Simple answer – YES.
Think about what you have built your business up to – it is likely your major investment plan for your retirement – when an employee on a suspended license has yet another accident and this one is bad. Sure, you have insurance but will it be enough? What about the damage to your business reputation, could this one incident close your doors?
Whether you have a fleet of company vehicles, or you let your employees use their personal vehicles for your business the risks are huge. If an employee is driving a company vehicle home and can use the vehicle for personal exposures increases the likelihood of a loss. An employee using their personal vehicle with signage on their vehicle also increases the business risk.
EMPLOYEES DRIVING COMPANY VEHICLES
EMPLOYEES DRIVING THEIR PERSONAL VEHICLES FOR YOUR BUSINESS
What determines if a driver is OK (from a standard insurance perspective) to operate a commercial vehicle?
= OK =
Key Coverages - Commercial Auto Liability policies that include Hired/Non-owned Auto Liability will protect a business if their employees are driving their personal vehicles on behalf of the business. You don't have any business vehicles? You still have a business exposure if even you, the business owner are driving your personal vehicle on behalf of ANY business purpose. Many insurance companies will even endorse the General Liabllity for Hired/Non-owned Auto Liability if the business doesn't own a vehicle.
In either case – business needs to evaluate their risk potential and make sure that the limits of liability are adequate to avoid that one single event that could impact your business and you.
Long-term care insurance is used for when you have to go to a nursing home, assisted living facility or even for in-home care. Any of these events can be financially devastating to a family.
As an endorsed local provider (ELP) for Dave Ramsey - we agree with his assessment of the importance of the coverage. Especially when 69% of people over the age of 65 will require long-term care at some point in their lives.
I know this first hand with my parents. My dad had coverage and after heart surgery, he had to have in-home care for several months. After he met the waiting period, the policy began to pay for all of the bills he accumulated.
He got healthy enough to no longer need the in-home care and the policy stopped paying, but later on when he had another episode, care was needed again - the policy stepped up and since the waiting period had already been met - it began to pay his bills immediately.
When you should get serious about looking at the coverage?
We recommend age 60 or older is the best time. Yes it is cheaper when your younger than 60, but the likelihood of you needing the coverage is very small. (unless of you have a family history of health problems).
Average nursing home stay is about 2 1/2 years (per survey done by Morningstar). Costs can range greatly - I will tell you from personal experience it is around $4,000 a month for assisted living and $7,500 a month for nursing home stay. At that rate - any nest egg that you might have saved up will vanish.
NOTE: Medicare does NOT pay for long-term care.
For more info on Long-Term Care - Dave Ramsey has a very good post -
Biggest threat to effect small businesses in recent years is attack on your business information.
If you answered yes to any one of the above, you are at risk and subject to fines/penalties should someone hack your systems or records.
What data is sensitive?
Not sure of your exposure? Couple of websites that we have discovered help to point out the costs that are associated with:
Cyber Planning Guide:
State Regulatory Costs if you have breach:
Data Breach 1st Party Response Expense Calculator
Examples of Incidents/claims (2016 – 980 Breaches with over 35m records exposed):
Cost for protection varies with each company, your industry and your needs. Sample rates:
If you would like more information – call our office and speak with one of our agents.
This is probably the number one question we get from clients. If you have a standard Auto Insurance Contract there is some coverage that will extend and there are some that do not.
1) Rental car company is trying to sell me liability coverage, do I need to buy it?
Answer - you don't need to buy the liability coverage offered by the rental car company. Under the Liability Section of the standard auto agreement (Part A - Liability, B.1-4) the policy does extend to any auto that "you" or any "family member" are using. Key phrase is "any auto," which allows you to rent a U-Haul box truck or renting a car.
2) State that you are renting from is a "No Fault State" and your policy is a standard Indiana contract based on "Comparative Negligence." Rental Car company is telling us that our policy isn't valid.
Answer - False, you have coverage. Part A - Out of State Coverage stipulates that your policy in Indiana will automatically change when you cross into another State and interpret the laws as required by that State.
3) Does my insurance provide coverage if the car I rent is wrecked or stolen while I have it?
Answer - Maybe..... If your insurance policy has at least one vehicle that is insured for Comprehensive coverage and Collision coverage you will have some, limited coverage. The problem is comparing what your insurance policy provides and what you just agreed to do with the rental car company. This is the problem and this is where we find "limited" coverage.
Auto insurance provides coverage outlined under Part D - Limit of Liability - A.1. It is clear that insurance will only settled claims on a vehicle on Actual Cash Value basis. Agreement you signed with the rental car company - you agreed to a new vehicle to replace the one you damaged.
Second issue is found under Part D - Transportation Expenses - A.2. If that rented car is damaged, or stolen the rental agreement states that you owe them loss of use (income) of the their vehicle. For years it was difficult for any of the major rental car companies to prove that all of their vehicles are rented out and that they really lost income. But now the courts are siding with the rental car companies because they can't rent out that specific car that another customer wanted because of size, model, color, etc. Under this section of your insurance the standard limit is only $20 per day for the rental car companies "loss of use." Most rental cars run from $35 to $45 per day and you would have to pay the difference.
Solution? Give consideration to buying what is called the "Collision Damage Waiver" (CDW) from the rental car company. If you damage their vehicle, and you have this in your rental agreement, you simply call them up and they have to bring you another vehicle and you are back on the road. If you don't have the CDW, you would call us, we get an adjuster to settle with the car rental company, you would have to pay an differences that your insurance doesn't cover to the rental car company. Also, you would not have a claim against your insurance and you most likely will loose any loss free credits you had earned.
4) Does the CDW provide coverage for all situations?
Answer - NO. Each rental agreement is different on what violates the CDW agreement. In fact some rental companies will have different language for each State. Some will state that the CDW is voided if you leave paved roads, you cross State lines, others if you break any laws (speeding, parked illegally, etc), still others are voided if someone is operating the vehicle that is not on their agreement to operate, etc. Key is to understand what the CDW is not covering.
5) Other issues?
Renting a car outside the United States - no coverage on your personal auto policy for operating your car outside the US, therefore renting a car would also be excluded outside the US
Business use of the rented vehicle should be addressed with your employer if you need to get the coverage or not. Commercial Policies are not as broad in language as personal auto policies. Without the proper endorsements for Hired Auto - there may be problems for both you and your employer. Remember that Personal Auto policies don't like business exposures and Commercial Auto policies don't like personal exposures.
You still have questions? Give us a call.