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Picture this: a pizza delivery guy, a shuttle driver (sole-proprietor of the business), and an independent landscaping contractor collide into each other at the intersection of First and Main.

As they all get out of their vehicles to examine the damage, the delivery man asks, “Do you guys have commercial vehicle insurance?”   Both drivers shake their heads no.  “Do you?” asks the shuttle driver.  The delivery man looks down at his feet, and says, “No, but I’ve been meaning to talk to my insurance agent about it.” 

Insurance Claim Denied

In this scenario, chances are that all three would hear the same answer from their insurance agent, “Sorry, but your personal vehicle insurance won’t cover this accident.”  

If you own a fleet of vehicles and hire many drivers, you probably know you need commercial vehicle insurance.  But what if you just use your personal vehicle for business occasionally, or it’s just you driving your truck from job to job?   Won’t personal car insurance cover you in the event of an accident?  It depends. 

Like personal vehicle insurance, commercial vehicle insurance covers things such as liability, collision, comprehensive, medical payments, and uninsured motorist coverage. However, there may be a difference in eligibility, definitions, coverage, exclusions, and limits. Certain business usage and vehicle types can be excluded from personal policies. Some businesses need coverage only found in commercial car and truck insurance. 

Commercial Vehicle Insurance Benefits

Commercial vehicle insurance generally includes higher liability coverage.  Sometimes commercial insurance also insures the items (such as work equipment) within your vehicle; it may include rental reimbursement to help cover the cost to temporarily replace a commercial vehicle; and it may offer single-deductible options, which allow you to extend coverage to trailers or other specialized equipment you haul. 

So, how do you know if you need commercial vehicle insurance or if personal vehicle insurance is enough? It depends on the nature of your business, how you use your vehicle, and your insurance company’s policies.  Here are a few questions you need to consider - if you answer yes to any of them, you may need commercial car insurance.

·       Is your vehicle used to transport goods or people for a fee?

·       Is your vehicle owned or leased by a partnership or corporation?

·       Is your vehicle registered or titled to a business, corporation, partnership, or DBA?

·       Do employees operate your vehicle?

·       Is your vehicle a pickup, van, or utility vehicle with a gross weight exceeding 10,000 pounds or does it have a rated load capacity over 2,000 pounds?

·       Is your vehicle equipped with snowplow equipment, cooking or catering equipment, bathrooms, altered suspensions, hydraulic lifts, or racing equipment?

·       Is your vehicle equipped with a ladder rack or permanent toolbox that is used for your business?

Don't Take Chances on Insurance for Your Commercial Vehicle - Contact Us Today

Personal vehicle insurance provides enough coverage for some businesses; however, there are times when commercial vehicle insurance is required.  If you don’t want to be like the pizza delivery driver, the shuttle driver, or the independent landscaping contractor in our story, contact us for advice in making the right insurance decision at (800) 947-1270 or (610)775-3848.  We'll help you obtain the right type and level of vehicle insurance for your business. 

What a Tragedy Taught us About Fire Safety & Commercial Insurance

On March 25, 1911, the US witnessed one of the deadliest industrial disasters in American history – the Triangle Shirtwaist Factory Fire in New York City.  The fire resulted in the deaths of 146 garment workers – 123 women and 23 men – who were working on the eighth, ninth, and tenth floors.  Some died from the fire, but many were killed by smoke inhalation or falling or jumping to their deaths.   

This horrible tragedy led to legislation that improved worker safety standards, including better building access and egress, fireproofing, fire extinguishers, alarm systems, and automatic sprinklers.  More than one hundred years later, the lessons learned from this tragedy still apply. 

Here are some reminders on how to avoid workplace fires and injuries, thereby reducing the long-term cost of your commercial and workers comp insurance by minimizing both the number and severity of your insurance claims.

6 Tips to Avoid Workplace Fires & Injuries

Give them a way out. If the doors to the stairwells and freight elevators in the Triangle Factory weren’t locked to prevent theft, many of the 146 workers who perished would have survived.

Enforce smoking bans. Although smoking was banned on the Triangle Factory floor, it was common knowledge that workers often snuck cigarettes in.  The suspected cause of the Triangle fire was a discarded match or cigarette.

