General liability insurance

What does General Liability Insurance policy cover?

• Bodily injury

This covers injury arising from accidents that result for your business operations, arising from your premises or for completed operations. This includes injury one gets from the product your sell or the service you provide, as well as accidents inside your business office or place of operations that result in bodily injury. This can also cover physical harm caused by a completed project. For instance, you are a contractor that installed a set of kitchen cabinets to a client. One of the hinges was loose and a piece of wood fell into the customer’s head, causing injury.

• Advertising injury

An advertising injury is an injury to a third-party brought about by the business’ advertising its goods and services. This can occur by copyright or trademark infringement. It can also occur as a claim of libel, slander, or invasion of privacy. Typically, a competitor of your business complains that an act, advertisement, practice, or comment you or your staff has made has damaged their business. For example, in comparing products, your advertisement uses a photo of your competitor’s product and makes a false claim about the competitor’s product. The competitor sues your business for a variety of claims: defamation, trademark infringement, etc. Your commercial policy would provide a defense and indemnity for this kind of claim.

• Personal Injury

Damage to the reputation or rights of a person or business due to slander, libel, copyright infringement, invasion or privacy, false arrest, wrongful eviction, etc.

• Property Damage

The last of the four main types of claims covered by general liability insurance is property damage. Your commercial GLI covers damage caused to third parties and their property by negligence on the part of you or your agents.

Again, property damage claims are a relatively common occurrence for most types of businesses that have a high level of exposure to the public. Something as innocent as a fender bender between two customers in your parking lot can potentially result in a property damage claim against your business, so this is definitely another area where you are better off carrying coverage regardless of your business’ location, industry, etc.

What General Liability Insurance doesn’t Cover?

• Employee injuries

Workers compensation (for injuries to employees while on the job)

• Pollution

Environmental liability insurance (for lawsuits related to pollution such as a gas tank dripping gasoline)

• 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

Operating autos or trucks in your business (Business Auto Policy);

• Personally identifiable information

Your general liability insurance policy doesn’t cover your failure to protect any personally identifiable information that is in your care, custody or control.

• Punitive damages

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

• War

• Acts of terrorism

Each insurer may include additional exclusions. Supplemental insurance policies are available to cover such exclusions. After reviewing the standard insurance policy, draft a list of additional insurance needs and purchase additional policies accordingly.

Shop around

Check with several different renters insurance companies to get rate quotes (an independent insurance agent can provide rate quotes from a variety of companies). Check with friends and relatives to see if they are satisfied with their insurance company.

Increase your deductible

A typical Renters insurance deductible is $250. If you enhance it to $500, you will save up to 12 per cent on your premium. Increase it to $1,000, and you can save up to 25 per cent.

Security Systems

Special burglar alarms and window locks can prevent losses and therefore make your apartment less of an insurance risk. Most any type of security system will help give you a discount, but the type that directly responds to local police and fire departments are most likely going to give you the most discount on your renter’s insurance quote and policy.

Stop Smoking

Smoking is one of the leading causes of residential fires, damaging more than 23,000 homes every year. Some insurance providers offer reduced premiums to non-smokers.

Think long term with your insurer

Long-time customers can usually get discounts from their renters insurance after staying with an insurer for several years. Three to five years can get you a 5 percent discount from several insurers; others offering a discount of up to 10 percent after six years.

Buy your renters and auto policies from the same company

A large number of companies offer “multi-line” discounts if you combine different policies together like renters insurance and auto coverage. By having both policies written by one company it is not only convenient, but it can save you money too.

Save On Renters Insurance With Group Coverage

Ask you agent if they have companies that provide discounts if you belong to groups like AAA or a union. Some companies offer additional discounts if you belong to a group.

Smoke Alarms

Preventing a fire loss is important to you and especially to you renter’s insurance company. Claims due to fire are very expensive and renter’s insurance companies often will give an additional discount for even one fire alarm permanently fixed in the apartment. Please, even if your company does not offer a discount, take the time to install one anyway.

