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10 Types of Insurance Landlords Need to Consider

Posted by David Ross on Sat, Sep 23, 2023

Considerations for Buying Landlord Insurance in Philadelphia, Pittsburgh, Allentown, Erie, Reading, Lebanon, Lancaster, Harrisburg, and throughout PAHave you made the plunge into real estate investments and become a landlord? If you have, you aren't alone. Experts estimate that there are 10 -11 million individual investor landlords in the U.S. Real estate investments can be a great way to build wealth, but you need to do your research before taking the plunge.

You need to recognize the unique risks landlords face and protect your investment with the right Landlord Insurance. You don't want to pay for insurance you don't need, but then again, you don't want to leave gaps in your coverage. The first step is understanding the types of Landlord Insurance available to you. You probably don't need them all, but you should at least be aware of your options.

10 Types of Insurance Landlords Need to Consider 

  1. Landlord Insurance – These policies typically cover a range of risks, such as property damage, loss of rental income, liability claims, and legal expenses.

  2. Hazard and Fire – This insurance covers damages caused by fire, storms, explosions, and other hazards.

  3. Commercial Liability – Liability insurance helps pay legal fees and awarded damages if a tenant or guest sues you.

  4. Flood – Hazard and fire insurance should cover you in the event of a broken pipe; however, it may not cover damage caused by water coming in from the outside., such as the July 17th storm in Berks County. WFMZ reported, "Many watched helplessly as their basements filled up with water from Sunday's storm." Flood insurance can help you recover from such an event.

  5. Sewer and Water Line Backup – A break in your sewer or water line can cause a great deal of damage. Sewer and Water Line Backup coverage can help pay for repairs and cleanup.

  6. Rent Guarantee (Aka Tenant Rent Default) – If you rely on the cash flow provided by rent from your tenants, you may want to look into rent guarantee insurance, which covers you if a tenant skips out without paying rent.

  7. Pet – For many, their pet is part of the family, and they couldn't imagine living without them. Therefore, allowing tenants to have pets can reduce vacancy and enable you to charge higher rents. But pets can cause damage or injuries, so if you decide to make your property pet-friendly, you may want to consider pet coverage.

  8. Loss of Income – If there is a fire or flooding, or any damage that makes a property uninhabitable for an extended period, loss of income coverage provides compensation to help with cash flow.

  9. Builder's Risk – If you are renovating a vacant property, you may want to consider builder's risk insurance to protect against vandalism, theft, and other damages.

  10. 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 insurance that goes above and beyond.

How to Choose the Right Landlord Insurance Policy

When choosing landlord insurance, consider the following:

  • Coverage limits: Ensure the policy offers sufficient coverage for your property and needs.
  • Deductible: The amount you'll need to pay out of pocket before the insurance coverage kicks in.
  • Premiums: While it's important to find a policy that fits within your budget, it's also vital to ensure that you're getting sufficient coverage.

Save Now on Landlord Insurance

American Insuring Group offers a range of Landlord Insurance policies to fit your needs and budget. Our experienced independent agents can help you find the right policy to protect your investment at the best possible price, as we carefully compare competing offers from various insurance carriers.

Call today at (800) 947-1270 or (610) 775-3848, or connect with us online.

Tags: Landlord Insurance, Commercial Liability Insurance

7 Tips to Get the Most Out of Your Contractors Insurance

Posted by David Ross on Sat, Sep 24, 2022

Follow these tips to save on Contractors Insurance in Philadelphia, Lancaster, Reading, Erie, Pittsburgh, Allentown and all throughout PA Have you ever thought about why you purchased Contractors Insurance? It may have been to protect your business, equipment, employees, and more. It may have been required – by law, a customer, etc. Whatever the reason, everyone wants to get the most they can out of their insurance.

Check out these 7 tips to discover how to get the most out of your insurance coverage.

Identify Risks and Determine Response Strategies

First, you need to identify your risks, determine which could have the most significant impact on your business, and decide on your response strategies, which may include one or more of the following:

  • Avoidance – If you determine that a project is too risky or your business is not equipped to handle the risk, you may decide to decline the project or change the scope of the work.
  • Transference – Sometimes, you can transfer the risk to a supplier, subcontractor, or insurance carrier.
  • Mitigation – Mitigation is the act of reducing the severity, seriousness, or painfulness of something. For example, providing a safer worksite will help mitigate safety risks.
  • Acceptance – Sometimes, you may be willing to accept a potential risk and develop a contingency plan as a workaround. 

Mitigate Risk

Mitigating risk – and thereby reducing the number of claims – is one of the best ways to lower insurance (and other) costs. American Insuring Group offers many blogs to help, such as 10 Hand and Power Tool Safety Tips, How to Minimize and Protect Your Construction Company from 3 Top Risks, and Choosing Appropriate PPE for Construction Workers. 

And the good news is that mitigating risk also leads to more productive employees, happier customers, a better business reputation, and a healthier bottom line. 

