Cable Installers

Necessary Insurance Policies for Cable Installation Businesses

Cable television and internet services are a regular part of the lives of most people in 2019. Cable installers provide a service that installs programming over both fiber optic and coaxial cables. The services can be sent both digitally or by satellite. Cable installers may lay lines or cables throughout a property. Because the work is done primarily on third party locations and the properties vary greatly, there is a lot of risk involved in the industry. Business that operate in this industry need to take insuring the business seriously. Taking an additional amount of time to think about the risks the business face, thinking about what could go wrong, and how leadership might prevent these risks from taking place are strongly recommended for any cable installation business. Speaking with an independent insurance agent can help make the purchasing decision easier. Here are five policies all cable installers should strongly consider.

Installation, Cabling, Electricity, and Electrical done by a cable installer.

Recommended Insurance Programs for Cable Installation

Minimum recommended coverage:

  • General Liability
  • Workers Compensation
  • Inland Marine Coverage
  • Commercial Auto Insurance
  • Business Personal Property

General Liability

General Liability Insurance is the first line of defense for cable installers looking to protect themselves from the liability faced to outside third parties. This policy covers basic liability, but is not all encompassing. It is important to take an adequate amount of time to discuss with an insurance agent what exactly the employees of a business do and do not partake in on a daily basis. There are more than likely additional policies any business will need in addition to general liability insurance.

Workers Compensation

Workers Compensation Insurance is required by law for most businesses in most states. The policy protects injured employees with coverage for medical costs and some lost wages while they are hurt and not able to work. Many contracts require a business to provide a certificate of insurance proving they have both GL and WC insurance. There are some states that have exclusions depending upon the number of employees and the annual revenue of the business. If the business is owned by one person and that person is the only employee, there is a ghost policy that is much cheaper to purchase and will meet the demands of most contracts.

Inland Marine Coverage

Inland Marine covers tools and specialized equipment that is frequently in transit. If the tools are damaged while working or being stored at a third party location, the inland marine policy will cover to repair or replace the tools.

Commercial Auto Insurance

Commercial Auto Insurance is needed if the business has employees who operate vehicles that the business owns. If the employees use their personal vehicle for business purposes, a hired and non-owned auto needs to be purchased either instead of or in addition to a commercial auto insurance policy. When an employee causes a wreck while on company time, the business is liable for the damages to outside third parties. The employee is not liable. Failing to secure the proper type of commercial auto insurance can result in a large loss the business is responsible for.

Business Income with Extra Expense

Business Income with Extra Expense Coverage is designed to cover expenses during a time when the business is interrupted or fully shut down as a result of a covered loss. It is important to remember the underlying loss has to be covered. If the loss is caused by a flood, earthquake, or tornado; and the business does not have proper coverage in place; the business income policy is not triggered. This is another reason why it is so crucial to speak long and honestly with your insurance agent and not base your purchasing decision solely on price.

Additional Policies to consider:
Building, Equipment Breakdown, Contractors Equipment, Cyber Liability, Employment Practices Liability, and Umbrella Coverage.

Cable Installers also work with satellites.

Cable Installation Liability Classification Codes

Commercial insurance companies use various liability classification systems in order to classify and rate coverage premiums for Cable Installation. Here are the most common business insurance classifications for Cable Installers:

Business Liability Category: TV and Media Installation

SIC Business Insurance Codes:

  • 4841: Cable and Other Pay TV Services

NAICS Liability Classifications:

  • 517110: Wired Telecommunications Carriers
  • 515210: Cable and Other Subscription Programming

Business ISO General Liability:

  • 91315: Cable and Subscription TV Companies

Common Workers Compensation Class Codes:

  • 7536: Cable Installation and Construction
  • 8901: Cable and Telecommunications—Office Employees
  • 7600: Cable TV or Satellite—Other Employees and Drivers
  • 6325: Conduit Construction—for Cables or Wires
  • 8742: Outside Sales Persons

Mortgage Brokers

Recommended Insurance Coverages for Mortgage Brokers

Mortgage Brokers are an essential part of the economy i 2019. They act as middlemen helping realtors get home buyers the best solutions to all their mortgage needs. Mortgage Brokers are individual financial institutions that lend the funds for the purchase of property. The properties can be for both business and personal use. Some mortgage companies also service escrow accounts, offer some real estate services, and some even broker or sell mortgage loans to other operations. With each type of service the business offers additional risk is taken on by the financial institution. Here are five types of insurance all mortgage brokerage businesses should consider.

