The Murphy Insurance BlogNews, updates and useful tips about insurance products and the insurance industry. We also provide insights on community events, local news and information that affect your everyday life. Enjoy!https://www.dfmurphy.com/blog.aspxIs your business prepared to survive a disaster?https://www.dfmurphy.com/blog/PostId/824/Is-your-business-prepared-to-survive-a-disaster.aspxBusiness InsuranceThu, 14 Mar 2024 17:32:00 GMT<p>When a major storm hits causing power outages, downed trees, flooding or other damage that impacts your business operation, it's important to have an action plan in place. Forty percent of businesses do not reopen after a disaster and another 25 percent fail within one year, according to the <a href="https://www.fema.gov/protecting-your-businesses">Federal Emergency Management Agency</a> (FEMA). But by taking action in advance to prepare, businesses can increase their chance of getting back on their feet financially and keeping their doors open.</p> <p>The Insurance Information Institute (I.I.I.) and the Insurance Institute for Business & Home Safety (IBHS) recommend the following steps:</p> <h3><strong><img alt="disaster planning" src="/Portals/0/disaster%20planning%20questions-2132217_1920.jpg?ver=2020-03-17-134745-653" style="width: 300px; height: 218px; float: left; margin: 10px 25px;" />Develop a business continuity plan</strong></h3> <p>Having a business continuity plan is vital for companies to prepare for, survive and recover from a hurricane. Use IBHS’ free <a href="http://disastersafety.org/ibhs-business-protection/ofb-ez-business-continuity/">OFB-EZ<sup>® </sup>(Open for Business)</a> business continuity planning tool to create a plan that focuses on recovering after the initial emergency response. Share your plan with employees, assign responsibilities and offer training so your workforce can collaborate in the recovery of your business. Conduct regular drills to assess and improve response. </p> <h3><strong>Maintain key information offsite</strong></h3> <p>To get your business up and operating as quickly as possible after a disaster, you’ll need to be able to access critical business information. In addition to backing up computer data, keep other critical information offsite such as your insurance policies, banking information and phone numbers of employees, key customers, vendors and suppliers, your insurance professional and others. If you have a back-up site, make sure it’s sufficiently far away so as not to be affected by the same risks that threaten the primary location. Use IBHS’ free <a href="https://disastersafety.org/ibhs-business-protection/ez-prep-emergency-response-planning/">EZ-PREP<sup>TM</sup></a> severe weather emergency preparedness and response planning toolkit with checklists that can be customized for your company to be sure you have a well-organized plan and are ready to respond when disasters occur.</p> <h3><strong>Create a business inventory</strong></h3> <p>Include all business equipment, supplies and merchandise—and don’t forget commercial vehicles.</p> <h3><strong>Review your Insurance coverage</strong></h3> <p><u>The time to review your insurance policy is <em>before</em> disaster strikes</u> and you have to file a claim. It is important that your business have both the right amount and type of insurance for its needs and risk profile. Here are a few key issues to consider:</p> <p><strong>Opt for replacement cost coverage</strong></p> <p>Most commercial property policies provide either replacement cost coverage, actual cash value coverage, or a combination of both. Replacement cost coverage will pay to rebuild or repair property, based on current construction costs. Actual cash value coverage will pay to rebuild or replace the property <em>minus</em> depreciation. Depreciation is a decrease in value due to wear and tear or age. If your business is destroyed and you only have actual cash value coverage, you may not be in a position to completely rebuild.</p> <p><strong>Consider tenant coverage</strong></p> <p>If you rent or lease a building, consider tenant coverage, which will insure your on-premises property, including machinery, furniture and merchandise. The building owner’s policy will not cover your contents.</p> <p><strong>Don’t forget about flood insurance</strong></p> <p>Flooding is not covered by standard commercial insurance policies, so consider buying a separate flood policy. If you’re located in a high- to moderate-risk flood zone, you could be protecting your business from devastating financial loss. Commercial flood coverage is available from the <a href="http://www.floodsmart.gov/" target="_new">National Flood Insurance Program</a> (NFIP) and provides up to $500,000 in building coverage and $500,000 for contents. You can also get coverage through private insurers.</p> <p>Source: <a href="http://www.iii.org" target="_blank">Insurance Information Institute</a></p> <p><!--EndFragment--></p> 824Insuring your home-based businesshttps://www.dfmurphy.com/blog/PostId/840/Insuring-your-home-based-business.aspxBusiness InsuranceWed, 28 Feb 2024 15:54:00 GMT<h3>What you need to know if you work from home</h3> <p><img alt="home based business" src="/Portals/0/home%20business.jpg" style="width: 270px; height: 180px;" title="home based business" />Whether you’re running a part-time, seasonal or full-time business from your home, you’ll want to carefully consider your risks and insurance needs. Starting a business—even at home—can be a challenging venture, and having the right insurance can provide a financial safety net and peace of mind.</p> <p>Your insurance choices should, in part, be based on the type of business you operate. For instance, if you’re a sole practitioner home-based accountant, you’ll have very different insurance needs than your neighbor who runs a childcare business. When considering insurance for your business, here are some questions to ask yourself:</p> <ul> <li><strong>What type of business do I run? What are the potential risks faced by your type of business?</strong></li> <li><strong>What is the value of my business property? </strong>Do you have expensive equipment, such as cameras or commercial printers? Do you stock valuable business inventory, such as gemstones?</li> <li><strong>Does my business have employees?</strong></li> <li><strong>Do customers or contractors visit my business at my home?</strong></li> <li><strong>Do I use my car or other vehicles in the course of my business operations?</strong></li> <li><strong>Does my business store customers’ financial and personal information on a computer or through a cloud computing service?</strong></li> </ul> <p>The answers to these questions will guide which types of insurance to purchase—and how much coverage you’ll need. For your home-based business, the main types of insurance to consider include the following:</p> <h4>Property and liability insurance</h4> <p>Depending on the nature of your home-based business, you’ll need insurance to protect the value of your business property from loss due to theft, fire or other insured perils. You’ll also need liability protection to cover costs if someone is injured as a result of visiting your business or using your product or service. Your homeowners insurance may provide some protection for your business, but it may not be sufficient. Options for property and liability insurance for home-based businesses include:</p> <ul> <li>Adding an “endorsement” to your homeowners policy</li> <li>Stand-alone home-based business insurance policies</li> <li>A Business Owners Policy—or BOP—which combines several types of coverag</li> </ul> <h4>Business vehicle insurance</h4> <p>Your personal auto insurance may provide coverage for limited business use of your car. But if your business owns vehicles or your personal vehicle is primarily used for business purposes, you’ll need business vehicle insurance.</p> <h4>Workers compensation insurance</h4> <p>If you have employees, you’ll want to strongly consider purchasing workers compensation insurance to cover costs if an employee is hurt on the job. Workers compensation insurance provides wage replacement and medical benefits to employees injured in the course of employment, in exchange for relinquishing the right to sue the employer. In some states, workers compensation insurance is mandatory, so be sure to check your state’s workers compensation website for local requirements.</p> <p>Other types of insurance may be suitable for your home-based business as well. Your insurance professional can help you evaluate your needs and select insurance to meet your budget.</p> <p>Source: <a href="http://www.iii.org" target="_blank">Insurance Information Institute</a></p> 840Cyber risk...cyber securityhttps://www.dfmurphy.com/blog/PostId/886/cyber-risk-cyber-security-and-covid-19.aspxBusiness InsuranceTue, 27 Feb 2024 15:21:00 GMT<p>Cyber security and the risk of a data breach are greater than ever.  Yet, many businesses have fully considered the increased cyber security risk. The coronavirus pandemic has changed how almost every company operates and accelerated the landscape of cyber risk:</p> <ul> <li>Many companies have adopted work-from-home policies resulting in more remote access to company systems and data via laptops and cellphones. In some cases, employees may be using their own personal devices to connect or conduct company business. </li> <li>Electronic meetings via Zoom and other platforms to conduct company business have created additional opportunities for hacking.</li> <li>Businesses have changed their operations including, in some cases, expanding e-commerce offerings and payment methods. </li> <li>Stress on IT infrastructure and resources from both a systems and staffing perspective.</li> </ul> <h2>Increasing Cyber Risk</h2> <div>Due to the growing reliance on technology, cyber risk has long been considered a top risk for organizations in coming decades; however, <strong>with the arrival of the coronavirus, many companies are realizing that cyber concerns, which seemed years off, have become a reality within a matter of weeks</strong>...and the challenges are accelerating.  </div> <ul> <li>The increase in number of people working remotely has increased the number of targets for cyber attackers using phishing scams and malware on the newly remote workforce. </li> <li>Fast deployment of work-from-home may result in system access vulnerabilities and increases the risk of lost devices. </li> <li>Changes in operations requiring expanded online functionality including payment and other e-commerce features has potential liability concerns for security of customer data.