Understand Your Insurance Policy

We realize that most people do not find reading their insurance policy a fun activity, but it's a must if you want to get the most out of your coverage. You need to understand what your policy does and does not (exclusions) cover so that you can compare any gaps with your response strategies and available cash flow. You may need to purchase an additional policy, add an endorsement to extend your coverage, or consider an umbrella policy to increase your current policies' limits. 

You should also understand your deductibles and ensure that you have enough available cash flow to cover those deductibles if you make a claim. 

Combine Policies

It is tempting to shop around and find the lowest premium on each of your policies, but you will often find more savings by combining your policies with one company. The independent agents at American Insuring Group will compare the cost of your policies with multiple insurance companies to ensure you pay the lowest premiums. 

Review Your Policies Regularly

You know the old quote, "There is nothing permanent except change," and this is certainly true in business. You may buy or sell a piece of equipment. You may increase or decrease the number of employees. All of these changes can affect your insurance coverage and premiums; therefore, regularly reviewing your policies is the only way to ensure that you have the right coverage at the lowest cost. 

Advertise Your Insurance Coverage

Advertising your insurance coverage – on your website, social media profiles, truck advertising, etc. – shows that you are a professional and can help get more customers. You should be happy to provide your customers with a certificate of insurance as proof that you have insurance coverage that will pay for any injuries, damage, etc. 

Work With an Experienced Insurance Agent and Save!

The independent agents at American Insuring Group specialize in Contractors Insurance and can ensure that you have the right coverage for your needs. Plus, as independent agents, we check with multiple insurance companies to ensure you pay the lowest price for that coverage!

So give us a call today at (800) 947-1270 or (610) 775-3848, or connect with us online.

Tags: Commercial Vehicle Insurance, Construction Insurance, Contractor Insurance, Commercial Liability Insurance, Contractor Safety Management

What Contractors Should Know About Professional Liability Insurance

Posted by David Ross on Sat, Jul 30, 2022

What contractors should know about professional liability insurance for contractors in Philadelphia, Newark, Allentown, Reading, Lancaster PA and elsewhereThere are many types of Contractors Insurance to help protect your business in the event of a lawsuit. Insurance is a crucial part of protecting your business. According to Forbes, 36%-53% of small businesses are involved in at least one litigation in any given year, and 90% of all companies are engaged in litigation at any given time. 

General liability insurance helps protect you if you are sued for injuries (other than employees), property damage, libel, and slander.

However, a customer can also sue you for making a mistake, missing a deadline, negligence, or undelivered services. Typically, general liability insurance does not cover this type of lawsuit.

 As they say, “To err is human,” but unfortunately, while “to forgive is divine,” not everyone forgives when a general contractor makes a mistake – actual or perceived. And one lawsuit can cost you a fortune in legal fees and settlements or judgments (if the court sides with the plaintiff) or even put you out of business.

 Thankfully, there is Professional Liability Insurance to help protect your business from this type of lawsuit.

What is Professional Liability Insurance?

Professional Liability Insurance goes by many names, such as Errors and Omissions and E & O insurance. Professional Liability Insurance protects your business if you face a lawsuit claiming you made a mistake in your professional services - whether or not you actually made a mistake.

 Some local and state laws, contracts, or customers may require Professional Liability Insurance. However, even if it isn’t required, it’s a good investment as one lawsuit can put you out of business. According to an SBA study, small businesses reported that legal costs for litigation ranged from $3,000 to $150,000. Furthermore, “Most companies used business assets to pay the damages,” and “owners mentioned that the payment of damages nearly put them out of business, which affected them for a long period of time as they worked to rebuild the business and recoup their losses.”

 Professional Liability Insurance helps protect your business from claims of the following nature:

  • Errors
  • Omissions
  • Negligence
  • Violation of good faith and fair dealing
  • Misrepresentation
  • Inaccurate advice

 Professional Liability Insurance covers the following costs (up to the policy’s limit):

  • Attorney fees
  • Court costs
  • Administrative costs
  • Settlements or judgments

 Professional Liability Insurance does NOT typically cover:

  • Bodily injury
  • Property damage
  • Fraudulent, dishonest, or criminal acts
  • False advertising
  • Employee injuries or illnesses
  • Discrimination or harassment
  • False advertising
  • Patents and trade secrets
  • Any services not specified in your policy

 How Much Does Personal Liability Insurance Cost?

Every business is unique, so the cost of Professional Liability Insurance varies.

 Factors that can affect your Professional Liability Insurance costs include the following:

  • Business size
  • Location
  • Claims history
  • Coverage limits

 You can help keep the cost of Professional Liability Insurance down by doing the following:

  • Properly training employees
  • Providing quality work
  • Drafting well-crafted contracts that set expectations
  • Fulfilling the terms of the contract
  • Keeping schedules realistic
  • Providing quality workmanship
  • Hiring reliable and competent subcontractors
  • Performing and documenting periodic inspections
  • Keeping communication professional and reasonable
  • Ensuring everyone working on the project is adequately insured

 How to Save on Professional Liability Insurance

If you aren’t sure if you need Professional Liability Insurance, reach out to one of the agents at American Insuring Group who specialize in Contractors Insurance.

