Business Insurance | Austin | Texas | MrBusinessInsurance.com Blog - Business Insurance Austin Texas | MrBusinessInsurance.com

Why Do Underwriters Ask So Many Questions?

8/30/2017

Let's face it, insurance agents can ask a lot of questions. Sometimes, it may seem like too many. I can assure you, these questions are extremely important, and in most cases, are being asked by an underwriter from one of the insurance companies. Independent insurance agents, like us, represent many insurance companies when dealing with Business Insurance, which means we will probably be asking more questions than if you were to call a captive agent or an insurance company directly.

I know a lot of business owners tell me, "why do they ask so many questions?....I've never had a claim". Think about it this way, as a business owner, if you were going to put a $1,000,000 on the line for another company, what kind of questions would you ask? Now, I know the insurance company isn't giving you a loan, but they are determining whether or not they want to cover your business and defend your business in court should it come down to that.

In addition, these questions can help determine coverage that is needed for your business. In some cases, businesses are getting a certain type of Business Insurance because it is required. This is fine, but sometimes, what is required isn't necessarily what is needed. It's important to understand why you are getting insurance.

Some of the questions might seem redundant and might not seem relevant to your business, but if you are getting Business Insurance and the agent isn't asking questions, I would be concerned. If I can help with any Business Insurance needs, please let me know.

Business Insurance for Startups

6/21/2017

Business Insurance Startup- picture

Business Insurance is probably the last thing you're thinking about when it comes to your startup, but it's something you should consider. Here are a just a few reasons why:

It can protect your property
It can protect your business from potential lawsuits
It can protect your employees
Your Landlord might require it
You might have to have it for contracts
It can save your business in the event of a loss (Business Income Coverage)

Being a startup, money might be scarce, but Business Insurance is something that can save your business. Give us a call to see what coverages are available for your business. We would love to hear about your startup.

Fun Ways to Celebrate Memorial Day!

5/25/2017

Local Memorial Day activities- Austin, Texas

I figured it's probably time to take a break from Business Insurance this month to write about things to do this weekend in Austin. Memorial Day is going to be here before you know it, which is why there is no better time to start looking for fun, family friendly activities in the local community. Make sure to check out these exciting things to do that people of all ages can enjoy together!

Barton Springs Pool is a famous landmark in the Austin area and possibly the most popular swimming hole in the state. The pool was formed when Barton Creek was dammed, giving it a natural gravel and rock bottom. There are stairs and ladders for easy entry, and diving boards at the edge of the deep areas. Go swim some laps for a workout or bring the family. Either way, Check it.

Go for a bike ride, run or walk on the trail at Lady Bird Lake. If you're feeling adventurous, rent a stand up paddle board and do some paddling on the lake. Not big on the stand up thing, try a Kayak!

Take a walk through the Austin Governor’s Mansion to learn more about the history of the state. The Lyndon Johnson Presidential Library and Museum is full of exciting historical artifacts, as well as the Wildflower Center that is helping to preserve the native plants of North America.

Lastly, you need to eat, right? Why not check out some BBQ spots. Our favorite is La Barbeque.

As you are enjoying the holiday weekend, it is important to make sure that you know how to stay safe. Never drink and drive, and always pay attention on the road. Many people are out enjoying the unofficial start of summer, so remember to be patient on the roads to avoid any accidents.

All of us at Strive Insurance Group, Inc in Austin, Texas and Richardson, Texas would like to thank all the service men and women for their dedication to the country this Memorial Day!

Jason Matison
Insurance Agent
Austin, Texas

Why is General Liability Insurance so Expensive?

3/21/2017

General Liability Insurance Question

Every once in a while I get this question from business owners. It's a good question, so I think it deserves a good answer. Let’s review an insurance scenario to put things into perspective.

Your business is a startup and you are looking for insurance quotes or maybe you have been in business for several years, but just felt like you didn't really need business insurance. Or someone is requiring you to have General Liability Insurance. Bottom line, you need insurance.

Let’s assume you are some type of manufacturer. Even if you are not technically "manufacturing" the product, but you are putting your label/brand on the product, in the eyes of an insurance company, this makes you a manufacturer. You could also be a distributor of a foreign product. If someone is injured by your product or service, who is going to be held liable? Most likely, your business, so the insurance company is going to class you the same as a manufacturer. The reason for this is they may have to respond to a product liability claim. Let’s say you don't have liability insurance. How much is it going to cost you to get a lawyer to come to your defense? Court costs? Opportunity costs (taking time off from work)? Even if you have some kind of product liability waiver, your lawyer still has to defend that waiver in court. It could be costly and time consuming. What if the court rules in favor of the plaintiff and is awarded a settlement? I think it's safe to say the costs are going to add up fast if you don't have insurance.

