Whether you run a thriving e-commerce shop or a bustling farm operation, finding the right commercial insurance partner for your business is essential.

Navigating the world of commercial insurance can be overwhelming, but you don’t have to tackle it alone. The key? Finding a trusted insurance agent can transform this process.

Here are the top four qualities you should look for when finding the best coverage for your business.

1. Personalization

There are no one-size-fits-all solutions for insurance. Even businesses in the same industry can require different insurance policies, like business vehicle protections, cyber security risks, and more.

That’s because your unique business sets you up for unique risks.

As a business owner, the last thing you need is to wait endlessly on hold to talk to an insurance provider with thousands of other clients. You need to partner with an experienced agent who can tailor business insurance recommendations for your specific operations.

An insurance partner can also help you avoid blanket policies that don’t cover the most important claims. For example, general liability insurance covers some of the most common and expensive claims, like physical damage to your business. But commercial liability insurance can protect you if a customer trips in your store or an advertising campaign infringes on copyrights.

You want to work with someone who understands you and your business to build the right coverage. As you integrate new insurance policies or change providers, look for an insurance agent who can personalize your experience and policies to you.

For more, please read our guide about business owner’s policies (BOPs) vs. custom business insurance policies.

2. Team-orientation

Any insurance, from business interruption to key-person insurance, is vital to keep your business running and protected. That’s why business owners need to consider their insurance provider part of their core team, like a lawyer or tax advisor. In this same way, you should think about hiring an insurance professional as a long-term relationship.

As you expand your protection, you want to partner with someone who can get in the weeds with your business and be on-call when you need them. Team-oriented insurance providers that actively collaborate with your business can also offer exceptional services, like proactive risk assessments, regular policy reviews, and timely claims handling.

You also want to work with an insurance provider that reflects that in their operations, like insurance agents working directly with customer service to deliver the best experience for you.

3. Translation

Other how-to blogs about commercial insurance will advise you to take stock of your risks to decide which insurance you need. But this is not secure advice.

You are certainly the expert in your business, but remember that insurance and risk are both incredibly complex. And bringing insurance into your operations, or changing insurance providers, goes beyond identifying risk for your business.

Insurance professionals are experts in spotting pain points in your business that could leave you vulnerable. And you want to work with someone who can teach you what needs to be covered, what exactly is in your policies, and how that sustains your business.

Insurance professionals focused on comprehensive learning can help you understand complex insurance terms, coverage options, and policy details in an easily understandable way and applicable to your business operations.

4. Up-to-date experts

Insurance is a fast-paced industry. Risk evolves with new technologies, market trends, and regulatory changes. You need to focus on running your business, which is why you need to partner with an insurance professional who can keep up with the changing tides.

The benefits? Up-to-date insurance providers can build customized policies based on changing risks. It’s also a competitive advantage, providing innovative coverage options and top industry insight. You’ll stay protected, even in a rapidly changing world.

Summary

Insurance is essential to your business operations, but you don’t have to figure it out alone. With the right insurance partner, who wants to get to know your enterprise, be on your team, educate you, and stay up-to-date, you can focus on running your business.

The best place to start? Contact an insurance agent. Fortress Union Bank Insurance can answer your top-of-mind insurance questions.

Post updated. Originally published May 2023.

Are you looking for more advice for protecting and growing your dream business? Listen to Dream, Plan, Live: the Fortress Union Bank podcast for more tips from the business experts in your community and at Fortress Union Bank.

RELATED ARTICLES

• How does a business owner’s insurance policy (BOP) stack up to a custom business insurance policy?
• Manage your risk the way you manage your money
• Business insurance overview for a typical policy [infographic]

The post Finding the right business insurance partner: 4 essential qualities for comprehensive coverage appeared first on Fortress Union Bank.

Whenever you’re checking your bank account online or paying bills, you need to be extremely careful with the websites you visit and the links you click. Recklessness online may cause you to inadvertently install malicious computer software known as ransomware.

What Is Ransomware?

Ransomware is a type of software (or malware) that is specifically designed to disrupt or gain unauthorized access to your computer. It prevents you from using your computer until you pay a ransom.

There are various types of ransomware, all of which prevent your computer from functioning. Ransomware can:

• Lock you out of your entire computer,
• Prevent applications or programs from opening, and
• Encrypt files to restrict access.

In almost every case, attackers will demand payment. Once they receive the ransom, they’re supposed to restore function to your computer. If you fail to pay within a period, the attackers may demand more money.

Ransomware is widespread, and personal users and business owners must be cautious. You must be alert and protect yourself and your computers at all times.

Your personal and work computers need to be protected at all times.

Protecting Yourself At Home

Ransomware creators usually target average home users because they don’t  have the knowledge or expertise to properly protect themselves.

Luckily, you can defend yourself by following some best practices. First, let’s go over proper habits while browsing the internet:

• Avoid clicking suspicious links in emails or on social media.
• Don’t open unknown email attachments.
• Only download files from trusted sources.

You must also realize that your personal computer can be targeted at any time. Protect yourself by ensuring you have anti-virus with active monitoring installed on your computer. If you want to go one step further, install anti-malware and anti-ransomware programs.

Next, back up your data. If ransomware encrypts your files, you’ll be able to recover quickly and avoid paying a ransom. Create several backups of your files on an external hard drive or a secure cloud service. Make these backups regularly, and don’t leave them plugged into your computer. External devices are also at risk of becoming infected.

Protecting Your Business

Microsoft recently reported that the number of ransomware attacks on businesses is increasing. Attackers target businesses because companies are more likely to pay a ransom when their operations are disrupted.

Protecting your business involves more than safeguarding your personal computer with the best practices outlined above.

First, create a cybersecurity plan that outlines best practices, security tools, and your response to ransomware attacks. Remember, you not only have to account for computers but also servers and mobile devices. Anything that’s connected to the internet can become an access point to sensitive business files.

Your cybersecurity plan needs to include employee training. If your workers aren’t careful while checking email or processing orders, they can unknowingly expose computers to ransomware.

