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How to Understand Your Insurance Contract

Insurance is a huge part of our daily lives, and when you get a new plan you are flooded with forms and contracts. But do you really know what all the forms are and what they mean? One form, the most important form is your insurance contract. This is an important piece to be familiar with because it’s the main document you reference whenever your policy is brought up. It’s the main source of information describing your obligations and your insurance provider’s.

insurance contract with someone signing it — *Make sure you’ve read everything thoroughly. You don’t want any surprise fees down the line.*

It doesn’t take long to understand this document. We’ll get you up to speed in no time at all.

Know Your Terms

Probably the quickest way to lose someone is to speak in insurance lingo. For someone outside the industry, the lingo can get confusing. Here is a general list of broad insurance terms to get you on the same page:

Beneficiary– a person named in a policy that receives the benefits
Policy Owner or Holder– person who holds the plan
Premium– the amount paid to the insurance company to keep the policy valid
Deductible– the amount you pay out-of-pocket every year before the insurance company begins assisting
Carrier– the insurance company providing your policy
Claim– a formal request for benefits by the insured to the carrier

Everyone’s contract will be a little different, depending on the policy type. Your document should have a list of definitions in it describing what they mean.

Declarations Page

The first step anyone will tell you is to locate the declarations page and read that first. Fortunately, it comes before anything else in the insurance contract and has an overview of both the policy and you as the insured. If you’re looking for specifics, on the declarations page, you’ll find:

Who or what is insured
How long the policy will provide coverage
The deductible
The plan’s dollar limits
Your expected payment (premium)
When your payments are due

If you’re looking for answers, the declarations page is the place most likely to have them. General policy and payment details are contained therein and should be formatted to be easily read.

glasses sitting on a book for insurance contracts — *If you’re not sure about something, look it up. You don’t want to misunderstand an important term.*

Insuring Agreement

This is the meat of your contract as it covers everything the carrier will be responsible for. After you’ve familiarized yourself with the terms and oriented yourself with the declarations page, this portion will give you the in-depth look at what benefits you’ll receive from your policy.

There are two distinct types of insuring agreements that you should be aware of:

Open Perils Coverage– Previously known as “All Risk” the name was changed in the industry recently to clarify that it does not actually protect from “all” risks. This plan covers everything except for exclusions named in the contract.
Named Perils Coverage– This policy type is much more specific and details each loss that the carrier will cover, rather than state only exclusions.

You’ll find both policy types outlined considerably in this section as the carrier wishes to keep everything as clear as possible. Coverage definitions are specific for a reason.

Exclusions & Modifications

These are grouped together as the side-dishes if we’re sticking with the food metaphor. Exclusions are detailed examples of what the carrier will not provide coverage for in the policy while modifications (or endorsements) are the alterations made to the original contract. Here are examples of both exclusions and modifications:

Exclusions:

Theft exclusion
Freezing pipes and systems in a vacant property
Settling, wearing of property
Government actions

Modifications:

Additional storm coverage
Home business coverage
Detailed property item coverage (valuables or otherwise)

Conditions

Lastly, you should review the requirements to maintain your coverage. After taking note of everything in your contract, you don’t want to miss out on benefits because you failed to meet the conditions outlined in the document.

man in pink suit looking at insurance contact — *There are professionals in the industry waiting for your calls. Don’t hesitate to ask for help.*

These are actions you as the insured must take to keep your policy valid. For example, one popular condition added to most contracts involving property is to notify the police once the damage is done. If you haven’t filed a police report, or have the report handy for the insurance company, then your carrier can consider you breaching their contract, and will withhold the benefits you need to get your home or business up and running again.

Once you have all these checked off your list, you should have a well-rounded idea of what your policy will cover and how to keep it. Important details from the contract should be noted separately or highlighted on your copy(like premiums and exclusions) so that you can easily reference them later.

As always, EZ.Insure is around to assist with your insurance needs. 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.

QSERHA vs. Group Health, Whats Best For Your Company

Small business owners know the value of covering their employees. After all, everyone gets sick at some point. If you support your team’s wellness, you make a stronger team.

You might also see the value in comparing and then choosing the best option. Two of these are either QSERHA or group health insurance, but which one has the most value for your business? For the answer to that question, we’ll need to break each one down first.

