What is Commercial Insurance?

Commercial insurance is meant to protect your company’s financial assets, physical and intellectual properties, as well as any covered losses. These losses may occur as a result of property damage, vandalism, theft, lawsuits, loss of income, illnesses, and/or employee injuries.

In most cases, you will find that standard commercial coverage include commercial property, commercial Liability, commercial auto, worker’s compensation, etc. There are many more commercial insurance coverage types that most businesses use to protect themselves from other unique risks that businesses end up facing time and time again.

Types of commercial insurance policies

As a businessman or businesswoman, you will notice that there are a variety of business insurance coverage options that you can use. The type of commercial insurance coverage that you choose depends more on the industry that you are in, location, size, an even the number of employees.

You will also need to note the fact that all commercial business insurance needs change over time. This is true with all businesses that grow. At the minimum, you will always find that most businesses only have property, liability, and worker’s compensation coverage.

1. Property policies

Any business that doesn’t have a proper property coverage may find it difficult in recovering from any significant property damages. That is why it is vital for all businesses with a lot of properties have proper property coverage. So, in the event that there is any property damage within the boundaries of the property policy, the insurance company should pay for the repairs and/or replacement of any damaged property. Property damage can occur as a result of a storm, fire, or any other covered event.

2. Liability insurance

This policy is meant to protect you from any kind of cost-related claims that are filed against your business for bodily injury or property damage. Lawsuits that are filed against businesses without liability coverage can sometimes end up leaving huge financial dents in businesses. These types of lawsuits usually demand large legal fees – even if your business is

innocent. So, if you don’t have the proper liability coverage, you may end up paying for everything. This may include the legal fees, settlement and/or judgment out of your own pocket.

3. Employee insurance policies

The workers’ compensation policy helps to provide employee benefits for any work-related illnesses or injuries. This coverage will also help your business by covering for any legal costs that your business may face in that regard.

Risk management

These are the loss control services that are offered for most businesses. They will help to reduce the overall risk exposures in your business and also improve the safety of the operations in the business.

Do you have a question about commercial insurance? Click here to contact Davco Insurance today!

Why Millennials Need Life Insurance

When you think about all the financial worries and situations that 20-somethings face every day, you might feel a tad bit sorry for them. But when you look more keenly at their situation, you may think that at least some, if not most of them, have life insurance coverage. But that is not the case.

Life insurance coverage could be a fundamental piece of their financial plan and yet very few of of them actually go for it.

Most millennials are more focused on how they can budget their money and pay off their debts. But in situations where you have other people (such as children)  who are dependent on the income you make, not having life insurance coverage can end up derailing everything. Life insurance coverage basically acts as a safety net. It should be a haven that you go to first, not last.

The reason why you find this kind of situation with almost all millennials is because most of them are yet to accumulate home equity, build up a good 401k, or have enough savings in their accounts that can support and push the family for a long time should something happen that makes them lose their jobs or even death.

The stakes and risks grow along with your family and your children, partner, and mortgages all bolster your need to get life insurance coverage. Ironically, you find that almost all employed millennials are in a position where they are able to pay for the life insurance coverage if they decide that they really need to have one for themselves.

Come to term

One thing you need to know about insurance is that they consist of two types: term insurance and permanent insurance.

Term insurance, as the name suggests, is usually the type of insurance which is in place for only a specific term which can run between five to thirty years maximum. But the premium you pay every year never changes with a level-term policy. It is usually based more on your health from the time you are purchasing the premium, your age, and the amount of payout which you wish to provide. This is the death benefit.

If you die within this term, your beneficiaries are the one who will collect and use the benefits to survive and continue living their lives comfortably. But if you are still alive by the time the term you agreed upon ends, then you will walk away with nothing. But good news at this point is that you are still walking at least. But some people might think that this is a waste of some good money. In such a case, you can put the money in other policies like car or homeowner’s insurance, which can protect you from financial calamities.

