Tag: Business Insurance

What Types of Insurance Do I Need for My Small Business

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Your small business insurance needs will vary depending on the type of business you operate, the level of risks involved, and whether or not you employ other persons. Small business owners are wise to consult a professional insurance agent for guidance due to the complexities and various state regulations concerning various types of business insurance requirements. Meanwhile, here are the most common types to ponder.

General Liability Insurance offers protection again accidents, claims of negligence, and injuries. Such protection also includes legal safeguards.

Professional Liability Insurance is required of small businesses that provide any type of service to customers, which protects you against malpractice, negligence, or errors that inadvertently occur to your customers.

Product Liability Insurance is necessary if you distribute, manufacture, wholesale, and/or distribute any product. Its intent is to protect you against claims of injury to due product malfunction.

Home-Based Business Insurance is not typically covered by homeowner’s policies unless you have additional riders to your policy. This is a wise investment, particularly if you have heavy equipment investments in your home-based business.

Employer Businesses Insurance Needs & Requirements

Mandated by law, if you hire employees, expect these basic small business insurance requirements in California.

Workers Compensation is a requirement by federal law. You can purchase your own coverage or buy a policy from the Workers’ Compensation Program.

Unemployment Insurance Tax is a consideration if your state mandates it. Register your business with the state workforce agency to be within guidelines, and discuss coverage for unintentional violations with your agent.

Disability Insurance is mandatory in California and five other states. We can help you get your policy set up properly and affordably.

You can rely on the professional services of a top servicer of insurance in Murrieta, CA. Contact Stromsoe Insurance Agency for more information about affordable small business insurance coverage in California.

The Fertilizer Plant Blast in West, Texas, Caused $100 million in Damage but Only had $1 Million in Insurance

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The fertilizer plant blast in Texas is a prime example of what happens when you are uninsured as a business. The explosion that happened on April 17, 2013, left 15 people dead and injured over 200 others. The fertilizer plant had a liability business insurance policy of $1 million. That money will have to be divided amongst all of those who have filed a lawsuit against the company, and it’s nowhere near enough to satisfy the claims.

Lawyers for plaintiffs are most likely going to have to see if there are other related companies that can be sued in order to recover damages for their clients. Lawsuits are most likely going to be filed against the owner of the plant for allowing unsafe conditions to exist. In the meantime, it’s a good bet that the fertilizer plant is out of business for good, leaving a swath of destruction in its wake.

You need insurance when you operate a business, no two ways about it. Having a policy that is adequate to cover your operations protects you and your assets from lawsuits that can put you out of business for good. It may seem like a nuisance and an extra bill now, but it provides you with valuable protection.

If you are interested in learning more about an insurance policy for your business, contact Stromsoe Insurance Agency for information.

Back to Basics: Commercial Renters Insurance

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Whether it’s a store front, warehouse or office space, when your business rents in a commercial property, you will need to obtain commercial renters insurance. This type of insurance will cover property, office equipment, machinery or stock that you have on the premises in the event that it is damaged or stolen. Some policies will also cover accidental damages to the premises.

Special riders can be added to commercial renter’s insurance for flood damage, damages sustained due to other natural disasters and specialty items, such as glass window displays. Business interruption insurance provides for the loss of income during the time a business is forced to be closed due to fires or other natural disasters. This valuable protection is also available as a rider to your basic policy.

Premiums for commercial renters insurance depend upon a number of factors including fire risk, location of the property, items stored on the property and whether you choose replacement cost or current value coverage for inventory, machines and other items.

Stromsoe Insurance Agency can answer any questions you have about commercial renters insurance in the greater Murrieta area. We can also help you find the right policy at the most competitive rates. Contact us today for all your business insurance needs.

Don’t Get Caught without Cyber Liability Insurance

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Although you may have business insurance for your company, you might have overlooked the possibility of cyber attacks that can cost you financially. Cyber liability insurance is designed to protect your small business from the possibility of losing everything to a cyber attack from professional hackers.

Before you assume that you do not actually need cyber liability insurance, consider the number of computers that your company uses. If you run an online business, then most of your data is probably stored on a computer. Now consider the possibility that a hacker has accessed your files. You’ve just lost your customer’s information, your employee’s Social Security Numbers and you might not be able to take new orders.

Protecting your business from financial loss in the event that you become the victim of a hacker is the sole purpose of the insurance. It helps you manage the unexpected situation so that you are not held responsible for the hacker’s actions after the information is stolen.

Keeping your company safe from every threat is the purpose of insurance. If you do not yet have coverage for cyber liability, you should obtain a new insurance plan. To learn more about coverage options, contact Stromsoe Insurance Agency.

Curbing Corporate Identity Theft: A Three-Step Approach

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The Supreme Court ruled in the controversial Citizens United case, that corporations have rights similar to those of an individual. If follows that they have identities and are vulnerable to identity theft.

