Tag: "Insurance Carrier"
Commercial Auto Insurance
Commercial auto insurance is in principle similar to personal auto insurance. However, there are some distinct considerations to keep in mind when purchasing commercial auto insurance. By understanding these differences it will enable the insured to ask pertinent questions to better protect against their risks.
For many businesses today umbrellas have become a large part of their risk management and risk transfer. What many insureds do not understand is that umbrellas don’t automatically cover over the commercial auto policy. This largely depends on the carrier writing the umbrella. This of course is very important as having an umbrella in place is very advantageous for businesses who have the umbrella over top of their other coverage.
Although the minimum limits may vary state to state for commercial auto or personal auto it is essential to have an adequate minimum limit in regards to protecting the commercial business from potential risks. In many states nothing less than one million Combined Single Limit should be purchased. This however is best discussed with an insurance agent to find out what other similar businesses are insuring for.
One typical coverage often seen on personal auto insurance policies is “rental and towing” coverage. This however is not the case when it comes to commercial auto insurance. Although in some instances this can be bought for a commercial auto policy it is certainly by no means typical or standard. This is best discussed with the agent or insurance carrier who is writing the policy.
The above mentioned points are in no ways comprehensive but a good starting point when shopping for commercial auto insurance and discussing with an insurance agent or carrier. Of course it is always very important to read the insuring agreement or policy to clarify and understand the specifics.
What is an Inland Marine Policy?
This is a great question that address the hard to insure stuff that many Americans have but don’t know how to cover. Examples of Inland Marine items that can be covered are those things that have significant value but isn’t part of a permanent structure or contents. Such items are expensive jewelry, instruments like guitars, golf clubs, camera equipment and any other items of value that can be moved off of the insured’s premises.
The way this policy works is that the specific items and values are itemized on the policy and the insurance covers that specific item for the stated value. It may or may not have a deductible and it may be written for Actual Cash Value or Replacement Cost.
Other examples of Inland Marine items can be tractors and accessories, a workman’s tools, portable generators and radios or even fine art. Really the concept is for those expensive items that are portable and are can move off the insured’s premises. By calling an insurance carrier it is relatively easy to obtain quotes although some high value items may need verification and/or appraisal.
The cost for Inland Marine policies are usually inexpensive and well worth the price in comparison to the amount that could be lost otherwise.
What is the Best Home Insurance for Tier 1?
Living by the ocean certainly has it’s advantages and disadvantages. The beauty of ocean living however can quickly turn to a nightmare in the face of an oncoming hurricane. For this reason alone purchasing home insurance in itself can be a bit of a bad dream on it’s own.
Because insurers typically don’t like the potential for multiple losses at the same time they usually shy away from those types of risks. However, this is usually regulated by each carrier on what and where they will write home insurance. This of course doesn’t mean that they will cover “all risks” as they can and do usually exclude wind and flood.
Thankfully however, FEMA and a few others do sell both wind and/or flood coverage that can be independent from the personal home insurance carrier. Of course the premiums for insurance on homes in tier 1 areas will cost more due to the greater risk of loss, however, for many the luxury of beach living is worth the premium paid.
It is always best to start your insurance shopping by talking with your existing home insurance agent or insurance carrier to see what they offer and then requesting quotes from FEMA and other local agents in that area. Local agents will be familiar with the risks but it is still best to talk to a few local agents.
So if you’re planning to purchase a home or vacation home in these wind challenged areas that are at risk for hurricanes and/or flood, you may want to check into the insurability before purchasing. By considering the insurance costs for homes in tier 1 areas the buyer will be better equipped to budget the expenses of their dream home.
What are “Loss Runs”?
Every insurance carrier guards their bottom line by attempting to insure only the best risks by understanding the exposure in detail. When a prospect applies for insurance the obvious reasoning is that there is some sort of risk of loss that the prospect doesn’t want to be on the hook for. Therefore, the insurance carrier assumes risk for their insureds in turn for premium. By doing this they share the cost of risk over many.
For this reason “Loss Runs” are tracked. In essence “Loss Runs” is an insured’s insurance history at a glance. This report talks about past losses as well as open case losses. This report will state the time and the carrier along with other pertinent information. By having loss runs available an insurance company can then analyze the chance of risk with the prospective client.
Typically prospective insurance carriers will require anywhere from three to five years of Loss Runs before deciding to issue a proposal for business. Because all insurance carriers require loss runs all insurance carriers will provide loss runs as an industry standard of practice. Obviously the least amount of losses the better the insurance rates and the greater the amount of losses the higher the rates.
What this means for individuals and/or businesses alike is that it is always best to avoid or reduce risk as much as possible as a means of keeping insurance costs down. This is a direct strategy that has a direct impact on your bottom line.
