Michelle Babbino, REALTOR®

Tag: Side Hustles

  • Hurricane Insurance for Business

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    Before the Hurricane: Safeguard the Future of Your Business

    Are you a business owner? Here are two alarming statistics about natural disasters for you: As many as 4 of 10 businesses that experience a natural disaster never recover. Worse, at least 1 in 4 businesses that are forced to close in the wake of a disaster never reopen. And if your business is small, or if all of your operations are in one location, the outlook worsens.

    If your business is located in a hurricane zone, you need to have a disaster plan in place.

    Luckily, you have an abundance of resources. You can find step-by-step help for disaster planning, response and recovery in FEMA’s Emergency Management Guide for Business and Industry. Other sources include ready.gov and the Insurance Institute for Business and Home Safety (IBHS).

    Insurance Considerations

     Once the hurricane has passed, you may need quick access to funds to:

    1. Repair damage to your business
    2. Mitigate lost

    Does your business have insurance to provide the funds necessary to survive a disruption in your income? What should you consider when reviewing your business’s insurance plan?

    Direct Hurricane Damage

    Review your property insurance for common threats. Be sure your policy includes coverage for the threats commonly associated with hurricanes, such as wind damage and falling trees. Note that many standard property insurance policies do not include coverage for common threats such as damage caused by flooding, power outages, or the cost for repairs specifically associated with building code compliance. (For example, if the electrical wiring in your building is not up to code, any additional cost incurred during storm repair to update the electrical system to meet code would not be covered).

    Don’t assume coverage is perfect. Even if you see that a threat is covered by your policy, note that the coverage for some items may be limited. For example, many policies will cover damage caused to your property by a fallen tree, but the cost of removing the fallen tree may be limited or not covered at all.

    Your policy may also may include coverage limitations for outdoor property such as fences and signs as well as personal property (like tools, equipment or stock) that is left outdoors. To help identify coverage and limitations, consider scheduling a policy review with your GSI Insurance Group Agent.

    Review your deductible. Some policies include a separate deductible for claims caused by a hurricane or named storm. Such a deductible is typically higher than the policy’s deductible for other types of claims like fire or theft.

    A hurricane deductible may be calculated based on a percentage of the value of property at the time of the damage. For example, say your building is valued at $100,000. Your policy includes a standard deductible of $1,000 and a separate “hurricane deductible” of 4%. If your building is partially damaged by a fire, you are responsible for the first $1,000 before the insurance company will kick in any funds. However, if your building is partially damaged by a hurricane, you are responsible for the first $4,000.

    Note that some states have laws regarding the application of such deductibles. To see if your state has special rules regarding deductibles, contact your Trusted Choice® Independent Insurance Agent.

    Floods, a Consequence of Hurricanes

    Floods are the most common and costly natural disaster in the U.S., according to FEMA. The definition of “flood” encompasses many sources of rising or flowing water and includes torrential rain and tidal surge. It’s no surprise that flooding usually accompanies a hurricane, and the damage it causes can be costlier and more widespread than that caused by a hurricane’s winds.

    It’s essential for you as a property owner to know that most property insurance policies do not cover flood damage. Flood insurance is typically available through the National Flood Insurance Program (NFIP).  Your Trusted Choice® Independent Insurance Agent at GSI Insurance Group is the best source to assist you in putting together a flood insurance plan for your business.

    Lost Income

    It’s easy to see how significant property damage from a storm could harm your business. But here’s something you may not know: The resulting loss of continued income is the leading reason so many businesses are never able to reopen after the storm has passed.

    The good news is that there’s a type of insurance designed to help businesses like yours maintain an income stream after the storm. It’s called business interruption insurance, and it provides income for your business to fulfill its financial obligations (like bills and payroll) as well as to mitigate financial losses due to fewer customers.

    Unfortunately, all too few business owners know about business interruption insurance, or they make the costly decision not to purchase it.

    Business interruption insurance can also mitigate supply chain disruption caused by a hurricane. For example, say your restaurant survived the storm with little or no damage, but your primary food supplier’s warehouse was destroyed. Even though your restaurant was not directly damaged, the financial consequence of the hurricane on your business is still significant. Ask your Trusted Choice® Independent Insurance Agent if it may be possible to amend your business interruption insurance policy to include coverage for your business should another business on which yours depends suffers crippling damage.

    Include Insurance in Your Disaster Plan

    You need a disaster plan for your business, and no disaster plan is complete without a review of your insurance coverage. For assistance, call your Trusted Choice® Independent Insurance Agent at GSI Insurance Group today.

