The Insurance Family Blog

In today’s economy we are all taking a closer look at our expenses.   Restaurant insurance costs are no exception.  Here are some simple steps you can take to reduce the expense of your CA restaurant insurance.

HOW MUCH COVERAGE DO I NEED?

You are getting ready to close escrow on your new condominium – signing last minute papers. The question comes up, how much insurance do I need for the interior of my condominium, the additions and alterations? One insurance agent says $20,000 is enough, another says $80,000. The correct answer is that you need to review your CC&Rs.

A condominium homeowner’s policy defines additions and alterations as (also referred to as the dwelling):

1. The alterations, appliances, fixtures, and improvements that are part of the building contained within the insured unit (such as kitchen cabinets, partitions, and wallpaper)
   
   
2. Items of real property that pertain exclusively to the insured unit (such as awnings or shutters)
   
   
3. Property that is the unit owner’s insurance responsibility under a property owners agreement of a condominium (CC&Rs)

In order to determine how much you should insure your additions and alterations for, you must read your CC&Rs. They determine what the homeowners association is responsible for and what the unit owner is responsible for.

There are 3 levels of responsibility:

1. "All In" - this means that the association is fully responsible for the entire building and anything within your unit that is considered to be part of the building. In this case you would only need to insure your personal property.
   
   
2. "Original Specifications" - this means the association is responsible for the building as it was originally built. If unit owners have upgraded their unit with granite countertops, cherry cabinets, built in book shelves, hardwood floors etc., they would be responsible for these additions.
   
   
3. "Bare Walls" - this means the association is responsible for the building up to the bare walls. In this case you would need to insure everything from the drywall inward. For example, floor coverings, wall coverings, built-in cabinets and appliances, tile, light fixtures, plumbing fixtures and partitions.

Sutherland-Scherff Insurance uses various company replacement cost estimators in determining the replacement value when “Bare Walls” coverage is needed. In the Los Angeles area we find that, depending on how custom the unit is, the replacement cost can run between $75-96/sq. ft.

Contact Sutherland-Scherff Insurance and free of charge, we will be happy to help you review your CC&Rs, work up a replacement cost estimate, and offer you a competitive condominium insurance quote with an excellent company.

If you own a business, with even just one employee, you need Employment Practices Liability Insurance (EPLI).  As part of a series of articles addressing restaurant insurance, we are going to discuss this coverage from the stand point of the restaurant owner.   However, the information applies to any California business owner.

Operating a business from your home can be both rewarding and profitable.  Nothing better than being able to crawl out of bed, walk down the hall and start working.  What many home based businesses don’t realize, however, is that the vast majority of homeowners policies do not cover you when you file a claim related to your business.  Like any business, a home based business owner faces many potential property and liability claims.   Consider these common scenarios:

• You operate a small e-bay business and have an inventory of $10,000 and computers worth $5,000.  A fire in your home destroys or damages both.  Your homeowner’s policy may cover $500-$2,500 in business personal property.  The balance would not be covered.   A business owners insurance policy would also cover you for loss of income as a result of this fire.
• You are at a trade show and someone trips and falls over your display or you have a customer come to your home where he slips and falls.  A homeowner’s policy excludes business liability so you would have no coverage.
• You operate a home based bakery and a customer claims he broke a tooth or became sick because of your product.  There is no coverage for this type of claim under your homeowner’s policy. 

3 WAYS TO COVER YOUR HOME BASED BUSINESS 

1. ENDORSEMENT TO YOUR HOMEOWNERS POLICY.   Depending on the type of business you operate, some companies will endorse your homeowners policy to include some business personal property and business liability coverage.   Coverage is limited however and is only offered to a business with minimum loss potential. 
2. HOME BASED BUSINESS INSURANCE POLICY.   Also sometimes called an In Home Business Insurance Policy, this is a policy that is designed specifically for home based businesses.  It provides coverage for losses or damage from business activities conducted in your home or off-site at another location.  That means your coverage can extend beyond the boundary of your home to include protection for your business property while you are in transit and provides liability coverage when you are performing business-related activities at a trade show.  It is a very competitively priced policy, starting as low as $150 per year.   Although this policy is broader in coverage and is available to more types of business than the homeowner’s endorsement, there are many businesses that do not qualify for this policy.
3. BUSINESS OWNERS POLICY (BOP).  A business owners policy is the most comprehensive solution to insuring your business.  This is what a full-time business owner with a store front will often purchase to insure their business.  The coverage on a home based business insurance policy and BOP are very similar.  The main differences are that the BOP may offer higher limits and broader eligibility.   The premium starts as low as $500-$1,000 depending on the limits of coverage and type of business. 

