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Imagine: you’ve just finished one of the most successful sales in your store’s history. As you’re closing and preparing to take your receipts to the bank for deposit, an armed robber confronts you and leaves with all of your cash. All of your hard work and thousands of dollars leave with him.

After the shock of the armed robbery subsides, you wonder if the loss is covered by your commercial property insurance policy. Unfortunately, if your policy does not include Money and Securities coverage, the answer is no. 

What is included in money and securities insurance coverage?

Money refers to currency, coins and bank notes but also includes regular checks, traveler’s checks, and money orders. Securities are instruments or contracts that represent money or property. Examples of securities are certificates of deposit, tickets, tokens and stamps. These would likely be excluded on a typical commercial property policy. So, if you own or operate a business in which you handle a significant amount of money each day, Money and Securities coverage is vital.

Money and securities coverage: inside and outside the premises

Inside coverage applies to loss of money and securities that occurs within your premises or a bank. Loss must result directly from theft committed by someone who is inside your business or the bank. The loss must result directly from disappearance or destruction.

Some examples:

• A customer in your store steals cash and money orders from a cash drawer
• A thief breaks into your office, smashes open a safe, and steals $5,000 in cash
• A fire in your bank destroys a safe deposit box you rent that contains $1,000

In the second example, both the damage to the safe and the loss of cash would be covered by a commercial property insurance policy with inside coverage. Vaults, cash registers, cash boxes and cash drawers located inside the premises would also be covered if damaged or stolen.

Outside coverage applies to money and securities that are lost outside your premises. The loss must occur while the items are in the custody of a messenger or an armored motor vehicle company. In addition, the loss must result directly from theft, disappearance or destruction. Messengers are any employees that have care and custody of property outside the premises. This also means you, a relative of yours, or any of your partners. 

Some examples of outside coverage:

• An employee of yours is mugged on the way to your bank to deposit $5,000 in cash. The mugger gets away with the cash.
• One of your partners is robbed of a company laptop after leaving his office. The loss of the laptop, but not the loss of programs and data on the laptop, will be covered.
• Two armored car drivers are entering their truck when they are ordered out of the vehicle by three armed robbers. The robbers drive off with the truck, which contains $10,000 of your money.

This coverage also applies to loss of or damage to other property outside the premises in the care and custody of a messenger or an armored vehicle company resulting directly from an actual or attempted robbery. Other property means property other than money or securities, not including computer programs or electronic data.

Exclusions to Money and Security Insurance Coverage

Money and Security coverage does not apply to losses resulting from theft by you, your company principles, or your employees. Thefts committed by employees can be insured under separate Employee Theft Coverage. Also excluded are losses resulting from voluntary parting with property or any money operated devices.

Contact Us for Help with Money and Securities Coverage Within a Commercial Property Insurance Policy

You’ve worked hard to make your business successful. Be sure to protect it thoroughly by including Money and Securities coverage. Contact us online or give us a call at (800) 947-1270 or (610) 775-3848 for more details.

Problems can occur when workers covered by Medicare Advantage Plans sustain workers compensation injuries and use the plan to pay for medical care.    

Congress created the original Medicare program (Parts A and B) in 1965. It was designed to offer older and disabled Americans access to affordable health insurance. With the Balanced Budget Act of 1997, Medicare Part C was born with the intention of giving beneficiaries a choice: opt for original Medicare or choose the newly created Part C plans, better known as Medicare Advantage Plans (MAP).

These plans, with coverage provided by private insurers, cover all Medicare services and offer additional benefits such as prescription coverage, dental, and vision. However, problems can occur when workers covered by these plans sustain workers’ compensation injuries and use the plan to pay for medical care.    

Medicare and Workers' Compensation Insurance

If a worker is receiving Medicare benefits and is hurt on the job, workers’ compensation insurance (WC) is the primary payer. An insurer or workers’ compensation plan cannot, by contract or otherwise, supersede federal law--for instance by alleging its coverage is supplemental to Medicare.

WC is always the primary payer for Medicare beneficiaries’ work-related illnesses or injuries, and Medicare beneficiaries are required to apply for all applicable WC benefits. If a Medicare beneficiary has WC coverage, providers, physicians, and other suppliers must bill WC first.

In situations in which Medicare has paid for WC-claim-related care before the beneficiary has obtained a settlement, judgment, award, or other payment, those Medicare payments are referred to as “conditional payments.” They are considered conditional payments because Medicare pays under the condition that it is reimbursed when the beneficiary gets a WC settlement, judgment, award, or other payment.