We understand your unique needs and can help ensure you have the right coverage. As independent agents, we will compare the cost of that coverage with several insurance companies to ensure that you pay the lowest premium for that coverage.

So start saving today by calling us at (800) 947-1270 or (610) 775-3848, or connect with us online.

Tags: Contractor Insurance, Professional Liability Insurance, Commercial Liability Insurance, Professional Liability Lawsuit

11 Types of Commercial Insurance for SMBs

Posted by David Ross on Sat, Jan 08, 2022

Commercial Insurance for Small Business in Philadelphia and throughout PAOwning a small business can be an extremely rewarding experience, but it also comes with its share of risks that can impact the success of your business – employee injuries, fires, lawsuits, thefts, and the list goes on.

The good news is that there is insurance to help your business recover from just about any catastrophe. Unfortunately, research shows that many U.S. businesses are completely uninsured, and 75% of U.S. businesses are underinsured by 40% or more.

Whether you're opening a new business or have been in business for years, it's important that you understand the potential risks your business may face, what insurance policies are required (by law, contracts, landlords, etc.), how financially prepared you are in the event of an unexpected incident, and what types of commercial insurance are available to you. Only then can you make an educated decision about which insurance policies are right for your business.

11 Types of Commercial Insurance to Protect Your Business 

  1. Commercial General Liability (CGL) Insurance – CGL is relevant to any business and helps protect your business from financial loss that results in property damage, bodily injury, libel, slander, lawsuits, and settlements or judgments.

  2. Commercial Property Insurance – If your business has property or physical assets, property insurance helps protect them against loss or damage due to events such as fire, hail storms, civil disobedience, and vandalism.

  3. Workers' Compensation (WC) InsuranceIn Pennsylvania (and most other states), WC is mandated for nearly every business with employees. If an employee is injured on the job, WC helps pay lost wages, disability payments, death benefits, and medical costs and helps protect your business against employee lawsuits.

  4. Business Owner's Policy (BOP) – BOP is relevant to most small business owners – especially home-based businesses. It combines all of the typical insurance coverage – General Liability, Commercial Property, and Business Income Insurance - into one, simplifying the process and often saving you money.

  5. Business Income Coverage/ Business Interruption – If you are forced to shut down your business after experiencing covered property damage (such as fires, storms, etc.), Business Income coverage can help replace lost income.

  6. Cyber Insurance -Small or medium-sized businesses are involved in 43% of all data breaches, and 61% of all small and medium-sized businesses report experiencing at least one cyber-attack in the previous year. Cyber Insurance helps cover your business' liability for data breaches that involve sensitive customer information, such as credit card numbers, driver's license numbers, and health records.

  7. Commercial Vehicle Insurance – If you use a vehicle for any business – such as delivering food or transporting products – Commercial Vehicle Insurance helps cover bodily injury or property damage claims if the vehicle is involved in an accident.

  8. Product Liability Insurance – If your business manufactures, wholesales, distributes, or retails a product, Product Liability Insurance can protect you against financial loss resulting in malpractice, errors, and negligence.

  9. Gap Insurance – Often overlooked, Gap Insurance helps cover the cost difference to pay off a lease balance when the vehicle's value is less than the leasing company's payoff in a total loss accident.

  10. Commercial Umbrella Insurance – Insurance liability policies include a limit (the maximum amount an insurer will pay if a claim is filed). Commercial Umbrella Insurance helps cover the difference if a claim exceeds a policy's limit.

  11. Professional Liability/Indemnity Insurance (Aka Errors and Omissions Insurance)– If your business is sued due to a mistake made in a professional service your company provides, Professional Liability helps cover legal costs.

There are also insurance policies specific to unique risks in certain industries, such as Liquor Liability Insurance for restaurants and bars that serve alcohol, Builders Risk Insurance for contractors, and Bobtail Insurance for truckers.

We Offer The Best Insurance For Your Business

Every business is unique, which is why working with an experienced independent insurance agent is the key to obtaining the right insurance for your business.

So give one of the professional agents at American Insuring Group a call today at (800) 947-1270 or (610) 775-3848, or connect with us online.  

As independent agents, we will also compare the cost of your coverage with multiple insurance companies to ensure you pay the lowest price for the right coverage.

Tags: Commercial Liability Insurance, commercial vehicle insuarance, Commercial Insurance, commercial property insurance

10 Tips to Minimize Litigation Risk and Lower Contractors Insurance

Posted by David Ross on Sat, Dec 18, 2021

How to Minimize Litigation Risks to Save on Contractor Insurance in Philadelphia County, Berks County, Lehigh Valley and throughout Pennsylvania

Contractors Insurance is designed to help protect your business from various risks, including the risk of liability. A contractor can be sued for a variety of reasons – breach of contract, defects, employee and customer relations, project delays, etc. – and no business is immune to these risks.

