Boufford Insurance Agency
FAQ

If your company employs individuals, you face potential risks associated with employee practices, extending beyond issues such as sexual harassment. This encompasses unfair hiring or firing practices, an unsafe work environment, and instances of discrimination.
General liability insurance typically does not provide coverage for such scenarios.

While the term “General Liability” may imply comprehensive coverage, it’s crucial to recognize that it is anything but all-encompassing. Within the standard forms of a General Liability policy, numerous exclusions exist. Moreover, individual insurance carriers have the liberty to introduce additional exclusions based on their specific considerations. The apparent umbrella of protection may have gaps and limitations, emphasizing the importance of thoroughly examining the policy terms and conditions. A keen understanding of both the standard exclusions and those specific to your chosen insurance provider is essential for a comprehensive risk management strategy.

General liability primarily pertains to incidents like slips, trips, and falls, resulting in bodily injury or property damage to a third party. On the other hand, professional liability takes a distinct role in shielding your business from the repercussions of providing misguided advice or counsel. Whenever you dispense professional opinions, advice, or guidance, you expose yourself to the potential of a professional liability claim. This type of coverage becomes crucial in protecting your business against legal actions arising from alleged errors or omissions in your professional services, emphasizing the need for a comprehensive risk management approach.

Commercial general liability insurance is a commonly purchased coverage for businesses, often associated with slips, trips, falls, and third-party property damage. However, it’s important to note that general liability insurance has limitations. It does not serve as a catch-all coverage and excludes intentional actions, as well as coverage for your building or property. Understanding what general liability insurance does not cover is crucial for a comprehensive risk assessment.

While workers’ compensation insurance is designed to provide medical benefits to employees for work-related injuries and usually prevents them from suing their employer, there are situations where legal action is still possible. An employee may sue even with workers’ comp coverage, although it doesn’t necessarily imply employer negligence. If a lawsuit results in additional benefits beyond the standard workers’ comp coverage, workers’ comp insurance policies in New York State often include employer liability coverage to respond to such situations. This coverage helps protect the employer in the event of legal action and provides additional benefits if the court awards more than the standard workers’ comp benefits.

Employer liability, found within a workers’ compensation policy, serves as a critical component in safeguarding both workers and business owners. While workers’ compensation coverage generally ensures medical expenses for employees in the event of a workplace injury, it also involves an agreement where employees relinquish the right to sue their employer. However, there are exceptions where employees can still sue their employer. In such instances, the employer liability coverage within the workers’ compensation policy comes into play. This coverage provides protection to businesses against lawsuits initiated by employees and offers a layer of defense in situations where legal action is taken despite the existence of workers’ compensation coverage.

Absolutely, it is highly advisable to bundle your home and auto insurance with the same carrier, and there are compelling reasons for doing so.The primary reason is straightforward: bundling your home and auto insurance with a single carrier often qualifies you for a substantial discount on both policies. This can result in significant cost savings, making it a financially prudent decision for policyholders.

Prior to making insurance decisions, it is crucial to grasp the distinction between Replacement Cost and Actual Cash Value.
There are specific situations where opting for an Actual Cash Value policy rather than a Replacement Cost policy is justified. For instance, contractors capable of self-performing most replacements or individuals who have acquired a property at a low cost and are not inclined to rebuild after a complete loss might find an Actual Cash Value policy more suitable. Additionally, conducting a Cost/Benefit Analysis for each policy type is imperative. This analysis ensures a comprehensive understanding of the advantages and drawbacks associated with either Replacement Cost or Actual Cash Value policies.

An independent insurance agent is an intermediary who works with various insurance carriers, offering a range of insurance products to clients. Unlike captive agents who exclusively represent one insurance company, independent agents have the flexibility to collaborate with multiple insurers. This independence allows them to compare different policies and find the most suitable coverage options for their clients based on individual needs, preferences, and budget constraints. Independent insurance agents act as advocates for their clients, providing personalized advice, guiding them through policy selections, and assisting with claims processes.

When dealing with partial loss insurance claims, there are two primary valuation methods: Replacement Cost and Actual Cash Value.

