Tag: Insurance Deductible

Special Insurance for Your Special Event

If you’re planning a wedding, anniversary, graduation party, Bar/Bat Mitzvah or other special event, consider adding insurance to your ‘to-do’ list. Special Events Insurance provides financial protection—just in case things don’t go as planned on that special day.

Perhaps the most popular feature of Special Events Insurance is cancellation / postponement coverage. If there is a necessary and unavoidable cancellation or postponement, this insurance covers deposits and other amounts paid or owed for various event-related items, such as catering services, location and equipment rentals, accommodations, flowers, photographers, videographers and entertainment. Rehearsal dinners within 48 hours of a wedding may also be covered.

Not every cancellation or postponement is covered, like those resulting from the non-premature delivery of a child or a change of heart. Though normal weather conditions (heat, rain, snow) do not trigger coverage, cancellation or postponement caused by unanticipated extreme weather conditions, like hurricanes and tropical storms that developed after the policy’s inception date, may be covered. Cancellations or postponements caused by any known circumstance that might reasonably give rise to cancellation or postponement of the event are also not covered.

Special Events policies can also provide optional liability coverage, including host liquor liability coverage, to protect against bodily injury or property damage suffered during the event or at the reception. Though homeowners’ policies may provide some liability coverage, it’s better to keep event-related liability claims away from your homeowners’ insurance homeowners’ insurance company. Special Events policies also let you provide additional insured status, which is often required by event venues, but which may not be easy or possible under a homeowners’ policy.

Special Events policies can provide other valuable coverages, such as:

Additional Expense Coverage to pay unanticipated expenses that are incurred to avoid cancellation or postponement of the event if a vendor fails to provide contractually agreed upon items, services or locations.

Special Jewelry Coverage to pay for loss or damage to jewelry purchased or rented, but not borrowed, specifically for an honoree’s personal decoration or for exchange at the event by an honoree. The loss or damage must occur on the date of the event date or within seven days prior to the event. Any thefts must be reported to the police as soon as reasonably practicable. Mysterious disappearances are not covered.

Photograph and Video Coverage to pay reasonable expenses to take or retake event photographs or video in a comparable setting if, for example, the professional photographer or videographer fails to appear at the event or the originals are lost or damaged prior to delivery.

Event Gifts Coverage to pay for loss or damage to gifts that occurs at or before the event.

Special Attire Coverage to pay the cost of replacing or repairing clothing, headwear or shoes purchased or rented, but not borrowed, by the honoree (bride, groom, etc.) specifically for the event. Watches, jewelry or precious or semi-precious gemstones or pearls are not covered.

When shopping for Special Events Insurance, pay special attention to coverage exclusions that may be relevant to your situation, such as those relating to pregnancy or other pre-existing medical conditions.

If you have any questions or would like to learn more about Special Events Insurance, please contact us.

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Vehicle Sales Can Be Risky Business for Self Storage Facilities

Dealing with delinquent tenants is an unavoidable part of operating a self storage facility. Strict legal requirements make enforcing storage liens and selling tenants’ property a risky proposition. The risk is even greater for those facilities that permit the storage of motor vehicles.

Unlike other kinds of personal property, certificates of title are used to establish ownership of motor vehicles. This means that operators of self storage facilities must take the right steps to make sure the certificate of title will reflect the transfer of ownership from the delinquent tenant to the buyer. Unfortunately, re-titling a vehicle may not be quick or easy, particularly because the process isn’t always obvious and it can vary significantly from state to state.

For example, Florida requires an Application for Certificate of Title with/without Registration, though this requirement is not found in the self storage statute. By contrast, California requires an Application for Lien Sale Authorization and Lienholder’s Certification, a Certification of Lien Sale, an Application for Title or Registration, a Notice of Pending Lien Sale, a DMV letter of authorization to conduct the sale, postal receipts of all notices sent, and a Notice of Transfer and Release of Liability.

