Patricia Deter moved from Oregon to Hawaii to be closer to her two daughters, but the Kilauea volcano burned down her home only a month after she bought it. Now Deter and her family, along others who have recently lost homes to the lava-spewing mountain, are on an urgent quest for answers about insurance, desperate to learn whether their coverage will offer any help after molten rock wiped out most of what they owned. (Commercial Business Insurance Queens NY)
The eruption has destroyed about two dozen homes in the Leilani Estates subdivision on the Big Island. On Monday, another fissure spewing lava and toxic gas opened up, and a crack in the earth that emerged a day earlier was sending molten rock crawling toward the ocean, officials said. Nearly 20 fissures have opened since the Kilauea volcano started erupting 12 days ago, and officials warn it may soon blow its top with a massive steam eruption that would shoot boulders and ash miles into the sky.
Because the community sits in a zone deemed by the U.S. Geological Survey to have a high risk of lava, few insurance companies will issues policies there.
Lava Oozes Down Hawaii Streets as Volcano Eruption Continues[NATL] Lava Oozes Down Hawaii Streets as Volcano Eruption Continues
Residents of Hawaii’s Big Island were forced to evacuate their homes as lava continued to rampage through some streets.(Published Monday, May 7, 2018)
But homeowners are not without options. One possibility is the Hawaii Property Insurance Association, a nonprofit collection of insurance companies created by state lawmakers in 1991 to provide basic property insurance for people who are unable to buy coverage in the private market.
The horror of seeing houses turned to ash has motivated some people who went without insurance to scramble to purchase a policy. The association announced last week that it would issue policies to uninsured homeowners in the affected area — but they will have to wait six months.
Some homeowners believe fire coverage will suffice for homes burned by fire from the lava. And a list of frequently asked questions from the Hawaii Insurance Division supports that idea, saying that lava damage may be covered “as a fire peril.”However, there are exceptions. Judy Moa, an insurance broker who specializes in catastrophic coverage for Hawaii, said if a policy specifically excludes lava damage, then a policy’s fire coverage would not apply.
“The cause of damage is lava at the end of the day,” she said. “If lava came down the hill, and they have lava exclusion and trees catch fire, which burn the house, that’s not covered.” (Commercial Business Insurance Queens NY)
Some homeowners forgo policies that include lava coverage because they can cost more than $3,000 per year, said Moa, who has fielded many calls from anxious homeowners.
Dramatic Images Show Hawaii’s Kilauea Volcano Erupt[NATL] Dramatic Images Show Hawaii’s Kilauea Volcano EruptU.S. Geological Survey via AP
The same insurance questions haunt people whose homes are standing but could still be torched by future lava flows.
Todd Corrigan and his wife left their Leilani Estates home on May 4 after a magnitude-6.9 earthquake knocked belongings off their shelves. That jolt convinced them it was time to evacuate.
Corrigan said the most stressful part of the experience might be the uncertainty about what insurance will cover. His policy will pay for damage from a fire but not from lava. His insurer also cautioned him that it will not cover damage if he has not been at home for 30 days. That requirement could be a problem if he is gone for a long time.
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“You have to worry about that stress when you’re trying to deal with everything else,” Corrigan said.
Coverage details vary depending on policies and companies, said Insurance Division Commissioner Gordon Ito, who encouraged homeowners to contact their agents and find out what is covered. (Commercial Business Insurance Queens NY)
State Farm stopped writing policies for homes in the two highest-risk lava zones in the 1990s, but the company grandfathered-in any existing policies, said Kim Silva, a State Farm sales executive in Hawaii.The company’s policies do cover fire from volcanic activity, she said, “but every claim has to be handled on its own merit. Every claim has to be looked at individually and separately.”
Deter’s daughters live in the same area as their 88-year-old mother. They know the eruption risks, so they made sure their mother’s home was covered by a policy that included lava. The family’s Hawaii-based insurance agent assured daughter Vickie Pruitt that her mother’s house was fully covered for lava. But a phone call from an adjuster on the U.S. mainland told them it looked like the damage was from an earthquake — not the lava — and that the home would not be covered.