Under Replacement Cost valuation, the insurance payout enables you to replace the damaged or lost items with new ones of similar kind and quality, considering today’s market values.
This approach provides a straightforward reimbursement without accounting for depreciation, offering a “new for old” resolution.
Actual Cash Value:

In contrast, Actual Cash Value considers depreciation and other factors when determining the claim payout.
The settlement is based on the current market value of the lost or damaged items, accounting for their age, wear and tear, and other relevant factors. Unlike Replacement Cost, this method may not fully cover the cost of acquiring brand-new replacements, as it factors in the item’s depreciation over time.

Understanding whether your partial loss is valued at Replacement Cost or Actual Cash Value is crucial, as it significantly influences the compensation you receive and the ability to restore your assets to their pre-loss condition.

Your credit score significantly affects your insurance premiums. Studies show a direct relationship between credit scores and the likelihood of severe car accidents and non-payment cancellations, prompting 46 out of 50 US states to permit insurance companies to consider credit scores in setting auto and home insurance premiums. Maintaining a high credit score is crucial, as a lower score generally results in higher insurance premiums in most states. However, the impact may vary among insurance carriers, so consulting with your insurance professional can help you identify the best carrier for your specific situation.

Renter’s insurance is designed for individuals and families who do not own their residential property. It bears similarities to a homeowner’s insurance policy, excluding coverage for the building itself. Instead, it focuses on protecting personal property, personal liability, and other essential coverages. Despite the comprehensive protection it offers, renter’s insurance comes at a minimal cost. Additionally, many insurance carriers extend the same multi-policy discount for auto insurance, making it an affordable and practical choice for those living in rented spaces.

Yes, after signing an application with a new homeowners insurance carrier, they have a 60-day window to inspect the house and decide whether to continue the policy. If the application is completed accurately, this typically isn’t an issue.

Within the initial 60 days, the insurance carrier can cancel coverage if they choose to do so. However, after this period, they cannot cancel your policy until the renewal, regardless of the number of claims made during that time. If multiple claims occur, the insurance company retains the right to cancel your coverage at the time of renewal.

Theft coverage for jewelry is typically included in most homeowners and renters insurance policies. However, the coverage provided by an unendorsed policy may be limited.

To ensure coverage for the true value of a piece of jewelry, there are two recommended options:
Specific Scheduling: Add the piece of jewelry as a scheduled item on your homeowners or renters insurance policy.
Inland Marine Insurance: Purchase a separate inland marine insurance policy specifically for that piece of jewelry.

In either case, it is essential to have the jewelry appraised, and the appraisal should be provided to your insurance professional. This ensures that the coverage aligns with the accurate value of the jewelry, offering comprehensive protection against theft.

Determining the appropriate amount of homeowner’s insurance is a complex matter with various factors involved. A good starting point is ensuring your policy is written and insured at Replacement Cost. However, for a more accurate assessment tailored to your specific situation, it’s advisable to consult with your insurance professional. They can provide personalized guidance to help you determine the optimal amount of coverage for your home.

Condo insurance differs notably from traditional homeowners insurance, particularly in how the dwelling or building is insured.When you buy a condo, you’re essentially acquiring the air within the building, as the majority of the structure is not owned by you. Consequently, your insurance doesn’t need to cover the entire building. Moreover, condo owners are typically part of a condo association. In cases where there are issues with the building or shared spaces, you may be assessed a portion by the association to fund repairs.

Condo insurance includes coverage for loss assessment, providing protection in situations where you might be financially responsible for a portion of the association’s repair or maintenance costs. Understanding these nuances is crucial in ensuring your condo insurance adequately meets the unique needs of condominium ownership.

At a high level, the primary distinction between a landlord insurance policy and a homeowners insurance policy is the absence of personal property coverage on the standard landlord policy. This represents just one of the key differences. To delve deeper into the variations between these two types of insurance, it is recommended to watch the video for a more comprehensive understanding of the nuances and specific features that differentiate landlord insurance from homeowners insurance.

Personal property insurance, typically labeled as “Coverage C” on a homeowners insurance policy, is a distinct limit of insurance separate from the coverage for the home’s building.

This coverage encompasses all personal belongings, often referred to as “stuff,” such as furniture, clothing, dishes, electronics, jewelry, artwork, and more. It’s essential to note that specific types of personal property, like electronics, jewelry, and artwork, may have special sub-limits that impose coverage restrictions.

Understanding these sub-limits is crucial as it ensures that the coverage adequately addresses your unique needs. Being aware of these details allows homeowners to make informed decisions about their personal property insurance and ensure that their belongings are appropriately protected.

