What’s the Difference Between The Personal Auto Policy (PAP) And The Business Auto Policy (BAP)?

The insurance world can be filled with fine print and standard stipulations. They can be hard to understand even though they are written in the language you use everyday. A plain BAP without endorsements may not provide the same coverage as a PAP. Unless you’re driving a company car a BAP does not cover medical payments and liability claims. That protects the company from non-business accidents.

A PAP policy does cover medical as well as liability claims for non-business accidents, but a BAP can be written to cover these claims if a Drive Other Car (DOC) endorsement is written into the BAP policy. There are two DOC endorsements available; one is for a corporation and the other for an unincorporated business. A PAP will suffice if the business is a sole proprietorship, but if the vehicle is owned by a partnership, corporation or any other organization BAP coverage is necessary.

There are other things to consider if you want to use BAP coverage and those considerations can get complicated depending on the type of business and how the vehicles are used. The BAP has three close policy relatives; the garage policy, the motor carrier policy, and the trucker’s policy which cover specific situations related to those businesses.

The language used in the business auto policy is different from the language in the personal auto policy. The PAP uses terms like special and standard while the BAP uses symbols 1 through 8 to indicate coverage for vehicle claims. Symbol 1 is the most common coverage and covers all autos and personnel, but symbol 7 only covers specific vehicles. Symbol 8 only covers rented, leased, and borrowed autos.

The bottom line when comparing PAP coverage to BAP coverage is the ownership of the vehicle and how it will be used. Discuss your insurance needs and personal situation with your insurance agent before you decide which coverage works best for you.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

Join the forum discussion on this post - (1) Posts
Posted in Commercial Auto, Commercial Insurance | Leave a comment

How Do You Insure Your Home Business Inventory

In this day of the Internet explosion, many people are taking advantage operating a home-based business. With all of the obstacles and advantages to this process, there is one necessity that often gets left out of the mix. That necessity is product inventory insurance.

Most home-based entrepreneurs rely on their standard home insurance to cover their investment, but this may not be adequate. Many businesses need to keep a reasonable amount of on hand inventory.  So, you will need sufficient insurance coverage specifically for that inventory. To facilitate this, you will need to have a continuous working knowledge of how much you have invested in inventory. If your level of inventory varies by season, be sure you have a good record of the anticipated fluctuations.

You’ll need to establish the amount of coverage for inventory that you need separately from the replacement  value of your home and personal contents. Buy a completely separate policy or endorsement to your homeowners insurance.  These policies can often be purchased for pennies on the dollar amount covered and are a great investment.

It is wise to buy this coverage at the replacement value of the inventory, not the market value or  you paid originally for the product.  A catastrophic event could end your home business and cause you to lose your entire investment. Water and fire damage are the most common causes of loss. The “water” component of this coverage cannot be overlooked. It happens more often than you may think, and it can be relatively inexpensive to purchase a comprehensive policy as opposed to a basic or standard fire policy. Ask your agent if flood damage is covered as well.

Insurance companies usually have limits on the level of coverage that they will write and it is always a good idea to speak with an insurance professional about how to go about securing coverage.

Regardless of your type of business, if you maintain a physical inventory, it is a sound investment to protect your investment. The key is to make sure that this step is incorporated in the setup of your business. Always insure your home business inventory!

“Our blogs are for general education information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

 

Join the forum discussion on this post - (1) Posts
Posted in Commercial Insurance | Tagged , , , | Leave a comment

Some Tips to Help You Have A Worry-Free Vacation

Vacation season is here, and your family may be in the process of planning your long awaited getaway. While most people spend a lot of time looking for the best deals and items of interest to maximize their  vacation experience, one very important decision is often left to the last minute or not even thought of is…whether or not to purchase the optional insurance offered by a rental car company.

“Deciding whether to buy ‘damage waivers’ or insurance at the rental car counter can be a confusing experience—especially if you don’t know if you’re already covered by your personal auto insurance policy”. Optional rental car insurance is an additional cost. Those daily charges can significantly add to the cost of your rental.

To guide you with your decision, you may want to follow these three tips to help you decide whether or not you should buy the coverage:

1. Consult with your independent agent about these coverages. As licensed insurance professionals, your independent insurance agent can review and evaluate your current policies to find out if the coverage you have on your personal vehicle provides protection for you in a rental car. This is very important since all policies are different.

