Business Insurance

What Does Maine General Liability Insurance Cover?

Posted on by Bob O'Brien

Maine General Liability Insurance is a must-have for businesses and nonprofits. It protects and defends the organization’s assets agains many lawsuits.

Protection from Lawsuits

Maine business owners invest time and resources to make it successful. Nonprofit managers must also be responsible stewards of the organization’s assets. Maine general liability insurance (GL) can help preserve those resources.

Getting sued can damage your organization greatly. Loss of reputation and money are two of the greatest risks. It’s important to protect yourself. Do you run a business or nonprofit in Portland, ME? The trusted agents at Noyes Hall & Allen Insurance can help protect it against losses with a GL policy.

Maine general liability insurance defends you against many lawsuits

Maine General Liability Policies: Broad Protection

  • Property Damage – includes any damage to others’ property caused by your operation.  
  • Bodily Injury – Including slips and falls, injury caused by your work, or 
  • Medical payments – Visitors may injure themselves on your property even if you do nothing wrong. Medical payments can pay their emergency medical bills, even if you’re not at fault. 
  • Product Liability – Injury caused by your product or completed work. A restaurant guest could get food poisoning. An improperly secured deck can collapse and injure someone. A GL policy that included product coverage will pay for these.
  • Personal Injury – claims of libel, slander, false arrest, invasion of privacy and similar charges.

Maine General Liability Defends You from Groundless Suits

Most general liability policies include the cost of legal defense. That means hiring and attorney to defend you in court if necessary. Even better, defense cost doesn’t reduce the limit of coverage in many policies. It’s in addition to any damages you are liable to pay. 

Many Contracts Require Proof of General Liability Insurance

Whether you’re a contractor or provide a professional service, your client probably requires you to be insured. Your agent provides a certificate of insurance showing that you have the proper coverage. This is often required in order to get the best jobs. Larger companies and organizations require proof of insurance. They might even require to be named as an additional insured on your policy. 

A single lawsuit could destroy your organization if you are not protected.  Do you manage a business or nonprofit in Greater Portland, ME? Contact Noyes Hall & Allen Insurance at 207-799-5541. We offer a choice of many of Maine’s top insurance companies. We’re independent and committed to you.

Does Commercial Insurance Cover Office Equipment?

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One of the biggest decisions you will make when starting your business is selecting the right commercial insurance. Business insurance adds a layer of protection in the event of a covered loss. Some of the covered losses that your insurance protects you from include fire and theft. Your insurance policy will cover most items owned by the business, including office equipment.

How To Get The Right Coverage

When you start to look for commercial insurance, there are a few things to keep in mind. Find a business insurance agent you trust in your area. They’ll help you select the type of coverage your business needs, and avoid coverage you don’t. A good agent can help match you with an insurance company that understands your business. Make sure your policy includes all business assets. One way is to look at your balance sheet and make sure that you have enough coverage for inventory and equipment. This helps prevent gaps in your coverage that could lead to losses.

Documenting Office Equipment

It is important to include your office equipment in your coverage. One way to ensure that you adequately protect valuable office equipment is to save receipts or check your balance sheet. Photocopy all of your documents that figure into your insurance policy and keep them stored in a separate location or in the cloud. One highly respected insurance company that can help you step by step through the coverage process is Noyes Hall & Allen Insurance in Portland, ME.

If you are looking for high quality and reliable commercial insurance, call Noyes Hall & Allen Insurance in South Portland, ME at 207-799-5541. One of our knowledgeable agents will be glad to answer your questions and help you get started protecting your investment today. We represent several insurers, so we can help you choose the best value. We’re independent and committed to you.

Are Drones Covered by Maine Homeowners or Business Insurance?

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Flying Drone

Innovative Maine businesses use drones to literally get a new perspective on their operations.  Land owners survey lots and buildings. Engineers use photos from unmanned aerial vehicles (UAVs) in project work.  Photographers and videographers use drones to capture unique images and videos. Marketers use or hire them to create compelling and disruptive visual content. Even individual hobby fliers own drones now.

 

 

Drones: A Money Saving Investment

High quality drones and UAVs are not cheap. It’s easy to invest $15,000 or more in a good quality industrial setup, including cameras and software. Still, that can be a lot less expensive than renting an airplane or helicopter, and offers much more control and flexibility. It’s also safer than sending an employee up on a ladder or bucket to inspect facilities at height. The price of hobby drones has dropped a lot in the last few years. You can find them for less than $1500.

