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How Much Commercial Insurance Protection Do You Need?

If you’re considering starting or have already established a business, you may be wondering, “Do I really need any special liability insurance for my business?”  Establishing and growing a business is hard work.  It’s an investment of time and money, and it’s important to protect that hard work against unforeseen circumstances.  Even though we may not want to think about it, like Forrest Gump said, “stuff” happens. Even if you work from home and think your home owner’s insurance covers you or if you’ve filed as an LLC to protect your assets, your business may not be as safe from catastrophic loss and possible bankruptcy as you think.

Business Insurance When You're Unable to Work

What if you become sick and can’t work?  What if one of your customers sues you?  What if a fire forces you to shut your business down for a period of time?  Have you thought about how you will protect your finances, your business, and your employees?  The right insurance can help protect these very important assets.  Here are four major categories of business insurance protection you, as a business owner, need to consider. 

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

Liability insurance helps protect your company if someone gets hurt on your property or if you or an employee causes property damage or injury.  Liability insurance also protects you as a tenant if you cause damage to a property you rent, and it covers claims of false or misleading advertising, including libel, slander, and copyright infringement.  This insurance helps cover medical and legal defense costs and settlements if you are successfully sued. 

Many small business owners can’t imagine ever being sued, but the fact is that we live in a very litigious society.  Liability insurance is a wise and affordable investment for any business.  It can be purchased individually or included as part of a Business Owner’s Policy (BOP) that combines liability and property insurance into one policy.  It’s a good idea to make sure you have enough liability coverage if you have a BOP. 

Umbrella Liability Insurance

Umbrella liability insurance is designed to protect your business against catastrophic losses that exceed the limits of other policies or for losses not covered by other policies.  Think of it as an upgrade to your existing business, homeowners, and auto insurance that goes above and beyond.

Business Interruption Insurance

Business interruption insurance helps protect against financial loss in the event that your business is prevented from generating revenue. It helps pay for operating costs (such as rent, utilities, and payroll) and lost profits if your business is forced to shut down for an extended period of time, such as during a natural disaster that either forces your business to close or requires repairs to be made to the property before business can resume.  Business interruption insurance can be added to your property insurance policy or purchased as part of a BOP.  

Overhead Insurance

Overhead insurance is designed to protect the operations of your business if you suffer from a major accident or illness and become unable to work.  Overhead insurance helps cover business expenses such as salaries, utilities, interest payments, insurance premiums, and rental payments.

Putting Together a Business Insurance Plan

You’ve worked hard to make your business a success.  Don’t let someone or something take it all away from you.  Take the necessary steps to protect it with the right business insurance.

Free Report: 7 Things You Must Know to Protect Your Businesss 

For more information, click here for our report, 7 Things You Must Know to Protect Your Business. 

Need help in figuring out the right level of insurance to properly protect your business? Call us today at (800) 947-1270 or (610) 775-3848 or Contact Us by email. We're independent agents representing over 25 brands of insurance. We'll find the right coverage at the right price to meet your needs.

It's obvious that having the right commercial property insurance is key to protecting your business against unforeseen risks. But have you taken practical steps to reduce the potential impact of storms, floods, earthquakes, or other natural disasters beyond obtaining insurance?

By combining the right property insurance with responsible disaster planning you greatly increase your odds of weathering a disaster with minimal loss to your business.

While reducing your business exposure to major disruptions from natural disasters takes careful planning, it is not necessarily expensive. Having solid plans can make the difference between days vs. weeks of serious business disruption and loss of income.

Here are some tips to help your business recover more quickly from a natural disaster:

Perform a Risk/Impact Analysis & Create a To-Do List

Begin by creating a list of natural disasters that could impact your business. Rank them from high to low in terms of likelihood, and then separately by the amount of impact (harm) they could have on your business. Next, identify what can be done to address the more likely ones first. Of the more likely ones, address them in order of the potential harm they could cause your business.

Example:
If your business is in a flood plain or low lying area then your exposure to flood or water damage will be greater than if you are located on high ground. If a flood were to occur, how much damage could be caused? How long would it take to recover? Do you have expensive electronic equipment on the first floor or basement? Could it be moved to the second floor? Could you alter the landscape in such a way as to divert water away from your building so as to avert damage?

