by Colin Moor, CAIB | Jan 16, 2013 | Research Centre
It’s that time of the year, and a hole-in-one competition is a great way to add excitement to a golf tournament.
While it may seem unlikely that a hole-in-one would occur, they DO happen … and as tournament organizer or sponsor you need to be prepared to pay for the big prize (such as a car) if a player achieves this feat.
So, how can you enjoy the benefits of a hosting the exciting competition … without the risk?
With a hole-in-one insurance policy (a real must for charity tournaments).
With one of these “prize indemnity insurance policies” if you have a hole-in-one contest winner, the insurance company becomes fully responsible for paying out the prize.
If you would like additional information or a quote for your tournament, just go ahead and contact us.
by Colin Moor, CAIB | Dec 24, 2012 | Research Centre
There are several ways you can purchase business and personal insurance.
You can buy it over the Internet. You can call an 800 number and buy it over the phone directly from an auto insurance company. You can call an insurance agent (also known as “captive agent”) or you can call an independent insurance broker. In some cases, you could even buy insurance from a bank or credit union.
How do these companies differentiate themselves?
Some brag about their superior service when you have a claim. Some tout how easy it is to buy from them.
So, who is your insurance provider?
Is it a bank, a credit union, a direct-to-consumer insurance company or a “captive agent” offering only one insurance company?
How about partnering with an independent insurance broker (a.k.a independent insurance agent), and know that you’re dealing with someone who works for you?
At Marhen Insurance we’re independent insurance brokers. That means we’re not tied to any specific insurance company.
If a “captive agency” or a bank only sells one-size-fits-all policies, all you can get there is a one-size-fits-all policy.
But you might be better off with a policy that fits you, not anybody else. If it fits better it might protect you better and help you sleep better at night.
This quick video explains some of the differences:
[youtube=http://www.youtube.com/watch?feature=player_embedded&v=w6no9-a0lpk&w=530&h=385&rel=0]
by Eddie Rodriguez, CAIB | Dec 13, 2012 | Research Centre
Let’s be honest: Even if you have a good understanding of what insurance does for you or for your business, deep inside, we all believe that peace of mind should be free, and that we shouldn’t have to pay a “premium” to enjoy it.
In reality, though, we all know that our modern society would not be able to function without the safety net provided by insurance.
As you attempt to achieve your company’s goals you will naturally take a number of risks that may bring about accidental losses (to your property, your income, through liability to others, etc.).
While some losses you may be able to absorb (pay for) yourself, in many cases you will want to ‘transfer the risk’ and costs associated with those loses to someone else: an insurance company.
Click here to see some some scenarios where you would be happy that the risk was transferred to an insurance company, and that the loss did not directly impact your company’s ability to survive and grow.
By the way, risk management is not merely about insurance.
Insurance is simply one of many ‘risk management techniques’ you’ll need to implement in order to achieve your growth and profitability goals.
Still, a day doesn’t go by without someone telling me that they really don’t enjoy – OK, they hate – paying for something they can’t see or touch, and hope they never have to use.
So, what could possibly be worse than paying for insurance?
Paying for it month after month, year after year … believing that “you’re covered”, only to find out – when the unexpected happens – that you are NOT.
Ouch!
How do you prevent that from happening to you?
Here’s the most important message I want to share with you in this article: Traditional ‘business insurance’ and traditional “Commercial General Liability” (CGL) policies are not sufficient to protect technology businesses against what I call “The Monsters” (risks).
In fact, as an IT consultant, software developer, game developer, web designer, owner/executive in charge of a data centre or other type of tech business you face risks that are usually excluded from coverage in regular business insurance policies.
Regardless of how mysterious, complex, or boring you find insurance, you must make sure that your policy provides coverage for the types of risks your technology business is exposed to.
