BUSINESS INSURANCE

Bonds are not insurance policies. They are contracts among at least three parties: 1) the customer or client who the work is being done for, 2) the individual or company who will be performing the work outlined within the contract, and 3) an insurance provider who assures the customer that the work will be completed in the event the individual or company fails to complete their contractual obligation.

There are a number of bond types that John B. Wright can assist you with, including:

• Performance Bond – Ensures the contract will be completed in accordance with the terms and conditions of the contract.
• Bid Bond – Ensures the bidder on a contract will enter into the contract and furnish the required payment and performance bonds if awarded the contract.
• Payment Bond – Ensures suppliers and subcontractors are paid for work performed under the contract.
• Ancillary Bond – Ensures requirements integral to the contract, but not directly performance related, are performed.
• License Bond – Ensures compliance with various city, county, state or federal* laws.
• Indemnity Bond – Ensures coverage of loss in the event a contractor fails to perform according to agreed upon standards.

*Any Federal construction contract valued at $150,000. or more requires a bond when bidding or as a condition of contract award. Most state and municipal governments, as well as private entities, have similar requirements.

BUILDINGS AND OR CONTENTS

The policy pays for direct physical loss or damage to covered property. The loss must occur at the premises listed and described on the declarations and must result from the occurrence of a covered cause of loss.

WHAT IS COVERED AS BUILDING?

The insurance policy treats a building as more than just a single building. When a limit of insurance appears on the declarations, the structure described and any of the following are considered, treated and covered as building:

• Completed additions
• Fixtures
• Permanently installed machinery and equipment
• Personal property you own and used to service or maintain the building or premises

WHAT IS COVERED AS CONTENTS OR BUSINESS PERSONAL PROPERTY?

The insurance policy treats personal property as more than just the contents of a building. When a limit of insurance appears on the declarations, the following are all considered, treated and covered as personal property if inside the building or outside and within 100 feet of the premises or in or on a vehicle:

• Furniture and fixtures
• Machinery, equipment and stock
• All other personal property you own and use for business
• Labor, materials or services you furnish or arrange on the personal property of others
• If you are a tenant, your interest in any improvements and betterments you make or acquire any leased personal property you are contractually obligated
to insure

WHAT PROPERTY IS MAY NOT BE AUTOMATICALLY COVERED?

Certain types of property, such as the kinds listed below, are not usually eligible for coverage and are not covered. In many cases, coverage may be available elsewhere or under a different insurance policy or coverage form such as an Inland Marine Floater, Floor Plan or other type.

• Accounts, bills, currency, food stamps, evidences of debt, money, notes or securities
• Animals
• Automobiles held for sale
• Bridges, roadways, walks, patios or other paved surfaces
• Contraband or any property involved in illegal transportation or trade
• Costs of excavations, grading, filling or backfilling
• Foundations below the basement or the surface of the
ground where there is no basement
• Land, water, growing crops or lawns
• Personal property while airborne or waterborne
• Bulkheads, pilings, piers, wharves or docks
• Property insured or covered under another coverage form or policy
• Retaining walls not making up part of a covered building
• Underground pipes, flues or drains
• Electronic data
• Costs to research, replace or restore information on valuable papers or records
• Vehicles or self-propelled machines licensed for use on public roads or operated principally away from the described premises
• Grain, hay, straw, crops, fences, radio or television antennas and satellite dishes including lead-in wires, masts, and towers, and trees, shrubs or plan

WE ALWAYS TRY TO OFFER PROTECTION ON A“OPEN PERILS” OF PHYSICAL LOSS

The property insurance contract can provide protection structured to respond to any physical loss (Open Peril Basis) — that is not specifically excluded within the policy provisions. Unless otherwise stipulated, we do not cover losses caused by Flood, Wave wash, Earthquake and other. This broad coverage includes protection against most potential causes of financial loss such as:

· Fire Damage -Lighting Damage – Smoke Damage – Sprinkler System Leakage or Discharge; An Explosion; Damage Caused By The Weight Of Ice & Snow; Water Damage; Windstorm & Hail Damage; Theft Of Your Property; Damage Caused By Vehicles And Aircraft; Collapse Of The Structure; Freezing Of Your Plumbing; Vandalism & Malicious Mischief.

