business people in suits walking through a city

7 Questions to Ask Before Buying Commercial Insurance

75% of businesses are underinsured across the board. That means when they run into issues, they aren't covered and have to come up with the costs on their own.

Most companies don't have a ton of extra money lying around to handle these unexpected (often expensive) expenses, and that's why commercial insurance is so important.

Finding the right policy for your business is important, so we've put together seven questions you should ask before getting a commercial insurance policy.

1. Do I Need Commercial Insurance?

There are many types of business insurance, and some are required by law. Those typically include unemployment insurance, workers' compensation insurance, property insurance, and disability insurance.

Those business insurances are a good start and might get you through some issues, but having a commercial umbrella policy will guarantee you are covered.

Unforeseen and unpredictable events can occur at any time. It would be terrible to have a disaster happen only to find out the damage won't be covered through your current policy. The time to get coverage is when things are going well.

Beyond bringing confidence to you about your company's ability to pull through hard times, having a good insurance policy is also a good sign to others. Investors, lenders, and potential clients often look to see if their investments will be safe with a company through their insurance policy as well.

2. How Much Will Commercial Insurance Cost?

One of the most important questions you need to ask before signing up for a commercial insurance policy is how much it will cost. A business's budget is crucial for their survival.

The cost will vary depending on the insuring company you're using and the specifics of the policy.

Generally, using the same company for all insurance types will get you a discounted rate. There are several payment options available that can help make it as affordable as possible.

The coverage is often worth the cost, but it's important to make sure it's realistic before signing up.

3. What Is Actually Covered By My Insurance?

All the different types of insurance you can have for your business can be overwhelming and confusing. So it's important to make sure you understand fully what will be covered by a commercial policy and what won't be.

Commercial insurance will generally cover a wide range of issues as a kind of catch-all behind your original policies.

That coverage extends to property damage, theft, lawsuits, liabilities, issues with employees, and other business expenses. The specifics may differ based on actual policies.

Owning a business is a big risk with many potential issues, so a commercial insurance policy often eases worries about many of those.

4. How Do I Submit A Claim?

Every insurance company works differently with their customers when sorting through claims. Understanding your specific company's procedures and policies before signing up can save you a lot of headaches in a crisis.

If an issue arises where you will need to cash in on your policies to fund relief or repairs, you need to move as quickly as possible.

When you already know how to get in contact with your agent and submit a claim, you can move much faster. It's also helpful to have a realistic view of the timeline for getting those funds.

A little foresight can help tremendously in a crisis.

5. Will There Be Any Gaps In My Coverage?

Surveys show that most businesses choose to go without any insurance. This leaves them open to many potential issues and financial strain.

Even when a business has some insurance, they may leave themselves vulnerable through gaps in that coverage. It's hard for the average person to see those gaps in their coverage. So having a professional insurance agent look over your policies can unveil any potential gaps.

The best part about commercial insurance is that it normally covers any gaps left by your standard business insurance policy.

Often the commercial insurance will kick in after you've exhausted your other policies' coverage. Meaning that it will cover whatever the others' don't, which is a huge relief.

6. Will My Rates Ever Change?

Since a business' budget is so important, you'll want to make sure that your policy rates won't just change on you unexpectedly.

Insurance companies reevaluate their customers' policies regularly. This allows them to gauge their investment and level of risk. From this evaluation, there is often a slight change in the price for coverage (up or down).

While this is normal practice, you'll want to know when it happens and how often so you can prepare.

You'll also want to know what factors could influence a change and what you could expect after certain events. All of these things will just help you have a clear picture of what will likely happen and reduce any surprises.

7. How Do I Get Insurance Coverage?

Getting insurance coverage is normally a pretty straightforward process for most businesses, but occasionally, there are a few things that have to be completed beforehand.

If you're shopping around for the right policy for your business, it's helpful to know what's required so when you make a decision, you can act quickly to get covered.

It's also very helpful to know if you can change your policy and coverage at any time. A business is always evolving and changing, so you may need to switch up your insurance with those changes. Understanding if that's possible, what it might cost, and how to do that is a good place to start.

Be Prepared To Get Commercial Insurance

Having the right commercial insurance policy in place for your company will bring you peace of mind and confidence moving forward.

There's nothing better than knowing if something devastating comes up, you'll be able to weather the storm and come out on top. Commercial insurance provides you with the resources to do that.

If you're ready to get started looking at policies and getting coverage, contact us today!

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Why You Need Self Employed Business Insurance

Ever-increasing numbers of people are making the move into self-employment, and we don’t blame them.

To be self-employed is to take back control. You work for yourself instead of the man, earning money on your own terms. You enjoy newfound freedom, autonomy, and pride in running your own operation.

It’s no surprise that around 16 million Americans choose to work for themselves.

But self-employment isn’t all smooth sailing! There’s risk involved too. After all, to fend for yourself is to be in the firing line when accidents and issues arise.

That’s why you need self employed business insurance. It’s an essential way to protect yourself from unexpected legal and financial challenges.

New to self-employment and looking for further incentives to get insured? Read on to discover why small business insurance is so important.

To Protect Against Accidents

One moment you’re riding high on cloud nine. Business is booming, clients are happy, and the future looks bright. Then disaster strikes.

A customer falls over and injures themselves in your store. An employee gets injured at work. You make a mistake that harms a client’s physical or financial wellbeing. You accidentally damage a client’s property.

There’s no end to the number of potential accidents that can occur. But, whatever happens, you’re liable for damages. You can face costly legal battles that could cripple your fledgling business.

That's one reason why you need self-employed business insurance

To Offset Losses from Sickness and Absence

The associated risks of self-employment don’t all come from external sources.

Imagine having an accident or falling sick. There’s no sick-leave or income-protection from employers to fall back on. As the captain of your ship, any enforced absence has a direct impact on your ability to generate revenue.

That’s a significant problem for serious ailments that can make work impossible for extended lengths of time. As a result, you can face huge financial losses and stressful periods of income uncertainty.

