Fortune Magazine Interviews Otto Larson on Bond Insurance: What It Is and Who Needs It

Partner Otto Larson

Businesses may consider bond insurance for protection, and in many cases, may be required to purchase this coverage. While surety bonds may be referred to as bond insurance, they aren’t an insurance policy in the true sense, though insurance companies often sell them.

In an interview with Fortune Magazine, Partner Otto Larson explained the industries and types of businesses that commonly need bond insurance.

“Contractors and construction companies are commonly asked to post a bond when working on medium and large sized jobs,” Otto said. “Owners and general contractors will ask for Bid and Performance Bonds to guarantee that projects are completed, and completed on time. There are many other industries that require bonds as well.”

Other professionals, such as tax preparers, house cleaners, car dealers, mortgage lenders, and others, might also need them.   

Read the full story here.

How Much Does Insurance Cost for Breweries? Myles Trempe Discusses with SmartFinancial

Myles Trempe - Producer

Brewery insurance may include a mix of coverage types that are standard across most businesses and coverage types that are specific to the needs of the brewing industry. Producer Myles Trempe spoke with SmartFinancial to discuss the types of coverage a brewery should consider and what factors will impact rates. 

“Brewery insurance costs will depend on various factors such as location, sales revenue, the size of the operation and any other risk exposures that might be present,” Myles said. “Microbreweries can typically expect to pay between $500 and $1,500 per month for a program that includes general liability insurance, liquor liability insurance, commercial property insurance and workers’ compensation coverage.”

Read the full article here.

Questions about brewery insurance coverage? Contact Wallace & Turner at 937-324-8492 or online here.

Inland Marine Insurance: What It Does and Doesn't Cover

Don’t be confused - inland marine insurance coverage has nothing to do with the ocean or other waterways. If you have a business that regularly transports materials over land or stores materials in a location away from your ordinary business premises, you likely need inland marine insurance as part of your overall business insurance package. We explain more about this type of coverage below. 

What is inland marine insurance and how does it work?

Commercial inland marine insurance protects your property from hazards while it is in transit via land or sea. This policy covers property regardless of its location, providing it is within the policy territory. Commercial inland marine policies can be written on a scheduled basis, a blanket basis or combination of the two. 

Businesses can either get a standalone policy or get inland marine as an endorsement on another policy, although some types of inland marine, such as ocean cargo coverage, typically require a separate policy and sometimes from a specialty carrier, for example Lloyd's of London. 

What does inland marine not cover?  

Some exclusions business owners might not think about, include: 

• Mailing or shipping through a common carrier (e.g. FedEx, UPS) may or may not be insured through the cargo carrier.  

• If equipment is leased or rented from supplier, the renter business might need its own coverage on the equipment. 

• If property is damaged while it's being repaired, whether working on your own property or working on someone else's property. 

Why would a small business need inland marine insurance? Who are good candidates?  

Businesses that have property off premises or companies that ship their goods. For example, contractors (regular user of inland marine for tools used away from their shop). Industries that should consider inland marine coverage include: agricultural and farming, contractors, distributors, manufacturers, retailers, trucking operations.

How much inland marine insurance coverage do I need?

For endorsement costs, using a contractor's equipment as an example, $1 per $100 value for large equipment (e.g. bulldozer), and up to $3 per $100 value for small tools/equipment (drills, etc. that are more likely to be stolen).  

A standalone policy could have a minimum premium, typically between $250 - $500. If attached to a business package, it might not be subject to a minimum charge. So, it's more advantageous from a premium standpoint to endorse or attach to an overall business package versus a standalone.  

Learn more about Inland Marine Insurance here.

Questions about Inland Marine Insurance for your Ohio business? Contact us to speak with a commercial insurance agent.

Who Needs Professional Liability Insurance?

You are good at your job. You are an expert in your field. But you can still make mistakes. And when you do, you may face legal and financial liability. In some cases, that liability could put your career and financial stability at risk.

That’s where professional liability insurance comes in. There are dozens of types of professional liability insurance, as well as individualized rules for each career and industry. All the separate recommendations and rules can make this a confusing area of commercial insurance.

So who needs professional liability insurance? Read on to learn more about this coverage. If you have additional questions, contact the Wallace & Turner team here.

Professional Liability Insurance Defined

Having a thorough understanding of professional liability insurance will help you determine whether you need it, and how much coverage is appropriate. 

