Direct Primary, Direct Excess, and Legal Liability – These all have to do with your customers’ vehicles while in your care, custody and control.  Before you get bored with these terms, read below to find out why you NEED to know what they mean.

1. Legal Liability – this is what you will find on most of the cheapest garage packages available.  If a customer’s vehicle is damaged, the customer must prove that you are legally liable (negligent)  in order to recover damages from your insurance.  This can not only create a loss of goodwill if coverage is denied, but it also forces the customer to jump through hoops to prove your negligence.  This doesn’t end well for your relationship with the customer.
2. Direct Excess – this is better than Legal Liability because it doesn’t require your customer to prove your negligence.  However, this coverage only applies after the client files a claim with his own personal auto insurance policy.  If the client’s personal auto insurance denies the claim or the client’s policy limit doesn’t cover all of the damages, then the garagekeepers insurance would apply.  Again, this doesn’t require the customer to prove you are negligent, but it does force the client to file a claim with their own personal auto insurance – another hoop for the client to jump through.
3. Direct Primary – This is the best coverage available because it takes the burden off of the customer and in the event that a customer’s vehicle is damaged while in your care, custody, and control, you will keep a strong customer relationship.  Coverage is provided by the garagekeepers policy without the need to prove negligence and legal liability.  In addition, the client doesn’t need to file a claim on his personal insurance.  Essentially, you, as the garage owner, are taking responsibility for the customers vehicle while it’s in your care.  This is also the assumption that most customers have when they drop their vehicle off for service.  Your garagekeepers coverage pays for the loss from the first dollar without regard to or contribution by the vehicle owner.

Of these three coverages, Direct Primary is the most expensive, but don’t let that stop you from asking for it.  The difference in price can be less than $100/month to go from basic Legal Liability to Direct Primary coverage.   Keeping your customers happy keeps them coming back, and keeps them referring new customers your way.

For more information on Garagekeepers insurance, please call Jayne Engle Allen at Engle & Associates Insurance Brokers – 805-544-8929 or toll free at 877-544-8929. You can also visit our website for more information and a free Automotive Service Insurance Quote.

Workplace discrimination claims are at an all time high. In today’s sour economy, small business owners need to control expenses, but Employment Practices Liability Insurance is not the place to cut corners.
• The US Equal Employment Opportunity Commission (EEOC) reported that discrimination claims soared 15% in 2008 and workers were awarded $376 Million.
• 6 out of 10 employers have faced employee lawsuits within the last five years – That’s 60%!
• Businesses are more likely to suffer a financial loss from an employment practices related claim than from a fire.

Employment Practices Liability Insurance (EPLI) coverage provides protection for a company’s liability resulting from sexual harassment, wrongful termination, and discrimination against employees. In addition, EPLI is not just for employees, it provides protection against discrimination and harassment claims made by former employees, potential employees, customers, and guests. These claims scenarios are specifically excluded in a general liability policy, which is why all businesses with employees and/or customers should carry EPLI coverage.

Defense costs – most small businesses do not have the financial resources to retain legal counsel, let alone pay for a costly defense. Average defense cost for an employment practices lawsuit is $45,000. The average settlement is $40,000. Do you have $85,000 cash on hand right now?
Okay, so how much? – EPLI policies can be as low as $100/month for small businesses with decent HR practices. If your HR practices aren’t what they should be, your EPLI insurance company, can make recommendations to help you keep your insurance costs down.

The bottom line: If you’re reading this, I can almost guarantee that you know someone who has had an employment practices related incident with their business. In fact, you may have experienced an employment practices situation first hand – if you have, you’re in the majority. If you haven’t, avoid the mindset of “it will never happen to me.”

Coverages available or included in EPLI policies:
• Sexual harassment
• Wrongful Termination
• Discrimination
• Statute Violation
• Negligent Hiring
• Negligent Supervision • Negligent Promotion
• Negligent Retention
• Disabilities
• Breach of Contract
• Loss of Consortium
• Emotional Distress • Invasion of Privacy
• Wage and Hour Disputes
• Drug Testing
• Mental Anguish
• Libel
• Slander

For more information, please contact Jayne Engle-Allen, CLCS, at Engle & Associates Insurance Brokers 805-544-8929 or jayne@engleinsurance.com or visit our website for a CA Employment Practices Liability Insurance Quote.

So, what I want to know, is when did cheapest, become the best? When did insurance become a commodity? It has always been something that is price sensitive, however it really all started with a certain Gecko, and grew from there… I’m a bit of a media junkie, and I can’t watch television, listen to the radio, or surf the web for more than 5 minutes without hearing or seeing an ad for what I like to refer to as “the big spenders.” They’re all telling me how much money they save their customers.

In 2007, These Big Spenders: Geico, Progressive, Allstate, and State Farm; collectively spent $1.5 Billion on advertising. Yes, that’s Billion, with a “B.” They spent $1.5 Billion to convince all of us that we should buy our insurance from the lowest bidder. In an era of Wal-Mart, Costco, and other discount and wholesale stores, we have all been brainwashed to believe that if we don’t get the cheapest price on something, that we’ve somehow shorted ourselves. Look at Flo in the progressive commercial – she’s selling insurance in a virtual big box store! I’m not saying that you shouldn’t shop around, but be sure you’re comparing apples to apples when it comes to your coverage. It doesn’t save you money if you’re paying a cheaper price, but sacrificing valuable coverage.

I see it time and time again. A potential client comes to me with their current insurance policy in hand. We review the coverage and undoubtedly find gaps, HUGE gaps in coverage. Just last week I was working on a homeowner’s policy where the client’s house was underinsured by $123,000. When I completed my comprehensive coverage analysis, we also found that she would greatly benefit from earthquake coverage. So when I ran the numbers, my quote turned out to be $142.00 more per year. For $142.00 more per year, she gets $123,000 more in coverage AND earthquake coverage. Here’s the kicker, we ended up increasing her deductible to offset this premium difference, and guess what… our annual premium was within $10.00 of their old policy, with MUCH better coverage.

With that said, I want to go back to my first question. If you knew, for a fact, that your home or business was going to burn down tomorrow, would you buy your policy from the lowest bidder? Or would you consult an insurance expert, to be sure you have the proper protection? My point is, most people have the attitude that ‘It’s never going to happen to me.’ Two years ago, one of my long time client’s home burned to the ground. He had plugged in his laptop to charge before he went to work. The laptop’s battery pack malfunctioned, overheated, and caused a fire. When he returned home, his home was nothing more than ashes and a few pieces of charred lumber. He told me, “I never thought I would actually use this insurance.” He received his check quickly, and without hassle, because over the years, we had recommended coverage increases, and policy changes to be sure he was adequately protected.

That’s exactly what an independent insurance professional does for you. It’s not about selling policies, it’s about building relationships, and providing ongoing protection counseling, not just at the time of sale. There are many of us out there who spend our days (and nights, and weekends) thinking about, reading about, and talking about insurance. Independent insurance professionals aren’t a ‘middle man,’ as some of the ‘big box’ insurance companies would want you to believe. We are educated, licensed, and experienced professionals who, instead of representing the interests of one, single insurance company, we represent the interests of our clients. The companies we represent, rarely advertise. Instead of advertising to the masses, our preferred companies provide us, the independent agents and brokers, with their premier insurance products. This allows us to work with our clients to create a custom insurance package; finding the best coverage, at the best price, for their unique situation. Not everyone fits into a cookie cutter policy.

If you would like a free protection review, please feel free to call my office toll free at 877-364-5380. Or send an email to Protection@EngleInsurance.com