(Commercial Business Insurance Queens NY)
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When we started working and earning money, we often heard from adults about how essential it is to have an insurance cover. Insurance is a great way to secure the future. But with so many types of insurance policies on offer, the thought of acquiring one can be overwhelming. This is particularly true since we don’t really understand the technical terms as well as the coverage they’re offering.
If you’re still in doubt about how much insurance can help your life, then you need to check this out. In this post, we will enumerate five ways in which insurance can save not only you but your family as well.
1. Life insurance takes care of your loved ones family
You probably already know how life insurance can help you in life. It can help you sustain your lifestyle after retirement. This means that when you retire, you’ll still be able to pay your bills, debts (if any), and entertainment. It lets you enjoy life and do all the things you want without draining your pocket.
Basically, that’s the primary use of life insurance. But did you know that there is another great benefit of having life insurance? Besides sustaining your life, life insurance helps you support your family’s life as well. If in the unfortunate event, you die, you won’t be leaving your family without help. They can still continue receiving payouts after you pass on. This will assist them to pay bills, debts, and overcome any financial constraints.
2. Fire and theft insurance protects your property
No matter how much we secure our house and our assets, there are still unexpected situations that may occur in the future. A great example for that is the natural calamities. Calamities are unexpected situations we need to be prepared of. Do you really want a flood, typhoon, or any other calamity to destroy all the things you’ve worked for? Certainly not, right? That’s why it’s important to acquire a property insurance.
Property insurance covers any loss or damaged items granted it is a result of an incident or disaster.
3. Health insurance will Give you peace of mind
The modernity, as well as the emergence of technology, has drastically changed our life both in good and bad ways. In a good way because it has brought more convenience in our life. We live life much easier than before. However, the downside is that we’ve become obsessed with worldly matters. With our hectic schedules, the processed foods we eat and having a sedentary lifestyle, we become “crouched potatoes.”
This unhealthy lifestyle often causes us to acquire illnesses and diseases. Dealing with a sickness not only hurts the body but our pockets too. Hospitalization is too expensive nowadays. To avoid draining your pockets, you need to acquire a health insurance cover. Health insurance can shoulder your hefty medical expenses.
4. Travel insurance helps you deal with the unexpected travel
We all love traveling. Traveling is one most people’s ultimate goals in life. While traveling can be a gratifying activity, sometimes we’re bound to encounter some unexpected cases. It may be the loss of luggage, flight cancellation, pickpocketed, etc. When this happens, and you’re not protected, you might end up with nothing. It may halt your travel and fun.
On the other hand, if you’re protected, your insurance can cover you. You can access your financial resources to solve whatever crisis you’re encountering during your holiday vacation.
5. Automotive insurance makes you a legal driver
Automotive insurance is a must for those people who are planning to buy a car. You don’t have a choice since it’s a necessity. Otherwise, you might find yourself in jail, especially if you’re involved in a car accident. Automotive insurance pays the damages done to your vehicle if an accident happens. This also covers car theft, medical, and liability charges.
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Small business insurance, sometimes called commercial insurance, helps cover a business’ assets, property, and income against certain losses. A business owners policy (BOP) offers three basic types of coverage to help protect a business: business property coverage, general liability coverage, and business interruption coverage.
If you’re a small business owner, you may be able to buy additional coverage’s to customize your policy based on your specific operation and needs. (Commercial Insurance Queens NY)
WHAT DOES SMALL BUSINESS INSURANCE COVER?
A business owners policy helps protect your business against financial loss and covered perils. Covered perils typically include theft, fire, wind, falling objects, and lightning. It’s important to read your small business policy carefully to understand which specific perils are covered by your insurer.
GENERAL LIABILITY COVERAGE
A business owners policy typically includes general liability coverage. If someone is injured at your business as a result of your negligence, general liability coverage may help pay for their medical expenses. It may also help pay for legal costs if you’re taken to court over an accident that occurred at your business.
