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Appraisal

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Appraisal An appraisal is a structured process in which a trained professional determines the value of an asset to facilitate a financial transaction for business or personal purposes. An appraisal is the process of determining the value of an asset for commercial or financial purposes. Appraisals are commonly used in these three areas: -Small business insurance -Business valuation -Real estate transactions How do appraisals work? An appraisal is often conducted to facilitate business or personal real estate and insurance transactions. It typically consists of three elements: -A highly structured process for valuing an asset from multiple perspectives -A trained, certified assessor who is familiar with the asset and the market in which it will be purchased or sold -A body of professional methods and standards that produce an accurate valuation The appraisal process assesses all factors that affect an asset’s value, including property and asset value, market value, and potentia
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Continuity Date

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Continuity Date Depending on your situation, your continuity date may be the date your current insurance began or a date far in the past when you were insured with another company. Continuity dates apply to claims-made liability insurance policies, including errors and omissions, professional liability, and directors and officers insurance covers. How far back your continuity date goes depends on whether you maintained coverage continuously: -If you never dropped your insurance, your continuity date will be the date your first insurance policy began. -If you dropped your insurance, your continuity date will be the start date of its successor policy. -If you’ve never had insurance before, your continuity date will be the start date of your first policy. -If an incident occurs before the continuity date, your insurance policy won’t pay for the loss, even if you file a claim under your current coverage. Understanding coverage scope; that is kowing your continuity date helps you und
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Replacement Value

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Replacement Value It is how much it would cost to buy a brand-new replacement for a destroyed or stolen item. Replacement value is a method for determining what an insurance company will pay you in case your property is stolen or destroyed. It equals the cost of replacing the property. How is replacement value different from actual cash value? Actual cash value is another method for valuing property for insurance purposes. It equals replacement value minus depreciation. Since the actual cash value method results in your insurance company paying less for damaged property, it charges less for this protection. How Does Replacement Cost Property Insurance Work? Remember replacement value is how much it would cost to buy a brand-new replacement for a destroyed or stolen item. Let’s assume someone breaks into your office and steals one of your computers. A replacement value property insurance policy would provide you with funds to buy a new computer similar to the one that was stole
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Employment Practices Liability Insurance (EPLI)

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Employment Practices Liability Insurance (EPLI) Employment practices liability insurance (EPLI) provides insurance protection for small businesses that hire, manage, and terminate employees. It covers expenses related to employee lawsuits. Employment practices liability insurance covers your legal expenses when an employee files a lawsuit alleging discrimination, wrongful termination, harassment, or other wrongful acts. In such cases, your employment practices insurance will provide funds to cover your: -Attorney's fees -Settlement costs -Legal judgments -Administrative and other court costs Businesses in the following industries are excellent candidates for this form of small business protection: -Building design -Consulting -Food and beverage -Information technology -Insurance professionals -Media and advertising -Nonprofits Photo & video Employment practices liability insurance does not cover: -Civil and criminal fines -Punitive damages -Wages you should have paid
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Fiduciary Liability Insurance

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Fiduciary Liability Insurance Fiduciary liability insurance is a specialized form of insurance that protects employee benefit plan fiduciaries against claims they mismanaged plans or assets. A policy can help pay for a legal defense or losses that arise when fiduciaries: -Make poor investment decisions -Mishandle plan records -Negligently hire plan service providers What does not fiduciary liability insurance cover? Fiduciary liability insurance does not cover crimes or other acts of intentional wrongdoing. It also does not cover embezzlement of a benefit plan’s fidelity bonds or other small business funds. What Does Fiduciary Liability Insurance Cover? -Making improper changes in plan benefits -Wrongfully denying benefits to employees -Providing improper or incorrect advice or counsel to the plan holder (employer) or participants (employees) -Giving advice that benefits the fiduciary but harms the plan holder (conflict of interest) -Making a poor decision regarding hiring plan
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Loss Payee

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Loss Payee A loss payee is a person or organization listed on an insurance policy’s declarations page that is entitled to receive claim payments before the policy owner due to a financial interest in the insured property. A loss payee is entitled to an insurance claims payment in cases of property damage, despite not being the named insured on the policy. This typically occurs when a small business uses collateral to secure a loan. For example, if you take out a loan to purchase a business vehicle with an auto financing company, the company could require you to put up the vehicle as collateral against your loan. If you fail to make payments, it can repossess the car. The company could also require you to maintain insurance on the vehicle, asking you to put its name as loss payee on your policy. This means if you total the vehicle in an accident, the company will get its money back in the form of a payment from the insurance company. How Do You Add a Loss payee To An Insurance Po
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Open Perils Coverage

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Open Perils Coverage Open perils coverage is a form of commercial property insurance that provides protection against nearly every type of loss except those specifically excluded in the policy. Open perils property insurance is different from NAMED perils insurance, which only provides coverage for losses specifically listed in the policy. For example, a named perils policy might only cover damage from these perils or hazards: Fire, Theft, Vandalism, Wind. Open perils coverage is also sometimes called all perils insurance or all risk coverage. What Are Some Common Exclusions Listed In An Open Perils Policy? Some common exclusions in open perils policies include: -Floods -Mudslides -Seepage and sewer backups -Power failures -Rust and corrosion -Mechanical breakdowns -Earthquakes -Boiler explosions -Employee theft -Fungus damage -Animal or insect pests -Air or water pollution Note that these are exclusions because you can buy specific covers for them. In conclusion, Open Perils
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