Maintain a good credit score

A good credit score has numerous benefits, including a reduced renters insurance premium. Your insurer will feel more confident in you if they know how well you pay your bills. Also, your insurer will probably look at your credit report and use it as a tool to predict the odds of you filing a claim.

Check your policy annually

Over the course of a year your situation changes. You may sell items in your possession or acquire new ones. An annual review of your insurance policy will allow you to adjust your needed coverage amounts. Insurance companies needs change too so you may find you could qualify for new discounts or programs. Either way by checking what’s out there yearly can potentially keep more dollars in your pocket.

Get a newer apartment in a safe ’hood

When looking to rent an apartment, consider the location of the place. Is it in a safe neighborhood? A high local crime rate will cause your renters insurance premium to skyrocket. So will an area prone to natural disasters (severe storms, floods, etc). Apartments in safer areas with temperate weather usually yield the most affordable renters insurance premiums.

Look for senior discounts

Insurance companies have found that retired people stay at home more and spot fires sooner than working people. If you’re at least 55 years old and retired, you might qualify for as much as a 10 percent discount.

Pay premiums on the Internet

You can save up to $5 every month or even more for dealing charges by submitting your premiums through automatic bill pay, your credit card, or online banking.

Request discounts

You may not be conscious of all the discounts your insurer suggests. Hence, tell your agent to grant you all the discounts you are entitled to.

Shop around

Check with several different home insurance companies to get rate quotes. An independent insurance agent can provide rate quotes from multiple companies. Ask around: Do your friends and family like their home insurance company?

Buy your home and auto policies from the same insurer

Insuring your car and home with the same company often will give you a package discount. This is a good tool to use when shopping around. Usually the agent can tell you what percent the discount is for insuring your car and home together.

Raise Your Deductible

Before your homeowners insurance company pays any claim, you have to pay a portion of the loss. That’s known as your deductible. If your deductible is higher, that means you pay more of a claim and (more important) your insurer pays less. Insurance companies love that. So he higher your deductible, the more money you save on your premiums. The average cost of homeowners insurance is built on a deductible of $500. If you think the odds of having a claim are very low, raise your deductible to $1,000 or more. You migh save as much as 25 percent.

Upgrade your security

Things like deadbolt locks, burglar alarms, fire extinguishers, and smoke detectors can earn you a discount. In some cases, these discounts can offset most (if not all) of the additional costs, so it’s well worth checking with your insurer for details.

Stop smoking

Smoking accidents account for more than 23,000 residential fires every year. Some insurers offer to reduce premiums if no one in the home smokes.

Look for other discounts

Insurance companies love homebodies. They maintain their homes and are quick to spot problems. If you’re at least 55 years old and retired, you may qualify for a discount of up to 10 percent at some companies. And don’t forget about employers and professional associations either. Sometimes group insurance programs offer a better deal.

Maintain a good credit history

Many insurers now check your credit and can adjust your price based on your level of “risk” as judged by your credit history, where allowed by state law. Make sure your credit is in good shape when you apply for policies.

Ask about group coverage

Alumni and business associations often work out insurance deals with an insurance company, which includes a discount for association members. Ask your association’s director about any such deals.

Location, location, location

This one is tough to implement if you already own your home, but… Proximity to fire hydrants, fire stations, etc. can influence your premiums. Not surprisingly, closer is better. No, it doesn’t make sense to move to reduce your premiums, but it might be worth keeping in mind when buying a new home.

Stay with an insurer

If you’ve kept your coverage with a company for several years, you may receive special consideration. Several insurers will reduce your insurance rates by 5 percent after you stay with them for three to five years; and some companies will discount you as much as 10 percent after six years.

Check your policy annually

You want your policy to reflect the value of your home and belongings. If you review your policy every year, you will be able to make the necessary adjustments. If, for example, you just sold a valuable painting, you won’t need the same amount of coverage. But if you added a garage, you’ll need to increase your coverage.

Make payments electronically

Many companies now charge up to $5 for mailed payments, so have your payments automatically deducted to shave that cost. Sometimes the deductions can come from your credit card, so you don’t have to worry if the money is in your bank account when payment time comes.

Home insurance

What is home insurance?

