Author: ISU-ARMAC

What Does General And Professional Liability Cover?

Wondering what does general and professional liability cover? Read on to know the differences between both types of insurance. Learn what each policy covers, who needs them, and why they are beneficial.

Think of all the things that could go wrong when running your business. There’s a lot to think about, and liability insurance is one of the most important pieces of your risk management puzzle. 

There are many different types of insurance that you can choose from, and it can be difficult to decide what is the best option for you. In this blog post, we will compare general liability insurance and professional liability insurance. Both of these policies have their own unique benefits, but the question is, what does general and professional liability cover? And how do you know if you need it? 

Let’s find out:

General Liability Insurance For Businesses

General liability insurance protects you from third-party claims of bodily injury, property damage, or personal injury that occur as a result of your business operations. It’s essential to have this coverage in place so that you can avoid financial ruin if something were to happen, such as a lawsuit event. 

Please Note: Even if you are not at fault, you may still be held liable if the plaintiff can prove that your business was negligent in some way.

What Is Covered In General Liability Insurance?

The big question that might come to your mind is, what does general liability insurance cover? So here’s the answer you’re looking for.

General liability insurance covers third-party bodily injuries, property damage, and medical expenses that happen because of your business. It also covers any legal expenses that come from defending yourself in a lawsuit.

For example, let’s say you own a restaurant and someone slips and falls on your wet floor. If they sue you, general liability will cover their medical expenses and any legal fees you rack up during the case.

Here’s one more thing to keep in mind: GLI does not cover injuries sustained to your employees, damage to your property, or professional advice you give that leads to financial losses.

Professional Liability Insurance For Businesses

Professional liability insurance, also known as errors and omissions insurance, protects you from claims from providing professional services. If you make a mistake or omission in your work, and it causes financial losses for your client, they could sue you.

For example, let’s say you’re an accountant and you make a mistake on your client’s taxes. If they have to pay additional fees because of your error, they could sue you for the losses. 

Professional liability insurance would cover your legal fees and any settlement or judgment against you.

What Is Covered In Professional Liability Insurance?

Court costs and settlements: If you’re sued, professional liability insurance will help cover your legal expenses, including court costs and settlements.

Damages: This type of insurance can help pay for any damages you’re ordered to pay by a court.

Defense costs: If you’re sued, your professional liability policy will also help cover the cost of your defense, including attorney’s fees.

Professional liability insurance is important for any business that provides advice or services to clients. This includes businesses in industries such as:

  • Accounting
  • Architecture
  • Consulting
  • Engineering
  • Insurance
  • Real estate

What’s The Difference Between General And Professional Liability Insurance?

The main difference between general and professional liability insurance is that general liability covers any accidents or injuries that happen on your property. In contrast, professional liability covers any mistakes or errors you make in your work.

But there are a few other key differences:

General liability insurance covers third-party property damage and bodily injury, while professional liability only covers financial losses for your clients.

Professional liability insurance typically has lower limits than general liability insurance.

Is It Necessary To Have Both General And Professional Liability Insurance?

Long story short, general liability insurance is a must for any business. 

As for professional liability insurance, it depends on your business. If you have a high risk of being sued for negligence or making an error in your work, you should get professional liability insurance.

When To Have Both Insurances?

If you have a brick-and-mortar business, you might need both general and professional liability insurance to protect yourself from lawsuits fully.

What If I Don’t Have Either General And Professional Liability Insurance?

If you don’t have any form of liability insurance and someone sues you, you’ll have to pay the legal fees out of your own pocket. This can quickly bankrupt your business.

Liability insurance is important, but it’s not the only type of insurance you need. Make sure you’re also insured for things like property damage, product liability, and workers’ compensation too if you have a large business.

It’s Never Too Late To Get Insurance For Your Business

Remember that even if you don’t currently have either type of coverage, it’s never too late to get it. So contact an insurance agent today and find out how you can protect yourself and your business from potential lawsuits.

The Final Word

While there are some limitations to what general and professional liability insurance covers, it is still an important type of protection to have in place for your business. If you have any questions about what your policy covers, be sure to contact your insurance agent or broker. They will be able to help you.

So there you have it! A breakdown of what general and professional liability cover. Now you know what each type of coverage entails and when you might need it.

What Does General Liability Insurance Cover For Contractors – An Ultimate Guide

As a contractor, you may be wondering if general liability insurance is really worth the money. After all, it can feel like an extra expense that cuts into your profits. However, this insurance is actually essential for protecting yourself financially if something goes wrong. 

Let’s dive into the details:

What Does General Liability Insurance For Contractors Protect You From?

General liability insurance (GLI) can protect you from financial losses, such as bodily injury or property damage while working on an on-site project. Moreover, it will also help you if your business is under some sort of threat. 

Keep in mind that general liability insurance doesn’t cover human errors or accidents caused by them. 

Having a general liability insurance plan can offer you monetary help with each entity in more detail. This can be helpful if you have unexpected expenses or damages that occur.

Here’s what GLI covers:

Property Damage

If you or one of the workers accidentally damages someone’s property while working on-site, general liability insurance will cover the repair or replacement costs.

Bodily Injury

This is perhaps the most critical aspect of general liability insurance for contractors. If you or your employees end up injuring someone while working, this insurance will cover the associated medical costs. 

Completed operation liability

Completed operations liability is coverage for a business’s legal responsibility for injuries or damages that occur after completing a project. This type of liability coverage is vital for businesses that provide services since they can be held liable for any accidents or injuries that occur after the job is done. 

Without this coverage, a business could be forced to pay out of pocket for any damages that occur, which could quickly bankrupt the company. Therefore, a business’s general liability insurance policy typically includes completed operations liability coverage.

Medical Payments

General liability insurance can help cover the costs of medical care for anyone who is injured on your construction site.

Personal and advertising injury

You will be protected if a competitor sues you for copyright infringement when you have a general liability insurance policy. This type of policy covers a wide range of potential issues, from allegations of similarity in advertising to claims of defamation or slander.

What Are Add-Ons For General Liability Insurance For Contractors?

There are many different types of add-ons that can be added to a general liability insurance policy for contractors. Some common add-ons include equipment coverage, data breach protection, and environmental liability coverage. Each type of coverage has its own set of benefits and protections, so it’s essential to choose the right mix of add-ons to ensure that your business is properly protected.

Equipment Coverage: Equipment coverage is important for any contractor who uses expensive or delicate equipment in their work. If this equipment is damaged or destroyed, it can be very costly to replace. 

Data Breach: Data breach protection is critical for any business that handles sensitive customer information. If this data is leaked or stolen, it can cause serious damage to your reputation and bottom line. 

Environmental Liability Coverage: Environmental liability coverage is important for contractors who work in or around hazardous materials. If these materials are released into the environment, they can cause serious damage to both people and property.

Things Not Covered in General Liability Insurance For Contractors

A few things are not covered in general liability insurance for contractors. These include:

  • Bodily injury or property damage that the contractor intentionally causes
  • Professional services that the contractor agreed to provide, such as architectural or engineering advice
  • Work that is performed on a premises that is known to be unsafe
  • Any damage that is caused by the use of faulty materials or products that the contractor supplied
  • Liability for injuries or damages that occur due to the negligence of any subcontractors or employees working for the contractor.

Yearly Cost Of General Liability Insurance For Contractors

The cost varies depending on the size of your business, the type of work you do, your claims history, and other factors. On average, expect to pay $70/month and $825/year

How To Get General Liability Insurance For Contractors?

You can get it from most business insurance carriers. However, be sure to compare policies and quotes from several insurers to find the best coverage and price for your business. 

However, general liability insurance for contractors is available through state-sponsored workers’ compensation funds in some states.

Premium Audit And Its Purpose

A premium audit examines a company’s insurance policies and records to ensure that the premiums charged are accurate. The audit is usually conducted by an insurance company or an independent auditor.

The purpose of the audit is to verify that the company has been accurately billed for the policies and that the policies are in effect. The auditor will also review the company’s records to ensure that all claims have been properly documented and paid.

During the audit, the auditor will review the following:

  1. The insurance policies themselves
  2. The company’s books and records
  3. Any correspondence between the company and the insurance carrier
  4. Any other relevant documentation

After the audit is complete, the auditor will provide the company with a report detailing its findings. If the auditor finds that the company has been overcharged, the insurance carrier will issue a refund. On the other hand, if the audit finds that the company has underpaid, the company will be required to pay the outstanding premium.

The Final Word

General liability insurance is an essential policy for any contractor to have. It can protect you from several risks and cover costs in the event of a claim. First, however, it’s important to know what general liability insurance does and doesn’t cover to ensure your business is fully protected. 

We hope this article has helped explain contractor general liability insurance basics. If you have any questions or want more information, please don’t hesitate to contact us. We are happy to help!

What is the Difference Between Insured and Insurer?

Insurance is an agreement where an individual or organization acquires financial security or compensation from an insurance provider in a policy.

Insurance plans protect against the danger of significant and minor economic losses resulting from damage caused to the insured’s property or responsibility for damage or harm to a third party.

Insured Vs. Insurer

The insured is the individual or organization protected by the insurance policy, whether a life, car or another type of coverage. They are covered if that individual dies or suffers an accident. The insurer is the entity that provides protection and pays claims. 

On the other hand, an insurer is a company that provides an insurance policy for that individual’s protection.

What Are the Rights of the Insured?

When you are insured and file a claim, you are entitled to certain rights. These rights are there to protect you. The most common rights an insurance policyholder is entitled to include:

Transparency

As an insured, you are right to know what your policy covers and any limitations. When you receive a copy of your policy, you should read the entire document and understand what it says.

Ask if You Are Confused About Something

Your insurance agent should answer any questions you have about your policy. An insurer is obliged to satisfy the insured in case of any confusion.

Your Policy Documents

If you have lost your policy documents, you can get a duplicate copy of your insurance policy from the insurer.

Your Personal Data

The insurers will have to ensure that they are cautious when collecting your data. They may need to obtain your consent to collect the data, and they will also have to ensure that they do not keep this data any longer than they need to.

What Are the Duties of the Insured and the Insurer?

There are specific duties of the insured that are listed below:

  • The insured’s responsibility is to notify the insurer about a loss or damage immediately.
  • The insured should cooperate with the insurer.
  • The insured should inform the insurers in case of loss of policy documents.
  • You, as an insured, should give proof of the loss and damage to the insurer.

On the other hand, it is the responsibility of the insurer to pay the legal expenses of the insured in case of loss and damage.

Relationship Between the Insurer and Insured?

The insured should have a strong relationship with the insurer to get the best service possible. If you are insured, it’s very convenient to have a relationship with an insurer so that s/he can be more open with any confusion and concerns s/he might have.

For an insurer, a relationship with a customer is also an essential thing. The insurer should make the insured satisfied with their policy and service and do everything they can to help the insured.

How Do Insurance Policies Work?

You agree to pay the insurer’s regular premiums when you purchase an insurance policy. Your insurer will reimburse you for the damage guaranteed by the policy if you file a claim.

You won’t receive your cashback if you don’t file a claim. Instead, it’ll be combined with the payments of other policyholders with the same insurance firm. If you file a claim, the funds come from a pool of premiums paid by other policyholders. 

Declarations, insuring agreements, definitions, exclusions, and conditions are the five sections of any insurance policy. Many policies have a sixth component: endorsements. Use these parts as a starting point for examining the policies. Examine each section to determine the main contents of the policy.

Types of Insurance Policies

There are different kinds of insurance policies that an insured person should be aware of:

Health Insurance

People purchase health insurance to cover the expenses of pricey medical procedures. A variety of health insurance policies cover various diseases and disorders. You may buy both general and disease-specific health insurance coverage. A health insurance policy’s premium typically covers treatment, hospitalization, and prescription expenditures. 

Car Insurance

Car insurance is crucial for every car user in today’s environment. This insurance can secure you against unforeseen events such as car accidents. Some insurance also covers automobile loss caused by natural disasters such as floods or earthquakes. It also includes third-party responsibility, which is when you must pay losses to other car owners. 

Education Insurance  

A child education insurance policy is similar to a life insurance policy that has been explicitly established as a savings tool. When your child enters the stage for higher education and obtains admission to college, education insurance might be a terrific option to offer a lump sum amount of money (18 years and above). You can use the funds to cover your child’s college expenditures. The kid is the life insured or the receiver of the benefits under this insurance, whereas the legal guardian is the policy owner. 

Home Insurance

Home insurance assists in compensating damage or loss to your house caused by incidents such as fires and other natural or unforeseen catastrophes such as lightning and earthquakes. 

And then, there is a life insurance policy that has been discussed above.

Can You Buy Your Insurance Policy Through a Broker?

People can buy their policies directly from the insurers or through a broker.

However, it is essential to note that brokers are not insurers; they sell policies on behalf of insurers. Even if you buy your policy from a broker, all the issues regarding your insurance policy will be handled by the insurer.

Do Beneficiaries Pay Taxes on Life Insurance?

When the recipient of life insurance gets the death benefit, the money is not considered taxable revenue, and the recipient is not required to pay taxes on it. 

However, there are cases where the recipient gets taxed on some or all of the insurance proceeds. Suppose the policyholder chooses to have the benefit kept by the life insurance company rather than paid out immediately upon death. In that case, the beneficiary may be required to pay taxes on the interest earned.

When a death benefit is provided to a property, the person or people who inherit the estate may be required to pay estate taxes. 

Conclusion

In conclusion, the insured is the person or company protected against losses by an insurance policy. On the other hand, the insurer is the company that provides that insurance policy.  

There are different types of policies to protect your assets. These types include car insurance, health insurance, home insurance, education insurance, and life insurance. You can decide which policy you need to go for by determining your most important asset.

Do Independent Contractors Need General Liability Insurance?

When you set up your own business or start working as an independent contractor, you need to think about what kinds of insurance you might need. One of the most crucial policies is general liability insurance because it protects you from expensive lawsuits related to property damage or personal injury. Because we live in a litigious society and anyone can sue another person or entity, the vast majority of general contractors need this kind of policy.

Fortunately, liability insurance doesn’t cost a lot, and it’s relatively easy to set up. Sometimes, the policy can be combined with other types of insurance, such as errors and omissions, vehicle or property insurance, and workers’ compensation. Read on to find out whether you should look into getting a policy and if so, how you can find one that suits your needs.

Do Independent Contractors Need General Liability Insurance?

The short answer to this question is “yes.” Almost every independent contractor should take out a liability insurance policy to protect themselves from lawsuits that could ruin their career and personal finances. Remember, there are very few restrictions when it comes to filing a lawsuit, so one of your clients or a member of the public could sue you even if they don’t have a strong case.

Although they might not win a lot of money, you’ll still have to go through the legal process, which costs a lot. If you’re insured, your policy will cover all the legal fees, so you don’t have to worry about going into debt. What’s more, the insurance company will have to pay the plaintiff on your behalf if they are awarded any compensation.

