Tag Archives: business property

Garage Keeper’s Liability

Hand of car mechanic with wrench. Auto repair garage.Garage Keeper’s Liability

Surprise! Your customer’s car isn’t covered under your Liability policy, even a Garage Liability policy.The vehicles you work on are worth multiple thousands of dollars. If there was a fire in your garage, you could be held responsible for loss to your client’s property. Business owners who operate towing companies, garages and auto repair shops not only transport or fix their customers’ vehicles, but also are entrusted with keeping the property safe while it is in their control. Most policies, even garage liability policies, do not cover these losses.

A Garage Keepers Liability policy protects you if a customer’s vehicle is damaged while it is at your business. While basic garage liability coverage pays for injury or property damage caused by an accident from the business operations, it does not protect your customers’ property. Garage Keepers insurance policies are designed to help you protect your customers’ property and your business in the event of fire, theft, extreme weather, or vandalism at your business. Garage Liability and Garage Keepers Liability are designed to complement each other and ensure that you don’t have any gaps in coverage. Additional coverage can be added to include coverage for the contents of your customers’ vehicles, such as the items in their glove box or trunk and any non-factory stereo equipment.

While this may seem complicated, the experienced professionals at Cobb-Hall Insurance can provide solutions designed specifically for your needs.

LLC vs. Individual – Rental Property Owner

 LLC vs. Individual – Rental Property Ownermeter

Should you form an LLC if you own rental property? The decision to form an LLC is complicated and each landlord’s situation is different. The first LLC came into existence in the U.S. in 1977 in Wyoming, since then all 50 states have enacted LLC legislation.  Here are some pros and cons to  help you decide if an LLC is right for you.

PROS

  • Protect your personal assets from lawsuits: If someone sues you when set up as an LLC, your personal assets are protected. Only the LLC’s assets are at risk.
  • Pass-through taxation: Pass-through taxation is an IRS related ruling allowing LLC profits to be passed directly to the owner. Taxes are paid on by the individual, avoiding double taxation.
  • Easier management responsibilities: LLCs are much more easily managed than corporation or partnerships and many states offer reduced fees.

CONS

      • It costs money to set up an LLC: You can set up an LLC with the State Corporation Commission and pay a small fee. Many people choose to use an attorney or hire a services company. These options cost from a few hundred to a few thousand dollars.
        • Keep your money separate: It is important that you never mingle your LLC money with your personal money. The slightest infraction could cause a litigant to claim the LLC is not a separate entity, causing you to lose any LLC protection.
  • Mortgages can complicate: If you already have a rental dwelling with a mortgage on it, changing to an LLC could look like a sale to your mortgage company. If you have a due-on-sale clause in your mortgage it may cause the mortgage company to require payment in full.

 

The decision to form an LLC is complicated and each landlord’s situation is different. Consider the above information and consult with your CPA or attorney to see if an LLC benefits you. Then let the experts at Cobb-Hall provide insurance solutions designed specifically for your needs.

Equipment Breakdown

EquipmenIndustrial icont Breakdown

Whatever your business; from a freelance graphic designer with a computer set up worth thousands of dollars, to a manufacturer with millions of dollars worth of equipment, if your equipment breaks down your business may too.  When your computers, machines and other equipment work properly, your business runs smoothly. But when a vital piece of equipment breaks down, you’re stuck while the equipment or wiring is repaired or replaced. During that time, you may have to pay for servicing and lose revenue while your business cannot operate. The costs can be huge. Equipment Breakdown Insurance is a necessity in this technological age. You can cover your equipment repair costs and reimburse yourself for lost income. Coverage typically covers a number of equipment related issues. Some examples are:

  • Payment to fix or replace failed equipment
  • Reimbursement for labor and time costs to fix or replace failed equipment
  • Replace lost business income due to equipment failure that leads to business stoppage
  • Cover costs to minimize losses or to get equipment working and productive faster
  • Reimburse for loss of materials or goods, such as spoiled food due to equipment shut down

Equipment Breakdown Coverage includes many options. Let the experienced professionals at Cobb-Hall Insurance provide solutions designed specifically for your needs.

Includes copyright material used with permission: Trusted Choice/Independent Insurance Agents

Coinsurance – What you don’t know CAN hurt you

Coinsurance Explained -What you need to know   

Most Business Insurance policies include a coinsurance clause for building and business personal Young man jumpingproperty coverage. Coinsurance creates an agreement between the policy owner and insurance company on the value of the insured property and the amount of insurance purchased.

The benefit is that coinsurance allows for lower insurance policy costs. But what you need to know is that IF the insurance purchased is less than the agreed percentage, the insured will be required to pay a portion of any losses.

Here is a simplified example: If a business is valued at $100,000 and there is an 80% coinsurance clause, the insured is required to purchase at least $80,000 of insurance.  If instead, the insured purchased $40,000, (half of what should have been purchased), the company will only pay half on losses.

Awareness of the percentage of your coinsurance clause, along with knowing the value of your building and property will provide the information needed to make the best decision to fit your needs.

Let the experienced professionals at Cobb-Hall eliminate confusion and provide solutions designed specifically for your needs.