Property insurance?

In addition to covering the physical business structure, property insurance covers personal property. This includes inventory, office furnishings, raw materials, computers, machinery and other items that are part of business operations. Property insurance coverage doesn’t end with protecting physical assets. It also affords operating funds when business owners must take steps to get their business back on track following major loss. Property insurance may provide coverage for broken equipment in some cases. It may also provide coverage for water damage, debris removal following a fire and several other specific items.

Business vehicle insurance?

Anyone who uses their own personal vehicle for business purposes should discuss this type of coverage with their agent. Most personal vehicle insurance policies don’t provide coverage if the automobile.surance?

The third type of coverage most small businesses purchase is liability insurance. This is because any business may face a lawsuit at some point in today’s litigious society. For example, a person may claim that a business caused them harm from a service error, defective product or negligence in providing a safe environment.

In nearly every state, employers are required by law to have workers compensation coverage if they have employees. This number usually varies from three to five, and even if a business has less than three employees, it is still wise to purchase this coverate. Workers compensation pays for a portion of lost wages for workers who are injured. In addition to this, it also covers the medical care they require. Coverage is provided to employees who are injured at work regardless of who is at fault. If workers die as a result of the injuries they sustain, the insurance company compensates the surviving family members of the deceased worker.

Umbrella policies, much like an umbrella, cover above and beyond the normal inclusions. These are usually obtained to prevent high losses by businesses with high risks. Specialized liability policies are made up of several types of individual coverage.

Find out which options are best for your individual busines.

If a vendor, contractor, cleaning crew, gardener/arborist, or other service provider does not have insurance, you may be out of luck if they cause property damage or injury. Also, people who do not carry insurance are probably less likely responsible than those who are insured. They may not be the ideal people you would want to hire. It’s worth paying a little more to get someone who is insured.
Never just take the word of a vendor. Many who are not insured may say “yes” because it’s likely they don’t want to embarrass themselves. Instead, ask them to have their broker send a certificate of insurance. By having their broker send (fax or email) it to you, you know the policy has been paid for and has not been cancelled.
Some vendors, especially small firms, will try to convince you that they do not need insurance. Do not fall into this trap as you will be letting an amateur convince you to purchase product or service that lacks the protections an insurance policy provides. As a courtesy to existing clients, we can give you advice on any insurance certificate that is emailed or faxed to us.

Suggestions on who you should request insurance certificates from:
• Contractors who are working on a home or commercial remodel
• Repair or installation service for your auto, home, or business
• Service contractors, such as gardening and maids/cleaning services
• Independent Contractors or Contract Employment
• Professional Services, such as such as a CPA, Consultant, Mortgage Broker, Staffing Firm, Insurance Broker, Architects/Engineers, and others who provide professional services (professional liability)
• People who rent or lease from you

Types of Insurance you should request:
• General Liability
• Workers Compensation – for operations that have workers on your premise
• Commercial Auto Coverage – for those who use vehicles on the job
• Professional Liability (Errors & Omissions Insurance) – for those who provide professional services

Should you request a certificate for every purchase? It’s your call, but if someone is entering your premise or you are purchasing a bigger ticket item, you should strongly consider asking for insurance documentation.

It can be hard to evaluate what health insurance plan is the best fit for you if you don’t have a basic knowledge of insurance industry lingo and terminology. In order to help you decide what’s best for you here’s a few common terms that will help you make more informed decisions on what best fits your needs:
Exclusions: the services that will not be covered under a health insurance policy. Exclusions vary per provider, but cosmetic surgery, experimental treatments, or home care would be examples of common exclusions.
Co-payment: the fixed out-of-pocket amount that you will pay for each medical service or prescription before the health insurance provider begins to pay for the service or prescription. This amount will also vary per policy, but usually range from $10.00 to $50.00.
Co-insurance: the percentage of the total cost that you will pay for a medical expense. Co-insurance may be in lieu of a co-payment or in addition to it. It also varies per policy, but a common arrangement is 20% patient payment and 80% insurance provider payment.
Deductible: the amount of out-of-pocket money you will pay before any health care expense is paid by the health insurance provider. The annual deductible can be anywhere from $500 dollars to thousands, depending on what type of insurance plan you choose.
Coverage Limits: the pre-set monetary amount that a health insurance plan will cover. Once you incur medical expenses past the limit, you will be responsible to pay the entire amount out-of-pocket. (Note: the Obama health care reform includes phasing out annual coverage limits by setting annual limits no lower than $750,000 this year, $2 million in 2012, and completely prohibiting them in 2014.)
Premium: the monthly payment amount that you pay to your health insurance provider to continue coverage.
Out-of-Pocket Maximums: the point where your payment obligation ends and the health insurance company pays all future covered medical costs. These maximum out-of-pocket expenses can be applied to a particular benefit section or the all the policy benefits.