The response portion of your plan should detail the actions you’ll take following the discovery of ransomware. These can include contacting the authorities and restoring files from backups.

Finally, stay up-to-date about the latest ransomware attacks. According to Microsoft, there are many types of ransomware out in the wild. Understanding the warning signs and how these dangerous programs operate is vital to your future protection.

Get Cyber insurance

Whether you’re a homeowner or small-business owner, you may be interested in obtaining cyber insurance. Policies offered by Fortress Union Bank Insurance can help protect you from ransomware and other online threats and will provide peace of mind. You aren’t invincible online, so you must take precautions and protect yourself before your personal life or finances become compromised.

The internet, for all its benefits, also comes with threats like ransomware. If you aren’t careful, your personal and business computers and files may be held hostage. But if you follow best practices at home and in your business, you can help protect yourself.

Request a quote

Post updated. Originally published January 2017

Related Posts

• Fraud prevention: how to protect yourself from scams
• 6 types of fraud in business
• 5 quick steps for using safe online banking today

The post What is ransomware and how to stop it appeared first on Fortress Union Bank.

The World Wildlife Fund (WWF) found that an estimated 10 million tons of specialty crop types grown in agricultural settings each year never get harvested or make it onto people’s tables, which is almost a third of what’s grown in total. Huge losses occur annually because of several natural reasons outside of farmers’ control, necessitating a type of protective insurance product that can keep them on their feet.

Want to learn more about crop insurance and why this type of security is essential for growing and protecting your bottom line? Continue reading.

What Is Crop Insurance?

Crop insurance is a risk management tool that farmers and ranchers can receive to help protect their crops against drops in price or decreased revenue.

There are two types of crop insurance you should be aware of:

• Yield-based: Provides coverage if the actual yield obtained becomes less than what was expected. There are two types of insurance policies that function like this: multiple peril agriculture insurance and a group risk plan.
• Revenue insurance: Delivers protection against a decrease in generated revenue as a result of a loss of production or a change in the market. In this category, there are two types of plans: crop revenue coverage and revenue assurance.

Another coverage type to consider is crop hail insurance. In parts of the country where hail is frequent, farmers generally purchase this coverage level to protect high-yielding crops. Often, crop hail insurance is bought as a supplement to the yield-based multiple peril agriculture insurance, depending on needs.

What Does Crop Insurance Cover?

Your amount and type of coverage will depend on the plan you choose, but generally, a crop insurance program covers the following natural causes of loss:

• Drought.
• Excessive moisture.
• Hail.
• Wind.
• Frost.
• Insects.
• Disease.
• Changes in harvest price.

Unfortunately, many types of risk aren’t enacted by natural causes, meaning they’re not protected by insurance coverage. The items normally not covered by crop insurance include:

• Damage from pesticide drift.
• Fire.
• Negligence.
• Failure to follow good farming practices.

Risks Associated With Farming

Over the years, there have been many reasons for cover crop yield loss or a decrease in revenue that generally triggers a crop insurance claim. Crop losses are any factors that damage crop yield, like drought, excessive rain or hail or drops in harvest price.

The large majority of insurance product claims are caused by losses as a result of unexpected weather patterns, which have only been made worse by the ever-changing climate. As abnormal weather events continue to rise, more and more insurance payments will be necessary for whole farm revenue protection. In fact, between 1995 and 2022, most crop insurance program indemnities were paid for weather-related causes of loss, according to the United States Department of Agriculture Risk Management Agency.

A Bounty Harvest: Benefits of Effective Crop Insurance

Crop insurance protects farmers and ranchers from financial loss due to unforeseen events and encourages them to invest in their agricultural practices. There are many advantageous reasons to invest in this insurance type and coverage level, including:

Financial Protection

Farmers rely solely on their harvest to provide for their income and living expenses. When that’s threatened, it not only risks their jobs, but their livelihood as well. This safety net offers financial protection against losses caused by natural disasters and helps farmers and ranchers recover from lost investments. It also assists with stabilizing their income and reduces their vulnerability to catastrophic financial losses that unforeseen events can cause.

Access to Credit

Many financial institutions want farmers to have crop insurance to qualify for some types of agricultural loans or lines of credit. So, by having this type of coverage, ranchers are more likely to have credit to access when they need it. Crop insurance can serve as collateral, easing the pressure to access the money necessary for planting, equipment and other agricultural expenses.

Price Stability

Crop insurance stabilizes commodity prices by reducing the impact of drops in the market or supply changes caused by crop failure. It balances out the rural economy by preventing financial crises in agricultural communities, ensuring the ripple effect of significant losses doesn’t impact other businesses and jobs in the area.

Food Security

Crop insurance coverage can play a leading role in ensuring food security by helping to maintain food production, no matter what outside forces may occur. The world is experiencing food shortages, causing acute food insecurity in 79 different countries, according to the World Food Programme. Any measures that keep farmers in production and able to harvest crops is a beneficial step for both that farmer and the globe at large. When farmers have a safety net to catch them in the case of an emergency, they’re more likely to continue planting crops even in uncertain conditions. This helps maintain a consistent food supply and helps fill gaps in the supply chain.

Improve Productivity

It’s hard to put money toward new farming products when going through an uncertain season. When farmers know they have a barrier between themselves and financial hardships, they may be more willing to invest in technologies, practices and advances that can increase cover crop yields and overall productivity. Safety can be an incentive for investment, encouraging farmers to lead with more sustainable and efficient farming practices despite not knowing what exactly is around the corner.

Faster Disaster Recovery

Even with the best insurance policies on your side, disaster can still strike at the most difficult times. In the event of natural emergencies like hurricanes, wildfires or floods, a crop insurance policy can be a vital component of picking up the pieces and resuming production. Without financial assistance, recovering from any calamity can take years — if recuperation is even possible. Some farms are never able to bounce back, forcing the family to make very difficult decisions about the future of their business and well being.

