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Business Owner’s Policy | BOP Insurance For Small Business

Your small business does not need the pricing or the cumbersome insurance boilerplate of a  Commercial Insurance Package policy. A Business Owner’s insurance policy referred to as BOP insurance will work just fine for your small business insurance needs. Aside from the low cost involved when purchasing a BOP policy, there is less paper to wade through and yet the insurance coverage afforded by this business owner’s insurance policy is very comprehensive. 

The Business Owner’s insurance policy premium is driven by the property values you insure.  The BOP policy does not contain a co-insurance clause. The BOP is not generally subject to an audit at the end of the policy term. The BOP insurance policy continuously renews until you request that it be canceled or stop paying premiums.  

The Business Owner’s policy can ensure your real and personal property. It comes with enhancements automatically included or enhancements that can be purchased for additional coverage to be included at a nominal fee which picks up all the extras you need as a  business owner but you probably don’t think about.  

Typically the basic BOP will include: 

  • Computers and media including Laptop computers which are covered on a worldwide basis  for a limit of $5,000 
  • Employee Dishonesty including ERISA up to $10,000 in any one occurrence 
  • Outdoor signs and landscaping subject to a policy limit 
  • Valuable Papers and Accounts Receivable insurance 

All Section I property coverage is subject to your deductible which can be as low as $500 per claim. Of course, higher deductibles will reduce your annual premium. Don’t take a $1,000  deductible to save $80 because if you have a claim mathematically you are coming out on the losing end. 

Included in the BOP insurance policy is coverage for your loss of business income and extra expense insurance for the actual loss you sustain for a period of 12 months. Depending on the insurance company you are insured with this period could be as much as 18 or 24 months.  

Section II of your Business Owner’s policy provides for Liability coverage. The limit is generally $1,000,000 for each occurrence or claim and $2,000,000 in the aggregate. The aggregate limit is the most the company will pay in any one policy term for third party liability claims against you. The liability limits can be lower and in some instances, the insurance company may offer higher limits. This section of coverage provides coverage for your premises, 

products, and completed operations. Personal and advertising injury liability is included. Your deductible does not apply to this section of coverage. 

As with any insurance policy, there are exclusions, restrictions, and limitations. If you provide your independent agent with a complete and detailed description of your operations he or she will be able to get your policy as customized for you as possible under the Business Owner’s  Policy or BOP.

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Earthquake Insurance Policy – Protect Your Home From Disaster

Your Homeowners insurance policy does not include coverage for damages caused by an  Earthquake. Some insurance companies may allow you to add this coverage to your existing homeowners or renters’ insurance policy. However, if your insurance company does not offer such extended coverage, you will need a separate earthquake insurance coverage to protect your home against earthquake-related damages.  

An Earthquake insurance policy will cover damage to your home and to the contents of your home. It will also provide for you if you cannot reside in your home due to damages caused by an earthquake.

In California the risk of Earthquake-related damage is quite significant. Can you afford to rebuild or repair your home if it is damaged or destroyed? Can you afford to live in a temporary residence while your home is being rebuilt or repaired? If your home is labeled as “Red Tagged” after an Earthquake, it means that the structure of your home is damaged to such an extent that entering it would be unsafe.  

The inspectors in your city or county will determine the safety of your home post-earthquake. Once your residence is Red Tagged you have no choice but to seek living accommodations elsewhere. If you have a proper Earthquake insurance coverage, it will pay for your temporary residence.  This section of coverage is called Additional Living Expenses.

Your Earthquake policy will have a deductible of 10% to 15% of the coverage limits that you have on your policy. Premiums will vary depending on the location of your home. Homes that are situated closer to a designated fault line will have a higher cost. It does pay to have your independent insurance agent shop earthquake insurance coverage for you so you can review all available options. 

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Commercial Auto Insurance Purchases – Things To Consider

Purchasing commercial auto insurance is different from buying a personal automobile insurance policy. In addition to insuring yourself against claims of bodily injury and property damage involving third parties, you must also maintain comprehensive and collision coverage to protect your own vehicle against unforeseen damages.

There are several important endorsements you may want to consider while when your purchasing your business auto insurance.

Endorsements to consider before purchasing a commercial auto insurance policy

1.Hired Business Automobile Physical Damage coverage endorsement

This endorsement has a limit per unit or vehicle for the physical damage (comprehensive and collision damage) caused to your commercial vehicle. However, you must be sure to check the limit, generally $50,000, before you rent a high-value automobile. 

