Author: AHI Group

Do consultants need professional liability insurance?

Posted on by AHI Group

Consultants are specially trained or experienced individuals who are paid in exchange for providing professional expertise, usually to do with a specific project, industry, or topic. They often have strong relationships with their clients and successful consultants do well to invest in marketing and networking. What kind of insurance do they need, though? Is professional liability insurance a must for contractors, especially as most of their business revolves around giving advice?

The short answer here is: yes, consultants do need professional liability insurance (also called errors and omissions, or E&O for short.) Due to the potentially sensitive nature of the advice they offer, consultants may be more at-risk than other industries and professionals. Here’s how professional liability insurance (among other coverages!) can help protect you as a consultant.

Professional liability insurance for consultants

In a nutshell, professional liability insurance in the context of insuring consultants protects these professional individuals if they should ever make a mistake, forget something, or fail to offer their promised service to a client. Since the failure on the part of the consultant could cost the client a huge amount, it could result in a lawsuit. In the event of an error or omission, professional liability insurance would provide the consultant with the protection they need.

What kind of mistakes or claims made by a consultant would be covered by E&O?

Here’s a list of some of the kinds of mistakes or errors that professional liability insurance can cover:

Professional Negligence

A mistake or oversight in the consultant’s work, such as not accounting for a specific deadline or budget, could lead to significant financial loss for a client. The client could sue, leaving the consultant faced with hefty legal defence costs.

Legal Defense Costs

Any lawsuit pertaining to an E&O event may be covered by professional liability insurance, including the following expenses: attorney fees, court costs, and settlement expenses.

Misrepresentation

A consultant could be faced with a claim following an incident where the consultant provided misleading information or failed to provide important information to a client.

Breach of Contract

Professional liability insurance can cover claims that arise from a consultant not fulfilling contractual obligations as agreed upon in their consultant-client contract.

Failure to Deliver Services

If the consultant fails to deliver services as promised/either fails to provide services altogether or fails to meet expectations, they may be faced with serious trouble. Professional liability insurance could help in an instance like this.

Is professional liability insurance required for consultants?

Consultants certainly should have E&O insurance, given the extent of what could go wrong, but is it actually required? In some cases, certain insurance coverages are required by law. It depends on the state and industry, of course, but businesses can get in serious trouble if they’re found to be underinsured.

Professional liability insurance is not universally required for consultants, but technically its necessity depends on the industry, client contracts (some contracts will include conditions that the consultant carries their own insurance coverage,) and legal regulations in the consultant’s operating region.

Many clients, particularly larger corporations and government agencies mandate that consultants carry professional liability insurance as part of their contractual agreements. This requirement serves as a safeguard against potential financial losses resulting from mistakes, negligence, or inadequate work performed by the consultant.

While smaller clients might not always require professional liability insurance, having this coverage can significantly enhance a consultant’s credibility and professionalism. Insurance provides a safety net that protects consultants from the financial burdens of legal defense costs, settlements, and potential damages if a client files a lawsuit. In a field where reputation and trust are of the utmost importance, carrying professional liability insurance not only mitigates risk but also shows a commitment to a higher standard of service.

Is professional liability insurance required for consultants?

The cost of professional liability insurance for consultants varies widely based on several factors, including the consultant’s industry, the size and scope of their business, the level of risk associated with their services, and the coverage limits of the policy. On average, consultants can expect to pay between $500 and $3,000 annually for a basic professional liability insurance policy. For higher-risk industries or those requiring higher coverage limits, the cost can be significantly higher.

Like any commercial insurance policy, factors of your business will impact your rates. For example, a consultant in a field which much higher perceived risks, like financial advisory, could see higher premiums than those in less risky fields. Insurance premiums may also be impacted by geographical location (lawsuits being more expensive in some areas) and, of course, policies with higher coverage limits or add-ons will cost more.

To obtain the best rates, we recommend calling our agents here at AHI and discussing your needs today! We’ll go over your existing coverage and how to find you a great rate. After all, you give such great advice–why shouldn’t you get it back? Our tips and suggestions will guide you towards the ultimate policy that will grant you both peace-of-mind and great savings.

Kansas penalties for driving without car insurance

Posted on by AHI Group

If you didn’t already know, Kansas is one of 48 states that requires auto insurance by law. Driving without auto insurance–even home from the dealership after first buying a car–is illegal.

If you’re tempted to drive without car insurance to skip out on the premiums and save yourself a little cash, or simply for the added convenience, think twice. Here are the penalties in Kansas if you get caught driving without auto insurance.

What auto insurance is required in Kansas?

When you purchase car insurance in Kansas, you’re actually buying six individual coverages. These are each designed to protect you against a different kind of loss.

Here are the six different types:

Bodily Injury Liability

This coverage helps pay for medical bills incurred by someone who you injured in an automobile accident. It includes rehabilitation, funeral costs, and other expenses. It also includes settlements of lawsuits/your legal expenses.

Property Damage Liability

This coverage helps pay for repair costs done to property you damaged in an automobile accident. It also includes settlements of lawsuits/your legal expenses.

Personal Injury Protection (PIP)

Also called no-fault, PIP pays for any rehabilitation, medical expenses, funeral expenses, lost wages, or in-home assistance that is needed for you or any passengers of yours who were injured or killed in a car accident. This applies regardless of fault, and passengers who own their own car may need to go through their insurance first before another person’s policy.