Homeowners insurance, or home insurance, compensates you for losses to your home and your possessions inside it, so purchasing a homeowners policy provides added security for your investment. Home insurance also protects you if you’re legally liable for someone’s injuries on your property, as well as from financial losses caused by storms, fire, theft and other events outlined in your policy.

There are seven varieties of home insurance for home owners and renters. HO-1 is a limited policy covering only the items specifically listed within the policy. HO-2 is a limited policy covering only specific damages to the home that occur due to certain events, these specifications are listed within the policy. The most common policy is HO-3; it covers everything about the home; the structure, contents, and injury liability. For renter’s there is the HO-4 policy, it covers items that are not covered by the landlord’s policy and can be upgraded to include injury liability. HO-5 is like HO-3 except that it is structured to accommodate higher dollar values and reimbursements. HO-6 is a bridge policy for condominium owners define what will be covered by the property owner and what will be covered by the condo owner. HO-8 is for people who own older homes allowing them to insure the home at market value as opposed to replacement cost.

What Do Home Insurance Policies Cover?

Home insurance is one of those expenses that most people pay each year without thinking about what it protects. While there are many different types of home insurance, most policies provide you with certain protections against a loss.

• The building

If you own a house, your insurance probably covers the cost to repair or rebuild the structure, if you experience a covered loss. The value on your policy must match how much it would cost to rebuild your home, not the value of the house if you sold it. If you own a condo or co-op, the policy will protect any improvements you make to the standard unit.

• Your stuff

Your home policy also includes coverage for all property that is in the house. This means all of your furniture, electronics, clothes, toys and anything else you own, with a few exceptions.

• Your garage, sheds and outbuildings

Your home policy also protects other buildings on your property, along with their contents (except for cars and motorized vehicles). Many policies even include coverage for your swimming pool and fences.

• Your jewelry and collectibles

Most policies cover the loss or theft of your jewelry, up to a limit stated in your policy. This may also protect your stamp collection, silverware, coins or art.

• Protection if you are sued

Every home insurance policy should include liability protection. This coverage steps in if you or a family member are sued for many different types of claims. Many policies also reimburse you for legal fees paid to defend yourself.

What other protections does my policy provide?

Homeowners policies regularly provide other types of coverage, including off-premises theft protection and unauthorized use of your credit cards. Make sure you understand which provisions are included in the standard coverage you elect to purchase and which might require supplemental premiums.

• Flood insurance

Homeowners policies do not cover flood damage. The National Flood Insurance Program (NFIP) offers flood insurance through home insurance companies nationwide.

If a mortgage lender determines your home is in a special flood hazard area, you might be required to purchase flood insurance.

• Earthquake insurance

If you are concerned about earthquakes, you can get earthquake insurance with a separate policy.

• Extra coverage (endorsements)

Home insurance policies contain exclusions and limitations for some types of personal property that are particularly susceptible to loss. Some policies place a specific dollar limit on certain property such as jewelry or antiques.

You might want more coverage for certain items than your policy provides. For an extra premium, you can buy endorsements that expand or increase the coverage on these items. Some of the most common endorsements cover jewelry, fine arts, camera equipment, coin or stamp collections, computer equipment, and radio and television satellite dishes and antennas.

Can I own a home without homeowners insurance?

Unlike driving a car, you can legally own a home without homeowners insurance. But, if you have bought your home and financed the purchase with a mortgage, your lender will most likely require you to get homeowners insurance coverage. That’s because lenders need to protect their investment in your home in case your house burns down or is badly damaged by a storm, tornado or other disaster.

If you live in an area that is likely to flood, the bank will also require you to purchase flood insurance. Some financial institutions may also require earthquake coverage if you live in a region vulnerable to earthquakes. If you buy a co-op or condominium, your board will probably require you to buy homeowners insurance. After your mortgage is paid off, no one will force you to buy homeowners insurance. But it is not advisable to cancel your policy and risk losing what you’ve invested in your home.

What’s the difference between canceling and nonrenewing a homeowners insurance policy?

Canceling a homeowners insurance policy and choosing not to renew it are two very different actions an insurance company can take.

