Insurance

Protecting From Cyber Attacks

Posted on by Aspen Insurance Agency

Computers are everywhere: homes, business, libraries, schools, even in your pocket, if you own a smart phone. Computers are used for entertainment, business operations, navigation, government administration, heating, and cooling: the list goes on and on. As ubiquitous as computers have become, criminals are increasingly attempting to extort money or use our personal information to create a duplicate of our identity, destroying our finances through impersonation.

Rise in Computer Crime

Computer crime is not decreasing:

  • In 2020, 300 million people were affected by data breaches: 80% of the nation’s population.
  • 91% of organizations experienced at least one damaging cyber attack over the past two years. 60% had two or more over the past two years.
  • 1 in 4 businesses experienced a cyber event in 2020.
  • Ransomware attacks (where villains lock computer until a ransom is paid for release) exceeded one million dollars in 2018: in 2020, it was more than $30 million!

As a result of the rise in computer crime, 78% of risk managers now purchase some level of cyber insurance, up from 34% in 2011.

Business Cyber Protection

As the majority of cyber criminals are overseas where law enforcement may not be able to reach. Business owners might evaluate their internal business cyber protection. Even well-defended companies experience cyber losses. What can a business owner do?

First and foremost, each business owner should have a robust cyber security plan in place. One that is continually updated as new weapons are wielded by criminals.

To begin with:

Maintain A Robust Perimeter Defense: Many networked computer systems are protected by a firewall: think of a firewall as the castle wall. The wall keeps invaders out allowing entry only through a protected gate. The firewall is absolutely the first line of defense. However, be concerned if it is the only line of defense. If the walls are breached, invaders may be inside with complete access to customer data and individual computers.

Change Passwords every 30 days: over 55% of unauthorized access is from “spoofing” a legitimate user. Criminals have become sophisticated in their use of social media and publicly available information to induce employees to click on links installing malware software on your systems. Such malware lies hidden tracking every keyboard click, including the capture of passwords, customer social security numbers and birthdates and a lot more. By changing passwords, it reduces a criminal’s ability to impersonate your employees.

Install Anti-virus Security Solutions: Install products such as Norton or McAfee on all computers and keep the software up to date. In 2020, 360,000 new malicious files were detected each day. Current virus software will capture and isolate the software for review and deletion, before inflicting damage.

Restrict Browsing: Every company uses internet browsing for business purposes. However, criminals will upload malware to appear as a seemingly innocent picture or video (cute kittens, romping puppies!) which, when clicked upon, is designed to infect the computer without the user knowledge, then seek and infect other computers on your network.

Minimizing Risk of Cyber Attacks

Six of ten small to medium sized business (under $250 million annual revenue) have no cyber insurance protection. Business owners should consider the cost of losing all business data or paying a ransom for locked out computers and the impact these situations represent. Consider investing in risk management protection by expanding coverage such as:

  • Breach Response Costs
  • Cyber Extortion/Ransom
  • Business/Dependent Business Interruption
  • Systems Failure/Dependent
  • Systems Failure Digital Asset Recovery
  • Cyber Crime (Social Engineering, Funds Transfer Fraud)
  • Bricking

Speak to your Aspen Insurance industry expert to discuss possible options expanding your cyber security insurance and general liability insurance.

Aspen Insurance Agency is in Denver, CO servicing clients nationwide. We are a family run business working with multiple insurance carriers to offer our customers the coverage they need at the lowest possible cost. We offer a wide range of personal, commercial, and professional insurance to residential and commercial customers enabling the cheapest rates available. Call to speak to one of our insurance professionals and see how painless insurance shopping can be.

5 Most Common Business Lawsuits

Posted on by Aspen Insurance Agency

The United States are a litigious society: every business must be aware of and protected from suits brought for any number of reasons. However, there are five types of suits more common than all others. Most, though not all, may be covered by insurance.

