Welcome to the Sandwich Generation?

Our world is changing.  The “typical” family has changed and people are living much longer due to advances in medicine.  These two ingredients have created a new generation – known as the Sandwich Generation. Gone are the days when a “typical” family consisted of a working husband, a stay-at-home wife and a couple of children.

Today, only 22 percent of all children under 15 are being raised by the “typical” family, according to a report for the Council of Contemporary Families.  Another 23 percent are being raised by a single mother, 7 percent live with a parent who cohabits with an unmarried partner, 3 percent live with a single father, and 3 percent live with grandparents.  In addition, nearly half of all American married couples are dual-career couples according to the Harvard Business Review. 

Plus, people are living longer.  When the 20th century began, life expectancy at birth in America was 47 years.  Today, newborns are expected to live 79 years. If we continue increasing life expectancy at the rate we have been, people will be living to 100 by the end of this century.  This means an increase in the number of aging parents – who are experiencing changing needs - will require some type of assistance.

According to Pew, “Nearly half (47%) of adults in their 40s and 50s have a parent age 65 or older and are either raising a young child or financially supporting a grown child (age 18 or older).” Nearly 30 percent of those aging parents need some type of assistance.

Long Term Care Insurance: Relief for the “Sandwich Generation”

Today, many individuals are responsible for the care of an aging parent.  Some turn to professionals for help – hiring a caregiver or relocating their parents to a facility that can meet their changing needs – but paying for this long-term care can quickly drain your bank account. Long term care insurance can help ease the financial burden.

Here are some average costs of long-term care in the US, according to Longtermcare.gov: 

$205 per day or $6,235 per month for a semi-private room in a nursing home

$229 per day or $6,965 per month for a private room in a nursing home

$3,293 per month for care in an assisted living facility (for a one-bedroom unit)

$21 per hour for a home health aide

$19 per hour for homemaker services

$67 per day for services in an adult day health care center

This financial burden often forces individuals to take it upon themselves to become the primary caregiver for an aging parent.  In fact, more than 65 million Americans are the care giver for an adult family member.  Before deciding to take this route, you should consider all of the “costs” this decision can create.

Financial Costs

There is almost always a financial impact if you become the caregiver.  Nearly half of family caregivers spend more than $5,000 a year on out-of-pocket caregiving expenses, and about a third spend more than $10,000 according to a recent survey. Those who leave the workforce to provide care lose an average of more than $300,000 in income and benefits.

Health Costs

As you focus on the needs of your loved one, it’s very easy to forget to take care of yourself.  About one in five family caregivers believe their health has gotten worse as a result of their responsibilities.  Between 40% and 70% of family caregivers of older adults have significant symptoms of depression. Other common health problems of family caregivers include increased anxiety, heart disease, hypertension, sleep problems and fatigue. Therefore, quality health care insurance coverage is key.

Career Costs

Becoming a primary caregiver can also affect your job.  Consider these statistics for working caregivers: 

• 60% say their duties have had a negative impact on their jobs

• 68% make work accommodations

• 64% arrive late, left early and/or took time off in the middle of the day

• 17% took a leave of absence

• 9% reduced hours or took a less demanding job

• 5% turn down a promotion

Relationship Costs

Being a full-time caregiver can change your family dynamics and put a strain on your relationships with your spouse and children. It can also create stress and conflict with siblings when it comes to topics like financial support and sharing the caregiving responsibilities.

The Solution: Long-term Care Insurance

Providing long-term care to an aging loved one will always be an emotional and often trying experience for families. If you don’t want to become a burden to your family, you should consider long-term care insurance to protect your family’s finances, provide choices, and alleviate many of the “costs” associated with long-term care.  Most importantly, long-term care insurance provides peace of mind for both you and your family. 

Take the first steps in learning about long-term care planning and find out how solutions like long-term care insurance can protect both you and your family.

For more information, contact American Insuring Group at (800) 947-1270 or (610) 775-3848.  

It’s a bird.  It’s a plane.  No, it’s a drone!

Businesses are discovering many uses for drones – also known as unmanned aircraft systems (UAS).  In fact, total spending for military and commercial drones is expected to reach $89.1 billion over the next ten years.  This translates into approximately 30,000 small commercial drones in use by 2020, according to the Federal Aviation Administration (FAA).

