Posts made in July, 2017

3 Essential Steps to Protecting Your Business from Extreme Weather

Posted by on Jul 24, 2017 in Business Insurance | Comments Off on 3 Essential Steps to Protecting Your Business from Extreme Weather

3 Essential Steps to Protecting Your Business from Extreme Weather

In June, severe weather cost the U.S. economy over $3 billion. Insurance companies covered at least $2 billion of that damage. To help compensate for the costs of increasingly extreme weather, many insurance providers have begun raising their premiums and deductibles, making it more difficult for business owners in areas prone to harsh weather conditions to obtain the severe weather coverage they need. In fact, 40% of businesses never reopen after sustaining severe damage from a natural disaster. Here are the three most important steps to protecting your business — and your wallet — against severe weather damage: Find the right policy for your business. It is bad enough to get trapped in a severe storm — and even worse, also getting trapped in an ill-fitting insurance policy. Not all policies offer the same coverage. A typical commercial property policy will not cover damage from floods, hurricanes, or earthquakes. You may need to request additional “rider” policies to get the coverage you need. While this added coverage could increase overall insurance plan costs, you can help keep your premium low by bundling multiple policies with one provider and taking steps to prevent storm-related damage to your property. Protect your property to keep your premium low. Insurance companies often reward clients for taking measures to protect their properties against storm damage. For example, when property owners remove vegetation and other kindling, some insurers offer discounts for adding these buffers against fire around properties. If you live in an area with frequent high wind storms, wind-resistant doors and stormproof windows could help protect your business while also decreasing your premium. Another good reason to take steps to protect your property: Not all insurance policies cover what is inside your business. Check with your provider to ensure your policy covers the building frame and your property inside. Understand your policy’s replacement cost versus actual cash value coverage. Most commercial property insurance plans will provide replacement cost coverage or cash value coverage. While both of these features are designed to reimburse you for damage to your business and belongings housed there, they do not offer the same coverage level.Replacement cost coverage compensates you for the cost to repair or rebuild your property based on construction costs. Since replacement cost is not based on the market value of your property, it will not account for the value of your land.Actual cash value coverage will also pay to help you repair or rebuild your property, but under this type of coverage, insurers deduct the depreciation cost from the value you receive. If the depreciation level is high and you only have actual cash value coverage, it may cost more to rebuild your business than what your insurer is willing to pay.Talk with your insurance agent about whether your policy provides replacement cost coverage or actual cash coverage to determine which is more appropriate for your business. Protect yourself today from whatever tomorrow may bring The trick to protecting your business from severe weather is to take steps before a storm hits. Act now because you cannot purchase insurance after your property has already been damaged. Contact a Concklin Insurance expert today to better understand your policies. We’ll help you ensure you have the insurance coverage you need so you can hope for the best and be well-prepared for the...

Read More

How Is Legal Marijuana Impacting the Insurance Industry?

Posted by on Jul 20, 2017 in Business Insurance | Comments Off on How Is Legal Marijuana Impacting the Insurance Industry?

How Is Legal Marijuana Impacting the Insurance Industry?

Marijuana laws are rapidly changing how cannabis is regulated, and one in five Americans now lives in an area where recreational smoking is legal. This change is making new medical treatments easier to access and transforming how people perceive cannabis and its users. It is also impacting those in the insurance industry, as creating marijuana-related policies is uncharted territory for many. Cannabis industry professionals need insurance The cannabis industry is rapidly growing, and those in the field need insurance adapted to the specific needs of growers, retailers, and lab researchers. These issues include an increased risk of theft and vandalism as well as the danger of electrical fires caused by growing bulbs. Business owners need to look for insurance providers whose policies specifically address marijuana cultivation or distribution and who are familiar with the specific needs of those in the industry. Legal marijuana-based businesses should prepare for the possibility that some companies may refuse to cover them or that their current insurance providers may suddenly drop them. Cannabis use on business premises Because cannabis is illegal under federal law but legal in several states, users can easily find themselves in gray areas. Obviously, using cannabis in a state where this drug is illegal can void some insurance claims, considering some policies have clauses excluding illegal activities. Owners of establishments where patrons can consume cannabis should also take heed. Because most business liability insurance policies do not explicitly mention marijuana use on business premises, it’s important cafe, bar, and other business owners review and upgrade their policies if need be to ensure proper coverage. Is legal marijuana making auto insurance more expensive? In Colorado, Oregon, and Washington, vehicle collision incidents have increased 3% more than states where legal recreational marijuana use is illegal. Still, there is no formal evidence linking the two, and it is difficult to prove whether cannabis was involved in a collision since a user can test positive for use long after smoking. Drivers should be concerned about their personal rates going up after getting into crashes or being caught driving while high, which can lead to DUI charges. Even though cannabis is legal in several states, many auto insurance providers consider driving after consuming marijuana to be an unsafe habit and, as such, they may cancel offenders’ policies. The legal cannabis industry is worth $7.2 billion and is likely to grow at an annual rate of 17%. Until the insurance industry catches up with the unique needs this industry and its changing regulations, business owners might find it difficult to purchase insurance. Contact Concklin Insurance experts today to make sure your business is properly insured, whether you are in the cannabis industry or own a business where patrons are legally allowed to...

Read More