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Category: Specialty Insurance

Understanding Common Personal Insurance Policy Exclusions

Posted on by Jon Blankenship

When you buy an insurance policy, you want to feel like you’re buying peace of mind. You trust that if something goes wrong, your coverage will be there to help you recover financially. But what happens when you file a claim, only to find out your policy doesn’t cover the specific situation? This frustrating experience often comes down to: personal insurance policy exclusions. 

Understanding what your policy doesn’t cover is just as important as knowing what it does. This blog will walk you through common personal insurance policy exclusions, explain some key terms, and empower you to make smarter decisions about your coverage.

What Are Insurance Exclusions and Why Do They Exist?

An insurance exclusion is a specific condition, event, or circumstance that your policy does not cover. If a loss occurs due to an excluded peril (the event or cause of the claim), the insurance company will not pay for the damages.

Insurers use exclusions for several important reasons:

  • To Manage Risk: Some risks are too widespread, catastrophic, or predictable for an insurer to cover affordably. Events like war or floods fall into this category.
  • To Prevent Fraud: Policies exclude intentional acts to discourage people from deliberately causing damage to collect an insurance payout.
  • To Avoid Covering Maintenance: Insurance is designed for sudden and accidental losses, not for routine upkeep or predictable wear and tear.
  • To Keep Premiums Affordable: By excluding certain high-risk activities or events, insurers can offer more affordable coverage for common, everyday risks.

Key Insurance Terms to Know

Before we dive into specific policies, let’s clarify some common terms you’ll see on policies.

  • Endorsement or Rider: An add-on to your policy that either adds, modifies, or removes coverage for specific situations. For example, you can add a rider to your home policy to cover jewelry or fine art.
  • Waiting Period: A set amount of time after your policy starts before certain benefits become available. This is common in health and disability insurance.
  • Sub-limit: A specific dollar limit on a particular type of loss. Your policy might have a $200,000 overall limit, but a sub-limit of only $2,500 for stolen electronics.
  • Named-Peril vs. Open-Peril:
      • A named-peril policy only covers losses caused by the specific events listed in the policy (e.g., fire, theft, windstorm).
      • An open-peril (or “all-risk”) policy covers everything except what is specifically excluded. Open-peril policies offer broader protection.
  • Actual Cash Value (ACV) vs. Replacement Cost:
      • ACV pays for the cost of the damaged item minus depreciation. You get what the item was worth at the time of the loss.
      • Replacement Cost pays the full cost to replace the item with a new one of similar kind and quality, without deducting for depreciation.

Common Exclusions by Policy Type

Let’s break down the typical exclusions you’ll find in major personal insurance lines.

Auto Insurance Exclusions

Your auto policy is designed to cover accidents and unforeseen events, but not everything that happens in or to your car is covered.

  • Intentional Acts: If you deliberately damage your own vehicle or cause an accident on purpose, your insurer won’t cover it.
  • Business Use: Standard personal auto policies exclude using your vehicle for commercial purposes, like ridesharing (Uber/Lyft) or food delivery. You need a separate commercial policy or a specific endorsement for this.
  • Racing or High-Performance Driving: Any damage that occurs while racing, practicing for a race, or participating in a high-speed driving event on a track is excluded.
  • Driving Under the Influence (DUI): While your liability coverage may still protect victims if you cause an accident while intoxicated, your insurer may refuse to cover damage to your own vehicle. They will likely cancel your policy afterward.
  • Wear and Tear: Oil changes, new tires, brake pad replacements, and engine trouble from lack of maintenance are not covered.
  • Custom Parts and Equipment: Modifications like expensive rims, spoilers, or custom sound systems are usually not covered unless you add a specific endorsement.

Homeowners and Renters Insurance Exclusions

Homeowners policies protect your dwelling and personal property from many risks, but they have significant limitations.

  • Flood and Earthquake: These are standard exclusions on almost every homeowners and renters policy. You must purchase separate flood insurance (often through the National Flood Insurance Program) and earthquake insurance policies.
  • Mold: Many policies limit or entirely exclude coverage for mold removal unless the mold is the direct result of a covered peril, like a burst pipe. Even then, coverage is often capped.
  • Pest Infestations: Damage from termites, rodents, or other pests is considered a maintenance issue and is not covered.
  • Intentional Damage: If a homeowner intentionally damages their own property, the claim will be denied.
  • Business Operations: Running a business from your home can create liability risks that a standard policy won’t cover. You may need a business owner’s policy or an endorsement.
  • Sewer Backup: Water damage from a backed-up sewer or drain is a common exclusion. You can usually purchase a water backup endorsement to add this coverage.

How to Spot and Address Coverage Gaps

Being proactive is the best way to avoid surprises. Use this checklist to review your policies and minimize gaps in your coverage.

  • Read Your Declarations Page: This one-page summary outlines your coverage limits, deductibles, and endorsements. It’s the best place to start.
  • Schedule Valuable Items: If you own expensive jewelry, art, or collectibles, their value likely exceeds the sub-limits in your home policy. Schedule them with a personal articles floater for full coverage.
  • Ask About Riders: Talk to your agent about endorsements that fill common gaps, like water backup or business use coverage.
  • Keep Maintenance Records: Good records can help prove that a loss (like a roof leak) was caused by a sudden event, not neglect.
  • Consider an Umbrella Policy: An umbrella policy provides an extra layer of liability protection above the limits of your home and auto policies.
  • Get Specialty Coverage: Don’t rely on your homeowners policy to cover a flood or your personal auto policy for your delivery business. Buy the right specialty insurance for the risk.

Shopping for Better Coverage

You have more power than you think. When buying or renewing insurance, don’t be afraid to ask questions!

