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Health Insurance Costs May Rise With ObamaCare Rebates

Posted by David Ross on Tue, Oct 23, 2012

Is Affordable Care Affordable, or an Incentive to Raise Health Insurance Premiums?

Health care prices under Affordable Care Act. Insights for Berks County, Reading, PA, Philadelphia, Lancaster, York, Harrisburg, Lebanon, Erie, Pittsburgh, Allentown, Lehigh Valley, and beyond.A section of The Affordable Care Act requires health insurance providers to spend at least 80 percent of dollars they receive from premiums on patient care, or be forced to send a rebate to patients. This may seem like a good deal for patients, but health economists say the provision can only lead to more expensive insurance.

Economists reason that the provision merely provides an incentive to raise premiums, instead of encouraging companies to control costs. While patients may be thrilled to receive a rebate in the mail, this rebate will be a small consolation for the inflated premiums patients will have to pay as insurers let spending balloon.

Health Insurance Rebates Lead to Higher Premiums

According to Peter Suderman's Hit and Run blogpost "ObamaCare's Health Insurance Rebates May Make Insurance More Expensive," insurers rebated slightly over $1 billion this year, at an average of $151 per customer, in letters that clearly stated the rebates were coming as a result of reforms made under the Obama administration. This politically sound move lets patients know exactly where their rebates are coming from. What it doesn't tell them is that the rebates might cause premiums to rise.

"It's easier to cover someone's health costs on 80 percent of $1,000 than it is on 80 percent of $100," Suderman writes, "and because insurer profits and other administrative costs must come from the remaining 20 percent, there's a larger pool from which to draw profits and business expenses." In other words, insurers will be motivated to raise their premiums in an attempt to cover expenses.

Economists Doubtful of Benefits

NPR's Planet Money reported on the likely outcomes of the insurance rebates provision. Reporter David Kestenbaum interviewed six health economists. "No one thought the provision would do much good," he said, "and several thought it could be harmful." Among the economists interviewed by Kestenbaum was Jonathan Gruber, an ObamaCare architect and supporter.

Skewed Coverage? NPR Story Differs from ABC, CBS, USA Today

The press has widely lauded the health insurance rebates. ABC News reported that the law is "aimed at holding health insurance companies accountable for how they spend the money collected through premiums." CBS and USA Today ran similar stories, equally positive about the program that would force insurance companies to spend more on patient care or send out rebates. None of the articles mentioned that premiums would likely rise as a result of the provision. NPR's Planet Money was the first news platform to explore the potential pitfalls of the rebate program, and stumbled on a major flaw: more money spent on patient care will logically result in higher premiums.

Need help in acquiring a sensible health insurance plan for yourself, your family, or your employees? Click below to learn more about your health insurance policy options.

Contact us for a free health insurance quote - individual, family, or business. Serving Reading, PA, Berks County, Philadelphia, Harrisburg, York, Allentown, Lehigh Valley, Lancaster, Lebanon, Bethlehem, Pittsburgh, Erie, Pennsylvania and beyond.

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How Can I Get Commercial Vehicle Insurance?

Posted by David Ross on Wed, Oct 17, 2012

Searching for Commercial Vehicle Insurance?

Commercial Vehicle Insurance Tips. How to Buy Commercial Vehicle Insurance. Serving Reading, PA, Berks County, Kutztown, Bethlehem, Allentown, Philadelphia, York, Lebanon, Hershey, Harrisburg, Lancaster, Erie, Pittsburgh, Pennsylvania and beyond with high quality, affordable commercial vehicle insurance.When looking into insuring a company car, van, or pickup, you will find commercial vehicle insurance and regular auto insurance are entirely different animals. But although the products available differ greatly, the basic principles apply when it comes to finding the best policy for a particular small business – be it auto insurance for a private, or commercial vehicle.

A commercial vehicle insurance policy normally is required when a van or pickup truck is used in a trade or occupation to earn an income.  Be careful: most personal auto policies exclude business use for these types of vehicles!  A private passenger auto can be insured on either a personal auto policy or a commercial auto policy.  The difference is commerical policies usually are higher priced due to the business usage. Most insurance companies do not allow personal insurance on a vehicle that is used by employees.

As long as this is understood, finding a product that works best for an individual company’s needs should be fairly simple. In the same way that the Internet holds many of the answers when it comes to finding affordable private vehicle insurance, the same can be true when looking for the most fitting commercial vehicle insurance. It’s a great starting place, and many businesses can learn the basics with a simple search and compare website. 

Research Online

Many auto insurance providers also offer commercial vehicle insurance, but going there in person could take much longer than doing some basic research online.  This is because commercial vehicle insurance quotes can take much longer to prepare than quotes for regular car insurance. Therefore, consider searching online first to become educated about business vehicle insurance policies and companies, but understand that receiving expert advice is very important before making a purchasing decision.

