3 Things to Know About Commercial Auto Insurance
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If you use a vehicle for your business, you don’t want to jeopardize your own personal auto insurance coverage.
- If you’re a business owner and you have a vehicle owned by the business, then the business name should be on the policy not your name. This will ensure that if a claim is filed it is filed under the business and not in your name.
- If employees drive their own vehicles for businesses proposes, commercial auto policy will act as secondary coverage if the employee’s own policy does not provide sufficient coverage. This is called non-owned auto insurance.
- Commercial auto insurance will cover rental cars used on business trips if in an accident.
Cyber Crime Trends And What To Do
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As more people are on social networking sites every day, it is inevitable that cyber crime would increase as well. Also, there has been a switch of cyber crime targeting businesses. According to the RSA 2011 Cybercrime Trends Report, cybercrime has shifted from mostly government agencies and the public sector to the private sector as well. Unfortunately, RSA predicts 2011 will see an increase of cybercrimes targeting employees and as more business use social networking.
What to watch out for?
- Malware targeting mobile devices
- Malware targeting enterprises
- Competition between malware developers to develop more faster
- Highly Specialize cyber attacks
- Evolving phishing attacks and target business
What you should do to protect your organization?
- Change passwords regularly
- Download anti-virus protections on all mobile devices
- Beware of apps you use
- Put a cyber risk management in place
- Inform employees of risks
- Business liability insurance
- Social media insurance coverage
- Hacker coverage
This doesn’t mean you should stop using social networking for your business. It can lead to really great opportunities. The reach for Facebook and Twitter alone is huge. Below is a comparison by Dave Larson:
Embrace social networking but protect yourself and your business.
Don’t Forget! Taxes Most Businesses Forget to Pay
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photo credit: rychlepozicky.com
Time to pay taxes is fast approaching and you don’t want to be late. The late penalties will only cause for a greater headache. Steve Garmhasen, freelance writer for Business Insider, reminds businesses of what not to forget when it comes to paying taxes. This is what you need to know:
- FICA Taxes (Federal Insurance Contributions Act):
- This requires employers to hold the correct amount of Social Security taxes and Medicare taxes from the employees’ wages. The combined tax rate is 15.3% which the employer and employee split.
- If you are self-employed, then you must pay the total 15.3%.
- FUTA (Federal Unemployment Tax):
- The employer pays the entire 6.2% for the first $7,000 wages for each employee.
- This money goes to cover administration costs for state unemployment insurance and job programs. In addition, half of it goes to pay unemployment benefits.
As an employer it’s important to not leave these off the to-do list. You don’t want to end up paying more than you have to.
Apps, Twitter, and Risk Concerns – Social Media for Realtors
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Every day I seem to come across some article, blog or conversation about a new cool app for my phone. It’s amazing how connected we can all be. If I’m hungry, there’s an app for that. If I want some entertainment, there are lots of apps for that. If I’m stuck in traffic, there’s an app for that too. And the list goes on and on. Even real estate is in the game which I think is awesome for when it’s time for me to look for an apartment or house. Face it, like most people, I’m all for convenience and easy updates.
Here are some of the top real estate apps as provided by TopAppCharts.com:
- Property Evaluator
- Zillow Real Estate
- LoopNet Commercial Real Estate Search
- Realtor.com
- Trulia Real Estate Serch
- ZipRealty Real Estate
- Real Estate Investor
- Classifieds2Go
- Property Flipper
Using these apps or creating your own can really give you great opportunities to expand your reach. Twitter updates for open houses and listing are also a good way to take advantage of social media. It’s a chance to be really creative and fun.
Social Media Concerns:
If you’re weary about risks that can come with social media, then you have options to protect yourself using business liability insurance. Unique E&O policies can be tailored to your needs to cover your internet risks.