  • Compare Multiple Quotes: Different insurers have different appetites for risk. One company may have an exclusion that another is willing to cover with an endorsement.
  • Ask Your Agent Specific Questions: Don’t just ask, “Am I covered?” Be specific:
      • “What are the biggest exclusions I should be aware of in this policy?”
      • “Is my home-based business covered for liability?”
      • “Does this policy cover water damage from a sump pump failure?”
      • “What are the sub-limits on electronics, jewelry, firearms, etc.?”

Your Annual Policy Review

An insurance policy is not a “set it and forget it” purchase. Contact Brandon Patterson on our team at brandon@ownbyinsurance.com to get started on your personal insurance review.

 

Why Your Business Needs Employment Practices Liability Insurance (EPLI)

Posted on by Jon Blankenship

If you’re a business owner, manager, or HR leader, you focus on building a great team and a positive culture. Yet, even with the best intentions, employee-related claims can arise unexpectedly. Defending against allegations of wrongful termination, discrimination, or harassment can be financially crippling, even if the claims are baseless. This is where Employment Practices Liability Insurance (EPLI) becomes a critical part of your risk management strategy.

What is EPLI?

EPLI is a specialized type of management liability insurance that protects businesses against claims made by employees, former employees, or even job applicants. These claims allege that their legal rights as employees have been violated. Unlike more common policies like general liability, which covers bodily injury or property damage, EPLI specifically addresses a wide range of employment-related risks.

The Growing Risk Landscape for Employers

The modern workplace is more complex than ever, and the legal landscape is constantly shifting. Several factors are increasing the frequency and cost of employment claims.

  • Rising Claim Frequency: Employees are more aware of their rights than ever before. This awareness, combined with a more litigious social climate, has led to a steady rise in employment-related lawsuits filed against companies of all sizes.
  • Remote and Hybrid Work Dynamics: The shift to remote and hybrid work models has introduced new complexities. Issues like digital communication, perceived inequities in opportunities, and challenges in monitoring performance can easily lead to claims of discrimination, harassment, or unfair treatment.
  • Evolving Laws and Regulations: Federal, state, and even local employment laws are in a constant state of flux. New legislation related to pay equity, family leave, and discrimination protections creates new compliance burdens and potential liabilities for employers who fail to keep up.

What Does EPLI Typically Cover?

An EPLI policy is designed to cover the costs associated with employment-related lawsuits, including legal defense fees, settlements, and judgments. While policies vary, most provide coverage for the following types of claims:

  • Wrongful Termination: Allegations that an employee was fired in violation of the law or their employment contract.
  • Discrimination: Claims that an employer made decisions based on protected characteristics like age, race, gender, religion, disability, or national origin.
  • Harassment: Includes claims of sexual harassment as well as harassment based on other protected categories, creating a hostile work environment.
  • Retaliation: Allegations that an employer punished an employee for legally protected activities, such as reporting harassment, acting as a whistleblower, or requesting accommodation for a disability.
  • Wage-and-Hour Claims: Some policies offer a sub-limit (a smaller amount of coverage) for the defense costs associated with claims alleging violations of wage and hour laws, such as unpaid overtime or misclassification of employees. Note that coverage for the actual unpaid wages is typically excluded.
  • Third-Party Claims: This valuable extension provides coverage for harassment or discrimination claims brought by non-employees, such as customers, clients, or vendors. This is especially important for businesses with significant public interaction.

Real-World Claim Scenarios

It’s easy to think “this won’t happen to us,” but employment claims can stem from everyday situations.

  • The Small Business Scenario: A small business with 15 employees lets go of a team member for performance issues. The team member, who is over 50, files an age discrimination lawsuit, claiming younger, less-experienced colleagues were retained. The startup must now pay tens of thousands in legal fees to defend itself, even though its decision was performance-based.
  • The Mid-Size Business Scenario: A mid-sized manufacturing company receives a complaint that a manager is making inappropriate jokes, creating a hostile work environment. Before HR can complete its investigation, the employee quits and sues for constructive discharge and sexual harassment. EPLI would cover the defense costs and any potential settlement.
  • The Miscommunication Scenario: During a friendly chat, a manager tells a pregnant employee, “You’ll have your hands full with the new baby! We can scale back your duties when you return.” Though well-intentioned, the employee interprets this as a demotion and files a pregnancy discrimination claim.

The key takeaway is that you don’t have to be wrong to be sued. The cost of defending a claim alone can be devastating for a business without proper insurance coverage.

Who Needs EPLI the Most?

While every business with employees has exposure, some face a higher degree of risk.

  • Startups and Fast-Growing Companies: Rapid hiring and evolving internal processes can lead to inconsistencies and HR oversights.
  • Businesses with High Turnover: Industries with frequent hiring and firing naturally see more claims related to termination.
  • Multi-State Employers: Navigating a patchwork of different state and local employment laws significantly increases compliance risk.
  • Customer-Facing Industries: Restaurants, retail stores, and hospitality businesses have higher exposure to third-party claims from the public.
  • Nonprofits: Board members and the organization itself can be targets of employment lawsuits, and limited budgets make defending these claims particularly challenging.

What EPLI Doesn’t Cover

It’s equally important to understand what is typically excluded from an EPLI policy. Common exclusions include:

  • Claims related to the Employee Retirement Income Security Act (ERISA).
  • Workers’ compensation claims (these are covered by a separate workers’ comp policy).
  • Bodily injury or property damage (covered by general liability).
  • Penalties and fines imposed by law.
  • Claims arising from deliberate fraud or intentional wrongdoing.

Proactive Risk Management Can Reduce Your Premiums

Insurers reward businesses that take proactive steps to minimize their employment risks. Implementing strong HR practices not only protects your company but can also lead to more favorable EPLI premiums.

