coverage Archives - Page 2 of 2 - Competitive Edge Insurance

What Classifies High Risk?

in General Business Insurance, High-Risk Insurance, News

At Competitive Edge, we specialize in high-risk insurance. We often get the question, “What is high-risk insurance, and how do I know if I need it?”

Well, the answer is, if you’re a small business owner, general contractor, or even car owner, you likely need high-risk insurance. Depending on the industry you’re in, however, it can be difficult to fund coverage or losses.

There are a couple of ways to identify what classifies high-risk insurance.

Risk Class

Investopedia defines risk class as, “A group of individuals or companies that have similar characteristics, which are used to determine the risk associated with underwriting a new policy and the premium that should be charged for coverage.”

There are some main points that are needed to understand the risk that is associated with coverage:

“An insurance risk class is a way for insurers to underwrite policies based on one’s belonging to a particular risk group.
People in each risk group will generally share similar characteristics that help insurers better estimate the chances that the policyholder will file a claim
Riskier risk groups will pay higher premiums—for example, people who are sick, older, or have a poor driving record.”

Once you determine if you qualify for high-risk insurance, there are additional factors that will determine your premium. These might include:

Age
Amount of coverage
Number of years the coverage is guaranteed
Risk class
And more!

Additional Classifications

One example of a scenario of hard-to-place insurance is from our very own founder, Brenda Jo Robyn of Competitive Edge Insurance. Brenda Jo had to pay an extra $15,000 in order to get her directors on board for her project.

If you have had excessive losses, shock loss, or are a startup (tech and service), it can be challenging to get professional liability coverage. There are, in fact, some extreme costs associated with high-risk coverage.

So, even the professionals have dealt with the difficulties and hoops that surround high-risk insurance (trust us, we get how frustrating it can be to navigate). That’s also why we’re here to help!

Contact Us Today!

Competitive Edge Insurance can help you perform a comprehensive review of all your risk exposure.

Reach out today for more information from our experts on high-risk insurance!

BEWARE: Workers’ Comp Insurance for Independent Contractors

in Construction, General Business Insurance, High-Risk Insurance, News, Workers' Compensation

As you may know, most states require employers to have workers’ compensation insurance. These insurance policies can help recover most of your employee’s lost wages while they recover from a work-related injury or illness.

It also helps to cover your employee’s medical expenses as it provides their family with death benefits if they, unfortunately, pass away.

What is Workers’ Compensation Insurance?

Workers’ compensation insurance are policies that provide medical benefits and wage compensation to workers injured on the job, in exchange for eliminating their right to file a lawsuit against their employer’s negligence.

Workers’ compensation benefits are designed to help employees if they are unable to work, cover medical expenses, as well as other expenses and rehabilitation costs associated with disability or illness. As you look to explore workers’ compensation options, it’s important to look for one that provides adequate coverage and compensation for your employees.

When you invest in a properly designed policy, it ensures you and your employees remain financially secure. It’s also important to look at the specific benefits that are offered within your policy. Typical workers’ compensation insurance policies cover medical benefits.

What is Covered with Workers’ Compensation Insurance?

Specific workers’ compensation laws vary depending on your state; however, the most common compensation states that require workplace injury insurance include the following:

Payment for lost wages
Vocational rehabilitation
Permanent disability
Temporary disability
Medical costs and treatment

How to Prepare for Employee Claims

Accidents happen. It’s part of life. It doesn’t matter how safe your business is, there’s always the chance an employee will get sick or injured on the job. For this reason, nearly every state requires business owners to have coverage for their employees. Different states, however, have various regulations.

Ensure you have an expert on your team to help understand what your specific business needs are. For example, if your business is in California, you are required to obtain workers’ compensation insurance even if your business is as small as just one employee. In Florida, however, you need this coverage if you have at least four employees.

Signing up for workers’ compensation depends on the location of your business. Typically, states recommend you purchase workers’ compensation insurance through a private insurance company, while others may require you to buy it through a state-run insurance fund.

It’s also important to understand the cost associated with investing in workers’ compensation insurance. The risk associated with your specific business will determine the cost of your insurance payments. This all sounds pricey, but remember: the costs associated with not having workers’ compensation insurance might be the motivation you need to start considering your options.

