Frecuently Asked Questions


What is the difference between general liability and professional liability?
General Liability Insurance, is a broad type of insurance policy which provides liability insurance for general business risks. Commercial General Liability (CGL) is the specific name for a policy of this type in the United States insurance market. It is the "first line" of coverage that a business typically purchases, and covers many of the common risks that can happen to any type of business, such as bodily injury or property damage on the business premises or due to the business operations, personal and advertising injury, and medical payments.

It specifically excludes certain types of risks, including professional services, pollution, liquor, and directors and officers liability, and separate insurance policies are available to cover these situations.

Professional Liability Insurance also called professional indemnity insurance (PII) but more commonly known as errors & omissions (E&O) in the US, is a form of liability insurance which helps protect professional advice- and service-providing individuals and companies from bearing the full cost of defending against a negligence claim made by a client, and damages awarded in such a civil lawsuit. The coverage focuses on alleged failure to perform on the part of, financial loss caused by, and error or omission in the service or product sold by the policyholder. These are causes for legal action that would not be covered by a more general liability insurance policy which addresses more direct forms of harm. Professional liability insurance may take on different forms and names depending on the profession, especially medical and legal, and is sometimes required under contract by other businesses that are the beneficiaries of the advice or service.

Should my small business have business income insurance?

Business income coverage is not a necessity for each business. If you decide to not purchase this coverage, it’s important to understand what you will not have coverage in terms of loss. Business income provides reimbursement for lost revenue after a loss. For a main street businesses, such as a bakery or coffee shop, business income is generally a good idea.

Auto Insurance

What is the difference between comp and collision coverage?

Comprehensive insurance, otherwise known as, OTC (other than collision) insurance covers damages to your vehicle not caused by a collision. For example; theft, vandalism, impact with animals, disasters, etc. Comprehensive coverage does not cover damage in terms of a collision with the previous mentioned.

How does full glass coverage work?

If the insured has full glass coverage it will pay the amount of a covered glass loss with no deductible. This is an additional option you as the insured may want to have on your auto insurance policy. This can be extremely helpful if you are known to travel for your daily commute or if you live in rural areas with more graveled roads.

If my car breaks down, will my auto insurance carrier cover rental car?

This is specific to each individual insurance carrier. Every company handles this type of coverage differently. The coverage could come as a default on insured policy and offer a small amount towards this coverage, where other companies do not have anything allotted. Each carrier allows the insured to purchase additional coverage if it is something that fits his/her needs.

When do I file an auto insurance claim?

If you as the insured are involved in any accident it's always a good idea to contact local law enforcement to file a police report to protect you. In some cases there is minor damage and no one is injured, filing a police report at the police station is always a secondary option. Having a police report is documentation that's important to your claim. It's also important as most insurance companies ask for a copy when filing your claim.

Does my auto insurance pay if someone else is driving my car during an accident?

Generally, most cases will cover based on the policy for the vehicle. So giving permission for a friend or relative to drive your vehicle will not affect coverage based on the person driving. Be sure to ask your agent specific to your policy if this is a concern.

Can I cancel my auto insurance policy anytime?

This is often carrier specific. Generally most carriers let you cancel at any time as long as proper notice is given prior to canceling. Any unused premium may be refunded, however some carriers may charge a cancelation fee if the cancelation is during the middle of the policy term. Ask your agent if this is a concern.

Home Insurance

What is water back up and sump pump failure insurance?

Water back up is an additional coverage to your homeowners insurance policy. If property is damaged due to water backing up into the home due to; sump pump, drains, pipes, sewage, or additional fluid transfer systems from your home the insured is covered. Ask your agent if this insurance coverage is something you may be interested in.

What is renter insurance?

Renters insurance provides liability insurance to the tenant's personal property. It covers circumstances such as; vandalism, fire and theft. When personal property becomes uninhabitable, renters insurance will pay for expenses.

How much homeowner insurance should I have?