Commercial Application of Drones: Implications for Commercial Insurance

Drones are already being used by real estate brokers to get images of properties from the air, by farmers to monitor crops, by insurance claims adjusters to view damaged property, by the Forest Services to monitor fires, and by movie companies in film production.

Almost any job that currently requires an aircraft is a good candidate for a drone, since drones are considerably less expensive to operate.  Major online retailers are already planning on using drones to deliver packages.  Plus, drones can provide safer options and prevent worker injuries in many cases.  For example, if you own a construction company and you need the top beams of a building inspected, would you rather send a man several hundred feet off the ground or a drone? The bottom line is that if you are operating drones for business purposes then it's critically important to add drone insurance to your business insurance policy. 

Other potential uses for drones include:

• News: aerial reporting
• Insurance: claims and underwriting operations
• Service: table service at restaurants and bars!

Commercial Insurance Implications for Businesses Operating Drones: A Closer Look

This proliferation of drones increases the need to address commercial insurance liability and coverage issues, most notably - personal injury and invasion of privacy.  Drones are excluded in about 99 percent of Commercial General Liability policies available today.  Legal issues include “trespassing” drones; airspace ownership laws; and the question of federal aviation laws vs. state laws. In addition, many drones have high-powered cameras, infrared sensors, facial recognition technology, and license plate readers, which also brings up concerns regarding invasion of privacy, spying, stalking, and harassment.

Insurance Companies Scrambling to Supply Drone Insurance Coverage

In February 2012, congress mandated that the Federal Aviation Administration (FAA) find a way to integrate drones into U.S. airspace by September 2015.  With that deadline looming, the FAA is nowhere close to finalizing its plans.  This lack of regulation and the fact that there is very little loss history available at this point makes it challenging for insurance companies to develop policies. It's therefore likely that drone insurance rates may vary widely among insurance providers. Therefore, it's helpful to acquire drone insurance protection from an indepdent insurance agency who is free to shop around among competing brands of insurance providers in order to help you obtain the proper coverage at a fair price.

Drone Insurance Risk Factors - Similar to Aircraft Insurance Risks

Since drones are regulated by the FAA, many of the same questions that an underwriter looks at with an aircraft will also apply to a drone, such as its function or intent, its takeoff and landing location, whether it will be operating over a populated area, and its flying altitude.  However, a drone is not a manned aircraft.  Underwriters will need to look at liability, personal injury, and invasion of privacy, property and workers’ compensation when creating insurance policies for commercial drones. 

Currently there are about 21 insurance companies that write aircraft product liability policies – up from just nine a few years ago.  Someday requesting insurance for drones and drone-related operations will become routine, but for now we’re faced with the challenge of keeping up with the issues that come along with quickly advancing technology. 

For more information about drone insurance and other commercial insurance needs, contact American Insuring Group at (800)947-1270 or (610)775-3848. As an independent insurance agency, we're postitioned to help you save on insurance by shopping your needs among many competing insurance providers. Call today.

The Largest Minority Group in the U.S: Americans with Disabilities

More than 50 million Americans – 18% of the population – have disabilities, making them the largest minority group in the country.  In addition, approximately 71.5 million baby boomers will be over the age of 65 by the year 2030; many will require special provisions to meet their age-specific physical needs.  

There are many reasons for your business to provide accessibility to disabled individuals.  First, it’s the right thing to do.  Second, each of these individuals is a potential customer and studies have shown that once people with disabilities find a business where they can comfortably and easily shop or get services in, they become repeat customers. And finally, the Americans with Disabilities Act allows individuals and disability rights organizations to bring lawsuits against businesses that do not comply with the Act, knowingly or unknowingly. In such cases having the right commercial insurance can be critical to your financial protection. 

What is ADA?

The ADA, signed into law in 1990, is a federal civil rights law that prohibits the exclusion of people with disabilities from everyday activities such as shopping, eating in a restaurant, or seeing a movie.  Thanks - in great part - to the ADA, people with disabilities are living more independent lives and participating in more activities within their communities. 

The ADA is Confusing, But Your Business Can be Held Liable Regardless of Your Intent

Unfortunately, the ADA laws can be very confusing and often frustrating to small business owners, and although there are some exceptions given to smaller businesses regarding the ADA rules against disability discrimination in employment and the requirement that employers provide reasonable accommodations to disabled employees, the adoption of Title III of the ADA in 2010 applies to every business that serves the public - regardless of the size of the business or the age of the building. How confident are you that your business is in full compliance? Do you have the proper commercial liability insurance protection to help shield you from unknown risks?