</li> </ul> <p><strong>Despite the challenges of this rapid change, many cyber risks are known</strong>; therefore, they can be anticipated and with proper planning mitigated through prevention efforts. </p> <p>In addition to reviewing data security protocols and increased training. More and more businesses are now purchasing Cyber Liability insurance as part of their risk management plan. Cyber Insurance can help businesses to be financially protected for instances when a data breach or other cyber risk occurs despite their best efforts.   </p> <h3><img alt="Cyber Risk and Liability" src="/Portals/0/cyber_crime.jpg?ver=2020-06-30-155410-900" style="margin-left: 25px; margin-right: 25px; float: right; width: 300px; height: 200px;" />Two key areas of risk</h3> <h4><strong>Increased phishing and malware attacks</strong></h4> <p>Put your employees on alert. Law enforcement and cyber experts have reported dramatic increases of cyber criminals using the coronavirus as an opportunity to send phishing emails and spread malware attacks, which if successful can collect login credentials, account numbers, and other sensitive personal and business information.</p> <p>The best line of defense is training staff on how to identify red flags of social engineering phishing scam and to follow proper protocols if they receive suspicious communications. Here are links to two helpful resources that can help you and your staff learn how to identify scams.</p> <ul> <li> <p>The Federal Trade Commission has an informative guide on <strong><a href="https://www.consumer.ftc.gov/articles/how-recognize-and-avoid-phishing-scams" target="_blank"><span style="color:#c0392b;">How to Recognize and Avoid Phishing Scams</span></a></strong> with additional information that you can use to train yourself and your staff on how to avoid phishing scams and what to do if you fall victim.</p> </li> <li> <p><a href="https://www.knowbe4.com/" target="_blank"><span style="color:#c0392b;">KnowBe4</span> </a>also has a helpful cheat sheet to help identify <strong><a href="https://www.dfmurphy.com/Portals/0/Social Engineering Red Flags.pdf?ver=2020-09-03-110824-107"><span style="color:#c0392b;">Social Engineering Red Flags</span></a></strong> in emails.</p> </li> </ul> <h4><strong>Systems and confidentiality exposures</strong></h4> <p>With employees working from home, the exposures increase exponentially especially if prior to the pandemic work-from-home wasn't typical for your organization. Also if your business has changed how it operates and conducts customer transactions, it's important to consider that these new activities are being properly managed to address security concerns. Assessing your company's preparedness and protection in the face of cyber and data risks requires considering security from a variety of angles.  Here are just a few to consider:</p> <ul> <li>Are employees remotely accessing your network using company issued or personal devices?</li> <li>Are you using security software to help detect threats, and is your system data backed up separately from your network?</li> <li>Have you established procedures for storage and access of sensitive company/customer information?  Have you maintained security with remote access?</li> <li>Have you established procedures to ensure that sensitive information is secure if using Zoom or other online meeting tools?</li> <li>Have you changed how your business provides services and conducts transactions/payments such as online payment that could impact storage and protection of private personal information?</li> </ul> <div><br /> Depending on how you answered these questions you may feel confident that you are doing all you can to protect from cyber risks or you may find that you have areas that require improvement.</div> <div> </div> <div> <h2>How Cyber Liability insurance helps protect your business</h2> <p><img alt="cyber security" src="/Portals/0/cyber-security.jpg?ver=2020-09-03-155409-863" style="margin-left: 25px; margin-right: 25px; float: right; width: 300px; height: 180px;" />Cyber Liability insurance protection addresses the first- and third-party risks associated with e-business, the Internet, networks and informational assets. While some general insurance liability policies may offer limited protection in the event of a data breach, typically the coverage provided isn't sufficient for a significant cyber liability event. The category of Cyber Liability includes security breaches; data theft; virus transmission; privacy issues; copyright, trademark and intellectual property infringement; libel or any other issues that first parties can pass to third parties via the Internet. Some of the types of claims that may occur include:</p> <ul> <li>Accidental release of confidential customer information</li> <li>Spreading a virus into a customer’s computer system</li> <li>Theft of customer’s credit card or banking account numbers</li> <li>Identity theft resulting from data breach</li> <li>Denial of service attack hacking</li> <li>Electronic data extortion or destruction</li> <li>Interruption of business operation due to system being down</li> <li>Webmaster uses another site's content in site development</li> </ul> <p><br /> While the exposures outlined above are not all inclusive, and no policy covers every risk, Cyber Liability insurance can make all the difference in helping your business avoid a crippling financial impact if a system or data breach occurs despite your mitigation efforts. <strong>To learn more about getting Cyber Liability coverage for your business, <a href="https://www.dfmurphy.com/resources/Forms-Center/Contact-Us.aspx">contact us</a></strong>. We look forward to helping ensure your business has the protection in needs especially during these challenge times of accelerated risk.</p> </div> <div> </div> 886Workers' compensation: 3 key factors to considerhttps://www.dfmurphy.com/blog/PostId/721/Workers-compensation-3-key-factors-to-consider.aspxBusiness InsuranceWed, 21 Feb 2024 15:54:00 GMT<p>Workers’ compensation insurance protects employees from financial hardship after they suffer injury or illness on the job. It pays for direct medical expenses and wage replacement while the employee is unable to work due to the injury. In Massachusetts, all organizations that have employees are required to purchase it, whether they have just one part-time employee or if they have employees working in other states. (If you do have employees in several states, you may need to purchase additional coverage as laws vary among states.)</p> <p><img alt="workers compensation" src="/Portals/0/accident%20fall%20icon.jpg?ver=2020-01-29-132402-457" style="width: 250px; height: 300px; margin: 25px; float: left;" />In Massachusetts, the Division of Industrial Accidents manages the workers’ comp system. It establishes codes for every job type and sets a corresponding base rate. Your company’s base premium is calculated by multiplying your payroll in a given class code by the state-set rate. This amount is then multiplied by your company’s actual claims experience to establish your premium.</p> <p>The two factors that determine claims experience for businesses are frequency of claims, measured by the Experience Modification Factor (Mod), and severity of claims, measured by the All Risk Adjustment Program (ARAP). The claims history used to calculate these metrics is the three oldest of the prior four years. For example, a 2019 policy looks at claims experience for 2015, 2016 and 2017.</p> <p>When you’re looking for a provider of workers’ compensation insurance, take these three factors into consideration:</p> <h4>1. Claims Management </h4> <p>Efficient claims handling keeps claim costs down and reduces any negative impact to your Mod and ARAP. Some providers offer guidance for developing a “return to work” program, which can help an injured employee return quicker. For instance, an employer may have or may create a position with less rigorous physical requirements to allow an employee to return earlier. This helps reduce claim costs. Choosing a provider that offers such assistance can be valuable.</p> <h4>2. Discounts</h4> <p>Some insurance companies offer a scheduled deviation from the state set workers’ comp rates, which provides a guaranteed discount for the policy period. Other companies may offer a dividend plan, through which the claims experience and discount amount are calculated when the policy year is over. Such dividends are not guaranteed and are generally based on the individual’s experience as well as the overall performance of all policyholders participating in the dividend plan.</p> <h4>3. Proper Classifications</h4> <p>Using proper job classifications for your workforce is essential. While overpaying due to wrong class codes is always a concern, underpaying can be equally problematic since an audit may result in a large premium adjustment. Working with a knowledgeable agent helps you avoid problems. Policies are audited at the end of each policy term, and a premium charge or credit is made if actual payrolls differ from the estimates used to calculate the original premium.</p> <p>Workers’ comp and other insurance policies are only one component of a complete enterprise risk management program. The best advice is to seek a qualified agent you can trust, then work in conjunction with the agent, the insurance company and the insurance company’s loss control department to build a well rounded program. Accidents happen, but the best way to contain costs is to provide as safe a work environment as possible.</p> 721Changing “garaging”? Don’t delay telling your agent!https://www.dfmurphy.com/blog/PostId/781/Changing-garaging-Dont-delay-telling-your-agent.aspxBusiness Insurance,Personal InsuranceWed, 24 Jan 2024 19:54:00 GMT<p> </p> <p>The location where your vehicle is<strong> primarily parked overnight</strong> is termed the “garaging location”. If the garaging location changes, your auto insurance policy states that you are required to notify the insurance company immediately. There is no grace period for notification; therefore, it’s a good idea to let your agent know in advance when a garaging change will occur. Be sure to notify your agent if you (or a family member):</p> <p><strong>Moves to a new home or apartment </strong></p> <p><strong>Takes a vehicle to college or is returning home from college for the semester</strong></p> <p><strong>Loan your car to someone for an extended period</strong> – Be sure the driver is listed on your policy</p> <p><strong>Take your car on an extended stay at another location:</strong></p> <ul> <li>at second or vacation home</li> <li>visiting friends at their home</li> <li>military service</li> <li>living away from home for work</li> </ul> <h3>Claims can be denied for failure to notify</h3> <p><strong>Failing to notify the company of a garaging change can result in an auto insurance claim being denied. </strong>The reason that garaging is such a serious issue is that auto insurance premiums are determined in part based on the garaging location. </p> <p><img alt="" src="/Portals/0/Parked%20Car.jpg?ver=M6TG-Y3LSZ254IZrGxOaSw%3d%3d" style="width: 300px; height: 200px;" />Different geographic locations are rated differently and have different premiums based on the area’s accident and theft history. When your garaging changes, the new location may have an <strong>increased risk of accidents or theft</strong>…requiring an increase of premium to cover that additional risk. Conversely, you may find that the new garaging location has <strong>no increased risk</strong>, which leaves your premium the same. Or, it could<strong> decrease the risk</strong> profile resulting in a lower premium. It all depends on where you move.