Please ensure Javascript is enabled for purposes of website accessibility

Category: Commercial Insurance

Protect Your Business from Seasonal Risks with the Right Insurance

Posted on by Ownby-Client-Login

If you’re a business owner, you know that the seasons can bring unexpected surprises that can disrupt your operations. You may face risks from extreme weather or product shortages due to seasonal changes that could cost you time and money. But did you know there are insurance policies available to help protect your business against some of these seasonal risks? Let’s dive in and explore the different types of insurance options out there for seasonal changes in your business.

Property Insurance for Extreme Weather Events

We all know how unpredictable Mother Nature can be. Heavy rain, hail, and windstorms can cause property damage to your business premises or equipment. A good property insurance policy will protect you against losses related to damages caused by severe weather events. But did you know that most business property policies do not include coverage for floods or earthquakes? There are options available for covering against these risks, and your business may be better protected if you have them in place.

Business Interruption for Contingent Businesses

If your business relies heavily on seasonal products or inventory, a product shortage could have serious financial implications for you. If you rely on suppliers to provide you materials, supplies, food products, or other goods and services – your business may have a contingent risk. Business interruption coverage may help protect you if a supply chain issue results in your business being unable to build inventory or meet increased demand.

Increased Value for Seasonal Changes                                                                              

If Spring is one of your busiest times of year, it is likely you stock up on inventory or increase your production to meet demand. This may mean you have higher than normal value on this inventory, seasonal employment increases, higher operating costs, more business income, and additional risks that may be significantly different than other times of year. It is important to factor these into your coverages, and possibly even look at “peak season endorsements” or other options for coverage.

We may not know what’s in store as the seasons change, but we can be better prepared. Get in touch with Brandon Patterson at our agency by calling 865.453.1414 or emailing brandon@ownbyinsurance.com to discuss your seasonal risks and the coverage options you may have available.

Spring is in the Air! What Coverages will Prepare You?

Posted on by Ownby-Client-Login

For those that don’t enjoy cold weather, springtime is a welcome relief! As the days get longer and the weather gets warmer, it’s an exciting time to be outdoors more and enjoy nature. But there are some risks that seem to “return” more heavily in the Spring, and we want you to be prepared!

Flood Risks
As the weather changes, storms are more common. Heavy, and more frequent, rains often lead to flash flooding or even overflowing creeks, lakes, and rivers. Every building is in a Flood Zone, and anywhere can flood if the worst conditions occur. Flood insurance is typically not included in your homeowners coverage, and our building and contents are also covered separately when it comes to Flood insurance. Make sure you’re aware of what you do – and don’t – have covered if a flood impacts your property.

Boats and Recreational Vehicles
Getting that boat, RV, ATV, or other vehicle ready for the season? Do you have it covered properly? Damage to these vehicles can often occur during their storage, preparation, and/or transportation – not just during regular use! Does your policy have coverage for when this other damage occurs?

Potholes
Road conditions often “show up” more frequently during weather changes. Potholes may open as road coverings warm up, leading to sometimes dangerous hazards. If you only have collision coverage on your vehicle, pothole damage is unlikely to be covered by your policy.

Vacation Rental Coverage
Americans begin to take more and more trips as the weather improves, with Spring Breaks a common “kickoff” to this heavier travel season. Is your rental property prepared? Often, the Winter season has impacts that lead to necessary Spring maintenance. If you’re properly maintaining your properties, you may be avoiding risks that can lead to damage or liability. Even so, heavier use of your properties also comes with increased risks. Having the right policies in place for high traffic seasonal use is a critical part of protecting your property.

To help ensure you have that right coverages in place for seasonal risks, contact Brandon Patterson in our agency at 865.453.1414 or email brandon@ownbyinsurance.com to get started!

Insuring Condos is Just Like Insuring Any Other Home – Right?

Posted on by Ownby-Client-Login

Owning a condominium is a big investment, and it’s important that you take the necessary steps to protect it. And while condos do have many of the same risks as houses, there are also other risks you need to be aware of – and coverages that can protect you. There may also be less that needs to be covered than a traditional house, but it’s important to understand what that really means. Let’s take a look!

What Kind of Insurance Do I Need?
As you might expect when insuring a condo, there are three common types of coverage: dwelling, liability, and personal property. Dwelling coverage typically covers any repairs or replacements needed due to fire, theft, or specific natural disasters. Liability coverage is to help protect you from lawsuits that may arise from an accident in or around your condominium. And finally, personal property coverage is used to cover items inside your condo if they are damaged or stolen.

However, condos are typically insured on an “HO6” policy. The main difference in that and a “regular house” policy (typically covered by an “HO3” policy) is that condo owners are not usually responsible for the “common areas” around their condo. As examples, the hallways, land, parking areas, etc. are usually the responsibility of the company that owns or manages the condo – or the condo owners’ association.