  • Employee Handbook: Maintain a comprehensive, up-to-date employee handbook that clearly outlines company policies, procedures, and expectations. Have every employee sign an acknowledgment of receipt.
  • Regular Training: Conduct mandatory anti-harassment, anti-discrimination, and diversity training for all employees and managers.
  • Clear Documentation: Document everything—performance reviews, disciplinary actions, and termination reasoning. Consistent documentation is your best defense.
  • Complaint Hotline: Establish a formal, confidential process for employees to report concerns without fear of retaliation.
  • Consistent Processes: Apply all HR policies and procedures consistently across all employees to avoid any appearance of favoritism or discrimination.

Understanding Your Policy: Limits, Pricing, and Coordination

When purchasing EPLI, you’ll need to decide on coverage limits and a retention (deductible). These are influenced by several factors:

  • Industry: Certain industries (like hospitality or healthcare) are considered higher risk.
  • Claim History: A history of prior employment claims will increase your premium.
  • Employee Count & Turnover: More employees and higher turnover mean greater exposure.
  • Location: Operating in states with employee-friendly laws can impact pricing.

Finally, it’s important to see how EPLI fits with your other management liability policies. Claims can sometimes trigger coverage under multiple policies. For instance, a lawsuit against a company executive for an employment-related decision could potentially involve both your EPLI and your Directors & Officers (D&O) policy. Coordinating these policies ensures there are no gaps in your coverage.

Review Current Coverage

Ready to learn more about the EPLI risks and options for your business? Contact Brandon Patterson on our team at brandon@ownbyinsurance.com and the options you can choose from to get covered.

Fall Flood Insurance Risks: Why the Right Coverage Matters Most This Season

Posted on by Jon Blankenship

As autumn arrives and leaves begin their colorful transformation, many homeowners focus on seasonal preparations like winterizing their homes and clearing gutters. However, one critical aspect often gets overlooked: flood insurance risks coverage.

Fall presents unique flooding challenges that can catch property owners off guard, making this season particularly important for evaluating your flood protection. The first thing to note is that most Home Insurance policies exclude coverage for flooding. So, what else do you need to know, and how can you get covered?

Why Fall Creates Perfect Flooding Conditions

Increased Precipitation Patterns

Fall weather systems bring distinct flooding challenges. As warm air masses collide with cooler temperatures, atmospheric conditions create more intense precipitation events. The National Weather Service reports that autumn accounts for approximately 25% of annual flood-related insurance claims, despite representing just three months of the year.

Rainfall patterns become less predictable during fall months. Unlike summer’s brief afternoon thunderstorms or winter’s steady precipitation, autumn storms often arrive as prolonged systems that saturate soil and overwhelm drainage systems. These extended weather events create cumulative flooding effects that can persist for days or weeks.

Hurricane Season Overlap

Hurricane season officially runs from June through November, with peak activity occurring between August and October. Fall hurricanes present unique risks because they often combine with existing weather fronts, creating compound flooding scenarios.

Recent data from the National Hurricane Center shows that 40% of hurricane-related flood damage occurs during September and October storms. These late-season hurricanes frequently interact with cooling air masses, producing extraordinary rainfall amounts over wide geographic areas.

Hurricane Florence in 2018 exemplifies this pattern. Despite weakening to a tropical storm, Florence dumped over 30 inches of rain across North Carolina during September, causing catastrophic inland flooding far from coastal areas. Many affected properties had never experienced flooding and lacked adequate insurance coverage.

Ground Conditions and Drainage Challenges

Autumn’s changing landscape creates additional flood vulnerabilities. Fallen leaves clog storm drains, gutters, and natural waterways, reducing their capacity to handle normal water flow. A single heavy rainfall event can quickly overwhelm compromised drainage systems.

Soil conditions also shift during fall. As vegetation dies back and root systems become less active, soil loses its natural water absorption capacity. Compacted ground from summer drought conditions may struggle to absorb autumn precipitation, leading to increased surface runoff.

Geographic Risks Beyond Traditional Flood Zones

Inland Flooding Patterns

Many people associate flood insurance with coastal properties or homes near major rivers. However, fall flooding frequently affects inland areas through flash floods and urban flooding scenarios. The Federal Emergency Management Agency (FEMA) reports that 20% of flood claims come from properties outside high-risk flood zones.

Inland communities face particular vulnerability during fall because they often lack robust flood preparedness infrastructure. Mountain regions experience sudden snowmelt combined with rainfall, creating flash flood conditions. Urban areas struggle with overwhelmed storm water systems as autumn precipitation exceeds summer design capacities.

The Insurance Coverage Gap

Standard Homeowners Policies Don’t Cover Floods

One of the most critical misconceptions about property insurance involves flood coverage. Standard homeowners and renters insurance policies specifically exclude flood damage. This exclusion applies regardless of flood cause – whether from hurricane storm surge, river overflow, or urban drainage failure.

Insurance industry surveys reveal that 85% of homeowners incorrectly believe their standard policies include flood protection. This knowledge gap leaves millions of properties financially vulnerable to fall flooding events.

National Flood Insurance Program Basics

The National Flood Insurance Program (NFIP) provides the primary source of flood coverage for American properties. Administered by FEMA, the NFIP offers standardized policies available through licensed insurance agents nationwide.

NFIP coverage includes two main components:

  • Building coverage protects the structure and permanently installed items
  • Contents coverage protects personal belongings and movable property

However, NFIP policies require a 30-day waiting period before coverage becomes effective. This timing requirement makes fall preparation particularly important, as you cannot purchase coverage when severe weather threatens your area.