Picture of a house with a Mortgage Broker handing the keys to the new homeowner.

Minimum recommended coverage:

  • General Liability
  • Workers Compensation
  • Errors & Omissions (Professional Liability)
  • Hired and Non-Owned Auto
  • Property Insurance

Answers to your Mortgage Broker Insurance Questions.General Liability

General Liability Insurance for Mortgage Brokers is usually the first type of coverage a broker needs. It protects the broker from common slips, trips, and falls. These incidents can happen at the location of the mortgage broker or at a third party site. A General Liability Policy can cover damage in the form of bodily injury and property damage.

Workers Compensation

Workers Compensation is typically the second policy the owner of a mortgage brokerage service discusses with their insurance agent. This is because General Liability and Workers Compensation are required by law for most businesses in most states. Workers Compensation covers a business for injuries to employees that happen within the normal course of business. The policy covers medical costs and some lost wages for injured employees who are hurt and not able to work. Implementing a well-documented safety program and focusing on ergonomics within the workplace can help limit the amount of injuries your employees experience.

Errors & Omissions (Professional Liability)

Errors & Omissions is frequently referred to as Professional Liability. In other industries it may be referred to as malpractice. This type of insurance protects businesses and their employees from claims of negligence or  inadequate work. Any business that gives professional advice for a fee needs to secure an errors and omissions insurance policy.

Hired and Non-Owned Auto (full commercial auto if vehicles owned)

Car Accident with a red car flipped over lying upside down. Hired and Non-Owned Auto Insurance is designed for when an employee uses their personal car or when an employee drives a rental car for purposes. It is common for a mortgage broker to meet at a third party site for many business functions. When they are driving to and from these appointments, the business is liable for damages occurred when the employee causes a wreck. A Hired and Non-Owned Auto Insurance Policy can protect the business, up to the limits of the policy, from the liability it faces when an employee causes an accident while on company time.

Property Insurance

Commercial Property Insurance is designed to protect any business from both legal liability and property damage related to the building they operate in regardless of whether the business owns or leases the facility. Most commercial property insurance policies provide coverage for a wide variety of damages that usually include fire, smoke, wind, vandalism and civil disobedience. The policies frequently list included and excluded damages. Some common exclusions often include damages resulting from earthquakes and hail. These damages may have a separate deductibles or be excluded from coverage altogether. One thing to ask your agent when purchasing commercial property insurance is the differences between actual cash value and replacement cost.

 

Other coverages to consider for Mortgage Brokers:
Business Personal Property, Extra Expense, Financial Institutions Bond, Accounts Receivable, Computers, Valuable Papers and Records, Directors and Officers Liability, Employee Benefits, Umbrella Coverage, Computer Fraud, Extortion, Cyber liability Insurance (Data Breach Coverage), EPLI and Mortgage Errors & Omissions.

Mortgage Brokers Liability Classification Codes

Commercial insurance companies use various liability classification systems in order to classify and rate coverage premiums for Mortgage Brokers. Here are the most common business insurance classification for Mortgage Companies:

Business Liability Category: Financial Institutions

SIC Business Insurance Codes for Mortgage Brokers:
  • 6162: Mortgage Bankers and Loan Correspondents
  • 6163: Loan Brokers
NAICS Liability Classifications:
  • 522292: Real Estate Credit
  • 522390: Activities Related to Credit Inter-mediation
  • 522310: Mortgage and Non Mortgage Loan Brokers
Business ISO General Liability for Mortgage Brokers:
  • 61223: Banks and Other Financial Institutions
  • 61226: Office—Other Than Non-Profit
  • 61224: Office—Building Occupied by Business Employees
Common Workers Compensation Class Codes:
  • 8810: Office and Clerical
  • 8772: Outside Sales and Messengers

10 Types of Liability Insurance Every Small Business Should Consider

Liability Insurance is the Bedrock of a Small Businesses Shield of Protection

Liability Insurance is a way businesses can go about protecting itself from liabilities the business faces that are beyond the funds the business has on hand to cover. General Liability is required by law for most businesses in most states, but this is usually not the only type of liability insurance coverage a business should secure. Partnering with an experienced insurance professional with whom you trust is the first step to properly protecting a small business. This professional can help advise a business owner just what types of risks they face and just what types of insurance policies they should secure. Here are 10 types of liability insurance coverage every small business owner should consider securing.