Figure out your needs

You can do this by asking yourself whether you will be leaving anyone in a financial lurch should you die now. And if the answer is yes, then it is time that you looked into getting life insurance.

Do you have a question about life insurance? Click here to contact Davco Insurance today!

5 Reasons Why You Need Home Insurance

In your lifetime, one of the the largest investments you will make is your home. As an investment, it will be vulnerable to a lot of risks such as vandalism and brutal storms. With an insurance in place, you will be able to safeguard not only your home, but your family as well as from financial risk.

Below are some of the reasons why you need home insurance other than for piece of mind. Check them out and see if you might want to get one and be on the safer side.

1. Your mortgage lender requires your homeowner’s insurance

If you are financing your house, you usually are required to have homeowners insurance in order to protect your lender’s investment from damage or loss caused by risks that are covered.

Your mortgage amount will dictate the minimum amount you require for your homeowner’s insurance coverage. Failure to adequately insure your abode will likely lead to your lender purchasing a homeowners policy and adding the payments to your mortgage tab on a monthly basis. This will all be done in your name.

2. Your home is protected from loss

Your home is safeguarded from countless disasters, including damage from natural disasters, fire, and vandalism. No matter the extent of the damage, large or small, your home policy will assist in paying for repairs and replacements.

To ensure that you are getting best financial coverage possible, make sure you purchase or renew a homeowner’s insurance policy that doesn’t pay out damages on actual cash value but on a replacement cost basis.

3. Your personal belongings are covered by home insurance

In case your stuff is destroyed or stolen, but you are covered, you may be reimbursed for the value or your property. This policy covers your property no matter where they are — at home, in your car, at school, or in storage.

4. Your liability is protected by your homeowners insurance

Family liability insurance comes standard with most homeowners insurance policies. In the event of a lawsuit resulting from an injury that has taken place on your property, this insurance is designed to protect you from such an event.

Liability coverage extends to accidents that occur away from home, as well as medical and legal fees. It also covers lost wages if whoever is injured is unable to work.

5. Temporary housing after a disaster is included in your home insurance

If your home becomes uninhabitable after, say, a natural disaster or fire, your temporary living costs will not be a burden. Additional living expenses coverage could help pay the costs while your home gets repaired. These costs may consist of interim housing or expenses from hotels, laundry, and food.

The cost of homeowners insurance depends on different factors such as location and age of the house, the value of personal belongings, and the insurance deductibles you have chosen. Your policy rates could also be affected by the type of breed your dog is if you own one, or if you are an owner of a trampoline or pool.

Do you have a question about homeowners insurance? Click here to contact Davco Insurance today!


Tips for Adding Your Teenager to Your Auto Insurance

An annual analysis done by Insurance Quotes has found that your annual insurance premiums would still increase substantially if you added your teenager to your auto insurance. But studies have also revealed that the magnitude of these premium increases has been falling gradually in the past few years.

Currently, if you add your teenager to your auto insurance policy, then you can expect your premiums to increase up to about 78%, or $671 compared to the 85% increase that was recorded in 2013.

Factors like safer automobile technology, continued effects of driving programs, and the decrease in the number of licensed teenagers has impacted this significant decrease. These restrictions that have been set for new drivers up to the time that they gain adequate experience on the road have been of great help and proven to be very beneficial to both the teenager’s parents and the insurance companies.

But the impact of adding teenagers, especially boys, to your family auto insurance can cause you to give up more money for your annual insurance premiums. When you put your male teenager in your auto insurance, you will increase your insurance policy rates to about 89% compared to female teenagers who rate about 66%.

Premiums on the family insurance policies have increased significantly, especially when teenage boys were added to the family auto insurance. This was as a result of boys having more accidents with cars than more experienced drivers, and they also file more insurance claims.

In 2015, a record by the National Highway Traffic Safety Administration showed that almost 1,900 teenage drivers aged between 15 and 20 died in car crashes. This was a significant increase in these teenage accidents and deaths by 9% from 2014.

