What Exactly Is Builder's Risk Insurance?

For a construction company of any kind, there are a variety of different types of insurance and other forms of protection that you'll either need to have, based upon legal requirements, or want to have, in order to fully protect yourself. Depending on your region, you may have different needs for professional licensing, business bonding and more, and when finding new projects, you may have a need for bid bonds.

Another key area you'll need to be familiar with is builder's risk insurance, also known a builders liability coverage. Here, you'll learn more about builder's risk protection, what it is, and what it really means for you and your construction business.

Builder's risk insurance is a form of property insurance which guards a person's, or company's, interests against damage towards a building which is in construction, or in renovation. This includes damage to the actual building, as well as the materials being used in its construction, and even the equipment being used to protect the job. In most cases, builders liability includes protection both for damage to all of the above, as well as to physical loss.

Specific areas or events in which builder's risk provides protection include fire, wind and certain types of storm damage, and a wide range of unavoidable or natural accidents and occurrences. Additionally, builders liability insurance protects against theft and vandalism, although an important note to keep in mind is that this may not include theft or vandalism which is perpetrated by employees.

Also keep in mind that certain additional types of coverage may be needed depending on where you're located. For instance, builder's risk does not typically guard against hurricane or flood damage, both of which are major concerns for construction companies in the state of Florida, as well as various other locations.

Most builder's risk policies are for short-term lengths, including three and six month plans. They also have the option to be easily renewed at the end of the original term, which is important for construction as there may be any number of delays along the way towards the completion of a project.

Hopefully you've learned more about builder's risk insurance, what it means, how it works, and how it can help you and your construction business stay ahead, and stay protected through an array of different circumstances. Be sure to consult with a professional before making any decisions, but never let yourself be caught unprepared when the future of your business is at stake.

John Rothschild is the owner of ACI Insurance Services, a leading provider of surety bonds in Florida for more than 10 years. ACI is known for their customer service, their extensive experience and knowledge of the industry, and their affordable rates, and they'll do everything they can to meet the needs of their clients.

3 Ways for Saving on Business Insurance

The operating costs of companies are becoming ever higher and this leads to budget limitations. In this situation, how can you find money to buy business insurance? You can readily use methods which work effectively for lowering the premium. That way, a much smaller chunk of your budget will go towards insurance. Find out how to achieve this.

Package Deals

In order for your company to have comprehensive protection, you need to buy several different types of business insurance covers. The main ones include asset cover, commercial auto cover and liability cover. Typically, these come in the form of separate policies. However, smaller companies are able to purchase them in one package. That way, the total cost of coverage is much lower. This is a simple and straightforward method for saving.

Comparison Shopping

This is one of the most effective methods for lowering the cost of business insurance. Furthermore, any business can use it irrespective of the company's size or budget. Comparison shopping is all about obtaining quotes from different insurers and comparing them.

You should obtain as many quotes as possible. You need to search for the policy which offers the most affordable cover. Just keep in mind that the cheapest policy is not always the best one. You should look for the policy which offers the best value for money. This is the policy which enables you to buy the maximum possible cover amount per dollar. You should watch out for exclusions and limitations as well. The fewer they are the better the policy is.

Discounts

There are many different types of discounts that you need to watch out for. Some are widely advertised while others are offered exclusively. The discount for paying the annual premium in full is one of the oldest and most popular one. It can save you around 5% of the size of the premium on an annual basis. Currently, the online purchase discount has gained great popularity as well. If you buy a policy over the internet, you may be able to save between 5% and 10% of the premium during the first year and possible afterwards.

The range of special discounts includes loyal customer discount. If you already have another type of insurance policy from the same company, they will most certainly offer you a discount on the business cover which you plan to buy. Often, there are special discounts for members of particular entrepreneurial and professional associations. You should check whether you qualify for them.

Use all of these methods for saving on business insurance.

The Main Types of Business Liability Insurance Exclusions

The modern business liability insurance policies are quite comprehensive. However, they do come with exclusions that you must be aware of. The exclusions lower the level of coverage that you get. When you know exactly what they are, you will be able to take additional measures to ensure that you will have the highest possible level of protection.

Expected and Intended Injury and Damage

These liability insurance exclusions may seem obvious, but it is worth putting emphasis on them. When you were previously aware that your product might cause injury or damage, you will not be able to use the policy for paying compensation to the claimant. Similarly, when you or an employee of yours harms the property of a member of the public intentionally, you will not be able to rely on the coverage. Keep in mind that the insurer will investigate the matter and will refuse to help you out in circumstances like the ones described above.

Worker's Compensation and Employer Liability

The business liability cover is for product or professional liability and for general liability. At the same time, as an employer, you may be held liable for accidental injuries to workers which occur at the workplace. In this situation, you will have to provide compensation to the worker, but you will not be able to use the liability cover. That is why you need to purchase a separate employer liability policy or sign up for a worker's compensation scheme.

