Does your insurance policy give you proper coverage?

Did you know that just because you have a basic insurance policy, you are not necessarily covered? Often times, when people go shopping for insurance they think that all of the policies are in essence the same. This myth is very dangerous because insurance policies differ a lot by their exclusions and what they will and will not actually cover. Today we are going to teach you what to watch out for and what to know when buying an insurance policy so you do not run into the issue of not being adequately covered.

Also, when most people go shopping for insurance, they find themselves looking for the cheapest rate and the cheapest rate only. This may sound obvious, but it is important to remember the reason you are buying insurance: to be protected. This is not to say that the best insurance is the most expensive by any means, however, when looking at a policy it is vital to look past the price tag and to see what exactly you are paying for. In this article we are going to teach you what to consider when buying insurance best for you and your business while also not breaking your bank.

1. Meeting the State Requirements Is Not the Only Priority

Whether your business is construction, farming, cannabis / hemp, or something in between, the state that you operate in has requirements as to what coverages you need to have. In fact, each state has its own legal minimum insurance requirements depending on what type of business you own. And the sort of insurances required range from professional liability to auto to workers compensation. In other words, your insurance policy has to fit at least minimum criteria set by the state. However, what most people fail to realize is that the minimum requirements is not all that your business needs to be protected. When shopping for a policy you should look for policies that have more coverage than only what is required by the state because it is important for a successful business to have insurance that is comprehensive and inclusive.

At the end of the day, going to the extra mile with your insurance policy will pay off in that you will have peace of mind that your business is protected from a variety of claims, and not just the basics. Your business is important, and it should be treated like the asset that it is.

2. Read the Fine Print

Insurance policies can be difficult to navigate and understand at times. There is a lot of writing and legal terms that can be very overwhelming to customers. Insurance policies include a lot of information to read and comprehend, as well as important details to note. You might even find yourself skimming policies at times just to get the “jist” of it. This is a huge mistake that you need to stop making right now. The fine print is the most important area in your policy to understand and be aware of. Why you might ask? The fine print is where all of the exclusions or limitations of your policy are listed. It is important to understand what your policy excludes, because often times your policy will have exclusions that you actually need covered! Let us explain.

You own a contracting business, and you need to obtain Contractors Equipment Insurance. When shopping for a policy, you find one with a decent price and the basic necessities so you choose to buy. However, when you read the fine print, you find that the equipment insurance excludes your equipment being stolen, or it doesn’t cover equipment over a certain price point. Both of these exclusions are things that you would want an equipment insurance policy to cover. It would not make sense for your contracting business not have equipment insurance that covers your most expensive equipment, or in the case that it is possibly stolen. If you hadn’t read the fine print, you may not have seen these exclusions and you would have been bound to a policy that has you under protected.

Exclusions that go against the nature of the insurance policy are more common than you may think, and that is why it is so extremely important to read the fine print with an insurance specialist and to check that the exclusions on the policy don’t go against any of the coverages that you want. This goes for all types of insurance policies as well. We said it before and we will say it again, insurance is all about protection! So take extra precaution with the fine print.

3. Buy A Policy For Protection and Not Just Licensing Purposes

(This tip is similar to that of #1.) When owning a business, there are often licenses you may need or want, all depending on what field you are in. Obtaining insurance is generally one of the top requirements when in the process of trying to get a license. A lot of the time people that are looking to obtain a license as soon as possible are trying to get insurance for the sole purpose of satisfying the requirements that of the state. Use this requirement to your advantage, and put time into getting an insurance policy with all of your desired coverages for a price that you can afford. The Cannabis Coverage Company insurance specialists say that, “Insurance is for the protection of your business and yourself, so you should get a policy that offers adequate coverage in order to do so. With so many people in a hurry to get their licenses approved, they often skip getting the proper insurance just so they can move along the process faster. Take the time and slow down for this step. It is important.”

At the end of the day, when you do obtain your business license and you are operating, you will want to have a comprehensive insurance policy that protects your business from possible claims. If your business is to run into a legal issue and you don’t have the proper insurance coverage, you will regret it and your business will take the hit. Don’t let this happen to you! It always better to more protected than less.