When purchasing Homeowners Insurance, the insured should have enough insurance to cover the cost of rebuilding the home. Contractors often change prices to build homes due to change in cost of material. The insured will need current construction costs. By getting current prices, this will help the insured cover all costs to finish the home.

What is personal property insurance on a homeowner insurance policy?

Personal property insurance is something most companies will cover. It will give you additional protection that will cover high-value items. Items include; jewelry, electronics, glassware etc. Some companies however may set limits for items. Be sure to talk to your agent about Personal Property Insurance.

Do I need boat insurance or is my boat covered by home insurance?

Any additional assets that are on the property of the insured, such as a boat, will vary in coverage based on the homeowner's insurance policy. In most cases the policy only covers damages to assets that occur while on the property.

Personal Umbrella Insurance

What does a personal umbrella policy cover?

A Personal Umbrella Insurance policy often gives additional liability coverage above the auto, homeowners, watercraft, and auto policies. Personal Umbrella Insurance is designed to protect the insured from lawsuits and major claims. In result it helps protect assets of the insured.

What is personal liability insurance?

Personal Liability coverage in the homeowners policy will provide additional coverage if property damage or bodily injury is inflicted by others. The home owner or family then becomes legally responsible.

Workers Compensation Insurance

Can an employee sue my business if I have workers compensation?

Employees have the possibility to sue at anytime, not necessarily by fault of the employer. However the purpose of Workers Compensation Insurance is to guarantee employees medical benefits in the result of a work related injury. When having Workers Compensation Insurance employees often lose the ability to sue their employer.

Life Insurance, Long-term Disability and Long-term Care

Why is life insurance needed?

Life insurance is needed for a variety of reasons; to protect your family and loved ones, pay off debts and other expenses, add financial security, and to bring a peace of mind. Life happens at all stages; young, middle aged and elderly. Having life insurance will provide the care needed after you or your loved one has passed.

What is universal life insurance?

Universal life insurance is type of flexible permanent life insurance offering the low-cost protection of term life insurance as well as a savings element (like whole life insurance), which is invested to provide a cash value buildup. The death benefit, savings component and premiums can be reviewed and altered as a policyholder's circumstances change. Unlike whole life insurance, universal life insurance allows the policyholder to use the interest from his accumulated savings to help pay premiums over time.

What is the difference between universal and whole life insurance?

The premiums of Whole Life Insurance is often consistent and offers guaranteed cash value accumulation. To where the premium of Universal Life Insurance often gives flexibility in payments along with the savings aspect of the policy.

Why is there life insurance for children?

Life insurance for children is just as important as it is for adults. However most children do not have an income. Life Insurance will give the family peace of mind, along with financial security. If a loved one passes at a young age, life insurance can help with uninsured medical bills, funeral expenses and memorials. Having life insurance for children will help provide where needed.

Does long-term care insurance cover nursing home cost?

Long-term Care Insurance can vary between carriers. These types of policies can help pay for many types of long-term care. Some policies, depending on the carrier, may cover only nursing home care. However others may provide additional coverage for services like; assisted living, in home care, and medical equipment. Ask your agent what your long-term care insurance covers.

What’s the difference between group life and individual life insurance?

Individual Life Insurance controls the policy along with coverage amount. Group Life Insurance has a single contract that covers multiple people. Group Life insurance is particularly common in labor employment settings where the employer controls the policy.

Flood Insurance

Is flood covered under homeowners insurance?

The standard Homeowners and Renters Insurance policies often do not include flood damage. Flood insurance can always be purchased under a separate policy. The insured should research if their home is in a high risk flood zone. This can be done by contacting your local government agency for a flood zone map, or by visiting the Map Service Center of Federal Emergency Management Agency at

Health Insurance

What is coinsurance and how does it affect my health insurance?

The insured will find in the Health Insurance policy under the coverage section the coinsurance percentage listed. The percent listed is the percent the insured is responsible for. Common percentages are 10% or 20%. For example, you receive a bill of $200.00, and have a 20% coinsurance policy you as the insured owe forty dollars. The insured receives a bill of $100.00 and have a 20% coinsurance policy you as the insured owe twenty dollars.