Our Insurance Blog
- Captive Agents vs Insurance Brokersby towerhillcorp
Captive Agents vs Insurance Brokers
A Compelling Argument For Insurance Brokers
What is an Insurance Broker?
Brokers leverage their expertise to understand their clients’ needs, and help them select the right insurance solutions at the best possible price. Unlike agents, their duty is to act in the buyer’s best interests, rather than the insurance companies’.
Like agents, brokers can operate differently as well. For example, smaller brokers may simply offer a review of the best plans, match you with a solution that best fits your needs – and that’s it. Larger brokers, on the other hand, have the capacity to offer a range of value-added services such as claims assistance and renewal support, often at no extra cost.
Some brokers are also specialists in certain products (e.g. group health insurance), and even offer additional services depending on their area of expertise. HR administrators, in particular, will love a comprehensive insurance broker. From claims analysis, to employee education and orientation, a full-service broker does all the legwork for you, thus saving you time to focus on more worthwhile projects.
More Importantly, brokers are independent of any insurer, and tend to offer a wide range of plans from many different insurers. They will prioritize your interests where there is a conflict with their own interests,
generate impartial recommendations based on your business’ insurance needs, and may even leverage their close partnerships with insurers to negotiate better premiums or specific conditions to be met.
What Are Captive Insurance Agents
A captive agent is an insurance agent who only works for one insurance company. A captive agent is paid by that one company, usually with a combination of salary and commission, plus benefits. They may be a full-time employee or an independent contractor.
Some key features that sets agents apart from brokers include:
An agent is either captive, or independent. Captive agents are those that can only represent one, single insurer, whereas independent agents represent multiple insurers. Agents operate on behalf of insurers, and not the buyer. Their aim is to match you with coverage from the insurers they represent.
Some agents, but not all, can “bind” coverage under certain circumstances. This allows buyers to obtain coverage before the insurance company has finished processing the application and issuing policy documents.
Agents earn a stable commission from the insurers they’re contracted with; sometimes, captive agents are salaried.
American Family Mutual Insurance Company v. Krop
A recent court ruling relating to an insurance coverage spat highlights that there is a stark difference between dealing with a captive insurance agent and with a broker.
In American Family Mutual Insurance Company v. Krop, the defendant customers had changed their insurer to the plaintiff company – the defendant wanted coverage that was equivalent to that provided by its previous insurer. However, the new coverage was narrower, which led to an unexpected denial of the customers’ claim. The new carrier then sued the customers over a declaration that the coverage did not exist.
The defendants argued successfully to the appellate court that that the two-year statute of limitations for its claim that their insurer did not have sufficient coverage should have applied the moment they discovered their injury – around the time the plaintiff carrier denied coverage for the claim.
The Illinois Supreme Court, however, overturned that earlier decision. The court held that the statute of limitations period on the customers’ cause of action against their insurer (and the insurer’s captive agent) for negligent failure to provide insurance began at the time the customers received the policy from the agent.
The Court also added that captive insurance agents, unlike brokers, do not owe their customers a fiduciary duty, but instead owe a duty of ordinary care. Reference: October, 18, 2018 https://courts.illinois.gov/Opinions/SupremeCourt/2018/122556.pdf
When choosing whether to buy insurance through Insurance Brokers or Captive agents, it helps to consider the key advantages of each option. Captive Agents have the ability to “bind” coverage, Expertise in the policies they sell, a direct relationship with insurers and the insurer(s) they represent.
An Insurance Brokers Duty is to to act in their clients’ best interests. They tend to offer additional client support, an expertise in a wide range of policies and insurers and offer impartial advice on matters relating to your insurance needs.
- Mortgage Protection Life Insuranceby towerhillcorp
Mortgage Protection Life Insurance
Mortgage life insurance is a form of insurance specifically designed to protect a repayment mortgage. If the policyholder were to die while the mortgage life insurance was in force, the policy would pay out a capital sum that will be just sufficient to repay the outstanding mortgage.
