Monthly Archives: April 2015

3 Things You Need to Know About General Business Liability Coverage

A major piece of insurance often overlooked by businesses just starting up is general business liability coverage even though the insurance covers both property damage and bodily injury liability for your business. Here are three things you need to know about general business liability insurance.

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1. It’s cheaper than a claim

Our society is increasingly litigious and the legal fees associated with defending your business against a are going up not down. Factor in the actual settlements if you loose, and the outcome could break your business.

For most businesses, however, the cost for general business liability insurance premiums will run in the range of $750 to $2,000, which will depend on your industry or kind of business and the amount of coverage that you require.

2. Do your research

Many businesses are at higher risk for claims, like building trades. Do you know where your business rates on the risk scale? If not, do your homework to ensure that you carry enough general business liability coverage.

For example, if you are sued for $150,000 in medical fees and $100,000 for costs, and this is the average claim in your industry, you pay what your policy doesn’t cover. If your coverage is at $100,000 per claim, your business will be on the hook for the other $150,000.

3. Location, Location, Location

There are many factors that determine the amount of general business liability insurance you will need in addition to your industry or type of business risk. In 2010, the state of New Jersey was on the top 10 list of America’s most litigious states.

So if you are doing business in New Jersey, chances are that you need general business liability insurance; and if you carry it, review your coverage needs with your licensed insurance broker.

Would an Umbrella Insurance Policy Be Right for You?

There are many different types of insurance you can purchase, and one of those is an umbrella insurance policy. It is intended to offer additional coverage on top of your existing auto or home policy.

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Who would benefit from such a policy? It helps if a lawsuit is brought against you that exceeds the limits of your current insurance policy, or is not covered under your existing one. Also, it provides extra coverage for any legal defense costs that can add up quickly. In essence, it helps you fill in the gaps in your insurance coverage so that you are prepared for as many situations as possible.

Not everyone needs additional coverage. Who are best candidates for an umbrella insurance policy? People who own multiple properties, those who travel often or internationally for business and pleasure, as well as those people who own a wide variety of recreational vehicles, such as hang gliders, snow mobiles, and motor bikes, would benefit.

You need to purchase your umbrella insurance policy from the business who sold you your auto or home owner’s policy. Typically, umbrella policies are sold in increments of $1 million dollars. Once you have used the amount of your primary policy, your umbrella insurance policy will come into play.

There are many advantages to buying an umbrella insurance policy. To find out if one is right for you, contact Schumacher Insurance. Their friendly and experienced professionals will help you find the best policy for your lifestyle and peace of mind.

3 Facts You Need to Know About Gap Insurance

When you purchase a big ticket item, like your car or your home, there is a often a difference between real value and and the amount owed. So you need some kind of insurance to cover that gap. Here is what you need to know about Gap Insurance.

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What you need to know about gap insurance

Gap insurance is the additional insurance you get to cover the difference in the value of an asset and the loan amount still owing. To cover the difference, you can purchase gap insurance.

For some people, for example, the money that they still owe on a car or a house exceeds the actual value of their asset. Therefore, should a fire destroy your home, the insurance company pays out to you only the value of your home, which the bank will apply against the debt. With insurance covering only the value and not the debt, you are left without a new home and likely the responsibility for paying off the outstanding debt.

When to buy gap insurance

There are certain conditions under which it would be smart to buy gap insurance for when you purchase a new vehicle.

  • extended payment duration of 60 months, or longer
  • when you lease your vehicle
  • when you put less than 20% down
  • if your vehicle depreciates more quickly than other vehicles
  • your car loan includes negative equity rolled over from your old car loan

Purchase your gap insurance from your car insurance company. It will likely be cheaper, and add on a minimal amount each year to your current vehicle insurance premium. Still have questions or need a quote? Contact  Schumacher Insurance.

Condo vs. Homeowners Insurance: Which is Best for You?

When purchasing insurance for your condominium, it is important to know what you are getting with your coverage. Learning the difference between condo vs. homeowners insurance plays an important role in choosing the best coverage for your home.

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Policies for Condominium Insurance: Your condominium needs to be ensured for the contents and structure.

  • Primary Dwelling: This is actually held by the homeowners’ association.
  • Other Structures: This is not relevant for condominium-style dwellings.
  • Loss of Use, Personal Liability and Medical Payments: All three of these sections are covered, and it applies to both condominiums and single-family dwellings.
  • Personal Property: Coverage for contents inside your home is held by the homeowner. The parameters covered by your policy usually include everything from the wall studs and out, and your condominium insurance will cover everything inside the wall studs. In the case that your condominium burns down, your homeowners’ association policy is responsible for rebuilding it, and everything else is covered by your personal property insurance.

Policies for Homeowners Insurance: While homeowners insurances contains the same few sections, this is where the differences between condo vs. homeowners insurance come into play.

  • Primary Dwelling: This policy covers the entire structure, construction materials and permanent elements, such as built-in features.
  • Other Structures: Covers areas such as well houses, detached garages and sheds. It is valued at 10 percent or less of the main structure.
  • Personal Property: Personal belongings valued at 50 percent of the main structure are covered by this policy.
  • Loss of Use, Personal and Medical Payments to Others: Both policies apply to single-family dwellings and condominiums.

