Just the FAQs – Frequently Asked Questions
Business Insurance
Should my small business have business income insurance?
Business income provides reimbursement for lost revenue after a covered insurance loss. For a company that does not have a physical address that is crucial to its business, such as a contractor, business income might not be necessary. For store front or main street businesses, like a coffee shop, business income is a must.
What is the difference between general liability and professional liability?
General Liability covers slips, trips and falls meaning bodily injury and/or property damage to a 3rd party. Professional liability is protecting your business against bad advice or guidance.
How is a business owner’s policy (BOP) different from general liability?
A business owner’s policy, or BOP, is a package of coverages, including general liability, that have been grouped together to provide, at minimum, coverage for the basic common losses faced by a business. Not every business has access to a business owner’s policy because of the unique exposures that business might have. It’s important talk to an independent insurance agent about whether a business owner’s policy is a good fit for your business.
What is covered on a commercial general liability insurance policy?
General liability insurance is Not a catch all coverage. There are many liability related accident and incidents that can happen in your business that are not covered by commercial general liability insurance. General liability insurance will Not protect against things you do on purpose. General liability insurance does Not cover your building or property.
What is covered under a fiduciary liability insurance policy?
Fiduciary Liability Insurance provides defense and coverage in the event your business is found negligent in a fiduciary liability lawsuit. If you misappropriate funds, embezzle funds, let a policy cancel or don’t make employees aware of a policy cancel, if you change benefits and don’t notify employees or any number of other acts that effect the benefits you have fiduciary responsibility over, you and/or your business can be held liable.
Personal Insurance
Auto Insurance
What is uninsured motorist coverage?
Often drivers that carry low auto insurance liability limits do not have many assets to protect. So, if you or someone in your car is badly injured by another driver and they have inadequate auto insurance liability limits there is nothing to gain by suing the driver. In that case, you can put a claim in under your own insurance policy for uninsured motorist insurance coverage.
What is the difference between comp and collision coverage?
Collision coverage provides reimbursement for damage to your vehicle after you’ve been in a car accident in which there is no fault or you are at-fault. Comp provides reimbursement for a set of named perils that include, fire, hit an animal, falling object, car gets struck by lightning and more.
How does full glass coverage work?
Full glass coverage is an additional physical damage coverage which can be purchased on a personal or business auto insurance policy. However, full glass coverage often needs to be purchased in conjunction with comp coverage. Full glass coverage adds glass breakage as an additional named peril to the auto insurance policy.
What is covered by comprehensive physical damage on car insurance?
Comprehensive physical damage coverage covers a loss from risks other than a collision including but not limited to hitting a deer, fall objects, water damage, fire, lightning, wind, vandalism and can also include glass coverage. Remember that you must add comprehensive physical damage coverage to your auto insurance policy because it is not part of a basic insurance policy.
If my garage burns down, will my homeowner’s insurance cover my car?
If your car is parked in your garage and there is a fire that causes damage to the car your homeowners insurance policy with NOT cover the loss to your car. For your car to be covered you must carry comprehensive physical damage coverage on your auto insurance policy.
Are no fault and personal injury protection the same coverage?
Yes, no fault and personal injury protection are usually referring to same coverage.
Does my car insurance cover bodily injury and property damage?
Your car insurance most certainly does cover bodily injury and property damage to third parties.
Does my auto insurance pay if someone else is driving my car?
If you give a friend permission to take your car to the store and he is involved in an accident, coverage will be based on the policy for that vehicle – not the driver. Insurance companies require that policy holders declare all drivers in a household, and it can cause problems in the event of a claim if a household driver was not disclosed to the insurance company. After the insurance pays the claim, the company may have the right to cancel the insurance on renewal because the policyholder misrepresented himself when applying for coverage.
What is physical damage coverage on a car insurance policy?
Physical Damage coverage on your auto insurance policy is coverage for damage done to your car. Now if someone else is at-fault then their auto insurance will most likely pay for the damage. But when that is not the case then damage to your auto is covered under physical damage coverage.
Homeowners insurance
Does my credit score affect my rates?
Good credit saves you money on insurance. Many insurance companies use consumer credit reports to assist in the rating process. Statistics indicate insurance scoring is indicative of the potential for losses.
Why do you need to know how far my office is from my home?
Your commute matters! The shorter your commute, the lower the premium. And if your commute status changes from commuter to non-commuter, you may save even more.
What benefit is there to me if I have never filed a claim?
No losses? Save more! Insurance companies review your loss history to assist in determining eligibility and rates. You might qualify for additional savings with a loss-free history!
Should I accept the lowest quotes on each separate insured item to save money?
Insure your home and auto with the same company and save. You could save up to a combined 25 percent when you insure your cars and home with the same company. If eligible, you can save money by having Santo Insurance write your home and autos together!