Private Market Alternatives

Private flood insurance has expanded significantly over the past decade, offering alternatives to NFIP coverage. Private insurers often provide higher coverage limits, additional protection options, and sometimes more competitive pricing.

Companies like Neptune, Palomar, and Wright National offer private flood policies with features like:

  • Coverage amounts exceeding NFIP limits
  • Replacement cost coverage for personal property
  • Additional living expenses during displacement
  • Business interruption coverage for commercial properties

Review Current Coverage

Start by examining your existing insurance policies. Contact Brandon Patterson on our team at brandon@ownbyinsurance.com to clarify exactly what flood-related coverage you currently have – or don’t have – and the options you can choose from to get covered.

Insurance for NEMT Companies: Protecting Your Business and Patrons

Posted on by Jon Blankenship

Running a non-emergency medical transport (NEMT) company means taking on unique responsibilities. You’re not just moving people from point A to point B – you’re caring for vulnerable patients who depend on safe, reliable transportation to reach medical appointments that could impact their lives.

This specialized role comes with distinct risks that standard business insurance won’t cover. From vehicle accidents involving wheelchair-accessible vans to liability claims from patient injuries, NEMT companies face challenges that require specific insurance protection.

In this guide, we’ll explore the specific risks your NEMT business faces and the insurance coverages that can protect you, your employees, and the patients you serve.

Understanding NEMT Business Risks

Vehicle-Related Risks

NEMT vehicles spend more time on the road than typical commercial vehicles, increasing accident exposure. Your drivers navigate various weather conditions, traffic patterns, and unfamiliar routes while operating specialized equipment like wheelchair lifts and stretchers.

Consider this scenario: Your driver is transporting an elderly patient to dialysis when another vehicle runs a red light and crashes into your van. The patient suffers additional injuries, your vehicle sustains $40,000 in damage, and your driver requires medical treatment for whiplash. Without proper coverage, this single incident could financially devastate your business.

Patient Care Liability

Unlike standard transportation services, NEMT companies provide care during transport. You’re responsible for patient safety from pickup to drop-off, including proper securement in wheelchairs, assistance with mobility devices, and monitoring during the journey.

Imagine your employee fails to properly secure a patient’s wheelchair, causing them to fall during transport and break their hip. The resulting medical bills, rehabilitation costs, and potential lawsuit could reach hundreds of thousands of dollars.

Employment-Related Risks

Your drivers handle intimate patient care tasks, access personal health information, and work in patients’ homes. This creates exposure to discrimination claims, privacy violations, and allegations of inappropriate conduct.

Regulatory Compliance Risks

NEMT companies must comply with Department of Transportation regulations, Americans with Disabilities Act requirements, and state medical transport licensing. Non-compliance can result in fines, license suspension, or lawsuit vulnerability.

Essential Insurance Coverage for NEMT Companies

Commercial Auto Insurance

Standard personal auto policies won’t cover your business activities. Commercial auto insurance provides crucial protection for your fleet and operations.

Coverage components include:

  • Liability protection for bodily injury and property damage
  • Collision and comprehensive coverage for your vehicles
  • Medical payments for injured passengers
  • Uninsured/underinsured motorist protection

NEMT companies typically need higher liability limits than standard commercial vehicles due to patient vulnerability. Consider minimum limits of $1 million per occurrence, though many companies carry $2-5 million for adequate protection.

Real-world example: A NEMT van rear-ends another vehicle while transporting three dialysis patients. All passengers suffer neck injuries requiring ongoing treatment. With $1 million in liability coverage, the insurance company handles medical expenses, lost wages, and legal fees, protecting your business assets.

General Liability Insurance

This foundational coverage protects against claims arising from your business operations, including patient injuries that occur outside vehicle accidents.

Protection includes:

  • Slip and fall injuries at your facility
  • Patient injuries during loading/unloading
  • Property damage at patient locations
  • Advertising injury claims

Scenario: While helping a patient into their home, your employee accidentally knocks over and breaks an expensive personal item. General liability insurance covers the replacement cost, preventing an out-of-pocket expense that could strain your cash flow.

Professional Liability Insurance

Also called errors and omissions (E&O) insurance, this coverage protects against claims alleging negligent performance of professional services.

Coverage applies to:

  • Failure to follow patient care protocols
  • Medication administration errors
  • Improper patient handling techniques
  • Documentation mistakes affecting patient care

Case study: Your company’s care plan requires a patient to arrive at dialysis by 10 AM, but traffic delays cause a 30-minute late arrival. The patient misses their treatment, experiences complications, and claims your negligence caused their deteriorated condition. Professional liability insurance covers legal defense costs and potential settlements.

Workers’ Compensation Insurance

Required in most states, workers’ compensation protects employees injured on the job while shielding you from related lawsuits.

NEMT-specific considerations:

  • Repetitive lifting injuries from patient transfers
  • Back injuries from wheelchair securement
  • Stress-related conditions from patient care responsibilities
  • Vehicle accident injuries

Example: Your driver injures their back while operating a wheelchair lift for a 300-pound patient. Workers’ compensation covers medical treatment, rehabilitation, and partial wage replacement during recovery, while preventing the employee from suing your company.

Cyber Liability Insurance

NEMT companies handle sensitive patient health information, making them attractive targets for cybercriminals. Data breaches can result in massive fines, notification costs, and reputation damage.

Protection includes:

  • Data breach response costs
  • Regulatory fines and penalties
  • Credit monitoring for affected patients
  • Business interruption from cyber attacks

Commercial Property Insurance

This coverage protects your physical business assets, including your facility, medical equipment, and office contents.