Commercial general liability insurance is subject to a coverage limit. If an injured person’s medical expenses exceed your coverage limit, for example, you may have to pay out of pocket to cover the rest. (Commercial Insurance Queens NY)
BUSINESS PROPERTY COVERAGE
The property insurance in a business owners policy helps protect your business’ building (if you own it) and its contents against covered perils. For example, if your building is damaged by fire, your property coverage may help pay for repairs. Or, if your business’ furniture is stolen, your property coverage may help pay to replace it.
Keep in mind that this coverage has a deductible and limits. The deductible is the amount you pay out of pocket for a covered claim. You may be able to select your deductible amount when you buy property coverage. The limit is the maximum amount your insurer will reimburse you for a covered claim. You can choose your property coverage limits based on the estimated cost to rebuild, repair or replace your business’ property. If your losses exceed the coverage limit you’ve chosen, you will have to pay out of pocket to finish repairs of your building or replacement of your business property. (Business Insurance Queens NY)
BUSINESS INTERRUPTION COVERAGE
Business interruption coverage, sometimes called business income coverage, is typically part of a business owners policy. This coverage helps replace lost income and increased expenditures if your business is affected by a covered peril.
For example, if a fire makes your office uninhabitable, business interruption coverage may help pay for you to rent a new workspace during repairs. This coverage is subject to limits. The limit may include a dollar amount as well as a time period. Ask your agent about the types of limits on business interruption coverage. (Commercial Insurance Queens NY)
You may be able to add additional coverages onto your business owners policy. Available coverages may include:
Business auto insurance
Data compromise coverage
Employment practices liability coverage
Equipment breakdown coverage
Outdoor property coverage
Product liability and/or professional liability coverage
Talk to your agent about your specific business insurance needs, and he or she can help you choose the coverage to customize your policy. (Commercial Insurance Queens NY)
HOW MUCH DOES SMALL BUSINESS INSURANCE COST?
The cost of a small business insurance policy depends on many factors. These factors may include the type of business you’re insuring, the types of optional coverage you add to your policy and the deductibles and limits you select for each coverage. Get a small business insurance quote or talk to an agent to get an idea of what you might pay for a policy.
(Commercial Insurance Queens NY)
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Insurance is tricky. It’s not like buying a chair or a shirt or groceries. When you buy insurance, you’re buying a promise. It’s a promise that if something catastrophic happens to your business, your carrier is going to assist you to make your business whole again. Sometimes, though, it’s tempting to question the value of insurance because it is an intangible product.
Let’s back up and take a big-picture view of why insurance matters. Here are seven reasons why insurance is important. What more would you add? (Commercial Insurance Queens NY)
1.) Insurance Keeps Commerce Moving
In the days after the 9/11 attacks, there were many worries about insurance coverage. Acts of war are not covered by insurance. Was terrorism an act of war? The big question was, How would the 9/11 attacks be classified? Fortunately, the insurance industry decided the attacks were not an act of war.
However, after 9/11, some insurers began excluding terrorism. But the federal government stepped in and required coverage in the name of keeping commerce moving. In this case, insurance likely prevented many businesses from avoiding terrorist-targeted operations, such as refineries and chemical haulers.
2.) Lenders Require Insurance
This reason is tied to No. 1. Lenders require that you have insurance. Think about it: Mortgage lenders want proof of insurance before you buy or build a new building. In short, to get the money your business needs to keep going, it’s likely you enjoy the benefits of insurance. Without insurance, your winning business model can’t get the funding it needs to take its first step, or your established business model can’t get the funding to evolve and better compete.
3.) Insurance is Compulsory in Some States
Insurance is important because sometimes it’s the law! A great example of this is auto insurance. Auto insurance is compulsory in Wisconsin (home of HNI HQ). Auto insurance helps mitigate the risk of life on the road (of which there are many!). Workers’ compensation is a form of compulsory insurance that’s required in most states. (Commercial Insurance Queens NY)
4.) Insurance Grants Peace of Mind
Insurance, an intangible, provides another intangible: peace of mind. Business owners can take on certain business ventures because they can shift the risk — thanks to insurance. This reason is the counterpart to No. 2 — lenders require insurance. Insurance is the required (by lenders) safety net that lets entrepreneurs explore the opportunity. (Commercial Insurance Queens NY)
5.) Insurance Ensures Family and Business Stability
Insurance is a safety net for when risks go wrong. Life insurance can support the life of a family, should a member be lost. It’s similar for a business. Should a key member or piece of equipment go out of commission, the business can carry on, thanks to insurance. This reason why insurance is important dovetails nicely with peace of mind (No. 4). It all goes back to the idea that insurance, when activated, makes policyholders whole again.