Business insurance can help offset the monetary trouble of these unfortunate situations. Protected against such an eventuality, you can focus on getting better, safe knowing that you’ll have money coming in.

To Cover the Costs of Broken Equipment

Most self-employed people rely upon vital pieces of equipment to earn their living.

Examples might include expensive computers, printers, cameras, tablets, mobile phones, and so on. Such equipment plays a central role in the ability to conduct business.

Think about the particular gear that you use every day as part of your operation. Now imagine it breaking, being stolen, or getting lost. You can lose thousands of dollars worth of equipment and your ability to generate income!

Insurance helps you avoid such a calamitous situation. It can cover the cost of replacing your gear and gets your business back up and running in record time.

To Protect Against Angry Clients

Business can feel uncertain sometimes, but one thing’s almost guaranteed:

Eventually, you’ll have a difficult client/customer that, fairly or unfairly, expresses dissatisfaction with your product/service. In worst-case scenarios, they’ll even threaten you with legal action/claims of negligence.

For example, a consultant’s advice might lead to negative outcomes for the client. Feeling aggrieved, they seek compensation as remuneration.

These situations can feel overwhelming for self-employed people. Everything from their hard-earned reputation to finances gets put on the line. Having indemnity insurance eases the strain by covering any costs involved.

To Ensure Business Longevity

You’ve worked hard from day one to turn your self-employed business into a success.

Imagine it being placed in jeopardy because of one mistake, accident, or unhappy customer.

The financial implications of a lawsuit can do exactly that. You might have to pay exorbitant sums of money that’d bankrupt your operation. All the time, effort, and money that you’ve invested in the business would go down the pan.

Covering yourself with self-employed small business insurance prevents that eventuality.

As we’ve seen, you’re protected against issues that could otherwise threaten your enterprise. With less chance of suffering an untimely demise, you help guarantee its ongoing growth and prosperity.

To Enjoy Peace of Mind

Operating without business insurance is a recipe for stress and concern.

After all, something cataclysmic could happen at any moment- and you’re unprotected!

Aside from the emotional strain involved, there can be business implications too. The prevailing worry about experiencing potential problems, for example, might make it harder to take risks. You’re more likely to play safe and miss out on potential rewards in the process.

Having insurance delivers peace of mind. The financial protection liberates you from the concern that one wrong move might spell disaster.

To Restore Focus to Business

Accidents and issues that arise can be an almighty distraction from work.

They demand attention and you have no choice but to address them. Throw in the worry and concern involved and it can be impossible to focus on business as usual.

Having the appropriate insurance can help relieve the strain. There’s no worrying about where the money will come from or scrambling to get the resources together. Suddenly, it’s only a matter of making a claim.

You resolve the matter with less hassle and get back to your primary responsibilities far sooner.

Exactly Why You Need Self Employed Business Insurance

Self-employment holds an irresistible allure to millions of people around the country.

But it isn’t always a bed of roses! The nature of taking on your own business means it’s your neck on the line when issues occur. There’s no employer to take the fall, no company to take to court, and less financial security with which to weather the storm.

That’s where having small business insurance becomes so valuable. Have you been wondering why you need self employed business insurance? We hope this article has proved useful in explaining why it's so important.

Interested in accessing business insurance? Contact us today to see how we can be of service.

COVID-19 Return To Work Resources Bundle

As states begin to loosen restrictions and many businesses and individuals are getting back to work, or are at least planning to do so in the coming weeks, we wanted to make sure everyone is prepared as possible.

With that in mind, we compiled a bundle of re-opening information to benefit general workplaces, as well as several industry-specific resources for businesses in retail, hospitality, manufacturing, healthcare and more.

You can download the entire bundle here. For information on each individual resource, continue reading below.

General Workplace Guidance

Return To Work Checklist: Communications Planning (Updated 7/6/2020)

Employers can review how the topics on this checklist fit into their communications strategy regarding their customers, vendors, guests and local officials.

Fisher Phillips LLP: 5 Steps to Reopen Your Workplace

Fisher Phillips, LLP, has compiled a list of five steps to reopen your workplace, according to the CDC's latest guidance.

OSHA: Guidance on Preparing Workplaces for COVID-19

This detailed packet from the Occupational Safety and Health Administration (OSHA), contains recommendations as well as descriptions of mandatory workplace safety and health standards.

CDC: Guidance for Cleaning & Disinfecting

An overview from the Centers for Disease Control and Prevention (CDC) on general guidelines for cleaning and disinfecting public spaces, workplaces, businesses, schools and homes.

CDC: Devising a Cleaning & Disinfecting Plan

A more thorough version of the above CDC guidelines, with details on developing, implementing, maintaining and revising your plan.

CDC: Reopening Workplaces During the COVID-19 Pandemic

Questions to ask yourself as an employer when deciding if you should return to work and to help protect workers, especially those at high risk of illness.

Vehicle Cleanliness

Wheels, Inc.: Vehicle Cleanliness Tips

Vehicle cleanliness tips from Wheels, Inc., a large, privately-held automotive fleet leasing and management company.

Industry-Specific Resources

Along with the general business resources above, we've compiled several industry-specific resources and guides. Check them out at the links below.

Retail Stores

OSHA: COVID-19 Guidance for Retail Workers

In this OSHA alert, retail employers can find tips can help reduce their employees’ risk of exposure to the coronavirus.

Hospitality & Hotels

American Hotel & Lodging Association: Hotel Cleaning Standards

The American Hotel & Lodging Association (AHLA) has published a guide with the latest enhanced industry-wise hotel cleaning standards in response to COVID-19 to keep employees and guests safe.

Manufacturing & Factories

OSHA: COVID-19 Guidance for the Manufacturing Industry Workforce

For employers and workers in the manufacturing industry, the following tips from OSHA can help reduce the risk of exposure and illness.

Construction & Contractors

JE Dunn Construction: Safety Slide Deck

This template from JE Dunn Construction Group highlights what their own personnel will be doing in their general approach to COVID safety and preparedness.

OSHA: COVID-19 Guidance for the Construction Workforce

When working in the construction industry, these tips can help reduce the risk of exposure to Coronavirus.

