The What and Why of Additional Insured Requests
2012 May 3 by Peter
How to Handle Requests for third parties to be added to your insurance policy as liability coverage?
As a business owner, you may have been asked to add an Additional Insured to your insurance policy. But what does that mean and how does it work?
When you run a business
, you form relationships with your customers, vendors, landlords, bankers and subcontractors. In some of these relationships, you enter into contractual agreements with these parties. There are instances when the other parties want to limit their liability. To do that, they ask you to share your liability coverage by adding them as an insured on your policy. This will give the other party status as an insured on your policy, which allows them a certain amount of rights and coverage in the event of a claim.
This is most often seen when Continue reading »
Business Insurance Protects for Losses
2012 April 24 by Peter
Is Your Business Properly Insured Against a Loss?
Running a business in Orange County is stressful enough. Any kind of loss only adds to the problem. Your comprehensive insurance policy should include coverage for just such an occasion. This is called Business Income with Extra Expense coverage.
The Business Income portion of coverage will provide the amount of income you would have made had you not had a loss. The Extra Expense portion of coverage will provide a limit of insurance for new expenses due to the loss.
A typical policy in Orange County says that the amount of Business Income loss will be determined based on the net income of the business before the direct physical loss or damage occurred; the likely net income of the business if no loss or damage occurred; the operating expenses necessary to resume operations with the same quality of service that existed before the loss or damage; and other relevant sources of information. Continue reading »
Broadening Insurance Endorsements That Leverage Your Primary Policy
2012 March 15 by Peter
Throw-in Coverage Gets You More Bang for Your Buck
Small- to midsize-business owners can really benefit from “broadening endorsements” – extra coverage that is thrown in on insurance policies for a flat fee of typically $250 to $300.
The most common policies with broadening endorsements are the General Liability, Auto and Property policies.
An example of throw-in coverage on a General Liability policy is an increase in Medical Payments. These will pay for the medical bills or funeral costs of someone you are liable for injuring, without having to go through the claims process.
The Auto Liability broadening endorsement can provide or increase a limit for Hired Physical Damage, which is collision coverage for rented vehicles. The throw-in amount can be anywhere from $35,000 to $50,000. If a rented car is crashed, this coverage will pay the actual cash value of the repairs. Continue reading »
General Liability Insurance in California: Proper Business Coverage for You
2012 February 6 by Peter
General Liability: Are You Properly Covered?
General liability is an essential type of coverage for a business owner. If you run a bakery, manufacture a product or have clients come to your office, there is a liability exposure.
Commercial general liability insurance in California comes with six different components of coverage.
Following is a sample of how the liability coverage page would read for someone with a $1 million to $2 million limit: Continue reading »
Why Your Company Needs An Insurance Policy For Officers and Directors
2012 January 12 by Peter
Proper coverage for the board of directors is needed by organizations both large and small.
People don’t want to take on these types of positions if they know their personal assets could be at stake if they were to be sued.
Directors’ and officers’ insurance policy coverage provides that protection. Such a policy ensures that the personal assets of a director or officer of the business are protected.
Liability is often an issue when corporate decisions are made and somebody feels they’ve lost money or they’ve been harmed in some way. Continue reading »
