Workers’ compensation gives employees benefits and remunerations for any injury, illness, or accidents that happen during the course of fulfilling their duties and responsibilities related to their employment. It covers the medical expenses and costs of the employee. It also compensates the workers on the income and pay lost due to work-related injury or illness. Other benefits include disability benefits, death benefits, and employee rehabilitation.

Inaccurate Payroll Estimations

Overestimating and underestimating payrolls are two common mistakes which an employer can make while determining workers’ compensation benefits for employees. Inaccurate estimations of the projected annual payroll may cause drastic changes in premium. Underestimating will lead to an increase in the premium, whereas overestimation will cause the employer to pay much more than is required to cover the incident. Though the premiums are refunded to the employer during the yearly premium audit, the effect of such overestimation is quite negative. This is because the amount so refunded represents the money that stayed with the company throughout the financial year instead of being invested in more profitable ventures. Therefore, it is very important to be accurate and precise when predicting and compiling the annual payroll of an employee.

Unverifiable Workers’ Compensation Insurance

In a company or within a business, assigning work to subcontractors and independent contractors is quite common. However, before these third parties begin to provide their services, they must present proof, evidence, and verification of their workers’ compensation insurance. Although the subcontractor is tasked with delivering the workers’ compensation insurance for their workers, the main contractor must ensure that the subcontractor has made coverage available for all the workers. Lack of evidence of their insurance during the yearly premium audit could put the business at risk of being charged for negligence.

Improper Handling of Workers’ Compensation Claims

When an employer handles the claims of their workers poorly, there will be an increase in the cost of workers’ compensation insurance. It isn’t possible to automatically measure or check the number of claims mismanaged and the cost resulting from such mismanagement. However, a system called experience modification (MOD) is used to measure claims and evaluate their management.

This system measures the company’s claim experience through a numerical representation based on how a company can be likened to another company within the same industry with similarly categorized employees. The average MOD is positioned at 1.00. This number, however, changes per employee depending on the number and severity of accidents experienced.

Every business must ensure that its employees are properly provided for under the workers’ compensation insurance policy. For more information and guidance, contact First Insurance Solutions today. We are ready to assist you with all your business insurance needs.

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What Is Temporary Car Insurance?

Temporary car insurance provides all the coverages as standard insurance, only for a shorter duration. This auto policy is not offered by most insurance companies, so it can be difficult to find. This is because providers stand to gain more from standard policies versus short-term ones. Even if you see a few providers that offer this package, they usually will not allow you to buy less than one month of coverage.

If you are considering getting temporary auto insurance, keep in mind that it might be a bit more challenging than obtaining a standard policy and will cost more. Temporary car insurance will cost you about $15 a day. This is a $5 addition to the standard coverage, which averages $10 per day. Although there are a few reasons you might need temporary coverage, a traditional policy can save you lots of money because it is lower in cost.

Who Might Need or Consider Temporary Car Insurance?

Let’s take a look at some of the reasons you might be looking for a short-term auto insurance policy.

  1. Coverage While Shopping for a Standard Policy

    You can buy temporary car insurance if you are preparing to purchase a standard auto insurance policy and want to have more time to shop around or check out a particular company. During this period, you can learn one or two things, including how to lower your rates. A short-term auto policy will give you enough time to shop the market, compare quotes, and select a provider.

  2. Borrowed Vehicle

    If you borrow a friend’s car only for a few days, you may decide to purchase a temporary insurance policy. In this case, you can’t opt for a traditional policy because it is only for a short time. You will need non-owner’s insurance to cover a car that’s not yours. A policy for non-owners will put your mind at rest that it is protected should an accident occur.

  3. Rented Car

    You will be required to purchase a short -term or rental insurance if you are renting a car that doesn’t have a standard car coverage policy.

  4. Test Driving a New Car

    It is always best to have insurance in place before you finalize the purchase of any vehicle. However, if you just purchased a vehicle and have not chosen a standard policy, you may choose temporary car insurance just to keep you covered until you purchase a standard policy.

  5. Visiting a Foreign Country

    If you are a visitor or tourist in the U.S. or any other country, your existing auto insurance may not cover your driving in another country. Hence, you can buy a temporary plan to cover the duration of your trip. Some countries also require different coverages from your resident country, so this allows you to have the coverage that the new country requires.

How Do You Get Temporary Car Insurance?

There is no special way to get temporary car insurance outside the regular way of getting your traditional auto policy. Shopping for short-term car insurance is the same as regular auto insurance.

Here is a summary of the steps you have to follow:

  • You have to know the type of coverages you want
  • Take time to shop around to compare quotes before picking the deal that best suits you.
  • Check the market for different quotes. This may take time, so it is important to give yourself enough time to make an informed decision. An agent or broker can help with this process.

Summary

Many traditional car coverage providers do not offer short-term policies. It can take some time before you settle on the best deal. A short-term auto policy is more expensive than a traditional one, with an average of $15 daily, while regular or standard coverage is around $10 per day. If you intend to drive throughout the year, a standard policy should be your go-to because it saves you money.

Most auto policy providers that offer temporary coverage will not allow you to buy less than one month of coverage because it may amount to a loss for them.

