With the evolving and significant changes happening in the world around the
coronavirus and its impact on commercial insureds, we have received a number of
questions from our clients regarding business income coverage.
Designed to protect a business in the event of an interruption in operations caused
by a physical loss that results in financial downturn, business income coverage
serves to cover the period of time it takes to rebuild, repair or replace damaged
property. Requirements for the coverage to trigger vary across insurance carriers.
Additionally, each state has its own department of insurance that governs what is
acceptable insurance language which can cause variations from state to state.
Most insurance companies policy forms incorporate approved Insurance Services
Office (ISO) policy terms and conditions. Following ISO, the business income
insuring agreement requires a covered cause of loss that causes direct
physical loss of, or damage to, the property at the described premises. The
cause of loss must also cause a necessary interruption of operations that results in
business income loss.
Without a direct physical loss, business income coverage will not be triggered.
There will also not be a period of restoration of property to determine business
In addition to the terms of business income coverage, policies include Exclusion of
Loss Due To Virus or Bacteria (form numbers CP0140 or CP7140), which exclude
commercial property losses resulting from any virus, bacterium or other microorganism
that induces or is capable of inducing physical distress, illness or disease. Form number CP0140 is found on newer Insurance policies. Form number CP7140 appears on older policies. These endorsements have been used since they were issued and filed by ISO several years ago.
With any claim, policy wording and the specific trigger driving losses determine the applicability of coverage. If a formal property business income claim is filed, it will be adjusted on the applicable policy wording and specific details driving the loss. Theodore & Associates is committed to supporting you through the challenges of the coronavirus. We will continue to monitor the evolving situation and work with you through this uncertain time.
With continued flight cancellations and imposed travel restrictions, it's important to know what travel insurance covers.
As reported cases of coronavirus increase, the outbreak is stoking fears among travelers.
Several countries, including the U.S., have imposed travel restrictions that include quarantines to contain the virus. At least 73 airlines have canceled or limited flights to China. And now cruise lines have begun to take notice following a recent outbreak on a ship in Japan.
Given these developments, consumers may be wondering whether travel insurance will protect them in case they cancel their trip, become sick while abroad, or if their flight is grounded.
But consumers need to understand that their travel policy doesn’t protect them from everything. So it helps to find out ahead of time what is and isn’t covered.
Cancellation coverage? Don’t count on it
Tour operators and travel insurance brokers are reporting an increasing number of requests from customers asking to change their travel plans. Meanwhile, many U.S. airlines, including United, America and Delta, have canceled several flights to China.
Consumers may be surprised to learn that in either situation, their travel policy probably wouldn’t cover them.
Most travel insurance is designed to protect you in case you need to cancel a trip, lose belongings, or require medical attention. But for cancellations related to coronavirus, only certain reasons qualify. Here’s a breakdown.
Airline cancels flight: Not usually covered
Reimbursing a canceled flight is generally the responsibility of the airline — not the insurer. The same goes for cruise lines, rail companies, or any other transportation provider that cancels because of coronavirus or any other reason.
That doesn’t necessarily mean the transportation provider will cover all expenses. Airlines, for example, are not required to refund canceled flights and may limit the extent of the reimbursement. Fare policies vary, so it’s a good idea for travelers to review them before booking a flight.
Traveler chooses to cancel a trip: Not covered
Travel insurance will cover consumers who have to cancel their trip for reasons including adverse weather, a natural disaster, jury duty, an act of terrorism, or the travel company going out of business. But it won’t protect travelers who cancel because they are worried about the coronavirus.
Traveler contracts coronavirus and has to cancel: Covered
Travelers are protected if they have to cancel a trip because of personal sickness or injury, or the sickness, injury or death of an immediate family member.
Most standard policies will cover cancellation or interruption if the traveler is placed under quarantine, or if the destination is placed under a mandatory evacuation.
Although standard policies don’t cover all cancellations, some travel policies offer “cancel any reason” provisions or flight delay benefits that will provide reimbursement. Again, here’s where reading the fine print comes in.
Illness protection — it’s in the details
The good news for consumers is that most policies protect travelers who become sick while abroad. But the details of the policy matter.