According to a Small Business Administration (SBA) survey on the impact of litigation on small businesses, 36-53% of small businesses (fewer than 50 employees) were involved in filed civil lawsuits, resulting in $3,000 to $150,000 in legal costs for actual litigation. The survey report also states, “The impact of litigation on businesses goes well beyond the purely financial impact of legal fees and damages. Most small business owners are invested personally in their businesses; litigation causes not just financial loss, but also substantial emotional hardship, and often changes the tone of the business.”

Taking steps to minimize liability risks is just good business. Here are nine tips:

    1. Identify Potential Risks – Contractors are surrounded by potential liability risks, and the first step to reducing those risks is to identify them. Take time to look at your overall business practices and potential hazards at each project.

    2. Avoid accidents, including the Fatal Four – Every employer is obligated to keep employees safe, which can be a challenge in an industry like construction where hazards loom around every corner. According to the Occupational Safety & Health Administration (OSHA), 5,333 workers died on the job in 2019, and about 20% of fatalities in private industry were in construction. OSHA identified four hazards responsible for 63.7% of construction worker deaths in 2016, known as the “fatal four.” All workplace safety risks should be addressed, and starting with the fatal four – falls, struck by an object, electrocutions, caught-in/between - is a great place to start.

    3. Understand Safety Laws – The Occupational Safety and Health Act of 1970 was created to help ensure safe and healthful working conditions for workers. The result is a set of standards that businesses are required to follow by law. For example, OSHA requires that fall protection be provided for any employee working at an elevation of six feet or more in the construction industry.

    4. Understand Labor Laws - Fair Labor Standards Act mandates are designed to protect workers in the U.S. All businesses are required to follow these mandates, which include the establishment of minimum wage, overtime pay, record keeping, and youth employment standards.

    5. Avoid Delays – Delays are often unavoidable in the construction industry, and they are one of the most common disputes between construction companies and clients. Even if there is nothing in your contract about penalties for delays, common law usually applies, which could force you to compensate your client for loss of rent, storage fees, moving costs, etc. Proper planning can help minimize the risk of delays.

    6. Provide Quality Work – Shoddy work not only damages your business reputation it can also result in a costly lawsuit. Avoid construction defects, including defects in the design, workmanship, and or materials used, by drafting well-crafted contracts, fulfilling the contract terms, performing and documenting periodic inspections, etc.

    7. Hire Subcontractors Wisely – When something goes wrong – someone is injured, there’s a crack in the foundation, etc. – the general contractor is often held responsible. Therefore, only hire subcontractors you trust and have a reputation for quality work. Draft a comprehensive contract and ensure they have appropriate insurance.

    8. Communicate – Good communication – with employees, subcontractors, and clients – is key to the success of any project. Employ communication techniques, such as choosing a suitable communication method, being an active listener, and keeping communication professional at all times.

    9. Consult a Specialist When Appropriate – If you or your employees don’t have the knowledge or experience to perform a specific task, hire someone who specializes in that task.

    10. Document – With each project, have a comprehensive contract AND thoroughly document any potential hazards, inspections, accident reports, etc.

How to Purchase the Right Insurance

Sometimes, despite your best efforts, you may find yourself on the wrong side of a lawsuit. Thankfully, the right insurance can help minimize the impact of any lawsuit.

The agents at American Insuring Group understand the unique risks contractors face, and – as independent agents – they compare the cost of your coverage with several companies to lower your premiums.

Give one of our contractor insurance specialists a call today at (800) 947-1270 or (610) 775-3848, or connect with us online.

Tags: Construction Insurance, Construction Risk Insurance, Contractor Insurance, Commercial Liability Insurance

What You Need to Know About Truck Insurance

Posted by David Ross on Tue, Oct 26, 2021

Contact the truck insurance pros at American Insuring Group. Serving Philadelphia, Reading, Lancaster, Allentown, Pittsburgh, Erie, PA and beyond.If you own a fleet of trucks, are an independent truck driver, or use trucks for business, you need Commercial Truck Insurance. The right truck insurance helps protect you, your truck, your business, and the public.

State and federal agencies require some types of insurance. For example, the Motor Carrier Act (MCA) of 1980 requires minimum liability limits for trucks over 10,000 pounds ranging from $750,000 to $5 million per accident, depending on what is being transported.

Unfortunately, the minimum insurance requirement is often not enough to keep you in business after an accident, which is why it’s important to consider higher limits and additional types of insurance.

Did you know?

  • The average cost of a large truck crash involving a fatality is $3.6 million per crash.
  • A collision with injuries costs almost $200,000 per crash.
  • The average cost of all large truck crashes is about $91,000 per crash.

