What Is the Difference Between Home Insurance and Business Insurance?

 

 

 

 

More than 15 million businesses in the United States operate out of homes, according to the U.S. Small Business Administration. Given that there are an estimated 31 million small businesses in the country, this means that close to half of small businesses currently operate out of residential properties.

Certainly, the COVID-19 pandemic has had a big impact on how we work and conduct business. This raises an interesting question: does a home-based business need business insurance?

In this blog post, we will answer that question and take a look at both home insurance and business insurance. Let's get started.

What Is Home Insurance?

Homeowners insurance is a form of property insurance. It covers damages and losses to an individual's property, along with assets and furnishings. In addition, it also provides liability coverage against accidents that occur within the home or on the property.

Generally, homeowners insurance covers both exterior and interior damage, damage or loss of personal assets, and injuries that arise while on the property. A homeowners insurance policy has a liability limit. This determines the amount of coverage in the event of an incident.

What Is Business Insurance?

Business insurance refers to coverage intended for businesses rather than individuals. It refers to a class of insurance coverage intended for purchase by businesses seeking to cover potential damage to their property, as well as contract disputes, lawsuits, and other incidents.

There are many different types of insurance for businesses. These include professional liability insurance, property insurance, home-based business insurance, product liability insurance, business interruption insurance, and vehicle insurance.

Business Insurance for a Home-Based Business

Homeowner's policies do not cover home-based businesses in the way that commercial property insurance covers businesses. It is best to get business insurance if your business operates from a residential property. The most suitable coverage for you will depend on your specific situation.

Generally, homeowners insurance does not cover the risks you may face if:

• You maintain inventory in your home
• You have employees
• Customers and clients come to your home
• Sensitive data is stored on your home devices

It may be possible that your home-based business is under-insured. We recommend that you speak to an insurance expert, such as Tom Needham Insurance Agency. That way, you can understand how to become fully covered.

When it comes to insuring a home-based business, there are many different options. These include a homeowners policy enforcement, an in-home business policy, or a business owners policy (BOP).

Get the Home-Based Business Insurance You Need

The bottom line is that if your run a home-based business, it may be uninsured. Rather than taking a risk with your business, we recommend that you find the right type of home-based business insurance.

If you would like to learn more about home insurance, business insurance, and home-based business insurance, don't hesitate to contact the experts at Tom Needham Insurance Agency. Click here to contact us.

Motorcycle Insurance: 6 Ways to Save

 

Motorcycle riders are a breed apart from your typical car drivers, glad to feel the wind in their face and undeterred by the warnings from mom about the dangers you'll find lurking around every corner.  Sure, bike riding can be risky and a serious accident on two wheels can be much more devastating than when driving on four, surrounded by a steel cage with safety add-ons like airbags.  But for careful riders with proper safety gear, a registered motorcycle safety course under their belts and a healthy respect for the risks of the road, motorcycling can be a great way to go.

Ensuring You've Got Proper Insurance

One critical piece of your motorcycling protection is having the proper motorcycle insurance in place.  In North Carolina, every vehicle being driven on public roads is required to have at least a minimum amount of basic liability insurance in case you're the cause of an accident that injures or kills another person or causes damage to someone else's property.

While it won't save you money on the cost of your insurance, carrying more than the required minimum amount of liability coverage could save you a huge amount of money in the event that you're found responsible for causing an accident where someone dies or is seriously injured and you become the defendant  in a liability suit.  Judgements in these types of suits can run into the thousands, hundreds of thousands or even millions of dollars.  Your best protection is to carry five or ten times the required amount of bodily injury liability insurance.  You may also want to consider an umbrella policy for the best all-around liability protection.

Here are six ways to save on your motorcycle insurance:

1. Always shop around and get quotes from several insurers.  It doesn't make sense to pay higher rates charged by one company when another insurer provides the same service at a lower price.  
2. Older, smaller, slower bikes will have lower insurance costs.  Choose your bike wisely.
3. If you only ride occasionally, ask for an infrequent rider discount.  While you're at it, find out about every discount offered.  There may be several.
4. If your bike isn't worth too much, dropping your comprehensive and collision coverage will save bucks.  If your bike has a lienholder, however, this won't be possible.
5. Raise your deductible.
6. Keep your bike secure with chains, locks and/or alarms.  Keep it garaged when not being used.

11 Golf Cart Safety Tips

 

Whether you're using a golf cart out on the links or for driving up and down the streets of your community, there are some tips we'd like to share to help you travel safely as you go.  For many, nothing beats the relaxation provided by a nice, sunny day out on the golf course, but nothing can ruin that good time quite as much as a golf cart accident.