Travel insurance is intended to cover medical costs abroad. As long as the policy includes medical coverage, the traveler is protected should he or she require medical care, hospitalization, or a medical evacuation while in a foreign country.
But travelers need to understand the stipulations of their policy from the outset. Here are some considerations:
Primary or secondary payer?
A secondary payment policy is designed to pay for costs that the traveler’s personal insurance does not cover. This may mean the traveler has to pay deductibles and co-pays out of pocket. A primary payment policy, however, serves as the first payer for any medical costs that arise.
All policies have a maximum they will pay, and many also have deductibles and other limitations.
Policies may exclude coverage for certain situations, such as risky activities. So thrill-seekers like skydivers and bungee jumpers might be out of luck.
A separate health policy, or rider, may be helpful for covering things a standard policy might exclude (like that skydiving expedition). A traveler may be able to purchase a rider to extend coverage in case of injury. A rider for foreign medical care coverage might also be useful, although those types of provisions are rare.
In most cases, a standard travel policy is sufficient. There are several types of policies with different levels and coverage for all sorts of travel. Some policies may be specific to cruises, where it may become critical to evacuate to a hospital. Other policies are geared more toward adventure travel.
Riders are meant to provide coverage that’s missing from a primary policy. So if a policy excludes coverage for dangerous activities such as bungee jumping, a traveler may be able to purchase a rider to extend coverage in case of injury.
The headlines may paint a scary picture of the coronavirus, but it helps for U.S. travelers to keep facts and figures in perspective.
As of Feb 25, 2020, there have been more than 80,000 confirmed cases of coronavirus, according to the World Health Organization. Of those, 77,780 were reported in China, where the outbreak originated.
And although some U.S. airlines have canceled flights, bear in mind that almost all of these cancellations involve flights to and from China. The U.S. has temporarily barred entry for anyone traveling from China who isn’t a U.S. citizen, permanent resident or immediate family member of either.
Travelers planning a trip to the Western Pacific region may want to give more thought to their insurance coverage. For travelers who are headed anywhere else in the world, chances are they’ll be in good shape with a standard policy.
The key is for travelers to determine their actual risk, understand what they are trying to cover, and then find a policy that accomplishes that.
Group life insurance shows employees you value what matters most to them - their loved ones, and it is an integral part of most employee benefits packages. When provided by an employer, employees appreciate the value of life coverage and the additional security it provides to their families.
Life insurance can help employees protect their loved ones.
Did you know more than 35% of all households would feel a negative financial impact within 1 month after the death of the primary wage earner? Having life insurance can help your employees have confidence that, should they pass away, their family will have a financial safety net to replace lost income, cover final expenses, everyday living expenses, and long-term obligations that may otherwise cause them financial strain. Life insurance can even be used to help fund a child’s education.
It’s a key benefit to help you attract and keep quality employees.
When candidates are searching for a new job, benefits are a main differentiator, and prospective employees tend to consider a position’s benefits before they apply. That includes life insurance. Whether you cover the premium or offer employee-paid, voluntary life insurance, group rates make coverage through an employer an affordable option for employees. Including life insurance in your benefit package can make you stand out against organizations competing for the same candidates—and help you hold on to the good employees you’ve already hired.
It can be a budget-friendly option for you to offer.
If you think offering life insurance to your employees is out of your price range, think again. There are plenty of affordable life insurance solutions available. You can pay all, part, or none of your employees’ benefits, depending on your needs and goals. And keep in mind, group life insurance premiums are based on an overall assessment of a company’s risk. Spreading that risk helps bring group rates down, offering an affordable coverage option for employees.
Offering life insurance can help you enhance your company culture.
For many employers, building a strong company culture is about creating an environment that brings your core values to life. Culture is often what drives employee satisfaction. It makes employees feel like they belong, like they’re valued. That’s why including life insurance as an employee benefit plays a solid role in shaping your culture. It shows you put your employees first, and that you’re an employer who wants to help employees have a more secure financial future. For this reason, offering life insurance can help you see improvements in employee turnover, not to mention a general boost in productivity and company loyalty.