Title III applies to businesses that provide goods or services to the public (known as  “public accommodations”).  There are 12 categories of public accommodations, including stores, restaurants, bars, services establishments, theaters, hotels, recreational facilities, private museums and schools, doctors’ offices, shopping malls, and other businesses.  Essentially, any business that regularly serves the public (with the exception of private clubs and religious organizations) is considered a public accommodation.  

Know the Most Common ADA Violations and Prepare Accordingly

These businesses must take steps to ensure that their facilities are accessible to individuals with disabilities.  Here are seven of the most common areas of violations:

• Parking lots
• Exterior ramps
• Paths of travel
• Signage
• Restrooms
• Lobbies and reception areas
• Accessibility to goods and services 

How Can I Protect My Business from ADA Title III Lawsuits?

If your business isn’t compliant, you can lose potential customers and open yourself up to lawsuits, heavy fines, and legal fees.  Although it is impossible for businesses that serve the public to completely avoid the risk of ADA lawsuits, there are a number of steps you can take to minimize your risk:

1. Have your property inspected by an ADA compliance expert.
2. Read through the 2010 ADA Standards for Accessible Design. 
3. Read through the ADA Small Business Primer. 
4. Take the online course, “At Your Service: Welcoming Customers with Disabilities.”
5. Know the difference between ADA requirements and state and local building codes.  “Grandfather” provisions that are often found in local building codes do not exempt businesses from ADA Title III compliance.
6. Don’t ignore letters from plaintiff’s attorneys threatening ADA lawsuits.  Sometimes claims can be resolved with little cost if addressed prior to extensive litigation.
7. Provide training to your employees and staff on how to address questions or concerns about disability access from customers.
8. Discuss your liability insurance with your insurance agent

Knowledge is Key to the Right Business Insurance Protection

For more information about commercial liability insurance, contact American Insuring Group at (800)947-1270 or (610)775-3848. We'll help you get the right business insurance protection at the right price using our pool of competing insurance providers. Contact us today.

You say you have good business insurance, and that you've taken the time to obtain the right workers compensation insurance protection for your employees and your business. Good for you!

But, have you taken all the proper precautions to protect your construction workers or other employees from asbestos exposure? Doing so is the right thing to do for their protection, and over time it could also lower your workers compensation insurance costs.

What is Asbestos?

Asbestos is a naturally occurring mineral-based material that is widely used in many building products because it is resistant to heat and corrosive chemicals and does not conduct electricity. Asbestos fibers are very fine and can remain suspended in the air for hours. Asbestos comes in all shapes, sizes, and colors, and it’s extremely difficult to see. 

Asbestos that is in good condition and undisturbed is safe, but scientists have confirmed that when asbestos materials start to rot or are disturbed by cutting, scraping, drilling, or sanding, toxic fibers are released into the air.  Once breathed in, these tiny fibers (1,200 times thinner than a human hair) can get trapped in the lungs and remain there for a long time.  As these fibers accumulate, they cause scarring and inflammation, which can affect breathing and cause significant health problems.

Asbestos has been classified as a carcinogen (cancer-causing substance).  Continued exposure to asbestos can cause mesothelioma (a cancer that affects the membranes lining the lungs and abdomen), asbestosis (scarring of the lungs, which causes a loss of lung function that often progresses to disability and death), lung cancer, pleural plaques, and cancers of the esophagus, stomach, colon, and rectum. 

Often, the symptoms don’t appear until many years after the first exposure (20-50 years is the average gap).  Even short-term exposure to a significant amount of asbestos can lead to breathing problems, coughing, and shortness of breath.  And, there is evidence that family members of workers heavily exposed to asbestos face an increased risk of developing mesothelioma, as a result of exposure to asbestos fibers brought into the home on the shoes, clothing, skin, and hair of workers. According to the World Health Organization, 43,000 people die annually from asbestos (10,000 Americans).

