by Grant Davis | Insurance, Umbrella Insurance
Why a Business Umbrella Insurance Policy is Necessary
A stack of money! The only question you need to ask yourself is this. If you or your employee hurt someone, do you want to pay for that from your stack of money? Or do you want your insurance company to pay for it from their stack of money? If you want your insurance company to be the one paying, a business umbrella insurance policy is necessary.
From what I see everyday I will bet you that you don’t have enough insurance to cover your business, farm or dairy if you or your employees hurt someone. Unless you are already a GDI Insurance Agency client. Call Grant Davis GDI and let me help. You will be surprised how reasonably you can get the right coverage and protect your assets! 1-888-991-2929
What is a Business Umbrella Insurance Policy?
First let’s start with talking about what an “Umbrella” is as it pertains to insurance.An umbrella is a extra layer of liability insurance that goes over your home, autos, cabins, boats, and other toys. For business owners a business umbrella insurance policy goes over their workers compensation and general liability insurance.
I have been working as an insurance broker for about 37ish years now. Long enough to have lost count!I have seen companies come and go and met with clients many times after the fact. By after the fact I mean after they have sustained a loss that is larger than they have insurance for.
I can remember the first client I met back in the early 80’s that was in the process of selling of the rentals they had purchased to fund their retirement. They were in their late 60’s and retired, but had gotten into a car accident with a motorcycle and didn’t have enough insurance and no umbrella (that extra layer of insurance to protect them from the larger losses).They lost everything including their home.
I can also recall meeting with business clients before they had losses, and seeing that their current broker didn’t understand the basic concepts of risk management, and or didn’t care enough to make sure they had adequate umbrellas.I can think of many cases to share with you, but one strikes my right now. They had $1 million limit on their company cars, and a $1 million umbrella.Their net worth was in the 8 figure range so they would be considered well off.We raised the umbrella to $10,000,000. A few years latter one of their employees driving to a job site caused a major car accident, killing and disabling others in their cars. One of my proudest days was when I met with the owner of this business and he thanked me for saving his business. Had he had the small limits the other broker had given him he would have lost everything as this loss was well over the $2 million dollar limit he had prior to meeting with me.
With all the clients GDI Insurance Agency, Inc. has each year we have clients that have large losses. It is just a function of having a lot of clients. Also we see losses around our community that are serious, so we are always reminded of the importance of having the right limits of liability and a business umbrella insurance policy.
One of the hardest things I ever have to do is get a call from a business or farmer that has had a large loss and they realize they are under insured.I go speak with them about what they should have had, and start talking about asset preservation techniques.
What should you do right now?
Just call me and let’s talk about protecting your home, business and estate. The funny thing is the last one I just completed was a week ago.We redid everything for them, and while it doesn’t happen every time we raised their umbrella 20 times what it was, earned premium credits for safety programs and risk reduction techniques and actually got them the insurance they should have had for less than they had been paying!The fun part for me is we did it with the same insurance company they were already insured with!That’s right!If you do the work to reduce risk, and get the right limits many times we can cut your costs at the same time.Now most of the time it may cost a little more to get the right limits of insurance.But compared to losing everything, and what you pay for all the basic policies you have I do mean an umbrella can cost “a little” more.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. With locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for more information on a business umbrella insurance quote!
by Grant Davis | Business Insurance, Cyber Liability, Insurance
What is Cyber Liability Insurance?
The cost of a data breach and the reputation damage to your business after a breach occurs can be devastating. You need a well-designed cyber insurance policy to provide the protection you need, and breach management expertise to ensure the breach is managed properly and in accordance with regulatory requirements. Federal and State laws require forensic, legal and credit monitoring services are in place after a breach to protect customers from the misuse of their personal information.
Free 37 page cyber security planning book.. just call 888-991-2929 or email us for your free copy
Why Have Cyber Liability Insurance?
Data breaches occur every day. Hacking incidents are the most recognizable and expensive cause of data loss, and over the last few years have become the most common.
- 49% of the data breach causes are malicious and criminal attacks.
- 32% are system glitches, such as software updates, which inadvertently expose sensitive private files.
- 9% are from people making mistakes, such as losing laptops and flash drives No matter the sophistication of the security system, there is little that can be done to eliminate the risk of human error.