2. Check with all of your credit card companies. Some credit card companies provide additional coverage at no charge if you use their card to charge the cost of the rental car. Make sure you review the restrictions that may apply in your policy, and be sure to ask for a description of the exact coverages provided.

3. Take your personal auto insurance policy and details of your coverages with you to the rental car counter. You can also have your independent insurance agent available to answer specific questions the rental car agent may have since you may be asked a question that may be outside of the scope of your knowledge

There are a lot of hidden risks in renting cars, and knowing whether you need to buy any additional coverage can save you money and give you peace of mind so you can enjoy your vacation, and not worry about your insurance coverage decisions. You certainly don’t want to be second guessing your trip decisions during your vacations. Plan ahead so you can enjoy your vacation!

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

 

Join the forum discussion on this post - (1) Posts
Posted in Auto, Personal Insurance | Tagged , , , , | Leave a comment

Hurricane Coverages and Steps to Take to Protect Assets

A hurricane can be scary to someone who has never lived through one before, but after you get through the storm most people become more anxious about their hurricane insurance. As the amount damage caused by these storms has spiked over the past several years, many homeowners and renters have watched their rates climb or have received notices that they are being dropped from their insurance carrier. Whether you are a renter or a homeowner, there are steps you can take to protect your assets.

Renters

Most rental insurance policies cover damage to household goods due to flooding or structural damage (that is, damage to the residence that resulted in damage to your personal property). Because renter’s insurance does not cover any damage to a physical structure (i.e. the house, condo, or mobile home that is being rented) the insurer’s liability for damage during and after a hurricane is pretty limited. Thus, there has not been a lot of change to renter’s insurance policies over the past few years despite the changes to homeowner’s policies.

A typical policy costs about $15 a month; a small price to pay when you consider the amount of damage that just one broken window during a hurricane can cause. Most policies have a deductible of about $500. When shopping for a policy, make sure to read the fine print about how your deductible will be paid. Some policies will cover things like spoiled food without assessing the deductible.

Homeowners

Homeowner’s policies are much more complicated than a renter’s policy. Typically, insurance companies will charge two separate deductibles; one for hurricanes and one for all other disasters. Some states have three different deductibles! Usually, the hurricane deductible is set to 2% of the value of the insured property. Be very careful with this; insurance companies typically raise the estimated value of a home every year. By raising the amount that it would take to replace your entire structure, they are essentially raising your deductible on even a partial damage claim.

It is very important to note that no homeowners policy will cover flood damage. In order to be covered if water damages your home, you must purchase separate flood insurance. If your home is in a FEMA “flood zone,”  the cost of flood insurance could be very high, and a hurricane rider on your homeowner’s policy may be difficult to get.  Talk to your insurance agent for help securing the right policies.

Expect to pay about 1%-2% of your home’s value per year in premiums if you do not live in a flood zone, and between 2% and 5% if you do live in a flood zone. When shopping for a policy, look carefully at the deductible formula and any “caps” or limits on your coverage for household goods, accessory buildings, landscaping, and swimming pools.

“Our blogs are for general education information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

Join the forum discussion on this post - (1) Posts
Posted in hurricanes | Leave a comment

Jet Ski’s and your Homeowner’s Coverage

Summer is almost he, and as you start to head to the waterways in search of fun on a jet ski, you may come to find out…. you have a possible insurance deli-ma! You will probably discover that you have limited coverage for jet skis under your current homeowner’s policy. Let’s face it, the last thing on anyone’s  mind when they are about to hop on a watercraft is, “hmmmm is my homeowners policy going to protect me on this?” Yes, since a jet ski is an inboard watercraft, and yes since so many folks will purchase, rent, or borrow them, there is a need to see what coverage is provided by your homeowner’s policy…well before you take to the water!

Unfortunately for you the answer will be somewhere between “none” and “not much.”

So…what is covered?

In most cases, your homeowner’s policy provides $1,500 for watercraft. The typical Homeowner’s (HO-3) policy provides coverage for 16 named perils. Specific limitations are; no theft away from the residence premises and no coverage for windstorm damage unless the watercraft is inside a fully enclosed structure. With the typical jet ski costing in excess of $5,000 the coverage gap is obvious.