Uninsured/Underinsured Motorist Protection

This coverage helps pay for you or your passengers’ medical, rehab, or funeral bills in the event of an accident involving an underinsured or uninsured driver. It also covers hit-and-runs and can cover you and your family if you’re hit while walking or riding a bike.

Collision Coverage

Optional collision insurance covers your vehicle for collision-related damages, including collisions with stationary objects, like curbs and street posts.

Comprehensive Coverage

Optional comprehensive insurance covers your vehicle against non-collision damages, so fire, theft, vandalism, and similar may all be covered under your policy.

What are the penalties for driving without car insurance in Kansas?

If you are caught driving without the minimum level of coverage–(so the above coverages minus collision and comprehensive)–you could be fined. In fact, driving without car insurance in Kansas may constitute as a misdemeanor. You could have your license and registration suspended, or you could even face imprisonment. Here are the penalties you could face for driving without car insurance in Kansas:

  • For a first offense, you could see a fine of $300-$1,000. You may face imprisonment of no more than six months, or a combination of a fine and imprisonment. Your license and registration will also be suspended until proof of insurance has been filed and you’ve paid the $100 fee to reinstate your documents.
  • For a second offense, you could see a fine of $800-$2,500. You may face imprisonment of 90 days mandatory. Your license and registration will also be suspended until proof of insurance has been filed and you’ve paid the $100 fee to reinstate your documents.
  • For a third offense or habitual violation, you could see a fine of $1,500-$2,500. You may face imprisonment of 90 days mandatory. Your license and registration will also be suspended for three years, and you’ll have to pay a $100 fee or $300 fee if your violation to reinstate your documents if your violation is within a year of the previous one.

What if I have insurance but don’t have it on me?

If you are caught unable to produce your proof of insurance, usually a physical document/i.e., pink slip, you may be considered guilty of an “administrative violation.” This is similar to a seat-belt ticket. You could have this citation dismissed if you can prove to a court of law within ten days that you have proof of valid insurance.

Driving without car insurance (not being insured at all) and being caught not having valid proof of insurance on your person when being pulled over are two different crimes. Just make sure you’re able to show proof of your insurance later on if you’re stuck in a sticky situation at first–otherwise you may be faced with similar consequences as you would if you were caught uninsured.

How does a lapse in insurance impact my future rates?

A lapse in insurance or “car insurance lapse” is any amount of time when your policy becomes inactive. A condition such as this can result in higher premiums and of course, fines if your policy is inactive during a period where you are still driving.

A lapse can also signal to a future insurer (or current insurer if you go back with who you were insured with previously) that you are a high-risk driver who is likelier to get into an accident than someone who remains consistently insured. Auto insurance companies will generally readjust your rates to reflect this higher-risk, meaning you could end up paying two or three times as much. Longer lapses may mean higher insurance rates.

And if you get into an accident during a lapse? You’ll be solely responsible for any of the damages, to yourself, your vehicle, and possibly even for the other driver/their injuries if you were at-fault. This can be massively expensive, with a price tag of tens of thousands of dollars. You’re probably better off paying your premiums, which overall would be much less than the larger cost of a loss. Plus, paying your premiums consistently won’t saddle you with a high-risk label for the next 3-6 years.

Need auto insurance, fast? Give us a call at AHI Group. We’d be happy to help you out and get you what you need, when you need it.

How to file an insurance claim after a storm loss

Posted on by AHI Group

Kansas’s 2024 tornado season is the most active on record. As many in the Midwest are still recovering from the start of the season, we turn to insurance to recoup our losses. In times like these, it’s good to know we’re covered for the unexpected!

If you’ve never filed an insurance claim before, you may be wondering just how to do so. Remember that you can always contact an AHI representative for support; otherwise, check out our step-by-step guide below for more information.

Am I covered for storms and tornado damage?

Most standard home insurance policies will cover storms and tornado damage, however, you likely won’t be able to acquire protection if you’re trying to buy insurance during an active storm watch. Our advice? Get insurance as soon as you close on a home so you won’t run into issues where severe storms are in the forecast and you’re without insurance.

May 2024 had the fourth-highest number of tornadoes on record in the Midwest, with 476 tornadoes recovered by the National Weather Service’s Storm Prediction Center. April and May combined had the second most tornadoes on record, just behind 2011 where an EF-5 tornado hit Joplin, causing $2.8 billion in damages and claiming over 150 lives.

As the issue worsens, it’s more important than ever to have protection. Contact an insurance agent at AHI Group to ensure you have the coverage you need against storms and tornadoes.

What happens if you’ve been impacted by severe weather?

With severe weather, you never know what could happen–your home could suffer a couple of broken windows, or it could be destroyed entirely. If you have home insurance, your coverage will help pay for the losses (minus your deductible), but you’d need to file a claim, which tends to come with its fair bit of work. Not to worry! We’re here to let you know what to do.

We never expect it’ll happen to us until it does. Part of being a good homeowner is being prepared with the right insurance, plus equipping yourself with the knowledge of what to do after the fact to recoup your losses. Here is our step-by-step process for filing a claim for storm losses:

Step 1: Get in touch with your insurance provider

Once you’re aware of storm damage, it’s time to get in touch with your insurance provider. You can also reach out to your agent for guidance. Most insurance providers have a 24/7 claims hotline you can contact, but keep in mind that during episodes of severe weather, plenty of homes will be calling in, so they’ll usually answer on a first-come, first-served basis.

After you’ve reached out to your provider they will schedule an adjuster to come out to the scene to investigate and inspect the scale of damages done. During this time, they will determine if you have an eligible claim. You may also have a claims representative assigned to your case, who you can contact at any point for information on your claim. This isn’t always the case with these widespread incidents.