So, as a condo owner with an HO6 policy, you may have “less” to cover. But that doesn’t mean you have less to protect. HO6 policies don’t typically protect you against losses from earthquakes, sinkholes, floods, and municipal water/sewers.

What Other Coverages Do I Need?
To fully protect your condo, you should discuss additional coverage options with your insurance agent. Coverages for flood, water backup, earthquake, and umbrella policies for additional liability may make sense depending on your specific risks.

Another coverage to review is “unit assessment” insurance, which can reimburse you for your share of an assessment charged to all unit owners as a result of a covered loss. For instance, if there is a fire in the lobby and all the unit owners are charged the cost of repairing the loss.

Insuring condos, like most property, is often unique to the risks you face. Contact Brandon Patterson at 865.453.1414 or email brandon@ownbyinsurance.com and let him help you determine your risks and understand your coverage options!

Are Your Cabin & Vacation Rental Risks Higher During Winter?

Posted on by Ownby-Client-Login

Over the past decade, Cabin and Vacation Rentals have continued to increase in popularity, and winter has quickly become one of the busiest times of year for these properties. However, with the colder weather comes a unique set of risks. So, are there greater insurance risks during the winter months? Let’s take a closer look at this important question.

Winter Weather Risks

One of the biggest risks during winter rentals is weather-related damage. Snowstorms can cause roofs to collapse, ice dams can form on gutters, and freezing temperatures can cause pipes to burst – all of which can lead to costly repairs or replacements. If you or a renter isn’t occupying the cabin, even more damage can occur while these damages go unchecked.

Higher Risks for Fire

Another risk associated with renting out a cabin or vacation home in the winter is the potential for a fire. Many people who rent cabins are looking to enjoy activities that involve open flames such as fireplaces, candles, campfires, fire pits, etc., which carry an inherent risk of fire damage. Additionally, bad weather can make roads impassable or make it difficult for emergency services to reach their destination.

Insurance Fraud Issues

It’s also important to be aware of potential insurance fraud when renting out your property in the winter months. Unfortunately, some unscrupulous individuals may try to take advantage of your generous hospitality by claiming damages that never actually occurred or inflating their claims in order to receive more compensation than necessary from your insurer.

Preparation is the Key

Preparing your property for these risks and having the right coverages in place should an issue occur is critical. Some steps for preparation to consider include:

  1. Take steps to winterize your property, including cleaning gutters, changing filters, checking pipe insulation, and inspecting roofs.
  2. Post clear instructions for renters on using fireplaces, candles, and open flames near any flammable materials.
  3. Review potential renters’ profiles and previous “reviews” if available. Compile all the appropriate information to contact them should an issue occur.
  4. Having cameras on your property to keep up oversight may also be a good idea, but be sure to be mindful of privacy and appropriate locations for monitoring.

With a little bit of foresight and preparation, cabin owners can enjoy peace of mind knowing that their rental properties are properly insured during the potentially hazardous winter months. By researching different policies and understanding what types of risks are associated with renting out a cabin during this time period, you can ensure that you are adequately protected against any unforeseen events that might occur while renting out your property during this season. Let us help you review these options and determine the coverages that are best for you! Contact Brandon Patterson at 865.453.1414 or email brandon@ownbyinsurance.com and let us help you get started.

Your Business’s Workers’ Compensation Rates: How Are They Determined?

Posted on by Ownby-Client-Login

If you have a business with employees, you certainly want to protect them in case they get injured on the job. But workers’ compensation insurance can sometimes be confusing, especially when it comes to understanding how your rates are determined. There is a general formula we will discuss, but the unique characteristics and financials of your business play a key role. The following are the basics of what you need to know.

 

Your Payroll: The payroll for your business is the starting point for calculating your workers’ comp premiums. For every $100 of taxable wages you pay on payroll, you will be charged an amount for work comp coverage. What amount? Let’s take the next step to find out.

 

Your Employee Class Code/Rate: For every employee, there is a 4-digit class code assigned to work they perform. In Tennessee, the rates for those codes are determined by the National Council on Compensation Insurance (NCCI). In theory, the rate should correspond to the risk the employee has based on their job’s tasks. For example, an office worker may have a rate of $0.15, while a manufacturing worker may have a rate of $15.00.

 

Your Experience Modification Factor: Also known as an Experience Mod or just a Mod, this factor is based on the comparison of your business to others in your industry. How old is your business? How frequently have you had work comp claims? How severe are those claims? These are factors that will impact your Mod.