What Kinds of Issues Does Liability Insurance Protect From?

Liability insurance protects you from a range of issues, the most common ones being property damage or personal injury. For example, if you run a landscaping business, you might lose control of one of your machines, which then drives into your customer’s car and damages it. Your customer can then sue you, and unless you have the proper insurance, you have to pay for all the repairs to their vehicle.

Another example is a painting contractor who is working at a client’s office and spills some paint or water. If someone walks in, slips on the liquid, and breaks a bone, they can sue the contractor and request compensation. Liability insurance will pay for the legal fees, the person’s medical bills, and their loss of income due to the accident.

What Kinds of Contractors Need Insurance?

As discussed, almost every contractor needs a liability insurance policy. However, not every field is equally risky, and the amount of insurance you take out depends on your industry. Someone working as a freelance writer, illustrator, or website designer from home is much less likely to get sued than a contractor who visits their customers at home and operates heavy equipment.

Before you decide on a policy, speak to an experienced insurance agent. They can help you identify your risks and make sure you choose insurance that covers you adequately. One aspect that is often overlooked is advertising. If you market your services to members of the public, you will have to make sure that potential issues related to your ads are covered. In the past, people have been sued due to false advertising and unsubstantiated claims.

What About Employees? 

While independent contractors should almost always take out insurance, employees don’t usually have to because their employer’s policy covers them, too. If you work for the same firm repeatedly, you have to clarify your status to determine what kind of insurance you have to take out. You should also speak to the companies you work with to determine what policies they have and what types of situations are covered.

How Much Does Liability Insurance Cost?

The cost of general liability insurance varies significantly. Some of the factors that affect it include the size of your business, the risk level, where you are located, and what your claims history is. Most independent contractors don’t have employees, so they might not have to pay as much as bigger firms. In fact, there are policies for under $1,000 per year.

However, these don’t always cover all situations, and you should double-check that the issues that might arise in your line of work are included. You should also think about the limit you’d like to set. The higher the limit, the more expensive the policy. Some companies offer specific policies that cover the individual risks of each industry.

What If I Don’t Want Insurance? 

Most states don’t require you to have liability insurance, so you can choose not to take out a policy. However, this is a risky move, and it can lead to a catastrophe if you’re unlucky. Some studies have shown that up to 90% of businesses are engaged in litigation at some point. Although the rate might be lower for independent contractors, there is still a significant risk.

Another reason why you should get insurance is that you might have more business opportunities that way. Many companies and individuals might not feel comfortable working with someone who is not insured, so they might not offer you work unless you’ve taken out a policy.

What Other Types of Insurance Might You Need?

General liability is the most important type of insurance for most small businesses and independent contractors, but that doesn’t mean it’s the only policy they’ll need. There are other risks that have to be considered. For example, a contractor might make a professional mistake, in which case their liability insurance is unlikely to cover the damage.

Additionally, most contractors should consider getting some of their property insured. Replacing cars, vans, equipment, and IT devices can be expensive. Contractors must also decide whether they need to get disability insurance and workers’ compensation insurance.

Errors and Omissions Insurance 

Liability insurance covers general problems, but it won’t protect you against alleged professional negligence. If a client or customer sues you because they believe you didn’t do your job correctly or you gave them bad advice that caused them to make a mistake, they can ask for compensation. This kind of lawsuit can be extremely difficult to handle, so it’s best to be protected.

Although businesses that perform physical work like construction should consider getting errors and omissions insurance, it is even more important for people who offer intellectual services. Lawyers, doctors, financial planners, counselors, and therapists all give advice and make recommendations, so they are at risk.

Vehicle Insurance 

A new van or truck might cost several tens of thousands of dollars, and even a good used vehicle is often over $5,000. To protect this asset, you can take out business vehicle insurance. This policy covers you if something happens to your car, for example, if it is damaged in an accident, if there is a fire or a natural disaster, or if your car gets vandalized or stolen.

Property Insurance

Just like your car, you might have to insure some of your equipment. Many independent contractors use machines, tools, and electronic devices to carry out their work, and replacing these items can be extremely expensive.

If you would find it hard to replace some of your equipment or you would have to go into debt to do so, you should consider taking out business property insurance. There are also policies that can protect buildings, for example, if you have a small office or a central location where your customers visit you.

Disability Insurance  

Employees who get injured or sick and can’t do their job for several months often still get paid by their employer. But when you work for yourself, you don’t have such a safety net to fall back on. Instead, you’ll have to either live off your savings or go into debt.

To prevent this, you can take out disability insurance. There are various policies. Some of them protect you if you develop a permanent injury or disability, while others also cover temporary issues. Your insurance agent can help you choose the policy that fits your individual financial situation.

Workers’ Compensation Insurance 

You only need workers’ compensation insurance if you have people working for you. This type of insurance protects you against lawsuits filed by your employees, either due to an injury, damaged property, or discrimination.

How to Find an Insurance Policy 

If you’re confused or overwhelmed by all the policies available to independent contractors, you’re not alone. Finding the best insurance is hard, and you shouldn’t have to do it alone. There are specialized insurance agents who can help you sort through the various options and decide which types of insurance you need to purchase. They will take into consideration your industry, your specialization, and your financial situation, so you get the best deals.

Almost every independent contractor needs general liability insurance. Although most people won’t have to deal with a lawsuit, the potential issue can cost you millions and cause you to go bankrupt. To find a good policy, you should speak to an insurance agent, who can put together a list of quotes and help you find the most suitable one. Contact us at ISU Armac and book a consultation or request quotes for your business.

What Insurance Does a Restaurant Need?

Running a restaurant is many people’s dream. Although it can be very rewarding when everything goes well, there are risks associated with welcoming guests to your premises and serving them food. To make sure you don’t face financial hardship if there is a problem, you should take out various insurance policies. But what are the insurance costs for a restaurant, and is it worth getting covered?

Every restaurant owner should get certain kinds of policies, such as liability insurance and workers’ compensation, but the optimal amount and type of cover depends on the kind of business you run and how financially stable it is. A good insurance agent can explain the various options and help you find a suitable insurer, so you’re optimally covered but not paying for policies you don’t need.

What Insurance Does a Restaurant Need? 

The kind of insurance you need to run a restaurant depends on your area. For example, insurance isn’t generally required by law in California, but if you don’t insure your restaurant business, you are taking on a significant amount of risk, and you could face bankruptcy if something goes wrong. To prevent financial difficulties, you should take out liability insurance, workers’ compensation insurance, and business property insurance.

If you want to be even better protected, you can also look into getting business interruption insurance, liquor liability insurance, and food contamination insurance. These additional policies can cover issues that are specific to the service industry. Most insurance policies don’t cost a lot, so they can be well worth it.

Liability Insurance

Lawsuits from customers or members of the public are one of the biggest threats businesses face. Unfortunately, getting sued is a common occurrence, especially in the service industry, where customers spend time in the business. If one of your customers slips and gets injured at your restaurant, they can ask you to pay for their medical bills and their loss of income. In severe cases, you might even have to cover long-term disability payments.

Liability insurance can protect you from lawsuits related to false advertising, property damage, or personal injury. Most experts recommend that businesses take out a liability insurance policy that covers them for at least $500,000–$1,000,000, if not more. Your insurance will pay the plaintiff’s compensation, but it will also cover your legal costs associated with the case.
 

Workers’ Compensation Insurance 

While liability insurance covers personal injury and property damage lawsuits filed by customers or members of the public, it doesn’t compensate you if one of your employees sues you because they had an accident or picked up an illness while working for you. Unfortunately, working at a restaurant can be dangerous because there are hot items, lots of steps, glasses and crockery, and knives.

Workers’ compensation insurance pays out if one of your employees sues you because they believe that you should have prevented them from getting injured. For instance, you might not have cleaned up spilled water quickly enough, or you might not have conducted safety classes before allowing employees to handle dangerous tools. Unless you have insurance, you’ll have to pay for the worker’s medical bills and their rehab.

Business Property Insurance 

Some people believe that business property insurance is only necessary if the building belongs to the restaurant. Owners who are renting their building and are worried about the high insurance costs for a restaurant might be tempted to skip business property insurance. However, this isn’t necessarily a good idea. You should still get property insurance if you have valuable items such as kitchen equipment, electronic gadgets, expensive furniture, and artwork.

You can get compensated by your business property insurance policy if your restaurant burns down, gets vandalized, or is the victim of a natural disaster. What’s more, theft might also be covered. There are property insurance options for every situation, so you can buy a policy that protects only the items you own, not the ones you are renting or leasing. There are also policies that cover business vehicles such as delivery vans.

Business Interruption Insurance 

Running your restaurant business takes money, and you need to sell a certain amount of food and drink just to break even. For this reason, an interruption to your business can be damaging and cause long-lasting financial hardship. Business interruption insurance can protect you from this risk because it compensates you for the money you’re losing when you’re not able to open.

However, it’s important to remember that not all reasons for closure are covered. If you’re going on vacation or you have to take care of a family member and you close your restaurant for a few weeks, you won’t receive money from your insurance company. Some of the most common covered reasons include damage due to a fire or natural disaster and damage due to vandalism.

Liquor Liability Insurance 

Not every restaurant can automatically serve liquor on the premises. Business owners who would like to serve alcohol will have to apply to their nearest district office of the Department of Alcoholic Beverage Control. The process of getting your license might take several months, but for most restaurants, it is well worth it because it increases the customer base and the total revenue.

Unfortunately, there are certain risks associated with serving alcohol to customers. You’re not allowed to serve anyone who is already intoxicated because they could be a danger to themselves or others. Because it’s sometimes extremely hard to know whether someone has had a lot of alcohol already, mistakes can happen. If you or one of your employees inadvertently served an intoxicated customer, liquor liability insurance can pay for the damage.

Food Contamination Insurance 

Issues with food contamination are every responsible restaurant owner’s worst nightmare. No matter how often you clean your kitchen and how thoroughly you vet your suppliers, problems can occur. If you serve contaminated food and your customers become ill, you might have to close down your restaurant for a certain period of time while the issue is being investigated. What’s more, you’ll have to sanitize all surfaces and replace the spoiled food.

This process can take several days or even weeks, and it can be incredibly expensive. If you’re worried about food contamination and the associated costs, you could take out a specific insurance policy that will pay for the cleaning of your equipment, the replacement of the food, and the income you lost during the shutdown. Some policies even provide you with money to advertise, so you can restore your business’s reputation.

What Are the Average Insurance Costs for a Restaurant?

On average, owners pay $150-200 per month for restaurant insurance coverage. However, there are many variables, and it’s very hard to determine the cost of restaurant insurance for an individual business. Aside from the location, the cost of your policy depends on the kind of restaurant you run, the size of your business, and the value of your property.

What’s more, there are countless options, such as add-on policies or different coverage amounts, that can affect the monthly cost of insurance. If you’re confused by all the possibilities, you should reach out to an insurance agent, who can have a look at your individual situation and help you determine what kind of policy is best for you.

Can I Get a Comprehensive Policy? 

To be protected from the most common issues, a restaurant owner has to take out various kinds of insurance, including liability insurance, workers’ comp, property insurance, and business interruption insurance. Managing four to six policies from different providers can be confusing and time-consuming. For this reason, many people opt for a comprehensive policy, called a business owner’s policy.

The BOP includes many of the above-named types of insurance, although workers’ comp isn’t always provided, and it is often cheaper because it is sold by a single company. What’s more, it’s easier to manage because the restaurant owner only has to go through the paperwork once.

Where Can You Get Comprehensive Insurance?

If a business owner’s policy sounds right for your restaurant, you can reach out to an insurance agent and request quotes. You will need to provide some information, including your restaurant’s location, background, annual turnover, and number of staff. Your agent will then provide you with several options, and you can either choose one that suits you straight away or discuss the possibilities with the expert.

Having a conversation with the agent is often a good idea because it allows you to explain the unique aspects of your business and therefore get more accurate advice. Once you’ve selected a good policy, you can purchase it through the insurance agency. That way, you’ll know that you’re getting the best deal, and you can easily switch policies if your business changes or expands.

Virtually every restaurant owner needs to take out insurance to protect their business from problems like lawsuits, property damage, or a loss of income due to unforeseen circumstances. Get in touch with us at ISU Armac to speak to a professional about how you can keep the insurance costs for a restaurant reasonable. We will provide you with quotes and help you decide which policies your business requires.

What Is Not Covered Under Commercial Liability Insurance?

Having adequate insurance coverage for your small business can save your reputation, allow your business to continue operating, and give you peace of mind in case of accidents and certain business disasters. For most business owners, commercial liability insurance is the best policy to start with. But what’s covered with this insurance policy and should you consider adding additional policies to customize your coverage?

What Is Not Covered Under Commercial Liability Insurance?

Because commercial liability insurance is designed to protect your business in case of accidents, there are several exclusions for this type of insurance. For example, liability insurance will not cover the costs of intentional or willful acts. This can include intentional injuries, intentional property damage, willful negligence that causes accidents, and intentional criminal acts, such as copyright infringement and fraud.

It’s important to read your insurance policy thoroughly to understand the precise limitations of your commercial insurance. Some specific policies that will not be included as part of your business owner’s policy include professional errors, commercial auto, employee injuries, and discrimination lawsuits.

Professional Errors

Essentially, this insurance coverage provides protection in instances of professional mistakes, such as undelivered services, missed deadlines, and contract violations. Errors and omissions insurance is essential for small businesses working in retail, particularly hospitality services, home improvement services, and real estate services. With a professional errors insurance policy, your insurance will cover the cost of legal fees if your business is sued.

Commercial Auto

Commercial auto insurance is usually not part of a commercial liability policy. Whether your business has specific commercial vehicles or personal vehicles that are used for working purposes, commercial auto insurance provides coverage for accidents that are related to work. This specific insurance policy is not usually included in commercial liability because some businesses do not use vehicles.

If your commercial business does rely on vehicles, it’s a good idea to have a commercial auto policy. Furthermore, if your employees are going to use personal or rental vehicles to complete work, such as delivering contracts, it’s good to have a hired and non-owned auto insurance policy added to your commercial liability coverage.

Employee Injuries

A commercial liability policy specifically covers injuries and damages to the business and customers of the business, but it does not cover employee injuries. For employees who are injured on the job, you will need to have a separate policy for worker’s compensation insurance to pay for physical therapy, lost wages, and medical expenses.

Why Is Worker’s Compensation Insurance Separate?

Worker’s compensation insurance tends to be an additional policy added to business owners’ coverage because states have different laws about worker’s compensation insurance. For example, in Texas, private employers are not obligated to provide this insurance coverage under Texas law. In other states, it’s mandated that employers offer some amount of worker’s compensation insurance, particularly in industries where workers are at higher risk of injury.