Example:
Are you in an area susceptible to damaging high winds, hurricanes, or tornadoes? Could a heavy snowfall of a foot or more cause damage or leaks to your roof that could ruin equipment or force portions of your office or factory to become unusable for a period of time? 

Create a Disaster Emergency Plan

Your emergency plan may not have to be elaborate. Even a simple, well-thought-out plan can be of tremendous benefit when needed. Be sure that your employees know their part in the plan, and have easy access to the documentation (I.e., to the portion of the documentation that applies to them or to their department). Among other details, your plan should include:

• An evacuation plan and designated meeting location.
   
• A list of cell and home phone numbers of managers and key employees.
   
• A description of who is responsible for taking various actions, including identifying the point person(s) responsible for contacting the media, emergency personnel, key customers and suppliers, department heads, and employees.
   
• A data recovery plan (consider backing up all data on the cloud daily so it can be accessed remotely even if your internal computer system is destroyed). Identify and rank the key types of data in terms of importance to your business continuity.
   
• A description of how the business will perform certain key functions off site, including things that could be outsourced. Break it down by department (customer service, accounts payable, accounts receivable, production planning, manufacturing, distribution, I.T., etc.).
  
  

After you have completed the basic plan above, or at least an outline, consider contacting a disaster recovery specialist who can identify weaknesses in your plan, and suggest appropriate remedies.

Perform a Commercial Property Insurance Review

Your independent insurance agent can perform an insurance vulnerability analysis for all types of insurance coverage across your business that may be needed in the event of a natural disaster. This includes basic property insurance, business interruption insurance, spoilage insurance, inventory insurance, and other forms of expanded insurance coverage. Your level of coverage should not only be adequate for your current level of business, but also for the projected level of business to cover you properly until the date of the next scheduled insurance review (annual or otherwise).

Contact Us - We're Commercial Insurance Experts You Can Trust

When it comes to commercial property insurance and other types of business insurance, you can't do better than the independent agents at American Insuring Group. As independent agents, we work for you, not an insurance company. We'll identify the right combination of business insurance policies from many insurance carriers, and put together a plan that fits your needs and budget. See why more business owners in Philadelphia, Reading, Lancaster, York, Harrisburg, Allentown, Pittsburgh, Erie and beyond rely on us for all their commercial insurance needs.

Contact us today: (800) 977-1270 or (610) 775-3848

Dirty Harry Was Right About Disability Insurance

Clint Eastwood's Dirty Harry character could have been speaking about disability insurance when he said those famous words, "Do you feel lucky, punk? Well, do ya'?". Whether you are an employer looking to reduce the cost of disability insurance claims, or an individual looking for a better quality of life, it pays to work on reducing your exposure to the risk of being disabled.

The thing about the sage advice you are about to receive is that your grandmother or anyone with a gradeschool education probably could have figured this out. Nothing against grandmothers (they tend to be very wise after all), but this stuff isn't rocket science!

Let's take a look at the things employers should consider when developing employee incentives to reduce liability insurance claims, which are the same things individuals can do to become healthier and safer.

#1. Lose Weight. Do it Now. 

We may have started with the toughest item first, but getting down to a healthy weight is key to avoiding disabling diseases and accidents. Things like blood pressure, diabetes, heart failure, and the risk of falling increase dramatically as our weight gets out of control. Hey, you've been wanting to do this, right? Now you have some additional motivation. Think Nike: just do it (diet and exercise, that is).

#2. Throw Out the Cigarettes. And Cigars. And oh Yeah, the Pipe Too. 

Do you like coughing, wheezing, and shortness of breath? Does anyone really think it's worth polluting your lungs and bloodstream by smoking? According to the National Heart, Lung, and Blood Institute, the risks of smoking include:

• Thicker blood that carries less oxygen
• Increased blood pressure and heart rate (can you say "heart attack"?)
• Lowers good cholesterol, increases bad cholesterol
• Damages blood vessel walls (hey, they only carry the essence of life!)
• Increased inflammation leading to plaque buildup in your arteries (so you can help fund the drug companies with all that extra medicine you'll need!)

#3. Get Regular Checkups and Screenings.