1. Employment Discrimination and Wrongful Termination

Many lawsuits filed against businesses are based on allegations of discrimination, harassment, retaliation, or wrongful termination. Most workers are protected from these acts by federal anti-discrimination laws, including:

  • Title VII of the Civil Rights Act: Bars employers from discriminating against workers based on sex, race, religion, color, or national origin.
  • Pregnancy Discrimination Act: Prevents employers from discriminating against a woman because of pregnancy or a related condition.
  • Equal Pay Act: Requires employers to pay men and women the same wages if they perform equal work in the same workplace.
  • Age Discrimination in Employment Act: Prohibits employers from discriminating against employees ages 40 or older based on their age.
  • Title I of Americans With Disabilities Act (ADA): Prohibits discrimination against qualified employees who have a disability.

Many states have enacted their own anti-discrimination laws protecting workers. Both state and federal laws apply to applicants for employment as well as employees.

Harassment – Retaliation – Wrongful Termination

Harassment and retaliation are forms of discrimination. Harassment is defined as unwelcome conduct based on race, color, religion, sex (including pregnancy), national origin, age, disability, or genetic information. In a harassment claim, the alleged perpetrator is often a manager or co-worker; the plaintiff claims they reported the harassment to the employer who failed to stop it.

Retaliation is the termination, demotion or other action taken by an employer to punish the employee for filing a discrimination complaint or lawsuit.

Wrongful termination is firing an employee in violation of the law. Most wrongful termination claims against employers are based on allegations of discrimination, for instance firing an employee due to their age.

Small businesses are typically more vulnerable to employment-related lawsuits. Many small companies do not employ human resources professionals to ensure internal personnel actions comply with federal and state laws.

Claims alleging discrimination and other employment-related acts may be insured under an Employment Practices Liability (EPL) policy.

2. Discrimination Suits Not Based on Employment

All discrimination suits are not always brought by employees. Suits may be filed by customers, suppliers, patients, vendors, and other individuals with a connection to the business. For instance, a foreign-born customer sues a restaurant for discrimination alleging the wait staff made derogatory remarks about her native country and then refused to serve her.

Some EPL policies cover discrimination claims filed by individuals who are not employees.

3. Wage Law Violations

Many lawsuits filed against employers are based on allegations that the employer violated a federal, state, or local wage law. These laws are collectively called wage and hour laws.

The Federal Labor Standards Act (FLSA) sets the federal minimum wage. It also governs child labor, recordkeeping, and overtime pay. The FLSA creates two categories of workers, exempt and nonexempt. Generally, nonexempt employees are eligible for overtime pay while exempt workers are not. Many states and municipalities have enacted their own laws regarding wages and overtime pay.

Wage and hour suits are often based on claims that the employer failed to pay either the minimum wage or overtime pay. Workers may also contend that the employer avoided paying overtime by misclassifying them as independent contractors.

Suits based solely on allegations of wage and hour law violations are not likely to be covered by insurance. These types of law suits are not covered by general liability policies and are specifically excluded from employment practices and directors and officers liability policies.

4. Torts

Many suits filed against businesses by third parties are based on torts: violating a person’s civil rights. Two types of torts may lead to lawsuits against businesses: unintentional torts (negligence) and intentional torts.

Negligence committed by a business owner or employee may lead to an accident that causes personal injuries or damaging personal property. The injured party may sue the business or the employee for bodily injury or property damage. Intentional torts like false arrest and wrongful eviction can also generate suits against businesses.

Claims against a business for bodily injury or property damage may be covered under a general liability policy. Claims based on certain types of intentional torts are also covered by liability policies under personal and advertising liability coverage.

5. Breach of Contract

A business owner breaches a contract when he or she fails to comply with its terms. Most claims based solely on breach of contract are not typically covered by liability policies. Employers still may be able to avoid the risk of non-performance through the purchase of a surety bond.

We recommend discussing risk management and mitigation protection with your Aspen Insurance Advisor who can give trusted advice on protections for yourself and your business through small business insurance.

Aspen Insurance Agency is in Denver, Colorado, and services clients nationwide. We are a family run business working with multiple insurance carriers to offer our customers the coverage they need at the lowest possible cost. We offer a wide range of personal, commercial, and professional insurance to residential and commercial customers enabling the cheapest rates available. Call to speak to one of our insurance professionals and see how painless insurance shopping can be.

Does Homeowners Insurance Cover A Fallen Tree?