Discrimination Lawsuits

Finally, a commercial liability policy will not usually apply to provide coverage for discrimination lawsuits. For example, if an employee complains about harassment, wrongful termination, or discrimination, your commercial liability coverage will not cover the costs of legal fees associated with your lawsuit. For specific coverage, you need to have an employment practices liability insurance policy, which will cover the cost of legal fees.

Why Doesn’t Insurance Cover Intentional or Willful Acts?

Insurance is meant to be there for your business in case of accidents that are beyond your control, such as property damage, third-party injuries, or damage to your reputation due to customer dissatisfaction. No matter what type of insurance policies you have, no policy will cover intentional or willful acts because these acts are criminal in nature.

As part of your insurance contract, your insurance company reserves the right to deny coverage if your business is involved in fraud. This is because your insurance coverage has no obligation to pay for intentional actions that result in lawsuits. Attempting to file an insurance claim for fraudulent acts is also considered a crime.

Why Won’t Commercial Insurance Cover Discrimination Lawsuits?

For the same reason your insurance will not cover intentional or willful criminal acts, your commercial liability insurance will not automatically cover discrimination lawsuits. If you want to protect your business reputation and secure financial assistance in case of lawsuits from employees, you need to have a separate insurance policy for employment practices liability.

The choice to include this policy is left to the discretion of the business owner. This is because your commercial insurance focuses on your business rather than your employees. So just like your commercial liability coverage will not provide automatic worker’s compensation insurance for injured employees, it will also not automatically provide coverage for legal fees for discrimination or harassment lawsuits.

Policies Included in Commercial Liability Insurance

Although there are several policies that are excluded from commercial liability insurance, there are many other policies that are automatically folded into this coverage. For example, third-party injury, third-party property damage, product liability, and advertising injuries are usually all part of a business owner’s policy for commercial insurance.

Third-Party Injury

Third-party injury is a policy that will provide coverage for medical expenses if a customer is hurt in an accident that involves your business. This includes customers who are injured on your business property or injured by a business vehicle. Third-party injury insurance will also provide coverage for legal expenses if a customer sues your business over an injury.

Third-Party Property Damage

Third-party property damage insurance is a type of commercial liability policy that covers expenses when your business damages or destroys a customer or other third party’s property. For example, if a commercial vehicle damages another person’s vehicle or personal property, this insurance coverage will provide funds to replace the damaged property or legal fees.

Product Liability

Product liability is an essential insurance policy for small businesses. Injuries related to your business may not always occur on commercial property, particularly if you are a merchant. This insurance policy will provide coverage for injuries that are related to product liability, such as products that cause allergic reactions or other harm to a customer. This insurance will cover legal expenses and medical costs up to the policy limit.

Advertising Injuries

Advertising injuries generally refer to instances where a customer accuses a small business owner of false advertising. This type of insurance coverage can also provide coverage in cases where a customer sues a small business owner for copyright infringement, slander, or libel. Advertising injuries can also apply to situations on social media where the reputation of a business is under attack.

Why a Business Owner’s Policy Is Necessary

Having a business owner’s policy with robust commercial liability insurance is essential for small businesses that want to thrive. The expenses related to injuries and lawsuits from customers and employees can be exorbitant, so an insurance policy can greatly relieve your financial burden in case of accidents.

When you are first starting your small business, the smartest thing you can do is take out a business owner’s policy that includes specific coverage for your business, such as commercial auto or cyber liability. By having adequate coverage, you can ensure your business is successful and doesn’t lose momentum.

What Additional Policies Should Be Added to Your Commercial Insurance?

There are several additional policies that can be added to your commercial liability coverage. Depending on the needs of your business, you can work closely with an insurance agent to add these additional policies so you can customize the protection for your business. Some of the most common additional policies that are folded into commercial insurance can include cyber liability, business interruption, business crime, and commercial umbrella insurance.

Cyber Liability

Because cybercrime is becoming more common, small businesses can benefit by including cyber liability in insurance coverage. This insurance policy will protect your business if customer or employee data is stolen or compromised by cybercriminals.

Business Interruption

Business interruption insurance is a policy that protects your business from loss of profits if there is damage to your business property that prevents you from running your business as usual. Business interruption insurance will allow your business to get back up on its feet without compromising your regular income.

Business Crime

Business crime insurance provides reimbursement for the cost of investigating and prosecuting crimes against your business. For example, if your business is the victim of forgery, impersonation, or theft, this insurance can help you as you seek justice.

Commercial Umbrella

Commercial umbrella insurance is another policy that savvy business owners can use to protect their business. Although your policy limits for your commercial liability coverage may be generous, commercial umbrella insurance will provide additional funds to cover extra costs related to medical compensation or the cost of legal fees. This can also protect your business and your personal finances.

Small business owners benefit from using a robust commercial liability insurance plan that provides coverage for all major needs. Your commercial liability coverage will generally include protection for your business in case of injuries and accidents. For more information about insurance coverage for your small business, contact ISU Armac today.

How Long Do You Have to Have Life Insurance Before It Will Pay?

An increasing number of American households are getting life insurance. This financial product protects families if the main breadwinner passes away or is no longer able to provide for them. It is particularly important for people who have young children, those who would like to cover their children’s education fees, or couples who couldn’t pay for the mortgage or other regular expenses without both people’s income.

While insurance is a great way of protecting your family, you have to carefully read the fine print of your policy to make sure you’re covered. For example, your insurance company might not pay if you pass away several weeks or months after you take out the policy. In this post, we’ll have a closer look at how long it takes for your protection to kick in and how you can make sure your family is protected, no matter what happens.

How Long Do You Have to Have Life Insurance Before It Will Pay?

When you take out insurance and pay your premiums every month, you expect to be protected. But unfortunately, this isn’t always the case right away. Some insurance companies have a waiting period of two to four years. During this time, you will pay for the insurance, but the company won’t compensate your loved ones if you pass away.

The reason why some insurance providers do this is to prevent fraud. In the past, people misrepresented information, and companies lost a lot of money. Now, insurers have implemented policies that protect them from immediate claims. If you’re worried about the waiting period, you should speak to a qualified insurance agent. They can show you various products and help you find a good policy that doesn’t have a long waiting period.

Term Life

If you get a fixed-term insurance policy, you’re usually protected as soon as you sign the documents, so you don’t have to worry about waiting periods. This kind of insurance protects you for a fixed amount of time, for example 20 or 30 years. The premiums are set in advance, and you will pay the same amount every month. This is a great choice for anyone who would like to bridge the gap between the present and retirement.

It is also frequently taken out by parents who would like to protect their children until they are grown up and able to provide for themselves. If the policyholder passes away during the term of the insurance, the specified amount will be paid out. If not, the insurance ends once the term is up, and any money paid into it is kept by the insurer.

Permanent Insurance

Permanent insurance is designed almost like a savings account. You pay your premiums until the day you die, and then your beneficiaries receive a lump sum from the insurance company. Often, there is a 2-4-year waiting period associated with this kind of policy. During this time, your beneficiaries will only receive what you paid in or a small amount of the death benefit. Despite this, permanent insurance, is a better choice for those with long-term dependents.

Some people also select this option because the money paid in isn’t lost. Instead, your loved ones will receive a guaranteed payment once you pass away. Before selecting permanent insurance, you should think about various scenarios. Will the policy be worth it if you live to 80, 90, and beyond? Will you still be able to pay the premiums, which are likely to go up over time?

Factors to Consider

If you’re looking to take out life insurance, speaking to an expert is essential. Insurance products can be extremely complicated, and the choices you make now can affect your life and the lives of your descendants for many decades. A good insurance agent can go through your situation and show you your options. They can talk to you about term and permanent insurance, so you understand the difference and can select the one that’s right for you.

Additionally, the agent will provide you with quotes from local providers, and they will help you analyze the fine print. That way, you won’t have to worry about buying a product you don’t fully understand. No matter what happens, you and your family’s financial future will be protected.

The Price of Insurance

Anything that reduces the insurance company’s risk lowers your premiums. Term insurance is almost always cheaper than permanent insurance because it only covers the policyholder for a specified amount of time, so there is a chance that no payout will be necessary. Similarly, a policy with a waiting period is usually cheaper than one that starts right away, since the risk of an immediate payout is eliminated.

Together with your agent, you should go through your budget to see which kinds of insurance are within your budget. Then, you can select a policy that doesn’t break the bank but still provides you with the cover you desire.

Your Current Situation

There are countless insurance products out there, but not every solution is right for every person. Someone who has young children and a lot of savings might benefit from 20-year term insurance. That way, their children are covered until they have completed university. Once the children are self-sufficient, the insurance ends, and the policyholder will no longer have to pay for it.

In contrast, someone with few savings who would like to provide for their loved ones once they pass away should get permanent insurance. This policy will help them to save money every month and allow them to leave behind a significant inheritance. Permanent insurance is great for people who have trouble saving money on their own, but it isn’t usually necessary for those who already have significant retirement savings.

Your Health

A person who is in good health is unlikely to pass away unexpectedly. Despite this, families with one main breadwinner and young children, a large mortgage, or a lot of debt should consider getting term insurance. This eliminates the potential for disaster. Someone who has a family history of disease or has been diagnosed with a chronic illness should consider permanent insurance.

However, you should remember that insurance companies analyze your health history and set your premiums accordingly. If you are very ill, you’re likely to pay much more than someone who is in good health. Lying on your application is unwise because the company might not pay the full amount if they discover that you weren’t truthful.

Can I Change My Current Policy?

Even if you already have a policy, you should speak to an expert. They can have a look at your insurance to see whether it still fits your needs and, if not, they can help you figure out how to change your policy.

Some companies are more flexible than others, so they will let you make changes to your insurance if your circumstances change. If you’d like to surrender a permanent insurance policy, there is usually a fee or deduction to pay. You might not receive all your money back.

How to Make a Claim

Your beneficiaries won’t automatically receive a payment when you pass away. Instead, they have to file a claim with your insurance company. Some of the documents required might include the death certificate, proof of ID, and a claims form. Once the claim has been filed, it will be reviewed and, if everything is in order, the money will be paid. In some cases, the claim has to be filed on paper, but more and more companies are now switching to an online system.

What to Do if there Is a Delay

Sometimes, insurance companies refuse to pay the money straight away. This could be the case if the insured person dies within 12-24 months of setting up the policy, since the insurers will have to investigate to rule out fraud. As long as the policyholder was honest and provided all the necessary information in their application, the money should eventually be paid to the beneficiaries.

Another reason for a delay might be if homicide was committed. In such a case, the beneficiary has to be ruled out as a suspect before the money can be paid out, so the insurers might need to speak to the detective. Finally, the payout could be delayed if the policyholder died as a result of illegal activity, such as drunk driving or suicide.

Payout Options

When setting up your policy, you should think about how you would like the money to be paid out. You can opt for a lump sum payment, so your beneficiaries receive everything at once. Alternatively, you could choose to break up the payments into several installments. This could be a good idea if you would like to provide your loved ones with a guaranteed income for the next 5-40 years.

Life insurance is a great way of protecting family members who are dependent on your income. However, your policy might not pay immediately after you take it out. If you pass away within two to four years, some policies don’t provide any compensation, even though you’ve been paying your premiums every month. Call ISU Armac now to speak to an insurance agent about your policy. They can help you figure out how to best protect your dependents.

What Is Covered Under Coverage A of a Business Owner’s Policy?

Almost every business owner has to get some kind of insurance, but the type of policy you need depends on the nature of your company. For many people, a business owner’s policy is a great choice because it offers comprehensive coverage. A BOP in California might include building and contents insurance, liability insurance, commercial auto insurance, employment practices liability coverage, and business crime insurance.

While these categories tend to be the same for most businesses, the policy can be tailored to your unique needs. For example, people who need to protect a building they own should get Coverage A, but business owners who rent don’t necessarily need this. Today, we’ll have a closer look at what Coverages A and B are and what else is protected by a business owner’s policy.

What Is Covered Under Coverage A of a Business Owners Policy?

Coverage A refers to the protection of a building. It includes the structures and properties you declared when you signed up for your policy. In addition to the main house or unit, you might have to insure add-on structures, both inside and outside the property. What’s more, you might want to protect furniture and fixtures and personal property that you have rented out to someone else or anything that is still under construction.

Business owners who are currently renting their premises don’t need Coverage A. Instead, they should look into getting Coverage B.

What About Coverage B?

Unlike Coverage A, this kind of insurance is designed for business owners who would like to protect their furniture, fixtures, and personal property, either in their own building or in a unit they are renting. Often, coverage B also protects the property of other people while they are at your business, but you should check the details of your policy to see what is included and what isn’t.

When you sign up, you have to declare all your items and determine how much they are worth. Depending on your policy, you might receive more money over time due to inflation or seasonal variations. However, you should keep in mind that there is a deductible, so your insurance won’t cover all the damage. There might also be some excluded items, such as automobiles.

What Else Is Covered Apart from Buildings and Business Property?

A good BOP in California is comprehensive and versatile. Aside from insuring your buildings, equipment, and other property, it almost always includes liability coverage, which protects you from lawsuits due to personal injuries or property damage. This is a crucial type of insurance for anyone who interacts with customers in person, either at their business location or at the customer’s home.

You can also get other types of policies, including commercial auto insurance, cyber liability coverage, and business crime insurance. If you employ other people to work for you, you should consider taking out employment practices liability insurance, a type of policy that pays out if an employee or applicant sues you due to discrimination or similar issues.

Liability

While getting Coverage A or Coverage B is important, liability insurance is even more crucial because the potential damage is unlimited. If a customer slips and falls or otherwise injures themselves while at your business, they might file a lawsuit. This could cost you a six or seven-figure amount, especially if the customer has significant injuries that prevent them from going back to work or taking part in their regular daily activities.

A liability policy protects you from this kind of lawsuit. If you get sued, your insurance will pay for the compensation as well as the legal fees associated with your case. Although the majority of businesses never experience this problem, it’s important not to skip liability insurance because the potential consequences could ruin your company’s finances and even cause you to go bankrupt.

Commercial Autos

Many firms rely on their vehicles for day-to-day operations. If you have to visit customers at their homes, transport heavy materials from one place to the other, or transport people, it’s likely that you need several cars, vans, or trucks to run your business. In this case, insuring your vehicles could be a good idea because it reduces your unexpected expenses and allows you to get back on the road quickly after an incident.

Commercial auto insurance covers the damage to your vehicles if they are involved in a crash or otherwise break down on the road. Before selecting this kind of policy, you should speak to your insurance agent. If you have bought a brand-new vehicle, it might still be insured by the manufacturer, but if you’ve had it longer than three years, you might no longer be covered.

Business Interruption

When something goes wrong with your building or your equipment, you have to pay to replace the damaged structures. However, that’s not the only reason why you might have a loss. In addition to the material costs you have to cover, you will also lose income because the running of your business is disrupted. Depending on the type of company you run, even a few days of interruption can cause significant costs.

If you believe that any disruption to your business would lead to large losses, you should discuss business interruption insurance with your agent. This policy pays you when you’ve lost income due to an unexpected event. As a result, you will be in the same economic position you were in before the event occurred, and you don’t have to worry about hefty losses.

