Author: ISU-ARMAC

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.

Directors And Officers Liability Insurance

As businesses grow, so too do their risks. Large organizations find themselves under increasing scrutiny and regulations, which increases your potential liabilities. Although you likely have a great deal of trust in your senior management, mistakes can happen at any level. When a serious problem arises due to the actions of your top brass, directors and officers liability insurance (D&O insurance) can help you recover damages. Here’s how it works.

What Is Directors and Officers Liability Insurance?

First of all, there is more than one kind of D&O insurance. In general, D&O insurance can be broken down into two types. The first is a form of protection for directors and officers. The latter protects the company against damages caused by directors and officers. Both kinds can be valuable to businesses of every size. Consider some situations where you could benefit from having directors and officers liability insurance in your portfolio:

Protection for Directors and Officers

This form of D&O insurance protects named directors and officers from lawsuits that may arise due to their actions in the company. For instance, shareholders in a publicly-traded company could file suit against a specific director or officer. They may allege lost profits due to certain decisions, and their suit would seek compensation for their damages. In these cases, D&O insurance would shield the individual named in the suit from damages, while plaintiffs could still be paid.

Even if the company chooses to grant indemnification to the director named in the suit, your D&O insurance can still cover legal expenses and the damages incurred. Bear in mind, however, that these insurance policies rarely cover illegal activity. If a senior executive embezzles money or defrauds clients, your insurance provider may be exempt from providing any benefits.

Protection for Your Business

Entity coverage, also known as “Side C” coverage in D&O insurance, protects your company from wrongful acts committed by directors or officers. This form of coverage can shield your company’s assets from lawsuits related to misconduct by officers. For instance, if a marketing officer produced an insensitive campaign that led to lawsuits against your company, you could activate your D&O insurance to protect the business as a whole.

While your business might already have some other forms of insurance that protect assets directly, these policies usually do not include any protection from lawsuits. Instead, they focus on protection from physical hazards. That’s why it’s important to round out your policy selection with D&O insurance. Your D&O policy can cover expensive legal fees and prevent losses as you defend the business.

Is D&O Insurance Right for My Company?

D&O insurance falls under the umbrella of management liability insurance. The more senior managers you have, the more likely you are to have a problem with one of them. Therefore, it makes sense for large companies to invest in a D&O insurance policy. However, small businesses can also find themselves in the crosshairs of a lawsuit. Considering that SMBs often lack the capital to deal with an expensive lawsuit, D&O insurance could be useful for them too.

Contact ISU Armac Insurance Services to learn more about D&O insurance and see whether it’s a good fit for your company.

11 Signs You Need General Liability Insurance

Every business needs general liability protections. This is obvious for most companies, but this type of insurance is often misunderstood and underappreciated until it’s too late. Without general liability coverage, a person could sue you if they get hurt at your place of business, without having to prove that you did anything wrong—which means they’d win by default. So what happens when you don’t have general liability coverage? Here are 10 signs that you need general liability insurance.

11 Signs You Need General Liability Insurance

1. You Don’t Have Any Now     

If you’re a business owner, it’s in your best interest to have the necessary protections. This type of insurance protects you from lawsuits if someone gets hurt while on your business site. Even if you’re not at fault, you could still be sued if someone gets injured. If you don’t have this insurance now, you could end up in a lot of trouble that could cost you serious money. That’s why it’s so important to be protected under general liability.

Here are the types of situations it can protect you against:

  • Bodily injury that occurs on your place of business
  • Property damage caused by your business
  • Reputational harm resulting from slander or privacy violation
  • Medical costs caused by someone harmed while visiting your place of business
  • Damage caused by an act of nature

2. Your Current Insurance Is Overdue or Cancelled

Although not required by law, this type of insurance is essential for any business, whether you’re just starting out or you’ve been in business for years. It protects you from so many situations and can help your business stay afloat in the case of lawsuits. If you don’t currently have general liability insurance, or if your policy is overdue or canceled, it’s time to get it. Most importantly, it can help you avoid financial disaster.

Remember, this type of insurance can assist financially with the following situations:

  • Medical expenses caused by someone harmed while visiting your place of business
  • Repair costs to a customer’s home caused by one of your employees
  • Lawsuit costs to pay for your defense
  • Lawsuit costs related to judgments and settlements

3. Your Business Has Cash Flow Issues

Many businesses struggle with cash flow. This means you’re unable to keep up with your payments. If you’re having trouble paying your bills, it may be time to protect yourself. You can be sued for not paying your bills in a timely manner or for not paying them at all. It doesn’t matter what the circumstances might be for this scenario.

