Business Insurance Saves The Day

By: Jennifer Hanzlick, Owner of Clutter Trucker

How an Insurance Policy Saved My Business
Let’s face it. Unless you work in the insurance industry, you probably get bored stiff whenever someone brings up the topic. Plus, whenever you are in a position where you must purchase a policy, like for your car or home, you might skip through the fine print, ask for “minimum legal coverage” to keep the state or your mortgage holder happy and sign the forms. I used to be that way too, until I became a business owner.

Reading the Fine Print Pays Off
After putting my life savings into equipment, supplies, a lease contract for office space, and advertising, I quickly realized that insurance coverage was my best friend. How did that happen? Well, for starters, I decided to read the fine print of the business insurance policy that was in front of me.
It took a couple of hours, and a huge magnifying glass because the policy documents were not online. But the effort was worth it. I soon discovered that this inexpensive policy included financial protection for me in all sorts of situations. So, I opted for what’s called a “BOP” or a business owner’s policy.

It cost a bit more than minimal coverage but offered protection against things like property theft, equipment breakdown, employee accidents, data hacking, business interruption, general liability claims, and much more. The BOP is a smart way to get an entire package of insurance coverage at a reasonable cost because you’re essentially buying policies “in bulk,” the way you’d save at a wholesale club if you purchased a 10-pound jar of peanut butter.

That was the first eye-opener for me: reading the policy cover to cover. The small amount of money I spent for the coverage protected my life savings, in other words, my business, from just about every type of accident or case of bad luck under the sun.

Don’t Let Stolen Equipment Ruin Your Day
The next thing that turned me into a “true believer” in the power of insurance, was something that happened to me on an otherwise beautiful summer day.

After cleaning a rather large home on one of the first jobs I had after opening my company’s doors, my co-worker and I noticed something. During a three-minute interval, while we were finishing up client paperwork, about $4,000 worth of equipment was snatched from our truck. Someone had been watching us, sneaked up to the vehicle while we were occupied, bashed out a window, and made off with two very pricey cleaning machines.

What’s the good news? The commercial property section of my insurance policy covered that stolen equipment. Of course, I filed a police report, but the items never showed up. However, after I provided all the documentation to my insurance carrier, they reimbursed me within 24 hours.

That policy saved me from shelling out several thousand dollars on new equipment when my company was new, and I didn’t have many clients yet. It would have been an extreme financial hardship for me if I hadn’t had commercial property coverage within my BOP, business owners policy.

My Comeback From a Hack Attack
Since then, my BOP insurance coverage has saved the day in other, smaller ways. Once, for example, my company lost all its online access for two days due to a widespread server shutdown. That meant our computer systems, which we use for quality control, client follow-up, and job tracking were completely down. A two-day business interruption like that can be costly for a small entrepreneur with a loyal client base and a small workforce.
However, my Business Owners Policy, reimbursed us for financial losses incurred due to the downtime covered under the cyber insurance clause of the insurance contract. It turned out that the server failure was due to a massive computer hacking incident. Cyber insurance covers situations just like that.

Long story short: an anonymous hacker was able to knock out thousands of computers in a four-state region but couldn’t stop my business from continuing to make a profit. Cyber insurance is one of the newer types of business coverage and is well worth it, in my opinion. Hacking is becoming more common, so it’s a good thing the insurance industry offers this kind of protection.

Sleep is Sweet, and Highly Underrated
Never underestimate the power of insurance coverage. If you’re like me, it could save your financial life and help keep your company rolling along and earning a living no matter what happens. The other bonus is hard to prove, but I believe it: if you have an excellent business insurance policy you’ll be able to sleep very well at night.

I think insurance professionals should add restful sleep right into the paperwork as a policy benefit. All joking aside, if you own a business, shop for the best coverage you can get. You won’t regret it.

Jennifer Hanzlick is an Entrepreneur, Speaker and Hoarding Expert. She was inspired to create a business to help people remove the junk and clutter from their homes. She found out many people are overwhelmed with the amount of clutter or junk in their homes. They want to get rid of it but don’t know where to start and need extra help. And this is how Clutter Trucker was born!

Disclaimer: This post is to be used for informational purposes only. Each person should consult their insurance or business advisor with respect to matters referenced.

