Your Place for Quick Answers to Common Questions
If you have any questions about insurance - general or specific - this page is a good place to start. If you have further questions, please feel free to contact us by phone at
469-634-0006 or 501-431-0431 or by clicking the link below.
Why do insurance rates always seem to be increasing?
Insurance rates increase for a number of reasons. However, the primary factors affecting your rate is the rising cost of claims with additional defense costs caused by frivolous law suits and unnecessary law suits.
Why do insurance companies change so much?
The insurance industry is dynamic. Usually, insurance companies change in response to a lack of profitability in an industry or an increase in risk occurs that is more than the carrier is willing to take.
Why and when do insurance rates go down?
Insurance rates go down when profitability increases for the insurance carriers and as your business grows the rates should decrease (provided there are no claims). Your insurance agent should be working for you to push the carrier for better rates.
How can I make sure that insurance requirements won't drain my bottom line when signing contracts?
The most effective method to keeping your insurance requirements within reason is to provide the insurance requirements to your agent. Your agent should assist you in negotiating the requirements with your customer at the start of any project to match your coverage as much as possible. Your agent will also review the anticipated costs associated with adding coverages required, so you can budget the costs into proposal.
What should I require from a Contractor when hired to provide services for my business?
When hiring a Contractor, it is important to ensure that the risk of potential claims or losses are transferred to that Contractor for the work s/he is doing on your location or on your behalf. At minimum, you should have a written contract with the Contractor including your company as an Additional Insured on the contractor's own insurance policy and a Certificate of Insurance be provided. It is also strongly recommended that the written contract between the two parties includes an indemnification clause that specifies the contractor agrees to hold your company harmless.
What is a Certificate of Insurance?
A Certificate of Insurance (COI) is a document used to provide information regarding specific insurance coverage held by an individual company or organization. This COI provides verification of the company's insurance coverage, lines of coverage and limits of coverage. It provides the name of the insurance company, the policy number(s), the named insured and the policies effective dates.
The COI should come directly from the other party's agent or insurance carrier rather than from the subcontractor or vendor. The party hiring the vendor or subcontractor should ensure that the name of the insured on the COI exactly matches the name of the vendor or subcontractor hired and matches the contract signed. COI's are not enough to protect the assets of the company. To ensure they are properly covered, property owners should have a contract developed between themselves and the vendor or subcontractor hired.