Having the proper insurance coverage and the right limits will help keep your trucks on the road.

NOTE: Commercial Truck Insurance is not the same as Commercial Auto Insurance because the risks associated with hauling large amounts of materials across state lines are very different from those associated with a delivery van driving around the city.

Types of Commercial Truck Insurance

Primary Liability Insurance (Aka Trucking Liability Insurance) is the minimum insurance required; however, it only covers injuries to other people or damage to other vehicles in the event of an accident. It does not cover your truck, your driver, lawsuits, etc.

General Liability Insurance covers additional risks, such as customer injuries, property damage, and advertising injuries. It helps protect your business from the cost of lawsuits. This type of insurance is often required for leases and contracts.

Physical Damage Insurance (AKA Collision Coverage) is not required by law but covers the cost of fixing or replacing damaged tractors or trailers. Typically, this type of insurance does not cover damage to cargo, drivers’ personal items, tools, electronics, or any equipment that is not permanently attached.

Cargo Insurance covers cargo in transit. Typically, it covers the loss or damage to cargo caused by collision, fire, heavy weather, equipment breakdown, theft, and running over or striking the cargo. There are usually exclusions for certain types of cargo, such as art, jewelry, live animals, and explosive materials.

Trailer Interchange Insurance covers physical damage for trailers pulled under a trailer interchange agreement and typically covers damage caused by collision, fire, theft, and vandalism.

Bobtail Insurance (Aka deadhead insurance) is a type of liability insurance that provides coverage when you are bobtailing a truck – operating a truck without an attached trailer or semitrailer.

Workers’ Compensation Insurance is required by most employers under Pennsylvania law. It provides medical expenses and lost wages for employees for work-related injuries or illnesses, protects your business from lawsuits, and helps you stay compliant with state regulations.

How to Lower Truck Insurance Costs the Easy Way

Many factors affect insurance premiums, such as where and what you are hauling, the condition of your equipment, etc. However, you can take steps to lower your insurance costs, such as hiring safe drivers, implementing a safety program, increasing deductible amounts, and working with an insurance agent who has experience with the unique needs truck drivers and trucking companies face.

The agents at American Insuring Group have been helping truck drivers and trucking companies for years to ensure they have the right coverage. And as independent agents, they compare the cost of your coverage with several insurance companies to ensure that you get the lowest rates on that coverage.

→ Give us a call today at (800) 947-1270 or (610) 775-3848, or connect with us online.

Tags: truck insurance, Commercial Liability Insurance, Trucking Insurance, Cargo Trucking Insurance

Don’t Leave Your Restaurant at Risk: Discover Insurance Coverage Gaps

Posted by David Ross on Sat, Jan 09, 2021

Discover Your Restaurant Insurance Gaps so Your Business is not at RiskEvery restaurant owner or manager knows that accidentally omitting even one key ingredient from a recipe can have a devastating effect. The same is true with Restaurant Insurance. Leaving one gap in your insurance coverage could have a disastrous effect on your restaurant.

Restaurants often face unique risks that other businesses do not, which may require additional layers of insurance coverage. Therefore, you must look at possible risks to determine if there are any gaps in your insurance. In this case, ignorance is definitely NOT bliss.

How to Discover Gaps

The best way to determine if there are any gaps in your insurance is to work with an insurance agent who specializes in Restaurant Insurance. They understand the unique challenges and risks inherent in the restaurant business. They know the right questions to ask to ensure that you don’t have any coverage gaps.

Here are a few key questions to consider:

  1. What property – building, signs, equipment, etc. – do you need to cover?

  2. What types of liability might you be open to during the course of doing business?

  3. Do you transport anything off the property?

  4. Does Workers Compensation cover you, the owner?

  5. What types of events – fire, theft, spoilage, etc. – does your Commercial Property Insurance cover?

  6. What are the limits and deductibles that apply to each type of situation?

  7. What would happen if you had to close your restaurant for a period of time because of a fire, flood, etc.?

  8. What would happen if one of the suppliers or wholesalers that you depend on could not deliver?

And as your business changes, so should your insurance coverage. For example:

  • Have you invested in a food truck to expand your reach, which could open your restaurant up to additional liability risks?

  • Have you become a farm-to-table restaurant, which means a shorter supply chain that could place more responsibility for your restaurant's quality control measures?

  • Did you start using an outside delivery service, which takes some of the control out of your hands?

Also, having the right insurance policies isn’t always enough. Make sure you understand and are comfortable with the limits and deductibles on each of your policies.

Common Gaps

Most restaurants understand the need for General Liability, Workers’ Compensation, Commercial Property Insurance, and - if they sell liquor – Liquor Liability Insurance, but here are five often-overlooked Restaurant Insurance gaps:

  1. Cyber Insurance – If you accept checks or credit cards as payment, you have personal information that can put your business at risk for a data breach. Your website and social media sites can also make you a target for cyberattacks. Cyber Insurance helps you recover losses associated with a cyberattack.