Section II (liability or medical payments) of the policy provides no coverage at all for an owned jet ski. This means that as soon as the dealer gives the keys for the jet ski to the customer, there is no coverage for liability or medical payments under the homeowner’s policy. Watercraft liability for an owned inboard watercraft is excluded. Always consult with your insurance agent before you decide to purchase a jet ski.

What about a rented jet ski?

Your homeowner’s policy responds for a rented jet ski as if it were owned by you and as outlined above. The homeowner’s policy covers: “…personal property owned or used by an insured while it is anywhere in the world.”

Section II of your homeowner’s policy is most likely not going to respond for claims arising when you rent a jet ski. For inboard or inboard/outdrive watercraft (such as the jet ski) Section II coverage is provided only for such watercraft of 50 horsepower and under. If you research jet ski manufacturers, it will reveal that the smallest jet ski they manufacture is about 70 horsepower. Considering the number of folks who rent a jet ski this is perhaps one of the most significant gaps found in your homeowner’s policy. Once again: “If you rent a jet ski you do not have any liability or medical payments coverage under your homeowner’s policy.” There is no endorsement to remedy this gap in coverage since the watercraft liability endorsement (HO 24 75) provides coverage only for a watercraft shown on the schedule.

Let’s see what there is for your borrowed Jet Ski…

Your homeowner’s policy responds for a borrowed jet ski again as if it were owned by you. The homeowner policy covers “…personal property owned or used by an insured while it is anywhere in the world.”

Section II of your homeowner’s policy does provide liability and medical payments coverage for you as well as family members. In fact, the insured and family members have Section II coverage for any borrowed watercraft, even a U.S. Navy submarine!

With jet ski type watercraft making up about 10% of the watercraft population but accounting for nearly 55% of watercraft injuries you need to be concerned about this coverage gap. Your homeowner’s policy provides, at best, limited coverage for a jet ski. We suggest you consult your agent because there are obvious coverage gaps in your homeowner’s policy, and they may be able to provide you with better coverage specifically designed for your jet ski.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

 

Join the forum discussion on this post - (1) Posts
Posted in Specialty | Tagged , , , , | Leave a comment

How To Survive Extreme Heat

Since Summer is right around the corner, we wanted to give some tips on how to survive our extreme heat!
Historically, from 1979-2003, excessive heat exposure caused 8,015 deaths in the United States. During this period, more people in this country died from extreme heat than from hurricanes, lightning, tornadoes, floods, and earthquakes combined. In 2001, 300 deaths were caused by excessive heat exposure.

Many factors affect the body’s ability to cool itself during extremely hot weather. When the humidity is high, sweat does not evaporate as quickly, preventing the body from releasing heat quickly. Other conditions related to risk include age, obesity, fever, dehydration, heart disease, mental illness, poor circulation, sunburn, and prescription drug and alcohol use.
Heat-related deaths are preventable. You should know who is at greatest risk and what to do to prevent problems. The elderly, the very young, and people with mental illness and chronic diseases are at highest risk. However, anyone can succumb to heat if care is not taken. Air-conditioning is the number one protective factor against heat-related illness and death. If a home is not air-conditioned, reduce the risk by seeking out public facilities that are air-conditioned.

Summertime activity, whether working or playing, must be balanced to aid the body’s cooling systems and prevent heat-related illness.  Learn how to prevent, recognize, and cope with heat-related health problems.

To protect your health when temperatures are extremely high, remember to keep cool and use common sense. The following tips are important:

Drink Plenty of Fluids

During hot weather, increase your fluid intake, regardless of your activity level. Drink two to four glasses (16-32 ounces) of cool fluids each hour even if you don’t feel thirsty.
Warning: If your doctor generally limits the amount of fluid you drink or has you on water pills, ask how much you should drink while the weather is hot.
Avoid drinks with alcohol, or—these actually cause you to lose more body fluid. Also avoid very cold drinks, because they can cause stomach cramps.

Replace Salt and Minerals

A sports beverage can replace the salt and minerals you lose in sweat. However, if you are on a low-salt diet, talk with your doctor before drinking a sports beverage or taking salt tablets.

Wear Appropriate Clothing and Sunscreen

Choose lightweight, light-colored, loose-fitting clothing. Sunburn affects your body’s ability to cool itself and causes a loss of body fluids. It also causes pain and damages the skin. Protect yourself by wearing a wide-brimmed hat, along with sunglasses, and by using a sunscreen of SPF 15 or higher (look for “broad spectrum” or “UVA/UVB protection”). Apply 30 minutes prior to going out. Reapply it according to the package directions. Limit your outdoor activity to morning and evening hours. Try to rest often in shady areas so that your body’s thermostat will have a chance to recover. Get into a cool area or at least into the shade, and rest, especially if you become lightheaded, confused, weak, or faint.

