Unfortunately, there are several myths that surround umbrella liability insurance:

• It is too difficult to coordinate with an existing insurance policy (i.e. your homeowners)
• Premiums are too pricey
• It is only for those who are rich (in other words, have much to protect)

These myths are just that – myths. Umbrella liability coverage is actually quite affordable, is not meant just for those who have more than the average Joe, and coordinate easily with existing insurance policies.

The term “umbrella liability” is so named as it acts like an “umbrella” over your auto and homeowners (or renters) liability policies to provide you with even more protection.

Here are some examples of when your umbrella coverage would give you the extra insurance you need:

• Someone injures themselves while on your property, then sues you under your homeowners insurance.
• An item from your property causes an accident on another’s property because of a natural disaster (i.e. a tree in your yard falls during a storm and hits your neighbor’s car).
• Someone you’ve hit with your car sues you under your auto insurance policy.

Your homeowners and auto policies do have some liability coverage that is part of your regular insurance and would assist you in settling legal claims should the circumstances arise; but what would you do if a settlement/judgment required you to pay the injured person(s) $100,000 and you are only covered with $450,000 of liability? Your insurance company would pay the $450,000, of course, but where would you get the remaining $550,000? You would likely lose everything in an effort to pay off the debt. Some states do protect certain types of assets (i.e. your home) from being taken, but there still is much to lose.

This is where umbrella liability insurance comes into play; an umbrella policy will pay over and above what your basic policy will, so you could potentially have several million dollars worth of coverage you might otherwise be without. And, truly, for the protection it offers, liability premiums are really very reasonable. You can usually find $1 million worth of coverage for just $200 or $300 a year. The cost, as with any insurance, will vary by the criteria you use, like the amount of coverage you choose and your personal risk factors (i.e. if you live in an area prone to tornados or perhaps your credit history).

Umbrella policies do usually carry high deductibles – $300,000 or more is pretty typical – but they are designed not to kick in until your other policies are fully utilized. If you opt to get your umbrella policy through the same company with which you have your auto and homeowners insurance, you will likely receive a substantial discount on your premiums; additionally, you won’t have to deal with several companies if you should ever have to utilize the policies.

It’s definitely worth considering the extra coverage an umbrella policy has to offer. After all, you never know when disaster will strike – it’s always better to be safe than sorry.

There are essentially three kinds of insurance available that can help you protect your business: liability, property, workers’ compensation.

All 50 states require businesses to have workers’ compensation insurance, while property and liability are not always mandatory. It makes a lot of sense, however, to protect your company with as much insurance as possible; after all, it is your livelihood.

Business Owner’s Policies

Insurance packages that offer both liability and property insurance for one premium are known as Business Owner’s Policies (BOPs). Most small and medium sized companies can attain a BOP and usually are more affordable than purchasing the policies separately.

Larger companies are typically considered a higher risk, so they don’t usually meet the criteria for a BOP. Whether or not you are eligible for a BOP will depend on the size of your premises, the limits of liability you need, the type of business you run, and the extent of your offsite activities. Your premium will be based on these types of factors as well.

Coverage of a BOP

A BOP will provide property coverage for your building as well as its contents and the property of others who bring items into your business. The policy will include standard peril – fire, theft, etc. – though certain exclusions may apply, such as flood or earthquake damage.

You will need to determine the amount of liability coverage you need based on your assets. Your liability coverage will help pay for your defense and injury or property damage should someone sue you. This policy will also pay medical expenses for individuals not employed by you who are injured as a result of your business operations.

A BOP will also cover you for business interruption and replacement costs in case your business is destroyed or you are unable to keep the business running due to medical difficulties, injury, or death. This coverage will continue to pay operating expenses – like payroll – even if your business activities have ceased.

You may purchase additional coverage for any particular risk your business may carry – for example, if you own a business that relies on special equipment, you can add coverage to protect it specifically.

Making Sure You’re Covered

Be sure you make a list of ALL your company’s assets – equipment, inventory, property – as well as how many employees you have, and any other relevant information specific to your business so you can take it to your insurance agent who can help you determine how much coverage you need.

It’s a waste of money to have too much insurance, but too little and you may find yourself in serious trouble should disaster strike!

As a business owner, the level of insurance coverage you obtain is completely up to you; you, of course, will want to be sure you are adequately protected, while not paying for insurance that has no relevance to your business.

Take into consideration the following when deciding on the best coverage for your unique business:

Size:

Often, businesses will begin small – you may even have started your business from your home or garage. When entrepreneurs work from home, they often assume that their business assets will be protected by their homeowner’s policy; this is not, however, always the case. You may want to consider looking into “work-from-home” insurance policies. This type of insurance will be tailored to small, start-up businesses and have the basic level of asset and liability insurance. These policies are usually quite inexpensive.