  2. Equipment Breakdown – Every restaurant has equipment – fryers, stoves, refrigerators, etc. Equipment Breakdown coverage helps cover the cost of repairing or replacing equipment after a covered incident.

  3. Business Interruption – What if you had to close your restaurant for a period of time while repairs are made after a fire? Could you handle the loss of income that would result? Business Interruption Insurance, which helps cover that loss, is often included under your Business Owner’s Policy but make sure you are comfortable with the amount of coverage and duration of that coverage.

  4. Personal and Advertising Injury –Personal and Advertising Injury Insurance protects you from third-party lawsuits claiming non-physical personal injury, such as libel, slander, copyright infringements, etc. It is typically included in Commercial Liability Insurance; however, every restaurant has different needs. Make sure the coverage in your Liability Insurance is adequate.

  5. Reputation Damage Insurance – There are so many ways your restaurant’s reputation can be damaged – a cyber-attack, a food-borne illness, an alcohol-related accident, etc. Reputation Damage Insurance can help cover losses associated with this type of event.

The Right Insurance Agent Can Make a Big Difference!

American Insuring Group specializes in Restaurant Insurance. Our agents are experts in eliminating the gaps in your Restaurant Insurance. Plus, as independent agents, we will compare prices among many insurance companies to make sure you get the best price on quality insurance protection.

So, call us today at (800) 947-1270 or (610) 775-3848 or connect with us online!

Tags: Restaurant Insurance, Liquor Liability Insurance, Commercial Liability Insurance, Restaurant Liability Insurance

Third-Party Food Delivery Liability and Restaurant Insurance

Posted by David Ross on Sat, May 23, 2020


COVID19 food delivery restaurant insurance tips for restaurant ownersThird-party food delivery got a serious boost when Pennsylvania Governor Tom Wolf ordered all restaurants and bars to close their dine-in facilities to help stop the spread of COVID-19, while still permitting carry-out, delivery, and drive-through food and beverage service. Many restaurants began offering food delivery through apps such as Grubhub and UberEats. 

It's crucial that restaurants understand potential liability and how Restaurant Insurance can help.

At the end of January 2020 - before the ordered shutdown - Upserve reported that 31% of people in a survey said they use a third-party delivery service at least twice a week. Imagine how that number has skyrocketed in just a few months!

The use of third-party delivery services has allowed many restaurants to continue serving food without investing in a driver or other infrastructure while their dining rooms remain closed. On the other hand, it has also opened restaurants up to potential new liability and legal ramifications.

Here are four questions to ask about potential liability when using a third-party food delivery app.

Who is Liable if a Customer Gets Sick After Eating Your Food That is Delivered by a Third-Party?

It may be impossible to discover where things went wrong. The illness could have been caused by cross-contamination in your kitchen, or it could have been caused by the food sitting in a hot car too long.

Food delivery services do not fall under the Food and Drug Administration’s jurisdiction, so you may find your restaurant being held liable regardless. Before deciding to partner with a third-party delivery app, ask them if their drivers are required to follow any food safety standards - such as hygiene or temperature control – and who will be held liable if there is an illness.

Who is Liable for Issuing Refunds or Other Compensation if There is a Problem With the Food?

Beyond food contamination and illness, many smaller things can go wrong when you hand over your carefully prepared food to a complete stranger. Food can go cold. A pizza could get flipped over in the box, leaving all the cheese stuck to the lid.

You have no control over what happens to the food once it leaves your restaurant; however, it’s still your restaurant’s reputation on the line if your customers are disappointed with the quality of the food. Make sure that you provide the right packaging for the food on your menu and perhaps limit the delivery distance.

Who is Liable if the Delivery Person is in an Automobile Accident While Delivering Your Food?

The food delivery app probably requires that its drivers all have automobile insurance, but don’t assume they do. Ask what insurance policies they require their drivers to have and how they enforce and monitor the requirement.

A driver can present proof of insurance one day and lose it the next day for nonpayment. It may not be a bad idea for you to require proof of insurance from every driver each time they make a pickup at your restaurant.

Who is Liable if the Delivery Service is Not Sanctioned by Your Restaurant and Something Goes Wrong?

Some food delivery brands deliver food from restaurants without permission from the restaurant owners. So it’s crucial that you clearly advertise which third-party delivery services you have partnered with and include a disclaimer about potential liability from unsanctioned services.

How Can I Protect My Restaurant From Liability Issues?

The best way to protect your restaurant from any liability issues is with the right insurance. Talk to an independent insurance agent who specializes in restaurant insurance – like the agents at American Insuring Group – to make sure you get the lowest price for that coverage. Give us a call today at (800) 947-1270 or (610) 775-3848 or connect with us online.