As this insurance protects you primarily from 3rd party lawsuits, it can insure you against financial hardship in case you’re unable to keep up with your financial commitments. It can also help cover the costs of any legal fees and damages that you may have to pay as a result of a financial lawsuit. This can be a lifesaver for businesses that are struggling financially by providing that necessary peace of mind.

4. You Work in a Hazardous Environment

Working in a hazardous environment is dangerous and can lead to serious injury. If you’re not sure if your workplace is hazardous, here are some signals to look out for:

  • You work with dangerous chemicals
  • You work with dangerous equipment
  • You work in a high-risk industry

If your workplace meets any of these criteria, it’s important to have the necessary protections. If you’re in the construction industry, it’s especially important to have this type of insurance. Construction is a high-risk industry, and accidents can happen easily. Without general liability coverage, you could be responsible for paying for any damages that occur as a result of an accident on your job site.

5. You Operate Heavy Equipment

Operating heavy equipment can be dangerous if you’re not properly trained. And even if you are properly trained, there are still risks associated with using this type of equipment. That’s why it’s important to have liability protection for this scenario. This type of insurance will protect you from any potential lawsuits that may come up as a result of accidents incurred onsite while operating heavy equipment.

This type of insurance can also protect you from lawsuits if someone is injured on the job at your company site through some other means. Again, it doesn’t matter who is liable or the reason for the circumstance. This type of insurance is used against 3rd party lawsuits, which can come up for many reasons related to operating heavy equipment. If this is a requirement of your business, it’s time to protect yourself.

6. Safety Training is Not Provided

The safety of your employees needs to be top of mind. You must ensure your employees are properly trained in all required safety procedures. If they’re not, you could be liable for any injuries that they may sustain while on the job, regardless of who’s at fault.

It’s important to have a safety training program in place that covers all the hazards your employees may face. And your safety training program should include emergency procedures so your employees know what to do in case of an emergency. Make sure you’re providing your employees with adequate safety training. This will help keep them safe and protect you from lawsuits if they’re injured on the job.

7. You’re Not Current on the Laws of Municipality

When you’re running a business, it’s important that you’re up to date on the laws and regulations of your municipality. Municipal law is any law specific to a specific county or city (“municipality”). It also encompasses the government bodies within those cities or counties. A municipality issue could potentially include everything from run-ins with the police, zoning restrictions, and property taxes.

If you’re not current on your local laws, you could end up getting into trouble. This type of insurance can help protect you from these types of lawsuits. Make sure you’re familiar with the laws of your municipality and that your business is up to date on them. This will help ensure that you stay out of trouble and avoid any costly and unnecessary legal fees.

8. You Provide Services to the Public

If you provide services to the public, you’ll need to protect yourself against potential liability against them, regardless of whether they’re active customers of your products and services. The general public may not be aware of your normal business policies and procedures. If you don’t have this insurance and you’re sued, you could end up losing a lot of money. This can help protect you from costly lawsuits and ensure that your business remains operational no matter what.

9. Public Access Is Granted Outside Normal Business Hours

This type of insurance also protects you when the public is granted access to your place of business outside of normal business hours. This means that people who are not associated with the company are able to enter the building and/or access your resources. There are a couple of reasons why an insurance policy is necessary for these conditions. One is to ensure the company can operate in a secure environment. A second reason is to protect the company from possible lawsuits.

By having public access outside of normal business hours, your company can reduce its risk of being sued. Remember that you’re planning for unplanned situations. The general public might be exposed to potentially risky conditions such as broken staircases, uncovered holes in floors, a slippery floor under rainy conditions, and other hazards where people could get hurt. If any of these scenarios are realistic, you should purchase this kind of protection.

10. You’re About to Enter a Contractual Agreement

When you’re about to enter into a contractual agreement, it’s important to have the necessary protections in place. This provides insurance against the unknown. If something goes wrong related to the contract, this type of insurance will help to protect your business financially against the uncertain. In addition, some customers require that this insurance is in place before moving together in a partnership.

11. Concerns Have Been Raised or Someone Has Already Sued You

One of the most obvious signs that you need this insurance is if someone has already sued you. This can happen for several reasons, but usually, it’s because someone was injured on your property or as a result of your business activities.

If you don’t have this type of insurance and you’re sued, you could end up losing your financial security—and in some cases, you could even lose your business. If concerns have been raised against your business, that’s another reason to consider purchasing additional protection.

Not sure if you need general liability coverage? Keep these protections in mind as you grow your business. As general liability concerns change, this type of insurance will be there to protect you—and it’s worth every penny! Contact ISU Armac today and we’ll help you stay protected. Our goal is to create valued relationships with each of our clients for years to come. We’d love the chance to earn your business!

