• Why do I need certificates of insurance from sub-contractors?

    An audit may require you to show proof that sub-contractors had their own insurance coverage. The sub-contractors’ certificates of insurance will prevent you from being charged for their exposure.

    I am a business owner, do I need to buy Workers’ Compensation coverage in New Hampshire?

    The State of New Hampshire does not require that you buy insurance on yourself as the owner of the business. If you have employees, you do need to provide Workers’ Compensation protection for them. Contact us for more details.

    What is General Liability?

    General Liability provides coverage if you are liable for damages to other individuals arising from your premises and general operations, ongoing and even after completion.

    What does Products/Completed Operations mean?

    Products/Completed Operations refers to the liability coverage for damages caused by your operation or products after the point at which nyou no longer have control of them.

    What is Business Interruption/Extra Expense coverage?

    Business Interruption/Extra Expense coverage provides coverage for income loss and extra expense of establishing a temporary site, less any discontinued expenses during the period of time to complete the repairs due to a compensable loss.  There are usually policy limitations and specific time frames for the restoration or relocation
    to be completed.

    What is the difference between “Named Insured”, “First Named Insured”, and “Additional Insured?”

    Named Insured are those listed by name in the relevant block of the policy’s declaration page. Although the named insured is commonly one person, partnership, corporation or other entity with insurable interests, multiple named insured may be included.

    First Named Insured is the first “named insured” listed on the policy declarations (front page of the policy). This insured acts as the legal agent for all named insured in initiating cancellation, requesting policy changes or accepting any return premiums. The first named insured may also be responsible for payment of the premiums.

    Additional Insured is an entity to which a policy’s coverage is extended. An additional insured must be added to the policy prior to a claim being paid. There must be a tied to relationship between the additional insured and named insured. Being an additional insured on another’s policy does not eliminate the need for someone to have his/her own Commercial General Liability policy.

    What is fire legal coverage?

    Fire legal coverage provides coverage to for you if you rent a business space and are held responsible for fire damages to that rented space. It does not apply to all business risks.

    Are there disasters my property insurance won’t cover?

    Your policy will list disasters that are specifically “excluded”. Even though “all risk” property insurance contracts do extend to cover a variety of disasters, there are standard exclusions where, in some cases, coverage is simply not available. For example, if you think in terms of natural disasters that may occur,like flood and earthquake, there are standard exclusions regarding these perils on most property policies. There are ways to purchase this coverage, however.

    More recently, the Federal Government passed legislation involving loss due to terrorism. Terrorism is now excluded from most commercial policies, but again, in some cases this coverage may be bought back for an additional premium. Another more recent exclusion is damage or injury resulting from mold and fungi.

    As always, our recommendation is to discuss specifics with your agent, so that your needs may be properly addressed.

    How can I save money on my business insurance?

    Work closely with your insurance professional. As your Trusted Advisor, we can work with you to make recommendations based upon your specific needs. We can make policy adjustments, like choosing higher deductibles, or placing your coverage on a package policy, as well as work with you on ways to prevent loss.

    Is my home-based business covered by my homeowners policy?

    Homeowners’ insurance policies offer limited or no protection for your business while it is being operated from your home. They were never intended to cover business exposures; therefore, office equipment in your home is limited and even more so when you take it away from your home. From a liability perspective, your homeowner policy provides no coverage for liability on your home-based business. On top of this, operating a business in your home may make portions of your homeowners’ policy coverage null and void. (For example, coverage on a detached structure that has a business office in it.) You need to contact your insurance professional to discuss the best way to cover your home based business, either by endorsing your homeowners policy to properly cover your exposure, or by purchasing a separate business owners policy.  Something to keep in mind if that hobby has now turned into a “business pursuit.”

    What is coinsurance?

    Coinsurance is a contractual requirement that the insured carry agreed upon insurance-to-value, as specified by a percentage, which can range from 80%, 90% or even 100%. If, at the time of loss, the limit of insurance is less than the value of the property times the coinsurance percentage, the insured will become a “co-insurer,” along with the insurance company, when a loss occurs. The purpose of coinsurance is not to punish an insured for carrying inadequate insurance-to-value, but rather to provide a financial incentive  that encourages the insured to carry adequate limits.