NFPA: Construction Site Safety During Emergencies

Buildings under construction, alteration or demolition are facing new challenges. Here's how owners can safely prepare, execute efforts and minimize risk.

NFPA: Guidance for Maintaining Fire Protection & Life Safety Systems

This guide from the National Fire Protection Association (NFPA) highlights how to maintain fire protection and life safety systems in both occupied and vacant residential and commercial properties.

Healthcare & Medical

CDC: Get Your Clinic Ready for COVID-19

Here are 10 precautions you can take before, during and after seeing patients in a medical practice.

CDC: Medical Office Preparedness Planner - Primary Care Providers

From the CDC, this tool provides thorough preparedness planning resources for primary care provider medical offices.

NJ Office of the Attorney General: COVID-19 Advisory for Dental Professionals

The New Jersey Office of the Attorney General Division of Consumer Affairs (State Board of Dentistry) published a COVID-19 advisory for NJ dental professionals.

Golf Courses

We Are Golf - Back2Golf

To return the game of golf responsibly, allied organizations have established “Back2Golf,” a plan outlining operational guidelines for the golf’s 16,000-plus golf facilities that adhere to nationally established protocols and best practices.

USGA: COVID-19 Golf Course Care

The United States Golf Association (USGA) has created this resource page to provide useful information for everyone within the golf community on how to play and manage the game safely.

Essential Considerations for Returning to Work - Video & PDF

Webinar Summary:

Recently, Governor Murphy sketched out the benchmarks New Jersey will have to reach before the COVID-19 lockdown can be lifted. The stay at home order will remain in place until further notice, but the Governor said he expects the timeline for reopening to be measured in weeks, not months.

Returning to work will bring new legal and practical challenges for employers in all industries. The New Jersey Agents Alliance and its Member Agencies are pleased to invite you to a complimentary webinar by Clark Hill and HR/Advantage Advisory Services and hope that you will join us for an engaging discussion on the following topics:

  • Safely returning your employees to the workforce
  • Relevant federal and state guidance
  • Best practices for dealing with vulnerable workers, refusal/reluctance to work, and employee anxiety
  • COVID-19 positive workers and claims of workplace exposure
  • Why it’s important to formulate your workplace policies now
  • How we can help

Please share any questions that you may have about your returning workforce when you register.

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How Much Does Business Insurance Cost? A Helpful Guide

You can protect your livelihood from liability claims by understanding a few facts about small business insurance.

Whether you’ve been in business for a decade or you’re a startup, your business needs insurance. You may think insurance is costly.

However, that’s not always the case. Read on for the answer to the question, “How much does business insurance cost?”

Does My Business Need Insurance?

An insurance provider will determine your company’s business insurance cost by evaluating several factors, such as the location and size of your business.

Insurers use historical information and analytical tools to correlate risks to the characteristics of your business. These kinds of factors have an associated cost that’s directly associated with risk.

They'll begin the process of figuring out your small business insurance cost by evaluating all the risk factors tied to your business. They'll then add up those risk factors and assess your company’s profit margin.

Now, they’ve completed the formula that determines the cost of your insurance. As your business changes, the cost of your insurance may change.

Business insurance is a contract between you and an insurer. The agreement states that you'll pay your monthly premium.

It also states that the insurance company will help you repair, replace, or recover lost assets. It will protect your business if your property gets lost, stolen or damaged.

Most people don’t think they need insurance. That is until they do.

It’s vital that you protect your business from any number of things that may go wrong. It’s more important to ask, “What events could cause my business to shutter?” rather than “How much is business insurance?”

Some things are out of your control. For instance, someone could break into your storefront and steal equipment. Also, you could find yourself entangled in a lawsuit that originated because of the defect in a product made by another company.

Owning a business is rewarding. However, it’s also risky. Insurance protects you from those risks.

Different Types of Small Business Insurance

There are several different types of small business insurance. For instance, property insurance protects your building and anything inside of it.

Property insurance will protect you whether damage occurs because of a mistake, such as a fire, or a natural disaster such as a hurricane.

Liability insurance protects your company if someone sues you. A single accident could result in significant medical bills and legal fees.

Meanwhile, worker’s compensation covers your business in case one of your employees gets hurt. If you have employees, you must buy workers comp insurance to comply with the law.

Worker’s compensation will also protect your business if you find that you have to pay medical bills for employees. Without coverage, these kinds of expenses can hurt your finances and may even put you out of business.

The type of insurance that you purchase also depends on the structure of your business. For instance, a sole proprietor would need a different insurance policy compared to a corporation.

The type of services or products that you offer will also affect your choice of an insurance policy. Additionally, you need more or less coverage depending on the number of workers you employ.

Also, different businesses have different financial responsibilities. These varying responsibilities will also affect the cost and coverage of your insurance policy.

How Much Does Business Insurance Cost?

Ultimately, the cost of your insurance policy varies depending on what your business sells or provides. It also varies based on your volume of business.

Remember, insurance prevents you from paying losses out-of-pocket. Therefore, the salaries you pay will also affect the cost of your coverage.

Depending on your operation, you may need several different types of insurance. For instance, if you use delivery trucks, you’ll need commercial vehicle insurance.

Imagine that you own a small retail storefront in the small business district. More than likely, you’ll need a combination of property and liability insurance. This type of policy may cost over one thousand dollars annually.

Alternatively, a large utility company that owns wells and trucks may pay millions each year for coverage. At the same time, a consulting firm may pay several thousand dollars per year for an insurance policy.

Meanwhile, the average cost of business insurance for sole proprietors is typically a few hundred dollars a year for general liability insurance.

A landscaper – who conducts business on other peoples’ properties – may pay several thousand dollars per year for an insurance policy. They must protect themselves if they cause harm to someone else’s property.

Finding the Right Insurance Provider

Now, you understand that there is no clear-cut answer to the question, “How much does business insurance cost?” As you can see, many different factors can affect the cost of your insurance policy.

Before you approach an insurance provider, make sure you have a clear understanding of your type of business, your location and your employees.

