Effective Strategies for Managing Coastal Property Risks and Lowering Insurance Premiums

The allure of living near the water is undeniable. From stunning views to recreational opportunities, coastal properties offer a unique lifestyle that many people find irresistible. However, these properties come with their own set of risks, especially in terms of insurance. Coastal exposure refers to the increased risk of damage to properties situated close to bodies of water, such as oceans, seas, and large lakes. These risks include storm surges, hurricanes, flooding, and erosion, all of which can lead to significant property damage and financial loss. For insurance companies, managing and mitigating these risks is crucial to ensure sustainable operations and client satisfaction.

Understanding Coastal Exposure

Coastal exposure encompasses several specific risks:

1. Storm Surges and Flooding: Coastal areas are prone to storm surges, which can lead to extensive flooding. Hurricanes and other severe storms can push large volumes of water inland, causing significant damage to properties.

2. Erosion: Over time, the natural process of erosion can undermine the structural integrity of buildings close to the shore. This gradual wearing away of land can result in properties becoming increasingly vulnerable.

3. Wind Damage: High winds associated with coastal storms can cause structural damage to buildings, particularly to roofs, windows, and exterior walls.

4. Saltwater Corrosion: The salty environment can accelerate the corrosion of building materials, leading to faster deterioration and higher maintenance costs.

Tips for Policyholders to Lower Insurance Premiums

Policyholders can also play an active role in reducing their insurance costs by implementing certain practices and improvements:

1. Invest in Resilient Construction: Use materials and designs that are resistant to wind and water damage. Properties built to modern, resilient standards often qualify for lower premiums.

2. Maintain Property Vigilantly: Regular maintenance can prevent small issues from becoming major claims. For example, ensuring roofs and windows are secure can prevent wind damage.

3. Install Protective Measures: Adding features such as storm shutters, sump pumps, and backflow valves can provide additional protection and potentially lower premiums.

4. Elevate Utilities and Valuables: Keeping utilities and valuables above the flood level reduces the risk of significant damage and lowers the cost of potential claims.

5. Document and Update Improvements: Keep thorough records of all improvements and mitigation measures. Share this information with your insurer to potentially qualify for discounts.

By understanding coastal exposure and taking proactive steps to mitigate risks, insurance companies and policyholders can work together to reduce the potential for damage and financial loss. This collaborative approach not only enhances the resilience of coastal properties but also helps to manage insurance costs more effectively, ensuring that the dream of coastal living remains both desirable and sustainable.

Understanding Insurance Premium Increases for Commercial Properties

In the dynamic landscape of commercial property insurance, businesses are no strangers to the ever-fluctuating tides of premium rates. Insurance premium increases have become a common topic of discussion, leaving property owners and businesses seeking clarity on the factors driving these changes. In this blog post, we'll delve into the reasons behind insurance premium increases for commercial properties and explore strategies to navigate these shifts.

Understanding the Dynamics:

Commercial property insurance premiums are influenced by various factors, and their fluctuations are often a response to changes in the risk landscape. Here are some key elements contributing to premium increases:

1. Catastrophic Events: Unpredictable natural disasters, such as hurricanes, earthquakes, or wildfires, can significantly impact commercial properties. Insurance companies factor in the increased risk of property damage due to these events, leading to higher premiums.

2. Rising Construction Costs: The cost of construction materials and labor tends to rise over time. Insurance premiums may increase to ensure that policies provide adequate coverage for property replacement or repair in the event of a covered loss.

3. Frequency and Severity of Claims: Insurance companies assess their historical data on claims to determine the frequency and severity of losses. If there is a noticeable increase in claims, especially high-value ones, from your own policy or at your zip code, insurers may adjust premiums to maintain financial stability.

4. Changes in Risk Profile: As businesses evolve, so do their risk profiles. A change in the nature of a business, expansion, or introduction of new equipment can impact the perceived risk, leading to adjustments in insurance premiums.

Navigating the Changes:

While facing insurance premium increases may seem challenging, businesses can adopt strategies to navigate these changes effectively:

1. Risk Mitigation Measures: Implementing risk management practices, such as improving property safety measures or investing in security systems, can positively influence insurers' perception of risk. This may lead to more favorable premium rates.

2. Policy Review and Comparison: Regularly reviewing and comparing insurance policies from different providers can help businesses find competitive rates. Working with an insurance broker, such as The Sarrica Group, can simplify this process and ensure comprehensive coverage at the best possible price.

3. Loss Prevention Programs: Some insurers offer discounts for businesses that actively engage in loss prevention programs. Investing in measures to minimize the likelihood of claims can result in reduced premiums.

4. Enhanced Communication with Insurers: Open and transparent communication with insurers can be beneficial. Providing detailed information about risk management practices and any changes in the business can help insurers better assess the true risk and potentially offer more favorable rates. It also provides your broker more leverage to negotiate with the insurer.

Conclusion:

In the ever-evolving landscape of commercial property insurance, understanding the factors influencing premium increases is crucial for businesses to make informed decisions. By proactively managing risks, reviewing policies, and maintaining clear communication with insurers, businesses can navigate the challenges posed by insurance premium fluctuations and ensure a secure and resilient future for their commercial properties.

If you are a property owner and need assistance with your insurance policies we are here to help. Please feel free to contact us via phone or email for quotes. 516-277-0812 or info@thesarricagroup.com

What is a Surety Bond?

What is a Surety Bond? 

A surety bond is a three-party contract between the principal (person purchasing the bond), the surety company (entity issuing the bond) and the obligee (entity requiring the bond). The obligee requires the principal to purchase the bond, typically as a precondition to obtaining a business license or beginning work on a contract (more on this later), from the surety company, which guarantees payment up to the full bond amount if the principal violates the provisions laid out in the bond form. 

For example, auto dealers are required to purchase a surety bond before receiving a business license. State DMVs (or MVDs depending on the state) require dealers to be bonded so that consumers are protected in the event the dealer commits fraud or violates the regulations governing their license. Dealers (through their insurance agents) obtain their bonds from a surety company. If the dealer commits a claims-worthy offense (altering an odometer, defrauding a customer, not providing a title etc.), then the surety company will pay to the obligee up to the full bond amount as restitution. However, surety bonds are indemnified, meaning that the principal must repay the surety company for all claims and claims handling expenses. 