Some of the coverages that you may need include:
- Technology-Specific Errors & Omissions
- Copyright or Trademark Infringement Liability Protection
- Property – Including, as needed, EDP Property and R & D Property
- Network and Information Security Liability
- Reputation Injury and Communication Liability
- Business Interruption
- Commercial General Liability
- Equipment breakdown coverage
- Media Liability Protection
Also, ask your broker to show you that the policy definitions of “business activities” actually match what your business does, and if not, ask if the policy allows for inclusion of your own definitions.
It’s true that properly insuring an IT business can be tricky. Our industry has product managers at insurance companies struggling to figure out ways of covering you from “social-media risks” and other Monsters that didn’t exist a few years ago.
The good news is leading insurance companies are finally paying attention. They’ve developed quality insurance products designed specifically to protect tech companies.
By the way, I know that some smaller tech firms try to get by without proper “risk transfer” (insurance) plans.
If you know anyone operating without an insurance safety net, please remind them that one of the truly sad realities of today’s business world is that you can be sued … even when you didn’t do anything wrong … and even after your software or service performed as expected.
Sure, you might win the lawsuit … after trading a big chunk of your hard-earned money for legal defense fees.
In fact, legal costs generally represent a large portion of the overall Professional Liability claims cost. That’s due to the need for expert (read: more expensive) witnesses and lawyers.
Bottom line – given the complexities of a technical business it makes sense to seek out well-designed, technology-specific insurance coverage from insurance companies – and brokers – who specialize in technology. That is the first step in eliminating any looming doubts about whether or not you are covered.
by Eddie Rodriguez, CAIB | Jul 20, 2011 | Research Centre
You’ll be happy to know that we work with several insurance companies who offer specialized insurance policies and coverages for the IT industry.
Because not all insurance companies (or their IT products) are the same, we’ve done the homework for you and have sourced out leading insurers that cater to various sub-segments of the the IT industry … from one-person firms to large multi-national companies.
Here’s are the types of IT businesses we work with – Is yours listed?
- I.T. Consultants
- Software and game developers
- Computer Training
- Data processors
- Data Storage/Retrieval Services
- Website Developers
- Web hosting and design facilities
- Access providers and co-location facilities
- Systems integrators, value-added resellers, and consultants
- Hardware, equipment & component manufacturer / assemblers
- Hardware Sales & Support
- Medical technology companies
- Internet, networking and other communications services.
and also:
- Telephone operations
- Telegraph operations
- Personal communications services
- Cable system operations
- Telecommunications component and equipment manufacturers
- Information service providers
- Interactive media services
- Telecommunications infrastructure development projects.
If you’re not sure if your type of IT business fits into one of the above categories, go ahead and contact us, using this brief online form.
The key thing to remember is that we can custom-tailor an Insurance Protection Plan that fits your needs.
by Colin Moor, CAIB | Jul 12, 2011 | Research Centre
Imagine your home is damaged. You call your insurance agent to report the claim. And then you hear the worst news possible, “I’m sorry. That’s not covered by your policy.”
Now, you have a real problem.
The unfortunate truth is no insurance policy covers you for everything that could possibly happen to you or your property. However, with a little bit of understanding you can make sure you have the protection you want … and make sure your claims get paid by the insurance company.
Beware: It’s Not Always Covered
Just because you have an insurance policy that doesn’t mean your home is covered for everything.
Your home policy doesn’t cover you against every “cause of loss”.
What’s that?
Fire is a cause of loss. High wind is a cause of loss. These are also known as “perils” in insurance terminology.
A standard home policy excludes many causes of loss. That is, it does NOT protect you from certain perils – like earthquake, flood and surface water, termite damage and many more. That means if your home is damaged by one of these excluded perils your policy will not respond. You have no insurance against them.
If you want insurance against some of these perils, you can buy it … like earthquake or flood insurance. However, some excluded perils are not insurable … like insect damage. Be sure to discuss your policy exclusions with a broker in our office and buy the protection you really need. Don’t be caught by surprise after the damage is done. It’s too late to buy insurance then.