</p> <p>Admittedly, no one wants to see their premium go up, but it’s not worth delaying notifying the company because having a claim denied based on a wrong garaging address could be an expensive situation.</p> <h3>Check with us before you move</h3> <p>If you’re looking to buy a home or rent an apartment in a new city or town, you may want to check with us regarding how the move will impact your auto insurance premium. If the move will result in a substantial increase, it may impact your decision and cause you to consider locating to a different nearby town that has a lower rate. This may seem extreme, but if you’re budget conscious, then it’s wise to consider all the facts before you finalize your plans.</p> 781Massachusetts snow removal laws and liabilityhttps://www.dfmurphy.com/blog/PostId/807/Massachusetts-snow-removal-laws-and-liability.aspxBusiness Insurance,Personal InsuranceTue, 09 Jan 2024 16:36:00 GMT<h2>Keep those shovels ready</h2> <p><img alt="Winter Shoveling" src="/Portals/0/winter%20shoveling.jpg" style="width: 225px; height: 301px;" title="Winter Shoveling" />Winter is underway and we’ve already had the first snow fall of the season. If you own residential or commercial property, it’s essential to understand your legal responsibilities regarding snow removal. The state you live in has laws that dictate snow removal and in many cases, your city or town may have local ordinances or by-laws that further define snow and ice removal responsibilities.</p> <p>In 2010, Massachusetts snow removal law underwent a major change with a <a href="http://www.dfmurphy.com/resources/News-Articles/ID/27/Massachusetts-snow-removal-law.aspx">Supreme Judicial Court Ruling</a> that overturned a 100+ year-old Massachusetts Rule that previously allowed property owners to not shovel “natural accumulations” of snow without liability. With the change in the law, all property owners (owner-occupied and rental) now have a legal obligation to keep their property free from snow and ice for the safety of visitors and guests…whether it’s “natural” or “unnatural” accumulations.</p> <h3>When do you have to shovel or treat icy surfaces?</h3> <p>Because of the dangers caused by snow and ice, it’s wise to shovel and treat surfaces as quickly as possible. If a danger exists, you have liability. Some cities and towns specify a minimum time by which surfaces must be cleared after a storm, but you may need to clean snow sooner; i.e. Boston -  businesses 3 hours and residents 6 hours; Worcester – 12 hours.</p> <h3>Do you have to shovel sidewalks in front of your house/business?</h3> <p>Most Massachusetts cities and towns require property owners to clear sidewalks but also check your city or town ordinances. Often you can be fined for failing to remove snow.  Also remember that shoveling snow out into the street is not allowed and is a fineable offense.</p> <h3>Can you transfer responsibility for shoveling to tenants?</h3> <p>Landlords have the primary responsibility for snow removal at rental properties, which can’t be transferred by language in a lease. Property owners are responsible by law to keep all egresses free of obstruction. The only exception is when a dwelling has its own egress that is not shared with other units. In this case, a landlord may require in a lease for the tenant to be responsible for snow and ice removal of the entrance. However, this exception does not apply to the driveway or parking areas and so may not guarantee transfer of liability in some situations. It’s probably not worth taking a chance and relying on the tenant.</p> <h3>Do homeowners, dwelling fire, and commercial general liability policies cover injuries if someone slips and falls?</h3> <p>Typically, yes. Standard policies generally cover you if someone slips and falls on your property.  Be sure you purchase sufficient liability coverage of at least $500,000 or $1,000,000. For many homeowners, the additional cost to increase coverage to $1,000,000 is very small. When a lawsuit happens, you can never have enough insurance…ask any attorney!</p> <hr /> <h3>Helpful Links</h3> <p><a href="http://www.mass.gov/courts/case-legal-res/law-lib/laws-by-subj/about/snow.html" target="_blank">Massachusetts Law about Snow & Ice</a></p> <p><a href="https://www.nhmunicipal.org/town-city-article/winter-maintenance-roads-and-sidewalks" target="_blank">New Hampshire Law about Snow & Ice</a></p> <p><a href="http://www.cityofboston.gov/snow/" target="_blank">City of Boston Snow Center</a></p> <p> </p> 8079 Tips For Buying Commercial Auto Insurance…and Saving https://www.dfmurphy.com/blog/PostId/831/9-Tips-For-Buying-Commercial-Auto-Insuranceand-Saving-.aspxBusiness InsuranceMon, 18 Dec 2023 16:35:00 GMT<p>If your business needs commercial auto insurance whether it’s for a single vehicle or a whole fleet, you want commercial insurance that is both affordable as well as provides proper protection. Below are a few tips for buying commercial auto insurance that will help you manage costs but at the same time ensure you’re properly protected.</p> <p><strong>Check employee driving records before you hire.</strong> When hiring an employee, who will drive a company vehicle or use their own vehicle as part of their job, perform a Department of Motor Vehicles screening before hiring because the driving records of employees impacts your premium. Having employees with good driving records listed on your commercial auto policy will help keep your premium low. Employees with poor driving records not only adversely affect your premiums but can put the entire future of your business at risk.</p> <p><strong>Buy ‘hired & non-owned vehicle’ coverage.</strong>  Employees often use their own vehicles for business errands/purposes. Also, you may borrow a vehicle or rent a car on a business trip. These are situations where a commercial auto policy excludes coverage unless you purchase optional Hired and Non-owned Auto Liability and Hired Auto Physical Damage coverage. It’s a small additional cost to ensure you’re protected.</p> <p><strong>Make sure your insurance carrier will add an “additional insured”. </strong>If your business involves contracts that could require you to have another party added as an additional insured to your policy, be sure the carrier you chose can handle this need.</p> <p><strong>Buy ‘driver other car’ coverage. </strong>If you own the business and don’t have a separate personal auto policy because all vehicles are owned by the company, be sure to add this coverage to your commercial auto policy so that you (and your spouse) are covered if you drive another vehicle for personal use (excluding other vehicles owned by a household member), i.e. borrowing a friend’s car. It provides coverage similar to a personal auto policy.</p> <p><strong>Buy ‘rental reimbursement’ coverage.</strong> If your company vehicle is damaged in an accident and has to go into the shop for repairs, this coverage will help to cover the costs of renting a replacement vehicle.</p> <p><strong><img alt="Commercial Vehicles" src="/Portals/0/Commercial%20Vehicles%20sm.jpg" style="width: 300px; height: 271px;" title="Commercial Vehicles" />Purchase higher limits for better protection.</strong> Understandably you want to keep your premiums low, but there’s no more expensive policy than one that doesn’t have sufficient coverage to protect you if you’re sued.  In today’s litigious society, people sue quickly and judgements can be in the hundreds of thousands of dollars or more. Don’t skimp on liability coverage. If your business needs more coverage than available on an auto policy, consider an umbrella liability policy to extend your protection.</p> <p><strong>Combine commercial auto with a BOP or package policy.</strong> Having your Commercial Auto with the same carrier that writes your Business Owner Policy or Package may provide you with an opportunity for discounts depending on your situation.</p> <p><strong>Pay with EFT. </strong> Many insurance companies will waive installment fees if you make your payments using Electronic Funds Transfer withdrawal of your payment from your bank account.  Not only does this save on fees, but it can save you time and avoid the possibility of missing a payment, which can result in late fees as well as possible cancellation.</p> <p><strong>Increase your deductible. </strong>The higher your deductible, the lower your premium, so evaluate what you can afford to pay if you have to file a claim. Over time, the premium savings can offset the deductible amount you’d have to pay. Be sure not to set the deductible to an amount you can’t afford easily because claims can happen at any time.</p> <p><strong><a href="https://www.dfmurphy.com/resources/Forms-Center/Contact-Us.aspx">Contact us</a></strong><a href="https://www.dfmurphy.com/resources/Forms-Center/Contact-Us.aspx"> </a>to review your auto insurance coverage and compare options.</p> 831Snow plowing liability...Completed operationshttps://www.dfmurphy.com/blog/PostId/760/Snow-plowing-liabilityCompleted-operations.aspxBusiness Insurance,Personal InsuranceWed, 15 Nov 2023 16:29:00 GMT<p>With winter comes snow and snow plowing. If you plow snow as part of your business or as a side business, you need to consider liability protection for completed operations in addition to auto insurance. Changes to Massachusetts Laws in 2010 increased the snow removal liability risk for property owners and snow plow contractors, which has made having proper protection increasingly important.  </p> <h3>Auto policy coverage</h3> <p>An auto policy provides coverage during the plowing process. For example, if your truck accidentally hits a parked car and scrapes its side, your auto policy would pay for damage to the parked vehicle.</p> <h3>Completed operations liability and coverage</h3> <p>What about your liability after the snow plowing operation is done aka “completed operations"?<img alt="Snow Plow" src="/Portals/0/SnowPlowsm.jpg" style="width: 250px; height: 119px;" title="Snow Plow" /></p> <ul> <li>What is the condition of the surface?</li> <li>Is there snow/ice remaining?</li> <li>What if someone slips and falls?</li> <li>Does your auto policy provide coverage? “No” because the vehicle was not involved.