Here’s the short and sweet definition: Professional liability insurance is an insurance policy that protects you if a client or customer decides to sue you for a financial loss. These insurance policies protect you by covering the financial liability you may face if a client sues you because of alleged negligence that caused them harm. These kinds of lawsuits may look different across a wide range of industries, but the basics are usually the same.

Professional liability insurance is often referred to as errors and omissions (E&O) insurance. Depending on your job title and industry, these policies may protect you in the event of the following issues that could lead to financial harm for your clients:

• Breaches of contract

• Errors in the work you deliver

• Undelivered products or services

• Missing deadlines

• Projects going over budget

• General negligence resulting in demonstrable financial harm

Who Should Have Professional Liability Insurance?

Mistakes and negligence are possible in almost every industry and job title, but not every industry requires professionals to obtain professional liability insurance. While some states can be quite strict about requiring doctors, lawyers and similar professionals to have E&O insurance, Ohio is much less strict. 

For example, not all doctors are required to carry medical malpractice insurance in Ohio. However, most hospital systems and individual institutions require physicians to obtain this coverage.

The Ohio State Bar Association says attorneys in Ohio are not required to have legal malpractice insurance, but if they don’t, they must notify their clients and have them sign a form acknowledging that they do not have the coverage.

However, Ohio state law does provide for several specific instances in which professionals must maintain E&O insurance, and it can be tough to keep up with which industries require professional liability coverage by law. For instance, Eastern medical practitioners and acupuncturists must have at least $500,000 in professional liability insurance in Ohio. 

Because the specifics of who is required by law to have professional liability coverage in Ohio can be a little confusing, it’s always a good idea to reach out to a local, independent insurance agent to discuss the basics of the coverage you need.

Who Else Needs E&O Coverage?

It’s important to remember that you may still need professional liability coverage even if you aren’t specifically required by law to carry it. Really, any professional or business owner who stands to be sued for a significant amount of money by a client or customer should consider this coverage.

Here are some examples of professionals who often need to purchase professional liability insurance:

• Real estate agents

• Accountants

• Architects

• Engineers

• Insurance professionals

• Financial advisors

• Information technology professionals

• Cyber security professionals

• Management, security and other types of consultants

This is by no means an exhaustive list of industries that might benefit from professional liability coverage. If you are concerned about being sued by a client or customer due to a financial loss, you may be a good candidate for E&O coverage.

Professional Liability Insurance vs. General Liability Coverage

Many business owners already purchase general liability insurance. And when they start hearing about professional liability insurance, they think they are already covered. That assumption is often a mistake.

That’s because general liability and professional liability are two distinct types of liability. General liability insurance covers you in the event of an injury to someone else’s physical body, property or reputation due to your negligent actions. Professional liability insurance covers you in the event of a client’s financial loss due to your actions in a professional capacity.

Let’s illustrate that with a real-world example. If you are an accountant, your general liability insurance would cover you if someone came to your office and was hurt after slipping on a wet floor. Your professional liability insurance would cover you in the event that you made a mistake with a client’s account that resulted in the loss of money for the client.

In both cases, how much you are covered for will depend on the specifics of your chosen insurance policy, but both types of coverage are essential to ensuring the future of your business. No matter how confident you are in your professional abilities, mistakes can and will happen. When they do, you need to be covered.

Wallace & Turner: There for You and Your Business, Always

The truth is that, in most fields, it’s not a question of if you will make a mistake in your career — it’s when. We’re all human, and humans make mistakes. Professional liability insurance can make sure that a simple mistake doesn’t turn your life upside-down. 

Whether you need professional liability insurance will depend on your exact career, Ohio law and your level of risk tolerance. In other words, the answer to the question of who needs professional liability insurance is not always clear.

What is always clear is the advice you will get from the team of independent insurance agents at Wallace & Turner. We have been serving the Urbana and Springfield, Ohio, communities for decades. If you have questions about professional liability insurance or any other business insurance policy, reach out to us via email at info@wtins.com or phone at 937-324-8492.

Umbrella Insurance in Ohio: What It Is, Who Needs It & Why

Insurance is often figuratively compared to an umbrella. If liability and risk are the rain, your insurance policy is the umbrella because it keeps you dry. But within insurance coverage, there is also a policy specifically called Umbrella Insurance. So what does this coverage do that’s different from a standard policy? Umbrella insurance in Ohio is a way to make your umbrella of protection bigger. 

In other words, an umbrella insurance policy extends your coverage for liability. While many insurance policies already have liability coverage, they often don’t have enough. Umbrella insurance is a way to protect against that problem.