Now that you know the differences between condo vs. homeowners insurance, use Schumacher Insurance to pick the best insurance for your home.

To receive more information on insurance and how to choose the best policy, contact us.

Understanding Exclusions in Your Personal Auto Car Insurance Policy

When you buy a new car insurance policy, your agent will explain to you what it covers and any specific exclusions. These listed exclusions mean these particular events will not be covered. Here  is a list to help in understanding exclusions in your personal auto car insurance policy.

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  • Bodily and property liability exclusions are probably the most common. These exclude, for example, collision with your own property or if you injured yourself or others on purpose.
  • Often delivery services such as taxi or pizza delivery are excluded from your policy. As a rule of thumb, any time you’re using your car for business purposes, it voids your policy.
  • Car sharing programs and other cases where you lend your vehicle to other people may be excluded from your policy. This can also apply to certain individuals that might drive your car.
  • Physical damage and collision coverage will most likely exclude such items as wear and tear to the vehicle, freezing damage, and any intentional damage. It will also exclude any damage your vehicle incurs if you use it as a race car.
  • Your policy will probably exclude personal items in the vehicle, such as the radio or GPS unless you specifically have them added. Any electronic equipment not installed in the vehicle likely will be excluded too.
  • Most of the items covered under your insurance policy will be voided if you at any time use your vehicle as a residence.

Understanding exclusions in your personal auto car insurance policy is important. Always read your policy carefully. If you are in doubt or have any questions, you can always contact the friendly experts at Schumacher Insurance Group.

 

How to Insure Your Off Site Storage Belongings

Many people put their personal belongings into a self storage unit and then don’t think twice about them again. If you’re willing to shell out for storage for something valuable, then you must protect it with the right type of insurance. Even with a secure, well managed facility, there’s still risk for fire, theft, and natural disasters. If you’re thinking about renting a self storage unit, learn how to insure your off site storage belongings and then follow through accordingly.

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  • Talk to your insurance adviser. Do you have a home or renters insurance policy? Some policies have coverage for off-site storage. This coverage includes fire and tornado damage as well as theft. It doesn’t cover earthquakes, flooding, mold and mildew, pests, and poor maintenance. Make sure to ask about the coverage limits, too.
  • Talk to the storage facility. Typically self storage facilities offer reimbursement based on unit square footage. Inquire about the coverage limits as well as whether you get reimbursed based on cash value or replacement cost. Many facilities also offer their own supplemental insurance packages. Your insurance adviser can provide insight about these packages.
  • Consider specific types of insurance for expensive items. Some home and renters insurance policies have dollar restrictions. If you’re planning to store jewelry, antiques, art, furs, or other expensive items, consider adding some sort of endorsement or floater so that you have full coverage. Keep in mind that you’ll have to store these items in a unit with temperature and humidity controls.

Schumacher Insurance Agency offers a wide range of personal and business insurance packages. We want you to have the insurance that you need to have a peace of mind about your valuables. To learn more, fill out our online contact form or give us a call at 973-812-0001.

3 Medicare Myths That You Need to Know

Although Medicare helps seniors pay their medical costs, there are some myths that cause people to make costly mistakes. Being well-informed about what Medicare takes care of, as well as its limitations, will help you make better choices during your retirement years. The top Medicare myths revolve around long-term care, the costs of Medicare versus private insurance and drug coverage.

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1. Long-Term Care is Covered Under Medicare

One thing that many people are unaware of is the fact that Medicare only pays for rehabilitation care. In the case of long-term care in a nursing home that many seniors need, additional long-term care coverage is necessary. Government sources estimate that a majority of seniors will require long-term care, making the need for appropriate solutions important.

2. Medicare is Always Less Expensive Than Private Insurance

You may find that the cost of switching to Medicare is higher than the premiums you paid if you worked for some large companies. Another thing to remember is that Medicare doesn’t pay for all types of care. If you choose an Advantage program, the additional coverage may vary depending on your plan.

3. Your Drug Coverage Costs Are Lower

This is one of the Medicare myths that causes a lot of confusion. Whether you’ll enjoy lower costs depends on what sort of Part D plan you have. The drugs you take and the pharmacy you use play a major role in costs.

Schumacher Insurance Agency offers convenient plans for New Jersey residents. Contact us to learn more about how we can help you in your retirement.

Keep Your Digital Assets Secure With Cyber Liability Insurance

At the Schumacher Insurance, we are committed to giving customers the coverage they need for their needs. Not only is personal and commercial insurance offered, there are certain types to deal with today’s concerns. To keep your digital assets secure, it would be smart to learn about and get cyber liability insurance.

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Most of the work in business takes place on computers, so insurance to protect the data makes sense. There are several good reasons why it is a wise investment.

First, a general policy doesn’t cover data, so it is important to get cyber liability. More specific insurance will protect against problems and losses. It is better to be safe than sorry.

Cyber insurance is a recent type of coverage, but it is affordable and covers well. Like other kinds of insurance, it depends on your needs and what kind of system you are working with. You can get protection within budget.

Despite all the advances in technology, you aren’t guaranteed protection from losses. In case of a cloud hack or breach, the cyber liability insurance has your back. Schumacher Insurance will gladly assist in your insurance needs.

For more information, contact us online.

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