6.) Insurance Protects the Small Guys
When you look at your industry, you see the “big guys” and the “small guys.” If a risk goes wrong, the big guys will be able to survive. They can take a hit. But the little guys can’t take a hit. As a result, they are more risk-averse, and in some cases, they sell out to the big guys. If enough little guys leave the industry (and one big guy swallows them up), you’re left with a monopoly. With insurance, however, the little guys have support if they want to take a risk, which means they stick around longer. What it comes down to is that insurance helps prevent monopolies from forming.
7.) Insurance is the Right Thing to Do
A sobering example of insurance in action is the West Fertilizer Co. explosion in Texas this spring. The explosion did $100 million in damage to the community, including schools and hospitals. The fertilizer company had only $1 million in general liability coverage. (Commercial Insurance Queens NY)
Now the city is suing West Fertilizer and likely will win all of the company’s remaining property and assets that were not damaged by the disaster. This is because the fertilizer company did not have enough insurance. What’s more is the city also is suing the suppliers to the fertilizer plant, claiming they knew they were supplying inherently dangerous materials. In the case of the West, Texas, plant explosion, insurance could have helped a community to recover after a crisis.
Insurance is something many business owners don’t want to think about. But whether they think about insurance, with hope it’s there, allowing for transfer of risk and providing a safety net for new opportunities.
(Commercial Insurance Queens NY)
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As you’re tackling dust bunnies and cluttered closets in your spring cleaning, don’t forget your insurance policies. They may need to be dusted off and refreshed, too.
Reviewing and adjusting your insurance coverage is an important part of overall financial planning. Here’s what to look at in each policy. (Commercial Business Insurance Queens NY)
Do you examine your auto insurance policy at each renewal time? If not, now’s the time to dig out your last declarations page and review your coverage. The declarations page is the summary of your coverage and deductibles.
Check your liability limits. Are they high enough to adequately cover you in case you cause an accident? If you’ve simply renewed the same policy for many years, you might be underinsured. NerdWallet’s insurance estimator tool can help you shop around.
Check for collision and comprehensive coverage limits. These cover damage to your own vehicle. If you have collision and comprehensive, are the limits adequate? If you didn’t buy them, should you add them? Conversely, if you’re carrying collision and comp on an older car, is it worth it? In the worst case, if your vehicle were totaled, these coverages would pay out only for the value of the vehicle. Consider the premiums you pay compared with the actual cash value of your vehicle, which you can check at sites like NADAguides.com. (Commercial Business Insurance Queens NY)
Check your deductibles on collision and comp, if you have those coverages. If your deductible is low — like $500 — this could be a savings opportunity. Switching to a higher amount, such as $1,500, will reduce your premiums.
Make sure all your vehicles have current insurance cards in them. You’ll want to have the current card handy in case there’s an accident.
Your house might be your biggest asset, so examining your current home insurance coverage is important. Just as with auto insurance, your coverage summary will be found on your declarations page. Here’s what to look for:
Is your insurer automatically updating your dwelling coverage every year to reflect local construction costs? United Policyholders has tips on double-checking your homeowners coverage.
Check your deductibles. Are they what you expect? In many areas of the country, home insurers have been switching customers from flat dollar-amount deductibles to percentage-based deductibles. Your agent isn’t going to call you about this — the change will be shown on your declarations page.(Commercial Business Insurance Queens NY)
Consider your valuables. If you’ve acquired expensive jewelry, for example, it may not be fully covered under a standard homeowners policy. You may need riders for items like jewelry, artwork and computers. Check the details of your policy, or ask your agent to explain coverage limits.
Do you have a list of every single item in your house right now? Many people don’t, yet having a complete home inventory is crucial to maximizing a claim if your house suffers serious damage.
