Buyer Beware: Cheap Insurance is Cheap for a Reason

Cheap InsuranceWhen it comes time to securing insurance for your company, it’s smart to shop around to see what options you have. Everyone wants to save money. But cheap insurance may cost you more than you think.

As is often the case, cheap doesn’t always mean a good deal. Going for the cheapest option without looking into what your plan covers can cost you a lot of money in the long run.

Here are some problems you need to be aware of if you purchase cheap insurance.

Gaps in Coverage

When you pay less, you’re generally covered for less. Compare the coverage from all your quotes to make sure you’ll be covered for all scenarios. You’ll most often find that budget insurance options don’t cover what you need.

High Deductible

If you’re paying a low amount per month for insurance, you might end up paying a lot if you ever need to use it. Make sure you pay attention to the details so you know what it’s really costing you. In a situation where you have to use your insurance, you don’t want to added stress of spending a lot of money to do so.

Low Payout

Some insurance companies have a low cap of what they are willing to pay out in a year. The worst of them are in the low thousands. If you end up in a situation where you need to pay $100,000, your insurance might only cover 1% of that.

Unhelpful Customer Service

If you’re only paying for budget insurance, you can expect cheap customer service. Insurance can be complicated, and having someone at your insurance company to help navigate your problems and answers questions can be a lifesaver.

Unhappy Employees

Cheap insurance passes problems down to your employees. When your business’s health insurance coverage or workers comp doesn’t help your employees to the extent that it should, they are going to come complaining to you. Expect higher turnover and low satisfaction when you purchase cheap insurance.

Are you currently looking for insurance for your company? We’ve put together a guide on insuring your new business.


Coverage Gaps Tip Sheet


Voyages to Cuba Bring Uncertainty

Map of Cuba

Florida boaters should be cautious before making plans to navigate to Cuba.

On September 18, 2015, The U.S. Department of the Treasury released new rules surrounding U.S. travel to Cuba. The administration lifted the prohibition on boating to Cuba and Cuban waters. While the intrigue is enormous, Florida boaters should be cautious before making plans for such a Caribbean voyage. Although the U.S. government has liberalized the rules, there are many unique conditions that should be considered; political risk, crime, navigational limits available on current insurance policies, just to name a few.

The new regulations bring the marine insurance industry into uncharted territory. Insurance companies are not yet offering coverage extensions for destination Cuba. The reasons that the carriers may be slow to respond are as follows:

  • Conflicting laws and regulations between U.S. agencies
  • Lack of familiarity with Cuban laws which may govern in civil and criminal matters
  • Lack of knowledge and limited opportunities for subrogation
  • Additional expense of sending marine surveyors and claims adjustors
  • Unknown/adequate repair facilities
  • Access to repair parts
  • Towing charges if the vessel had to be repatriated for repair
  • Technical complications associated with endorsing in force policies
  • No underwriting data to base rates on

It is uncertain when insurance companies will offer this coverage to the recreational boater. In the meantime, boaters are reminded that property and liability coverage only applies to claims which occur within the navigational limits stated in the boater’s policy. Wallace Welch & Willingham will stay attuned to this situation and will continue to post updates.

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Are you Covered for a Business Interruption?

Business Interruption Insurance - Be AwareRecent heavy rainfall reminds us that not all natural disasters are brought on by hurricanes. Due to heavy and constant rains, flooding has damaged much of Florida’s roadways. Last week, Governor Rick Scott declared a state of emergency for five counties. This included three bay area counties; Hillsborough, Pinellas, and Pasco.

Damage like this creates an immediate need for all for all companies to take a closer look at their insurance coverage. Would you be sufficiently covered in case of a natural disaster? States like Florida and other coastal locations are particularly susceptible to devastating losses from flooding, tropical storms, hurricanes.

“75% of businesses suffering major property damage are out of business within three years because they did not have a contingency plan or the proper financing to see them through the period of recovery.”

What is Business Income Insurance?

When it comes to managing your property risk, business owners should be concerned not only with a loss to their tangible property but also to their income. Natural disasters, fires, and other insured perils often result in an interruption of the operations of a business, which typically lead to a loss of income.  Business income insurance is designed to cover your economic damages when you experience a covered loss that results in a suspension of your business. A suspension of your business can mean either a slow down or a cessation of your business activities. Loss of income is defined in most policies as your net profit as well as continuing expenses, including payroll.  Extra expenses that you incur to recover from a disaster can also be covered.  You might think of it as disability insurance for your business!