Legal Issues for Drones in Maine

The FAA requires registration of drones and UAVs weighing more than 0.55 lbs. The maximum weight permitted is 55 lbs. Permitted location and other rules vary between pleasure and business use. A remote pilot airman certificate is required as well.

Drone owners and operators face many of the same liability issues as other aircraft pilots. The low altitude operation of UAVs can also create privacy and property issues. Some examples:

  • Injuring someone, either directly, or by causing an auto accident
  • Damaging property by striking it
  • Invasion of privacy or trespass

Even if a claim against you is not valid, defending yourself can cost many thousands of dollars in legal fees in Maine.

Drones are NOT Covered by Standard Insurance Policies

Because drones are considered unmanned aircraft, and subject to FAA regulation, they are excluded from coverage on homeowners or business liability policies. The Maine Bureau of Insurance recommends that you buy separate insurance for your drone. We agree.

Up to now, few insurers have offered insurance on drones. One of our company partners, Acadia Insurance recently introduced a liability insurance plan for businesses that use drones as an incidental part of their ordinary operations.

If you or your Maine business uses a drone or other UAV, contact a Noyes Hall & Allen Insurance agent in South Portland at 207.799.5541. We’d love to hear how you’re using this innovative technology for fun or business. We can help you manage your risk. We’re independent and committed to you.

Portland Maine Airbnb Landlords: New Law, Same Risks

Posted on by Bob O'Brien

 

The sharing economy creates opportunity and risk for Maine property owners. Many capitalize on the opportunity and create serious rental income. Mainers collected more than $26 million from 175,000 Airbnb guests in 2016. And that doesn’t include other services like HomeAway and VRBO.

Risks of Property Sharing and Short Term Rental

It’s important to consider the risks of short term rental of your property as well as the rewards. You can be liable for guests’ injuries, Guests can damage your property by abuse or negligence. You can run afoul of condo bylaws that prohibit or limit rental. Your neighbors may complain about the activities of your renters. You may jeopardize your homeowners insurance coverage by converting your home, apartment or condo into income property.

Plenty of Portland Maine area residents have those risks, whether they know it or not. More than 650 Airbnb units are actively offered for rent in the area. Owners hosted more than 50,000 guests in 2016, pocketing $7.1 million in revenue.

Portland Maine Regulation of Airbnb and Other Short Term Rental

Portland City Council has been concerned for years about the effect on housing affordability. Some investors have purchased condos and homes to rent them out short term. Portland area rents are at a historic high as the city becomes a trendy work and play destination. Short term rental of apartments and condos reduces the housing inventory for area residents and workers. City officials admit that they have no way to measure how many units are available short term rental.

That’s why City Council passed a law effective January 1, 2018 limiting short term rental activities on the mainland. Island properties are not affected by the new law. What does the law do? Can you still rent out your home or apartment as an Airbnb? Does it matter if you live in the unit you rent? What if you rent a room instead of the whole unit? Here’s a graphic showing how the new law applies to owner occupied principal residences, multi-family units and income property.

Portland Maine short term property rental laws as of January 1 2018

 

Do You Live in Greater Portland, Maine & Own Rental Property?

If you’re a Maine resident who owns income property, contact a Noyes Hall & Allen Insurance agent at 207-799-5541, or request a quote online. You can’t afford to wonder whether your insurance will be there when you need it, to protect your property and other assets.

We can advise you about the local insurance market and help you evaluate your options. Whether you own a home Cape Elizabeth, apartments in Portland, a camp on Sebago Lake, a cottage in Boothbay Harbor or a Sugarloaf ski condo, we know the insurance market. We represent many different insurance companies, so we can survey the market to find the best fit and value.

We’re independent and committed to you.

How Do Insurance Agents & Brokers Get Paid?

Posted on by Bob O'Brien

 

Insurance is a $1 trillion business in the U.S. The industry employs about 2.5 million Americans, according to the Insurance Information Institute. Life/health (L/H) insurers collect about $650B and property/casualty (P/C) insurers about $500B each year.

Noyes Hall & Allen specializes in property/casualty insurance. Before talking about how property/casualty agents are paid, let’s take a brief look at the P/C business.

Maine Property/Casualty Insurance Overview

P/C insurers provide auto, home and business insurance. There are 3 top distribution models for P/C insurance sales channels (1)insurance.