What is Renters Insurance & Why Do You Need It?

Written by Rose Hart

Have you been wondering about renters insurance? Is it even necessary?

The question regarding the need for renters insurance is common among tenants. Every time you take on insurance, it’s also another financial responsibility. As a tenant, you may be wary of a growing number of monthly or annual expenses.

But renters insurance is definitely something that you need to get as a tenant, advises McGuire Management, a property management company in Denver, CO. Without proper renters insurance, there is no financial coverage for your personal items inside the property.

While your rental’s owner holds a landlords insurance, this particular insurance policy won’t be useful to you. It’s just there to cover the losses connected to the actual building itself and some potential add-ons.

Let’s see how renters insurance works and list the top reasons you should obtain a renters policy as a tenant. As a result, you can enjoy peace of mind with fully knowing that your personal belongings are financially protected from any loss or damage.

The Starting Point: What Is Renters Insurance?
As a tenant, the only way to protect your personal belongings is to obtain renters insurance. A renters insurance plan covers your items from damage like fires or floods.

Some landlords actually set renters insurance as a strict requirement. They add a clause to the lease agreement that states this requirement. Landlords do this to lower the chance of costly disputes.

What Are the Benefits of Renters Insurance?

Useful Provisions
Regular renters insurance plans have some essential provisions. For instance, you’ll receive financial benefits in the event that a burglar has taken your personal items. However, you would need to prove that you had taken adequate security measures in your rental home.

Additionally, there are many renters insurance policies that allow you to book temporary stays due to unexpected circumstances. But for this to work in your favor, you need to check the limits that your insurance company has set.

Personal Property Coverage
The protection of your personal belongings is a significant benefit of renters insurance. Most standard policies include financial coverage for stolen, burned, or otherwise damaged personal items. But you do need to keep an eye out for this: regular policies fail to cover damages due to natural disasters like floods and earthquakes. This means that if you live in an area that experiences frequent floods, you need to obtain a supplemental policy.

Always read the terms and conditions of your insurance carefully. Before signing an agreement, make sure that you understand the scope and depth of the coverage provided.

Here are some of the typical instances of protection under a standard renters insurance policy:
• Indoor water damage
• Theft or vandalism
• Fires and explosions
• Damage caused by vehicles
• Falling objects

Personal Liability Coverage
Most standard renters insurance policies also carry liability coverage. When any injuries happen in your rented house or apartment, you’ll receive financial protection from liability. Below are some of the ways you can benefit from liability coverage:
• Your neighbor asks to use your bathroom, slips on wet floor, and gets a concussion.
• Your dog bites your guest’s leg, resulting in the need for medical intervention.
• The yard lighting situation is sub-standard and leads to a guest’s injury.

Many of the situations tied to liability issues are impossible to predict. The best precaution is to have valid renters insurance on hand. For instance, typical policies protect you against liability charges for a minimum of $100,000.

At the same time, it’s possible to increase the liability coverage limits. This does lead to paying a higher premium on your renters insurance. If you feel that you live in a high-risk rental, the additional expense may very well be worth it.

Any unique circumstances may raise renters insurance prices as well. As an example, being the owner of a specific dog breed can raise your monthly insurance expense, and some breeds may be outright denied coverage by your insurer.

Renters Insurance is Inexpensive
Standard renters insurance policies are generally quite affordable. There are significant differences in the annual expenses between states, but the average lows are around $130, and the average highs hover around $230.

Obtaining additional riders, extra lines of coverage to your policy, may still make a lot of sense because the premium won’t be that much extra. But the benefits are likely to far outweigh the costs when you consider the associated financial losses.

In a Nutshell: Why You Need Renters Insurance
Renters insurance is an essential policy for all tenants. The personal belongings in your rental home will receive necessary financial protection. Additionally, you can live stress-free knowing that you are covered for injuries or other incidents at your rental, thanks to the personal liability coverage in your policy.

Have questions about renters insurance or your current renters insurance policy? A knowledgeable agent is always a phone call away at Aspen. 303-777-2991.

Author: Rose Hart, Co-Author Marc Goldenberg and Morgan Hatfield, Aspen Insurance Agency.

Disclaimer: This post is to be used for informational purposes only. Each person should consult their insurance or business advisor with respect to matters referenced.