Is this type of extended coverage right for you? The team at Wallace & Turner is here to guide you through the decision by identifying which assets an umbrella policy would help cover and to determine how much coverage you should have. Our independent insurance agents are available to answer any questions you have Ohio umbrella insurance. Read on to learn more, or reach out to our team to talk about your policy options.

What is Umbrella Insurance?

Imagine you’re driving around Springfield, Ohio, when you get a distracting text message. You look down to see what it says, and in an instant, you slam into the rear of the car stopped at an intersection in front of you. The driver is hurt and his car is totaled. A few weeks later, you get notice that he’s suing you for $600,000.

Your standard car insurance may carry a liability limit of $300,000. If that’s the case, you would have to pay the remaining $300,000 out of your own pocket — that is, unless you had umbrella insurance.

Umbrella insurance is an additional policy designed to cover the difference between the liability limits on your existing policies and the amount you’re sued for. It’s also designed to cover related costs, such as the cost of a defense lawyer.

Types of Umbrella Insurance

Umbrella insurance isn’t just for car accidents, although this is a common use for the coverage. It’s actually designed to cover you against a wide range of liability. Here are some examples of the types of liability Ohio umbrella insurance can cover:

• Car accident liability

• Boating accident liability

• Homeowner liability (involving slip-and-fall accidents and similar issues)

• Libel and slander

• Commercial liability

Umbrella insurance can cover many types of incidents that standard insurance policies won’t. 

How it Works

Umbrella insurance policies usually won’t kick in until the limits of your other applicable policies are exhausted. For example, if you have a $250,000 liability limit on your homeowners policy and you are sued for $300,000 due to a slip-and-fall accident at your home, your umbrella policy would pay the $50,000 difference.

Umbrella insurance can cover your personal liability or liability related to your business. Keep in mind, however, that these types of policies are usually separated. A commercial umbrella insurance policy likely won’t cover you for an accident in your home, and a personal umbrella insurance policy likely won’t cover you for an accident at your place of business.

Things Umbrella Insurance Won’t Cover

Umbrella insurance is a particularly handy type of coverage if you have valuable assets or face a lot of potential liability, but it isn’t a catch-all. This type of insurance won’t cover everything, which is why it’s important to work with an insurance professional to make sure you’re covered in every way you need to be.

Here are some examples of things umbrella insurance policies typically won’t cover:

• Injuries that happen to you

• Damage to your property

• Liability from contract violations

• Any criminal or intentional acts you commit

• Third-party liability involving your business

Who Needs Umbrella Insurance in Ohio?

Most people could benefit from having extra coverage, but umbrella insurance is only needed if you face certain types of liability. The following are some examples of when you may need this type of coverage:

• You own property.

• You are a landlord. 

• You are a public figure.

• You coach children’s sports. 

• A new driver is part of your household.

• You own a gun, dog, trampoline, pool, hot tub or other items that can lead to injuries.

• You have a lot of guests in your home.

All of the above scenarios can mean you are particularly vulnerable to liability. And an Ohio umbrella insurance policy is an effective way to protect yourself.

Why Get Umbrella Insurance?

The primary benefit of umbrella insurance is relatively straightforward: You are better protected from being sued. But these benefits actually go deeper than that. For example, the coverage amounts for umbrella insurance in Ohio typically start at $1 million, and that will usually cost you between $150 and $300 per year in premiums. And if you need more than $1 million in coverage, you can usually add on another million for around $75 each year.

That’s pretty affordable, especially when you consider that the average car accident settlement is more than $24,000, with settlements on the higher end easily topping hundreds of thousands of dollars.

Additionally, if you’re a world traveler, umbrella insurance may be the only type of liability coverage that travels with you. Typically, your Ohio umbrella policy will cover you for liability that arises anywhere in the world.

Find the Best Ohio Umbrella Insurance Policy for Your Needs

Put simply, umbrella insurance can be a lifesaver. No one wants to be sued, but if you are a member of society, you are always at risk. It’s just like rain — any time you go out, you run the risk of getting wet. That’s why you shouldn’t leave the house without your umbrella.

Umbrella insurance can offer the kind of broad liability protection you need, no matter the circumstances you face or the value of the assets you own. There are plenty of policies to choose from, and figuring out which one is right for you can be a challenge. We’re here to help. 

The Wallace & Turner team can connect you with the perfect Ohio umbrella insurance policy to protect you, your family and your wallet. Ready to make sure you’re fully covered? Then reach out to our team. Give us a call at 937-324-8492 or contact us online today.