  1. Direct writers rely on advertising to generate the majority of their business.  When you call or respond to an advertising piece, you’re speaking with a company employee. They only offer products from one company. GEICO, USAA and esurance are direct writers. While they don’t pay agents to generate business, they spend a LOT of money on advertising. GEICO alone spends over $1B per year.
  2. Exclusive agents (sometimes called “captive agents”) also sell insurance only from one company. Unlike direct writers, they have local agents who sell and service their products. These companies also advertise a LOT to drive business to their retail agents. Allstate, State Farm and Liberty Mutual use the exclusive agent model.
  3. Independent agents (sometimes called IAs or Trusted Choice agents) are locally owned and operated. Each contracts with 5 to 15 insurers, thus offering their clients a choice of insurance companies. IAs can access an international network of brokers for unusual insurance needs. Insurers that contract with IAs advertise much less than other insurance companies. They are less likely to be household names. Many IA insurers specialize on one region or type of customer. Popular IA insurers in Maine include: Concord Group; Hanover Insurance; MMG Insurance and Vermont Mutual.
  4. Hybrid companies (ok, this makes 4 models, but not really). These insurers will write insurance using one or more different channels. These are usually large national insurers. Examples: Hartford; Liberty Mutual; Travelers; and Progressive.

How Maine P/C Insurance Agents Make Money

Both exclusive and IA insurance companies pay agents a percentage of the premium. Commission varies by policy type and whether the policy is new or renewal. Usually, commission is between 10 and 20 percent.

Exclusive agents often make a higher percentage commission on new business than renewals. Some exclusive companies even stop paying agents after several years. This incents the exclusive agent to focus on writing new policies.

Independent agents often make the same commission on both new and renewal policies. This allows the agent to provide  consistent customer service year after year. If you’re an existing client of an independent agent, you’re even more valuable than a new one. It takes an independent agent 3-5 years to recoup the cost of insuring a new customer.

Who Pays an Insurance Agent’s Commission?

The insurance company pays the agent’s commission out of the premium they collect. There is no specific surcharge on the premium that goes to the agent. Of course, the customer pays the agent’s commission – just not by a separate line item. Insurance premiums do not rise or fall with the agent’s commission percentage.

Can You Save on Insurance if  You “Cut Out the Middleman”?

No one sales channel is always the lowest cost. Claim costs and insurance company expenses all impact premiums. Some direct writers would have you believe that you save money by bypassing an agent. In reality, you might pay MORE without an agent to advocate for you. Of course, you could pay less, too.

Our Agents Speak English – And Insurance. If you don’t know the system, you can leave money on the table. We know to ask about certain discounts. Is your child on the honor roll or away at college without a car? Your local agent may know these things, or you might ask when you call in to do something else. If your agent is independent of the insurance company, they’re more likely to act on your behalf.

If you have a question about Maine home, auto, boat, motorcycle or business insurance, contact a Noyes Hall & Allen agent at 207-799-5541. We’re independent and committed to you.

What Happens AFTER You Buy Insurance Online?

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There are many ways to buy insurance. Online. Over the phone. Using an app. By email. In person. In 15 minutes. In 7 minutes. Whatever.

Buying Insurance May Be Easy…

But, it’s not how you buy insurance that creates value. It’s whether it’s there when you need it. If you buy insurance from someone hundreds of miles away, whom you’ve never met, or even talked to, do you really think they’ll be there to help later? We will.

A Week’s Worth of Questions We Dare You to Ask Your Internet Insurance Company

We helped Greater Portland Maine insurance clients with these issues, just in the last week:

  • My claim was denied, and I don’t think it’s right.
  • How can I insure property I co-own with three other people?
  • I want more umbrella coverage, but my insurer won’t do it, because I have a couple of speeding tickets.
  • I haven’t gotten my claim check from the other guy’s insurance company after he hit my parked car.
  • I need help completing this form that the insurance company sent me.
  • I’m helping my son buy a car; who should insure it?
  • My insurance company wants me to make some improvements to my home, but I need more time.
  • Who can clean my basement in Saco, Maine after a sewer backup?
  • Who is good Portland Maine jeweler to have appraise my pieces?
  • I own a classic car. What’s the best way to insure it?
  • I’m about to buy a new car. When is the best time to shop for the insurance?
  • My fiancee and I are buying a house together. Can we combine our car insurance, too?
  • Why does the insurance company want to know about other drivers in my house? They don’t drive my car!
  • Should I suspend my insurance for the winter on one of my cars?
  • Help! The Maine DMV suspended my license in error!
  • My former insurance company keeps sending me bills!
  • I’m moving to Maine. How do I register my car? When do I need to get a Maine license?
  • I’m moving to New Hampshire. Can I keep my cars registered in Maine?

