Common insurance questions, answered.

Got insurance questions? We’ve got the answers to the most common questions we are asked, everyday. And to make navigating the answers easier, we’ve broken the frequently asked questions into several categories. Nice and simple.

Personal Insurance

Should I have my home and auto insurance with the same company?

Absolutely YES! If you can package your home and auto together with the same insurance company you should do it. There could be significant cost savings involved, in addition to other benefits.

Do claims and tickets affect my insurance premiums?

Yes. Claims for homes and claims and violations for autos do make a difference in the rating of your policy. The impact depends on the severity of the claim and if you were at fault. Tickets and accidents will impact your premiums for a three-year period while major tickets such as DUI’s and careless driving can impact your rates for five years.

Is my credit considered when rating my policies?

Yes. Your credit will be checked when an insurance company is rating a home or automobile policy for you. This is an insurance score, which is slightly different than your credit score. The insurance score does not show as a “hit” on your credit, like other credit inquiries (multiple credit inquiries can actually lower your credit score).

Business Insurance

Is Business Insurance Tax Deductible?

Business insurance is tax deductible, as long as the coverage is for the purpose of operating a business, profession, or a trade. Businesses may not deduct their business insurance premiums if the coverage is for the purpose of a self-insurance reserve fund or a loss of earning insurance policy.

What is the difference between general liability and professional liability?

At a 10,000 foot view general liability is slips, trips and falls meaning bodily injury and/or property damage to a 3rd party. Professional liability is protecting your business against bad advice or guidance. Any time you give professional opinion, advice or guidance you are opening yourself up to a professional liability claim.

Should my small business have business income insurance?

Business income provides reimbursement for lost revenue after a covered insurance loss. For a company that does not have a physical address that is crucial to its business, such as a contractor, business income is probably not necessary. For store front or main street businesses, like a coffee shop, business income is a must.

Life & Health Insurance

What’s the difference between term and whole life insurance coverage?

Term life insurance is coverage for a specified period of time or “term”, for example 5 years, 10 years, 15 years, 20 years,30 years etc. Term insurance is considered temporary. At the end of the policy period, coverage stops without any cash value.

Whole life insurance provides you with protection as long as you live. Annual premiums are averaged over your lifetime, so the premium does not increase as you get older. Whole life policies have cash value which can be used for a variety of purposes including paying off loans and paying the premium on your policy.

What is universal life insurance?

A universal life policy combines features of both term and whole life insurance. Universal life not only offers life insurance protection, it also accumulates cash which is credited with tax deferred interest earning. The amount you earn is dependent on current interest rates. The premiums you pay are added to the account value portion of your universal life policy. Each month, a deduction is made from the account value to pay for life insurance costs, other benefits and riders, and a monthly administrative fee. Universal life is a flexible premium policy allowing you to vary the timing and amount of your premium payments.

General

What is an Independent Insurance Agent?

What defines an Independent Insurance Agent is our ability to shop your insurance through multiple insurance companies. Our job is help you create the best coverage package to meet your needs and then go to the market and find the most competitively priced insurance company for those coverages.

Does changing my insurance company affect my credit score?

Changing your insurance carrier has NO effect on your credit score. You can change as often as you like and it makes no matter to your credit score.

I had a claim, now what?

We know that “stuff happens” and there will be the unfortunate instance where you will have a claim to report. The majority of our companies have 24/7 claim centers and we would first advise you to call your insurance company in which you had the claim and report it to an authorized representative. That being said, there are some advantages to calling our office to speak to us about your claim. Our dedicated agents can advise you on what the effects of filing your claim would be, and explain how the claims process works. Hopefully taking the headache out of what already is a painful process. If it is an emergency, you should call your insurance provider directly, to expedite the process.