#4. Drink Responsibly or Not at All. Wear Seatbelts.

#5. Take Care of Yourself. Avoid the Key Causes of Disability Insurance Claims.

Sage Advice

Get the Right Disability Insurance Protection

The Washington Post reported in April that federal workers compensation costs have roughly doubled since 1995, with 8.8 million Americans receiving disability benefits to the tune of $260 billion per year. Over a quarter $ trillion annually - that's a trully staggering figure.

The Post went on to claim that much of the increase may be due to the changing demographics of an aging population. Whether you buy that explanation or not, many employers fear that some employees are cheating on workers compensation insurance and staying away from work longer than legitimately needed.

Workers Comp 101: How Much Should You Trust Your Employees?

Let's face it, as with almost everything in life, things are seldom black and white. Seemingly good and honest employees sometimes do dishonest things when they feel threatened or insecure. Workers compensation can be an area where a good employee is tempted to stretch the limits of a workers compensation insurance package if your internal company policies are not balanced in such a way as to help keep the system honest and balanced.

Incentives and Disincentives to Return to Work: How Do Your Workers Comp Policies Stack Up?

Many view our national unemployment policies as lacking the common sense checks and balances required to filter out waste and abuse. Fair enough, but have you analyzed your own policies by the same yardstick? A well-balanced set of policies is one that properly provides for the needs of employees during a disability while also achieving the checks and balances that keep the system honest by removing disincentives to return to work, and removing incentives to stay out longer than legitimately needed. And that insurance principle applies as much for a small business as for a larger one.

Here are some things to consider when striving to keep your workers compensation policies properly balanced:

• How long will you hold a job open while an employee is out on disability? Is there a defined limit? Obviously a reasonable but limited time period should be the goal. In today's job market, fewer are willing to gamble with finding a new job should they exceed the period that their current position will be kept open for them.
  
  
• What percentage of an employee's salary is collected during a workers compensation event? If your policies are too generous then the incentive to stay off longer increases.
  
  
• Do you allow benefits to accrue while an employee is away from work? For example, will sick time and vacation time continue to accrue? If so, should the policy be changed?
  
  
• What about high-end benefits? If you offer special benefits such as a company car or other benefits directly related performing on the job, then consider placing them on hold until the employee returns to work.

A Workers Compensation Lesson from Ronald Reagan?

Regardless of your politics, President Ronald Reagan had a principle that served the US well in dealing with foreign policy, and one that President Barack Obama recently quoted: trust but verify. Yes, we would like to trust all employees to do the right thing when it comes to workers compensation insurance benefits. However, given that things are rarely black and white when it comes to human behavior, it is wise to craft your company polices in such a way as to verify that your hard-earned dollars spent on workers compensation costs are being wisely used and not wasted.

Need Help with Workers Compensation Insurance? 

We're here to help. We're an independent insurance agency with the resources to find the right workers comp insurance to meet your needs and budget. Click to contact us today to learn more, or call us at (800) 947-1270 or (610) 775-3848.

Considering the millions of dollars spent daily on TV commercials for single-brand insurance offerings, you would think that the independent insurance agent is a thing of the past. It's tough to go an hour on TV without seeing at least one commercial for AllState, Nationwide, GEICO, State Farm, or other single brand ("captive") insurance solution. That's because with few exceptions, only the big brands can afford to run national TV ads.

Bigger May Not be Better When it Comes to Insurance

Most people realize that big budget advertising does not necessarily equate with the best solution for all kinds of things in life. That's why, for example, many people avoid the pay-per-click ads found on search engines and instead click on the unpaid search results: they seek a high-quality answer to their search instead of one paid for by the competitor with the deepest pockets. In plain English, they don't want to be "spun" by the marketing machines behind the ads.

Let's apply the same thinking to an independent insurance agent vs. the mega-brands. Here are 4 reasons why an independent agent is likely to provide a superior personal or business insurance solution to satisfy your needs.

#1. Your Needs are Unique and Your Insurance Policy Should Fully Meet Your Needs

Insurance is complicated. It is difficult, if not impossible, for those outside the insurance industry to understand all the insurance options for meeting their needs. Only an independent insurance agent understands the pros and cons of each insurance company and their policy offerings as it pertains to protecting you against your unique combination of risks and liabilities.