Does your insurance company know Pleasant Hill from Munjoy Hill? Westbrook from the West End? Sebago from Sugarloaf? Would you trust the answer they gave you to even one of the questions above? If not, that’s why you need a local agent.

Insurance Choice Filter

It doesn’t matter how easy it is to buy insurance. It matters who’s there to help when you  have a problem that’s not so easy. That’s why you need a local agent.

For answers to your Maine insurance questions, contact a Noyes Hall & Allen agent. Right here in South Portland. 207-799-5541.

Data Breach! Protect Your Maine Business With Cyber Liability Insurance

Posted on by Bob O'Brien

 

Every week we hear news of another household brand name suffering a data breach. Hannaford, Target, TJ Maxx, Shaw’s, Home Depot…the list goes on.

But local businesses are not immune from hacking. Many Maine small businesses – and their customers – were shocked recently to hear about a breach at two Portland, Maine locations of Otto Pizza, a local favorite.

Otto Pizza responded to the breach candidly, and with personal comments that struck at the heart of any local business owner:

Quote from Otto Pizza about theft of their customers' data

Cyber attacks are a constant threat to your Maine office, retail store or professional practice. You no longer have to be a “big fish” to be a target. Hackers, phishers and the like are always looking for low-hanging fruit in the form of networks with poor security. After beefing up your security, you should insure your Maine business against data breach in case it does happen.

How Do Data Breaches Happen?

Some common scenarios that can lead to data breach in your business or professional practice:

  • Unauthorized access – hackers gain access to your POS system or computer network.
  • Theft of Computers – Someone steals your laptop, backup data or server that holds customer or employee personal information.
  • Improper Disposal of client or patient records.
  • Human Error – your bookkeeper mixes up 1099 forms and mails them in the wrong envelopes, exposing personal information to others.

 

Sobering Data Breach Statistics

 

infographic: Statistics about business data breaches

 

 

 What Does Data Breach Cyber Liability Insurance Pay For?

What does Cyber Liability Insurance pay for?

Cost of Maine Cyber Liability Insurance

Data breach protection is a surprisingly affordable addition to most Maine small business insurance portfolios. Coverage for basic limits such as $10,000 first party and $25,000 third party are available for premiums as low as $150 per year.

What to Do in Case of a Data Breach at Your Business

  1. Notify the police immediately
  2. Report the breach to your business insurance agent or company
  3. Take all steps to protect any confidential data remaining in your control.
  4. Preserve all evidence of the breach itself.

For answers to your Maine business insurance questions, including data breach and cyber liability insurance, contact a Noyes Hall & Allen agent in South Portland at 207-799-5541. We represent many insurance companies so we can help you find the best insurance fit for your business and budget. We’re independent and committed to you.

FMI:

Payment Card Security Standards

CyberRisk 2014 White Paper by Insurance Information Institute

Ron Blumenthal Retires, Innova Insurance Clients Can Rely on Noyes Hall & Allen

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Ron Blumenthal, the founder of Innova Insurance Services in Scarborough Maine, retired October 31. Ron sold Innova Insurance to Noyes Hall & Allen Insurance in December, 2012. Ron had a close relationship with Noyes & Chapman for many years, which continued when Noyes & Chapman became Noyes Hall & Allen. Ron continued to work from the Noyes Hall & Allen office at 170 Ocean Street, South Portland Maine until his retirement.

Tina Countryman, who worked with Ron at Innova, remains at Noyes Hall & Allen, and continues to serve clients.

If you were a client of Ron Blumenthal at Innova Insurance, your insurance transferred seamlessly to Noyes Hall & Allen. Contact a Noyes Hall & Allen agent at 207-799-5541.

Who Does an Insurance Adjuster Work For?

