What Is Covered in a Real Estate Firm Liability Insurance Program?

Real estate firms may find themselves at especially high risk for getting wrapped up in unwanted litigation. It is not uncommon for these firms to be brokering deals with clients that have never spent this much money at once. Add to this the fact that if the client is buying a home, they likely have a very high emotional investment in the purchase. All of this increases the legal risk and demonstrates the importance of learning about professional liability insurance programs for real estate firms.

Available Coverage

While finding the right program for your firm will likely require sitting down and discussing your specific needs with an insurance wholesaler, it is important to know about the type of coverage available to you. This includes coverage for the following:

  • Property Management
  • Prior Acts
  • Environmental Hazards
  • Privacy Breach
  • Fair Housing Claims Defense
  • Lock Box Claims
  • Business Brokerage

Importance of Quality Coverage

The right program for your firm can be the difference between a lengthy and costly legal battle and peace of mind. When you work with an insurance wholesaler to understand the available professional liability insurance programs for real estate firms, you are making a move to protect you and your firm so that you can provide the best service possible to your clients.

What You Should Know About Boat Insurance

Your boat is too important to choose a provider simply because they have lowest rates. If you want to truly be protected while out on the waters, you need to understand the basics of insurance for California boats so that you can choose the right coverage for you. As you conduct your search, here are three basics of boat insurance you should know about.

Is It Required?

You may have to carry boat insurance for a variety of reasons. If you financed the purchase of your boat, the lender will likely require that you carry insurance. Also, many states require at least some form of liability coverage and marinas may require proof of insurance before allowing you to dock your boat.

Types of Boats Covered

Boat insurance covers most boats with motors from small fishing boats to mega yachts. It usually does not cover kayaks, personal watercrafts, or canoes.

Types of Coverages

Most boat insurance providers will offer similar coverages. The coverage types you should expect include:

  • Liability insurance covers you in case your boat causes injury to a person or damages their property.
  • Collision insurance will cover repair or replacement costs but may not cover any cleanup.
  • Comprehensive covers any damage or loss for anything other than a collision.

As boat sizes vary, so does your insurance needs. A provider with experience with insurance for California boats can help you get the coverage that meets your needs and budget.

Insurance: A Crucial Piece of Your Financial Puzzle

If you are like many people in Southern California, you may think of insurance as a necessary evil that costs you money each month. In reality, having personal insurance in LA can improve your financial life by protecting you from losses in many vital areas. By taking the view that insurance is your path to financial stability, you can use insurance as a safeguard for the essential things in your life.

  • Family
  • Health
  • Assets
  • Vehicles
  • Retirement

The future is hard to predict. Unexpected losses can occur at any time. By insuring the areas where you potentially have the most to lose, you can build security and peace of mind into your financial picture. The barrier against loss provided by insurance helps minimize mishaps and unfortunate circumstances instead of letting them potentially set you back severely.

Make Your Agent Your Financial Partner

It can be helpful to shake the old image of the insurance agent as just another salesperson. These knowledgeable and skilled professionals are trained to help you objectively identify vulnerable financial areas in your life and guard them with the proper policies. It can be easier to look at your finances as a whole rather than as disjointed pieces when an agent is there to help guide you. Getting insurance in LA will help you rest easy now while you plan for an excellent future.

Important Decisions When it Comes to A Whole Life Policy

One of the advantages of a 20-Pay Whole Life Insurance policy is that it features premiums paid for 20 years and is able to build up cash value quickly. This policy is ideal for insuring children as well as for individuals who desire to make a limited number of premium payments. This policy provides you with the confidence of permanent life insurance protection, with premiums that never increase, regardless of your age or health.

The contract you are issued will accumulate cash values that are tax-deferred until the monies are received. It works similar to dividends and increases in value each year. Your death benefit will be paid to your beneficiaries’ income tax-free and certificates may even be eligible for a refund. The death benefit offers security by providing money to help pay for funeral costs and take care of debts.

Is 20 whole life coverage cost efficient?

While premiums for 20 whole life insurance can be much higher than premiums you would normally pay for the same amount of term insurance, they are less than the premiums you would eventually pay over time if you were to keep renewing a term insurance policy up through the insured’s later years.

Whole life insurance is designed to provide coverage on the insured for the insured’s entire life as long as premiums are paid and the policy has not been surrendered. In contrast, term life insurance provides coverage only for a fixed period as stated in the policy.

