Vaught Wright & Bond Insurance, Inc.

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If your business is difficult to insure, you may feel that you have nowhere to go. Perhaps you found coverage, but it is outrageously expensive.

There are many reasons that scare insurance companies away, but most can be overcome. Some of the most common include fire risk or protection class (PC9 for example), business class code (contractors, alarm installation), a history of insurance claims, older buildings, and newer ventures that have not established 3 or more years of  insurance history. There are solutions for almost all businesses, but you have to know what to do, and where to look.

If you have been declined due to brush or fire risk, you may want to simply look at more insurance companies. Many companies use their own brush mapping systems, and there may be a preferred carrier that looks more favorably on your location. Is there a fire station within 5 miles? Is there a fire hydrant within 1000 feet of your location? If the answer is yes, there is likely a carrier that will consider offering coverage to your business.

The same is true for difficult business class codes. Some insurance companies target certain types of businesses. They know the industry and how to write the insurance. The trick is to find the company that wants to insure you. More on that in a minute.

If you had a large claim in the last 3 years or so, you may have found it difficult to find coverage, or your rates may have gone through the roof. You may be in the same situation if you had two or three smaller claims. The secret is in working with an insurance agent with a good reputation and solid working relationships with underwriters. An agent specializing in hard to insure businesses can plead your case, often explaining how you were not at fault, that it was just bad luck, or that you have taken corrective action to see that the claim is unlikely to happen again.

If you are a newer business, again you may only need to look to a good agent who can sell your abilities to underwriters. Maybe it is your first year in business, but you have worked in the industry for 10 years. Oftentimes this is a better situation than someone who has been in business for three years and only has three years of total experience.

Getting the best coverage for your dollar can be more about your insurance agent than it is about your business itself. Agents need to develop and maintain good relationships with insurance companies that allow for open communication and trust. These relationships should be with dozens of companies, not just one or two. When selecting an agent, these are questions you will want to ask. Rather than asking “how much will it cost?”, you should ask “how many companies do you represent?” and “tell me about your experience with hard-to-insure businesses”. “Will you charge a broker fee?”

The coverage is out there; let an agent do the work for you!

BD
VWB Insurance

As the construction industry remains slow, contractors are forced to bid on as many jobs as possible. Some of the better opportunities require bonds just to bid, even if the bid is ultimately lost. If your bid is accepted, you may be required to provide evidence of bonds in addition to the bid bond and contractors license bond. Examples include Performance bonds, encroachment bonds, and payment bonds.

How much do these bonds cost? Unfortunately there is no simple answer. The cost will be based on the size of the job, the risk of the job, and sometimes on your business’ and/or your personal credit and financial strength. Additional factors include the type of contracting you are involved in (B license, etc), and how often you require bonds.

In many cases the bid bond itself will not cost anything, but some bonding companies charge a fee for each bid, sometimes $100. If your bid is accepted and a performance bond is required, the cost will be based on the size of the bond, usually 1-2% of the contract amount. The percentage cost generally drops as the size of the contract increases.

The good news is that most of these bonds are not too difficult to get, or at least to apply. That part is generally free. Once the initial process is completed, subsequent bonds are much easier. If your credit worthiness is not acceptable, there are other markets that are potentially available. The cost may be higher, but if you can secure the bond, you can get to work.

Let us know if you would like to get the bonding process started. It should be pretty painless and we are happy to help. You can call or click the link to bonds above.

(800)652-0168

http://vwbins.com/bonds/

To the general public, farming is a slowly changing profession. It is perceived as an annual routine of plowing, planting, irrigating, and harvesting. With it’s ever-changing nature, nothing could be further from the truth.

The business end alone requires endless study to stay current on product markets and demands. Varieties and clones, as well as growing techniques are also in continual evolution. When I graduated with a degree in Ag Economics in 1984, I naively believed I knew everything there was to know about farm management. I would never have known that within 10 years, most of what I learned ways already obsolete. Now that I am in the insurance industry, I have seen the insurance needs of farmers change just as quickly. As a result we added every possible market for coverage. Every farm is different and requires customized coverage. In our local counties alone (El Dorado, Amador, Placer, and Calaveras) we have dozens of specialized farms including vineyards, Christmas trees, fruit trees, hydroponics, and animal farms. If I include nearby counties such as Sacramento, Yolo, Colusa and San Joaquin, there are hundreds more.