 

The average Mod is 1.0, so your business will be higher or lower depending on the circumstances. If you have a good business history with minimal and less severe claims, you will likely have a Mod lower than 1.0. For example, a 0.90 Mod would give your business a 10% credit. Conversely, a 1.10 Mod would add a 10% debit to your work comp rates. Other factors, like the Loss Cost Multiplier an insurance company applies to the rate, may also have an impact.

 

The Formula:  Class Code Rate X Experience Mod X (Payroll/100) = Rate Estimate

 

Workers’ comp can be a complicated coverage, but it doesn’t have to be. Contact Brandon Patterson in our office at 865.453.1414 or email brandon@ownbyinsurance.com to discuss your risks and options for coverage.

It’s Fall! Are There More Risks in Store this Season?

Posted on by Ownby-Client-Login

There is a large contingent of people that excitedly await the Fall season. In our region, the turning leaves, crisp weather, and seasonal décor make for a pretty sight. But this season also brings some risks for you and your property, and it’s a good time to prepare and avoid these potential issues.

Wild Animal Incidents
As the weather changes, the habitats for deer, bears, foxes, and more change. Their food may be scarcer, causing them to wander further than normal. This can lead to them walking on roadways and exploring more populated areas. In fact, statistics show that the majority of vehicle accidents involving animals occur between October and December. These are even more common at dawn and dusk, so be vigilant when you’re on the road this season.

Fire and Smoke-related Incident
We get it, a cozy fire can sound very nice when the evenings cool down. But fireplaces, candles, and wood stoves can lead to issues. Almost a third of smoke and fire claims occur during the Fall and Winter months, and Ready.gov stats show that over $7 billion per year of property is lost in house fires. Please make sure fireplaces and chimneys are clear, candles are kept in occupied areas, and wood stoves are monitored.

Leaves Can Be a Culprit
The colors of Fall can be beautiful, but they call it Fall for a reason. The leaves that collect on roofs, gutters, yards, sidewalks, and roads can cause damage – both directly and indirectly. Clogged gutters can lead to water damage, sidewalks and roads can be slick with wet leaves, and uncleared leaves on the ground can damage grass and landscaping. Be sure to clear your gutters, rake your yard, and be careful on those leaf-covered passages.

Have other questions about your seasonal risks? Contact Brandon Patterson at 865.453.1414 or email brandon@ownbyinsurance.com and he’ll be happy to discuss it and provide you info on the coverage you need.

Who Needs a Commercial Umbrella?

Posted on by Ownby-Client-Login

You can probably guess pretty quickly that the “commercial umbrella” we’re referring to isn’t some industrial strength rain shield. In the case of insurance, a commercial umbrella can extend the protection your business has from certain limits of liability on other coverages.

For example, if you your business had a large legal claim against it, your businessowners policy might not cover all of the legal expenses, medical costs, damages, and/or legal judgements imposed. Most commonly, this is seen with general liability policies and commercial auto policies. And there must be an “underlying” policy to extend – you can’t just buy a commercial umbrella without base coverages. The reason for that is these policies are triggered by specific policy language. Something must occur with your other policy(ies) for this policy to “kick in”.

So, who needs one? While most businesses could benefit from having one in place, a commercial umbrella is especially needed for businesses that frequently interact with their customers in-person. This is especially so if equipment/machinery is involved – think of pest control, dry cleaning, restaurants, landscapers, and hardware stores as good examples. The key is to understand where you have the highest risk for a claim. As further examples – landscapers may cause property damage more frequently by flying debris, and a hardware store may be operating a forklift around walking patrons in risk of bodily injury.

The limits and costs of these policies vary of course, but they can be a very wise investment. You may be able to increase the amount of your “total” coverage by $1 to $15 million (more in some cases), allowing you to “customize” your business’s insurance plan.

Have other questions about protecting your business with an umbrella? Contact Brandon Patterson at 865.453.1414 or email brandon@ownbyinsurance.com and he’ll be happy to discuss it and provide you info on the coverage you need.

Sevierville Agency Ownby Insurance Service Celebrates 70 Years

Posted on by Ownby-Client-Login

June 21, 2022

Sevierville, Tenn. – Sevierville independent insurance agency Ownby Insurance Service, Inc. is celebrating their 70th year in business this June. Founded in 1952 by Clyde Ownby, the agency had humble beginnings as Clyde sought to insure the individuals and businesses that call East Tennessee home. The agency has grown substantially over time, but their mission is still the same – make customers the top priority and provide them with honest and fair service to help them protect themselves, their loved ones, and their businesses that make the community what it is today.

Seventy years later, the agency is still proud to be a family-owned business. Clyde’s son, Mike Ownby, and grandson, Kevin Ownby, continue the tradition as owners of the company.