Tags: Restaurant Insurance, Commercial Liability Insurance, Restaurant Liability Insurance, Restaurant Insurance Costs

Help for Restaurant Owners During the COVID-19 Pandemic

Posted by David Ross on Thu, May 14, 2020

Help for restaurant owners in addition to insurance savings during the Coronavirus pandemicAs specialists in Restaurant Insurance, we typically focus on safety and other ways to lower insurance costs. This blog is a little different but has the same goal - to help restaurants succeed.  

Few industries have escaped the negative impact of the COVID-19 public health crisis, including the restaurant industry. Toast reports that restaurant sales are down 80% since the restrictions on restaurant operations and the shelter in place mandates went into effect.

As a restaurant owner, you may feel powerless, but it’s important to know that there are steps you can take to help ensure the health and safety of your employees, your customers, and your business.

The CARES Act

On March 27, the US government passed a stimulus bill called the “Coronavirus Aid, Relief, and Economic Security Act” – or CARES Act – in response to the COVID-19 health crisis. Here are some of the provisions of the Act that could be relevant to restaurant owners and employees.

The Paycheck Protection Program provides $349 billion in federally-guaranteed loans to small businesses. The loan can be used to help pay for employee salary or wages, cash tips, group health care benefits, etc.

The Emergency Relief and Taxpayer Protection provides loans, loan guarantees, and other investments for direct lending that meet specific criteria, such as a lack of alternative financing and a business that is a US-domiciled business with most employees located in the US.

The Employee Retention Tax Credit (ERTC) provides a refundable payroll tax credit for half of the wages paid by employers to employees during the crisis. To be eligible, the employer had to fully or partially suspended operations due to the shut-down order and experience a decline of more than 50% in gross receipts.

Businesses can now carry a Net Operating Loss (NOL) from 2018, 2019, or 2020 back five years. Plus, the taxable income limitation is temporarily removed, allowing an NOL to offset income fully.

The federal excise tax is waived on distilled spirits used for or contained in hand sanitizer produced and distributed under FDA guidance throughout 2020.

The tax filing deadline has been extended to July 15, and estimated tax payments can be postponed.

Temporary Policies

Understanding that the COVID-19 pandemic has changed the way restaurants are doing business, the FDA has implemented a few temporary policies that are in effect during the COVID-19 public health emergency.

The FDA is temporarily allowing restaurants to sell certain packaged food that is not labeled for retail sale during the COVID-19 pandemic. An example would be ingredients you purchased that can no longer be used to prepare restaurant food.

Restaurants are permitted to sell packaged food that lacks a nutrition facts label as long as it does not make any nutritional claims but does contain other required information, such as an ingredient statement, net quality of contents, etc.

Because many restaurants have switched to takeout only and may be experiencing disruptions in food supply chains, the FDA is also allowing some flexibility to chain restaurants and similar food establishments that are typically required to provide nutritional information on menus.

Employee and Customer Safety

To ensure the safety of your employees, continue to follow established food-safety protocols and CDC and FDA COVID-19 recommendations, including the following:

  • Regularly disinfect and clean all workspaces and equipment with a disinfectant spray or disposable wipes, focusing on surfaces that are frequently touched.
  • Prescreen employees (take their temperature and assess any symptoms before they start work).
  • Provide appropriate PPE, such as gloves, face masks, etc.
  • Ensure that employees follow proper hand hygiene by frequently washing their hands with soap and water for at least 20 seconds – before, during, and after food prep, after using the bathroom, after blowing their nose, coughing, or sneezing, etc.
  • Practice social distancing.

Tell employees who are sick to stay home. If an ill employee does come to work, immediately send them home, clean and disinfect their workspace, and consider any employees with close contact to that employee as exposed.

Tell employees that if they know they have been exposed to COVID-19 to tell their supervisor and follow CDC-recommended precautions.

How to Save on Insurance During the COVID-19 Pandemic

Every dollar counts right now, so here are a few tips that could help lower your Restaurant Insurance costs during the COVID-19 pandemic. Check with an experienced insurance agent to determine which of these tips apply to your situation.

  • Lower your estimated payroll on your Workers’ Compensation Insurance.
  • Drop Workers’ Compensation insurance altogether. Purchase again when employees are rehired.
  • Lower the estimated sales on your General Liability Insurance.
  • Change your vehicle usage to pleasure use on your Commercial Vehicle Insurance.
  • If you currently have Liquor Liability Insurance and are not serving liquor, remove the insurance from your policy. Purchase again when you begin serving alcohol.
  • Remove Employment Practices (sexual harassment, discrimination, etc.) coverage if your business is closed, and everyone is laid off.
  • Remove all “non-essential” insurances.
  • Ask your insurance company for maximum discounting due to the pandemic.
  • Ask an independent agent to make some price comparisons on your coverage. With insurance sales down everywhere, you may be able to find a lower rate for the same coverage.

Start Saving on Restaurant Insurance Today!