These characteristics are an excellent starting point for assessing the type of insurance that you need for your business. The policy you choose will directly correlate to the size of your enterprise.

Many small businesses purchase a Business Owner’s Policy (BOP). This kind of policy is suitable for companies with fewer than 100 employees and revenues of less than $5 million a year.

Still, you can purchase customized insurance to cover your unique business. However, many insurers offer standardized policies for small companies that are affordable but protect your company from risks.

Stay Safe, Stay in Charge

Many successful businesses start in a garage or a spare room. These small startup firms typically only have one employee and little revenue.

Nevertheless, it’s still essential that even small businesses protect themselves against risks. A mistake during this early stage can end a business before it begins.

Whether you want to protect yourself from hackers, fire, or natural disasters, there’s a policy that’s right for your organization. Harrah & Associates can protect your business from any potential liability.

Connect with us today for a quote and take the first step towards achieving peace of mind. Our experts are standing by to answer the question, “How much does business insurance cost?” for you.

COVID-19 Resources for Small Businesses

Employee Tracker Video, Sheet and Walkthrough (updated on 5/5/2020)

We’ve prepared an employee tracking spreadsheet. The goal of this spreadsheet is business owners to track their employee’s employment status. By doing this, it will help communicate with your insurance company to keep your cost down if any incidents or changes of employment status happen during the COVID-19 pandemic. See below for the video walking through the sheet.

Download Worksheet Here

In an effort to support our small business clients and their employees during these uncertain times, we’ve compiled some resources to help you navigate this uncharted territory.

Continue reading to learn more about the latest legislation and benefits you can take advantage of.

We’ll be updating this page periodically as we receive new information that we think would be beneficial for business owners.

We suggest saving this link to your favorites and checking back daily. We’ll also be sending updates via email and social media posts.

Also, feel free to contact us with any questions or concerns. We’re here to help!

CARES Act – Small Business Loans

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law to provide small businesses with emergency loans to stay afloat.

The government has set aside $350 billion for this Paycheck Protection program, which is designed to help keep your employees on payroll.

You can learn more about provisions, eligibility and application instructions by clicking here.

More information can be found here:

Employee Retention Tax Credits

Employers whose business has been financially impacted by COVID-19 might be eligible for an employee retention tax credit.

It’s a fully refundable tax credit equal to 50% of up to $10,000 in wages paid by an eligible employer.

To find out if your business qualifies, how the credit is calculated or how to receive your credit, follow this link.

IRS FAQs: FFCRA Tax Credits

The IRS has issued answers to frequently asked questions about how the Families First Coronavirus Response Act (the FFCRA) tax credits apply to small and midsize businesses.

Signed by the President on March 18, 2020, the FFCRA provides refundable tax credits to small and midsize employers that reimburse them for the cost of providing paid sick and family leave wages to employees for leave related to COVID-19.

Here’s more information on the tax credits provided, how you can claim credits, when you can expect to receive them and who qualifies.

Risk Insights: Force Majeure & Coronavirus

Have you heard of “force majeure”? It’s French for “superior force”. Why is this important for you?

Force majeure describes such uncontrollable events that are not the fault of either party and that make it extremely difficult, or impossible, to carry out normal business.

These clauses allow for a suspension or cancellation of a company’s performance of obligations under the contract due to these uncontrollable events. Factors to consider include the language in your contracts, jurisdiction and facts of the case.

Read more about how it works and how it applies to your business here.

National Coronavirus Guidelines for Americans

Here are some helpful tips to stop the spread of Coronavirus. Simply put, stay home if you don’t need to leave!

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How Business Insurance Can Protect You During a Crisis

Small business owners sometimes overlook the importance of business insurance.

Rather than see it as the necessity that it is, they view it as something only larger corporations need.

Or they think other forms of insurance, like renter's insurance for the building you operate in or your own personal auto insurance, will cover them.

In reality, 40 percent of small businesses will face a loss of property or liability that would require them to file an insurance claim in the next ten years.

If you've yet to protect your company with usiness insurance, keep reading to learn what it is and how it can protect you during a crisis.

What Is Business Insurance?

Business insurance, also known as commercial insurance, is designed to help protect businesses from a wide variety of threats.

Some of these are routine threats, like a small car accident between a delivery driver and one other vehicle.

Others are much larger, such as a loss of thousands of dollars or more in sales because of a natural disaster.

The most common business insurance claims filed each year include burglary and theft, water damage or freezing damage, and wind and/or hail damage.

Protecting your business against these routine claims can help you avoid paying costly repairs or replacement fees out of pocket.

How Business Insurance Can Help Protect Your Company in a Crisis

It is important to protect your business from the most common causes of insurance claims. But these are far from the only threats you should think about.

Business insurance can also help you protect your company in the event of a crisis, such as these:

Large-Scale Cyber Attacks

On average, each cyber attack costs businesses $200,000.

Whether you're a large corporation or a small business, this average remains the same.

If you're like many businesses, a $200,000 loss would be a financial crisis, if not enough to close your company for good.

A large-scale attack can lead to loss of revenue, require costly maintenance and repairs, and more.

Cyber liability coverage is one of the many business insurance options that companies need to protect themselves in the event of a large attack.

Natural Disasters

When a natural disaster strikes your city or town, homes and families aren't the only ones who face losses.

The insurance policy you have on your business' building will help you make the necessary repairs and replace equipment like computers or desks.

What it can't do is help you recoup a loss of sales and revenue.

For instance, say that a tornado cuts all power to the plant where most of your products are produced.

This could cause a setback in production, which could lead to a loss of sales and important revenue, delays, and more.

Even if the plant or your business wasn't damaged during the storm, you could still see losses that your regular insurance won't cover.

Terrorist Threats

No one wants to think about a crisis like a terrorist attack.

But as a business, it's essential that you protect yourself against all threats.

Even if an attack doesn't affect your business directly, city-wide closures, an inability of employees to get to work, or a disruption to your supply chain could.

Massive Recalls

Another crisis that many businesses don't think about until it is too late is the mass recall of popular products.