Monitor Those at High Risk

Although anyone at any time can suffer from heat-related illness, some people are at greater risk than others.

  • Infants and young children are sensitive to the effects of high temperatures and rely on others to regulate their environments and provide adequate liquids.
  • People 65 years of age or older may not compensate for heat stress efficiently and are less likely to sense and respond to change in temperature.
  • People who are overweight may be prone to heat sickness because of their tendency to retain more body heat.
  • People who overexert during work or exercise may become dehydrated and susceptible to heat sickness.
  • People who are physically ill, especially with heart disease or high blood pressure, or who take certain medications, such as for depression, insomnia, or poor circulation, may be affected by extreme heat.

Visit adults at risk at least twice a day and closely watch them for signs of heat exhaustion or heat stroke. Infants and young children, of course, need much more frequent watching.

NEVER Leave Children or Pets in Cars

Even with the windows cracked open, interior temperatures can rise almost 20 degrees Fahrenheit within the first 10 minutes. Anyone left inside is at risk for serious heat-related illnesses or even death. Children who are left unattended in parked cars are at greatest risk for heat stroke, and possibly death. When traveling with children, remember to do the following:

  • Never leave infants, children or pets in a parked car, even if the windows are cracked open.
  • To remind yourself that a child is in the car, keep a stuffed animal in the car seat. When the child is buckled in, place the stuffed animal in the front with the driver.
  • When leaving your car, check to be sure everyone is out of the car. Do not overlook any children who have fallen asleep in the car.

Use Common Sense

Remember to keep cool and use common sense:

  • Avoid hot foods and heavy meals—they add heat to your body.
  • Drink plenty of fluids and replace salts and minerals in your body. Do not take salt tablets unless under medical supervision.
  • Dress children in cool, loose clothing and shade their heads and faces with hats or an umbrella.  Be sure they also drink plenty of fluids.
  • Limit sun exposure during mid-day hours and in places of potential severe exposure such as beaches.
  • Do not leave infants, children, or pets in a parked car.
  • Provide plenty of fresh water for your pets, and leave the water in a shady area.

Recognizing Heat Stroke
Warning signs of heat stroke vary but may include the following:

  • An extremely high body temperature (above 103°F, orally)
  • Red, hot, and dry skin (no sweating)
  • Rapid, strong pulse
  • Throbbing headache
  • Dizziness
  • Nausea
  • Confusion
  • Unconsciousness

What to Do
If you see any of these signs, you may be dealing with a life-threatening emergency. CALL 911.

  • Get the victim to a shady area.
  • Cool the victim rapidly using whatever methods you can. Use cool water; a cool shower; a garden hose; a wet sponge; or if the humidity is low, wrap the victim in a cool, wet sheet and fan him or her vigorously.
  • Continue cooking efforts until the body temperature drops to 101-102°F or until help arrives.
  • Call the hospital emergency room for further instructions.
  • Do not give the victim fluids to drink.
  • Get medical assistance as soon as possible.

Sometimes a victim’s muscles will begin to twitch uncontrollably as a result of heat stroke. If this happens, keep the victim from injuring himself, but do not place any object in the mouth and do not give fluids. If there is vomiting, make sure the airway remains open by turning the victim on his or her side.

Recognizing Heat Exhaustion

Warning signs of heat exhaustion include the following:

  • Heavy sweating
  • Paleness
  • Muscle cramps
  • Tiredness
  • Weakness
  • Dizziness
  • Headache
  • Nausea or vomiting
  • Fainting

The skin may be cool and moist. The victim’s pulse rate will be fast and weak, and breathing will be fast and shallow. If heat exhaustion is untreated, it may progress to heat stroke.

Seek medical attention immediately if any of the following occurs:

  • Symptoms are severe
  • The victim has heart problems or high blood pressure

Otherwise, help the victim to cool off, and seek medical attention if symptoms worsen or last longer than 1 hour.

Recognizing Heat Cramps

Heat cramps are muscle pains or spasms—usually in the abdomen, arms, or legs—that may occur in association with strenuous activity. If you have heart problems or are on a low-sodium diet, get medical attention for heat cramps.