Think of surety bonds as a line of credit, extended to the principal by the surety company, that protect the public from losses if the principal acts unethically. 

Who is Required to Purchase a Surety Bond? 

There are over 10,000 different types of surety bonds, each with its own unique purpose and requirements. However, most surety bonds fit into one of the below categories: 

● License and Permit (L&P): These bonds are required as a precondition for obtaining a business license or permit. Claims made against L&P bonds occur if the principal does not adhere to the terms and conditions of their license. There are thousands of different license and permit bonds, but common examples include: 

○ Auto Dealer Bonds, Contractor License Bonds and Mortgage Broker/Lender Bonds. 

● Contract: Not to be confused with Contractor License Bonds, Contract Bond must be obtained by contractors before bidding on or starting work on a construction project. The three most common types of Contract Bonds are: 

○ Bid Bonds: Project owners often require contractors bidding on a project to purchase a bid bond. These bonds ensure that contractors will be able to complete the project as specified in their bid, and protect the project owner if they don’t. 

○ Performance and Payment Bonds: After their bid is accepted and they are awarded the project, contractors will generally have to purchase a Performance and Payment bond. These bonds guarantee that the contractor will: 

■ Complete the project on time and as specified in the contract 

(performance).

■ Pay all laborers, subcontractors and material suppliers (payment). 

● Court: Court bonds are required by and must be filed with a court of law. Court bonds fall into the following two categories: 

○ Probate: Required for executors, administrators, conservators and guardians as a precondition to being appointed as a fiduciary over an estate’s assets. 

○ Judicial: Required by certain plaintiffs and defendants as a result of legal action.

● Fidelity: Unlike most surety bonds, Fidelity Bonds are typically not required by a government agency but instead by a business’s customers or are elective coverage desired by the business itself. Fidelity bonds protect a business and its customers if the business’s employees commit theft or other fraudulent activities. Common types of Fidelity Bonds include: 

○ Employee dishonesty, commercial crime, business services and ERISA

● Financial Guarantee: These bonds ensure the principal will meet a financial obligation and protect the obligee if they don’t. Financial Guarantee bonds are most often required of businesses to ensure compliance with tax obligations. 

How Much Does a Surety Bond Cost? 

Surety bonds cost a percentage of the bond amount. For example, if you need to purchase a $50,000 surety bond, you will only be required to pay a small percentage of that on a yearly basis. Most surety bonds cost between 1% to 10% of the bond amount per year, with rates calculated based on the principal’s credit score, business experience and past claims history. 

Our partnership with BondExchange allows us to offer most surety bonds on a monthly subscription basis. This means that you can purchase your bond one month at a time and cancel it anytime. 

What is the Difference Between a Surety Bond and Insurance? 

Surety bonds are considered an insurance product, but they do not function like normal insurance policies. For instance, surety bonds do not protect the person who purchased the bond (excluding Fidelity Bonds) but rather the entity that is requiring it. Surety bonds do not provide the principal with any benefit other than serving as a precondition to performing a certain action. Instead, surety bonds are for the benefit of the obligee and the general public to protect them from actions that are a violation of the law committed by the principal. 

Claims made against surety bonds are completely available and only occur as a result of deliberate violations of the bond’s provisions by the principal. Additionally, as we mentioned before, principals must repay the surety company for all claims and claims handling expenses. As a result, surety companies underwrite surety bonds differently than other insurance types. For example, typical insurance coverages are underwritten with the goal of determining the likelihood of a claim occurring. On the other hand, surety bonds are underwritten with the goal of determining whether a claim will occur as well as the principal’s ability to repay the surety

company for all valid claims. This is why surety companies require a credit report, and in some cases financials, as well as review the principal’s prior claims. 

How Can I Obtain a Surety Bond? 

The Sarrica Insurance Group makes obtaining surety bonds quick and easy. Through our partnership with BondExchange, we can offer instant quotes on most surety bond types, including harder-to-place risks subject to credit and financial underwriting. Additionally, our ability to offer bonds on a subscription basis and our access to over 30 different markets ensures you will never over-pay for your coverage.

Safeguarding Your Home and Finances: The Importance of Flood Insurance in New York

New York State is known for its diverse landscapes, bustling cities, and iconic landmarks, but it's also no stranger to natural disasters, particularly flooding. The Empire State has faced its fair share of flood-related challenges, from coastal storms to heavy rainfall events. In this blog, we'll explore the importance of flood insurance policies in protecting your home and finances in New York.

The Flood Risk in New York

New York State's geographic diversity means that it faces various flood risks. Coastal areas along Long Island and the Atlantic Ocean are vulnerable to storm surges, while upstate regions can experience flooding due to heavy rains, snowmelt, and river overflow. The potential for flooding is not limited to specific areas, making flood insurance a wise investment for many New York residents.

1. Protection Against Financial Ruin

One of the most compelling reasons to invest in flood insurance is financial security. Flood damage can be catastrophic, often resulting in extensive property damage and loss of valuable belongings. Repairing or replacing these assets can put a significant strain on your finances, potentially leading to bankruptcy or financial ruin.

Flood insurance policies help you mitigate these risks by providing coverage for flood-related damages to your home and personal property. Without this coverage, you would be solely responsible for all repair and replacement costs, which can be exorbitant.

2. Mandatory Requirements and Lender Compliance

In some cases, flood insurance is not just a good idea; it's mandatory. If you have a mortgage on your home, your lender may require you to purchase flood insurance if your property is in a high-risk flood zone. This is because lenders want to protect their investment, and without flood insurance, they may refuse to extend or renew your mortgage.

Being in compliance with your lender's requirements not only ensures that you keep your home but also safeguards your financial stability. Moreover, having flood insurance may also make you eligible for federal disaster assistance in the event of a presidentially declared disaster, providing an additional layer of financial protection.