10 Tips for Small Businesses Looking for Commercial Liability Insurance

Small businesses are the backbone of the United States economy. According to recent studies, small businesses account for more than half of all private-sector jobs and over 60% of net new jobs since 2000. Despite their importance, many small businesses lack essential protections like commercial liability insurance, also known as “business insurance”. Keep reading to learn our top tips on how to find and secure the right business insurance for your organization!

10 Tips for Small Businesses Seeking Commercial Liability Insurance

1. Understand What This Type of Insurance Is

Commercial general liability insurance is a form of insurance that covers bodily harm, personal injury, and property damage caused by the company’s operations, goods, or injuries that take place on its premises or wherever the company’s services are performed. It’s comprehensive. It does not, however, cover all the potential risks that a company might face. This type of insurance policy is essential for small businesses, as it can help protect you from costly legal fees and damages.

Not having it could be the difference between staying in business and being forced to close your doors. Some examples when you might need this type of liability protection include: 

  1. A customer trips on damaged flooring onsite at your business and is injured
  2. Your employee accidentally leaves the water running in your customer’s home, causing damage
  3. A lawsuit is filed against your business regarding a misleading advertisement

2. Understand What Business Insurance Covers

When shopping for commercial liability insurance, it’s important to understand what is and isn’t covered by the policy. Business insurance generally provides coverage for any legal expenses that may arise due to an accident or injury that occurs in the course of your business. Business insurance provides protections that arise from:

  • Bodily injury
  • Property damage
  • False arrest
  • Copyright infringement
  • Products-completed operations hazard
  • Advertising and personal injury liability
  • Medical payments
  • Wrongful eviction

3. Understand What Business Insurance Doesn’t Cover

It may seem like business insurance is pretty comprehensive. However, several situations are excluded from its protections. Some common exclusions include damages arising from:

  • Property damage
  • Injury or illness of employees
  • Sexual harassment or discrimination
  • Libel, slander, or defamation of character
  • Oral contract promises
  • Personal auto policies
  • Representations
  • Unfair competition
  • Warranty work

4. Compare Quotes From Different Insurers

When shopping for commercial liability insurance, it’s important to compare quotes from different insurers. This will help you find the best coverage at the best price. To get started, gather quotes from several insurers and compare them side-by-side. Be sure to look at the coverage offered by each policy and the price tag.

In addition, it’s important to understand that the way a policy is put together may be different for different insurance companies. You’ll want to work closely with your insurer to ensure you’re comprehensively covered in all situations that make sense for your industry. You’ll also want to ensure you’re not paying for coverage you don’t need.

5. Make Sure You’re Fully Covered

This type of insurance can be customized to your needs, therefore, it’s possible to miss certain types of important coverages if you’re not careful. There are a few things you can do to make sure you’re getting the most out of your policy. First, review your policy regularly and update it as needed. Also, make sure you have adequate coverage for both your business property and your employees. Talk to an insurance agent about adding additional coverage, if needed.

Also, make sure your policy includes coverage for all of your business activities. And, make sure that you accurately list all entities and locations. Ask about additional endorsements that can help offset some unexpected expenses, such as auto breakdown, medical payments, false arrest/imprisonment, product recall costs, employment practices, liquor liability, and other situations. Review your claims history to ensure you are getting the best rates possible. Finally, keep in touch with your agent so to address questions as they arise.

6. Ask About Discounts

When looking for commercial liability insurance, it’s important to ask about discounts for bundling your policies with one insurer. This can save you money and make the process of obtaining insurance simpler. Bundling your policies with one insurer can also have other benefits. For example, if you have a property insurance policy as well as a liability policy, you may be able to get a discount on your property insurance.

It’s also important to ask about other discounts that may be available to you. For example, many insurers offer discounts for good credit or for being a member of a professional organization. By asking about discounts for bundling your policies and for other good behaviors, you can ensure that you’re getting the best deal possible.

7. Read the Fine Print

It’s critical to read the fine print carefully, as some policies may have specific coverages or limits that apply to different situations. Make sure you understand what exactly is being covered and what’s not. And be sure to ask your insurance agent any questions you have about the policy. Once you’ve chosen a policy, be sure to read the terms and conditions thoroughly. Ask about exclusions, deductibles, and co-insurance. These terms will vary depending on the insurer, so be thorough.

Some policies may require a specific deductible for property damage, while others don’t. Your policy may be limited to damages that arise from accidents that occur on your premises or the locations where the business conducts its operations. In addition, business insurance should have a provision for additional insureds. Additional insureds may be covered by your policy in certain circumstances – like employees and suppliers. You can add additional insureds either by endorsement or as part of a separate agreement.

