Do I Need an Umbrella Insurance Policy?
Courtesy of iii.org
If you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for judgements against you and your attorney's fees, up to a limit set in the policy. However, in our litigious society, you may want to have an extra layer of liability protection. That's what a personal umbrella liability policy provides.
An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. It will also cover you for things such as libel and slander.
For about $150 to $300 per year you can buy a $1 million personal umbrella liability policy. The next million will cost about $75, and $50 for every million after that.
Because the personal umbrella policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. Most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your homeowners policy before selling you an umbrella liability policy for $1 million of additional coverage.
Women and Business Insurance
Courtesy of Women have made great strides in the business world in the past few decades. And business insurance is essential to protecting their hard-earned capital, according to the Insurance Information Institute (I.I.I.).
Forty years ago women owned just 5 percent of all small businesses in the United States. Today, they own one-third, generating nearly $1.5 trillion in revenue and employing over 7.9 million people. Between 1997 and 2015, the number of women-owned firms increased by 74 percent, according to the 2015 State of Women-Owned Businesses Report. And the majority of new women-owned firms launched in 2014 were owned by minority women.
“Whether launching a new business, growing your business or competing in the global marketplace, it is essential that women business owners get the right type and amount of coverage,” said Loretta Worters, a vice president with the I.I.I. “Without adequate insurance, a natural catastrophe, employee lawsuit or even the death of a business partner could destroy what they’ve built,” she warned.
In recognition of Women’s History Month, the I.I.I. recommends the following six strategies to ensure that your business is financially protected:
1. Assess your risks. What business property, including inventory and equipment, do you own? Do you have employees? What is the nature of your business? This basic snapshot will help an insurance professional provide recommendations about the type of coverage your business needs.
2. Find the right insurance professional. When shopping for insurance most business owners use an insurance broker—you’ll want to find one who is familiar with the risks of your specific business. A qualified broker can help collect all the necessary information and paperwork to apply for a policy, and comparison shop among several options and quotes. Here are some tips for finding the right fit: Finding the Right Insurance Professional for Your Business.
3. Compare rates. As a general rule, you’ll want to get business insurance quotes from at least three different companies. Try to find policies that offer similar coverage so that you can clearly compare prices.
4. Evaluate insurers, policies and services. When purchasing business insurance, price is just one consideration. Make sure a potential insurer is reputable and in good financial condition. In addition, review and compare policies in depth. Does one policy have exclusions that another does not? In the case of litigation, does the insurer provide an attorney or reimburse you for an attorney you choose?
5. Lower your premiums. Choosing a higher deductible can lower your premiums significantly and insurers will often lower your rates for putting in place programs to minimize losses from fire, theft and employee and customer injuries. This is particularly important for start-ups that are low on initial capital.
6. Review your risks and insurance policies annually. Talk to your insurance professional prior to renewing you coverage each year to determine what adjustments should be made to your business insurance policies. If your business is expanding, you have purchased or replaced equipment or have started working with vendors internationally, you may have new liabilities that require higher insurance coverage.
Don’t Overlook These Coverages
Life insurance is vital to any business—both personal and for the company. Should you die prematurely, a personal life insurance policy can replace your income from the business and protect your family. In the event an owner, partner or key employee dies, life insurance will take care of your business.
Another key coverage is disability insurance. More than twice as many people will be disabled during their career as will die before they retire. “Income protection for small business owners is critical for the long-term security of the owner and the company if they cannot work due to an injury or illness,” said Worters.
Grill Safety Tips
Courtesy of iii.org
Every year, millions of Americans safely enjoy outdoor barbecues, but accidents do happen. According to the U.S. Fire Administration, about 5,700 grill fires take place on residential property every year, causing an annual average of $37 million in damage, 100 injuries and 10 deaths. The majority of grill fires are caused by malfunctioning gas grills. In addition, thousands of people visit emergency rooms every year because they have burned themselves while barbecuing.
In the rare instance of a grill fire spreading to your property, your homeowners insurance would provide financial protection as fire is a covered peril. A homeowners policy covers the following:
- Damage to the house itself.
- Damage to personal possessions such as lawn furniture.
- Damage to insured structures on your property, such as a shed or gazebo.
- Injuries to a guest, under the liability portion of the policy.
Keep in mind you’ll have to pay your deductible before your insurance kicks in, so if damage is minimal and your deductible is high, it may not make sense to file an insurance claim.
However, the best way to enjoy a summer of outdoor barbecues is to take steps to prevent accidents, including maintaining your grill and using it safely.
Grill Maintenance and Storage
Gas grills are generally safe if they are properly maintained and checked for leaks. In some instances, grills are unsafe due to faulty design or construction. (You can search the website of the Consumer Product Safety Commission to see if there has been a recall on your grill.) When setting up at the start of each grilling season, the following tips can help ensure everybody’s safety:
- Check grill hoses for cracks, holes and brittleness. Look for blockages as well, especially in the Venturi tube that runs to the burners. Clear blockages—caused by food drippings, spiders or insects—with a wire or pipe cleaner.
- Run a soap solution (one part liquid soap, one part water) along hoses and at connections, then open the valve at your tank and check to make sure that gas isn’t escaping, which will be indicated by bubbles at the leaking points.
- Adjust hoses as needed away from hot areas or where grease might drip on them.
- Store propane tanks outside, away from your house. Always check to make sure valves are firmly turned off.
Safe Barbecuing Practices
When barbecuing, use common sense and follow these guidelines:
- Operate your barbecue on a level surface, away from your house, garage and landscaping. Don’t move the grill once it is lit.
- Keep children and pets away from ther grill.
- Protect yourself—or whoever is doing the grilling—with a heavy apron and oven mitts that reach high on the forearm.
- For charcoal grills, use only lighter fluid designed for grilling. Never use gasoline or other flammable liquids, and never add more lighter fluid once the fire has started.
- Never grill indoors or in enclosed areas. Charcoal grills produce carbon monoxide (CO) fumes, which can be fatal in unventilated areas.
- Keep a fire extinguisher nearby.
- When you’re done with your cooking, remember that the grill will remain hot for a while. Don’t cover or store your grill until it has cooled, and soak coals with water before throwing them away.
In Case of an Accident
If a grill accident—or any kind of accident—does occur, injuries should be addressed immediately. Run cool water over minor burns, but do not cover injured areas with bandages, butter or salve. In the case of more serious burns, victims should visit the emergency room or an urgent care facility. If needed or when in doubt, call 911.
Once you have dealt with any injuries, assess your property damage and, if the situation calls for it, contact your insurance professional to discuss filing a claim.