During tax season, criminals utilize tax scams to gain financial information from businesses. With these increasingly sophisticated scams, it can be difficult for your business to spot them. Adjusting your business’ policies and educating your employees can help mitigate the risk of becoming a victim. Click on the image to download or print the safety sheet and learn more about tax scams.
Securing appropriate insurance for your business and property can be enough of a process on its own. So what does the concept of coinsurance represent? Nothing less than protection for both the insured and the insurance provider.
Let’s start with defining our terms. Coinsurance is a property coverage provision set by your insurer that requires you to carry coverage for a certain percent of your property’s value. That way, your insurer can be sure you have adequate coverage if you need to make a claim, and it can ensure that its resources are adequate to cover that claim.
In a typical commercial property insurance policy, a coinsurance clause ensures that you carry adequate coverage to protect your assets. For instance, for an office building valued at $200,000, you would need at least $200,000 in property insurance coverage. If your policy has a clause with a coinsurance percentage of at least 80%, that means you must insure the building for at least $160,000. If you purchase less coverage, the insurance company may not pay out the full value of your damages, even if they fall within the limits of your policy.
Say you file a claim after a fire causes $100,000 worth of property damage. Your property insurance policy has a limit of $150,000 and a $5,000 deductible. Per your coinsurance clause, you were required to purchase at least $160,000 in coverage. Because you failed to meet your coinsurance percentage of 80%, you will face additional costs as determined by the ratio of the amount you carried divided by the amount that was required: $150,000 / $160,000 = 0.937. So if your loss was $100,000, your insurer will pay $93,700 minus your $5,000 deductible. Your total costs will end up being $11,300.
Not every insurance company includes a coinsurance clause in its policies. However, those that do require coinsurance typically have three reasons for doing so:
The bottom line? When you’re required to meet coinsurance limits and do so, you’re more likely to make an accurate assessment of the value of your assets, which protects the insurance provider and you in the long term. Contact the professionals at Evergreen for more information on coinsurance and how it can apply to your business coverage.
Copyright 2023 Evergreen Insurance
Evergreen Insurance provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.
Over-the-counter and prescription medications are essential for many people to live healthier, happier lives. But if taken incorrectly, these medications can cause more harm than good. Click on the image to download or print the safety sheet to learn the dangers of medicine interactions and how to avoid them.
March is Workplace Eye Wellness Month. If you work in a manufacturing or construction job, there is a risk of particles or smoke irritating your eyes. Safety glasses or goggles are essential to keep these irritants from doing serious harm to your vision. Click on the image to download or print the safety sheet.
Email is the most used form of communication in business. When contacting a client or coworker, you may need to send important business information via email. If your email isn’t protected against cyber threats, this information can be susceptible to a data breach. Click on the image to download or print the safety sheet.
Some people live by the credo, “I’d rather be lucky than good.” But as the Covid-19 pandemic taught us, it’s foolish to rely on luck alone to manage your business through a major health crisis. Complete and comprehensive preparation must take precedence.
Covid became a true turning point for many workplaces. The Human Resources function nDotow is expected to understand public health challenges swiftly and manage them efficiently. So, how to prepare? Here are four steps to success:
Responding to the next health crisis will be much easier when you have planned and prepared ahead of time. Don’t leave it to luck. There’s too much at stake. Reach out to the Benefits team at Evergreen for more workplace guidance.
Copyright 2023 Evergreen Insurance
Evergreen Insurance provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.
Parents, it’s important to have a conversation with your children about the dangers of drugs and alcohol. Knowing the facts about these substances can help them make smarter decisions and establish communication in your home.
Employee-related lawsuits can be time-consuming and costly for your business. Employment practices liability insurance can help shield your business from these suits. What does this liability insurance cover? Click on the image to download or print the information sheet.
Boating season is right around the corner. While you’re shopping for a new boat or jetski, consider purchasing personal watercraft (PWC) coverage, too. It can help protect your wallet in the event of injury or damage involving your watercraft. Click on the image to download or print the information sheet.
Every household contains cleaning solutions and common medications. If these products are not stored securely, children or pets can get into them, resulting in household poisoning. Click on the image to download or print the safety sheet.