Do you have any additional questions about your car insurance? Contact the experts at First Insurance Solutions today. We are always eager to assist you with all your coverage needs.

Home insurance, also known as homeowners insurance, provides several benefits. It offers dwelling coverage, structural coverage, personal property coverage, personal liability coverage, guest/ visitor medical protection, and additional living expenses coverage. Homeowners are advised to purchase any of the available policies to protect against emergencies and huge financial expenses for repair works.

When dealing with home insurance, there are several common misconceptions. Understanding these misconceptions and the truth will help you to make informed decisions as you shop for the right coverage for your home. Here are a few common home insurance misconceptions.

  1. Home insurance will only protect your property and your belongings.

    Home insurance does not only protect your property or belongings. It also protects guests and visitors. It provides liability coverage when someone not living on the premises sustains an injury on your property. If a guest trips and falls while using the stairs or gets hurt in the pool, you can be sued for damages. Your plan can help pay for the legal expenses and medical bills if you are found guilty.

    Like every Insurance policy, there is a limit to your coverage cost, and you can increase it even further by purchasing an umbrella policy. Reach out to your agents to discuss the available options.

  2. A standard home insurance policy will cover all types of water damage.

    Your home insurance covers several damages but doesn’t cover all types of water damage. Most providers exempt coverage for floods. It is no surprise that most plans do not include flood insurance because the natural disaster causes one of the most severe damages to properties. You must purchase additional coverage or a separate policy for flood coverage.

    Not every community can provide flood coverage to homeowners, so you should ask if your community offers such before purchasing a home. When purchasing flood insurance, you should ask your provider what it covers and what it doesn’t.

  3. Your home insurance policy covers everything you own, including valuables.

    No, your policy doesn’t cover everything you own as there are certain exceptions. There are limits to what is covered, and some types of losses are exempted. If you own jewelry made with precious stones or high-value artwork, you have to buy additional coverage for them. Your valuable collection needs extra protection for its coverage.

    Also, you may only be covered for the actual cash value of your belongings, which means that you are only paid the value of the property at the time of damage. If you have old furniture that gets damaged, the compensation you are entitled to would be the depreciated value of that furniture. This means that the amount you receive for your possessions might not be enough to replace them.

  4. Your home insurance policy continues even when the building is vacant.

    Many people believe that home insurance will cover your home even if it is vacant. Ask your provider about coverage when your property is vacant and for how long. Vacant properties are at a higher risk of theft, burglaries, and other damages. Your current policy might already cover you for losses like theft while you’re away, but it is best to check and understand all of your coverage details and limitations. Many home insurance policies will not cover a loss if your home is unoccupied or vacant for more than thirty days.

  5. Home insurance does not cover replacement or repair costs for natural disasters.

    Most coverage policies protect homeowners from loss caused by natural disasters, including lightning, windstorm tornadoes, volcanoes, or hail. However, there are a few exceptions. Many home policies do not cover floods and earthquakes. If your property is in a flood hazard area, it is best to buy additional flood insurance to make sure that you’re covered. The same goes for areas that are prone to earthquakes.

You do not have to wait to be in a danger zone before purchasing this additional coverage because flooding can happen anywhere. If you don’t live in a flood hazard zone doesn’t mean that you are safe from danger.

If you want to learn more about home insurance policy, contact the experts at First Insurance Solutions. We will assist you with all your coverage needs.

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What Is Commercial Auto Insurance?

Commercial auto insurance, also known as commercial vehicle insurance, covers different vehicles used to carry out work duties. It does not cover personal automobiles that are used for business purposes but are strictly limited to business-owned automobiles. Coverage depends on the specifications of your business. Your policy can include damage to your vehicle, damage to other people’s property, and injury to others.

 Who Needs Commercial Auto Insurance?

  • Do you conduct a service with your car?
  • Do you require higher limits of liability because of the nature of your work?
  • Do you transport a considerable weight in tools or equipment or own a towing trailer used to conduct your business in your vehicle?
  • Do your employees drive your automobile in the course of doing business, whether making deliveries, chauffeuring, or running work errands?

If your answer is yes to any of the questions above, then this policy is for you. Here are some specific examples of how a vehicle can be used in a business context:

  • Pizza delivery
  • Chauffeuring: limousine service or taxi service
  • Taking real-estate clients to see different listings
  • Transporting work equipment via a trailer
  • Doing construction work
  • Taking tourists to various attractions
  • Transporting flammable or hazardous materials
  • Hiring your vehicle out to tow other automobiles

What Does Commercial Auto Insurance Cover?

You can customize your auto insurance policy to include multiple individual coverages that suit your specific business needs and the use of your vehicles. If the vehicle ever gets damaged through bad weather, head-on collision, vandalism, theft, or some other covered event, you can file a claim and receive compensation that will help to cover the cost of repairs.

You are also covered for liability costs if you or any of your employees are at fault in an accident and injure another driver or destroy their property. The injured person may sue for damages or file a claim with your insurance company. In either situation, your policy will pay compensation to the driver. Like every other insurance plan, your commercial auto insurance has a limit and will only cover the costs of the claim up to your policy’s limit.