A study by the Centers for Disease Control and Prevention also found that the leading cause of death among many teenagers was a result of motor vehicle crashes.You will also notice that the impact of adding your teenager to your auto insurance varies from state to state just like insurance costs.

How to reduce your family auto insurance after adding your teenager to your policy

Some insurers offered significant discounts to the insurance premiums of the students that recorded high grades in schools. This, however, was not entirely an accurate and effective way to go as good grades don’t directly relate to good driving. Discounts were also offered to the teenage drivers who took their driving education classes.

Some cars are safer than others

There are some safe and affordable cars that you can get for your teenager. In most instances, you find that the larger and heavier vehicles are best.

How to reduce distracted driving

New technology is emerging that will help a lot in regards to texting and chatting about social media while driving. This technology will disable all of these features on your mobile which will then give the teenagers more time to concentrate on the road.

Does your teenager need auto insurance coverage? Click here to contact the experts at Davco Insurance today!


4 Reasons Why You Need Umbrella Insurance

The top priority for all people is to protect their family in addition to assets. This is the reason why insurance exists and also the reason why we have personal umbrella insurance. Personal Umbrella Insurance is an insurance type that is specially designed for the purposes of adding all liability coverage that is above and over other insurance policies, like homeowner’s or auto insurance.

What does Umbrella Insurance cover?

This insurance type is created to aid and protect a person from getting exposure to devastating and stressful liability judgment or claims. Just when a person gets to the wall with his or her underlying liability, it is then that Personal Umbrella Insurance coverage gets put into the play.

Example of liabilities covered by Personal Umbrella Insurance includes property damage, landlord liability, personal injury and bodily injury. On the other hand, oral or written contracts, personal belongings and anything else that has been covered cannot be typically covered by Personal Umbrella Insurance. Private omissions, intentional or even criminal acts are not covered.

Umbrella Insurance

For a better understanding of how the Personal Umbrella Insurance policy functions, this is a good example: If a person is found to be at fault during a car accident, where the other driver has been injured, the person’s regular automobile insurance is expected to cover for the injured driver until a set limit has been agreed upon. If the set limit being insufficient for the coverage of the wounded driver’s medical bills, it becomes another case.

Severe injuries of the driver will make you responsible for the damages as far as the law is concerned. That is if the hospital bill outdoes the agreed amount that you agreed with your car regular automobile insurance. The injured driver that is suing you can cause your assets to be at stake. The situation will be worse if the injured driver was a person of a prominent profession or highly paid and the accident caused him to miss work for a couple of months for six or eight months. He or she can sue you for the months away from work.

Yes, the automobile policy liability will cover only up to the agreed amount. As for the rest of the money, how will you come up with that given that it is a considerable amount? When standard insurance does not cover the whole cost, the additional amount can be covered by a Personal Umbrella Policy. It will include the extra cost to prevent you from getting stuck while figuring out the payment. Personal Umbrella Insurance will help you in protecting your home, bank account and any other personal property that you may have.

Oftentimes, the Personal Umbrella policies are availed in increments of million dollars, starting from $1 – $5 million. For increased protection and coverage in an unfortunate incident of an accident, the umbrella policy will be your savior.

Liabilities that are not covered by a Personal Umbrella Policy

Personal Umbrella Insurance will not typically be cover any cost if one causes damage to his or her own home. It will slightly help you to cover the expenses when you are held accountable for damaging somebody else’s property.

Do you have a question about umbrella insurance? Click here to contact Davco Insurance today!

3 Myths About Renter’s Insurance

For approximately the cost of a pizza delivery each month, renters insurance can protect your personal belongings and save you from legal or medical expenses associated with an accident in your home. However, many renters believe that taking out the insurance is unnecessary or too expensive.

Here are some common misconceptions about renters insurance, along with tips on how to pick the best policy for you:

Myth #1: “I don’t have enough stuff to need insurance coverage.”

Since all rental properties are susceptible to a variety of damages, whether it be fire, theft or even a broken kitchen appliance, many experts say there isn’t a scenario in which a tenant should go without renters insurance. But it is important to weigh the associated costs, both monetary and sentimental.