What to Do

If medical attention is not necessary, take these steps:

  • Stop all activity, and sit quietly in a cool place.
  • Drink clear juice or a sports beverage.
  • Do not return to strenuous activity for a few hours after the cramps subside, because further exertion may lead to heat exhaustion or heat stroke.
  • Seek medical attention for heat cramps if they do not subside in 1 hour.

Recognizing Sunburn

Symptoms of sunburn are well known: the skin becomes red, painful, and abnormally warm after sun exposure. Long term damage, including melanoma, a potentially fatal cancer, can occur.

What to Do

Consult a doctor if the sunburn affects an infant younger than 1 year of age or if these symptoms are present:

  • Fever
  • Fluid-filled blisters
  • Severe pain

Also, remember these tips when treating sunburn:

  • Avoid repeated sun exposure.
  • Apply cold compresses or immerse the sunburned area in cool water.
  • Apply moisturizing lotion to affected areas. Do not use salve, butter, or ointment.
  • Do not break blisters.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

Join the forum discussion on this post - (1) Posts
Posted in general | Leave a comment

How Does Insurance Deal with Animal Accidents?

Determining which types of insurance you need and how much to carry on your insurance policy can be very confusing. It’s always best to be knowledgeable about the insurance lingo before you speak with an insurance representative over the phone. This way, you will understand what you are purchasing. Distinguishing between collision and comprehensive coverages and deciding which one you need is one of the major decisions you will have to make when opening a car insurance policy.

The collision coverage on your insurance policy covers the damages your vehicle sustains when you collide with another vehicle or object. An easy way to remember what your collision coverage is for is by knowing how a collision is defined. When your vehicle collides with something or if another vehicle collides with you that would be a collision. Your collision coverage would pay for an accident of this nature, minus your deductible.

The comprehensive coverage on your insurance policy covers the damages your vehicle sustains in all other situations other than a collision. In fact, many companies no longer use the term “comprehensive” and simply call this coverage “other than collision” in the policy language. If your vehicle is vandalized or robbed, damaged by hail or fire, or damaged from an animal, your comprehensive coverage would pay for the damages minus your deductible.

Many people are concerned about accidents involving animals, especially deer. Any animal mishaps would fall under your comprehensive policy. You are not deliberately trying to collide with the animal so you have no control over the situation. An example of how the two types would apply to a situation would be as follows:

“I was driving home one night and a deer ran in front of my car! I swerved to avoid it and hit a tree on the side of the road.”

According to the car insurance policy, if you had hit the deer, it would fall under your comprehensive policy since you had no control over the deer running into your path. However, since you swerved to miss the deer and hit the tree, it now falls under your collision policy. Either way, you probably have a deductible to consider.

“Our blogs are for general education information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

Join the forum discussion on this post - (1) Posts
Posted in Auto | Tagged , , , , , | Leave a comment

SAFE BOATING AND SPEED RULES

Did you know that you are financially and legally liable for wake damage created by your boat? Well, now you do, and regardless of if you have insurance or not! 

A lot of people are really not clear as to the definition of speed zones posted as “Idle Speed/No Wake” or “Slow Speed/Minimum Wake”

Idle Speed/No Wake means you must operate at the minimum speed that allows you to maintain steering and make headway (move in a forward direction.) So what does this mean? It means absolutely no wake whatsoever. In most boats, this is somewhere around 600-900 RPMs, but it solely depends on your boat.

“Slow Speed/Minimum Wake” means you must operate fully off plane and completely settled in the water. Certainly no “white caps” showing on your wake and your bow does not rise to a plane at all.  The range here may possibly be somewhere between 900-1200 RPMs (once again depends on your boat)

In any event, your boat’s wake must not be excessive, and cannot create a hazard to other vessels regardless of the zone you are in, and anyone who operates a vessel with a willful disregard for the safety of persons or property will be cited for reckless operation. This can be a stiff penalty in most cases, and will invariably ruin your pleasurable boating day!

Law enforcement typically monitors boat traffic in and around known hazardous areas, and they pay close attention as to when a boat comes off a plane, or when they speed up, and are more than willing to give you a hefty fine for doing so. While they are at it, you can also expect a full boat inspection!

Good ways for you to monitor your boat’s wake is look behind your boat and see what type of wake, if any, you are pulling. Then you can modify your speed accordingly.