Understanding Your Policy

Insurance is a tricky topic for some, and when it comes to commercial and business insurances it becomes increasingly harder to navigate. It is for this reason that it is so important to have an agency behind you that takes care of you and has YOUR best interests at heart. At Lions & Coventry Insurance Services, we understand that you want what is important to you to be protected. Our highly trained insurance specialists are able to help you go through your needs and pair you with a policy that has all of the coverages you need, without the unnecessary additions or those pesky exclusions. For more information on finding the right coverage for you and your business, call us today!

A lot of contractors call our office asking if their contractor’s insurance policy covers their tools.

They think, of course, that it must. What insurance policy wouldn’t cover one of the most important and useful aspects of your business? As a contractor, without your tools you cannot perform the work you are doing!

We educate our clients on what their policy covers, and they know the answer to this question when they get their policy.

Other insured’s, who work with different agencies, might not know the answer to this question. We have seen in many cases this gap in coverage not disclosed to contractors in an effort to get them the cheapest policy possible. Or maybe it was mentioned, but not in a way to understandably expose the significant risk. This is because most Business Owners Policies (BOP) or Commercial Package Policies (CPP) will cover property that is housed at a specific business location, but does not always include the equipment and tools that travel with employees to be used at job sites.

So, how can you cover your tools with your insurance policy?

Inland Marine Insurance is a policy that, in its simplest form, covers equipment in transit. It is often purchased by companies that do freight shipping for a living, but is sometimes overlooked by those who travel with equipment as a part of their job.

If you’re not concerned with the replacement cost of your hammer, drills, or nails, consider the cost of the equipment you rent. A bobcat, or tractor, is a good example as these are commonly used by contractors.  It is always an option to purchase insurance directly from the rental facility, but if you have your own policy in place (you can set specific limits on the rental coverage), and you rent this equipment regularly, you can save hundreds of dollars on insurance coverage costs.

And it isn’t just limited to contractors!

Say you repair computers, and you go pick up these computers from your customer’s houses – Inland marine can protect this equipment while it is in transit and in many cases while it is in your warehouse or repair shop.

When it comes to contractors, there are additional inland marine specialty policies you may want to consider. One example is Builder’s Risk. This type of coverage will protect materials and structures during new construction projects or renovations. An Installation Floater is another example of an inland marine specialty policy that may be a good policy to consider as well, as it will cover materials from the moment they are loaded into a truck until they are either installed or put to intended use.

Regardless, when it comes to your tools and your trade, have your insurance evaluated by a professional who understands your business. They can advise you on how to mitigate risks and find the policy that is best for you. Our experts are happy to help you at our office – simply give us a call at (916) 967-7715 for a free evaluation.

As of 2019, 11 states have legalized recreational cannabis use – Alaska, California, Colorado, Illinois, Maine, Massachusetts, Michigan, Nevada, Oregon, Vermont, and Washington.

While each of these states has their own unique framework for cannabis regulation, one thing is certain – they all need to have the right recreational cannabis business insurance coverage.

What policies are available for recreational cannabis business insurance?

Cannabis businesses face significant risk and obstacles. Some we would like to highlight for you are Theft, General Liability, and Product Liability.

Theft has been gaining attention in the cannabis industry, regardless of strict security requirements for recreational cannabis businesses. In California, Sacramento City officials asked commercial businesses to review their security protocols last January, after seeing a surge in cannabis business thefts in distribution centers. With banking solutions not quite in place, businesses hold a lot of cash, which make them prime targets for robberies. Adequate theft insurance coverage can protect from losses from burglary and robberies, helping you get back on your feet after an unfortunate event.

General Liability risks in a recreational cannabis business are similar to those of other manufacturing or agricultural businesses. Crop Failure, workplace accidents, property damage, and more are all common scenarios any of these businesses can face – and need to have a policy in place for. Depending on the type of recreational business you have, you may want to consider additional coverage for risk exposures you may face (A competent cannabis insurance expert can help you identify potential risks, call our office for a free consultation to find out what risks you may want to consider).

Product Liability is important for medical cannabis businesses, and especially important for recreational establishments. Ingestible products are gaining in popularity, as well as the risk of safety recalls. THC, a main compound in marijuana, has a psychoactive effect and if products are misrepresented, mislabeled, or harm an individual it is opening up a business for litigation.

Some states don’t require all these insurance products for your business, but we still highly recommend them. Watch your recreational cannabis business insurance policy closely as well – many insurance companies purposely exclude protection for Schedule 1 substances, which in the event of a claim would nullify your protection.