Employment Practices Liability Coverage

Nowadays, the rules about how to treat applicants and employees are very strict, and businesses can get sued if they disregard them. For example, you’re not allowed to discriminate against anyone based on their gender, race, disability, nationality, or sexual orientation. If you don’t hire someone, pay someone less, or treat them differently for one of these reasons, they can file a lawsuit against you.

Similarly, you must provide your employees with good working conditions. There is a limit to how many hours they can work at a time, and there are regulations regarding the rest breaks they are allowed to take. Although most business owners are considerate employers, mistakes occasionally happen. By getting employment practices liability coverage, you can protect your companies from lawsuits by employees.

Cyber Liability 

Cybercrime has been on the rise for decades. The strategies cyber criminals use change every year, so security software that worked well a few months ago might be completely out-of-date today. Even if you set up all the right protections and update your security system on a regular basis, there is no guarantee that you won’t be targeted.

For this reason, cyber liability insurance is key for anyone who keeps customers’ or employees’ sensitive data on electronic devices. If this data gets stolen or compromised, you might be sued, since you put other people’s personal information at risk. By getting insurance, you can avoid a lawsuit that could cost you millions of dollars and ruin your company’s financial future.

Business Crime 

Business crime can come in many forms. A customer or employee might steal from you, they might ruin some of your products, or someone might take on your identity and engage in illegal activities. Another common issue is copyright infringement. If someone copies your product or uses your business name without permission, they might also be committing a crime.

The best way to protect yourself against business crime is to make it hard for people to steal from you or gain access to your sensitive information. However, you should also have a backup plan in the form of an insurance policy. That way, you can go about your day without constantly worrying that someone will steal or destroy your assets.

How Can I Find a Good BOP in California? 

Although you can take out the above-named policies separately, getting business owners’ insurance is often the easiest and most cost-effective solution. To get started, you should speak to a local insurance agent, who can analyze your company’s needs and let you know which types of insurance you need to consider.

Once you’ve chosen the coverage you need, the agent can find quotes from various insurance companies in your area. Your professional will go through the fine print of each one with you, so you can decide which policy offers the best value for the money spent. Then, they can help you with the paperwork and get you set up. Every year, your insurance agent can check that your policy still suits your needs and, if not, suggest a different insurance company.

Taking out a BOP in California is a great way of protecting your business from various types of unexpected expenses. If you own or rent out a building, you should consider getting Coverage A, which protects all your structures and the content of your rental units. Get in touch with us at ISU Armac and ask to speak to an insurance agent. We will be happy to help you find and customize a business owner’s insurance policy. 

Is Keyman Insurance the Same As Life Insurance?

Some businesses have tasks that can be run by many people, and when the CEO or the key people involved are no longer able to complete their tasks, someone else can easily take over. However, certain kinds of companies rely heavily on one or two staff. This increases the risks because the business can’t continue if the key people get injured, pass away, or can’t be involved anymore for another reason. In such a situation, buying keyman insurance is key.

But what exactly is key person insurance, and how does it differ from other policies like life insurance? If you’re the key employee and you’re insured by your company, do you still need to get life insurance to protect your family, or will the key person protection pay them, as well? Today, we’ll discuss what you should do if your business relies on one person and how you can make sure you’re protected, both professionally and personally.

What Is the Difference Between Keyman Insurance and Life Insurance? 

The main difference between key person insurance and life insurance is that the former covers a business, while the latter is designed for private people. You need key person protection if your company relies on one or two people and you’d lose a lot of revenue if these people were unable to work due to an illness, a sudden death, or a mental health issue.

A good policy will either pay a lump sum or an ongoing payment to replace the key person’s contribution to the firm. In contrast, life insurance is a policy designed for an individual who has one or more dependents. If you’re the main breadwinner in your household, you should consider getting a life insurance policy, which will pay your spouse, children, or other dependents in case you pass away unexpectedly.

Who Needs Life Insurance? 

You only need to get life insurance if there are others who rely on your income. Most people who have children should take out a policy, especially if the kids are still underage or if they need money to attend university. You should also consider getting a policy if your spouse would find it difficult to pay the mortgage without your income or if you are supporting another family member, such as a sibling or a parent.

If you’re one of the most important men or women in your company and the CEO has taken out key person protection for you, you might wonder whether you need to get a separate life insurance policy. In most cases, the answer is “yes” because the money from key person insurance usually goes to the business, not your family or relatives. To make sure everyone is well protected, you should speak to a qualified insurance agent.

What Types of Businesses Need Key Person Protection? 

Not all companies need to get key person insurance. In some cases, an employee or CEO can be replaced by someone else, and the business can keep running as before. However, the people are often a firm’s greatest assets, and you should consider taking out a policy if some members of the company have unique skills that are hard to find. This could be a very specific craft, a special soft skill, or in-depth knowledge about the business in question.

For example, you’ll need key person protection if the business is based around someone’s personality or image. This includes companies that sell the products or services of a guru or an expert. If this person is injured or passes away, they will no longer be able to provide customers with their service, and the company’s revenue might collapse. Getting a lump sum or a regular payment can help you keep the business afloat while you find a new strategy.

How Much Does Key Person Protection Cost? 

The cost of keyman insurance depends on the type of business you run, the amount of value the key person brings, and the duration of the payments. To get your quotes, you will first need to work out how much protection you need. Then, you have to decide what kinds of benefits you would like. Do you want a one-off lump sum paid out to you, or would you prefer regular payments for several years?

You should also keep in mind that, in some cases, key person insurance is tax deductible, so you will save some money on taxes. Since every situation is different, you should speak to an insurance advisor to find out whether you can deduct your insurance cost from your taxes.

Determining How Much Protection You Need 

Countless businesses need key person insurance, but the amount they take out varies greatly. There are several methods of calculating how much insurance you need, but the easiest way is to figure out how much revenue the key person produces and then multiply it by two. Your insurance agent can discuss your company’s individual needs with you and help you figure out whether this standard calculation applies to your situation.

What Is the Person’s Revenue-Producing Value?

The simplest way to determine how much insurance you need to buy is to calculate how much value the key person provides. To do this, have a look at your annual profits and ask yourself how much this person contributed. Then, you should think about how long it would take for you to recover from losing this person and get the business back on track.

In many cases, the formula “gross annual revenue x the key person’s contribution x 2” works well. Here, the key person’s contribution is calculated as a percentage. So, if your revenue is $1 million and the key person contributed 20%, the calculation is 1,000,000 x 0.2 x 2, which amounts to $400,000. This should be enough to get your company back on track if the person is no longer able to contribute.

What Is the Person’s Non-Revenue-Producing Value?

While the formula explained above works well for many people, not all contributions can be calculated as a monetary value. Some people don’t add revenue to your company, but they are still essential because they keep track of everyone else, help your employees do their best work, have a lot of information about your company, or handle the paperwork for you.

If your key person is non-revenue-producing, you have to estimate how much the loss of this employee would cost your company and then use a similar calculation as above. Since it can be hard to quantify someone’s value, you should speak to your insurance agent, who can tell you how other businesses in your industry handle this issue.

How Difficult Is It to Replace the Person? 

Finally, you need to consider how difficult it will be to replace your key people. The formula we’ve used so far is based on the assumption that you will be able to get your company back on track within two years of the key person’s injury or passing, but this might not be accurate.

If you believe that you wouldn’t find a replacement during this time, you might need to get more insurance. On the other hand, if you think you can find another employee within a year, you might be able to cut your insurance costs in half.

What Other Types of Insurance Does Your Business Need?

Key person insurance isn’t the only type of policy you need to take out as a business owner. In fact, there are several other kinds of insurance that might be even more important for your business. Liability insurance is key for any company that interacts with other people, and workers’ compensation is required if a firm has employees. Let’s have a look at some of the other policies you might need to take out.

Liability Insurance

Because we live in a highly litigious society, it’s easy for people to file a lawsuit against small and medium-sized businesses. If a customer injures themselves or their property gets damaged while they are on your premises, they might sue you for damages. This can be extremely expensive, especially if the injured party has high medical bills or is unable to go back to work. To protect your company, you should take out a good liability insurance policy.

Workers’ Compensation Insurance 

Most CEOs try to be fair to their employees and create good working conditions, but mistakes can happen to anyone. If you discriminate against an applicant or worker, put your employees at risk, or don’t respect your workers’ rights, you might face an expensive lawsuit. Workers’ compensation protects you against this. The policy pays for the compensation your employees receive as well as the legal fees associated with your case.

Life insurance protects your dependents when you pass away, so it’s designed for individuals. In contrast, keyman insurance is suitable for businesses that rely heavily on one or two people. This could be a revenue-producing employee, for example, a highly skilled worker, or it could be a non-revenue-producing person, like a leader or HR officer. Call us at ISU Armac to speak to our agents about key person protection. We’ll be happy to provide you with quotes.

Do You Need Vacant Land Insurance?

People own vacant land for a variety of reasons. Your property might be empty until you can get planning permission, or you might keep the land vacant for recreational purposes. If you believe that members of the public regularly spend time on your land, you should look into vacant land insurance. This can protect you in case someone gets hurt or their property gets damaged.

Lawsuits related to personal injury can be extremely expensive, especially if the victim can’t go to work or has to spend time in hospital due to the accident. Vacant land liability insurance can cover you for $1 million or more and therefore protect your financial future. Read on to find out whether you need to purchase a policy and what kinds of damage it covers.

Do You Need Vacant Land Insurance? 

Insurance for vacant land is designed to protect the owner from lawsuits. If someone gets injured or their property, they might sue you and ask for compensation. This can cost you a six or even seven-figure amount, particularly if their injuries are extensive and they need ongoing medical assistance as a result of the incident.

While property owners in most areas aren’t required to get insurance, it can be a good way of protecting yourself and your investment. When determining whether you need this kind of insurance, you should think about who might visit the land and what elements are on it. For example, if there is a body of water, or if the terrain is very uneven, the risk is higher.

What Is Considered Vacant Land?

When you think about the term “vacant land,” a plot that is not currently being used might come to mind. It could be a piece of land you’ve purchased and are hoping to develop in the future, which isn’t currently occupied. In this case, you might not expect anyone to spend time on your property.

However, that’s not the only space that is considered vacant land. The word can also describe plots that are in constant use, such as a field used for farming or a piece of land that includes a shared access road. You should always get insurance if you believe that people are likely to spend time on your land. This could be the case if the property is in a city or if it is a beautiful spot, such as a woodland or a forest, which members of the public are likely to visit.

What Does Insurance Cover? 

Every policy is different, and you should speak to your insurance agent to find out what kinds of risks are common in your area and what type of cover you should purchase. Most vacant land liability policies protect you when another person gets hurt on your property, so they pay for the medical bills related to the incident and the injured person’s lost wages during their recovery time.

In some cases, the victim will also claim that they need compensation for their pain and suffering. This may be covered. If the person passed away, the insurance company will pay their relatives, who are also entitled to make a claim. No matter how severe the accident, you should always get a lawyer involved. Most insurance policies will cover legal costs as well as compensation.

What Is Not Covered by Insurance? 

While any accidental injuries are covered, your insurance won’t pay out if you harmed someone on purpose. This is true even if the people who are on your land are trespassers. Similarly, anyone working on your property isn’t covered, so you’ll need to get a specific policy if you’re having work completed on the land. Finally, the insurance policy is unlikely to cover you, your spouse, and your dependents.

Frequently Asked Insurance Questions 

Now you understand what vacant land liability insurance is, you might have some additional questions. Anyone considering taking out a policy should speak to an insurance expert, who can help them evaluate their individual situation and compare various options. Since not every area is the same, the availability and cost of policies might vary significantly, and it can be hard to find a good deal in certain locations.

How Much Is Vacant Land Liability Insurance? 

Most policies that insure vacant land aren’t very expensive because the risk of property damage and personal injuries is often relatively low. Unless there are dangerous elements like bodies of water on the property, you might be able to get a policy that costs you around $15-30 per month. Even if you have a very large piece of land, it’s unlikely that insurance will cost you more than $100 per month.

In return for this fee, you get the reassurance that you won’t have to pay should something happen. Many policies offer cover for $1-2 million, which should be plenty even if the accident is severe or the person passes away. If you’re not sure how much insurance to get, you should speak to an agent, who can analyze your situation and help you choose the most suitable policy.

What Determines the Cost of My Policy? 

Various factors affect the cost of vacant land insurance. Remember, insurance companies are looking to make a profit and minimize their risk, so they will charge you more if they believe that an accident is likely. You might have to pay a higher fee if your land is large and there are natural structures that could endanger people. Most insurers will also ask you to pay more if the land is located in a populated area, where many people might have access to it.

It’s important to consider that you won’t be able to get vacant land liability insurance on any land that still has structures on it. In this case, you’ll have to get a different kind of insurance for your property, most likely home insurance, which is more expensive. This is true even if the buildings are ruined and not currently in use.  

Do I Need Insurance If I Expect Trespassers? 

While you are always responsible for people who visit your property legally, those who are trespassing are technically not your responsibility because they are acting against the law. Therefore, you might not need to get insurance if the piece of land is not accessible to the public and you have also made it clear that entering the land is trespassing. Unfortunately, there are some exceptions that could affect your rights and responsibilities.

For instance, you might be held responsible if you know that people regularly cross your land to get to a destination, such as a bus stop or a school. In such a case, you’re not allowed to put people in danger, even if you’ve put up “no trespassing” signs. You might be able to put up barriers and even involve law enforcement to get people to stop accessing your land, but you can’t allow anyone to be put in a dangerous situation.  

How Can I Find the Best Policy in My Area?

Finding a good liability insurance policy can be a challenge because there are various providers that offer slightly different types of cover. The best way to find suitable insurance is to speak to an agency like ISU Armac. Using the most up-to-date software, we can quickly compile various quotes, so you don’t risk missing out on a policy that could be right for you.

What’s more, our experienced staff can help you consider factors such as your risk level and the kinds of risks you’re likely to encounter. Together with your agent, you can determine which policy best suits your needs and then access it at a low price. Since there are often introductory offers, you might pay less than average in your first year.

How Can I Minimize the Cost of Insurance? 

There are several ways to reduce the total cost of vacant land liability insurance. While this type of policy isn’t usually expensive, it can be costly if your piece of land is large or if it’s considered risky. To lower the chance of a problem, you should put up “no trespassing” signs and, if necessary, fence off your property, so it becomes more difficult for people to access your land. Additionally, you can anticipate potential issues and remove the source of the problem.

For example, holes in the ground should be filled in, since they can easily cause accidents. The less risky your property is, the less you will have to pay the insurance company. Another great way of reducing your insurance cost is to check in with your agent once a year to see whether you can switch to a cheaper policy. The insurance market changes constantly, so you should always keep a lookout for better options.