Special Limits On Personal Property
As if your home policy wasn’t complicated enough already it includes “special limits” of protection for some of your personal property. A “special limit” reduces the protection specifically available for certain types of property.
Property subject to a special limit typically includes … property used for business … cash & coin collections … jewelry & furs … guns … silverware … and more.
Additionally, some of these special limits apply only if the property is lost or stolen – making things just a little more confusing.
For example, the standard home policy typically includes only $1,000 of protection for stolen jewelry. If your $2,500 diamond engagement ring is stolen you’ll get only $1,000 from the insurance company. Ouch! And, if the stone falls out of the ring and is lost, there may be NO coverage at all!
The bottom line is it’s very important you fully discuss these conditions and special limits with your broker and buy the protection you need. Otherwise, you could find yourself with a very nasty surprise … an unpaid claim!
Conducting Business At Home
WARNING! Your home policy has very strict limits and rules about business conducted at home. The protection offered by your policy is severely limited if your claim arises from business activities. Your business property has very little coverage. And in some cases you may have no liability protection at all.
This is not something to take lightly and just assume everything will be fine. Be sure to discuss your home business activities with a licensed broker in our office to make sure you’re still protected.
Other Exclusions and Options
The standard home policy excludes protection for many things. But then the insurance company gives you an opportunity to buy some of them back.
Additionally, you have the option of increasing protection where you personally need it.
There are literally dozens of optional coverages available in your home policy. Here are some of the more common options available to you:
Identity Theft – many home insurers now offer protection for Identity Theft in their home policies. This will help pay the expenses you incur to restore your identity if it’s stolen.
Water & Sewage Backup – the standard home policy excludes damage caused by a water or sewage system backup. You can buy this protection if you want it.
Ordinance & Law –– pays the increased costs of repairing or rebuilding your home that are a result of changes in local building codes. For example, your home has single paned windows. After a loss, the local building department requires double-paned windows. This endorsement pays for the increased cost required by the new building code or bylaw.
Packaged Endorsements – often times an insurance company will package the optional coverages people most commonly buy into a single endorsement. That means for a lower price you can get several optional coverages added to your policy.
There are many more optional coverage and exclusion buy-backs your broker can explain to you. Take a few moments to understand them and make good decisions about your protection.
by Eddie Rodriguez, CAIB | Jul 12, 2011 | Research Centre
What you’ll discover in our “home insurance” articles:
- How your home may not be fully rebuilt – even though you have insurance!
- 11 ways to save money on your home insurance – including how to catch your insurer automatically increasing your premium every year
- SIX primary kinds of insurance in your home policy? Yes … and the right decision for each one
- The secret to brushing off a lawsuit
- How your jewelry and other personal property are NOT covered – and what to do about it!
- Why what’s not covered is more important than what is
- And more!
Your home is probably your most valuable asset. It is also a huge risk for you financially.
What if something happens to it?
A fire? A flood? Vandalism? Will your insurance policy actually pay for the damage? Will it pay for ALL of it?
What if someone visiting you slips and falls and suffers a serious injury? And sues you? An accident like that could put a dent — or worse — in your financial security.
For most people, insurance is a mystery. They know they need to have insurance for their homes (mortgage lenders require it), but they don’t understand the protection provided by the policy. And, more importantly, they don’t understand what their policy does NOT cover and what to do about that.
All homeowner’s insurance is not created equal. In fact, almost none of it is. There are thousands of different products out there, from hundreds of insurance companies. And your policy includes literally dozens of options and decisions you must make that determine how much insurance protection you actually have. Your home policy is not a commodity. It’s something tailored specifically to your needs and desires.
Six Primary Coverages Provided By Your Home Policy
Your home policy protects you in six primary ways. You’ll find these listed on your policy’s “Declarations” page. Here’s what they mean to you.
Dwelling
The word Dwelling in your home policy essentially refers to your home itself. It includes attached structures, as well … like an attached garage. The Dwelling Limit (or Amount of Insurance) stated on your Declarations page indicates the most the insurance company will pay to replace your home if it’s destroyed by a covered claim. Is it enough?