What is Included in a Business Interruption Insurance Policy?

  • Compensation for lost income if you are no longer able to operate your business due to a disaster-related damage that is covered by your current property insurance policy.
  • Profits that would have been earned had the disaster not occurred. These numbers are based on previous financial records.
  • Operating expenses that must be paid even if the business is temporarily closed. Examples are utilities, rent, etc.
  • Expenses from a temporary location for you to operate out of while repairs are being made to your permanent location.

Business interruption insurance is one of the most valuable policies a business can have, yet it is often overlooked. Contact us today to learn more about this valuable policy.


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6 Ways to Protect Your Home During Vacation

Protect your home and relax.

A safe home, will leave your vacation worry free.

Florida! The land of vacation destinations! Going on vacation is a great way to relax and take your mind off the daily grind. Don’t let the excitement of an upcoming trip prevent you from securing your home against burglars. Consider the following tips:

  1. Make sure all outdoor lighting works properly. Replace any batteries or bulbs if needed.
  2. Have a friend, family member or neighbor check on the house often and collect mail. Also consider having someone mow your lawn, if necessary.
  3. Place automatic timers on your lights and set them for different times in different rooms. This will give the impression that you are home and doing things in those rooms. Also consider setting a radio to a timer so that thieves are deterred by voices in the home.
  4. Do not leave your valuables such as jewelry, art work or electronics sitting out in plain view. Hide these items in inconspicuous places such as old laundry detergent boxes.
  5. Take a photo inventory of each room of the house before you leave in case there is a loss.
  6. Try not to be too specific when posting about your upcoming trip on social media sites. Exact details will give criminals plenty of information about the perfect time to break in. Resist the urge to “check in” to your vacation destination. Nothing says your not home like a check in from miles away. (This is also a good tip for anytime you are out of the house.)

As always, check to make sure your homeowners insurance coverage is up-to-date before the trip. Contact you W3 advisor if you have any questions about your homeowners insurance.

Night Driving Dangers

A little extra caution can go a long way while driving at night

Summer has ended, and while fall and winter have their own pleasures — including camp fires— longer nights mean increased danger on the roads.

You might think you drive just as well at night, but consider this: Even though nighttime driving accounts for just 23% of vehicle miles traveled, more than 50% of fatalities for vehicle occupants 16 and older occur between 6 p.m. and 6 a.m., according to the National Safety Commission (NSC).

Because we’re big advocates for safety at WWW, we thought it would be helpful to take a look at why night driving is more dangerous, and what you can do to decrease that danger.

What’s dangerous about night driving?

  1. Decreased vision. We won’t go into all the biological details, but different parts of the eye (such as iris, pupil and retina) work differently at night. Your peripheral vision is actually slightly improved, but it’s more difficult to focus on objects ahead of you. And traveling between well-lit areas and darker roads creates issues as well.
  2. Driving too fast for your headlights. Depending on vehicle speed and headlight setting, many people “over-drive” their headlights. That means, by the time they see something on the road, it’s too late to stop in time to avoid it.
  3. Impaired judgment. Whether due to drowsiness or the use of alcohol or drugs, it appears that drivers at night often don’t use good judgment. According to the NSC, 66% of fatalities at night involve vehicle occupants who weren’t wearing seat belts.

So what do you do?

Sometimes, there’s no way around driving at night. So here are some tips to help you make a safe trip — whether you’re just running to the store, or you’re headed across town.

  1. Make sure your vehicle’s lights are in good working condition. And not just headlights, but turn signals, taillights, etc.
  2. Avoid speeding. Leave a bigger cushion between you and other cars than you would during daylight hours. Leave yourself more time for the trip.
  3. Be more aware of your surroundings. You shouldn’t be using your phone, messing around with the radio or trying to find something on the floor while you’re on the road anyway — and distractions are even more deadly at night. 

Of course, if you’re not comfortable driving at night, the best thing is to avoid it altogether if possible. There’s nothing wrong with asking for a ride from a trusted safe driver or waiting for the sun to come out!

Contact Us!

 At Wallace Welch & Willingham we can work with you to make sure you’ve got the coverage you need, while at the same time using all possible credits and discounts to make that coverage affordable. Just give us a call at 727-522-7777. We want to help you meet your goals, and make sure what’s important to you is protected!