Considerations for NEMT companies:

  • Wheelchair lifts and medical equipment in vehicles
  • Specialized communication systems
  • Patient records and computers
  • Building improvements for accessibility compliance

Work with Specialized Agents

Insurance agents familiar with NEMT operations understand your unique risks and can recommend appropriate coverages. They’ll help you navigate complex requirements and find competitive pricing from insurers who understand your industry.

Brandon Patterson from our team has experience with these risks and is ready to help you. Contact him today at brandon@ownbyinsurance.com to get the coverage info you need!

Insurance Risks Every Dental Practice Must Know

Posted on by Jon Blankenship

Operating a dental practice can be an impactful and rewarding career, but it comes with its fair share of challenges and vulnerabilities. Having the right dental practice insurance coverage for your dental practice is not just a legal or business formality – it’s a vital safeguard for your practice’s longevity and reputation. From malpractice claims to cyber threats, dental practices face unique risks that could jeopardize their operations if not addressed proactively.

This blog outlines the key risks dental practices should be aware of and how insurance coverage can mitigate them, ensuring peace of mind for both your business and your patients.

Be Specific When Seeking Dental Practice Insurance

Dental practices operate in an environment where precision and patient trust are paramount. However, even with the highest standards of care, unexpected issues can arise. Malpractice claims, natural disasters, or even an employee lawsuit could severely disrupt your practice—or worse, lead to permanent closure. Insurance coverage acts as a safety net, ready to protect what you’ve worked so hard to build.

By understanding your practice’s unique vulnerabilities, you can take proactive steps to secure the right policies, ensuring that you are prepared for whatever comes your way.

Key Risks Dental Practices Should Address

1-Malpractice Claims

No matter how skilled you are, mistakes can happen in patient care. Misdiagnoses, procedural errors, or perceived negligence could lead to malpractice lawsuits, costing you both financially and reputationally.

How Insurance Helps
Professional liability insurance (also known as medical malpractice insurance or “MedMal”) is essential for helping cover legal costs, settlements, or judgments associated with these claims. A robust policy ensures that one misstep doesn’t threaten your entire practice.

Risk Mitigation Tips

  • Document patient records meticulously.
  • Stay updated on the latest industry best practices and continuing education.
  • Communicate transparently with patients about procedures and risks.

2-Property Damage

Dental practices are equipped with expensive machinery and facilities designed to deliver precise care. Events like fires, floods, or earthquakes can cause costly damage, disrupting your ability to serve patients. And some of these perils may not be covered by standard property insurance policies.

How Insurance Helps
Commercial property insurance covers damages to your building, equipment, and other assets due to covered perils like natural disasters or theft. Tailoring this policy to include coverage for specialized dental equipment is crucial, and making sure specific risks like flooding are covered can be critical depending on your level of risk.

Risk Mitigation Tips

  • Conduct regular maintenance on equipment and infrastructure.
  • Install fire alarms, security cameras, and robust cybersecurity measures.
  • Ensure policy limits accurately reflect your practice’s property value.
  • Understand what might be excluded from your policies and how much risk you have for those exclusions.

3-Cyber Threats

With patient data becoming increasingly digitized, dental practices face a growing threat of cyberattacks. Data breaches can expose sensitive information, leading to lawsuits, regulatory fines, and loss of patient trust.

How Insurance Helps
Cyber liability insurance may help protect against costs related to data breaches, including customer notifications, data recovery, legal fees, and public relations efforts. It’s an essential layer of protection in the digital age.

Risk Mitigation Tips

  • Implement secure, encrypted systems for storing and transmitting patient data.
  • Train employees regularly on cybersecurity protocols.
  • Invest in a reliable cybersecurity infrastructure with regular software updates.

4-Employee-Related Liabilities

Your team is integral to your success, but employment practices carry risks. Disputes over pay, discrimination claims, or workplace injuries can lead to legal entanglements or compensation claims.

How Insurance Helps

  • Workers’ compensation insurance covers medical expenses and lost wages for employees injured on the job.
  • Employment practices liability insurance (EPLI) addresses claims such as harassment or wrongful termination.

Risk Mitigation Tips

  • Foster a workplace culture of respect and compliance with labor laws.
  • Regularly update employee handbooks with clear policies and procedures.
  • Document all employment-related actions thoroughly.

5-Business Interruption

What happens if a natural disaster, pandemic, or unforeseen event forces your practice to shut down temporarily? Loss of income during this time can be devastating.

How Insurance Helps
Business interruption insurance compensates you for lost income and ongoing expenses, like rent and payroll, during periods of temporary closure due to covered events.

Risk Mitigation Tips

  • Develop a business continuity plan to reduce recovery time.
  • Diversify revenue streams, such as offering tele-dentistry or selling dental care products.
  • Regularly review and update your insurance coverage to align with your practice’s evolving risks.

Ensure Peace of Mind for Your Practice

There’s no one-size-fits-all solution when it comes to protecting your dental practice. Every practice faces a unique combination of risks, and securing the right insurance coverage is the foundation of a strong risk management strategy.

Don’t wait until an incident occurs. Contact Brandon Patterson on our team today to discuss your coverages. Call 865.453.1414 or email brandon@ownbyinsurance.com.

 

Risks to Ponder When Considering Insurance for Alarm Installers

Posted on by Jon Blankenship

Alarm installers, whether operating in residential or commercial markets, play a vital role in ensuring safety and security. However, the work they perform and the services they provide expose them to a wide range of risks. Without proper insurance for alarm installers, these risks can have significant financial and legal implications, potentially jeopardizing the long-term success of their business.

To safeguard their operations, alarm installers must understand the specific hazards associated with their profession and the coverage options available to mitigate them. Below, we explore critical risks to consider and why tailored coverage is a must for alarm installation professionals.