Just because a property doesn’t currently have any structures on it doesn’t mean you can skip insurance. Vacant land insurance is designed to protect you from lawsuits related to personal injuries and property damage. If you know that other people access your land on a regular basis, you shouldn’t delay getting in touch with an experienced insurance agency. Contact us now at ISU Armac to find out how you can find the best policy.

10 Factors to Consider When Getting Life Insurance

In the US, just over half of the population has life insurance, but not everyone who has taken out a policy is optimally covered. Before you sign up, you should consider a wide variety of factors and speak to an insurance agent. A professional will help you determine whether you need to get insurance, who your beneficiaries should be, what risks and lifestyle choices affect the cost of your insurance, and what kind of policy is best for you.

They can also provide you with a wide variety of quotes so you can select an appropriate insurance company, and they will help you fill out all the necessary forms. In some cases, the amount of insurance you need increases or decreases as you grow older, but there are policies that cater to these fluctuations. Read on to find out what you should consider when getting insurance.

10 Factors to Consider When Getting Life Insurance

1. Do You Need Insurance? 

Not everybody needs to get insured to the same degree, so you should consider various factors before you sign up to a policy. The most important is whether you have any dependents who would suffer if you no longer provided them with financial support. Most commonly, dependents are children, but this doesn’t have to be the case. If you and your partner have bought a house together and your partner’s income isn’t enough to pay the mortgage, they are also your dependent. 

Someone who doesn’t have anyone relying on their income, such as a single person with no close relatives, might not need to get much insurance. However, anyone who has loved ones that need their support should take out a policy. Similarly, you should get covered if you would like to continue subsidizing a charity, church, or individual after you pass away, or if you know you will not have enough liquid funds to cover your own funeral and don’t want your extended family to be responsible to do so.

2. Choosing Your Beneficiary

You will have to choose your beneficiary before you can put together a suitable policy. Typically, this is a close family member such as a child, a spouse, or an elderly parent, but your beneficiary can be anyone, whether they are related to you or not. In some cases, people leave their money to a charitable organization, a close friend, or a trust.

While some have just one beneficiary, others have multiple people relying on them. If you are currently supporting several others, you should consider how much money each beneficiary needs and for how long. For instance, if you have several children, the younger ones are likely to require more assistance than the older ones, who might have already gone through school and started their college education.

3. Your Risks and Lifestyle Choices 

People who lead a healthy life and don’t participate in any risky activities are much less likely to pass away early, but that doesn’t mean they shouldn’t take out an insurance policy. In fact, healthy individuals will have an easier time finding a good deal because they are less of a risk for the insurance company. By quitting smoking, achieving a healthy weight, and avoiding dangerous behaviors, you can decrease your premiums significantly.

Some people, such as firefighters or construction workers, are more at risk of becoming disabled or passing away due to their job. While you can’t do anything about this, you should look into getting insurance at a younger age if you work in a risky environment. That way, your family is taken care of, no matter what happens.

4. The Best Kinds of Policies

There are various kinds of policies available, and not all of them will suit you. The best way to find out what your options are and to select a suitable deal is to speak to an experienced insurance agent. The two basic types of policies are term insurance and whole life insurance. The former ends after a specific amount of time, such as five, ten, fifteen, or twenty years. It is a great option for people who want to be covered until they achieve retirement. 

The latter covers you for the rest of your life, so your beneficiaries will get paid no matter when you pass away. This is a more expensive type of cover, but it can act like a savings account for your dependents. There are also other policies that cover specific items. For instance, mortgage insurance covers the remaining cost of your mortgage if you pass away before it is paid off, and funeral insurance covers your end-of-life costs.

5. How Much Coverage You Need 

Once you’ve determined what kind of coverage you need, you have to think about the amount of money you would like your beneficiaries to receive. You should consider various factors, including the amount your spouse or children would have to spend on the mortgage, any remaining education costs, the regular cost of living, and potential future medical needs. 

Most people underestimate the amount of cover they need, so it could be worth speaking to an expert before deciding on an amount. Since future expenses are somewhat variable and subject to change, it can be helpful to add a certain percentage to the expected total to make sure your beneficiaries don’t run out of money.

6. Factors that Affect the Price

Several factors affect the price of your insurance policy. As discussed, your lifestyle impacts the premium you’re charged because people who lead a risky life are more likely to develop life-threatening conditions or to pass away. Additional factors that make a big difference are the type of policy you select and the amount of cover you need. 

Your insurance agent can help you to estimate the amount you will spend on insurance. They will take into account your lifestyle, your job, your current age, your desired level of coverage, and your medical history. Once you’ve found out what your insurance is likely to cost, you can determine what kind of policy is within your budget.

7. How You Can Find the Best Policy for Your Needs

There are countless insurance companies out there, and not all of them offer excellent value for the money spent. Remember, the primary goal of an insurance firm is to make a profit, so they will try to charge you as much as they can. To make sure you’re not spending too much, you should contact an insurance agent, who can help you compare quotes and select the deal that offers the best coverage for the least amount of money. 

Often, there are introductory offers that pull you in and promise you cheap premiums, but you should be wary of those. Carefully read the small print of the policy you’re considering before you decide to sign up. This can prevent you from getting locked into an expensive plan.

8. What Information You Need to Provide 

Before sending you an accurate quote, insurance companies will ask you to provide them with a lot of information. That way, they can assess whether you are living a risky lifestyle or not. Some of the documents you might need to show are your proof of ID, a record of your personal medical history, your driving record, and some evidence of your occupation.

You will also be asked to fill out a lengthy application, which includes questions about your smoking habits, your alcohol consumption, your weight, your mental health, and your hobbies. Although you might be tempted to lie, it’s always best to be truthful because your insurance company might use third-party sources to verify the information you give them. If you’re working with an insurance agent, they can help you with this process.

9. Your Future Needs 

The needs of your beneficiaries will change drastically over time, and your cover should reflect this. For example, young children who need a lot of financial assistance are likely to be self-sufficient by the time they have completed their college degrees. Therefore, you won’t need to provide support for them once they have their own full-time job. Similarly, your mortgage might be paid off in several years, at which point your expenses will drop.

On the other hand, medical needs often increase with age, so your spouse might need more money to cover various treatments and medications as they grow older. When signing up for an insurance policy, you have to keep all these factors in mind. Many insurance companies offer individualized plans, so you might be able to decrease or increase your coverage over time.

10. Your Funeral 

When calculating the cost of your policy, you shouldn’t forget about your end-of-life costs. The biggest one is likely to be your funeral, but there might be medical bills or other expenses, as well. To take some of the stress and trauma out of your passing, you should consider getting funeral insurance. In some cases, this is included in a general insurance policy, but you can also get it separately. 

Life insurance is important for anyone who has dependents or would like to pass their wealth on to an individual or organization after they pass away. If you’re interested in getting insured, you should speak to a professional, who can provide you with various quotes and guide you through the process. Call us today at ISU Armac to find out more about the policies you are eligible for.

Does General Liability Insurance Cover Negligence?

Almost everyone who runs a small or medium-sized business needs to take out general liability insurance. This type of policy protects companies from lawsuits related to personal injury and property damage. It is therefore crucial for anyone who runs a business that involves contact with customers. But what exactly does this kind of insurance cover? Can you expect the provider to pay out if you’ve injured someone due to negligence?

In most cases, the answer is yes. The purpose of liability insurance is to protect businesses from the risk of being sued due to negligence and accidental damage. If someone gets hurt while they are at your firm’s office or shop, you injure someone or damage their property at their home, or you make an advertising mistake, you can expect the costs of the resulting lawsuit to be covered by your insurance.

Does General Liability Insurance Cover Negligence? 

Negligence is defined as the failure to uphold the duty of care and protect others from harm. Often, it is not an action but the lack of action. For example, a business owner might be negligent if they fail to place warning signs in an area where the floor is slippery. This puts their customers at risk and can cause an accident. While some forms of negligence are obvious, others are more subtle and harder to prevent.

If you own a business, you must purchase liability insurance to protect yourself from lawsuits related to negligence. Generally, this type of policy covers negligent acts, as long as you weren’t aware of what you were doing and there was no intention behind your failure to act. Depending on your business and local area, your insurance provider might require you to take certain precautions to minimize the chance of a lawsuit.

An Injury or Property Damage at Your Business Location

The most common problem liability insurance protects you from is an injury or property damage that occurs at your in-person business location. Since we live in a litigious society, members of the public can sue business owners if they slip and fall or otherwise injure themselves while on the company’s premises. Such a lawsuit can cost you hundreds of thousands of dollars, but a good liability insurance policy can protect you from financial ruin.

If someone gets injured or their property gets damaged while they are in your shop, office, or center, your insurance policy will pay for the compensation and the legal costs associated with the case. When you purchase insurance, always read the fine print. Sometimes, there are conditions that stipulate when a policy does and doesn’t pay out. You might not be covered if you didn’t warn your customers or you didn’t tell the insurers the truth about your business.

An Injury or Property Damage at Another Location  

Company owners who don’t operate out of a physical location that is visited by clients might wonder whether they need to take out liability insurance. The answer is still “yes” in most cases, especially if the owner or employees interact with customers in-person. For example, contractors who visit people’s houses could accidentally injure someone while on the job or damage their property.

This could be due to negligence or due to a circumstance outside of the worker’s control, such as a badly manufactured tool or an unsafe work environment. No matter the cause of the issue, you can usually expect liability insurance to pay out. If you run a business that involves visiting people’s homes, you should consider looking for industry-specific liability insurance that covers your business’s risks.

Problems Related to Advertising

What if your business is conducted entirely virtually? Can you skip insurance in this case? The answer is most likely “no” because you’ll still interact with others and potentially cause harm. The most common issue is related to advertising. You could accidentally make a false claim or offend someone, who then sues you for damages. This type of issue is also covered by general liability insurance.

What Is Excluded? 

As discussed, liability insurance can protect businesses against claims of negligence, personal injury, and property damage. However, most companies also face other risks that might not be included in the policy. Issues related to employees, professional mistakes, and car accidents aren’t usually included in general liability. What’s more, intentional or expected damage is never covered.

Expected or Intended Damage

Most general liability policies don’t protect against damage that is expected or intended. If you or one of your employees intentionally damage your own product or someone else’s property, your policy is unlikely to pay out.

For example, if a contractor gets frustrated while working a job and smashes a window or punches a wall, the worker or the business owner will need to pay for the repairs. To avoid any such issues, you must always conduct yourself professionally, and employees must be trained before starting their job.

Workers’ Compensation 

The purpose of liability insurance is to cover you in case a customer files a complaint against you. However, it doesn’t include issues related to your workers. To protect your company against claims made by your employees, you should take out workers’ compensation insurance. This type of policy pays out when one of your employees files a lawsuit due to an injury or discrimination at work.

Workers’ compensation insurance can pay for your employee’s lost wages, their medical treatment, and their emotional recovery. It also covers any legal fees associated with such a case.

Auto Accidents 

Many businesses rely on their company cars or fleet of vans. Without these vehicles, your workers can’t make deliveries, visit clients, or pick up items. Unfortunately, auto accidents are common, and if your firm has been in operation for many years, it’s likely that there will be at least one incident on the road.

Liability insurance doesn’t cover damage related to car accidents, so you’ll need to take out a separate policy called business auto insurance. This can pay for the medical bills of injured parties and the repair or replacement of your company vehicle.

Professional Mistakes 

Many jobs involve responsibilities towards other people or their property. For instance, a therapist or counselor has a duty of care and must speak up if they believe that someone is in danger. Similarly, financial advisors or attorneys are responsible for people’s assets, and they shouldn’t make errors that could cause losses.

While most professionals act ethically and do their best, mistakes can happen to anyone. If you’ve made an error or failed to act, and it has caused financial, physical, or emotional damage, you might be faced with a lawsuit. Problems directly related to your profession aren’t covered by general liability insurance, so you will have to take out professional indemnity insurance.

Should I Get General Liability?

As you can see, there are many reasons why you should get liability insurance. If you advertise, run a business from a physical location, or visit customers in their homes, getting insurance is essential. Some of the businesses that require a policy include small shops, salons, restaurants, cafes, leisure centers, gyms, law offices, medical practices, and professionals offering financial services.

Another reason to get general liability is that many contracts require you to have a policy in place. Therefore, you might not be able to pick up new business easily if you skip insurance. By getting a good policy that covers your company’s needs, you demonstrate to your associates that you are serious about your business.

How to Find the Best Policy 

There are many different liability insurance policies available, and it can be hard to figure out which one is suitable. While the cheapest isn’t always the one that suits a business best, it’s also not usually necessary to go for the most expensive policy. If you’re unsure about how to find good insurance products, you should get in touch with an agent.

When you work with a professional, you can take advantage of their experience and knowledge to find the cheapest, most comprehensive policy out there. After contacting your agent, you will receive free quotes within minutes. You can then examine each one and determine which insurance company fits in with your company’s individual risk factors. Your agent will help you consider all factors, optimize your purchase, and review your policy on a regular basis.

Because we live in a litigious society, around 40 million lawsuits are filed annually. Many of them involve businesses that either have an in-person location or complete projects at customers’ homes. Often, the reason for the complaint is negligence, which is the failure to prevent damage or injury. A good general liability insurance policy can protect small and medium-sized businesses from the financial consequences of such a lawsuit.

Because liability insurance is necessary for almost every business, there are countless policies available. It can therefore be hard for business owners to find the best one. If you’re looking to take out a policy or switch from your current provider, you should speak to an experienced insurance agent. Contact us now at ISU Armac in Victorville, CA to discuss your situation with a professional and get your free quotes.

Is Commercial Liability Insurance Mandatory?

Commercial liability insurance is a type of policy that covers issues related to personal injury and property damage. If one of your customers gets hurt or their property gets damaged while they are on your premises, this type of insurance can pay for the resulting damage. Whether or not you have to get liability insurance depends on your business’s location and your field.

In California, there is no legal requirement to take out liability insurance, but most small and medium-sized businesses do so because it protects them from extremely expensive lawsuits. If you deal with customers in person, have a physical location where people visit you, or advertise publicly, it’s likely that you should take out a policy. Read on to find out more about liability insurance and to discover how you can find the best policy for your needs.

Is Commercial Liability Insurance Mandatory? 

Not every state has the same rules and regulations regarding liability insurance for businesses. For example, you must take out a policy if you are a lawyer in Idaho and Oregon. Similarly, doctors need liability insurance if they want to practice in Colorado, Connecticut, Kansas, Massachusetts, New Jersey, Rhode Island, or Wisconsin, and some states require realtors to be insured.

If you run a small company in California, you don’t have to get a liability insurance policy. However, it could be a good idea to do so anyway because there is no cap on liability lawsuit rewards in this state. Therefore, you could lose hundreds of thousands or even millions of dollars if someone gets injured or their property gets damaged while they are at your business location or working with you.

Who Needs Liability Insurance?