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  • Are You a Management Consultant? Insure the Future of Your Business

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    Are You a Management Consultant? Insure the Future of Your Business

    Workforces have changed. Today, consultants are commonly found in strategic roles across businesses. The evolution began long before the pandemic. Decades ago, management consultants began to stake out functions where they could step into companies and other organizations, teaming with their management to map strategies to cut costs, improve customer relationship management, leverage data analytics, introduce new business processes, introduce new technologies, augment skillsets, make supply chains and procurement more efficient and effective, and in some instances, assume responsibility for functions, such as public relations, payroll or external workforce management. Those are just some of the ways in which management consultants engage with organizations.

    Large or small, management consultancies must manage the risks that accompany their operations. If you own a management consultancy, GSI Insurance Group, your Trusted Choice Independent Insurance Agent® can help you analyze and mitigate the risks with the right insurance coverage. Your agent will also touch base with you regularly to understand how your business is evolving and consequently, how your insurance needs are changing.

    What coverages does a management consultancy need?

    Professional liability coverage. As is true of other professionals, consultants are hired for their experience and knowledge. Irrespective of their expertise, mistakes happen. Someone misses a detail, or something happens that has a negative financial impact on the consultant’s customer. The customer sues if they believe the consultant failed them and cost them money. That leads to legal expenses and more if a court finds in favor of the plaintiff. In some instances, such a lawsuit could jeopardize the consultancy’s business and put an individual’s assets at risk, depending on court costs and the damages awarded to the customer.

    General liability insurance. If someone is injured on the job; if property is damaged by an individual working for the consultancy; or if remarks are made that are thought to be slanderous, general liability insurance can provide protection, particularly if legal action is taken. Costs can mount whether a consultant is at fault or not, and, as in the case of a professional liability claim, a court award can be sizeable.

    Additionally, when engaged by a company, government agency, or other organization, a consultant may be required to demonstrate that they have a certain amount of liability insurance before a contract is signed.

    Property insurance. In the event of a fire, a natural disaster, or theft, it’s important that your property is insured. In addition to rebuilding or repairing a facility, equipment may need to be replaced or an alternate work site may be required for the short term so that work can continue, making it possible for the consultancy to fulfill its contractual obligations even as a facility is being repaired or rebuilt.

    Clauses in these policies vary. Coverage for lost revenue may be included. Your Trusted Choice agent can assess your needs and determine which marketplace policies will be most appropriate for your management consultancy.

    Directors and officers liability insurance. A sole proprietor may not need this type of policy, a consultancy with directors and officers will most likely want the company to insure them in the event they need to defend themselves against a lawsuit or other legal costs associated with actions involving criminal or regulatory proceedings.

    Cyber risk insurance. Given the growth in cybersecurity crime, nearly every business needs this coverage, and management consultants are no different. They handle customers’ proprietary information or even personal data. As explained by the U.S. Department of Cybersecurity & Infrastructure Security Agency, this insurance helps organizations mitigate against the risk of a cybersecurity incident whether it damages an organization’s network, brings business operations to a halt or a hacker accesses proprietary or personal data. Such coverage is usually not included in liability policies.

    Automotive or fleet insurance. If a consultant or its employees drive a company vehicle or rent vehicles that are operated while doing the consultancy’s business, the company will need automotive  or fleet insurance. The policy may need to include comprehensive, liability, medical and property coverages.

    Other potential insurance needs. If a consultancy has employees, the business will need to look at coverages for them. Among those are: workers’ compensation, healthcare, life insurance and disability coverage.

    While management consultants have much to consider as it relates to insurance and risk mitigation, the good news is that we are available to help evaluate what coverage is needed and to identify the policies that will best meet the consultant’s needs. Call GSI Insurance Group today.

     

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  • Do You Need Employment Practices Liability Insurance?

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    Do You Need Employment Practices Liability Insurance?

    As a business owner, you’re likely familiar with the various risks and liabilities that come with running a company. However, one type of insurance that you may have overlooked is Employment Practices Liability Insurance (EPLI). EPLI provides coverage for businesses against claims made by employees regarding employment practices, such as wrongful termination, discrimination, harassment, or retaliation.

    The National Law Review explains that “EPLI provides coverage for claims made by employees alleging various employment-related wrongs such as wrongful termination, discrimination, harassment, and retaliation.” These types of claims can be expensive and time-consuming to defend, and EPLI can help cover the costs of legal fees, settlements, and judgments.

    Here are a few reasons why you should consider purchasing EPLI for your business:

    1.  Employment-related claims are common. Unfortunately, employment-related claims are not uncommon in the business world. Even if you have strict policies in place and follow all employment laws, an employee may still bring a claim against your company. EPLI can help protect your business against these claims and the associated legal costs.