Do Medicare Advantage Plans have the same right of recovery as original Medicare?

This an evolving issue in the courts, and it continues to be discussed and debated. Courts have ruled both ways on this issue. Here are some examples:

• In a Third U.S. Circuit Court of Appeals case in 2013, Humana Insurance Company, a MAP, demanded reimbursement from GlaxoSmithKline for payments Humana had made. The Court held that Medicare Secondary Payer regulations “unambiguously provide[s] Humana with a private cause of action.” Consequently, Humana’s payments were subject to reimbursement.
  
  
• The U.S. Supreme Court subsequently denied Glaxo’s petition for review, supporting the argument that MAP’s have the same right of recovery as does traditional Medicare—at least in the Third Circuit Court jurisdiction, which is New Jersey, Delaware, Pennsylvania, and the U.S. Virgin Islands.
  
  
• Later in 2013, a Ninth U.S. Circuit Court of Appeals case ruled the other way. Here, the Ninth Circuit Court of Appeals held that a Medicare Part C Plan--PacifiCare of Arizona--did not have the right, under federal law, to pursue a reimbursement claim.
  
  
• In a recent case in Florida, Humana Insurance Company sued Western Heritage for recovery of double damages. Humana argued that as a MAP they have the same right of recovery as does traditional Medicare, including recovery of double damages. The District Court ruled in Humana’s favor.

Recent rulings have created some uncertainty for employers

There is still uncertainty among insurers and employers when settling cases with Medicare beneficiaries who have ever received benefits from a MAP. Claim management departments need to consider the recovery rights of MAP’s when settling claims. The logical starting point would involve confirming the type of Medicare coverage at issue. Determine if the claimant is a beneficiary under traditional Medicare or under a MA plan.

We Can Help

For help meeting your compliance obligations, or to obtain quality worker's comp insurance at the right price, call us at (800) 947-1270 or (610) 775-3848 or contact us onlilne.

Return-To-Work programs are instrumental in enticing employees out on a workers’ compensation claim to come back to work. Many employers struggle to manage and fill the void that is left behind when a worker is out; however, a solid Return-To-Work program will encourage employees to return to work quickly (once they are cleared to do so by a medical professional of-course), thereby contributing to lower workers compensation insurance costs.

It is extremely important that the return-to-work program is well-known and understood throughout the company. It needs to be an indispensable part of the corporate culture understood by owners, managers, and employees. If you want employees to return quickly and efficiently, it needs to be a system that everyone can follow and understand.

Five Essential Elements of a Successful Return-To-Work Program:

#1) Offer employees a transitional position

Present them with a temporary job that will ease them back into the workplace while still making them feel as though they are making a difference. If their job usually requires heavy lifting, consider offering a light-duty job instead. Make sure the job makes sense for both the employee and the company, otherwise you run the risk of further loss.

#2) Make the cost of workers’ compensation very clear to all employees

Each employee, regardless of their current position, should understand how expensive workers’ compensation claims are and how it affects the organization. Most employees have absolutely no idea that companies pay a large deductible each time an employee goes out on a claim and assume the insurance company is the only one paying. Employees may feel differently if they know it is coming directly from their employer’s pocket!

#3) Remain in constant contact with the employee

Never underestimate the power of a “get well” card! There will be many outside sources, such as friends, families, lawyers, etc., trying to tell your employee what to do. Make sure you call to check in with them frequently and keep them posted on any updates or changes within the company. In most states, the company is able to direct medical care for an employee as well, which allows them to check-in with healthcare professionals to ensure that the employee is following protocol and is not being dishonest about their care or their return to work date.

#4) Make necessary arrangements to “speed up” return time, if possible within four days

90% of all workers out on a workers’ compensation claim can return back to work within four days. Whether they are returning to a transitional job or their actual position, the quicker they return to the workplace, the less expensive it is for the employer. These four days are considered the waiting period and if you bring an employee back before the waiting period ends, the company’s workers’ compensation company may not have to pay indemnity or lost wage payments, which in turn saves the company from having to pay the claim deductible.

#5) Keep employees updated on company “happenings” while they are out

One of the keys to keeping the cost of workers’ compensation in check, is to get employees back into their position as quickly as possible. This doesn’t happen by accident; it’s important for companies to take a proactive approach.