8. Purchasing Business Insurance

Commercial liability insurance is available as a stand-alone policy, as part of a Business Owners Policy, or as part of a Commercial Package Policy. Talk to your insurer about the type and amount of coverage you require. If your general liability policy, Business Owners Policy, or Commerical Package Policy does not create enough coverage, consider purchasing a commercial excess (umbrella) policy to safeguard yourself against financial loss. See the next section for more information.

9. Purchase Additional Coverage If Warranted

Finally, you might want to consider taking on additional insurance coverage from other types of policies. You may also consider purchasing business liability insurance before opening, expanding, or remodeling your business. For instance, take advantage of an umbrella policy if needed to protect you from catastrophic events or financial losses.

Errors and Omissions Insurance

This type of insurance is another professional liability insurance that can help protect you from financial losses such as lawsuits related to contracts, clients, and intellectual property claims. It specifically protects against claims of negligence or inadequate work arising from a contract. This type of policy usually covers the legal costs associated with the claim, which can rack up quickly and be quite costly. Even if a baseless claim is made, this can protect your organization.

Directors and Officers Liability Insurance

Directors and officers liability insurance protect directors and executives of for-profit or not-for-profit businesses from claims resulting from alleged or actual wrongful activities they may have committed in their jobs. The policy covers any real or claimed error, misstatement, omission, misleading statement, or breach of duty, as well as some policies’ inclusion of employees.

Pollution Liability

Business, commercial, and agricultural property owners, managers, and developers may benefit from this form of coverage since it provides them with a wide selection of pollution liability protection for both gradual as well as sudden and accidental first-party and third-party environmental liabilities. It also protects assets from unanticipated environmental risks that might have a big financial impact. Furthermore, it protects against unknown pollution hazards that may result in bodily injury, property damage, or pollution cleanup expenses.

Liquor Liability

Liquor liability insurance protects your business from claims filed by customers who become intoxicated and hurt themselves or others as a result of their intoxication. If your company sells, serves, or enables the purchase or use of alcohol, it is likely to require liquor liability coverage. This coverage can be purchased as an add-on to a commercial liability policy or as a stand-alone product.

10. Choosing the Appropriate Deductible

Due to cost savings, it might be attractive to go for the lowest deductible. However, don’t fall into this trap. The lowest deductible does not necessarily offer the best cost savings strategy. Premiums will rise with lower deductibles, so the best approach is to choose the highest deductible that your organization can absorb.

Taking the time to find the right business insurance policy is well worth it in the long run. Protect your business and yourself with the right coverage. Reach out to the experts at ISU Armac today and you’ll be glad you did! We’re dedicated to our customers and believe in creating long-lasting relationships. Our staff can help create a tailored insurance plan for your budget and we’ll work with you to ensure you have all the necessary protections in place!

Why Is Umbrella Insurance Worth Getting?

Do you have general liability insurance? You might think that with your current insurance policy, you’re all set. But if you’re hit with a claim that’s more expensive than you expected, you could find yourself and your business floundering. For cases like these, you’ll want to consider having commercial umbrella insurance.

Why Is Commercial Umbrella Insurance Worth Getting?

If you own a business, it’s important to make sure that you’re keeping it and yourself safe. Having the right insurance will do that. However, not all insurance policies will cover every potential liability. You should always make sure to read through your policy and understand what you are and are not covered for.

You should also consider purchasing commercial umbrella insurance, which is a great way to keep yourself and your business safe. Umbrella insurance will cover additional potential costs that your current insurance policy may not. It can also take over any costs if your other liability coverage limits have already been fully reached.

What Is Umbrella Insurance?

This type of insurance will add another layer of coverage that you can use when your other coverage has reached its limits. While you may not expect to need to cover anything beyond these policies, the unexpected can still happen.

For example, if a client comes to your workplace and slips and falls, then you could be asked to pay a large sum of money. Your existing policy may only cover a portion of that policy. At that point, your umbrella insurance would kick in, providing coverage for the rest of the payments required.

What Does Umbrella Insurance Cover?

Umbrella insurance will cover the same types of costs that business liability insurance covers. It will also cover and medical or legal fees that you might be responsible for. When you get umbrella insurance, you’ll receive coverage for the following areas.

Product Liability

You might make a product that you’re proud of, but sometimes things go wrong. It’s important to take product liability seriously, especially since as a business you are responsible for the products you import, produce, or manufacture.

This type of insurance will cover you in case your products cause injury to a customer or damage their property. Umbrella insurance will take over the costs in case your product liability insurance coverage runs out.

Bodily Injury Liability

Even businesses that run the tightest of ships can have accidents. If there has been an accident and your business operations are what caused it, then anyone who receives a bodily injury from this accident might seek out compensation that you could be ordered to pay.

General business liability coverage will help you cover the costs of court fees and the compensation that you owe the other party. But if your current policy doesn’t provide enough to cover the full cost of damages, then you’ll be glad you got umbrella insurance.