If you want to increase your coverage range, you can buy a commercial umbrella auto plan. This plan kicks in when the costs of your liability claims exceed the limits of the vehicle liability policy. You can never be overprepared for emergencies, so the umbrella policy gives you maximum protection.

What If You Already Have Personal Auto Insurance?

Having a personal auto insurance policy does not affect getting a commercial vehicle plan because both offer different coverages. Your personal auto plan only covers you when you use your vehicle outside of work and while commuting. If you use your vehicle for any business-related purpose, your personal auto policy will not cover any damage that happens during this time.

Driving your car to and from work without using it for any commercial purpose means it’s covered under your personal auto plan. If you use it occasionally for commercial purposes, you must ensure that you have enough liability coverage under your personal policy or purchase commercial auto insurance.

Contact your agent to discuss if you use your vehicle for work errands because your employer may be obligated to purchase a non-owned business liability endorsement for these situations.

What Kind of Vehicles Can Get Commercial Insurance?

There is a wide range of vehicles that can be covered by a commercial policy. They include cars, tractors, trailers, vans, buses, and construction vehicles. Many of these vehicles are not eligible for a personal policy, like trailers and tractors. These require a wider limit and coverage because of the nature of use. They are used to run work errands at riskier times and have a significantly higher chance of getting into accidents than personal cars.

Do you have any additional questions about your car insurance? Contact the experts at First Insurance Solutions today. We are always eager to assist you with all your coverage needs.

Hotels and motels are hospitality establishments and are always at risk of damages caused by guests, damages to guests, or natural disasters. No business owner wants to have to spend out-of-pocket costs that aren’t related to business growth.

Hotel hospitality insurance is specifically designed to meet the needs of hospitality establishments. It is a package policy, which means one policy contains several individual coverages. The coverages can be customized to suit the needs of each establishment.

Types of Hotel and Motel Hospitality Insurance

Hotel and motel hospitality insurance policies include lots of coverages. These coverages can be grouped into two broad types: liability coverages and property coverages.

Liability coverages include

  • Workers’ compensation
  • General
  • Food-borne illness
  • Liquor
  • Premise’s pollution
  • Employment practices
  • Cyber
  • Commercial vehicle

Property coverages include:

  • General property
  • Equipment breakdown
  • Crime insurance
  • Business interruption
  • Food spoilage
  • Utility interruption

What Affects the Cost of Hotel Insurance?

Hotels provide hospitality services to guests which exposes them to lots of potential risks. A hotel can be sued by a guest who sustains an injury while using a property facility. Food poisoning or food-borne illnesses that develop after eating at the establishment can also lead to lawsuits. Most hotels have hazardous fixtures like indoor pools, which can cause grievous accidents or death. Hotels and motels are exposed to many perils. They need to have robust insurance policies to offer sufficient coverage to help protect against these perils.

Hotel Insurance Coverage Explained

Ensure that you purchase maximum coverage for your hotel and motel because businesses such as these usually have high risks. Protect yourself in case of a lawsuit or property damage to avoid out-of-pocket costs that can be detrimental to business growth. The two main types of insurance are liability and property coverage. Here are some more details of what is included under each.

Liability insurance covers things such as:

  • Worker’s Compensation – It covers the costs of medical expenses in case your employees get injured while on duty.
  • General Liability – It covers the financial costs for injuries sustained or property damaged by guests.
  • Foodborne Illness – It covers the liability cost of a lawsuit if the food served in your hotel is spoiled and contaminated.
  • Liquor – If a guest gets drunk at your hotel and causes property damage or injuries to themselves or others, the costs will be covered.
  • Premises Pollution – If your property gets contaminated with mold or other pollutants that cause grievous health conditions, you may face liability for medical and clean-up costs which are covered under this type of insurance.
  • Employment Practices – If you ever get a lawsuit from an employee, this coverage will protect you from high court expenses.
  • Cyber Liability – This plan covers all internet-related losses, including cybercriminal and data breaches. Every hotel is at risk of cyber-attacks aimed at defrauding the guests.
  • Commercial Vehicle – This covers all vehicles used by a hotel such as vehicles that are used to cart people around town and take them to and from the airport.

Property insurance includes things such as:

  • General Property – If any of the hotel’s furniture is lost or damaged, general property insurance will cover the costs.
  • Equipment Breakdown – If your computer system fails, causing significant revenue loss, this plan ensures that all your lost income will be reimbursed.
  • Business Interruption/ Loss of use – If your guests must vacate the building because of an emergency like a fire, this coverage will provide you with enough income to pay your employees and recover lost wages.
  • Crime Insurance – This coverage protects your hotel if an employee is involved in illegal activities on the job.
  • Food Spoilage – Food spoilage due to poor storage or power outage will be covered under this coverage
  • Utility Interruption – This plan protects from issues with utilities and associated costs. You may need to move the guests to another location. The costs that arise from such a situation will be covered with a utility interruption policy.

Are you looking for an affordable business insurance policy? Contact the experts at First Insurance Solutions today. We look forward to assisting you with all your insurance needs.