Risk Management

Having an action plan and proactive measures in place is beneficial for any industry, especially one as ever-changing and impactful as agriculture. Crop insurance is a crucial tool to control farming risks, allowing farmers to transfer some of the associated threats to insurance companies or banks. This cuts back on the overall exposure to financial instability due to factors beyond their control and encourages ranchers to stay in business and continue growing much-needed crops.

Protect From Crop Losses With Fortress Union Bank

A crop insurance policy leads to long-term stability of family farms all over the country. Put good risk management practices in place by choosing to partner with Fortress Union Bank. Our team has years of experience and knowledge in the farming industry, and we want to help reduce financial hardships for you and your family.

When you speak with a Fortress Union Bank employee, you talk to someone who cares about your agricultural business like one of your own loved ones or employees. Our team understands how important it is to continue your family’s legacy through your farm, making protective measures that much more crucial.

Contact Fortress Union Bank to learn more about protecting every acre of your land.

Related Posts

• The ins and outs of farm management
• What’s an ag loan?
• The farmer’s ledger: operating budget 101

The post Safeguarding your crops: understanding the vital role of crop insurance appeared first on Fortress Union Bank.

Whether planning a month-long backpacking trip or heading cross country for a wedding, you will be posed with the option of buying travel insurance. While it may not seem like something unfortunate could happen when you’re 1,000 miles away, it’s always good to be prepared for the unexpected.

By understanding what travel insurance is, what it covers and how to find the right provider, you’ll be able to make the best decision on whether or not it’s something you need. Grab your pretzels and drink — we’re taking off into the wide world of travel insurance.

What Is Travel Insurance?

You’ve most likely heard of travel insurance but may not be completely aware of what it is. Essentially, it is coverage designed to protect travelers from risks and financial losses that could potentially happen while away from home. The range of risks that people may experience include missed air connections and delayed luggage to more serious issues like injuries or illnesses, depending on the type of travel insurance you purchase.

What Does Travel Insurance Cover?

While some of the items that travel insurance covers may seem unreasonable or even hard to believe, anything can happen while you’re on a trip. This list isn’t meant to be frightening but to make you aware of everything you could be protected from.

Accidental Death and Dismemberment

Accidental death and dismemberment insurance covers death or losing a limb or eyesight due to an accident. Most health insurance plans don’t provide full coverage in foreign countries for injuries or illnesses. Travel insurance is an additional policy to your everyday health insurance and can help supplement medical costs during a vacation.

Baggage Delay

Travel insurance also reimburses the cost of lost essentials like clothes, phone chargers or toiletries that you may need if your bag is delayed due to an airline. To qualify for this type of coverage, your luggage must be delayed over a certain period of time — generally from six to 24 hours, depending on the policy.

Baggage Loss

If your luggage is completely lost or stolen, travel insurance can help cover the costs. Getting airlines to pay for lost bags can be difficult, so this perk is significant. In the U.S., the Department of Transportation (DOT) requires airlines to compensate travelers up to $3,800 for lost baggage. In other countries, people can be given a total of $1,700 to make up for lost possessions. To receive the maximum reimbursement amount, passengers must provide receipts proving the lost bags’ value and contents.

Medical Emergency Evacuation and Repatriation

This coverage also provides money for the cost associated with medical evacuation if you have an emergency and can’t be treated at a nearby hospital. It covers transportation costs to another hospital or your home country if you’re out of the United States.

Missed Connection

If a common carrier delay causes you to miss an organized tour or cruise, then missed connection coverage covers extra expenses necessary to catch up to where you need to be next. This only works if you’re late to arrive where you’re supposed to because of something out of your control.

Reinstate Frequent Traveler Awards

Frequent flier miles or hotel points are great ways to purchase a trip. But, if the vacation is subsequently canceled, this benefit can cover any fees required to redeposit those rewards to your account so you can use them later.

Trip Cancellation

Trip cancellation insurance reimburses you for prepaid, nonrefundable costs if you must cancel your vacation due to one of the covered reasons. The most commonly covered causes include:

• Loss of employment.
• Stolen passport or visa.
• Military duty.
• Jury duty.
• Inclement weather.
• Airline strike.
• Natural disaster.
• Financial insolvency.
• Sickness or death of a family member.

What Does Travel Insurance Not Cover?

Travel insurance covers several wide-ranging expenses and situations but doesn’t cover everything. While it’s most likely safe to assume that your needs are taken care of, checking what may or may not be included in your insurance policy before purchasing is crucial.

Here are the most common things not covered by travel insurance:

Worry About Getting Sick

If you hope to cancel a trip because you’re nervous about a potential illness outbreak, standard travel insurance won’t cover this. The same goes if you’re simply worried about flying in general.

Natural Disasters that Begin Before You Purchase Insurance

While natural disaster recovery is typically covered by standard travel insurance, the weather can’t have started before you click the purchase button. If you suspect a hurricane or tornado will disrupt your trip, you must buy travel insurance before the storm is named to have related losses reimbursed.

Last Minute Changes

Yes, your travel insurance policy may cover some last-minute itinerary changes, depending on the provider, but not all shifts will be. Even “cancel for any reason” travel insurance requires a 48-hour notice before the trip to work correctly.

The Importance of Travel Insurance

You’ve most likely overpacked for a trip before and then had to start taking items out once you realize your suitcase doesn’t zip shut. While it’s unnecessary to bring every single possession you own on your trip, it is essential for you to choose to purchase travel insurance.

Vacations Are an Investment

This may not be the case for everyone, but for most people, traveling is a large investment. You may have saved thousands of dollars for your dream vacation, and a disaster or injury could potentially ruin it or cause this investment to vanish. Many companies won’t reimburse you for unexpected cancellations, so travel insurance may be the only way to protect your money from being lost.

When you have travel insurance with trip cancellation benefits, you can get your money back for prepaid, nonrefundable trip costs when you must cancel for a covered reason.