Advertising Injury

Things like slander and libel are taken very seriously in the courts, and you could find yourself in some trouble if you’re accused of doing these things, even unwittingly. If you’re accused of false advertising, libel, or slander, then you could find yourself facing some hefty fees.

When you get general liability insurance, you will be covered for these fines. You’re also going to want to think about purchasing umbrella insurance to cover you in case you and your business run into a claim that your general liability insurance policy isn’t able to fully cover.

Tenant Liability

If your business requires that you rent out a space, then you’re responsible for making sure that that space is kept clean and in good condition. If you don’t do this, or something goes wrong that causes property damage, then you are liable for these damages and for covering any costs the damage might incur.

Again, having general liability coverage will help you ensure that these costs are covered if they ever arise. But if you’re hit with a claim that’s bigger than you expected, then an umbrella insurance policy will make sure that you’re still covered.

Who Should Get Umbrella Insurance?

Any and all businesses should consider getting umbrella insurance. While you may not believe your business can be hit with particularly heavy claims or fines, there’s always the possibility that it could happen.

With that said, there are some types of businesses that should have umbrella insurance because they are at higher risk for large claims than other businesses. If you and your business are in any of the following categories, it’s important that you consider getting umbrella insurance.

You Work on Other People’s Property

As soon as you work or perform tasks on other people’s property, you are opening yourself up to greater risk. Property damage can result in expensive claims, so it’s important to keep yourself and your business safe if they ever arise.

One example of this is if you are a construction worker and you are helping with a renovation on someone’s personal property. Mistakes and accidents happen, and if your operations cause damage to the property owner’s personal property, you could be hit with a big lawsuit. Umbrella insurance will offer you the protection you need.

Your Commercial Property Is Open to the Public

Allowing the public to enter your commercial property opens you up to the risk of someone getting hurt. And if someone gets hurt on your property and it’s ruled that you are responsible, you might find yourself facing millions of dollars in fines.

For example, you might own a store, and someone slips and falls on a patch of wet floor where there is no sign. In this case, it could be ruled that your business is responsible for covering any medical expenses or missed wages that that person experienced because of the accident. Umbrella insurance will help cover these costs.

You Are Contractually Obligated to Have Umbrella Insurance

It’s a good idea for all businesses to at the very least consider getting umbrella insurance. But there are plenty of cases where having this type of insurance will be required.

Many government contracts, for example, will require that you and your business have umbrella insurance. It’s very common for government contracts especially to have these types of requirements. However, any customer might require that you have umbrella insurance since it protects both you and them in the event that something happens.

Your Business Is at High Risk of a Lawsuit

While some businesses may be at higher risk of lawsuits than others, the reality is that all businesses carry significant risks. So, essentially, if you own a business, you should have umbrella insurance to protect yourself.

Businesses like sole proprietorships, home-based businesses, and businesses with no employees, subcontractors, or direct contact with clients may be able to get away without it. That said, it’s still something you’re going to want to consider. Even these types of businesses can get hit with massive claims that their general insurance policy might not cover.

Other Types of Insurance to Consider

Getting umbrella insurance will do a lot to protect yourself and your company in the case a large claim is thrown at you. But there may be some other types of insurance you’d like to consider purchasing as well.

Along with general liability insurance and umbrella insurance, consider adding any of these types of insurance to your policy.

Business Auto Insurance

If your business requires that you drive a vehicle, then this is one type of insurance that you are going to want to purchase. Driving any type of vehicle puts you and your business at risk. Whether you’re driving a delivery van or a small forklift in a warehouse, auto insurance is crucial for keeping yourself and your business safe.

When you get auto insurance, you’ll be covered for any damages or liability if you’ve been in an accident. This kind of insurance will cover any personal injury as well as property damage that may have been incurred.

Cyber Liability Insurance

These days, the internet is an important part of any business. But being online can pose some surprising risks. You could experience a cyber attack, which will seriously affect your business.

Getting cyber liability insurance will help cover any costs associated with data breaches that your business experiences.

Office Risk Insurance

There are all kinds of things that can happen in an office that might cause harm to another party. For instance, one of your employees could get hurt in your office, or a customer or client visiting could injure themselves.

There are also a lot of assets in your office that might be worth more than you anticipated. Getting office risk insurance will help keep you safe if these assets are damaged or if other property or people are harmed in your office.

All businesses should have insurance, but your general liability insurance might not cover you for every possibility. In these cases, you’ll want to make sure that you have commercial umbrella insurance. Get in touch with us at Armac Insurance Services to learn more. 

What Does Liability Insurance Actually Cover?