Common Risks Faced by Alarm Installers

Alarm installation professionals are exposed to numerous risks during day-to-day operations. These include both external exposures and potential liabilities arising from their own business activities. Here are the key challenges they face:

Liability Claims

Mistakes in installation or failure of installed systems can expose alarm installers to claims of negligence. For example, if an alarm system fails during a break-in due to improper installation, the client may hold the installer accountable. General liability insurance can help cover legal fees, settlements, and damages arising from such claims.

Property Damage

Whether on a customer’s premises or off-site, damage to property is a plausible risk. Accidentally damaging walls, electrical systems, or valuables while installing equipment can leave installers liable for the cost of repairs. Investing in property coverage protects against these incidents.

Employee Theft

While rare, cases of employees stealing from client premises can harm the installer’s reputation and finances. Third-party crime coverage specifically addresses this risk, protecting businesses from losses resulting from employee theft of client property.

Bodily Injury

Accidents can occur during installations, leading to injuries among employees or clients. An installer may drop heavy equipment causing harm, or a client may trip over tools on-site. Workers’ compensation insurance can cover employees, while general liability insurance addresses third-party bodily injury claims.

Cyber Liability

With alarm systems increasingly connected to online platforms, exposure to cyber threats is higher than ever. Hackers may target alarm systems to gain unauthorized access or disrupt operations. Cyber liability coverage can mitigate risks related to data breaches or cyberattacks, covering costs like regulatory fines, legal fees, and data recovery.

Commercial Auto

Alarm installation businesses often rely on vehicles to transport tools and equipment, making them vulnerable to auto-related incidents. Commercial auto insurance covers accidents, theft, and damage involving company vehicles, ensuring that transport-based operations remain uninterrupted.

Inland Marine

Protecting tools and equipment during transportation is critical for alarm installers. Inland marine insurance acts as a “floater” policy, covering items in transit or stored at off-site locations. This ensures that critical equipment is protected, whether being moved between job sites or stored temporarily.

Tailoring Alarm Installer Insurance for Residential and Commercial Installers

The risks and associated coverage needs may differ slightly between residential and commercial alarm installers.

  • Residential Installers face unique risks related to customer interaction within private homes, such as accidental property damage or liability claims arising from defective home installations.
  • Commercial Installers, on the other hand, may encounter larger-scale risks working in commercial properties, including advanced cybersecurity challenges or employee theft involving high-value assets.

It’s vital for alarm installers to consult with specialized insurance providers to tailor a plan that comprehensively addresses their specific needs.

Recommended Insurance Coverage for Alarm Installers

To manage these risks effectively, alarm installation businesses should consider the following insurance options:

  • General Liability Insurance to address claims of negligence, bodily injury, or property damage.
  • Property Insurance to protect business-owned tools, equipment, and inventory.
  • Third-Party Crime Coverage to safeguard against client property theft by employees.
  • Cyber Liability Insurance for protection against data breaches and other cyber threats.
  • Workers’ Compensation Insurance to cover employees in the event of workplace injuries.
  • Commercial Auto Insurance to ensure the safety and reliability of business vehicles.
  • Inland Marine Insurance to cover tools and equipment during transit or storage off-site.

By investing in the right mix of coverage, alarm contractors can mitigate financial uncertainties and focus on delivering exceptional services to their clients.

Take Steps to Ensure Your Alarm Installer Insurance Coverage

Insurance is not just a safety net; it’s a fundamental part of running a resilient and professional alarm installation business. Understanding the array of risks inherent in the industry enables alarm contractors to proactively secure the right protection and safeguard their reputation and bottom line.

A Homeowner’s Guide to Additional Living Expense Insurance

Posted on by Jon Blankenship

Life can be unpredictable, it’s one of the many reasons that insurance is necessary. But as a homeowner, it’s also essential to prepare for the unexpected. Whether it’s a fire, flood, or storm that temporarily renders your home uninhabitable, knowing your insurance covers more than just repairs can provide significant peace of mind. This is where additional living expense (ALE) insurance comes into play.

If you’re unfamiliar with ALE insurance or how it works, this guide breaks it down step-by-step, ensuring you have all the information needed to safeguard your family in challenging times.

What Is Additional Living Expense Insurance?

Additional Living Expense insurance is part of your homeowners, renters, or condo insurance policy. It covers the extra costs you’ll face while your home is being repaired or rebuilt after a covered event, such as a natural disaster or fire. These are costs you wouldn’t normally incur if you were able to live at home.

Examples of expenses covered by ALE:

  • Hotel accommodations or temporary rental housing
  • Increased food costs due to dining out
  • Storage fees for your belongings
  • Laundry services if you don’t have access to a washer and dryer
  • Pet boarding fees
  • Relocation or transportation costs

ALE coverage typically ranges from 10% to 20% of your home’s dwelling coverage limit. For instance, if your homeowners insurance covers $300,000 for your dwelling, your ALE coverage would likely fall between $30,000 and $60,000.

Benefits of ALE Insurance for Homeowners

Having ALE insurance ensures you and your family can maintain stability and comfort during tough times. Here’s why it’s essential:

  • Financial Relief: Covers unexpected out-of-pocket expenses, like paying for a hotel or temporary apartment.
  • Maintains Normalcy: Allows you to uphold your usual standard of living, even away from home.
  • Stress Reduction: Eases the logistical and financial burdens of displacement, letting you focus on getting your home back to normal.
  • Protects Your Budget: Home repair costs alone can be overwhelming; ALE ensures additional living expenses don’t add to the stress.