Banned in 55 Counties

Asbestos has been banned in 55 countries.  Its use is restricted in the U.S. (asbestos must account for less than 1 percent of the product.), but it has not been banned.  Two million metric tons of the substance are produced every year worldwide. Many U.S. companies have phased out most products that contain asbestos; however, asbestos building materials still exist at many jobsites – especially homes and commercial buildings built before the 1970’s.  In 1989, the U.S. Environmental Protection Agency (EPA) banned all new uses of asbestos; however, uses developed before 1989 are still allowed.  

Why Construction Workers are at Risk:

Everyone is exposed to asbestos at some time during their life.  Low levels of asbestos are present in the air, water, and soil.  However, most people don’t become ill from their exposure.  People who become ill from asbestos are usually those who are exposed to it on a regular basis. 

Throughout the twentieth century, asbestos was incorporated into thousands of construction products, including fire retardant coatings, concrete and cement, bricks, pipes, gaskets, insulations, drywall, flooring, roofing, joint compound, paints, and sealants. Asbestos is a serious risk for construction workers of any trade.  Demolition workers who unsafely dispose of asbestos experience some of the highest risks.  Roofers, electricians, drywall workers, painters, plumbers, and laborers all face regular exposures, but anyone working on an older structure should be cautious of asbestos.

According the National Institute for Occupational Safety and Health, nearly one-quarter of worker deaths caused by asbestosis between the years 1990-1999 were in the construction trades, by far the most dangerous industry in terms of asbestos exposure.

If your employees perform any of the following tasks, they are at risk of breathing asbestos fibers:

• Cut, drill, sand, or otherwise disturb textured wall/ceiling material or drywall that contains asbestos
• Collect asbestos samples for laboratory analysis
• Remove or repair pipe insulation that contains asbestos
• Strip electrical wiring that contains asbestos insulation
• Remove ceiling tiles that contain asbestos
• Drag cable or wiring through asbestos-containing vermiculite insulation or ceiling tiles, or through asbestos-cement conduit
• Remove vinyl floor tiles or linoleum that contains asbestos
• Demolish concrete block that contains asbestos-containing vermiculite insulation
• Remove asbestos-containing asphalt roofing materials

How Can You Protect Your Employees from Asbestos?

• Read and understand the U.S. Occupational Safety and Health Administration (OSHA) regulations covering asbestos exposure in general industry and construction www.osha.gov/SLTC/asbestos
• Train employees who will be working with and around asbestos, including
  • How to recognize asbestos-containing materials http://www.hse.gov.uk/asbestos/gallery.htm
  • Awareness of the health hazards of asbestos
  • Proper use of personal protective equipment
  • Proper handling, removal, and disposal of asbestos
  • Develop and implement an exposure control plan for asbestos work
  • Have qualified people conduct risk assessments for any asbestos-containing materials that might be disturbed
  • Ventilate workspaces
  • Monitor employees for asbestos exposure levels
  • Keep warning signs and instructions in areas where asbestos-related work is performed
  • Require protective clothing, such as overall, gloves, foot coverings, face shields, and goggles.
  • Use protective equipment , such as respirators
  • Supply shower facilities and other post-exposure precautions
  • Require medical examinations for workers who are exposed to high levels of asbestos

Having the Right Health Insurance and Worker's Comp Insurance Pays Off

If one of your employees still becomes ill from exposure to asbestos while working for you, the right insurance – both liability, health, and workers’ compensation insurance – will help ensure the best care with the least financial impact. 

We're Here to Help

To determine your business insurance needs, contact American Insuring Group at (800)947-1270 or (610)775-3848.  We're independent insurance agents who offer insurance from over 25 competing brands. We’ll make sure you have the right coverage for your business at the right price. Contact us today.

The inability to get the right care, from the right provider, at the right time is one of the leading causes of increasing medical costs. 

Every business should complete its due diligence by taking the time to set up a network of medical providers and develop strong relationships with pharmacies to deliver quality care at reasonable prices to its employees. 

But if their employees aren’t taking advantage of those relationships, much of the opportunity for cost savings is lost. 

Better Communication = Lower Workers Comp Costs

This is especially true of employees who are injured on the job and utilizing workers’ compensation.  Too often, medical information is not being communicated properly, which can result in delays of medical treatment, increased absenteeism, duplication of medical services, and other inefficiencies, causing higher workers’ compensation costs for employers.  As medical costs - and nearly every other expense - continue to rise, it’s more important than ever to direct employees to preferred provider networks that provide the highest-quality and most cost-effective care.

