Starting a Small Business: What Kind of Insurance Do I Need?

As a small business owner myself, there are hundreds of things on your “to do” list to get your business off the ground and running smoothly.  One of those things should be to have the right business insurance in place to handle losses that could potentially put you out of business.  Having proper coverage limits for general liability and business personal property is always important.  Here are a few other important coverages to consider:

1.  Professional Liability – Does your business/profession put you at risk for claims by your clients from your alleged faulty advice or defective product/services?  Professional liability is otherwise known as errors & omissions (E&O).  This coverage may also provide the cost of defending you in court and cover damages awarded in a civil lawsuit. 

2.  General Liability – What if you cause an accident during the operation of your business and cause property damage and/or bodily injuries to others?  General liability coverage provides coverage for damages and injuries to others as a result of your negligent acts. 

3.  Cyber Liability – This is a relatively new coverage offered by many insurers.  This covers a business’ liability for data breach from hackers where customer data has been compromised or other similar cyber threats.  This type of coverage can help businesses minimize the impact to their reputation by providing breach notification and credit monitoring services to customers.  It may also provide the cost to defend you in court if you are sued under the allegation of data breach. 

These three coverages are important; however, there are multiple other coverages offered by insurers that may be beneficial to your small business.  Sit down with an insurance professional that you trust and have a discussion to tailor coverage that is specific to your small business. 

If you have questions regarding business insurance, please stop by my offices in McKinney, Texas or give me a call at (972) 727-9111.

Stan Polk, CPCU - Agency Owner

6951 Virginia Parkway, Suite 316

McKinney, TX 75071

Have some tips or comments to share on Business Insurance? Share your thoughts in the comment section below. Or share your insight by following us on Facebook or Twitter!

I am a Farmers® agent but my posts are my own and are not statements by or on behalf of Farmers.

 

Why Are My Auto Insurance Rates Going Up And How Do I Lower Them?

Auto insurance rates for drivers in Texas and across the nation are increasing.  Consumers want to know why this is the case and how they can maintain or reduce their rates.  This is particularly the case for auto insurance in McKinney, Texas and the surrounding Dallas-Fort Worth metroplex.  The following are a few FAQs you should know about auto insurance rates:

1. Why do auto insurance rates increase?  Auto insurance rates can increase due to an increase in the cost of auto claims paid by insurers.  These increased costs can be attributed to more auto accidents, increased parts and labor costs and increased costs of auto injury settlements. 
2. I haven’t had any tickets or accidents – why are my auto rates increasing?  When you insure your auto with an insurance company, you are pooling your risk along with all other people insured with that same company.  If the losses for the whole group are increasing, that could cause your rates to increase as well. 
3. How can I lower my auto insurance rates?  You should check with your insurer to determine if you have all of the discounts applied to your policy that you are qualified to receive.  Discounts vary by insurer, but generally, you may receive discounts for insuring multiple autos and combining multiple policies (e.g. auto/home/life) with one company.  Also, you may be eligible for discounts based on your occupation or college degrees that you have.  Insurers also may give discounts based on how you choose to pay your premium, such as paying in full or setting up your premium on automatic monthly drafts.   

If you have additional questions regarding your auto insurance, please stop by my offices in McKinney, TX or give me a call at (972) 727-9111.

Stan Polk, CPCU - Agency Owner

6951 Virginia Parkway, Suite 316

McKinney, TX 75071

I am a Farmers® agent but my posts are my own and are not statements by or on behalf of Farmers.

What Is Personal Umbrella Insurance and Do I Need It?

“Personal Umbrella Insurance” is a policy that provides an additional layer of liability coverage over and above your underlying home and auto liability coverage limits.  Personal Umbrella coverage can protect your assets and future income in the event of a catastrophic loss.  The following are a few FAQs you should know about Personal Umbrella coverage:

1.    What is Personal Umbrella Insurance?  Personal Umbrella is a coverage that provides an additional layer of liability coverage (typically starting at $1 million in coverage limits) for claims that exceed your underlying home and auto liability insurance limits.

2.    Why should I consider Personal Umbrella coverage?  I recommend considering adding a Personal Umbrella policy when you have unique exposures (e.g. owning a swimming pool) and/or when you have assets and future income to protect from tort claims, lawsuits and/or judgments.   