Golf cart accidents can cause anything from minor injuries and/or damage to catastrophic injuries and even death.  According to the Consumer Products Safety Commission (CPSC), there are approximately 15,000 golf cart related injuries annually that are serious enough to warrant a visit to the emergency room.  While some of these accidents are a result of poor manufacturing design, most can be attributed to negligence on the part of those involved.  These are preventable accidents that may have been avoided by knowing and following these tips.

Golf Cart Safety Tips

1. Learn how to safely operate your golf cart by reading the owner's manual, if available, and follow all safety guidelines.
2. Make sure the tires on the cart are inflated to the recommended tire pressure.
3. Golf carts are lightweight and top-heavy, making them fairly easy to flip over if not driven properly.  Avoid sudden or sharp turns and keep your speed within reason.  The number one cause of golf cart injuries is passengers jumping or falling off the cart.
4. Don't overcrowd your golf cart with passengers.  Everyone riding on your cart should have their own seat.  Don't allow anyone to hang out the side or back of the cart.  Overcrowding makes it easier for passengers to fall off and puts additional strain on the golf cart, making it more difficult to handle safely.  
5. Just like with a roller-coaster, keep all body parts inside the golf cart.
6. Just as with any vehicle, don't drink and drive or consume intoxicating substances before or while driving.
7. Avoid distractions when driving a golf cart (or any vehicle).  This particularly pertains to cell phone use, which the CPSC lists as the number one cause of distracted driving.
8. Use seatbelts in your golf cart.  While most golf carts don't come equipped with seatbelts, retrofitting them into your cart is fairly easy and well worth the modest cost when considering the added safety you'll enjoy.
9. Avoid bad weather when possible.
10. Perform regular maintenance.
11. Have fun but stay safe!

Is Motorcycle Insurance Required?

 

North Carolina state law requires that all motor vehicles operated on public roads within the state be covered by at least a minimum amount of liability insurance.  This includes motorcycles and motor scooters.  While there are a variety of other insurance coverages available to motorcycle owners, only liability coverage is made mandatory by state law. 

Liability insurance is what helps protect you from financial losses if you are found legally responsible for causing losses to others while operating your motorcycle.  These losses can be in the form of physical injuries, death or property damage/destruction.  The state has set minimum requirements for the amount of mandatory liability coverage which are as follows:

1. Bodily injury coverage - $30K per person per accident and $60K for all persons per accident
2. Property damage coverage - $25K per accident

How Much Do You Need?

While these above outlined dollar figures are the minimum amounts of coverage required, you may elect to have higher limits on your policy.  This makes sense, since an accident for which you are held liable can amount to many times these minimums.

Motorcycle liability insurance helps pay for third-party injury expenses including medical costs, lost wages, funeral costs (in the event of a death) and even long-term disability costs.  It also pays for property damage, including damage other vehicles suffer.  It may also pay toward the costs of defending you in court if you're subject to a liability suit.

With liability coverage only paying up to policy limits, it's obvious that any accident you cause could end up costing you many, many times your policy limit if you're only carrying the minimum liability amounts.  Experts recommend you buy five to ten times the required amounts, depending on how much in assets you need to protect.  You might also consider adding an umbrella policy to your coverage.  These policies typically have limits starting at one million dollars.

Additional, Optional Motorcycle Coverage

Although not required by law, there are a number of other types of motorcycle insurance coverage that are highly recommended for anyone riding on two wheels.  Statistics tell us that the majority of motorcycle insurance claims are for single vehicle accidents where liability coverage doesn't come into play.  Cyclists should consider the following:

• Collision coverage
• Non-collision (or comprehensive) coverage
• Uninsured/underinsured motorist coverage
• Medical payments coverage

Some insurers will offer lower premiums for lay-up insurance when your bike is stored away for the winter.

How To Choose an Insurance Company

 

Buying insurance can be a potentially overwhelming experience due to the vast number of confusing definitions, conditions, exclusions and coverages involved.  On top of this, you want to choose an insurance company that's well-regarded in the industry, financially strong, with a good claims history and top reviews from clients with whom they've done business.  Here's a breakdown of several factors to consider when you're trying to choose an insurance company:

• Understand the difference between an independent insurance agent or broker and an insurance company agent.  An independent agent likely has access to policies from numerous different insurance providers.  While an insurance company agent can only write policies from his or her own company, the independent agent can write whatever policy is best suited to your particular insurance needs.  To make matters even simpler, an independent will do the research and legwork to find the best choices and then provide you with multiple options to consider.
• When considering a particular insurer, research their history and look into their reputation.  How long have they been in business?  What products do they offer and in what states are they sold?  What can be said about their company leadership and community involvement?  What are their professed vision and values?
• Assess the financial strength of a company you're considering and don't accept any insurance offer from a firm with less than an "A" (excellent) rating.  A.M. Best is the #1 independent insurance company rating-company in the U.S., but you can find several others here.
• Choose an insurance company that sells the type of insurance coverage you need.  Many companies give discounts for customers who carry multiple policies (e.g., homeowners, life, vehicle) with them, so check into this.  Check for all other discounts.
• While price is an important consideration for most people when they choose an insurance company, it shouldn't be the only consideration.  A lower price may mean a lower level of coverage, so always compare apples to apples.  Keep in mind the old axiom that you get what you pay for.  There may be a number of reasons for the price differences between different companies.  One may be because the lower priced is new to the market, which may mean it's lacking in experience.