Posted on by Aspen Insurance Agency

At Aspen Insurance we don’t know the answer to the question; “if a tree falls in a forest and no one is around to hear….”. We do, however, know the answer to the question “if a tree falls on my home, will I be able to file an insurance claim?”.

Trees are a lovely and welcome addition to a homeowner’s property. Trees bring shade, block the wind, provide privacy and add a visual counterpoint. Unfortunately, the benefits of trees may be offset by the disadvantages of tree removal, especially for trees reaching end-of-life. Trees may be struck by lightning, infected by boring insects or, simply reached the end of their natural life span, no longer having the ability to withstand wind or intense weather.

And, it’s not just trees in our yard we need be concerned about: we should also keep in mind the possibility of trees falling from a neighbor’s yard. Even though it was not our tree falling in our own yard, we still may be financially responsible for removing the fallen tree and repairing the damage. Whether your homeowner’s insurance policy includes coverage for fallen trees depends on several factors, including the reason the tree fell and the type of resultant damage.

Does Homeowners Insurance Policies Cover Falling Tree Damage?

The answer to the question “am I covered?” is, ….“it depends”. Homeowner’s insurance policies typically protect the home and other structures, such as a fence or shed against specific causes of loss. Covered risks typically include damage caused by wind. If the tree falls in a high wind, then yes, homeowner’s policies will typically cover the loss and help pay to repair the damage, assuming the tree was in good health.

However, home/house insurance will not cover loss or damage caused by either negligence or a maintenance-related issue. If the tree was not n good health, your claim could be rejected as it is expected that you, as a homeowner, are maintaining your property including proactively removing dead vegetation, structures and trees past useful life.

How big a risk is a tree falling on my house? Typically, 4% of all claims are classified as “non-theft property damage”, the category under which tree claims would fall. So, 4% of claims indicates this not a risk considered extremely likely. However, as the average claim in this category is over $5,000, the severity of the risk is one we should seriously consider trying to mitigate.

What if A Tree from my Property falls on Neighbor’s Property?

You would typically be considered responsible if negligence on your part was a contributing factor to the tree’s falling. That is, if the tree in question was dead or at end-of-life and you had ample warning to safely remove the tree. For instance, your neighbor sends you a registered letter pointing out trees in your yard which could damage their home or property.

If the tree which fell was healthy, you would not normally be considered “at fault”.  Your neighbor will likely have to file a claim through his or her own insurance.

Does Homeowner’s Insurance Cover Tree Debris Removal?

Expect your homeowner’s insurance to cover the cost of repairing your house as well as removing fallen branches, leaves and other detritus. If a tree damages a structure on your property, home insurance may help cover the cost to remove the tree, normally up to $1,000, depending on your policy and the level of selected coverage.

If a tree falls without causing damage to any property structures, homeowners’ insurance likely will not cover the cost of removing the debris.

The scope of your insurance coverage is best understood by reviewing the homeowner policy language. This informs you of what your insurance carrier claims adjuster will do. Absolutely, feel free to speak to your Aspen Insurance agent who is well experienced in helping ensure you are well protected.  

Does Homeowner’s Insurance Cover Damage to A Car?

Homeowners insurance will not cover damage for a tree falling on your car. However, if you have comprehensive coverage on your car insurance policy, you may be able to file an auto insurance claim as comprehensive coverage helps pay to repair damage caused by falling objects.

Tree Falling Summary

Homeowners living in areas surrounded by many tall trees may wish to meet with their Aspen Insurance Agent to review homeowner’s coverage and ensure they have appropriate coverage to protect against all potential risks, including falling trees. Especially, if the height and size of trees could put your home or other structures at risk.

Aspen Insurance Agency is in Denver, CO and services clients nationwide. We are a family run business working with multiple insurance carriers to offer our customers the coverage they need at the lowest possible cost. We offer a wide range of personal, commercial and professional insurance to residential and commercial customers enabling the cheapest rates available. Call to speak to one of our insurance professionals and see how painless insurance shopping can be.

Are you ready for this year’s Tax identity thieves and IRS scammers?

Posted on by Aspen Insurance Agency

Do you know the signs of your data or network being compromised… or what about your identity being stolen?

