SACKRISON INSURANCE AGENCY

​Sheila finally has her dream business up and running. She jumped through all the legal hoops, got her tax ID number, found a domain name to create an online entity, and started up business accounts on the biggest social media websites. Her company is insured with all the basic commercial insurance coverages.

She thinks all of her bases are covered. Word of mouth has been creating new customers. Sharing and advertising on social media is spreading the news of her presence. Sheila is adding new employees regularly as her business increases.

Success is finally within her grasp.

You know I’m going to throw in a sob story that crushes dreams and crumbles the castle in the clouds? After all, this sounds too good to last and this is an article about insurance.

How about I spare you the sob story and introduce a hero who saves the day… before possible tragedy hits?

Sheila’s Uncle Keith stopped by her office to check out her successful endeavor. He is her favorite uncle, the businessman she’s looked up to since she was young and began dreaming this dream of hers.

Uncle Keith asked all the right questions and discovered that Sheila never purchased any commercial coverage beyond the basic requirements.

As it happens, Uncle Keith is the one with a sob story. He told it to Sheila, and she paid close attention to his advice.

Uncle Keith had an unfortunate event take place at his company the previous year.

One of his employees was running an errand for the company when she swerved to avoid hitting a cat. Tragically, she ran into a biker instead, causing extensive injuries that called for a lengthy hospital stay and great loss of income for the biker.

A lawsuit brought on multimillion-dollar expenses for Uncle Keith’s company. Thankfully, Uncle Keith had a commercial umbrella policy in place for his business.

That coverage took over where his basic coverage left off. Without that extra coverage, there would have been no way for him to pay for the extra expenses out of pocket, and his company would have gone under.

Uncle Keith’s story put a healthy fear into Sheila, so she took his advice and called her insurance agent to discuss how commercial umbrella insurance would work for her.

Does this resonate with you?

If you are a business owner, you realize the importance of having good coverage for your company. But do you really know how quickly things can go downhill?

With how litigation-happy people are, and with how quickly a catastrophic loss can take place, paying a little more for commercial umbrella coverage is a wise choice.

​This type of coverage is like an add-on coverage to your basic commercial insurance. It takes over where your basic liability coverage ends.

Ask your insurance agent about commercial umbrella insurance, and the many ways you can customize it to work for your company.

If you don’t have a local agent to hash things over with, give me a call at ​(707) 931-018.

Business interruption insurance is like the “lost and found” of business insurance. I’ll explain why.

The sad story of Bill and Gary’s Famous Bookstore.

Bill and Gary had a local bookstore that did exceptionally well. Major bookstores had closed right and left. But their customers were loyal and bought enough books to provide for Bill and Gary and five full-time employees, as well as 10 part-time employees.

The bookstore had a lost-and-found. Bill and Gary joked that people were always leaving things behind.

One day, a major fire started in the adjoining building. Smoke and water and fire damage made their store unusable for months. It was devastating.

That’s when Bill and Gary discovered they needed their own lost and found.

Their bookstore lost income immediately. They couldn’t sell smoke-damaged books in a ruined building.

Bill and Gary also lost a place to sell the replacement books that were being shipped to them. Books were no good in boxes. They needed to be on shelves. They needed a temporary location.

Finally, and more painfully, with the lost sales, they had to let their trained employees go. These employees were almost like family.

To hire new employees months later, train them, and create the same environment that made their store so special... well... it seemed impossible.

Bill and Gary’s Famous Bookstore needed cash flow. Without it, they went out of business.

They needed business interruption insurance. They didn’t have it.

What is business interruption insurance?

Think of business interruption insurance as a paycheck for your business when it can’t operate because of a covered loss.

In other words, it’s disability insurance for your business.

Your basic business insurance policy covers two major things: liability and property. But without business interruption insurance, there is no cash flow to keep the doors open.

Here are just a few ways that business interruption insurance can be the “found” to your “lost.”

1. Lost profits.

When you are shut down due to a covered loss, you aren’t making money. Business interruption insurance can keep the profits coming into the till.

2. Cost to relocate.

You may need a new place (like Bill and Gary) to temporarily operate your business. Business interruption insurance can pay the movers to get that done.

3. Rent.

After you move, you’ll need to make new rent payments. Business interruption insurance can write that check until you are back in your normal location.

4. Loan payments.

Your business may be disabled, but your creditors still expect payment.

5. Payroll.

This could be the most important benefit. You have trained and loyal employees. They can’t be expected to wait weeks or months for your business to reopen. Business interruption insurance can make payroll while you get up and running again.