*It is important to sit down and compare all the options available to your business.*

QSERHA

This choice was unavailable until now. The ACA has now widened the usefulness of HRAs. Previously, you couldn’t set up an account unless it was tied to a policy. For more info on this, read about 2020 HRA changes here. Thankfully, this puts a Qualified Small Employer Health Reimbursement Arrangement or QSERHA on the menu.

So, what does it offer for your business?

This option skips the sometimes expensive group health insurance plans. While you’re missing out on the robust coverage insurers provide, the cost-saving benefits might be redistributed amongst your employees.

With this HRA, you must follow the requirements: employees must already have minimum health insurance, and you have to set-up your HRA properly. Afterward, you simply make contributions to the account, and later, the funds will be available to help pay for your employee’s medical expenses, tax-free.

Group Health

It comes down to which is better for your business. To help guide your decisions, see what your answers to these questions are:

Do my employees need healthcare assistance?
Is everyone on staff covered by an HRA already?
Does my budget include funds for a robust insurance option?

After answering these, you should have a better idea of which option to go for. If not, then consider the following:

	QSERHA	Group Health
Cost	You can choose how much you contribute to the account.	Premiums vary by provider but are generally more expensive.
Participation	All employees must be offered coverage, but they do not have to accept.	Generally, around 60% of your staff must be enrolled to qualify.
Coverage	Can’t be in tandem with group health. Employers can choose to reimburse medical expenses or premiums.	Primarily covers medical, dental, and vision
Eligibility	1-49 full-time employees	2-50 employees Note: some states requirements go up to 100

Hopefully, this chart helps guide your decision. No matter which you choose, remember that the health of your employees is important to your continued business. A healthy team is a happy team. However, if your budget allows, consider choosing the group health option. You’ll have an agent to help you with the tough questions plus the bonuses offered are well worth the price tag.

If you are looking to get more coverage for your company, EZ.Insure offers solutions. Your personalized 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.

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.

HSAs: What They Are, and Why You Should Be Using Them.

Do you know about Health Savings Accounts (HSAs)? According to surveys, about half of Americans have no idea what they are, or what to use them for. This situation isn’t good considering how present medical expenses have a crippling effect on the average person. If your employees are hospitalized from a serious injury, the resulting bill can equal the cost of a family sedan. Help them understand what these are, so they’ll opt into your group health plan.

HSAs are a great solution for these high payments, but not if people don’t know how to use them.

What is an HSA?

blue piggy bank for a health savings account — *Saving money is good just in case something happens, but what if you had an account that was ALSO tax-advantaged?*

HSAs were created to help pay for medical expenses that your health insurance plan doesn’t cover. These savings accounts are only compatible with high deductible health plans that are specifically tagged “HSA-eligible.”HSAs are tax-advantaged, giving you more of a reason to use them. On this note, if you make a withdrawal from the account to pay for a qualified expense, then the amount will not be taxed.

If their deductible is $1500, and your medical expense is $4500, then you will be expected to pay the $1500 deductible, and your insurance company will take care of the rest. For some, $1500 is still a lot of money. With an HSA in place, you can cover that as well.

Either you, or your employee, or both, will put money into the account. While HSAs can be opened by yourself, starting one with an employer will help it grow faster with you both making contributions. These are saved up to pay for things like dental work or prescription drugs to make you feel better.

How Do You Start One?

Before starting an account, your employees have to meet the requirements. This is easier if you have a high-deductible health plan (HDHP). With the HDHP, they often are bundled with an HSA, or at least give you the option.

Besides the basic stuff, you won’t qualify if you:

Have other health coverage
Are considered a dependent
Are enrolled in Medicare

How Do You Use It?

Let’s say an employee started their HSA, saved money with it, but now an urgent medical need arises.

We’ll say this urgent need is the medicine to help their recovery. Thankfully, the IRS approves this for HSA spending. Make sure to double-check though. No one wants to pay a 20% surprise tax when you file your taxes later.

stack of coins for HSAs — *If you open up an HSA with your employer, they can help put money in the account too. That’s twice the contributions!*

That being said, they have options with spending your HSA. They can either get a debit card for it from your bank or insurance company, or you can ask for a reimbursement.

No matter which place they go to, they will have experts to help explain everything. After they use these accounts to save money, they can withdraw from it to pay for qualified medical expenses. In the long run, these expenses will cost less because the HSAs are tax-advantaged.