No judgment…we promise! Most of our clients are not until we make them aware which is why we decided to create this for our clients and the community. Most consumers do not know until it is too late. So, by being proactive (like charging your phone before you go to bed) well then, this 2-minute read will give you some easy steps to put on the calendar and make this a part of your routine.

Trust us – If you have not had to deal with Identify theft – you do not want to!!

Here are some signs your identity might have been stolen:

  1. Unfamiliar or unauthorized credit card charges.
  2. Missing statements or invoices
  3. Missing utility bills
  4. Suspicious activity on bank or credit card statements.

Tips to help keep your “electronic life” safe and secure:

Your Home Security network – Keep your home operating system updated with its latest security update – setting this feature on “automatic update” is a little step that can go a long way

Strong Passwords – It sounds obvious but most people have the same password for everything. HINT: Create two or three passwords and rotate using them.

Taxes – File your tax return on a secure network or at home. Do no do it at your office or on a public Wi-Fi. Before you give your information to someone to file your taxes make sure you have vetted them properly.

Tax Time “burglars”!

Unfortunately, with all of your information in one place at one time, it is very common to see these scammers ramp up their efforts to steal the information of millions of people.

To start fighting tax identity theft:

  • Protect your Social Security Number throughout the year. Do not give it out unless there is a good reason, and you are sure who you are giving it to.
  • File your tax return as early in the tax season as you can.
  • Use a secure internet connection if you file electronically or mail your tax return directly from your local post office.
  • Research a tax preparer thoroughly before you hand over ANY personal information.
  • Check your credit report at least once a year for free at annualcreditreport.com. Make sure no one has opened a new account in your name.

If you suspect you have been victimized by identity theft, take the following steps:

  1. File a claim with your identity theft insurance, (if you have it).
  2. Notify your mortgage, primary bank, credit card companies of your stolen identity.
  3. File a report with the Federal Trade Commission.
  4. Contact your local police department.
  5. Place a fraud alert on your credit reports.
  6. Freeze your credit.
  7. Sign up for a credit monitoring service if offered.
  8. Tighten security on your accounts.
  9. Review your credit reports for mystery accounts.
  10. Review credit card and bank statements for unauthorized charges.

Many consumers may fail to realize that their cybersecurity insurance policy (if they have one -whether it is a personal or a business policy) may not cover identity theft.

A 15-minute review with one of our insurance advisors, might not be able to save you 15% or more…but it can go a long way toward understanding what our value is with our clients when it comes to being an advisor and educating them about their risk and facilitating a coverage analysis with a policy review which is distinctly different from the one-size-fits-all insurance offered by today’s trendy and very successful direct-to-consumer insurance providers and ad campaigns.

Why pay for insurance if it is not the coverage you want and need?

What is the best way to find out if you have the right coverage – with the least number of headaches?

Call Aspen Insurance Agency, today, and we will do a free risk analysis and quotes of any policies you request to see if we can help you, just like we have helped thousands of families across the country.

Our job is NOT to sell you a product – we “sell” a service.

Our job is to make sure you have the best product and coverages at the most affordable price for your budget. That is the easy part – the hard part is continuing to build the relationship and trust to make sure you are not just protected at “the point of sale” but for many years to come and that is our commitment to our clients.

Aspen Insurance Agency Named As One of the Best Insurance Agencies in Denver

Posted on by Aspen Insurance Agency
Best Insurance Agencies in Denver

Aspen Insurance Agency was recently awarded and named as one of the Best Insurance Agencies in Denver for 2020, by Expertise. We are thrilled to receive this recognition and continue to remain committed to delivering the best customer service experience for our clients.

Although we were founded in Denver, Aspen Insurance Agency continues to support clients nationwide. Check out all of the states that we do business in here.

Thanks for the support, Denver- We appreciate your business!!

Interested in learning more about the services we provide?

Request a Quote from a Licensed Agent or give us a call today!

Get Your Vehicle Winter-Ready.

Posted on by Aspen Insurance Agency

Ready or not, winter is coming! As the nights get cooler and the days get shorter, winter inches closer each moment.

Taking the time to get your car and house ready for the winter, can save you time and money in the future. To help you out, we compiled a list of ways to get your car ready for the upcoming season! 