Quickly get rid of scrap material. Two months’ worth of highly flammable fabric cuttings (hundreds of pounds) were in the scrap bins in the Triangle Factory.

Keep them separated. Fabric hanging close to the scrap bins helped the fire spread more quickly.

Make it easy to spread the word. There were no working telephones on the ninth floor of the Triangle Factory, so workers there didn’t know about the fire until it had reached their floor.  Working, audible fire alarms and emergency communication systems could have made all the difference.

Regularly inspect your fire escapes. Twenty people died when the flimsy fire escape at the Triangle Factory collapsed.

Be Prepared with the Right Commercial Insurance

Contact an American Insuring Group agent at (800) 947-1270 or (610) 775-3848 to ensure that you have the proper workers compensation insurance and commercial insurance to protect both your employees and your business. As independent agents we offer insurance solutions from over 25 competing insurance companies to give you the best options at the best price. Serving Philadelphia, Reading, Lancaster, Allentown, York, PA and far beyond. Call today.

But how do you know what types of commercial insurance are best for your business?  Or how much coverage you need?  As a business owner, you probably wear many hats, but an insurance expert hat is probably not in your wardrobe!

Here are three basic things to consider when buying business insurance for your company:

1. Determine Your Risks – The insurance company will determine the level of risk it’s willing to accept when issuing a policy and may decide to provide all or just a portion of the coverage you request.  Your broker will then offer a policy that includes a premium and a deductible.  Premiums depend on a number of risk factors, such as your location, proximity of fire protection services, and your type of building structure, in addition to the amount of coverage you want to purchase.  A higher deductible will probably lower your premiums, but it will also increase your financial risk. It’s important to determine the level of risk you’re willing to take.
   
   
2. Keep it Simple: Consider a Business Owner’s Policy (BOP) – You can purchase insurance separately or as a package called a Business Owner’s Policy.  A BOP usually covers property, general liability, vehicles, business interruption, and other types of coverage common to most types of businesses.  BOPs simplify the insurance buying process and typically save you money.  But, it’s important that you understand what is and isn’t covered by a BOP.  Unique risks may require additional coverage. Your independent insurance agent can help clarify your options and help you identify your needs.
   
   
3. Review Your Insurance Coverage Annually – As your business grows, so do your liabilities.  As you purchase or replace new equipment or expand operations, you may need more coverage.

The Small Business Administration (SBA) says, “Finding a good insurance agent is as important as finding a good lawyer or accountant.”   At American Insuring Group we're interested in your needs, we understand the risks associated with your business, and we can help you get the right commercial insurance for your business needs. 

So give us a call at (800)947-1270 or (610)775-3848 or use our online quote system to get a free business insurance quote.

Electrically-Related Worker's Comp Injuries

Electrical hazards cause more than 200 electrocutions (death by electric shock) and 4,000 workplace injuries each year, costing businesses millions of dollars in Workers’ Comp claims, fines, medical costs, litigation, lost business and equipment cost.  “While electrical hazards are not the leading cause of on-the-job injuries, accidents, and fatalities, they are disproportionately fatal and costly,” according to the Electrical Safety Foundation International (ESFI). 

The good news is that most electrically-related injuries and the resulting workers’ compensation and fire-related rebuilding costs can be avoided with a comprehensive electrical safety program. That's good news for electrical contractors and other businesses whose employees perform electrical maintenance and installation services.

12 Ways to Avoid Electrical Injuries and Reduce Worker's Compensation Insurance Claims

Whether you’re in an office, a warehouse, or a manufacturing facility, there are things you can do to avoid electrical injuries and costly worker's comp claims:

• Avoid using electrical equipment in unsuitable conditions, such as a wet or dusty workplace.
• Ensure electrical panel doors are freely accessible and unblocked by furniture or clutter.
• Tuck cables and cords away so they don’t create tripping or slipping hazards.
• Place electric cords where there is air circulating to prevent overheating.
• Keep electrical cords away from heat sources, such as radiators and space heaters.
• Ensure that the electrical load of equipment such as computers, printers, scanners, faxes, shredders, and telephones is spread over several circuits.
• If you are using extension cords as a permanent source of power, consider having additional circuits installed.
• Plug office electronics into a surge protector.
• Ensure grounded (3-prong) appliances and equipment are plugged into grounded outlets.
• Avoid spilling beverages on electronics, and if it happens, be careful, as electrically powered devices may become live to the touch if they become wet.
• Pull on the plug, not the cord, when unplugging equipment.
• Get rid of old, unsafe or poorly maintained equipment, such as old coffee makers, radios, lamps, and space heaters.