</li> </ul> <p>To have “completed operations” liability coverage in the event of a slip/fall claim or other situation, it is critical for a snow plowing business to have a general liability policy.</p> <h3>Other issues to keep in mind.</h3> <ul> <li>The value of a snow plow and hitching equipment is not covered by a personal or commercial auto policy unless it is listed as optional equipment. Provide your agent with a receipt or documentation so that the value of your plowing equipment can be added to your policy.</li> <li>If using your personal vehicle to plow for a fee, your personal auto policy needs to be classified for “Business Use”; otherwise, you may not have coverage for a plowing related claim.</li> <li>If you are required to list an “Additional Named Insured” on the policy, you will need a commercial auto policy not a personal auto policy.</li> </ul> <p>Please give us a call or drop us an <a href="mailto:assistance@dfmurphy.com?subject=Snow%20Plow%20Insurance%20Coverage">e-mail</a> if you have questions about snow plow coverage. We want to help you get the coverage you need. </p> 760When disaster strikes: preparation, response and recovery for businesseshttps://www.dfmurphy.com/blog/PostId/854/When-disaster-strikes-Preparation-response-and-recovery.aspxBusiness InsuranceMon, 02 Oct 2023 17:18:00 GMT<p>No business is totally immune from disaster. Every year, businesses temporarily shut down—or close forever—because of a disaster such as a flood, fire or hurricane. Forty percent of businesses do not reopen after a disaster and another 25 percent fail within one year, according to the Federal Emergency Management Agency (FEMA).</p> <p><img alt="" src="/Portals/0/business%20damage.jpg?ver=1h_VUQtMb3gtA5EL_1oyOw%3d%3d" style="margin: 15px; float: right; width: 300px; height: 200px;" />Fortunately, you can take proactive steps to mitigate the impact of a disaster on your business. In addition, carrying adequate insurance coverage can help your business get back on its feet quickly.</p> <h2>Disaster preparation</h2> <p>Households—especially in areas prone to hurricanes, tornadoes, and earthquakes—often prepare for disasters by storing extra supplies, having an evacuation plan, and learning about emergency resources. Businesses similarly want to prepare, with a focus on restoring their operations as soon as possible and minimizing losses. To prepare adequately for a disaster, take the following steps:</p> <ul> <li><strong>Develop a formal written plan</strong>—Sometimes called a “Disaster Recovery Plan” or “Business Continuity Plan,” this document should detail how your business will respond to and recover from a disaster, including temporarily relocating your business. The National Fire Protection Association (NFPA) has developed a <a href="https://www.nfpa.org/codes-and-standards/all-codes-and-standards/list-of-codes-and-standards/detail?code=1600" target="_blank">National Preparedness Standard</a> for developing a plan. Some businesses also develop specific plans to protect and recover their information technology (IT) infrastructure. In today’s era of cloud computing, it is increasingly easier to back up data offsite.</li> <li><strong>Train employees</strong>—Share your Disaster Recovery Plan with employees, assign responsibilities, and offer training so that your workforce can help your business recover. You may also want to conduct drills to assess and improve response.</li> <li><strong>Store emergency supplies</strong>—Keep flashlights, a first-aid kit, and a battery-powered radio on hand at your business. Depending on its location, you may even want to store food, water, and blankets. As feasible and needed, consider stocking equipment that can help your business return to operations, such as a generator.</li> <li><strong>Maintain key information offsite</strong>—To get your business up and operating again after a disaster, you’ll need to be able to access critical business information. In addition to backing up computer data, keep an offsite list of your insurance policies, banking information, and the phone numbers of employees, key customers, vendors and suppliers, your insurance professional, and others. You’ll also want to maintain an inventory of your business equipment, supplies, and merchandise; you may want to photograph items as well.</li> </ul> <h2>Disaster response and recovery</h2> <p>After a disaster, you’ll want to put your Disaster Recovery Plan into action. Read the Insurance Information Institute’s “Best Practices for Filing a Business Insurance Claim,” which details several steps to control damage and recover costs. In the immediate aftermath of a disaster, take the following actions as appropriate:</p> <ul> <li><strong>Secure your building</strong>, boarding up entry points if necessary.</li> <li><strong>Make temporary repairs</strong>, especially to minimize further damage, such as placing a tarp over a hole in your roof.</li> <li><strong>Relocate salvageable equipment and property</strong> to a safe, protected location.</li> <li><strong>Inspect your property</strong> and keep a detailed list of damages; take photos to document damage.</li> <li><strong>Clean up your property</strong>, taking care to wear safety gear such as gloves and protective eyewear. If feasible, save damaged property in case it needs to be inspected by your insurance adjuster.</li> <li><strong>Contact your insurance professional and your insurer </strong>to begin the claims process.</li> <li><strong>Keep receipts</strong> of all expenses related to the disaster.</li> </ul> <p>Once you’ve secured your property and taken other immediate steps, you can begin to focus on making your business operational once again. You should lay the groundwork for restarting operations in your Disaster Recovery Plan. Issues to consider include:</p> <ul> <li><strong>Location</strong>—Should you open a new temporary location or can you operate from your home or use the facilities of a partner or even a friendly competitor?</li> <li><strong>Communications</strong>—How will you communicate with your employees, customers, vendors, and suppliers?</li> <li><strong>Insurance claims</strong>—In addition to filing a property claim, you’ll want to file a business interruption insurance claim, if you carry this type of coverage. This insurance will help you cover the costs of relocating as well as lost income.</li> </ul> <p>Source: <a href="http://www.iii.org" target="_blank">Insurance Information Institute</a></p> 854Steps to take when renewing your insurancehttps://www.dfmurphy.com/blog/PostId/918/steps-to-take-when-renewing-your-insurance.aspxBusiness Insurance,Personal InsuranceWed, 27 Sep 2023 17:03:00 GMT<p>Even if you haven’t filed a claim, factors impacting the cost of insurance are outpacing inflation. Price surges caused by labor and supply chain issues have inflated repair and replacement costs for vehicles and property. Also, the increasing frequency and severity of accidents and other loss situations, such as weather-related disasters, are influencing overall rates. Our team of insurance professionals can work with you to ensure you’re getting the right amount of coverage at the right price…what we call a good value. Steps you can take to help manage your insurance protection are:</p> <p><span style="color:#505050"></span></p> <p><span style="color:#505050"></span></p> <p><span style="color:#505050"></span></p> <p><span style="color:#505050"></span></p> <p><span style="color:#505050"></span></p> <ul> <li><span style="font-family:Symbol"></span><strong>Review your coverages annually: </strong>When you receive your annual renewal notices for your policy from your insurance carrier, read them to review any coverage or premium changes and assess if any adjustments may be needed.</li> <li><strong>Consider raising your deductible:</strong> The deductible is the amount of loss paid by you before your insurance coverage kicks in. Having a higher deductible can result in savings, so discuss options with your insurance professional.</li> <li><span style="font-family:Symbol"></span><strong>Confirm possible discounts: </strong>Many insurers offer auto insurance discounts such as low-mileage and good student discounts, among others. Home insurers often give consumers discounts for some types of security systems. Multi-policy discounts for having all your insurance with the same carrier typically also provide savings. Talk to your insurance professional.</li> <li><span style="font-family:Symbol"></span><strong>Take steps to prevent losses:</strong> Having theft reduction devices are typically reflected in auto insurance premiums. Insurers welcome retrofits and renovations that strengthen residences. For businesses, risk reduction achieved through prevention methods, procedures, and training can favorably impact premiums.</li> <li><span style="font-family:Symbol"></span><strong>Keep in mind that value includes an insurer’s service: </strong>An insurer should be judged on factors besides the cost of their policies including the insurer's financial strength, services offered, and reputation for customer satisfaction.</li> </ul> <p><strong><strong><img alt="" src="/Portals/0/man%20reviewing.jpg?ver=a31dFmzg50UOdxNeJtWbYQ%3d%3d" style="width: 300px; height: 200px; float: left; margin-left: 25px; margin-right: 25px;" /></strong></strong>By being aware of the risks specific to your property, taking preventive measures when possible, and keeping an open dialogue with your insurance professional, you can help manage your insurance costs effectively.</p> 918Consequences of late Insurance paymentshttps://www.dfmurphy.com/blog/PostId/917/consequences-of-late-insurance-payments.aspxBusiness Insurance,General,Personal InsuranceThu, 21 Sep 2023 15:28:00 GMT<p>In the chaos of day-to-day personal or business life, bills can pile up. It’s not uncommon at some point to forget about a bill payment or feel that end-of-the-month crunch with a tight budget to consider deferring payment and incurring a late fee.  However, insurance premium payments are different from other bills…there’s more at stake. Late payments can impact your premium costs and insurability.</p> <p><span style="font-family:Calibri,sans-serif"></span></p> <h2>Late fees & other costs</h2> <p><img alt="Woman reviewing info on computer" src="/Portals/0/woman%20lizasm.jpg?ver=lxkdmNQLL5zdtizda3xQ3g%3d%3d" style="width: 280px; height: 200px; float: left; margin-left: 10px; margin-right: 10px;" />Although your insurance provider might offer you a few days grace period before issuing a cancellation notice, you will most likely be assessed a late payment fee for being past due. In addition, late payments can impact your insurance score, which is a rating calculated by insurance companies to represent the probability of an insurance claim being filed and can impact the premiums you pay. Payments need to be received by the due date, so leave enough time for delivery.