Once you understand these terms, we can help guide you to a reputable companies that will fit your financial and personal needs.

Why Just One Speeding Ticket May Significantly Increase Your Auto Insurance Rates

With the improving weather and the sporadic rain it’s sometimes hard to keep to the speed limit. Most drivers drive faster than posted speed limits, at least now and then, and many speed every time they get behind the wheel.  It does not seem to matter that average speed limits across the country are higher now than they were a decade ago.  Whatever the speed limit is, a substantial percentage of drivers are going to push beyond it; whether it’s because they are running late, because they are not paying attention to their speed, because they have a new sports car or because they just plain enjoy driving fast!  Clearly, there are not enough highway patrol officers to give speeding tickets to all those who speed, which means that the odds always favor the speeder in terms of not getting caught and ticketed.  

Until they do have a speeding ticket, most drivers give little thought to how this may affect their auto insurance rates.  They may be in for an unpleasant surprise.  To the cost of the ticket itself may be added an even more expensive increase in their auto insurance rates.  In cases of extreme speeding, a driver’s cost for auto insurance could double even on a first offense.

Why do insurers often raise rates after only one speeding ticket?  It’s simple.  Numerous studies by highway safety experts show that “the faster you go, the more deadly it is,” says Jeanne Salvatore, spokeswoman for the Insurance Information Institute, an industry trade group. “There’s a higher possibility you’re going to cause a lot of damage to people or property.”

If you’re cited for speeding, your insurer may tack a temporary surcharge on your policy for three years.  At one large auto insurer, the surcharge may raise your rate by up to 26% the first year, then will gradually decline and disappear after three years, as long as you have no more moving violations.

The size and duration of the increase varies depending on several factors, including:

·        Your driving record and your relationship with the insurance company. Some insurers waive the surcharge if the customer has had a long relationship with the company and previously had a clean driving history.

·        Where you live. Insurance is regulated by the states, and different states have different laws regarding rate increases.  Some states don’t allow insurers to impose a surcharge for first-time speeding tickets, while others require insurers to raise rates for some speeding violations.  For example, a single male driver who lives in Phoenix and receives one speeding ticket will experience an average rate increase of 16%, but the same driver will pay no more if he lives in Philadelphia.

·        How much you were exceeding the speed limit.  An analysis by USA TODAY found that 10% of ticketed drivers in 2002 were “extreme speeders”-drivers who exceeded 90 mph or 15 mph above any speed limit.  Extreme speeding is considered reckless driving, a major violation. Even a first-time citation can more than double your insurance rates.

Speeding may also affect insurance rates other than for auto insurance.  Insurance companies may look at your driving record when deciding whether you’re a high-risk customer and could charge you higher rates for life, health, disability or long-term care insurance.

Once upon a time in the ancient past-at least 30 years ago, anyway-there was a series of public service ads on television and radio with the overall message, “Speed kills.”  One showed a clock and then a car speedometer pushing up past 65: “Don’t try to catch this hand [the clock] with this one [the speedometer],” the announcer advised.  In other words, it might be better to be late than dead or seriously injured.  It’s been a long time since there was a public campaign aimed at getting America’s drivers to slow down and save lives.  But that doesn’t mean speeding is any safer.  Speeders are still more likely to have accidents injuring themselves and/or others than drivers who obey speed limits.  An increase in insurance rates caused by speeding is troublesome, but even worse is the increased risk of death or serious injury.