Check Your Battery. The cold can be tough on your car’s battery, and there are few things more annoying than when you are running late and your car won’t start. Many mechanic shops can run a test on your battery to determine how much lifespan it has left. They will be able to quickly determine if you are in need of a new battery or not. A battery replacement typically costs under $200. 

We also suggest starting your car every few days during the winter if you are not using it regularly, this will help prevent your battery from dying. It is also advised to make sure you have AAA, they will be able to jump-start your car if your batter does die. Many insurance companies have a roadside assistance program that you can also enroll in. 

Change your wiper blades and refill your wiper fluid. Winter precipitation and salt on your windshield can make seeing the road nearly impossible. Good wipers and a good supply of wiper fluid can help you get around when road conditions are working against you.

If your wipers look worn, it is always advised to replace them. Wiper blades typically only last about a year, and are fairly inexpensive to replace. If you are in a location with frequent snow storms, you can also buy windshield wipers designed for winter weather. There are also a variety of products on the market that you can apply to your windshield to help keep it clear of precipitation. 

Check Your Tires. Cold weather causes air pressure in your tires to drop. Many cars on the road today have a feature that checks them automatically. If one or more of your tires is low, don’t ignore it. It is extremely important to make sure they are aired up properly. A properly inflated tire ensures the best possible contact between the road and the tires, which is essential for safe traction when driving in wintry conditions.

If you live in an area that gets frequent snow storms, snow tires might be a good investment for your vehicle. Snow tires are made of a different material and have different tread patterns than non-snow tires. Snow tires won’t get you out of any situation, but they will provide extra traction to help you get around.

Change The Oil. Cold weather reduces the oil’s effectiveness. The lower the temperature, the thicker the oil gets and thick oil doesn’t properly circulate through your engine as well as thin oil does. 

Luckily, this fix is an easy one. Change to a thinner oil. Ask your mechanic about this at your next oil change. 

Stock Your Car With Emergency supplies. Emergencies happen at random, and the only way to prepare for them is to plan ahead. We suggest keeping a few emergency items in your car at all times, but especially in the winter or when snow is in the forecast. 

  • A charged cell-phone
  • Jumper cables 
  • Flashlight 
  • Warm blankets or an extra coat
  • Ice Scraper or folding shovel
  • Tow strap or chains
  • First aid kit

We hope these tips will help you get ready for the season ahead!

Written by Morgan Hatfield

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

What Are Insurance Claims

Posted on by Aspen Insurance Agency

Insurance Claims are requests on behalf of policyholders to insurance agencies in order to receive coverage and/or compensations for a loss that is covered by their policy. Once a claim is filed, the agency then confirms that the claim is either valid or invalid. If validated, the agency will then make the approved payment to either the policyholder or an interested third party that has been approved. 

These claims can offer a wide array of coverage, ranging from basic medical procedures to death benefits and almost everything in between, depending on the services offered by the agency. In certain scenarios, a third party can also file insurance claims on behalf of the policyholder. However, that is not always the case.

How do Insurance Claims Work?

The purpose of an insurance claim is to compensate policyholders against loss, often financial loss. In the legal world, this is called indemnification. The policyholder pays premiums to maintain their policy and ensure that they are covered for whatever their policy encompasses. The claims that are most frequently filed are for medical services or goods, loss of life, liability from owning/renting a home, and liability from the operation of vehicles. 

For policies regarding causality/property insurance, the main determinant of your coverage cost comes from the amount of claims you file, regardless of who was at fault or the size of the accident. As the amount of claims you file increases, so does the amount you pay to stay covered. 

That being said, if the claim you are filing is based on damage that is not your fault, your rates may not rise. If the claim is for damage that you caused, you should expect to see a rate increase. Common examples of damage that are not at the fault of the policyholder are weather damage or your car being hit while parked. 

Many other circumstances can increase your rate as well. Things such as your driving record, being in an area prone to natural disasters that can damage whatever you are trying to insure or even having a low credit score can also all lead to a rate hike. To read more about ways to keep the cost of your auto policy down, check out our blog post here.