The best life insurance policies can be catered to your business needs
Your business—and employees—are unique. Fortunately, you can customize your group life insurance to make it the right match for you. As you’re considering life insurance policies, think about these questions:
Theodore & Associates offers free, comparative quotes on group life insurance from multiple insurance carriers so you can get the best possible rate, whatever your group size or benefit goals.
Contact us to find out how to protect your employees with the right life insurance.
A list of your belongings will make filing an insurance claim much easier!
In the event of a fire or other disaster, would you be able to remember all your possessions? Having an up-to-date home inventory will help you get your insurance claim settled faster, verify losses for your income tax return and help you purchase the correct amount of insurance. Here's how to create one.
Start your home inventory now
If you're just setting up a household, starting a home inventory is relatively simple. If you’ve been living in the same house for many years, however, the task of creating a list can seem daunting—but it doesn’t have to be. Get started here.
Use technology to make your home inventory easier
A simple pencil and paper will suffice, but technology can make creating a home inventory much easier.
Keep your home inventory up-to-date and safely stored
Your home inventory is only useful if it's accurate and you can access it to provide information to your insurance company in case of fire, theft or other destructive disaster. Regardless of the medium you've used to create your list, keep it backed up and in a safe place.
Next steps: After you've taken your inventory, learn how much homeowners insurance you need.
Your home protects you from the elements, but heavy rains can weaken that protection. With a little maintenance and a lot of vigilance, it’s not hard to stay safe and dry.
The first step is finding and fixing any immediate problems as soon as it’s safe to do so. Then, you’ll want to take measures to prevent those problems from happening during the next downpour!
Where is all that rain going?
Your roof and gutters form a key line of defense for your home – and in a storm, they’re vulnerable, because so many things can damage them. Trees, hail, and other objects can create weaknesses that might lead to leaks in your roof, so check for missing shingles and other issues. And keep your gutters clear so all that water drains properly.
Are you checking everywhere?
Water dripping from the ceiling is hard to miss. Water in your crawl space, however, can easily go undetected because hardly anyone ever checks there. Don’t forget to look down there after a storm (or have a professional do it) to make sure everything is nice and dry. If you do see moisture, you’ll want to get it out with a sump pump as soon as possible.
And don’t just look up – another place to check is your home’s exterior, whether it’s siding, brick, or another material. Weak spots can be hard to see, so look at various times of the day in different lighting conditions.
Of course, you’ll want to make sure your doors and windows are properly sealed to keep the elements out, too.
What about around your property?
Storm water has to go somewhere, and if your property doesn’t drain well, or if runoff goes toward your foundation, you could have problems. So watch for patterns, and grade property so it drains away from your home if possible. Always be wary of hillsides and tilting trees after heavy storms, because the land might not be stable.
And don’t forget to keep storm drains clear of leaves and other debris. This can prevent flooding both on the streets and your own property.
What should you do during the storm?
During powerful storms, stay inside. This is not the time to check your roof, your exterior, or your property unless there’s an emergency and you know it’s safe to go out. Monitor your interior, making sure no water is getting in. If it is, do what you can to alleviate the situation in the moment, even if it means just placing something under a leak to collect the water. For more serious problems, though, remember that safety is the most important thing. If your basement is flooding, for example, don’t go down there – you could be trapped and even drown.
Thankfully, powerful storms only hit once in a while. Preparing for them, however, should be on your mind a lot more frequently, because the next one could be tomorrow.
4 Things to Consider When Changing Your Auto Policy
Whether you are adding a vehicle or a new driver, updating your address, or considering a new insurance provider entirely, the process of making changes to your auto policy can be intimidating. Read on for things to keep in mind when adjusting your auto policy.
1. Let Your Independent Agent Do the Work for You
As with any important decision, consider talking to a local expert who can help you navigate the decisions involved in switching to a new car insurance company. While paying the lowest possible rate may seem attractive at first glance, any responsible agent will explain that getting the coverage you need should be one of your top priorities.
For example, if you frequently drive with your dog in the backseat, you might ask your agent whether or not your dog is covered in the event you are in an accident. A professional independent agent can recommend an auto insurance policy that automatically covers any potential pet medical bills if you get into an accident. Not all insurance companies include this coverage. This is an example of how protecting what matters most to you is more important than the savings you get from buying insurance online. The foresight to look ahead and anticipate coverage needs is one of the many benefits of working with an independent agent.
