has the ability to shut down a small business, but with professional liability, they would be covered!

This policy brings peace of mind, knowing that should unforeseen circumstances take place, you’ll be safe from the negative effects lawsuits bring to your company.

What is Covered?

While there could be exceptions, these are the typical circumstances covered by professional liability:

Business Mistakes– If your client incurs losses, and your business is at fault, then the financial costs will be covered.
Legal Costs – Should a lawsuit come your way, your company won’t have to pay the court fees or otherwise. This is regardless of the court’s decision.
Negligence– Should you incur a lawsuit due to failing to meet a client’s standards, then you are covered.

You might think these don’t apply to your business, but reading further will give you a better perspective.

Real-World Examples

Example: Let’s say you’ve been contracted to clean office space for a client. Your staff was sent out, but the client calls back, complaining that the work was unsatisfactory. To make matters worse, the client purchased the cleaning before a work event, so they are blaming the loss of the event on your company. Then comes the lawsuit.

Now, this example seems unfair, but even in an unfair case, you’ll still be charged several thousand dollars in legal fees. Do you really want that for your company?

man arguing on a call with headset — *Lawsuits come to even the best prepared. Liability can help recover when this happens.*

Example: You’ve performed surgery on someone but made a small medical mistake resulting in calling the patient back. The results are what you’d expect. While this mistake is human, it could cost you heavily in a negligence lawsuit. These range into over $100,000, especially with medical cases.

Example: Your business has a contract with another for financial advice, and you were confident that your advice would increase their profit margins, but it didn’t.

Now, the other company is suing you to make up for their own profit losses. Think this situation doesn’t apply to you? It can be any type of undelivered service. If you are promising something, simple human error or bad luck can intervene.

What Are the Costs?

Thankfully, professional liability is a less expensive option. However, you do want to keep continuous coverage to reap the benefits mentioned above.

For the average small business, professional liability will cost between $60-$80 a month–around $700 a year. This, of course, can be even less if the business is low-risk. If you run a high-risk business like construction, the costs can rise to nearly $2000 a year.

office table with plants, phone, and notebook for professional liability — *EZ.Insure is designed simply to get you access to the best coverage.*

Purchasing professional liability is easy enough, especially with an agent on your side. They will have the most up to date information about what level of coverage your company really needs to keep you safe–without overspending.

EZ.Insure is here to help. 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.

At EZ.Insure, we know that starting a business can be overwhelming, so we’re putting together an easy series for reference. If you need more information, see our Business Insurance Masterlist and our Group Insurance Guide.

Commercial Insurance Rates are Rising. Here’s Why

No one wants to pay more for insurance, but it is our unfortunate reality. Commercial insurance rates are rising, meaning higher premiums across the board for many businesses. Coverage affected ranges from Business Owner’s Policy to Worker’s Compensation. It is projected that prices will continue to rise throughout the rest of 2019. From underwriting to pricing, these changes come from two major sources: cars and catastrophes.

Cars

Auto insurance aside, cars have become a major factor in the rise of our commercial insurance rates. You may think “why does this matter to me? I don’t even own a car.” It matters because vehicles are our main source of transportation, influencing our economic structure deeply. Everything you have as a business owner is brought to you by some type of vehicle. With more production and vehicles on the road come more opportunities for accidents to occur. This involves more than just passenger cars.

commercial insurance rates for workers operating tractor to clear snow — *More work equals more vehicles–and more vehicles means more insurance for companies.*

With our economic boost, we see an increase in areas like construction. Motorized vehicles operate in these zones, causing more concern for insurance companies. More work means more workers are needed to operate these vehicles. It only leads to an upward climb in insurance rates. There is no easy solution for the car aspect contributing to this climb. We can only wait for legislation to step in.

Catastrophes

We’ve recently experienced a lot of natural disasters. In November 2018, wildfires ravaged California. These were the worst in years, affecting areas as far north as San Francisco, and areas as richly populated as Malibu. The Woolsey Fire destroyed over 1600 structures (including most of Paradise, CA) and caused the death of three individuals.

Besides fires, hurricanes are a force to be reckoned with annually. In 2017, Texas’ southeastern area, including Houston’s almost 6 million people, were decimated by Harvey. This storm solely caused $125 billion worth of damage. Not to mention the opioid epidemic, which is heavily affecting our medical industry with 60,000 people dying from it in 2016. All of these things only scratch the surface of the disasters our country is experiencing.

What Does This Mean?

storm catastrophe and lightning causing commercial insurance rates to rise — *Global warming is changing our weather patterns. What could this mean if we continue having bad storms in the future?*

This is causing rates to climb between 1-5% for insurance deductibles depending on how close you are to at-risk areas. As people scramble to make sure they are covered more for potential disasters, insurance companies raise their rates. At the same time, claim payouts are in the billions of dollars, forcing the capital in insurance companies to deteriorate. It’s simple supply and demand affecting the market.

While it may not provide much comfort, the reality is that an increase in productivity added to the disaster influx is causing inflation for commercial insurance prices. While it’s mostly liability markets affected, everyone feels the results.

EZ.Insure is there to minimize situations like these. 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.

Theft Exclusion: Ways Your Insurance Might Not Cover You

It is a fact that insurance policies have loopholes in them. One loophole is theft exclusion, and it affects most commercial insurance policies, even if the words “theft exclusion” are not presented in black and white.

close up of broken window — *Have you been robbed before? Break-in’s happen, so you’ll want to prepare for the worst.*

These tiny words can spell disaster for you should a theft occur on your property. Not only can they leave you high and dry during an unfortunate time, but you can also feel bad for not reading the fine print. More simple mistakes business owners make can be found here. Not to worry, there are steps you can take to prevent being blindsided by theft exclusion. Before that, let’s talk about what you need to know.

