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Tag: General Liability Insurance

How Much Insurance Does Your Business Need?

Posted on by Ownby Insurance Service

Owning a business is a lot of work. It often involves managing people, making decisions, keeping track of many things at once, marketing, selling, and a slew of other tasks. When it comes to insurance, most business owners don’t have the time or resources to seek out what they need on their own. They rely on an agent to help them assess their risks and review their policy options. But even with an agent involved, it is best to understand your coverages and what insurance you may not have as well. So, how “much” do you need? Let’s review a few of the ways to find out.

Do You Sell Product(s) or Services?

Whether you offer products or services significantly affects your insurance needs. If you sell products, you may need product liability insurance to protect against claims related to product defects or injuries caused by your products. On the other hand, if you provide services, professional liability insurance (also known as errors and omissions insurance) can cover claims related to professional mistakes or negligence.

Do You Own or Lease Property for Business?

If you own or lease property for your business, you need to consider commercial property insurance. This type of insurance covers damages to your building, equipment, inventory, and other physical assets due to incidents like fire, theft, or vandalism. For those leasing property, make sure to check the terms of your lease to understand your insurance responsibilities.

Do You Have Employees?

Having employees introduces additional risks and responsibilities. You’ll need workers’ compensation insurance to cover medical expenses and lost wages for employees who get injured on the job. Additionally, employment practices liability insurance can protect against claims related to employee rights violations, such as wrongful termination or discrimination.

Do You Have Vehicles You Use for Business?

If your business uses vehicles for operations, commercial auto insurance is essential. This insurance covers damages and liability in case of accidents involving your business vehicles. Make sure to include coverage for all vehicles used for business purposes, whether they are owned, leased, or rented.

Do You Store Client/Customer Data?

In today’s digital age, data breaches and cyberattacks are significant threats to businesses. If you store client or customer data, consider investing in cyber liability insurance. This insurance helps cover costs associated with data breaches, including legal fees, notification expenses, and credit monitoring for affected individuals.

Additional Coverages

Apart from the key considerations mentioned above, there are other types of insurance you may need based on your specific business needs:

  • General Liability Insurance: Covers a wide range of risks, including bodily injury, property damage, and advertising injury. This coverage is often included in the base policy for your business, such as in a Business Owners’s Policy (BOP).
  • Business Interruption Insurance: Compensates for lost income if your business operations are halted due to a covered event, such as a natural disaster.
  • Directors and Officers (D&O) Insurance: Protects your company’s leadership against personal losses resulting from legal actions taken against them due to their corporate decisions.

What About the Dollar Amount?

Are recent Blog on Total Insurable/Insured Value (TIV) may be able to help you calculate the amount you should have for the total insured limits on your policy. There are many factors involved here, and we’d encourage you to read more about it!

Even with all the above in mind, there may be risks that are very specific to the work you do. It is best to discuss your business with a licensed agent to really determine what you may need. Contact Brandon Patterson on our team if you’d like to discuss your business’s insurance!

What Does a “High Net Worth” Client Look Like in Insurance?

Posted on by Ownby Insurance Service

You may have seen the term “high net worth” somewhere and thought, “That’s not me, we’re not ‘rich’ we’re just upper middle class.” But when it comes to insurance, high net worth is more about value than wealth.

Consider homes as an example. A high value home is typically one that is valued at $750,000 or higher. With inflation and today’s property values, your home may fall in that range now, even if you didn’t pay that much to buy it. But if the size, location, and/or values of homes around you have increased – your home likely is worth more too.

In addition, do you have a more expensive vehicle? What about multiple vehicles? Do you have a boat, RV, ATV, or other additional vehicles? Do you have a gun collection, jewelry, or other personal property that might be worth more than your current policy’s limits. All these things add up, and they may need more coverage than is offered by “standard” home and auto policies.

Property isn’t the only place you face risk; you have personal liability as well. And the more you have, the more you may be sued for if someone feels you are responsible for some type of “damage” to them. Lawsuits are more common now, as are larger court judgments and settlements. Having more coverage for personal liability can help protect you and your assets.

So, do you need “special” coverage?

Maybe not “special” coverage, but you very well might need “different” coverage. Important things to check include:

  • Property limits on your policy – are they high enough for the value?
  • Coverage language like Replacement Cost versus Actual Cash Value – would you want to pay the difference if you had a claim?
  • Liability limits on your policy – lawsuits can be costly and adding more may not be as expensive as you’d think.

Things you should consider to better protect yourself:

  • Get the current property value of your home assessed and match your policy limits closer to that value
  • Take precautions to protect your property like home security systems, protection devices, home & roof inspections, and discussing safety with your family
  • Discuss valuable items like jewelry, firearms, and collections with your insurance agent to see if they need to scheduled on your policy
  • Consider a Personal Umbrella Policy (PUP) for additional protection

Make sure you understand your current policies, coverages, and limits. Review what you have and what you may need on a regular basis to make sure changes have been accounted for properly. It can make a huge difference in your protection whether you’re high net worth or not!

Want more tips to help better protect yourself and your family? Need a policy review? Contact Brandon from our team at brandon@ownbyinsurance.com or 865-453-1414 today.

No Coverage for Earthquakes? Don’t be at Fault!

Posted on by Ownby Insurance Service

As you likely know, there are two fault lines that run through Tennessee. The first is the New Madrid Fault, which runs approximately 120 miles south from Charleston, Missouri, and part of West Tennessee, near Reelfoot Lake, extending southeast into Dyersburg, Tennessee. The second is the East Tennessee fault line, which runs from Chattanooga through Knoxville and on to North Carolina.

What you may not know is that most property insurance policies exclude damage from earthquakes. And while we haven’t had a major earthquake in Tennessee in the last 100 years, that doesn’t mean they can’t occur. So, what would you need for coverage, and how do these policies work? Let’s discuss it.

How Earthquake Insurance Works

Earthquake insurance provides protection from the shaking and cracking that can destroy buildings and personal possessions. And while there are certainly scenarios where major damage can occur, one of the more common issues is the damage earthquakes can cause to foundations and walls of a building. This shifting, cracking, and movement can be very costly and may also damage the structural integrity of your building(s).

If a fire, electrical damage, or water line damage occurs as a result of an earthquake, there is a good chance your current property policy may provide coverage for those losses. But direct damages from the earthquake, whether to your building, auto, or personal property, are unlikely to be covered by non-earthquake insurance policies.

It’s important to know that earthquake insurance carries a deductible, and this is generally in the form of a percentage rather than a dollar amount. That is somewhat unique compared to other coverages and could be an unpleasant surprise if you don’t understand it in a claims scenario. As an example, an earthquake insurance policy may have a 10% deductible, meaning that if the home is replaced at a cost of $250,000, the homeowner would have a $25,000 deductible. These deductibles may be as high as 20%, which can mean a very significant cost to the homeowner.

Earthquake Insurance Costs

The cost of earthquake insurance can also vary a lot, depending on location, how your structure is built, and the materials used. These policies are provided by private insurance companies, and not the government like many flood insurance policies. As such, earthquake insurance needs to be reviewed and compared to understand the coverages and costs.

Does your home or business property need earthquake insurance? It’s likely a good idea to have a policy in place for it. While we don’t expect an earthquake anytime soon, the science to predict them is not advanced enough to detect them in advance and one could occur at any time.

Contact Brandon Patterson on our team at brandon@ownbyinsurance.com or call 865.453.1414 and he’ll help you review your options.