You may think you can reconstruct a list of your belongings if need be, but Mary Bonelli, a spokeswoman for the Ohio Insurance Institute, says, “Here’s an exercise that will convince you of the need to have one. Walk into your kitchen or bedroom and look around. Now close your eyes and try to remember each and every item in that room. I seriously doubt anyone has that level of recall. Now imagine remembering everything in every room.”
The Ohio Insurance Institute has helpful tips on making an inventory. In addition, the Insurance information Institute has free online inventory software.
Bonelli also points out that renters need a home inventory just as much as homeowners. (Commercial Business Insurance Queens NY)
If you’ve bought a house, do you have enough life insurance to cover the amount and duration of the mortgage?
If you’ve gotten married or divorced, do you need to change your beneficiaries?
If you’ve had children, is your coverage amount still adequate, considering living expenses and potential college tuition?
Insurance policies protect against financial disaster, whether it’s from a car crash, house fire or death in the family. Having them up to date is even more important than having a clean basement.
(Commercial Business Insurance Queens NY)
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Home is a name, a word, it is a strong one; stronger than magician ever spoke, or spirit ever answered to, in the strongest conjuration.” These lines belong to Charles Dickens, but are apt for all of us. Those who have suffered in the earthquake in Nepal and parts of India stand testimony to how easily houses can get destroyed and how difficult it is to rebuild. Memories of landslides in Uttarakhand and floods in Jammu and Kashmir are still fresh. While there is little we can do against natural disasters, we can reduce some of the consequent hardships by having home insurance, which protects against any damage to the house and valuables in it.(Commercial Business Insurance Queens NY)
A basic home insurance policy covers fire and allied perils, including lightning, storm and flood. You may have to pay extra to cover earthquake so check before buying. A comprehensive householder’s package policy also ensures the contents of a house against burglary, damage, and mechanical or electrical breakdown. (Commercial Business Insurance Queens NY)
Despite its importance, home insurance is not a popular choice. Sanjay Datta, chief underwriting and claims, ICICI Lombard General Insurance Co. Ltd, said, “Home insurance is poorly sold in India; it counts for less than 1% of industry premium in terms of sales. People are either not aware of home insurance or are reluctant to buy it. They don’t see the risk to their property—be it fire or an act of terrorism. The unfortunate part is that even the insurance industry is not pushing the product.”
Chosen with care, a home insurance policy can provide comprehensive coverage. It typically has two parts—one covers the structure of the house, and the other covers the contents such as valuables, furniture and electronic appliances. “One can opt for both structural and content cover, or for either one. There are also different riders that can be added,” said Chetan Joshi, group director, Mondial MMX Financial Consultants Pvt. Ltd, a Mumbai-based investment advisory firm.
Cover for structure
Structural cover for a house comes in three ways. First is based on the reinstatement value where the insurer gives the construction cost of the house excluding the value of the land. Second is based on the agreed value of the property and includes the value of the land and the construction cost. The third is based on the indemnity value, which takes into consideration the cost of construction and the depreciated value according to the age of the building.
It is important to understand the inclusions and the exclusions. “A lot of mis-selling takes place in home insurance policies. People are fooled into believing that they will get a cover of a crore or two if they buy an expensive policy. Often, the structure cover formula, which is based on the area of the house and the approximate construction cost in the city, is not explained properly,” said Rohit Shah, founder and chief executive officer, Getting You Rich, a financial advisory firm. (Commercial Business Insurance Queens NY)
Let’s take an example. Suppose an individual wants to ensure her 10-year old house with an area of 1,000 sq. ft. The cost of the house, based on parameters such as locality, is Rs.5,000 per sq. ft or Rs.50 lakh. Its cost of construction is Rs.2,000 per sq. ft or Rs.20 lakh. If the home insurance policy is bought on reinstatement basis, the sum insured will be the area of the house multiplied by the construction cost per sq. ft (1,000 x 2,000)—Rs.20 lakh. If home insurance is bought for the same house on agreed value basis, the sum insured will be the area of the house multiplied by the cost per sq. ft (1,000 x 5,000)—Rs.50 lakh. On the basis of market value or indemnity, the sum insured will be the total cost of construction minus depreciation (Rs.20 lakh minus Rs.5 lakh considering depreciation of 25%), which makes it Rs.15 lakh.