Is the California Real Estate E&O Market Due for Higher Premiums & Deductibles? By Tom Byrne
This post was written by Tom Byrne
How long can the California real estate E&O insurance market withstand the continued declines in premiums and deductibles for California residential real estate brokerages? From our perspective, not very! The anticipated change in the market is important to forecast, as we have to prepare our clients for the likely changes ahead.
Since the decline in the real estate market – dating back to 2006 – we have seen intense competition in the E&O insurance marketplace. Premium trends show year-over-year declines, along with inexplicably low deductibles. In this business cycle – referred to in insurance circles as a “soft market,” insurance companies risk not collecting enough premiums to pay for the claims their program incurs. When this happens, they eventually pull up stakes and leave you hanging in the breeze.
This much is clear; there is no way the CA real estate E&O insurance market can continue to provide the same low premium and deductible rates that we have seen over the past 4-5 years. If this trend continues, insurance companies will either incur unsustainable losses and/or they won’t be able to compete with the low cost/quality providers. Either way, they will leave the market or we all will lose.
So, what does this mean for you when deciding on which insurance program to protect your business, your reputation, and your agents? Make sure you place your E&O with a reputable insurance company (or at least make sure you are fully informed when you are entertaining a riskier program). Remember that if it seems too good to be true, it probably is. Ask your insurance broker about it: How long have they been writing in California? How many CA real estate companies do they write? Who defends me if I have a claim/law suit? How long do you see them being a player in the market? What’s not included in this policy? What’s their claims departments reputation?…etc.
Tom Byrne
Vice-President Real Estate Division
3 Reasons Why You Should Use an Insurance Broker
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Most people try to cut out what is perceived as the “middle man” and I would usually tend to agree. The middle man has gotten a bad rep as carrying the connotation of being more expensive, wasting more time, and using more effort. However, these perceptions do not hold true when it comes to using an insurance broker. Cost, time, ease, satisfaction and worry-free is at the top of everyone’s list when it comes to doing most things especially insurance. Here’s why using an insurance broker can help you relax:
- Cost is cheaper
Brokers use several different insurance companies to compare prices for the best rate. Also, insurance companies can give brokers special lower prices because the risk is lower for the insurance company when using a broker.
- Saves you time
Brokers are more efficient because they know the business. They can suggest want you need and they spend their time comparing prices. Furthermore, with a broker you get personal service.
- Less effort and more ease
Good brokers are about good consumer service. They are there to answer questions and educate you about policies. They are the expert so you don’t have to be. You don’t have to worry about if you have the correct coverage. Insurance can be a bit overwhelming and a broker can give you piece of mind.
At CSI, customer service is one of our core values. We are here to help you. So why not let us do the work?
2011 New Year’s Insurance Resolutions by: Tom Byrne
This post was written by Tom Byrne
#1 – “Get ‘Er Done”
As with most New Year’s resolutions, you probably are attempting to do something you really don’t want to. But, you know if you do you will be better off for doing so. By following the below guidelines, your small investment of time will lead to the insurance peace of mind you so deserve!
#2 – Find the Right Broker
If you find the right one, your problems are solved. So, what do you look for? Trust is everything, so make sure they earn it. Every few years, test the waters to evaluate your broker’s performance. Determine what’s important for you and don’t use cost savings as the only barometer. Service, expertise, cost, choices, professionalism, referrals, credibility, locality, personality, communication skills, responsiveness…etc., are all good measuring sticks. Everyone has their own service preferences, so prioritize yours and evaluate what you have and what’s missing.
#3 – Review Your Policies
Over the course of a policy term, things change. Like your investment portfolio, your insurance portfolio needs love to. Don’t neglect it! Every year, you should review you insurance programs. How do you do this? Simply ask your broker to do it for you. Wow! That was easy. Advise them of what you are interested in reviewing and/or their suggestions. You wouldn’t want your house to burn down to be lessened in being underinsured!
#4 – Be Proactive!
