Month: April 2021

Discontinued Operations

Posted on by Brad Smith
Closing a business? You may still need insurance.
Photo by Tim Mossholder on Unsplash

Mergers and acquisitions are very complex legal transactions that, besides substantially altering regular operations, can also affect an organization’s insurance needs. Unforeseen liabilities may arise for merged entities that produce tangible products. One area of concern is a discontinued operation.

Once a product enters the marketplace, the liabilities associated with that product do not cease with the sale or merger of the original manufacturer. Such liabilities still exist even when that particular product is no longer produced. Liability claims often occur many years after the product was first produced or sold. In other words, liability still exists for operations that have been discontinued.

If the original business owner only sells its assets and retains its corporate structure, it will also retain the liabilities connected to the original operations. A business can purchase discontinued operations coverage to help in such instances. For example, Utility Trailers, Inc. built small trailers. Utility Trailers’ owners accept an attractive offer from another company and sell the business on an ‘assets only’ basis. Utility Trailers, Inc. was not dissolved as a corporate entity. A year later, some customers sue Utility, claiming loss caused by defective trailers. Their Discontinued Operations coverage will respond to the lawsuits.

Discontinued Operations coverage would provide coverage for bodily injury or property damage caused by defective products. The same coverage can be designed to provide coverage for contractors that have ceased doing business. It would be a disappointing situation to find that after a product has been discontinued or assets sold, all profit from the sale – and perhaps more – has been taken away due to a defective product that is still the responsibility of that entity. So, contact your agent and discuss whether you have continuing liability for a discontinued operation.

COPYRIGHT: Insurance Publishing Plus, Inc. 2015

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.

How Does a Home Insurance Deductible Work?

Posted on by admin

Most homeowners in Georgia have a basic understanding of their home insurance deductible. We all know that when we file a claim, we’ll be expected to put up a bit of money ourselves, typically a flat cash amount, in order to claim our check.

This roughly defines a deductible, but leaves us with a few unanswered questions.

For instance: Why?

Don’t we already pay a monthly premium? So what’s the deductible for?

Put simply, insurance companies will have policyholders pay a deductible when making a claim to ensure that the policyholder has some “skin in the game,” so to speak. The deductible helps to ensure that people can’t make frivolous claims. If home insurance covered every single loss with no deductible, there would be people filing a claim for missing TV remotes and lost socks. The deductible helps to discourage that kind of frivolous use of an insurance policy.

Also worth knowing: If you only plan to make an insurance claim in the event of your home burning down or something like that, you can pay lower premiums by setting a higher deductible. You generally don’t want to have a deductible higher than you could comfortably pay at a moment’s notice, but if you only plan to file a claim in extreme circumstances, it may be better to save money month to month with a higher deductible.

If you have any more questions about your home insurance deductible in Savannah, or if you’re looking to get covered, get in touch with TruePoint Insurance. TruePoint Insurance can help you to get a good deal on a great policy.

Need Flood Insurance?

Posted on by Brad Smith

Do you need flood insurance? Well, walk to the nearest mirror and ask the person you see if he or she owns much property that could be damaged or destroyed by water. If the answer is yes, then you should seriously consider buying flood insurance. Most persons who need the protection buy coverage offered by the National Flood Insurance Program (NFIP). If your community doesn’t participate in the program, you’ll have to look into coverage from private insurance companies.

Homeowners insurance will not cover flood! Do you think you need flood insurance? Call a TruePoint Insurance agent and get a FEMA National Flood Insurance program quote today.
Flood insurance comes via the FEMA National Flood insurance program.

Is A Flood Loss Likely?

The chances of your business, home or personal property being damaged by a flood depends primarily upon where you live. They also depend on other factors such as:

·        How much of a flood warning you receive

·        The level of flood precautions you take (such as moving personal property from lower levels to higher levels), and

·        The precautions taken by your community (such as the use of flood controls in construction standards or sandbagging threatened areas).

Floods are related to weather conditions and tend to affect very wide areas. This often makes chances of a flood loss higher than a loss from fires or windstorms. Many people have the obsolete belief that flood insurance is only needed if you live in a flood prone area.

I Live In A Flood Zone?!

If you hear the term “flood zone,” you may think that it refers to locations that are particularly vulnerable to flooding. Wherever you live in the USA, especially if you live in coastal Georgia, you live in a flood zone. While your area may have a lower chance of flooding than a coastal area or a location situated near a body of water, your area could still experience flooding. A very dry part of the country can be susceptible to flash floods; hilly locations may be harmed by drainage; snowy locations may suffer from heavy snow thaw; other areas may suffer deluges or flooding due to a heavy rain season which has soaked the surrounding soil. So, if you’ve insured yourself against fire, wind and other causes of loss, it certainly makes sense to also protect yourself from the potential of a flood loss.

Why Worry When Disaster Coverage Is Available?

Are you thinking that, after a flood, your loss may be handled by the government declaring a disaster area? However, you’re still taking a couple of large risks. First, your flooded locale may not be deemed a disaster area. Second, being designated as a disaster area is not a bargain. Disaster area status only gives citizens access to government disaster loans. IF you qualify for assistance, you have replaced insurance protection with an obligation to pay off a large, long-term loan. Is it worthwhile to gamble on an opportunity to pick up more debt? You’ll find flood insurance to be a cheaper and much more valuable alternative.

Don’t Be “All Wet”

You don’t have to leave yourself unprotected. Your agent, an insurance professional, can help you with detailed information on the National Flood Insurance Program. You can also ask for help in getting the coverage you need in the face of a flood.

COPYRIGHT: Insurance Publishing Plus, Inc. 2017

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.