Step 2: Let your provider know of any emergency repairs that are needed

If your home requires repairs immediately that may render your property unlivable or are considered an “emergency,” you may need to let your insurance provider know. They will be able to get you in touch with a company that can complete these repairs right away to prevent the risk of further damage.

If your home cannot be re-entered and you are forced to find temporary accommodations elsewhere, keep all receipts on-hand for any additional, much-needed living expenses. This includes takeout, hotel bills, receipts for new clothes, childcare, etc. You may be able to get these reimbursed later through a portion of your home insurance known as additional living expenses.

Step 3: Discuss damages with your adjuster

Once the process of “review” has been complete and the company’s adjuster has checked out the property and done a thorough assessment, they’ll go over the damages and give you an estimate for what it will take to repair your home. They may also provide this assessment to whoever is being hired to do the repairs to your home (usually a preferred contractor).

Step 4: Get a contractor locked-in to do the repairs

Many insurance companies have preferred contractors that they will want to do the repairs to your home. This is usually because these companies are trusted or have completed work for the insurer before. You are allowed to vouch for a specific contractor if you want. If this is the route you wish to take, ensure that the contractor is licensed and has the necessary policies in place to perform your repairs.

Note that an insurance company’s preferred contractor may also have a warranty on work through both the contractor and the insurance company, which can give you a little more peace-of-mind.

Step 5: Confirm, sign, and begin repairs

Once you receive your estimate, make sure to get it reviewed and confirmed by a professional. This is usually whoever was hired on to do the repairs or another third-party. You should also ensure any changes to your home are considered and agreed in your contract. Once everything looks good, you can sign and repairs can begin.

You have between 12 and 24 months to file a claim after a storm loss, but it’s advised you get in as soon as possible. If it’s a larger storm or event, chances are that there’s a huge backlog of homeowners awaiting their own claims, too. The sooner you’re in, the sooner your repairs get done. Note you’ll be responsible for your deductible as well, which you’ll need to pay towards the repairs before your insurance provider pays the remaining amount!

Questions? Give us a call here at AHI Group. We’d be happy to go over a recent claim or discuss your insurance coverage in the midst of this severe storm season.

What are some of the most common insurance claims that contractors make?

Posted on by AHI Group

Did you know that 1 in 5 deaths among workers in the U.S. occur in the construction industry? This is just one of many reasons for construction businesses to have the necessary insurance to protect themselves against workplace injuries, among other hazards.

Unfortunately, the construction business is risky–but at the same time, it’s integral to the U.S. economy. From on-the-job injuries to severe weather, vandalism and break-ins, traffic collisions, and more, there are so many possible ways to experience losses as a contractor. With the right insurance, you can be protected against almost anything that can happen. It helps to know what can happen. Here are some of the most common insurance claims that contractors make.

Are contractors required to carry insurance?

Before we get into the types of claims that contractors may face, let’s take a glance at what insurance is required of contractors.

Contractors and subcontractors are sometimes required to carry contractor insurance in the U.S. Specific contractors that may specialize in certain fields, like plumbers or electricians, may benefit from having special artisan contractor insurance. That being said, insurance requirements can vary depending on the state, line of business, etc. Usually, it’s a general rule of thumb that any business with employees acquires workers’ compensation insurance.

General liability and errors and omissions insurance are also highly recommended. The former protects your business against claims of bodily injury and property damage and the latter protects your business against claims of negligence, misinformation, error, etc. Both are beneficial layers of protection to support your business in the face of costly lawsuits.

What are the five most common contractor insurance claims?

Construction can be high-risk, which means it’s ripe with opportunities for damage and losses. Here are five of the most common contractor insurance claims:

Personal injuries and property damages

Did you know that 10% of all liability claims arise from slips and falls? Accidents still happen, no matter the precautions we take to avoid them. With construction, there can be a lot of hazards–falling debris, cracks in the ground, machinery and equipment left out, etc., that passerby could trip or injure themselves on. If a non-employee injures themselves or their property is damaged by your construction business’s operations, they could sue. That lawsuit could cost your business.

For example, say your construction business was performing renovations when a heavy piece of equipment gets dropped accidentally. It significantly damages a homeowner’s living room floor and nearby wall, cracking their hardwood floor and leaving a large hole in the wall. The damages are estimated at $8,500. The total claim amount for the repairs, plus any additional expenses, amounts out to $9,500–which would be covered by a general liability insurance policy.

Workers’ compensation injury

The construction industry is huge for workplace injuries, ranging from minor to severe. It could be due to a fall, dropping heavy equipment, misuse of machinery, etc. If a workplace mishap sends a worker to the doctor or, worse, the hospital, they’ll be out of commission for some time plus may rack up some serious medical bills. Workers’ compensation insurance can be used in this instance to cover both lost wages, medical bills, rehabilitation or ongoing care, and in a worst case scenario, funeral expenses and death benefits for your employee’s surviving family.

Damage to ongoing builds

Construction involves a lot of works-in-progress, which tend to be extremely vulnerable to damages during the period where they are being worked on. There’s a lot to lose on an ongoing project–materials, supplies, equipment, tools, and all the work your company has invested time and money in. One of the most common contractor insurance claims comes for projects in progress, with wildfires being among the most common causes of damage.

Stolen equipment

A probably unsurprising cause of loss for construction companies and contractors is equipment stolen off of worksites. Your contracting equipment is crucial to helping your business run. It’s also expensive–and appealing to thieves. If your tools go missing from a worksite or warehouse, or are lifted out of your company trucks, it might be time to file a tools and equipment insurance claim.