It comes in several forms, but it typically covers your mortgage if you become disabled due to injury or illness, and it pays off your mortgage when you die. Mortgage Protection Life Insurance programs includes critical illness benefits and disability benefits not available in most Life Insurance Plans. This protection helps you make your Mortgage payments while you recover from your illness or injury! Best of all, It is affordable protection you and your family can count on when you may need it most.In
Fact, Many families are forced to leave their family home due to economic hardship caused by disability, illness or death. Are you prepared for the unexpected? Mortgage Protection Life Insurance could be a great solution for you and your family.
Protecting Your Biggest Asset
Your home is usually the single largest asset that you own. However, what would happen to your home if you were to die prematurely? Who will pay off your mortgage for your family if you are not there? How will your family find the funds to make the monthly mortgage payment if you cannot work due to disability?
What’s Covered Under Mortgage Protection Life Insurance?
Helps pay off the mortgage upon death.
Helps pay the mortgage payment upon disability .
Provide a lump sum of cash if diagnosed with a critical illness.
Your family is the beneficiary , not the bank.
10,15, 20, 25,and 30 year term options available.
Return of Premium Rider guarantees 100% Refund of Premiums if you survive the term! Depending on the carrier.
Mortgage Protection Life Insurance vs Private Mortgage Insurance
What is Private Mortgage Insurance (PMI)
Private Mortgage Insurance (PMI) is an insurance policy that pays off your mortgage when you die. The PMI insurance company will send a check directly to your mortgage company to pay off your mortgage. By law in certain states you’re required to get private mortgage insurance (PMI) if you don’t put down more than 20 percent when you purchase your home. PMI benefit payments are made directly to the mortgage company instead of your family, which benefits the mortgage company more than your family.
Mortgage Protection Life Insurance is most often cheaper compared to purchasing PMI offered by the mortgage companies. There are several benefits for buying term life insurance compared to PMI. You can purchase a large enough term life policy to cover your mortgage, replace your income and provide your family with a tax free cash benefit. You receive a fixed benefit cash payout with a traditional term life policy that you control. You’re better off buying a 20 or 30 year level term life insurance do to the flexible features in most policies today.
Example: If you purchase a 30 year $200,000 term life policy and after 10 ten years you decided to lower the face amount, because you have paid down your loan most companies will allow you to reduce the face amount. You control the policy benefits rather than the PMI mortgage policy that automatically reduces the benefit without lowing the premiums. The term life insurance allows you to name beneficiaries and control the rights of the policy. Your family can decide to use the benefit to pay off the mortgage or continue to make payments. Your family will control the benefits instead of the mortgage company.
Private Mortgage Insurance (PMI)
PMI policies have decreasing benefits, because the payout is generally fixed to the mortgage principal amount. The PMI policy premium remains level for the life of your loan even though the benefit amount is decreasing as you pay down the loan. It’s important fact know that your family will not any control of the money from the PMI policy. PMI is expensive for the amount of coverage and premiums paid. You receive much less coverage with PMI compared to a term life insurance policy. PMI will benefit you if have health conditions that make it impossible to purchase a traditional term life insurance policy.
What is the cost?
The cost of mortgage protection insurance varies from person to person, and as with life insurance, your rate is based on your age and health, as well as the current value of your home, the amount of your regular payment, and the current payoff amount of the mortgage. With policies that make monthly payments in the event of a disability, your cost will vary greatly based upon the industry in which you work.
Shop the Life Insurance Marketplace To Find Your Mortgage Protection Life Insurance Policy
Utilize our state of the art Life Insurance Quote & Apply platform to find your policy today
- What is Group Life Insurance?by towerhillcorp
What is Group Life Insurance?