A Deductible for wind and separate one for all other perils will be subtracted from each claim as self-insurance. Higher deductibles reduce your insurance costs. Insurance is intended to protect you for catastrophe and not minor financial loss. We always recommend a deductible that you can afford and will advise you as to the best value for your premium dollar.

What Perils are NOT Covered: While this policy is very comprehensive, it does contain standard exclusions. Exclusions exist because an insurance company must protect itself against total catastrophe (war, nuclear disaster); because not all clients require certain expensive coverage (flood, earthquake, employee theft); because coverage for property is provided under other contracts (cars, aircraft, boats) or because the loss is not sudden and accidental, but rather in your control to avoid (wear & tear, marring, scratching, breakage, mold, mildew or continued leakage).

Basis of Claim Settlement:

Replacement Cost Basis: This means that any loss to your property will be settled on a “New for Old” basis without any deduction for depreciation — providing that you elect to replace the damaged item.

Actual Cash Value: This means that any loss to your property will be settled based upon the cost to replace the item at today’s cost with a deduction for depreciation or obsolescence.

Co-Insurance: Your policy contains a clause that requires you to maintain an amount of protection that is equal to 80 or 90 percent of the basis of claim settlement (replacement cost or actual cash value) indicated above. Your failure to maintain this level of insurance can limit claim settlement – especially in partial losses.

Let us help you design your property protection to adequately meet your needs.

Commercial vehicle insurance, aka commercial auto insurance, provides insurance protection for your company owned vehicles (cars, trucks, vans, etc.). It includes physical damage and liability coverage for amounts and situations not covered by a personal auto policy. There are also comprehensive policies that include coverage for damaged or stolen cargo, tools or equipment.

Given the amount sought in most auto accident claims, the importance of commercial vehicle insurance cannot be over emphasized. Without it, you could be at risk of losing a lot more than your business.

Do you need commercial vehicle insurance?

• You do, if you use your vehicle for work
• If you use your vehicle to deliver goods
• If your business owns or leases vehicles
• If your employees drive company-owned vehicles
• If your employees use their personal vehicles for business

In all likelihood, you’ll have questions about the type of coverage that’s right for your business. Our team of Insurance Professionals will take the time to answer your questions, and even ask a few of our own. It’s what we do in order to begin the process of analyzing risk.

Cyber Liability Insurance protects your business from lawsuits stemming from online activities, such as the accidental posting of a client’s personal information, defamation of character and even the transmission of computer viruses.

Given the volume of online activity that takes place each business day, monitoring everything can be a formidable challenge for most companies. The fact is liability issues involving online activity are not uncommon. Some arise from honest mistakes or oversights, while others are the result of poor judgment. In any case, Cyber Liability is something you may want to discuss with one of our business insurance professionals.

We’ve partnered with NJAA to provide practical solutions to your business’ human resources, benefits, health insurance and payroll needs. Our simple, full-service approach is designed to handle everything for you so you can focus on growing your business.

Click here to learn more about solutions available for your business, or submit the form below and one of our expert agents will get in touch with you.

Employment Practices Liability Insurance protects your business from lawsuits resulting from any number of potentially damaging charges including harassment, wrongful termination or discrimination based on age, gender or race – anything that violates an individual or group’s civil rights.

• Breach of Employment Contract
• Deformation of Character
• Discrimination
• Invasion of Privacy
• Mismanagement of Employee Benefits
• Sexual Harassment
• Wrongful Termination

The purpose of EPLI is to cover the cost of legal services, court fees and settlements in cases where businesses fail to provide an acceptable work environment for all employees. Employment Practices coverage ensures that your business has the means to survive a lawsuit.