The good news is that the correct insurance policy is available. It takes a few minutes, but it is essential to carefully analyze the exposures you face. The best value policy can then be tailored to fit your operation.

To get your quote started:
BEST FARM INSURANCE COVERAGE

To contact a farm insurance specialist:
FARM INSURANCE CONTACT

For California workers compensation, shopping online is fairly easy. There is less variation than with other lines of insurance, so it is a lot easier to compare apples-to-apples. Some companies are better than others, but the products are very similar.

When quoting and purchasing workers compensation insurance, it is essential to be properly classified. Other than accurately forecasting payroll, improper classification is probably the most common and expensive mistake. Audits, often performed annually, can lead to large increases in premium. For example, say you have a bookkeeper or a receptionist. If that employee ever assists with work other than clerical (maybe gets up to help with a customer during a busy time) they must be classified at the higher of the two rates, even though the work is only incidental.

Another important classification is for owners or corporate officers. Generally either may be excluded from participation, but it is important to remember that they will not have coverage under the workers compensation policy.

Be sure to speak with your agent to avoid common mistakes. The cost for the insurance will be the same, but your agent may have additional ways to save money. Click below to get a quote, or contact us with any questions. We are here to help!

Workers Compensation Quote

800-652-0168

AARP’s auto insurance discount program has finally arrived in California through a few select agencies. We have been anxiously awaiting it’s arrival, as the savings are huge. In many cases you will save 25-40% off your current premium!

The cost of membership is a bargain, and there are many other  benefits included. The minimum age requirement is only 50 years of age to qualify. Contact us today and in only a few minutes of time we will provide you with a money saving quote. The coverage is issued through Hartford, so you know the coverage is top-of-the-line!

(800) 652-0168

Start your quote here!

I doubt that most people realize that the majority of drivers convicted of DUI are not the stereotypical alcoholic; dirty and disheveled, with red, bloodshot eyes. In fact, most drivers convicted of driving under the influence are normal people who made a one-time mistake, or lapse in judgement. Furthermore, inexperienced drinkers are less able to cover their diminished motor skills and are more easily detected, even at levels just at, or slightly above the legal limit.

Insurance companies are aware of this, and many of them love to insure drivers convicted of DUI. As you are certainly aware, the rates are high, and the companies know that most of these drivers will not repeat the behavior that got them into this situation. In short, the increased risk of paying claims does not match the higher premium.

Here are some ways to save money on insurance after a DUI conviction:

Drive a low value vehicle that does not require physical damage coverage. If you can insure for liability and property damage only, you could save thousands of dollars.

Find a company that only charges for the violation for 3 years. A few of our companies, Progressive and Unitrin for example, only charge for three years. Most companies charge for five or more years.

If you are on a policy with other family members, consider obtaining a separate policy. This can be a big money saver, but generally you will be excluded from driving any of the vehicles that are not specifically on your policy.

Some companies charge large fees for SR-22 DMV filings. Be sure to ask if there is a fee for the filings, and how much it is. SR-22 filings are required to maintain your drivers license.

These are just a few ways to save, and an agent will be able to help further. Don’t be discouraged, some of the rates are now getting competitive.

VWB Insurance quotes webpage
(800) 652-0168

CLICK HERE TO START YOUR QUOTE ONLINE!

Many businesses are required to carry a bond. Sometimes it is required by a government agency, or sometimes it is a business looking to protect themselves. The most common types that we see are contractors bonds, janitorial bonds, DMV bonds, and Notary bonds, but there are dozens of other types. Among non-business bonds, we see a lot of lost trust note and court bonds. Although it may seem complicated to purchase, the process of becoming bonded is usually quite simple.

Depending on the type of bond you need, a short application is generally all that is required. Because a bonding company may have to pay a claim on your behalf, they will want to assess your ability to repay those funds. For this reason, good credit can help you obtain a better price on your bond. If you have less than stellar credit, it does not mean that you can’t get the required bonds, but you may need to provide additional paperwork and pay a bit more.  For that reason, we maintain appointments with several bonding companies. There is almost always a company that will issue it.