That being said, there are some companies that are working intimately with the cannabis industry to ensure that the unique hazards in this emerging industry are understood and accounted for in insurance policies. We at Lions and Coventry Insurance Services have taken time to build relationships with these companies to help advise them on what clients need. We take your protection seriously, and invite you to give our office a call for a free review of your policy – We will make sure everything you need is covered, and if not, offer solutions for you. Contact our office with any questions you may have, we would be happy to help!

Insurance is essential for every business, regardless of whether you are in the legal cannabis (THC) industry or industrial hemp (CBD) market.

The type of insurance you need depends on your business activities, and the risks you are exposed to. All states have specific laws in regards to insurance requirements for different business types. For example, in California, all cannabis businesses are required to have a Commercial General Liability Insurance policy with a minimum of $1,000,000/$2,000,000 in coverage. Hemp, however, is a new industry in California and has no requirements for insurance, however, you will find most retailers or distributors will require businesses to have insurance covering their products for liability before they will allow the business any space on retail shelves.

Insurance regulations are governed by a state regulatory body and each state can set its own requirements. Each state program has their own name, such as “The California Department of Insurance” or “Office of the Insurance Commissioner” (Washington). You can look to these regulatory bodies for information on what you need for your specific business.

Some insurance is a no brainer – All commercial vehicles need to have Commercial Auto Insurance, all businesses that have employees are required to have General Liability Insurance, etc. These are not business specific. Beyond these, when we look at specifically the THC and CBD market, we need to think about what makes the business unique and what it is exposed to.

Beyond the legal requirements based on your place of business, when making insurance decisions regarding your company it is in best practice to look at what could happen financially within your business, and the loss you would retain. For example, in California Product Liability is not a requirement for Cannabis Businesses, but if someone were to get sick using your product, you could be at risk for hundreds of thousands of dollars in medical bills and damages. With Hemp not requiring any insurance currently, a business owner needs to take a good hard look at what they may need – equipment breakdown, crop coverage, and theft may be a few to consider.

Things also can change year to year, as new insurance regulations are passed. Your business may have grown this year, or new laws passed can affect your business insurance requirements for both THC and CBD based businesses. Each year you will want to review your policy to ensure that you are up to date with your coverage and there are no gaps in your insurance policy.

Overwhelmed? Its okay, we are here to help. We have specialists in our office that only work on Commercial Cannabis and Hemp Insurance, and can assist you! Give us a call at (916) 967-7715 today!

Contractor Insurance

There are tons of benefits as a contractor. You have a higher earning potential, you get to choose your own assignments, hours and locations. You call the shots. Since you are your own boss, there’s a lot to consider to run a successful business and one of the most overlooked aspects of being in business for yourself is preparing for the unforeseen.

Contractor insurance can protect you and your employees…

Have you heard of OSHA’s “Fatal Four?” The most common incidents that even the most cautious contractors face include 1) falling from a great height, 2) getting electrocuted, 3) getting hit by an object and 4) getting caught in or between machinery. While you may take all the safety precautions to prevent these things from happening, the reality is accidents happen. If you’re flying solo and you get hurt, your business stops. If you have hired help, a single claim and perhaps even a lawsuit will eat up precious time and hard earned revenue. Either case is not good and you can quickly find yourself in a bigger heap of trouble than you ever expected. The truth is, you have a lot more than bodily injury to worry about. Damage to property, loss/damage to equipment and tools and claims of negligence from clients are real reputation killers.

Insurance brings peace of mind to clients…and you!

While insurance isn’t exactly the most exciting thing to talk about, it’s important to understand that being thoroughly insured offers you a huge advantage. In the back of each clients’ mind, they are wondering, “what if something goes wrong?” Both you and the client know that something unexpected can go wrong, and if you say otherwise, you might as well have your fingers crossed behind your back. It doesn’t take much. Dropping a hammer, scraping a counter top, or a false claim of property damage that was really there all along can sink your reputation. The unexpected happens and most clients will remain pleased with your service if you can fix the problem. But, if you can’t, things can get ugly. Fast.