Traffic accidents

Contractors and construction companies may make use of company vans to tote around workers, equipment, materials, supplies, and more. No vehicle is immune to traffic collisions. Plus, with as much time as these vehicles spend on the roads going between worksites, it only makes sense that commercial auto claims would be popular in this industry. Keep in mind that your personal auto policy–or your employees’ personal auto policies–won’t cover your company vans or trucks if they’re damaged in a crash. You’ll need to have a commercial auto policy in your toolbox.

Do I have enough coverage?

Having enough coverage to protect your business against all that go wrong is crucial. If you aren’t sure if what you have is enough, AHI has got your back. Much of what we do is advise you in the way of coverage; we suggest where you might need to fill in your gaps by purchasing new coverage, plus we can identify where you can “trim the fat” a little. We can suggest modifications, limit increases, and more. Give us a call to find a great deal on your contractor insurance.

Protecting your home in the face of severe weather

Posted on by AHI Group

Extreme heat in the Southwest is causing powerful storms in the U.S. this week. Winds up to 80mph are expected, reaching across western Oklahoma, eastern New Mexico, and western Texas. The truth is the summer, despite its warm weather and fun activities, brings extreme storms that can cause serious property damage–and we’ve seen more of these damaging events in recent years than ever before.

Did you know that 2023 marked the U.S.’s costliest year on record for severe storms, surpassing $50 billion in insured losses, according to a study released by the Insurance Information Institute? This issue is impacting everyone, and it’s even causing your home insurance rates to increase.

Regardless of the type of weather your area might be facing, heed our advice for protecting your home (and other physical assets, like your car!) against storm season. Being proactive could even help you save money on your auto and home insurance.

How is severe weather affecting my insurance rates?

As climate change intensifies, the frequency and severity of natural disasters such as hurricanes, wildfires, floods, and tornadoes have increased.

Insurance providers are facing more claims as well as higher claim costs as a result of the extensive damage being done to property, including homes and vehicles. To ensure they can continue to pay claims, insurance companies are raising premiums across the board. Homeowners in high-risk areas are particularly affected, often experiencing substantial hikes in their insurance costs or, in some cases, finding it challenging to obtain coverage at all.

The unpredictability of severe weather events complicates risk assessment for insurers. This uncertainty leads to a more conservative approach in pricing policies, contributing to higher premiums nationwide. Insurers also need to factor in the cost of reinsurance—insurance for insurers—which, just like ordinary property and casualty insurance, has become more expensive due to the increased likelihood (and severity) of catastrophic events.

What can I do?

Climate change is such a complicated issue. While you can do your part in being a good eco-warrior, severe weather won’t hold off just because you use bamboo cutlery. To protect your property, you need to be proactive–and that starts by being a good homeowner.

Before the weather hits

Even before a storm is in the forecast, it’s good to take proactive measures and fortify your home’s defence. Come spring and summer, it’s likelier that you’ll start to see high winds, heavy rain, and hail–all of which can be seriously detrimental to your property.

Always ensure your home is well-maintained. Clean out eaves troughs and downspouts regularly, and ensure that your downspouts are always extending away from your home at least six feet. Alternatively, you can set up a rain barrel to collect water runoff from your roof.

Notice any cracks in your walkways, patios, or driveways? Seal those up! It’s a good time to also look for any leaks, seepage, or cracks in the foundation of your home, crawl space, or basement. Get these repaired before the weather hits, or severe weather could just as well worsen the issues you’re already seeing and seriously accumulate the cost of repairs.

If you are scheduled for a roof replacement, consider materials that may help to reduce damage to your home. Depending on the kind of weather you experience, you might consider a metal, asphalt shingle, clay, or even a tile roof! Remember as well: the age of your roof can impact your roof’s durability, so if your roof is getting too old then it might be time to consider a new one.

When the storm is coming

Severe weather in the forecast? Doing some last-minute preparations for your home can be the difference between small repairs and major restorations–sometimes even thousands of dollars. We recommend subscribing to your local weather alerts so that you’re aware when a storm is about to hit.

If hail or high winds are in the forecast, park your car somewhere indoors or take it to a public underground parking lot where it will be safe from the impact of flying debris or ice. Be careful if you do decide to take your vehicle to an underground parking lot, as odds are, many other drivers will have the same idea and the roads might be treacherous! Also, if the hail has already started and parking your car indoors is not an option, cover it with a thick blanket to reduce the impact.

Make sure you’ve cleared all loose furniture from outside your home or brought it inside. High winds can make something as insignificant as a lawn chair a very dangerous projectile.

After the storm

After the storm, if your home has sustained damage, it may be time to consider making a claim. If the damages are small enough that you can do the repairs yourself, i.e.: a broken window, a couple of dents, or some landscaping got thrown around, you may want to avoid claiming to reduce the chances of tarnishing your current insurance record. The more claims you make, the more your insurance will increase as you’re considered a slightly higher risk.

If your home has been severely damaged, don’t re-enter until it’s safe to do so. Falling debris or roofing materials could be hazardous to you and your family members. Only re-enter when you’re allowed to. Take as many photos and videos as you can during this time, as evidence of your loss can help expedite your claim. And, finally, work with an agent! An AHI agent can guide you through this process. As stressful as making an insurance claim is, it’s that much easier with an expert in your corner.