Be sure to review your policy as your business grows to be sure you have the coverage you need. If you employ someone, your liability level increases; there is always a risk for human error, so you need to protect your customers as well as yourself and your employee(s). Workman’s compensation insurance is legislated for full-time employees in most states.

Type:

Businesses in different industries will carry varying levels of risk; naturally the insurance coverage should be tailored accordingly.

A good example is restaurants and bars: They have high volumes of people come through each day meaning that they need to have insurance that will cover equipment, food, customer and product liability, workman’s comp, and property insurance at the very minimum.

A manufacturing business won’t need to have food spoilage coverage, however they carry greater risks in terms of property, equipment and product liability as well as higher workman’s compensation risks. They would need more insurance in these areas, than, say, a completely service-oriented business such as a cleaning service.

Assets and Perceived Risks:

Consider the following two factors to determine the level of insurance you need:

Your assets – you’ll want to ensure you have your assets protected so you can continue to generate an income should your business have difficulties. This type of insurance is called business interruption and shouldn’t be overlooked.

The risks – the industry of your business or the region in which you conduct business may be susceptible to certain risks; find information from local industry associations or colleagues to help assess your insurance needs.

Teen Drivers In Need Of Good Insurance

As most of us realize, automobile accidents are the number one cause of death among teens ages 15 to 20. The lack of driving experience combined with teens’ level of maturity combine to make teens the riskiest of all drivers. Teenagers are severely lacking in their experience of recognition and response to a hazardous situation that may arise while they are driving. This oftentimes results in teens driving precariously by speeding or tailgating.

Night driving for teens can be another major contributing factor to the higher risk of crashing for young drivers and their passengers. More than any other time of day, teenagers are involved in auto accidents in late evening and at night. Another factor that increases the risk of accidents caused by teens? Having other teenagers present in the car; evidently the distraction is often too much, causing the teens to lose the necessary focus to keep the car from crashing.

Graduated Drivers License – or GDL – laws include a three-phase process that give teens the opportunity to develop the more mature driving attitudes, as well as the experience behind the wheel that they need to become more responsible drivers making the roads safer for us all. The GDL was instituted in Florida in 1996; most states have since enacted similar laws. Provisions of each states laws, however, may vary, so it may be necessary to check your own state’s GDL laws for specifics.

Hopefully, when all states have instituted stricter guidelines for obtaining and holding a driver’s license, fewer teen crashes will be the result. Until then, keep in mind that your teen is at a higher risk for an accident and be sure he or she is covered by the best insurance policy available; it seems likely you may need it.

Business Insurance

There are, as most of us are aware, myriad types of insurance to consider when thinking of what type is right for your particular business, some, of course, being more important than others.

Some common forms of business insurance include:

1. Worker’s compensation
2. Malpractice and errors and omissions coverage
3. Disability insurance
4. Liability insurance that covers premises, activities, and products
5. Business interruption insurance
6. Unemployment insuance
7. Surety and performance bonds

One particularly important type of insurance is Worker’s Compensation; any business that has employees is required by law – in every state – to have Worker’s Compensation coverage; this type of insurance will benefit an employee who becomes injured on the job while performing the requirements of his or her position. In most states, Worker’s Compensation insurance is available through private insurance companies, but in a few, the coverage must be purchased through an agency of the state’s government. Oftentimes, there are contractual requirements that mean businesses must carry certain types of insurance. You will need to personally find out what the requirement of your state is.

Disability insurance and unemployment insurance are also types of coverages that are required by law. Each state, of course, will have varying requirements, so it is best to check with your insurance company or government office to determine your business’s exact needs when it comes to these required coverages.

When entering into a contract or lease, your business should carefully review them for any insurance requirements; if a business borrows money, it is often required that insurance must be maintained in an amount sufficient to cover office equipment leases, property, and liability exposures. Should you fail to acquire the necessary amount of insurance, your contract or lease could be terminated.

It is generally advisable that businesses purchase liability insurance to cover any business-related activity and be specifically tailored to the type of business you’re conducting. Professionals who are likely to face greater levels of legal liability, such as architects, engineers, dentists, and healthcare workers are especially advised to obtain business liability, or malpractice, insurance.

Whether or not you need a particular type of insurance will depend on the activities of your business as well as the amount of liability exposure that your particular company is likely to have. It is always best to contact your business’s insurance company or a local provider of insurance to assure you have all the coverage you need.