Episode-2462- Listener Feedback for 7-1-19 — 2 Comments

  1. For the caller with insurance questions: There are 2 policies you should have. The first is general liability. Your biggest potential liability from cleaning out basements and attics is breaking something else in the house. If you are moving something large you could bump a wall and ding the sheetrock or knock something over and break it. General liability insurance for your small business will only cost a few hundred dollars per year. The second policy you should have is commercial auto. Anyone who uses their car or truck in their business should insure their vehicles for that use. It’s more expensive than regular auto insurance but it comes with much higher liability coverage. In addition to normal driving hazards you are probably backing a truck or trailer into some tight residential driveways. Backing into things is more common than most people realize.

  2. While I can’t answer the question IF the caller should purchase insurance, there is a specific type of coverage they ought to consider. I’ll try to keep this at a basic level so listener’s eyes don’t glaze over with boredom.

    General liability insurance generally covers 2 types of claims.

    First, products and completed operations. The caller probably doesn’t need to worry too much about this type of coverage for what they’re doing.

    Second, premises and operations. This is, in my opinion, where the caller’s biggest exposure to liability is with the exception to the next paragraph. This would cover a situation where they were negligent on the premises of where they’re working and create an unsafe environment where bodily injury to another person. Think slip, trip, and falls.

    Additionally, the caller eluded to a situation where they break an item in the home. Many general liability policies have an exclusion for “care, custody, and control” situations. For example, the caller picked up a TV to get it out of the way so they can more easily access the items to be removed from the home. While moving the TV they drop it and break the TV. Many liability policies would not cover the TV because it was in the caller’s care and control when the loss occurred.

    However, coverage for this type of claim can be purchased with what’s commonly referred to as a “rider” or “endorsement”. The type of endorsement needed on a liability policy for this to be covered is called Voluntary Property Coverage. Some insurance carriers may call it something a little different but the concept is the same. There is likely to be an occurance and aggregate limits on this type of coverage. A $5,000 occurance limit with a $20,000 aggregate limit is fairly common and can be somewhat difficult to find or buy higher limits.

    Only talking with a knowledgeable and experienced insurance agent or broker will help determine if insurance is needed, how much is needed, and what type of coverage is needed. I HIGHLY recommend talking with a broker who can quote a number of insurance companies for the best price and coverage as opposed to just one company (called a captive agent). If the agent gives you the used car salesman feeling, RUN AWAY!