</p> <p><span style="font-family:Calibri,sans-serif"></span></p> <h2>Cancellation</h2> <p>If you fail to make a payment, an insurance company has the right to cancel your policy and will issue a cancellation notice within a few days of not receiving payment. If payment is not received by the cancellation date, your policy will be canceled, and the company may choose not to reinstate it.</p> <p>If they do allow you to reinstate your canceled policy, they typically will require not only funds for the missed payment but also the next payment, and in some cases, may require payment of the remaining premium in full. So if finances were already a challenge causing a late payment, it will be more costly to get your policy reinstated.</p> <p>If they choose not to reinstate your policy, you’ll have to find a new insurance provider and could have to pay a higher premium for the same coverage or have difficulty finding a company to insure you.</p> <p><span style="font-family:Calibri,sans-serif"></span></p> <h2>Consequences of being considered a high-risk client</h2> <p>Missing one or more insurance payments can result in you being considered “high-risk” by insurance carriers. When your policy expires and is due to be renewed, your current insurance company may:</p> <ul> <li>increase your premium or;</li> <li>decide to not renew your policy, which effectively cancels it requiring you to find a new insurance provider.</li> </ul> <p><span style="font-family:Calibri,sans-serif"></span></p> <p>When applying for a policy with a different company, it will ask and verify if you’ve been canceled for nonpayment, and as a result, it may:</p> <ul> <li>require one annual payment not allow you to pay in installments and;</li> <li>charge you a higher premium; or </li> <li>not want to insure you even if you have a spotless claim record.</li> </ul> <p><span style="font-family:Calibri,sans-serif"></span></p> <p>If you can’t obtain insurance from a preferred “standard” carrier, then you may have to buy coverage from a “nonstandard” carrier that accepts higher risk, or you may have to go through a State program, which is referred to as assigned risk. Both these options will almost always result in having to pay higher premiums to obtain coverage.</p> <h2>How to Avoid Missing a Payment</h2> <p>With the above in mind, there are lots of reasons to avoid missed payments, and you can do so with a little planning. Here are some ideas that can help:</p> <ul> <li><strong>Automate payments using EFT automatic withdrawals.</strong> Avoids you having to remember to make manual payments. If you’re paying in installments, you may save money by eliminating installment fees. Be sure to use an account that you use regularly that doesn’t require a special transfer of funds to cover the payment which is a leading cause of missed payments. </li> <li><strong>Pay well in advance of your payment due date. </strong>Depending on how you are paying, be sure to leave enough time for the payment to be delivered. Postal mail is slower than it used to be, and even online banking can take a few days for payment to be made. </li> <li><strong>Pay in full if you can afford to do so. </strong>Installment payments can be helpful with cash flow, but making one payment reduces the chances of missed payments. Paying in full can sometimes save you money with a pay-in-full discount, and you also avoid installment fees.</li> </ul> <p><span style="font-family:Calibri,sans-serif"></span></p> <p>If you’re having difficulty making a payment, please call and speak to your agent to discuss possible options. Don’t wait until your policy is canceled because it only causes more headaches.</p> 9173 Tips for avoiding audit surprises - business insurance audits, part 2https://www.dfmurphy.com/blog/PostId/790/3-Tips-for-avoiding-audit-surprises-business-insurance-audits-part-2.aspxBusiness InsuranceThu, 03 Aug 2023 19:11:00 GMT<p>Your past experience with insurance audtis has probably set your opinion of whether they are routine or something that you dislike.  if you've found audits challenging, consider following these tips help your business avoid audit surprises and make the process smoother in the future.</p> <h3>Don’t underestimate revenues or payroll</h3> <p><img alt="" src="/Portals/0/home%20business.jpg?ver=dq_GONSgxHWC-4rnO_C3Kg%3d%3d" style="width: 300px; height: 200px;" />Be as accurate as possible when estimating sales, payroll and subcontracted costs at the beginning of the policy term. The more accurate your estimates of these metrics; the less of an adjustment required at audit. Don’t overestimate and overpay because that can impact cash flows; however, don’t significantly underestimate either because it can result in large amount due when audited.  For example, a business estimates sales at $1,000,000 and the premium is $5,000. However, at policy term end, the audited sales are $2,000,000. The business now owes an additional $5,000 premium for the $1,000,000 in sales that was covered by the policy. This amount is due right away. </p> <h3>Get certificates of insurance for all subcontractors</h3> <p>If your business hires subcontractors, collect a certificate of insurance up front. Subcontractors who are not adequately insured may become the responsibility of the individual who hires them. This can result in an additional charge to your general liability and/or workers’ compensation premiums. Review certificates to be sure that:</p> <ul> <li>your company is listed as the certificate holder;</li> <li>if your company is being listed as an additional insured... request a copy of the additional insured endorsement with the certificate;</li> <li>there is coverage for applicable general liability, auto liability, umbrella liability and workers’ compensation. For workers’ comp, if the subcontractor is a sole proprietor or partnership, be sure that owners aren’t excluded from coverage; otherwise, they will be rated on and covered by your policy;</li> <li>limits for applicable general liability, automobile liability and umbrella liability are at the per occurrence, aggregate and product/completed operations aggregate levels that you expect and/or that are outlined in any contracts;</li> </ul> <p>It’s a good idea to set a follow-up procedure to obtain updated certificates prior to the expiration to ensure that coverage remains in place.</p> <p>We recommend that certificates should only come from the insurance agency or company to ensure accuracy. Having certificate documentation will help prevent issues at the time of audit. Retain copies of certificates even after the job is done in case a situation arises at a later date and you need to provide evidence that the subcontractor had insurance at that time.</p> <h3>Communicate with your insurance agent</h3> <p>If you anticipate that your actuals will be significantly higher than the estimates used to set the policy premium, pick up the phone and talk with your agent. You may land a big client and have an unexpected increase in sales or need to hire more employees due to an expansion. By making an adjustment to your policy mid-term, it avoids getting a lump-sum due at the same time that the premium is due for your renewing policy. </p> <p>If you have questions about audits or your policies, please contact us for assistance.</p> 790Understanding insurance audits - business insurance audits, part 1https://www.dfmurphy.com/blog/PostId/789/Understanding-insurance-audits-business-insurance-audits-part-1.aspxBusiness InsuranceThu, 13 Jul 2023 19:09:00 GMT<p>Depending on who you ask, the reaction to insurance audits vary from “it was no big deal” to ”mildly annoying” to “frustrating”. As an agent, we wish that every audit fell in the “no big deal” category. By having a clear understanding of why audits are conducted, being as accurate as possible upfront with policy applications and maintaining proper documentation, businesses can make the audit process easier and avoid surprises.</p> <h3>Why audits are necessary</h3> <p>Insurance audits are common with general liability, workers’ compensation, marine and some other policies. When these policies are issued, the level of protection to cover a business for potential claims and the corresponding premium are based on rating factors that may not be known with certainty at the beginning of the policy term.</p> <p><img alt="" src="/Portals/0/accounting.jpg" style="width: 250px; height: 170px;" />A general liability policy may be based in part on a company’s gross revenues. A workers’ comp policy is based on payroll amount and job classification codes of workers. Using such factors, a best estimate of claim exposures during the policy term is established based on historical information or predictions. However, a company’s actual numbers for these factors can change dramatically within a year.</p> <p>The insurance company makes a commitment to cover the business’ risks during the policy term even though it can’t determine the exact level of risk. In exchange, the business agrees that the insurance company can verify (audit) the actual revenues, payroll, etc. and retroactively adjust the premium. Generally, if an audit identifies that actuals are higher than the initial estimate, then a bill is issued for the additional premium owed. Likewise, if the actuals are lower, the business typically receives a premium refund usually in the form of a credit on your current policy.</p> <p>It’s similar to a contractor hired to repaint the interior walls and trim of a house.  He estimates the work and supplies and sets a price of $3,000 to do the job and is hired.  During the job, the owner decides to also have the ceilings painted. Given the expanded scope, the contractor has to adjust his pricing and adds an additional $1,000 to the job for the extra work provided. When the specs change, so does the price.</p> <h3>Benefits</h3> <p>Audits make sure that a business isn’t over or underpaying for the protection it receives. They also help to avoid a business having deficiencies in its coverage that can expose the organization financially if faced with a lawsuit and high settlement costs.</p> <h3>Preparing for an audit</h3> <p>Audits are typically a simple process of providing evidence of sales or payroll. Businesses can make the audit process smoother by having their insurance documentation ready before an auditor arrives. Some insurance companies ask the insured business to complete a self-audit by submitting documentation in advance, which may be followed up by an auditor if there are questions. Keeping accurate records throughout the year can makes it easier to gather the needed documentation at audit time.