A common, accidental breach is a real business risk worth considering today. Coverage May Include:
- Third party liability for financial loss, mental anguish, mental distress and any breach related claims
- First party coverage for breach related expenses
- Full limit coverage for notification, credit monitoring and computer forensic expense
- Coverage for breach costs available outside of the policy limit
- Coverage available for business interruption, lost income and restoration of data post breach
- PCI fines, penalties and remediation expenses
- Primary limits available up to 20 million (higher limits available through excess)
- Retentions starting at $1,000
- In-house quoting system for risks up to $100 million |
- Notification costs are covered when required by law and on a voluntary basis
- Free risk management services provided to policyholders
Sample Claim: Restaurant Data Breach A local restaurant chain discovers that their payment systems have been breached over the course of three months. Tens of thousands of customers had their credit card information stolen, resulting in fraudulent charges on the victims’ accounts. Victims band together and sue the restaurant chain for costs incurred, including paying for credit monitoring, recovering lost funds and expenses incurred in clearing their identities.
As technology becomes increasingly important for successful business operations, the value of a strong cyber liability insurance policy will only continue to grow. The continued rise in the amount of information stored and transferred electronically has resulted in a remarkable increase in the potential exposures facing businesses. In an age where a stolen laptop or hacked account can instantly compromise the personal data of thousands of customers, or an ill-advised post on a social media site can be read by hundreds in a matter of minutes, protecting yourself from cyber liability is just as important as some of the more traditional exposures businesses account for in their general commercial liability policies.
As reliance on technology continues to increase, new exposures continue to emerge. As your business grows, make sure your cyber liability insurance coverage grows with it. GDI Insurance Agency, Inc. is here to help you analyze your needs and make the right coverage decisions to protect your operations from unnecessary risk.
by Grant Davis | Insurance
GDI Insurance Agency has Redefined Human Resources and Employee Benefits
GDI Insurance Agency, Inc. includes state of the art Human Resources systems, wellness, traditional employee benefits, from health, dental, life, 401k etc, but has also added employee safety with its OSHA compliance programs.
Additionally GDI Insurance Agency, Inc. has teamed up with the leading provider of enterprise technology for the employee benefits industry, today announced that it will partner with an all-in-one software platform to manage Human Resources and benefits. Together they provide a seamless solution for HR managers and health insurance professionals, streamlining the HR and benefits decision making processes. Combined with a GDI Insurance Agency, Inc. dedicated Group Health Insurance Broker for each client who knows you and your account makes GDI Insurance Agency unbeatable in the Health and HR arena.
Enjoy the Benefits of a Human Resources Portal
Using a cloud-based human resources management software tool, allowing employers to solve transactional HR and benefits challenges with software, and strategic healthcare benefits challenges with the expertise of a dedicated broker advisor just for their company. GDI is featuring an automated paperless system, which simplifies employee onboarding, tracking time off, employee engagement, and off boarding. GDI also included a benefits administration platform, which will run technology to provide live rate and benefit data, real-time modeling to find the right plan and defined contribution strategy, and a census upload feature to help generate quotes in seconds.
GDI has also contracted with CA based HR attorneys their clients can call at no cost to discuss their benefits and HR needs to assure absolute compliance.
“Employers currently are challenged with the complexity of managing their HR and benefits administration, both strategically and tactically. GDI provides the all-in-one solution: A dedicated broker expert for your company, combined with innovative technology,” GDI is very excited to partner with leading industry solution experts to offer smart, dynamic and time-saving technology integrated with the Health platform, HR and payroll processing will be simpler and streamlined for small, midsize and the largest employers who currently struggle to manage these fragmented and manual processes, such as ACA compliance to name just one item that is just handled by GDI’s new program!
GDI Insurance Agency, Inc. has created the perfect match of cutting edge technology so HR departments can have a single sign-on and seamless process for hiring, onboarding, enrolling in benefits and meeting the complex compliance demands of the Affordable Care Act, as well as added the benefit of having both access to attorneys and a dedicated GDI benefits broker to work with. No call centers, no waiting for the next available rep. You call your dedicated broker that knows you, knows your account and handles any issues you need help with.
No broker of new program can come close to GDI’s offer. In addition GDI also offers a portal to help with all your OSHA Safety Compliance and even keep you OSHA 300 log online. GDI offers 3 HR programs as HR isn’t one size fits all. Here is a glimpse:
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. With locations across the heart of California’s Central Valley and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.
Just call GDI Insurance today 888-991-2929 we will take it from there!
by Grant Davis | Construction, Insurance
Construction Contract Liability is a real thing!