Small Business Liability Insurance Coverage

General Liability Insurance Coverage

General Liability Insurance is required by law in most states and protects a business from lawsuits, bodily injury, property damage, personal injury and completed work. Two components are included in general liability insurance. Those two components are public and product liability. Public liability protects a business from third-parties filing suit against a business. The suit can be for something as simple as the third party slipped and fell in your store. No matter how trivial the suit is, it can amount to an enormous legal bill to protect the reputation of a business. Product liability protects a business for products or completed work. When a business makes or sells a product, the business is responsible for what happens with those products. It is important to remember product liability does not provide coverage for claims of defective or faulty design alone unless that defect causes injury or damage.

Professional Liability Insurance

Professional Liability Insurance Coverage is also frequently referred to as Errors and Omissions, E&O, or Medical Malpractice. Professional Liability covers a business for financial losses suffered by third-parties due to professional advice given by the insured. The types of professionals who need this type of coverage include: Accountants, Attorneys, Real Estate Brokers, Consultants, Physicians, Architects, and Engineers. A Professional Liability Insurance Policy does not cover bodily injury or property damage, these claims are usually covered by a general liability policy.

Cyber Liability Insurance Coverage

Cyber Liability Insurance is a type of liability that protects a business from the liability the business faces to third parties for a data breach that occurs within the organization. Cyber Liability Insurance covers the costs associated with the liability of a claim or suit related to a data breach, but it does not cover the first party damages to the business.

Dram Shop Liability Insurance

Dram Shop Insurance Coverage applies to businesses that sell and serve alcohol. A Dram Shop Liability Insurance covers a business for personal injury caused by an intoxicated customer. Dram Shop Liability grew from laws passed dealing with the actions of intoxicated patrons who were served when the business knew the patron was severely intoxicated. According to Vernet v. Serrano-Torres, 566 F.3d 254 (1st Cir. P.R. 2009), it was held that the theory of dram-shop liability has been described as one where a bar or tavern may be liable for the wrongful or injurious actions of a patron, if it served alcohol to that patron after it knew, or should have known, that the patron was already intoxicated.

Directors and Officers Liability Insurance is a type of liability insurance that is paid out to the officers and directors of a company or organization, as reimbursement for losses or advancement for defense costs in the event an insured faces a lawsuit as a result of alleged wrongful acts in the officers or directors capacity as a leader of the organization. Directors and Officers of a corporation or a non-profit may be liable for damages if they damage the organization in breach of their legal duty, if they mix personal and business assets, or if they fail to disclose any and all conflicts of interest.

Employer Liability Insurance Coverage

Employer Liability Insurance is an extremely important part of every businesses workers compensation insurance. Workers’ compensation pays a workers medical costs and some lost wages if they are hurt while on the job. If an employee feels their workers compensation benefit has not provided them enough, they can sue a business for damages. Some of those damages and the legal fees associated with those suits are covered under an employer liability insurance policy.

Product Liability Insurance

Product Liability Insurance Coverage protects a business from lawsuits that result from injuries, illnesses, or property damage linked to a product made by a business. These damages include manufacturing error, faulty design, malfunctions, and even misuse. This applies to manufactured products no matter if they are simple or complex.

Umbrella Liability Insurance Coverage

An Umbrella Insurance Policy is a type of coverage that sits on top of other existing policies. When there is a covered loss and the limits of that policy are met, the Umbrella Policy kicks in to cover additional costs up to the limits of the Umbrella Policy. They key part of this policy to understand is that the claim causing the loss has to be a covered loss. An Umbrella Insurance Policy does not cover additional losses that are not covered. The policy only kicks in when the limits of an existing policy are met.

Employment Practices Liability Insurance

Employment Practices Liability Insurance (EPLI) can protect a business in the event the business faces a lawsuits related to hiring, employing, and terminating employees. EPLI can protect a business when someone files a claim due to misconduct or violation of labor laws. These lawsuits could include claims of employee discrimination, wrongful termination, discrimination (age, racial, gender), breach of contract, sexual harrassment, or emotional distress.

Business Owner’s Policy (BOP)

Businesses can package all of the necessary liability policies in to a Business Owner’s Policy (BOP). A BOP includes several different policies.  They are usually designed for a specific industry because a carriers uses historical claims data to know which types of claims are common for businesses within a particular industry. BOP’s can be altered to meet the needs of a business and the level of risk a business owner is willing to take and most times carriers will offer a discount for buying multiple policies in one package.

3 Types of Liability Insurance Every Technology Company Should Have?

General, Professional, and Cyber Liability Insurance

Technology Companies have enormous risks. Those risks depend upon whether the business sells or services technology products. Some businesses store data about the businesses customers. Other businesses create technology that other businesses use to store the data of those customers. No matter what type of risk a business faces, there are three types of liability insurance all technology companies should secure. Those policies are General, Professional, and Cyber Liability Insurance.