Reinsurance rising: What’s happening to your home insurance rates

Posted on by AHI Group

On January 1, 2024, U.S. property catastrophe reinsurance rates rose by as much as 50%. To the average onlooker, this may seem like unimportant news; in the grand scheme of this, it’s just another of many figures going up. However, the status of reinsurance, and its price points, have a direct influence on the rates you’ll pay for your property insurance. Home insurance is just one example of a product that’s being impacted by the jump in reinsurance costs.

How exactly does reinsurance costs rising impact your home insurance? Let’s dig in.

What is reinsurance?

Suppose insurance is an agreement between the insured and the insurer. In that case, reinsurance is an agreement between an insurance company and another insurance company, wherein the latter agrees to cover the former if the former is obligated to cover a catastrophic loss beyond what their premium pool can pay out for. Reinsurers, aka insurance companies for insurance companies, are companies that sell insurance to your typical P&C or commercial insurance companies.

Insurance companies manage their own risk by buying insurance. If an area an insurance company sells home insurance to experiences a massive wildfire, they may find that their premium pool is insufficient in managing all the claim payouts. In this instance, they’ll turn to their reinsurance provider, whose contract states they’re obligated to cover the remaining losses. Having reinsurance also means that insurance companies need to have less capital on hand, which means they don’t have to charge as high of premiums and can invest excess capital elsewhere. Reinsurance also ensures insurance companies can take on more policies and business, as their risk is less overall.

How does reinsurance impact my insurance?

But, like any business in the insurance industry, reinsurance is impacted by things like climate change and inflation. The more losses there are, the more payouts there are. The more payouts there are, the more reinsurance providers are having to dig into their own pool of funds, thereby requiring more capital. They raise their rates, so insurance companies raise the rates for their insured to offset the increased expense.

The result? Higher insurance premiums. Of course, this is nuanced and the impact depends on where you live. Some areas are more exposed to losses and natural disasters than others. Florida’s reinsurance dependency has increased over the last couple of years due to frequent and severe weather-related losses, inflation, and other effects. This has caused some insurance providers to altogether exit the state, and new, high-risk providers have entered.

What are the benefits of reinsurance for policyholders?

Despite the rate increases, reinsurance isn’t a bad thing for policyholders. Quite the opposite, really. For one, it allows insurance companies to offer business in areas that they might not ordinarily consider due to the decreased risk. You may have found your preferred insurance company due to this reason.

Reinsurance also guarantees you receive your true and fair settlement following a loss, even if your insurance provider’s funds run dry. This risk is sometimes higher for smaller insurance companies. Reinsurance comes in to serve as an additional layer of protection for both yourself and your insurer. Your insurer receives the assistance it needs, and you get the compensation you’re entitled to.

Reinsurance also keeps rates down, in a sense. Because the risk is more spread between your insurance company and the reinsurer, your insurance company needs to keep less capital “on-hand” and therefore doesn’t need to charge more in premiums.

How do we find affordable home insurance amid rate increases?

Assessing your insurance needs during a hard market, like the one the insurance industry is currently faced with, is no easy task. At AHI, our agents are here to help you through these difficult times. When it seems like the cost of everything is on an endless rise, it can be overwhelming to find the right starting point! While raised rates aren’t ideal, we can still help you find a good deal.

Here’s what we might suggest:

Review your insurance needs with an agent

Your insurance needs will change year-over-year. Schedule a review with an agent and go over your insurance needs to see where adjustments may need to be made. Who knows? An agent may even be able to identify eligible discounts or highlight potential coverage gaps and vulnerabilities. They can even help you “trim the fat,” so to speak, and remove excess, unnecessary coverage.

Raise your deductible

Your deductible is your percentage of the risk your insurance company takes on, so you’ll be responsible for it when the time comes to make a claim. Roof damage worth $3,500? If your deductible is $1,000, you’ll be required to pay $1,000 towards the repairs before your insurer covers the remaining $2,500. Raising your deductible can qualify you for lower insurance premiums, but talk with an agent before choosing this option. This isn’t ideal for those who might struggle to pay the new deductible amount.

Shop around with an agent

Maybe your current insurer is no longer the best option for you. Ask an agent to help you shop around and find a better rate. You may be able to find a provider who better suits your needs, or one who offers a deal that you qualify for that overall gives you a better rate than your previous provider.

Ask about discounts

Some insurance companies will discount your home insurance if you bundle it with your auto insurance. Many will discount your auto insurance policy if you have multiple vehicles insured through the same policy. There’s plenty of other discounts out there, too. Claims-free, retiree, green home, and more. Ask your agent what discounts your insurer offers and how to qualify!

An agent is your best resource in hard times. Give us a call at 913-839-1478 or request a quote.

Do subcontractors need their own insurance?

Posted on by AHI Group

Did you know that there were 3,776,498 construction businesses in the U.S. as of 2023? This number wouldn’t be at all feasible without the support of the subcontractors who make it all happen.

Subcontractors help carry out difficult, sometimes very specific construction work. They may be exposed to a variety of liabilities as a result of the kind of work they do. Due to this, subcontractors, like general contractors, need insurance. The contractor insurance that your employer has may not include subcontractors in its terms; if this is the case, you, as the subcontractor, may need to buy your own insurance. An insurance policy can help protect you from unexpected lawsuit costs, workplace accidents, and even accidental property damage.

Can subcontractors be covered under their general contractor’s insurance policy?

Theoretically, if a general contractor’s insurance policy included subcontractors, then yes. Generally speaking, however, subcontractors are not automatically covered under a general contractor’s insurance policy, and most standard policies for general contractors won’t include subcontractors. However, there are nuances and specific conditions where some level of coverage may be extended.

