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Category: Risk Management

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.

When Your Business Equipment Breaks Down, Will You Be Prepared?

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When you think of business equipment “breaking down”, you probably bring images to mind of large manufacturing machines and big warehouses. And while this can sometimes be the case, more “everyday” equipment should also be in this conversation, including electrical and mechanical equipment, air conditioning and refrigeration systems, communication equipment and computers, boilers and pressure equipment, and even new technology.

Having insurance for equipment breakdown may seem like it has pretty self-explanatory coverages. But you might not have thought about some of the ways this coverage could support your business when things aren’t running.

Repair and Replacement
Likely the most obvious use for this coverage is to repair or replace the equipment that isn’t working. But that also takes the labor to complete the process. Having this coverage may also help you have the funds to pay for this labor.

Business Interruption
Your business may not be able to fully operate without this equipment, or it may not be able to operate at all. If the work outage meets the parameters of your policy’s language, you may be able to recuperate revenue loss that occurs as a result of the equipment’s failure.

Damaged Products or Goods
If the equipment’s malfunction causes damage to your business’s products or goods, your policy may provide you compensation. Think about issues with refrigeration or damages due to lack of power. These are examples that might come into play.

Third Party Damages
What if your equipment breakdown causes damages to other businesses? Or what if their equipment failure has an impact on your business? Having the right coverage in place might protect you if either of these scenarios occurs.

Part of running a successful business is planning ahead. And when unforeseen issues occur, good planning is critical. Contact Brandon Patterson at 865.453.1414 or email brandon@ownbyinsurance.com and he’ll be happy to discuss the insurance aspect of your plan and provide you info on the coverage you need.

Don’t Let ATV Risks Ruin Your ATV Fun

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Fall is a great season to get those 4-wheelers, UTVs, and other specialty off-road vehicles out to explore. And while all these types of vehicles can be fun, they also have risks that you need to be prepared to face. Having the right insurance in place is a big part of that preparation.

Some of those risks and coverages may be obvious, like collision coverage for accidents and comprehensive coverage for incidents of theft, fire, animal collisions, etc. But what about some of the less thought of risks you may face? Let’s take a look at a few:

Accessory Coverage
Many people add accessories to their ATV/UTV like trailer hitches, hunting equipment, custom seats, etc. This non-manufacturer-standard equipment may not be covered on your current policy. It may, however, be an option to be added or included in a different policy option. Even helmets, riding gear, radios, etc. may have the option to be covered if used exclusively for the insured vehicle.

Uninsured/Underinsured Motorist
Many people don’t insure their vehicles, especially if they are specialty vehicles like ATV/UTVs. If your vehicle is damaged in an accident with an uninsured or underinsured vehicle, you may not have coverage on a “standard” ATV/UTV policy. Adding this coverage, and/or potentially extending coverage to your ATV/UTV on a personal umbrella policy, may protect you from this type of liability.

Transport/Trailer Damage
Do you transport your ATV/UTV to other locations to ride? What about locations like trails, state/public parks, or hunting properties? If you do, you may have coverage limits, or a lack of coverage, that you’re not aware of having. Some state and public parks require ATV/UTV insurance for riders, meaning that if your vehicle is included under your home/auto policy, you may have coverage in these parks. In addition, the limits for damage to your ATV/UTV while it is trailered may not be enough to coverage damages in case of a severe accident.

As you can see, there is more to think about when covering these specialty vehicles. 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.

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

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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?

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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.

Minor Auto Accidents – Do you Need a Police Report?

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Recently, the Knoxville Police Department announced that they would no longer respond to “certain non-injury car crashes.” In other words, if you are involved in an auto accident and it doesn’t involve injury and/or leave a roadway blocked, an officer will not likely be on-site. The situations where they will respond include crashes that:

  • Result in injury or death
  • Involve a suspected intoxicated driver
  • Involve an unlicensed or uninsured driver
  • Result in a disabled vehicle on the road
  • Involve a disorderly or uncooperative party
  • Involve a hit-and-run with injury
  • Involve a Hazmat situation
  • Result in damage to other property

When these are not part of the scenario, what do you do? What about an accident report? Do you need one to file a claim? Take the steps if you are involved in a “minor” crash:

  1. Report it to the police. Use the local non-emergency line or call 911 if needed.
  2. Move your vehicle(s) to a safe area out of the road and exchange contact information and insurance information with the other driver(s).
  3. Take photos of any damage to the vehicles involved.
  4. The Tennessee Department of Safety requires you to complete an accident report if the damage is likely to exceed $400. You may complete a report online at https://www.tn.gov/content/dam/tn/safety/documents/owneroperator.pdf
  5. Contact your insurance agent to notify them of the claim. They’ll let you know the next steps to take to file the claim with the insurance company.
  6. While a report is not necessarily required for an insurance claim, it will help the process. And if there is more than $400 in damage (which is a very low threshold), Tennessee requires a report anyway.

With the above in mind, how can you be sure that you will not be incorrectly assessed fault for an accident? We recommend dash cams for personal vehicles, as that will likely help you capture footage in most accident scenarios. Having that footage should help clarify the accident cause and who is at fault, and there are many camera options available – some around $50 or less.

Have other questions about your auto coverage or claims scenarios? 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.

Is Your Detached Garage Covered with the Right Insurance?

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In today’s world, garages are for a lot more than parking cars. People across the country have turned their garages into gyms, bars, apartments, workshops, and more. The value of those garages can change completely with these upgrades. And if your garage is “detached” from your home, the limits of your coverage may not be we you need.

