Sometimes We Tell Our Clients Not To Buy Insurance

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As we continue our articles on a new way to think about the insurance buying experience, we want to turn our attention to times when insurance may not be the right solution. Remember, we are more interested in helping our North Bay clients find the right insurance or risk solution.

We will be the first to say that certain types of insurance may not always be best for your needs. We believe each client is unique and therefore requires unique insurance solutions. But there is more to the process.

First you and your agent need to talk about what your risks and goals are regarding the issues. Your agent should be able to help you identify all the risks and, only then, provide solutions.

Here is a good example

We recently had a client buy an older used car for one of their kids. After we reviewed the ACV value for the client, we recommended that he not purchase collision coverage. We told him to use the savings to put into an auto replacement fund. This will save the client hundreds of dollars over time.

Here are other kinds of insurance you may not need

  1. Universal life – Typically term life insurance is going to be a better fit for you. Term life costs less, and you can take the premium difference and invest it yourself.
  2. Extended warranty plans – These are never a good idea. The warranty premiums are mostly commissions paid to the salesperson. Some credit card companies offer this protection if you make the purchase with their cards.
  3. Pet Insurance – Pet insurance usually is very limited in coverage and very costly.
  4. Insurance on outstanding credit card balances – This type of insurance can be costly, and there are a lot of loopholes to go through before any benefits are paid.
  5. Mini Storage Insurance – As long as you have homeowner’s or renters insurance you don’t need to buy special insurance. Most policies have automatic coverage for property away from your primary premises. Call us for details and limitations.
  6. Rental car collision insurance – If you already have collision insurance from your personal auto insurance, you don’t need to buy additional insurance from the rental company.  However, opting for the additional coverage could be worth the price if you don’t have collision insurance. But if you’re charging the rental to your credit card, it’s also possible to get the coverage through them.
  7. Mortgage life insurance – This protects the bank, not you. If you were to die, the payout goes to the bank, not your family. You are better off buying term life insurance.
  8. Flight Insurance – This is completely unnecessary, as airline accidents are rare and your life insurance policy should already provide the coverage in the event of a catastrophe.

North Bay Insurance Brokers, Inc. is committed to providing expert advice and quality insurance products that keep your future protected. From keeping your identity and confidential information secure to insuring your personal items under an umbrella policy, we have the solutions you’ve been looking for should theft, an accident or even a lawsuit ever occur.

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The lizard and the old ladies……

Focus On Facts

Personal Insurance Myths Revealed

At times, purchasing car or auto insurance in The Bay Area can be confusing. You are inundated with advertisements that say, “You can get a car insurance quote in just 15 minutes”, which now apparently only takes 7 minutes.  We believe that Bay Area auto insurance should be a purchase in which you put thought and consideration into. Whether driving or buying auto insurance, fast is not better.

We wanted to clear up some of the auto insurance misconceptions you may have heard.

“You can go on line and in 15 or 7 minutes select the best possible combination of price, coverage and service”.

Fiction- There are literally dozens of options to consider with each company. We do all the work for you by comparing many different companies, then providing you with the best options.

“Car insurance is the same for every car and owner”.

Fiction- Car insurance needs to be customized to fit your individual and family needs.

“Red cars cost more to insure”.

Fiction– Car insurance companies do not consider the color of your car. They do consider the make, model, cost and location of your auto.

“My driving record will not affect my premiums”.

Fiction– Your driving record will impact your car insurance rates. These are the driving infractions that will impact you the most: DUI, reckless driving, careless driving, speeding and failure to stop.

“All insurance companies are the same”.

Fiction– We represent many different companies. Some companies prefer motorcycles, while others have better rates for older cars. We try to match the insurance company to your individual situation, giving you the best possible combination of coverage, price and service.

At North Bay Insurance Brokers, Inc., we combine premium Auto Insurance with personalized service to give you the best coverage possible. Our insurance specialists will work with you one-on-one to find a policy that keeps you and your drivers protected at all costs – for peace-of-mind driving assurance.

Do You Consider Yourself A Professional Contractor?

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According to the International Risk Management Institute North Bay contractors, project owners, and project professionals have increased risk of Professional liability claims. Yet, less than half of all contractors in need of the coverage are buying it. Insurance can play an important role in “on time and on budget” projects. If your contractor’s Insurance coverage is not written properly, your business may not survive financially.

Contractors Professional Liability coverage has become just as important to a contractor as it is to an architect or engineer. New methods of service delivery have created risks and exposures that need to be understood by agents and contractors.

Contractors have a professional liability exposure when they perform or subcontract design, modify plans, change a manufacturer’s specifications, or provide professional construction management services to a project owner.

Critical Issues Involving Contractors Professional Liability Insurance

  • We offer quality admitted and non-admitted markets
  • Professional exposures excluded under most GL policies
  • Even well written contracts can be challenged causing legal expenses for contractor
  • Design build projects increase contractors risk
  • Some everyday work like; dewatering and shoring may involve design services excluded under the GL policy

Many contractors don’t even consider professional liability insurance, even while it is available at reasonable rates. Many project managers and/or owners believe it is covered under the contractors GL policy. This leads to complications at the time of a loss.

At North Bay Insurance Brokers, Inc., we understand that mistakes happen. That’s why we’re committed to helping you create a Professional Liability policy that keeps your day-to-day operations protected should your business be held legally liable

Had A Fire, No Worries…Had A Cyber Breach, Big Problem

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Cyber liability is fast becoming a common term for small to medium sized North Bay businesses. If you own a North Bay business with less than 50 employees you actually have a better chance of having a cyber-loss than you do of have a fire. Your business insurance program needs to have cyber liability coverage. Standard commercial insurance does not cover data damage, destruction or loss, and traditional business interruption insurance doesn’t cover business systems downtime.

According to a recent article by Bloomberg Law, one quarter of all the organizations in the United States have suffered a data breach in the last year.  Each breach averaged more than $1.2 million per incident. Yet, less than 35% of businesses actually purchase cyber liability insurance.

Common Cyber Liability Threats

  1. Employees stealing confidential information.
  2. Cloud attacks: The growth of the cloud will lead to attacks targeting data (personal or corporate) stored in the cloud.
  3. Cybercriminals targeting attacks on Android platform devices.
  4. Hackers using special software to hack your laptop and hard drives.

There are very strict regulations at the State and Federal level that place mandatory requirements on companies that have suffered a cyber-loss. If your firm is responsible for the theft of a client’s personal information, you may be required to buy personal identity theft coverage for them for up to one year or more. This requirement can cost you as much as $200 per individual item. Cyber insurance can protect you against many of the risks associated with a loss.

  • Identify theft recovery
  • Notification costs
  • Loss revenue
  • Data restoration
  • Third party coverage

Here are a few resources:

Vendor

Data Risk Calculator

North Bay Insurance Brokers, Inc. provides insurance to businesses in Sonoma, Napa, Marin, Santa Rosa, Petaluma, American Canyon, and surrounding areas.

No matter what business you’re in, each workday is dedicated to doing your job well and providing your customers with the best service possible. North Bay Insurance Brokers, Inc. would like to return the favor by giving you the coverage you need to ensure the security of your business.