Frequently Asked Questions
Below are some of our frequently asked questions. If you have any other
questions or concerns, please feel free to contact us.
| What types of business property insurance should I consider buying?
The best thing to do is to take a complete inventory of all your business property, determine its value and decide if its worth insuring. Then check to see that the items on the inventory list are included in the basic business property policy and covered for the correct amount. If not, ask the agents at GLB Insurance Group of Nevada, a Trusted Choice® agency.
You also need to consider your business situation. Are you planning a major expansion? Does your inventory have a decidedly peak season (like a toy store in December)? Or does it fluctuate throughout the year (like a clothing store)? Is your liability limit high enough in light of the new job contract you just signed? Business policies are designed to be added to or subtracted from to meet your needs. Be sure to discuss changes to your business with your GLB Insurance agent so that he or she can help you ensure your policy still provides adequate coverage.
Some common additional coverages for business property include (but are by no means all-inclusive):
Boiler and Machinery Insurance
Even if you do not own a boiler, you may need this coverage. The term "boiler and machinery insurance" is gradually being replaced with terms such as "equipment breakdown" or "mechanical breakdown" coverage. This insurance provides coverage against the sudden and accidental breakdown of boilers, machinery, or equipment including computer and telephone/communication systems. Coverage usually includes reimbursement for property damage, expediting expenses (e.g., express transportation charges), and business interruption losses.
Builders Risk Coverage
This covers buildings in the course of construction. Depending on the policy, this coverage can be for either the building's value at the time of loss or its full value at the time of completion.
Building Ordinance Coverage
Provides coverage when a community has a building ordinance stating that when a building is damaged to a specified extent (usually 50%), it must be completely demolished and rebuilt in accordance with current building codes rather than repaired. Special attention is required when establishing the amount of insurance.
Business Interruption Insurance
This covers the loss of earnings as a result of damage or loss of business property. Reimbursement for salaries, taxes, rents, and other expenses plus net profits that would have been earned during the period of interruption can be included.
Commercial Crime Coverages
This covers money and securities, stock and fixtures against theft, burglary and robbery both on and off the insured premises and from both employees and outsiders.
Debris Removal Coverage
Covers the cost of removing debris after damage from a fire or any other covered peril that requires debris removal before reconstruction of the damaged building can begin. This is not part of fire insurance coverage and must be added by endorsement.
Fidelity Bonds
This covers business owners for losses due to dishonest acts by their employees.
Glass Coverage
This provides coverage for glass breakage such as store windows and plate glass on office fronts.
Back to Top
|
| Who decides how much my business property is worth?
Property insurance can be purchased on the basis of the property's actual cash value, on its replacement cost, or on an agreed amount. The differences among the three are:
Actual Cash Value
Is the replacement cost of the item minus depreciation. For example, a new desk may cost $500. If your 7-year-old desk gets damaged in a fire and its value has depreciated by 50% then the amount you would receive from the insurance carrier is $250.
Replacement Coverage
This coverage pays the cost of replacing an item without deducting for depreciation. So, if today's cost for a desk of a size and construction similar to the 7-year-old one damaged by fire would determine the amount of compensation. If it costs $500 today, that would be the replacement coverage.
Agreed Amount
Art objects, antiques and other unique items are usually insured at or on an amount agreed upon when the policy is being written. An appraiser values the goods to be insured and the business owner and the insurer agree upon an amount that the insurer will pay if the goods are destroyed due to a covered peril.
Check your policy. If you prefer replacement coverage and do not already have it, this coverage can be added to your policy. Inflation-guard coverage, automatically increases your insurance amount a certain percentage, protecting your property against rising construction costs. Your GLB Insurance agent can tell you about the costs involved.
Back to Top
|
| What kinds of events does business insurance cover?
Basic property insurance policies generally cover losses caused by fire or lightning and the cost of removing property to protect it from further damage (e.g. removing inventory or equipment from a damaged building so it won't be stolen). "Extended perils," including windstorm, hail, explosion, riot and civil commotion, and damage caused by aircraft, automobiles or vandalism, are usually covered in a standard policy. Other important perils, often not covered and considered "optional" in almost all standard policies, include earthquake and flood damage, building collapse, and glass breakage.