Although insurance offers one way to manage this risk, it might well be a long time before a company discovers the theft — at which point, it would be too late. To avoid or minimize the danger of having your corporate identity stolen, we’d recommend a three-step approach:

  1. Storing sensitive information. Sensitive files and information (credit card numbers, medical data, Social Security numbers, etc.) might be stored on computers, external drives, filing cabinets, or mobile devices. It’s wise to consolidate and secure this data either physically behind lock and key or by using electronic network security measures. Be sure to train employees on handling, storing, and disposing of this type of information properly.
  2. Your business documentation. Identity thieves might use highly sophisticated or surprisingly elementary and low-tech techniques for delving into a company’s records and misappropriating them. These might include intercepting paper mail, stealing trash, or physically taking documents. To safeguard this information, determine what records you need to run the business, inventory them, and use electronic statements to limit the amount of mail containing company information. Never share financial details or documents through e-mail!
  3. Credit reports. Check your company’s credit reports regularly for unusual charges or bills.

The Federal Trade Commission (http://www.business.ftc.gov/documents/bus69-protecting-personal-information-guide-business) provides a variety of resources you can use to help protect your corporate identity and confidential customer information against identity thieves.

Our Protection Coach’s will be happy to offer their help — just give us a call. 877-994-6787

What is a “Separation of Insureds” Clause?

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Did you know when signing a contract to do business with another entity, you are agreeing to add them as an insured under your Liability insurance? Several months later, an accident may arise from the contracted job, and the other party sues you for damages. Can you file a claim for this suit under the policy that covers both of you? If so, isn’t this like the party suing itself, because the same policy that covers them as an insured is the one under which they’re now attempting to collect damages?

The answer to the first question is “yes, you can file that claim.” A standard Liability policy will cover a suit by one of its insureds against another unless there’s a specific endorsement prohibiting such coverage. Under such a “separation of insureds” clause, all policy provisions apply “separately to each insured against whom a claim is made or suit is brought.” So, from the policy perspective, the key issue is whether an insured is being sued — not who’s bringing the suit. As with any other claim, whether the policy pays for the damages will depend on a determination of liability and applicable coverage limitations and exclusions.

Although the insured party is attempting to collect under a policy that covers them, legally they aren’t suing themselves, but another insured; and the “separation of insureds” clause allows coverage for such situations.

Protection for “insured vs. insured” claims provides a valuable benefit under your liability coverage. However, bear in mind that any damages for such claims will drain your coverage limits. So, be careful about which and how many additional insureds you allow to be covered by — and yet still sue you and collect under — the policy you purchased just to protect yourself!

If you’d like more information, please feel free to get in touch with our Business insurance professionals. We’re here to serve you. 877-994-6787

Property Coverage Fluctuates With Inventory

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Many businesses can pick an amount of inventory coverage at the beginning of the year and know that at any given time, their actual inventory values will be within a few dollars of that amount. This makes the choice easy; just pick an amount that will cover the most you’ll ever have on hand.

However, suppose your inventories vary widely from one month to another, depending on production, pricing, or marketing cycles. For example, a florist who specializes in having a large inventory of live flowers on hand for certain holidays might have very little inventory at other times of the year. Certain retailers might bring in a great deal of stock at the beginning of each sales cycle, and then sell it off gradually (with their merchandise on hand dropping steadily), only to restock and have their values shoot back up at the beginning of the next sales period.

Does your business inventory vary greatly over time? If so,  shouldn’t your Property insurance do the same? Otherwise, if you have a fixed amount of coverage, although your inventory values vary, there will be many times that your coverage will be out of sync with your needs. If your coverage is too low, a loss at a time of high inventory values can be devastating. On the other hand, a high fixed amount might mean that you’re paying for too much insurance during those periods when your inventory values are low.

Is there a way to provide adequate coverage at all times, yet with a cost structure that tracks the actual values you have at risk?

Yes! If your current policy doesn’t offer this valuable option, contact one of our Property insurance professionals today. If you have inventories that fluctuate, let us show you how a “value reporting form” can provide the coverage you need at all times.

Call us today and our Total Protection Team will be happy to help. 877-994-6787

Advertising the Safe Way

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 Congratulations! That new billboard outside your office is the talk of the town. It’s no wonder that advertising is a critical element in the success of most companies. For several  businesses, however, it’s an incidental activity that’s not part of the firm’s primary business.

All advertising involves a risk exposure. In many cases, your Commercial General Liability policy will include Advertisers Liability protection. However, be aware that this coverage is limited.