Product safety recalls have dropped considerably in the last couple of decades.

In fact, in 2019, they fell to the lowest they have been in 16 years.

But the hundreds of recalls that are announced often involve thousands, if not tens of thousands, of purchases.

While your business may not be at fault for the recall if you don't produce the product, the recall can still have a devastating effect on your operations.

You'll experience a drop in revenue without those products.

You may lose clients and customers as a result as well.

Add in the time and labor required to pull product, answer customer inquiries, and perform damage control, and even a smaller recall can have a far-reaching effect.

Business insurance can help you recoup your losses and get your company back on track faster after a recall.


Acts of nature, a recall, or a terrorist attack aren't the only things that can put a stop to your supply chain.

Arson, or other acts of vandalism, can also affect your warehouses and suppliers.

While your commercial property insurance might cover replacing your warehouse, it can't help fill the gaps in business and revenue that you experience as a result.

That's why business insurance is important for supplementing your other insurance in case a crisis occurs.

Multi-Vehicle Collisions

Businesses that operate fleets have delivery drivers, or even just a few company cars often understand the importance of auto insurance.

But will that auto insurance be enough to cover a major accident?

In many cases, the answer is no.

Consider a semi-truck in your fleet causing a major, multi-vehicle accident.

Besides covering the medical costs of other drivers and passengers, your company may also face lawsuits.

Business auto insurance, with coverage for collision, comprehensive, and specified perils, will help protect your drivers and your business in case the worst occurs.

Choosing the Right Business Insurance for Your Company

Whether you want to protect yourself from cyber attacks, the effects of terrorist attacks, arson, or violent weather, or from a mass recall, business insurance can do all of this and more.

To get your free quote or request more information, contact us today.

Coronavirus Pandemic: Auto Insurance Credits

As COVID-19 continues, we wanted to provide some updates on what insurance carriers are doing to help their customers out.

Many carriers are allowing customers to defer payments or pay in smaller installments, and several personal auto providers are giving back credits on insurance premiums.

Keep reading below for the latest on which carriers are offering benefits. All the information below has been pulled directly from them.

We'll be adding more updates periodically to this page as we receive them. It is up to date as of 4 PM on 4/14.

If you have questions or don't see your carrier, give us a call at (609) 587-8030 or fill out this form.


Updated 4/13/20:

We are bringing to your attention the Auto Premium Credit announcement that has just been released. This is another step Chubb has taken to properly service clients during this pandemic.

We will communicate in greater detail the effective dates for your clients as we work through operationalizing this program and complying with any state regulatory requirements. Thank you for your patience and for all that you're doing to serve clients during these rapidly changing times.

Please stay safe and healthy.

Official News Release:

Chubb Announces Premium Credit for U.S. Auto Policyholders to Reflect Changing Driving Habits Due to the COVID-19 Pandemic - Savings for U.S. personal auto clients to average $110 per vehicle

WHITEHOUSE STATION, N.J. April 13, 2020- Chubb is providing its personal auto insurance clients in the U.S. with a credit on annual renewal premiums as a result of reduced driving activity.

Upon renewal, clients will receive a credit reflecting a 35% premium reduction for the months of April and May, with additional discounts for subsequent months, as the situation warrants. Across Chubb's portfolio, the average credit is expected to be $110 per vehicle. Clients will not have to request the credit, it will be applied automatically at renewal. All premium and rate adjustments are subject to regulatory approval. 

"In these rapidly changing times, we have been thinking about our clients and the challenges they are facing. We recognize that there has been a reduction in our clients' driving activity as a result of this pandemic," said Fran O'Brien, Division President, North America Personal Risk Services. "This credit reflects our commitment to providing a fair premium adjustment to our clients, while ensuring they continue to receive Chubb's best-in-class auto coverage."

Updated 4/9/20:

Chubb PRS: Examining the impact of lower auto usage.

Recently we have received questions regarding carriers who have made the decision to provide their clients with refunds based on their changing driving behaviors in this unprecedented environment.

As a matter of course, changes in loss frequency would be included in our annual rate reviews and reflected in our pricing.

We recognize that the current situation may have a long timeline with a prolonged dip in frequency depending on the speed of economic recovery.

We are currently evaluating the situation to determine an appropriate course of action for our clients. In the meantime, please be assured that our top priority is servicing you and our clients.

We are proud of the way in which our industry has responded in this crisis. At Chubb, just as you have, we have fully transitioned to working from home.

Our team has implemented virtual risk consulting visits and claims adjustments while staying very engaged with our mutual clients.

Your clients who suffer a claim or need billing assistance will be glad that your firms are there to advise them and have recommended broad coverages from a company known for high levels of service.

We are also proud of Chubb's $10 million pledge for pandemic relief and our commitment to our employees that there will be no layoffs during this time.

We remain committed to helping you and your clients through this crisis. Please stay safe and healthy.


Updated 5/27/2020:

Great news: the Shelter-in-Place Payback is being extended through June 30, 2020, for personal auto customers. There are a few differences from previous paybacks – read on to learn more.

We led the industry by providing customers with a payback program, and have returned more than $600 million in April and May (May and June in New York), along with our Special Payment Plan and commercial auto endorsement. As our data shows customers continue to be driving less and getting in fewer accidents during the pandemic, we are extending the Shelter-in-Place Payback through June 30, 2020, for personal auto insurance customers. And more great news – motorcycle customers are included in the June payout as well!

And it should be noted that over the three-month period, Encompass is returning approximately $1 billion to our customers, without impacting agency commissions.

Important details about the June payback:

  • Motorcycle insurance customers are included.
  • Customers will receive an automatic credit to their accounts, with most receiving 15% of their monthly premiums.
  • The amount reflects Encompass’ disciplined analysis of available data. The average cost per accident has increased, partially offsetting cost savings.
  • You will be kept informed of the final amount as filings are submitted and approved.
  • We are applying the June payback to the customer’s Encompass account. Certain customers, like those who paid in full, will have their June paybacks applied to a bank account, credit card or via check – see the FAQs linked below for the details.
  • In New York, the paybacks will be one month later. Eligible customers with an active policy in force as of April 30, 2020 should have received the May payback in mid-May and those with policies in force as of May 31, 2020 can expect the June payback in mid-June. We also expect to issue a third payment in July for policies in force as of June 30. The 15% payback will be based on the monthly premium as of those dates. Other than the payback dates, there are no changes to the program for New York.
  • Communications about the June payback will occur at the end of May. Keep an eye on Encompass Express.
  • The sign-up period for free identity protection for all U.S. residents will also be extended to June 30, 2020.