Using Web-Based Communication Platforms to Reduce Workers Compensation Costs

One solution is to use a web-based communication platform such as the the Health Ticket. Such systems can include a virtual ID card that transmits all the relevant information – such as employer and employee names, date of injury, nature of injury, and the name of ancillary network vendors and contact information - to medical providers. Helpful information can be provided to the injured employee, such as participating pharmacies, phone numbers for additional medical providers, and network identification numbers.

The patient is able to access all the medical information he needs to find a provider via smart phone.  He can also print out a single page that details his health benefits, co-payments and deductibles.  He is also alerted if he is seeking care from a provider outside his plan’s provider network and how that will affect him financially.

Systems like The Health Ticket can communicate critical information while reducing costs. By providing real-time, accurate information about complex healthcare transactions, the Health Ticket helps guide injured workers through the preferred pathway of care.

What Can Web Based Communication Platforms Do For Your Business?

• Increase PPO network penetration

• Reduce claim costs by avoiding unnecessary or duplicate medical treatments.

• Maintain compliance with ever-changing regulatory environments and PPO contracts. 

• Contain costs by reducing billing errors, administrative costs, and out-of-network usage. 

• Improve the quality of care coordination and employee satisfaction.

• Reduce confusion over benefits and claims.

Contact Us for Workers Compensation Insurance Assistance

For more information about saving on workers compensation insurance, contact American Insuring Group at (800)947-1270 or (610)775-3848.

Did you recently get married?  Have you started thinking about having children?  Are you already pregnant?  Congratulations!  This is a very exciting time in your life! 

Next question…Have you thought about life insurance?  Your life insurance needs will probably change significantly once your baby is born.  The task of regular feedings and diaper changes will probably have you struggling to sneak in some shut-eye, and I can pretty much guarantee that preparing for the "what-ifs" in life will move to the bottom of your to-do list.  

Whether you become a stay-at-home mom or work outside the home, it’s important that you plan for the “what if” something were to happen to you.  Life insurance helps ensure that your child can be properly cared for and that your family doesn’t face financial hardship.

Can Pregnancy Affect Life Insurance?

Sounds like a crazy question, right?  Pregnancy isn’t a disease; it’s the way children have been brought into the world since the beginning of time. 

In the vast majority of cases, pregnancy has no effect what-so-ever on life insurance rates.  If it’s early in your pregnancy and there are no medical complications, your life insurance should be unaffected. 

However, on rare occasions, pregnancy can affect your policy rate and/or your ability to obtain life insurance.  If you’re farther along and there are medical issues, some insurance companies may force you to wait until after your child is born to purchase life insurance. 

Life Insurance Risk Factors During Pregnancy

The most common medical issue for pregnant women is gestational diabetes.  Between 3 and 10 % of all pregnant women experience gestational diabetes at some point during their pregnancy.  While this issue usually disappears upon the birth of the baby, there are instances when it can lead to other forms of diabetes, such as type I or type II diabetes. 

Another risk is if the mother gains excessive weight during her pregnancy.  This can cause preeclampsia, which can affect the liver, kidney, and even brain function.  If she is unable to lose the excessive weight after childbirth, she can develop other conditions, such as high blood pressure, that can also affect insurance premiums. 

In some cases it makes sense to wait to apply for life insurance until well after the delivery so the new mom has time to deal with the after effects of pregnancy.  The lower premium rates will allow her to save money and/or enable her to buy a larger amount of life insurance.

This is fine if you already have a life insurance policy in place.  If not, you could have inadequate coverage, leaving your family vulnerable to financial hardship.  Therefore, we recommend that you look at your life insurance needs prior to planning for a family. 

Term vs Permanent Life Insurance

Term life insurance costs less than permanent, making it more affordable for young families who may not have a lot of disposable income, but if you live beyond the period of the policy, you and your beneficiaries receive nothing.  Permanent insurance (often referred to as whole life insurance) is more expensive initially, but it will provide lifelong coverage and a cash accumulation feature, which can help supplement your retirement plan.  

Sometimes, the best solution is a combination of both term and permanent life insurance.  The term policy can give you extra coverage during the years when the children are at home and the permanent policy can provide life-long coverage.

How Much Life Insurance Should I Purchase?

Both working and stay-at-home moms need life insurance.  While a stay-at-home mom may not contribute an income, it would be expensive to replace all the things she does if something were to happen to her.  If the income that a working mother contributes is important to the family financially, she needs to replace that income if something were to happen to her.