We'll Help You Save on Workers Compensation Insurance

For more information about saving on workers’ compensation costs, contact us online or give our experienced agents a call at (800) 947-1270 or (610) 775-3848. 

Hearing loss may be a compensable work injury leading to increased workers compensation insurance costs. Taking steps to reduce the risk of hearing loss is easier than you might think.

Loud noises in the workplace can damage your employees’ hearing. It’s estimated that 22 million workers are exposed to potentially hazardous noise levels at work. The National Institute for Occupational Safety and Health (NIOSH) recommends that workers should not be exposed to noise at a level that amounts to more than 85 decibels for 8 hours. In an effort to create a safer workplace by reducing noise levels, NIOSH suggests an approach that implements controls based on a hierarchy of effectiveness.

Control Workers Comp Premiums by Adopting the Hierarchy of Hazard Controls

Occupational health and safety professionals apply the following actions, listed from most effective to least effective, to reduce or remove a noise hazard:

1. Elimination: Physically remove the hazard
2. Substitution: Replace the hazard
3. Engineering Controls: Isolate workers from the hazard
4. Administrative Controls: Change the way employees work
5. Personal Protective Equipment: Protect workers with special clothing and equipment

Low-Noise Tools

Purchasing low-noise tools and machinery, reducing vibration where possible, providing barriers to isolate workers or loud equipment, and maintaining machinery with proper lubrication are effective methods for reducing noise in the workplace.

In addition, the Occupational Safety and Health Administration (OSHA) requires employers in general industry to maintain a hearing conservation program whenever noise exposure meets or exceeds the eight hour time-weighted average of 85 decibels. Baseline and annual audiograms, employee training, and hearing protection must all be included in the program.

But even with controls and programs in place to eliminate or reduce noise hazard on the job, some employees will experience work-related hearing loss resulting in a compensable work injury resulting in a workers compensation insurance claim.

Hearing loss may be a compensable work injury

The Workers’ Compensation Act provides for benefits for loss of hearing related to exposure to noise while at work, and it’s estimated that $242 million is spent annually on workers’ compensation for hearing loss disabilities.

While most states recognize hearing loss as compensable, the specifics of the law may vary (for instance, in some states the employee must have hearing loss of at least ten percent in both ears in order to be entitled to benefits). The employee must be evaluated by a physician who specializes in hearing problems to determine the percentage of hearing loss, and the worker must show that there was exposure to hazardous noise in the workplace.

The difficulty for any workers’ compensation adjuster will be determining what portion of hearing loss is work-related and what part of the loss is age-related or is due to non-work related activities (shooting a gun for sport or using a chainsaw on weekends). Another issue that the adjuster may face is finding a previous audiogram from which to compare the present test to get a true measure of hearing loss.

Protect your business against hearing loss claims

There are steps that employers can take to eliminate or reduce the size of a hearing loss workers comp claim, and in the process lower your long-term workers compensation insurance costs:

• New employees who will be exposed to excessive noise should have an audiogram completed as part their hiring requirements. This will provide the baseline for any future hearing loss claim.
• Do a risk assessment by having the decibel level of your plant checked. Any noise level above 85 decibels can then be addressed.
• If a worker is constantly exposed to tools and machinery that reach more than 85 decibels, an audiogram should be completed annually.
• The mandatory use of hearing protection (earplugs or earmuffs) should apply to all employees who work in areas of excessive noise.
• All employees should be provided with safety materials that address the importance of hearing protection at work and in non-work related activities that create high noise levels.

Occupational hearing loss is one of the most common work-related illnesses. Safeguard your workers and minimize the costs to your business by effecting and maintaining these essential controls and programs.

Workers Comp Questions? Contact Us!

To learn more about Workers Compensation Insurance, contact us online or call (800) 947-1270 or (610) 775-3848.

Over 4,000 employees are injured, and another 325 die each year in workplace electrical accidents. Do not let this be one of your employees! Protect your employees and minimize your workers compensation insurance costs through proper safety procedures.

Downed electrical wires are one of the leading causes of electrical accidents, and most can be prevented. Being aware and well educated on how to handle these situations can be the difference between life and death!

Extreme Danger: Downed Power Lines

Workers involved in clean-up and recovery efforts are three times more likely, when compared to other occupations with electrical hazards, to be injured or killed by downed and low hanging electrical wires. These disaster scenes are usually very chaotic and uncontrolled, which can easily lead to mistakes and injuries. When first arriving at a scene, it is important to stop and look around, evaluate the situation and assess for any loose or low hanging electrical wires, quickly make a plan, and then proceed.