3. Climate Change and Increasing Flood Risks

Climate change is causing more frequent and severe weather events, including heavy rainfall and coastal storms, which can lead to increased flood risks in many areas, including New York. As these risks continue to rise, the importance of flood insurance becomes even more evident. Having coverage in place can help you weather the storm, both literally and figuratively, as you'll have the resources needed to rebuild your life after a flood event.

4. Peace of Mind

Beyond the financial benefits, flood insurance provides peace of mind. Knowing that you have a safety net in place can reduce stress and anxiety in the face of an impending flood threat. You can focus on evacuating or taking other precautionary measures, rather than worrying about the financial consequences of a disaster.

Conclusion

Flood insurance is not just a wise choice; it's a crucial investment for homeowners in New York State. With the increasing frequency and severity of weather events, the risk of flooding is higher than ever. By securing a flood insurance policy, you not only protect your home and possessions but also ensure your financial stability in the face of disaster. It's a small price to pay for the peace of mind and protection it offers in the unpredictable world of natural disasters. Don't wait until it's too late; consider getting flood insurance today to safeguard your home and your future in New York.

6 powerful forces are driving the increase in commercial property insurance costs

The commercial property insurance market is facing difficulties, leading to an increase in premiums. There are several factors contributing to this trend:

1. Catastrophe losses

   Catastrophe losses are causing stress to the industry due to the frequency and severity of natural disasters, leading to global insured losses of over $100 billion annually in five of the past six years.

2. Reinsurance expenses

   Reinsurance expenses have increased due to catastrophic events, making primary carriers more selective, resulting in the need to pass on higher costs to customers.

3. Underinsurance

   Underinsurance is a problem as inflation drives up the cost of materials and services, yet only 43% of business owners have increased their policy limits to reflect the higher replacement costs accurately.

4. Property replacement costs

   Property replacement costs have risen due to higher construction and machinery costs, and contractors are facing materials shortages and supply chain disruptions.

5. Skilled Labor Shortage

   There is a skilled labor shortage, with higher wages and salaries leading to increased reconstruction costs, and nine out of 10 contractors struggling to find skilled labor, leading to project delays and increased business interruption losses.

6. Property Rate Increase Need

   Escalating loss trends have outpaced rate increases for years, and carriers are expected to raise rates again this year to close the gap.

5 Tips to Avoid Penalties and Extra Charges During Workers' Compensation Audits

As the end of a workers' compensation policy term approaches, employers often face the task of undergoing an audit to determine whether they have correctly reported their payroll and employee classifications. This audit is essential for insurance companies to ensure they are charging the correct premium for the level of risk presented by the employer's workforce. However, it can be a challenging process for employers, especially those who are not well prepared.

In this blog post, we will discuss workers' compensation audits during the end of the policy term and provide tips on how to avoid penalties and extra charges.

What is a Workers' Compensation Audit?

A workers' compensation audit is a review of an employer's payroll and employee classification information to ensure that the employer has accurately reported this information to their insurance carrier. The audit is typically conducted at the end of the policy term and is used to determine the employer's final workers' compensation premium.

During the audit, the insurance company will review the employer's payroll records, employee classification information, and any changes in the workforce since the policy began. The purpose of the audit is to verify that the employer has accurately reported their payroll and employee classifications and that they are paying the correct premium based on the level of risk presented by their workforce.

Tips to Avoid Penalties and Extra Charges

Keep Accurate Records

One of the most important things an employer can do to prepare for a workers' compensation audit is to keep accurate records. This includes keeping track of employee hours, wages, and job classifications. By keeping accurate records, employers can ensure that they are reporting their payroll and employee classifications correctly and avoid any potential penalties or extra charges.

Review Your Policy

Before the audit, it is essential to review your policy to ensure that you understand your coverage and any requirements or exclusions. This will help you understand what information the auditor will be looking for and what you need to provide. If you have any questions or concerns, reach out to your insurance agent or carrier for clarification.

Prepare for the Audit

Preparing for the audit involves gathering all the necessary records, such as payroll records, employee classification information, and any changes in the workforce since the policy began. It is also essential to have someone available to answer the auditor's questions and provide additional information if necessary.

Be Honest and Transparent

During the audit, it is essential to be honest and transparent. If you have made any mistakes or inaccuracies in your reporting, it is better to acknowledge them upfront than to try to hide them. This will help you avoid penalties and extra charges and maintain a good relationship with your insurance carrier.

Address Any Issues Promptly

If the auditor identifies any issues during the audit, it is essential to address them promptly. This may include correcting any errors in your reporting or providing additional information to the auditor. By addressing these issues promptly, you can avoid any potential penalties or extra charges.

In conclusion, a workers' compensation audit can be a challenging process for employers. However, by keeping accurate records, reviewing your policy, preparing for the audit, being honest and transparent, and addressing any issues promptly, you can avoid penalties and extra charges and maintain a good relationship with your insurance carrier.

Ensuring Your Real Estate Investment Fund's Success: The Importance of Real Estate Property Insurance

Real estate investment funds are a popular investment option for many individuals and institutions looking to diversify their portfolios. While investing in real estate offers the potential for high returns, it also carries certain risks. One of the most important ways to mitigate these risks is by obtaining proper insurance coverage. In this blog, we will discuss the importance of real estate property insurance for real estate investment funds.

Protection against natural disasters:
Natural disasters such as hurricanes, earthquakes, and fires can cause significant damage to real estate properties. Without insurance coverage, the cost of repairing or rebuilding the damaged property would fall solely on the investment fund. Real estate property insurance provides protection against these types of losses, ensuring that the investment fund is not unduly impacted by unforeseen events.

Liability protection:
In addition to protecting against physical damage to the property, real estate property insurance also provides liability coverage. This is especially important for investment funds that own properties that are rented out to tenants. In the event that a tenant is injured on the property and files a lawsuit, the investment fund could be held liable for their injuries. Real estate property insurance helps to protect against these types of losses.

Financial stability:
Real estate property insurance can help to ensure the financial stability of the investment fund. Without insurance coverage, a single loss, such as a natural disaster or liability lawsuit, could put the entire fund at risk. With insurance, the investment fund can continue to operate even in the event of a loss, as the insurance coverage will help to offset the cost of the loss.