The Shelter-in-Place Payback can be a great opportunity to reach out to customers and prospects and increase retention, uncover cross sell opportunities and grow your book of business.

Please visit Encompass Express for more information and FAQs.

Updated April 2020:

Eligible auto customers will get an average payback of about 15% based on their monthly insurance costs during April and May.

Payment Relief

Encompass customers experiencing financial challenges can call Encompass to learn how to delay payments without penalty.

The Special Payment Plan gives auto and homeowner insurance customers the choice to delay two consecutive premium payments.

Customers also can choose to pay what they can afford

Mercury Insurance

Recognizing that many customers are driving their vehicles less as a result of shelter-in-place actions, Mercury plans to give back 15% of monthly premiums for April and May 2020.

This applies to all Mercury Private Passenger Automobile policyholders. Customers will receive their Givebacks in the same manner their premiums were paid.

As soon as we receive guidance and approval from the Department of Insurance, we expect to begin processing the payments.


Recognizing the economic hardship caused by the COVID-19 pandemic, MetLife is taking action to help its customers during this challenging time.

The company’s property and casualty business, MetLife Auto & Home®, is providing financial relief, preserving coverage in the event of missed payments, and processing claims remotely to ensure social distancing.

“Being there for our customers when they need us the most is the promise MetLife delivers on every day,” notes Darla Finchum, president, MetLife Auto & Home®. “People are struggling, through no fault of their own, and we can help.”

MetLife Auto & Home® is offering the following to its customers nationwide:

Payment & Billing Leniency

Effective immediately, MetLife Auto & Home® will not cancel policies due to non-payment through July 1, 2020.

Customers experiencing difficulties with payments can contact MetLife Auto & Home® directly for assistance.

MetLife Auto Premium Relief

Active MetLife Auto customers who are paid to date will receive a 15% credit for April and May based on their monthly premiums.

No action is required by customers to receive the credit. MetLife Auto & Home® will apply a future credit to the customer’s account.

Extension for Personal Auto Delivery Coverage

Many of MetLife Auto & Home® auto insurance policies already provide coverage for people using their personal vehicles for delivering medicine or food.

MetLife Auto & Home® is extending coverage under all personal auto insurance programs at no additional charge while customers are making deliveries in response to the crisis, effective March 20, 2020, through May 1, 2020.


We realize that not all of our customers can make the pivot to usage-based insurance right now, yet many customers are currently experiencing hardship as a result of the COVID-19 pandemic.

To get relief in the hands of our customers quickly and simply, we are offering a one-time premium refund of $50 per policy for personal auto policies active as of March 31, 2020.

Customers don’t need to do anything. Refunds will automatically be credited to the customers’ most recent method of payment (automatic withdrawal, credit card, personal check) within the next 30 days.

We are offering this rapid relief at a time when drivers are making the right choice to stay off the road and remain home to help “flatten the curve.”

The refund applies to all personal auto policies including Private Client. The premium refund and timing are subject to individual state Departments of Insurance approval.

Penn National

Penn National is returning premiums to assist our Personal Auto policyholders during the COVID-19 pandemic

The COVID-19 pandemic has caused significant disruptions to our normal routines and unimaginable losses to some of our friends, family members and local communities. Social distancing policies have required restaurants, offices, small businesses and schools to close.

These closures along with government-mandated stay-at-home orders for non-essential travel have resulted in a decline in vehicle use and miles driven. It is estimated that there will be significantly fewer miles driven during the months of March and April nationwide.

Pending regulatory approval, a credit of 15% will be applied to two months of premiums for those policies in force as of April 30 in recognition of the temporary reduction in vehicle miles driven.

The credit will automatically be applied to the policyholder’s next premium balance or refunded if paid in full. Premium returned benefits our 165,000 Personal Auto customers.

While the full impact of the COVID-19 pandemic remains uncertain, we know customers are driving less and the fewer accidents are reflected in our return premium.

Helping support our policyholders and our community

In addition to providing refunds and premium credits to policyholders, we continue to support our customers and the greater community in a number of ways.

  • Flexible billing – We are providing an extended 30-day premium grace period to allow customers more time to pay before cancellation notices are sent. We are waiving late fees and reinstatement fees. Our Customer Contact Center representatives also have the authority switch a policyholder to a more convenient payment plan.
  • Uninterrupted customer support – Thanks to our technology and business continuity preparations, we continue to be available during normal business hours. Also, our customers can report claims 24/7.
  • Support for front-line healthcare workers – We recently donated over 19,000 respirator masks to Geisinger Holy Spirit Healthcare. We appreciate the tireless work of all healthcare professionals and will continue to look for ways to support them.

We will continue to keep you informed of new developments.

Plymouth Rock

Plymouth Rock was founded on the principle of doing the right thing for our customers and agents. That means going above and beyond to provide more than just insurance – most importantly during difficult times like the one we’re living in now.

We understand that nearly everyone has been affected by the coronavirus pandemic in some way, and many are experiencing serious financial hardship. We want to do everything we can to help our customers, particularly those who are most in need.

We have issued a press release detailing our planned relief efforts for customers. As a part of the announcement, we will introduce our “pay it forward” option, which gives anyone who wishes the ability to donate their auto insurance premium credit to a non-profit that is providing relief for those hit hardest by COVID‑19. It’s a simple way to help those most in need.