After considering the above, what is your annual General Liability Insurance premium? What is the coverage amount?

Perhaps you don't think there's that much risk in your product and don't think you'll ever be sued. Please consider we live in a very litigious society now. A fast food restaurant has been sued for serving hot coffee too hot not once, but twice. Also consider many years ago businesses did not get sued unless there was a loss. Now businesses are sued regardless of fault.

As a business owner, you definitely have to look at your costs, but you also have to look at protecting your business.

Strive Insurance Group represents many "A Rated" insurance carriers and is ready to help you get the protection you need. If you have questions about your business insurance policy or need a General Liability Insurance quote, please let us know.

Jason Matison
Insurance Agent
Austin, Texas

General Liability Aggregate Limit and Each Occurrence Explained

2/21/2017

General Liability Insurance Each Occurrence

Example: General Liability $1M Each Occurrence/ $2M Aggregate

General Liability Insurance can be confusing, especially if you're not sure the meaning of the limits, General Aggregate and Each Occurrence (Per Occurrence). Here's the difference and how it impacts your Business Insurance.

So here's the deal, Each Occurrence is the maximum the insurance company will payout per claim. Using the numbers in this example, if you have a General Liability claim that's $1,500,000, you are going to have to come up with the $500,000 since Each Occurrence is $1,000,000. Some companies see the $2,000,000 amount and they assume the $2,000,000 will cover everything. This can be confusing if you're not familiar with these numbers. Where does the $2,000,000 come into play then? Well, that is the aggregate amount. Meaning, the total amount the insurance company will payout for multiple claims during the policy term.

If you have questions about General Liability Insurance limits, Umbrella Insurance or any other Business Insurance needs, please feel free to contact me.

Jason Matison
jason@striveinsurance.com

Is My Drone Covered? | Business Insurance

1/31/2017

Lets face it, Drones are cool. Whether it's for personal use or business, aerial photography really catches everyone's attention these days. I personally think it will become more and more popular. That being said, it's important to understand the perils that come with it.

In recent years, the NTSB ruled, under Herta v. Pirker, that Unmanned Aerial Systems (UAS) are “Aircraft” and subject to FAA authority and regulation. Almost all Business Insurance and Homeowner policies exclude aviation and aircraft exposures from coverage provided under the policy, so before assuming that your policy will cover you, or your business, it's extremely important to contact your insurance agent or read your policy.

Drone Insurance is available. If you need help getting a quote for it, or other business insurance, please feel free to contract me.

What is a Builders Risk Policy?

11/18/2016

Builders Risk Insurance Austin- picture of property

With all the properties being built, renovated, bought, and sold in Austin, TX right now there’s definitely a need for Business Insurance. As we all know, when it comes to insurance, there are many different kinds of policies. A lot of investors are buying commercial or residential property and needing insurance while they are remodeling, restructuring or renovating. This is where a Builders Risk Insurance Policy comes into play. A Builders Risk Policy can be written on a three month, six month or annual policy depending on the insurance company. So why do you need a Builders Risk policy? Here are two main reasons.

Most insurance companies will not write a building or home that is under construction. In fact, most have an underwriting question that specifically asks, is or will the property be under construction. If yes, it might be an ineligible risk.

Vacant property. Insurance companies do not like vacant properties due to the theft and vandalism exposure. If the property is going to be vacant for an extended period of time, the insurance company might not write it.

If you have a property described above, it's extremely important you contact your insurance agent to see if they will write it. If they won't write it, you will need to get a Builders Risk policy. Here's some information that will be helpful for you when choosing a Builders Risk Insurance Policy:

Verify the property coverage amount before construction and after construction. Is it Replacements Cost or Actual Cash Value?
Theft coverage
Property in transit
Property at a temporary storage

How much does a Builders Risk Insurance Policy cost? Obviously costs vary by the size of the property. I have heard a good rule of thumb is 1-3% of the construction budget should be allocated towards the policy.

Most Builders Risk companies will need to know contractor information and experience, so make sure you choose an experienced builder for your project. If you have any questions about a Builders Risk Insurance policy or another Business Insurance policy, please feel free to contact me. It's an exciting time in Austin, Texas seeing all the growth and cool companies sprout up. I would be happy to meet with you and learn more about your business to see if I can help with your insurance.

Jason Matison
Insurance Agent
Austin, Texas

Contractor Insurance: Do You Subcontract Work?

