small business insurance Archives - Page 4 of 4

How Do You Insure Rented Property?

Running a small business often means finding ways to save money. One way that many small business owners do this is by leasing their property rather than buying it. There are multiple reasons to go this route: for example, not only will your initial investment be less when you rent property, but renting your property means that you don’t have to worry about maintenance duties and also that you can retain your mobility if you want to be able to easily change locations. One thing you do need to think about, though, is how renting affects your insurance coverage. You need to be familiar with your commercial policies, so that you aren’t hit with any surprises in the event that there is a loss while you’re occupying your rented premises.

Damage to Property Rented to You

illustration of a red home with black roof and money in front of it by the ground — *If your landlord’s property gets damaged, your landlord can make you pay for the damage.*

One thing that you need to know when renting a commercial property is that most landlords will require you to have a commercial liability insurance policy. Landlords are naturally going to worry about things that are beyond their control, like your business’ day-to-day operations. Your business might involve doing things that might damage your landlord’s property, or you or an employee might have an off day and do something negligent. In addition, having a commercial lease means splitting liability between you and your landlord: your landlord takes on the responsibility for repairs and maintenance, and you have to pay for any damage you cause. If your landlord doesn’t require liability coverage, then they may have to bear the full cost of repairs.

If your landlord’s property does get damaged, your landlord could demand compensation for the damage. Most standard commercial insurance policies will provide some coverage to you, the tenant, when your rented property is damaged during the course of your business operations, but that coverage might be very limited. For example, commercial general liability insurance policies automatically include a type of coverage known as Damage to Property Rented to You. As the name implies, this provides coverage for damages made by the tenant to premises rented from the owner. It offers two coverages:

Coverage for claims or suits that arise from fire damage to rented premises: this part of Damage to Property Rented to You only covers you if your landlord is demanding compensation for damage caused by fire and only if the fire was your fault/caused by your negligence.

Coverage for claims or suits that arise from damage due to any cause other than fire, to premises that have been rented for 7 or fewer days: this part of the coverage covers claims made for damage due to any peril (not just fire), but only for short-term rentals.

The Limitations

While having Damage to Property Rented to You included in your commercial liability insurance will provide some help in the case that your landlord makes a claim against you, it is pretty clear that there are limitations to this coverage. This coverage:

Only applies to the premises, and not to furniture, stock, or equipment – If you rent office space and equipment from your landlord, and you sustain a loss due to fire, the policy may only cover the building damage, and not replacing or repairing the equipment.

Is limited to fire damage, unless it is a short-term rental

Only covers damage for which you are legally liable – For example, let’s say a storm causes power lines to fall on your rented property, and those downed lines spark a fire. If your landlord demands that you pay for the damage, you will not be covered by Damage to Property Rented to You because the fire was caused by an “Act of God” and not by something that you are legally liable for. It is also important to note that liability assumed under a contract with your landlord is not covered.
Is limited to a specific amount outlined in your policy – a common amount for this type of coverage is $100,000.

Your Options

So what can you do to fill in some of the gaps in coverage if you’re renting your property? You have a couple of options for expanding your coverage. You can purchase:

caucasian man and woman sitting with a cauasian man with a suit on — *Consider getting extra rental insurance so you don’t end up losing a lot of money.*

A Tenant Liability Endorsement – this endorsement, or add-on, to your general liability policy is similar to Damage to Property Rented to You, but with some extra coverage: it generally expands the amount of coverage to $1 million, and expands coverage beyond that for just fire. Be aware, though, that you still have to be considered legally liable for the damage in order for it to be covered.
A general property insurance policy – this could be a more comprehensive option, but it will be a lot more expensive and may duplicate some of your coverage under your liability policy, as well as the commercial insurance property that your landlord already has. Check to see what kind of coverage they already have and what you might need to purchase to supplement it – speak with an EZ agent to determine what’s best for you.

Renting a commercial property for your small business could be a good choice for a lot of reasons, but you have to take everything into consideration, including how you’re going to protect yourself and your assets. Whatever choice you decide is right for you, you need to have the right commercial insurance – and EZ can definitely help you with that. Coverage for rented property can be a little bit complicated, but we can answer all of your questions, and find the right policies with the right coverage for your business. We’ll work with you every step of the way – from quotes to purchasing a plan – and we’ll do it all for free! To get started with us, simply enter your zip code in the bar above, or call 888-615-4893 to speak directly with an agent.