</p> <p>For a workers’ comp audit, a company’s federal tax return payroll information and job descriptions typically allow the auditor to compare if the amount and classifications of work match the exposures outlined when the policy was first issued. If a company uses subcontractors, it should have available documentation to show that the subcontractors purchased their own workers’ comp coverage. For a general liability audit, the documentation varies by company and metric basis used to set the premium. The insurance company will indicate what documentation it needs such as general ledger, income statement or tax forms. When payroll is the metric, it includes records for any subcontractors.</p> 789Massachusetts mulch fire-safety laws and safety tipshttps://www.dfmurphy.com/blog/PostId/738/Massachusetts-mulch-fire-safety-law.aspxBusiness Insurance,General Safety and Info,Personal InsuranceTue, 30 May 2023 14:19:00 GMT<p>With the arrival of Spring, we thought it would be a good time to remind property owners about safety issues when sprucing up their landscaping and applying fresh mulch.  Mulch is combustible, and every year there are hundreds of small and large fires that are started by improperly discarded smoking materials igniting mulch. Mulch fires often can be well underway before they are noticed, which creates the big risk that a small outdoor mulch fire can quickly spread to buildings. In recent Massachusetts history, there have been a number of large apartment fires that have resulted in loss of life and multi-million dollar property losses not to mention hundreds of people being displaced and losing their possessions. Yet, it doesn't have to be a huge fire to be important. If it was your home that was lost due to a mulch fire that would be tragic.</p> <h2>Regulation on Mulch Safety</h2> <p><img alt="" src="http://www.dfmurphy.com/Portals/0/mulch.jpg" style="font-size: 12px; margin: 15px;" />In Massachusetts, safe use of mulch is regulated through <a href="https://www.mass.gov/regulations/527-CMR-100-massachusetts-comprehensive-fire-safety-code">527 CMR 1.00, section 10.14.10.4</a>. The regulation prohibits new application of mulch within 18" around combustible exteriors of buildings, such as wood or vinyl, but not brick or concrete. The regulations apply to all commercial properties and residential buildings with more than six units.  However, while residential properties with six or less units are exempt, it is smart for all homeowners to adopt these practices for safety. Having your grounds look their best is admirable, but no one wants to their beautification efforts be the reason that their property goes up in flames.</p> <h2>Tips for Property Managers, Building Owners & Landscapers</h2> <p> </p> <ul> <li>Provide a minimum of an 18-inch clearance between landscape mulch beds and combustible building materials, such as wood, vinyl siding and decks.</li> <li>Use non-combustible mulch such as rock or pea stone around gas meters and combustible portions of the structure.</li> <li>Provide proper receptacles for smoking materials at all entrances to public buildings and in designated smoking areas. Place them at least 18" away from the building, do not mulch in these areas and remember to regularly empty smoking receptacles.</li> <li>Grounds and maintenance crews should be aware when conditions are favorable for mulch fires and increase surveillance of mulch beds.</li> <li>Keep mulch beds moist when possible.</li> </ul> <p><strong></strong></p> <p>By following these tips, you can help to reduce mulch fire risks.  So, whether you mulch for aesthetics or more as a way of keeping down weeds, we hope you  enjoy the spring and may all the plantings on your property grow and bloom with vigor. <strong>Happy mulching.</strong></p> 738Do I need business interruption insurance?https://www.dfmurphy.com/blog/PostId/897/do-i-need-business-interruption-insurance.aspxBusiness InsuranceTue, 16 May 2023 14:19:00 GMT<p>Most people would never consider opening a business without first purchasing property insurance to cover the cost to repair or replace a building or equipment that’s been damaged due to a covered peril. But too many business owners fail to think about how they would keep their business afloat if they were forced to temporarily close. Business income (interruption) coverage also known as business income coverage (BI), can help with operating expenses during the period of restoration, and includes:</p> <ol> <li><strong>Lost net income (based on financial records)</strong></li> <li><strong>Mortgage, rent and lease payments</strong></li> <li><strong>Loan payments</strong></li> <li><strong>Taxes</strong></li> <li><strong>Employee payroll</strong></li> </ol> <p><img alt="disaster recovery" src="/Portals/0/crisis.jpg?ver=J4SNpHa07gdXz-niwMCj3w%3d%3d" style="width: 250px; height: 167px; float: left; margin-left: 25px; margin-right: 25px;" />Business owners should make sure the policy limits are sufficient to cover their company for more than a few days. After a major disaster, it can take more time than many people realize to get “back in business.” Business income coverage likely has a "restoration period.” This is the length of time that a policy will help pay for lost income and extra expenses while the business is being restored. <em><strong>Typically, there’s a 48 to 72-hour waiting period before the period of restoration kicks in. The standard property policy limits the business income restoration period to 30 days, but this period can be extended to 360 days by endorsement.</strong></em></p> <p>A business owner’s policy (BOP) often combines property, liability and business income (interruption) coverages for small–to-midsize businesses. Coverage purchased as a package is generally less expensive than if purchased through separate insurance policies and can help ensure proper underlying limits are in place. Normally, companies with 100 employees or fewer and revenues of up to about $5 million or less are candidates for a BOP. Some types of businesses, such as restaurants, may be ineligible for a BOP because of the specific risks inherent in the business and may need to consider buying the individual coverages separately. An endorsement or rider can be added to a commercial property insurance policy that will extend the policy's coverage to business income (interruption) losses.</p> <p>Business income (interruption) insurance <em><strong>does not cover</strong></em>: </p> <ul> <li>Broken items resulting from a covered event or loss (such as glass)</li> <li>Flood or earthquake damage, which are covered by a separate policy</li> <li>Undocumented income that’s not listed on your business’ financial records</li> <li>Utilities</li> <li>Pandemics, viruses, or communicable diseases (such as COVID-19)</li> </ul> <h2>How much business income (interruption) insurance coverage is needed?</h2> <p>A good rule of thumb is to use a business’s gross earnings and projections to estimate future profits and determine the right amount of coverage. Remember, if business income (interruption) costs exceed the coverage limit chosen, the business owner will have to pay out of pocket for any extra expenses.</p> <h2>How much does business income (interruption) insurance cost?</h2> <p>It depends on a number of factors, including your: </p> <ul> <li>Industry</li> <li>Number of employees</li> <li>Amount of coverage</li> <li>Prior claims experience (if you’ve had to file any claims with your insurer)</li> </ul> <p>The price of the policy can also vary depending on your location. For example, if the business is in an area with a higher risk of hurricanes, the cost of business income (interruption) insurance may increase. A restaurant might have higher premiums than a real estate agency, for example, because of the greater risk of fire. Also, a real estate agency can more easily operate out of another location. </p> <h2>Options and endorsements to business income (interruption) coverage</h2> <h3>Contingent business interruption insurance (also referred to as dependent properties)</h3> <p>Provides insurance coverage in the event the damage or destruction of <strong>non-owned property</strong> reduces or terminates the business owner's earnings. With COVID-19 disrupting global supply chains and sales, businesses are losing income and incurring additional expenses as a result of the interruption.</p> <p>There are four types of entities that qualify as eligible dependent properties:</p> <ol> <li><strong>Suppliers</strong>: Those contributing locations that supply the business owner with the parts, materials, or services necessary to manufacture its product or provide its service.</li> <li><strong>Buyers</strong>: A recipient location buys/accepts the products, goods, or services of the insured business owner. This may be a business owner’s sole buyer or one that buys most of the insured’s output.</li> <li><strong>Providers</strong>: Also known as "manufacturing location" A manufacturing location manufactures products for delivery to a business owner’s customers under contract of sale.</li> <li><strong>Drivers</strong>: Also known as a “Leader Location” These can include anchor stores (Target, Wal-Mart. Macy's, etc.), sports and entertainment venues, and other such entities that draw customers to the area.</li> </ol> <h3>Extra expense insurance</h3> <p>Business income (interruption) insurance can also include extra expense, which will cover anything beyond the normal day-to-day operating expenses that are necessary to keep a business solvent. Instances of extra expenses include:</p> <ul> <li>Renting a temporary place of business while the original place of business is being restored</li> <li>Replacement of hardware, technology and furniture</li> <li>Paying overtime for employees or hiring more employees</li> <li>Leasing equipment</li> </ul> <p>Extra expense insurance can be bundled in a Business Owner’s Policy (BOP), as a separate insurance policy or as a rider to a commercial property policy.</p> <h3>Civil authority</h3> <p>This coverage – w<em><strong>hich typically does not exceed two consecutive weeks </strong></em>– applies when a civil authority (e.g., state, local or federal governmental entity) prohibits access to an insured’s premises due to a government order as a result of physical damage to an adjacent or nearby property, not owned or controlled by the insured, but rather the adjacent property of another.</p> <p>Civil authority coverage extends business income (interruption) and/or extra expense coverage. <strong><em>Even when a government order prohibits or otherwise specifically restricts access to an insured premise, the policy may still require a direct physical loss before triggering coverage.</em></strong></p> <p>Note: In early February 2020 the Insurance Services Office (ISO) developed two new endorsement forms: “Business Interruption: Limited Coverage for Certain Civil Authority Orders Relating to Coronavirus,” and “Business Interruption: Limited Coverage for Certain Civil Authority Orders Relating to Coronavirus.” These forms provide coverage for actual loss of business income and extra expenses caused by a government order closing the insured’s premises or quarantining all or part of the premises and from government suspension of some modes of public transportation. If dependent properties are included in the coverage, such as a supplier’s or customer’s premises, then the coverage applies to the dependent property as well. Note that the forms were not filed with any states and are not being added to ISO’s form portfolio.