Peace of mind:
Investing in real estate can be a stressful experience, especially for those who are new to the process. With real estate property insurance, investment fund managers can have peace of mind knowing that their properties and their investors' investments are protected against potential losses. This allows investment fund managers to focus on other important aspects of managing the fund, such as finding new investment opportunities and managing their portfolio.

In conclusion, real estate property insurance is a crucial component of any real estate investment fund. It provides protection against natural disasters, liability claims, and financial instability, and gives investment fund managers peace of mind. By obtaining proper insurance coverage, investment funds can mitigate risks and ensure their long-term success. If you would like to also read about how to find good investment properties please check out the blog below from Sprint Funding:
sprintfunding.com/how-to-find-good-investment-properties

Contractors paying too much on insurance, here is how you lower it

As most contractors, my guess is you too are tired of paying sick money for insurance. With that in mind, here are a few tips to help you lower your insurance price tag.

Did you know you can lower your premium by implementing loss control measures such as;

1. Safety training

All workers must have proper safety training courses before they start working on-site. Site-specific training should be completed by every worker to point out any high-risk areas and provide instructions for emergency management.

2. Risk management

Conducting regular safety audits and having procedures in place to report, assess, and address potential risks.

3. Site security

Restricted site access. Security in and outside of work hours and supervision of authorized site visitors. Strict security and safety protocols will also protect contractors from liability and negligence in the case of a safety incident or security breach.

4. Occupational Safety and Health Administration safety program

The OSHA safety program should outline the scope of work involved, any potential safety issues, and how risks will be prevented and managed.

5. Use clear signage throughout the site

Visible signage should also indicate site amenities (such as toilets), entry and exit points, and first aid or emergency fire equipment.

6. Entry and exit points

Separate entry and exit points.

7. Compliant chemical storage

Chemicals need to be stored very carefully to minimize fires, explosions, asphyxiation, chemical injury, and pollution on worksites.

8. First aid

For the construction industry, it's best practice to provide one first aid officer per 25 workers. First aid kits and equipment must be placed in an easily accessible area on site.

9. Provide personal protective (PPS) equipment

Such as high visibility vests, safety goggles, and safety harnesses.

Implementing loss control measures is NOT the only way to reduce your insurance premium. If you would like to learn more you can do so by clicking HERE.

Rising Gas Prices

Like us, I’m sure you’ve been feeling pain at the gas pump recently. Unfortunately, it doesn’t look like prices will be coming down anytime soon—at least not as far as many of us would like.  

I thought it might be helpful to send over some information on why prices are rising, what you can expect to pay this summer, and a few tips for keeping costs as low as possible.  

Why gas prices are rising

Higher gas prices can be traced back to the COVID-19 pandemic, but prices have been pushed even higher recently by the Russo-Ukrainian war, said Patrick De Haan, GasBuddy's head of petroleum analysis, to CBS.

In addition, the post-pandemic demand for gas, cuts to oil production, and U.S. sanctions on Russia (and their impact on the global market) are holding gasoline prices high above normal. 

What you can expect to pay this summer for gas 

Americans are already trimming the grocery budget; it now appears the gas budget is next in line. According to one Wall Street estimate, a typical family may need to find an additional $2,000 in the budget this year to pay for gasoline.

This summer, the average per-gallon price could reach $5. It already has in some areas of the country, such as in California, where drivers are already paying over $6 per gallon. That is to say, if you’re paying anything south of $5 per gallon, consider yourself a tad lucky, at least for this summer. 

Four ways to save on gas

It’s not all bad news. There are a few decisions you can make that will help keep costs low. Here are four of my favorites: 

1. Check out apps like Waze and GasBuddy. If you’re not a Waze user, you should be. Not only does it help you get from point A to point B quickly and safely, but it can also locate the cheapest fuel nearby. One unique feature with GasBuddy? You can search for gas based on fuel type.

2. Look into joining a warehouse store: Places like Sam’s Club, Costco, and BJ’s offer discounts on fuel. The average discount is around $0.10 less per gallon than other gas stations. With a basic membership running around $50 per year, joining for the gas savings alone might make sense. The only hiccup? The stations are only found at warehouse locations.

3. Time your fill-ups. Experts also say the best days to fill up are Mondays and Tuesdays. That’s when gas is cheapest during the week. Also, consider “stacking” your daily outings, so you don’t backtrack all over town and use more fuel than you need to. Another idea? Carpool whenever you can or take public transit.

4. Consider E15 gasoline: On April 12, President Biden announced an emergency waiver allowing year-round sales of E15 gasoline, which contains a 15% ethanol blend. Its sale is typically prohibited from June to mid-September because of air quality concerns. According to the White House, E15 can save consumers around 10 cents per gallon on average, so the next time you’re at the pump, look for E15 and save.

Gas prices aside, I hope you and your family have a wonderful summer enjoying the people, places, and activities you love the most.

Garage Liability Insurance: Protecting Your Business and Your Employees

Auto repair shops and other businesses in the auto industry are an important part of the American landscape. With car parts wearing out and accidents impacting even the most careful drivers, families and individuals rely on repair shops to keep their cars–and day-to-day lives–running smoothly. 

For their part, those in the auto industry must rely on adequate insurance protection to keep their businesses up and running in case of injury or damage that occurs at or during work. 

Whether you own a small shop as a sole proprietor or you are part of a larger group, it’s essential you protect your business–and an important piece of this is garage liability insurance. 

Garage Liability Insurance, Explained 

Garage liability insurance is an umbrella policy you can add to your existing business liability policy. It covers property damaged on site as well as personal injuries not typically covered under your baseline insurance policy. Injuries that occur in auto repair shops are often more serious than injuries sustained in other types of businesses, which necessitates an extra layer of coverage to protect your assets from lawsuits. 

It is important to purchase garage liability insurance if you operate out of a garage or structure separate from your home. Businesses that can benefit from garage insurance include:

• Auto repair shops

• Auto detail shops

• Auto glass repair shops

• Towing companies

• Service stations

• Auto dealerships

• Tire repair shops

While this is the base insurance your shop needs, you may want to explore additional coverage to keep your business protected. 