2. Ask the Right Questions About Insurance Carriers
It’s important to balance between being price-conscious and making sure your insurance needs are met. To ensure you receive the correct coverage to meet the needs of you and your family, ask these questions when you speak with your local independent agent:
3. Mind the Policy Gap
Timing is everything as you don’t want to be without coverage between policies. Fees might be involved if you change insurance providers mid-policy term, or discounts may be offered if you shop for a renewal prior to your expiration date, so you’ll want to plan your insurance switchover accordingly.
Failure to avoid a gap in coverage can have serious legal and financial repercussions, especially if a disaster strikes when you’re between insurers. Additionally, a lapse could mean that insurance carriers will charge higher premiums in the future.
4. Follow Through
Once you’ve switched, make it a point to stay in contact with your local agent. Make sure that your previous policy has been canceled. Avoid billing mistakes and credit bureau issues by obtaining written confirmation from your previous insurer that your policy has been cancelled.
If you are moving to a new state, plan to visit with your insurance provider. Because insurance laws vary by state, you’ll want to complete changes prior to your move.
With the right insurance carrier watching out for you, making the switch should be a straightforward process. And, Theodore & Associates is always here to help!
The holiday shopping season will be here before you know it. But there’s an even more important shopping period to think about first: Open Enrollment.
Whether you’re buying your own health insurance for the first time or are considering switching plans, Open Enrollment may seem like a confusing, stress-inducing event. But it doesn’t have to be. Here’s everything you need to conquer this year’s health insurance signup process.
What is Open Enrollment?
Open Enrollment is the annual period of time when everyone gets a chance to sign up for health insurance for the coming year. This year, you may have heard the approaching enrollment period referred to as “Open Enrollment 2020”.
Employers that offer health benefits also have an annual enrollment period to allow employees to switch plans. While most companies kick off their signup process toward the end of the year (usually October or November), the start date and enrollment window vary from business to business.
Why is Open Enrollment a thing?
Before the Affordable Care Act (ACA) was passed in 2010, signing up for individual health insurance was often a challenge. If you had a pre-existing health condition, or had a family history of certain types of diseases, insurers could deny you coverage or charge you much higher rates than healthy people.
These practices prevented people from gaming the system by only signing up for insurance after they developed a health issue. But they also kept many consumers from getting coverage, either because they were denied insurance or because they couldn’t afford it.
After the ACA was passed, new consumer protections were put in place to ensure everyone can get health insurance, regardless of health history. It also provided subsidies to help lower-income people pay for coverage. But these new policies removed the check in place to prevent people from getting insurance only when they really needed it. And thus, Open Enrollment was born.
Under normal circumstances, Open Enrollment is your once-a-year chance to sign up for health insurance. If you miss this window, you have to wait until the next Open Enrollment period to get a new plan (with some exceptions – more on that later). By restricting signups to a limited time frame, insurers are protected from people dropping in and out of plans, paying for coverage only when they have an active health issue.
What’s changed for this year’s Open Enrollment?
For the most part, this year’s Open Enrollment will look a lot like last year. The signup dates are the same. The state and federal Marketplaces still exist, and are one of several ways you can purchase a health insurance plan for 2020. Subsidies will still be available for those that qualify for financial assistance.
Looking for new health insurance for 2020? Start a free quote here.
When is Open Enrollment?For health insurance plans beginning in 2020, Open Enrollment starts on November 1, 2019 and ends on December 15, 2019. But some states have extended the Open Enrollment period until January to give people more time to sign up.
What information do I need to collect for Open Enrollment?
In order to sign up for a plan during Open Enrollment, you’ll need a few key pieces of information, including:
Can I sign up for insurance outside of Open Enrollment?
If you don’t sign up for a health insurance plan during Open Enrollment, and your life circumstances remain the same, you’ll have to wait until next November for your next chance to enroll. However, if your life circumstances do change, you may be able to get insured during a Special Enrollment period.
Special Enrollment is a 60-day enrollment window that happens when you experience a qualifying life event – a fancy phrase for a significant change that impacts your status. Qualifying life events include things like:
Contact our Benefits Department today to learn more and get covered!