Don’t be tricked into thinking the group insurance you have through your employer is adequate coverage.  Usually, that coverage is given in a lump sum of money – maybe $50,000.  That may sound like a lot, but think about how long that money would actually last.   Plus, if you leave that employer, the policy is normally terminated.

Estimating Your Life Insurance Needs 

For an estimate of your life insurance needs, check out this life insurance calculator.

Then contact American Insuring Group at (800) 947-1270 or (610) 775-3848. We're independent life insurance agents offering a variety of life insurance plans from many competing companies, so we're free to find you the best deal on the right life insurance protection to meet your specific needs. Contact us today.

Fraud, waste, and abuse continue to drive up the cost of administering workers’ compensation programs. Workers’ compensation fraud, which accounts for approximately one-quarter of all insurance fraud, comes in all forms: injury while off work, multiple claims, injury concurrent with termination, and many more. 

Workers comp insurance fraud is a crime. Tens of billions of dollars in false claims and unpaid premiums are stolen every year.  Scams are increasing the cost of insurance premiums — draining business profits and costing honest workers their pay and their jobs.  In addition, these increasing costs are being passed on to you as a consumer with higher prices at the cash register.

Medical Records Investigations: Cost Effective Sleuthing to Cut Workers Comp Insurance Costs

Aggressive pursuit and investigation of fraud can help lower the financial impact of workers’ compensation on businesses. If you’re willing to do a little sleuthing, there is one interesting method of reducing workers’ compensation fraud in your business - the use of medical records for investigation.  This method is often more cost-effective and less expensive than many of the more formal investigative tools.

Where should you look?

There are a few things to consider if you decide to use medical records to investigate a workers’ compensation insurance claim. 

1. Start at the beginning. Using this investigative technique at the onset of a claim allows you to better monitor treatment trends and develop a better understanding of the case.  It’s important that you get ahead of the case before it becomes too complicated.
    
2. Start with primary care providers.  Records from a primary care provider will often provide a good overview of a person’s health, including yearly physicals. 
    
3. Don’t overlook urgent care clinics.  In addition to checking the records of your local emergency rooms, you should also take a look at urgent care facilities in the vicinity of where the claimant both lives and works.  Urgent care facilities are on the rise.  They provide a more affordable option to health care for people who don’t have medical insurance, and they offer access to medical treatment for injuries that occur after hours or on the weekend.
    
4. Look at other medical facilities.  In today’s health care environment, proper treatment often requires a visit to a specialist.  Specialists can also provide information about underlying conditions.

What should you look for?

Here are a few of the “red flags” you should look for in an investigation of medical records:

1. If a claimant receives medical care and/or treatment at more than one facility in one day.
    
2. If a claimant sought medical treatment on a Monday morning or after a holiday, it could indicate that an injury took place over the weekend or during a holiday – and not in the workplace.
    
3. If a claimant received treatment and/or referrals from providers that share common waiting rooms or are located in adjoining buildings.
    
4. If a claimant has a medical appointment while he or she is out of town or on vacation.
    
5. If a claimant receives medical care on a weekend, holiday, or during inclement weather.
    
6. Look for evidence that the medical records have been changed or altered, or if they aren’t consistent with what the primary doctor is recommending. 

Be Proactive and Increase the Odds of Cutting Your Workers Comp Insurance Costs!

Today, you need to be proactive if you want to limit the amount of fraud, waste, and abuse within your business’s workers’ compensation programs, and medical record investigation may be one method to consider for your business. 

For additional methods to reduce the cost of workers’ compensation, including getting the best rate on quality workers comp insurance, contact us at (800) 947-1270 or (610) 775-3848. We're independent agents with the power to lower your worker's comp insurance costs by offering policies from multiple competing insurance providers, so you'll get the best insurance at the best price.

Who needs commercial vehicle insurance?

If you own a fleet of vehicles that are used exclusively for your business or you own a freight truck or delivery truck, you probably understand that you need commercial vehicle insurance on those vehicles.  But what if you have one vehicle that you use to deliver pizzas?  What if you use your personal vehicle to drive to job sites or to meetings?

Any vehicle being used for business or commercial purposes is technically a commercial vehicle, which means it needs to be insured by a commercial vehicle insurance policy.  This includes any vehicle used for the pickup or delivery of goods and any vehicle used to transport people for business.