Group life insurance is a type of life insurance in which a single contract covers an entire group of people. Typically, the policy owner is an employer or an entity such as a labor organization, and the policy covers the employees or members of the group. Group life insurance is often provided as part of a complete employee benefit package. In most cases, the cost of group coverage is far less than what the employees or members would pay for a similar amount of individual protection. So if you are offered group life insurance through your employer or another group, you should usually take it, especially if you have no other life insurance or if your personal coverage is inadequate.
As the policy owner, the employer or other entity keeps the actual insurance policy, known as the master contract. All of those who are covered typically receive a certificate of insurance that serves as proof of insurance but is not actually the insurance policy. As with other types of life insurance, group life insurance allows you to choose your beneficiary.
Term insurance is the most common form of group life insurance. Group term life is typically provided in the form of yearly renewable term insurance. When group term insurance is provided through your employer, the employer usually pays for most (and in some cases all) of the premiums. The amount of your coverage is typically equal to one or two times your annual salary.
Group term coverage remains in force until your employment is terminated or until the specific term of coverage ends. You may have the option of converting your group coverage to an individual policy if you leave your employer. However, most people choose not to do this because these conversion premiums tend to be much higher than premiums for comparable policies available to individuals. Typically, only those who are otherwise non insurable take advantage of this conversion option.
How does Group Life Insurance work?
Group life insurance doesn’t require a medical exam, a definite “pro” for folks in poor health, or who fear doctors. When you get group life insurance through your job, it’s part of your employee benefits package and doesn’t hinge on the state of your health. And if you sign up for group life insurance through a professional association or credit union, you probably won’t need to submit to a medical exam or answer questions about your medical history. The fact that you’re part of a group makes you a desirable customer in the eyes of the insurance company, regardless of the state of your health or lifestyle.
Another advantage of group life insurance is that it comes with low premiums. Because the risk to the insurance company is pooled, the company can charge less for covering each member of the group. (Think of it like buying in bulk.) If your health is only so-so, the lack of a medical exam and the low premiums are the primary benefits of joining a group policy. If you’re the healthiest person in the world (congratulations!) you won’t benefit from group rates in the same way, since your premiums for individual life insurance would be low anyway.
Employer-Provided Group Life Insurance
Some employers provide an additional Group Term Life Insurance and/or Accidental Death & Dismemberment benefit. Please check with your employer or diocese to confirm the specific details of your plan.
Employer-provided Group Life Insurance: Each diocese or institution determines if coverage is available and, if available, the amount of coverage offered. Active clergy who are compensated for a minimum of 20 hours a week may be eligible.
Accidental Death & Dismemberment Insurance: Generally, active clergy who are under the age of 70 and enrolled in Group Term Life Insurance are eligible. The maximum benefit pays up to the value of the full amount of your Group Term Life Insurance benefit.
Supplemental Life Insurance: Supplemental Group Life Insurance is available through Church Life and can be selected only when you are hired and during periodic open enrollments. Please note that you and your dependents can only have one supplemental life policy.
Group Life Insurance vs. Individual Life Insurance
Group life insurance isn’t portable, meaning you leave your policy behind when you change employers. Say you start a job at 40 and you get group life insurance as a benefit. At 50, after encountering some health problems, you leave your job. You might not be able to convert your group life insurance to individual life insurance, or you may be charged hefty fees and premium hikes for doing so. If you can’t convert your policy when you leave your job and your health has declined, you’re in a pickle. You may have a hard time finding an affordable individual policy on the open market, or you may be turned down for insurance altogether.
Another disadvantage of group policies is that group life insurance offers less flexibility than individual life insurance. You won’t have the power to negotiate the terms of your policy when you sign up for group life insurance. For example, if the policy isn’t convertible you probably won’t be able to negotiate changes that would guarantee you the right to extend coverage.
The final disadvantage to group life insurance is that it may not offer as much coverage as you need. If you don’t have any dependents and you have plenty of savings that could be used to cover your final expenses, we’re not talking to you. For you, life insurance is probably a nice-to-have, not a need-to-have. If, on the other hand, you have dependents, a mortgage and a high income to replace, you might need a higher-value policy than your group life insurance offers.