Additionally, Plymouth Rock plans to offer the following relief to its customers, subject to regulatory approval:

  • A 25% premium credit on Liability and Personal Injury Protection Coverages
  • The option to “pay it forward” by donating auto insurance premium credit to a non-profit organization
  • The waiver of comprehensive and collision deductibles for any health care worker involved in an accident while driving to and from work, or in the line of duty
  • Application of the home insurance Additional Living Expense Coverage to any health care worker required by illness or job requirements caused by COVID-19 to temporarily reside somewhere other than their primary residence when payment for these expenses is not provided by the health worker’s employer or another source
  • Continuation of our payment flexibility, including waiving of late fees and a 60-day grace period (longer in some states), holds on cancellations and non-renewals for non-payment, per state guidelines
  • Extension of our food and legal medicine delivery accommodation
  • All relief will be available to current policies and new business, effective April 1 and extended until each state’s individual stay-at-home orders are lifted.

You can read our press release in detail on the Plymouth Rock website. And for all of our COVID-19 related information, please visit the COVID-19 Independent Agent Message Center.


Progressive returns $1 billion in premium to customers.

Today we announced that we’re providing credits of approximately $1 billion in premium to Progressive personal auto customers as a result of fewer claims that come with less frequent driving.

Subject to approval by state regulators, Progressive personal auto customers who have a policy in force as of April 30 will be credited 20% of their April premiums in May and personal auto customers with a policy in force as of May 31 will be credited 20% of their May premiums in June.

We estimate that the sum of these two credits will total approximately $1 billion. We may offer additional credits in the upcoming months.

Customers will not need to take any actions to receive the benefits. The credits will be applied automatically to the customer’s policy and those customers who have paid in full will receive a payment of the credited amounts.

If they have a balance on the policy, we’ll apply the credit directly to the remaining balance. And if they’ve already paid in full, we’ll return the money to the payment account we have on file— please make sure your customers’ payment details are up to date.


In efforts to provide relief to insureds during these uncertain times, customers with personal and business auto insurance policies will receive a 15% premium credit for April and May related to the various COVID-19 shelter-in-place orders.

Please see attached press release and Q&A document for further details. We've included some of the more pressing questions below.

Who will qualify for a COVID-19-premium credit? 

The COVID-19 premium credit is only for customers with personal and business auto insurance policies in force as of April 30, 2020 and May 31, 2020.

How will the COVID-19 premium credit be applied?

15% of the monthly premium for the months of April and May will be applied as a credit to the account of each customer who has an in-force personal and/or business auto policy as of April 30, 2020 and May 31, 2020.

How can a customer find out exactly how much of a COVID-19 credit they’ll receive?

Customers who use our self-service portal and have shared their email address will receive a personalized email with their calculated COVID-19 premium credit, and any applicable credit will appear on a customer’s bill.

When will customers receive their COVID-19 premium credit?

We are currently working with state regulators on our planned premium credit, but we expect to apply the 15% credit for customers with an inforce auto policy as of April 30 in early May and as of May 31 in early June.


We know that many of you are doing your part to help stop the spread of COVID-19 by staying at home.

That means many of you are driving fewer miles, resulting in a decrease in auto claims.

With that in mind, we have launched the Stay-at-Home Auto Premium Credit Program, which will automatically give you a 15% credit on your April and May premiums.

It’s our way of supporting you, and we hope it helps ease some of the financial burden many are experiencing.

And the best part: You don’t need to do anything. If you pay by monthly installments, you will receive the automatic credit on future bills. If you have already paid in full, you will receive a direct payment.

Business man working

Understanding How Business Income Insurance Protects You

There is no protection available that will save a business that is failing because of operational issues or revenue problems.

...But there is insurance protection against the inevitable.

Business income insurance helps cover you in the event of a rainy day, week or month.

Check out this overview to understanding business income insurance and how it can keep your business up and running after a disaster.

What is Business Income Insurance?

Business income insurance is a policy that protects business owners against income loss due to a disaster.

It doesn't matter whether the event is a preventable fire or a natural disaster.

In many cases, the income lost is because of the need to close to deal with rebuilding or repairs.

But there are cases where income is lost because of the disaster itself.

For example, a store owner might remain closed through a blizzard or tornado in the area.

Even if there is no damage directly to the business, the fact that the National Weather Service issues an emergency means his business cannot operate on those days.

Business income insurance would cover the loss of income during the days the business needed to close for safety reasons.

Insurance Expenses

Business interruption insurance isn't a separate policy itself.

It's usually available as an add-on to your comprehensive insurance or property/casualty policy.

The expense of the additional coverage can be added to your company's expenses on a tax return.

Insurance premiums are considered ordinary business expenses, making them tax-deductible.

Ordinary business expenses include anything that is a standard cost in your industry.

State laws, leasing contracts and other regulations require that business owners carry a certain minimum amount of insurance to remain in operation.

Home businesses may not get the same advantages as a brick and mortar business.

Consult with a tax professional to determine which and how much of your insurance expenses can be written off on your taxes.

What's Covered?

Business income insurance covers most of the standard natural disasters and their effects on your business.

Here is an overview of the standard coverage:


Insurance providers reference your sales history to estimate reimbursement for profits lost.

This history usually goes back only a few months which can be a setback if your company recently experienced a downturn.

Fixed Costs

Business income insurance covers fixed costs.

Fixed costs include normal operating expenses that are required to do business in your industry.

One-time expenses may or may not included in this number.

Like revenue, these costs are determined based on what you've spent in the same expense categories in the recent past.

Temporary Locations

There are some companies that can't wait for an office to be rebuilt before continuing operations.

If a company finds a temporary office location, the expense of the new location is covered in some policies.

Expenses include the cost of moving services and the rental of the new space.

Commission and Training Cost

The hidden cost of replacing equipment comes when you have to deal with upgrades in software and machinery.

Consider a company with all outdated computer equipment.

After upgrading to new desktops with updated operating systems, the staff would need training on how to use the new machines.

The same scenario could apply to the copy machine, phone systems or printers.

Paying a technician for the training is a cost most business owners don't expect.

A business income insurance policy can cover this to help owners get back on their feet.

Extra Expenses

There are policies that cover variable expenses.

These include any new or old costs that are needed in order for the business to regain operation.