Technology Liability Insurance

General Liability Insurance

General Liability Insurance for Small Business is the most important type of insurance policy a company can secure.  General Liability Insurance helps policyholders from the third party risks associated with lawsuits and other types of claims. Those claims include bodily injury and property damage that is caused by direct or indirect actions of the insured. For most businesses a general liability claim can be for something as simple as a customer slipping on wet floors inside a restaurant or when when a product sold breaks and causes an injury. For technology companies, General Liability Insurance will cover legal expenses when a business is sued for customer injuries, property damage, and slander. For many within the insurance industry, general liability insurance is referred to as the first line of defense for a business. It should not be the only coverage a business secures.

Professional Liability Insurance

Professional Liability Insurance is also referred to as Errors and Omissions Insurance. Professional Liability Insurance is coverage for professional businesses that give expert advice or provide technology services for a fee. The coverage prevents businesses from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in a civil lawsuit.

Here are five types of claims that are commonly covered by a Professional Liability Insurance Policy:

  • Breach of Contract: Breach of Contract that occurs when one or both parties do not live up to a contract that was previously agreed upon.
  • Fraud: Fraud occurs when one party intentionally lies or deceives for financial or personal gain.
  • Negligence: Negligence occurs when one party fails to use reasonable care that results in damage or harm to another person, business, or organization.
  • Breach of Warranty: Breach of Promise occurs when a person or business promises something to a customer in a warranty, and the business is unable to keep the promise made by the product or contract.
  • Misrepresentation: Misrepresentation occurs when a person or business makes a false claim to convince another person or party into a contract.

Cyber Liability Insurance

Cyber Liability Insurance covers the insureds liability for damages that result from a data breach. It does not cover immediate response costs that a business faces after a data breach. A Cyber Liability Insurance Policy is a type of insurance that protects businesses that sell and service technology. A data breach can result from something as small as an employees laptop being stolen while going to the bathroom at a coffee shop, but it can also result from an employee clicking on a phishing email. Data breaches are no longer just a problem for bug businesses. Both the Target and Home Depot Data Breaches started by hackers first accessing the computer systems of a small business who were partners with the bigger business. As most enterprise level business take cyber security more seriously, this is becoming a much more common way for businesses to become victims of a data breach.

Pest Control Insurance Needs

Pest Control Companies Face Unique Risks

Pest control companies provide services to commercial and residential customers who have problems with insects, rodents and other nuisances on their property. The fumigator or exterminator determines the type of pest and the most effective method of extermination. These methods should always be the method that will cause the least amount of disruption to the customer, regardless if the customer is an individual or a business. Because these businesses are constantly interacting with customers off-premise and the nature of the chemicals they are using, risks in this industry are high.

In order to manage risks properly, pest control companies need to have thorough training procedures for all employees.  Those training programs should include safety programs to keep the employees and the clients safe at all times. In addition to adequate safety programs, pest control companies need to acquire adequate insurance coverage to protect the business from the unique risks each business faces. Here are six types of insurance coverage every pest control company should have.

Pest Control by Fumigation

Minimum recommended coverage for a Pest Control Company:

  • General Liability Insurance
  • Commercial Property Coverage
  • Business Personal Property Insurance
  • Commercial Auto Coverage
  • Inland Marine Insurance
  • Workers Compensation Coverage

General Liability Insurance for Pest Control

General Liability risks arise for pest control companies when employees travel off-premises in order to applying chemicals. Customers should be given proper instructions on controls regarding anyone or anything that could be exposed to hazardous materials while the application is going on. This is especially important for clients who have children, pets, sick and elderly individuals. In some instances, temporary evacuation is required during application. This may be  followed by a waiting period and re-ventilation to replace the fumigant with fresh air.

Commercial Property Coverage

Commercial  property risks depend on the type of property you own and operate as well as the types of chemicals being stored on the property.  It also depends on the amount of these chemicals you keep on the property and whether or not those chemicals are flammable. Hazards increase if the contractor fails to store the chemicals properly in approved containers, cabinets and rooms, with accurate labeling and separation. Speaking long and honestly with your independent insurance agent is always the best way to properly protect your business. This conversation should include exactly what the employees of your business do on a daily basis, what is the condition of the property you operate, and exactly what chemicals you are storing on the property.