Where we begin…

The first step that we will take with you is to make sure that we classify your business correctly. Do you specialize in pipe fitting, framing, or are you a “one-stop shop” that can fix and build everything? This step is extremely important because if your business is misclassified, that alone can become grounds for a denied insurance claim. This is the last thing you want when an accident happens, or when your last client is blaming you for damage you aren’t responsible for. Your reputation is what gets you business and if you can’t maneuver when the unexpected incident surfaces, you’re sunk. As minor of a topic as this might seem, it is extremely important that you are speaking with an agent who understands the business of being a contractor because if you are classified as an “exterior/interior painter” and your business would better be categorized as a “handyman” service, you may find yourself without the coverage you were relying on.

Determining Best Contractor Insurance Options

Once we know about the services you provide, it’s time to figure out how these services affect your coverage. This is where specialization matters. You really need someone who understands the difference between a bolster and a boning rod. If the agent does not understand what you actually do, they will not be able to determine what coverages you need or don’t need for that matter. That’s right, we want happy clients, so if your business really doesn’t need a particular coverage, we’ll take it off the list.

How Policies Work

If you’ve been searching around for different insurance coverages you may begin to wonder, do I really need five different insurance coverages? Can’t I just get one policy that covers it all? So here’s where working with a contractor insurance specialist comes in…

A single insurance product contains both what it covers and what it doesn’t cover. Your agent has to find a different insurance product that fills in the gap of what’s not covered. While this may seem strange, it’s just how it works. We understand that you want to sit around reading insurance jargon all day long, which is one of the advantages of letting us handle all this for you. We’ll ask the right questions to get what we need and use our expert knowledge to get you taken care of… And don’t worry, we’ll make sure you’re clear on what you’re getting. Each contractor has unique exposures and it’s important to accurately pinpoint those risks in C

Coverages to Consider:

We have provided to you a quick list of some of the coverages available to you.

General Liability Insurance

Accidents are common at work sites. A toolbox could scrape a parquet floor or a child could trip over a hammer. General Liability may cover your client in these scenarios, helping them to pay for repair expenses, medical bills, or legal costs if a third party sues them.

Property Insurance

A contractor who has an office or storage facility for their equipment should consider Property Insurance. Your equipment is expensive and you absolutely need it to do your job. If anything happens to your property such as theft, fire or vandalism and you’re property and equipment are damaged or destroyed, the expenses may be too great to recover from.

Inland Marine Insurance

Inland Marine Insurance covers equipment as it travels from storage to work sites. Don’t let the “marine” part fool you…this coverage isn’t just for water transport. Collisions and cargo theft are common and this is the coverage you need in those cases.

Builder’s Risk Insurance

Builder’s Risk
 can cover a structure that’s under construction against loss or damage. For instance, if a strong wind knocks over a garage in progress, Builder’s Risk may be able to compensate the owner.

Contractor’s Insurance

Contractor’s Insurance covers “mobile equipment” such as backhoes and excavators.

Commercial Auto / Hired and Non- Owned Auto Insurance

An Inland Marine policy can protect the tools in the truck, but what about the truck? Whether they drive their personal auto, a borrowed or rented truck, or a business-owned vehicle, a handyman may need Commercial Auto or Hired and Non-Owned Auto Insurance.

Umbrella Insurance

Umbrella Insurance boosts the coverage of liability
policies by paying for damages that exceed the underlying policies’ limits. This can be especially beneficial to 
a handyman when a client requests they have more GL coverage.

License Bonds / Permit Bonds

Some municipalities require License or Permit Bonds (a kind of surety bond) before a handyman can contract to do work. It acts as a guarantee
that the handyman will fulfill their obligations and follow building codes.

If you’d like to learn more about how contractor insurance can help you, or have an existing policy that you’re not too sure about; Contact Us today and we’ll connect you with a contractor insurance specialist to help you out!

Cannabis Surety Bond – California cannabis business owners are now required to establish a surety bond and here’s what you need to know…

The Cannabis Surety Bond (some are calling it the “$5000 bond”) is required for new cannabis operations to obtain their license.  If your business is already up and running, it’s important for you to comply because penalties may involve significant fines or the state may even go to the extent of shutting down your business.  Not worth the risk.

What is it for?  The short answer.

The Cannabis Surety Bond is an agreement (or guarantee) between you, the business owner, and the government.  In the event that the State incurs an expense or a cannabis business owner fails to pay sales and/or excise taxes, the State may choose to liquidate the bond in order to compensate for the loss.  This bond also acts as a “performance guarantee” for cannabis operations who are constructing new facilities to ensure satisfactory completion of the project.

Details of the Cannabis Surety bond can be found in Section 26051.5 on the California Legislature  website as well as the Bureau of Cannabis Control.