While the market value or the reinstatement value are common ways to decide cover, the agreed value formula is not frequently used. Bajaj Allianz General Insurance Co. Ltd is one insurer that gives home insurance on agreed value basis. “The sum insured in this is the area of the house multiplied by ready reckoner cost. This cost is declared by local authorities and the insured can also engage a government approved valuer to value the house. The cost would depend on several factors such as the locality, city, and quality of construction,” said Sasikumar Adidamu, chief technical officer, Bajaj Allianz.
Cover for content
While the structure of a house is the most expensive to rebuild, the value of the contents of a house, too, can add up to a large amount. There are two basic ways to ensure contents: buying a cover that factors in depreciation and buying on a reinstatement or new for old basis.
One has to remember that in content cover, the valuation of all insured items should be disclosed to the insurer, through bills and invoices. “People often make a mistake in understanding the overall content cover. One can get cover even for gadgets. Of course, the insured will have to pay a premium for that particular gadget separately,” said K.K. Mishra, managing director and chief executive officer, Tata AIG General Insurance Co. Ltd. (Commercial Business Insurance Queens NY)
Under the reinstatement cover for contents that is offered by Bajaj Allianz, for example, you get the same amount of money for the insured items as if they were new, without any allowance for wear and tear or depreciation. But there are conditions attached, such as the minimum amount of cover being Rs.5 lakh or not lesser than 10% of the coverage for the house, and others.
One can further strengthen home coverage by taking additional covers. Burglary or theft of jewelry and ornaments is one such, but the value of jewelry differs across insurers. Rent cover is another option. This can be used if one needs to stay at a temporary location, but the amount of coverage and the time period are specified. “A rent cover is helpful as it takes care of your rent on an alternate accommodation in case your home is under repair,” said Kapil Mehta, executive director, SecureNow Insurance Broker Pvt. Ltd. Insurance against terrorism for a house and its contents is also a possible addition. “There are no discounts on additional covers. An add-on cover can increase your sum insured each year. There is also a provision that accommodates items you forgot to mention in the proposal form,” added Mehta. (Commercial Business Insurance Queens NY)
Details to note
Take care of a few things while buying home insurance so that the policy can be effective.
Time period: Home insurance can be bought for a minimum of one year to a maximum of five years. Do remember to renew.
Suitability: A bank may encourage you to buy its home insurance product along with the home loan. Choose only a policy that suits your needs.
Apartments: While an individual apartment may be covered, this won’t help if the rest of the building is not. “In the event of a loss, if the property is insured on an agreed value basis, the insured gets back the agreed value and the ownership of your house is transferred to the insurer. This helps because if your house is in a multistorey building you will need to wait for others to reconstruct their house first. But if you are insured, you simply take the agreed value and you can buy a house elsewhere,” said Adidamu. (Commercial Business Insurance Queens NY))
Fine print: Home insurance policies are worded differently. For example, structure insurance may only be for building and not land, or only jewelry kept in the locker may be covered.
Tenants: If you are living in a rented house, you can ensure only the contents and not the structure as you don’t own it.
These are only some of the specifications. As with any kind of insurance policy, with a home insurance policy, too, the best results come through when the initial details are taken care of.
(Commercial Business Insurance Queens NY)
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Running a business comes with inherent risks: An employee could get injured on the job; a natural disaster could destroy property; or a client could file suit, alleging a contractual breach.For those and other reasons, it is important to protect your assets, both business and personal. One of the best ways to do that is to make sure you and your business are adequately insured.Here are ten top reasons why your business needs insurance. (Business Insurance Queens NY)
1. It’s the Law
According to the SBA, the law requires businesses with employees to provide particular types of insurance: workers’ compensation, unemployment and disability, depending on the state where the business is located.
Failure to carry legally required coverage could result in fines, civil or criminal penalties, exclusion from public contracts and “cease and desist” orders — all of which could cost you far more than the price of an insurance policy.
