Coinsurance Explained

Most property insurance policies contain a coinsurance provision. A coinsurance provision requires the insured to insure the covered property to a specified percentage of it’s full value, typically 80, 90 or 100 percent. If  there is a loss, and the limits purchased are less than what is required by the coinsurance clause, the loss recovery will be limited to that same percentage of loss as the ratio of insurance amount carried to the insurance amount.

Have you ever wondered what the coinsurance clause on your policy means?

Coinsurance may well be one of the most confusing and misunderstood terms in insurance.

Coinsurance is the percentage of value that the policyholder is required to insurance   If you insure your property for less than that amount your insurance company imposes a “coinsurance penalty” once a claim is filed.  The value is determined at the time of the loss and if the amount of insurance is found to under the stated coinsurance percentage then a penalty is applied reducing the claim payment.

According to the independent Insurance Agents of America, most business policies include a “coinsurance” clause, determining what percentage of the value of your property must be insured in order to be fully reimbursed for a loss.

So how do we Define Coinsurance?

Coinsurance in a commercial property policy does not come into affect/play until a loss occurs. When this event/loss happens, the replacement cost is assessed at the time of the loss to determine the limit of insurance that should be in place. Depending on the coinsurance percentage selected in the policy, an insured may only have to cover up to a certain amount to avoid a coinsurance penalty.

How does Coinsurance Work?

Let’s say you have a building that you believe would cost $100,000 to replace and a coinsurance penalty in your policy of 80 percent. You insure the building for $80,000 thinking you have fulfilled the coinsurance clause. A fire loss causes $60,000 worth of damage so you submit a claim. Your insurance company subsequently determines that the replacement cost of the building is actually $150,000..

What is a good example of Coinsurance?

To determine how much to pay on the claim, the insurer divides the amount of insurance you purchased ($80,000) by the amount you should have purchased (80% of $150,000 or $120,000). The result (two-thirds, or $40,000) is the amount of your claim the insurer will pay.
If the building had been insured for at least $120,000, the insurer would have reimbursed you for the full amount of the loss. Coinsurance can be tricky and potentially cost you a ton of money if you under insure your property.


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FWCJUA – Florida Workers’ Compensation Joint Underwriting Association, Inc

Advanced Protection Through FWCJUA – Florida Workers’ Compensation Joint Underwriting Association, Inc If you have stumbled upon this webpage you’re either needing Workers Compensation Insurance through the FWCJUA (Florida Workers’ Compensation Joint Underwriting Association), aka JUA, or looking for someone to write your Workmans Comp. Either Way, we Can Help! The mission of the FWCJUA simply put is to “provide Workers Comp insurance for employers that are unable to buy in the standard (voluntary) market.” Basically speaking, this policy is for employers that: 

1. Have no prior insurance

2. Too low of a payroll for standard carriers

3. Too many losses

4. High experience modification

5. Can’t find Workers Compensation in the standard markets

If you fall into one or more of those four categories you are most likely eligible for coverage with the FWCJUA. There are some circumstances that can make you ineligible, but it is best to consult with an agent to discuss options. 

How Long Does The Process Take? 

The process can be cumbersome if you don’t have the proper paperwork in order before you start. This is not the type of insurance that you can purchase same day or even same week. The majority of the time the process takes 20 days and that includes the applicant having all the paperwork ready at the start of the process. Policies can not be bound online, so that means the applicant must have original inked signature and payment in full in the hands of the Association in order to bind the policy. FWCJUA does not have in-house financing, but outside financing is available through our agency partners.

What Are The Minimum Requirements?

Florida, like most states have the minimum requirement of bodily injury by accident $100,000 each accident, bodily injury by disease $500,000 policy limit, and bodily injury by disease $100,000 each employee. 

How Much Does The Insurance Cost? 

Workers Comp costs in Florida vary depending on payroll, class code, and if the corporation officer payroll is included or excluded. That being said, there are additional fees and premiums that the FWCJA imposes that drive the minimum premium to $1,403, before adding in rating factors such as payroll and class code. 

What Paperwork Is Needed To Start The Process? 

To expedite the process, you may begin compiling the necessary information to complete a formal quote. We do recommend contacting the office first to see if other options may be available. This list comes straight from the FWCJUA website: 

1. Tax ID

2. Description of business operations

3. Business locations

4. Contact information

5. Payroll estimates

6. Job duties of employees

7. Previous Workers Comp history

8. RT-6 or 941 Payroll Verification forms for the last four quarters filed with the Department of Revenue;

9. Exemption/Election forms on file or being filed with the state of Florida;

10. Experience Rating Worksheet generated by NCCI;

11. ERM-14 form (Confidential Request for Ownership Information) to be filed by the FWCJUA with NCCI;

12. Most recent Workers Compensation policy information page reflecting class codes and payrolls;

13. Loss runs valued within the last thirty (30) calendar days generated by the prior insurer(s) identifying your loss history and corresponding premium for, at most, the immediately preceding three years;