What Additional Insurance Does Your Shop Need?

Your auto shop will likely need additional insurance beyond garage and general liability insurance. In order to protect your business, you may want to consider the following insurance policies:

• Garagekeepers’ Insurance 

Often, cars that are being assessed and repaired need to be kept at the shop overnight or even for weeks at a time. Garagekeepers' insurance protects your customers’ cars while they are under your care or stored in your shop. 

• Property and Equipment Insurance 

If your employee accidentally does something that causes failure or damage to a piece of your equipment–or if damage is caused by other factors such as a power surge, breakdown of mechanics, etc.–this will cover the necessary repairs. 

• Business Auto Insurance 

You and the mechanics who work for you will most likely need to test drive the cars to assess issues and make sure things are working properly once repairs have taken place. You will need auto insurance to cover any accidents that may happen while behind the wheel. 

• Business Interruption Insurance 

If you were to suffer an unfortunate event that causes your business to be destroyed or heavily compromised, you would still need to pay bills, salaries, etc. Business interruption insurance helps to cover these costs. 

• Workers’ Compensation Insurance

Accidents happen no matter how much training you provide or how careful an employee is in their tasks. Workers' compensation insurance protects your employees by providing insurance to them in the case of a work-related injury. 

• Business Property Insurance

Sometimes, things that happen completely out of our control damage or destroy important property or materials. Business property insurance protects your business in the event of an earthquake, fire, or other catastrophe. It also covers equipment, signage, etc., left outside the building on the premises. 

• Cyber Liability Insurance 

Unfortunately, data breaches and software viruses are more common than ever. Since most shops store their customers’ data electronically, including pertinent financial information, you may want to consider purchasing cyber liability insurance. It can protect your business from fees that arise from a cyber attack, including lawsuits and credit monitoring. 

If you have questions about any of these offerings or how to purchase garage liability insurance, please reach out to our office. We would love to walk you through your options. 

Our team is dedicated to supporting our local community and our clients by helping them protect their businesses. Our team is ready and willing to help you move forward with confidence, knowing your business is protected and your employees are taken care of.

15 Home Insurance Discounts You May Be Missing Out On

Your home is an investment, and to safeguard it for years to come, you need the best home insurance at the best available price. You can reduce premium costs by taking advantage of these 16 discounts that, when combined, can significantly reduce your out-of-pocket expenses.

1. Auto Pay (EFT) 

Auto Pay is a convenient option in which annual premiums are paid automatically on their due dates using your default credit card or bank account. Auto Pay allows you to avoid late fees and frees you from remembering when to pay. Even better, you can get a discount just for signing up. 

2. Multi-Policy

Also known as bundling, a multi-policy discount kicks in when you purchase home insurance and other lines of coverage from Sarrica Insurance Group.

3. Paid-In-Full

If you choose to pay in one full payment, you can receive a discount on the total cost of your initial insurance premium or renewal.

4. Paperless

If you choose to have documents emailed instead of snail-mailed, you can enjoy a paperless discount on your home insurance.

5. Burglar Alarm

A security system reduces the chance of burglary. If your home has a security system, we are happy to give a discount.

6. Fire Alarm or Sprinkler System

The fire alarm or sprinkler system discount applies to homes with installed and active safety devices such as fire extinguishers, smoke alarms, fire alarms, or a sprinkler system.

7. Deadbolt Locks

Installed deadbolt locks on your home’s exterior doors will get you another discount on your homeowners premiums. 

8. Sump Pump

A sump pump removes excess water from your home and keeps it dry to prevent flooding. If you have a basement and a sump pump, let us know, so we can help you save.

9. Non-Smoker

Maintaining a smoke-free household means there’s less risk of fire or smoke damage from an accident. If no one in your home smokes, you may qualify for the non-smoker discount.

10. New Roof

A new roof is less susceptible to damage from severe weather. Our new roof discount will lower your premiums if you’ve recently replaced your home’s roof.

11. New Home Discount 

Depending on when your home was built, you may be entitled to a new home discount. In general, the newer the house, the cheaper your homeowners insurance.

12. Window Shutter or Windstorm Protective Devices

The window shutter discount provides savings for homeowners who install storm shutters or other windstorm protective devices on their home’s exterior. 

13. Water Detection Devices

A water leak detection device alerts you to unwanted water leaks in your home. Once installed, let us know, and we’ll add the discount to your policy. 

14. Temperature Sensor

If your area is prone to freezing in the winter months, a temperature sensor will alert you to plummeting temperatures–and get you a discount. 

15. Backup Generator

An automatic standby generator keeps the power on when your home’s primary power source goes out. Our backup generator discount encourages homeowners to install and maintain a backup generator.

If it has been a while since you last reviewed your policy for discounts, give us a call. We’re happy to look over your portfolio to ensure it’s up-to-date and that you have the best coverage at the best available price.

17 Secret Auto Insurance Discounts You May Be Missing Out On

17 Auto Insurance Discounts You May Be Missing Out On

With prices on just about everything soaring this year, there are some simple ways to save on auto insurance. The Sarrica Insurance Group offers these 17 discounts that, when combined, can significantly reduce your out-of-pocket expenses. 

Read over these discounts and reach out if there are ones you think you may qualify for that aren’t currently noted in your account.

1. Auto Pay (EFT) 
Auto Pay is a convenient option in which annual premiums are paid automatically on their due dates using your default credit card or bank account. Auto Pay allows you to avoid late fees and frees you from remembering when to pay. Even better, you can get a discount just for signing up. 

2. Multi-Policy
Also known as bundling, a multi-policy discount kicks in when you purchase auto insurance and other lines of coverage from The Sarrica Insurance Group.

3. Paid-In-Full
If you choose to pay in one full payment, you can receive a discount on the total cost of your initial insurance premium or renewal.

4. Paperless
If you choose to have documents emailed instead of snail-mailed, you can enjoy a paperless discount on your auto insurance account.

5. Defensive Driving
A defensive driving class teaches drivers to employ safe driving strategies when behind the wheel. Taking an approved class can result in a discount and possibly remove points from your record to further reduce costs.

