Insurance Helper Blog
NC Contractors Insurance – 4 Important Reasons Why You Must Be Sure To Get A Commercial Auto Insurance Policy
Many
small contractors
start their businesses from their home and run them out of their back pocket. As they gain success and confidence, most will begin to search out a separate office location and separate their business affairs from their personal affairs. But one thing that gets left behind in this process is the move to a true commercial auto insurance policy. Here are some of the reasons for switching over to a
Reason #1 – The Tax Angle. Check with your CPA for your specific situation but in most cases, the IRS is going to be more understanding about expensing the costs of insurance if that insurance policy is written in the name of your business instead of in your individual name.
Reason #2 - Tickets. In
Reason #3 – Title. If you have your vehicle titled in your business name, then you must have an insurance policy where the name of the policy holder matches the name on the vehicle title. So, once you title the vehicle in your business name, you simply must purchase a business auto insurance policy.
Reason #4 – Nonowned Autos. In any business there will come a time when someone, be it an employee or even a friend or family member will run an errand for you. When that happens, if an accident occurs, your business could be involved in the claim. Your personal auto insurance policy will not protect your business from this kind of exposure. However, you can add liability coverage, called nonowned auto coverage to your business auto insurance policy. This will provide protection to your business for liability from any vehicle that you don’t own. This is very important protection and costs very little; often $100 per year or less.
At Clinard Insurance Group, in Winston Salem, NC, we specialize in helping all kinds of small contractors with their business insurance needs. We want to help all insurance consumers be informed consumers. If you need help with your business or your personal insurance policies, please call us, toll free at 877-687-7557 or visit us on line at www.ClinardInsurance.com.
All North Carolina homeowners now face a personal burden for beach house hurricane losses.
The North Carolina State Legislature is crafting legislation, House Bill 1305, that will push the burden of catastrophic hurricane losses of beach property on to the backs of all unsuspecting property owners statewide. While there are some positive changes in this legislation, it feels like to me that they are sticking it to the people who are not there watching this legislation be made, and that is all the people who own property in North Carolina that is not coastal property.
The good news here is that the NC legislature has finally admitted that the North Carolina Beach Plan is broken and needs a fix. The Beach Plan insures $75 billion worth of property in coastal areas and has a meager $1.5 billion in reinsurance and reserves to pay claims. Clearly if a large storm hits our coast, there will not be enough money to pay the claims. To find out how we got to this point and read more details of this problem, click here.
The major parties working on this legislation are the coastal property owners and their lawmakers and the insurance companies. Right now, if a storm hits and the beach plan goes under, the bill must be paid by all the insurance companies doing business in
House Bill 1305 which sailed through the house on July 15th will take care of some of the uncertainty for the insurance companies. Right now the insurance companies face the uncertainty of unlimited assessments to bail out the Beach Plan after a major storm. If this bill becomes law, then their assessments will be limited to $1 billion per storm. Still quite a lot of money but now it is a number that they can plan for. So all in all, I think the insurance company lobby did a pretty good job of getting what they wanted.
But if you add another billion dollars to the amount available for a major storm, you will see that we still now have only $2.5 billion to protect over $75 billion in assets. So where does the rest of the money come from? Well the biggest chunk is a new storm assessment that can be added to every property insurance policy in
Those owning property at the coast, who are insured through the Beach Plan, will have to give up something as well. In the event of a major storm, they will face a deductible of no less than 1% of the total value of the property. There is a clause that allows for even higher deductible percentages if needed.
I disagree with the legislators who say that our coastal property is a state treasure for all of us and all of us living in this state should be on the hook to support the coast. I think that the fairest solution is to raise the rates on beach property to more accurately reflect the risks and let those who own property or rent property at the beach carry the burden. In
At Clinard Insurance Group in Winston Salem, NC we work hard to make sure that all of our clients are informed insurance consumers. If you have any questions about how this might affect your homeowners insurance policy, or if you need any other help with any of your insurance policies, please call our office, toll free, at 877-687-7557 or visit us online at www.ClinardInsurance.com.
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