How Additional Living Expense Insurance Works

To better understand how ALE coverage functions, imagine this scenario:

A water pipe bursts in your home, causing significant flooding. The damage requires months of repairs, leaving your home uninhabitable. During this time:

  1. You move into a nearby hotel, which costs $150 per night.
  2. Since you no longer have a kitchen, you eat out, spending an additional $300 each week.
  3. You board your dog because pets aren’t allowed in the hotel, which costs $100 per week.

These expenses are above your usual budget, and ALE coverage reimburses these additional costs. However, you must keep receipts and documentation for all expenses as the insurance provider will need proof to process your claim properly.

Pro Tip: ALE insurance covers only the difference between your standard living costs and your temporary increased expenses. For example, if you usually spend $100 per week on groceries but now spend $300 eating out, only the extra $200 is reimbursable.

Key Differences Between ALE and Loss of Use Insurance

Though ALE and loss-of-use insurance are similar, they aren’t interchangeable.

  • ALE Insurance specifically covers the additional costs incurred due to displacement, such as food, lodging, and travel.
  • Loss of Use Insurance covers broader expenses, such as loss of income if you were renting part of your home to a tenant. It’s more commonly included in homeowners insurance policies.

Knowing the distinctions ensures that you aren’t left with gaps in coverage.

Common Exclusions to Be Aware Of

While ALE insurance is a valuable safety net, there are certain circumstances it typically won’t cover:

  • Vacant Properties: If your home wasn’t occupied at the time of the incident.
  • Maintenance Issues: Damage caused by gradual wear and tear or lack of maintenance isn’t covered.
  • Uninsured Events: For example, if flooding occurs and your policy doesn’t include flood insurance, ALE won’t apply.
  • Illegal Activities: Claims related to incidents stemming from unlawful behavior are excluded.
  • Government Actions: If you’re displaced due to government-mandated actions, coverage likely won’t extend.

To maximize your coverage, review your policy carefully and ask your provider about potential exclusions.

The Bottom Line

Additional Living Expense insurance is a crucial yet often overlooked aspect of homeowners insurance. It ensures your family can maintain a sense of normalcy during a crisis, covering extra costs when life circumstances temporarily uproot you.

While no one hopes to need ALE coverage, having it offers tremendous peace of mind. By being proactive, knowing your policy’s limits, and keeping meticulous records, you can protect your family and finances when the unexpected occurs.

For more helpful insurance tips or to explore coverage options that fit your lifestyle, contact Brandon Patterson on our team today at brandon@ownbyinsurance.com.

A Guide to Insurance Coverage for Zip Line & Aerial Attractions

Posted on by Jon Blankenship

A zip line attraction brings excitement for your customers – and likely for you as well. However, it also carries significant risks. From ensuring customer safety to protecting your property and equipment, having the right insurance coverage is essential. With this guide, we’ll walk you through the key considerations for insuring your zip line or aerial attraction business and provide actionable insights into mitigating risks.

Why the Right Insurance is Critical for Zip Line Attractions

Zip line attractions combine adventure and thrill, but they also pose unique liability and operational challenges. Whether you’re running an outdoor aerial park or a single zip line, unexpected events such as accidents, property damage, and equipment malfunctions could lead to significant financial loss if you’re not adequately insured.

The right insurance coverage not only protects your business but also offers peace of mind, giving you the confidence to focus on providing exceptional customer experiences.

Key Risks Associated with Zip Line Attractions

Before selecting an insurance policy, it’s important to understand the primary risks associated with zip line operations:

  • Liability Risks: Injuries to participants or staff could lead to extensive legal and financial consequences.
  • Property Risks: Damage to your property, such as platforms, cables, and harnesses, caused by weather events or vandalism.
  • Equipment Risks: High-use equipment like pulleys, harnesses, and braking systems can fail, impacting customer safety and your bottom line.
  • Accident and Medical Risks: Injuries, whether minor or severe, require prompt medical attention, and insurance coverage can help with these costs.

Types of Insurance Coverage for a Safer Operation

To ensure your business is well-protected, consider these essential types of insurance for zip line attractions:

  1. General Liability Insurance
    General liability insurance is a must-have for any adventure business. It covers claims arising from injuries or property damage caused by the operation of your zip line attractions. This includes:
    • Medical expenses for injured customers.
    • Legal fees if a claim leads to a lawsuit.
    • Accidental damage to a customer’s belongings.Given the inherent risks of zip lining, liability insurance ensures you’re covered in case of unforeseen incidents while providing a secure experience for your customers.
  2. Property Insurance
    Your zip line infrastructure represents a significant investment, and property insurance protects it against natural disasters, theft, or vandalism. For instance, if a storm damages your platforms or zip line cables, property insurance helps cover repair or replacement costs.
  3. Workers’ Compensation
    Zip line attractions often rely on trained staff to maintain safety protocols and guide participants through their activities. Workers’ compensation insurance protects your employees by covering medical expenses and lost wages if they are injured on the job.
  4. Accident and Medical Insurance
    Sometimes, despite your best efforts to maintain safety, accidents occur. Accident and medical insurance is designed to cover participant injuries on-site, ensuring they receive medical attention without significant costs falling on your business.
  5. Equipment Insurance
    Equipment failures can lead to disruptions in your operation, high repair costs, and even accidents. Equipment insurance protects your investment in harnesses, pulleys, zip line cables, and other gear, ensuring they can be repaired or replaced promptly.
  6. Umbrella and Excess Liability Insurance
    For additional peace of mind, umbrella policies offer extra liability coverage beyond the limits of your general liability or existing policies. They are particularly useful for high-risk industries like zip line attractions where standard limits may not suffice.

For additional peace of mind, umbrella policies offer extra liability coverage beyond the limits of your general liability or existing policies. They are particularly useful for high-risk industries like zip line attractions where standard limits may not suffice.