Typically, insurance companies can only cancel an active policy if one or all of the following occurred:

• The policy has been in force less than 60 days
• You fail to pay the premium
• You commit fraud or made serious misrepresentations on your application

Nonrenewing a homeowners insurance policy is a decision you or your insurance company can make to discontinue coverage at the end of a policy term. Depending on your state, if your insurance company chooses to nonrenew your policy at the end of the policy term, it must notify you and provide an explanation within a specified time period. You can contact your company’s consumer affairs division if you disagree with the reason or want further explanation.

Analyzing your home

Many factors go into determining the premiums for a homeowners policy. The age of your home, the materials used to build it, where it’s located, the square footage and its distance from a fire hydrant all generally play a role in rates.

The insurer will be able to give you an estimate for rebuilding your house in the event of a total loss.

Where can I buy insurance?

You can buy insurance through your local insurance agent and through insurance companies that sell through their own employees, over the phone, by mail and over the Internet. Consult your state insurance department, the yellow pages of your phone book, and friends or relatives for the names of insurance companies doing business in your state.

In most states, there are dozens, sometimes hundreds of companies to choose from, depending on the type of insurance you’re looking for. You can go to our Find an Insurance Company tool for help.

Lose Weight

Unfortunately, being overweight can cost you money and not just in the large grocery bill. According to studies conducted by the Rand Corporation, obese people spend 36% more money on health insurance coverage and 77% more on the cost of medication than a person with a healthy weight. Obese people typically spend more on health related costs than heavily drinkers and even smokers.

Eat a healthy diet

Your diet is something you can control, unlike heredity, that can have a positive effect on your everyday health. Eating fruits and vegetables, taking vitamins, and avoiding unhealthy foods can make you feel better and keep you in better health.

Have regular checkups

Regular checkups is a crucial tool to early diagnosis. The earlier a condition is diagnosed, the less treatment you will need and the better your odds for recovery.

Ask for generic prescriptions

Asking your doctor if there is a generic alternative can save you money. While he or she may not always prescribe one, most of the time if one is available they will.

Don’t be afraid to dicker

Doctors and other health-care providers know that times are tight, so don’t be shy about asking for a price break. When making an appointment, check with the billing manager of the office to see if the practice has what’s known as a cash-payment discount program. That means you get a price break if you pay for services up front rather than waiting to be billed.

Use a discount card at pharmacies, if available

Some pharmacies offer a discount card if you are a regular customer or don’t have other prescription coverage. Ask if your pharmacy has a program and take advantage of it if they do.

Raise Your Health Insurance Deductible

The higher your deductible, the lower your monthly health insurance premium. Just don’t forget that you’ll be responsible for just about all of your medical bills out of your own pocket until this deductible is reached.

Look For A Group Policy

You may actually qualify for a group health insurance policy that you were not aware of. Many associations and trade groups offer group health insurance plans for their membership. Check with the different grounds that you belong to and see if they have a plan. Or, maybe consider joining a group in your industry that you haven’t previously to make you eligible for their group health insurance policy.

Consider Separate Policies for Individual Family Members

In some instances, it may be more affordable to purchase separate health insurance plans for your family members; as age plays a role in determining how much a policy costs. You might save if the older members of your family purchase their own policies. Or get health insurance coverage for children 18 and under.

Start early

If you’re young and healthy, insurance might not seem like a necessity, but if you get an insurance policy while you’re still young, you’ll get a lower rate than if you wait until you’re older or really need it. In addition, remember that anyone can get sick or have an accident at any time. For this reason, you should try to get a policy while you’re still young, preventing emergency expenses that could deplete your savings down the road.

1.Quit Smoking

Life insurance companies have always differentiated smokers and non-smokers when underwriting their life insurance policies. Smokers obviously pay a higher premium than their counterparts. So, quitting early enough before you need a new life insurance policy may earn you a discount from the premium you would have paid.

2. Seek out low-load policies

“No-load” or “low-load” life insurance policies have fewer expenses built into them, such as agent commissions and fees, than other life insurance policies. This can mean low cost life insurance. For variable life insurance, these lower expenses mean a higher percentage of your premium goes to work for you right away, allowing you to build your cash value faster.