5 Questions to Ask When Choosing an Insurance Company

Selecting the right insurance company can feel overwhelming – there are so many options and you want to make sure you’re working with someone that will be there for you when the unthinkable happens. While price and coverage are essential considerations, what about customer service? When you have a question or a claim, you want to be able to speak with someone that knows your situation and you’re not “just an account number.” Have you considered financial strength? You also want to be certain your insurance company can pay and settle your claim fairly. 

The following are a few tips to help guide your decision and ensure you have a smooth experience protecting your family and assets.

Financial Strength

Financial ratings of insurance companies describe how financially stable they are, meaning their ability to meet ongoing insurance policy and contract obligations. There are five main ratings companies – A.M. Best, Fitch, Kroll Bond Rating Agency, Moody’s and Standard & Poor’s – and they consider a variety of criteria to determine financial health, including how well the business is doing financially, can it withstand increased claims and vulnerability to natural disasters. Every rating agency has its own methodology, so ratings may vary somewhat among insurers. 

This rating information is important to be aware of when you’re seeking insurance coverage because in the instance of a claim, you want to know the insurance company will be able to pay. Wallace & Turner has worked with top-rated insurance companies such as Westfield Insurance and The Cincinnati Insurance Companies for decades and has a proven track record of financial stability.

Reputation 

Hearing first-hand what customers’ experience with an insurance company has been can be one of the most helpful ways to determine credibility and responsiveness. People often focus on cost when purchasing a policy, but when it comes time to file a claim, they may regret not having considered feedback from current or past customers which provides insight into how the company operates.

An insurance company’s website can give you a good sense of their professionalism, but go beyond this in your research – look at Google reviews, Facebook reviews, LinkedIn testimonials and other online resources such as the Better Business Bureau. Also, your state insurance department can tell you if the company has had consumer complaints about its service.

However, keep in mind that people are often more likely to head online to rant about a one-time bad experience rather than spend time to post about a positive experience. 

Customer Service

Insurance can be complex so it’s critical to work with a company that will spend time from the outset explaining your options and tailoring a policy that best fits your needs.  

This is especially true if you ever have a claim and need timely assistance. Find out if the company has a designated customer care center or in-house claims department. Many companies offer 24-hour claims reporting and will even text with customers to ensure they are being helped in a timely manner. You don’t want to have an accident or loss and end up sitting on hold for hours or not receiving a call back for several days.

Digital Capabilities

Rather than going in to your insurance company’s physical office, many would prefer to pay their bill or file a claim digitally. Also, in rare circumstances like the COVID pandemic, you want to know that your insurer can quickly pivot to continue serving you remotely.  

Talk with the prospective insurance company about their options for paying bills online, managing your policy via an app, or even creating a digital home or business inventory. These are all benefits that can make your insurance experience seamless. Moreover, if you’re not as comfortable with technology, it’s equally important that your insurance company isn’t strictly online/digital and you have the opportunity to sit down face-to-face and ask questions or update your policy.

Expertise

Yes, cheap insurance is great for your wallet, but it doesn’t mean you have the right coverage for your needs – which becomes problematic come claims time. Unfortunately, many people look for a policy with a lower premium and they don’t realize this doesn’t cover them for a major accident. Rather than focusing on price alone, choose an insurance company that will take the time to help you understand coverage options and create a tailored policy.  

Look at the company’s website and social profiles to see what their professional designations are and if they are providing educational resources to clients. This demonstrates their credibility and willingness to share their expertise.  

To speak with a Wallace & Turner insurance agent in Springfield, Ohio or Urbana, Ohio, click here.

What Small Businesses Should Know About Accidental Death & Dismemberment Insurance

Ben Galbreath - Producer

Accidental death and dismemberment insurance is insurance coverage similar to that of life insurance, and is commonly used as a supplement to a life insurance policy. It covers an employee in the event of an accidental death, or an unforeseen accident that results in the loss or function of a body part (e.g., arms, legs, eyesight, speech, hearing). AD&D does not cover deaths caused by existing medical conditions.

Producer Ben Galbreath discusses what small businesses should know about accidental death & dismemberment insurance:

What is accidental death and dismemberment insurance (AD&D)?

Accidental Death & Dismemberment insurance is a good coverage to be added to a benefits portfolio. This coverage is on a very limited form, meaning it will only pay a benefit due to an accident.  Definition of an “accident” is an unforeseen incident that happens unexpectedly and unintentionally. The coverage is triggered only by an accident.

Do you have to offer AD&D to employees?

