Digging Deeper Into Your Policies

Pros and Cons of Surplus Lines Insurance

Thu, 04 Nov 2021 16:34:38 GMT

What are surplus lines markets?

Regular insurance carriers are also called standard or admitted carriers. They must follow state regulations concerning how much they can charge and what risks they can and cannot cover. Surplus lines or non-admitted carriers do not have to follow these regulations, which allows them to take on higher risks that are declined by admitted carriers. Surplus lines cover high limit and hard-to-place risks.

KEY TAKEAWAYS

➼ Surplus lines insurance protects against a financial risk that a regular insurance company will not take on.

➼ Surplus lines insurance policies are available in a variety of classifications for both individuals and businesses.

➼ Surplus lines insurance is generally more expensive than regular insurance because the risks are higher.

*** This article provides general information, and should not be construed as specific legal, HR, financial, insurance, tax or accounting advice. As with all matters of a legal or human resources nature, you should consult with your own legal counsel and human resources professionals. Waldorff Insurance and Bonding shall not be liable for any direct, indirect, special, consequential, incidental, punitive or exemplary damages in connection with the use by you or anyone of the information provided herein.

Should I Get a Wind Mitigation Inspection?

Tue, 31 Aug 2021 19:09:13 GMT

Why Does My Agent Say I Need a Wind Mitigation Inspection?

law and ordinance coverage can make or break you in a claim law and ordinance coverage can make or break you in a claim law and ordinance coverage can make or break you in a claim law and ordinance coverage can make or break you in a claim law and ordinance coverage can make or break you in a claim law and ordinance coverage can make or break you in a claim

What's the difference? Insurance vs Bonds

Mon, 12 Jul 2021 20:36:42 GMT

Do I need Insurance or a Bond?

Principal – The person or business required to be bonded by the obligee. The Principal is obligated to the obligee to pay and/or perform according to a law, ordinance, rule, regulation, contract, license or permit.

Obligee – The party that requires the principal to provide the bond. The obligee is protected from loss by the surety if the principal fails to fulfill their obligations.

Surety – The insurance carrier that guarantees the obligations of the principal to the obligee.

Don't Forget About Law and Ordinance Coverage

Thu, 15 Apr 2021 21:58:43 GMT

Commercial Umbrella Liability Insurance

Tue, 02 Feb 2021 16:12:10 GMT

What Is Commercial Umbrella Insurance?

Insuring for the Mortgage Amount

Fri, 08 Jan 2021 20:11:34 GMT

This topic seems to be raised quite often in our industry and this is if our insureds should have coverage on their properties mased on the mortgage amount.

Actual Cash Value (ACV) vs Replacement Cost Value (RCV)

Tue, 15 Dec 2020 17:53:17 GMT

You and your investments deserve having the best coverages. The difference between ACV and RCV coverage amounts in the event of a claim could mean the difference of thousands of dollars!

It's Not My Fault! - What Does it Mean to be in a No Fault State?

Fri, 11 Dec 2020 01:43:17 GMT

No-fault insurance means that if you're injured in a car accident, your own car insurance coverage will pay some or all of your own medical bills and lost earnings, regardless of who was at fault for the crash.

No-fault auto insurance laws require every driver to file a claim with their own insurance company after an accident, regardless of who was at fault. In states with no-fault laws, all drivers are required to purchase personal injury protection (PIP), as part of their auto insurance policies.

What's the difference? Named Insured, Additional Named Insured and Additional Insured?

Fri, 20 Nov 2020 20:13:48 GMT

There is a common misconception that there is little or no difference between being an additional insured and a named insured. However, there is a BIG difference when you are considering it from a liability perspective.

Named Insured:

A "Named Insured" is the actual owner of the insurance policy and have the broadest protection and indemnity provided by the policy. The "Named Insured" will assume responsibility for signing and choosing coverage types and amounts of the policy and the payment of premiums. The "Named Insured" will receive the premium notice and any notices of cancellation. There can be more than one named insured, and you can usually find these on the first page and often within the first few lines. If there are more than one named insured on a policy, usually the person listed first holds the primary responsibility. The named insured has ability to extend protection to the additional insured under the terms and conditions of the named insured’s policy.

