perfetto-insurance

Top 5 Most Common Business Insurance Claims

Thu, 18 Feb 2016 16:47:58 GMT

Insurance claims against businesses are so commonplace these days that 40% of all small businesses can expect to sustain a property claim or a general liability claim within the next decade. So says The Hartford’s analysis of all small business claims tabulated over a five-year period in their study.

While such claims often come as a surprise to small businesses, they really shouldn’t, due to the prevalence and sheer numbers compiled across the nation. Here’s a rundown of five of the most common types reported in The Hartford’s insurance claims analysis, which by the way, included more than 1 million claims.

Burglary and theft claims

During the five-year study, burglary and theft claims were experienced by at least 20% of small businesses, although these type of claims were also the least costly of any type in the Top 10. To protect your company against these kinds of claims, conduct thorough background checks of employee candidates, and install adequate security measures at your facility, such as alarms, fences and locks.

Reputational harm

Claims for reputational harm, which fall under the category of general liability, often involve much bigger payouts, since a lawsuit is involved in 35% of all cases, and when this happens, an average reputational harm claim can cost $75,000 in total. Criticizing or otherwise publicly embarrassing someone can often invite this kind of claim, so it should be avoided carefully, as well as any kind of adverse online reference to someone who has dealt with your company.

Fire claims

Fire claims rank high in both the most common list of insurance claims, and the most costly, since the average cost for a fire claim is approximately $35,000, and it affects at least 10% of all the small business owners surveyed. The best way to protect against fire claims is to regularly inspect all fire prevention equipment, and to post fire escape routes prominently in all areas of your buildings.

Vehicle accidents

Vehicle accidents were the second most costly kind of claim, averaging $45,000 in a typical settlement. Since you can’t be sitting next to an employee driving to or from work, the next best thing you can do is regularly remind employees about safe driving habits, and encourage considerate and safe behavior in the parking lots, where many claims are actually triggered.

Product liability

Product liability was another insurance claim in the Top Five most costly, with the average claim instance resulting in a $35,000 settlement. If a product does not perform as expected under normal conditions, it may be the result of inadequate testing before release to the general public. Since these claims tend to be among the most costly to small businesses, it’s worth going the extra mile to be sure that a product is 100% safe under all reasonable conditions before marketing it.

Do You Need an Umbrella Insurance Policy?

Thu, 18 Feb 2016 16:25:40 GMT

Figuring out how much insurance you need and what kind can be a daunting prospect. If you’ve ever bought homeowners insurance, you may have been asked if you’d like an umbrella policy as part of your insurance coverage. In order to get the best possible coverage and to protect yourself from any unforeseen circumstances that may not be covered under an normal policy, it may be necessary to add extra liability coverage in the form of an umbrella insurance policy, to your auto and homeowners insurance policies to protect you and your family.

Here’s why.

Protection from Lawsuits

Kiplinger recommends you have at least a $1 million umbrella policy to provide liability coverage that extends beyond your auto and homeowners insurance policies, even if you have less than $1 million in assets. If someone ever sues you, and you don’t have this umbrella policy, you could be responsible for paying legal fees from both current and future assets. Even if you eventually win the case, legal fees will eat into the settlement because they add up so quickly. It’s wise to get liability insurance limits that total as much as your net worth — more if you can afford it. This additional lawsuit coverage will take care of defense costs as well as liability coverage for lawsuits that don’t fall under your auto or home insurance. In a broader sense, umbrella policies provide coverage beyond your normal coverage, offering:

Property damage liability
Slander/libel
Bodily injury liability
Legal fees and defense

You Never Know…

It’s impossible to tell if, when and whom you will injure in the future, whether through a car accident or some other scenario. Just think of this possible example: You injure a professional athlete, CEO, or doctor. Perhaps they can’t work for 10 years due to their injuries. You would be responsible for paying their lost wages, medical bills and compensation for pain and suffering, with lost wages alone starting at $3 million and running up from there, says Bankrate . It’s better to buy an umbrella policy now, with at least $1 million in coverage, than be left holding the bag later. If and when something does happen and you don’t have an umbrella policy, it will be too late to add one.

Peace of Mind

If you’re concerned about losing income and assets over a potential lawsuit, you need an umbrella policy. Considered a wise purchase in the insurance industry, this is one of those things that isn’t very exciting to buy initially like a new car or vacation, but it gives you immeasurable peace of mind knowing if you had to use it, it’s there and it will protect you. Plan on paying between $150 and $200 for the first $1 million of coverage, then about $100 for each $1 million you add on.

Want to learn more about umbrella insurance policies?

Is Pet Insurance Worth The Cost?

Thu, 30 Jul 2015 15:15:56 GMT

It’s one of the most challenging questions for pet owners everywhere:

How viable is pet insurance? Worth the Cost? Or simply an exorbitant expense?

All insurance policies have a tendency to be fairly confusing – even the ones designed for your furrier family members. Pet policies aren’t equal across the board, and with various limitations, exclusions, caveats and fine-printed-disclaimers in each prospective option – it’s pretty easy to select a plan that doesn’t cover everything.

Everything you’ll need , at least.

So Let’s Settle It

Pet owners’ major argument is that it’s more cost-effective, more manageable and more prudent to set money aside in a “pet emergency account”, than it is to shell out regular pet insurance premiums.

Well, the American Pet Products Association estimated the nation’s veterinary bills cost between 14.3 and 15.2 billion dollars in the last couple of years.

And they’re rising all the time.

So, obviously – and notwithstanding the common complexity of pet insurance plans – the right policy may actually be the budget-friendly alternative.

What Do We Mean By The Right Pet Policy?

Pet insurance plans vary greatly. And the right information can help you ask the right questions, follow the right guidance, and sign up for a plan that meets all of your expectations.

Who’s Covered?

Pet insurance policies are created for both dogs and cats, but a lot of plans are really geared toward dog owners. Dogs, historically, lead more dangerous, active lifestyles – increasing the risk of injury – whereas cats tends to spend a lot of time indoors. Don’t let that discourage you from seeking coverage though, if you’re a cat owner, as cat coverage is often less of an expense.

Age Makes a Difference

Your pet’s age will make a major difference in which policy you choose to purchase. Premiums are usually lower for younger pets. There are plans available for animals of any age, but rates do tend to go up as animals get older – and they’ll be harder to find.

So if you enroll early, your monthly premiums will be correspondingly lower.

Coverage Options

Pet insurance policies have been available everywhere for a long time, yet they’ve only become popular here since the 80s’. In fact, experts estimate a mere 1% of American pets have insurance coverage at all.

There are three main categories of plan coverage available to pet owners: Accident insurance, Accident and Illness insurance, and Accident, Illness and Wellness insurance. A lot of people favor the second option – covering potential accidents and illnesses – as they prefer to handle preventive care, or wellness, themselves.

There’s Just Too Much at Stake

So what’s the verdict? Is pet insurance worth the cost?

Of course, it all comes down to the fundamental reason for getting any coverage at all: you really don’t want to leave it to chance.

Unforeseen expenses, surgical procedures, operations, medication, long-term treatments – they can quickly break the bank, adding one more major worry to an often-emotional experience. With the right pet insurance plan, however, you (and every member of your family) can work it out with a lot less stress.

Parting Words

When selecting a plan be sure to find out what is, and isn’t, covered. Ask about any waiting periods as well, to be certain you’re covered when you need to be. Read the fine print, check into ratings, ask questions, take suggestions – and don’t sign up until you know exactly what you’ve got.

That’s where we come in.

You’re bound to have questions, want details and need to see the specifics. So reach out to a professional and let’s get started. There’s no valid reason to leave your pets unprotected.