Consider flood insurance if you live in a high-risk flood zone or an area prone to flooding. Assess your financial ability to handle flood-related costs and evaluate the risk in your location. Even if not mandatory, having flood insurance can protect against substantial financial losses from flood damage, especially in high-risk areas or if you’ve experienced flooding in the past. Standard homeowners insurance typically does not cover floods, so a separate flood insurance policy is necessary. Consult with an insurance professional to determine the appropriate coverage based on your needs and risks.

In most standard homeowners insurance policies, flood damage is not covered. Homeowners insurance typically provides coverage for specific perils, such as fire, theft, and certain weather-related events like windstorms. However, flood coverage is generally excluded.

To protect your property from flood damage, you need to purchase a separate flood insurance policy. The National Flood Insurance Program (NFIP) provides flood insurance coverage in the United States, and private insurers may also offer flood insurance options. If you live in a designated flood zone and have a mortgage, your lender may require you to have flood insurance.

It’s crucial to carefully review your homeowners insurance policy and, if necessary, consider obtaining a separate flood insurance policy to ensure comprehensive protection against flood-related losses.

Uninsured motorist coverage is a type of auto insurance that provides protection for you and your passengers in the event of an accident with an uninsured or underinsured driver. If you are involved in a collision with a driver who either doesn’t have insurance or doesn’t have enough insurance to cover the damages, uninsured motorist coverage can help fill the financial gap.

This coverage typically includes medical expenses, lost wages, and damages for pain and suffering. It acts as a safeguard for insured drivers, ensuring that they have some form of compensation in situations where the at-fault party lacks sufficient or any insurance coverage. Uninsured motorist coverage is not mandatory in all states, but it is a valuable addition to an auto insurance policy for enhanced protection on the road.

Comprehensive (comp) and collision coverage are two distinct components of auto insurance that provide protection for different types of damage to your vehicle:

Collision coverage is designed to cover the costs of repairs to your vehicle in case of a collision with another object, such as another vehicle or a stationary object (like a tree or a pole).It applies regardless of who is at fault in the accident. If you collide with another vehicle or object, or if your car rolls over, collision coverage can help pay for the necessary repairs.

Comprehensive coverage, often referred to as “comp,” provides protection for damages to your vehicle that are not caused by a collision. This includes events like theft, vandalism, natural disasters (e.g., hail or floods), and encounters with animals (such as hitting a deer). Like collision coverage, comprehensive coverage is not dependent on fault, and it covers various non-collision-related incidents that could harm your vehicle.

In many cases, your car insurance may extend coverage when you rent a car. However, the specific coverage can vary based on your insurance policy and the rental situation. Before renting a car, it’s crucial to review your own auto insurance policy. Additionally, inquire with the rental car company about their insurance options and carefully read the terms and conditions to ensure you have the coverage you need.

Yes, most car insurance policies include coverage for bodily injury liability and property damage liability. These coverages are typically mandatory in many states. Here’s a brief overview:

Bodily Injury Liability
This coverage helps pay for the medical expenses, rehabilitation, and sometimes even lost wages of people injured in an accident for which you are at fault. It also provides legal defense if you are sued for damages.

Property Damage Liability
Property damage liability covers the cost of repairing or replacing someone else’s property (such as their car or a fence) if you are responsible for the damage. Like bodily injury liability, it also provides legal defense if you are sued for property damage.

These coverages are crucial components of liability insurance, which is designed to protect you financially if you cause harm to others or damage their property in a car accident. The specific limits and details of coverage can vary depending on your policy and the requirements in your state. It’s important to review your policy and ensure that you have adequate liability coverage to meet your needs and comply with legal requirements.

At a high level, the primary distinction between a landlord insurance policy and a homeowners insurance policy is the absence of personal property coverage on the standard landlord policy. This represents just one of the key differences. To delve deeper into the variations between these two types of insurance, it is recommended to watch the video for a more comprehensive understanding of the nuances and specific features that differentiate landlord insurance from homeowners insurance.

In general, auto insurance primarily follows the car rather than the driver. This means that, in most cases, your auto insurance should provide coverage if someone else is driving your car with your permission. However, the coverage specifics can vary based on the insurance policy and the circumstances of the incident. If you have comprehensive and collision coverage on your policy, it should generally cover damages to your own car in the event of an accident, regardless of who is driving.