• The club may fail to pay the premium on its policy, causing the insurance company to cancel it.
• The club may fail to inform the insurance company that it has purchased the vehicle the member is driving. There is no guarantee that the club’s policy automatically covers newly acquired autos.
• The club may fail to comply with a policy condition, giving the insurance company justification for denying the claim.
• The club’s policy may exclude coverage for that particular loss.
• The club’s insurance limits may not be high enough to fully cover the loss.

• His liability for injuries or damage to others,
• Medical payments for relatively minor injuries he suffers while using the car, and
• Major injuries he suffers in accidents with uninsured or underinsured motorists.

Our Home in Berkley suffered a little flooding, but compared to the rest of the Bay Area we consider ourselves fortunate. Our mission is to help our community educate itself on what insurance is, why we need it, and to get the best price for the best coverage, and so we are presenting the following article as an overview on some common misconceptions about flood insurance. If you have any questions please feel free to contact us.

Berkeley Insurance & Financial Services

Respectfully yours,

Moe Akhavi

Berkeley Insurance & Financial Services T–510-280-1687 Or  800-500-4440    Fax–510-248-4150 BIFS1.COM “Your referrals are the ultimate compliments”

Uncovering Common Misconceptions About Flood Insurance Coverage

According to the National Flood Insurance Program (NFIP), flooding is this country’s most prevalent natural disaster. In the years between 1995 and 2004, flood losses in the U.S. averaged $867 million annually. There are about 4.7 million citizens who have taken advantage of the government’s flood insurance protection, however large numbers of at-risk Americans still refuse to find coverage.  After hurricane Katrina last summer, when nearly 80% of New Orleans was underwater, it is surprising that people would not seek such coverage, since their homeowner’s policies do not insure them against floods.

Part of the problem stems from the innate sense that if it’s offered by the federal government, applying for it must be: a) tied up in red tape, and b) too complicated due to all the exclusions. Both of these statements, however, are not true. Let’s examine some of the commonly held beliefs about flood insurance:

· You can’t buy flood insurance if you are in a high-risk area. Flood insurance is available to all homeowners and businesses in any community that participates in the NFIP. You can check to see if your community participates by visiting http://www.fema.gov/fema/csb.shtm. The only issue which would prevent you from obtaining flood insurance is if you reside in a Coastal Barrier Resource System location, or a location that is designated as an Otherwise Protected Area. Land that falls under these two categories are undeveloped areas along coastlines. The flood insurance program doesn’t provide coverage in these areas to discourage settlement where there is an extreme risk not only for flooding, but potential loss of life.

· You can only get flood insurance if you are a homeowner.  Condominium/co-op owners, apartment dwellers, and commercial/non-residential building owners can purchase NFIP coverage. There is a maximum of $250,000 worth of coverage on a one-family residential building. The maximum per-unit coverage limit on a residential condominium/co-op association building is also $250,000. Contents coverage for any residential building is limited to $100,000. Commercial/non-residential structures can be insured for a maximum of $500,000. You can also insure the contents of commercial buildings up to $500,000.

· You have to wait 30 days for flood insurance protection to take effect. Usually there is a 30-day waiting period from the time a policy is purchased until you are covered. However, there are some exceptions. There is no waiting period if you already have a flood insurance policy, but need more coverage to increase, extend or renew a loan, such as a second mortgage, home equity loan, or refinance. Coverage is effective immediately, as long as you pay the premium at or prior to loan closing. There is a one-day waiting period when additional coverage is requested because of a map revision. This applies when the NFIP revises the map so that a non-Special Flood Hazard Area becomes a Special Flood Hazard Area. Coverage must be purchased within 13 months following the map revision to be applicable for the reduced waiting period.

· You can get Federal Disaster Assistance even if you don’t have your own flood insurance policy. The Federal Disaster Program will only provide coverage to uninsured individuals or businesses if the affected area is declared a federal disaster area, which occurs less than 50% of the time.  Statistics show the awards average about $4000 dollars and most are made in the form of a Small Business Administration Loan, which must be paid back with interest.  Furthermore, the award recipient must carry flood insurance for the duration of the loan.

To learn more about the terms of flood insurance coverage, log on to http://www.floodsmart.gov/floodsmart/pages/faq_policy.jsp.

Source: FEMA Publication F-216 (08/04) and www.floodsmart.gov