Seek Advice Before Buying Insurance for Your Commercial Vehicle

For people who are new or inexperienced in buying commercial vehicle insurance, it is especially wise to seek advice from others who have gone through the same process. This will help to give an idea about how the application process works, which product is best, and also things to look out for or hidden traps NOT to fall into.

The claim process, for example, should be quick and easy – so choosing the right policy shouldn’t just come down to price. If an insurance company is slow and cumbersome, this boils down to money lost from any potential business.

An insurance expert can also give advice for those who are unsure of which company to pick for their commercial vehicle insurance, and will be able to help compare various quotes to find the best and most suited for an individual business. However, make sure the insurance agent is not tied to a single company who will pressure them to recommend their policies over others.

Check Out All the Insurance Options

Depending on the company and the number and types of vehicles a business owner wants to insure, there may be more options or deals available, so look out for that. Companies are also known to offer discounts for particular business models or vehicle usage, so be sure to get multiple quotes covering multiple insurance brands before making that important final decision. 

Make Insurance Competition Work for You

A knowledgable insurance agent offering a variety of competing insurance companies is well positioned to recommend the right coverage for your commercial vehicle at the best price. That's why American Insuring Group offers policies from several competing carriers. We're well-positioned to find you the right policy at the right price. 

Contact Us today for a free, no-hassle consultation.

Business insurance quote for inventory and other commercial insurance needs. Serving Berks County, Reading, PA, Harrisburg, Erie, State College, Pittsburgh, Allentown, Bethlehem, Kutztown, Philadelphia, Lancaster, Lebanon, York, Pennsylvania and beyond

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Commercial Property Insurance - Is Your Inventory Covered?

Posted by David Ross on Sun, Oct 14, 2012

Your Stock is the Life-Blood of Your Business


Commercial insurance coverage for inventory. Serving Reading, PA, Berks County, Harrisburg, Pittsburgh, Lebanon, Lancaster, Philadelphia, Bethlehem, Allentown, State College, Erie, PA and beyond with affordable, high quality business insurance.Many businesses are dependent on their stock; without inventory, there can be no sales, and without sales, there is no income, so insuring one's inventory can be critically important. Depending on the type of business, a wide array of products and quality stock could be at risk from unforeseen disasters such as fires or flooding. So, it makes good sense to take out a commercial property insurance policy covering the entire range of your inventory. 


Keeping Up-to-date: Time to Reassess?

And that is precisely what many businesses do; however, not all of them properly reassess their needs when renewing these policies. Has your stock changed in any way? Is there more of it? Less? New products? Has the business grown since the policy was initialized? It’s wise to keep track of what an individual property insurance policy actually covers, and keep it up-to-date as your business grows and changes.

For example, a business originally set up to repair electrical items may have more recently found an ideal niche for selling electrical items to customers. The original policy that was set up would have been sufficient at the time, and was suitable to cover the spare parts the business needed to make repairs, but now it has a much larger inventory of products which it is also selling, which may not be covered under the original policy.

In much the same way, a business could change the way it conducts its services. The original commercial property insurance policy could have been set up just to cover a shop and its products within. But since that time, the business could have started doing home deliveries, in which case the products in-transit en-route to the customer are not covered by the out-of-date policy.


Be Vigilant With Your Inventory Insurance

The lesson here is to always check the small print. Businesses should regularly be aware of any changes they make to their business and be aware if it affects their policy in any way. This also includes things like seasonal changes – businesses may stockpile before Christmas or Easter. Insurance policies should cover these stock rises at specific times of the year. 

Contact the Insurer - Get the Right Insurance for Your Commercial Property

If a business decides it does not have sufficient coverage, or there is a liability gap somewhere in the policy, they should first contact their insurer. It’s very possible the insurer could adjust the policy with little or no hassle, without any complicated papers to fill in.

If, however, the insurance company is unable to cover any changes to a business, the best course of action would be to search for a new commercial property insurance policy covering all the new needs of the business in question. It’s very important to make sure these types of property insurance policies are sufficient for the specific needs or your business. 

Need Help With Your Commercial Property Insurance?

Please call or email us any time for help. We'll guide you through the options and help you find the perfect business insurance coverage to meet your needs.

Get a free business insurance quote. Serving Reading, PA, Berks County, Lancaster, Philadelphia, Pittsburgh, Erie, Harrisburg, Allentown, Bethlehem, Hershey, Lebanon, York, State College, and beyond.

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What is Commercial Property Insurance, What Does it Cover?

Posted by David Ross on Tue, Oct 09, 2012

What is Commercial Property Insurance?