It is recommended that subcontractors acquire their own insurance irrespective of the kind of insurance coverage their employer has, as oftentimes the extension of a general contractor’s insurance policy can be limited. An additional insured endorsement can be added to a general contractor’s policy, extending some of the policy’s protections to the subcontractor. This generally includes liability coverage, commercial auto, worker’s compensation, and so on.

Again, this can be limited. This endorsement generally only covers the subcontractor for claims arising directly from the subcontractor’s work on the general contractor’s project and typically does not cover the subcontractor’s independent activities or other projects.

What types of insurance do subcontractors need?

The specific types of insurance needed for subcontractors can vary based on the nature of the work, the industry, and contractual obligations. Here are some of the most common types of insurance that subcontractors should consider:

General liability insurance

General liability insurance is fundamental for subcontractors. It covers third-party claims of bodily injury, property damage, and personal injury. For example, if a subcontractor accidentally damages a client’s property or if someone is injured on the job site due to the subcontractor’s work, this insurance provides protection.

Workers’ compensation insurance

Workers’ compensation insurance is typically required by law if a subcontractor has employees. It covers medical expenses and lost wages for employees who are injured or become ill due to their work. Even if not legally required, having workers’ compensation insurance can protect a subcontractor from significant financial liabilities.

Commercial auto insurance

For subcontractors who use vehicles for their business, commercial auto insurance is necessary. It covers vehicles owned or leased by the business for damages resulting from accidents, theft, or vandalism. This insurance is crucial for transporting tools, equipment, and workers to job sites.

Equipment and tools insurance

Subcontractors rely heavily on their tools and equipment. Equipment and tools insurance, sometimes called inland marine insurance, protects against the loss, theft, or damage of these assets while in transit or at a job site. This coverage ensures that subcontractors can quickly replace essential tools and equipment if needed.

Bond insurance

While not technically insurance, bonding is often required for subcontractors, especially those working on public projects or large contracts. Performance bonds and payment bonds guarantee that the subcontractor will complete the project according to the contract terms and pay their suppliers and workers. Bonds provide assurance to clients that the subcontractor is financially stable and reliable.

The benefits of insurance for client-business relationships

Having contractor insurance, or any type of commercial insurance as a business, is crucial to fostering strong client-business relationships. For subcontractors, having comprehensive insurance coverage demonstrates professionalism, reliability, and a commitment to risk management. Clients feel more secure and confident working with subcontractors who are well-insured, knowing that potential risks and liabilities are adequately covered. This assurance can lead to increased trust and credibility, enhancing the subcontractor’s reputation in the industry.

Insurance can facilitate smoother project execution, as it ensures that any unexpected incidents are promptly addressed without financial strain on either party. Being properly insured not only protects the subcontractor’s business but also strengthens the overall client-business relationship, leading to more successful collaborations and long-term partnerships.

Get insured with AHI Group

Have questions about your insurance coverage? Interested in getting protected as a subcontractor? AHI Group has many options for contractors, from more general options to specialized artisan contractor insurance. Give us a call at 913-839-1478 or request a quote today.

Does home insurance cover roof replacement?

Posted on by AHI Group

A roof is one of the most critical components of your home, protecting everything beneath it from the elements. Its importance cannot be overstated, yet many homeowners are often uncertain about their insurance coverage concerning roof replacement.

Understanding when your home insurance will cover roof replacement is essential for maintaining peace of mind, plus knowing what you’re covered for is a boon that cannot be understated.

When does insurance cover roof replacement?

Home insurance can be a lifesaver when it comes to unexpected damage. However, coverage for roof replacement depends on various factors, including the cause of the damage and the specifics of your policy. See, home insurance is inherently meant for one (or two, technically) kind(s) of damage: unpredictable and sudden. Below are some of the scenarios where insurance may come in handy in protecting you against the cost of roof replacement:

Yes: Situations where your insurance may cover roof replacement

Storm Damage

Your insurance typically covers the replacement if a severe hailstorm damages your roof. Hail pockmarks, missing shingles, holes, etc., all caused by a sudden hailstorm, are generally covered under most standard home insurance policies. The same goes for windstorms; if high winds damage your roof, the repairs or ultimate replacement are covered by insurance.

Wildfire or residential fire

Any accidental fire, whether wildfire or residential, causing roof damage is generally covered under most standard home insurance policies.

Vandalism

If deliberate damage is caused to your roof during a break-in attempt or simply due to vandalism, your insurance will usually cover the cost to repair or replace your roof.

No: Situations where your insurance will not cover roof replacement

Wear and tear

Your insurance is designed for sudden incidents, not predictable wear-and-tear over the years. A roof that has reached the end of its useful life due to age will not be covered by insurance for replacement. Maintenance and regular upkeep are the homeowner’s responsibility. Neglect falls under this umbrella as well. Failure to maintain the roof, resulting in gradual deterioration, is not covered by insurance.

Manufacturer defects

If the roof fails due to defective materials or poor installation, the insurance will not cover the replacement. This is typically a matter of the manufacturer’s or installer’s warranty.

Preventable damages

Damage caused by pests such as termites is considered preventable with regular maintenance and is usually not covered by insurance.

What insurance is meant for: Explaining “unexpected and accidental” in insurance terms

Home insurance is designed to protect homeowners from sudden, unexpected, and accidental events. This fundamental principle explains why certain types of roof damage are covered while others are not.