AD&D is an optional benefit that can be added to an employer’s benefit portfolio. If the benefit is offered to one employee, it will need to be offered to all. The employees will have the option to take the coverage or not. An employer does not have to offer the AD&D if they don’t want to. If health coverage is offered, AD&D is usually a rider included on the coverage. It can also be offered individually.

How does offering AD&D to employees benefit employers?

Employers offering AD&D benefits is a way of broadening health benefits to make their business more attractive to prospective employees. With the growing struggle to recruit and retain quality employees, this could attract those employees. 

How does being offered AD&D benefit employees?

The coverage benefits employees to some extent – if an employee has an accidental dismemberment, it would help with the medical bills and rehabilitation. In terms of accidental death, the death benefit would be paid out to the employee’s family.

 What does AD&D cover?

AD&D is only triggered in the event of an accident, meaning unintentional death or dismemberment of the insured. Death is self-explanatory and the death benefit would be paid out. When it comes to dismemberment coverage, this would apply to loss, or the loss of use, of body parts or functions (e.g., limbs, speech, eyesight, hearing).

Anything else a small business owner should know about AD&D?

AD&D is usually added to a group health policy for a very minimal cost, but it can also be offered as standalone coverage. Additionally, AD&D can be added to a life policy or group life policy.

Small business owners need to be very careful when offering this coverage due to its limited coverage for unlikely events. It is supplemental life insurance and not an acceptable replacement for term or whole life insurance. This is why it’s usually added to group health or life coverage.

Generally speaking, I don’t advise small business owners to offer AD&D coverage on its own. This type of coverage can be offered in a better supplemental benefit programs. Many accident policies, critical illness and others, offer similar coverage. The best advice would be to speak with a supplemental benefits provider to understand the different options that are available. Working with an independent broker can help build a strong benefits package that could be more cost effective for the employer and employee.

Questions about AD&D insurance, or group health or life coverage? Contact Wallace & Turner at (937) 324-8492 in Springfield, (937) 652-8492 in Urbana, or info@wtins.com.

Working From Home? Check Your Insurance Policy

It’s often said that purchasing a home is the biggest investment that one will make in their lives. Many homeowners (smartly) choose to protect that investment with home insurance. And now that COVID-19 has swept the globe, you may be using your home as an office space, as well.

Did you know that working from home may affect your insurance policy? You may be:

• Working from home temporarily due to COVID-19

• Running a new business out of your house

• Self-employed

Depending on your situation, you may require a different policy. Here are a few variables that could impact your coverage:

You May Not Be Covered for Damages

Before the pandemic, you may not have had expensive computer equipment in your home. As such, your insurance policy might not offer coverage for these additional electronics. Most policies have a limit for the amount that they’ll cover, and the computer and related accessories that you purchased for work may exceed it.

In some circumstances, your employer may have provided you with a work computer to take home. Their commercial insurance policy should cover any damages to the equipment, so you might not need to worry if any damage occurs. However, it’s best to check with your employer to determine if this is the case.

What About Liability?

Before the pandemic, your house was your personal residence, and that was it. Now, it’s also a place of business.

Although many of us are reducing social contact to prevent the spread of the virus, you may need to receive visitors in your home for a business-related reason. Client meetings may require face-to-face interaction. But if any damages are incurred by the guest during their visit (like a slip on an icy doorstep or bite from a dog), you may be held liable to cover them.

When you registered for home insurance, you may never have anticipated that one day, you’d be working from home. It’s important to review what types of claims your policy actually covers.

No one wants to be held liable for a claim that they believed they had coverage for. Ask your insurance provider about liability insurance for these situations.

Have You Considered Home-Based Business Insurance?

Many people’s employment statuses have changed since the start of the pandemic. You may have decided to start your own business rather than work for a company. This is a bit different than working from home temporarily. For this arrangement, you’ll need a home business insurance policy that covers home-based business assets and expenses.

Think about some of the business equipment that you’ll store in your home, which varies depending on your industry. You may have items like:

• Power tools

• A computer, printer or other office supplies

• Inventory such as clothing and apparel

The costs of replacing these items will add up. If they were to be damaged in any way, not only would it cost you to replace them, but it would impede the daily operations of your company. A standard home insurance policy won’t cover expenses that are related to a business. You may need to extend your coverage to include business assets.

Business Interruption Insurance

This policy is relevant to those working out of their home. If your office is damaged in a fire or other natural disaster, you won’t be able to carry out business as usual. With business interruption insurance, you will be covered for replacing damaged equipment or losses in revenue.

When you’re just starting a business, a setback can be devastating. Talk with your independent insurance agent about business interruption insurance.