What Theft Exclusion Is

Most exclusion clauses come in mighty fine print. It’s no secret companies make excellent use of wordy contracts. Who reads complete terms and conditions anyway? Forget the owner’s manuals…

However, we must look into theft exclusion. The clause removes an insurance company’s duty to provide financial assistance to you in your time of need, depending on the situation. While in most cases your property insurance (within a Business Owner’s Policy) covers a loss, the rules set down for covering said losses are outlined when you purchase a policy. It is extremely important that business owners read the fine print completely before signing.

This can be a challenging situation for anyone with commercial insurance to understand without seeing it in action. Consider this:

Example:

You own a restaurant. One night, you pass by and notice a broken window. Heart pounding, you discover your beautiful business was robbed. The criminal shattered the entry window, cut the power to your security system, and made off with your cash register.

security cameras for a business — *No matter how much security you have, a good thief can find a way in.*

To make matters worse, the food in your refrigerated coolers was in the “danger zone” for too long and is now unsafe. Not only are you out of money, but you are also unable to continue running your business.

So, you file a reimbursement claim. Most claims support damage incurred during the looting, but excludes the peripheral damage. You might receive compensation for the window and cash register, but you can kiss food reparations goodbye.

What You Can Do

When signing for your policy, speak with the underwriter so that you completely understand the coverage you qualify for. Further, look into what exclusions apply. For example, the situation above was exacerbated by the clause “due to temperature changes, the loss is disclaimed for property damage.”

It might cost you more money during the sign-up period, but it can make a complete difference come bad times. Whether you are looking to purchase a new policy or renew an old one, the wise business owner will take a good look at what their policy covers–and what it excludes.

EZ.Insure saves you from these headaches. 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.

Freelancers – You Need Coverage! Here’s Why.

You might think that working from home means you do not need freelance commercial insurance, but that couldn’t be further from the truth. Even though you work for yourself and might not be in a ‘traditional’ job environment you still need to be covered!

work computer with plants and pictures on desk — *Keeping a good workspace is more than just cleaning. It’s also insuring your materials.*

Are you working with web design or freelance writing? Are you part of Amazon’s crowd work team or a virtual assistant? The choice to do freelance work is usually made with the many benefits in mind like setting your own hours, choosing daily workloads, or even working from a laptop in your pajamas.

While these are sought after, many new freelancers overlook an important benefit: choosing your own insurance coverage. Without a company over your head, you are not restrained to their options for group health or otherwise. The same goes for commercial insurance since you can be considered a business of one. But like any businesses you will have to put in the work to get the proper coverage. This can be daunting but if you have a professional agent on your side it will be much easier. If you want free advice, quotes, and help to sign up EZ.Insure can help you by calling 888-615-4893.

Why Get Freelance Commercial Insurance?

Like any type of business, even a freelancer is subject to bad luck. Working for a company with group health insurance can give you security, so if you land in the hospital, you have some cushion with your medical bills. When you work for yourself, none of that is the case. So, what will you do if misfortune comes your way?

brunette freelancer with coffee mug at computer — *No matter where you are, you can work a bit better knowing you’re covered.*

You can try to justify not getting covered with thoughts like, “But I rarely leave the house?” or “I can take care of myself. This lifestyle proves it.” Do not be misled by these. If you work for yourself, then that means you have to take more care of yourself. As a business of one, your entire career rides on your health and ability to recover in bad times. This is why it is important that you get your own health insurance.

Other than health insurance, you also need a business owner’s policy just like the storefronts, corporate buildings, and bakeries. Just because you work from your laptop doesn’t exclude you from insurance benefitting a business. In fact, this puts you at higher risk for cybertheft, considering your source of income and tools involve the internet.

In essence, freelancers like you deserve proper insurance just as much as an employee at a traditional job. While you don’t work in an office or take lunch breaks, you are subject to the same dangers that befall other workers. You may be in even more danger without the support of a large business behind you.

Which Insurance Types Cover You?

Similar to other businesses, the standard plans will protect you in the same ways. However, unlike most businesses, you will need to file under a small business or sole proprietor. The differences are minor but necessary for the terms of your coverage. Here is the standard set of freelance commercial insurance, and why you need them:

man at a bar working freelance — *Take a moment to think. If you work from home, why not get insurance from home too with EZ.Insure. It’s quick and easy.*

Business Owner’s Policy – As a sole proprietor, business mistakes can be all on you. That makes it worse. Take out a policy to protect yourself in the future. Potential clients will also think better of you when you land on your feet after unfortunate circumstances.
Group Health Insurance – You can apply for Group Health as a sole proprietor, but you must be a legitimate business. Interested in health coverage? If you are interested, you will find a solid start both here and here.
Disability – Whats happens if you break an arm and can’t work? This is a scary time for you, especially when not covered. There are both long-term and short-term options for you.

With any of these plans, also consider adding a Health Savings Account (HSA). These accounts save money and help come tax season. All of these together take the sting out of any bad luck that rolls your way. As a freelancer, you probably already know that your luck can vary from week to week.

Planning for and getting coverage can get frustrating. One other factor freelancers should consider is time. Your time is precious, so why waste it attempting this on your own?

If you are looking for peace of mind, EZ.Insure offers solutions. Your agent will answer any questions you have, compare the plans available to you, and even sign you up when you are ready, free of charge. 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 888-998-2027. EZ.Insure makes the entire process simple, easy, and quick.

Tag: commercial insurance