Getting insurance for a business can be a daunting process and sometimes, it’s hard to know where to start. MyCity4Her affiliate and woman business owner Stacia Cook Cuthie of Insurance Inc. sent over seven valuable tips about insurance that any business or individual can use to help make the process a little easier.
Insurance tips:
1. Shop both your Commercial insurance and personal insurance every three years to ensure you are receiving competitive pricing.
2. When selecting an insurance agent, know the difference between a direct underwriter and a broker.
- Direct underwriter: An agent that represents and works for one insurance carrier. Example: Allstate, State Farm etc.
- Broker: An agent that works for their client and represents several carriers
3. When purchasing commercial insurance, know the difference between General Liability and Professional Liability.
- General Liability Insurance protects your company from claims if your clients holds you and or your employees responsible for bodily injury or property damage, medical expenses, libel and slander caused by your company by accident or out of negligence.
- Professional Liability-Errors and Omissions Insurance protects your company from claims if your client holds you responsible for errors or the failure of your work to perform as promised in your contract.
4. When purchasing property insurance, know the difference between actual cash value and replacement value.
- Replacement Value means the cost to replace the property of comparable material and quality used .Replacing Old for new.
- Actual Cash Value means “fair market value,” the cost to replace with new property of like kind and quality, less depreciation.
5. When purchasing insurance, know the difference between an admitted and Non admitted carrier.
Insurance companies that choose to be a non-admitted business are not required to follow state regulations. They would have to prove to be financially able to conduct business. They would not have to report their rates and can charge according to their risk exposure. This allows insurance companies to take on higher risk applicants who have greater loss potential.
Insurance companies that are admitted are to follow guidelines that are set by the department of insurance (DOI) of the state they conduct business in. The admitted insurance company’s rates as well as their practices, advertisements and cash reserves are regulated by that state.
6. As a business owner with employees, make sure you have Hired and Non owned liability coverage if your employees ever use their own vehicle for any business related reasons. if one of your employees were ever involved in a car accident and at fault while driving for work the injured party could not only sue the drivers personal policy but you the employer as well.
7. As a business owner, did you know that if you collect or store anyone’s personal information via the internet and if there is a security breach that is linked to your computer’s IP address, you are responsible for not only the funds lost but the law states you must notify everyone you have done business with that there has been a breach and this can be an expensive process. Ask your insurance agent about Cyber Insurance to protect your business from this possible threat.
About Stacia Cook Cuthie: My 23 years of experience in both print and radio have given me terrific instincts and a clear understanding of my client’s needs and concerns. My passion is working with people and I take a personal interest in seeing my clients succeed. I treat each and every business as if it were my own. I pride myself on educating and being a passionate hand-holding advocate for my customers thus providing maximum results. I am extremely dependable, customer-focused and enjoy relationship building. What I offer to each of my clients is the combination of drive and clarity which are both very key in taking advantage of opportunities and the ability to make good business decisions in the chaos in today’s marketplace. I work very closely with both my clients and numerous carriers. I spend the time necessary to fully analyze & understand all of my client’s personal &/or business exposures/needs, thus ensuring we have chosen the best custom policy that best suits that business and their particular needs.