My advice:

Often, business interruption insurance is automatically included in your commercial insurance policy. But not always.

It’s also possible that even with it included, it’s not enough. Most business owners don’t know how much coverage they have.

I recommend getting an annual business insurance checkup with your local agent. And if you don’t have a local insurance agent, call or email me. I’d be happy to answer any questions you may have.

If you are in the process of starting your own business, purchasing worker’s compensation insurance is an important first step to take.

By law, Californian employers need to provide this type of liability insurance for their employees.

Let’s take a look at some facts concerning this type of insurance that are helpful to understand as an employer:

Do you plan to be the sole proprietor?

You may purchase workers’ comp for yourself, though it usually works best to just make sure you have your own health, life, and disability insurance policies. Discuss these options with your insurance provider to weigh what type of policy best fits your needs.

If you do plan to hire employees, you will need to search for a carrier who offers workers’ compensation insurance with good rates, coverage, and ease of access to claims adjusters.

It can be helpful to find a provider that is familiar with your type of business, as well. Finding a local broker can be a huge asset as you search for the best carrier.

They do the work of researching which agencies would work well with your type of business, and have the lowest rates with the best coverage. Workers’ compensation insurance rates are not regulated by the state, unlike some other types of insurance.

This makes it even more important that you shop around for a good carrier to fit your business’s specific needs.

Once you purchase the coverage, your next step will be to post that information in a very noticeable place. You will need a large and conspicuous poster with information showing what coverage you have for workers’ compensation, and where to receive medical care for work related injuries.

If you do not have this information posted, you could face a fine of up to $7,000. As you hire new employees, you are also required to give them a workers’ compensation pamphlet with information about their rights.

Providing this type of coverage for your employees is legally your responsibility, therefore, you can not ask your employees to help pay for it. This insurance does not come out of their wages.

What you pay for your premium will depend on what type of business you run, and your past safety record. Obviously, if you own a mechanic shop, the risks of work related injury will be much higher than if you run a shop that sells musical instruments.

If you have a past history which includes claims for work related injuries, that will cause your premium to be higher than if you have a clean safety record.

If you have any questions regarding the state requirements for employers, or any other thoughts on this topic, please give me a call at (707) 931-018.

​Providing workers’ compensation insurance is an important responsibility for employers, and I’d love to help you find the coverage your business needs.

​Home insurance policies may look like Greek and geek to many of you. But I can make it simple! ​As we talked about two weeks ago, homeowners insurance policies are standardized. That’s to help make sure you can compare apples to apples.

​ ​As I explain them, remember the necessary disclaimers: I’m not a lawyer, policy language is the final word, and I can’t guarantee benefits.To make it even easier, the coverage is broken down by sections, and these sections are like alphabet soup... A, B, C and so on.

​So, let’s learn our ABCs. Trust me, it’ll be easier than you think.

We’ll start with the letter A.​

Coverage A: dwelling

​​The primary living structure on the property listed on the declaration page is usually the “dwelling,” along with permanently attached fixtures such as cabinets and an attached garage.

​In short, Coverage A covers your house, and just your house... not your stuff, and not unattached structures.​ You select a limit of coverage, say $250,000, and then pay a premium. But there’s more to know.

​Watch for: policy forms

​​​​​How and when you are covered depends upon which “policy form” you chose; there are several: HO-1, HO-2, and HO-3 polices, as well as other types too. They’re also known as Basic Form, Broad Form, and Special Form, in addition to other names.

Why does that matter?

​It matters because a Basic Form policy (HO-1), the cheapest policy, covers only 10 or 11 specifically “named perils. A couple of the named perils are fire and lightning. But if the specific cause of your claim isn’t named... you aren’t covered. Likewise, an HO-2 policy (Broad Form), limits coverage unless it’s for one of the 16 or so “named perils.” Most policies are now HO-3 type policies, covering “all perils” unless specifically excluded. That’s good, but don’t assume you have the “all-perils” type of coverage. Ask your agent.

​Watch for: actual cash value versus replacement cost

​You think that the coverage amount is the coverage amount, right? Well, yes and no. ​There are many factors at play in the settlement... too many to go into in this brief article.​​ ​However, there are three terms you should be aware of and discuss with your agent. They will affect your premium and how your claim is handled after a loss. So, they are very important.​​

​Actual Cash Value (ACV). ​The least expensive policy. It also pays out the least at claim time. Depreciation is considered, and that’s usually going to leave you with less at claim time than you wished.