#2. Independent Insurance Agents are a Valuable Advocate, and They Cost You Nothing

Your independent insurance agent will check multiple companies and insurance solutions in detail to arrive at the best combination of value, price, and insurance protection to properly and fully address your individual or business insurance needs. That can be very time-consuming, but that service typically costs you nothing.

#3. Your Independent Agent is a Single Source for All Your Insurance Needs

Insurance companies typically handle only certain types of insurance. However, your independent insurance agent handles insurance from multiple companies, thereby covering virtually any need, including business insurance, homeowners and car insurance, boat, RV, and motorcycle insurance, life and health insurance, umbrella insurance, pet and vacation insurance, workers compensation insurance, disability insurance, and virtually every kind of liability insurance to protect any type of business need. Being a single source with access to multiple insurance companies and solutions, your agent can create the best blend of policies to provide the right protection with minimal overlap and waste between and among your insurance policies.

#4. Unparalled Service

When you have an insurance question or need, your independent agent is there for you. You are not relegated to a faceless, nameless individual connected to an 800 number. Instead, you have the comfort and confidence of dealing with someone who you know, like, and trust for all your insurance needs. Think about it. Doesn't that kind of service and flexibility mean more to you than putting yourself in the hands of someone you don't know, and who offers only one solution or brand? 

We're Independent Insurance Agents, and We're Ready to Serve You

At American Insuring Group we pride ourselves in helping our customers not only save on insurance, but also in finding the right insurance protection. We'll put together a plan that will meet your needs, and we'll review your needs on a regular basis to see if it may be time to adjust your insurance to meet your changing needs, or to take advantage of better pricing that may become available as your needs change. Contact us today for a free consultation.

Too Busy to Assess Your Risk?

Many small business owners are so busy these days that they have little time to slow down and properly analyze their risks and business insurance needs.  And it’s no wonder. Small businesses from Reading PA in Berks County, to Philadelphia, Allentown, Lancaster, and all across the nation drive a significant portion of the country’s economic growth. However, they tend to be lean, which means the typical small business owner is wearing many hats and putting in long hours. Many are too busy to take the time to properly analyze risks, and to obtain adequate insurance protection to address the risks of their growing businesses.

Just How Big Can a Small Business Be?

Statistics available from the US Small Business Administration (www.sba.gov) indicate that small businesses employ more private sector personnel than mid-sized and large businesses combined.  In the US, small businesses are generally defined as manufacturing businesses with less than 250 employees, and non-manufacturing companies with under $7 million in annual receipts.

Engines of Economic Growth 

Small businesses are the engines of private sector economic growth, creating approximately 2/3 of new non-government jobs while generating over 40% of the private payroll in the US. Small businesses account for a similar proportion of total US high-tech jobs as well.

Questions Small Business Owners Must Ask to Determine Risk and the Right Level of Business Insurance Protection

Regardless of how busy you may be, busyness is no excuse for ignoring risks that could sink your business.  Here is a brief list of questions every business owner should answer as a first step in assessing risk and the need for stronger insurance protection:

• Disability Insurance:
  Who will run my business if I become disabled permanently or for an extended period? Will my company have the financial resources to pull through this type of crisis?
  
  
• Life Insurance:
  If I die will my business survive? Will my employees all lose their jobs? Will my family be able to keep our house and maintain a good lifestyle?
  
  
• Key Person Insurance:
  What if a person who is vital to my business dies or becomes permanently disabled? Will my business have the financial resources to survive until a new person can be found, hired and fully trained, or will it set me back several years?
  
  
• Workers Compensation Insurance:
  Are my employees properly classified for workers compensation insurance? Could my business survive a workers compensation insurance audit without undergoing major penalties for misclassifying employees? Is my workers compensation insurance coverage fully up to date to reflect my changing business needs and the expanded types of positions my employees currently hold?
  
  
• Property Insurance and Business Interruption Insurance:
  Are my buildings, equipment, and other business property insured against the full range of potential risks? In the event of a claim that disrupts my cash flow for a prolonged period, will I receive compensation for the loss of income during that time, or merely for the cost of the damage to my business property?
  