Oversea Medical Treatment Can Be Expensive

It may be uncomfortable to think about, but let’s say you or your traveling companion get injured while on a trip out of the U.S. When you arrive at the hospital, they won’t take your health insurance card, meaning you’ll have to pay the medical bills upfront. These costs can climb into the hundreds of thousands, leaving you financially stuck with no solution. Travel insurance coverage can help with emergencies by paying for losses due to covered medical and dental situations.

Be There for Your Family

It can be challenging to put your life on pause so you can go on a trip. You may have concerns about something happening and you not being able to be there to assist them. With travel insurance, you can always support your relatives, no matter where you are. This type of policy covers unexpected travel expenses if you have a family emergency and must get back to them.

Travel With Peace of Mind

When you know you’re protected from large financial burdens, funding lost luggage and other potential travel issues, you can rest assured that things will go as smoothly as possible. With travel insurance, you can have a fantastic time without stressing about the what-ifs and whether you and your family are always safe. Vacations are meant to be relaxing and fun — make certain that’s the case by clicking yes to travel protection when purchasing your plane tickets or before you leave.

Who Needs Travel Insurance?

Anyone planning a trip would benefit from travel insurance, especially if you’re leaving the country. There are different types of travel insurance to consider: trip cancellation or travel disruption insurance, travel health insurance and medical evacuation insurance. According to the CDC, you should especially consider travel health insurance if you have an existing health condition, are traveling for more than six months or are doing any adventure activities such as scuba diving or hang gliding.

Tips for Buying Travel Insurance

It may seem overwhelming to try and decide which travel insurance company to go with, but don’t let that stop you from making this smart decision. The good news is that almost every company will offer similar services and coverage policies — you just get to decide which one will deliver the highest quality for your budget.

Here are a few tips to get you started in the right direction:

All Travel Insurance Will Be Uniquely Priced

Because no two trips are the same, no travel insurance policy is identical to the next. Generally, the price will depend on the following factors:

• Length and cost of the trip: The longer and more expensive the trip, the higher the coverage price.
• Cost of local health care: If the cost of health care in your destination is expensive, it can impact the cost of your travel insurance.
• Medical conditions you want covered: Any existing medical conditions you have will increase prices.
• Amount of coverage: Like any insurance policy, the most coverage you desire, the higher the costs.
• Your age: This isn’t always the case, but the older you are, the more you’re likely to pay.

You May Already Have Travel Protection

You may already have some form of credit card travel insurance, depending on the type of credit card you use. Some offer trip cancellation and interruption coverage when you book a trip with your card, so it’s essential to see what coverage you may already have. Commonly, extra travel insurance, like medical treatment protection, isn’t included with specific cards, so if you’re looking for a more comprehensive policy, it would be beneficial to get general trip insurance.

Always Look at Exclusions and Restrictions

Every policy is unique. It’s vital that you pay attention to what is excluded or restricted with their potential coverage to avoid any surprises later on down the road.

Getting Travel Insurance Is Simple

You can get travel insurance a few different ways, but the easiest may be to go directly to a travel insurance company. Comparing travel insurance policies from various providers is a great way to find a personalized policy to fit your needs at your desired price.

To get the right amount of coverage, take a close look at the risks you face when traveling. Examine what coverage you may already have and determine what still needs to be protected. Get quotes for trip insurance online to discover the most reasonable price. Then, narrow down your options and pick the best.

Want to learn more about protecting your money while on vacation? Contact Fortress Union Bank to connect with one of our financial specialists today.

Related Posts

• Personal insurance: what you need to be protected
• What does long-term care insurance cover
• Taking inventory of your homeowners insurance

The post What is travel insurance? The key to safe and joyful adventures appeared first on Fortress Union Bank.

Personal insurance covers a very broad spectrum of assets, and you can decide what types of insurance plans are best for you. But the most important thing to remember is, whether you fully cover every item in your possession or simply choose one type of protection plan, having insurance can help you feel safe and secure in moments of uncertainty.

Continue reading to learn about the various types of personal insurance, what those policies cover, how much personal insurance generally costs and why it’s important to protect yourself and your family.

What Is Personal Insurance?

In its broadest definition, personal insurance is the protection of human life values against the risk of death, injury, illness or incidental expenses. Using the term “personal” distinguishes this type of coverage from commercial ones like policies that protect businesses, non-profit organizations and similar entities.

Who Needs Personal Insurance?

Because personal insurance is so broad and covers a large spectrum of assets, the needs of people vary depending on their personal circumstances and possessions. It’s fairly common to have even the most basic of insurance policies like life insurance — Forbes found that at least three in four American adults have some form of life insurance — but it’s important to evaluate what you personally need when making coverage decisions for yourself.

Here is a broad list of examples of people who should consider getting personal coverage:

• Anyone who lives on their own frequently needs homeowners, condo or renters insurance.
• Drivers are required to maintain their current state’s minimum levels of auto insurance.
• People who financially provide for others should consider life insurance.
• Most people can benefit from health, disability and long-term care insurance, even if they don’t see any potential medical threats or reasons to need protection.

What Types of Personal Insurance Policies Are There?

If you fell into any of the above categories, or simply want to know what your insurance options are, then you’ve come to the right place. Although several types of policies may benefit you, we’ve narrowed it down to four commonly purchased coverage plans:

Auto Insurance

People spend a lot of time in their vehicles. According to Ridester, the average American spends about 408 days of their life commuting to work or simply driving in general. That means it’s vital to protect your vehicle with auto insurance — even if you’re a safe driver. Whether it’s a little fender bender or a totaled vehicle, you can’t control the other people on the road or the weather conditions you’re driving in. With Fortress Union Bank auto insurance, you can easily file a car insurance claim after an accident, and we’ll help you take the right steps forward.

Home Insurance

For every type of natural disaster — like flooding, hurricanes, fires or tornadoes — and personal possessions being stolen or harmed, there’s home insurance. Standard homeowners insurance provides you with coverage to repair or replace your home and its contents in the event of damage. This broad insurance type is a great way to guarantee not only does your house has the necessary protection, but your valuable items do, too.