​Replacement Cost Coverage (RCV)​. The most common coverage. It’s more likely to get your home rebuilt “as it was” up to certain policy limits. You usually need to rebuild in order to get full replacement value.

​Guaranteed or Extended Replacement Cost. ​It’s the best coverage, if you can get it, but it’s also the most expensive. Depending on your needs, you may or may not want this coverage.

My advice. The joy of a low premium today can be ruined by the shock of inadequate coverage at claim time.

Questions? Give me a call at (707) 931-018 to talk about your homeowners insurance.

Gary and Sue have a basic homeowners policy.

Severe storms caused a tree to crash near their house where the power line worked its magic, taking out their electricity.

They finally got their power restored, but it wasn’t until the following week that Sue discovered her deep freeze had malfunctioned, not turning back on after the power was restored, and causing her well-stocked food cache to completely spoil.

In this scenario, Gary and Sue had damage that was caused on their property by a covered peril, thus making it possible to use their homeowners insurance policy to step in and cover around $500 of their loss.

Any loss beyond that may not be covered, and they did have to pay a deductible to take advantage of that reimbursement.

Valerie lives in a nice home near the Bay Area.

After taking a short vacation to visit family in Utah, she returned home to discover the power company had shut down temporarily to prevent wildfires during a period of high winds.

Everything seemed in order when she returned from her trip, but the same thing happened to her freezer during the power outage. It had malfunctioned just like Sue’s, and she didn’t discover the damage until it was too late.

She called her insurance agent, only to find out that her homeowners policy would not cover damage caused by a power failure that did not originate on her property.

The power company refused to compensate for any losses, so Valerie was resigned to replacing her food stash as she could afford to.

Business owners insurance:

Businesses have the potential losses on a much higher scale, but insurance coverage works much the same way.

As a business owner, you can purchase business interruption insurance for times when your company shuts down due to an unforeseen crisis.

It’s a lifesaver when you need to continue paying your employees and drawing a salary after a catastrophe causes your business to halt temporarily.

But if your lights are out, and there’s no physical damage to your actual structure or machinery, you face paying your employees out-of-pocket.

Your best plan is to have a back-up power source for those times when you might face an extended power outage.

There are always variables, and each household and business is unique. You will want to discuss your coverage with an agent if you have any questions or concerns.

If you don’t have an agent or are looking to find one in the Bay Area, give me a call. I’m happy to help you with your insurance needs.

You’ve already got all of the required insurance policies such as homeowners, auto, and health insurance. Maybe you even have a life insurance policy.

But have you ever really considered whether long-term care insurance would be beneficial to you?

I’m going to go over some statistics that just might make you ponder how prepared you and your family are for the later years of life.

Whether you are thinking about your personal needs or those of your parents, here are some facts to consider as you navigate life after middle age.

As difficult as is it to accept, most of us will end up needing help with daily tasks as we age. Things like bathing, using the toilet, getting dressed, feeding ourselves, getting in and out of bed or chairs become difficult or impossible without help.

According to the National Health Care Data, these are the top 10 reasons that bring about the need for long-term care:

• Broken bones
• Recovery from an illness, injury, or surgery
• Rehabilitation after a hospital stay
• Dementia/Alzheimer’s disease
• Multiple sclerosis
• Parkinson’s disease
• Heart disease
• Strokes
• Head injury, often from a fall
• Obesity or chronic/terminal medical condition

The average age of a care recipient is 69.4 years. It is recommended that you look into purchasing a long-term care policy after your 60th birthday.

Chances of you needing long-term care before you turn 60 are very slim, but by the time you turn 65, your odds greatly increase. An estimated 70% of people over 65 will need some type of long-term care.

Many people mistakenly expect that the government will take care of their needs as they age. If you are depending on Medicare or Medicaid, be prepared for disappointment.

Medicare is not set up to help with long-term care, and Medicaid only chips in once your assets have been sufficiently diminished. (Which won’t take long, if you are not prepared!)

The average annual costs for long term care options in the state of California in 2019 looked like this:

• Homemaker services $64,000
• Home health aide $64,000
• Assisted living $54,000
• Nursing home, semi-private room $105,000
• Nursing home, private room $127,000

It doesn’t take long for a savings account to go from a hefty nest egg to an empty nest, then houses and properties get sold to pay for the extra expenses.

These are a lot of facts to take in, and they are not the most pleasant to think about. It doesn’t need to be such a burden.

With a long-term care policy, you can rest at ease that your life’s work won’t get depleted should you require personal care in the future.

The investment you make now in a good policy may make all the difference in providing future financial security for you and your loved ones.