Safety Tips for Handling Downed Power Lines

Checking on equipment and electrical lines is the first step to ensuring safe working conditions for everyone involved in the effort. It should ALWAYS be assumed that all electrical wires are live and active!

• Downed and low hanging wires must always be considered active, regardless of whether or not they are touching the ground, because voltage may still be running through them and one touch could be deadly! Also keep in mind that all wires are designed differently and just because the wire is well insulated, coated, and weatherproofed does not automatically make it a television or cable wire. It could still be a high-voltage electrical wire.
  
  
• Always assume that all equipment, such as generators and conductors, are live even if they are not sparking or humming. Some of this equipment does not automatically turnoff when damaged, and a simple touch to the equipment or the ground around it could kill you instantly!

Energy that is provided through electrical wires is amazingly powerful! Therefore, its strength should never be tested.

• Never drive over power lines. You run the risk of becoming trapped in your vehicle or at the very least your vehicle could become entangled within the wire. This goes for any equipment vehicles you may be driving.
  
  
• If you are in a regular or equipment vehicle, and you were to come into contact with an electrical wire, ALWAYS assume it is live. Your best choice to resolve this situation is to remain inside your vehicle and place a call for help. If this is not possible, such as if your vehicle is on fire, you need to jump as far away as possible from the vehicle making sure NOT to touch the vehicle and the ground at the same time. Proper landing technique is with both feet together, maintaining good balance, and then continuing to shuffle away in small steps to eliminate the path of electric current, and ultimately electrical shock.

Backfeeding occurs when electrical conductors are unexpectedly energized by outside sources such as lightning, downstream events, generators, and circuit ties/switch points, which can result in additional injuries or death. Therefore, it is important to understand how voltages are spread and how to disable all electrical equipment properly and efficiently from the start.

• Proper lockout/tagout procedures ensure that all necessary energy sources have been properly disabled and do not pose a threat of being reignited due to unexpected circumstances such as lightning or generator reboots.
  
  
• Since electricity spreads outward, in a circular motion throughout the ground, when you move outside of the main point of contact, you can be creating larger, more dangerous voltages. This creates a hazardous situation for yourself and anyone else standing close to you.

Keeping Business Insurance Costs in Check

Safety should be your number one priority for the safety of your employees and as a means to keeping insurance costs – health insurance, workers compensation insurance, liability, and disability insurance – in check. Sharing this information with employees who respond to a clean-up or recovery effort could save a life and help your company’s bottom line.

Contact Us

For more information about saving on all your commercial insurance costs, please contact us online or give one of our experienced agents a call at (800) 947-1270 or (610) 775-3848.

Sobering Statistics on Business Interruption Insurance

A recent national survey of small businesses yielded some sobering statistics. It found that 66 percent of these businesses do not have business interruption insurance—even though an estimated 25 percent of them will not be able to reopen following a major loss, such as a fire, a break-in, or a storm.

That same survey also revealed that three out of four small business owners do not have a disaster recovery plan, yet more than half of them admit that it would take at least three months for them to recover from a disaster.

Most small business owners are at risk of disaster, but they are least likely to have disaster recovery insurance or a plan in place to help them recover. About a third of the owners say it is not important for their business to have a disaster recovery plan, and they give interruption insurance a low priority.

Business interruption insurance can be as vital as fire insurance

It’s unlikely that anyone would ever consider opening a business without buying insurance to cover damages from fire or windstorms. But many small business owners don’t give serious consideration to how they would survive if a fire or other disaster damaged their business premises and rendered them temporarily unusable. A business that has to close down completely while their buildings are being restored may lose out to competitors. A quick resumption of business after a disaster is essential.

A few key points about business interruption insurance

• Business interruption coverage is not sold separately but is added to a property insurance policy or included in a package policy. 
• It compensates you for lost income if your company has to vacate the premises due to disaster-related damage that is covered under your property insurance policy.
• Business interruption insurance covers the revenue you would have earned, based on your financial records, had the disaster not occurred.
• The policy also covers any operating expenses that continue even though your business activities have temporarily stopped.
• The price of the policy is related to the risk of a fire or other disaster damaging your premises.