</p> <h3>Utility services</h3> <p>A utility services endorsement extends business income (interruption) and/or extra expense coverage to apply to a suspension of operations caused by a disruption of basic utility services to a business’s premises such as electric, gas or water provided by public or private utility companies</p> <p>There are two specific endorsements that should be considered:</p> <ul> <li><strong>Time element:</strong> In the event winds break down a power line or a water main is broken, this coverage can cover losses, including loss of income and expenses, up to a predetermined time limit or until the power or water service is restored.</li> <li><strong>Direct damage:</strong> This endorsement is an extension of property insurance, providing protection against damage to a business owner’s property resulting from an interruption of any of the utility services named in the policy as a result of a covered cause, such as a windstorm.</li> </ul> <h2>Understanding the limitations of business income (interruption) coverage</h2> <ul> <li>While business income (interruption) insurance can help a business survive a disaster, there are limitations and exceptions to this type of coverage. If a business owner obtains business interruption coverage as part of a commercial property policy, the coverage will only extend to events delineated in the core coverage. If the property insurance does not cover flood damage, the business owner cannot receive business income (interruption) insurance if the company is displaced because of a flood.</li> <li>There are also time limits on business income (interruption) coverage, so business owners should be sure to discuss limitations and exceptions with their insurer or insurance professional.</li> </ul> <div> </div> <div>Source:  <a href="http://www.iii.org" target="_blank">Insurance Information Institute</a></div> 897Covering losses with business interruption insurancehttps://www.dfmurphy.com/blog/PostId/798/Covering-losses-with-business-interruption-insurance.aspxBusiness InsuranceFri, 07 Apr 2023 20:14:00 GMT<p>Standard property insurance covers physical damage and losses—furniture destroyed in a fire, a storm-damaged office building or stolen equipment. This coverage can help you pay the costs of rebuilding or replacing damaged property. But what about losses resulting from your business’s inability to operate because of property damage? For this type of loss, you’ll need business interruption insurance, also known as business income insurance.</p> <h2>Coverage to keep your business afloat</h2> <p><img alt="business interruption insurance" src="/Portals/0/crisis.jpg?ver=2020-08-03-104626-640" style="float: right; width: 300px; height: 200px;" />When your business is shut down due to a damaging event—a fire or windstorm, for instance—you lose revenue. In addition, your business is still obligated to pay its bills and may incur additional expenses as a result of the disruption. Fortunately, if you have business interruption coverage, many of these costs and losses can be reimbursed. Generally, business interruption insurance will cover:</p> <ul> <li>Revenue lost due to the closure.</li> <li>Fixed expenses, such as rent and utility costs.</li> <li>Expenses of operating from a temporary location.</li> </ul> <p>Your policy may cover additional extra expenses associated with the disruption—for instance, advertising to announce your new temporary location.</p> <p>To receive appropriate reimbursement from your business interruption coverage, there must be direct physical damage to the property resulting from an insured event.</p> <p>Determining a business interruption loss involves establishing what the business would have earned had the loss not occurred. Insurance companies take into account past tax returns, profit and loss statements, projected sales and non-continuing expenses. It is crucial to keep very accurate records so that your business interruption losses can be properly projected.</p> <h2>Obtaining business interruption coverage</h2> <p>Business interruption coverage is not sold as a stand-alone policy. It can be obtained as part of the following types of policies:</p> <ul> <li><strong>Commercial Property Insurance</strong>—You can add an endorsement or rider to commercial property insurance that will extend the policy’s coverage to business interruption losses.</li> <li><strong>Business Owners Policy</strong> (BOP)—Intended for small businesses, this type of insurance package policy includes property, liability and business interruption coverage.</li> <li><strong>Commercial Package Policy</strong> (CPP)—CPPs are flexible policies that can be customized with a range of options, including business interruption coverage.</li> </ul> <p>Other types of policies may include business interruption coverage for certain circumstances. For instance, some kidnap and ransom policies will cover business interruption loses resulting from a covered event.</p> <h2>Understanding the limitations of business interruption coverage</h2> <p>While business interruption insurance can help your business survive a disaster, there are limitations and exceptions to this type of coverage. If you obtain business interruption coverage as part of a commercial property policy, the coverage will only extend to events delineated in the core coverage. If your property insurance does not cover wind damage, you cannot receive business interruption insurance if your company is displaced because of a windstorm.</p> <p>There are also time limits on business interruption coverage, so be sure to discuss limitations and exceptions with your insurer or insurance professional, and whether purchasing extended business income coverage is a good option for your business.</p> <p><a href="https://www.dfmurphy.com/businessquote.aspx">Contact us</a> to have a discussion about your business protection needs.</p> <p> </p> <p>source: <a href="http://www.iii.org">Insurance Information Institute</a></p> 798Does your business comply with MA independent contractor law?https://www.dfmurphy.com/blog/PostId/823/Does-your-business-comply-with-MA-independent-contractor-law.aspxBusiness InsuranceWed, 14 Sep 2022 18:53:00 GMT<p><script data-cke-temp="1">(function(){for(var a;;)try{a=window.parent.document.domain;break}catch(b){a=a?a.replace(/.+?(?:\.|$)/,""):document.domain;if(!a)break; document.domain=a}return!!a})();</script>Does your business use “independent contractors” to augment its workforce? You may have needs that require hiring skilled workers on a short- or long-term basis. Certainly, there can be benefits to your business to hire non-employee workers.  However, there are federal and state laws that regulate employers classifying workers as independent contractors, and there are penalties if you misclassify workers. </p> <p>Are you in compliance with Massachusetts Independent Contractor Law (MICL)? (M.G.L. c. 149, §148B) Established in 1990, the law initially focused on the construction industry; however, as of 2004, Massachusetts is among nineteen states that have a very strict “three prong test". This expanded implications of hiring independent workers to many other types of businesses.  As a result, many that have used “independent contractors” can no longer classify these workers as such anymore unless they truly meet the standards of the test.</p> <h2>Three-part test</h2> <p><img alt="" src="/Portals/0/3%20checks%20list.jpg?ver=2020-09-01-133202-987" style="margin-left: 25px; margin-right: 25px; float: right; width: 250px; height: 250px;" />In order to be classified an “independent contractor”, a worker must meet ALL three of the following criteria:</p> <ol> <li>the worker is free from employer’s control and direction in performing the service, both under a contract for performance of service and in fact;</li> <li>the service provided by the worker is performed either outside the employer’s usual course of business or is performed outside of all the places of business of the enterprise for which the service is performed; and</li> <li>the worker is customarily engaged in an independent trade, occupation, profession, or business of the same type.</li> </ol> <h2>What should businesses do?</h2> <p>Companies using independent contractors need to evaluate these relationships to determine if a worker is properly classified under the MICL. If it becomes clear that certain workers are misclassified under the MICL test and should be treated as employees. the employer needs to take action to rectify the situation. The three-part test should make the evaluation clear; however, if there are questions, be sure to consult an expert for guidance. </p> <p>If an employer identifies an issue but does nothing, it risks significant penalties as noncompliance with the MICL is not taken lightly. The Attorney General can issue civil citations and institute criminal prosecution for both intentional and unintentional violations of the MICL. Willful violations can result in substantial fines or possible imprisonment. In some instances, fines levied may be in triple damages.</p> <p>Because of this law, many businesses may stop using certain (or all) independent contractors, or decide to change the status of these workers to employees. While independent contractors are important to many businesses, the MICL and three-prong test make improper classification a greater risk that Massachusetts businesses must address.</p> <p>Get more information on the <a href="http://www.mass.gov/courts/case-legal-res/law-lib/laws-by-subj/about/independent.html" target="_blank">Massachusetts Independent Contractor Law</a>.</p> <p> </p> <p><!--EndFragment--></p> 823How to prevent ice damshttps://www.dfmurphy.com/blog/PostId/904/preventing-ice-dams.aspxBusiness Insurance,General Safety and Info,Personal InsuranceThu, 20 Jan 2022 17:28:00 GMT<p>Ice dams can be a homeowners worst nightmare in winter.  The best solution is to take steps at prevention, but even despite prevention efforts you may find ice dams forming, so it's important to have a plan.</p> <h3>how to prevent ice dams</h3> <p>When attic air warms to above freezing, it causes the snow on your roof to melt. When temperatures outside are below freezing, the water running down the slopes can refreeze as it reaches the colder edges of the roof creating an “ice dam”.  