Improve Electrical Safety in your Workplace

ESFI offers the following steps:

Step 1: Awareness

What does electrical safety mean to you?  The How Do You Know? video modules demonstrate how safe electrical practices are vital to everyone in your business.

Step 2: Assessment

Are you confident that your company's electrical safety program is up-to-date and comprehensive?  Evaluate your program with ESFI's Electrical Safety Self Assessment. It's an easy to use tool that will help you review and analyze your company's electrical safety practices related to facilities, personnel, and procedures.

Step 3: Improvement

Once you identify areas that need to be addressed, what's the next step?  ESFI has compiled a library of safety resources and links to help you find the information you need.

Worker's Compensation Insurance - Do You Have the Right Coverage?

Following these suggestions will help ensure the safety of your employees, reduce workers comp claims, and avoid fire-related business costs. 

However, even the best laid plans sometimes fail.  When that happens you need to have the right insurance to protect your business from those unforeseen incidents.  Contact American Insuring Group at (800) 947-1270 or (610) 775-3848 for help in obtaining the right worker's comp insurance to properly cover your business from loss.  We can help you with all your business-related insurance needs.

Working in the food service industry often means hard work and long hours.  You also face many unique challenges, including the responsibility of ensuring that the food you serve to your customers is safe.  As any restaurant owner knows, a foodborne-illness can cause the loss of thousands of dollars and, in some cases, your entire business. 

The National Restaurant Association estimates the average cost of a foodborne illness outbreak at more than $75,000.  This doesn’t even take into account the human cost. Does your restuarant have the proper insurance to handle such an occurence?

Millions of people become sick each year and thousands die after eating contaminated or mishandled foods. The Centers for Disease Control and Prevention (CDC) estimated in 2011 that contaminated food caused 47.8 million illnesses a year in the United States (that includes food eaten at home and other places besides restaurants).

Ten Factors That Often Cause Food-borne Illnesses, According to the CDC:

1. Improper cooling of foods — the leading cause of foodborne illness outbreaks.
2. Advance preparation of food (with a 12-hour or more delay before service).
3. Infected employees who practice poor personal hygiene.
4. Failure to reheat cooked foods to temperatures that kill bacteria.
5. Improper hot holding temperatures.
6. Adding raw, contaminated ingredients to food that receives no further cooking.
7. Foods from unsafe sources.
8. Cross contamination of cooked food by raw food.
9. Improper use of leftovers.
10. Failure to heat or cook food thoroughly.

Here are five steps you can take to minimize foodborne illnesses in your restaurant and decrease the risk of an insurance claim:

1. Wash your hands.
2. Thoroughly wash all produce, since it is often served uncooked.
3. Maintain a temperature at or below 40°F in your refrigerators to minimize bacterial growth.
4. In order to kill any bacteria present, cook foods to the minimum recommended internal temperature and sustain that temperature for at least 15 seconds.
5. Clean and sanitize all food contact surfaces, such as countertops, cutting boards, utensils, pots, and pans.

Have the Right Restaurant Insurance When All Else Fails

If, in spite of all your efforts to keep your food safe, your restaurant does experience an outbreak of a foodborne illness, there’s only one thing that can save you – the right insurance.  One option you may want to consider adding to your basic policy is business interruption insurance to help your business stay afloat if you’re forced to shut down for any length of time.  Another good option is food contamination coverage, which covers your restaurant from financial loss and helps rebuild your restaurant’s reputation.

Don't Leave it to Chance: Contact us Today

You’ve worked hard to establish your restaurant business. Don't leave things to chance. Be sure you can survive any potential issues with a comprehensive restaurant insurance policy tailored specifically to your business.  The agents at American Insuring Group understand your unique challenges. Contact us at (800) 947-1270 or (610) 775-3848.   