2. Non-Owned Business Automobile Liability coverage endorsement

It can be used when you have employees who use their personal vehicles on your company business even if the exposure is so slight that it only entails errands such as picking up mail or buying office supplies. The endorsement does not replace the employee’s liability insurance. Instead, it protects you as the employer if you are named in a claim due to your employees’ negligence. 

3. Employee Hired Auto endorsement 

It requires hired auto coverage for both liability and physical damage coverage to be enforced. This endorsement is to be used when employees hire vehicles in their own name rather than the company’s name and use it for business purposes according to the directions of their employer. The effect of this endorsement is to make coverage for these autos primary rather than excess. 

4. Rental Reimbursement endorsement

It includes the loss of use of the rental vehicle by the car rental company. The cost per day to rent a vehicle is provided in the commercial vehicle insurance policy. However, if the rented unit is damaged or destroyed in your care, custody, or control you can be held liable for the loss incurred by the rental car company for the time the vehicle was not in use due to repairs or replacement of the unit. 

5. Auto Loan Physical Damage Extension 

This is an endorsement that provides coverage for the difference between the actual cash value of the damaged commercial vehicle and the loan balance of the unit. Auto Lease Gap Coverage applies when the vehicle is leased rather than purchased.

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Homeowners Insurance Policy Coverage – All You Need to Know

At EZ Insurance, we  offer you quality homeowners insurance policy that will cover your home and other detached structures on your property. Detached structures , such as garages and pools are generally insured for  10% of the coverage limit  you have on your dwelling. However, this limit can be increased. 

You can insure your home replacement cost basis against fire and other extensive damages caused by smoke and water. Our homeowners insurance coverage will also protect your home and its content  against damage  caused by windstorm, theft, vehicle damage caused by a non-owned vehicle, explosion, civil commotion, and riot.  

The policy will include coverage for the contents of your home. This amount can extend up to 70% of the coverage limit you maintain on your dwelling.

When a covered loss occurs you might not be able to live in your home. Depending on the damage this could be a short-term or a long-term situation. Your West Hollywood homeowners’ insurance policy will pay for your increased cost of living expenses for temporary housing while your home is being repaired or rebuilt. This section of your policy is referred to as Additional Living Expense coverage.

A deductible applies to all of the above Section I coverages. Discuss with your agent how a higher deductible might help cut down your premium. 

Home ownership is a major responsibility. Section II of your homeowner’s insurance policy provides coverage against third-party liability for bodily injury or property damage. Your homeowners ‘ insurance policy protects you if any person is hurt while on your property. It also protects you against property damage that you or your family members are liable for. Your deductible does not apply to this section of your Homeowners insurance coverage.  

It is easy to place a value on your tangible real and personal property. However, it is not easy to forecast how much a liability claim can cost you as the cost of defending such claims can change. Hence, it is  advisable to always carry enough liability insurance to protect your home and its contents.

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Personal Liability Insurance – What It Is and What It Covers

Comprehensive Personal Liability insurance offers financial protection to you and your family against claims of  Bodily Injury and Property Damage for which you can be held legally liable. This protection can either be part of your standard Homeowners insurance policy or purchased as a separate policy. 

Some examples of personal liabilities include:

  • Slip and fall injuries incurred by a third party while on your property
  • Accidental damage to someone else’s property caused by you or a family member
  • A tree standing within your premises falls on a neighbor’s house
  • Your son’s baseball breaks a neighbor’s window. 

Claims brought against you as a result of your pet ownership such as a dog bite will also be covered. However, you must make sure that your dog’s breed is not on a prohibited breed list. Your personal liability insurance policy will specifically exclude injury caused by certain breeds of dogs. 

The policy will pay for claimants’ medical expenses and lost wages. It will also pay for your legal costs should a lawsuit occur and you require the services of an attorney to defend you. 

Your Homeowners or Renters insurance policy will include Personal Liability coverage. The limit can be as low as $100,000 or as high as $500,000. 

If you have high worth assets, you will want to consider the purchase of a Personal Umbrella  Liability policy. This policy provides additional protection over and above your primary limit of liability. Insurance under this policy is purchased in increments of $1,000,000 and is very affordable.