Warning: Don’t make the mistake of thinking your home is fully covered just because you have an insurance policy! You must make sure your Dwelling Limit is enough to rebuild your home. How?
Contact our office and one of our brokers can run a replacement cost estimate that calculates the cost to rebuild your particular home. Be sure to adjust the amount of insurance for your dwelling appropriately. If you don’t you may not have enough insurance to replace your home if disaster strikes.
Note: Some policies include built-in protection above the stated Dwelling Limit – usually a percentage of the Dwelling – just in case the estimate is too low. Be sure to discuss this with us as an additional protection feature. It’s probably worth having.
Other Structures
The most common Other Structures are sheds, stand-alone garages (known as “detached” garages in insurance terms), barns, pool houses, etc. These structures are not directly attached to your home, the “dwelling”.
Other Structures have their own protection limit – the most your company will pay to rebuild them – as stated on your Declarations page. This limit will be significantly less than the dwelling limit … usually 10% – 20% of the dwelling
For most people that’s plenty of insurance for other structures. But not for everyone. You need to know what it would cost to rebuild or replace those structures if they’re destroyed. Discuss it with the licensed professionals in our office. You can buy more protection for your other structures if you need it.
Personal Property
Your personal property is all your stuff – furniture, clothing, electronics, appliances, art collection, jewelry, etc. It, too, has its own protection limit stated on your Declarations page. And, again, this amount is the most the insurance company will pay to replace your personal property.
Your personal property limit is usually 70% – 75% of your dwelling limit. However, you can adjust this upward if you need more protection, Discuss your options with us. We’re here to help!
Regardless of the protection limit for your personal property, there’s a very important question you must get answered. How is your property protected … on an “actual cash value” basis or a “replacement cost” basis? The difference is huge!
In very basic terms, if your property is protected on a replacement cost basis the insurance company will replace your old stuff with new stuff. For example, if your 5-year old TV is destroyed in a covered claim, the company will pay for a brand new TV. That’s a good deal for you.
But if your property is protected on actual cash value basis, an “allowance for depreciation” is applied to the cost of a new TV based on the age of your destroyed TV. The result is you get a settlement amount less than the cost of a new TV. To buy a new TV you’ll have to come up with the difference out of pocket. Not as good a deal for you.
Clearly, insuring your personal property on a replacement cost basis is much better protection than actual cash value. Sometimes it costs a bit more, but not always. Make sure you know how your policy works and check the price both ways. Make the right decision for you.
Loss of Use
If your home is badly damaged you won’t be able to live in it while it’s being fixed or replaced. That means you may have to pay rent somewhere while you’re also paying your mortgage. The Loss of Use coverage on your home policy pays those additional expenses for you.
Your Declarations page may state a dollar limit for this coverage, or it may state a time limit. If there is a dollar limit, this is the most the insurance company will pay for these expenses. If there’s a time limit, your insurance will pay all covered expenses regardless of the amount but only for the specified period.
Liability
Your liability coverage pays if someone sues you for their injuries due to a covered claim. When we think of such accidents we most commonly think of injuries that occur on your property – someone slips and falls, a dog bite, etc.
However, the liability protection under your home policy extends beyond your property to your everyday life. For example, your home policy could also protect you if you knock someone over with a shopping cart at the grocery store.
Liability insurance is all about protecting your assets from someone who sues you. So, you should have at least as much liability insurance as your financial worth. However, more than that may be prudent, and you should discuss your needs and risks thoroughly with a licensed broker in our office. Your current liability limit will be stated on your Declarations page.
Medical Payments to Others
This pays medical bills for a guest who is injured on your property or in another covered claim. The idea is to do the right thing for someone – pay their medical bills – and then hope they don’t sue you. This protection is inexpensive, but could save you major hassles by preventing a lawsuit.