For example, a lack of maintenance resulting in gradual losses is not covered by insurance because the homeowner is expected to do their due diligence and look after the property. The homeowner is expected to conduct regular maintenance to prevent damage. This includes cleaning gutters, replacing damaged shingles, and inspecting the roof periodically. Having professional roof inspections can help identify and fix small issues before they become significant problems.

Weathering and incremental damages are also not covered by insurance because they are predictable. Over time, roofs naturally deteriorate due to exposure to the elements. This gradual loss will not be covered by insurance, so a much-needed replacement due to aging and wear will be on you. Check with your insurance provider to see at what age they recommend your roof to be replaced, as the age of your roof can impact your insurance rates.

Understanding these distinctions can help you better manage your home maintenance and know when you can rely on your insurance policy. Being proactive with roof care will save you from unexpected expenses and ensure your home remains protected.

Taking care of your roof

As we’ve established, part of being a good homeowner—and ensuring any damages to your roof are covered—comes with looking after your roof. If you’re a first-time homeowner, you may not be aware of what goes into looking after a roof! Here are some essential tips:

  • Conduct regular inspections: Inspect your roof at least twice a year, in the spring and fall, to spot any visible damage, such as missing shingles or tiles. Schedule a professional roof inspection every few years to identify and address issues that may not be visible from the ground.
  • Clean your gutters and check downspouts: Regularly clean your gutters to prevent water buildup, which can cause leaks and water damage to your roof and home’s foundation. Ensure that downspouts are clear and direct water away from your home.
  • Trim and clear away overhanging branches: Trim any tree branches that hang over your roof to prevent them from falling and causing damage during storms. Keeping branches trimmed also reduces the amount of leaves and twigs that can accumulate on your roof and in your gutters.
  • Repair damage promptly: Address any leaks as soon as they are detected to prevent further water damage and mold growth. Promptly replace any missing, cracked, or damaged shingles to maintain the integrity of your roof.
  • Prepare for weather shifts accordingly. Spring melt can be damaging to your roof, especially if you allow debris and gunk to clog up your eavestroughs and gutters. Prepare accordingly.

Have additional questions about roof replacement and your insurance? Uncertain about what’s covered? We’ve got you. Give us a call here at AHI.

What are car theft “hot spots?”

Posted on by AHI Group

Auto thefts increased in frequency rather dramatically during the COVID-19 pandemic, jumping by almost 20% in 2020 and 2021. The National Insurance Crime Bureau (or NICB) has released statistics showing that these numbers are beginning to drop once more, but in certain areas of the country, they’re still rather inflated, causing serious ramifications to policyholder’s car insurance.

The current rate of auto theft in the U.S. amounts to two stolen every minute. While it has dropped in some states, such as Kansas, South Carolina, Arkansas, Oklahoma, Indiana, etc., rates for theft have increased in California, Texas, Washington, Florida, and Colorado. Here’s what’s going on.

Which states are considered designed hot spots for theft?

Regardless of where you live, taking precautionary measures to protect your car (such as not leaving it running, concealing your keys and not leaving them in your car, parking in well-lit areas, etc) is crucial. However, some areas have been identified as being more at risk than others. The list below (from Forbes) is comprised of different states in descending order with their theft rates per 100,000 residents:

  1. Colorado (731)
  2. District of Columbia (700)
  3. Washington (603)
  4. Oregon (541)
  5. New Mexico (540)
  6. California (520)
  7. Missouri (483)
  8. Nevada (481)
  9. Texas (350)
  10. Tennessee (337)
  11. Minnesota (312)
  12. Illinois (308)
  13. Oklahoma (299)
  14. Louisiana (297)
  15. Arizona (295)

Which states are considered designed hot spots for theft?

Numerous factors contribute to why certain states may put you at higher risk of auto theft than others. For one, population density. Several of the states as designated on this list have some of the highest populations in the U.S. (California, Texas, Ilinois, etc.) and densely populated cities, which provide more opportunities for thieves to operate quickly and anonymously.

Another reason why these states may be considered hot spots for theft is economic conditions. Economic disparities can influence crime rates, including car theft. States with higher unemployment rates and economic instability often see a rise in criminal activity as individuals may turn to theft out of financial desperation.

Border proximity, law enforcement resources (or lack thereof), socio-political factor, and the availability of high-value vehicles all tend to factor into why certain states may see more auto theft than others. Usually, a combination of these factors may contribute to a state landing itself on the “hot spot” list. However, no state’s citizens are immune to auto theft.

Which cars are most at risk for auto theft?

It varies by state, city, and insurance company, however generally older “high-volume” (aka number of insureds on the road) are taken more often than your luxury/new vehicles since they’re most often taken to be sold individually as parts. They’re usually driven away or towed where they can be stripped down into components and then sold off to repair shops and over the Internet. Sometimes even overseas!

Electric cars tend not to be the target of theft for one reason: a lacking of charging infrastructure in overseas countries. There isn’t much demand for their parts as there aren’t many electric-powered vehicles in the countries these parts are being sold to, so as a result they can be less at-risk for theft. Still, they’re not entirely immune, and vehicles can still be stolen for any number of purposes!

