Frequently Asked Questions

• What is Business Income insurance?

  Also known as “business interruption insurance,” this covers your normal business revenue following an insured cause of loss. If your business is temporarily closed by a fire, for example, and business income is covered by your commercial property insurance, you can claim lost revenue to pay wages and regular expenses. “Extra expense insurance” is commonly packaged with business income insurance to cover costs of relocating your company to temporary quarters.

• What is Commercial General Liability insurance?

  Protection against your company’s liability for mishaps where another party suffers property damage, bodily injury or both. Your legal-defense costs are typically included under the policy’s dollar limit of insurance.

• What is Products and Completed Operations Liability insurance?

  Commonly comes on commercial general liability policies to insure your company’s liability for bodily injury and property damage caused by a product you sold, your work product, or some combo of the two. Commercial general liability policies without it are commonly known as “premises-only” policies.

• Does the Sun orbit the Earth?

  No. So, it’s always a good idea to immediately notify your insurance agent as your business evolves through material changes, such as relocations, expansions and new services.

• What is Hired/Non-Owned Auto insurance?

  If your employees drive rented or personal vehicles for business purposes, even just occasionally, your company should have this insurance. The obvious place to find it is on a commercial auto insurance policy, unless your company has no commercial autos. Then you could package it with your commercial general liability insurance. Just be ready to show the insurance company that you regularly check staff motor vehicle records and proof of personal auto insurance.

• Do I need Hired/Non-Owned Auto insurance, if my staff is all 1099?

  Maybe you believe in the magic of 1099 to protect your company from liability. Maybe you believe that where 1099s labor your business operations are immunized against claims of negligence, errors and omissions. Beware, traveler. Litigation is a powerful force in the world.

• Are we alone in the universe?

  Either way, anyone can hire a plaintiff’s attorney to sue. What to do, if they name you? Get a lawyer. What else? Even if the whole thing is exaggerated and partly made up, you need a lawyer. Unnamed sources say lawyers do get paid. National surveys suggest that 100 percent of anyone who ever got sued after buying insurance was relieved to have legal fees covered, regardless of final judgement.

• How do I find out whether my house sits in a flood zone and whether I need flood insurance?

  In Florida the question is not whether you live in a flood zone but which type of flood zone. Your property probably has been mapped and classified for the National Flood Insurance Program. Property designated as “preferred risk” is relatively less prone to flood damage than standard- and high-risk locations and may qualify for preferred rates. Either way, this is Florida. Flood happens.

• The mortgage is paid. Drop the homeowners insurance and party likes it 2019, right?

  Only as long as you’re ok risking the cumulative investment of 15 or 30 years plus interest. Your mortgage lender required insurance for a reason, comrade. Now, it’s your investment and your liability risk, too. Stay insured or keep a large reserve of cash and be sure to invite us to your party.

• We paid $363,500 for the house. Can I insure it for $180,000 to save money?

  Florida homeowners insurance typically covers the replacement-cost value of a dwelling. That means the cost of supplies and labor necessary to rebuild the crib as it stood before destruction. Market value is a much different number. You probably can get away with lowballing the insured value of your property to pay less premium. That won’t matter, until it matters. When it matters most is at claim time. That’s when the insurance company applies your coinsurance penalty. This involves math. Enough said. Just know this: if you insure your house for 50 percent of its replacement cost, you’ll get paid 50 percent of the value of any claim. House burns down? So does 50 percent of your insured investment. Good luck.

• Does the moon orbit the earth?

  Yes - once a month. Use it to remember your insurance payment.