A disaster could halt your business—even if your property remains undamaged

You have purchased a standard loss of business income policy, and you may think that you are totally protected from a disaster. Unfortunately, most policies do not cover utility interruptions—power, water, and communications--that originate away from your premises (for instance, the utility generating station may have been damaged or transmission lines could be down).

Losing these services for an extended period can be financially devastating. The first step is to evaluate the exposures facing your company. Will being out of power for hours or days adversely impact your operations and profits? If you come to the conclusion that it will, you should consider an endorsement that extends your coverage to include utility services interruptions.

Get back in business quickly with a Disaster Recovery Plan

In addition to the right insurance, a Disaster Recovery Plan (DRP) - a plan that describes how work can be resumed quickly and effectively after a disaster – is another element to ensure that a disaster doesn’t shut your business down. It consists of the precautions taken so that the effects of a disaster will be minimized and the organization will be able to either maintain or quickly resume critical functions. Typically, disaster recovery planning involves an analysis of business processes and continuity needs; it may also include a significant focus on disaster prevention.

Plans vary from one type of business to another, depending on the processes involved, and the level of security needed. Disaster recovery planning may be developed within an organization or purchased as a software application or a service. It is not unusual for an enterprise to spend 25% of its information technology budget on disaster recovery.

Contact Us for Help with Your Business Interruption Insurance Needs

A DRP, along with business interruption coverage, constitutes the business continuity planning that could rescue your business after a disaster. Depending on your particular business, properly planning for your business interruption insurance needs can be complex, but the well-trained staff at American Insuring Group can help. Click here to contact us or give us a call at (800) 947-1270 or (610) 775-3848.

Employees who are injured on the job may be entitled to compensation for medical care and wage replacement through their employer’s Workers Compensation insurance. The insurance provides medical care, lost wages, and any rehabilitation needed to return to work. Sometimes an employee is permanently and totally disabled or disabled to the point that the employee cannot return to meaningful employment. These cases are usually complex and can be difficult to settle. If a lump-sum cash settlement does not resolve a case, a structured settlement may offer a solution.

What is a Workers Compensation Structured Settlement?

A structured settlement is a financial or insurance arrangement whereby a claimant agrees to resolve a personal injury claim by receiving periodic payments on an agreed schedule rather than as a lump sum. Structured settlements are often used to resolve workers’ compensation insurance cases in which the negotiations between the plaintiff’s attorney and the insurance company have reached an impasse. The responsibility of future payments to the plaintiff falls on an independent third party—usually a life insurance company from which an annuity has been purchased by the workers’ compensation insurer.

Congress has encouraged the use of these settlements through the federal tax code since 1983. Internal Revenue Code section 104 specifies the amount of each payment, and the earnings on payments are excluded from the settlement recipient’s income.

Not all payout schedules from a structured settlement are alike. There are three main forms of periodic payments from a structured settlement:

• Deferred Lump-sum Payments: Payments are structured under a schedule of pre-determined dates. These payments are usually larger than regular periodic payments.
• Flexible Settlement Plan: Payments in this plan consider the needs of the injured worker—important future events at different stages of life—while maintaining control of the costs for the employer and insurer.
• Period Certain Annuity: The injured employee gets a larger settlement by agreeing to shorten the time period that the annuity will pay.

An initial lump-sum payment can be included in the settlement to cover such items as housing and transportation, and the settlement can also be structured to increase periodic payments at fixed dates in the future to account for inflation.

Advantages of Structured Workers Comp Insurance Settlements

Structured settlements are helpful for the injured worker in compensation cases. They can be set up to provide tax-free money for long-term and immediate needs, while eliminating the worry of managing a large amount of money. In most cases, a structured settlement will provide more money over the long term than the employee would realize from a cash settlement. The plan can be structured around age and life expectancy, thereby providing funds for maintaining medical treatment, future surgeries, and replacement of durable medical equipment.

The closure of the claim, expedited through a structured settlement, is a major benefit to the employer. It also avoids the uncertainty of litigation and all of the expenses that go with it. In the case of a disability that lasts a lifetime, all of the mortality and investment risk is transferred to the third-party insurer.

Insurers benefit because they free up money that would have been used for a lump-sum settlement and can now concentrate on other cases.

The employee’s lawyer has a satisfied client for whom he has provided financial stability.

A word of caution

A structured workers comp settlement is a flexible tool for resolving troublesome claims. Keep in mind, however, that each state has different laws with regard to settling workers’ compensation claims. Be sure to partner with a professional who can confirm the laws of your state.