Since liability insurance isn’t mandatory in most states, you might wonder whether you need to take out a policy, especially if you don’t have a shop or office. Could you save your money and invest it in the business instead? Unfortunately, we live in a very litigious society, and lawsuits against companies are extremely common. Therefore, skipping insurance isn’t a good idea for most businesses.

Anyone who has a physical location where they are visited by customers must take out a policy because they are at high risk of being sued. Similarly, those who deal with customers outside of a shop or office should also consider insurance. Even if you conduct your business online only, you might need to protect yourself because you could face a lawsuit related to your advertising practices.

You Have a Physical Location 

Countless small businesses have a physical location, where customers interact with employees face-to-face. This includes shops, cafes, restaurants, gyms, leisure centers, and many types of offices. If you run such a company, you should look into liability insurance because you are responsible for your customers while they are at your business location.

For example, if someone slips and breaks their hip in your shop or office, you’ll have to pay for the resulting medical bills, loss of income, and potentially for the emotional trauma. Similarly, you’ll be responsible if your customer’s car or another valuable item gets damaged while they are at your location. To protect yourself against these costs, you can get a liability insurance policy, which pays the compensation as well as the legal fees associated with the case.

You Deal with Customers 

Not every business operates out of a physical location, but that doesn’t mean that liability insurance should be skipped. If you deal with customers in person, it’s likely that you need to get insured. This is especially true if you visit people at their own house, for instance to fix their electrical systems, to work on their plumbing, or to look after their garden.

For some businesses that visit customers at home, general liability insurance will be enough, but others need a policy that is specific to their needs. To find out which type of insurance is best for you, you can contact an agent at ISU Armac. We can show you various options, such as contractor insurance, property manager insurance, and landscape services insurance.

You Advertise Your Services 

Most businesses do their research before they publish a social media post or submit an advertisement. However, mistakes can still happen, and they can be extremely costly. If you are advertising your product or services publicly, you should take out liability insurance because you could be at risk of a lawsuit if you inadvertently post false information or offend someone.

What Types of Insurance Are Mandatory for Businesses in California? 

While you don’t have to get commercial liability insurance in California, there are other types of insurance that are mandatory, namely workers’ compensation insurance and commercial auto insurance. The first is designed to pay out if an employee files a lawsuit, and it is mandatory for any business with one or more employees. The second protects your investment in your vehicle, and you have to take out a policy if you have a company car.

Workers’ Compensation Insurance 

Business owners who employ at least one other person must get workers’ compensation insurance in California. The aim of this type of insurance is to protect businesses from lawsuits filed by employees. If a worker gets injured while on the job, the policy will pay for their medical bills, disability benefits, and job displacement benefits. It can also cover end-of-life costs or additional costs related to the employee’s return to work.

In many cases, issues related to mental health and discrimination are also covered, as long as they are severe enough to prevent the employee from doing their job. However, you should speak to your insurance agent about the details of your policy. If you’re an independent contractor or a sole proprietor, you should also look into workers’ comp because it could help you access compensation and benefits after an accident.

Commercial Auto Insurance 

Countless businesses rely on their fleet of cars and vans. Even if you don’t transport passengers or goods, you might need your vehicle to get from one customer to the next or to run errands for your business. Everyone who has a vehicle that is used for commercial purposes must get auto insurance, which covers the property damage, personal injuries, and legal bills related to accidents on the road.

If one of your workers has an accident while driving a company vehicle, your firm might get sued. In such a case, your insurance policy pays out, so you don’t have to use your business’s funds to pay for compensation. In California, you have to take out a 15/30/5 policy. This covers $15,000 per person involved in the accident, $30,000 total for personal injury, and $5,000 for property damage.

How Can I Find a Good Insurance Policy for My Business? 

As you can see, getting insurance for your business can be tricky, especially since commercial liability is just one of the policies you should take out. Depending on the type of business you run and the risk factors involved, you’ll also need specialized insurance, which might include commercial property insurance, cyber liability insurance, errors and omissions liability insurance, and key man life insurance.

With so many policies and providers, it can be hard not to lose track. To make sure all your risk factors are covered, you should get in touch with an insurance agent. They will evaluate your business and then suggest which types of insurance you need. Then, the agent can provide you with quotes from the best providers in your area and help you compare the various offers.

How Much Should Liability Insurance Cost? 

An average business pays $50-70 per month for general liability. However, this figure varies greatly because it depends on your business’s size and turnover, the risk factors in your industry, and the amount of coverage you’ve chosen. A policy that only covers damage up to $1 million will cost a lot less than a policy that pays out $5 million. Similarly, an office is cheaper to insure than a high-risk sports facility such as a trampoline hall.

Your insurance agent can help you find reasonably priced policies. It’s important to remember that the cheapest isn’t always the best. Although you should avoid overpaying, you must make sure that you are well covered and that there aren’t any gaps in your insurance. Once you’ve set up your policy, you and your agent can meet once a year to re-evaluate your situation and determine whether the level of insurance you have is still right for your business.

Contact Us to Get Started

While there is no legal requirement to do so in California, virtually every business needs to take out commercial liability insurance. A lawsuit related to property damage or personal injury can be extremely expensive, and having insurance in place is the best way for small firms to protect themselves. Anyone who deals with customers, gets visited in a physical location, or advertises their product or services should consider taking out a policy.

In addition to liability insurance, California businesses must also look into workers’ compensation insurance and commercial auto insurance. These types of policies are required, so they can’t be skipped. Fortunately, you don’t have to find insurance on your own. A highly trained agent can compile relevant quotes for you and help you find the most suitable insurance provider. Call us today at ISU Armac to get started.

What Factors Affect the Price of Commercial Liability Insurance?

Almost every business needs commercial liability insurance, no matter its size and industry. This type of policy can protect your company from financial ruin when a claim is made against you, for example after someone gets injured while on your premises or their property gets damaged. It also pays out if you face a lawsuit related to libel, slander, or false advertising.

Fortunately, general liability insurance doesn’t have to be extremely expensive, and small businesses can find policies from around $50 per month. The size of the business, the risk levels, the location, the deductible, and whether the firm has ever made a claim in the past can affect the cost of insurance. Today, we’ll have a closer look at each of these factors and discuss whether you should take out a policy.

What Affects the Price of Commercial Liability Insurance? 

The insurance business is highly competitive, and companies offer various prices for the same type of service. If you haven’t checked the cost of your general liability insurance policy recently, you should find out whether it has increased over the years. If so, you might be able to lower your monthly payment by calling the company or switching to a different provider.

The price of your insurance depends on various factors, including the size and risk level of your business and whether you have ever made a claim. While these factors are outside of your control, you can lower your cost by opting for a high deductible, negotiating a package deal, or paying your premiums upfront instead of monthly.

The Size of Your Business and Number of Employees

Many insurance companies determine the size of a business by the number of employees, so this is one of the most important factors affecting the price of general liability insurance. Since the risk of a mistake and a lawsuit associated with it increases the larger the business is, more employees result in higher insurance costs. Additionally, insurance companies check your annual income to determine how much they will charge you.

The more money your business has, the more there is worth protecting when you are threatened by a lawsuit. What’s more, firms with a high income usually work with a larger number of customers and are therefore more exposed to risk. Thus, businesses with a large income and many employees will pay significantly higher premiums than smaller companies.

Your Risk Levels

Not every industry is equally risky. Retail businesses or office corporations are considered low-risk because there is little chance of getting injured on their premises. As long as the owners take adequate precautions, such as putting up warning signs whenever there is a wet spot on the floor and instructing employees not to leave objects lying on the floor, there is little chance of an injury or property damage.

Other types of businesses are more at risk. For example, people visiting a construction site are much more likely to fall, slip, or otherwise injure themselves than those visiting an office. Similarly, gyms and venues offering activities with the potential of injury must pay higher premiums because it’s more likely for a problem to occur over the years.

Your Business Location  

The location of your firm and the structure of your building can affect the quotes you receive. If you operate out of a building that is located in an area prone to natural disasters, theft, or vandalism, you might have to pay more. While commercial liability insurance doesn’t directly protect you against structural damage to your property, it pays out if your customers get injured or their property gets damaged while they are using your physical location.

This is more likely to happen during a disaster or a break-in. Depending on the size of your business, insurance providers might also consider the structure and internal features of your building. To lower your premium, you could install safety features such as disaster preparation measures or theft prevention programs. Additionally, you could provide safety training to all your employees.

Previous Claims 

Every business can run into trouble, and if you’ve had to make an insurance claim, that doesn’t automatically mean you’ve done anything wrong. However, if you’ve asked your insurance company to pay out several times over the past few years, it’s likely that your monthly cost will increase because you’re considered a high-risk customer. In this case, you’ll have to pay more, whether you stay with your old company or switch to a different one.

Your Deductible

Just like health and auto insurance, general liability insurance usually has a deductible, which is the amount of money you have to pay out yourself before your insurance kicks in. The higher this deductible, the less you pay on a regular basis. Businesses that have a lot of cash available for emergencies should consider raising their deductible. On average, this saves them money, especially if the risk of a lawsuit is very low.

The Deal You Make 

Business owners who would like to lower the price of their insurance policy should get in touch with an agent to see whether there are any deals available. Insurance is a very competitive field, so many companies offer discounted rates for a certain amount of time to attract or retain customers. For example, you might be able to package several types of insurance together to create a cheaper Business Owner Policy that covers various risks.

Similarly, paying three, six, or even twelve months in advance could reduce the total cost of insurance significantly, since providers are often willing to offer discounts for upfront payment. If you can’t currently afford to pay in advance, you could set aside some money for next year and thereby lower your costs.

Who Needs Liability Insurance? 

Insurance can be expensive for a business, especially since so many different policies are needed. In addition to taking out liability insurance, you might need to protect your building, your vehicle, and your equipment. However, most businesses can’t simply skip general liability insurance because the benefits outweigh the risks. Anyone who operates out of a physical location or advertises regularly must take out a policy.

You Have a Physical Location

Shops, restaurants, offices, gyms, and leisure centers all have one thing in common: they are based on a physical location, where employees and customers interact. Therefore, there is the potential for an issue related to injuries or property damage. For example, a member of the public might slip and fall because an object was left lying around, someone spilled a liquid, or a step wasn’t marked clearly.

Lawsuits related to such incidents can often be extremely expensive. In some cases, firms have to pay out six or even seven-figure amounts. Such an event could ruin a company if they are not insured.

You Advertise 

More and more businesses choose not to operate out of a physical location. If your firm runs online, does that mean you can skip commercial liability insurance? In many cases, the answer is no. Anyone who advertises puts themselves at risk of a lawsuit.

You might inadvertently offend someone and be sued for slander, libel, or false advertising. In such a case, your general liability insurance can pay out. Therefore, anyone who advertises must take out insurance.

What Should the Policy Cover?

As discussed, liability insurance covers you when someone gets hurt or their property gets damaged while they are at your business. Additionally, you are protected when there is an issue with one of your advertisements. Depending on the policy you choose, other events are included, as well.

Businesses that manufacture and sell objects can add product liability to their insurance, which covers them when a customer experiences an issue with their product. If you rent your office or shop space, you can also get tenant liability. That way, your insurance pays your landlord if the space gets damaged while you are occupying it.

How Can You Find the Best Policy? 

With so many options out there, it can be hard to find a suitable policy on your own. For many businesses, contacting an independent agency is the best way forward. Your insurance specialist can analyze your company’s needs and then compile the best quotes available to you. They can also discuss what kind of coverage you need, so you don’t end up paying for extras that don’t serve you well.

Commercial liability insurance is essential for most companies because it protects them against expensive lawsuits that could ruin the firm’s financial stability. When a lawsuit is brought against you because someone got injured at your business or their property was damaged, your policy will pay the legal fees and compensation. Contrary to popular belief, liability insurance doesn’t have to be expensive, especially if you’ve never made a claim in the past.

The cost depends on your business’s individual history, the risk levels associated with your industry, your physical location, your deductible, and the size of your company. If you’re confused by the various policies available to you, you should speak to an expert, who can help you find the most suitable solution. Get in touch with us now at ISU Armac to request quotes or to find out more about general liability insurance.

What Is the Difference Between General Liability and Garage Liability?

Nowadays, every business needs insurance. Often, general liability is the best option because it covers issues such as bodily injury or property damage on the company’s premises, problems with an advertising campaign, or issues with products. However, some firms need a more specific policy that addresses the risks of their industry. For instance, those operating in the automotive industry can benefit from garage liability.

While general liability is designed for a wide variety of businesses, garage insurance is targeted at people working with vehicles. In some cases, both policies might be necessary, but many companies are well served with just one or the other. Today, we’ll have a closer look at the two types of insurance and discuss how you can find one that suits you.

What Is the Difference Between General Liability and Garage Liability?

A liability insurance policy is designed to protect a business or individual when a lawsuit is brought against them. For instance, the insurance company has to pay out when someone slips and falls at the firm’s premises and then asks for compensation for their injuries. General liability insurance is a policy suitable for almost everyone, and it is a necessary component of running a business.

Garage insurance is simply a more specific type of general liability designed to protect firms that operate within the automotive industry. It addresses the unique risks faced by people who own a garage, repair shop, or similar business. While this can be an extremely valuable type of insurance, some garages are already fully covered by their general liability insurance. The best way to find out more is to speak to a highly experienced insurance agent.

What Is General Liability Insurance?

Running a business comes with considerable risk. In particular, owners must protect themselves against lawsuits brought against them by clients due to bodily injuries or property damage. General liability insurance covers these problems and is therefore a vital part of a company’s business plan. For a reasonable monthly fee, you can protect your interests and make sure you don’t put your business at risk.

Who Needs to Purchase It?

Since we live in a litigious society where lawsuits are common, almost everyone who owns and operates a business needs to take out liability insurance. If you have a physical business location and you fail to protect yourself, you might have to pay a high amount of compensation, which could ruin your firm’s financial stability.

Although businesses with physical premises are the main target group for this kind of insurance, you might need it even if you operate virtually. There could still be an issue with your product, or you could make a mistake during the advertising process. Therefore, both online and physical retail stores, offices, construction sites, medical practices, and leisure centers all need general liability insurance.

What Does It Cover?

General liability protects you any time someone gets hurt or their property gets damaged at your place of business. The most common incidents are falls, which can be caused by a particularly slippery floor, a water spill that wasn’t clearly labeled, a step, or something lying around on the floor. Occasionally, businesses also have to pay out because something fell from the ceiling or someone got hurt by a piece of furniture.

Additionally, general liability protects businesses when something goes wrong with their product and it causes an accident or damage to the customer’s property. Your policy also pays out if you inadvertently cause offense or make a false claim when you advertise. These issues are general enough that they can happen to almost any company, but if you run a very specific business, you might have to take out customized insurance like garage liability.

How Much Does It Cost?