When you sign a construction contract you are agreeing to all the terms and conditions of that agreement. Not just what you are going to build, the material and when you are going to build it but also the indemnity and hold harmless agreements along with the type of contractors insurance you promise to carry and the additional insured forms you will provide. All of this is negotiable, but you need to make sure you have a clear agreement about what you will be providing and if it is agreed that it can be changed, then that agreement is also in writing and well documented. Here is a page we have up that will help you understand your contractual obligations to provide the proper additional insured forms and why.
Again I will stress that these obligations can be changed, or you can agree to change them with the contractor or owner requiring them, but those changes must be in writing and well documented as they modify the agreement / contract that you are responsible for!
Even quality workmanship is not immune to potential claims of property damage or bodily injury. All operations carry the risk that injury or damage may occur as a result of the work, leading to costly lawsuits. Considering the complicated mix of contractors and subcontractors that contributes to each project, who is liable for this risk?
In insurance terms, “your work” as used in an insurance policy is a broadly defined term that includes operations performed by the policyholder or on the policyholder’s behalf, including material, parts or equipment in connection with the operations. Operations or work performed on behalf of the policyholder means work done by a subcontractor is considered the contractor’s work. Therefore, faulty electrical work performed by an electrician that causes a fire or other damage could be considered the contractor’s liability, but would be covered under a standard commercial general liability (CGL) policy.
Because a contractor or other involved party could be held liable for defects in a subcontractor’s work years after it has been completed, and filing the claim under the contractor’s CGL policy could cause the premium to rise, many construction contracts require subcontractors to provide insurance coverage for claims resulting from their completed work for a finite period of time, typically the one- to five-year range. Typical contracts also require that the subcontractor name the owner, the architect, the general contractor and other third parties as “additional insured” parties, entitled to coverage under the insured subcontractor’s CGL policy. Naming additional insured parties requires a separate endorsement to that policy.
This means that as a subcontractor, you can be held liable for claims of property damage or bodily injury resulting from a defect in your work. It is also critical to maintain this coverage into the future; failure to do so could lead to a breach-of-contract lawsuit brought by the contractor or other party.
It is important to understand this commitment when signing the contract–the insurance commitment doesn’t end with the project. Furthermore, in the event of a large claim, the subcontractor could be faced with a substantial increase in premiums on the policy.
To avoid litigation, it is crucial to know local regulations and adequately document proper performance. Know your company’s documentation practices relative to each subcontract, and carefully keep records of all processes.
It is crucial for subcontractors to respect this requirement if included in the contract. Failure to do so could result in breach-of-contract lawsuits. Naming additional insured parties can be complicated, and it is very important to work closely with GDI Insurance Agency, Inc. to ensure that your contractual obligations are satisfied.
by Grant Davis | Construction, GDI Insurance, Insurance, Solar Installers
Insurance for the Solar Panel Industry
Solar Panels are all over. How do you insure a solar panel, or a contractor that installs solar panels? What about a solar panel farm? Solar panel insurance offers this specific protection.
Solar Panel Insurance GDI 888-991-2929
With the focus on developing clean energy sources, new alternative energy facilities are popping up all across North America and are predicted to increase exponentially in the next decade. One of the least intrusive and most cost effective is solar energy. Solar cell manufacturing costs continue to fall and output efficiency continues to improve.
GDI Insurance Agency works has developed a competitive clean & green Solar Energy Insurance Coverage program to meet the needs of photovoltaic solar panel “farms,” with new features for more complete recovery.
What’s New with Solar?
- We have addressed the need for specialized valuation of solar array components;
- Additional insurance is provided for a greener approach to debris recycling;
- The opportunity to upgrade to a greener replacement when it is desirable;
- We even cover the incurred cost of an extended warranty or maintenance contract, if it becomes void due to a covered loss.
What about Tax credits?
- The tax credits/ financial incentives can be critical to your client’s profit. And, now there is a simple Solar Business Income Worksheet to help the client capture and quantify these items for Business Income Coverage.
Any other Business Income Coverage special features?
- When the client also purchases optional Ordinance or Law coverage, there is an extension of time if it is required to comply with an ordinance or law;
- And, our business income coverage includes loss arising out of a covered loss to property in transit, an important coverage when insuring the installation phase.
Are other optional coverages available?
- Equipment Breakdown Coverage, Ordinance or Law, Inflation Protection, Contingent Coverage on Leased Solar Arrays, as well as Flood and Earthquake at eligible locations.
- Coverage is available from day one of the installation project well into the future, when the solar array is providing clean power to the end user.
There is a lot that needs to be done differently than “normal insurance” to properly cover a solar farm, or contractor installing solar systems.
Matthew Davis, MBA, CPCU, AAI