It’s important to note that insurance policies and regulations can vary, so it’s recommended to check the terms of your specific policy or consult with your insurance provider to understand the details of coverage for permissive use. If someone frequently drives your car or is not listed on your policy, it’s wise to inform your insurance company to ensure proper coverage.

An umbrella insurance policy is a type of liability insurance that provides additional coverage beyond the limits of your primary insurance policies, such as homeowners or auto insurance. It acts as a “supplemental” policy, offering an extra layer of protection in case a covered claim exceeds the limits of your underlying policies.

Here’s how an umbrella insurance policy generally works:

Coverage Limits: Umbrella policies typically provide coverage in increments of one million dollars. For example, if you have a $1 million umbrella policy, it would provide coverage on top of the limits of your primary policies.

Scope of Coverage: Umbrella insurance covers a broad range of liability risks, including bodily injury, property damage, libel, slander, and even some situations not covered by your primary policies.

Excess Liability Protection: If you face a covered claim that exceeds the limits of your primary insurance, the umbrella policy kicks in as excess coverage. It helps cover the remaining costs, up to the limit of the umbrella policy.
Multiple Policies:

An umbrella policy usually requires you to have underlying primary insurance (like homeowners or auto insurance) with certain minimum liability limits. It supplements the coverage provided by these primary policies.

Legal Defense: In addition to the coverage limits, an umbrella policy often provides legal defense costs for covered claims, even if the claim is groundless.

Umbrella insurance is a valuable tool to protect your assets and future earnings from catastrophic liability claims. It’s especially beneficial for individuals with significant assets who want additional peace of mind and liability protection beyond the limits of their standard insurance policies.

A personal umbrella policy provides additional liability coverage beyond the limits of your primary insurance policies, such as homeowners or auto insurance. It offers an extra layer of protection in case the limits of your underlying policies are exhausted. Here are the typical coverages provided by a personal umbrella policy:

Excess Liability Coverage: The primary purpose of a personal umbrella policy is to provide excess liability coverage. It kicks in when the liability limits of your underlying policies are exhausted.
Bodily Injury Liability:

Covers medical expenses, legal defense costs, and damages if you are held responsible for injuries to others (third parties) caused by an accident where you are at fault.

Property Damage Liability: Offers coverage for damage to someone else’s property for which you are legally responsible.

Personal Injury Liability: Covers non-physical injuries such as libel, slander, defamation, false arrest, or invasion of privacy.

Legal Defense Costs: Provides coverage for legal defense costs, even if a lawsuit is groundless or false.

Worldwide Coverage: Extends coverage worldwide, offering protection wherever you go.

Additional Liability Coverages: Some personal umbrella policies may provide additional coverages not included in primary policies, enhancing your overall liability protection.
It’s important to note that a personal umbrella policy does not typically cover physical damage to your property or injuries to you or your family members. It focuses on providing additional liability protection against major financial losses resulting from lawsuits. The specific coverages and limits can vary, so it’s crucial to review the terms of your policy and consult with your insurance provider to ensure your understanding of the coverage it offers.

A personal umbrella policy becomes particularly beneficial in several situations, especially when you want additional liability protection beyond the limits of your primary insurance policies. Here are some scenarios when you should consider purchasing a personal umbrella policy:

High Asset Value: If you have significant assets, including home equity, savings, investments, or valuable personal property, an umbrella policy can help protect these assets from being at risk in case of a large liability claim.

Homeownership: Homeowners often consider an umbrella policy to provide extra liability coverage in case of accidents or incidents that may occur on their property.

Auto Insurance Limits: If you own multiple vehicles or have high auto insurance limits, an umbrella policy can extend your liability coverage beyond the limits of your primary auto insurance.

Recreational Activities: If you engage in activities that may pose a higher risk of liability, such as owning a pool, hosting events at your property, or participating in recreational sports, an umbrella policy can provide added protection.

Public Exposure: Individuals with high public exposure, such as business owners, professionals, or those in leadership roles, may consider an umbrella policy to protect against potential liability claims.

It’s essential to assess your individual circumstances and evaluate your potential liability risks. Discussing your specific needs with an insurance professional can help determine if a personal umbrella policy is the right choice for you. Keep in mind that eligibility and coverage specifics may vary among insurance providers.