Commercial Insurance | Hinsdale and Illinois Commercial Insurance

Commercial insurance is like having insurance for your home and car. Commercial insurance provides insurance for your business which also needs protection. Now you may ask, why does a business need protection? Businesses are prone to risks, and this is covered by commercial insurance.

For example, if someone comes to your business and there is water or a loose step that would cause them to slip and fall, commercial insurance will cover these types of slip and falls and accidents. When someone is injured, the commercial insurance covers it under the commercial liability coverage. This type of coverage helps you with legal expenses and medical claims.

Now what if there was a fire in the business while you were not in the office? This type of coverage will cover the damage to the property, loss of property damage (for example, computers, chairs, desks, the list can go on). The commercial insurance also covers the business property and the unexpected disruptions. If your business had to shut down due to the renovation during the claim and while commercial insurance is helping them pay the repairs, think of the loss of revenue from the damage.

Therefore, commercial insurance also covers when the business has to shut down temporarily due to a covered event. Commercial insurance can help the costs of keeping things afloat during the shutdown of the business while the repairs are being made.

In the event there was a fire and there were funds (monies) kept at the business site, commercial insurance might also cover lost income, plus additional expenses for temporary setups or even the cost of running the business from a temporary location.

In simple terms, commercial insurance safeguards the business from unexpected events and helps business owners to continue to operate their businesses. Unexpected challenges can happen to any of us, like a flat tire when driving by, having the commercial insurance eases the burden on the owner and it lends a hand when things get rough.

Liability Insurance | Liability and Commercial Insurance Hinsdale, Illinois

Commercial insurance comes with many different types of insurances and its needs. Of the many recommenced commercial insurance is the liability insurance.
Liability insurance itself has many different types of insurances such as General Liability Insurance, Professional Liability Insurance with or without Errors and omissions insurance, product liability insurance, employers liability insurance, Directors and officers Liability Insurance and Umbrella Liability Insurance. These are a few common commercial liability insurances listed above. Each one of the liability insurance has a unique purpose of coverage.

Lets start with General Liability Insurance. This type of liability insurance covers a wide range of liabilities such as property damage, bodily injury, personal injury such as slander or libel.

Next, the professional liability insurance is designed for professions such as medical doctors or lawyers. It protects these professionals against any claims of negligence and Errors and Omissions when these professionals may miss any important data that was needed to be included.

The Product liability insurance is specifically designed for sellers of products such as manufacturers and distributors. If the product created at this manufacturing company was damaged and could have harmed someone, this will also impact the distribution company. Product liability covers these types of businesses. It covers their legal expense and also the damages results for the defective product that caused harm or injury.

The Employers Liability Insurance protects employers. It protects employers from legal liabilities that arise from employee injuries and illnesses while working. Employers Liability insurance is mostly included in as a part of Worker’s compensation insurance.

The Directors and Officers Liability Insurance, also known as D&O Liability Insurance covers and protects the personal assets of directors of a company. D&O Liability Insurance also covers legal expenses and damages when a Director is personally sued for alleged wrongdoing or wrongful acts in managing the company.

Finally, Umbrella Liability Insurance is similar to its name and provides additional coverage on top of all the underlying liability policies. This liability insurance covers against large and unexpected claims that could exceed the covered limits of the primary insurance.

Liability Insurance policies, like any other insurance will come with a deductible that will be the responsibility of the policyholder. The deductible is to be paid prior to the remainder of the insurance can be applied. Since there are many types of insurances, having someone who is knowledgeable in this area is important and you may reach out to Karsten Financial serving the Hinsdale area in Illinois by contacting our website at karstenfinancial.com

February 3, 2024February 4, 2024

Low-Cost Commercial Insurance | Commercial Insurance in Hinsdale

We, at Karstens Financial, not only find you the right commercial insurance protection but can also help you save by assessing all the areas of your risk. We are able to find the best quote from a group of many options.

You can also save by bundling; by adding all different types of policies, such as property, liability, auto insurance into one policy. By adding all policies together, you can end up saving with discounts on your multi-policy.

Also, by selecting higher deductibles on your policies, it will lead to a lower premium. But ensuring that you can easily afford that deductible in an unfortunate situation where you have a loss. But just moving from $500 deductible to $2500 deductible can bring your premium low.

You can also gain discounts if you have had good loss history. What this means is that you have not filed or have very few claims, insurance companies will often give you discounts based on your history.

Having your property covered with surveillance, fire sprinkler system, alarm system for theft and vandalism can also give you discounts.

Incorporating safety programs to reduce risks at at workplace and having a safer work environment while providing ongoing safety training to prevent accidents and injuries can also reduce premium.

There are many other areas that can save you in your commercial insurance or property insurance.

Among these, the most important is to work with your insurance provider to identify and implement loss control measures for your commercial coverage. We at Karstens Financial have your back and provide personalized advice that is tailored to your commercial insurance needs.

November 21, 2023November 21, 2023

WINTICKETS

January 12, 2022January 12, 2022

Commercial Loans

Our Commercial Property Loan Program

Our small balance commercial property loan program is ideal for real estate investors seeking to grow their portfolios with multi-family and mixed-use properties, large commercial, office and much more.

Commercial Loan Features

• Loan amounts from $100k-$50 million on multi-family and mixed-use properties

• Full 30 year terms with no balloon payments

• Loan-to-Values up to 85%

• No personal DTI; no tax returns; qualify based on property cash flow

• Simplified environmental review

• Purchase, Rate & Term Refinance and Cash-Out Refinance

• Protect your identity and other assets by borrowing in a corporate entity

October 29, 2019October 29, 2019

Coinsurance

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.

February 6, 2019August 5, 2019