Pro Tip: Get a Handle on Rising Electricity Costs

If you’ve been working at home for a year, you may have noticed that your energy bill has steadily increased. Instead of spending 40 hours a week out of the house, you now spend that time using your home office.

We have a few energy saving tips for when you’re at home that will bring down electricity costs:

• Use a drying rack or clothesline instead of your dryer

• Set up power bars and turn off unused electronics

• Replace any incandescent bulbs with LEDs

When you lower your energy bills, you can use those savings to pay for more comprehensive homeowners insurance.

The bottom line is that every homeowners insurance policy is different. In all likelihood, you will need to expand your coverage to properly maintain your home office. When you’re working from home, be sure to inform your insurance agent and ask if any additional coverage is required.

Questions about home business insurance coverage? Contact Wallace & Turner at (937) 324-8492 in Springfield, (937) 652-8492 in Urbana, or info@wtins.com.

The 2021 Insurance Industry Outlook – P.J. Miller Offers Insight in InsuranceQuotes.com Interview

P.J. Miller

Key issues this year like a global pandemic, a changing of the guard in Washington, and an economy upended by COVID-19 will likely continue to have a major impact well into 2021. Partner P.J. Miller was asked to break out his crystal ball and forecast what the new year will bring for the insurance industry, as well as what it ultimately means for policyholders.

Travel Insurance

On the topic of travel insurance, P.J. said: “There may be some insurance carriers that could bring forth new coverages that could cover some COVID-related items, for a fee, with conditions. This would potentially exclude coverage for the traveler, but cover some expenses for cancellations of usage, or cover the traveler but not the cancellations.” 

Industry travel insurance policies will also most likely require a more in-depth questionnaire to purchase coverage. “For example, you’ll get questions like “have you received the vaccine”, “are you traveling internationally”, “are you traveling to a hot zone;” and what is your age and do you have pre-existing conditions,” among others,” P.J. commented “At a minimum, expect rates to rise.” 

Events Insurance 

“Coverage is available now and will be available with the same conditions that are currently in-place – but no coverage for anything COVID-related,” P.J. said. “Or, event insurance could be based on number of attendees, such as the higher the number, the higher the premium. Additionally, some carriers may entertain smaller events, with specific conditions and restrictions.” 

Restaurant Insurance 

“As with EVERY business or entity, the lost income due to COVID-19 will continue to be excluded (not covered), even though restauranters might have seen a few courts mandate that the insurance carrier pay the business income claim,” P.J. said. “This will be fought, appealed and likely end up in a Supreme Court (state and federal). It is clearly excluded in 99.9% of all insurance policies, so it’s not just a carrier declining to pay ‘just because,’ it’s a part of the contract; therefore, the carriers will contend that this will lead to a system of ignoring contract language.” 

Film and TV Production Insurance 

The film and television industry will see a continuation of strict guidelines. “Those guidelines will be focused on locations, contracts with studios, waivers, disability claims for actors unable to work due to COVID-19 infections, and on down the line to the theatres, nationally and internationally,” P.J. commented.

 Read the full article at InsuranceQuotes.com

Questions about personal or business insurance coverage? Contact Wallace & Turner at (937) 324-8492 in Springfield, (937) 652-8492 in Urbana, or info@wtins.com.

Insurance for Riots and Looting – P.J. Miller Interviewed by Forbes

P.J. Miller

Many small businesses have seen damage and looting over the past months. The reality of trying to rebuild and reestablish operations has become a major hardship, and financial pressures pushed some to reduce their coverage.

In an interview with Forbes, partner P.J. Miller noted that some business owners called to review their insurance during the pandemic shutdown, however, without the proper coverage, business owners may fall short of what is needed to resume operations.

If the cuts included business interruption insurance and, on reopening, the company found itself in a riot, that could be a problem. Time out of business means lost revenue. No coverage, no money coming in when it’s impossible to operate.

Many small businesses opt for 30, 60, or 90 days of interruption insurance, P.J. said. However, serious damage could push recovery times far past those limits.

Read the full Forbes article.

Questions about business insurance coverage? Contact Wallace & Turner at (937) 324-8492 in Springfield, (937) 652-8492 in Urbana, or info@wtins.com. 

Why Are Insurance Policies Impossible To Read? – Forbes Interviews P.J. Miller

P.J. Miller

Many policyholders believe insurance contracts are a nearly impossible-to-solve puzzle for the average person. So, what makes them so hard to understand?