A common reason individuals avoid renters insurance is they do not think their belongings are worth the coverage. Many renters underestimate the value of their possessions and would be surprised by how much it would cost to replace the items they have accumulated.

If renters think they do not have enough stuff to warrant a renters insurance policy, we suggest they go around their residence, room by room, and take full inventory of their belongings before making a decision.

Along with evaluating how much your belongings cost, it’s important to consider how much you personally value those items. In some situations, how much you care about your belongs may override cost in your decision to take out a renters insurance policy. “For example, if you just got out of college, are renting a furnished apartment, hardly have any stuff and are not a high-risk person in terms of your lifestyle, you might not care, or need to care, about protecting your belongings,” says Robert Hunter, director of insurance for the Consumer Federation of America. “However, if you are renting a penthouse apartment with priceless art on the walls, then you most likely would.”

Myth #2: “Since I am a renter, my landlord will cover property damages.”

Occasionally, a landlord may partner with an insurance company to offer renters insurance to tenants, but more frequently, the insurance policies that landlords hold for their properties only protect the building itself. “After acquiring a rental housing unit, landlords change their insurance policies from a traditional homeowners policy to a rental policy, and when they do that, it only covers just the structure, not the content or any of the tenants belongings,” says James Emory Tungsvik, president of the National Association of Residential Property Managers.

Myth #3: “Renters insurance only covers my personal belongings.”

Accidents, such as a flood in your apartment, may damage other tenants’ property and can be costly. Renters insurance can protect you from these situations and help cover those unexpected costs. For example, if your bathtub overflows and water seeps into the apartment below, damaging your neighbor’s furniture or rug, your renter’s policy will cover the damage up to your liability limits.

Do you have a question about renter’s insurance? Click here to contact Davco Insurance today!


Why You Need Life Insurance

Nobody likes talking about life Insurance because it’s a very tiresome and stressful process. With current harsh economic times, having life insurance has become an essential financial element that will be handy in financial planning and security. Many people know the importance of life insurance but tend to procrastinate until a significant event in their life happens. Life insurance has some great advantages especially when the coverage is purchased at an early age.

When you buy life insurance coverage, you are obliged to pay an annual premium. The yearly premium is usually calculated by the insurance company for the entire period when the policy is active.

Why is it important to get a life insurance?

When looking for the best life insurance, fundamental questions tend to pop up. Who will take responsibility for your financial liabilities when you die? The next generation will not only inherit the financial assets but they will also take responsibility for the financial burdens when a relative passes on. What if children are involved when you pass away and you didn’t have life insurance? Your kids and family will be at economic risk. For business owners, the risk is just as high without a life insurance plan. A succession plan could put your business into an operation standstill.

How Much Insurance Coverage Do You Need?

This is a very tricky but fundamental question many are faced with when planning to buy a life insurance. Everyone will have a different answer to this question. After taking into consideration the above variables and your financial situation, you can start calculating your ideal life insurance coverage. Other additional factors taken into account are age, gender (it’s less expensive to insure women than men) and the amount of insurance you can afford. Those with family and more dependents can increase their life insurance amount. Consult with an experienced financial adviser on the best life insurance coverage that will suit you. Considering all the factors is essential before you sign the papers and start paying your annual fees.

Where should you buy a life insurance?

The insurance industry is fascinating. Different insurance companies offer different products. Davco Insurance will give you all the available life insurance options that suit your needs. We will carefully assess your financial situation and then offer you professional guidance on the policy that is the best fit for you.

Additional information should you learn

Life insurance is a massive purchase, which will be a part of you until you pass away. If you had purchased a policy sometime back then, consider reviewing it with Davco Insurance. If there have been tremendous changes in your life (such as getting married, having kids, relocating, etc.), it is advisable that you buy more insurance coverage or letting the old insurance lapse and then purchase a new one.

Do you have a question about life insurance? Click here to contact Davco Insurance today!