Errors & Omissions Insurance, sometimes referred to as professional indemnity insurance, is a business liability insurance that protects vendors from lawsuits resulting from negligence in the fulfillment of a service-based contract. The same policy often covers mistakes made by the vendor that result in the loss of business and/or credibility.

Excess liability insurance is third-party insurance coverage that goes into effect when you have exhausted the limits of a base liability policy. For example, there are situations in which an insurer may limit the amount of liability coverage you can purchase. If a lawsuit judgment goes against you and requires you to pay a larger amount than you’re covered for, your excess liability coverage goes into effect.

Calculating the amount of excess liability insurance needed is not easy. To start, if your net worth is 2,000,000. Rule of thumb is to purchase twice that amount. However, since lawsuits & their costs have an unknown amount, it is best to always buy as much as you can afford.

The most common form of excess liability coverage is the umbrella policy. A personal umbrella policy typically provides excess coverage for your homeowners and auto policies. A commercial umbrella offers additional coverage for a general liability policy for a business. Umbrella policies are usually sold in $1 million increments. While umbrellas can provide large coverage amounts, their premiums are relatively inexpensive due to the fact that they are not needed until other available liability coverage has been used first.

Liability insurance protects a business’s legal interest. Should the business come under a lawsuit, this policy would provide the funds to protect the business’s interest. It is one of the most common business policies, and for good reason. It provides coverage for liability issues resulting from personal and advertising injury, including medical expenses.

It addresses accidents stemming from on-site mishaps. In addition to the financial limits of the policy, it can be designed to cover supplemental payments for attorney fees, court costs and other expenses associated with a claim or the defense of a liability suit.

John B. Wright can create customized solutions for the protection of your business property and claims due to bodily injury, property damage or negligence.

General liability insurance pays for your defense and any resulting damages if your product or service causes damage or harm. It can also cover medical bills if a patron is injured on your premises.

Covers a variety of costs for which the business would be legally liable for in a covered lawsuit or claim.

We’ve partnered with Alliance Benefit Solutions (ABS) to provide practical solutions to your business’ health insurance, group benefits, payroll and human resources needs. Our partnership offers a simple, full-service approach designed to handle everything for you so you can focus on growing your business.

Businesses typically provide insurance for their employees as a benefit, but the type and amount usually varies from business to business. A few common ones include: health, medical, dental, vision, short-term disability, long-term disability and long-term care.

How important are benefits? For many companies, it’s a matter of being able to compete favorably for top talent. It’s no secret that most individuals seeking employment consider salary and benefits to be the key factors in their job search.

Employee benefits may include, but are certainly not limited to:

• Health Insurance
• Retirement Plans
• Workers’ Compensation
• Disability
• Dental
• Vision or Eye Care

Businesses that provide benefits are always preferred by job seekers. The Insurance Professionals at John B. Wright can assist you in putting together a benefits package that’s both desirable and competitive.

Click here to learn more about solutions available for your business, or use the form on this page and one of our expert agents will get in touch with you directly.

There are several types of Pollution or Environmental Impairment Liability Insurance available. Most are designed to cover the estimated or incurred cost of cleaning up pollutants resulting from an accident or left behind by the former property owner or tenant. There are also policies the new property owner can purchase that will provide coverage in the event pollutants are discovered that the former owner was either unaware of or chose not to disclose at the time the real estate was transferred.

In the case of a foreclosure where details concerning the property may be lacking, a bank can also purchase a property damage policy protecting them in the event toxic waste is found.

Should you have any questions and/or concerns about a property transfer involving even the possibility of ground and/or environmental contamination, we would be pleased to review your insurance-related options with you.