These are just some of the ways to save on Business Insurance during this pandemic. If you're ready to start saving then give one of the independent agents at American Insuring Group a call at (800) 947-1270 or (610) 775-3848 or connect with us online. We would love to help you save money on your Business Insurance during these uncertain times!

Tags: Restaurant Insurance, Commercial Liability Insurance, Business Interruption Insurance

What You Need About Saving on Contractor Insurance

Posted by David Ross on Sun, Feb 09, 2020

Contractors_InsuranceFor many contractors, talking about Contractor Insurance is probably the equivalent of a root canal, but it doesn’t have to be that way. Finding an insurance agent who specializes in contractor’s insurance – like the American Insuring Group – takes a lot of the guesswork out of purchasing insurance.

However, it’s always wise to have a basic understanding, so you know what questions to ask and understand what your agent is recommending. Here is what you need to know about Contractor Insurance:

Who Needs Contractor Insurance?

Obviously, contractors need contractor insurance. That includes general, concrete, excavation, masonry, sheet metal, and paving contractors. But Contractor Insurance goes beyond protecting contractors. 

Here is a list of occupations/businesses that can benefit from Contractor Insurance:

  • Appliance Repair Technicians
  • Carpenters
  • Debris removal
  • Electricians
  • Handymen
  • Interior construction
  • Locksmiths
  • Painters
  • Plumbers
  • Property preservation
  • Roofers
  • Snow and ice removal
  • Stucco and plastering

What Type of Insurance do Contractors Need?

Many factors go into the type of insurance policies you need, including whether or not you have employees and what outside parties you may be involved with (i.e., lenders, municipalities, etc.) require.

Here are the most common types of Contractors Insurance that help protect your business from injuries (employees, vendors, etc.), damage, lawsuits, and more.

Commercial General Liability (CGL)

Every contractor should have CGL because the construction industry comes with many risks.  CGL covers basic construction risks, such as lawsuits against your company, along with third-party injuries (visitors to your worksite) and property damage.

For example, if a visitor trips over a wire or slips and falls on a wet surface at your place of business or a worksite, you could be blamed for the injury. CGL typically covers attorney fees, judgments against your business, settlements, medical bills, and funeral expenses.

Another example where CGL can come in handy is f your ladder falls on a customer’s TV and damages it. CGL can help pay for the cost to repair or replace the TV. It can also help cover costs if that customer files a lawsuit against you.

Commercial Automobile Insurance

If you or an employee is driving a company-owned vehicle and is in an accident or causes damage, commercial auto insurance can help cover the cost of property damage, medical bills, lawsuits, and other expenses that can result from an accident.

If you drive a construction vehicle, transport tools or equipment, or have employees run errands for you, you should have Commercial Auto Insurance

Builder’s Risk Insurance

Builder’s Risk Insurance (Aka Course of Construction Insurance) can pay for damage resulting from fire, vandalism, or theft of tools, materials, and property while a structure is under construction.

Commercial Property Insurance

Commercial Property Insurance helps pay for repairs or replacement of your building, along with furniture, supplies, etc. if it is lost, stolen, or damaged.

Inland Marine Insurance

Commercial Property Insurance does not protect your property if it is not at the location listed on the policy. This is where Inland Marine Insurance comes in. It covers products, tools, and equipment while in transit or stored off-site (like a job site).

Workers’ Compensation (WC)

In Pennsylvania, most employers are required to carry Workers’ Compensation Insurance for their employees. If an employee is injured while working, WC can help pay for medical costs and lost wages.

Providing WC insurance to your employees also helps protect you against an injured employee suing your company. In most cases, injured employees are prohibited from suing their employers if WC is provided.

Professional Liability Insurance

Professional Liability Insurance (A.k.a., Errors and Omissions Insurance) covers legal expenses if you are sued for things like unsatisfactory, late, or incomplete work.

 

👉 Contact Us to Save on Contractors Insurance!

The cost of contractor’s insurance can vary significantly depending on your coverage and your deductible. Other factors that determine the cost of your premiums include what services you provide, your revenue, your location, and the number of employees.

  • You may lower costs by bundling liability coverages into a package called a Business Owner’s Policy (BOP).
  • You may lower costs by creating a safer work environment that results in fewer injuries and fewer claims.
  • You may lower costs by working with an independent agent – like those at American Insuring Group – who can compare the cost of your coverage with several companies to ensure you’re paying the lowest premiums for the coverage.

Have more questions about saving on Contractors Insurance costs? The independent agents at American Insuring Group specialize in Contractors Insurance and can help you get the best price on the coverage you need, whether you're in Philadelphia, Pittsburgh, Erie, Berks County, or anywhere in PA or surrounding states.

Give us a call today at (800) 947-1270 or (610) 775-3848 or connect with us online!

Tags: Workers Compensation Insurance, Construction Insurance, Contractor Insurance, Commercial Liability Insurance, Commercial Insurance