Variable expenses vary based on your industry and the size of your business.

Government Mandates

The disaster itself isn't always the end of an incident for a business.

Sometimes that government requires that businesses remain closed until proper cleanup or sanitation is completed.

Business income insurance covers the loss of revenue during this mandatory closure.

The closure could be direct or indirect.

For example, street closures around the city are an indirect form of a forced business closure.

Employee Wages

Business income insurance protects more than profits during a closing.

Employee wages are important to prevent a company from losing its employees.

Coverage includes employee wages so that owners can still make payroll while they are out of operation.


Tax bills don't go away in the face of natural disasters.

If your business owes taxes, the government expects some plan to make payments even if your business is temporarily closed.

Business income insurance helps you remain compliant and avoid penalties by covering tax expenses.

Loan Payments

Lender payments are also still expected during a business closure.

If lenders aren't paid, they can move a loan into default which means the entire sum is due at once.

Business Interruption coverage helps the owner continue to make monthly payments on the loan until the business reopens.

Who Needs Business Income Insurance?

Smaller businesses that don't account for major interruptions like these could end up closing permanently without the right business income insurance.

Any collateral put up by a business owner is at risk until lenders receive payments as agreed.

Since many small business owners use personal collateral, this means the potential of losing personal and business assets all at once.

Getting the right amount of coverage is an important first step to choosing a policy.

The cost of insurance is not the amount of the premium but the amount you would lose if a fire or natural disaster struck today.

For more information on how to identify the right business insurance policy for your company, visit our website.

data breach laws

Data Breach Laws: What Are You Liable For?

It’s no secret that a data breach is a big deal. But are you prepared for just how expensive it can be?

In July of 2019, Capital One suffered a breach that affected about over 106 million customers. It’s estimated that this incident cost the company more than $300 million to resolve!

Sure, your business might not be big enough to suffer losses of this magnitude, but it’s still important for you to understand data breach laws. Failure to do so can have catastrophic results for your business.

Recent studies show that a data breach is likely to cost a small business close to $200,000. Even worse, more than half of all small businesses suffered a data breach in the past year!

If these statistics don’t make you nervous, stop and read them again!

While you should be concerned, there's no reason to panic. There are some things you can do to protect yourself and your business.

The first step is to learn about the most important laws regarding your company’s liability following a cybersecurity attack. Start by looking at these five critical facts.

1. There Are Currently No Federal Data Breach Laws

Although there is speculation that it will happen eventually, there are currently no federal laws regulating data breach protocol.

The Data Security and Breach Notification Act was proposed during the Obama administration. While it failed to pass, it's highly likely that similar legislation will come up again.

In the meantime, data breaches are governed by state laws.

2. Every State Has Data Breach Laws

All 50 states and the District of Columbia, Guam, Puerto Rico and the Virgin Islands currently have data breach laws on the books. While each state law is slightly different, the basic standards are essentially the same.

Each state requires data owners to report a data breach to the victims and, sometimes, to regulatory agencies. In addition, many states passed enhancements to their laws last year, which went into effect in January of 2020.

3. Data Owners are Legally Responsible for a Breach

A “data breach” occurs when an unauthorized party gains access to a customer’s personally identifying information (PII). This occurs when a person’s name is accessed in addition to one or more of the following:

  • Social Security number
  • Driver’s license or state ID number
  • Debit, credit card, or financial account number with the password, security code, or access code required to access the account

It’s critical for business owners to understand that by law, it’s the “owner” of the data (the business) who is liable for a breach, not the "data holder" (the cloud provider.) This applies to all cases except when the data is covered under HIPAA regulations, which requires even more regulation.

4. Specific Actions Create Liability

Data breach liability laws don’t allow victims carte blanche to file civil lawsuits just because a cyber breach occurred. In general, liability exists if one or more of the following occurred:

  • There was a failure to implement required safeguards or reasonable security measures
  • Once the breach occurred, the entity failed to take measures to mitigate or remedy the damage
  • The affected individuals weren’t notified in a timely manner (per each state’s specific laws)

In most cases, negligence must be proven before liability is assumed. For this reason, having a solid data breach response plan in place is one of the best things a company can do to protect itself.

5. Potential Costs and Liabilities Vary

Depending on the nature of the breach, the costs and liabilities associated with the incident can vary. Some penalties data owners may face include:

  • Individual and class action lawsuits – this may include civil monetary compensation for the victim’s losses, reimbursement for the victim’s out-of-pocket expenses related to recovering from the breach, reimbursement of legal expenses and, in some cases, compensation for emotional distress. Note that these suits can be brought by individuals and shareholders.
  • Government investigations – this may result in the imposition of fines and penalties
  • Additional requirements – this may include audits, mandatory use of third-party response teams, implementation of new or enhanced identity protection policies and procedures and more
  • Increase in liability insurance costs - general liability includes accidents, injuries, property damage and slander.
  • Collateral damage – this may include damage to your business’ reputation, loss of customers and revenue and expenses related to replacement of management.

The nature of the breach can also impact how much liability a company faces. Some of the most important considerations include:

  • Extent of damage – how many people were affected, the type of data that was compromised, the length of time the breach occurred and how much damage the victims suffered.
  • Intention – whether the breach was because of negligence or it was unintentional
  • Mitigation – what the data owner did to mitigate the damage
  • Previous preventative measures – what (if anything) the company did previously to minimize the chances of a breach
  • Past infringements – if there was a pattern of previous negligence, this will negatively impact the company’s assumed liability

Other considerations include how cooperative the company is with authorities following the breach, how quickly victims were notified and whether the company had followed the policies and procedures they had in place.

Protect Your Business from Data Breach Liability

Now that you have a clear understanding of data breach laws, it should be clear that this is a threat you can’t afford to ignore. In addition to having rules, regulations, policies and procedures in place to avoid a potential breach, every business owner also needs a cyber liability insurance policy.

Failing to plan ahead for this potentially catastrophic threat can have serious consequences and could even put your company out of business.  Don’t let this happen to you. Contact us today to discuss your specific needs and request a quote.