Learn More About Workers Compensation Insurance

For more information and advice on workers compensation insurance, contact us online or give us a call at (800) 947-1270 or (610) 775-3848.

The storm was ferocious. Luckily, your buildings were spared damage from the high winds and heavy rains; however, a few miles away the storm brought down power lines that supply your business with electricity. While there is no physical damage to your property, you’re still out of business without power. Does your business insurance cover this? Do you have utility service interruption insurance?

Commercial Property Policies Exclude Utility Service Outages

You have a standard loss of business income insurance policy, and you may think that you are protected in the event of an outage. Unfortunately, most policies do not cover utility interruptions that originate away from your premises. While utility service exclusions may vary from one policy to another, they usually include the following:

• Power supply services--electricity, gas and steam
• Water supply services
• Communications supply services--telephone, radio, microwave or television

Losing these services for an extended period can be financially devastating. To protect your business from any of these utility outages, you will need to purchase an endorsement that extends your insurance coverage to include utility services interruptions.

Utility Service Interruption Insurance Closes the Gaps

Storms are not the only threat to your business. A vehicle can snap off a utility pole, a fire can start several blocks away, or a tornado can touch down unexpectedly. None of these has caused damage to your facility, yet your business is on hold because one or more utilities that are vital to your operation have been interrupted.

Utility service interruption coverage is an endorsement that covers your losses due to lack of incoming electricity--or similar utility services--caused by damage to property away from your premises. (For instance, the utility generating station may have been damaged or transmission lines could be down.)

These endorsements vary widely as to what utility services are included and whether both Direct Damage and Time Element losses are covered. The following details explain these coverages:

Direct Damage Coverage

• If a power surge occurs during power restoration, this coverage pays to repair or replace any items that have been damaged by the surge
• You must have Personal Property insurance to purchase Direct Damage coverage. It is an extension of your Personal Property coverage
• The deductible that applies to your Personal Property coverage will also apply to Direct Damage

Time Element Coverage

• Time Element coverage extends standard business interruption coverage to include utility services interruptions
• Time Element pays your profit plus continuing expenses, up to the limit you have chosen or until the utility comes back into service, whichever comes first
• You must have Loss of Business Income coverage to buy the Time Element extension
• The utility must be out due to a covered cause of loss 
• If you have a deductible or waiting period on Loss of Business Income, it will be the same on your Time Element endorsement

Consider the Exposures to Your Business

The first step is to evaluate the exposures facing your company. Will the loss of power for hours or days adversely impact your operations and profits? If you determine that it will, your next step is to determine how your current insurance program would apply. This involves reviewing the policy language, evaluating the coverage and taking the appropriate action to change the policies or add endorsements.

A word of caution: many power outages are caused by downed transmission and distribution lines. These endorsements do not automatically extend coverage for loss caused by or resulting from the damaged lines. This coverage is available, but it must be specifically requested and added by endorsement.

We Can Help You Get the Right Utility Services Interruption Insurance Policy

The experienced agents at American Insuring Group can help you determine if Utility Services Interruption Insurance is a good idea for your business.

Click here to contact us or give us a call at (800) 947-1270 or (610) 775-3848. Our independent agents will compare insurance policies among many competing providers to find you the right insurance at the right price. Call or click today!

Commercial auto insurance and personal auto insurance are two completely different things – mainly because a commercial vehicle faces more risks and needs more protection than a personal vehicle.

Commercial auto insurance is designed to protect you, your employees, your vehicle, your equipment, your business (in the event of a lawsuit), and other individuals. It has some of the same coverages as personal insurance, but usually includes higher liability coverage and additional add-ons not offered with personal auto insurance.

If you are conducting business in a vehicle that is only covered by personal auto insurance and that vehicle is involved in an accident, you risk having your claim denied.

State and Federal Insurance Requirements for Your Personal or Commercial Vehicle

Each state has different requirements, but nearly all of them require that any registered vehicle be covered by – at least – liability insurance, and some states require that you purchase uninsured motorist coverage and no-fault car insurance. Pennsylvania is one of those states, and these requirements – and often more - apply to your commercial vehicle.

If you transport hazardous materials or you transport goods or passengers from state to state, you are also subject to federal requirements for commercial auto insurance. For instance: a commercial vehicle carrying 16 or more passengers across state lines is required to have $5 million of insurance and a vehicle carrying less than 15 passengers across state lines is required to carry at least $1.5 million of insurance.