Property insurance can be written as either a "named peril" policy or an "all risk" policy. A named peril policy provides coverage for those perils specifically named in the policy. An all risk policy covers loss by any peril not specifically excluded in the policy. The term "all risk" does not mean that all perils will be covered and, to avoid confusion, is often replaced with the term "special form" or "special causes of loss" coverage.
Check with your GLB agent on the perils covered by your policy. If you wish, additional coverage can be added.
Back to Top
|
| Everybody seems to be suing everybody else these days. What if someone sues my business?
No business can afford to be unprepared for a lawsuit. Liability insurance protects your business assets when the business is sued for something the business did, or failed to do that contributed to injury or property damage to someone else. Liability coverage extends not only to paying damages but also to the attorneys' fees and other costs involved in defending against the lawsuit--whether valid or not.
The standard business owners policy provides liability coverage, as does a separate policy known as a commercial general liability (CGL) insurance policy. Generally, commercial liability insurance, whether purchased in a separate policy or as part of a standard business owners policy, will cover bodily injury, property damage, personal injury or advertising injury. The medical expenses of a person or persons (other than employees) injured at the business or as a direct result of the operations of the business are also covered.
Usually excluded from both types of liability insurance policies are suits by customers against a business for nonperformance of a contract and by employees charging wrongful termination, racial, gender discrimination or harassment.
Check with your GLB Insurance agent for help finding liability protection covering the situations that may arise in your business. We find ways to fill in the holes.
Back to Top
|
| What about the cars and truck that I have in my business? Is the coverage like what I have on my personal auto?
Yes, but in addition to covering the vehicles you own for liability, medical payments, uninsured motorist coverage, comprehensive and collision, it also covers you when you rent a car and when your employees are operating their personal cars for your business. Be sure to review your auto exposures with your GLB Insurance agent.
Back to Top
|
| What happens when I loan my car to someone? Is that person covered by my policy? Am I still covered?
Yes, liability and coverage for physical damage (i.e., comprehensive and collision) always follow your car. So if a friend borrows your car and has an accident, you're still protected against the cost of damages or injuries. Plus, if the driver of your car is insured, his/her policy will also be available to cover the cost of damages and injuries.
The same rules apply when you borrow someone else's vehicle. Your own insurance follows you no matter whose car you are driving. But the vehicle owner's policy is the primary if you have an accident.
Back to Top
|
| What actually happens when I report an accident?
After an accident, you should call GLB as quickly as possible to help you complete a claim form, determine what exactly happened and evaluate any damages or injuries. Your agent will then contact your insurer's claims adjuster (usually within an hour of your report) whose job is to work with you to fix the problem. While compensating you for auto repairs or medical expenses is easy and immediate, determining liability is more complicated. The adjuster will begin the settlement process, the length of which will depend on the cooperation of the other party.
The amount of compensation for your loss can vary according to the adjuster's analysis of the damage. You do not have to accept the first amount of money you are offered, if it is lower than the cost of your repair or recovery. While you may have to do some homework to prove your reported loss is valid, it's worth it to be certain your insurer lives up to the provisions of your policy.
Back to Top
|
| Do I need special insurance for a classic car?
You should always talk to us about insuring your rare and valuable property. Since a classic car usually cannot be replaced, you'll probably want ample compensation if it is lost. A classic car, because it is rare or unique, may indeed require a special insurance policy.
Back to Top
|
| Under what circumstance do I not need certain types of auto insurance?
While most drivers today are generally insured for collision and theft, this coverage may not be necessary for every vehicle.
Liability insurance, as mentioned earlier, is essential and in many states required. But if you drive an older car that isn't worth much money, you may be able to do without collision insurance. If you have an accident, repair costs could easily be higher than the value of your vehicle, thus "totaling" it. This means your insurer will pay you the total book value of your vehicle, and that could be far less than the cost of your vehicles repair. So, collision insurance may not cover your loss adequately.
