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What Flood Insurance Doesn’t Cover

What Flood Insurance Doesn’t Cover

As most everyone knows, flood insurance is not covered by the typical homeowners or business insurance property policy. The solution for getting flood insurance is usually to obtain a policy through the National Flood Insurance Program (NFIP). NFIP attempted to fill a significant gap in coverage for property owners when property insurance carriers began to exclude flood coverage. Unfortunately, NFIP doesn’t cover everything. It Doesn’t Cover All Flooding NFIP has a specific defintion of a flood. It is as follows: A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (one of which is your property) from: a. Overflow of inland or tidal waters b. Unusual and rapid accumulation or runoff of surface waters from any source c. Mudflow. Per this definition, if your bathtub or toilet overflows and makes a mess of your house, there is no coverage under your flood insurance policy. If your washing machine floods the garage while you’re out running errands there is no coverage. This type of water damage may be covered under your homeowners policy, but it depends on the type of damage and how it occurred. Talk to your broker about what types of water damage may be covered by your policy. It Doesn’t Cover Everything You Own The NFIP policies do limit the amount of coverage you can purchase for your home or business. These limits are as follows: TypeBuilding LimitContents LimitOne to Four Family Residential$250,000$100,000Other Residential (Non-Condo)$500,000$100,000Non-Residential Business$500,000$500,000 It is important to note that if the replacement cost of the structure is less...
Five Insurance Basics for Businesses

Five Insurance Basics for Businesses

Whether you are starting a new business, or your company is well-established, protecting that business should be one of your main concerns. Locked doors, security personnel and a well-padded bank account are all nice things to have, but they can only do so much. Business insurance can be a hassle, but at Hayes Brokers we like to do our best to take the sting out of it. Here are the insurance basics for businesses, whether new or old. 1. General Liability A general liability policy should be at the top of the insurance list for any business owner. This policy can cover the business premises, the business operations off premises, and a host of other issues that may crop up related to advertising injury, products and completed operations and more. General liability insurance can cover both personal injury to customers and property damage to their property. Some might even call this policy “prepaid legal” since it will provide legal representation in the event of a claim or lawsuit related to the business operations. 2. Property Insurance Whether you own a building or just the contents, property insurance is a must. Property insurance is versatile enough to cover not only your structure and your company contents, but also business income or business interruption coverage in the event of a loss that leaves your business unable to operate for a period of time. There are many options available with property policies, such as equipment breakdown (boiler & machinery) coverage, ordinance or law, sinkhole collapse and more. Talk to your broker to find out which options are right for your business. 3....
Do You Need Railroad Protective Liability?

Do You Need Railroad Protective Liability?

In most cases, when a business purchases insurance, the coverage protects that business. If coverage extends to another party, it is often done by endorsement, such as an additional insured form. There is at least one case where this isn’t true: Railroad Protective Liability (RRPL). As the name states, these policies are related to railroads. Coverage is purchased by a contractor but the coverage is for the railroad. What Is Railroad Protective Liability? Railroad Protective Liability insurance is coverage that was designed by railroads and the insurance industry. It protects railroads from liability they incur due to the work of contractors on or near a railroad line or right-of-way. This includes work on or near a train station, the tracks, on land owned by a railroad, and within 50 feet of any railroad property. Do You Already Have RRPL? If you already have Commercial General Liability (CGL) insurance, you may think that it will cover you anywhere you do work. However, work on or near railroads is specifically excluded by excluding contractual liability for anything related to railroads. This is the portion of the Commercial General Liability Coverage Form (CG 00 01 04 13) that relates to insured contracts: What does this mean? If your work contract is with a railroad or includes work on or near railroad property, you have no coverage if the claim is railroad-related. Bottom line: you need RRPL in these situations. What Makes RRPL different? RRPL is a policy that is meant to cover the gaps in the CGL policy relating to railroads. The coverage is typically purchased by the contractor, but the named...
Is It Insured? Pets in the Office