Commercial property insurance defined and explained by American Insuring Group. Serving Reading, PA, Berks County, Philadelphia, Harrisburg, York, Allentown, Bethlehem, Hershey, Lancaster, Lebanon, Pittsburgh, Erie, and beyond.In a nutshell, it’s a type of insurance policy used to cover a commercial property, which spans a broad spectrum of business environments and situations.

Commercial property insurance protects a property in much the same way as domestic property insurance would, and financially protects against perils including fire, natural disaster, and theft, paying out for any losses or damages to the property.

Commercial property insurance is widely available and most commercial properties will carry it, including most manufacturers, restaurants, retailers, charities and non-profit organizations, and service-oriented businesses. In addition, these businesses are usually able to write off the cost of their commercial property premiums as expenses.

Additional Commercial Property Insurance Policies

There are many more additional coverage plans available to purchase for a business property, meaning owners can generally tailor these packages to suit their individual business needs. The most common are:

Boiler and Machinery Insurance

This type of insurance is also referred to as “equipment breakdown” or sometimes “mechanical breakdown coverage”. It provides cover in the event of an accidental breakdown of machinery, boilers, and equipment, and will pay for any repairs or replacements needed, as well as reimbursing for property damage; an example of this would be fire damage to computers.

Debris Removal Insurance

This covers the cost of clearing up debris from a property after a fire, tornado, or flood. For example, in the worst case scenario, a property has been burnt to the ground, leaving a pile of ash and debris which has to be cleared up before any more steps can be taken – this costs money. Property insurance will cover the cost of rebuilding, but debris removal is a whole other ball game.

Builder's Risk Insurance

This type of coverage will protect a property while it is being constructed, from things such as wind or storm damage. Partially-constructed buildings are particularly vulnerable to weather conditions so it is wise to take out a builder’s risk insurance policy.

Glass Insurance

This covers any broken windows or plate glass windows, shop displays etc.

Inland Marine Insurance

Inland marine insurance is used to cover property in transit and property on business premises that does not belong to the business owner; for instance, fire damage in a dry cleaning business.

Business Interruption Insurance

This type of insurance will cover any lost income a business faces when it is unable to operate due to property damage, or loss. For instance, a flood could halt a business for two months – business interruption insurance would pay for rent, taxes, salaries and net profits during that time.

Ordinance or Law Insurance

Ordinance or law insurance will cover demolition and rebuilding costs once a building has been partially destroyed. The general rule is, if more than 50 per cent of a business needs to be rebuilt, it should first be demolished and then rebuilt, staying true to current building codes. Standard commercial property insurance will only cover the cost of replacing the building, and does not cover upgrades.

Tenant's Insurance

Tenant’s insurance is common for commercial leases. Renter’s commercial policies usually cover any damages to improvements made to a rental space, along with any damages caused to the building from employee negligence.

Crime Insurance

This type of insurance will cover robbery of money, burglary, theft, stock, securities and fixtures from outsiders and business employees.

Fidelity Bonds

A bond company can cover any losses caused in the unlikely event of a bonded employee's theft of business money and/or property.

Commercial Insurance Questions?

We're happy to help you with all your insurance needs for both business and home. Should you have questions about the right Commercial Property Insurance for your business, please contact us.

Get a business insurance quote from American Insuring Group, near Reading, PA in Berks County. Also serving Philadelphia, Harrisburg, York, Lancaster, Allentown, Erie, Pittsburgh, State College, Hershey, and beyond.

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Getting the Right Small Business Insurance for an In-Home Business

Posted by David Ross on Sat, Apr 21, 2012

Small business liability insurance for in-home business near Reading PA, Philadelphia, Harrisburg, York, Allentown, Bethlehem, State College, Pittsburgh, Erie, Lancaster, Lebanon, Berks County, Pennsylvania

Small Business General Liability Insurance – What You Don’t Know CAN Hurt You

The number of small businesses operating from home has exploded in recent years due to downsizing and other factors. As a result, nearly half of all US homeowners are exposed to some type of business liability risk in their home. From the moonlighting laid-off contractor to the babysitter, to the part-time consultant, most small businesses operating from home have inadequate general liability insurance protection.

A business operating from home is almost completely excluded from liability insurance coverage in standard homeowners insurance policies, yet most small business owners mistakenly think they are properly insured.  The resulting lack of business liability insurance coverage leaves the in-home small business owner dangerously exposed to financial ruin from a lawsuit due to injury or property damage.

Do Your Business Insurance Homework

The key is to do your homework. Don't assume you have business liability insurance coverage under your homeowners insurance policy.  The annual revenue limitation for an in-home business to be covered under a homeowners insurance policy is a paltry $2,000.  Any higher, and most homeowners policies will exclude the exposure.  Even when operating for a time below the $2,000 revenue ceiling, there are limitations to what types of business exposures are covered under a homeowners insurance policy, and these often include many restrictions.