6. Five-Year Accident-Free or Three-Year Safe Driving
If you’re a safe driver, you should be rewarded for it. Drive accident-free for five years or safe for three, and you may be able to receive a good driving discount.

7. Married
Studies show that married drivers are less likely to file claims than other drivers. That said, married drivers typically pay less for car insurance. If you recently got married, let us know so you can take advantage of the discount. 

8. Distant Student
The distant student discount applies to students away at college with no vehicle except when home for vacations, breaks, and the summer months.

9. Good Student
The good student discount is for young drivers who earn good grades in school. This discount assumes that drivers responsible in school will also be responsible on the road.  

10. Anti-Theft or Active Alarm
If your vehicle has an anti-theft device or an active alarm, you may qualify for a discount on your comprehensive coverage costs. 

11. Anti-Lock Brakes
Since anti-lock brakes help prevent accidents, we’re happy to offer a discount if your vehicle is equipped with the now-standard braking system. 

12. Passive Seat Belt
The passive seat belt discount is for vehicles with automatic seat belts or factory-installed airbags, including side airbags. Seat belts that you must physically lock into place do not qualify.

13. Vehicle Tracking System
A vehicle tracking system helps police locate where your car is so that it can quickly be recovered if stolen. Some systems are installed in the factory; others are aftermarket devices installed after a car is purchased. The most popular systems include OnStar, BMW Assist, Toyota Safety Connect, Lexus Enform, Mercedes-Benz Teleaid, Mobile IQ, Zoombak, and LoJack.

14. VIN Etching
VIN etching is the permanent engraving of a vehicle's federally registered vehicle identification number (VIN) onto its windshield or windows. If your car has the passive anti-theft measure, you may be able to receive a discount on your insurance.

15. Daytime Running Lamps
Daylight running lights turn on during the day making it easier for other drivers to see you and helping to prevent accidents. Vehicles equipped with the running lights as standard equipment will enjoy a slight discount.

16. Low Mileage
Most auto owners drive around 14,000 miles per year. If you drive significantly less—around 7,500 miles per year, or roughly 20 miles per day—you may be eligible for a low-mileage discount. 

17. Telematics
Telematics is a method used to collect information about your mileage and driving habits. If data shows you're safer than the typical driver, you may be eligible for a discount.

If it has been a while since you last reviewed your policy for discounts, give us a call at 516-277-0812. We’re happy to look over your policies to ensure it’s up-to-date and that you have the best coverage at the best available price.

4 Trends Steering Auto Insurance Premiums Sky High

These days, everyone is looking to save — understandably so. With inflation hitting 6.8% in 2021, prices across a variety of sectors have soared, leaving many Americans with nothing but emptier bank accounts and a grimace at the gas pump and grocery store. 

It’s not surprising then that personal and commercial auto insurance rates have also been inching upwards. And it looks like premiums for 2022 will continue to climb. 

To understand why auto insurance premiums are rising, here are four trends to note. Unfortunately, it’s a perfect storm of supply and demand issues, a global parts shortage, labor deficits, and changes in the legal landscape. 

1. Supply and demand issues

A shortage of chips and raw materials (such as steel, glass, and aluminum) has lowered new vehicle production, sending demand and prices for quality used vehicles soaring. In fact, 2021 saw a 50% rise in used car prices and a 57% rise in Class 8 heavy truck prices. 

The demand for used cars presents the most immediate impact on commercial auto insurance claim costs. Why? Because when a car is reported a total loss after a collision, insurance carriers pay claims based on the current value of the used car or truck, known as the actual cash value. With used vehicle prices climbing, carrier payouts have been forced to follow.

2. Parts and technology

The parts required to build new cars are the same ones needed to repair them after an accident. However, as the world faces a global parts shortage, parts are harder for repair shops to get. In addition, advanced auto technology has increased the overall cost of parts and repairs. As a result of those two factors, the average part increased in price by 6% during the first ten months of 2021. 

3. Labor shortages and costs

Similar to other industries, auto repair shops have struggled to recruit, train, and retain qualified technicians. Once again, this sets off a chain reaction of lengthier repair times, forcing vehicle-dependent businesses to use rental cars longer — a cost usually paid for by the insurance company.

4. Costly legal settlements

Escalating legal judgments and claim-related payouts are also contributing to rising insurance rates. Some of the issues contributing to these higher verdicts against companies include:

• Distrust of corporations: More and more people believe companies are unlikely to “do the right thing.” This change in thinking has led to more lawsuits and favor from juries towards plaintiffs.

• Increased television and social media marketing tactics by law firms to reach consumers and boost their clientele.

• An increase in the use of policy-limit demands by plaintiff attorneys, which pushes insurers to make difficult decisions about settlements, even if accurate information is not yet available. 

• Changes in the legal environment. The trend of juries placing expansive responsibility on businesses beyond what is stated in contracts has resulted in excessive verdicts for plaintiffs. 

Combined, these costs are passed on to insurance companies, contributing to increased premiums for consumers.

How to Offset Rising Rates

While it may appear impossible to do anything about the unprecedented number of shortages and other factors contributing to rising insurance costs, it is possible to counteract them in several ways:

1. Adopt workplace safety practices to encourage safe driving and reduce your claims.

2. Bundle your business coverages to take advantage of available discounts.

3. Maintain your fleet and consider telematic monitoring to survey employee driving habits.

4. Call our office at (516) 277-0812 or send us an email at info@thesarricagroup.com to schedule a time for one of our team members to review your coverage to secure the right coverage for the best value.

No matter what the new year holds, we’re here to help you weather the highs and lows. If we can be of any assistance as you look to the year ahead, please don’t hesitate to reach out. That’s why we’re here.

Ida and flood insurance

It’s been an incredibly difficult few weeks for our community. For that reason, we wanted to check in and see if you and your family need anything or have questions about your insurance coverage. If so, please call us. That’s why we are here.

While the emotional — and financial — toll of Hurricane Ida is yet to be fully realized (some early estimates place damages as high as $80 billion), there’s no question it will be significant. Our community has even more difficult days ahead, but we will rebuild and emerge stronger.