Don’t procrastinate! Those that wait to submit their renewal applications at the last minute are those that are upset with having to make decisions in the 11th hour. Have your homework done in advance and you might begin to even tolerate the insurance process.
#5 – Educate Yourself
You don’t need a Master’s Degree in insurance to properly protect yourself agaisnt insurable risks, but you should know the basics – even if your broker is a “trusted advisor.” The internet is abundant with resources. Find quality blogs, newsletters, tweet feeds,…etc that best suit your lifestyle/schedule and preference. Ask around for recommendations. CSI’s dedicated social media webpage libraries a wealth of easy to access information: http://www.costelloandsons.com/socialnetworking.html
Until next time…
Tom Byrne – Vice President Real Estate Division
What You Should Know About Property Insurance
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Property insurance protects you from most damage that can happen to your property. Personal property policy covers the contents inside the property, whereas, real property policy covers the physical building. Coverage can be specialized and extended to add additional coverage for items such as outdoor fixtures. Inventory must be taken to provide an accurate description of the property. The value of all items should be decided. This will help determine if you need additional insurance.
What does this all mean?
The CSI website provides this claim example:
“Bill owns the building in which he runs his Real Estate brokerage. A fire occurred, and not only was Bill’s building damage, but most of the business personal property (furniture and computer equipment including backup files) was destroyed. The contractor assigned by the insurance company, informed Bill, that it would take 3 months before Bill can return to his building to continue his normal business operations. In order for Bill to get his business up running immediately he had to find a temporary location to rent and stock, which took him 2 weeks to do. During those two weeks Bills employees were unable to work. The insurance company not only paid for the repair of the building and replaced all of the business personal property that was originally destroyed in the fire, but they also reimbursed Bill for the loss of business he suffered during the two weeks he was out of business, the extra expense he endured by renting at another location for 3 months and for the employees wages that were lost for the 2 weeks it took him to find a temporary location.”
As they say, “It’s better to be safe than sorry.” It is important to be prepared and to protect your properties. To find out more, contact us today.
Professional Liability, Not your Standardized Policy Form
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When looking at professional liability coverage also known as errors and omissions (E&O), it is vital to do a detailed analysis because there are differences from carrier to carrier. Curtis Pearsall, president of Pearsall Associates Inc, explains these common differences to watch for in the article, E&O Insights: Nothing Standard About Professional Liability. Here is a summary of those points.
Overall Form
The main difference on the overall form may come from claims-made basis versus occurrence form. Hutchinson Traylor Insurance defines the differences as, “Occurrence forms cover losses that happen during a given period of time (the policy term). The loss can be reported years later, but the key is when it happened. A claims-made policy covers claims made during a given period of time. The loss may have happened many years in the past, but is reported during the current policy term.” In addition, one of the differences is occurrence policy costs more than claims-made policy.
Key Terms
- Retroactive Date vs. Full Prior Acts: This is important because it impacts the validity of the claim. For example, claims after the retro date is only covered and not before; whereas, if it’s full prior acts, it is covered regardless of the date.
- Covered Activities: You should have full understanding of the activities your policy covers.
- Definition of Insured: There are differences of gaps in coverage and in no coverage for areas of former employees, independent contractors, leased or temporary staff, or board of directors.
- Exclusions: A policy form with only 2 exclusions versus 15 does not mean it is better. The 15 exclusions may be a result of greater detail of the coverage.
- Defense Provision: There is a difference in policies with “defense in addition to the limit of liability” or “defense within the limit of liability.” “Within the limit” will reduce the limit available for any settlement.
- Deductible: The difference here is between a loss-only basis and a combined basis. Loss-only coverage is handled by the carrier. On the other hand, “a combined loss and expense deductible, the insured would participate in these expenses up to the deductible limit.”
- Extended Reporting Period: This is usually called a “tail.” This means that after the policy expires, there is often a period of time that claims are still accepted. However, the period varies.
- Receipt of the Policy: Be sure to review your policy.
Let us help you review your E&O policy today!