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If you report an insurance claim, your insurance company assigns a claims adjuster to settle your loss. The adjuster’s job is to pay insurance proceeds required by the terms of your policy. Depending upon the type, severity and location your claim, you might work with different types of insurance adjusters:

Staff Adjuster

A staff adjuster is an employee of the insurance company. There are two types of staff insurance adjusters:

  • Inside adjusters are desk jockeys. They take statements over the phone, collect bills and documentation from you and anyone else involved in your loss or accident. The also gather information from police or fire officials, or your body shop or contractor. Though they may be hundreds of miles from you, they are often familiar with the area they are assigned to and the local retailers and repair shops.
  • Outside adjusters work in the field. They handle claims that require physical inspection. Outside adjusters specialize in auto, property or liability claims. Auto specialists are sometimes called appraisers. Many are trained in auto body repair techniques (or have repair shop experience), and work closely with body shops to agree on the repair cost for your vehicle.

Independent Adjuster

An Independent Adjuster (IA) is NOT an employee of the insurance company. Most are small business owners contracted by insurance companies to settle your claim when your insurance company does not have staff available. IA’s have a lot in common with independent insurance agencies. They often live and work in your area, and represent multiple insurance companies. Many independent adjusters are former insurance company staff adjusters. In order to be re-hired by an insurance company, an independent adjuster must provide excellent service to you, while keeping track of different insurance company policies and procedures.

Paid by Insurers

Both staff and independent insurance adjusters are paid by the insurance company; their job is to guide you through the (hopefully) unfamiliar process of claim settlement, and to pay you and others what’s fair. The claim adjuster job attracts empathetic people who enjoy helping others. After you’ve had one of  life’s unpleasant experiences, they enjoy it when they see a smile on your face at the end of the process.

Of course, no insurance company wants to over-pay for a claim. They do monitor adjusters to make sure they are paying only what’s fair. But good adjusters know that an insurance company is defined by its claim payment reputation. Insurance companies that treat people with respect and fairness enjoy a good reputation; those with a tight-fisted one quickly lose favor, especially in the age of Social Media.

Your Insurance Agent: Your Claim Advocate

In our South Portland Maine insurance agency, most insurance claims go very smoothly: the company adjuster connects quickly with you, gathers the information they need, and settles your claim without complication.  Sometimes, claims do go off track.  You might be extremely busy and have trouble connecting with the adjuster. The circumstances of your claim might require more investigation. Or, you or your adjuster may have a question about coverage.

Your local insurance agent can be your claims advocate. We can’t create coverage where there isn’t any, but we can help make sure you get the settlement you deserve. We can also help both you and the insurance company reach agreement and settle your claim quickly and fairly.

If you have questions about Portland Maine business insurance or personal insurance, contact a Noyes Hall & Allen insurance agent at 207-799-5541. We’re local, independent and committed to you.

How to Save Insurance Costs and Win More Jobs Under Maine’s New Independent Contractor Law

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Effective January 1, 2013, a new Maine law makes it harder for workers to be considered independent contractors, and more likely for them to be considered an employee. If you consider yourself to be a Maine independent contractor, or are a Maine business that hires such people, paying attention to this can help you get more work – or save money for your business.

For Independent Contractors

home under construction If you want to be considered an independent contractor in Maine, you can either buy Maine workers compensation insurance or obtain a Maine Predetermination of Independent Contractor Status (WCB266), proving that you meet 5 criteria, and at least 3 of another 7. Otherwise, you are presumed to be an employee.

With this pre-determination in hand, or by buying your own Maine Workers Comp coverage, you have a big jump on your competition. Companies that hire you won’t have to pay Maine Workers Compensation premium on your work, reducing their costs. This puts you at a significant advantage against your competitors seeking the job. Make sure you provide a Certificate of Workers Compensation Insurance or a copy of your approved WCB266 when you bid for work.

Predetermination (WCB 266) forms are good for one year, so be sure to re-apply every year. Also, they are “portable; you can use the same form can for multiple jobs in the one year.

For Maine Employers

To reduce your Maine business insurance costs, obtain a Certificate of Workers Compensation Insurance or a Predetermination of Independent Contractor Status (WCB266) from each contractor you hire. Consider it a “get out of jail free” card against paying more premium on your workers compensation insurance audit.

Be sure to collect this proof BEFORE the job starts, because Predetermination forms are NOT retroactive.

For more business tips on navigating Maine Workers Compensation insurance, contact a Noyes Hall & Allen agent at 207-799-5541. We’re independent and committed to you!