For small to medium-sized businesses, general liability insurance doesn’t have to be expensive. In many cases, policies start at $50 to $100. The price remains low as long as the company’s profits are still modest and there aren’t very many employees. When operations increase and you begin to work with more people, your risk level increases, so your insurance provider is likely to ask you to pay a higher premium.

Fortunately, there are several things you can do to keep your insurance cost reasonable. Firstly, you can increase your deductible, which is the amount you pay out before your insurance kicks in. If you are financially stable, this is a great way of reducing your monthly bill. Additionally, you can ask for a discount in exchange for upfront payment, negotiate with your insurance company, or hire an insurance agent to find you the best quotes.

What Is Garage Insurance?

Garage insurance is a type of policy designed for people in the automotive industry. It covers the risks specific to this type of business, which might include heavy objects falling, risks related to oil spills, and problems with the completed work that lead to accidents. While car-related businesses aren’t the riskiest, they do claim more often than other companies, so the premiums are likely to be higher.

Who Needs to Purchase It?

As mentioned, not every business in the automotive industry needs garage insurance. In some cases, the general liability insurance policy covers the most common risks, and purchasing an additional product would be overkill. However, there are certain risks that are unique to this industry, so you should double-check your other insurance policies to find out whether you need to get this add-on.

Aside from garages, several other types of automotive businesses can benefit from specific insurance. Some of the most common examples are parking garage or parking lot operators, dealerships, tow-truck operators, and service stations. While the automotive industry isn’t considered as high-risk as some other professions, there are some issues that are unique to the above-named kinds of businesses.

What Does It Cover?

There are three main risks that are covered under a garage insurance policy. The first one is bodily injury, which occurs when a customer gets hurt on your premises. For example, there might be oil or tools on the floor, which lead to a fall. The resulting lawsuit could cost you a five or six-figure amount, so having an adequate level of insurance is key.

The second issue is property damage, which occurs when a customer’s property gets damaged or destroyed due to an incident at your firm. Finally, your policy also protects you if there is an issue with work completed at your garage. If a customer gets injured due to a problem with your work such as an incorrectly secured tire, your insurance pays for the resulting damage and medical expenses.

How Much Does It Cost?

Compared to general liability insurance, garage liability insurance is significantly more expensive. The annual fee for a small to medium-sized garage could be $1,000 to $3,500, so you’re likely to spend one hundred dollars or more per month. It’s also important to keep in mind that you’ll need workers’ compensation insurance in addition to liability cover, so you might spend more than $6,000 on insurance products in a year.

The reason why your policy is so expensive is that garages and dealerships are riskier than average businesses. They are more likely to claim, and the amount of damage is sometimes high. You can lower your policy by shopping around for a good deal, paying upfront at the start of the year, and making sure all the security features of your business are up to date.

How to Find the Best Policy 

As you can see, both general liability and garage insurance can be vital for a business in the automotive industry. However, finding the best policy in your area isn’t always easy. If you’re not sure how to begin, you should speak to an insurance agent. Here at ISU Armac, we make use of advanced technology to scan local offers and determine which ones apply to you. As a result, we can offer you quick and accurate quotes.

What’s more, our agents can help you pick between the various options. They will consider your business’s location, individual risk factors, and current financial situation to determine the best policy for you. If necessary, they can also help you find other types of insurance, such as workers’ compensation, professional liability coverage, and business interruption insurance, so you’ll know you’re protecting your company optimally.

Contact Us for Help

When starting a new business, it can be hard to know what type of insurance you need. While garage liability is specific to firms in the automotive industry, general liability is essential for almost every company because it protects owners against expensive lawsuits. If you own a garage, dealership, car parking facility, or other business related to vehicles, you might need just one or both of these policies.

The easiest way to find out more is to contact a highly skilled insurance agent and ask them to provide you with quotes. They can help you figure out your risk levels and then match you up with a policy that offers the best value for money spent. Get in touch with us at ISU Armac to find out more or get your quotes.

How Much Life Insurance Should You Get?

Nobody likes to think about their passing, especially at a young age. This might be the reason why almost a quarter of US adults don’t have life insurance. But if you have dependents who rely on your income, it is highly recommended that you take out a policy to protect their interests. Although speaking to an insurance specialist before purchasing a policy is almost always the best way forward, you can start figuring out what you need on your own before then.

To determine how much insurance you should buy, you must take into consideration how much money your loved ones will spend after your passing and what debts they will need to pay off. Additionally, there are one-off expenses that shouldn’t be forgotten. Read on to find out how to calculate the amount of insurance you need and what policies there are.

How Much Life Insurance Should You Get? 

How much insurance you purchase is a very individual decision, and you should always consult a professional before purchasing a policy. It’s crucial to remember that your family’s future could depend on this decision. To protect them, you will need enough money to replace your income, get rid of debts, pay for the funeral and other end-of-life expenses, and pay for the children’s education.

Replacing Your Annual Income

The most important aspect to consider is your annual income, which will need to be replaced. A good way to begin is to calculate your expected future earnings over the years. But depending on your family’s current financial situation, you might not need to purchase insurance for the entire amount. For example, you could deduct any money you save and the money that goes into your retirement accounts.

Similarly, you’ll need to think about your spouse’s earnings. What percentage of the family expenses does their income cover? Would they be likely to increase their earnings after your death, or would they struggle to provide for the children on their own? By considering all these factors, you can make an accurate estimate of which part of your income needs to be replaced.

Considering the Timeline

A person in their late 20s or early 30s who has just had children needs to take out much more insurance than someone who is in their 50s and has teenage children. When making your calculations, consider whether some of your dependents might become independent in a few years.

If so, you can decrease the amount of insurance you need to purchase. You can also lower the total value of your policy if you are expecting to receive money from a pension in a few years.

Don’t Forget About Debt

Unfortunately, the day-to-day expenses are only one part of the equation. Many people have a significant amount of debt, and this could put a burden on their loved ones if they pass away. Add up all the money you owe and consider whether your relatives could pay this off on their own or not. Don’t forget to include your mortgage, car loan, personal loans, and credit card debt.

Consider Additional Factors Like Education

Sometimes, your current expenses don’t reflect your future obligations. For instance, many families want to provide their children with the best education possible, so they pay for private school or college. How would your spouse come up with the money for this should you pass away? Would your children need to take out student loans? If so, you should add expenses related to education to your total life insurance amount.

There might be other big bills on the horizon. Consider how often your spouse would need to purchase a new car, pay for home maintenance and repairs, visit a doctor’s office or hospital, or move to a different home. Since a family’s expenses don’t tend to remain static over time, all these expenses could fluctuate and should be factored in.

Consider End-of-Life Expenses 

When you pass away, your family will have to pay for your cremation and burial. What’s more, there could be hospital bills if you were ill or injured. Experts estimate that the cost of dying in the US is almost $20,000. This expense can come as a shock to the system, especially if your family isn’t prepared for it. Consider increasing your insurance amount or making provisions for your end-of-life care.

You could take out specific burial and funeral insurance or pre-plan your funeral at the mortuary. Either of these options can reduce the burden on your loved ones and allow them to grieve without worrying about their finances.

Some Rules of Thumb 

If you don’t want to spend several hours going through your income and expenses, you can use a rule of thumb. Many experts believe that families are adequately protected with an insurance policy that covers ten times their income. This could be a good starting point, but you should always consider your individual situation. For instance, you might need to add $100,000 for each child’s college tuition.

Additionally, someone in their 30s who hasn’t had the time to save any money might require more insurance because their expected lifetime earnings are still very high. On the other hand, someone aged 55 with significant retirement savings is only expected to earn money for another five to ten years, so they could choose a lower amount.

What Types of Insurance Are There?

There are various types of policies that fit the needs of different people. The most common ones are term insurance, which ends after a specific time period, and whole or universal insurance, which can cover you for the duration of your life. Additionally, there are also policies for specific events. For instance, you could take out burial or funeral insurance, which pays for your final expenses.

Similarly, you can get mortgage insurance to help your relatives pay off the mortgage, or you can get credit insurance to cover a specific kind of debt. If you’re not sure which policy is suitable for you, you should speak to an insurance advisor. They can analyze your situation and let you know what your options are.

Term Insurance

If you have a specific kind of debt your family wouldn’t be able to pay off without you or you would like to replace your income until retirement, term insurance is the best option. It is time-limited, so your policy usually ends after 5, 10, 15, 25, or 30 years.

Because this type of insurance doesn’t cover your whole lifespan, it is much cheaper than the other options. You’re likely to outlive your term insurance, so any money paid to the insurance company will be lost. Despite this, it can provide you and your loved ones with peace of mind.

Whole or Universal Insurance 

Both whole and universal life insurance can cover you for your entire lifetime. When you opt for the former, you build up a cash value over time, which will be paid out to your loved ones when you pass away. This is a great option for people who would like to use their insurance policy as a savings account for their family. However, it is more expensive than term insurance, and you usually have to keep it for the rest of your life to prevent putting your cash value at risk.

Universal insurance works in a similar way, but it generally offers fewer guarantees than whole insurance and is therefore cheaper. There are various policies available, so you should speak to your advisor if you’re interested in universal insurance.

Finding the Best Policy for Your Needs 

As you can see, anyone with dependents or a large amount of debt could benefit from an insurance policy that protects their loved one’s interests. But since there are so many different companies and types of policies, it’s hard to pick the best one. Working with a specialist could be the easiest way of finding insurance that suits your family’s individual needs.

You can get in touch with us at ISU Armac by filling out our contact form on the website. The more detail you provide during the initial email, the faster we can help you. Let us know why you are looking for insurance, whether you have dependents and debts, and what your monthly budget is. We will give you a call to discuss the options in your local area.

Almost everyone who has dependents such as a stay-at-home spouse and children should get life insurance. This type of policy protects the interests of your loved ones and helps them avoid financial trouble should you pass away prematurely. Often, it can be hard to find the best policy on your own, so working with an experienced insurance specialist is important. Contact us now at ISU Armac Insurance Services to discuss your situation with our experts and find the best policy for your family.

What Does Commercial General Liability Insurance Cover?

Because we live in a litigious society, small and medium-sized businesses have to protect their finances. If you or your employees work with customers, operate out of physical locations, advertise, or rent space to others, you should take out commercial general liability insurance. This can protect you if things go wrong and someone gets injured or their property gets damaged while they are interacting with you.

CGL insurance is extremely important for companies because it can cover the costs of a lawsuit, including the legal fees and any compensation your firm has to pay the claimant. Since some lawsuits result in a six or seven-figure fine, your insurance policy protects you from an event that could be detrimental to your firm’s finances. Let’s have a closer look at what is covered by CGL insurance and whether you should take out a policy.

What Does Commercial General Liability Insurance Cover? 

Almost every business transaction poses some level of risk. For example, a contractor could damage a part of the customer’s property, fall and injure a passer-by, or accidentally cause a fire in the customer’s house. Similarly, people visiting your in-person location might slip and fall because there was water on the floor and you or your employees failed to put up a warning sign.

If the customer decides to file a lawsuit and ask for compensation, you might have to pay hundreds of thousands of dollars. Sometimes being sued can ruin a business’s finances as well as its reputation. To prevent such problems, most company owners take out CGI insurance, which covers them in case they inadvertently harm one of their customers.

Bodily Injury

The most common issue faced by business owners is bodily injury. This occurs when a member of the public gets injured while doing business with you. The risk is highest if you have a physical business location since people could fall down because of a slippery surface, items left on the floor, or loose carpeting. What’s more, customers could get hit by an object that falls off a shelf or they might cut themselves on sharp surfaces.

But not only businesses with a shop or office are at risk. If you or your employees visit people in their own homes, you should also take out CGL insurance to prevent bodily injury claims because you could inadvertently hurt someone while working at the customer’s property. For example, a contractor’s ladder could fall and hit someone standing on the street below.

Product Liability

Anyone who manufactures and sells a product is at risk of a lawsuit. No matter how well you test the item before putting it on the market, there is a small chance that something goes wrong and a customer gets injured while using it. Alternatively, customers might argue that your product damaged their property. For this reason, you should always make sure your CGL insurance includes product liability.

Tenant Liability

While some small businesses own their building, many rent an office or shop space from another company. This is a good way of saving money upfront since you won’t have to purchase property before starting your business. But renting also comes with a certain amount of risk. If you damage the building while occupying it, you’ll have to pay the landlord.

Fortunately, most CGL insurance policies include tenant liability. This type of coverage protects you if you, your employees, or your customers damage the structure of the building or the fixtures and fittings.

Advertising Injury 

Many people who take out CGL insurance have a physical business location or interact with customers. But even if your business operates virtually and you don’t have regular contact with members of the public, you should consider carefully whether you are at risk. For instance, companies that advertise need to take out insurance because they could be sued for libel or slander.

Do I Need General Liability Insurance?

As you can see, most small or medium-sized businesses should purchase commercial general liability insurance. This includes people who perform their job at customers’ homes and everyone who welcomes members of the public in a physical location. Some firms that should take out a policy are shops of all kinds, construction businesses, law firms, doctor’s offices, and private educational institutions.

If you run a business that doesn’t involve meeting people face-to-face, for example, an online consultancy or shop, you should still consider taking out insurance. This is especially true if you rent office space or you advertise your services on a regular basis.

How Much Do I Need? 

The majority of businesses never have an issue with general liability. But if a customer files a lawsuit, you might have to pay them a six or seven-figure compensation. So, how much insurance should you take out? The answer is that it depends on your business’s financial situation and the risk level. Most small businesses choose a policy that covers them for $1 million per occurrence, but if you work in a dangerous industry, you might need more.

How Can I Find the Best Policy?

Often, it’s hard to choose between the various options, especially if you’ve never had to purchase insurance for a business before. To help you decide how much insurance you need and which policy is the best, you should contact an experienced insurance specialist. They can examine your business’s current situation and then let you know what your options are.

You can use the contact form on our website to get in touch with us at ISU Armac. When reaching out, remember that we can help you faster if you provide a lot of information. In your initial email, tell us what kind of business you run, how large it is, how and where you interact with customers, and what types of insurance you already have. Then, we can get back to you with some quotes and help you figure out which CGL insurance policy is right for you.

What Other Types of Insurance Might I Need? 

To fully protect your business, you’ll need several types of insurance. While commercial general liability insurance covers you if someone gets injured or their property gets damaged, it won’t help you if you face a lawsuit from your employees or your vehicle or property gets damaged.

Below, we’ll have a look at some of the other kinds of policies you might need. However, you should always speak to a professional before making a decision. Every business is different, and you may be overlooking something important such as cyber liability insurance or business interruption insurance.

Employment Practices Coverage 

All current and prospective employees have to be treated with dignity and respect. Employers aren’t allowed to discriminate due to race, gender, nationality, or disability. If a worker believes that they have been discriminated against or that you have wrongfully terminated their employment, they can file a lawsuit against you. Employment practices coverage can protect you against this and cover any legal fees associated with this type of claim.