Not every type of claim is viewed the same by a carrier. Claims that indicate liability in the future, such as having mold or water damage, if your dog bites someone, or if someone is injured on your property are all examples of claims that can act as a red flag for agencies. These types of claims often lead to rate increases. 

What are the Different Kinds of Insurance Claims?

Casualty / Property 

For many individuals a house is one of, if not the, largest asset purchased in their lifetime. When the policyholder files a claim to damage to their home (or other insured property), the claim is usually filed online and sent to a claims adjuster. The policyholder must report the damage of whatever they own directly to the agency. The claims adjuster will evaluate the claim and the damage, and then verify the claim. If the claim is approved, the adjuster then makes the payment to the policyholder. 

Life Insurance 

When someone files a life insurance claim, that person must show the original policy, a certificate of death and a claim form. After that, the agency will conduct an in-depth examination of the circumstances of the death to confirm that the death was not categorized under a contract exclusion, such as the result of a crime or a suicide. 

Without any extenuating circumstances, the process often takes one to two months. This allows the beneficiaries of the claim to replace the income of the deceased.

Health/Medical

Costs of most medical procedures and health care can be prohibitively expensive. Health insurance policies, whether for an individual or group can protect patients from these costs, which often amount to burdens because of the expensive nature of health care. Most claims are filed by health care providers and are on behalf of the policyholders, unlike property claims. After the provider files the claim, the process is handled electronically and generally requires minimal effort from the policyholder. 

The only time a policyholder must actually file a paper claim themselves is when the medical provider does not take part in electronic transmittals, but the services provided are still covered by the insurance policy. 

Special Considerations

There is no specific, black and white way to determine what constitutes a rate hike. Some agencies can be more lenient in some areas and stricter in others and each agency can be different. It is important to understand regardless of your insurer, filing any claim can put your rates at risk. Learning as much as you can about your agency is the best way to understand what filing a claim can do to your rates. 

No matter what, filing as few claims as possible is crucial in protecting your rates and keeping them constant. Only filing claims in the case of devastating loss is the best way to keep your rates what they are. 

As an Independent Agency, you should always consult us before you file a claim so we can consider your unique circumstances.

Written by Max Chaitin.

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.

How to Insure Your At-Home Business

Posted on by Aspen Insurance Agency

Roughly 50% of all small businesses are owned and operated out of a residence. With technology advancements and the murky future surrounding COVID-19, more and more people are choosing to move their business into their home, or start a business out of their home. The potential of a home-based business is limitless, and remote-work has no reason to slow down in the foreseeable future.

Regardless of the growing percentage of home-based businesses, a large portion of these business owners do not have separate insurance for their business. Many home-based business owners believe that they are covered by other types of insurance policies they already have, some believe that their business is too small to insure, or frankly, they just haven’t thought about the need for insurance. Sadly operating without the proper insurance could lead to some serious legal consequences or financial hardships.

For a business owner, it is crucial to understand what business insurance is, and how it works. One of the easiest mistakes to make is to think that having a home insurance policy will protect your business. While home insurance will cover loss or theft of your personal property, if someone were to slip and get hurt on your property, or your business equipment is damaged by flooding, home insurance will not protect you. If you do not insure your business, you are putting you, your employees, and your financial well being at risk. This is why a business insurance package is crucial.

Consider These Financial Situations
As our world continues to see rapid technological advancements, an increasing number of individuals are beginning to work remotely as contractors or independent freelancers. The benefits of starting a home-based business are countless, but so are the risks. It is important to make sure you have the right resources and coverage to run your at-home business safely and risk-free.

A great first step is to meet with a lawyer to make sure your business is structured with the right license to fit your needs. Having the right license means paying the proper amount of taxes, helping you to avoid any surprises come tax season. 

It is important to understand how home business insurance works, and what makes it different from homeowners insurance. The Insurance Information Institute claims that many home-based business owners/operators do not have proper coverage. Again, many of these people believe that they are covered by their homeowners insurance. A quick fact check; many homeowners insurance policies have clear exclusions of liabilities that come from businesses. 

What Kinds of Home Businesses Need Insurance?

Below are some types of popular home-based businesses and the types of benefits and coverage they would need.