What should you do if you find yourself with a group life insurance policy that doesn’t give you as much coverage as you need? Well, some employee policies give you the option of paying group rates for a top-up on the free life insurance you get as part of your benefits package.
For those who don’t have this option, they will need to buy individual life insurance to supplement the coverage they get through work. Individual life insurance policies are portable as you move from job to job, and they come with the option to negotiate riders and terms. You can customize your individual life insurance policy in a way that’s just not possible with group life insurance.
It’s a good idea to say “yes” to a free or a cost effective policy that you get through work. You may need to top up that coverage, though, depending on how much life insurance you need. Your first step should be to review the details of your group policy and see how it stacks up against your life insurance needs. The right life insurance protects your estate and your dependents, so it’s worth taking the time to make sure you have enough coverage.
Contact Us To Explore Your Small or Large Group Life Options Through Our Partner MetLife
- What is Cyber Liability Insurance?by towerhillcorp
What is Cyber Liability Insurance?
Cyber liability insurance is when a data breach or cyber attack affects your tech company or your clients, cyber liability insurance can pay for legal expenses, credit monitoring services, and other recovery costs.
Does you company need Cyber Liability Insurance?
If hackers steal sensitive information or hold data or services hostage, your business pays the price. In fact, the average cost of a small business data breach is $86,500, according to the internet security firm Kaspersky Labs.
Some small tech companies assume hackers target only large companies. But nearly a third of all cyber attacks hit small and medium-sized businesses. These attacks are often successful, since smaller tech companies are less likely to have a strong defense against hackers.
Companies that purchase a cyber liability policy often handle:
Credit card or bank account information
Social Security or driver’s license numbers
Customer names, email addresses, phone numbers, and addresses
Cyber security for other businesses
First-party versus third-party Cyber Liability Insurance
You can purchase two types of cyber liability coverage: first-party and third-party.
First-party coverage helps your business recover immediately following a data breach or cyber attack at your company.
Third-party cyber liability coverage offers protection if a business partner or client sues you for failing to prevent a data breach at their business.
Many cyber liability insurance policies include both types of coverage. Read more about first-party vs. third-party cyber coverage.
First-party response coverage can cover the cost of:
Credit monitoring services
Anti-fraud protection for customers
Security incident investigations
Insider data breaches
Cyber extortion / ransomware costs
Third-party defense and liability coverage can cover the cost of:
Attorneys to defend your company
Settlement costs (to resolve a lawsuit amicably)
Court-ordered damages (if you’re found liable)
Miscellaneous court costs
Cyber Liability Insurance Costs
Companies pay about $145 per month for cyber liability insurance. The cost of insurance varies based on:
Number of employees
Volume and type of data handled
Policy coverage limits
- Final Expense Life Insuranceby towerhillcorp
What Is Final Expense Life Insurance?
We should start with a final expense life insurance definition. Only then will we have an idea it’s the type of policy you’re looking for or if another type is better. Final Expense life insurance is a kind permanent life insurance policy that used to pay for your funeral and burial expenses. In other words, it’s life insurance for final expenses. Final expenses may also include medical costs or any other expenses that you need covered.
Final Expense Life Insurance For Seniors
Senior are often looking at final expense life insurance because it provides them a smaller life insurance policy at an affordable price. It’s designed to cover any funeral costs and final expenses. Final expense isn’t a fit for younger shoppers who are looking for a policy to cover long term goals such as income replacement and mortgage protection.
Seniors want a simple life insurance policy to cover their funeral so the burden of burial costs aren’t passed to a grieving family member. As you may know, some funerals can cost around $10,000. Anyone who has lost a loved one knows that paying for a funeral is the last thing you want to think about when you’re grieving.
Your children or spouse will be going through a very stressful time when you die. A final expense policy is a great way to protect your family and help with the cost of your funeral. Final expense assists seniors looking to help relieve their family of the financial burdens of funeral costs.
