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Category: Risk Management

Protect Your Business from Seasonal Risks with the Right Insurance

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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.

Insurance for Your RV: Home or Vehicle?

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Whether you’re a weekend warrior or an RV full-timer, insurance is an important part of owning a recreational vehicle. But when it comes to insuring your RV, should it be treated as a home or a vehicle? The right RV insurance for you will blend aspects of each type of policy together and give you the coverage you need for your specific situation.

The “Vehicle” Aspects of RV Insurance

If you use your RV as a motor home and drive it on public roads under its own power, state laws require you to carry a minimum amount of liability insurance. The required minimum amounts of liability insurance that motorists must carry in Tennessee are:

  • $25,000 for each injury or death per accident
  • $50,000 for total injuries or deaths per accident
  • $25,000 for property damage per accident

The “Home” Aspects of RV Insurance

RV insurance is generally divided into two categories: recreational and full-timer. If you don’t live in your RV full time, recreational insurance will likely cover your RV inside and out when you’re on the road or parked at a campsite.

A full-time RV insurance policy is for those who use a motor home or travel trailer as their primary residence. It may include higher personal liability coverage, medical payments coverage, personal property/contents coverage, and possibly loss assessment coverage that could help cover RV park or association fees for common areas where your RV is parked.

Additional RV Coverages to Consider

Your unique RV use may also benefit from having specialty coverages added to or endorsed on your policy. Some examples would be:

  • Attached accessories coverage – May coverage damages from antennas, awnings, or other added accessories
  • International travel coverage – May cover you for traveling with your RV into other countries such as Canada or Mexico
  • Personal property coverage – May cover your personal property including tools, equipment, electronics, and more

Get in touch with Brandon Patterson at our agency by calling 865.453.1414 or emailing brandon@ownbyinsurance.com to discuss your RV’s coverage before you hit the road!

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

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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!

The Liability Risks Small Businesses May Face

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As a small business owner, it’s important to be aware of the risks you face when it comes to liability. These risks can come in many different forms and can vary depending on your type of business. Knowing what these risks are and how to best manage them is essential for running a successful business. Let’s explore what liability risks you might face as a small business and how you can protect yourself.

Employment Law Risks
The most common risk that small businesses face is employment law-related issues. This includes things like wage disputes, discrimination claims, and wrongful termination suits. To minimize your risk here, make sure you have a clear employee manual outlining company policies and procedures, as well as properly document all employee disciplinary action taken. Additionally, regular training on relevant laws and HR practices will help keep your team up-to-date on current regulations so they know their rights and responsibilities while avoiding potential pitfalls.

From a coverage perspective, having Employment Practices Liability Insurance (EPLI) may protect you if one of these issues results in a lawsuit against your business.

Operational Risks
Operational risks refer to the day-to-day activities of running a business such as customer service, marketing campaigns, data security measures, etc., which can all lead to potential liabilities if not managed properly. Implementing proper protocols for dealing with customer inquiries, setting up secure systems for storing customer data, and making sure you’re compliant with relevant laws are all key steps to mitigating operational risks related to your small business operations.

Your operations may require multiple coverages to help protect against these operational risks. A General Liability (GL) policy may cover some of them, while standalone policies like Cyber Insurance may help insure you have higher limits of coverage based on your needs.

Commercial Property Liability
Property damage is another common source of liability for small businesses. If a customer is injured on your premises due to an unsafe condition that wasn’t addressed properly or quickly enough by you or your staff members, they may be able to sue for damages depending on the severity of their injury and how much responsibility lies on your shoulders as the property owner or manager. To lessen this risk as much as possible, make sure all safety regulations are followed and that regular maintenance checks are carried out on a regular basis. If there is ever an incident involving property damage caused by someone other than yourself (e.g., an employee), investigate immediately and take appropriate action if necessary so that you don’t end up liable for damages caused by another person’s negligence or wrongdoing.

Again, a GL policy may be all you need here, but your policy limits are always something to consider based on your level of risk.

Product Liability Risks
If you manufacture or sell products, then product liability should also be top-of-mind for you when it comes to managing risk. This means understanding the potential dangers associated with your product or service and making sure that customers are adequately informed of any safety warnings or instructions prior to use. Having a comprehensive warranty program in place can also help reduce product liability risk as well as provide an additional layer of protection against customer complaints or lawsuits over faulty products or services.

Separate Product Liability insurance may also be available for your business, and may be needed if you have a higher level of risk based on what product(s) you produce.

No matter what type of small business you own or operate, there are always liability risks associated with it that need to be managed properly in order to ensure smooth operation and avoid potential legal complications down the road. To help ensure you have that right coverages in place to respond to legal concerns, contact Brandon Patterson in our agency at 865.453.1414 or email brandon@ownbyinsurance.com to get started!

I Have a Small Business – Is a BOP All I Need to Insure It?

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Operating a small business typically includes trying to find ways to lower your expenses. But you also have to protect your interests, and the interests of your customers and employees. Insurance is a critical piece of that planning, and a Business Owner’s Policy (BOP) seems like the easy answer. While in some cases it may be, don’t overlook other coverages you may need to have in place.

What’s a BOP, and What Does it Cover?
A BOP typically provides your business with coverage for liability and property and may also provide you coverage if your business is forced to shutdown because of a covered loss. So, claims like lawsuits against your business; damages to property, inventory, or equipment; and business interruptions are all things you may be covered for if you have a BOP in place. But there are other potential claims you may face depending on what goods or services your business provides.