Additional Named Insured:

There aren’t huge practical differences between a named insured and an additional named insured. An "Additional Named Insured" will have the same rights as a “Named Insured” with the full policy coverage and will most often be an affiliate, partner or co-owner of the primary insured with the same risks and interests but typically won’t be responsible for the premium. They will however be entitled to notice of policy changes and cancellations and will have the same coverage as the "Named Insureds" but share the policy limits. The "Additional Named Insured" is also entitled to notification if the policy is changed or cancelled.

Additional Insured:

The "Additional Insured" is a person or entity who is not the owner of the policy but who, under certain circumstances, may be entitled to some of the benefits and a certain amount of coverage under the policy by an endorsement. This entity then enjoys full coverage from your policy without being responsible for its premiums or upkeep. The endorsements for "Additional Insured" will provide coverage to the people or businesses named on them only for claims arising out of the acts or omissions of the primary named insureds. Additional Insureds are also therefore not obligated to pay premiums and typically do not receive notices of policy changes or cancellations.

Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your agent at Waldorff Insurance and Bonding to review the additional benefits and exclusions pertaining to your policy.

Do I Need Gap Insurance Coverage?

Tue, 17 Nov 2020 22:20:39 GMT

Do I Reeeeeeeaaaaallly Need Gap Insurance Coverage?

Well, maybe.

Gap insurance stands for Guaranteed Asset Protection insurance. It is an optional, add-on coverage to cover yourself financially that helps certain drivers cover the “gap” between the financed amount owed on their car and their car’s actual cash value (ACV), in the event of a covered incident where their car is declared a total loss. Gap insurance does not cover deductible costs.

When you purchase or lease a new vehicle, it begins to depreciate in value the moment it leaves the car lot. Statistics show that most cars lose 20 percent of their value within a year. Standard auto insurance policies cover the depreciated value of a car. This means that a standard policy pays the current market value of the vehicle at the time of a claim.

Let's say that maybe your insured car is completely totaled in an accident, or stolen and unrecovered. Your auto insurance may give you a settlement based on the car’s actual cash value (ACV), and not for the full amount you paid for it. An ACV settlement may not cover what you still owe on your auto loan or lease and this gap between what you’ve paid and what you owe can be substantial.

A good rule of thumb when deciding if you need Gap insurance is to consider if:

You made less than a 20 percent down payment
The vehicle is financed for 60 months or longer
The vehicle was leased as carrying gap insurance is generally required
You purchased a vehicle that depreciates faster than the average
You rolled over negative equity from an old car loan into the new loan

Your car dealer may offer to sell you gap insurance but it is good to note that most car insurers also offer it at typically a lower rate. Note though at some insurers require your vehicle to be brand new in order for you to purchase gap insurance. So, if you are the original owner of the vehicle and the vehicle is not older than two or three model years you may have this optional coverage available to you. Check with your insurer to see what qualifications are required for you to buy gap insurance.

Gap insurance cost varies depending on the actual cash value of your car, your age, the state you live in and your previous car insurance claim.

Are you still be asking yourself if gap insurance is worth it? It most certainly could be in the right circumstances. Gap insurance takes effect in the event of a complete loss of your vehicle, such as theft or a covered accident which renders your car a “total loss.” And although you might be a cautious, responsible driver, not everyone else on the road is. Not having gap insurance if you are “upside down” on your car loan could mean you are reimbursed for thousands less in the event of a complete loss. Are you willing to take a large financial gamble on this gap? Learn more about whether gap insurance is right for you by calling your specialized insurance representative at Waldorff Insurance and Bonding today.

Understanding Business Income and Extra Expense Coverage

Fri, 13 Nov 2020 15:09:50 GMT

Defining Terms: Business Income and Extra Expense Coverage

Business Income insurance is also known as business interruption insurance which pays for the actual loss of business income from a covered peril that you sustain due to suspension of your business operations as a result of damage or destruction to your property. This suspension must be due to a direct physical loss at the premises resulting from a covered cause of loss (fire, vandalism, wind, etc). This provision is the net income of the business and the continuation of normal operating expenses, which includes payroll. The Business Income coverage begins after a 72 hour (3 days) waiting period or deductible. Business Income provision is based on a limited recovery time as to where most insurance companies will pay for the actual loss sustained during the 120 days following the 72 hour waiting period or the limit of the insurance selected.