What Are The Costs Of Final Expense Insurance?
The average costs of final expense life insurance policies is about $55 per month for the most common benefit amount of $10,000. Final expense premiums can be lower or higher depending qualification criteria such as your health, age, and gender. The amount of coverage you buy will also factor in the cost of your policy. Final expense face amounts typically range from $5,000 to $25,000.
For the average person, their out-of-pocket end of life costs averages to $11,618 in the last year of life. Make sure to calculate what you final expenses are to see how much coverage you’ll need. Factor in the cost of the funeral, medical bills, and any miscellaneous debts.
How Do You Apply For Final Expense Insurance?
The application process for final expense life insurance is simple and quick. Traditional life insurance policies typically have a very long application and a medical exam. Final expense is a No Medical Exam life insurance policy where you simply answer some qualifying questions before getting approved.
Each life insurance company is unique. Some companies have more questions than others. Some qualifying questions are more strict and some are not. Your coverage opportunities are based on these questions, not on a medical exam. What if you are unable to pass any of the qualifying questions? You can purchase a Guaranteed Issue Whole life insurance policy with AIG.
How Life Insurance Covers Final Expenses
Nobody enjoys planning for their death, but everyone knows it’s inevitable. As uncomfortable as this is, it’s even worse if you don’t do it. When final expenses are not planned for properly it can create some real problems. Here are the ways that final expense life insurance can help you pay and avoid these problems.
Funeral Costs Are Not Cheap
The cost of a funeral these days isn’t cheap. As with most things these days, the prices are increasing. Will you be purchasing a headstone, casket, plot, or cremation? Will you have a service? There will be a fee for the ceremony. These are just some of the things that need to be paid for when you die. We ran the numbers and have provided you a complete expense report in the table below.
Burial Costs Is Just One Final Expenses
Your burial is the most expensive final expense, but there are many more that you may not even be aware of. You’ll need to think about any outstanding debts such as credit cards, medical bills, and loans need to be paid. Do you have any household debts? Take a moment to calculate all of your current and future debts that your family will be responsible for if you don’t have coverage.
Final Expenses May Impact Your Estate
Have you made a will? Do you have an estate plan? Do you know that they can be affected by your final expenses? Depending on your specific situation, you may have to pay estate taxes when you die. Your final expense life insurance policy can help your family pay for these unforeseen expenses.
Use Final Expense Funds Before You Die
Your final expense policy may build enough cash value that you can use to pay for medical costs or any other emergency expenses before you die. Medical bills often add up quickly in many end of life situations. Some final expense policies can grow cash value over time that you can access for these expenses.
Our current healthcare system provides great care overall, but at a cost. Prescription costs, insurance, and medical procedures are not cheap. Even if you’re covered by Medicare, you may still be responsible for some considerable costs. Depending on your insurance, you may have accumulated a significant amount of medical debt from medications, nursing, hospital fees, co-payments, co-insurance, facility fees any more.
Did you know that over 70% of Americans die with financial debt? That amount of debt is pretty alarming as the average balance is just over $60,000 which includes mortgage debt. These debts do not simply vanish when you die. Your estate is responsible for paying off debts in the majority of cases. This occurs prior to any assets being allocated to your loved ones.
Final Expense Cost Report
Let’s look at the average costs that you may be facing when planning for final expenses. It’ important to calculate all of the fees and costs below as well as any household debts that you have. You’ll quickly see that a final expense policy is a good way to make sure your family isn’t stuck with this financial burden.
Casket – $500 to $11,000
Vault – $500 to $14,000
Urn – $100 – $3,000
Flowers – $50 – $2,000
Grave Plot – $500 to $11,000
Grave Monument – $500 to $11,000
Basic Cremation Package – $500 – $3,500
Basic Funeral Services Fee – $1,000 to $5,000
Funeral Facilities Fee – $500 to $2,000
Embalming – $700
Body Preparation – $200
Service Vehicle(s)– $100 to $500
Hearse – $250
Transportation of the Deceased – $200 to $500
Memorial Service – $150
Total Expenses – National Average is $11,618
What’s So Great About Final Expense Insurance?