How Will the Affordable Care Act Affect Small Business Health Insurance Costs?

You would have to be living on a desert island or under a rock not to have heard of the Affordable Care Act (a.k.a. Obamacare).  But with all the partisan arguments about how wonderful or – conversely - how awful this new law is, it’s hard to separate the wheat from the chaff.  So, as Sgt. Joe Friday said, we’ll try to stick with "just the facts, ma'am."

Affordable Care Act Facts:

FACT: The Affordable Care Act (ACA) was passed by Congress and then signed into law by President Obama on March 23, 2010. 

FACT: On June 28, 2012 the Supreme Court rendered a final decision to uphold the health care law.

FACT: Open enrollment in the Health Insurance Marketplace began October 1, 2013 and ended March 31, 2014

That’s probably where the “facts” end.  The stated intent of the ACA was to offer affordable health insurance to every American.  According to the U.S. Department of Health and Human Services website, the ACA “puts consumers back in charge of their health care. Under the law, a new ‘Patient’s Bill of Rights’ gives the American people the stability and flexibility they need to make informed choices about their health.”  Few would argue with the value of the law’s stated goals, which are summarized as follows on the HHS website: “All together, these reforms mean that millions of people who were previously uninsured will gain coverage, thanks to the Affordable Care Act.”

What Impact Will the Affordable Care Act Have on Small Business Insurance Costs?

The full repercussions of the ACA on small businesses and their health insurance costs – and whether it’s truly “wonderful” or actually “awful” - won’t be known for several years; however, the Center for Medicare and Medicaid Services (CMS), which spearheaded the implementation of the law, presented a report to congress with a few predictions.  In the interest of “sticking with the facts,” CMS’s report states, “There is a rather large degree of uncertainty associated with this estimate. The impact could vary significantly depending on the mix of firms that decide to offer health insurance coverage.”

CMS: 2/3 of Small Businesses to See Increased Costs

A recent Small Business Association poll found that 96 percent of small businesses said their health insurance premiums have significantly increased over the past five years, with average monthly insurance costs increasing from $590 per employee in 2009 to $1,121 in 2014.  CMS’s research indicates those rates will continue to rise.  The CMS report states that the new rules, such as requiring that insurers offer guaranteed health coverage and insurance renewal options to small employers and preventing insurance companies from varying their rates based on a company’s industry or the age of its employees, will most likely drive up the price of insurance for many small businesses. 

The report estimates that 65 percent of small businesses are expected to experience increases in their premium rates, while only 35 percent will see a reduction. Businesses with exceptionally sick or at-risk workers will benefit most from the new provisions.  The effect on large employers is expected to be negligible, since many larger companies run their health insurance programs in house. 

What Can You Do to Control Your Business’s Health Insurance Costs?

American Insuring Group can help you navigate through the complexities of the new ACA rules and ensure that you get the best health insurance premiums available.  Contact an agent at (800) 947-1270 or (610) 775-3848 for more information about health insurance and the Affordable Care Act.

Want to learn more? Download our free report: 10 Things You Should Know About Health Insurance Under the Affordable Care Act

2013 was a good year for the real estate industry.  The price of homes increased by more than 20% in certain hotspots, and experts predict that home prices will continue to rise in 2014 – albeit, at a more moderate rate of 3-5%.  This is great news if you’re a realtor or if you’re trying to sell your home.  But you might be asking yourself, “Does this mean I need to reevaluate the insurance coverage on my home?  Does this mean I have to pay higher house insurance premiums?”

Market Value vs. Replacement Cost Value

Before we answer this question, you need to understand the difference between “market value” and “replacement cost value.”  Market value is how much you should be able to get for your home if you were to sell it.  This value is based on location, the value of the land, and other real estate trends. On the other hand, replacement cost is what it would cost to replace your home if it was completely destroyed – if you had to rebuild it from the ground up. 

Why Did You Purchase Homeowner’s Insurance?

