Month: April 2019

Negative Equity Gap vs. Finance Gap Insurance

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Deciphering The Differences between Negative Equity Gap and Finance Gap Insurance

When you buy a brand-new car and drive it off the lot, 10 to 30 percent of the value of that car famously disappears. This depreciation is jarring and may seem excessive, but the idea is that once a car can no longer be labeled as new, the selling price takes a dramatic hit on the market. That first mile off the lot may likely end up being the most expensive mile you drive. In addition, in those first moments of driving the car, you will likely owe more for the car through loans or leasing fees than the car is actually now worth.

If you owe more than the car is worth – this is called negative equity, and negative equity can cause you serious issues if your car gets totaled or stolen. If your car insurance policy only pays you for the value of the car – that negative equity gap creates a discrepancy in what they pay and what you owe.

For people who need a car but don’t have the finances readily available – this is where finance gap insurance comes in. Finance gap insurance covers negative equity in most situations, though there are some essential factors to consider.

Loan Terms: The down payment amount or duration of the loan on the new car will dictate the amount of negative equity you’re driving off the lot with. These loan terms will also control how much negative equity gap there is and what level of finance gap insurance is necessary.

Leased vs. Bought: Leasing a car will typically result in more of a negative equity gap, as they don’t require a down payment, the lease payments are smaller, and they only cover depreciation of the vehicle. If you’re leasing a vehicle, check the car lease carefully. They will often include finance gap insurance in the terms of the lease and the required monthly payments, but if they don’t – you should consider separate finance gap insurance coverage. Should a total loss occur – you won’t owe a penny.

Auto Insurance Policy: Similarly, your typical auto insurance plan might include coverage for the negative equity gap and supersede your need to purchase finance gap insurance. However, such inclusions are not automatic, and they may require that certain conditions be met first, such as a large enough down payment and whether the finance terms were within certain bounds, etc. Call your auto insurance provider or read the fine print first, because you might not need extra finance gap insurance coverage.

If you do need finance gap insurance – contact us at Schechner Lifson Corporation, an independent insurance agency that can offer you help in acquiring important auto insurance coverage. With experienced and caring agents, Schechner Lifson Corporation can make sure you get the right coverage at a price that may just be more affordable than you think.

Home-Based Business Insurance: Am I Covered?

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What To Look For In Home-Based Business Insurance

As telecommunication and the ability to work remotely becomes more prevalent, millions of Americans are deciding to take the plunge and become self-employed. Running a business from your home has many advantages – such as the freedom to work for yourself, flexible working hours, no daily commuting, and more. Of course, operating a business out of your own home comes with its own set of unique considerations, and self-employed individuals must take these into account.

If you do decide to make the jump from being an employee to being self-employed, it’s important to get home-based business insurance. This coverage will protect your critical business files, equipment, and operations should anything happen to your home. While you may assume your home insurance would cover the business assets in your home, this is not the case. Using home insurance to cover your business activities could actually end up voiding your home insurance policy!

The circumstances surrounding home-based business insurance can be a little tricky. To make sure you and your business are adequately covered – the following considerations are key:

Business Property Insurance

Regardless of your home insurance policy – home-based businesses must be sure to have additional insurance to cover their business equipment and content. Assuming the home-based business utilizes different devices, electronics, or computer equipment, the value to replace these important tools could easily cost thousands of dollars in the event of a loss.

Product Liability Insurance

If you sell products – an important part of the home-based business insurance coverage is product liability. Such a policy is important to protect you and your business in the event of a product’s failed performance, ensuring a bad shipment won’t bring down your business’s viability.

Professional Liability Insurance

If you are in the business of providing services to people and companies, including professional liability insurance in your home-based business insurance coverage will protect you and your clients from any damages claimed through your actions and services. Again, this type of coverage will make sure your business remains viable even if something goes wrong, protecting your assets and paying for your legal defense.

Business Interruption Insurance

Another important type of coverage to consider is business interruption insurance. While your business property insurance will cover replacing your equipment in the event of a fire, flood, or other covered disasters, your business will also have to deal with interruption of services until you can get your equipment back up and running. Business interruption insurance will cover you in instances where business activities are suspended.

Want to find out more?

Schechner Lifson Corporation is an independent insurance agency that can offer you help in acquiring home-based business insurance. With experienced and caring agents, Schechner Lifson Corporation can make sure you get the right coverage at a price that may just be more affordable than you think. Contact us today to see how we can make sense of the world of insurance, providing you with the best and most affordable coverage possible.