Since it depends on special circumstances, ask your agent at GLB for assistance.
Back to Top
|
| Is there anything I can do to lower my premiums?
Because your premium is based partly on the level of risk the insurance company must take, there are things you can do to lower your premium. Installing deadbolt locks (to discourage theft), fire extinguishers, smoke alarms, and burglar and fire alarms that alert your local police and fire stations can often save you up to 15 percent on your premium. Check with your GLB agent before purchasing any of these items to see if your insurance carrier has specific requirements to qualify for the applicable discount.
Many insurers also offer discounts if you insure both your home and automobile with the same company. Another way to save may be to increase the deductible on your homeowners policy. If your deductible is $100, it means that you agree to pay this amount first, and your insurance company will pay for damages that exceed this deductible. By increasing your deductible from $100 to $250, or even $500, this decreases the insurance company's risk, which may mean a savings in your premium.
Also, it pays to shop around for insurance coverage just like anything else. Of course, you may want to keep in mind that the extent of coverage also determines the premium cost so the cheapest policy is not necessarily the best. Your agent at GLB can help you evaluate the different policies and companies so you can make the choice that is right for you.
Back to Top
|
| What if I am sued or found liable for injury to another person?
Liability covers bodily injury and property damage to others due to your negligence. The coverage applies to non-auto accidents that occur either at your residence or off the premises. Medical expense payments such as first aid can also be due to the injured party. Should you be sued or suspect that you may be, contact our office immediately
Back to Top
|
| I am a renter, not a homeowner. Do I need insurance?
The same rule of thumb applies to renters as to homeowners. If a catastrophe struck tomorrow, could you afford to replace everything you own? Or if you were sued, would you have enough money to pay legal fees and possibly settle the suit? If not, chances are you would benefit from the protection that renters insurance brings.
Renters insurance offers the same general personal property coverage and liability protection as a homeowners policy. Thus, your camera is insured while you are on vacation, and you are covered if your grandfather clock crashes into the apartment lobby's wall and leaves a gaping hole. In fact, most policies are surprisingly extensive and may include additional living expenses (also called loss-of-use coverage) if you are forced by fire or any other covered peril to live elsewhere.
Back to Top
|
| Isn't my apartment covered under my landlord's policy?
No, the landlord's insurance covers damage to the building and the landlord's property, but not your personal property or liability. Plus, you may be liable for damage to the building if it is your fault. If you go out and leave the stove on and an ensuing fire causes extensive damage to the entire building, you may be held liable to the landlord.
Back to Top
|
| How are prices determined for renters insurance?
Renters insurance is surprisingly inexpensive. That's because you are not insuring a building. Like all property/casualty policies, the value of your property to be insured and other risk factors are weighed by the insurance company to determine your premium. Your agent at GLB can help you find the best combination of coverage and cost that you determine are right for you.
Back to Top
|
| I live in an apartment with three roommates. Do we each need a policy?
Usually, it is best if all roommates are on the same policy although it's possible for each to purchase his or her own coverage. If you do need to "go it alone", you alone receive the security of renters coverage. Check with your agent at GLB.
Back to Top
|
| I own a condo. How is my policy different?
Condo owners insurance covers the same general areas outlined throughout this guide for homeowners in the important areas of personal property and liability. In addition, condo owners insurance provides coverage for some situations specific to condominium unit owners.
Usually, the condominium association buys insurance to cover the property (building and structures) and liability coverage for the general association. If you own a condominium unit, you may be responsible for covering from the "walls in" on your unit, that is, for your personal property and the interior of your unit (whatever area is excluded from the condo association's policy) as well as for your personal liability.
Sometimes, condo owners are assessed by their condo association for losses "outside the walls" that were not completely covered by the association's policy. For example, if the clubhouse is destroyed and the condo association did not have it insured, you could be assessed for a "share" amount needed to replace it.
Back to Top
|
|