It’s best to adhere to these simple but often un-understood rules when on the water.

You also want to make sure that you carry adequate insurance to protect your vessel, your passengers, and other vessels. Unlike auto insurance which in a lot of states is required, your state may not require you to insure your boat, and this can leave you with a huge exposure in the event you suffer a mishap with another vessel or structure, and once again, you may be the one liable for the costs. Without insurance, this could be a lot since boats are not cheap!
Contact your independent insurance agent for more information on a policy that can give you adequate coverage. 

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

Join the forum discussion on this post - (1) Posts
Posted in Boat | Leave a comment

Business Contents Carried in Your Car

If you own or manage a business, then you know how the importance of everything from your goods and products to the equipment you use. Such items really help one build their business profits. However, one should not assume that any business contents carried in the car are covered by a standard insurance policy.  Instead, it is important to read a insurance policy to see exactly what is covered so that there are no unpleasant surprises in the event of an emergency.

It is important to read your automobile policy to see if items that are carried in it will be covered just as much as the car and injuries to you or your passengers. Some policies will cover contents in an automobile, others will not. Many personal polices do cover business contents, You may need to buy extra coverages in your business policy or your commercial auto policy, or other business insurance that will cover all of the products and equipment carried in your vehicles. For example, would you have coverage if your laptop is damaged in a car crash?

Insurance policies are meant to provide people with a safety net. A business can only succeed if a company has adequate coverage. This means that a business owner or manager can rest assured that every possible emergency of situation can be easily handled. Meet with your independent insurance agent to review your insurance program and ensure the security of your auto contents.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

Join the forum discussion on this post - (1) Posts
Posted in Commercial Auto, Commercial Insurance | Tagged , , | Leave a comment

Mobile Devices: Does Insurance Tag Along?

Mobile information devices like IPADS, PDAs, and MP3 players occupy the bags and pockets of tens of millions of Americans. These devices can be pricey, often costing hundreds of dollars. The cost to obtain the information programmed on these gizmos can be exponentially more. If your portable device is damaged or stolen, will these costs be covered by your insurance?

Personal Insurance
Consider the iPod. Their owners span every demographic. For some, the iPod is as important to getting through the day as morning coffee or sunshine.

This pervasive product ranges in cost—usually a few hundred bucks or less depending on bells and whistles—and that’s just for the hardware. Downloading music can cost a dollar a song, videos and “podcasts” even more. Add in time spent collecting this information and you’ve got thousands of dollars invested in this thing. The same is true for other portable devices.

The good news is that most homeowners policies cover personal property while it is anywhere in the world—a positive considering the nature of these devices. The bad news is that coverage is limited—meaning the check you receive after the loss may not be what you expect.

While many believe their iPod is “worth” thousands of dollars, a homeowners insurance policy is designed to cover “direct physical loss” to property. Therefore, a typical policy will cover the cost of the device itself but not the cost of the information stored on the device. Some homeowner policies include coverage for loss to “personal records,” which may include information stored on a portable device. However, not all will do so and those that do likely limit coverage to a relatively small amount. If you have questions, consult your Trusted Choice® insurance agent.

Business Insurance
More and more people are using IPDAS or PDAs, such as BlackBerrys, Treos and iPhones, to conduct business on the fly. These devices keep them wirelessly connected to their work through email, Internet and phone.

If you own the device personally and use it for business, coverage under your homeowners insurance policy is less generous. Personal property used for business may not be covered worldwide and is subject to an amount of insurance that is lower than other personal property. A further restriction is that any limited coverage available for “personal records” does not apply to business records.

If the device is owned by your employer, it’s likely covered under a business insurance policy. Such policies contain similar limitations for loss of information. Business owners should call their Trusted Choice® independent insurance agent for information about electronic data coverage.

Back it Up
Whether used for business, personal, or both, cost to replace the device itself is likely the extent your insurance will pay if it is damaged or stolen. The best way to protect the information contained in the device is to back-up data periodically. Then, even if you have to replace the device, you won’t have to start from scratch.

We are a local Trusted Choice® agency that represents multiple insurance companies, so we offer you a variety of personal and business coverage choices and can customize an insurance plan to meet your specialized needs, and hope you found this information helpful.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

Join the forum discussion on this post - (1) Posts
Posted in Commercial Insurance, Personal Insurance | Leave a comment