Vehicle Liability

If your company owns and uses automobiles, watercrafts or aircraft, you have to buy a specially designed third party liability insurance. The general business cover will not work. In fact, you are legally required to have a special cover. Businesses which have road transport vehicles will require commercial auto insurance. In addition to the liability cover, which is mandatory, this policy can include cover against collision and against theft, vandalism, fire and natural perils.

Pollution

The public liability cover does not include pollution. If your business pollutes the natural environment in one way or another, the insurer will not regard this as damage to the public. For this reason, if there is a risk of your company accidentally polluting the environment, you have to purchase a specially designed cover or add such coverage to your existing policy as extension.

These are the general business liability insurance exclusions that you must be familiar with. It is possible for insurers to set individual exclusions based on the types of activities which your company has or on its location or another factor. That is why you should be extra careful when getting covered.

The Main Indemnity Insurance Extensions

If you provide professional services to clients, you must have indemnity insurance. It covers your professional liability in case of negligence, error or omission. These are the main items which you will be insured for. At the same time, most insurers offer extensions as well. These are additional cover benefits which are designed to provide a higher level of protection. Find out more about the main ones and decide whether they will be useful to you.

Loss of Document

If you lose any documents which are important for a client and they cannot be retrieved, then you will be in serious trouble. This can lead to financial and other losses for your customer. If this is the case, the person will have the right to claim compensation. With an indemnity insurance extension which provides protection in case of document loss, the policy will pay the required compensation to the client. This extension is valuable to businesses which work extensively with client documents like legal, accounting and financial companies.

Defamation, Slander and Libel

Defamation occurs when a business or a professional makes a false statement about another company or physical person and this statement causes reputation damage. Slander is the oral form of defamation while libel is the written or physical form. Basically, if you offend a client of yours publicly, the extension covering defamation, slander and libel will help you provide financial compensation to this individual or company. This extra cover benefit is particularly useful to advertising agencies and media businesses.

Breach of Confidentiality

If you have signed a confidentiality agreement with a client and confidential information leaks out, the customer will have the right to demand compensation from you. You can expect to pay a higher compensation if the client is bigger or if the information is very sensitive. The indemnity insurance extension which covers breach of confidentiality is particularly suitable for medical practitioners and legal professionals.

Employee Fraud and Dishonesty

When an employee of yours commits fraud or is dishonest, you will be jointly responsible. However, if you are covered against such an event, the insurance policy will cover your part of the liability. If the fraud has caused loss to you, you will receive compensation as well. Typically larger companies with many employees opt for this type of extra benefit.

Last, but not least, you can get an indemnity insurance extension which covers your professional liability arising from a previous business or occupation. This extra benefit is highly useful for professionals who start a new practice.

5 Tips for Getting the Best Business Insurance Policy

As an entrepreneur, you hope for the best, but you have to be prepared for the worst. That is why you need business insurance. It can help you salvage your company and your income in case a disaster strikes. Now you can select from a wide variety of customisable products offered by many insurers. Use the following simple rules for making the best choice for your business.

1. Make it comprehensive.

If you are underinsured, the money which you spend on a policy will be wasted. It is always best to provide for all possible risks. The comprehensive business insurance should include asset cover and revenue cover. It should feature product or professional liability cover and public liability cover. The commercial auto cover is mandatory in most states.

You must provide for any specific risks as well. For example, if there is a risk that your company's facility may release pollution into the natural environment, you must get a liability cover which is especially designed for the purpose.

2. Buy only as much as you need.

There is no need for buying more coverage than you need. You should not remain underinsured either. The optimal cover amount is determined on the basis of risk and wealth. The best way to calculate how much cover you will require is to look into your net worth, revenue and profit. You should take into account the size of your business, the products which it offers and the clients that it caters to.

3. Go for flexibility.

You would want to be able to modify your business insurance policy in the future when your needs change. You should be able to purchase more cover without restrictions. You should be entitled to modifying the list of covered assets on a regular basis. This applies to all types of assets including moving vehicles. The insurer should be willing to lower the premium which you pay if you take effective measures for lowering risk.

4. Be careful with any extras.

Additional benefits such as specialised employer liability coverage and a 24-hour helpline are quite attractive. However, before you sign up for them, you have to check how much they will cost you. If the cost exceeds the benefit, then you may want to opt out of an extra feature which is offered to you.

5. Get it from a reliable insurer.

The insurance company must have a high independent financial rating, preferably A or A+. It must have excellent customer service based on speed and professionalism. It must have good reputation in its own industry and in your industry as well.

You can now go shopping for the best business insurance.

Why a Pub, Eatery and Convenience Store Need Liquor Liability Insurance

If you are an owner of a retail business that sells alcoholic beverages, you need special insurance. Bars, restaurants and liquor-selling outlets need liquor liability insurance. Don't be caught without the appropriate protection because you face unique risk exposure.