Online Store
Say you are selling your art or other creations via your online business. Say you are making a living as a seller through online auctions? What happens when there is a fire? Think about the cost of replacing all of your inventory out of pocket. 

Freelance Content Creation
Say you are a photographer, designer, writer, or anyone who uses their creative genius to make a living. Most likely, your computer is your whole livelihood, it is where you create and store everything. If that computer crashes, is stolen, or is damaged, you are out of work until you drop thousands on new gear. If you are a photographer, you probably have expensive camera gear and equipment to ensure you are doing the best work you can. These scenarios, albeit frightening, are perfect examples of why you should contemplate getting business interruption coverage.

At Home Bakery
Say your friends and family have always told you that they love everything you create in the kitchen, so you turn your passion into your business. You run a small operation out of your kitchen. If people are coming and picking up orders from your home, it is important to have liability coverage in the event that someone falls and hurts themselves. Say you decide to hire a delivery driver, they will need auto liability coverage.

What are your Insurance Needs?
There are a wide variety of home-based businesses, which also means that there is the same variety of insurances that protect them. Generally, home-based business owners have three options to choose from.

Business Owners Policy: This is the most comprehensive type of insurance coverage for home-based businesses. A business owners policy offers you coverage and protection from customers, employees, and contractors in the event they file a claim against you, in addition to offering property coverage. Typically, you would want to select a plan that offers general liability coverage. It is important to note, however, that not all home-based businesses are eligible for a business owners policy.

Homeowners Policy Endorsements: For many small and low-profile home-based businesses, this can prove to be the most affordable and simplest option. An endorsement, (AKA a rider) is an addition to your already existing homeowners policy. Assuming you are a solo operation who does not produce goods, this could be the best option for you. 

In-Home Business Policy: This policy is the combination of home and business insurance bundled into one plan. Often, it offers more specific kinds of coverage. A step-up from the endorsement option listed above, this kind of coverage has a greater range, and is a suitable option for growing businesses. If your operation has equipment, people coming and going, and even output, this can still be a great policy. 

Many home-businesses could suffice with an in-home business policy. Someone who makes jewelry and offers in-home jewelry fittings, a baker who has customers picking up orders, or  a financial advisor who works out of their home, but offers in person appointments could implement such a policy. 

Additional Coverage
Regardless of what plan you choose, you should know that depending on your business needs, you may need additional coverage. Below are some options for additional coverage that you should consider if the plan you are looking at does not offer them. 

Key Person Insurance: This is essentially life insurance on someone who the business could not operate without, such as a founder, key employee, or owner of a business. 

Employment Practices Insurance: This protects from claims against you from employees. 

Data Compromise Coverage: This protects you and your business from legal action if there is an incident such as a security breach that compromises confidential client or customer data. 

Additionally, even small home-based businesses should carry General Liability Insurance which will protect you from a wide range of factors including damage or injury caused by products, to costly lawsuits arising from online or physical advertising.  This coverage is generally affordable and a small price to pay for what could be a crippling financial burden.

Ensuring that you have the proper insurance is a key step to take to ensure the future success of your business.

Written by Max Chaitin.

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.

If you are searching for Business Insurance reach out to us. With a variety of coverage options such as commercial auto, general liability, cyber liability, commercial insurance for truckers, business owner policies and much more we are able to provide you with a policy specific to your company’s needs.

Commercial Business Insurance Saved My Company

Posted on by Aspen Insurance Agency

By: Jennifer Hanzlick, Owner of Clutter Trucker

How a Commerical 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.

If you are searching for Business Insurance reach out to us. With a variety of coverage options such as commercial auto, general liability, cyber liability, commercial insurance for truckers, business owner policies and much more we are able to provide you with a policy specific to your company’s needs.

What is Renters Insurance & Do You Need It?

Posted on by Aspen Insurance Agency

Written by Rose Hart

Have you been wondering about renters insurance? How much does it cost?Is it necessary? What does it cover?

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 policy, 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.

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. Still want to know more about what renters insurance is this is a great article to help explain it.

What Does Renters Insurance Cover?

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.

How much does Renters Insurance Cost?
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 renters insurance policy 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. Here are 10 great ways to help keep the cost of renters insurance down.

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.