An insurance policy is a legal document that has to hold up in court. That’s why you see lots of legalese and specialized terms in an insurance contract.

“Simple language opens things up to ambiguity,” said partner P.J. Miller. “And ambiguous contracts are prone to be torn apart by attorneys. In court, ambiguous policy language can work in favor of the consumer.”

Miller added: “Years ago, insurance contracts were easier to understand. But over time, new laws, regulations, court cases and differing opinions started to add complexity to the contracts.”

In other words, insurance contracts are complicated because they have to cover all their bases in case of a lawsuit or a large claim. Increased regulation has pushed insurance companies to make the contracts denser, making them difficult to read for the average policyholder.

Before you pay for any insurance policy, be sure to take the time to read and understand it. Get help if needed, so that you know what coverage you are—and aren’t—paying for. 

Read the full Forbes article.

Questions about purchasing an insurance policy, or understanding your current one? Contact Wallace & Turner at (937) 324-8492 in Springfield, (937) 652-8492 in Urbana, or info@wtins.com.

Insurance Policies That Can Help Businesses with COVID-19 Losses - P.J. Miller Interviewed by Insurance Support World

P.J. Miller

Businesses are going through a period full of difficulties due to COVID-19 and are looking to insurers for adequate financial support. Partner P.J. Miller spoke with Insurance Support World about the benefit of a cyber and data liability policy to help recover a variety of expenses.

P.J. commented “COVID-19 is not covered by business interruption coverage. Exclusions to business interruption coverage specifically include pandemics, viruses (even the flu), and similar circumstances. This is being examined at the legislative level because businesses are turning to their congressperson or senator to question why they have business interruption coverage, but insurers aren’t covering loss related to COVID-19.

Law firms are also getting involved and pressing the issue. Some states have politicians putting bills together in hopes of passing legislation to require private insurance companies to cover business interruption related to COVID-19/viruses, and/or make it a federal requirement that the federal government covers business interruption for COVID-19/viruses. If COVID-19 has resurgence this coming winter and businesses are forced to shut down again, having a “virus protection plan” will allow for coverage to be triggered and send money to those impacted businesses.

A pandemic or virus doesn’t currently have an actuarial rating – what would insurers have to charge to cover the premium – but there is a potential we will see this in the future.

Cyber & Data Liability

In regards to cyber liability and data breaches, the COVID-19 outbreak is creating the perfect storm for these types of attacks to flourish. A cyber and data liability policy can help businesses recover a variety of expenses associated with data breaches, including:

• Notifying customers about a data breach.

• Credit monitoring.

• Restoring personal identities of impacted customers.

• Recovering compromised data.

• Costs to defend claims by state regulators.

• Fines and penalties.

• Repairing damaged computer systems.

Click here to read the full article.

Questions about cyber and data liability insurance coverage? Contact Wallace & Turner at (937) 324-8492 in Springfield, (937) 652-8492 in Urbana, or info@wtins.com.

COVID-19 & The Insurance Industry – P.J. Miller Discusses the Biggest Challenges with Insurance Support World

P.J. Miller

Coronavirus is having a massive impact worldwide, including in the insurance industry. Partner P.J. Miller spoke with Insurance Support World about pandemic/virus “claims” and the potential for financial devastation if insurance policies had to pay out for such coverage.

P.J. commented, “Being in the insurance industry (as an Independent Agency Owner), I’ve learned, or should I say had it reaffirmed, that while most commercial insurance buyers understood the fact that Pandemic/Virus “claims” are basically not covered, some see it as an attempt by insurance companies to not cover claims, “just because.” Technically, all property policies exclude (do not cover) such claims, and there’s not another source or method to buy the coverage. The same exclusionary language exists for flood, and yet flood is almost always available and usually reasonably priced; however, the number of flood policies purchased each year falls woefully short.

So, which calamity would you have bet on to wreak havoc in the U.S.? If you were offered Pandemic/Virus coverage last year, would you have laughed it off like being offered Volcano coverage?

While there aren’t many reports out yet to determine the dollar value of what would be considered covered Pandemic/Virus claims, most guesses are that it would have eclipsed the trillions that the Federal Government expended and would have caused widespread bankruptcies in the insurance industry. 

The premiums currently and historically charged for property coverage contemplates known perils (fire, wind, etc.) and without calculating and charging for the potential expense of paying an excluded item such as Pandemic/Virus, it would cause the widespread, if not total devastation, in the insurance and financial markets.” 

Click here to read the full article. 

Questions about the impact of coronavirus on your insurance coverage? Contact Wallace & Turner at (937) 324-8492 in Springfield, (937) 652-8492 in Urbana, or info@wtins.com.