3.    When might a Personal Umbrella policy offer coverage?   If you are sued or have a third-party claim against you and your home or auto liability limits are exhausted, a Personal Umbrella can cover you up to its coverage limits. 

4.    What are the requirements for purchasing a Personal Umbrella?  Typically, most insurers require that your underlying home and auto liability insurance limits be a minimum of $300,000 to $500,000 before you can qualify for a $1,000,000 umbrella policy limit.    

5.    Will a Personal Umbrella policy cover liability exposures other than home and auto?  Yes.  Generally, a Personal Umbrella policy will coverage exposures from your use of boats, motorcycles or recreational vehicles as long as those exposures have underlying liability coverage and those policies are listed on the Personal Umbrella.      

If you have additional questions regarding Personal Umbrella Insurance, please stop by my offices in McKinney, Texas or give me a call at (972) 727-9111.

Stan Polk, CPCU – Agency Owner

6951 Virginia Parkway, Suite 316

McKinney, Texas 75071

Have some tips or comments to share on Personal Umbrella Insurance? Share your thoughts in the comment section below. Or share your insight by following us on Facebook or Twitter!

I am a Farmers® agent but my posts are my own and are not statements by or on behalf of Farmers.

“Life Insurance” is a subject that many people tend not to want to discuss.  The loss of a loved one and the ensuing transition for the remaining family members is a difficult process.  Having adequate Life Insurance coverage in place can help ease the financial burden of making this life stage transition easier.  Clients often don’t know where to start when considering how much coverage they need for their family.  The following acronym lists some areas you should consider when evaluating how much Life Insurance coverage your family needs:

L. I. F. E.

1.      Loans – How much debt do you currently have?  How much of that debt would you want fully paid and not left for your family to manage?  This category typically comprises of mortgages, credit card debt and other types of revolving credit accounts. 

2.      Income – How many years of your current income would you like for your family to have in the event of your untimely passing?  Life Insurance can provide a solution for replacing future income for your family.   

3.      Final Expenses – The average funeral costs approximately $10,000.  This cost can be more or less expensive depending upon the services you choose and your geographical location.     

4.      Education – If you have children that plan to go to college, future education expenses can be a consideration in evaluating how much coverage you need.  Do you plan to send your children to public or private universities?  There are many resources you can utilize to research and estimate the cost for attending college.  One resource for college planning is www.collegeboard.org.  

If you have additional questions regarding how to evaluate how much coverage your family needs, please stop by my offices in McKinney, Texas or give me a call at (972) 727-9111.

Stan Polk, CPCU – Agency Owner

6951 Virginia Parkway, Suite 316

McKinney, Texas 75071

Have some tips or comments to share on choosing the right amount of Life Insurance coverage for your family? Share your thoughts in the comment section below. Or share your insight by following us on Facebook or Twitter!

I am a Farmers® agent but my posts are my own and are not statements by or on behalf of Farmers.

What Should I Do At The Scene Of An Auto Accident?

Clients often ask me what they should do if they have an auto accident.  There are various things to consider when you are at the scene.  The following are a few FAQs you should know to be prepared at the scene of an auto accident:

1.  What is the first thing I should do after an accident?  The first thing you should do is to assess if anyone is injured, render aid and call 911 for medical assistance, if necessary.

2.   Should I call the police to report the accident?  You should always call the police to report the accident.  The police will make the determination if they will send an officer to take a report or not.  You should report it even if the other person(s) objects to calling the police. 

3.  What information should I get from the other person(s) involved in the accident?  You should collect the other person’s driver’s license, insurance card, and phone numbers.  The best way to collect this information is to take a photo of the documents with your smart phone.  You should also collect the vehicle information – year, make, model, color and license plate number. 

4.  What should I do if I’m not at fault in the accident?  If you believe you are not at fault in the accident, you should report the loss to the other person’s insurance carrier (you should have the information if you were able to obtain the other person’s insurance card).   You should also report the loss to your insurance carrier, so that your carrier can conduct a timely investigation on your behalf.   