The Monthly Limit of Indemnity settlement provision aspect of the Business Income recovery is limited to the amount that the insurance company will pay each month based on fractions of typically 1/3, 1/4 and 1/6. Let us assume your limit of insurance is $120,000 and your fraction is 1/3 your monthly payment cannot exceed the actual amount of loss up to $40,000. Your coverage ends when the limit has been exhausted.

Extra Expense is the necessary expenses that the business incurs during the restoration period. These expenses would not have incurred if there had not been direct physical loss or damage to your property. Extra Expense also includes any amount paid to avoid or

minimize the suspension of your business operations at your premises or at a temporary location which includes any expenses to repair, replace any property or expenses involving research, replacement or restoring the lost information on damaged papers or

records to the extent that it reduces the amount of loss paid under Business Income. Extra Expense coverage begins immediately following damage/destruction to property.

Consider the following questions when selecting an adequate limit of insurance for Business Income and Extra Expense coverage:

1. What is your net income (profit) and total operating expenses for the last 12 months and the estimated next 12 months following the policy’s inception?

2. In a worse case scenario, how long would you be out of business following a loss?

3. Amount of Extra Expenses needed to maintain operations or to reduce the period of shut down.

4. Consider availability of materials, labor, climate, weather conditions, etc.

5. Do not hesitate to get your CPA involved in the selection of the amount of insurance necessary.

Quick Definitions:

Actual loss - The monetary payment you receive from insurance covering the actual loss of income to your business.

Business income - Any income that would result from regular business activity.

Period of restoration - The waiting period when you are repairing your business.

Extra expense - Expenses for when a business is temporarily closed for repairs

To get a business insurance quote, call Waldorff Insurance and Bonding today at 850-581-4925 .

What Is General Liability Insurance?

Mon, 09 Nov 2020 19:04:01 GMT

A large bodily injury or property damage claim can be a serious financial threat can severely damage a small business.

General Liability (CGL) insurance protects you by providing a financial safety net for your business in the event you are sued for an injury that occurred at your business, for damaging a visitor’s property, or causing an advertising injury, such as slander, libel or a copyright violation. The insurance protects you by paying for reasonable costs involved in your legal defense which includes attorney, court, and expert witness fees. It also covers any financial losses you incur while participating in your defense, covers judgments and settlements related to your case, as well as the plaintiff’s medical expenses.

In the event of serious property damage or injuries, settlements and court judgments can easily bankrupt a small business. For this reason, general liability insurance is one of the most common insurance policies.

What does General Liability Insurance not cover?

• Losses or injuries you cause through your own negligence

• Your personal or commercial property

• Your personal vehicles or boats

• Breach of your confidential personal information

• Professional services provided to a client

• Injuries or disabilities among your own employees

• Damage or injuries you intentionally cause

If you are a responsible business owner who cares to do reasonably safe work – and you have not been sued often in the past – most insurance carriers are equipped to you with coverage.

Is your business an excellent candidate for small business protection with General Liability Insurance? The following are excellent candidates:

• Building design

• Construction and contracting

• Consulting

• Food and beverage

• Healthcare professionals

• Home-based businesses

• Information technology

• Insurance professionals

• Nonprofits

• Real estate

Some industries have more of a need to carry General Liability Insurance. These include companies that:

• Bring customers or visitors into their workspace

• Work with customers on dangerous equipment

• Conduct business activities at a third-party location

• Rent from a commercial landlord who requires coverage

• Make deals with customers who require a certificate of general liability insurance before signing a contract

Waldorff Insurance and Bonding stands by their clients and community by helping business owners compare commercial insurance quotes from A-rated U.S. carriers. Call our office today for your free quote from one of our qualified agents.

What Is Workers Compensation Insurance?

Fri, 06 Nov 2020 16:08:40 GMT

Employers are legally obligated to take reasonable care to assure that their workplaces are safe. Nevertheless, accidents happen. When they do, workers compensation insurance provides coverage. One claim for a serious employee injury could bankrupt many small businesses. Insurance, through the payment of premiums for workers compensation coverage, provides a predictable cost for handling this risk.

Workers’ compensation insurance (or workers’ comp, or WC), is a form of small business insurance that an employer purchases to cover their employees in case of injury on the job. In the event that an employee files a claim, the insurance company pays out the benefits.