If you would like more information, or to start an application, feel free to contact our bonding specialists.

(800) 652-0168
info@vwbins.com
Click for Bond Department Contact Information

As a licensed insurance agent, I hear this question all the time. Unfortunately, even agents frequently do not understand how it works. I will attempt to simplify it so that it will make sense; at least so that you have a basic understanding.

When insuring a building, you are expected to insure it for its full replacement cost. This means the cost to replace the building if it were completely destroyed. Some building owners, knowing that it is relatively unusual to lose the entire building, attempt to save money by purchasing insurance for less than the true replacement cost. To guard against this, a co-insurance clause is in many policies. If the policy has an 80% coinsurance clause, you are required to insure it for at least 80% of its replacement cost. If you do not, and you have a claim, you are penalized by a ratio of what you should have purchased.

Explaining the math is where it gets confusing. Here is a rough example where we will use a $0 deductible to simplify. If the true replacement cost of the building is $200,000, and you have an 80% coinsurance clause, you would be required to carry insurance in the amount of $160,000 (80% of $200,000). If you only carried coverage for $120,000, you would be $40,000 short or only at 75% of the minimum required amount. If you incurred damages in a fire totaling $50,000, you would only receive compensation for 75% of the loss, or $37,500. That would leave you with $12,500 to pay out of your own pocket.

This is admittedly a simplistic example. There are other factors that could come into play, including actual cash value, etc, but you should still be able to see the potential for a very bad situation. In all likelihood your buildings have a lot higher value than $200,000, and a claim amount could go a lot higher than $50,000.

Be smart and discuss coinsurance with your agent. We have seen too many situations (not our clients of course!) where good people have been burned by their coinsurance clause. There really is no excuse for it.

www.vwbinsurance.com
800-652-0168

Bonds are frequently confused with insurance, but they have some major differences. A primary difference can be summarized as follows: When you purchase an insurance policy, you are protecting yourself against a loss. When you purchase a bond, you are protecting someone other than yourself, or promising to make payment against a loss. Sound confusing? Let me provide a couple of examples.

If you buy a homeowners policy, one of the purposes is to protect yourself against someone stealing your possessions. If you are burglarized, you file a claim and the policy reimburses you for the cost to replace the stolen property. Now, say you hire a maid service to clean your house. Hopefully the maid service is bonded. If their employee steals from you, you could be reimbursed from their bonding company.

After you are paid for your stolen items, another major difference between insurance and bonds occurs. The bond holder is still responsible for repayment of the damages to the bonding company. This can be tough to swallow, but the bonding company will expect full repayment of any monies they pay out on the holder’s behalf.

Since the bonding company will want to collect back what they have paid out in a claim, there is another major difference between bonds and insurance; qualifying. Depending on the type of bond, good credit and proof of assets may be required. Fortunately we have a large selection of bonding companies, and some are much easier to qualify for.

I have provided only a brief overview of bonds. Bonds have many other purposes, including DMV, lost trust notes, contractor’s licensing bonds, bid bonds, notary bonds, just to name a few.

Most bonds are easily obtained. If you have questions, or are in need of a bond, please contact our bonding department: info@vwbins.com   (800)652-0168.

A salesman was excitedly telling of how he had finally made the big sale he had been targeting for weeks. “But man, he really Jewed me down on the price.”

Although he meant no harm, he claimed that he didn’t know where the expression even came from, this is a real-life example of how an ignorant statement, or any brief lapse in judgement can lead to a large lawsuit. It turned out that the receptionist sitting nearby was Jewish. She sued her employer, a husband and wife team with only a few employees, and later settled out of court for a five-figure payout.

We frequently hear employers say that they trust their employees, and don’t need EPLI coverage. It is foolish for such intelligent people to be so short-sighted. Any relationship can change, or even an employee’s financial condition can change such that what may have previously been a light joke at work, is now an opportunity to capitalize. Even payroll, missteps can turn into larger issues.

The realm of claim possibilities is so vast in the world of employment liability that it is essential to speak with your agent and discuss which policy best suits your situation. Don’t forget to ask about including 3rd party liability. With the onset of ADA claims, especially in California, there are ways you can obtain some protection with your policy. EPLI is now considered a standard, necessary coverage, along the lines of worker’s compensation or general liability.