Buildings that are not attached directly to the primary structure (home or “dwelling”) on your property are typically covered on homeowners insurance policies. However, many policies cover detached structures with only a percentage of the value of your home. As an example, your home may be covered for $500,000, but your detached garage may only be covered for 10% of that value – or $50,000. That may seem like a significant amount, but consider a total loss claim scenario for your detached garage. If you’ve upgraded that structure with flooring, finishing, or maybe even a sink, wet bar, or full bathroom – $50,000 isn’t going to go very far with today’s cost of building materials and labor.

Additional coverage for “Other Structures” (also known as Coverage B) is typically available to add to homeowners policies. If not, sometimes standalone coverage called Detached Structure Insurance can be purchased. You should also keep in mind that if you store property for “business use” in your Other Structure (e.g. tools, inventory, shipping materials, etc.), it likely would not be covered on your personal policies if you had a loss.

Detached garages and other structures often have more coverage needs than their owners have considered. Contact Brandon Patterson at 865.453.1414 or email brandon@ownbyinsurance.com and he’ll be happy to discuss your property and provide you info on the coverage you need.

Insuring Motorcycles is About More than Just Two Wheels

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There are over 8 million motorcycles registered in the U.S., and many of those are considered more than just a mode of transportation by their owners – they’re a lifestyle. But motorcycles also inherently have some greater risks than other vehicles, and they’re not all safety based. Let’s take a look at some of the issues to consider when considering motorcycle insurance.

Most states, including Tennessee, have minimum limits for motorcycle insurance coverage. In Tennessee, those limits are:

  • $25,000 for per-person bodily injury liability limits
  • $50,000 for per-accident bodily injury liability
  • $15,000 for property damage liability (increasing to $25,000 on 1/1/23)

With that in mind, you have a starting point for your coverage needs. But if your motorcycle is your “baby”, there are more factors to consider:

Replacement Cost – Some policies will not cover your bike’s repairs to pre-accident conditions, and/or may depreciate the parts’ value. Those with custom parts may be especially affected by this.

Total Loss Replacement – Not all policies will provide coverage to replace your bike with equal value in the case of a total loss. This coverage can make a huge difference in a “totaled” claim scenario.

Personal Contents – Are you a road warrior with valuable possessions traveling with you? Not all policies provide the coverage you may need if these items are damaged or stolen.

Medical Liability – Above minimum limits, covering medical payments for larger recovery or treatment costs are definitely something to consider. Some policies even offer a “death benefit” should the worst-case scenario occur.

Agreed Value – Got a custom or vintage motorcycle? You may be better off with a policy that determines an agreed value with you for the bike if there’s a covered loss.

As you can see, motorcycle insurance isn’t as simple as it may seem. Contact Brandon Patterson at 865.453.1414 or email brandon@ownbyinsurance.com and he’ll be happy to provide you info on the coverage you need before you ride.

Surety Bonds May Be More Complex Than You Realize

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On the surface, Surety Bonds seem pretty straightforward. They are a guarantee that you can be held liable for your debt, default, or failure to perform. But there is more to them than that, and there are some very specific types of surety bonds that apply to specific situations and circumstances. Let’s take a look at some of these differences.

One of the first things to know about surety bonds is that they are three-party contracts. The Surety is the party that guarantees performance of the Principal – the party that has the obligation. The Obligee is the third party for whom the obligation is being guaranteed. For example, an insurance company issuing the Bond would the Surety party, the contractor doing the job would be the Principal party, and the client would be the Obligee party. In this example, there are different Surety Bonds that may come into play. In construction, these are called Contract Surety Bonds, and there are 4 of them:

  • Bid Bonds: Ensures the signing of an awarded contract and/or the providing of the required performance and payment bonds needed as a result of an awarded contract.
  • Performance Bonds: Ensures the performance of a contracted job.
  • Payment Bonds: Ensures the payment of suppliers and subcontractors for work done and materials provided.
  • Warranty (or Maintenance) Bonds: Ensures that any issues related to workmanship and material defects found in the original construction will be repaired (while under warranty).

When must these be provided? Privately contracted jobs often have their own requirements, and city and state governments have laws and regulations for these requirements. For Federal jobs, any contract valued at $150,000 or more requires Surety Bonds.

Commercial Surety Bonds are another set of bonds that are typically required as a result of Federal, state, and local governments. These bonds are required of individuals and businesses in certain scenarios related to their performance of a job or role. They include:

  • License and Permit Bonds: These bonds relate to licenses and/or permits for various professions, including mortgage brokers, auto dealers, and others.
  • Fiduciary (or Probate) Bonds: These bonds are required for individuals or parties that administer Trusts under court supervision.
  • Court (or Judicial) Bonds: These bonds relate to plaintiffs or defendants in judicial proceedings and reserve the rights of the opposing litigant(s).
  • Public Official Bonds: These bonds relate to public office holders, and ensure that they will perform their sworn duties.
  • Miscellaneous Bonds: There are a wide variety of less common bonds that would not fit into the above categories. These include Fuel Tax Bonds, Warehouse Bonds, and many others.

As you can see, there is more than meets the eye with Surety Bonds. How can we help you find the right bond for your needs and requirements? Contact Brandon Patterson at 865.453.1414 or email brandon@ownbyinsurance.com and he’ll be happy to help.

You Need Boutique Insurance for Your Boutique Business

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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