Business Personal Property Insurance

Business Personal Property Insurance provides coverage to small businesses for furniture, fixtures, merchandise, materials and all other personal property owned by you personally and used in your business. The best part about this coverage is that it is generally at replacement cost. Many business owners think this type of loss is covered by their commercial property insurance, but it is not. This coverage can and should be added to most BOP or CPP Packages if there is a need for this coverage.

Commercial Auto Coverage for Pest Control

Automobile exposure in the pest control industry is extremely high due to the amount of time employees spend in their vehicles travelling to clients locations. In addition, there is the fact that the employees are also transporting chemicals throughout their workday. Drivers in some states may need a hazardous materials (“hazmat”) endorsement to transport some chemicals used. Risks increase if the insured lacks spill control procedures and equipment.

Inland Marine Insurance

Inland marine exposures in the pest control industry come primarily from the contractor’s equipment and the transporting of that equipment, chemicals and supplies to the customers’ premises. Equipment is not highly susceptible to damage, but it can be hazardous to both your employees and clients.  This equipment may include tarps, drills, measuring devices and other hand tools. The tarps and plastics used to enclose the areas to be fumigated may be bulky and require attention to folding and tying down. The chemical containers may be vulnerable to overturn or damage that causes leaking, which impacts the auto and premises liability exposures.

Workers Compensation Coverage

Workers compensation exposure can be high for the Pest Control industry. Common hazards include slips and falls during application; minor injuries while using hand tools; lifting injury and back injuries, hernia, sprain and strain. Employees can experience lung, eye, or skin irritations due to the chemicals. The impact of these chemicals can be immediate or long term.  In some Pest Control companies seasonal employees may make safety a challenge. Loss potential becomes severe if the contractor fails to train and supervise employees properly. This is especially important when it comes to the proper use of protective gear by the employees.

 

Business Liability Category: Pest Control Contractors

SIC Business Insurance Codes:

  • 7342: Disinfecting and Pest Control Services
  • 2879: Pesticides and Chemicals—Not Classified Elsewhere

NAICS Liability Classifications:

  • 561710: Exterminating and Pest Control Services
  • 325320: Pesticide and Agricultural Chemical Manufacturing

Business ISO General Liability:

  • 43860: Fumigators
  • 43470: Pest Control Services

Common Workers Compensation Class Codes:

  • 9014: Janitorial Services by Contractors (Florida—Exterminators)
  • 4828: Chemical Blending and Pest Control Fumigation
  • 9031: California Code—Pest Control—All Operations
  • 0046: Massachusetts Code—Pesticide Application

Law Firms

Law Firms

Attorneys, Independent Lawyers and Law Firms work in many different types of law. Some attorneys specialize in providing legal counsel to financial services companies. Other Lawyers specialize in disability cases. Still other law firms specialize in general practice. Each different type of law brings with it, the possibility to be liable for damages. With each unique type of risk there are specific insurance coverages that a business in the law profession may need. Here are 6 Coverages every all law firms should strongly consider.

Law Firms

Recommended Insurance Programs for Attorneys and Law Firms

Minimum recommended coverage:

  • General Liability
  • Professional Liability (Malpractice Insurance)
  • Property Insurance
  • Hired and Non-Owned Auto
  • Business Income with Extra Expense
  • Workers Compensation

Other coverages to consider for Law Firms:
Business Personal Property, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, Employee Benefits Liability, Umbrella Liability, Auto Liability, Building, Computer Fraud, Forgery, Employment Practices Liability (EPLI), Business Auto Liability and Physical Damage.

Insurance needs for Law Firms.

General Liability

General Liability Insurance is needed by all businesses. It is required by law in nearly all states for most businesses. This coverage will protect your business from the risks you face when the open public comes in to your facility. The risk of slips, trips, and falls is low because of the lack of a large volume of customer coming and going from the facility.

Professional Liability

Professional Liability risks are much higher in the Law Profession. Most Attorneys refer to this type of coverage as Malpractice Insurance. This type of coverage protects professionals who provide professional advice and services. This is at the heart of what lawyers do. If law firms offer advice to a client and the outcome is not desirable, the client has the ability to sue the lawyer for that advice. Even if the claims are unfounded, it can take an enormous amount of time, energy, and money for lawyers to defend themselves. This coverage can reimburse law firms for these costs up to the limits of the policy.

Property Insurance

Commercial Property Insurance is necessary if the law firm owns the property you operate your office. It is important to consult with your insurance agent about what exactly is and is not covered under your policy. The coverage will likely cover the building, structure and foundation; but if you have specialized equipment you may need additional coverage. If you live in an area where natural disasters are common (Floods, Hurricanes, Tornadoes, Etc.) you more than likely need this coverage or the damage resulting may not be covered.

