Archive for February, 2011

TOP TEN FACTS every consumer needs to know about the National Flood Insurance Program (NFIP)

1. Everyone lives in a flood zone.
You do not need to live near water to be flooded.  Floods are caused by storms, melting snow, hurricanes, water backup due to inadequate or overloaded drainage systems, as well as broken water mains.

2. Flood damage is not covered by homeowners policies.
You can protect your home, business, and belongings with flood insurance from the NFIP.  You can insure your home with flood insurance up to $250,000 for the building and $100,000 for its contents.

3. You can buy flood insurance no matter your flood risk.
It does not matter whether your flood risk is high or low. Anyone in a community that participates in the NFIP can buy building and/or contents coverage, with very few exceptions. Some Costal Barrier System (CBRS) areas, Otherwise Protected Areas (OPAs) and buildings principally below ground or entirely over water are not eligible for National Flood Insurance.  It is a good idea to buy even in lower risk areas because 25 to 30 percent of flood insurance claims come from low-to-moderate risk areas.

4. The low-cost Preferred Risk Policy is ideal for homes and businesses in low-to-moderate-risk areas.
Homeowners can insure buildings and contents for as little as $119 per year.  Business owners can insure buildings and contents for as little as $550 per year.  Residential renters can insure contents for as little as $39 per year.

5. Flood insurance is affordable.
About 90 private insurance companies nationally offer affordable flood insurance backed by the federal government. Contact your local agent.  Policies are available to homeowners, condo owners, apartment owners, renters, and
business owners alike.

6. Flood insurance is easy to get.
You can buy flood insurance from private insurance companies and independent insurance agents; call yours today! You can purchase flood insurance with a credit card.

7. Contents coverage is separate, so renters can also insure their belongings.
Up to $100,000 contents coverage is available for homeowners and renters.  Whether you rent or own your home or business, make sure to ask your insurance agent about contents coverage. It is not automatically included with the building coverage (except under the Preferred Risk Policy).

8. Up to a total of $1 million in flood insurance coverage is available for non-residential buildings and contents.
Up to $500,000 of coverage is available for non-residential buildings.  Up to $500,000 of coverage is available for the contents of non-residential buildings.

9. There is usually a 30-day waiting period before coverage goes into effect.
Plan ahead so you are not caught without insurance when a flood threatens your home or business.

10.Federal disaster assistance is not the answer.
Federal disaster assistance is only available if the President declares a disaster.  Flood insurance pays even if a disaster is not declared.

Business Liability Insurance: Do You Know What Is and Isn’t Covered?

Liability insurance is something most business simply must have. But do you really understand what it does and doesn’t cover? Whether you’re looking for your first liability insurance provider, or already have a policy in place, it’s important to know what’s protected – and what might not be.

Here are some business liability insurance coverage rules of thumb. To be sure about your specific business needs, be sure to consult with a qualified business insurance agent.

What’s typically covered

Business is inherently risky, but business liability coverage safeguards against many known and unknown risks. General liability insurance coverage protects you, your business and your employees from claims involving bodily injury or property damage. Policies shield you from the expense of out-of-court settlements, litigation and judgments awarded by courts.

Lawsuits, investigations and settlements

If damages are filed against you, or you’re sued, general liability insurance covers the insurance company’s investigation and attorney expenses, any judgment or settlement, medical expenses in case of injury, and bonds if they must be subsequently posted.

Injury damages

Claims can arise from bodily injury or property damages resulting from accidents on your premises or from your products, your operations or advertising for your business.

Miscellaneous

Liability insurance can also cover things you may not have thought about such as advertising injury in the event your company’s marketing violates someone’s copyright. Business liability insurance coverage even offers some protection against alcohol-related accidents resulting, for example, from an office holiday party (as long as your company is not in an alcohol-related business, such as the manufacture or distribution of alcohol).

What’s typically NOT covered

Don’t look to a general liability insurance policy to protect you and your business from all claims and expenses that your company might face. For example:

Employee injuries

General liability insurance does not cover worker compensation claims if an employee is hurt on the job. Liability insurance for those claims can be purchased under a separate worker compensation policy.

Professional Mistakes

General liability insurance doesn’t include coverage for professional liability insurance claims. If you’re in the business of providing professional services to a client (such as a veterinarian, accountant or business consultant) you need professional liability insurance. This insurance covers professional mishaps that may occur as you offer your opinion, solution, service or recommendations in the course of business.

Auto related coverage

General business liability coverage is no substitute for business auto insurance. A hired auto (for cars rented for business) and non-owned auto endorsement will protect your company in case of a lawsuit, but it will not cover damage done to your owned or leased vehicles — nor will it protect you or your employee personally.

Punitive damages

Though there can be exceptions, general business liability policies rarely pay for punitive damages resulting from a lawsuit.

Intentional acts

General business liability insurance does not cover damages or injuries resulting from expected or intentional acts. For example, if an employee were to assault a customer, and the customer sues your business,your liability coverage would not cover the damages. But if the employee was defending himself or the company from a criminal act, the liability insurance would provide coverage.

Your work

This refers to the “workmanship” exclusion, and is common in general liability policies. Insurance policies do not respond to what would normally be picked by a company’s warranty for their work.