Business Auto Insurance:  This coverage can provide drivers (qualified staff) and auto(s) with vital protection against injury, loss or damage to vehicles or cargo, plus damage to other property as well as potentially devastating liability costs resulting from an accident involving vehicles and its passengers. Coverage’s include:

Physical Damage Collision: Protects the organization in the event a business vehicle is damaged in an accident, either with another vehicle or any stationary object, such as a utility pole, a brick wall, or a building.

Physical Damage Comprehensive: Protects the organization in the event of damages to a business vehicle which were not caused by collision. Some examples are: vandalism, fire, theft, or hail.

Uninsured or Underinsured Property Damage: Protects the organization for damages to a business auto caused by the negligent acts of a driver who has no insurance or not enough property damage coverage.

Uninsured or Underinsured Liability: Protects the organization in case of bodily injury in an accident caused by a negligent driver with no liability insurance or less liability than the policyholder.

Lease Gap Coverage: Provides the organization with coverage for leased vehicles that are scheduled on the policy. If the leased vehicle is completely destroyed in an accident, this coverage will pay the remaining balance on the lease if it is more than the actual cash value of the leased vehicle.

Is Your Business Vehicle Insured on Your Personal Auto Policy?

If any vehicle is used regularly in the operation of a business whether you are transporting students, picking up school supplies, going to a residence or business for the purpose of selling  a product or providing a service you are driving a commercial vehicle.  It might me a privately owned Lexus, a Dodge Ram pickup, or an Econoline Van, it is a commercial vehicle.  You may have had your "business" vehicle insured on your personal auto policy for years and everything has been just fine, but what do you think would happen if you were involved in an accident while you were hauling 45 sheets of plywood? Once your personal auto insurance company determines that your vehicle was being used for business purposes at the time of the accident, you could have some very serious problems.  It could go as far as having your claim denied,  a standard question on all personal auto insurance applications is - "Do you use this vehicle for business purposes?".

If you find that you are improperly insured call us today for a commercial auto insurance quote.

Commercial Umbrella Insurance:  For added protection against large tort liability, umbrella policy forms are uniform to the primary coverage eliminating potential gaps in coverage.  Umbrella insurance is designed to protect organizations against those multi-million dollar losses no company ever wants to have. Once a school operation is protected by the basic types of insurance coverages (like commercial auto and commercial package policies), organizations should consider an umbrella policy for extended coverage. An umbrella policy is available in increments of $1,000,000. and would provide additional coverage once the limits of the underlying policies have been exhausted.

Employment Practices Liability Insurance (E.P.L.I):  Provides coverage for wrongful termination, including constructive discharge, sexual harassment, coercion, humiliation or discrimination, refusal to employ an applicant, failure to promote, retaliatory acts, demotion, evaluation, reassignment or discipline, mental anguish and emotional distress, merger, acquisitions, downsizing and intentional acts.

Many insurance companies offer Employment Practices Liability Insurance (EPLI) as a stand-alone policy or as part of a Directors & Officers Liability policy.  All employers, large or small can be slapped with huge employee lawsuits, so every organization should consider adding E.P.L.I to their risk management insurance program.

Directors & Officers Insurance:  This insurance coverage provides financial protection for the directors and officers of either a non-profit or for-profit company in the event they are sued in conjunction with the performance of their duties as they relate to the company.  When a board of directors is formed they can be held personally responsible for acts of the company, most directors and officers will demand to be protected rather than put their personal assets at stake to serve as a corporate director or officer, no matter how heartfelt their belief in the organization.

A Non-Profit or For Profit Corporation does not mean that the decisions of your board are immune from public scrutiny.  Shareholders, employees, customers, suppliers, competitors or government agencies may bring an action against a company and its board.  

Typical lawsuits against directors and officers include allegations of: A. Mismanagement of operations or company assets; B. Self-dealing and conflicts of interest; C. Misrepresentation during the sale of company assets; D. Misrepresentation in a private placement prospectus; E. Acts beyond authority granted in by-laws; F. Violation of certain state and federal laws; G. Breach of fiduciary duties

These types of litigation can last for extended periods and becoming a financial burden as well as a continuous drain to a private company’s profit margin.  If a company cannot indemnify its directors, officers or employees, either because of the allegations of a lawsuit or as a result of the company’s insolvency, then this financial burden can become the personal responsibility of the company’s directors, officers or employees.