Now think about why you purchased your homeowner’s insurance.  Wasn’t it to protect you and your family against unforeseen disasters?  If a storm rips the roof off your home, you want to be able to replace it.  If your house is completely destroyed by a fire, you need to have the resources to rebuild it, so you and your family have a place to live.  Plus, most disasters that can affect your home don’t affect the land itself.  If a tornado blows through your home or a tree lands on your roof, the value of the land your home rests on isn’t affected. 

Therefore, you should insure your home for what it would cost to repair or replace it, not what someone else would pay for it.  So, if the market value of your house increases because of the real estate market, there’s no need to re-evaluate your homeowner’s insurance.  Plus, most homeowner’s insurance policies have an inflation guard that automatically increases the value of the property by 3-5%.

When Considering Insurance on Your Home, Remember the Upgrades!

Now, if you make improvements to your home, such as an addition or a major renovation, it can affect both the market value and the replacement cost.  In that case you should contact your insurance agent, so you can make sure that your entire investment is protected in the event of a disaster. 

If you’d like to take a look at your homeowner’s insurance to be certain your home has sufficient protection, contact American Insuring Group at (800) 947-1270 or (610) 775-3848. We'll help you get the right level of quality insurance at the right price, quoting several competing insurance providers in the process.

Have you ever wondered what factors determine your life insurance rates?  Is it just your age…the state of your current health? Is there anything you can do to make your life insurance more affordable?

Insurance companies look at several factors to determine the likelihood that A) you’ll live a very long life, or B) you’ll die very soon. As depressing as that may sound, it’s a fact, and it’s what determines your life insurance premium. 

What Do Life Insurance Companies Consider When Setting Your Premium?

While every insurance company has its own underwriting criteria to determine your premium, you may be surprised by some of the factors they look at.  What isn’t surprising is that many of the factors that determine your life insurance premiums can also affect the quality and/or length of your life. Some you can change and some you can’t.  

Here are eight factors many insurance companies use to determine your life insurance premiums, and some tips on how to get a better rating and save on your life insurance policy.

1. Driving violations

If you’ve had two moving violations in the past year or a DUI in the past 5 years, you may be considered a reckless driver, which could put your life in danger and pose more risk for the insurance company.  There isn’t much you can do about existing violations, but you can SLOW DOWN and not drink and drive.

2. Your workplace colleagues

If you have group life insurance from your workplace, the premiums are based on the average age and health of everyone, not just you.  So if you work with a group of individuals who are older and less healthy than you, it may raise your premium.  On the other hand, if you work with a group of individuals who are younger and healthier than you, it may lower your premium.  Make sure you compare the price of an individual health insurance policy before jumping into a group plan. 

3. Credit history

Individuals who have filed for bankruptcy are considered a high-risk proposition and many insurance companies won’t even issue a policy until their credit report has been cleared. Make sure you consider all the alternatives and consequences before filing for bankruptcy. 

4. Lifestyle

Are you a daredevil?  Do you prefer skydiving to reading…car racing to gardening? Certain hobbies can disqualify you from getting the best rate on life insurance.  Even travel outside of the country can increase your premiums.  So, consider the increased cost of life insurance when weighing the pros and cons of your career choices.

5. Occupation

Higher-risk occupations, such as airline pilots and high-rise construction engineers, can create a higher risk for premature death, thereby causing higher life insurance premiums.  Solution – choose your occupation wisely.

6. Smoking Habits

We all know smoking can raise your risk of stroke, lung disease and many other life-threatening medical conditions; therefore insurers often charge smokers a higher premium.   One more reason to kick the habit. 

7. Your weight

There are a number of diseases related to being overweight that can shorten your lifespan.  Most insurers look at height, weight, and body mass index (BMI) to determine your premium.   Plus, many insurers want to see you keep that weight off for at least one year before they will offer you a better rate.   So if you were looking for that final push to get you started on an exercise and diet plan, think about all the money you can save on your life insurance premiums.

8. Family health history

Your family’s medical history shows what diseases you may be prone to. You can choose your friends, but not your family; however, you can choose to protect your family with the right level of life insurance, and you can ask your doctor for advide on how you may be able to reduce your health risks through proper diet, exercise, and other factors in light of your family medical history.

Ready to Talk Life Insurance?

Contact American Insuring Group at (800) 947-1270 or (610) 775-3848 to learn more about your life insurance options, or for a free quote on life insurance.