The lack of a uniform process for re-titling motor vehicles means that operators of self storage facilities must refer to and abide by their state-specific laws and requirements. However, regardless of what the process involves, operators can still take steps to make things easier while reducing the risk. For example, operators can collect vehicle-specific information and documentation when the tenant signs the lease, such as:

  • Vehicle Identification Number (VIN)
  • Vehicle registration information
  • Copy of Certificate of Title
  • License plate/tag number
  • Lien and lienholder information
  • Name and contact information for all owners of the vehicle

Operators of self storage facilities need to understand the increased effort and risk that come from storing and disposing of motor vehicles. Various insurance options specifically designed for the self storage industry are available, such as Sale and Disposal Liability Coverage.

If you would like more information about Setnor Byer Insurance & Risk’s Self Storage Insurance Program can help protect your facility, please contact us.

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Shopping for Insurance: Quality versus Cost

People typically purchase insurance because they have to, not because they want to. For the most part, consumers are happy to obtain the minimum required insurance coverage at the lowest price they can find. That is, until a claim comes along. Only then do they discover that buying the cheapest insurance available wasn’t such a bargain after all.

The quality versus cost argument is nothing new especially when it comes to insurance. Consumers who pay less tend to get less, whether in the form of coverages, limits or financial security. And, when people choose cost over quality, it usually means they are uninformed about what they really need.

As a full-service independent insurance agency, it is our job to help our clients understand their insurance needs. We evaluate, compare and quote various options from multiple insurance companies so that our clients have the right information before making a decision. Though many still choose cost over quality, it is important that they understand what they may be sacrificing.

Low Premiums

Would you rather have automobile insurance that protects you from damage caused by someone who is uninsured or underinsured? Uninsured Motorist Coverage is commonly excluded from a policy to reduce the premium. Rejecting GAP coverage or electing non-stacked coverage are other ways to save money. But these choices come with a risk. When shopping for insurance it’s better to determine what coverage is desired, see how much that coverage would cost, and work with an independent insurance agent to help get the coverage you need at a cost you can afford.

Financial Stability

Although cost is important, the financial strength of an insurance company may be more important. Financially weak insurance companies are more likely to become insolvent or go bankrupt, which means that their policyholders are less likely to get their claims paid. Though purchasing insurance from a financially weak company may be cheaper, how valuable is the money saved on premium if there is no money to pay a claim? An independent insurance agent can help you evaluate the financial stability of the insurance companies you are considering.

Customer Service

Insurance companies don’t typically assign an agent to their customers. Each time you call you speak to a different person which means you have to explain your situation over and over. Look for an agent that offers personalized service. Those are the agents who are willing to go the extra mile to get you what you need. For example, at Setnor Byer Insurance & Risk, our commercial clients enjoy complimentary access to our risk management services to help them manage the risks associated with owning a business.

A solid understanding of your insurance needs is the key to overcoming the quality versus cost argument. An experienced and reputable independent insurance agent can help you purchase insurance that is both economical and effective.

If you would like more information about our insurance products, please contact us.

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What is a Certificate of Insurance?

Certificates of Insurance are documents provided by Agents to verify the existence of insurance coverage. They are commonly used when an agreement or contract requires a party to maintain specific types of insurance. For example, a Certificate of Insurance can be used when:

  • A general contractor wants to verify that its subcontractor has the statutorily required workers’ compensation insurance;
  • A mortgage lender wants to verify that the homeowner has sufficient property insurance;
  • A commercial landlord wants to verify that its tenant has all the insurance coverage required by the lease; or
  • A homeowner wants to verify that its lawn service company has general liability insurance.

Certificates of Insurance are issued to the certificate holder—the person or entity that needs to verify insurance coverage. Though common and relatively straightforward, there is quite a bit of confusion about what Certificates of Insurance do, and more importantly, do not do.

A Certificate of Insurance provides a superficial snapshot of insurance coverage that is in place at the time it is created. Contrary to what many believe, Certificates of Insurance:

  • Are NOT insurance policies.
  • Do NOT provide certificate holders with any rights under the insured’s policies. This means certificate holders cannot file a claim or request a defense under the insured’s policies.
  • Do NOT amend, extend or alter the coverage provided by the insured’s policies. This can only be accomplished with an endorsement, rider or amendment to the policy.
  • Do NOT create a contract between the insurance company and the certificate holder.
  • Do NOT guarantee that insurance coverages listed on a Certificate of Insurance will continue in the future. A Certificate of Insurance issued today may not be accurate tomorrow.
  • Are provided for informational purposes ONLY.