Get with a trusted broker and explore the companies and coverages available.  Seek professional guidance and utilize their ability to uncover the best protection at the fairest price available.

What Can You Do to Reduce Homeowners Insurance Costs?

 

Saving money on expenses has universal appeal, especially when you can save on something you're required to purchase.  Statistics show that approximately 95% of all homeowners in North Carolina maintain homeowners insurance coverage, so ways to reduce homeowners insurance costs should be widely welcomed.  We'll present you with a comprehensive list of tips for reducing your home insurance costs starting today.  Choose your Greensboro homeowners insurance policy with the goal of getting the best for the least.  Try these tips:

Seven Ways to Save on Your Greensboro Homeowners Insurance Coverage

1.  Most experts agree that the first and most important tip for saving on any insurance policy is to shop around.  It's recommended that you obtain no less than three quotes from companies rated highly for service and financial stability.  Consult A. M. Best and/or Standard & Poor's for this information.  Consider using an insurance broker who has access and insight into multiple providers.  Price is important but other factors such as service and stability should also figure in.  Shop around when buying a new Greensboro homeowners insurance policy or when renewing your existing coverage. 

2.  An immediate reduction in your homeowners insurance rate can be obtained by simply raising your deductible amount.  Insurance companies typically recommend a deductible of $500, which is the amount you're required to pay our of pocket when you make a valid claim.  Higher deductibles mean lower premiums and raising your deductible from $500 to $1000 could save you as much as 20% on your policy cost, depending on your insurer.

3.  When deciding how much home insurance to buy, don't include the value of the land your house sits on.  Land isn't subject to the same perils as your home and other structures on your property.  Also, calculate how much coverage you need by the cost it would take to rebuild your home rather than its current market value.

4.  Bundling a variety of policies such as homeowners, auto and umbrella all with one insurer can save you as much as 15% on these policies.

5.  Improving your home's security with smoke detectors, burglar alarms and deadbolt locks can save you 5% or more on your home policy.

6.  Most insurers offer a variety of discounts for which you may qualify.  Often, however, you won't know about these unless you ask.

7.  Review policy limits for your personal property coverage to make sure you're not paying for coverage you don't need.

 

 

7 Lesser-Known Auto Insurance Discounts

Discovering ways to lower your auto insurance premium rates can be easy by simply asking your agent to explain what discounts are available. The important thing to realize, however, is that, in most cases, you must ask in order to learn about the discounts for which you qualify. Available discounts, although they may differ from one insurer to another, can actually save you hundreds per year. Each time you take out a new auto insurance policy or renew existing coverage, you should ask again about discounts. Here are some of the lesser-known discounts to consider.

1. Bundling – Bundling discounts are offered by many auto insurers because it increases their business as well as providing you with a discount. If you have multiple autos, a motorcycle or boat, or even homeowner's insurance, covering all these with the same insurer can bring you significant discounts.
2. Telematics – some insurers, including Progressive, can install a tracking device in your vehicle that sends information back to the company letting them know your driving habits. They can learn how you drive, when you drive, how many miles you travel daily, how often you slam on your brakes, etc. They can get an accurate profile on your level of risk as a driver. Lower risk can produce lower premium rates.
3. Driving Safely – even without telematics, your insurer can tell how safely you drive by checking your driving record for accidents, moving violations, and claims activity.
4. Safety devices – while airbags and anti-lock brakes may not earn discounts with most insurers any longer, devices such as blind-spot detectors or rear-view cameras often will. Anti-theft devices, such as ignition cut-off switches, Lojack and car alarms may also give you a premium discount.
5. Prepaying – paying your entire annual insurance premium upfront or switching to paperless, online billing will often give you a discount.
6. Group membership – belonging to certain groups, such as AAA or AARP, can bring you a group discount from some insurers. You may also be eligible for having a certain profession, being in the military, or as a member of a certain labor union. Only one way to find out, though – ask!
7. Student – students maintaining a certain GPA may earn a student's discount. College students on their parents' policy and going to school 100+ miles from home and without a car may provide a discount for their parents' coverage.