Flood Insurance:  A standard homeowners policy will not cover damages caused by flooding. You must have flood insurance from an insurer that writes for the National Flood Insurance Program.  Flood policies generally cover damage to real and personal property from flood water. Coverage generally includes clean up, repair of water damaged property including inside walls, and remediation of resulting mildew, mold, and fungus.

In addition to water damage from flood, the FEMA flood policy also covers damage due to "mudflow". However, the policy does not cover landslide damage, and issues can arise regarding the distinctions between the two. Generally "mudflow" is liquid-like flowing mud that inundates the insured home.

Under commercial flood policies, business interruption coverage is usually available to cover lost income in addition to the property damage coverage.

Flood Insurance
Consider the following facts:

• Flood losses are not covered under homeowners’ insurance policies.
• FEMA manages the National Flood Insurance Program, which makes federally-backed flood insurance available in communities that agree to adopt and enforce floodplain management ordinances to reduce future flood damage.
• Flood insurance is available in most communities through insurance agents.
• There is a 30-day waiting period before flood insurance goes into effect, so don't delay.
• Flood insurance is available whether the building is in or out of the identified flood-prone area.

California earthquake insurance:  Commercial property policies exclude coverage for earthquake damage and earthquake sprinkler leakage. If an organization owns property in California, it should consider purchasing this coverage.  After the 1994 Northridge earthquake, California state legislation  created a quasi-public (privately funded, publicly managed) agency called the CEA California Earthquake Authority . Membership in the CEA by insurers is voluntary and member companies satisfy the mandatory offer law by selling the CEA mini policy. Premiums are paid to the insurer, and then pooled in the CEA to cover claims from homeowners with a CEA policy from member insurers.

The state of California specifically states that it does not back up CEA earthquake insurance, in the event that claims from a major earthquake were to drain all CEA funds, nor will it cover claims from non-CEA insurers if they were to become insolvent due to earthquake losses . The law in California requires insurers that sell residential property in the state to offer earthquake coverage to their policyholders. Residential property insurance includes coverage for homeowners, condominium owners, mobile-home owners and renters.

New business moratoriums announced in 2006 continue to remain in place for the following counties as follows:

• Effective 8/15/06 - San Francisco, San Mateo, Alameda, Contra Costa, Marin Monterey, Santa Clara, Santa Cruz and Sonoma counties
• Effective 4/15/06 - Los Angeles County

The current program will remain in effect until 12/31/06 at which time the following changes will be implemented for NEW and RENEWAL business with effective dates of January 1, 2007 or later:

• Program limits $2,500,000 per location and per insured
• Age limitation for wood frame construction: 1970 and newer
• Age limitation for all other construction: 1974 and newer
• Deductible for Tilt-Up: 5%
• Minimum valuation for buildings: $75 per square foot
• New application dated January 1, 2007 (Available on IBA West Website)

The current limits, coverage and deductibles are applicable to policies with effective dates up to and including 12/31/06 as follows:

Perils insured are earth movement, landslide, mudflow and earth sliding if directly caused by earthquake. Submitted on a self-rating application, the program features are:

Limits/Coverage/Deductibles:

• Policy limits to $3 Million for all coverages per location.   Combined limit for multiple policies per insured will be increased to $3.5 million.
• Coverage available for Buildings, Contents, Rental Income and Business/Interruption/Expense.  15% of policy limit may be allocated to Building Ordinance coverage.  Earthquake Sprinkler leakage on Buildings and Rental Income.
• Deductible Application – The deductible percentage times the Total Insurance Values per building per occurrence
• Coinsurance – contents subject to 90% Coinsurance Percentage
• Replacement  Cost Valuation

Underwriting Requirements:

• All Wood Frame construction must be bolted to foundation and built in 1940 or later
• Hollow Concrete Block construction must be reinforced and built in 1974 or later
• Concrete Tilt-up built in 1974 or later, “All Other”  1950 or later
• Tuck-Under, Subterranean or Under-Building Parking must be classified, rated and meet eligibility risk characteristics of HCB Construction Class if less than 6 stories

Eligible Occupancies:

• Commercial Properties; Habitational Structure with 4 units or more
• Habitational Structures with less than 4 units, when insured with other Habitational Structures with 4 units or more at the same site
• State Licensed Residential Care Facilities

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