Owning and operating a business can come with unforeseen expenses, such as liability claims. Many businesses are unprepared to cover these costs, even though liability claims are unfortunately quite common and usually result from normal business operations. Having liability insurance coverage can keep your business from having to pay these costs out of pocket. Read on to find out what types of claims liability insurance can protect you from.

What Does Liability Insurance Actually Cover?

Sensible risk management strategies are a must for business owners, as it’s essential to keep your business protected from unnecessary expenses. Though there are many perils associated with business ownership, the number one way to keep your business protected is to ensure your business is properly insured. When you’re unexpectedly hit with a liability claim, insurance can be the difference between your business coming out on top or facing financial ruin.

Liability coverage is an excellent ally in keeping your business protected because its coverage extends to multiple facets of running a business. Claims related to injuries on your premises, damage to your client’s property, or even allegations of copyright infringement and false advertising are all covered under this type of insurance – and these are just a few examples! Liability is the type of insurance you need in your corner for mitigating all the risks of business ownership.

What Types of Claims are Covered by This Policy?

There are many situations in which your business could be held responsible and expected to pay for. Proper insurance coverage prevents you from paying these various costs out-of-pocket. This type of insurance includes coverage for expenses, such as legal and medical expenses, as well as compensatory and punitive damages related to the following types of claims:

Bodily Injury 

Bodily injury coverage provides protection against losses for bodily injury to others (including clients, customers, or employees) that may have been caused by your operations. Whether you’re found liable for bodily injury due to non-professional negligent acts or due to your premises or business operations, this type of insurance can cover medical expenses and legal expenses associated with this type of claim.

Bodily injury includes physical and/or mental injuries to a client, customer, or employee that may have been caused by your operations, including emotional distress. Common bodily injury lawsuits include customer slip and falls (ex: a customer slips on loose or wet flooring while visiting your business and is injured), and other tortious acts that may cause a claimant to suffer loss or harm, such as intentional infliction of emotional distress, and negligence.

Property Damage

Property damage coverage, like bodily injury coverage, provides protection against losses from the legal liability of your business for property damage occurring due either to non-professional negligent acts or arising out of the premises or business operations. In the event that your business causes property damage, including employee accidents, this insurance will cover the costs of the damage.

For example, if your employee accidentally breaks a client’s windows while working at their home, the cost of the damages will be covered by your insurance. Another example would be if your employee leaves the water running at a client’s home and causes substantial damage; without insurance, your company would be expected to pay for the costs of this damage. However, having insurance means your employee’s mistakes won’t cost you any extra coin.

Product Liability

Product liability is essential coverage for manufacturers and any businesses that sell goods. While we know customer safety is always a priority, sometimes bodily injury or property damage can occur due to an unfortunate product malfunction. Product liability will cover the costs of any claims related to bodily injury or property damage caused by a product you sell or manufacture.

Tenant Liability

Tenant liability protects your business from damage to property that you lease or occupy for business purposes. This protects you against the day-to-day risks of running a business within a rented space, including lawsuits and payments of claims related to third-party bodily injury or property damage. It’s common for landlords to require proof of insurance before renting out a space, so having proper coverage is an asset when looking for a new home for your business.

Personal Injury, Advertising Injury, and Reputational Harm

Liability coverage keeps you protected in the event of personal and/or advertising injury claims made against your business. You’d be surprised how easy it is to find yourself facing an advertising injury claim; saying something untoward about a competitor to the wrong audience, for example, could result in being hit with a defamation lawsuit. Similarly, making grandiose claims in an ad campaign could see you facing a class-action lawsuit for allegations of false advertising.

Personal and advertising injury liability protects your business against a range of offenses, such as:

  • Libel
  • False advertising
  • Slander
  • False arrest
  • Defamation
  • Malicious prosecution
  • Wrongful eviction
  • Wrongful entry
  • Invasion of privacy

Copyright Infringement

In addition to advertising injury claims, this type of insurance protects you from lawsuits alleging the unlawful use of another’s advertising idea or copyright. Copyright infringement occurs when someone else’s work is used on your product or in your business’ ads without the express permission of the copyright holder. If your business is found infringing on another’s copyright, your liability coverage will cover the cost of damages and legal fees.

Other Costs Covered by a General Liability Policy

In addition to these specific types of claims, a general liability policy will help to cover the administrative costs associated with handling all the covered claims described above. The amount of coverage for these costs will vary, as they depend on the limits of your specific policy. Additionally, this type of policy will cover smaller medical claims that do not require litigation and a variety of costs related to legal defense and the process of litigation.

Medical Payments

A general liability policy offers limited coverage for medical payments, including payments for injuries sustained by clients or customers that were caused by an accident taking place on the premises of your business or when exposed to your business operations. Medical payments coverage does not require legal action to be accessed, meaning your business is able to settle smaller medical claims promptly and without litigation.