Evaluate Your Insurance Coverage & Assess Your Risk - National Insurance Awareness Day

National Insurance Awareness Day falls on June 28th each year, reminding us that it’s a good idea to regularly review our insurance policies. Did you buy a new home or make upgrades to your existing home? Is a child heading off to college? Are you covered in the instance of a flood? Have you considered data and cyber insurance for your business? As life changes, so should your insurance coverage. Contact your insurance agent to evaluate your coverage and assess your risk.

Commercial Insurance & Riot Damage – P.J. Miller Discusses Coverage with Expert Insurance Reviews

In the article “Commercial Insurance & Riot Damage,” Expert Insurance Reviews interviewed partner P.J. Miller to examine what’s covered under commercial insurance for riots and looting, and how businesses can recover from damage and other losses. 

P.J. commented:

“The types of insurance that cover riot and looting damage would be: 

• Most standard property insurance policies would cover riot damage including the policy terminology of civil commotion and vandalism, as typically these are automatically covered with some specific conditions excepted.

• Looting most likely requires some form of ‘theft’ coverage, as looting would typically not fit within the definition of vandalism. Vandalism means they damaged the building or contents but didn’t take anything. Looting fits the definition of theft, burglary, or possibly robbery. 

Many business owners have been impacted by the coronavirus because the business had to temporarily or permanently shut down and, just as important, all business policies exclude (do not cover) the loss of business income.

Property policies require physical damage to the building or contents to trigger coverage and only then can your presented ‘loss’ be considered for a business interruption claim.

The exception to an indirect circumstance would be the building down the road that sustains damage and civil authorities prohibit entering that area which, in turn, creates a loss of income for the business owner since no one, including potential customers, is allowed into the detoured area.

Most property policies contain the clause and limit the exception to a business interruption claim for a two-week period. The impact of riot damage and the coronavirus is potentially significant for each circumstance.

Rioting

While widespread across the country, rioting can cause disruption to specific locations and communities in the form of moratoriums on property coverage. The people getting ready to close on a house or commercial building might find it difficult in obtaining the necessary coverage until the moratorium is lifted. 

Additionally, even not-at-fault claims can be taken into consideration when buying or renewing insurance, so if you were affected by riot damage or looting, it most likely will show up on your claim history and can impact your premium, deductibles going forward, and your acceptability when shopping around for different coverage and pricing.

Property Insurance and Liability

While the coronavirus is being debated on the property insurance and liability insurance fronts, the entire industry is holding its collective breath.

Most estimates indicate little to minor impact to COVID-19 as it stands, but in the event of legislation to the detriment of the industry, the estimates then lean toward massive to complete devastation of the property and liability insurance industry.

On the property side, the main issue is business insurance in the form of business interruption or loss of income coverage. The restaurant that was coming off of a great year in 2019, all of a sudden went to zero sales with staff layoffs and the inevitable closure.

Insurance industry insiders are suggesting coverage be implemented through a program similar to a FEMA flood plan, while others suggest charging for business interruption or loss of income coverage and removing the exclusionary language. The impact on business owners’ bottom lines could be significant, if not unaffordable. 

In the meantime, coverage remains unobtainable. In southwest Ohio, in my town of 60,000, protesters and rioters caused minimal disruption and relatively low levels of damage, estimated to be $75,000 to $100,000. Add to that the cost of overtime of law enforcement and emergency repairs for boarding of buildings.

Numerous panes of glass were damaged in business and governmental buildings, in addition to municipality vehicles. Streets were closed, law enforcement was in-place and several arrests were made, in addition to curfews set for two nights. 

Fortunately, only minor injuries were reported. Law enforcement handled the situations and their presence helped keep the disturbance to a low level and they attributed most of the problems to a select few, ending in their arrests.”

Continue reading the full article to learn more about commercial insurance coverage for riots and looting.

Questions about business insurance? Contact Wallace & Turner at (937) 324-8492 in Springfield, (937) 652-8492 in Urbana, or info@wtins.com.

Dayton Business Journal Ranks Wallace & Turner Among Top Property & Casualty Insurance Agencies

Wallace & Turner was once again recognized on Dayton Business Journal’s annual list of top Dayton-area Property & Casualty insurance agencies for 2020. Operating locally in Springfield, Ohio since 1870, Wallace & Turner is one of the oldest independent insurance agencies in the state. We provide personal insurance, commercial insurance and life & health coverage. 

View the full list (requires subscription).