What if I Have Employees?
If you have employees, you are likely required to have workers’ compensation coverage for them. In Tennessee, if you have five or more employees – one or more in construction – you are required to have work comp insurance. There are certainly exceptions, but it is something you’ll want to review with an agent. Your premium and level of risk for employees will be based on the work they perform – you can read more on how that’s determined here – and also your business’s history.

What About Cyber Coverage?
For example, let’s say you have a business that deals with customer data (as most do now). In today’s market, you need to have cyber liability insurance to protect your customers and your business in the event of a data breach – and your BOP may not have coverage for that. If your BOP does offer coverage for cyber liability or data breach, it may not be enough coverage. That all depends on the amount of and way you use your customer data.

Additional Risks?
Does your business deliver goods? Do you have special equipment, work with expensive technology, or rely heavily on suppliers? There are many factors that can impact your small business, and it is important to discuss them with an agent. Then you can determine if there are additional coverages you may not have considered.

A BOP is a great start for many small businesses’ insurance – but it’s not all-encompassing protection. Make sure you understand your business’ risks and needs and purchase the appropriate coverage to protect your property and interests.

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!

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

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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!

Would You be Covered if Santa’s Sleigh Damaged Your Roof?

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Have you ever thought of the possibility that Santa’s sleigh might cause damage to your roof? It’s hypothetical of course (or is it?), but if a large sleigh filled with gifts and a crew of flying reindeer landed on your roof, it’s hard to believe they wouldn’t ever leave behind some damage. So, if some tiles were damaged – or worse, you have a Santa’s sleigh-shaped hole in your roof – what would you do?

Would Home Insurance Cover It? Maybe.

Homeowner’s insurance generally covers any damages caused by sudden and accidental events. This includes damages from storms, fires, theft, vandalism, accidents, and more. The key here is that the incident must be sudden and accidental. So, what does this mean for Santa’s sleigh? Well, if it suddenly crashes into your roof and causes damage then it would likely be covered by your homeowner’s insurance policy.

It is important to note, however, that most policies have exclusions for any kind of intentional or expected damage. That means if Santa was aware of the potential for his sleigh to crash into your home but decided to risk it anyway then your insurer may not cover the damage costs as they are expecting him to take reasonable precautions when travelling around homes on Christmas Eve! In addition, some policies also exclude all kinds of “acts of god” type events so in that case even if Santa was unaware of the potential for crashing into your home your insurer could still choose not to cover the costs associated with repairing the damages.

How Can You Protect Yourself?

The best way to protect yourself against any unexpected events like this is to make sure you have adequate coverage in place with a reliable insurer who will provide prompt service when needed. Make sure you are familiar with all of the exclusions listed in your policy so that there are no surprises should something happen. Additionally, always keep detailed records including photos and video footage just in case you need them down the line (Plus, we want to see the sleigh!).

Lastly don’t forget about preventive maintenance – if there are any issues with your roof make sure they get fixed before Christmas rolls around; after all it wouldn’t hurt for us all to do our part in helping out old Saint Nick!

Contact Brandon Patterson at 865.453.1414 or email brandon@ownbyinsurance.com and let us help you plan for any unexpected events.

Are Your Cabin & Vacation Rental Risks Higher During Winter?

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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?

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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.

What You Need to Know About Insuring Classic Cars

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If you have a classic car, chances are you’ve invested a good amount of time and money into its appearance, performance, and maintenance. And you definitely want to protect that investment. Having the right insurance for your vehicle is one of the best ways to do that. Let’s take a look at what coverage for classic cars entails.

Classic Versus Vintage Auto

Did you know there is a difference in what is considered a classic versus a vintage car? In order to qualify as vintage, a vehicle must be at least 25 years old. However, it can still be considered classic if it’s 15 years old or older and is a limited edition, rare find, or has high market value.

The “Need to Know” for Insuring Classic Cars

When you insure a classic car with most insurers, there are some key factors you’ll want to know about your coverage:

Agreed Value: Most classic cars are worth more than the average vehicle. This is taken into account when finding coverage, but in the case of your classic or vintage car, there may be other circumstances that make your vehicle even more valuable than its counterparts. Special modifications, unique history, clean title – these all can matter. That is why “agreed value” is such an important part of these coverages. You and the insurer agree on a value of the vehicle for which the coverage is then based.

Usage of the Car: How you use your classic car will affect how it’s insured. For example, if you only drive it to car shows, you’ll most likely have a different policy than if you drove it as your daily driver. Some insurers have mileage limits, potentially as low as 2,000 miles per year. Make sure your use matches up with any limit or look for a policy without that limit.

Increased Replacement Cost: Some insurers allow for greater replacement cost coverage in cases where value or cost of replacement parts has increased beyond the agreed value of the policy.

No “Attendance Required”: If you frequently display your vehicle at car shows, there may be times where you are not monitoring people around your car. If an incident occurs during one of these times and your vehicle is damaged, have “no attendance required” coverage may allow you to be reimbursed for your claim.

Spare Parts Coverage: If you have specialty tires, extra engine parts, etc. for your classic car, some policies extend coverage to these parts. If damage or theft occurs, you may have coverage under these policies.

When you’re insuring a classic car, it’s important to take all of these factors into account. These vehicles often have special meaning to their owners that goes beyond their value. Contact Brandon Patterson at 865.453.1414 or email brandon@ownbyinsurance.com and make sure that your classic is protected as much as possible.