If an employee is injured or killed on the workplace premises or anywhere else while the employee is acting in the “course and scope” of employment, Workers’ Comp steps in to help cover medical care, rehabilitation costs, death benefits, and lost income of employees who are injured due to an on-the-job fall, trauma, repetitive strain or stress injuries or occupational diseases — regardless of who was at fault. Many workers' compensation incidents provide partial reimbursement of lost wages, and survivor benefits in the event the worker is killed while on the job.

Most states have laws that dictate how much employees should be paid out and what type of benefits they should receive. Usually workers’ comp covers around two-thirds of an employee’s wage, but it can also cover things like:

Medical care and treatment of the injury
Retraining costs
Compensation for any permanent injuries
Death benefits, such as funeral costs, to survivors
Wage replacement for money lost while they recover
Vocational rehabilitation if necessary
Other benefits to certain workers (e.g. coal miners) or their dependents.
As each state is in charge of their own workers’ compensation program, the laws for workers’ comp can be different depending on the location of your business.

In nearly all states, a workers’ compensation policy is the only remedy available for accidental workplace injuries. That means that as long as the premium is paid, the employer is protected from a big out-of-pocket payment if an employee gets injured on the job. If a business has employees that aren’t owners of the company, the company is likely required to buy workers’ compensation coverage. The only state that doesn’t require workers’ comp insurance is Texas.

Typically, workers’ compensation will not cover:

Injuries that are self-inflicted or intentional
Injuries due to the commission a serious crime
Injuries that happen while the employee isn’t on the job or performing a job-related task
Injuries due to a violation of company policy
Injuries due to an employee under the influence of drugs or alcohol
Serious and willful misconduct
Injuries without physical trauma
Claims due to an employer knowingly employing workers in violation of the law
Claims due to an employer failing to comply with health or safety regulation
When an injury takes place during your employee’s commute

Workers’ comp will also not help protect a business if an employee sues for g ross negligence, malicious intent, discrimination, f ailure to promote and w rongful termination so f or cases like these, call our office and ask about if employment practices liability insurance can help cover these legal costs.

If a business is not covered for their employees correctly as required, the business may:

Have to pay claims out of pocket
Have to pay a fine
Lose the right to do business in your state
Be sued by injured employees
And yes, possibly even do jail time

The cost of this coverage really depends on the business, industry, and the type of work that the employees perform. There are factors that have in impact on workers’ compensation insurance cost. These factors include:

Annual payroll amount: The smaller the team, the lower the premium.
The “risk class code” of jobs being performed
The overall rate of injuries within the industry
The rate of injuries within the state
The company’s claims history
Inclusion/exclusion of owners or officers
Eligibility for experience rating, which adjusts the premium up or down depending on the claims history of the company relative to other companies in that industry category.

To make sure to have the best coverage for every unique business, the key is to make sure to classify all employees correctly. For an accurate and individualized estimate, it’s best to reach out to Waldorff Insurance for a quote that’s customized for each business, state, and industry.

Under state workers’ compensation laws, an employer is also required to h ang up notices around the workplace that are visible to the employees that provide information about employees’ rights, workers’ compensation benefits, and details about the insurance provider. If an injured employee needs to file a workers’ compensation claim, the employer should assist them in getting started as quickly as possible. Some states require a claim to be filed within a certain amount of time. The faster the insurer receives notice of an injury and can initiate medical treatment and benefits, the faster the injured worker recuperates and is able to return to work. To assist an injured employee in getting medical treatment faster, some insurers help employers file promptly a "first notice of injury" with the state agency which can trigger the claim process.

Having workers’ comp insurance is important, but active safety precautions in place is also key. Employees should be informed about their insurance coverage. Businesses thrive when they make workplace safety an important part of everyday policies, and create procedures if an injury occurs. W ith the right safety policies in place, hopefully the team will never have need it.

Workers compensation systems are established by statutes in each state. State laws and court decisions control the program in that state and no two states have exactly the same laws and regulations. If a business expands to another state, different workers compensation rules may apply in the new state. Under some laws, independent contractors are not considered employees. However, for the purpose of workers comp insurance, most states will treat an uninsured contractor or subcontractor or employees of an uninsured subcontractor as an employee. This means that the business may be liable if a subcontractor is injured while working on the job. To avoid any unintended liability, larger companies often require any contractors or subcontractors doing work for them to provide proof they have workers comp insurance.

No matter what type of business you run, workers’ comp is a great way to protect both your business and your employees. To get the coverage you need, get a call Waldorff Insurance and Bonding today for your free, no obligation quote.