10/13/2016

general contractor insurance

Things seem to really be booming here in Austin, Texas these days. Lots of growth, which is a good thing, right?!? But with this growth comes more work for contractors. I get a lot of calls from contractors and general contractors needing insurance for various projects. In most cases, they have insurance requirements they are trying to fulfill, so they call me for an insurance quote. When it comes to Business Insurance, insurance companies want to know about work that is subcontracted out. Primarily, what type of work is subcontracted, the percentage of work/sales that's subcontracted and if the companies subcontracted out carry insurance limits greater to or equal to yours.

Sometimes business owners want to know why the insurance company needs all this information. The bottom line, the insurance company is insuring your business. The policy is not going to be in the subcontractor's name, so understanding the entire scope of business and what is subcontracted is very important to underwriting. At the end of the day, if your business is sued, it's your business insurance that's going to have to defend it. After the work's completed, the subcontractor could be long gone or out of business and you could be responsible for their work. When choosing a subcontractor, consider the following tips:

How much experience do they have?
Do they have any past or pending claims? If so, what are they doing to prevent future claims?
How long have they had insurance?
Do they carry Workers Compensation Insurance?
Do they have a safety plan in place?
Does their policy have an exclusion for completed operations?
Will they list your business as an additional insured?
Will they carry insurance greater to or equal to yours?

This is just a sample of questions to ask a subcontractor. There's many more depending on your business. If you have any questions, or need a Business Insurance quote, please feel free to contact me. I am a local agent in Austin, Texas and would be happy to sit down and meet with you.

Jason Matison
Insurance Agent
Austin, Texas

Foreign Insurance Policy for your Business

9/6/2016

Foreign Insurance Policy- Picture of Plane

Foreign Insurance Policies or International Insurance Policies for your business can be difficult to get at times. Businesses have gone global, so sometimes they need outside the box coverage. Perhaps you are doing work for a company outside the country that is requiring you to have General Liability Insurance give them a Certificate of Insurance. Not a lot of insurance companies out there will write this kind of Business Insurance. I've had some recent success with these policies, so we wanted to let everyone know in case they are looking for this type of policy. As with all insurance policies, Foreign Insurance Policies do have their exclusions, so be sure to read your policy thoroughly.

An example of a foreign insurance policy we recently wrote was for a company that had been subcontracted by a larger corporation to do work in South America. In short, the larger company did not want to send their employees on international travel so they subcontracted it to my client. They did however require the subcontracted company, our insured, to carry General Liability limits of $1,000,000 per occurrence and $2,000,000 aggregate, which is not uncommon. Sometimes they may even require more coverage.

Another coverage option when looking at International Insurance Policies or Foreign Insurance Policies is Kidnap and Ransom Insurance. Some people don't want to think about this coverage, but it's worth exploring when getting a Foreign Insurance Policy.

Believe it or not, in some cases, the application process can be quite easy for these policies. If you are currently doing work outside the country, please make sure to call your agent or insurance company to let them know. If you have any questions regarding your insurance policy, let me know. I am here to help you navigate the waters of Business Insurance in Austin, TX.

Jason Matison
Business Insurance Agent
Austin, Texas

Is Flood Covered by Insurance?

8/2/2016

Business Flood Insurance

Flood Insurance Coverage

It was almost impossible to talk about Texas weather without talking about the ongoing drought. The drought left much more than just a dry landscape, it has also led to water shortages, water restrictions, severe wildfire conditions, and a serious reduction in recreational lake activities.

Recently, the conversation has changed from the severe lack of water, to too much water. Record amounts of rain have fallen in parts of central, northern and eastern Texas. While this may only seem like good news, it can lead to devastating flooding in both rural and urban areas, damaging vehicles, business property, and infrastructures.

Flooding is one of the top causes of property damage in Texas. More than 10 percent of the state’s land area is susceptible to flooding, which makes it the number one state for total flood prone area. The predicted weather patterns combined with the terrain has resulted in central Texas being one of the most flash flood prone areas in the country.

While you may think that your home and business is protected from a flood by your existing insurance policy, you are not. While your home and business insurance policy will provide coverage for many perils, it will not provide any coverage for damage that is caused by floods. Only a specific flood insurance policy will cover damage that is caused by rising waters. It is important to keep in mind that flood insurance policies have a 30-day waiting period before your coverage will kick in, so the sooner you invest in coverage, the sooner your coverage will set in.

For all of your flood and business insurance needs, and to make sure that you are covered from any unfortunate situation, including rising flood waters, contact us today.