Frequently asked questions

1. What is General Liability? What does it cover?

a.       General Liability is an insurance policy that protects your business from claims involving bodily injury and property damage arising out of products, operations and advertising and personal injury.

2. What is the difference between ‘claims made’ and ‘occurrence’?

a.       There are two forms of business insurance forms. Policies can be written on an occurrence or claims-made basis. Occurrence based policies cover losses sustained during the specific policy period mentioned no matter the time frame that the loss is reported. Claims-made coverage is restricted to covering losses that occur and are reported during the policy period.

As an example, for occurrence basis, a plumber has a policy that runs from 7/1/2022 – 7/1/2023. They complete work for a customer in May of 2023. The work done is faulty and the customer doesn’t report the issued until September 2023. Since the claim occurred during the specified policy period, the loss would be covered by the policy. If the policy is Claims-made, the claim would be rejected since the loss was not reported during the 12 months of the covered policy.

3. Increased premiums and the state of the insurance market

a.       There are many factors that drive premiums. They depend on the line of coverage, exposure, losses and current rates. The market is currently increased due to the factors and insureds should expect an overall increase between 10-40%.

4. What type of payment plans are available?

a.       Most carriers have two types of payment types. Agency Bill vs Direct Bill. They also may have payment plan options such as, quarterly, semi-annual, monthly installment, etc. Direct bill policies are when the insured (you) will receive invoices directly from the carrier. Agency bill policies are billed to your agent and they will in turn send you an invoice.

5. What is workers’ compensation coverage and who does it cover?

a.     Covers your employees if they get ill or are injured while working on the job within the scope of the role. Different states have different requirements on the number of employees needed in order to require Workers Compensation coverage. For example, Alabama requires that a company have Work Comp coverage if they have 6 or more employees

6. What is the biggest threat to my business?

a.     According to the US Department of Justice, Cybercrimes are the largest threats to US based business and citizens. Cyber Liability insurance is the best way to protect yourself and your business from the threat of cybercrimes.

7. What type of cybercrimes should I be aware of?

a.     Hacking - The act of breaking into a computer without the user’s knowledge or permission.

b.     Phishing - Scams involve the use of electronic communication to extract sensitive information such as passwords, usernames, or financial details. In a phishing scam, fraudsters disguise themselves as a trustworthy entity and contact the victim through a phone call, email, text message or social media. They often pretend to call from a bank, telephone company or internet provider.

c.     Malware - In the simplest terms, malware = malicious + software. A malware is a software created with the intent of causing damage or gain illegal access to a computer/network. Malware includes everything from viruses and worms to spyware and Trojan Horses.

d.     Ransomware - A form of malware that encrypts the files on an infected system. It renders the files/data inaccessible until the payment of a ransom to decrypt them.

8. What is Errors & Omissions coverage?

a.     Errors and omissions insurance (or E&O) is a form of professional liability insurance. It covers a business for services rendered that did not have the expected or promised results, or that result in a loss or personal injury suffered by the person receiving those services. It also covers situations where the individual or company failed to render services at all. Engineers, stockbrokers, accountants, insurance agents, and lawyers may be covered by E&O.

9. What is Workplace Violence coverage?

a.     Coverage for the expenses that a company incurs resulting from workplace violence incidents. The policies cover items such as the cost of hiring independent security consultants, public relations experts, death benefits to survivors, and business interruption (BI) expenses.

10. Is there specific kind of insurance that my business needs?

a.     The simple answer is yes. You are required to provide certain coverages to operate your business, however, this varies based on the type of business. Examples of this are Workers Compensation and Professional Liability insurance. There are definitely coverages that you should consider based on the operations of your business. A licensed insurance agent, such as BoMont Group, would be able to help you navigate the type of insurance that best fits your business needs.

11. What kind of “Property” does my Property Insurance cover?

a.     Your commercial property insurance is split into various types of ‘property’. For example, your building coverage covers the physical “brick and mortar” of your location, but it does not cover your property inside the building. The real property inside your building would be covered under your Contents or Business Personal Property limits on your insurance policy. It is imperative that you make sure all owned assets are covered within the limits.

12. What is the difference between an employee and an independent contractor? Are both covered under my policy?

a.     An employee works directly for a company or another person and answers to an employer/manager. An independent contractor may work for a company and accept direction, but this worker ultimately has more control over the work he or she accepts and how, when, and where it is produced. As for your insurance, the definition of an employee will be defined in your policy terms. However, each state has varying definitions and court rulings that redefine the meaning of an employee.

13. What is Employment Practices Liability?

a.     Employment Practices Liability is a type of liability insurance covering wrongful acts arising from the employment process. The most frequent uses for EPL coverage are in the event of claims arising from wrongful termination, discrimination, sexual harassment, and retaliation. The policies cover directors and officers, management personnel, and employees as insureds.

14. What is a Certificate of Insurance and who can receive one?

a.     A document providing evidence that certain general types of insurance coverages and limits have been purchased by the party required to furnish the certificate. Certificates can be issued to anyone you have business with that you agree to furnish one to. Some contracts require that the Certificate Holder be provided additional indemnities in order to business. Examples of this are: Additional Insured, Waiver of Subrogation and Notice of Cancellation.