    2.   It can save you money in the long run. Defending against an employment-related claim can be expensive, even if you win the case. EPLI can help cover the costs of legal fees, settlements, and judgments, potentially saving your business a significant amount of money in the long run.

    Forbes stresses the importance of EPLI for small business owners, stating that “even if a small business owner thinks they can handle any claims against their company, the reality is that lawsuits can quickly become expensive and time-consuming.” The article notes that a single employment-related lawsuit could potentially bankrupt a small business, making EPLI a wise investment.

    3.  It can protect your business’s reputation. If your business is faced with an employment-related claim, it can damage your reputation, making it difficult to attract new customers or clients. EPLI can help mitigate this risk by providing coverage for public relations expenses, which can help repair your business’s image.

    Insurance Journal highlights the increasing prevalence of employment-related claims and the importance of EPLI for businesses of all sizes, stating that “even if an employer does everything right, they could still find themselves facing a lawsuit.” EPLI can provide peace of mind and financial protection for businesses facing these types of claims.

    Is EPLI insurance right for my business?

    It’s required by law in some states. Some states require employers to carry EPLI coverage, so it’s important to check the laws in your state to see if you’re legally required to have it. Even if it’s not required by law, it’s still a good idea to consider purchasing EPLI to protect your business.

    If you’re a business owner, Employment Practices Liability Insurance is an important consideration. Even if it’s not required by law in your state, it can protect your business against costly and damaging employment-related claims.

    At GSI Insurance Group, your Trusted Choice Independent Insurance Agents®, we are trained professionals who can help you determine if EPLI would be a smart purchase for your business. After assessing your needs, we can recommend a selection of coverages that best suit your company’s unique needs.  

    Get a quote today!

     

     

     

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  • Commercial Umbrella Insurance: When General Liability Meets Risky Business

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    Commercial Umbrella Insurance: When General Liability Meets Risky Business

    Insurance considerations for businesses can be many and overwhelming, and even with the best coverage in place, there can still be limits. That’s where a commercial umbrella policy comes in. Designed to give businesses extra coverage for those costs that exceed policy limits, an umbrella policy can be a saving grace for businesses hit with a claim that results in legal costs, medical bills, damage to others’ property, and judgments and settlements — to name a few examples.

    How does commercial umbrella insurance work?

    Basically, umbrella coverage extends the coverage that a business already has, providing insurance coverage beyond the limits of general policies.

    Most businesses have general liability coverage as well as other coverages that pertain to the specifics of their business, such as commercial auto, hired and non-owned auto insurance, or workers’ compensation. Depending on the business’s risk level, however, additional coverage may be needed to provide extra payouts for substantial liability claims that can strike at unexpected times.

    Examples of what commercial umbrella insurance can cover include:

    • Customer injury (e.g., slip and fall injuries)
    • Employee injury lawsuits
    • Libel
    • Product liability
    • Property damage lawsuits
    • Reputational damage
    • Vehicular accidents

    What can’t be covered by a commercial umbrella policy?

    There’s a lot that commercial umbrella insurance can cover, but underlying coverages must be in place in order for a commercial umbrella policy to be effective, and oftentimes the umbrella policy insurer will require a certain amount of coverage for the underlying policies. So, for example, commercial umbrella may not provide any coverage for commercial auto claims if a company does not already have a commercial auto insurance policy for a specific amount of coverage in place.

    Additionally, commercial umbrella doesn’t extend all commercial insurance policies. Typically, this type of insurance doesn’t cover claims for insurances such as property or errors and omissions (E&O).

    Other examples of liabilities that commercial umbrella typically doesn’t cover are discrimination and malpractice lawsuits and business property damage.

    Who needs umbrella insurance?

    Commercial umbrella insurance isn’t necessarily for everyone, but with how quickly lawsuit costs can escalate and result in catastrophic losses for many small businesses, it is increasingly becoming a necessary coverage.

    Businesses that would most benefit from commercial umbrella include those with increased risks of exceeding their typical business insurance coverage limits. For example, a company that has commercial property that is open to the public has increased liability, because working directly with people in an area with high foot traffic exposes the business to lawsuits related to third-person injury (e.g., slips and falls).

    Businesses that own and/or operate many vehicles are also great candidates for commercial umbrella, as well as those that work in hazardous conditions, such as construction. Oftentimes, businesses like construction companies may be required to have a certain amount of coverage as dictated by a contract. Umbrella coverage can often bridge that gap. For example, say a general liability policy has a limit of $2 million and a contract requires a business to have coverage up to $5 million. Umbrella insurance can step in and cover the additional $3 million required by the contract.