Ice dams prevent water from draining off the roof and cause the water to pool and back up under the roofing material and into the attic or along exterior walls. Keeping the air in your attic cool and your roof cold is the best way to prevent this problem. Make sure that your attic is well ventilated so that any warm air is quickly replaced with cold air from outside. Provide sufficient insulation to prevent heat from living spaces from getting into the attic. Common causes of warm air getting into your attic are penetration points that aren’t properly sealed or vented. Areas that should be addressed include:</p> <ul> <li>exhaust fans</li> <li>ceiling light fixtures</li> <li>plumbing vents and heating ducts</li> <li>chimney</li> <li>attic hatches/pull-down stairs</li> <li>electrical cables</li> </ul> <p>Another way to prevent ice dams is to use a special aluminum roof rake to remove the snow several feet back from the roof edge after a snow storm.  This can help to avoid the problem, but it doesn’t work in every situation. Always use the rake while standing firmly on the ground, and do so gently to avoid damaging the shingles.</p> <p>If you have gutters on your home, be sure to clear them out as part of your fall clean up to help slow ice dam formation. Even with clean gutters, ice dams can still form in certain weather conditions; however, gutters clogged with frozen debris increase the chances of having problems.</p> <h3>what to do if you get an ice dam</h3> <p>If prevention measures don’t work and an ice dam occurs, act quickly if you see water stains on a ceiling or wall. Remove as much snow as possible from the roof above the ice dam to eliminate the source of additional water. When using a roof rake pull down not across to avoid damaging shingles, Do not stand on your roof due to the extreme risk of falling. If using a ladder follow safety instructions and use extra caution.</p> <p>Some recommend gently chiseling a couple grooves through ice dam to relieve the backed up water, but not going all the way to the roofing and being extremely careful not to damage the shingles, which are more brittle in the cold. Others say not to chip or chisel the ice because of the risk of roof damage. There are chemical solutions specially formulated for this problem; however, do not use rock salt to melt snow on your roof because it is corrosive and can damage your roof and kill vegetation below. </p> <p>Some suggest filling a nylon stocking and filling it with calcium chloride ice melt, which is less corrosive to metal, and positioning it perpendicular to the roof at the roof edge with the goal of creating a small channel in the ice dam to drain the water. However, there are others that do not recommend this method because calcium chloride still has corrosive qualities. There are various commentaries on the use of this method that can be found on the internet. Ultimately, you as the home owner need to research options and choose what you think is the best solution.</p> <p>We suggest hiring a professional with the proper tools and experience. Performing snow and ice dam removal risks possible personal injury and damage to the roof if not done properly. <br />  </p> <address><em>NOTE: Murphy Insurance is not a roofing expert and cannot guarantee that these prevention or corrective measures will alleviate damage. Consult and experienced contractor or expert to determine the best solution for your situation.</em></address> 904Deer collision risk peaks in November and Decemberhttps://www.dfmurphy.com/blog/PostId/745/Deer-collision-risk-peaks-in-November-and-December.aspxBusiness Insurance,General Safety and Info,Personal InsuranceWed, 16 Oct 2019 00:00:00 GMT<p>If you've ever experienced the proverbial "deer in the headlights" situation, you know how sudden it is when a deer darts across the road. And, if you or someone you know has experienced a deer collision, you appreciate the damage deer can cause and are grateful for a near miss. Be extra cautious while driving October thru December. The risk for deer collisions is 3 times greater at this time of year according to the <a href="http://www.iihs.org/iihs" target="_blank">Highway Loss Data Institute</a> (HLDI) statistics. Increased deer activity during their migration and mating season cause a sharp increase in auto accidents involving deer.</p> <p>The Insurance Institute for Highway Safety (IIHS) estimates that there are more than 1.5 million deer-vehicle collisions each year. On average there are between 175 and 200 fatalities, and over 100,000 injuries every year. These accidents cause over $1 billion in vehicle damage. Fatal crashes are most likely to occur in rural areas and on roads with speed limits greater than 55 MPH.</p> <div> <h3><img alt="Deer Collision" src="http://www.dfmurphy.com/Portals/0/deer%20crossing.jpg" /></h3> </div> <h3>How hitting a deer impacts your insurance </h3> <p>The comprehensive coverage part of an auto policy typically covers hitting a deer because it’s not an “at fault” accident. Since no fault is assigned, there is usually no impact to your auto insurance rates.  </p> <p>However, it’s important to note that there must be physical contact with the deer for it to be considered a comprehensive loss claim. If you swerve to avoid a deer (or any other type of unexpected road hazard) and end up hitting another object, the accident would fall under the collision coverage, which is considered an “at fault” accident, which typically results in a surcharge that may increase your insurance rates.</p> <div> <h3>Tips to prevent deer accidents</h3> <p>You can take steps to reduce your chances of deer-vehicle accident. </p> <ul> <li><strong>Use extra caution between dusk and dawn</strong> – Deer tend to be nocturnal, so you’re more likely to see them between these hours.</li> <li><strong>Stay alert</strong> – Being alert may help you spot deer and allow you to react quickly. Watch for deer crossing signs. </li> <li><strong>Use your high beams</strong> – When driving at night, use your high beams when possible to illuminate the side of the road and further ahead. Greater visibility will give you more reaction time. </li> <li><strong>Be aware</strong> - Watch for deer-crossing signs. If you travel the same routes and notice deer frequently in the same areas make a mental note to be cautious.<strong></strong></li> <li><strong>Slow down </strong>- If you see an animal at the side of the road slow down as they move unpredictably. </li> <li><strong>Don’t swerve...Brake</strong> - Swerving could cause you to lose control or hit another car/object, which is likely more dangerous than hitting the deer. Brake as quickly and safely as you can. Being alert will help you avoid the temptation to swerve to avoid the unexpected. </li> <li><strong>Where there is one, there's usually more</strong> – Deer travel together. If you see one, it’s likely are three more. Slow down, and if one crosses the road, assume others may follow. </li> </ul> <p>While you can’t control where deer or other wildlife will show up or how they will behave, being alert especially during the months when they are more active can help you to avoid accidents. Saving you money, and saving their lives.</p> <p><strong>Next steps: </strong>Had an accident?  <a href="http://www.dfmurphy.com/resources/News-Articles/ID/181/What-to-do-at-the-scene-of-an-accident.aspx">Here's what to do at the scene.</a>  </p> <p> </p> <p>Source: <a href="http://www.iihs.org/iihs" target="_blank">Highway Loss Data Institute</a></p> </div> 745Building an effective employee performance review processhttps://www.dfmurphy.com/blog/PostId/701/Building-an-effective-employee-performance-review-process.aspxBusiness InsuranceMon, 12 Aug 2019 18:19:00 GMT<p>In talking with other business peers,, the fall seems to be performance review time at a lot of companies. Performance evaluations often seem to be a dreaded process either because of the time it can take to prepare if you have a large staff or sometimes it's a time for frank discussions that some managers have been putting off.  With that in mind, I sat down with our HR Manager to talk about performance evaluations and ideas for how to make the process less painful for everyone involved. </p> <h3>Experts believe that at least 50% of employee performance problems occur because of a lack of feedback.</h3> <p>Annual reviews can serve as a beneficial development tool to identify, measure, encourage, evaluate, reward and improve employee performance. Documenting employee performance is an important human resources management practice that can help avoid misunderstandings that could lead to legal action.</p> <h3>A performance review should NEVER be a surprise.</h3> <p>Feedback between the employee and manager should be ongoing, which is then formally summarized at set intervals. It’s important that the process be viewed as fair by employees. It should be balanced for an overall positive experience with constructive feedback included. Many organizations ask employees to complete a self-evaluation as the first step, which provides valuable insights as to how the employee views their own performance.</p> <h3>Tips for success.</h3> <p>There are many elements of a successful performance review process, but here are a few tips:</p> <ul> <li>Establish well-written job descriptions outlining essential functions, standards, goals and expectations</li> <li>Prepare in advance and plan for the process</li> <li>Link company strategy to specific objectives and results</li> <li>Evaluate yourself before your employee; how is your management helping or hindering performance?</li> <li>Be objective and honest using specific and accurate examples</li> <li>Remember to evaluate performance not personality</li> <li>Identify development opportunities</li> <li>Ask if the employee has questions or concerns</li> <li>Put mutually decided objectives in writing</li> <li>Show that you’re invested and that you care</li> </ul> <p><img alt="" height="101" src="http://www.dfmurphy.com/Portals/0/Clipboard%20Review.jpg" width="100" />Whatever your performance review process, it must be completed on time to reflect a sense of importance and urgency. </p> <p>Top-level support is a critical key to a successful program. While this seems obvious, lack of support is the main reason that performance evaluation systems fail to succeed. Supervisors and staff can quickly sense if top management is fully supporting the process or simply giving it lip service. Upper management must demonstrate in words and actions that it is determined to see the process succeed.</p> <h3>Additional Resources:</h3> <p><a href="http://www.inc.com/conducting-performance-reviews" target="_blank">Conducting Performance Reviews </a><br /> <a href="http://humanresources.about.com/od/performancemanagement/qt/employee_evaluation.htm" target="_blank">Why Organizations Do Employee Performance Evaluation </a> <br /> <a href="http://www.allbusiness.com/ten-tips-for-conducting-employee-performance-reviews-1385-1.html" target="_blank">Ten tips for conducting employee performance reviews </a></p> 701