Without workers’ compensation insurance, you put yourself and your business at risk of fines, and could even face potential jail time for not complying with regulations. If an employee runs into a problem that would have been covered by workers’ compensation insurance, you may be responsible for covering their expenses, and you may also open yourself up to litigation.

What You Need to Know About Workers’ Compensation as an Independent Contractor

Every contractor needs general liability insurance. While the law does not require it, it is considered best practice to ensure against the kinds of injuries and lawsuits general liability is targeted to.

Large contractors may own commercial buildings that require property insurance, where smaller contractors or those with a specialty may need different coverage.

At Competitive Edge, we don’t claim to know your needs until we talk to you. What’s right for one company may not be a choice that meets your needs. Even if you have suffered a shock loss, large claim, or lawsuit, and find that your options have narrowed, we can work with you.

The first step is to show us under the hood so we can help you find the right carrier and coverage to protect your business today and always. Contact Competitive Edge Insurance today for more information about high-risk coverage today!

What’s happening with EIDL?

in EIDL, General Business Insurance, News

Are you like many others received an alarming email from the Economic Injury Disaster Loan Program (EIDL) through the Small Business Administration (SBA)?

As part of EIDL requirements, you are required to have hazard insurance in order to apply for the EIDL loan. The SBA recently sent out an email to all of those who have received the EIDL loan, and they are requiring proof of insurance in order to get your loan forgiven.

As a business owner, if you do not have hazard insurance, now is the time to get it! Brenda Jo at Competitive Edge has helped many people acquire hazard insurance to ensure they remain compliant with the EIDL requirements.

Here’s a look at what the email states, and why you might need hazard insurance.

The email stated:

“The SBA is launching a new round of Economic Injury Disaster Loan (EIDL) Advances – called Targeted EIDL Advance – which provides eligible businesses with $10,000 in total grant assistance. If you received the EIDL Advance last year in an amount less than $10,000, you may be eligible to receive the difference up to the full $10,000. The combined amount of the Targeted EIDL Advance and any previously received Advance will not exceed $10,000.”

Along with additional information claiming that:

“Businesses eligible for the Targeted EIDL Advance must meet ALL the following eligibility criteria:

Located in a low-income community, as defined in section 45D(e) of the Internal Revenue Code. The SBA will map your business address to determine if you are in a low-income community when you submit your Targeted EIDL Advance application.
Suffered economic loss greater than 30 percent, as demonstrated by an 8-week period beginning on March 2, 2020, or later, compared to the previous year. You will be required to provide the total amount of monthly gross receipts from January 2019 to the current month-to-date.
Must have 300 or fewer employees. Business entities normally eligible for the EIDL program are eligible, including sole proprietors, independent contractors, and private, nonprofit organizations. However, agricultural enterprises, such as farmers and ranchers, are not eligible to receive the Targeted EIDL Advance.”

The EIDL has said that loans won’t be forgiven unless you have proof of insurance coverage. If you’re looking to check which Covid-19 loans are forgivable, check this list.

Why is SBA changing its loan policy?

Lenders and CDCs are required to ensure that all collateral with a recoverable value is adequately insured in order to protect the ability to recover on the SBA loan. Generally, SBA will not require that you pledge collateral to secure a physical disaster home or business loan of $25,000.

What type of insurance do you need?

Under the requirements for the EIDL, the SBA requires that your business has hazard insurance to cover 80% of the loan amount. Hazard insurance is a term for coverage the may be included within several different types of property coverage.

If you have any kind of business property insurance, you are probably covered. Commercial property insurance is considered hazard insurance. This coverage protects your company’s physical assets, like buildings, furniture and equipment, supplies, computers, inventory, customer’s goods, signs, fencing, and even lost income from damage or loss.

The SBA does not allow personal hazard insurance to be considered for loans. Business auto insurance is also not allowable coverage for this requirement.

Do you have the right coverages and the correct amounts to satisfy your SBA loan?

The SBA is requiring you to have hazard insurance as a requirement to apply for the EIDL loan. If you received EIDL funds without coverage, you should contact your insurance agent as soon as possible. The SBA requires that at least 80% of your loan amount is covered with hazard insurance. It may be beneficial to have 100% of your business property value covered with hazard insurance.

