January 2018

To help you make sure make sure that your business has the right Commercial Auto policy at the right price, we’d recommend following these guidelines:

Make sure to cover all vehicles that your employees drive on company business. This could include vehicles that employees own, lease, or rent – as well as those that the company owns.

Determine whether you need Personal or Commercial Auto insurance. You might be able to save money by covering vehicles with a less expensive Personal Auto policy in some situations — for example, by registering title to a vehicle in your name. However, if the company owns the vehicle, you’ll need Commercial Auto coverage. Bear in mind that a Personal Auto policy should include the contents of the vehicle, as well as medical costs if a driver suffers an injury on company business.

Be sure to comparison shop. Because every insurance company sets Commercial Auto premiums and coverages in its own way, prices (and values) can vary significantly. Because we represent a variety of companies, we can offer professional advice on finding a policy that’s tailored to your needs — and pocketbook. Just give us a call.

Insurance protects your small business from a variety of liabilities and losses. While you already pay for commercial liability, auto and property insurance, learn how umbrella insurance can help your business, too.

What is Umbrella Insurance?

Umbrella insurance is a policy that kicks in when you max out the limits of your primary insurance policies. It expands your liability and general commercial insurance coverage and may cover incidents your primary insurance doesn’t cover. Plus, it gives your business a layer of protection that increases your peace of mind if you ever face catastrophic insurance losses.

How Does Umbrella Insurance Work?

When you file an insurance claim, the insurance company will cut you a check for the damages or loss. Unfortunately, your primary insurance policy limits may not cover the entire claim, or you may face multiple claims from a single accident or mistake. In these cases, your business could face financial obligations that threaten your company’s assets and future.

An umbrella policy can cover that difference. It protects your business.

What Does a Commercial Umbrella Policy Cover?

Your small business could be responsible to pay for significant liabilities, including property damages, medical bills and legal fees, after an accident. Here are a few common situations your small business may face.

• A customer suffers an injury from a defective product and requires extensive medical treatment.
• An employee causes an auto accident while delivering products, and now your company faces large property damage and bodily injury liabilities.
• A vendor slips on stairs while visiting your property and sues for physical injuries.
• You fail to follow through on a contract, resulting in a lawsuit.

In each of these scenarios, you may file an insurance claim through your primary coverage, and then you can trust your umbrella insurance policy to cover any excessive charges your primary insurance doesn’t pay.

How Much Does Commercial Umbrella Insurance Cost?

Typically, you can purchase a commercial umbrella insurance policy for several hundred dollars annually. Many small business owners want to save money, which may prompt you to avoid this valuable insurance. However, consider the benefits a commercial umbrella policy provides and the amount of money it could save you in the long run, especially if you face a large lawsuit or other liability claim.

How Can Your Business Purchase a Commercial Umbrella Policy?

Talk to your insurance agent about your specific needs. Provide details about your business, such the services you offer, number of employees, financial needs and past claims, as these details can affect the type and amount of umbrella insurance you need.

With a commercial umbrella insurance policy, you protect your business. It gives you peace of mind and security.

Do you have the information you need to make an informed decision on buying Business Interruption (BI) insurance? Unfortunately, some companies only discover that they don’t have enough BI coverage to stay in business after they suffer a major loss. On the other hand, other firms over-insure, shelling out excessive premiums for protection they might not need.

We’d recommend that you review your Business Interruption policy. Check out the insured or reported values for your coverage, as well as the extensions that apply to the specific needs and operations of your business. For example, you might consider adding:

Claims Preparation Fees
Contingent Business Interruption
Expediting Expense
Extended Period of Indemnity
Ingress/Egress
Ordinary Payroll Coverage
Selling Price of Finished Goods Inventory
Service Interruption Power Outage

To help make sure that you’re getting the Business Interruption protection you need at the right price, we’d be happy to do a comprehensive evaluation of your coverage. Just give us a call.

Your small business tax returns may not be due until April, but now’s the time to start your tax prep so you’re ready for the big day. As you gather documents and compile receipts, consider the commercial insurance premiums you can deduct as business expenses.

IRS Expense Deduction Guidelines

According to the Internal Revenue Service (IRS), small businesses can deduct ordinary and necessary costs associated with doing business. Certain insurance premiums fall into this category of deductible expenses.

Insurance Premiums you can Deduct

Here’s a partial list of business insurance premiums you may be able to deduct on your tax return.

1. Auto insurance for commercial vehicles the business owns if you deduct the actual cost of the vehicles and not the standard mileage deduction.

2. Business interruption insurance that covers lost profit if a covered event causes a temporary business shut down.

3. Credit insurance that pays for losses caused by bad business debts.

4. Group health insurance premiums if the company’s employees, managers and owners benefited and the policy is written in the business’s name.

5. Liability insurance that covers accidents.

6. Life insurance for officers and employees if you are not the beneficiary of any of those policies.

7. Long-term care insurance available to employees, managers and owners.

8. Malpractice insurance for personal liability that occurs because of professional negligence.

9. Overhead insurance, which covers business expenses if you become disabled.

10. State unemployment insurance fund contributions if they are taxed under your state’s law.

11. Workers’ Compensation Insurance that covers employees’ occupational injuries or illnesses.

Insurance Premiums you Cannot Deduct

IRS rules prevent your business from deducting several insurance premiums, including:

• Certain life insurance or annuity premiums
• Insurance premiums paid to secure a loan
• Personal insurance premiums
• Self-insured reserve payments
• Sickness or Disability insurance premiums

How to Calculate Insurance Premium Deductions

To calculate your insurance premium deductions, gather your records and add all the allowable premiums you paid during the tax year. Include this figure with your other business deductions on IRS Form 1040. You can find additional helpful information about tax deductions in IRS Publication 535, the Business Expenses worksheet, and IRS Publication 334, the Small Business Tax Guide.

Insurance protects your business and offers invaluable peace of mind. Talk to your qualified professional tax preparer now as you prepare to file your taxes. He or she will evaluate your specific insurance policies and business circumstances, help you calculate your deductions properly and assist you in maximizing your tax return this year.