If you don’t own a home but you’re renting a space, then maybe it’s time to consider renters insurance. In many ways, this form of coverage acts in the same way as a homeowners plan, meaning it will protect your goods inside and outside the property in the case of damage or theft.

Life and Health Insurance

Regardless of every physical asset you and your family own, there’s nothing more important than your life. That’s why life and health insurance coverage is so vital. Life insurance is designed to help your family pay off debt, receive income and finance major goals — like college tuition or a new vehicle — in the event that you’re not here to assist them. This type of health plan can help you receive the peace of mind that the people you care the most about are taken care of, no matter what.

Similarly, health insurance helps you and your loved ones be able to receive the medical attention and care that you need at a lower out-of-pocket expense to you. If you’re not completely covered by a health care plan at your workplace, Fortress Union Bank has both critical illness policies and medigap options to fill in the gaps.

Long-term Care Insurance

Long-term care insurance assists with finances that can come with age, injury, disability, illness or cognitive impairment. This type of insurance often covers home care, nursing home care, assisted living care, custodial care and any other type of daily living and personal needs that aging people may require.

As great as these benefits are, personal insurance does come at a cost. But, that cost may be lower than you’d expect.

Coverage Prices: How Much Does Personal Insurance Cost?

It’s a commonly known fact that insurance can get fairly expensive. Even with the Affordable Care Act available — a health care reform passed in 2010 that makes affordable health insurance available to more people.

But don’t be discouraged! Fortress Union Bank partners with you to find the best coverage solution that works for your budget and keeps you safe. There are several factors that impact the price of your insurance plans. Here are a few of those items:

• Your age.
• Your gender.
• The amount of coverage you have.
• Your deductibles.
• Your location.
• Dependents.

You may be surprised that, often, coverage plans are extremely affordable and protect you from astronomical expenses should something drastic and unexpected happen in the future.

The Importance of Personal Insurance

While each type of personal insurance coverage serves a unique purpose, they are all incredibly important. Overall, insurance plans help you protect your family, assets and property from financial risk or losses.

With personal insurance, you can receive the following benefits:

• Life insurance can assist your spouse and children from devastating payments or costs in the event that something happens to you and you’re unable to help them.
• Generally, the money from life insurance policies is passed along federal income tax-free, so your family should receive every penny that you left them.
• Health insurance steps in to cover some of the essential health benefits and costs that occur in your daily life, as well as potential emergencies that require higher payments.
• Often, you will pay less for covered in-network health care, even before you meet your deductible using a specified health insurance plan.
• Auto insurance helps in circumstances that are often out of your control, like an accident that was caused by someone else. This type of coverage can assist with costs for any injury and damage, depending on the plan.
• Car insurance can also cover some or all of your legal fees if you’re taken to court over an accident or cause a collision.
• Not only does home insurance protect your home and personal property, but it also provides liability coverage for legal actions that result from injuries or damage that occur on your property.
• Long-term care insurance gives your family peace of mind by providing comfortable and affordable living quarters and helping with daily activities and medical needs.

The list of personal insurance benefits and tips could go on and on, but we’ll leave it at this: Take care of yourself by choosing an insurance company that can give you affordable and extensive coverage — no matter what your needs are.

If you’re ready to find protection available to cover your personal safety and security needs, contact a Fortress Union Bank insurance agent to get started.

Request quotes online for homes, autos and recreational vehicles.

Request a Quote

The post Personal insurance: what you need to be protected appeared first on Fortress Union Bank.

But suppose you lose an employee that is integral to your business like they have to leave their position unexpectedly or pass away.

That’s where business life insurance steps in. These insurance products will financially support this transition so you can focus on healing and keeping your business going. Here’s an overview of two key products: Key Person Life Insurance and Buy-Sell Agreements.

Key Person Insurance

Every employee is essential for making a business run. But no doubt, you have some employees with a lot of institutional knowledge. They may have been there since the beginning of the business. They may be highly specialized in their job. Or they’re responsible for bringing in the bulk of your sales every month.

But what would happen if they passed away or had to leave the company? That’s why Key Person Insurance, sometimes called Key Man Insurance, is essential.

Key Person Insurance is a life insurance policy for businesses. Companies can take these out on the owner of a business, an executive, or a critical person to a business’s operation.

Suppose that person passes away or there is a sudden departure from the company. The funds from that insurance policy will support another person stepping into that role. It can cover the costs of recruiting, hiring, and training a replacement for that key person.

In short, this will keep the business afloat while you find a substitute for the loss of a key employee.

Let’s illustrate this with an example. Rustic Home Furnishings produces handmade wooden furniture and employs six people. One of the lead employees is an excellent furniture maker, manages the finances, and has worked there since the founding. This unique set of skills and knowledge is critical to the business’s success.

But sadly, this person passes away unexpectedly. With a Key Person Life Insurance Policy, the company would get financial support to replace this person and keep the business running. It covered expenses from recruiting and training a replacement, paying off debts or loans, and covering lost profits. Without Key Person’s Life Insurance, this could create a substantial financial and operational impact on the organization.

“In these situations, it’s sad to lose a valuable employee,” Curt Peterson, an insurance agent at Fortress Union Bank, explains. “The good thing is there is a way to help the business recover from that and hiring a new person with a key person policy.”

Buy-Sell Agreements

Buy-Sell Agreements are an essential life insurance policy and legal arrangement, especially for co-owned businesses and farms. These agreements outline how a partner’s share of an enterprise is distributed if that partner dies or leaves the company.

These agreements are typically created to communicate that available shares of a business will be sold to the remaining partners. As a life insurance policy, Buy-Sell Agreements typically fund a buyout of shares in case of a partner’s death.

Let’s look at another example. Let’s say two brothers work together to farm owned and rented land. As part of their succession planning, they created a Buy-Sell Agreement that outlines that, in the case of one of their deaths, the other brother would receive funds from the agreement to buy out the other brother’s investments in their land. It would also keep the power of the farm enterprise between either of the two brothers and keep out unwanted influences in the business.