Is It Insured? Pets in the Office

In this world of impossible deadlines and never-ending stress, employers are looking for ways to make the work environment more pleasant for workers. One way that is becoming increasingly common is by allowing pets in the office. A study by Virginia Commonwealth University finds that office dogs actually reduce stress. The question is, what does your insurance say about dogs or other pets in the workplace? Let’s find out. FUN FACT: Take Your Dog To Work Day is an actual holiday! This year it falls on Friday, June 21, 2019. Things To Consider Before allowing dogs in your workplace, there are a few things to consider: Do you own a business that would be affected by dogs? Restaurants and other food-related operations may find themselves up against health violations by having a pet in the workplace.Does your landlord allow animals in the building? Some buildings may prohibit animals of any kind.Are any of your employees allergic to or afraid of certain animals? Assuming you are ok on all of the above, it’s important to make sure that the pet you are bringing in is clean, housebroken and properly trained. Does Your Policy Cover It? Most business insurance applications don’t even ask if you allow animals in the workplace. As it becomes more common, this may change. The Commercial General Liability coverage form (CG 00 01 04 13) does not have a specific exclusion that addresses animals. However, the Insuring Agreement does include this gem: The insurance company asserts they will have “no duty to defend” for any suit against which “this insurance does not apply”. What does that mean...
Insurance for Protest Marches

Insurance for Protest Marches

In the current political climate, it seems there are protest marches every weekend, and sometimes during the week. These may be associated with certain holidays or anniversaries of important dates. The point is, they happen frequently. While some protests are small, unplanned gatherings, marches are a different type of gathering. They often require months of advanced planning, funding, and scheduling. Marches are often required by cities and states to have permits, usually requiring a fee and proof of insurance. So where can you get insurance for protest marches? Hayes Brokers can help you with that. Liability Insurance Most cities and states require organizations to have liability insurance for any organized function being held on public property. When applying for a permit, organizers will receive a packet with information that includes the insurance requirements. These insurance requirements usually include a list of limits for general liability and auto liability, as well as wording that is required for adding the governmental agency and others as additional insured. They may also require a waiver of subrogation or other wording to protect themselves. This insurance may only be required for the day, and depending on the march or activity, a special events policy may work to satisfy the governmental authority and protect the organization in the event of problems during the march. However, standard insurance companies may not be willing to offer one day coverage for events with a history or reputation of problematic, violent or destructive behavior. Don’t Purchase Insurance Online Because of their insurance requirements, many governmental and municipal agencies will offer links to purchase insurance on their websites. Do not...
Cannabis Insurance Get-Started Guide

Cannabis Insurance Get-Started Guide

The new year brings new opportunities in many parts of the country where cannabis has finally been legalized. Whether it was medical, recreational, or both, the ability to legally sell and obtain marijuana has many dreaming of starting new businesses. Finding a location and product suppliers are important. Getting the proper licensing is a must. Learn all you can about the business before you get started. And don’t forget about insurance. Hayes Brokers has been insuring cannabis businesses since 1996, when it all began in California. In fact, we wrote the book on it. Now, we can insure cannabis operations in every state where it is legal. Here’s how we can help you. Liability Insurance for Cannabis Businesses If you own a retail operation such as a dispensary, you’re going to need general liability insurance. Your landlord may require it, but even if you don’t have a landlord, this coverage will protect you in many other ways.   Premises liability will protect against the odd bodily injury (slip and fall) claim made by customers and visitors. It will also protect against property damage claims by those same visitors. This coverage works like prepaid legal. Should someone threaten to sue for bodily injury or property damage, the coverage will provide legal representation for your business. If your business is found liable, the policy will pay the claim (indemnify you) up to the policy limit. This is the most important coverage you can purchase as a business owner. One thing not covered under most standard Commercial General Liability policies for cannabis businesses is products liability insurance. This coverage can and should...