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.

Small Business Owners: These Commercial Insurance Discounts Are Yours for the Taking!

Sometimes it feels like big corporations get all the breaks. They have the money and the leverage to get the best deals on everything. But small businesses like yours are what make up the backbone of our economy. In fact, did you know that over 99% of U.S. companies are considered small businesses, and over 88% have fewer than 20 employees? When you look at those numbers, you realize how important you and your fellow entrepreneurs are. So it stands to reason that you should get some perks, too! Think about that when you are shopping for your commercial insurance policies and remember that it’s not just the big guys who can get discounts. All you need is a little insider knowledge on how to lower your premiums!

How Business Insurance Discounts Work

Before we get to the discounts, let’s quickly review the basics of commercial insurance. If you’re a veteran business owner with a specialized business, you may have multiple types of specialized policies. But if you’re just starting out with your business, then the most important types of policies to be shopping for are commercial liability, commercial property, and workers’ comp (if you have employees).

Liability protects your business against any claims of injury or property damage and will cover legal costs; property insurance covers damages to your building and its contents; workers’ comp is required by your state and will pay for any medical bills if an employee is injured on the job. If you’re shopping for liability and property, it’s worthwhile to look into a Business Owner’s Policy (BOP), which could also save you money (more on that later).

It’s actually fairly easy to get other kinds of discounts on your commercial insurance premiums. But that doesn’t mean that insurance companies are always transparent about what kind of discounts they’re going to give you or how they calculate them. They don’t hand out coupons or give you a discount code, instead they take into account multiple factors (such as how safe and well-kept your business is) and then basically do a giant math problem to come up with your premium. If you know what kind of things they’re looking for when checking out your business, then you should be able to find at least several different ways to knock some money off of your premiums.

What Insurance Companies Want

As we have pointed out, insurance companies usually do not advertise or even make clear what discounts they offer, but some ways to save are more clear-cut than others. For example, you may be able to get discounts for:

caucasian hand holding a blue debit card. — *Some carriers will knock a bit of money off of your premiums if you pay annually as opposed to monthly.*

Bundling – If you’re shopping for more than one policy or if you are insuring multiple properties, see if the same insurer will cover it all and throw in an extra discount. As mentioned earlier, be sure to ask them about policies like BOPs.

Being loyal – If you’ve had insurance policies before, ask your insurance carrier if they’ll give you some money off for sticking with them. You can also refer friends and family to your insurer – they might end up rewarding your good deed!

Paying up front – Some carriers will knock a bit of money off of your premiums if you pay annually as opposed to monthly.

Being part of a group – Some business insurers specialize in insuring certain types of businesses, so shop around and see if you can find one that offers special group rates for your type of business.

The last way to get money off of your premiums is definitely less clear-cut, and more about how insurance companies view your business. This type of discount falls under the category of safety. Remember, insurance is all about risk, and if you can show your carrier that you’re minimizing risk every chance you get, then they’re going to charge you less. Here are some examples of ways to show insurance companies you’re serious about taking care of your business and keeping it safe:

Install an alarm system. Burglary is actually the number one business insurance claim, so it’s best to show that you’re being proactive, especially if you’re in a city.

Be fire safe. Fire is another big risk for businesses, so insurers will evaluate how flammable your property and inventory are. You may not be able to do much about that, but taking proper storage and layout precautions, as well as making sure you have working, visible fire extinguishers and a clear fire safety plan mapped out can work wonders.

Be prepared for natural disasters. If your business is an area prone to any type of natural disaster, it is vital that you have ways to reinforce your building, such as metal shutters.

Keep your servers secure. Hacking is always a risk to your business and your customers, so don’t skimp on cyber security measures like a VPN.

Minimize risk of employee injury. Workers’ comp is expensive, but necessary. Try to bring the cost down by showing you have proper safety equipment if necessary, as well as clear cut safety guidelines and evacuation plans. It may be worth your while to consult with the Occupational Safety and Health Administration (OSHA) about writing a safety manual for your business. And remember, even office jobs have risks: workers’ comp covers things like repetitive strain injuries, so consider streamlining your office with ergonomic desks and keyboards.