Hired and Non-Owned Auto

If your business owns vehicles and you or your employees use those vehicles for business purposes than you need commercial auto coverage. More than likely, you do not own a business vehicle. Still you and your employees may periodically use your personal cars for business purposes. This is when a Hired and Non-Owned Auto Policy is necessary. Because the employee is in the car on business purposes than the liability to third parties is the liability of the business, not the individual. If your employee causes a wreck, the damages occurred as a result of that wreck are the liability of the business. This coverage will help in just these types of situations.

Business Income with Extra Expense

Business Income with Extra Expense Coverage will cover a law firm for loss of income suffered by a business when damage to its premises (by a covered cause of loss) causes a slowdown or suspension of its operations. Coverage applies to loss suffered during the time required to repair or replace the damaged property. The key part of this coverage is the covered loss portion of the policy. If your business is damaged because of a flood or an earthquake and you do not have this coverage, the business income and extra expense policy will not kick in. If the damage is because of a fire and it is covered by your commercial property policy, than the additional policy will kick in. For this reason it is wise to work with one insurance agent and make sure they are dealing with one or a few carrier to provide you optimal coverage. This will prevent gaps in coverage and speed up the time to process your claim.

Workers Compensation

Workers Compensation Coverage is required by law in most states for most attorneys. There are some exceptions in some states, so it might be worth your time to check with the proper governing agency in the state your law firm operates. Even if your business is eligible for an exemption it is more than likely beneficial for your law firm to still secure coverage. One expensive injury to an employee can result in a large cost to a business. In many scenarios the losses cause a business to close for good.

The risks associated with workers compensation are fairly low in this industry. Long term Repetition injuries like carpal tunnel may occur from employees sitting at a desk for long periods of time. Having adequate safety programs and offering desks that allow employees to stand may be beneficial to your business. This additional desk may be expensive, but an injured employee who is out of work for three months because of surgery can be significantly more expensive. Partnering with an experienced independent insurance agent can help you determine if you need this coverage.

 

Justice is found through the work done in Law Firms.

Attorney Liability Insurance Classification Codes

Commercial insurance companies use various liability classification systems in order to classify and rate coverage premiums for Lawyers. Here are the most common business insurance classifications for Attorneys:

Business Liability Category: Service Business

SIC Business Insurance Codes:

  • 8111: Legal Services
  • 9222: Legal Counsel and Prosecution

NAICS Liability Classifications:

  • 541110: Law Office or Legal Firm
  • 922130: Legal Counsel and Prosecution
  • 541120: Notary Office
  • 541199: All Other Legal Services

Business ISO General Liability:

  • 66122: Lawyers Offices

Common Workers Compensation Class Codes:

  • 8820: Attorneys—All Employees

Auto Repair

5 Insurance Coverages every Auto Repair Business Should Have

Auto Repair Shops offer a wide variety of mechanical services. These services may include from engine repair and tune-ups. Some businesses specialize in a specific type of sales and repair, like tires, transmissions or brakes. Normally, auto repair shops do not specialize in body work or painting operations. These services are typically performed by specialized professionals. Some operations include the retail sales of automobile parts and tools. Some repair shops are a part of a gasoline or diesel fuel sales operation, or part of an automobile dealership. Each type of operation has its own unique risks and its own unique insurance needs. Here are 5 coverages every auto repair shop owner should strongly consider, in order to properly protect their business.

Auto Repair Shop

 

✓ General Liability Insurance
✓ Garage Keepers Liability
✓ Commercial Auto
✓ Hired and Non-Owned Auto
✓ Workers Compensation Insurance

General Liability

General Liability Exposure can come in many different forms. Like many industries the risk begins with slips, tips and falls by third parties on your premises. This risk starts primarily due to public access to the businesses facility. Risks also arise from having cars parked overnight in the parking lot of the facility.  These areas should be well lit and an ongoing relationship with local law enforcement is advisable.

Garage Keepers Liability

Garage Keepers Liability is usually worded as, “a form of bailee liability designed to cover damage to autos belonging to others while in the insured’s care”. In layman’s terms this is an insurance policy for the liability a business might face related to cars that are stored at their facility for multiple days.  These are other peoples cars that your business is performing a service on that is not able to be completed in one day.