You do have the option of purchasing a non-participating whole life policy, which has a level premium and face value amount during your entire life. The advantages of this policy are its fixed costs and relatively low out-of-pocket premium payments. However, since the policy is non-participating it does not pay you any dividends.

Within the two broad categories of traditional non-participating whole life insurance and participating whole life insurance you also have various whole life plans that are available for you to choose from. Sit down with an agent and discuss your options, the terms of each contract in order to make an informed decision as to whether 20-Pay Whole Life Insurance is right for you.

 

A Policy to Protect Your Executives from Costly Claims

Management liability, or an executive liability policy is comprised of directors & officers liability (D&O) coverage, employment practices liability (EPL) insurance, along with fiduciary liability. It may also include other non-liability protection such as various crime coverages, kidnap, ransom & extortion, and workplace violence & crisis response.

This type of coverage is needed since employers face risks in their dealings with applicants and employees, whether current and former. Fiduciary liability, much like D&O, is valuable to an employer that sponsors health and welfare plans for its employees since this can involve multiple fiduciary-related exposures to statutory and other liabilities. Axis Management Liability Coverage will protect you and your organization when faced with claims involving allegations of misuse or wrongdoing.

Who may benefit from this policy most?

One of the primary purposes of management liability insurance is to provide protection for individual directors, officers, any other members of management, and the business entity itself for any claims involving mismanagement, breach of a particular duty, or certain regulatory enforcement. In scenarios of this nature, the alleged injuries are always regarding financial dealings by nature, as opposed to issues relating to physical damages, such as bodily injury or property damage.

In the case of D&O concerns, claims could emanate from both outside and inside the firm. For example, an outside party could bring a claim or file a lawsuit for allegations of interference with a contract, neglect or breach of a duty, or misrepresentation. The parties could include competitors, customers, creditors, regulators (compliance), and vendors.

From within the firm, investors, shareholders, key employees, and family members of an employee may generate claims. Activities such as mergers & acquisitions, founding-ownership’s exit, plans to sell the business, and international expansion, or joint ventures taking place in other countries can generate claims.

We’ve seen and heard various news reports about executives being called to answer allegations of sexual misconduct and/or harassment across many industries, with people of fame or celebrity losing positions at companies by firing or resignation. Management liability insurance is often used to pay out multi-million dollar settlements for matters of this type. Axis Management Liability Coverage is the right policy to protect your firm against such costly allegations.

 

Bond and CMBS Insurance in California

Investments often carry inherent risk. The chance that a borrower will default on a loan is present and real. Insurance against default on certain bonds and securities exist in the form of financial guaranty insurance. California is one of the largest states in the union and carries a GDP larger than some countries. With all this money changing hands, investment in commercial mortgage-backed securities (CMBS) or municipal bonds can be a tempting prospect. Financial guaranty in California can be provided by these types of insurance policies for these types of investments.

A commercial mortgage-backed security, on the front end, is a group of loans facilitated by a bank to an array of commercial real estate owners in the form of individual mortgages. On the back end a CMBS is funded by money from investors who recoup principal and interest on their investment. A municipal bond is similar in that individual investors also provide funding, but instead of money allocated to commercial mortgages its provided to a municipality for things like infrastructure improvements. Investors can achieve peace of mind through financial guaranty in California by purchasing an insurance policy from a reputable broker on these types of investment. Principle and interest on the insured loans is guaranteed, and investors can sleep well at night knowing their monetary returns are secured.

What Is Cyber Liability Insurance?

Cyber liability insurance covers costs associated with cyber fraud. A data breach can cost hundreds of thousands, or even millions, of dollars in legal expenses and fines. Data breach insurance is a key component to any risk management plan and can be tailored to suit your business’ unique needs.

Types of Coverage

There are two types of data breach insurance coverage, first-party and third-party. First-party coverage helps a company address its own business needs after a breach. Third-party coverage protects the company in lawsuits brought on by business partners or customers affected by the breach. The following are examples of first-party costs:

  • Government-mandated notification of all persons whose information may now be compromised
  • The retainment of a public relations team to restore the business’ reputation
  • The retainment of cyber extortion professionals to handle threats to your information systems
  • Customer credit monitoring

Third-party costs can include:

  • Legally obligated payments or settlements to others harmed by the breach
  • Employee privacy liability, in the case that employee data is stolen
  • Electronic media liability, in the case that another company’s copyright is infringed

Cyber crime is perpetrated against both small and large companies, across all business sectors. Data breach insurance can mitigate costs if your business is affected.