How does actual cash value (ACV) affect a homeowner’s insurance claim?
Actual Cash Value is way of valuing a property insurance loss after a claim. if your policy is actual cash value, depreciation will be taken out of your payment. Meaning if you have 10-year-old cabinets with a 20-year life and those cabinets cost $10,000 to replace. You will get a check from the insurance carrier for $5,000. (Very simplified for this example this is just informational for your understanding that is not the actual amount you are guaranteed to get).
Is Hail Damage Covered on My Homeowners Insurance Policy?
Hail damage is covered under a homeowner’s insurance policy depending on what form of homeowner’s insurance policy you purchased. A Broad or Special form policy will provide coverage in most cases. However, if you have a Basic or Fire Only homeowner’s insurance policy it is very likely you will not have coverage.
What is coinsurance and how does it affect my building insurance?
Co-Insurance can have a drastic effect on how an insurance loss is valued because not meeting coinsurance requirements can mean you receive payment based on Actual Cash Value instead of Replacement Cost. Basically, Co-Insurance is the percentage in which you need to be within to have your loss valued at replacement cost.
What insurance covers my jewelry for theft?
Theft coverage for jewelry is included on most homeowners and renter’s insurance policies. However, the coverage included on an unendorsed homeowner or renter’s insurance policy can be very limited. If you want to cover a piece of jewelry for it’s true value than you need to do one of two things:
- Specifically schedule the piece of jewelry onto your homeowners or renter insurance policy.
- Buy a separate inland marine insurance policy for that piece of jewelry.
What is NOT Covered on my Homeowner Insurance Policy?
Every homeowner’s policy is different and every homeowner’s insurance carrier has different unique coverage… Basically there are NO absolutes here. There are seven perils that are not covered on any of the standard Basic, Broad or Special form homeowner’s insurance policies and those seven perils include:
- Ordinance or Law
- Earthquake
- Flood
- War
- Nuclear Hazard
- Wear and Tear
- Intentional Acts
How is condo insurance different from homeowner insurance?
Condo insurance has some very significant differences from traditional homeowner’s insurance. The notable is how the Dwelling or Building is insured. When you purchase a condo, you are purchasing the air inside the building. Most the structure is not yours. Therefore, the insurance you purchase does not need to cover the entire building. Additionally, when you own a condo you will most likely be part of a condo association. If there are problems with the building or public space, you can be Assessed as part of association to fix damages
Is debris removal covered on homeowner insurance policy?
Debris removal is covered under most homeowner insurance policies. However, the amount of debris removal coverage you receive is going to vary depending on the carrier. Most often debris removal is going to be covered within the Dwelling Coverage or Coverage A on your homeowner’s policy.
Personal Umbrella Insurance
What is a personal umbrella policy?
An umbrella insurance policy overlies your personal insurance policies and provides an extra layer of liability insurance. Policies covered under umbrella would include auto insurance, homeowner’s insurance, boat insurance, rental property insurance, etc. If the limit of liability is used up on the underlying policy, then the umbrella kicks in to provide additional coverage.
When should I purchase a personal umbrella policy?
recommend purchasing an umbrella policy when the insured owns an auto. However, most people do not buy umbrella policies until one of two things happen: They buy properties (i.e. home, rental property, land); They have children. We encourage you to consider a personal umbrella policy today!
Workers Compensation Insurance
How are worker’s compensation premiums calculated?
Workers’ comp insurance premiums are calculated according to how employees are classified (with regards to the specific type of work they perform) and the rate assigned to each employee classification. The premium rate itself is expressed as dollars and cents per $100 dollars of payroll for each class code. In most states, the National Council on Compensation Insurance (NCCI) determines the classification rate and experience modification factor (MOD).
Can an employee sue my business if I have workers comp?
Workers compensation insurance was created to guarantee employees medical benefits in the event of work related injury. In exchange for that guarantee, employees lose the ability to sue their employer.
How does pay-as-you-go workers comp help my business?
Pay-as-you-go workers comp allows employers to pay their workers compensation premiums as they pay payroll. This is a great tool for cash flow as you’re not overpaying all year long. Additionally, by paying premiums only on what you use there is a diminished chance that you will have issues at the yearly audit. If you qualify for pay-as-you-go the program is very valuable.
What is employer’s liability on a worker’s compensation policy?
Workers Compensation insurance was created to protect both workers and business owners. If a worker gets hurt the worker’s compensation coverage provides for medical expense and in exchange the employee gives up the right to sue his/her employer. However, there are cases where the employee can still sue the employer and in the event, that the employee does sue Employer Liability provides coverage to business against the employee. Employer Liability is found on the worker’s compensation policy.
Life Insurance, Long-term Disability and Long-term Care
What is universal life insurance?