Commercial Auto

Commercial Auto Insurance is needed if your business owns its own vehicles and employees use the vehicle for business purposes. If you own and operate vehicles at your business, it is important to properly train all people who are going to be operating the vehicles. Collecting and documenting these employees motor vehicle records is recommended. Both the training program you have in place and the vehicle records you collect need to be well documented for when you quote new coverage and when a claim arises.

Hired and Non-Owned Auto

Hired and Non-Owned Auto Risks mainly arrive from employees running errands for the business.  If you have employees partaking in these types of activities, all drivers should have valid licenses and their motor vehicle registrations regularly checked. Have these records documented can help you independent insurance agent save you when quoting coverage.

Workers Compensation

Workers Compensation Insurance risks can be significant for auto repair shops. Employees are at risk when performing brake tuning, welding or other repair work. These activities should take place only with appropriate safety equipment. Lifting of a vehicle by hoists, jacks, and other mechanical means can result in injury should the equipment malfunction. Lifting by non-mechanical means can result in back injury, sprains, strains or hernias. Having a documented policy in place for how employees are supposed to do these activities is crucial to prevent injured employees.

Auto Repair Shop Insurance Information at My Insurance Question.

Here are the most common commercial insurance classification codes for auto repair shops.  

SIC Business Insurance Codes:

  • 7533: Automotive Exhaust Repair Shops
  • 7538: General Automotive Repair Shops
  • 7532: Body, Paint and Upholstery Repair

NAICS Liability Classifications:

  • 811111: General Automotive Repair
  • 811112: Automotive Exhaust System Repair
  • 811113: Automotive Transmission Repair
  • 811118: Other Automotive Mechanical and Electrical Repair and Maintenance
  • 811121: Automotive Body, Paint and Interior Repair and Maintenance
  • 811122: Automotive Glass Replacement Shops
  • 811198: All Other Automotive Repair and Maintenance

Business ISO General Liability:

  • 10072: Automotive—Quick Lube
  • 10073: Auto Sales, Repair and Service
  • 10075: Automotive Repair Shop—Self Service

Common Workers Compensation Class Codes:

  • 8380: Auto Repair
  • 8393: Auto Body Repair or Paint Shop
  • 9516: Auto Shop—Radio and Equipment

Here is a great video about Auto Repair Shops and Workers Compensation Insurance  from our partners at Employers.

 

Rental Property Insurance

When you own rental property with it comes a certain amount of risk. There are ways to lessen the amount of risk your or your business faces by properly preparing your business and purchasing adequate insurance coverage.  Here are 3 types of insurance you or your business need to secure when you own rental property.

If you own Rental Property, you need to determine what kinds of insurance your business actually needs?

 

If you or your business own rental property, there are certain insurance coverages you need to secure. Find out the best info at My Insurance Question.com

Three Policies every rental property owner should have. 

General Liability Coverage

General Liability Insurance in most cases is the first type of insurance a business or investor purchases. General Liability and Workers’ Compensation Coverage are required by law in 48 out of 50 states. For this reason, most business owners start with these two coverages and later determine if they need additional insurance.  GL Insurance covers a property owner for any liability they might face to thirds parties.  Some liabilities you may face include when a tenant or visitor are injured due to the landlord’s negligence, when a property maintenance issue results in a tenants’ injury or personal property loss or when a tenant is injured as a result of the landlord’s failure to keep the premises safe and in good working order.  Now these are just a couple of the types of liability a property owner may face.  Other risks you or your business face include losses due to fire, storm, tenant or employee theft and even discrimination lawsuits filed by tenants or employees. A lawsuit does not have to be legitimate to cause you or your business to incur enormous legal costs. Having the proper insurance in place can limit the damages to you or your business if you do face a lawsuit.

Commercial Property Insurance

Commercial Property Insurance is frequently the second coverage a property owner will secure.  When looking to acquire a commercial insurance policy it is important to secure an accurate valuation of the property. A Commercial Property Insurance Policy are just a little bit different than a personal home owners policy in that they are sold on either a replacement cost or on an agreed upon value. For most businesses the replacement cost policy is almost always the best type of policy to secure. This type of policy will pay to not only rebuild the property but also to demolish and haul away any and all debris. This additional cost can be substantial.

Business Loss of Income

Business Loss of Income Coverage is the third and final type of insurance all rental property owners should purchase. A business loss of income insurance policy will cover you or your business for the income lost during the period when a rental property is uninhabitable.  For example, if your building is damaged by a hurricane; this coverage kicks in to cover missed rent payments you or your business would have collected while the property is being repaired. Frequently this coverage is paid based upon documented actual revenue, which is good for property owners because you have a lease stating how much revenue the property generates.  Depending upon the policy you can collect payments for lost rent for up to 12 months after a loss.