Purchase a Homeowners Insurance Policy with an In-home Business Liability Insurance Extension

Purchasing an in-home business liability insurance rider is the easiest and most economical way to cover your in-home business liability exposure.  Many homeowners insurance policies offer this rider for as little as $150 annually.  Some in-home business insurance exposures do not qualify for the homeowners rider. In such cases a stand-alone general liability insurance policy is the solution.

Need to upgrade your homeowner’s policy to properly insure your in-home business? Contact us for a free, no-obligation business insurance review at 1-800-943-2198.

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Understanding Small Business Insurance

Posted by David Ross on Sat, Feb 11, 2012

Understanding Commercial Insurance Can be One Tough Job!  

Being a small business owner today is a tough job!  Between rules and regulations, licenses and taxes, and banking and commercial insurance, it sometimes seems you need your own board of directors just to help manage your business!

At American InsurinUnderstanding your business insurance needs for commercial insurance, workers compensation, umbrella insurance | Reading PA, Philadelphia, Lancaster, Harrisburg, York, Allentown, Bethlehem, and Erie, Pennsylvaniag Group, Small Business Insurance is our specialty.  We can help you, the business owner, understand not only what commerical insurance protection your company needs, but also what business insurance is required of you to satisfy legal requirements.

Our office represents over a dozen "A" rated general insurance companies that specialize in small business insurance and we have access to dozens more specialty commercial insurance companies that fill specific small business insurance needs for our clients.

So How Many Types of Liability Insurance Are There?

The commercial insurance needs for a business owner can be daunting.  First, there is Public Liability Insurance that is a must to protect the business from lawsuits and claims for injuries or property damage to others.  But Public Liability Insurance isn't that simple.  What type of liability insurance protection do I need?  Is Premises Liability Insurance enough?  What if I leave my business location and go to someone else's home or business location?  Does my Liability Insurance cover me there as well?  What about when I finish a job and leave?  Do I have Completed Operations coverage if sometime later, after the job is finished, someone is hurt by my work or property damage is caused?

Are you a business owner who makes something, sells something, or just handles products someone else makes?  Do you have Product Liability Insurance coverage included in your General Liability Insurance coverage?  What if you harm someone's reputation or cause someone to lose sales, and they look to you for compensation? Personal or Advertising Injury Liability coverage protects the business owner from these claims.

What if an employee claims that you fired them under false pretense?  Or they make an allegation of harassment against you?  Employment Practices Liability Insurance is the protection that any business owner who employs someone must have to be protected.

There are many extentions of Public Liability Insurance the business owner should understand and use to be protected from the unexpected.  At American Insuring Group LTD., our licensed agents have the understanding and experience in Commercial Insurance to help you determine your insurance risks and to identify the insurance solutions to properly cover your businss. 

Workers Compensation Insurance - Are You Operating Legally?

Then, there is Workers Compensation Insurance for the small business that employs people. Most states require the business owner to cover employees for work related injuries.  What if you are a corporation without any employees?  States consider Workers Compensation Commercial Liability Insurance | Reading, PA, Philadelphia, Harrisburg, Lancaster, York, Lebanon, Harrisburg, Erie, Pittsburgh, Allentown, Bethlehem, Pennsylvaniaa corporation to be its own entity, and even you, the owner (officer), are considered an employee. Therefore you must either have Workers Compensation Insurance coverage or have the proper exclusion paperwork filed with the Department of Labor and Industry. At American Insuring Group, our licensed staff can help you with all the forms necesasary to be legal. 

Not only does Worker Compensation Insurance cover medical bills and lost wages for employees who get hurt during working hours, but there is a second business insurance coverage that is included with most policies.  Employer's Liability Insurance covers the business owner if an employee presents a claim against his employer for alleged negligence for his injuries.  An example of this is an employee who cuts off his finger on a machine.  Workers  Compensation Insurance would pay medical bills and lost wages, but if he claims the business did not properly maintain the equipment and now he must live life without a finger, the business owner would have protection from such a lawsuit under Employer's Liability Insurance.

Liability Insurance and Worker's Compensation Insurance covers only some of the insurance needs for the business owner. Other types of coverage include: Property Insurance protection, Van Insurance for your business vehicles, Umbrella Insurance for excess insurance protection, Bonding for the contractor's needs and Group Medical Benefits for your employees.

We Can Help You Make the Right Liability Insurance Decisions for Your Business

At American Insuring Group LTD, we take the time to understand your business so we can make sure every exposure to risk is discussed and covered by our small business insurance policies.  Call us today at 800-947-1270 or email me at david@aigltd.com. I would love to meet or talk to you and help you understand your business insurance needs.  If you already are covered by insurance, a second opinion may often uncover coverage gaps or missing insurance coverage that is needed. 

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