It’s important to note that Buy-Sell Agreements are not the same as a succession plan. These are tools that business owners use in case of emergencies and unexpected situations. In our example above, the brothers protect businesses and business owners from tangible consequences, like losing the land.

How To Get Started

Insurance is an investment that protects your business from the worst-case scenario. And it’s impossible to plan for all those unexpected cases alone, especially if someone integral to your business isn’t there anymore.

That’s why you have a team of professional advisors, from your bank lenders, insurance agents, attorneys, and CPA, who work with you to create these emergency plans, keep your business humming, and focus on the life side of your life.

Contact your insurance agent to get started on protecting your business.

Are you looking for more advice for protecting and growing your dream business? Listen to Dream, Plan, Live: the Fortress Union Bank podcast for more tips from the business experts in your community and at Fortress Union Bank.

RELATED POSTS

• Create an effective business succession plan: a checklist for passing the torch
• Transferring the family farm to the next generation
• How does a business owner’s policy (BOP) stack up to a custom insurance policy?

The post Insuring your business’s stability: Key person insurance and buy-sell agreements appeared first on Fortress Union Bank.

Business interruptions can come in all shapes and sizes. Whether a natural disaster that knocks out power for weeks or a fire that destroys your property and inventory, these risks can bring your operations to a standstill. According to the Federal Emergency Management Agency (FEMA), about 25% of businesses don’t reopen after a disaster due to financial loss. 

Being unable to open your doors to customers creates obvious challenges. If you can’t run your business, how are you supposed to generate revenue? How are you going to pay employees or vendor invoices?

These are all questions every business owner thinks about, but doesn’t ever want to face. One way to protect yourself and your business against such risks is by taking out a business interruption insurance policy to enhance your firm’s coverage.

Let’s take a close look at what business insurance is, what it does and doesn’t cover, how this type of coverage differs from other insurance plans and why it can be beneficial to have this form of umbrella protection for your business.

What is business interruption insurance coverage?

Whereas other types of business insurance might cover costs incurred due to damage or a lawsuit, business interruption insurance can actually replace lost income during periods when your business can’t operate.

So, in the case of a natural disaster like a fire or tornado, this type of coverage can recover affected business income. Also, in rare cases, business interruption insurance coverage can apply if a civil authority shuts down a business because of direct physical loss to a nearby business, causing the business to lose money.

Common Causes of a Business Interruption Claim 

Although there are several reasons for a supply chain disruption or for a business to be brought to a halt,  some are more common than others, including:

Fire and Explosion

Fire and explosions are constantly at the top of the list of leading interruption factors as they result in billions of dollars of business-related losses every year. Although any industry could experience a horrible fire, the most affected businesses include those that use or handle electrical hazards, complex machinery and flammable liquids.

To lower your risk:

• Use fire protection equipment, and always have safety items close by. 
• Dispose of all flammable and combustible materials properly.
• Store dangerous materials in a dry, secure place.
• Train your employees on fire safety measures, and always know where your exits are in the case of an emergency.

Natural Disasters

Some weather events can become catastrophic, and it’s important to be prepared. Natural disasters like wildfires, floods, earthquakes and tornados are constantly contributing to rising business interruptions around the world. Although not every type of storm will lead to your business shutting down, some have the power to knock your company off its feet for an extended period of time. 

To reduce your risk:

• Build an effective loss control strategy. 
• Create a disaster preparedness plan for your business in the case of an emergency.
• Store all of your financial documents and important information on the cloud for quick business recovery and reboot.
• Ensure you have adequate insurance coverage to protect your company from the effects of natural disasters.

What Business Interruption Insurance Covers

This type of business interruption insurance coverage primarily works to replace lost income and revenue. The amount of money you’ll receive depends largely on your historical financial records, so be sure to preserve all your important earnings and profit forecast documentation.

It can also help provide financial assistance in terms of:

• Employee payroll.
• Fixed operating expenses.
• Commercial mortgage, rent or lease payments.
• Training on new equipment.
• Loan payments.
• Taxes.
• Temporary relocation.
• Profits.
• Extra expense.

Most importantly, a policy will cover lost income due to a covered peril (i.e., an event that is explicitly covered by your insurance). Typically, covered perils for business interruption insurance include:

• Natural disasters (excluding earthquakes and floods).
• Fires that destroy property or product inventory.
• Forced closures due to civil authority mandates.
• Theft.

There’s a limit to how long you can receive benefits, however. That timeframe is determined by the restoration period as defined in your policy. This can last anywhere from 30 days to 12 months. Typically, you’ll need to wait one to three days after making a claim before the restoration period begins.

What Business Interruption Insurance Doesn’t Cover

While interruption insurance can provide a financial safety net if your business is forced to close, it doesn’t cover every event or type of cost.

One major point to be aware of is that such policies don’t cover pandemics. This has become a point of contention in the wake of COVID-19, but, for the most part, business interruption insurance doesn’t cover shutdowns due to disease spread.

Other costs not covered by interruption insurance typically include:

• Broken glass and windows.
• Undocumented income that wasn’t included in your financial statements.

Also, as mentioned, losses due to flood and earthquake damage aren’t covered. This is because separate policies like flood insurance and earthquake insurance need to be taken out for these types of natural disasters.

How Does It Differ From Other Types of Business Insurance?

Ideally, businesses need diverse types of insurance to ensure they’re fully protected. For example, interruption insurance differs from other common forms of business insurance in some key ways. Just be aware of what your unique coverage needs are as you make business insurance decisions. 

Whereas interruption insurance covers lost income, a general liability policy protects your business from claims of property damage and bodily or personal injury that occurs on your premises or is caused by a product or employee.

Another main type of liability insurance that employers should know about which differs from a business interruption plan is employment practices liability insurance. While business interruption protects your business from financial loss, employment practices liability coverage keeps your company safe in the event of an employee lawsuit regarding sexual harassment, wrongful termination, discrimination, breach of employment contract and deprivation of career opportunity. 