Read the following insurance claim scenarios that could happen to you as well.

Liquor Liability Coverage covered these true claims

A waiter served beer to a teenager and his friend without requiring them to show their identification. The pair eventually left the establishment, but not without incident. The impaired teen lost control of the vehicle he was operating and collided into a telephone poll. The driver's friend incurred severe injuries, resulting in a suit filed by the parents against the restaurant. The charge: unlawful serving of alcohol to a minor. The claim was concluded by a settlement at $60,000 and expenses reached $25,000.

Two minors entered a bar and were served alcoholic beverages. After exiting the pub, one of the teenagers drove a car directly into an oncoming truck. The tractor-trailer driver suffered extensive injuries. The driver filed a claim against the bar for negligent serving minors as well as for not providing adequate training for its waiters. After exhausting the insurance policy's limit, expenses hit $50,000.

A crowd drank a significant amount of liquor at a popular restaurant, and afterward ordered a pack of beer to go. A cop watched the group drive off while flinging objects out of their car. Turning on his police siren, the officer chased the speeding car. The driver lost control and the automobile overturned. Two passengers died from the impact. The parents sued the restaurant for wrongful death. A settlement for $400,000 was reached and expense costs capped at $59,000.

A young man and woman went out on the town to have a good time one evening. They played a few games at the bowling alley while drinking three mugs of beer. Then, they began to argue. The man left alone. As he drove, his vehicle hit a highway worker. The worker suffered a fractured pelvis, a head injury and severe cuts to the face. The worker brought a claim against the bowling alley for negligent service. A settlement for $200,000 was reached and expenses came to $15,000.

An underage patron bought a six-pack of beer at a local convenience shop. The cashier failed to ask him for his identification. The boy served the alcohol at a party where other minors were attending. The boy's mom instructed the boy's 20-year-old sister to drive to the party and bring her brother home. Once she arrived at the party, the girl drank some alcohol. Then, she proceeded to drive home with her brother. Under the influence, the girl lost control of the vehicle, and her brother was ejected out onto the hard concrete. The brother died of related injuries. The heartbroken parents filed a lawsuit for negligent serving to a minor against the convenience store where the beer had been sold. The parents won the suit and received $580,000. Associated expenses reached another $100,000.

PRIME Insurance Agency is familiar with the liquor providing industry's exposure to risk and liability. Given rights to do direct business with 43 of the top insurance companies across the country, we are able to shop the network for you and get you a tailored policy at competitively low quote.

For the Beauty Shop Business Owner, There Are No Short-Cuts to Insurance Coverage

Mirrors, brushes, comps, scissors, blow dryer, pins, curlers, shampoos, conditioners, hair dyes, wax, creams, lotions, polish. The tools of the beauty industry don't stop there.

As a beauty shop owner, you know that there's a lot more to your business than snips, tips and curls. The liability exposure you have is enormous and as unique as your trade is. See what others like you have experienced. You'll agree that the risk - no matter how unthinkable - warrants adequate protection - the kind you can acquire by speaking with an experienced independent insurance agency that you trust.

Genuine Insurance Claim Examples (If they could happen to another business in your industry, it could happen to yours as well)

General Liability Coverage, Professional Liability Coverage and Property Risk Coverage:

A nail salon patron arose from her seat after a manicure, only to fall down in a faint due to the after effects of the nail polish fumes. The woman suffered severe face injury as a result and needed costly reconstructive surgery. The claim's amount reached $150,000.

A hair cutter and stylist forgot to sweep away the snipped hair pieces that had fallen to the floor. The next customer didn't quite make it to the chair the stylist had told him to settle into because he slipped on the mess and fractured his right wrist. Doctors' bills, plus lost wages from his computer programming job reached $50,000.

The beauty salon patron had a skin disorder that reacted negatively to a particular nail procedure. The woman developed an intense infection because of it that necessitated doctors' care. Accumulated medical bills totaled $25,000.

After a regular dye application on her hair, the salon customer developed a serious allergic reaction. She became so ill that she was admitted for medical treatment at the hospital. and stayed there for two days. Total doctor and hospital bills, plus loss of wages reached $20,000.

A beauty and nail salon had several chairs reserved for pedicure patrons. The salon incurred extensive losses and damages after a connecting pipe broke.The cost to replace affected damaged property reached $5,000.

A hair stylist at a popular salon did not remember to disconnect the hair dryer after use. Unfortunately, this resulted in a short circuit that led to property damages. The total repair and replacement costs reached $20,000.

Acquiring a customized business policy will not only give you and your operation the needed protection against risk exposure, it will give the priceless gift of peace of mind.

The beauty business has a unique set of risk exposure. Coming to a an experienced independent agency like PRIME Insurance gives you winning coverage results. Voted A++ by the industry's professionals, PRIME shops its full network of policy providers to get you tailored coverage at competitively lowest quotes.