14. Certificates of insurance issued within the last thirty (30) calendar days for all subcontractors including those with leased workers regardless of exemption status;

15. State contractor’s licenses issued by the Florida Department of Business and Professional Regulation;

16. Contracts that particularly establish exposure, such as, but not limited to, employee leasing (PEO) arrangements, temporary employment agency contracts and franchise agreements;

17. Pending and current bankruptcy filings and documentation

18. Settlements related to prior Workmans Comp obligations;

19. Valid finance agreement if premium will be financed;

20. Full details on any voluntary market offers of coverage; and

21. Full details on any voluntary market coverage declinations.

 Experience! Don’t make the mistake of going with a rookie who has little or no experience dealing with the FWCJUA.  We understand the process and are ready to help you obtain the coverage you need, in a timely matter. insurance quotes

Long Term Care Description

Long Term Care


As you get older, there’s a good chance you’ll require some type of long term care services. Long term care provides assistance for you when you can no longer take care of yourself due to an accident, disability, or chronic illness. Long term care services are not typically covered by health insurance or Medicare and can include:

 In-home care

 Nursing home or skilled nursing facility care

 Assisted living facility care

 Adult day-care

 Alzheimer’s unit care

 Hospice care

Will you be able to afford long term care?

Long term care services are expensive:

 In 2017, the average cost to stay in a semi-private room in a nursing home for one year was $7,148 a month.* (Genworth)

How can long term care insurance help?

Long term care insurance provides many benefits:

Helps pay for the high cost of this care

Protects your retirement savings

Helps you stay at home for as long as possible

Helps you avoid becoming a financial burden to your children

Disability Insurance Description

Disability Insurance


Your ability to earn money and income is one of your most valuable assets you have, so it makes sense to protect it.

Think about the emotional and financial stress that you and your family would face if you should become unable to work and make an income due to injury or illness.

Disability income insurance will provide a source of income and financial peace of mind to help you meet expenses that don’t stop when your paycheck does. If you have a family that depends on you for income, disability income insurance will help keep food on the table, utilities running, and other monthly expenses controlled.

If you are a single person, you will also benefit from coverage. With your income as the only resource for paying your bills, disability income insurance will be there to help. Don’t assume that your employer offers disability coverage or that it is adequate for your needs. Some employers’ policies are limited to short term coverage that last only a few weeks, leaving you unprotected if you are disabled for a long time period. Relying on the government can also be risky, as some conditions are not approved for Social Security disability benefits due to strict guidelines and definitions of what qualifies as a disability.

With your income being so very important to keeping you and your family comfortable, make sure you protect your income!

Life Insurance Description

Life Insurance

 Does your insurance advisor work with 50 plus life insurance companies?  We Do!!

Life insurance will help take care of your family in case you should die prematurely. While life insurance can be complex, I will help you determine the type and amount that fits the needs of your family considering expenses like your mortgage balance, outstanding debt, and children’s education.

Purchase your life insurance policy early in life, live a healthy lifestyle, and guarantee yourself some of the best rates available.

Term life insurance policies provide affordable protection for a predetermined period of time. It is a very popular option because it provides insurance coverage at the stage of life you need it most, yet have the least amount of money to spend on it.Benefits of term life insurance:

  • Affordable
  • Level premiums throughout the term selected
  • Guaranteed coverage for the amount selected throughout the term
  • Convertible to a whole or universal policy without needing a physical exam or other further evidence of insurability if your needs change
  • Renewable in one-year increments with gradually increasing premiums and no need for a physical exam or further evidence of insurability when the term policy expires

Unlike a term life policy, a whole life policy protects you for as long as you live. Plus, your whole life policy builds cash value and the death benefit is tax free.Benefits of whole life insurance:

  • Permanent coverage for as long as you live
  • Level premiums
  • Death benefit is income tax free to your beneficiaries*
  • May be paid up before you retire and are on a fixed income
  • Lower premium policy option that you pay throughout your life
  • Cash value builds tax-deferred and can be loaned against for emergency funds as long as you meet certain conditions

*We cannot give tax advice. See a tax advisor for more details.

Universal life policies are flexible and allow you to adjust the amount of life insurance to keep pace with your current lifestyle. Plus, you can even adjust the amount and frequency of the premiums you pay, even skip payments if necessary.Universal life shares some of the same benefits of a whole life policy:

  • Permanent coverage for as long as you live
  • Death benefit is income tax free to your beneficiaries*
  • Cash value builds tax-deferred and can be loaned against for emergency funds as long as you meet certain conditions

Additional benefits of universal life insurance:

  • Withdraw funds from the policy if you meet certain conditions
  • Offers a level death benefit or an increasing death benefit depending on your needs
  • Offers a special guaranteed minimum interest rate. Any amount that you pay in excess of the amount required to maintain your life policy earns a guaranteed minimum interest rate in a conservative account, similar to a savings account, and builds your cash value