By not having insurance, home based business owners are at risk for significant financial losses such as fire, theft, loss of income and liability - losses that can devastate any business.

For more information about California home based business insurance contact Sutherland-Scherff Insurance Services, Inc.

There are many factors that help reduce your auto insurance rates.  The 2 that we are all most aware of is the number of years you have been driving, and your driving record - how many tickets and accidents have you had in the past 3 years.  But there are other factors that affect your rate.  Some within your control and some that are not.  Following are some additional factors that can help you save money on your auto insurance:

• Deductible for comprehensive and collision.  Policies are typically written with deductibles ranging between $100 to $1,000.  Higher deductibles are available.  Naturally, the higher the deductible the higher your discount.  Just be sure not to pick a deductible that is more than you can afford to pay if you have an accident.  Remember, if you have a $1,000 deductible and have a collision claim, you will be responsible to pay the first $1,000 before the insurance company pays anything.
• Multi-policy discounts.  This can be a BIG discount.  Our companies offer between 10% - 25%.  Sometimes the discount on the auto is enough to pay for your homeowners insurance.   Call us and we can work up a quote to include this discount.
• Car alarms.  A car alarm typically only reduces your comprehensive coverage because theft is included in this coverage.  The discount varies by company.  If you have an alarm be sure to check and see if this discount is included in your rate.
• Occupational Discounts.  Many companies offer discounts for certain professions, degrees and even for employees of certain large companies.  For example, we work with Civil Service Employees Insurance Group (CSE) and they offer special discounts for all government employees.  Travelers offers you a discount if you are an engineer, scientist, educator, doctors, dentists and CPA’s.   Be sure your agent checks to see if you qualify for any of these discounts.  When your policy is first written you should receive all of your qualifying discounts but over the years you might change professions and companies add discounts that they offer.
• Good Student Discount.  Most companies offer a discount for full time students with a B average or better.
• Car pooling.  If you are in a car pool, be sure that your agent knows.  Many companies determine your rate by how far you drive to work and how many days a week.  If you car pool and only drive 50% of the time and you work 5 days a week, your rate will be based on 2.5 days per week instead of 5. 
• Type of Car.  The type of car you drive can also have a big impact on your insurance.  The rate is based on the value of your car and whether or not it is a standard performance, high performance or sports car and a variety of other factors.  If you are planning on buying a new car give us a call first and we can work up a variety of quotes for you based on the cars you are considering.

At Sutherland-Scherff Insurance Services we are constantly reviewing our client’s policies to be sure they are receiving the best rate we can offer.  Most times you won’t even be aware we are shopping your policy for you.  But then there is the time we call you to say “Don’t pay that renewal premium you just received.  We can save you money on your auto insurance if we change companies for you.”  

With Halloween just barely behind us and an array of holidays ahead, Insurance Journal released some startling statistics regarding seasonal California auto insurance claims.

Statistics show that the number of people in California hit by cars jumps 25 percent on Halloween versus the rest of October. Insurers looked at claims involving pedestrians and found a significant increase in autumn accidents specifically around trick-or-treat time. Being that Halloween was on a weekend this year, the fear was that potentially even more children and cars would be on the road than usual. With already heightened claims filed due to texting, insurers warned clients, that whether they would be walking or driving with children, to be alert and refrain from distractions like their keypads.

Even though Halloween typically causes a scary spike in car-pedestrian collisions, it’s pertinent for individuals to keep an eye on the road during the upcoming holiday season. The combination of alcohol, family, and festivities all play a major role regarding the increase in auto accidents; thus leading to a major need for appropriate coverage. In addition to the fact that this is the season that most people are driving not only across the state, but in some regards across the country, to celebrate with family and friends, it’s no wonder the potential for accidents has always been huge.

Thanksgiving tends to an extremely busy time resulting in more vehicles are on the road than usual. However, December 10th still remains the most dangerous day of the year on record for Californians on foot near traffic.

According to Insurance Journal, California has just under a $2 trillion thanks in part to a multi-billion dollar boost from the property/casualty insurance industry.

