Client Portal
Report a Claim
Library
Business Insurance
A Perfect Fit for Every Step in Business
You have worked hard to build your business. We will work hard for you to strategically find solutions that will help your business effectively manage risk and control utilization.
Business Insurance FAQs
What's the highest deductible can I get?
How high do you want? It may depend on the value of your property vs. how much risk you, the insured, want to take. It is not uncommon for insureds today to have $5,000, $10,000 even $25,000 deductibles. Consider weighing the premium savings for a higher deductible vs. the amount of risk you are comfortable taking.
There is an Experience Mod on my Workers Compensation policy. What is it and how did I get it?
An Experience Mod is a multiplier that is assigned to you by the Pennsylvania Compensation Rating Bureau (PCRB). It can be a credit or debit on your policy depending on your work comp claims history. Only the PCRB can assign an experience mod and it adjusts annually based on premium paid, claims paid and class of business risk.
Are there discounts for “bundling” business policies?
Not the same way there are for “bundling home and auto”, but there are discounts available for business policies. Insuring your BOP or Package, business auto, workers compensation, and umbrella with the same company can increase the possibility for higher discounts.
Another benefit comes if you have multiple claims. Having all of your policies with one company can reduce the negative impact on future premiums and loss history.
What is co-insurance?
Co-insurance is a clause in an insurance policy that applies to the property coverage to insure that the property is insured to the proper value. Basically, it prevents the insured individual from saving premium dollars by deliberately insuring less than the specific co-insurance percentage for their risk/property.
In the majority of policies, there are three percentages offered for co-insurance; 80, 90 or 100%. In layman’s terms if you don’t insure your property to at least the co-insurance percentage, of full replacement value, you will receive a penalty.
For example, if the full replacement cost value of a building is $100,000 and the co-insurance is 80%, you must carry at least $80,000 coverage on the building or be subject to a penalty at the time of a loss or claim. In this example, if the building was insured for $70,000 when it was completely damaged by a fire, the penalty would be applied because the coverage needed to be at $80,000. The insurance would pay $61,250. The penalty would be $8,750.
Are my business auto premiums affected by the number of drivers?
No. The number of drivers on a business auto policy is not a premium factor.
What happens if a person driving my business auto is not on the driver list?
You are covered if there is a claim involving a driver you approved to use your vehicle but is not on your drivers list. However, you should add all approved drivers to your policy drivers list.
What is the difference between replacement cost and actual cash value?
When you purchase property coverage there are a few valuation methods available for your buildings and business property.
The most common is Replacement Cost followed by Actual Cash Value (ACV). RCV is just what it sounds like. At the time of a loss/claim you are are going to be made whole again; your building/property will be put back the same way it was prior to the loss. With ACV at the time of a loss, an adjustor will estimate the amount of the damage and depreciate the property, typically based on age and/or condition.
For example, consider a roof that experiences damage in a windstorm. If shingles blow off in the storm and you have an ACV policy, the adjustor will begin by determining the “life expectancy” of the shingles. If they were “30 year” shingles and are 15 years old when the storm ocurred, they have reached half their life expectancy and depreciated by half. Therefore, the claim payment will be half of the full replacement cost to put the shingles back on the roof. So why choose ACV? It is typically less expensive than replacement cost.