2. You Could Get Sued
We live in a litigious society. In the event of a lawsuit or liability claim, without insurance, your business could fold. One accident. One broken contract. One disgruntled employee, and it’s over. Even if you win the suit, you could go out of business due to the cost of legal defense.
Rather than worry about what could happen, liability insurance can give you peace of mind, enabling you to concentrate on what truly matters — running a successful business. (Business Insurance Queens NY)
3. Keeps Your Business Up and Running
What happens to your business in the event of a natural disaster, such as an earthquake or flood? P&C insurance covers loss of property — buildings, equipment, etc. — but what about the money you lose during the time your business is closed? That’s where Business Owners Insurance (otherwise known as BOP) plays a critical role. It can help a business survive a serious disaster by protecting against loss of income.
The way it works is that the insurer pays you the income your company would have made while it was out of action (assuming it’s due to a covered loss). BOP also compensates for normal operation expenses (e.g., rent and utilities) that you would have otherwise incurred during that time. Some companies not only choose to insure lost income but include protection to pay employees, for up to 12 months.
4. Makes You Look Credible
Here’s a reason you may not have thought of: Having insurance makes your business look credible. Business insurance shows your prospective clients and customers that you’re a safe bet. If anything goes wrong with the work you do for them, you have a way to compensate. That’s the reason home services companies carry the statement “licensed, bonded and insured” on their trucks and signage. It builds trust, the currency of a modern-day economy. (Business Insurance Queens NY)
5. Protects Your Employees
Your most valuable asset is not the products or services you offer, the equipment you take so much care to maintain or even the brand you struggled for years to build. No, your most valuable asset is your employees, and it pays to protect them in the event of an accident. The law requires that you carry workers’ comp, but you should also consider offering disability coverage, even if you have to charge your employees for a portion of the cost.
By the way, protecting your employees’ interests is also a good way to protect yours — against lawsuits or liability claims.
6. Covers Acts of God
In insurance language, an “Act of God” is any accident or event not caused by human hands. Floods, tornados, hurricanes and fires caused by lightning all qualify. Two types of property and casualty insurance protect against such loss: all-risk and peril-specific.
All-risk policies cover events except for those expressly mentioned. Peril-specific policies list particular risks and cover fire, floods and other specified acts of God.
7. Guards Human Assets
As the proprietor, you’re entrusted with keeping the business running. In any case, what happens on the off chance that you quit “running” as a result of a heart assault, genuine mischance or some other grievous condition that removes you from the photo for a considerable length of time, months or even years?
Organization claimed life and incapacity protection scope give installments to cover the loss of pay you create. In case of your demise or incapacity, it gives assets to the buy of your enthusiasm under a purchase offer understanding.
You can likewise purchase such strategies — alluded to as “key man” or “key individual” protection — to cover the handicap or demise of an esteemed representative.
8. It Helps to Attract and Retain Employees
Having protection isn’t just about securing your business in “fate and unhappiness” situations. It can have the positive advantage of pulling in and holding qualified representatives. Second to compensation, work searchers search for benefits bundles that incorporate life, well-being, inability and long haul mind protection. In the event that you don’t offer these advantages, you may lose a decent worker to an organization that does. (Business Insurance Queens NY)
9. Many Contracts May Require It
When it comes to contracts and insurance, several variables come into play:
If you rent or lease your business facility, you may need to carry insurance, as the landlord’s policy may not cover it.
If you borrow money to finance buildings, equipment or operations, the loan agreement will likely contain an insurance requirement.
Client contracts may specify that you carry insurance in the event things don’t go as planned.
Add language about freelancers who need it and don’t realize it till they get a job and then lose the job because of not having insurance.
10. Because You Cannot Predict the Future
No business owner has a crystal ball hidden in a closet that can predict what might happen in the future. It would be excellent if natural disasters, injuries on the job or lawsuits never occurred, but no one can guarantee that such things won’t occur. For that reason alone, it’s best to be insured.
With the proper business insurance, small business owners can achieve peace of mind and focus their attention on what they do best — operating a productive, profitable and personally rewarding business for years to come.
(Business Insurance Queens NY)
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