Hurricane Ida reminded us so much of “Superstorm Sandy” that hit almost a decade ago, so we thought we’d review some of the data from that catastrophic hurricane. Unfortunately, it may offer a window into what Ida’s overall impact will be: 

• Hurricane Sandy caused $70 billion in damages in the U.S., mostly from flooding.

• Sandy damaged or destroyed at least 650,000 homes and 250,500 vehicles.

• Sandy stands as the fourth most expensive storm in U.S. history with 92% of the homes destroyed located in New Jersey and New York.

• Some 1.58 million claims were filed with private insurance companies after the storm, 71.5%  of which were homeowners claims.

• Sandy set historical maximum recorded water levels at the Battery in New York, Kings Point, N.Y.; Bergen Point, N.Y., Sandy Hook, N.J., Bridgeport, Conn., and New Haven, Conn., according to NOAA.

• After the storm, flood maps were updated for the first time in nearly 20 years. In 1983, 218,000 residents in New York City were living in flood-prone areas. In 2012, that estimate went up to 398,000, according to Patch.com. 

we are afraid when the final data is collected about Ida, it may be even more devastating. And sadly, given the effects of climate change, there will be another. It’s only a matter of time. 

If Hurricane Sandy, Ida, or future threats have you rethinking your current coverage, give us a call or send us an email. We’d love to look over your portfolio and see if adding flood insurance or making other adjustments is right at this time. (516) 277-0812 | info@thesarricagroup.com

What Insurance Coverage is Best for a Nonprofit Organization?

America's 1.5 million charitable non-profits house, teach, feed, and support people of every age, gender, race, and socioeconomic status from coast to coast. In fact, if non-profits were a country, they would have the 5th largest economy in the world. 

And after the year we’ve had, I think it goes without saying that communities across every state need healthy and effective non-profits now more than ever.

One rewarding aspect of our job as insurers is helping these non-profits stay focused on their missions by ensuring they have the right insurance coverage in place. Although every organization’s needs are different, here are some guidelines about coverage options for nonprofits:

Liability insurance

Liability insurance protects a nonprofit from claims that allege negligence by the organization, its employees, or its volunteers. Simply put, negligence is the failure to take proper care in doing something. 

The legal definition is a little more nuanced. It defines negligence as “the failure to exercise care toward others which a reasonable or prudent person would do in the same or similar circumstances.” For this reason, we recommend liability insurance for all our non-profit clients. 

5 types of liability insurance

There are five types of liability insurance a nonprofit should consider based on their unique needs and services:

1. Commercial general liability

The most common liability policy for non-profits is a commercial general liability policy. A policy of this nature covers claims for bodily injury, property damage, personal injury, and advertising injury. 

2. Business auto

If a nonprofit owns vehicles, we recommend a business auto policy to cover auto liability and physical damage. 

If the organization doesn’t own any vehicles, a hired and non-owned auto liability coverage policy is the right choice. This type of policy covers physical damage to another person’s car, medical expenses if someone else gets hurt, and legal expenses if a nonprofit is sued for negligence.

3. Directors’ and officers’ liability

Another liability policy to consider is a directors’ and officers’ (D&O) policy. This type of policy protects the organization, directors, officers, employees, and volunteers for “wrongful acts” in managing the organization. 

If you have employees, you’ll want to ensure your D&O policy includes employment practices liability coverage—most non-profit D&O policies do. This type of coverage protects employers against claims made by employees alleging:

• Discrimination (based on sex, race, age, or disability)

• Wrongful termination

• Harassment

• Other employment-related issues, such as failure to promote 

Keep in mind employment-related claims are the most common type of D&O claims filed against nonprofits.

4. Workers’ compensation

If you have any full-time or part-time employees, your state law likely requires your nonprofit to carry a workers’ compensation policy—another form of liability coverage.

5. Umbrella or excess liability policy

An umbrella or excess liability policy is a smart catch-all for nonprofits. It provides added policy limits for a catastrophic loss over the general liability, business auto liability, and employers liability policies.

Property insurance

A commercial property policy covers a nonprofit’s physical location along with furniture, fixtures, and office equipment. Additionally, if they own computers or electronic equipment, a computer or electronic data processing policy may be a good option. It provides coverage due to power surges, head drive crashes, and even viruses.

This is a broad overview of some of the coverage types we highly recommend for our nonprofits. Additional policies like an employee dishonesty policy or business owners policy are also available. 

Proper insurance coverage allows nonprofits to spend their time focused on doing what they do best: making a positive impact on others--and we’re here to help.

If you have questions or need more info on any of these options, please let us know so we can help you get the appropriate coverages your nonprofit needs. Our team is here whenever you need us. You can contact us at (516) 277-0812 or via email at info@thesarricagroup.com.

A New Entrepreneur’s Guide to Hiring Veterans

A New Entrepreneur’s Guide to Hiring Veterans

If you are an entrepreneur who wants to make an even bigger difference in the lives of veterans, you should think about hiring them to help turn your new business into a success. Here are some important points to help you out.

Some Small Business Basics 

Before you can start recruiting veterans, you need to get your business up and running. Here are a few essentials you may need to get the job done and it get it done right: 

A Business Plan

Staying organized is important when it comes to running a business. If you want to be organized from the start, you need a plan. You can find detailed business plan templates online to help out. 

The Right Entity 

Will your new business be an S-Corp, LP, or an LLC? If you run a business that is considered medium to high risk, you should consider choosing an LLC as your entity to protect your personal assets. You can set up an LLC online to avoid substantial legal costs. Keep in mind that if you’re going to create an LLC in New York, you’ll need to file a biennial statement every two years. 

Smart Budgeting 

Your budget can also be key to your success. Savvy budgeting starts with a bit of market research and then some serious thought about the needs of the new business. Since you have a goal of hiring veterans, you need to include the associated expenses in your budget. There are also calculators available online to help you figure out the costs of hiring employees. 