Every type of life insurance has its pros and cons. Final expense life insurance is a good choice if you’re looking for a relatively affordable premium. This is especially true if you’re on a budget or fixed income. Final expense can be purchase easily online and over the phone. It doesn’t require a medical exam and it a much simpler application process compared to traditional term or whole life policies.
What’s So Bad About Final Expense Insurance?
Unfortunately there are some drawbacks to final expense. When comparing final expense policies to other types of life insurance, final expense provides smaller face amounts. The premium costs per $1,000 of coverage is also more expensive compared to other policy types. For example, if you compared the premiums of a $25,000 final expense policy to a 10-year term life policy, the final expense policy would typically be more expensive.
There are so many final expense policies available to shoppers. Which policy is the best one for your situation? Which final expense policy will provide the most protection for your loved ones? Which company pays claims fast and without any hassles? These are just a few of the questions to think about before you apply for a final expense policy. Find your policy today with our Quote & Apply Life Insurance quoting technology today or contact us to speak with a Broker.
Looking for a Guaranteed Issued Whole Life Policy? Contact Us for a quote with AIG.
- How to Find a Dental & Vision Care Plan When You Have Medicareby towerhillcorp
How to Find a Dental & Vision Plan When You Have Medicare
Original Medicare (Parts A and B) helps pay for “medically necessary” care. This means care that’s required to diagnose or treat an illness or condition.
Dental and vision care are not seen as medically necessary. Original Medicare doesn’t cover dental exams, eye exams, eyeglasses or other related services.
You have options if you have Medicare and want some help with the cost of dental and vision care.
Many Medicare Advantage Plans Cover Dental and Vision Care
Medicare Advantage (Part C) plans offer the same coverage as Original Medicare (Parts A and B) plus more. Many plans include coverage for dental and vision care. Most also include prescription drug coverage.
Medicare Advantage plans are offered by private insurance companies. The plans available to you depend on where you live. Plan coverage and costs may vary from plan to plan, so it could pay to shop around. Some plans may charge a premium in addition to the Part B premium you pay to Medicare.
Medicare Supplement Insurance Plans May Offer Programs to Help Members with Dental and Vision Care Costs
Medicare supplement insurance (Medigap) helps pay some costs that Original Medicare doesn’t cover. These costs may include deductibles, co-pays and coinsurance for doctor visits, hospitalization or other medical services. Plans are offered by private insurance companies.
Some companies offer their Medicare supplement insurance plan members special coverage options for dental and vision care. Some may also offer insured members a discount program to help save money on dental and vision care. These offerings are not included in Medicare supplement insurance plan benefits. Rather, they are additional options that may be offered to insured members by some insurance companies.
The Medicare supplement insurance plans available to you depend on where you live. Plans are standardized by the federal government in terms of coverage, but costs may vary. Also, plan by each state are standardized differently .
You can get plan details from the insurance companies offering plans your area or by searching with your zip code on the Medigap Policy Search. You may also contact your State Health Insurance Assistance Program for help.
Find Plans in Your Area
The online Plan Finder tool at Medicare.gov can help you search for Medicare Advantage and Medicare supplement insurance plans. Just answer a few questions about your location and health status. The tool will generate a list of plans offered where you live.
You may choose plans from the list to learn about and compare. Estimated annual costs and plan ratings for each plan may help you find a plan that may help you meet your needs.
The insurance companies offering plans in your area may be able to provide more information and answer your questions. Just contact them directly.
Regular dental and vision exams are important for maintaining overall health. It’s important to research your options and to find a plan that provides the services you want and need. Ameritas offers a range of Dental & Vision plans that are ideal for seniors including no wait times for major services and dentures. Click the link below to find your plan.