Why your rates could be impacted if you live in theft hot spots

Living in a high-risk area for car theft can significantly impact your auto insurance rates, even if you haven’t personally experienced theft. Insurance companies base their premiums on the likelihood of claims being filed, and residing in a theft hot spot increases this risk. Your rates could be higher for any of the following reasons:

  • You’re now an increased risk for insurers. Living in a neighborhood with a high incidence of car theft puts you at an increased risk of your insurer having to pay out for stolen vehicles. This increased risk is reflected in higher premiums to offset potential future losses.
  • Historical data and trends show a higher incidence of future losses. Areas with a history of high car theft rates are considered more dangerous, and this statistical analysis influences the calculation of your insurance rates. Even if your car has never been stolen, the past data from your area plays a significant role in determining your premiums.
  • The cost of claims is higher in your area. Insurers factor in not just the value of the stolen vehicle but also administrative costs, investigations, and potential legal fees. Higher claims frequency in theft hot spots drives up these costs, leading insurers to charge more to cover these expenses.
  • You may be asked to invest in security measures. Insurers might require or recommend additional security measures for your vehicle, such as alarms, GPS tracking, or immobilizers. These added precautions can reduce the risk but also increase the overall cost of insuring your car, as its total replacement value has now increased. However, some insurers will discount your insurance for these devices, which can combat the overall increase.

In essence, living in these “hot spots” can result in higher insurance premiums – even if you yourself have not made an insurance claim! Having a better grasp on these factors may permit you to navigate your insurance options better so you can find ways to lower your rates.

Have additional questions? Our agents at AHI Group will be more than happy to help out. Request a quote or, better yet, give us a call and ask us directly.

How much does general contractor insurance cost?

Posted on by AHI Group

The role of the general contractor in construction cannot be understated. They oversee projects, manage subcontractors, and generally keep everything moving smoothly from initiation to completion.

With such duties comes a significant amount of risk, which is why it’s so critical for these professionals to have their own general contractor insurance. But, when managing all your different costs is so crucial to the success and growth of your businesses, where does the cost of insurance fit in? How much does general contractor insurance cost?

How much does it cost to buy general contractor insurance?

There’s no one true answer to this question. To find the approximate amount your general contractor insurance will cost, it’s better to ask an agent to find you quotes and compare between your different options. Policies for smaller businesses can cost as little as $1,000/year, whereas policies for larger businesses with specific risks may exceed $5,000/year or more.

The cost of general contractor insurance is not a one-size-fits-all figure. Various elements, or “factors,” contribute to the overall premium, each reflecting the unique aspects of the contractor’s business and the risks involved. Here are some of the factors insurers use to price general contractor insurance:

Business size

The size of a contractor’s business significantly impacts insurance costs. Larger companies with more employees, higher revenues, and extensive operations typically face higher premiums due to the increased risk exposure. Conversely, smaller businesses with fewer employees and lower revenue can often secure coverage at a lower cost.

Nature of contracts

The types of projects undertaken by a contractor play a crucial role in determining insurance premiums. High-risk projects, such as large-scale commercial constructions or those involving hazardous materials, generally attract higher insurance costs. In contrast, smaller, less risky residential projects may result in lower premiums.

Coverage types

The specific types of coverage included in the insurance policy affect the overall cost. General liability, workers’ compensation, and professional liability are common coverages for general contractors. The broader and more comprehensive the coverage, the higher the premium.

Location of operations

Geographical location is another important factor. Contractors operating in areas with higher construction activity or regions prone to natural disasters (such as earthquakes or hurricanes) may face higher insurance premiums. Local regulations and the legal environment also influence costs.

Claims history

A contractor’s claims history is a key determinant of insurance costs. Contractors with a history of multiple claims or significant losses are seen as higher risk by insurers, leading to higher premiums. Maintaining a clean claims record can help reduce insurance costs over time.

Business experience

Experience and a solid safety record can positively impact insurance costs. Contractors with many years in the business and a demonstrated commitment to safety are often rewarded with lower premiums. Implementing strong safety protocols and training programs can help improve a contractor’s risk profile.

How do I get more affordable general contractor insurance?

One of the best things to do for your business as a reputable contractor is to look for affordable general contractor insurance that doesn’t compromise on necessary coverage (or fall short of whatever contractual/state requirements that are expected of you!) Doing so is easier when you have an agent in your corner helping you out. While we do recommend giving one of our agents a call to discuss your needs one-on-one, we also have a few steps listed below on suggestions for more affordable general contractor insurance coverage:

Maintain a good claims history

A clean claims history is an asset when seeking affordable insurance. Contractors with fewer claims are viewed as lower risk by insurers, often resulting in lower premiums. Implementing robust risk management practices and safety protocols can help minimize incidents and maintain a favorable claims record.

Increase deductibles on coverages

Opting for higher deductibles on applicable coverages can lower premium costs. While this means paying more out-of-pocket in the event of a claim, it reduces the insurer’s risk, which is reflected in lower premiums. Contractors should assess their ability to cover higher deductibles, possibly with the assistance of an agent, before choosing this option.

Review and update coverages regularly

Regularly reviewing and updating insurance policies ensures that contractors are not overpaying for outdated or unnecessary coverage. As business circumstances change, adjusting coverage to reflect current needs can lead to cost savings.

Shop around and compare quotes

One of the most effective ways to find affordable insurance is to shop around and compare quotes from multiple insurers. Different insurance companies have varying pricing models and coverage options, so obtaining several quotes allows contractors to identify the best value for their specific needs. An agent can do this with you/on your behalf.

Give us a call

General contractor insurance is a not a one-size-fits-all, so it’s important as someone looking to continue their business for years to come to find a good fit. To find great coverage at a great price, work with AHI Group. Our commercial agents are experts in finding excellent coverage solutions for contractors. Give us a call or request a quote on our website.

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