Marketing Plans 

If you want to be able to pay your veteran staff members, you need to bring in a steady flow of profits. That means getting customers into your doors and then cultivating lasting and profitable relationships with them. Marketing is critical here but you don’t have to spend a lot of cash. You simply need to be strategic about who you want to reach and how you plan to do so. 

What to Know About Hiring Veterans 

Now that you have some business basics out of the way, let’s dive into the ins and outs of recruiting, hiring, and employing veterans. Here are some terms you may need to know: 

Readjustment/Transition 

There’s no question that military life is tough and so very different from the lives of everyday citizens. If you haven’t served, it’s crucial that you understand how this transition impacts the emotions and lives of recently separated veterans. Of course, one of the most pressing issues is often finding a job so by hiring veterans you are already doing so much to help them. 

PTSD and TBI 

Unfortunately, PTSD and disabilities can also be part of the transition to civilian life. The tricky part about living with many of these service-related conditions is that they aren’t outwardly visible. Since hiring veterans is a primary goal for your business, take steps to ensure that your workplace is PTSD-friendly. Ambient music, task list, and organization can help. 

VETS 

This is an acronym rather than a shortened version of “veterans.” VETS is a series of initiatives put forth by the DOL to encourage business owners like yourself to give veterans a chance. In addition to providing training for veterans, this site is also full of valuable resources for employers. So before you hire your first veteran, you should definitely check it out. 

WOTC 

Talk to any veteran and they will tell you that military life is full of acronyms. So here’s one more acronym that you should know when it comes to hiring veterans. WOTC is short for the Work Opportunity Tax Credit from the IRS. Essentially, businesses that hire veterans may be eligible for a huge tax break. That’s in addition to gaining hard-working and reliable employees. 

After years of service, vets have the dedication and work ethic you’re looking for to turn your new startup into a thriving small business. You can also save money by making a commitment to hiring veterans. It’s a win-win situation for veterans and entrepreneurs. So make sure you have the steps and information needed to set your business up to start hiring veterans. 

The insurance professionals at The Sarrica Group are dedicated to protecting your business and employees. Call (516) 277-0812 to learn more. 

Photo Credit: Unsplash

Homeowner's Hurricane Deductibles

Hurricane season is quickly approaching from June 1 to November 30 – that's 6 months long! The most frequent causes of property loss are a result of Wind, Hail, or Water damage. Important reminder, hurricane deductibles are usually a lot higher than the standard homeowners deductible. Deductibles determine your out-of-pocket expense before the insurance kicks in. So, make sure to review your homeowner's policy with our insurance agents to go through all of your coverages and necessities. Below are essential details about the hurricane deductibles:

How do deductibles work?

• Let's say your home is insured for $400,000, and your hurricane deductible is 3%.

• If there is damage, you are responsible for $12,000 ($400,000 x 3%) and the insurer for the remaining $388,000.

Where can you check your hurricane deductibles?

• You should be able to find your hurricane deductibles on your declarations page.

• Hurricane deductibles are usually applied annually, but they may be applied more than once per year, depending on which state you reside in.

When do hurricane deductibles kick in?

• The trigger for a hurricane deducible may vary from policy to policy, but below are a few common triggers:

• The National Weather Service names a tropical storm officially

• The National Weather Service declares a hurricane warning or watch

• Hurricane wind speeds reach a specific mile per hours

Deductibles typically vary from 1% to 5% of a home's insured value. In some coastal areas where the wind is considered a higher risk, hurricane deductibles may be higher. The amount homeowners will be responsible for depends on the home's insured value and the selected "trigger" by the insurance company. In some states, policyholders may have the option of paying a higher premium in return for a smaller deductible, depending on how close to the shore they live. Insurers may not give policyholders this option in some high-risk coastal areas, making the percentage deductible mandatory. Please see the Infographic for more information: Hurricane Deductibles. 

Lastly, if you need to review or update your homeowner's insurance policy, please reach out to us by phone (516) 277-0812 or email at info@thesarricagroup.com.

Frozen Pipes? Avoid them!

Frozen pipes can rupture and flood your home. The average homeowners claim from water damage caused by a frozen pipe is approximately $11,000. To prevent the water pipes from freezing, you can implement the following actions:

1) Insulate water pipes
2) Keep the heat in your home at the same temperature day and night
3) Let a little water drip from faucets supplied by external pipes
4) Circulate warm air through the house

Extra: You can also get smart technology that will inform you about the state of your water pipes.

Signs that your pipe might be frozen:

1) Lower water pressure than normal
2) Visible frost of an exposed pipe
3) Strange odors coming from the drain

What if your pipes have already burst?

1) Immediately shut off the water flow to your home
2) Contact a licensed and insured plumber to fix the issue

Please contact your local Franklin Square agent for any additional questions. See below an illustration in more details of what to do in the situations mentioned above.

My Home Was Damaged, What should I do next?

Q. I have damage to my property - what now? 

A. Call your insurance company and inform them: 

• When the incident happened

• A description of what occurred

• A list of the damaged items and the location of the damaged property

• What is the condition of the home, and if it is still livable

• If temporary repairs are needed

• If the fire or police department were contacted, which department responded, and what is the report number

Q. Do I need to protect my home from further damage? 

A. Yes, it is your responsibility to protect your property from further damage once it is safe to do so

• Arrange for temporary repairs, for example, boarding up broken windows, covering the roof, and removing debris

• Create a list of any temporary repairs you made and save all of your receipts

• If safe, place damaged items in a secure place where they can be inspected. If you are unsure about including an item, include it with the damaged property

• If you have a fire or smoke damage, do not attempt to clean the damaged properties. Sometimes cleaning things without the proper equipment may cause more damage

What To Do If I Have An Accident?

Here is what you should do if you are involved in an accident:

Q. I had an accident – what now? 

A. First, report your claim to your insurance company. They will need to know: 

• When the accident happened

• Where the accident occurred (be specific)

• How the accident occurred

• What type of vehicle or vehicles were involved (Year, make, and model)

• The damage on each vehicle

• The contact information, including names, of everyone involved in the accident

• The extent of injuries to anyone involved in the accident

• The names and contact information of people who witnessed the accident

• The name of the law enforcement agency that responded and if police were contacted, the police report number