Insurance Policies can be Tailored to Meet the Needs of Emerging Businesses

By Edward L. Blais, JD, CIC
President, Blais Insurance 

New and improving technology have changed the business landscape in multiple ways. Besides the advent of streaming and ridesharing services, advancements in technology have also allowed more people to take charge of their lives by empowering them to become entrepreneurs. As individuals carve out new methods to deliver a service, Blais Insurance encourages entrepreneurs to consider working with an independent agent that can tailor a business owner’s policy (BOP) to meet your specific needs.

It wasn’t long ago when the average entrepreneur solely owned a convenience store or sold merchandise online. Nowadays, accurately guessing their line of work can be a complete coin toss. Through the aid of software that can be purchased at a local department store or in the digital marketplace, motivated individuals can give consulting services, provide fitness instructions, or deliver various types of care services that were not possible within the last decade. More importantly, each of these ‘gigs’ carry different risks that can significantly stunt any dreams of being a successful entrepreneur.

Traditional BOP insurance packages have not yet adapted to the changing business landscape. The reason is because BOP insurance was originally designed with the thought that business owners would remain fixed to one location, and that typically meant that they could also rest assured knowing that their property was completely protected. This protection would also extend to bodily injury claims directly connected to an owner’s establishment.

Problems with this approach are immediately apparent if you examine the types of businesses people have launched in recent years. For example, fitness trainers who provide lessons at multiple locations have different insurance needs than individuals who own a gym. Another example might include individuals who are managing a fleet of drivers through an app like Uber or Lyft.

Some insurance professionals might recommend that these individuals acquire a traditional BOP insurance package, but doing so might result in having policyholders pay for more coverage than they need and for protection with clear gaps in coverage. It is easier to understand this dilemma if you could imagine a scenario where a yoga instructor is sued after a client is injured during a routine exercise. These kinds of claims can be covered by tailoring and complementing a business owner’s policy to create an insurance package that is customized for the individual.

The Benefits of Umbrella Coverage are Undeniable

Umbrella Coverage can protect your financial future

By Edward L. Blais, JD, CIC
President, Blais Insurance 

With the United States earning a spot in the top 10 most litigious countries in the world, it can be easy to forget that individuals as well as companies can be named as defendants in a lawsuit. Lawsuits can arise from a number of different scenarios, but it is most problematic when the alleged damages exceed a defendant’s insurance policy limits. To help protect your financial future, Blais Insurance would like to share information about the importance of umbrella insurance.

Simply stated, umbrella insurance is an extra layer of liability coverage if a claim exceeds your auto, home, or boat insurance policy limits. Many people do not think about umbrella coverage, assuming they are fully protected in the event of an accident or expensive claim.

While traditional forms of coverage, such as auto or homeowners insurance, provide an adequate level of coverage for most scenarios, individuals and families can be left financially vulnerable if they are held responsible for losses that eclipse those individual policy limits.  

In order to fully appreciate the importance of umbrella insurance, simply consider the following scenario. Imagine you are driving your vehicle when you take your eyes off the road to tend to your child or pickup your iced coffee. As your eyes wander, you are suddenly involved in an automobile accident that injured several passengers from the other vehicle.

Financial uncertainty will begin to unfold if the claim amounts to hundreds of thousands of dollars or more, which typically exhausts the insurance limits of most policyholders. At this point, umbrella insurance would kick-in and cover the difference. This is just one example where umbrella insurance can help provide policyholders with peace of mind.

In Rhode Island, defendants that are held responsible for claims that exceed their insurance policy limits may have to forfeit a percentage of their future income for many years to come. And for the cost of a single outing to a fast food restaurant once a month, individuals can rest easy knowing that they are protected from a wide range of unforeseen accidents.

As the number of litigations in the U.S. continues to climb, we encourage you to be proactive about protecting your financial future by calling Blais Insurance at 401-725-0070. Our team of agents will be able to answer any questions you have about umbrella coverage, and we can recommend the policy limits that make the most sense for you and your family.

Students with ride-sharing gigs may cause financial uncertainty for their families

Insurance products are available to cover any gaps in coverage.

By Edward L. Blais, JD, CIC

President, Blais Insurance 

Due to the rising costs of tuition and personal expenditures, younger generations have turned to unique opportunities for earning cash such as driving for ride-sharing companies. While a student’s willingness to contribute should be applauded, Blais Insurance urges parents to have a serious conversation with their college-bound student regarding the insurance implications of such an endeavor.    

When parents hear their children have landed a job to help pay for books, they might imagine a traditional part-time job in retail or hospitality. However, thanks to advances in smartphone technology, students lucky enough to have a car are more likely working for Uber or Lyft. According to Fortune, there were nearly 12,000 college students driving for Uber alone when the platform was still growing. Since then, ride-sharing companies have increased their marketing efforts to convince the public that driving with them is the “perfect job” for college students.

Those trends have been concerning for professionals in the insurance industry. This is in large part because insurance experts understand that the more time motorists spend on the road, the more likely they are to be in an accident. Other factors that put students at higher risks for an accident is their inexperience driving during peak travel hours — which ride-sharing companies incentivize.

Parents are often unaware that their kids are driving for ride-sharing companies, as their involvement in the sign-up process is not necessary. Over the course of several months, however, some families in Rhode Island may learn that an accident was not covered by their insurance policy because the driver was using their vehicle for a business purpose. Although ride-sharing platforms provide some form of general liability insurance, young drivers may not understand all the insurance nuances. Oftentimes, some may forgo telling their parents about their job since they falsely believe they are protected under every scenario.

Late last year, I wrote an article about this very topic and the specific scenarios where gaps in coverage may exist. That information is still applicable.

With auto insurance claims easily exceeding thousands of dollars, Blais Insurance wants to make sure your family is completely protected in the event of an accident. As your kids head off to college, we encourage policyholders to have an honest conversation with them about ride-sharing activities and its implications. For more information, speak with one of our agents at 401-725-0070 and we will work with you to develop a customized auto insurance package.