Are You Shopping For Better Group Benefits?

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These Are The Main Advantages Of Group Benefits

An employer will typically offer group health insurance policies to all of their employees, an arrangement that comes with a bevy of advantages for employees and their families. In fact, these group benefits are one of the most attractive selling points for being an employee in the first place, though the offering of group benefits can actually benefit the employer as well.

Employers should shop around annually to adapt to the growth of their business or make any adjustments when needed. Offering the best group benefits available to their employees should become a top priority.

Employee and employer savings

Finding the right level of group benefits is critical for both parties involved. Not only are group benefit packages almost always more affordable than private coverage, employers who don’t seek out the best group benefits will also pay higher insurance premiums. Periodic assessments regarding whether the group benefits offered are the best and most affordable is a good idea for the bottom line of employees and employers alike.

Economies of scale

Simply put, the more people who purchase coverage under the same plan, the more affordable it will be for each person. Health insurance providers are willing to offer better group rates for businesses than they would when offering individual coverages. The larger risk pool spreads out the costs. Insurance providers can provide specific types of coverage that would not be financially viable for individual buyers, such as identity theft insurance. The result is a win-win, as employees get better coverage for less money, insurance companies get more business, and employers get to offer great group benefits to attract and retain the best talent.

Tax incentives

Businesses are incentivized by the tax code to offer group benefits to their employees. The small-business health care tax credit is provided to businesses that don’t just give employees insurance, but also pay a portion of the premiums. This process makes the financial benefits of offering group benefits even easier and more rewarding for the business owner.

Better work environment

The financial advantages of group benefits should not be the only reason employers offer it. When employees receive great healthcare coverage, the general work environment will improve. Employees are more likely to remain loyal and work harder because they feel valued and appreciated. As any human resources representative will tell you, these benefits may be more important than your salary.

Want to find out more?

Schechner Lifson Corporation is an independent insurance agency that can offer your business help in navigating group benefits offerings for your employees. With experienced and caring agents, Schechner Lifson Corporation can make sure you get the right coverage at a price that may just be more affordable than you think. Contact us today to see how we can make sense of the world of insurance, providing you with the best and most affordable coverage possible.

Business Errors & Omissions Insurance

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Which Businesses Need Errors & Omissions Insurance?

When running your own business, having the right type of insurance coverage is vital. Protecting your business equipment, your clients, your business processes, and yourself are essential. Once you’re a business owner, the buck stops at you and not a higher up employer who will clean up the mess. This sense of responsibility can be quite exciting and is a motivator for many to run their own business, but undoubtedly these hefty responsibilities come with unique risks.

What would you do if you made a damaging mistake with one of your clients, an error that caused them financial harm? To avoid the courtroom, legal fees, a harmed reputation, and more – it’s important for your business to have business errors & omission insurance.

What is business errors & omissions insurance?

Business errors & omissions insurance also called professional liability insurance, is a policy that covers you and your business in the event of errors or oversights. If an error or omission in service were to occur, a business errors & omissions insurance policy coverage would help pay for the legal fees and actions necessary to rectify the situation.

Typical business errors & omissions insurance policies will cover professional mistakes, failure to deliver promised services, or professional negligence. Unfortunately, the claims made under these circumstances don’t need to be valid to cause damage: even frivolous lawsuits require a business to take on a load of legal fees in defense, and that can be enough to harm the business irreparably. Business errors & omissions insurance coverage will ensure that won’t happen.

Who needs business errors & omissions insurance?

Lawsuits for a typical errors & omissions lawsuit can run higher than $140,000, and that’s before adding the business’s legal fees, which can also run greater than $100,000. If the occurrence of such a financial hit would put your business at risk, then errors & omissions insurance is a great idea to cover yourself.

The most common business types that require business errors & omissions insurance coverage include the following:

  • Law
  • Medicine
  • Architecture
  • Insurance
  • Accounting
  • Engineering
  • Software Development

Any single unintentional mistake in services provided to a client in these industries could result in financial damage for the client – a financial loss they may feel justified to pursue restitution.

How do you get started?

Schechner Lifson Corporation is an independent insurance agency that can offer you help in acquiring business errors & omissions insurance. With experienced and caring agents, Schechner Lifson Corporation can make sure you get the right coverage at a price that may just be more affordable than you think. Contact us today to see how we can make sense of the often overly complicated and confusing world of insurance, providing you with the best and most affordable coverage possible.

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