Business interruption insurance also doesn’t cover commercial property. Commercial property insurance protects the business’ location and physical property, including equipment, inventory and furniture in the event of an emergency like a fire or natural disaster. Property damage due to riots, civil commotion and vandalism is also generally covered by commercial property insurance rather than business interruption insurance. 

Why Is Business Interruption Insurance Important?

If your business has ever experienced a fire, natural disaster, theft or civil interruption in the past, then you should look at how long your recovery period was without any business interruption policy. Then, imagine having most of the hard work taken care of and being able to land on your feet within a shorter time frame. 

That’s why business interruption coverage is so important. Although it can’t keep disasters from striking, it can help businesses of all sizes resume their company operations and finance their next steps forward — whether that’s taking care of direct physical loss, fixing property damage or rebalancing business income.

How Do I Get This Kind of Protection for My Business?

There are different ways to get business interruption insurance coverage. Sometimes, it’s sold on its own; in other instances, it may be offered as an extra endorsement or as part of a business owner’s policy (BOP). 

This article has been updated. Originally published October 28, 2020.

Interested in learning more? Download our business insurance eBook, and contact Fortress Union Bank today to speak to an insurance professional about commercial policies and how we can help.

Email an agent near you

RELATED ARTICLES

• How does a business owner’s insurance policy (BOP) stack up to a custom business insurance policy?
• Manage your risk the way you manage your money
• Business insurance overview for a typical policy [infographic]

The post Enhance your protection with business interruption insurance appeared first on Fortress Union Bank.

That’s why Workers’ Compensation is there to protect you and your employees.

Some small business owners view Workers’ Compensation insurance as a burden because it’s an additional cost to the company. It’s not until an accident occurs that an employer gets serious about Workers’ Compensation, but at that point, it’s too late.

Let’s review what Workers’ Compensation is and why your business needs to be protected.

What is Workers’ Comp? And, why is it essential for all businesses?

Workers’ Compensation is an insurance policy that provides an employee with wage replacement and medical costs if an accident occurs during working hours. Essentially, any business with employees needs a Worker’s Compensation insurance policy.

Workers’ Compensation policies protect your business’s most valuable assets: your employees.

What are the repercussions of not having Workers’ Compensation?

Your business can be in for a rude awakening if there’s no coverage. Most states have laws regulating Workers’ Compensation. A good practice would be to contact your state’s Department of Labor or an agent knowledgeable in the Workers’ Compensation Benefit to determine if this is a benefit your business needs.

If your business doesn’t have a policy, you may be liable for wage replacement and medical costs. Additionally, injured employees may file a lawsuit against your company.

The Wrong Approach

Having a Workers’ Compensation policy in place sounds like a no-brainer, especially if your business is in an industry where accidents are more frequent, such as transportation, construction or manufacturing. Unfortunately, for companies outside these industries, owners usually approach agents after a claim to see the available options.

This is the wrong approach to take. If you wait until after an accident, there might be a breakdown in your business model. Setting up programs and aligning your business with good Workers’ Compensation Carriers can only benefit your business’s future claims process and, more importantly, maintain employee retention.

Businesses typically view Workers’ Compensation as insurance. But Workers’ Compensation is really a benefit. Companies are providing coverage to their employees through wages, medical costs, permanent or partial disability, and death benefits arising from a valid compensable injury while on the job.

Don’t ignore the benefits of a workers’ compensation insurance plan.

The Right Approach

Develop programs within your business organization to complement your Workers’ Compensation policy before an accident occurs, thus taking away unforeseen burdens on your business and employees.

So, what are some of the finer details? Start by contacting your insurance provider immediately.

Business owners review vendor and product options for every part of their business. That should be the case for Workers’ Compensation. Review multiple coverage options and determine what the carrier has in place to assist your business’s safety and training needs..

Developing a comprehensive Workers’ Compensation plan involves viewing your organization from the top down. Some questions that you’ll likely need to answer are:

• What are your hiring protocols?
• What is the implementation process?
• What is your safety process?
• Are there any dependent claims?

Those questions will help you and an insurance agent craft a program that works and doesn’t contain holes.

Meeting an experienced agent will also help you better understand your company’s experience mod (which determines premiums) and the controllable experience mod (a lower experience mod rating can result in discounted premium costs).

Above all, you’ll understand that while Workers’ Compensation is insurance, it shouldn’t be strictly viewed that way. Remember, Workers’ Compensation is a benefit.

For more information on workers’ compensation, be sure to look over Workers’ Compensation laws in Minnesota, Iowa and South Dakota.

Most businesses, will require a Workers’ Compensation insurance policy. You can’t anticipate when accidents occur, so it’s in your interest to ensure your business is protected.

Contact Fortress Union Bank Insurance today to talk to our insurance professionals.

Post updated. Originally published February 2017.

Related articles

• How does a business owner’s insurance policy (BOP) stack up to a custom business insurance policy?
• Manage your risk the way you manage your money
• Business insurance overview for a typical policy [infographic]

The post Are you prepared to handle workers’ compensation? appeared first on Fortress Union Bank.

It might be hard to imagine you or your loved ones needing assistance with everyday activities like eating and getting dressed, but it’s good to be prepared if and when that time comes. According to the Office of the Assistant Secretary for Planning and Evaluation, 70% of adults over the age of 65 will require some form of long-term care service. The problem is, it can be really expensive.

Even if you’re healthy, long-term care insurance can be a decision you make today to protect yourself from major expenses down the road. Need to learn more about making such a future-facing decision? We’re here to help.

What is long-term care insurance coverage?

Just like the term sounds, long-term care insurance helps you climb the financial mountain that long-term health services can be when age, injury, disability, illness or cognitive impairment keeps you from being able to take care of yourself. From custodial care to daily living and personal needs, this type of insurance looks after the human services and benefits that are often not covered by government programs.

Who needs long-term care insurance?

Since 70% of people over the age of 65 need long-term care, the closer you are to that age, the more likely you are to be in need of long-term care insurance. This might seem like something you can worry about later on, but if you wait until you actually need long-term care, it might be too late.