In celebration of the 70th year milestone, the agency has made a commitment to donate to numerous community organizations throughout the remainder of 2022. The first donation will be in support of the local Sevier County Fire Chief’s Association, in partnership with VFIS, an insurance company that provides coverage for emergency organizations in recognition of their tireless efforts to protect the public in Sevier County.

Ownby Insurance Service will be announcing the additional community organizations throughout the year as they continue to give back and celebrate 70 years in business.

You Need Boutique Insurance for Your Boutique Business

Posted on by Ownby-Client-Login

It is estimated that there are over 150,000 clothing boutiques in the U.S.1, and that numbered has remained steady since an initial surge of closures in the early stages of the COVID pandemic. However, many in the industry feel there will be a wave of openings in the Summer of 2022. Whether you or a new or established boutique, and whether you have a storefront or operate online only – there are risks that you need to be aware of and protecting your business against.

Most boutiques owners understand the main risks of their business, protecting their inventory and their income. If they own or rent a physical space, they know there is risk involved there that must be insured. But what about the additional concerns that may not be as apparent? Let’s look at some of those and how they might impact your boutique.

Cyber Liability – Whether your shop is online, physical, or both, there are definite risks for cybersecurity. Processing credit card data, storing customer names and info, and frequent correspondence online open a potentially large window for issues. It’s also likely you’ve seen boutiques with large notebooks where customers have written down their name, email, and maybe even date of birth. All of this data needs to be protected, but you also need a plan in place in case an incident occurs. Part of that pan for response should include cyber liability insurance. Without it, the costs of response could put you out of business for good.

Workers’ Compensation – If you have employees, chances are that they are frequently performing physical activities. Lifting boxes, moving stacks of clothes, and other daily tasks can potentially lead to injuries. Should an injury occur during the course of work, you’ll want to have that employee – and your business – protected. Workers’ comp policies are designed to respond when these injuries take place.

Commercial Auto – Do you or your employees make deliveries, and/or take boxes for shipping? Are there inventory pickups or supply runs as part of the job? If so, consider that your personal auto policy may not provide the coverage you need if an accident occurs during these work-related trips.

Inventory – If your boutique is run from your home, is your inventory properly covered? If it is run from a storefront, do you have enough coverage for peak months or special shipments? Keep in mind the actual coverage and limits in your policy may not be enough for a worst-case scenario of property loss.

Do you have the right coverage in place for your boutique? We can help you walk through the policies you have or discuss new options. Contact Brandon Patterson at 865.453.1414 or brandon@ownbyinsurance.com for more information.

1-According to IBIS World

Professional Offices – Your Exposures May Surprise You

Posted on by Ownby-Client-Login

If you own and/or operate a professional office that offers services like accounting, chiropractic work, dental labwork, etc., you may think that your exposure to claims is more limited than a workplace with frequent physical labor. But in reality, your insurable exposures are just different. Sure, having Businessowners Policy seems obvious, but here are a few coverages you may not realize could impact your business setting.

Professional Liability
Also known as Errors & Omissions (E&O) coverage, this insurance could help protect your business in case you are sued for a professional mistake. For example, if a medical lab makes a mistake in labeling test results and a physician’s office or patient sues as a result. Or, if an accountant gives “poor” financial advice that leads to client litigation. With proper E&O coverage in place, you may have financial protection from legal actions and financial losses that can occur when a client sues your company.

Workers’ Compensation
Accidents can happen, even in professional office settings. Maybe your staff is using lab equipment, moving file boxes, or helping a client with an injured back – one slip can cause a major medical issue. With lost wages and medical care, those issues can add up quickly. In some cases, legal expenses or even third-party lawsuits may be involved in these claims, and having the right coverage is critical.

Employment Practices Liability
In today’s world, how you operate your business is under a lot of scrutiny. If you find yourself in an instance where wrongful termination, discrimination, harassment, contract breach, or other employee lawsuits occur, you may wish you had coverage to help with legal fees, settlements, and/or judgements. If you have properly configured your risk management with Employment Practices Liability Insurance (EPL), you may have that assistance.

Cyber
In professional offices of all kinds, data is a key piece of your day-to-day world. You likely protect that data with IT precautions and staff training. But even with measures in place, breaches, viruses, and ransomware can still infiltrate your systems. In addition to the potential data corruption, breach, or access restriction, you likely will have costs to notify your clients. Much of this could fall under coverage provided by a Cyber Insurance Policy. And although some cyber protection my be included in your other business insurance policies, often a standalone policy is best for this coverage.

With these exposures and coverages in mind, how confident do you feel with your current policies? Get in touch with us today to review what you have in place and discuss the options you have for your business. Please contact Brandon Patterson at brandon@ownbyinsurance.com or call 865.453.1414 to get started.