Minimize risk of customer injury. Even if you’re not offering something risky like skydiving lessons, you still need to make sure your customers are as protected as possible. For example, food service businesses need to show insurers they are strict about cleanliness and staff training. All businesses need to have clear safety signs for wet floors or easily missed steps, and need to do their housekeeping! Which brings us to…
Maintain your property. You may not think that a fresh coat of paint or some nice landscaping have much to do with your insurance, but they go a long way in showing the adjuster who inspects your property that you care about maintenance. And that just may get you a few dollars back in your pocket each month.

The Best Way to Get Your Discounts

So there you go. By evaluating your workplace and taking certain precautions – or just by sprucing things up a bit! – you could be looking at lower insurance premiums. But the best way to make sure you’re maximizing your potential for discounts? Speak with an insurance agent.

With EZ, you will work with one and only agent who will take the time to get to know you and your business, will make suggestions, and will get right to comparing quotes on all the available policies in your area. They know that ins and outs of how insurance discounts work and will make sure you get the best policies at the best price. Now that you are armed with all of this insider knowledge, get to work on getting those discounts – and get started with us by simply entering your zip code in the bar above, by calling 888-615-4893 to speak directly with an agent.

EZ Can Help You Avoid Falling Into These Liability Traps

Owning your own business can be a liability landmine. Just one mistake can mean the end of the business that you’ve invested so much time and money in. The biggest mistake you can make is not having the right commercial insurance coverage. EZ knows you worked hard to start your business, and we want to help you keep it going strong. We can guide you through some of the common mistakes business owners make, and the ways we can keep you protected against them.

laptop with a red warning sign on the middle of the screen. — *A cyber attack can leave you feeling violated, scared, and confused, and it can also ruin your reputation.*

Not Protecting Your Business Online

So much of our business is conducted online these days, and not having cyber liability insurance is one of the biggest mistakes you can make. Not only are there a lot of scammers out there working hard to get your financial information, but anyone with access to your company’s accounts – including employees – can steal information and create data breaches. A cyber attack can leave you feeling violated, scared, and confused, and it can also ruin your reputation. If customers’ data is breached, then you will lose their trust, their business, and any future business.

Malware is one of the biggest threats when it comes to cyber security. In 2018, malware cost companies upwards of $2 million, which was an increase of over 10% from the previous year. To keep your business protected from this threat, EZ.Insure offers cyber liability policies that cover:

Lost or damaged electronic data
Computer operations interruption
Privacy & Notification to customers and other affected parties
Lawsuits (in certain types of policy)

Not Protecting Your Workplace

Another major mistake business owners make is not taking into account all of the things that can go wrong at their place of business. Accidents and natural disasters happen. Customers or employees can get hurt at your business, meaning you could end up being sued. A storm could come along and rip through your building. If you are not insured against all likelihoods, not only could you lose your business, but you could go bankrupt, as well.

We’re a business, too, and we get how scary the thought of losing everything can be. That’s why we’ll compare quotes for you on the most important types of commercial liability insurance, like:

General Liability – protects you against lawsuits claiming bodily injury or property damage. It also provides coverage for personal and advertising injury like libel or slander.
Property Liability – protects everything in your business from risks such as fire or theft. There are commercial insurance packages available that will bundle liability and property coverage.
Workers Comp – covers medical expenses and lost wages for an employee who is injured at work. This type of coverage is required by individual states.

Not Delivering on Your Promises

Finally, don’t make the mistake of assuming every customer is going to be satisfied with you and your business. Sometimes you try to offer the best possible service or advice to your customers, but you just fail to deliver. If you break a contract, give advice that leads to loss, or don’t complete a project, for example, then you could end up facing a lawsuit. To protect yourself and your business from these types of claims, you need to have professional liability insurance.

Whether you are starting up a business, or already have one and are looking into commercial insurance, then EZ’s got you covered. We will compare quotes of all the types of insurance policies that your business needs, and will help you choose the best ones for you. Let us help you protect the business that you worked so hard to build. To get free commercial insurance quotes, enter your zip code in the bar above or to speak to an agent call 888-615-4893.

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 replies@ez.insure or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.

Tag: small business insurance