    How much coverage a company should get depends on the industry and risk level. Properly assessing a company’s risk is crucial. First, it’s important to ensure the company is covered for the often-catastrophic costs of legal counsel, lawsuits, medical care, or other damages. Second, properly assessing risk will protect a company from paying too much for coverage that isn’t right for it.

    Is umbrella insurance right for my business?

    At GSI Insurance Group, your Trusted Choice Independent Insurance Agents®, we are trained professionals who can help you determine if umbrella insurance would be a smart purchase for your business. After assessing your needs, we can recommend a selection of coverages that best suit your company’s unique needs.

     

     

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  • Side Hustles and Entrepreneurism Have Risks: Are You Covered?

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    Side Hustles and Entrepreneurism Have Risks: Are You Covered?

    After businesses shuttered and U.S. workers were sent home at the height of the pandemic in 2020, a report from Dollar Sprout revealed that more that 27% of those with a side hustle rely on that income to pay their bills.

    They might be doing anything from tutoring, freelance writing, offering professional consulting services, walking dogs, or delivering groceries, to name a few. The Dollar Sprout report also revealed that:

    • Of those with a side hustle, 18% expect to turn it into a full-time source of income.
    • Although 23% lost side-hustle income because of COVID-19, 42% remain hopeful about their prospects.

    While the pandemic reshaped the workplace, the prevalence of home-based businesses had already given rise to ETSY, the fourth largest U.S. e-commerce site by monthly visits, where people sell everything from crafts and antiques to handmade toys and items for weddings, among other things.

    The community of freelancers is increasing steadily. The Freelancers Union, established in 1995, says:  

    • There were 57 million U.S. freelancers in 2020.
    • Americans rack up more than 1 billion freelance hours each week.
    • Freelancers contribute more than $1 trillion annually to the U.S. economy.

    New models of work create different insurance requirements

    As individuals take on side hustles to generate more income or out of a desire to operate their own businesses, they also take on risks. If you have a side hustle, you need to insure yourself accordingly.

    Liability insurance tops the list. We can help you evaluate your side business, assess your existing coverages, and determine if you need a professional or business liability policy in addition to personal insurance. As a highly trained professional, your Trusted Choice agent can advise you of the specific or often overlooked coverages you should consider, and then assemble competitive product choices for you from the insurance marketplace.

     Why is this so important? Even the most benign gig could destroy an individual financially in the absence of appropriate insurance coverage. Imagine a child takes a nasty tumble in your home while there for a piano lesson or a client accuses you of plagiarism: You will be liable. Or consider the costs you would be responsible for if the dog you’re walking breaks loose and attacks a pedestrian. The right policy can protect you.

    Cyber insurance is also a growing consideration. If you set up an online store to sell crafts or homemade baked goods and a hacker steals your customers’ credit card data, what would be the cost to you? Would you be able to recoup your losses? Cyber insurance can protect you in the event of a breach whether your computer is hacked or your phone containing private information is stolen.

    Auto insurance. Some automotive policies are for personal use only. Others may cover a business-related accident, but with limited coverage.

     If your side hustle involves driving and you get into an accident, do you know whether your insurance will cover you? If not, check with your Trusted Choice agent before an accident occurs.

     Even if you are employed as a delivery driver, you need to know whether the company’s insurance covers you and what the limits are for collision, liability, and medical. Talk with your independent agent, so you’ll know if you need a commercial policy for adequate protection.

    Fire insurance. You probably have a homeowners or renters policy that provides coverage for losses incurred in a fire.

     But what happens if you operate a home business and spent thousands of dollars on office equipment? Will the insurance extend beyond your personal belongings to cover that equipment? Or, for that matter, will it cover the materials you purchased to make the items that you sell or the business inventory you store at home?

    Find answers before you need to make a claim, and avoid potentially devastating surprises. We can explain where your personal coverage ends, and where the gaps are in your business coverage.

    As your business grows, be sure to inform your agents, so they can work with you to adjust your coverages and ensure the policies keep pace with your needs — especially if you hire workers or engage a contractor. Your agent can advise you about workers’ compensation insurance and employment practices liability insurance. Your agent also can review your contractor’s proof of insurance to determine if it meets your business’s needs.

    Think of your GSI Insurance Group agent as a business partner who has your interests at heart. Your agent will work with you every step of the way as you grow your side hustle and reap the fruits of your efforts.

     

     

     

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