This type of policy will cover all necessary and reasonable medical expenses accrued by a person injured or killed in an accident that takes place on your business premises or arises from your business operations. This includes surgical costs, ambulance fees, hospital fees, professional nursing expenses, and funeral expenses. Since medical payment coverage is provided on a no-fault basis, there is no defense or legal liability coverage.

Legal Defense Costs

Liability insurance will cover all legal fees, including court costs, legal defense, judgments, and settlements for the above types of claims. On your behalf, your insurance will pay all damages if you are found liable (up to the coverage limits of your policy). Your policy will also cover the costs associated with administrative work and legal secretaries.

Complementary Policies

While this type of insurance covers a wide range of expenses, there are certain additional policies you’ll need to purchase to ensure your business has complete coverage. Workers compensation, employment practices liability, liquor liability, pollution liability, and professional liability may be beneficial complementary policies for you. Talking to an experienced insurance professional can help you to determine which endorsements are right for your business.

What Type of Businesses Need General Liability Coverage?

No matter the size of your business, or your industry, you can benefit from general liability coverage. This type of insurance is especially beneficial for businesses with locations that are accessible to the general public, as well as businesses that:

  • Work directly with customers and/or clients
  • Manage client-owned property and/or assets
  • Rent or own commercial space

Independent contractors and entrepreneurs can also benefit from this type of insurance, as they can also be held liable for the same injuries and damages that general liability policies cover. Liability claims can be extra difficult for independent contractors and entrepreneurs because they’re solely responsible for their finances. Choosing not to properly insure a sole proprietorship can, unfortunately, lead to significant financial hardship and even bankruptcy.

What You Risk When You Remain Uninsured

If someone files a claim against your business, the cost of legal defense and court fees can add up quickly. With the additional costs of administrative work, legal secretaries, and any associated costs from judgments or settlements, your business can be stuck footing an extremely expensive bill. We’re talking hundreds of thousands of dollars! A general liability insurance policy is essential for helping your business cover these costs.

General liability insurance is the most important insurance coverage for your business to have. A lawsuit can have an immense negative impact on a business; without proper insurance, facing a claim of any kind can place a tremendous financial strain on your company’s bottom line. Because liability suits happen so frequently, you need a good insurance plan in your corner. Visit ISU Armac today to pair your business with the best agency for all your insurance needs.

Can You Get General Liability Insurance as an Individual?

As someone running a business, whether you have employees or you work alone as an individual, protecting yourself and your work is the most important thing to do. At ISU Armac, our insurance options, including general liability insurance, will help keep you and your business safe.

Can You Get General Liability Insurance as an Individual?

If you are looking for ways to protect yourself and your business, then general liability insurance is something that you’re going to want to consider. Businesses can benefit greatly from this type of insurance, especially if something unexpected happens in your workplace.

This type of insurance is an integral part of protecting yourself, your clients, and your business. But while it’s important to have if you run a business with employees, you might be wondering if it’s something that could be useful if you’re an individual or an independent contractor? Can it still benefit you? The answer is yes, and there are plenty of ways it can do that. Let’s get to know a little bit more about this kind of insurance, and the ways it can protect you.

What Is General Liability Insurance?

When you have your own business, whether it’s something that requires employees or something that you’re running on your own, there are lots of things that can go wrong. The good news is that many of these things you can plan for. The bad news is that sometimes life has unexpected things in store for you.

The fact of the matter is that you can’t plan for everything! Accidents happen, and these accidents could result in a serious strain on your business. General liability insurance, or GLI, is an essential way to keep your safe in the event that an accident happens.

What Does GLI Cover?

When you get GLI, you and your business will be covered for a variety of issues. These issues can also vary from state to state. Broadly speaking, there are a few issues that GLI will provide coverage for.

Product Liability.

If you sell or manufacture a product that unintentionally harms someone or causes property damage, then the person who purchased your product may demand compensation for these damages.

If something like this happens, GLI will provide you with product liability insurance. This will help you cover the costs of damages and other legal expenses if something goes wrong with your product.

Bodily Injury

Bodily injury can come in many forms and can be caused by a wide range of things. If something related to your business causes someone else bodily injury and you and your business are at fault, then the injured person can seek out compensation.

If a customer or client has been injured in this manner, then GLI will help you cover any costs associated with fixing the issue.

Tenant Liability 

Your business may require that you operate out of a facility separate from your home. In these cases, you may need to rent out space where your operating procedures can take place. While you may do your best to keep things clean and running smoothly, there are some things that you may not be able to account for.

If any part of your business results in damages to the space you’re renting out, you’ll be responsible for the damages. GLI will help you cover the cost of these damages.