They’re trees. And as with so many things in life, proper maintenance is critical. Keeping your trees healthy will allow you to continue to enjoy them and their benefits — one of which is providing enough oxygen for four people every day!
Maintenance also will reduce the risk of a tree falling on your home or your car (or even worse, someone else’s home or car).
Here are some tips from the National Arbor Day Foundation to help keep trees healthy, identify warning signs and address problems. A healthy tree that you care for properly — and regularly — is far less likely to become a hazard. Remember, prevention is key!
Inspect your trees often This applies to all seasons! The sooner you spot a problem, the sooner you can take corrective action — and potentially save your tree. Check trees regularly each year, and have a qualified arborist inspect them annually.
Plant the right species Brittle trees can produce weak limbs that fall and injure people or property. Examples include Silver Maples, Lombardy Poplars, Box Elders, and Willows.
Prune the right way, at the right time Trees should first be pruned when they are young, and then at regular intervals as they age. Make the cut outside the branch collar, and never allow trees to be topped.
Plant in the right place Don’t plant trees that will grow to be large close to your home or under power lines.
Learn to spot problems According to the National Arbor Day Foundation, there are several key things to consider when evaluating your trees for potential issues.
If you have a dead or dying tree, it should be promptly removed unless it is in an area where structures or people won’t be threatened. And have an expert do the job — bringing down a large tree is extremely dangerous, and accidents can result in severe damage, injury, and even death.
The law typically holds the owner responsible for damage or injury caused by a defective tree. So don’t forget about them when you’re working in the yard or examining your landscaping. Keeping your trees healthy can limit the potential for disaster — in addition to keeping your space beautiful and vibrant.
October is Cybersecurity Awareness Month, so we've compiled some information that may be useful to you!
These days even the most old school of business involves technology in some way, whether it be email, cell phone usage, a credit card machine, or even an online customer database. Even the smallest business with only a small amount of online interaction may be vulnerable to cyber hacking or attacks. Every business can benefit from some level of Cyber Liability coverage.
Are You At Risk?
Does your business engage in one or more of the following activities?
If you said yes to any of the above then your business is at risk for data breaches, security issues and even lawsuits for things like copyright infringement, intellectual property theft and plagiarism. Cyber Liability insurance can help.
Why You Need It
In just one week, virus removal software companies identified 30 new computer viruses to add to the long list of thousands (possibly millions) of known viruses from around the world. Each of those can be transmitted in a number of ways, including email, instant messaging, malware and malvertising.
Data breaches may also occur via accidental means such as an employee losing a laptop. Less accidental ways may include employees revealing passwords or customer information on social media. In fact, your employees may be more of a threat to your cyber security than hackers.
The losses due to global cyber crimes are estimated at $400 billion per year. In just one year, companies like Target and eBay were hacked, as was the federal government (click here for a list of recent breaches). Big companies like these make the news, but small businesses may be even easier to breach, and the cyber crime may go unnoticed for even longer.
Cyber Liability Coverage Can Help
Data breaches can be costly. When you think about all of the ways a data breach can affect your business, the financial losses add up quickly:
Take Preventative Measures
A data breach or hack doesn’t have to mean the end of your business. Contact Theodore & Associates to get a quote on a Cyber Liability insurance policy.
From building materials to furnishings, many of the things in your home likely aren’t as flame-resistant as those from yesteryear.
A fire in a modern home is a “perfect storm,” according to safety consulting and certification company UL (Underwriters Laboratories).
Larger homes, more open layouts, new construction materials and other factors mean fires burn more quickly, leaving less time for occupants to escape — and for firefighters to stop the flames. How much less time? About 30 years ago, you had about 17 minutes to get out of the house once it caught fire. Today? Just three or four minutes.
A lot goes into creating that “perfect storm,” experts say. Here are some key factors:
What can you do? Well, unless you’re having a house built or doing an extensive remodel, you can’t really change the materials used to construct your home. However, there are a few things you should do immediately to help keep you and your family safe, no matter where you live:
To learn more about fire safety, check out these tips from the American Red Cross. Because the best fire protection of all is preventing one from starting in the first place!