- What’s Medicare Supplement Insurance (Medigap)?by towerhillcorp
Medicare Supplement Insurance(Medigap)
Medigap is Medicare Supplement Insurance that helps fill “gaps” in Original Medicare and is sold by private companies. Original Medicare pays for much, but not all, of the cost for covered health care services and supplies. A Medicare Supplement Insurance (Medigap) policy can help pay some of the remaining health care costs, like Co-payments, Coinsurance, Deductibles.
Some Medigap policies also cover services that Original Medicare doesn’t cover, like medical care when you travel outside the U.S. If you have Original Medicare and you buy a Medigap policy, here’s what happens:
Medicare will pay its share of the Medicare-approved amount for covered health care costs.
Then, your Medigap policy pays its share. 8 things to know about Medigap policies: You must have Medicare Part A and Part B. A Medigap policy is different from a Medicare Advantage Plan. Those plans are ways to get Medicare benefits, while a Medigap policy only supplements your Original Medicare benefits.
You pay the private insurance company a monthly premium for your Medigap policy. You pay this monthly premium in addition to the monthly Part B premium that you pay to Medicare.
A Medigap policy only covers one person. If you and your spouse both want Medigap coverage, you’ll each have to buy separate policies.
You can buy a Medigap policy from any insurance company that’s licensed in your state to sell one.
Any standardized Medigap policy is guaranteed renewable even if you have health problems. This means the insurance company can’t cancel your Medigap policy as long as you pay the premium.
Some Medigap policies sold in the past cover prescription drugs. But, Medigap policies sold after January 1, 2006 aren’t allowed to include prescription drug coverage. If you want prescription drug coverage, you can join a Medicare Prescription Drug Plan (Part D).
It’s illegal for anyone to sell you a Medigap policy if you have a Medicare Advantage Plan, unless you’re switching back to Original Medicare.
Medigap policies don’t cover everything
Medigap policies generally don’t cover long-term care, vision or dental care, hearing aids, eyeglasses, or private-duty nursing.
Insurance Plans that Aren’t Medigap
Some types of insurance aren’t Medigap plans, they include:
Medicare Advantage Plans (like an HMO, PPO, or Private Fee-for-Service Plan) Medicare Prescription Drug Plans, Medicaid, Employer or union plans, including the Federal Employees Health Benefits Program (FEHBP),
TRICARE, Veterans’ benefits, Long-term care insurance policies and Indian Health Service, Tribal, and Urban Indian Health plans.
Dropping your entire Medigap policy (not just the drug coverage)
You may want a completely different Medigap policy (not just your old Medigap policy without the prescription drug coverage). Or, you might decide to switch to a Medicare Advantage Plan that offers prescription drug coverage.
If you decide to drop your entire Medigap policy, you need to be careful about the timing. When you join a new Medicare drug plan, you pay a late enrollment penalty if one of these applies:
You drop your entire Medigap policy and the drug coverage wasn’t creditable prescription drug coverage.
You go 63 days or more in a row before your new Medicare drug coverage begins
Find a Medigap policy today:
- Business Owners Policy (BOP) Insuranceby towerhillcorp
What Is a Business Owners Policy?
Coverwallet | 08/12/2020 | Business Owners Policy
Get business insurance with optimized coverage to meet your exact needs through our Coverwallet Quoting Platform.
A Business Owners Policy packages together several policies to offer small and mid-sized business owners one convenient policy to protect themselves. It simplifies coverage needs by combining two policies that most businesses need – property and liability – while offering savings over purchasing each policy separately. Business Interruption Insurance is also frequently included in a BOP.
Businesses can tailor a BOP to meet the unique needs of their industry or situation by adding additional optional coverages. One of the most popular optional coverages to add to a BOP is data breach coverage. If your business stores or handles private customer information, you can add coverage to protect yourself in case of a data breach.
A Business Owners Policy typically includes three types of insurance: Property Insurance, Business Interruption Insurance and liability protection. There are additional, optional coverages you can add to tailor the policy to fit your business’s specific needs, such as data breach coverage.