  
• Professional Liability Insurance:
  Am I covered if an employee were to cause harm to a customer or to their business, and a court found it to be due to negligence? How vulnerable is my business to various types of lawsuits?

Be Smart – Be Informed on Business Insurance

Our staff can properly address these and other business insurance questions. We’re a Trusted Choice independent insurance agency. That means we offer a range of business insurance plans from competing insurance companies. We’re well positioned to find the right business insurance coverage at a significant savings.

Contact us today at 610-775-3848, or click to Contact Us online.

Among the Most Destructive Storms In US History

Hurricane Sandy was one of the most destructive and deadliest hurricanes in United States history. Twenty-four American states and seven other countries were affected. Coastal towns once pulsing with beachcombers by day and clubbers by night were submerged within hours. Businesses were out of operation for much longer than ever anticipated and the damages sustained were astronomical.

Catastrophes of this magnitude are rarely expected, even in the world of insurance. Sewers backed up. Equipment broke. Food spoiled. Power was lost. In the aftermath of Hurricane Sandy we discovered insurance protection that proved critical for restaurant owners, including: sewer backup, equipment breakdown, food contamination, and loss of sales/ loss of income due to extended power outages.

Insuring Against Sewer Backup

We all know the quote from Jumanji: “A little rain never hurt anybody…but a lot can kill.” Well, a lot of rain can kill your sewer system. When more rain pours down than your sewer and pump can handle, raw sewage backs up and escapes in some less-desirable places, such as the bathroom faucet - need we say more? Unfortunately, most people do not realize that sewer backup is generally not covered under their personal or business insurance policies. This additional coverage is not only recommended, but can be invaluable to your business.

Equipment Breakdown

Equipment breakdown coverage is usually considered “optional” on an insurance policy. If just one of the primary machines in your restaurant breaks down, such as the air conditioner or water heater, you are probably not covered for fixing the equipment or for the loss of income sustained due to the failure. Be sure you are covered if 100 degree temperatures inside your restaurant due to an air conditioner failure turn away potential customers. 

Food Contamination

No matter how diligent you and your employees are, food contamination and food spoilage can strike anyone in the restaurant industry. If a machine breaks or your power goes out temporarily and food spoils, you will be held personally liable for the expenses incurred unless you are insured for this type of event.

Insuring Against Loss of Sales/ Loss of Income from a Power Outage

Hurricane Sandy not only flooded businesses, but also caused large-scale power outages. Is your restaurant covered for business income losses due to loss of power? There is a good chance the answer is no. Unless you have a best friend who sells generators and you specialize in candle-light dinners, power loss is never good. When power loss equates with income loss, you want to be sure you are covered.

Learn from Hurricane Sandy:
Get the Right Restaurant Insurance Protection

We all hope and pray that a disaster of this magnitude never again strikes our land and our loved ones. Yet, as we in the insurance industry know all too well, you can never be too prepared. As restaurant owners, it should be easy to grasp the importance of insuring against these four risks that Hurricane Sandy uncovered.

Peace of Mind and Protection from Uncertainty

By being properly insured, you will be protected if the big rainfall that surpasses the five-inch prediction causes your sewer to back up. If storm winds topple the power lines down the street and you aren’t prepared to play Pioneer Days with your customers, you will be covered. If your employee mistakenly undercooks the chicken for your famous chicken piccata dish, you will be covered. If your air conditioner works overtime and decides to take a siesta for a day, you will be covered.

Play it smart: contact us today to be certain that your restaurant business is fully insured! 

(610) 947-1270

It's Not Just About the Midwest

Wind storms and hail are known for causing severe damage to private property throughout the U.S.  Although hail damage is more frequent throughout the Midwest and Great Plains states, the mid-Atlantic and Northeast regions are also surprisingly susceptible.

$3.9 Billion for State Farm Alone

According to State Farm, its 2012 wind and hail damage insurance claims cost the company and those insured over $3.9 billion combined.  To view a series of photos showing examples of wind and hail damage for each of the states above, click here. 

Are You Covered for Wind and Hail Damage?

Is your homeowner’s or commercial property insurance properly protecting you from the risks of damage due to wind, hail, and other forces of nature? Contact us today for an insurance check up.