Though there are various Certificate of Insurance forms, those developed by ACORD (Association for Cooperative Operations Research and Development) are widely used to provide specific information about existing insurance coverage, such as:

  • the insurance companies issuing the policy
  • the policy numbers
  • effective dates
  • types of insurance (ex. general liability, automobile, workers’ compensation, property)
  • policy limits

These forms also provide a space to add additional comments or conditions. This is where problems may arise if an insured or certificate holder wants to add specific language to their Certificates of Insurance. For example, a certificate holder may want to state that there is an additional insured under the policy, or an insured may want the certificate to state that any obligation to indemnify the certificate holder is covered by the policy.

If such statements happen to be true, it is not because they were typed on the certificate. Remember that Certificates of Insurance do not affect, extend, or change the insurance policy, so any incorrect or contradictory statements are meaningless to the insurance company. They can, however, be grounds for a costly lawsuit, so an experienced insurance agent should be used when issuing or receiving Certificates of Insurance.

If you would like to learn more about dealing with Certificates of Insurance or how we can help, please contact us.

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Understanding Auto Insurance

Whether purchasing a new policy or determining if a loss is covered under an existing policy, it helps to have a basic understanding of how auto insurance works. Here is a brief explanation of some common auto insurance concepts and coverages that you can use to determine if you have the protection you need.

Collision coverage pays for car damage caused by a collision with another car or an object. This type of coverage is typically required by finance companies.

Comprehensive coverage pays for losses caused by something other than a collision, such as theft, vandalism, falling objects, fire and weather (wind, hail, etc.). This type of insurance coverage is also known as Comp or Other-Than-Collision coverage.

Liability insurance covers damage to others for which the insured is responsible. There are two main types of auto liability coverage, both of which are generally required by state law. Bodily Injury (BI) Liability insurance covers damages resulting from injury or death, such as medical and funeral expenses, loss of income, pain and suffering. Property Damage (PD) Liability insurance covers damage to the property of others, such as cars, mailboxes, trees and fences. Liability coverage does not pay for the insured’s own bodily injury or property damage.

Personal Injury Protection (PIP or No-Fault) insurance pays for injuries sustained in an auto accident. In addition to the insured, PIP may also cover family members, passengers and household residents. PIP insurance generally provides benefits for medical expenses, loss of income, funeral expenses and other similar expenses, regardless of who is at fault. The requirement to carry PIP insurance and the benefits that must be paid by an insurance company vary by state.

Uninsured Motorist (UM) coverage pays for an insured’s bodily injury and/or property damage that is caused by an uninsured motorist. UM insurance allows an insured to collect from his or her own insurance company. Underinsured Motorist (UIM) coverage is a similar type of coverage that pays for an insured’s bodily injury and/or property damage caused by a motorist with insufficient insurance.

Stacking is a way to increase a policy’s uninsured or underinsured motorist coverage limits. If UM or UIM coverage is stacked, then the policy’s limits will be multiplied by the number of vehicles covered under the policy. For example, an insured with UM limits of 50/100 ($50,000 per person/$100,000 per accident) and three covered vehicles can essentially increase her UM limits to 150/300 by electing to stack her coverage. The manner in which an insured must accept or reject the stacking of limits is often governed by state law.

Guaranteed Auto Protection (GAP) insurance pays the difference between the current outstanding balance on a car loan or lease and the actual cash value of the car. This coverage can prove valuable when the amount owed on the car is more than the value of the car when it rendered a total loss after an accident. This would be the case, for example, when a new car is totaled the day after it was purchased and driven off the dealer’s lot.

Deductible is the amount an insurance company will deduct from the loss before paying up to the policy’s limits. Though insureds typically have options when choosing a deductible, state laws and finance agreements often have specific deductible requirements.

Coverage Limit is the amount an insurance company will pay in the event of a claim. Those who purchase only the minimum coverage limit required by their state’s law are probably underinsured. Coverage limits of $100,000/$300,000 are generally recommended.

If you would like more information about comparing and obtaining personal and commercial auto insurance coverage, please contact us.

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