We understand that insurance can sometimes be confusing. That’s why we have created this section, where we answer some of the insurance questions we field most often. Feel free to browse through the list, or send your own questions along. Our team is always glad to help!
Workers’ compensation insurance is a type of insurance that provides benefits to employees who suffer work-related injuries or illnesses.
This insurance is typically mandated by state law, and it is designed to protect both employers and employees. It provides benefits such as medical treatment, wage replacement, and rehabilitation services to employees who are injured or become ill due to their job.
In exchange for this protection, employees give up their right to sue their employer for certain types of claims.
Simply put, EPLI is a type of liability insurance that protects business owners against claims of wrongful employment practices such as discrimination, harassment, retaliation, wrongful termination, wrongful discipline, and negligent evaluation, among others.
EPLI usually covers the costs of legal fees, settlements, and judgments for lawsuits filed against your business by employees or former employees.
Commercial auto insurance is a type of insurance that provides coverage for vehicles that are used for business purposes. This type of insurance is important for organizations that use vehicles such as trucks, vans, and cars in the course of their operations.
Commercial auto insurance provides coverage for damages or injuries caused by the use of these vehicles, including accidents, theft, and vandalism. It may also provide coverage for liability if someone is injured or their property is damaged as a result of the business’s use of the vehicle.
While personal auto insurance protects the vehicles owned and used by individuals, commercial auto insurance is coverage designed to protect businesses whose employees use vehicles for business purposes.
Another key difference is that commercial auto coverage is different from personal car insurance because it covers more risks and liabilities that come with commercial use.
No. In general, personal car insurance policies do not cover business use of your vehicle. Most personal car insurance policies are designed to cover your personal use of your vehicle, such as commuting to and from work, running errands, or taking a road trip with family or friends.
If you use your car for business purposes, such as delivering goods or transporting clients, you may need to purchase commercial car insurance.
The cost of auto insurance depends on several factors, such as the type of vehicle and the area where the vehicles are driven.
However, commercial auto insurance costs more than personal auto insurance because it offers protection against a wider variety of risks. Additionally, commercial vehicles are typically driven more frequently and for longer distances, which increases the risk of accidents.
There’s an additional factor why you usually pay more for commercial auto insurance: Commercial vehicles may be used to transport goods or equipment that may be valuable and require additional coverage.
Building and Business Property Insurance is a type of insurance policy that provides coverage for physical damage to a business owner’s property, including the building and its contents.
Building and Business Property Insurance typically covers damage caused by a variety of events, such as fire, lightning, windstorm, hail, theft, and vandalism. In addition to the building itself, the policy may cover business equipment, furniture, inventory, and other property located on the premises.
Also known as business interruption insurance, loss of income insurance, is a type of insurance that provides coverage for the income loss a business may experience as a consequence of a covered event, such as a natural disaster, fire, or other unexpected event that disrupts business operations.
This is a great way to help businesses recover lost income and pay expenses during a period of downtime, allowing them to continue paying bills and operating expenses such as rent, payroll, and utilities.
Cyber liability insurance, also known as cyber security insurance, is a type of insurance that shields your organization from the risks associated with using technology to conduct business, especially data breaches and hacking attacks.
Since cybercriminals refine their tactics constantly, cyber liability insurance is more important than ever. For many businesses, being attacked is just a matter of time, and the costs associated with data breaches continue to climb.
Life insurance is a type of coverage designed to financially protect your family should you pass away.
Essentially, the policyholder pays a monthly or annual fee in exchange for the promise of an insurance provider to pay a sum of money in the event of their death. Life insurance is a crucial tool for financial planning that helps ensure stability and security for those left behind, allowing them to cover expenses such as debts, mortgages, college education costs and more.
“Life insurance” is a catch-all term to refer to different types of insurance. There are four basic types of life insurance, according to the Insurance Information Institute:
Term life. This is the simplest form of life insurance. It pays only if death occurs within the term of the policy, which typically ranges from one to 30 years
Whole life. In a traditional whole life policy, the death benefit and the premium are designed to stay the same throughout the life of the policy, even as the person ages.
Universal life. Here traditional life insurance is bundled with a savings vehicle known as cash value. After the policy accumulates cash value, the policyholder has the option to reduce their premium payments.
Variable life. Variable life policies combine the protection of life insurance with a savings account that can be invested in stocks or bonds.
Homeowners insurance is a type of insurance policy that provides financial protection to homeowners in the event of damage to their home or personal belongings due to unexpected events like theft, fire, or natural disasters.
Homeowners insurance typically covers the physical structure of the home, personal property within the home, and liability for any injuries or damages that occur on the property.
Renters insurance is a type of insurance policy that provides financial protection to renters in the event of damage to their personal property or liability for injuries or damages that occur in their rented home or apartment. Renters insurance typically covers personal belongings, such as furniture, electronics, and clothing, in the event of damage or theft.
In addition to providing coverage for personal property, renters insurance can also provide liability coverage for accidents that occur in a rented space. For example, if a guest is injured in an apartment you rent, renters insurance can help cover the medical expenses and legal fees associated with the incident.
Umbrella insurance is a type of liability insurance that provides additional coverage above and beyond the limits of other existing insurance policies.
For example, if an individual is involved in a car accident and the damages and medical expenses exceed the limits of their auto insurance policy, umbrella insurance can kick in to provide additional coverage to help pay for the remaining expenses.