Not many companies sell no-load or low-load policies. No-load policies can be purchased mainly through financial advisors who charge flat fees rather than collecting commissions from insurance companies. Those that sell no-load policies include Ameritas Advisor Services and TIAA-CREF. Also, these policies may not be available in all states.

3. Buy in Bulk

If you’re going to buy $240,000 of coverage, you might as well buy $250,000. If you buy $240,000 worth, you’ll pay $274.80 per year. If you buy $250,000, it will cost $260. How’s that?

Sometimes more insurance costs less, especially as you approach multiples of $250,000. So, for example, a 35-year-old male nonsmoker buying $100,000 to $249,999 of renewable term insurance from USAA Life would pay $1.02 per $1,000 of coverage. For $250,000 to $499,999 of coverage, the rate drops to 92 cents per $1,000.

4. Buy When You’re Young…

Because life insurance companies consider selling a policy to an elderly person a guaranteed loss, they offer a remarkable discount to those that purchase young. The math is really simple: the younger you are when you buy your policy, the more favorable your policy and its premiums.

5. Get healthy!

Getting healthy is a great idea generally, but it may also offer you the advantage of decreased premiums on your life insurance. Smokers pay more, as do those with high blood pressure, diabetes and heart disease. Avoid extra costs by keeping yourself in good condition so that when you apply for life insurance, you avoid the burden provided by poor health.

6. Buy only what you need

Nailing down a formula for how much life insurance is an imprecise science. You should ask yourself how much money it will take to maintain your family’s lifestyle if you were to die. Do you have money earmarked for your children’s education? Reexamine your policy whenever you have a major life change.

Experts advise that you do an analysis annually or at least once every three years. Also, you should always reexamine your policy whenever you have a major life change. For example, if you have a new baby, you have to recalculate college education needs and child-care costs. If you own a home, a mortgage is likely your biggest financial burden. Because your mortgage balance decreases with each payment, it’s important to include those revised figures in your calculations.

7. Don’t Get Taken for a Rider

Insurance companies have come up with a host of extras to pad your life insurance bill, most of them not worth the paper they’re printed on. Consider the accidental-death rider, more commonly called double indemnity. For about $1 or $2 per $1,000 of coverage, an insurance company promises to pay your survivors double the face amount of a policy if you die in an accident.

But it’s foolish to speculate on the manner of your demise, especially since accidental death is relatively rare. If you really want to gamble, buy lottery tickets. Buy enough coverage to support your dependents regardless of the manner in which you shuffle off this mortal coil.

The “waiver of premium” rider is another to skip. Under this rider, which can cost as much as 10% of your annual premium, your insurer will continue your coverage in case you’re disabled. But you should already have enough disability insurance to cover living expenses. If you do, you don’t need a waiver of premium. Finally, some companies offer spousal or dependent riders that add a term-insurance element to your whole life policy that will cover your spouse or your children. Chances are, if your spouse needs term insurance, you can find a cheaper policy. And unless your child is supporting the family, he or she doesn’t need insurance.

8. Double Check Your Discounts

There are tons of discounts that you can qualify for when you purchase life insurance. Make sure that you know which discounts your insurance company is applying to your life insurance policy or ask for others that you may qualify for. Do you pay your bill in a lump sum? Do you pay through payroll deduction? Do you have other policies with the same insurance company? You may qualify for discounts and not even realize that you can be reaping the benefits and save on life insurance.

9. Avoid Hidden Fees

Convenient monthly payments, automatically deducted from your checking account. What an easy way to pay your life insurance premium. But before you sign up, ask a simple question: What’s this going to cost me? At many insurers, the answer is plenty. Metropolitan Life, for example, charges some life policyholders fees equal to 15% to 20% of the annual premium simply for the privilege of making monthly payments. Charges like these are often built into the payments, so you may not even know they put the bite on you.