One of the advantages to working with us here at The Cannabis Coverage Company is that we can manage all of this for you.  Laws and regulations change frequently in the cannabis industry and, unless you enjoy reading legalese, you can let us maintain your policies for you.
Contact us today if you have questions or to learn about what coverages are right for you.

Equine Insurance

It’s no secret that owning a horse is an expensive endeavor.  On top of that, you have invested a tremendous amount of time and effort training and caring for your beloved equine and your horse represents both a financial and emotional investment.  Equine Insurance provides coverage for a variety of costs and expenses related to the upkeep of your animal. 

Our policy options include:

• Major Medical Coverage* – to provide reimbursement for the cost of medical and surgical bills caused by accident, sickness, or disease.
• Surgical – Unlike major medical policies, which cover all types of veterinary costs, surgical policies only come into play if your horse needs an operation.  Surgical Equine Insurance can cover expenses directly related to the surgery such as fees related to the procedure, anesthetics, etc. 
• Full Mortality and Theft – to insure your animals against death as a result of injury, illness, disease, humane destruction, transportation, or theft.
• Personal Liability – provides coverage in the event that your horse injures someone or damages property.
• Loss of Use – for compensation in the event your horse becomes totally and permanently unable to perform the duty for which it was insured.
• Stallion infertility – for coverage in the event your stallion becomes permanently incapable of producing offspring due to an accident, illness, or disease.

Finding the right coverage options for your horse doesn’t have to be difficult. At Lions & Coventry Insurance Services, one of our insurance specialists can help educate you on the different coverage options and rates available for your special animal, and together you can build the perfect policy that fits the needs of you and your horse.

*It’s important to know that Major Medical Coverage is an addition to the Full Mortality policy and cannot be purchased alone.

Here at Lions & Coventry Insurance Services, we will take the time to discover your needs and craft the right Equine Insurance policy that suits both your needs and your budget.  Contact us today!

Food Truck Insurance

Are you considering joining the many savvy entrepreneurs who’ve opened up a restaurant on wheels?  According to FoodTruckr, we are in the “Golden Age of the Food Truck” where the sector is growing at a whopping annual  7.9% over the past five years.  While the freedom of running a food truck is fun, it’s important to know that you are dealing with both a business and a vehicle.  There are a number of risks involved and having the right food truck insurance policy can keep your kitchen successfully rolling for years to come.  Here are some important things you should know!

What types of food truck categories can be covered?

• Mobile Food Trucks
• Lunch Trucks
• Catering Trucks
• Concession Trucks
• Vending Trucks
• Ice Cream Trucks

If your food truck doesn’t seem to fit any of those categories, don’t fret.  Here at Lions and Coventry, we have a lot of available options and can customize policies to fit your business.

What about food trailers?

If you have a food trailer, the vehicle used for towing will need to be insured on a commercial auto policy.  It’s important for you to know that a personal auto policy will not suffice, as most do not extend coverage to a food trailer, nor your vehicle while it’s being used for business.

What types of food truck insurance coverages should I consider?

Here are the three essentials…

Commercial Auto:

Your vehicle is being used for business and it’s highly likely a personal auto policy will deny coverage if something goes wrong while you’re using your vehicle (and/or trailer) for business.  Keep in mind that this coverage is quite useful because it will not only protect you on the road but also offers coverage for fire, theft or vandalism as well.

Commercial General Liability Insurance:

General liability insurance provides coverage for things that happen to customers during the course of business.  If a customer becomes ill, sustains an injury, or damages property general liability can protect your business.  If you find yourself in court, even if you aren’t negligent, this policy can cover your legal representation and other court-related fees.

Workers Compensation:

If you have employees, you absolutely need workers compensation.  While general liability is designed to protect you in incidents related to third-parties, workers compensation provides coverage for your employees’ medical bills and lost wages if they happened to be injured on the job.  It’s required in most states and is an important safeguard to protect against potential lawsuits filed by employees.

There are a number of other coverages available for you to protect your food truck business including, bodily injury insurance, property damage insurance, equipment breakdown coverage, medical payment insurance and more.  Food truck businesses vary quite a bit, which is why it’s important to work with an experienced agent who will take the time to learn about your business and make sure you have what you need to withstand the ups and downs of business.  Contact us today to discuss which food truck insurance options are best for you.