Property Insurance insures all types of physical property, from a building you may own or lease to office equipment and product inventory.
Business Interruption Insurance covers the loss of income resulting from a disaster (like a fire) that disrupts the operations of your business. This type of insurance will come in handy when you have the added expense of operating out of a temporary location after a catastrophe, or when you need to continue to meet financial obligations (like rent or payroll) when you had to suspend operations for a covered reason.
Liability Insurance protects your business from lawsuits as a result of things that you or your employees do (or fail to do) that cause bodily injury or property damage to others in the course of business. That could include defective products, mistakes made in servicing a customer and faulty installations. Coverage should also extend to the cost of your defense, since a business can be sued even if it did nothing wrong, and defense can be expensive.
Data breach coverage is frequently added to a Business Owners Policy, and will help you remedy data breach situations as quickly as possibly. This addition would cover the cost of things like notification of impacted individuals, the hiring of a public relations/crisis communications consultant or credit monitoring services.
Data breach coverage is broad, and can even cover you if private data is stored internationally. In addition to the coverage mentioned above, this addition to your BOP could cover defense and settlement costs from resulting lawsuits, replacement of lost income due to a covered data breach, and extortion expenses or ransom payments from attackers. A good policy will also protect your business from data breaches that occurred prior to the policy effective date.
Another additional optional coverage many business owners choose to add to their BOP is Professional Liability/Errors and Omissions Insurance. This type of insurance is important if you provide services for a fee to customers, as they can hold you liable for damages that they believe are the result of an error (or omission) on your part. Even if you’ve done nothing wrong, your business can still be sued by a customer claiming a negligent act. Professional Liability Insurance will cover defense costs in this case.
Who Is Covered by Business Owners Policy Insurance?
Business and Employees
Your business and all employees will be covered for claims that arise claiming bodily injury or property damage to a third party caused by the business. Additionally, your business property will be covered, so you can replace it should a covered event happen.
Parties to a Contract
If you enter into a contract for work and a party asks to be listed as additional insured on your policy you can do that here, that way if a claim arises out of your work, they will come to your policy first.
If you sell products or rent a piece of equipment, it is likely that the supplier will ask for you to indemnify them if a claim results with that product or the equipment is damaged.
Do I Need a Business Owners Policy?
Most small business owners should purchase a BOP because it’s the easiest and most affordable way to achieve broad coverage.
A BOP comes in handy if:
Your business has a physical location, like a store, apartment building or an office. If your business is located outside of your home (or even, in some cases, if it is home-based), you likely should consider a BOP.
You have assets that could be damaged or stolen. That includes furniture, cash, product inventory and office equipment as well as digital assets, like customer data.
Your business it at risk for lawsuits. If customers visit your place of work, for example, they could become injured while on the premises and sue you.
You have less than 100 employees and $5 million in sales.
Many small businesses can benefit from having a Business Owners Policy in place to protect themselves from unexpected financial losses that aren’t covered by General Liability Insurance. The types of businesses that frequently purchase Business Owners Policies include: Manufacturers, Offices, Religious organizations, Buildings, Consumer services, Apartment, buildings, Restaurants, Technology consultants and solutions providers
Wholesalers and Retail stores.
However, not every business is eligible for a BOP. Eligibility requirements vary among insurance providers. Here’s a general overview of what is considered when determining eligibility:
Certain class of business (eligible classes includes small restaurants, stores, office- or service-based businesses, wholesale distributors, apartments and independent contractors).
Where you conduct the majority of business operations (most policies require your business to complete most of its business on the premises)
The size of your business’s primary location
How Much Does a Business Owners Policy Cost?
Purchasing a policy bundle is typically more affordable than purchasing General Liability and Property Insurance separately. Most providers will offer a discount of 15 to 20 percent.
The premium for a BOP will be determined based on a number of factors, including your business’s location, risk factors, number of employees and size. Premiums can range anywhere from $500 to $15,000.
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