Steps to Finding the Right Insurance

Finding the ideal insurance coverage requires a strategic approach. Follow these steps to secure the best protection for your business:

Step 1: Assess Your Risks
Begin by evaluating the specific risks involved in your zip line operations. Are you located in an area prone to severe weather? Do you offer intensive, high-risk courses? Understanding your unique challenges will help guide your insurance needs.

Step 2: Explore Specialized Providers
Not all insurers understand the complexities of zip line operations, which is why partnering with a specialized provider (like Granite Insurance, for example) can make a significant difference. These providers understand the nuances of the industry and can design policies tailored to your needs.

Step 3: Compare Policies and Coverage
When comparing policies, carefully review coverage limits, inclusions, and exclusions. Look for potential gaps (or “landmines”) in coverage that could leave your business vulnerable.

Step 4: Understand Legal and Industry Standards
Referencing industry standards, such as those from the Association for Challenge Course Technology (ACCT), ensures your insurance complies with industry best practices and legal requirements.

Step 5: Keep Coverage Updated
Your business will evolve over time, whether by expanding courses or adding features. Regularly update your insurance coverage to ensure it aligns with your operation’s current scope.

Secure Your Zip Line Business Today

Protecting your zip line attraction with the right insurance coverages means more than financial security; it demonstrates your commitment to the safety and enjoyment of your customers.

If you’re ready to explore tailored insurance solutions for zip line attractions and aerial adventure parks, now is the time to act. Contact Brandon Patterson on our team at brandon@ownbyinsurance.com to get started on your coverage needs today!

12 Essential Insurance Coverages for Pest Control Professionals

Posted on by Jon Blankenship

Owning a pest control business brings its unique challenges and risks. From managing hazardous chemicals to operating specialized equipment and maintaining customer trust, pest control professionals face diverse exposures daily. These risks make insurance coverages for pest control professionals a must-have for protecting your company, your employees, and your clients.

Here are 12 key insurance coverages pest control businesses need to ensure peace of mind and a secure foundation for growth.

General Liability Insurance

Why General Liability Coverage is Essential

This foundational coverage safeguards your business against claims for bodily injury or property damage caused during pest control operations. For example, if a technician accidentally spills chemicals that damage a client’s flooring, general liability may cover the costs.

  • Key Features
    • Coverage for accidents on client premises
    • Coverage for some legal liability
    • Medical expenses coverage

Professional Liability Insurance

Why Professional Liability Coverage is Essential

Even skilled professionals can make errors or face allegations of negligence. Professional liability insurance, also known as Errors & Omissions (E&O) coverage, protects against claims of unsatisfactory work or failing to meet professional standards, like mishandling a termite inspection.

  • Key Features
    • Protection for errors in service delivery
    • Coverage for legal defense costs

Products/Completed Operations Insurance

Why Operations Coverage is Essential

Your work doesn’t stop at service delivery. Completed operations coverage shields your business from claims stemming from products used or services rendered, ensuring you’re protected even after a job is done. For instance, if a pesticide application leads to property damage after your team has left, this coverage applies.

Contractual Liability Insurance

Why Contractual Liability Coverage is Essential

Client contracts often include liability clauses. Contractual liability coverage ensures you can meet these obligations and handle associated costs if disputes arise regarding your agreement.

Workers’ Compensation Insurance

Why Workers’ Comp Coverage is Essential

If you’re running a business with employees, workers’ compensation is non-negotiable (and may be required by law). It covers medical expenses, lost wages, and rehabilitation costs in case of work-related injuries. For a pest control professional handling heavy equipment or chemicals, this is critical.

Commercial Property Insurance

Why Commercial Property Coverage is Essential

Just as you protect client properties, you also need to safeguard your office, equipment warehouses, and tools. Property insurance ensures you’re covered in the event of fire, theft, or other unforeseen circumstances.

  • Key Features
    • Replacement cost coverage
    • Equipment breakdown

Commercial Auto Insurance

Why Commercial Auto Coverage is Essential

Your vehicles are your lifeline, transporting equipment and employees to job sites. Commercial auto insurance covers accidents, damages, or liability issues that occur while operating business vehicles.

Crime Insurance

Why Crime Coverage is Essential

Employee dishonesty, theft, or fraud can happen in any business. Crime insurance provides protection against such incidents and keeps your business resilient.

Inland Marine Insurance

Why Inland Marine Coverage is Essential

Do you transport tools and equipment from job to job? Inland marine insurance safeguards items damaged or stolen while off-premises.

Umbrella Insurance

Why an Umbrella Coverage is Essential

Sometimes, claims exceed the limits of your standard policies. Umbrella insurance provides an added layer of protection to cover those higher costs, giving you peace of mind during catastrophic events.

Bonds

Why Bonds are Essential

Bonds, such as license and permit bonds, help ensure compliance with regulatory requirements. Business service bonds and ERISA bonds protect your clients or employees by adding financial security.

Cyber Liability Insurance

Why Cyber Liability is Essential

Pest control businesses increasingly rely on digital systems for scheduling, billing, and client communications. Cyber liability insurance protects against data breaches, ransomware attacks, and other cyber threats that could compromise sensitive customer and business information.

Reduce Your Risks and Strengthen Your Business

Investing in the right insurance coverage not only protects your pest control business from financial risks but also positions it as a trusted service provider. Clients feel more confident hiring a business that’s fully insured, knowing they’re protected in case something goes wrong.
Are you ready to secure your pest control business with the coverage it deserves? Contact Brandon Patterson on our team today at brandon@ownbyinsurance.com to explore specialized insurance programs tailored to your industry.