Workers Compensation remains one of the few government required insurance coverages that Employers must secure to protect their employees. The statutory protection provides:

• Medical Benefits for Employees Injured On The Job
• Loss of Wage Benefits for Employees Injured On The Job
• Lump Sum Payment For Permanent Injury, Death or Disability Caused On The Job
• Employers Liability for Third Party Claims

The Compensation contract also provides Employers Liability Protection which is designed to protect the employer against legal action taken by the employee or indirectly by a third party due to allegations of employer negligence.

Compensation premiums are determined through the assignment of specific job-related classifications, which carry specific state set rates. These rates are then applied to your projected payrolls for each classification you are assigned. The result is your “deposit” premium for a twelve-month period.

At year-end, an audit will determine your actual payrolls this will adjust your prior year’s premium either up or down. It is important that you are careful not to either under or overestimate your payrolls at the inception of the policy period.

There are additional factors that will influence your compensation premium. They include:

• Premium Discounts
• Your Specific Experience Rating Modification
• Dividend Plans
• Experience Rating Programs
• Long Shore Harbor Workers Act Requirement
• Maritime Employers Liability
• Alternate Employer Endorsements

Many business owners believe that when it comes to workers compensation rates, they are the same. They also believe going from one agent to another, will do nothing to reduce their costs. While it is true that the state of New Jersey sets the base rates for workers compensation, carriers can discount and give credits. Insurance carriers have tools at their disposal to reduce your final premium.

They can also use one or a combination of the following:

• Premium Discount Tables Schedule Y and X. Depending on the insurance companies filing, you may be eligible for a straight discount.
• Scheduled Credits. Depending on the industry, years in business, annual premium size, and your claims experience. Discounts can range from 5% all they way up to 30% in some cases. Beware though, if you have had a frequency of claims, they can also apply a surcharge.
• Voluntary Insurance Market. Sometimes, because your agent doesn’t have access to a voluntary workers compensation carrier. If that’s the case, or forgets to get you out of the state pool at renewal they opt to place you in the State Pool. Just by being in the state pool you can be surcharged up to 35%. Just by finding you a insurance company in the voluntary market, you can save a significant amount on your premium.
• Managed Care Program. By opting to use the medical services that are part of a preferred network of an insurance company, you can save up to 20% more.
• Dividend Programs. If enrolled in a dividend program, you may be eligible to receive money back at the end of the year. Carriers pay you if the industry class has very few claims. This can be as little as 5% or up to 30%.
• Construction Credits. If you are a contractor, you may be eligible for a significant credit. If your average hourly wage is more than $24 per hour excluding overtime, you can receive a minimum or 5% all the way up to 25% credit applied against your premium.
• Incorrect Experience Modification Factor. Yes, even the insurance carriers make mistakes. Depending on the size of your workers compensation premium, we have services that will scour your insurance records looking for mistakes. We can go back as far as 7 years to make sure your modification factor is the correct one. Believe it or not over 25% of the Experience modifications are wrong. If we catch it, we can request that the over charged premium be returned to you and going forward, your modification be reduced. We will then monitor your account to make sure it remains correct.
• Special Plans. There are plans for US Longshore Harbor Workers (USLH) coverage. We can eliminate audits and offer safety training to help you mitigate any frequency or severity of claims to help you control your workers compensation cost.
• Minimum Premium, Deductible Insurance Programs and Retrospective Insurance Plans. These are designed for clients who are paying more than $1,000,000 in annual premiums. These give you control. However, it will require that you maintain very exact books and most likely assign one of your employees to monitor the program.
• Pay as you Go. If you are tired of annually collecting all the records and going through the painful process of an audit, we have a better way. Pay your premiums simultaneously as you make your payroll deposits. Eliminating the need for the painful process.

If you think you cannot do anything about the soaring cost or painful audit process of your workers compensation policy, it’s time to think again. While you’re at it, we can also review your Liability, Auto, Umbrella and Equipment Employee Benefit Programs cost.

Give us a call. We’re sure our agency can find a better solution for you.