​I can help you find a good provider. Call me at (707) 931-018 to discuss long-term care insurance.

As we celebrate America and summer, let’s remember to be insurance-smart too.

I want everyone to have a marvelous Fourth of July with friends and family. But remember that three specific risks increase on this particular holiday. So, let’s talk about them, and how you can be prepared.

1. Increased traffic enforcement

First, we all know that beer, wine coolers and other adult beverages are flowing a little more freely on the Fourth of July.

Because of that, law enforcement will be extra diligent to keep us all safe on the road.

So have a designated driver ready after the party or a cab lined up to get you home. A mistake can cost you thousands, including much higher insurance premiums for years to come.

Second, because of the increased enforcement on the roads, you have a much higher chance of hearing those dreaded words... “license, registration, and proof of insurance, please.”

Fortunately, California is one of about a dozen states that allows for digital proof of insurance (like an app on your phone).

But since many of these traffic stops will occur at night, and you’ll be nervous, I’d recommend also having a paper copy of your proof of insurance easily accessible.

2. Increased fireworks risks

California has a “Safe and Sane” fireworks law. However, our local laws in Napa don’t allow for any fireworks.

But that may not stop your friends from buying sparklers in another community and bringing them to your backyard. And it’s hard to tell them to not light ‘em up. But maybe it’s worth the risk to be a party-pooper.

The National Fire Protection Association says that fireworks cause more than 15,000 fires each year.

As much as your insurance agent wants help you if you have a loss due to fire... we’d much rather that you never experience a fire.

Fireworks are fire hazards. So just say ‘no’. It’s the law in Napa, and it’s a safety issue.

3. Increased accidents and injuries

Speaking of fireworks, did you know that “harmless” sparklers are Emergency Room Enemy Number One? Turns out they aren’t so harmless.

Over one-quarter of all fireworks-related ER visits on the Fourth of July are caused by sparklers. That’s more than any other type of fireworks-related injury.

The Fourth of July is a fun time. But it’s also a time of accidents and injuries. As the sergeant used to say on Hill Street Blues: “let’s be careful out there.” None of us want to find out how good our insurance is.

My advice:

In addition to the advice I’ve given above, I’d recommend making a phone call to your local agent to make sure your homeowners insurance has enough liability coverage, including “guest medical” coverage.

As always, if you don’t have a local agent, I’d be happy to answer any questions you have.

If you’ve lived in California for any period of time, you know that there are several “what if” scenarios that creep into your routine, and for the most part, it’s rarely a critical thought that comes to mind.

But as we have all witnessed in the last year, wildfires have taken their toll on communities throughout the state.

That being said, I would like to challenge you to be intentional about reviewing, assessing and evaluating your individual Homeowners Insurance at least twice a year, just to make sure you are covered in the event of a crisis or natural disaster.

Points to ponder

• Is your policy up to date with your home’s current value?
  Remember to maintain regular and periodic communication with your provider or Broker when you make improvements to your property. These details will make a big difference if you ever need to file a claim, and you want to make sure you are properly covered.
• Have you inherited or added any valuables to your belongings?
  Be sure to review the content coverage of your policy to further ensure that it is consistent with your current assets.
• Check with your agent/broker to make sure that you have an extended replacement cost on your policy.
  In the event of needing to rebuild your home after a natural disaster, you want to make sure that your policy has an extended replacement clause as the typical policy has limits, and this coverage will kick in when those unforeseen charges appear.
• Leverage online resources to make sure your provider is a legitimate California admitted carrier?
  Please be intentional about reviewing the background and credibility of your provider or broker. You want to make sure that your coverage model is accurate and in-force further ensuring a seamless process as you recover and potentially rebuild after a crisis or natural disaster.

How you can prepare

Once you have reviewed your individual policy, you want to make sure you are taking steps to minimize any vulnerabilities on and around your property that can prove instrumental in mitigating any high-risk of damage that may be out of your immediate control.

• Clear the brush around our property a minimum of 50 feet away from our dwellings.
• Purchase a long, heavy-duty garden hose, some rakes and shovels to keep strategically accessible around your property.
• Develop and practice a family emergency plan for exiting your property and communicating with each other in the event that you get separated during the event.
• Have bags packed for each person in the family and placed in an easy-to-grab location with their individual essentials to include snacks, toiletries, bottled water, sanitizer, etc

​Please feel free to call our office for your own personal review and assessment of your Homeowners Insurance Policy. We recognize the importance of insuring your valuables and are intentional about taking steps to further ensure your coverage in the event of a crisis or natural disaster. You can reach us at 707-931-0186.