You may also need commercial vehicle insurance if your vehicle is…

• Registered or titled to a:
  • Business
  • Corporation
  • Partnership
  • Rented or leased by others
  • Equipped with:
    • Snowplowing equipment
    • Cooking or catering equipment
    • Bathrooms
    • Altered suspensions
    • Hydraulic lifts
    • Racing equipment

Bottom line: If you own or use any type of vehicle for business purposes, you need a good commercial auto insurance policy to protect yourself, your employees, and your business!

Commercial vs. Personal Car Insurance

It is true that the premiums for commercial vehicle insurance are generally higher than premiums for personal vehicle insurance, but there’s a very good reason for that - the risk of covering any vehicle used for business purposes is higher than the risk of covering cars used for personal purposes. This is the main reason car insurance policies for commercial purposes differ from personal policies.

Types of commercial auto insurance include:

• Business auto insurance
• Truck insurance
• Cargo insurance
• Pickup truck insurance
• Tow truck insurance
• Van insurance
• Dump truck insurance
• Non-owned/hired liability insurance

Many of the common types of personal car insurance coverage also apply to commercial auto insurance, such as:

• Bodily injury liability
• Property damage
• Comprehensive
• Collision
• Medical payments
• Personal injury protection (PIP)
• Uninsured/underinsured motorist

 But, commercial car insurance policies are better suited to cover:

• Your business and its assets
• Your employees or other drivers you hire to drive your company cars
• The higher risk of operating certain commercial vehicles

DON'T RISK IT!

If you carry a personal car insurance policy, and you file a claim for an incident that occurred while driving for business purposes, you may find that your car insurance company will not pay on that claim. A good commercial auto insurance plan can save you from a financial disaster, regardless of whether you're an independent contractor or the CEO of a multi-million dollar company.

How is my commercial vehicle insurance rate determined?

Your commercial auto insurance rate depends on several factors. These factors include, but are not limited to:

• Age and personal driving record of all drivers (driving history is one of the biggest factors in determining your rate)
• License type of all drivers
• Vehicle make and model including its safety rating, age, and history
• Type of cargo the vehicle carries
• Number of passengers the vehicle transports
• Annual mileage

The nature of your business and how your vehicles are used will also affect your rate.  As with personal vehicle insurance, the lower your risk, the higher your savings will be. Other factors include:

• The limits of your coverage
• Any optional coverage you purchased
• Your deductible
• Your credit history

The best way to determine if you need commercial vehicle insurance and what type of coverage is best for your business is to speak with an experienced independent insurance agent.  Call American Insuring Group at (800) 947-1270 or (610) 775-3848 or email us to learn more about commercial vehicle insurance.

Smart business owners know that insurance is important to protect their business and assets.  But, knowing which ones are right for your business can be a challenge.  No one wants to be caught without the right business insurance if something happens, and no one wants to pay for insurance that isn’t necessary. Here are six questions to ask to help determine what type of insurance you need to protect your business:

1.     Is it possible that someone could be injured or property damaged in the course of doing business with me?

If you answered yes, then you should consider Commercial Liability Insurance. Every business, even a home-based business, needs to look at liability insurance.  This type of policy provides insurance protection for bodily injury or property damage claims that you become legally responsible to pay. Standard policies include premises and operations risks that are common to the business owner or contractor. These policies also include product liability insurance and completed operations liability coverage. Medical payment insurance protection is also standard with most policies.

2.     Do I own a building or any business equipment or property – such as office equipment, inventory, or tools – to run my business?

If you answered yes, then you should consider Commercial Property Insurance. If you own a building or have business property  you should consider protecting those assets from fire, vandalism, theft, smoke damage, etc. with Commercial Property Insurance.  Expanded coverage often includes water damage, sewer back-up, business interruption insurance, and more. A tailored property insurance policy usually pays on a replacement cost basis, which means there is no depreciation in the event of a loss. 

3.     Could someone sue me based on the business that I conduct with them?

If you answered yes, then you should consider Professional Liability Insurance.  This insurance, also known Professional Indemnity Insurance, is a type of commercial insurance that provides protection for an Error and Omission Insurance exposure. This type of insurance protection typically covers negligence claims arising from an alleged act or failure to act that caused harm to another. Doctors, lawyers, and most professionals have some type of Error & Omission Insurance (Professional Liability Insurance) exposure. 