HSAs seem fairly easy, but most people have no idea how to use them. Many insurance providers will not give HSAs the time of day, just throwing them in like a less useful option. As savings accounts go, they are specific to medical expenses, and those are restricted even more by the IRS.

We can only assume that their extreme restrictions and mystery are a cause for people not using HSAs properly, if at all. Don’t miss out on the opportunity to help your employees pay for hefty medical expenses without going bankrupt. Do some research and ask your insurance company or bank about these benefits.

If you are stuck, don’t know where to start, or have issues, don’t worry. 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.

Employer Health VS Individual Plans: Which Should You Use

When you start a new job, you might be offered group health insurance. Employer health insurance is usually cheaper than an individual plan, which is why an attractive benefits plan is such a big deal.

However, the plans they offer could potentially cover less than what you need. In some circumstances, you can (and should) buy health insurance on your own. When making this choice, you have a lot to keep in mind, like what are their differences, and which one is better for you?

Individual Health Insurance Plan

When you look into individual or family health plans, you have the option to compare companies and their plans, then choose which one best fulfills your needs. With private insurance, you have more control over your options. These plans can be bought through the Marketplace, or directly from the insurance company via online, an agent, or broker.

The biggest advantage of an individual plan is its flexibility. This flexibility extends to your career too. You won’t have any formal insurance ties with your employer. That way if you leave or change jobs, you won’t have to worry about losing coverage.

The flexibility also goes with medical networks. You can choose a plan that includes your current doctors and hospitals. After you review your network, make sure you know when to renew or change your plan during the annual Open Enrollment period.

group of papers and folders for employer health — *Healthcare can take a lot of research to find the right plans. Lucky for you, EZ.Insure can do most of that for you!*

Employer Health Plan (Group Plan)

The biggest pro for employer health is how much they take off your hands. A company will do its own research, comparing the best plans in their area for employees. After purchasing a plan, the employer shares the premium cost with you. What this means is that they can get a better deal for group insurance and then help you pay for it.

As mentioned, this coverage will only be available to you when you stay with the company, so the moment you leave or are let go, the coverage ends. Also note that if their plan doesn’t include your usual doctor, you will have to choose between changing networks, or keeping your individual plan.

Other advantages of a group plan are as follows:

The company has done the research and picked the plan options already. Group health plans are guaranteed-issue, which means there is no medical underwriting.
Contributions toward your premium from your employer are not subject to federal taxes, and your contributions can be made pre-tax. This will lower your taxable income.

What It Comes Down To

Deciding whether to seek out your own individual family plan or go with an employer’s can be confusing. Your employer may not offer plan options that suit your needs. There are differences within the price, benefit options, and flexibility, not to mention the overall increase in insurance rates.

Over the years, employer insurance has seen premiums increase by about 3% for individuals and 5% for family plans, while individual health plans have increased by about 4%.

document with glasses for employer health — *Still confused about a policy type? After you gather your info, give us a call and let us help you find the best coverage.*

The average annual premium for an employer-sponsored plan is $1,242 for an individual. Compare that to the individual market, which has an average individual premium of more than $5,000 annually. This can be great (and saves you money), but there is a possibility you can find a plan for cheaper on your own.

Individual plans would be the way to go if you want to shop for the plan that exactly matches your needs. That way, you are in control of the costs and the coverage that you get. You will not have to worry about losing your plan if you lose your job or change jobs.

Group plans would be the way to go if you want to save money and are happy with the plan they offer. Their plans are also guarantee-issue, which is great if you have a pre-existing condition. If you seek an individual plan with a pre-existing condition, you can be denied, or it will be expensive. Some employers do offer incentives that lower premiums, such as quitting smoking or getting a gym membership.

All in all, the choice needs to be yours. What it comes down to in the end is what your needs are and the costs. While your boss could offer a plan that you think is too expensive, your individual plan may be even more costly.

Don’t stress out and overthink if you should opt for your employer’s plan or buy your own. If you want to seek what health insurance options are out there, EZ.Insure has your back. We will provide you with a trained agent within your region who can compare all available plans and their costs. This should make the process easier when it comes down to making a decision to go with your employers plan or not. For free quotes, enter your zip code in the bar above, or contact an advisor by calling 888-350-1890, or emailing [email protected]. Life is stressful enough, let us take some of the load off of you.

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.

Tag: insurance