The California insurance report, written by the Insurance Information Institute and available on the Insurance Information Network of California Web site, found that:

• California employs more insurance professionals than any other state. Property and casualty insurers provided 297,431 California jobs in 2008, or more than 10 percent of the nation's insurance workforce. California insurance jobs accounted for $20.7 billion in compensation. In the previous year's report of 2007 data, P/C insurers provided approximately 300,000 jobs in the state, accounting for $21.4 billion in compensation.
• In 2009, property and casualty insurance claims payments totaled $28.7 billion in California, while life insurance claims and benefits payouts in California totaled almost $41.8 billion. P/C claims payments totaled $30.7 in 2007.
• California collected $2.05 billion in premium taxes from insurers in 2009, nearly double that of the next leading state. In 2007, California collected $2.2 billion in premium taxes, nearly 15 percent of the national total.
• There are more Auto Insurance Policies in California than in any other part of the country.

If you own a restaurant you will need to become familiar with Senate Bill 602. This is the California Food Handler Card bill. This bill requires most of the state’s restaurant workers to be trained and certified in proper food handling by July 1, 2011. The legislation that created the law, Senate Bill 602, is aimed at reducing kitchen-to-table illnesses at California’s restaurants. A food handler is defined by the law as a person who is involved in the preparation, storage or service of food in a food facility. The Sacramento Bee reports that employees pay $15 for the program and the exam. The 2½ hour training program consist of a short course, either self-directed online or led by a trainer, and a test on the elements of food safety needed to handle and serve food, including:

• Washing hands with soap and water before preparing food.
• Thoroughly cooking meat and poultry.
• Avoiding cross-contamination of food.
• Reporting suspected food-borne illnesses to local health authorities.

Online courses will be available through The National Restaurant Association ( www.restaurant.org) and food safety website www.ServSafe.com. The food handler law was modeled after programs already in place for years in San Diego, Riverside and San Bernardino counties where foodborne illness outbreaks have decreased by 79 percent since the implementation of those measures, the bill’s backers said. These counties will be exempt from the new law. Others exempt from the law include certified farmers markets, school cafeterias and groceries and food facilities that provide in-house food safety training programs approved in other states and that are offered free during normal work hours. Food facilities subject to collective bargaining also are not covered, though the California Restaurant Association estimates that just 1-2 percent of the state’s restaurant workers are unionized. You can find additional information about this bill by going to the California Restaurant Association website www.calrest.org.

The California Department of Motor Vehicles (DMV) has announced they will start issuing a newly designed license said to be more secure. The design will be new for both California driver’s licenses and ID cards. The new cards will have security features, along with a different look and feel.

"The new security features, coupled with advanced technology, make California driver licenses and identification cards one of the most secure identification documents in the country," said DMV Director George Valverde. "We are confident that they will be well-received by residents, businesses and law enforcement officials."

The new cards are equipped with the latest in document security technology and have several features to protect them against tampering, fraud, and counterfeiting.

The same information as on a previous license or ID card will be printed but the new card will have easier readability. Some of the new features include:

- A vertical layout for persons under 21

- The cardholder's date of birth and signatures that can be felt by touch

- Images that can be seen only with the use of ultraviolet lights

- A 2D bar code on the back of the card that replicates and verifies only the information on the front of the card (similar to the current magnetic stripe)

- Laser perforation outline of the California Brown Bear, which can be seen from the front of the card when a flashlight is pressed against the back of the card.

For more information on the new driver license and ID card view the California DMV website. For your Los Angeles Auto Insurance needs check with Sutherland-Scherff for a policy quote.

Officials in the city of San Marcos, California have been keeping a color-coded map showing the risk of wildfire danger a secret. Why? The officials believe showing the areas that are at the greatest risk will give reason for insurance companies to drop policies and raise rates.

City leaders told the North County times that a copy of the map which was circulated left out the shadings of “high-risk” and “extreme wildfire hazard” areas. Instead of differentiating sections based on risk, the circulated map just had green shading over any area that was at risk, not categorizing the risk from low to high.

Fire Chief Todd Newman, City Manager Paul Malone and other city officials said that the color-coded map was intended for internal planning use. It was never made public out of concerns that insurance companies would raise rates or cancel policies for Coronado Hills and Attebury residents, the two areas said to be at the highest risk.

The color-coded fire-risk ratings went from "low" and "moderate" to "high," "very high" and "extreme."

Coronado Hills and Attebury were rated "extreme." The communities of Solar, Esplendido, Rockoff, Via Allondra and Stone Canyon/Discovery Hills were rated "very high."

Nordahl, La Cienega, Tamara/Sunshine Mountain, Calle Marie, Rancho de Oro, Santa Fe Hills and La Plaza ranked "high." The city's five other communities ranked "low" or "moderate."

Be sure to check if your home is in a high risk area for a wildfire. If you find yourself at risk check fire insurance quotes at a San Marcos or Los Angeles Insurance Agency so your home and belongings will be covered in the event of a blaze.