10. Squeaky Wheel Gets the Grease…

Because interest rates and incentives are constantly changing within the insurance industry, it’s in your best interest to be a squeaky wheel. Yes, check-in with your insurance company once or twice a year, re-evaluate your plan often and make sure that you’re always locked in to the most current and favorable agreement. Who knows, there might be a new offering that wasn’t available to you previously!

Let’s take a closer look at some simple ways to trim a little off of your recreational vehicle insurance premium.

Many recreational vehicle insurance companies provide discounts to customers who are members of some type of recreational vehicle association or club. Discounts vary by insurance company. Call your recreational vehicle insurance company agent and ask for a listing of associations or clubs you can join to receive a discount.

Note: Association discounts are often given for participants in recreational vehicle manufacturing associations and clubs too.

Driver safety courses often qualify an recreational vehicle owner for discounts with some recreational vehicle insurance companies. Your insurance agent can inform you of what programs qualify for discounts.

Qualified driver safety courses are often offered at large recreational vehicle rallies such as at FMCA rallies.

A clean driving record will reduce your insurance premium. It usually takes 3 years (36 months) for accidents and moving violations/citations to stop impacting your insurance rates.

Another way to reduce your insurance premium is to buy multiple policies from the same insurance company. This is called a multi-policy discount. As an example, companies like National Interstate Insurance Company offer discounts when an individual buys an recreational vehicle policy and a companion auto policy.

Homeowner’s discounts are a common way to lower your insurance premium. Ask your insurance agent for more information.

Some insurance companies offer discounts if you pay your premium in full up front.

Adding a security device to your recreational vehicle such as an audible alarm will often qualify for a discount.

As an added note your credit score can heavily impact your insurance rates, so improving your credit score may improve the premium you pay. Credit usage is not allowed in all states, so it varies from state-to-state and carrier-by-carrier. Ask your insurance provider for more information about using credit scores.

Keep in mind that most insurance companies will not stack discounts. As an example, even if you are a member of multiple qualified associations and you have taken a qualified driver safety course, the insurance company will most likely give you one 5% discount.

The new numbers underscore warnings by President Obama about the growing cost of health insurance and were embraced by Democratic lawmakers who are pushing for legislation to change the nation’s health care system. “The trends are crushing millions of businesses and American families,” Senate Majority Leader Harry Reid of Nevada said.

The annual survey of more than 2,000 companies also found that 40% of small-business employees enrolled in individual health plans pay annual deductibles of $1,000 or more. That’s almost twice the number who paid that much in 2007.

Drew Altman, president of the Kaiser foundation, said it is the combination of higher health care costs along with the recession and other rising prices that “creates the pain level.”

Those who oppose Democratic versions of the health care legislation, such as Senate Minority Leader Mitch McConnell of Kentucky, agree that the rising cost of insurance has become a hardship on families and businesses. The two parties disagree on how to address the problem.

“It’s a significant issue for our members,” said Jeri Kubicki with the National Association of Manufacturers. “They want to continue to offer this benefit. At the same time, it’s a daunting task to try to control costs.”

Since 1999, health insurance premiums for families rose 131%, the report found, far more than the general rate of inflation, which increased 28% over the same period. Overall, health care in the United States is expected to cost $2.6 trillion this year, or 17% of the nation’s economy, according to the non-partisan Congressional Budget Office.

Sen. Max Baucus, D-Mont., who is leading a bipartisan group negotiating health care legislation, has promised that his bill eventually will drive down costs. Baucus said the bill could come up for a vote this month.

As insurance costs increase, workers are also picking up a larger share, the survey found. The average employee with family coverage paid 26% of the premium, the study found, but 41% of companies said they are “very likely” or “somewhat likely” to increase the amount employees pay for coverage in the next year.

Marion Cowen, insurance coordinator for H.A. Cover & Son Lumber, Co., in Thayer, Mo., said her company switched to a plan with a $1,000 deductible a few years ago. Though Cowen expects the cost of the plan to rise about 4%, she said she doesn’t think employees will pay more.

“If there’s any way they can bring the costs down, that is the big thing,” Cowen said of efforts in Washington. “The costs just seem to be going up, up, up.”

Source: www.usatoday.com