 

4 Big Misconceptions about Commercial Liability Insurance

General Liability Insurance covers your employees

Basket on a beach with a nail sticking out showing the need for liability insurance.

General Liability Insurance only covers your businesses liability to third parties. Third parties do not cover your employees.  Bodily injury claims that involve your employees would involve a workers compensation policy.

 

Insurance rates solely depend on a businesses claims history

There are many factors that go into what your business pays for commercial insurance and the businesses claims history is one of those factors.  The size of your business, the industry you operate in, the class code within your industry, the years in business, how many employees you have, the revenue of your business and where your business is located also go in to what a carrier uses to determine a rate on premium.

Many businesses cannot afford insurance

There are many ways to save on commercial insurance.  If price is important to your business than express that to your agent.  They can negotiate on your behalf for better rates, deeper discounts or larger credits on premium.  If you have well-documented safety programs in place than express that to your agent as well and they can use it to get a better rate. Another way to save on premium is to choose the pay as you go method for some coverages.  This can allow your business to get coverage in place with a significantly less up-front cost.

 

If I have Workers’ Compensation Coverage my employees cannot sue my for anything

Workers’ Compensation Coverage can protect your business from injuries that occur as a part of normal business operations. Employees can sue your business for any reason at any time and it can cost your business a large amount to defend. The accusations do not have to be founded to rack up a lot of legal defense costs. Also, if your business does not have the proper safety precautions in place or if it is found that the injury resulted because of carelessness of the business or its leadership can cause you to be liable for damages.

Insurance is all-encompassing

In most states, workers compensation and general liability insurance are required by law.  They are the bare minimum coverage that a business needs to legally be in business, but they are not enough coverage to adequately protect most businesses. For this reason, it is important to partner with an experienced independent insurance agent.  They can negotiate with the carriers to get your business better coverage at rock-bottom prices.

3 Factors Affecting Your General Liability Insurance Rate.

Many business owner’s and managers frequently wonder what goes in to their General Liability Insurance Rate for their small business. Many compare their costs with fellow business owners or friends and family who run other businesses. Depending upon your industry, this may cause some shock when they find out how much more they pay than other businesses in different industries. Every state and every insurance company determines their own way to determine your businesses General Liability Insurance Rate. There is not one set in stone way to determine how much to charge for coverage.  There are three main factors that weigh heavily on what you pay for General Liability Coverage: The size, the class code and the loss history of your business.

Find tips to positively impact your general liability insurance rates at My Insurance Question.com

The size of your business

For most businesses this is the physical dimensions of your property times a number determined by your classification code. The condition and age of your property mean a lot for this rate as well.  Underwriters will examine the age and complexity of the construction.  Whether the building is up to code means a lot to the insurer. Generally, newer construction lowers your rate, while older construction tends to raise your businesses General Liability Insurance Rate.

Class Code

General Liability Insurance Class Codes are determined by the activities your business partakes in. In order for this to be accurate, it is important to be honest with your agent about everything your business does and does not do on a daily basis. You can understand the differences in risk from a accounting office compared to a rooking business.  Even small differences in a business can have an effect on your class code.

Take for instance commercial versus residential cleaning businesses. Commercial cleaning businesses typically have employees who drive to one location, clean the building and go home. A residential cleaning business typically has employees who are going to more than one residence throughout the day. These employees are driving to and from each residence. While driving between locations, the business is liable for any accidents that occur. This elevates the risk for covering this business and will in turn cost more. This is why it is very important for you to speak long and honestly with your agent in order to be placed in the proper class code.

Loss History

The final factor that impacts your general liability insurance rate is your businesses loss history. This depends upon the industry and the operations of your business. For some industries, it is common to have many small accidents. A restaurant is be a good example of a business that might have a lot of small occurrences. This is because the frequency and amount of customers coming in and out of the restaurant.  Slips, trips and falls are common in these industries. If your business tends to have a larger amount or more severe incidents during a recent year, it may cause your rate on premium to go up. Another thing to consider if you have had some claims in the recent past is what type of formal safety program does your business have in place. If you have a well documented safety program in place, your agent may be able to explain some incidents as freak occurrences and not a sign of an underlying problem that makes your business more of a risk.

There are several other factors that go in to what you pay for your General Liability Insurance Rate, but the size of your business, your class code and your loss history are the main factors that determine what you pay. Staying on top of these three factors can go a long way towards preventing your business from paying too much for General Liability Insurance.