Advertising Injury

This may be a surprising possibility, but injury or damages resulting from advertising are very real possibilities and something you need to protect yourself from. Some examples of injury caused by advertising include libel, slander, piracy, defamation, and violation of privacy.

If your advertising causes harm to another person or business, then that could put you at risk for some costly legal fees. If you are accused of anything libel, slander, or false advertising, then GLI can help you cover the fees needed to combat this.

How Does GLI Help Individuals?

Regardless of whether you have a multi-employee business or you are a freelancer working for yourself, running any kind of business comes with a certain level of risk. As an independent worker or contractor, you have the same level of risk that anyone else running a small business has. If something happens that results in injury or damages, then you’ll be responsible for paying out of pocket if you’re not covered by insurance. That can put a serious dent in your finances.

That said, different individuals performing different jobs will have varying levels of risk. The same is true for any business owner. For example, if you are an independent contractor that works as a carpenter, then you would have different risks than someone who works as a hairstylist. However, GLI would cover the risks of both types of work.

How Much Will GLI Cost Me As an Individual?

When it comes to getting any type of insurance, one of the biggest questions and concerns is how much it’s going to cost you. Just like any type of insurance, the amount that you pay for your GLI is going to depend on several factors. Your GLI will cost you a different amount than someone else’s.

Some of the things that will contribute to how much you pay for your insurance include the following factors:
•    The number of years you’ve been in business
•    The type of business you run
•    Your business experience
•    Your annual revenue
•    Your history or claims

What Business Should Have GLI?

It doesn’t matter whether your business requires multiple employees to run or if you work for yourself. If you run a business, regardless of its size, then you should have GLI. All businesses are at risk for accidents, and therefore at risk for significant financial and legal issues.

However, there are some types of businesses that are more at risk for certain issues than others. So, even though all businesses should have GLI, if your business falls within the following categories, you are definitely going to want GLI to protect you.

You Work with Clients or Customers

If you are spending time working one-on-one with customers and clients, then that can carry a high level of risk.

If a client or customer is injured or experiences damages related to your business, then having GLI to cover the costs of these damages and get any legal help you might need will be crucial.

Your Location Is Accessible to the General Public

The more people there are that enter your business, the more chances there are for accidents to happen, and therefore the more at risk you are for injuries and damages. The general public can be especially unpredictable, which increases the chances of something happening at your business.

If your business is accessible to the general public, then you are going to want to make sure you have GLI even if you are an independent worker.

You Manage Client-Owned Property or Assets

There are many cases where your business might be in charge of managing assets or property that are owned by your clients. When you take on these assets, you are responsible for keeping them safe.

But accidents do happen, and sometimes life has things in store that we can’t anticipate. For cases like these, GLI will help cover the costs if any of your clients’ assets or properties are damaged because of your business.

You Rent Property

If your business requires that you rent out property outside of your home, then it’s important that you are properly insured. Even if you are as careful as possible when you work, there is still the risk that something could go wrong and the property you are renting gets damaged.

If you are renting commercial space, then you’ll want GLI to protect you in case anything ever goes wrong.

Other Types of Insurance

GLI is essential if you are looking for overall protection for your business, whether you’re a small business owner or you work as an individual.

If you are an individual or independent contractor, then you may want to consider looking into these types of insurance as well:

Business Auto Insurance

If your business requires that you drive, then you might want to consider getting business auto insurance. Essentially any vehicle that your business uses can be covered under a business auto insurance plan.

These plans can cover a range of different things, including injury or personal damage that could be caused by an accident.

Cyber Liability Insurance

If your business requires the use of computers, then you could be at risk for a cyber-attack. These attacks can be devasting and expensive to fix.

Cyber liability insurance is a specialized insurance product that we offer that will help you cover the costs of expenses and damages related to this type of attack.

When it comes to any type of business, having insurance is important. Even if you’re an individual, general liability insurance is something important to consider having. Get in touch with us today at ISU Armac to learn more about how our insurance can protect you.

David VS Goliath Podcast – Episode 3- Ryan McEachron – Welcome to the gun show!

David Vs Goliath Podcast features some of the top small business CEO’s stories of how they where able to leverage technology or other secrets to not only compete with their big competitors but actually win! In this fun and entertaining format your host Adam DeGraide will keep it interesting, educational and practical. This is a must view podcast for any existing or aspiring entrepreneur who has the desire to FIND, SERVE & KEEP more customers….PROFITABLY. In this Episode Adam DeGraide discusses the challenges of inheriting a successful small business and the need to not only sustain it but grow it in today’s fast pace high tech world. ISU-Armac is an insurance agency located in Victorville CA and provides both personal lines and business insurance nationwide. Find them online here https://www.isu-armac.com/