4.     Do I use any type of vehicle to run my business?

If you answered yes, then you should consider Commercial Vehicle Insurance.   This is an insurance that covers owned and non-owned vehicles that employees, contractors, and business owners use to conduct business.  The vehicle could be a truck, a van, a limo, or even a sedan, depending on what that vehicle is used for and what it is equipped with. Standard vehicle insurance coverage includes bodily injury and property damage liability, personal injury protection (including medical and lost wages expense), and uninsured and underinsured motorist coverage and physical damage to your vehicle including comprehensive and collision coverage. 

5.     Do I have any employees working for me?

If you answered yes, then you should consider Worker’s Compensation. Worker’s Compensation Insurance is a type of small business insurance that is mandatory in most states and covers employees for work-related injuries. A typical "workers comp" insurance policy pays lost wages and medical expenses incurred due to a work-related accident, while also protecting the employer against accident-related lawsuits. 

These five business insurance questions are a great starting point for any business owner, but you don’t need to go it alone.  The advice of a trusted and experienced independent insurance agent from American Insuring Group can help ensure that you obtain the right insurance at the right price for your business.  

Don't take a chance - contact us  at (800) 947-1270 or (610) 775-3848.

3 Construction Insurance Must-Haves

Whether you’re a subcontractor or a general contractor – whether you build small backyard sheds or giant commercial buildings – whether you’re a one-man remodeling business or a multi-million dollar construction company, there are three types of insurance you need to consider.  In other words, the size of your business and the size of the project make little difference.  If you want to protect your investment, your employees, and even your business, there are three types of commercial insurance to consider: Liability Insurance, Builders Risk Insurance, and Flood Insurance. 

Commercial Liability Insurance (A.k.a. Commercial General Business Liability Insurance)

Commercial Liability Insurance is a critical part of any business’s insurance portfolio and particularly pertinent in the construction industry where accidents and injuries are more common. Commercial Liability Insurance protects you and your company if someone gets hurt on your property or if you or an employee causes property damage or injury on a job site.  This insurance helps cover medical and legal defense costs and settlements if you are sued.  Extended litigation (including attorney fees and court costs) can quickly deplete your cash reserves - even if the claims are found to be unwarranted.  

The amount of liability insurance is proportionate to the cost of the project.  Generally, you should have coverage that is two to three times the amount of the construction project budget.  In addition, businesses with higher risk for damages, such as roofing contractors, may need higher coverage.

Before you begin to build, repair, or remodel any structure – even as a subcontractor - common business standards require that you provide evidence of liability insurance.  Adequate General Liability Insurance safeguards your business – even in today's litigious environment.

Builder’s Risk Insurance (A.k.a. Course of Construction Coverage)

Builder’s Risk Insurance (construction insurance) is property insurance that covers damage to a building during construction.  It may cover just the structure itself, or it can include materials, fixtures, and/or equipment being used in the construction or renovation of the building.  Lending and municipal authorities will often require this insurance, and it can apply to both new construction and remodeling projects.

Most Builder’s Risk Insurance policies cover damage caused by fire, wind, lightning, hail, theft, vandalism, and damages by aircraft and vehicles. Items that generally are not covered include damage due to earthquake, employee theft, water damage, and mechanical breakdown.  Damage resulting from faulty design, planning, workmanship, or materials is rarely covered, and it’s important to note that Builder’s Risk insurance doesn’t cover tools and equipment or the property of others (that’s why it’s important for sub-contractors to have their own insurance).

Flood Insurance

Flood insurance is typically covered by the National Flood Insurance Program and usually has a 30-day waiting period before entering its coverage period.  This is done so the insurance isn’t purchased only when a flood is expected. 

Flood insurance is required in high-risk areas and strongly recommended in moderate-to-low risk areas.  It normally covers damage caused by tidal waves, overflow of inland water, unusual accumulation of runoff water, and water exceeding normal levels. 

For more customized information about your construction insurance or contractor insurance needs, contact American Insuring Group at (800) 947-1270 or (610) 775-3848. We'll help get you the right coverage for your projects at the right price. That's because we're independent agents offering over 25 competing brands of insurance, so we're free to find you the best deal in quality insurance protection. Contact us today.