For coverage to apply, a third party must have suffered a business injury as a result of certain specific actions that occurred during the course of your company’s advertising activities. Among the most common activities are:

  • Oral or written publication of material that slanders or libels another
  • Oral or written publication that violates a person’s right of privacy
  • Misappropriation of advertising ideas or style of doing business
  • Infringement of copyright, title, or slogan

If your company has a potential advertising liability exposure that might fall outside these areas, the chances are that you need specific coverage. In any case, it’s always a good idea to review coverages so that you’re aware of the risks that you might face — whether you decide to insure them or not.

For a review of your business coverages, please feel free to get in touch with us today.

One of our Protection Coaches® can provide advice on the types and amounts of coverage a business owner needs. Here are 4 Easy Ways to Reach Us:
Call 951-600-5751 or 877-994-6787
Fax 951-677-6265
Email – [email protected]
Visit agency.thebutlerweb.com

Protect Your Business From Fire

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A recent report describes the fire-protection systems in many of the nation’s assisted living facilities are dismal. Many are missing basic safeguards such as smoke alarms and sprinklers. As a result, these facilities have suffered an average of one fatal fire per month during the past five years. In an industry this large, and with deep emotional implications, this matter will continue to receive nationwide press coverage.

This media attention should help businesses in all industries understand the importance of adequate fire protection. The cost of updating these systems pales in comparison to the huge emotional, physical, and economic damages that a single fire can cause.

As a business owner, you need to ask yourself these questions:

  • Is your structure capable of withstanding a blaze?
  • Is your staff aware of safety measures to both prevent and combat a fire?
  • What about your surroundings? Are the businesses near or next to you prepared?
  • If the worst were to happen, how long would it take your business to bounce back?

Although it might take intensive effort to protect your building against fire, carrying the proper insurance is one decision you can make immediately. Invest in comprehensive Property and Business Income coverages today!

Contact us for more information on how these policies can help your business bounce back after a fire or other disaster. Our team of knowledgeable business insurance experts for your free insurance quote at 877-994-6787, that’s 877-99-INSURE!

Do You Really Need Full Replacement Insurance On Your Current Building?

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The owners of a new company found a building on the market for an affordable price, so they bought it. Built in the 1940s to manufacture aircraft for the war effort, the metal structure had a large open space. The company occupying this space was in the software development business and the building was much larger than it needed, but the price made it seem like a sensible move. However, the owners got a surprise from their insurance agent about property coverage. Insurance companies base limits of insurance on the cost of replacing a building exactly as it was before the loss. The cost of reconstructing this old building was much higher than both its purchase price and that of other suitable properties. The company did not need that much insurance, and paying the higher premium for it would have been wasteful, so the owners asked the agent for alternatives. What if, they asked, we don’t rebuild our building as it was?

After a fire or some other catastrophe destroys a building, its owners may decide not to rebuild or replace with a similar structure for a number of reasons.

  • As was the case with the software company, the current building’s design may be impractical. The company bought the building because of a good price, not because of its large open space. A software developer ordinarily does not need that much space; if it were to rebuild, it would almost certainly choose a smaller building with a different layout. Also, very old buildings often include materials that builders do not commonly use today, such as plaster and lathe. Reconstruction with these materials is expensive and often unnecessary for the continued operation of the business.
  • The company may decide to consolidate the operations of two locations into one. The second location may have the capacity to absorb the first one’s operations, and management may feel that it will gain efficiencies by consolidating.
  • Depending on the building’s age, it may not meet current building codes. The local government may require any new buildings to meet expensive new codes.

The standard Business Property insurance policy states that the insurance company will pay “actual cash value” — the cost of replacing the property minus an amount for depreciation. However, it offers the option of valuing a loss at replacement cost without deduction for depreciation. A business that chooses this option will need to purchase the amount of insurance equal to the cost of replacing the building “as is.” The company will pay the difference between the actual cash value and the replacement cost only if the property owner actually rebuilds or replaces the property, and then only if he does so as soon as reasonably possible after the loss. The policy also provides a small amount of additional insurance (typically the lesser of 5% of the insurance on the building or $10,000) to cover the increased cost of construction resulting from changes in building codes.

Businesses like the software company, who do not need an exact replacement of their current buildings, should ask their agent about adding a “functional building valuation” endorsement to their policies. It establishes a limit of insurance somewhere between actual cash value and full replacement cost and allows the property owner to replace the building with one that fulfills the same function as the old one at a lesser cost. The discussion with the agent should also include increased “ordinance or law” coverage to provide additional insurance for increased costs from new building codes.

With the right attention to detail, a business can get the property insurance it needs without having to waste money on unnecessary coverage. Call our team of knowledgeable business insurance experts for your free insurance quote at 877-994-6787, that’s 877-99-INSURE!

Here are 4 Easy Ways to reach us:

  1. Call 951-600-5751 or 877-994-6787
  2. Fax 951-677-6265
  3. Email – [email protected]
  4. Visit – agency.thebutlerweb.com 24/7