There are a few other rules related to the insurance coverage that the SBA has stated:

The insurance must be in the name of the business and must show proof of business property.
If someone is a sole proprietor, and they have a DBA, the DBA must be on the policy.

As you look to ensure you provide proof of insurance that is compliant with the SBA’s requirements, reach out to Brenda Jo Robyn at Competitive Edge for all of your insurance needs.
Please submit the requested documents as soon as possible to complete your file. Talk to Brenda Jo Robyn today for more information!

Property Investors: Risk Guide

in General Business Insurance, News

Let’s set the scene – you’re a property investor or landlord. One of your tenants in your residential property overflowed their bathtub, causing damage not only to their apartment but also their neighbor’s personal property. Or, perhaps your tenant creates smoke damage as a result of a carpet installation gone wrong. As a property investor, the first question that likely pops into your mind is: Am I responsible for paying for this? Is my tenant? As a property investor, owner, or landlord, what should you know to mitigate risk? Luckily, we’ve created this guide to help.

Why You Should Negotiate Coverage as a Property Investor

Why should you ask tenants to name you as an additional insured? Well, considering the headache scenarios listed above, it becomes clear as to why you, as a property investor, might want to negotiate coverage with your tenants.

When a property investor, owner, or landlord allows a tenant to use their property, there is always the risk of receiving blame if an injury or damage occurs. Another hypothetical: Let’s say you’re the owner of Acme Corporation (hi, Looney Tunes!). In one of your stores, a customer slips on a loose piece of tile and tries to sue Acme Corporation, stating that as a result of your failure to maintain the premise, you’re liable for their injury.

You, however, know that these claims are not uncommon and have prepared accordingly by including an additional insured provision in your tenant’s lease. This additional provision requires your tenants to list you, Acme Corporation, as an additional insured.

Because plaintiffs assume landlords, property owners, and investors have “thick wallets,” they are often targets for such lawsuits. As a result, these individuals need to take extra care to protect themselves.

Tenant’s Legal Liability Coverage

The tenant’s legal liability (TLL) coverage can cover losses and damages. According to Insuranceopedia, tenants’ legal liability coverage is “insurance for loss or damage of a property resulting from an action of a person renting space at that property.” Tenant’s legal liability coverage, when purchased by a tenant, covers “the cost of the loss or damage caused by the tenant.” An A-rated commercial insurance carrier is typically who underwrites this type of coverage.

Why Invest in Tenant Legal Liability?

The Horton Group describes TLL as “a win-win for the owner and tenant.” But why? Tenant Legal Liability “is one policy [with] virtually no paperwork that can adequately protect all your properties in a state – inexpensively.”

Working as a master commercial insurance policy under the property owner, investor, or landlord’s name, “tenants are [also] named as additional insureds thus providing coverage for both parties.”

The icing on the cake? Tenant legal liability coverage is easy to administer, typically costing just a small monthly fee between $8 to $12 for tenants.

What Doesn’t TLL Cover?

First, it’s important to note that a tenant’s legal liability coverage is different from coverage that insures a tenant’s personal possessions, also called tenant’s content insurance content policy or renters’ insurance.

In many cases, when it comes to TLL coverage, the coverage only extends to fire, smoke, or leakage damage. Coverage, however, can be obtained on all risks but only through the use of a deductible. Tenants can obtain additional coverage to protect themselves against bodily injuries that might occur on your premises.

So, what does tenant’s legal liability coverage fail to cover? TLL does not cover damage that results from wrongful acts, intentional damage, or claims for a tenant’s personal possessions. These damages, however, could potentially be covered on a Commercial Property Insurance policy.

It’s Time to Best Mitigate Your Risk

There are a variety of different scenarios in which enforcing tenant’s legal liability coverage might prove beneficial. Whether your property is commercial or residential, vacant or filled, industrial, multifamily, and so on, mitigating risk as a property owner is of the utmost importance. And as the adage goes, better safe than sorry.

At Competitive Edge, we take time where others may gloss over details. We make sure to learn about your business as a whole because articulating who you are, as more than a series of profit and loss statements, allows carriers to confidently cover you and your business. Connect with us today to see how we can help you.

Cyber Liability Coverage for the New Era of Ransomware

in Cyber Insurance, General Business Insurance, News

With cybercrimes on the rise, it’s time to look not only at your practices but also your cyber liability coverage.

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