This past year has been one of vast extremes for business owners. Depending on the industry, it seemed that 2020 was either an unexpected boon, or a total disaster for the majority of businesses.

For those whose companies experienced severe interruption, whether voluntarily or due to state mandates, questions quickly arose about whether their business interruption insurance coverage would step up to provide relief.

Unfortunately, most business owners ended up disappointed as they discovered how this type of coverage works. In today’s article, we will take a look at what type of interruptions are typically covered, and how to possibly be better prepared with appropriate coverage for the future.

If you own a business, you probably are familiar with commercial insurance. There are optional coverages available to choose from depending on the types of perils your specific business faces. Your agent/broker has likely discussed how to customize your commercial policy.

One type of coverage available to business owners is comprehensive multi-peril commercial coverage. Business interruption insurance is one of the options you have to choose from within this type of policy.

So, how exactly does business interruption insurance work?

Your policy only kicks if your business sustains physical damage that is caused by a covered peril. So if your policy covers water damage, theft, fire, vandalism, and similar perils, the insurance will cover loss of income and/or rental costs while your place of business is being restored.

Most policies, however, have exclusions for losses due to contamination caused by viruses and bacteria. These exclusions stemmed from the SARS outbreak in 2003, after which most insurance providers made a standard exclusion for viral pandemics, requiring evidence of physical damage when a claim is made.

Some insurance companies may plan to offer business interruption insurance that will include optional coverage for pandemics such as Covid-19.

However, you cannot expect that coverage to protect you from our current situation. If you are worried about the possibility of facing similar interruptions in the future due to another pandemic, you will want to be watching for a provider who offers this type of coverage.

There have been many lawsuits across the country involving businesses and their insurance providers concerning business interruption. In the vast majority of cases, the insurance provider comes out on top, thanks to the exclusions in the wording of the policies.

There is no doubt that 2020 was an exponentially tough year for insurance providers as well as business owners.

Between the California wildfires and the Coronavirus, countless businesses and homeowners were affected. This, of course, puts a strain on the insurance companies as they struggle to pay out what is due without going broke themselves. This is where it is important for you, as a customer, to know the integrity of your provider.

​If you have questions about the topics we discussed today, give me a call. I’d love to assist you as you seek to become more informed about these issues.

With the rise in unemployment rates and a great number of people working from home, workers’ compensation claims have gone down this past year. Not only are there fewer workers getting hurt on the job, but some employees are apprehensive to make a claim if their job prospects are uncertain.

Though the number of workers’ compensation claims have gone down in general, there has been a change in the types of claims being made.

On May 6, Governor Newsom’s executive order, N-62-20, came into effect.

This order presumed that workers who contracted Covid-19 between March 19 and July 5, under certain circumstances, had contracted it while on the job.

These workers would then be considered eligible for workers’ compensation benefits. The order expired on July 5, but on September 17 California legislature passed Senate Bill 1159. This bill protects workers who may have contracted the virus while on the job after July 6, and remains in effect until January 1, 2023.

According to the bill, certain employees who test positive within 14 days of working on the job site can stay home while benefiting from workers’ compensation, hopefully reducing the spread of the virus.

This, of course, only applies to those whose job site is not at their own residence. The bill covers not only first responders and medical workers, but also those who do deliveries, grocery store employees, warehouse workers, and more.

Despite the new laws being made regarding Covid-19, not all of the claims are meeting requirements. Up to a third of the claims made are being denied for various reasons, such as lack of positive tests, refusal to be tested, or workers contracting the virus while working from home.

One interesting note to consider would be the varying costs due to claims from Covid-19 patients. The vast majority are fairly inexpensive, covering loss of wages for the 14 days that a worker stays home on quarantine.

A much smaller percentage, though, can cost employers up to hundreds of thousands of dollars. There are some patients, especially those with pre-existing conditions, who have required extended hospital stays and time in the ICU.

There is so little known about the long-term effects of Covid-19 for some, which could possibly turn into long-term care and higher costs for employers.

So what are some measures you can make as an employer right now?

● Prepare a written plan of how you are working to prevent the spread of Covid-19 in your workplace.

● Train employees and supervisors on how they can keep their workspace clean and safe from exposure to viruses.

​● Make sure your employees know what measures you are taking to protect them in the workplace.

● Remind employees of the common symptoms of Covid-19 and encourage them to seek medical help if they are experiencing those symptoms.
As always, feel free to call me with any questions you may have about insurance topics.