Do you believe that your employees are one of your most valuable assets?  Do you think of your employees as an investment rather than an expense?  

The fact is that happy, engaged, and loyal employees work harder, provide better customer service, and stay with you longer. That's why great benefits, especially health insurance, can be crucial to attracting and retaining the best employees.

Consider these facts:

• The average cost of recruiting, hiring and training a new employee is close to $4,000, according to an article in Entrepreneur Magazine.
   
• The companies listed on Fortune’s ‘100 Best Companies to Work For’ list experienced stock prices that rose an average of 14% per year from 1998-2005, compared to 6% for the market as a whole, according to a study from the Jackson Organization. That's more than double the norm, and suggests a strong link between employee satisfaction and company performance.

If you truly value your employees, it's important to do more than just say that you value them, so prove it to them via their health insurance, life insurance, and other benefits!  If you don’t show you care about their needs, they'll be less motivated to care about your company or their work, and your bottom line will suffer as a result.  If you want to stand out as an employer and attract real talent, it’s important to do what you can to ensure that your employees are healthy and happy – both physically and financially.

Start with a Good Employee Benefits Package

A good employee benefits package is a great place to start.  Unfortunately, during these rocky economic times, many companies are tempted to cut employee benefits.  This “cost-saving” measure will most likely backfire on you by creating less motivated employees and a higher turnover rate.

Mandatory Employee Benefits

While some benefits are optional, all employers are required to provide employees with the following benefits:

• Give employees time off to vote, serve on a jury and perform military service.

• Comply with all workers' compensation requirements.
   
• Withhold FICA taxes from employees' paychecks and pay your own portion of FICA taxes, providing employees with retirement and disability benefits.
   
• Pay state and federal unemployment taxes, thus providing benefits for unemployed workers.
   
• Contribute to state short-term disability programs in states where such programs exist.
   
• Comply with the Federal Family and Medical Leave Act (FMLA).

Providing additional benefits, such as health insurance, dental, vision, and life insurance plans will attract better-qualified candidates, ensure higher retention rates, and increase your bottom line. 

We Can Help You Craft a Better Employee Benefits Package

Contact American Insuring Group at (800) 947-1270 or (610) 775-3848 to discuss affordable health, life, and workers compensation insurance plans to make yours a better company that attracts and retains the high-caliber talent you need to excel in the marketplace.

There is a lot of uncertainty these days regarding what is required under the Affordable Care Act, also known as ObamaCare. Businesses and individuals alike are concerned they may be penalized or miss out on important information needed to keep their health insurance in tact and affordable.  

With that in mind, here are 10 things you should know:

1. As of January 1^st 2014, every person must be insured under a Qualified Health Insurance Plan.
    
2. If Employer Coverage is not offered, it is the responsibility of the Individual to purchase insurance independent of their Employer.
    
3. If a person is not insured in 2014, they will be faced with an Individual Tax penalty equal to $95/person or 1% of your taxable income…whichever is greater!
    
4. The Initial Open Enrollment period ends March 31^st, 2014.
    
5. Health plans sold after January 1, 2014 must include a list of 10 Essential Health Benefits such as Maternity coverage, Mental Health coverage, Prescription coverage, Pediatric Dental coverage, etc.
    
6. Health Plans will fall into 4 Metal Levels (Platinum, Gold, Silver, Bronze) and also include a catastrophic coverage option for those under 30 or for those meeting specific hardship guidelines.
    
7. There is premium assistance for people making between 100-400% of the Federal Poverty Level.
    
8. In addition to premium assistance, there are cost sharing subsidies (reduction in deductibles and out-of-pocket expenses) for those between 100-250% of the Federal Poverty Level.
    
9. The only way to claim the Premium Subsidy (Advance Premium Tax Credit) and the Cost Sharing Subsidies is to apply with the Federally Facilitated Marketplace (FFM).
    
10. Because the FFM is temperamental, the best way to apply and evaluate your coverage options is to contact a CERTIFIED Licensed Producer for assistance.

Looking for help in obtaining the right health insurance coverage for your employees or family?

Contact us today at American Insuring Group or request a free health insurance quote.