Insurance Tips for Freight Brokers

If you are a freight broker odds are that you have experienced a loss of a shipment, or damage to goods in your care and possession at one time or another. Even costly delays can result in claims and lawsuits relating to lost or damaged cargo. Problems can often arise due to the fact that the trucker’s motor truck cargo policy won’t necessarily respond to such a claim.

This is where contingent cargo liability brokers programs can be administered to address each freight broker’s unique circumstances, and ensure that proper restitution and resolution of the risks involved are satisfactorily resolved. Cargo insurance, known also as freight insurance, is the best way to protect customers from lost or damaged freight while it is being transported from destination to destination.

Carrier liability versus cargo insurance

All freight shipments come with some sort of limited liability coverage. This coverage is determined by the carrier and varies depending on the commodity type or freight class of the goods being shipped. Generally speaking, carrier liability will provide coverage up to a specified dollar amount per pound of freight. It’s not uncommon to find that the liability coverage is less than the actual value of the goods being shipped.

Since carrier liability only covers a certain dollar amount per pound of freight, if the freight has a higher value than what is covered by your liability insurance, cargo insurance from a contingent cargo liability broker may be very beneficial to you in order to better protect yourself from lost or damaged cargo.

Another benefit of purchasing cargo insurance is that you do not need to prove that the carrier was at fault for the lost or damaged items, only that the damage or loss actually occurred while the goods were being transported.

Contingent cargo insurance provides coverage which will indemnify and defend a load broker/transportation broker for the customer’s loss or damage to cargo where there is an allegation of liability on the part of your choice of carrier or for your perceived failure to carry out your due diligence in ensuring that the carrier has adequate insurance coverage. The contingent cargo liability policy will provide investigation, defense and indemnity for any claim provided it is the result of a covered loss.

 

Reduce Costs and Mitigate Risk

Any individual or organization that provides goods or services to a business is considered a vendor. Whether they use one or several, all companies need vendors to conduct business. Vendor management describes the relationship between the organization and vendor.

As the role and reach of vendors expand, ongoing due diligence is vital for businesses to protect themselves. Vendor management services are a group of services designed to improve vendor performance, reduce costs and combat vendor and third-party risks. Specific benefits may include:

  • Sourcing of vendors
  • Negotiating a Master Agreement Contract
  • Identifying ways to enhance vendor terms
  • Evaluating vendor performance
  • Identifying risk

As with employees, there are risks when working with third parties. Identifying the factors that contribute to a high-risk environment is crucial to managing risk effectively. Some of the most notable risks include:

  • Compliance
  • Data security
  • Financial
  • Legal
  • Reputational

Commercial liability insurance is designed to protect businesses from liability claims. They can mitigate the risks and help you pay for expenses such as:

  • Legal teams to represent your business
  • Evidence costs
  • Judgment or settlement amounts, if needed

These policies can help companies prepare for unforeseen future events related to vendor management services such as bodily injuries or property damage. Talking with an insurance professional can help you select a policy and customize it to meet your needs.

4 Main Types of Professional Liability Insurance

As someone making insurance decisions for a firm in the financial industry, understanding the risks of doing business is probably a good idea. Whether you work for a commercial institution, a private bank or a FinTech startup, your company can face liability risk from a number of sources. These might include consumer fraud claims, shareholder disputes, employment discrimination and others. Financial Guaranty Insurance Brokers offers four main insurance policies to address the myriad risks your institution might face. These policies include the following:

1. Employment Practices Liability (EPL)

When an employee alleges wrongful termination, sexual harassment or discrimination EPL coverage can cover your principles, directors and other employees.

2. Bankers Professional Liability (BPL)

This coverage can provide protection when a wrongful act takes the form of a misstatement, omission, error or neglect of duty resulting in a failure to render professional services. This might include improperly advising a customer with poor financial information.

3. Errors and Omissions (E&O)

If a customer has a poor experience, there might be allegations of performance failure. This customized coverage can compensate and defend your firm against negligence claims.

4. Directors and Officers Liability (D&O)

This coverage can specifically cover legal costs for directors and officers stemming from allegations of wrongdoing against a firm’s board of directors. The liability coverage can cover both legal costs and settlement costs.

Most polices should be customized to fit your unique situation. Call Financial Guaranty Insurance Brokers to speak with a professional about a mix of plans that works for your company.