Have you recently started a new business, or perhaps suddenly come to the realization that your personal vehicle insurance may not fully protect you when using your car, van, or truck for business purposes? 

Commercial Vehicle Insurance Coverage Differs by Company

Although each insurance company has different guidelines for determining to what extent your personal vehicle may be insured when used for commercial purposes, it is nonetheless risky to assume your personal vehicle will be properly covered, if it is covered at all. Rather than taking chances, consult an independent insurance agent to learn the details of your coverage, and to select the best insurance company and policy to meet your commercial insurance needs.

How to Know if Your Vehicle Use is Commercial or Personal

The most obvious indicator that you are using your vehicle for business purposes occurs when you are using your car, van, truck, or other vehicle to transport merchandise or people, or to perform services for a fee.

For example, if you are using your vehicle to:

• Deliver flowers or restaurant food, such as pizza or other food items
• Perform landscaping services, such as delivering workers and/or materials
• Perform snow removal services
• Tow a trailer used for business purposes
• Travel to customers for sales calls or to perform consulting services 

Who is Covered Under a Commercial Vehicle Insurance Policy?

Unlike a personal policy, commercial vehicle policies allow you to cover any of your employees when your vehicle is used for business purposes. If your vehicle is driven by employees, that’s a sure sign that you need a commercial policy. Likewise, if your vehicle is owned under a corporate partnership, or used to haul heavy equipment, or to make deliveries requiring federal or state filings, then you definitely need commercial vehicle insurance protection.

Amount of Vehicle Insurance You Need for Business vs. Personal Use

Commercial vehicle insurance policies generally provide greater protection than personal policies, with higher liability limits. However, it’s very important to make sure you are fully protected for both business and personal use if your vehicle is used for both.

Don’t Take Chances!

By now we hope you are thoroughly convinced that it is not worth taking chances with your commercial vehicle insurance coverage. Whether you hail from a larger city like Philadelphia or Allentown, or smaller areas like Reading or Lancaster, you need the right insurance protection. Please don't take chances with your future.

To learn more about commercial insurance for your car, van, truck, or commercial fleet, click here.  Or, contact us online. You may also reach us at (610) 775-3848. We’re independent insurance agents who stand ready to help you find the insurance protection that’s right for you, your budget, and your business.

If you are a landlord and you have tenants leasing your commercial property, you may want to take a second look at your lease agreement.  You may also want to review your landlord insurance policy to make certain the two are in harmony. Failing to do so may result in unexpected costs, lack of insurance protection, or coinsurance hassles in the event of a claim.

Whose Commercial Insurance Policy Pays for Damage to Improvements?

As the owner of a commercial building, any permanent upgrades made to your property by a tenant become your property, not the tenant’s property. This may seem obvious, but consider the impact should damage be done to such improvements during the tenant’s leasing period. Whose insurance will pay for the repair or replacement cost?  Will either insurance policy pay? Will both pay? Can you live with the uncertainty of not knowing?

Getting it Right When You Craft the Lease Agreement

As a commercial property owner, you should clearly define who is liable for replacing or repairing permanent improvements and upgrades that become damaged. Even though the tenant’s commercial insurance policy normally covers damage to permanent improvements made by the tenant, it may be unwise to put the responsibility exclusively on the tenant.  Here’s why: if the owner takes responsibility then he can include the value of the improvements in the policy limit, thereby avoiding coinsurance penalties.

Did Your Tenant Opt Out of Insuring Permanent Improvements?

If the tenant does not want to insure the improvements, he can exclude such coverage via an Additional Property Not Covered endorsement. Furthermore, it is possible that even though the tenant has insurance for improvements, he may be underinsured.  Finally, if your lease has an early termination provision allowing the owner to cancel the lease if the building is significantly damaged, then the tenant’s policy will not cover the loss.

Ignorance is Dangerous When it comes to Commercial Property Insurance

The scenarios above should make it clear that ignorance of the details of your lease agreement and your commercial insurance policy can be dangerous to your financial health.  The two should be in harmony, especially when it comes to covering permanent improvements made by the tenant. 

Please call us at (610) 775-3838 if  you would like help in obtaining the proper landlord insurance protection for your rented commercial property.