Whether you actually require long-term care insurance can depend on many factors including age, gender, living arrangements, health status, mental health and current or potential disabilities. According to the Administration for Community Living, women outlive men by about five years on average, meaning they’re more likely to live at home alone when they are older. This means women are prone to need long-term care or at-home health care. Also, people who have diabetes and high blood pressure may need more care with age. Take a personal audit of your and your family’s health to determine if this insurance is right for you.

Alternatives to long-term care insurance

Let’s say you feel long-term care insurance isn’t something you need. There are alternatives to assure a comfortable and planned-out future.

An asset-based policy is a hybrid of long-term care insurance and life insurance that allows you to leverage your death benefit to pay for nursing care costs.

An annuity lets you set aside a certain amount of money and receive regular payments over a specified period of time.

Or, starting right now, you can put money into a retirement savings plan to pull from if or when long-term care is needed. Lastly, you can ask a family member or friend to help care for you if you become unable to do so on your own.

What is included in long-term insurance coverage?

Unlike regular health insurance, long-term care insurance includes services that take place both in the home and other care facilities like nursing homes, adult care centers and assisted living.

Medicare and Medicaid services help older adults afford medical expenses and medication, but they don’t cover the cost of long-term care. According to a 2021 Cost of Care Survey by Genworth, the average cost for a semi-private room in a nursing home is around $7,908 per month, and people generally stay in long-term medical care for about 2.9 years.

With a long-term insurance plan, you can receive care in unique and personalized ways, depending on what you need.

Home Care

This insurance covers home care which can include the cost of occupational therapy, rehabilitation or an in-home nurse that could do everyday tasks that have become difficult like bathing and cooking.

Nursing Home Care

For those not needing 24-hour care, nursing homes are a great option and are covered by this type of insurance. Nursing homes provide residents medication reminders, meals and some assistance with daily activities.

Assisted Living Care

An assisted living facility offers care to those who can no longer safely stay in a traditional nursing home facility. Regular meals, check-ins and daily assistance are all offered to seniors through a long-term care insurance plan.

Additionally, long-term care coverage in the United States can help with short-term hospice care or temporary care for those who only need a caregiver for 14 to 21 days. Both of these options can be done in any of the listed settings above.

Benefits of long-term insurance coverage

The main benefit of long-term care insurance is peace of mind. Again, it’s probably hard to imagine you, your spouse or your parents needing long-term care services. We understand. But, investing in coverage now can keep you from wondering “what if.” It’s also a great way to reduce the potential financial burden if something happens you weren’t prepared for.

Coverage premiums can be expensive, but another benefit is they are tax-deductible to you, your spouse or other dependents as long as they exceed 7.5% of your adjusted gross income, according to the Internal Revenue Service Publication 502.

Drawbacks of long-term insurance

The main negative to care coverage is the premium. The price for long-term insurance depends on your age, gender, health, marital status and location and can run anywhere from $1,000 to around $10,000 yearly. These numbers might be daunting but can save you money in the long run.

Ultimately, the decision to buy coverage is dependent on what your priorities are. If you are strapped for cash currently, maybe it’s not the right time to buy. But, if you’re nervous about future expenses or want peace of mind, it’s a great time to look into long-term insurance.

What to know about long-term insurance

While short-term benefits only cover expenses for about a year or less, long-term plans offer an option to renew coverage annually so you can keep the same plan for much longer. It also offers coverage for home care, assisted living, nursing home care and other personal care benefits that short-term care may not.

When searching for a long-term insurance provider, find an organization that is quick to answer questions, interested in giving you personalized care and offers you a price that works best for you.

Long-term benefits for employers

For businesses, purchasing long-term care insurance on a group basis can have a number of key benefits. Companies may receive larger tax benefits and savings if you qualify for a group discount rather than purchasing an individual option. Offering long-term care insurance can also enhance your employee benefit and health care package and be a tool to recruit and retain employees.

If you’re thinking about the future and ready to protect yourself and your family from potential financial burden, contact us today.

Related Posts

• Personal insurance: what you need to be protected
• The importance of life insurance
• Taking inventory of your homeowners insurance

The post What does long-term care insurance cover? appeared first on Fortress Union Bank.

But there’s another crucial component in your financial plan for something that could be more immediate. Income protection is one of those essential pieces.

Ask yourself this question: “If I couldn’t work for six months or a year, what effect would that have on my household?”

If you work full-time and have people who rely on you, it’s probably time to consider disability insurance. Here’s our essential guide.

What is disability insurance?

Disability insurance covers your income if you have an accident, injury, or illness that prevents you from doing your job, or sometimes, any job.

But this doesn’t mean this type of coverage will reimburse your whole income. Typically, it will cover no more than 75% of your regular income.

But if you can’t work and your bills are piling up, disability insurance allows you to pay your living expenses and focus on your health and recovery.

What types of disability policies are there?

There are multiple ways to build policies that fit your needs. But in general, there are two main umbrellas: long-term and short-term.

Short-term disability insurance typically covers your income for up to six months. This insurance type is what most employers purchase for their employee benefits. Long-term disability insurance normally lasts for up to a year.

But in every policy, there will be a “triggering disability,” which will initiate your benefits. The beneficiary will also need a doctor to sign a monthly voucher saying that your disability still prevents you from working.

Ask yourself this question: “If I couldn’t work for six months or a year, what effect would that have on my household?”

Who needs it?

If you are making income independently or have people who rely on your income, it’s time to start thinking about disability insurance. This is also essential for people who are self-employed, which is becoming increasingly common in today’s economy.

This type of insurance works alongside financial planning. More importantly, disability insurance is a simple investment that protects you and your family in the worst-case scenario.

Want to learn more? Listen to our episode of Dream, Plan, Live for an in-depth guide about how disability insurance works for you and your life.

Related Posts

• Personal insurance: what you need to be protected
• The importance of life insurance
• What does long-term care insurance cover?

The post What is disability insurance and why it’s key to protecting you financially appeared first on Fortress Union Bank.