If you have additional questions regarding auto accidents and how it affects your auto insurance premium, please stop by my offices in McKinney, Texas or give me a call at (972) 727-9111.

Stan Polk, CPCU – Agency Owner

6951 Virginia Parkway, Suite 316

McKinney, Texas 75071

Have some tips or comments to share on what to do after an auto accident? Share your thoughts in the comment section below. Or share your insight by following us on Facebook or Twitter!

I am a Farmers® agent but my posts are my own and are not statements by or on behalf of Farmers.

3 Ways You can Prepare for Unexpected Storms

Dogs may be able to predict summer storms, but will they plan for it? That’s where humans come in.

 

Severe thunderstorms often occur in the spring and summer, and since pets can’t read calendars, it’s up to you to prepare. The National Severe Storms Laboratory warns that rainfall from thunderstorms can start flash floods, which cause more deaths annually than lightning, tornadoes, or hurricanes combined. How can you insure yourself from potential danger? It’s easier than you think.

 

One of the most basic precautionary steps you can take for the inevitable summer storm is to keep candles around the house. This isn’t your mom talking. It’s common sense. Candles, flashlights, and spare batteries all become as invaluable to a person in a blackout as quarters to a laundry-depraved college student. Keep them together so you won’t wander blindly in search of a flashlight when all you have are batteries.

 

Speaking of electronics, how useful is a weather radio during severe storms? As long as it carries the Public Alert logo, it will broadcast one of 7 VHF frequencies brought to you by the National Weather Radio (NWR): 162.400; 162.425; 162.450; 262.457; 162.500; 162.525; 162.550. Each frequency notifies listeners of impending storms. Better write those down, because you won’t be able to Google anything in a blackout.

 

Lastly, animals can’t be forgotten in a storm. My dog knows when it’s storm season, the anti-anxiety vest is coming out. A vest for pets isn’t a fashion tip as much as it’s a tool to keep dogs calm. Some dogs act like babies during thundershowers or hailstorms, so why not treat them like one? An anti-anxiety vest gently applies constant pressure to a pet, like a parent swaddling a baby.  One may look silly, but a vest saves your furniture from destruction and your wallet from weeks of obedience school.

 

Planning ahead is the best way to insure yourself, your home, and your family (pets included!) from storm season. Have some tips to help us weather the storm? Share your thoughts in the comment section below. Or share your insight by following us on Facebook or Twitter!

I am a Farmers® agent but my posts are my own and are not statements by or on behalf of Farmers.

What is Full Coverage Auto Insurance and Do I Need It?

“Full Coverage Auto Insurance” is a term people often state they want when discussing their auto coverage.  Full coverage is a misnomer when it comes to auto insurance, because the auto policy is not design to cover all risks that an auto owner may experience.  The following are a few FAQs you should know about your auto insurance coverage:

1.      What does full coverage in auto insurance actually mean?  Full coverage auto insurance generally means that the policy covers Bodily Injury and Property Damage (aka, Liability) and Physical Damage (aka, Comprehensive and Collision).  All other coverage options on the auto policy are optional.

2.      When do I need to have full coverage?  Full coverage is required by most banks when there is a lien on the vehicle (e.g. the car is financed).  Also, Liability coverage is mandatory in most states, so that coverage is required. 

3.      Is rental car coverage and roadside assistance included on all auto policies?  No.  Rental car coverage and roadside assistance are optional coverages. 

4.      When should I drop physical damage coverage from my policy?  I counsel clients to consider dropping physical damage from their auto policy when their vehicles approach 12-15 years of age.  Most likely, the vehicle won’t have a lien on it at that age.  Also, the market value of the vehicle may not be enough to justify the cost of the coverage. 

5.      Is Uninsured/Underinsured Motoristcoverage good to have on my policy?  The Insurance Information Institute completed a study in 2012 that estimates 12.6% of drivers in the United States are uninsured.  I counsel my clients to consider this coverage because it addresses the risk of being injured by an uninsured driver. 

  

If you have additional questions regarding your coverage choices and how it affects your auto insurance premium, please stop by my offices in McKinney, Texas or give me a call at (972) 727-9111.

Stan Polk, CPCU – Agency Owner

6951 Virginia Parkway, Suite 316

McKinney, Texas 75071