Universal life insurance is a unique product in that it is two different products packaged together. The first product is a one year annual renewable term life policy at the face amount listed on the policy. The second product is a cash value account that grow at either a guaranteed interest rate or the current rate whatever is higher. Universal life insurance has some advantages such as the ability to cash out at any time and the ability to change amount of premium payments.
How much life insurance should I buy?
The most common reasons for purchasing life insurance include coverage of debt, specifically a mortgage, replacing lost income for survivors and making sure there are funds available for education of children. How you determine how much life insurance you need is really a personal decision. Speak to our life insurance agent have an honest discussion about what you hope to cover with your life insurance and what your financial capabilities are and make your decision from there.
Why is there life insurance for children?
Placing a life insurance policy on a child can make some people a little uncomfortable. The thought of a child passing is often too hard for parents or grand-parents to bear. However, most life insurance policies bought on the lives of children are not purchased as a means of providing financial relief in the event a child passes. Instead whole and universal life insurance policies are bought as presents for children. These life insurance policies become tools for the child later in life. It may take 20 years for the child to see the benefit of the present but these children are often rewarded quite well for the investment made in life insurance.
Does long-term care insurance cover nursing home cost?
Long-term care insurance does cover nursing home cost as part of the general benefit structure. There are many different benefits that come to long-term care insurance. As our population ages, long-term care insurance is quickly going to become one of the most important insurance policies we own.
Do I need long term disability income insurance?
Long-term care insurance becomes more important every single day as the cost of providing health care rises. Families are going bankrupt paying the long-term care expense for elder loved-ones that can no longer make it on their own. Long-term care doesn’t just provide coverage for the nursing home or facility. Long-term care policies can also provide coverage for in-home care as well as many other benefits you may not be aware of.
Who do I buy key person life insurance for?
Key person life insurance is a unique form of life insurance that protects the business from a loss of revenue following the passing of an employee. Defining who keystone or key employees are is up to you, but a good idea would be to partner with an insurance agency, like Santo Insurance, that understands how to determine who those key employees are.
What is the difference between whole life and term life insurance?
When you purchase a whole life insurance policy that policy is guaranteed for as long as you can pay the premiums. In addition, whole life has a cash account that grows at a pre-determined fixed rate. Term life insurance is very simple. Pick a death benefit. Pick the number of years you would like coverage. The insurance carrier provides you with a premium based on your health. You pay the premium each year you have insurance until the policy runs out.
What’s the difference between group life and individual life insurance?
Group life insurance is a life insurance product that is provided by an employer. Sometimes the employer will cover the premium and other time group life is an optional benefit that the employee will purchase if they desire. Individual life insurance is a product that you buy and own yourself that is separate from anything that is related to your work.
Flood Insurance
Do I need flood insurance?
You do need flood insurance if you own property. a flood can happen anywhere, not just in traditional flood zones, as was the case with the Northeast US and Hurricane Irene several years back.
How does my flood zone effect flood insurance premium?
It’s true. The flood zone your home is in will impact your flood insurance premium. There are four different types of flood zones mandated by the national flood insurance program, and they are A, B, C, X. “A” rated flood zones are considered high risk and carry the most expensive premiums. Flood zones B, C, and X, however, are considered low to moderate risk and the premiums are much lower relative to zone “A.”
Is flood covered under homeowner’s insurance?
Flood loss is NOT covered on your homeowner’s insurance. Flood is covered by a separate individual policy which can be written by standard insurance carriers but is run by the National Flood Insurance Program. Rates are set by the federal government so the individual carriers like Travelers Insurance for example just administer the program.
Health Insurance
What is coinsurance and how does it affect my health insurance?
Coinsurance on a health insurance policy is a relatively straight-forward concept. If coinsurance is listed in the coverages of your health insurance policy the coinsurance percentage listed is the percent of the benefit expense which you the insured is responsible for.
How do I set up a health savings account?
Health Savings Account or HSA is a type of bank account that you contribute to with pre-tax dollars and grows tax-deferred. The only catch is that you must use the funds on approved health and wellness related products. You can set an HSA up with many health insurance carriers as well as most local and national banks.
What is a high deductible health insurance policy?
A high deductible health insurance policy places the level of upfront cost directly on the policy holder but in exchange has significantly reduced rates versus comparable HMO or EPO health plans. With a high deductible health plan the insured is responsible for 100% of the upfront cost up to a certain dollar amount.
What is considered a pre-existing condition on health insurance policy?
A pre-existing condition on a health insurance policy is any prior medical condition you have developed or sustained prior to purchasing the health insurance policy.
How do I offer my employees health insurance?
The best way to offer your employees health insurance is to sit down with independent insurance agent like Santo Insurance, and discuss the unique needs of your business. Health Insurance is not the type of product that you want purchase from a menu style format.