Often, you will find that insurance companies will only sell you policies that include coverage that is higher than the state’s minimum requirements for personal vehicles, because providing coverage for a commercial vehicle increases the risk. Plus, financial intuitions may require additional coverage.

Do you need commercial auto insurance?

If you own or lease a fleet of vehicles, you probably understand that you need commercial auto insurance, but even if you own just one of the following vehicles and use it for business purposes, you should have commercial vehicle insurance:

• Trucks – dump trucks, refrigerator trucks, etc.
• Vehicles outfitted with work equipment
• Utility vans
• Limousines
• Taxicabs
• Flatbeds

You might be surprised to learn that you should also have commercial insurance for a “regular” car, pick-up truck, or SUV if any of these circumstances apply:

• You use a vehicle or vehicles for your profession or business (other than commuting to work)
• The vehicle is owned or leased by a business, partnership, or other corporation

• The vehicle is equipped with…
• Snowplowing equipment.
• Cooking or catering equipment.
• Bathrooms.
• Altered suspensions.
• Hydraulic lifts.
• Racing equipment.
• The vehicle is consistently driven by you or your employees for both business and personal use.

Add-on insurance to consider for your commercial vehicle:

• Collision: This covers your vehicle for damage incurred in a collision/accident.
  
  
• Comprehensive Insurance: This covers you if your vehicle is damaged by something other than a collision, such as theft, fire, or vandalism.
  
  

• PIP and medical payments coverages: Personal injury protection (PIP) and medical payments coverages help take care of expenses, such as the loss of wages, incurred when you and/or your passengers are injured in an accident.
  
  
• Emergency roadside insurance: If you’re battery dies, you get a flat tire, need your car towed, run out of gas, or lock yourself out of the car, this insurance can come in handy.
  
  
• Personal effects insurance:  This insurance covers your personal belongings in the event of a theft.

Contact Us for the Right Commercial Vehicle Insurance 

If you want to protect your employees, your vehicle, your equipment, your business, and other individuals, give us a call at (800) 947-1270 or (610) 775-3848 or click here to contact us.

As independent insurance agents, we can help determine the right auto insurance at the right price for your vehicle by shopping among competing insurance carriers. Click or call today.

When you start a business, you’re full of hope and dreams. The last thing you want to think about is what would happen to your business if you, a co-owner, or a key person within the business were to become disabled or – God forbid – die.

But, as a business owner it is your responsibility to think about these things and plan how you will protect your business, your employees, and your family in the event of one of these tragedies. In order to do that, you need to ask yourself these two questions and then get the proper business insurance to meet your needs:

Here are 4 Types of Business Insurance to Consider:

Disability Buy-Out Insurance

Business Overhead Insurance

If an owner were to become disabled, this insurance would reimburse the business for overhead expenses – such as salaries, taxes, employee benefits, rent, mortgage, utilities, etc. – for one or two years. This often means the difference between a business surviving or closing until the owner can get back on his or her feet.

Individual Life Insurance

What if you or one of the owners were to die? What would happen to your business? You might assume that your family or remaining owners could sell or liquidate the business to ensure their financial security. Unfortunately, this doesn’t usually work. First, who wants to think about selling a business while grieving for the loss of a loved one? Second, when the family is forced to sell the business quickly, they may have to sell at a discount or during market conditions that make the business less attractive. In other cases, the business may be worth very little without the proprietor or partner. Individual life insurance can protect your family by providing funds to cover debts, ongoing living expenses and future plans, in the event that something happens to you. Life insurance can also be structured to fund a buy-sell agreement.

Key Person Insurance

This is another essential component of a smart business continuation plan. Key person insurance is life or disability insurance purchased by the business on an employee/owner that is essential to the running of the business. It is payable to the business. When a key person dies or becomes disabled, insurance can help make up for lost sales or earnings or cover the cost of finding or training a replacement.

Need Help Finding the Right Business Insurance?

Don’t take chances. It’s your responsibility for protecting your family, employees, and your business. Make sure that you plan for the unexpected with the right business insurance and individual life insurance.

Contact us at (800) 947-1270 or (610) 775-3848; we can help you determine the right insurance to protect your assets. As independent insurance agents, we'll shop among competing insurance providers to find you the right insurance at the best price. Call or click today.