Auto Insurance 

Many companies have one or more cars, and depending on their value, it can pay off to have them insured. For example, if you or your employees need your vehicle to get to your customers’ homes, drive clients to the airport, or make deliveries, your business can’t operate without a vehicle.

Thus, it can be worth protecting this asset. It’s important to remember that auto insurance can cover multiple types of vehicles such as cargo vans, delivery trucks, regular cars, and food trucks under the same policy.

Commercial Property Insurance 

Many businesses own assets such as property, furniture, machinery used in manufacturing, and electronics. If there is damage such as a fire, flood, or vandalism, the company might not be able to operate until repairs are complete or the equipment is replaced. To get your business up and running again as soon as possible and to prevent large financial losses, you should protect your assets with commercial property insurance.

Workers’ Compensation Insurance 

Even though most employers take care to protect their workers from harm, there are around 20,000 workplace injuries in the US every day. If one of your employees gets injured while performing their job, they might ask for compensation, especially if they require medical treatment, have to take time off work, or are suffering from a permanent disability due to the accident.

To protect your business’s interests and to make sure your employees can be compensated for any injuries, you should take out workers’ compensation insurance. Your insurance expert can let you know what your state’s requirements are and what level of coverage is best.

Almost every small or medium-sized business needs to take out commercial general liability insurance. Your policy can protect you in case someone gets injured or their property gets damaged while you are doing business with them. Because compensation for bodily harm can cost hundreds of thousands of dollars, it’s important for the future of your business that you take this precaution.

If you’ve never purchased insurance before, it can be hard to know which policy is suitable for you. Speaking with an experienced insurance specialist can be the easiest way of determining what kind of coverage you need and which company’s CGL insurance is most suitable for your business. Get in touch with us now at ISU Armac Insurance Services to discuss your situation with one of our experts.

What Is General Liability Insurance for?

General liability insurance is a type of insurance that can protect homeowners and business owners from risky situations that could levy thousands of dollars in unexpected costs. These scenarios include financial loss caused by property damage, bodily injury, slander, and more. This insurance shields you from the financial fallout caused by follow-on lawsuits and medical costs.

What Is General Liability Insurance For?

Accident Protection

Homeowners and businesses need general liability to protect themselves from potential lawsuits arising from misfortune. Accidents can happen on your property or site of business which could result in costly injuries and potentially expensive litigation fees. This is especially important if you own property that is especially valuable – such as a business or rental property – and can result in expensive payouts for any damages.

For example, let’s say you’re hosting an outdoor party. One of your guests falls down your stairs due to poor lighting conditions, and this results in injury. They have to be taken to the hospital as a result of their injuries. It also takes them weeks to recover. They decide to sue you because they believe you were partially responsible for their injuries. With general liability, you’re protected in both situations from the financial consequences of this lawsuit.

Medical Expense Coverage

In addition, this type of insurance can cover the medical costs created by the aforementioned accidents so you’re not forced to fork up the cash yourself. Regardless of whether you’re a homeowner or a business owner, general liability can assist you with the medical expenses of any injured parties. Medical bills rack up quickly and can be very costly nowadays.

For example, let’s circle back to the guest who slipped on the stairs and broke their leg. They’re immediately taken to the hospital after the accident where they have to undergo x-rays and medical procedures that end up costing thousands of dollars. Without general liability, you’d have to pay for this yourself.

Property Damage

General liability insurance can also help you cover the cost of expensive repairs or renovations which are necessary to fix the damage done to your property. This could be due to damages that were accidentally or intentionally done by homeowners, guests, or, in the case of a business owner, your employees. Whether the damages happened accidentally or intentionally, you might not have the funds to cover these unexpected expenses.

For example, let’s say an employee in your warehouse accidentally drives a forklift into the wall, creating a huge hole and damage to the surrounding warehouse equipment. It costs thousands of dollars to repair. This type of insurance can help you cover those expenses so you can hold onto your money for more important business expenses.

Theft or Vandalism

If you’re a business owner, it’s important to have this type of insurance to protect yourself from theft or vandalism. This type of insurance can help you cover the cost of any damages that are done to your property as a result of these crimes.

For example, if someone vandalizes your store by spray painting graffiti on the walls, general liability can help you pay for the cost of cleaning it up. Or, if someone breaks into your store and steals merchandise, this type of insurance can help you cover the cost of replacing what was stolen. Having this kind of insurance can give you peace of mind knowing that you’re protected in case something like this happens.

Act of Nature

No one can predict when a natural disaster will occur, but if you’re not prepared the consequences can be devastating. Natural disasters often covered by this type of insurance include floods, earthquakes, hurricanes, and tornadoes. This type of insurance can help cover the cost of repairing or rebuilding your home or business as a result of a natural disaster.

For example, let’s say a tornado hits your town and destroys your home. This kind of insurance can help you pay for the cost of repairing or rebuilding it. Or, if a hurricane causes flooding in your area and your business is flooded, this type of insurance can help you cover the cost of repairing the damage.

Reputational Harm

Reputation can be everything for a business, especially if you offer a service that depends on consumer trust. Reputational harm can be caused specifically by slander or a privacy violation.

Slander

Slander means making false statements about someone that harms their reputation. This can happen intentionally or accidentally. It might result from an act as simple as negative gossip that gets spread through word of mouth. If your company’s reputation has been sullied by an employee’s or contractor’s actions, general liability can help cover the cost of defamation lawsuits.

For example, your online reviews are very important and you depend on customer satisfaction to keep people coming back. An angry customer decides to write scathing reviews about your company when their service request is ignored. This could result in reputational harm that damages your good name and may even lose future business. General liability can help protect you against this type of lawsuit so it doesn’t hurt the financial stability of the business!

Privacy Violation

Privacy violation is another critical aspect of today’s information age. Privacy violations include the exposure of confidential information, exposure of trade secrets, accessing private computers or electronic accounts without proper authorization, or using any kind of device to install software that will allow someone access to your computer. Privacy violations occur more often than you think and they can have long-term, ill effects on the trust you portray to your customers.

For example, let’s say someone is illegally recording your conversations at work, then sharing them with others without your consent. This could damage the personal information of employees and customers alike, affecting their right to privacy. If you’re a small business owner who has been affected by this kind of reputational harm, general liability can help cover the cost of any lawsuits that arise as a result of these negative actions.

Expensive Home

If you’re the owner of an expensive home, it’s recommended to get yourself general liability insurance to provide additional coverage. This is because there can often be greater risks associated with a more upscale lifestyle. More frequent and larger parties, home improvement work, expensive amenities and equipment, etc. are all correlated with expensive homes. This can create riskier situations in which you’d need to protect yourself.

Copyright Infringement

This type of insurance can also assist with copyright infringement. Copyright infringement occurs when someone visits your website, downloads something you’ve made available for free use, and tries to sell it. This can be a very critical and expensive problem for a small business, specifically if you’re offering digital goods that can be easily duplicated.

For example, let’s say someone downloads your company’s entire digital catalog onto their computer. They then redistribute the files across many different online download/sharing sites hoping to make money off of your hard work. If you feel your intellectual property has been infringed upon, general liability can help protect you from both copyright lawsuits as well as any unforeseen expenses.

Web Hosting Issues

With this kind of insurance, you’ll also be able to cover your business against any losses that result from lawsuits related to web hosting issues. Web hosting is how your business stores files online to provide information to customers who are looking for it. Most businesses work with a hosting company. If something happens that causes your customers to lose information or have issues accessing it, your insurance can help cover the cost of the lawsuit against your hosting company.

If you’re a service-based or retail organization, your online presence is especially important since it’s likely that many people will be coming to your website for information. If anything were to go wrong with your hosting company and your customers are unable to access the site or their online purchases, you’d want insurance to protect yourself from potential customer lawsuits.

Advertising Injury

Last but not least, general liability insurance can help protect you against advertising injury. Advertising injury is when someone claims that they were injured by your advertisement or marketing material in some way.

For example, if an advertisement lacks important safety information regarding the use of a product, it could be considered “advertising injury.” Since there are so many different ways in which your advertisement could lead to such a claim, this kind of insurance can be the perfect way to get the compensation needed for any damages.

General liability is important for any business because it can help protect you from many risks. No matter what type of business you own, it’s important to know you’re protected in case something happens and you need to file a claim. You’ll have better peace of mind. Reach out to ISU Armac today to find out how we can safeguard you against the unexpected! We’re committed to providing you with the highest quality insurance at the lowest rates!

Why You Need Garage Liability

Small businesses are the backbone of the American economy, and automotive small businesses are no exception. These hardworking people keep America moving by repairing and servicing our cars. But even the smallest business can be at risk for liability claims, which is why garage insurance is so important.

Why You Need Garage Insurance

What Is Garage Liability Insurance?

Garage liability insurance is a type of umbrella insurance policy that covers the risks associated with automotive businesses and potential issues that impact third parties, like customers or visitors. It’s specifically targeted toward the automotive industry and understands the nuances of the work involved.

Dealerships, tow-truck operators, parking lots or parking garages operators, auto service stations, auto detailers, emissions testing centers, custom auto shops, and repair shops are candidates for this type of coverage.

Why Is Garage Liability Insurance Important?

Garage liability insurance can protect you from lawsuits arising from third-party property damage, third-party bodily injury, product liability, and more. In short, it protects you from any legal claims from third parties that might arise as a result of your automotive business activities.

What Does Garage Liability Insurance Cover?

There are multiple types of garage liability policies. Some policies cover more than others, so it’s important to read the fine print and ask questions before signing any contracts.

Product Liability

As an automotive small business, you’re at risk for product liability claims. These are legal claims that might arise as a result of the products you manufacture, distribute, and/or use. Product liability is a type of legal claim that arises when someone is injured or their property is damaged as a result of a defective product. The person making the claim can sue the manufacturer, distributor, or retailer of the product for damages.

Products can be defective in many ways, including design flaws, manufacturing defects, and inadequate warnings or instructions. In some cases, the defect may be obvious and easy to spot. If a third-party person is injured as a result of using your product, even if they were not the one who originally purchased it, you could still be liable for their injuries or damages. Make sure that your garage liability insurance policy gives you coverage in this type of situation.

Property Damage

Another risk for small businesses is damage to third-party personal property. An example would be if a customer’s cell phone was rendered useless after being hit by falling equipment. A garage insurance policy will provide coverage for these types of damages. Larger items like customer vehicles are not considered covered property damage by this type of insurance.

Bodily Injury

If a third party is injured on your business premises, you could be held liable for their medical expenses. Although worker’s compensation will cover your employees, it won’t cover any injuries sustained by visitors to your shop or customers that come into the storefront. If a customer falls and injures themselves while walking around your office or waiting room area, other types of insurance might not cover their medical costs.

In addition, if a tool or piece of equipment drops and breaks a visitor’s foot, they could potentially sue you for damages related to lost income and medical expenses. Without a garage liability policy, you would be responsible for paying these costs out-of-pocket. Fortunately, a garage liability policy will protect you from claims made by visitors or customers against you for these scenarios.

Business Interruption

If your business cannot operate as normal due to an injury, property damage, or product liability claim, your business may suffer significant losses. Depending on the type of insurance claim made against you, your garage liability policy will cover any lost income you receive as a result of not being able to operate your shop or retail store. This is often an overlooked benefit. Note that note all policies will include this, so it’s important to inquire about it.

Employee Dishonesty Coverage

If a dishonest employee steals something from or vandalizes a customer’s property while under your business’ care, you will be responsible for the damages. However, you may be indemnified against this by your garage insurance policy. This is another overlooked benefit. And, much like business interruption, this is not always included with all garage liability insurance policies, so it’s important to ask about it.

What Does Garage Liability Insurance Not Cover?

Garage liability insurance does not usually cover the policyholder’s tools, employees, building structure, personal property, or commercial property. Damages caused by natural events like hail or wind are also not covered. In addition, it won’t cover a customer’s car if it is in an accident or incurs damage while onsite at your business–only third-party personal property is covered. Finally, there are usually maximum limits set.

It’s important to note that garage liability insurance is not the same as “garage-keepers” insurance. Garage-keepers insurance protects other customer property, like vehicles, while they’re in your care. This can also include damage incurred while storing this kind of property or during test drives. This type of policy will cover general vandalism and theft of their property, too. If you own a business with several locations, a separate policy is required by location.

How Much Does Garage Liability Insurance Cost?

Like with most types of insurance policies, several factors determine how much you’ll have to pay for your coverage, including the location and size of your shop, what kinds of tools and equipment you use, and whether or not you have employees working under you. You will also likely need to provide proof that you are licensed by the state in which you do business. You can customize your policy to your needs and add on what makes sense.

If you’re running an automotive business, it would be wise to speak with an insurance agent or broker about securing coverage for your garage liability needs. They will help you find the right policy at the best price based on your location, size of the shop, equipment used, etc. In general, garage liability insurance is usually affordable, cheaper than other types of insurance that aren’t as well suited to your business, and worth the peace of mind.

How To Get Started With Purchasing Garage Liability Insurance

The best way to get started with a new policy is to shop online. Insurance companies will help you compare multiple types of policies with just a few clicks. You’ll be able to get an idea of what types of coverage your business needs and how much it will cost. You can even find someone knowledgeable about regional issues and challenges. Don’t pay for what you don’t need–talk to an expert to customize the best policy for you.

Why Do Small Automotive Businesses Need Garage Liability Insurance?

If you work out of an automotive shop you must have garage insurance. Even if your shop’s small, the risk of a serious injury to a customer or visitor justifies having coverage. Also, if you work out of a garage in the back of your business, you still need this because tools and equipment are used that could damage property or cause injuries. If these types of lawsuits were to arise, you’d be responsible for paying any damages.

To put it simply, you can’t afford not to have garage liability insurance. If you’re sued, the costs can be disastrous for your business. Medical bills are costly nowadays and they keep skyrocketing. Any sizeable lawsuit could tank the business you worked so hard to build. That’s why it’s so important to protect yourself with a good garage liability policy. They’re easy to set up and won’t break the bank.

What Are the Benefits of Having Garage Liability Insurance?

There are many benefits to having a garage liability policy. Of course, the main benefit is that it helps protect your business from significant losses related to bodily injury or property damage claims made against you by employees or customers/clients. If you don’t have garage liability insurance and are found liable for damages because of negligence, then all of the assets in your business will be at stake.

There are some lesser-known benefits as well. Many commercial garage liability policies can cover other types of small automotive businesses like body shops, tire dealerships, and repair shops for contractors’ vehicles. There are even some benefits that apply if you have employees working for you who help out in other aspects of your business besides servicing cars. Check with your provider to see what extra benefits you can reap!

Never put off until tomorrow what can be done today. If you’re running a small automotive shop, you don’t want to be put off by an unexpected lawsuit. Garage liability insurance is one of the most affordable forms of insurance and there’s no downside. Protect yourself by calling Armac Insurance Services today. We pride ourselves on our long-standing relationships with customers and would love to help you figure out your appropriate insurance needs.