Posted by Taylor Patrick on Tue, Apr 24, 2012 @ 01:34 PM
How Can Mass Commercial Auto Insurance Protect Your Company?
Commercial auto insurance in Massachusetts functions much like personal auto insurance. It provides coverage for bodily injury and property damage to others in addition to physical damage protection for the covered commercial auto. Keep in mind that in Massachusetts any vehicle that has a gross weight of over 10,000 pounds must be classified as a commercial vehicle.
The following rather lengthy sentence describes liability coverage provided by a commercial auto policy: Liability coverage will pay an injured third party for bodily injury and property damage suffered, covered pollution cleanup costs, and legal expenses, if caused by an accident and a result from the ownership, maintenance or use of the covered auto. If the damage is caused by “mobile equipment” (a tractor trailer, for example), this would not be covered under a commercial auto policy, but someone else's mobile equipment would be covered if it was damaged while you were tranporting or towing it with a covered auto.
The physical damage coverage for a commercial auto policy functions much like a Massachusetts personal auto policy would. The available coverages include collision, comprehensive, towing and labor, and may also cover any additional expenses incurred to rent a temporary substitute.
Other coverages are available as well, such as…
Drive other car coverage - Drive Other Car coverage provides coverage for the personal use of a non-owned automobile by a named individual. If, for example, a company officer does not have their own personal auto policy, and drives a corporate car, this coverage will protect them when borrowing a neighbor’s vehicle or renting a car while on vacation with their family.
Non-owned and hired auto coverage - Non-Owned and Hired Auto liability covers bodily injury and property damage caused by a vehicle you hire (including rented or borrowed vehicles) or caused by your employees while using their own vehicles in the course of employment.
The bottom line is, whether your company has a fleet of vehicles, or just a pickup truck or two, you need to protect your vehicles from damage, theft, and liability. More importantly, you need to protect your company’s assets.
I you have any specific questions regarding commercial auto insurance, please do not hesitate to call and speak with one of our commercial producers - 781-893-3200.
Posted by Taylor Patrick on Fri, Apr 20, 2012 @ 01:02 PM
Commercial General Liability Coverage
Businesses are faced with many liability exposures, some of which can arise from ownership of property, business operations on and off the premises, the manufacturing of a product, completed operations, and many others. General Liability serves to protect your business against lawsuits seeking compensation for injury or damages that you are responsible for. Let’s take a look at some specifics…
One part of general liability coverage is to provide protection for business owners who are legally responsible for injury or damage to others as a result of the ownership of premises where the incident took place or business activities on or off the premises. Some examples include:
*A landscaping employee damages the property while operating a lawn mower.
*Someone sprains their ankle tripping in a pothole in your parking lot.
*Someone trips and falls in a stairwell when visiting your premises.
*A child wonders on to a construction site after hours gets hurt playing.
*Someone staying at a hotel is injured when they slip and fall around the pool area.
Contractors can also use general liability insurance to be covered for bodily injury or damages to others arising from the use of mobile equipment, such as forklifts, bulldozers, bobcats, farm machinery, etc. However, the following are typically considered autos and would not qualify for general liability: vehicles used for snow removal, street cleaning or road maintenance. You will want to check with an independent insurance agent to determine what would fall under general liability as opposed to a commercial auto policy.
Also covered under a general liability insurance policy is coverage for finished products and completed operations. This covers your business in the event of a lawsuit arising out of injury or damage to others as a result of the consumption or use of a product manufactured by your business. For example, if a toddler hurts itself playing with a toy, even if he or she wasn’t using it the way it was intended, you could be covered for a lawsuit brought against your business.
There is also coverage for completed operations, which usually involves negligence on the part of a person performing the work or service. For example, a roof is installed and later leaks due to faulty construction, the leak causes damages to other parts of the house.
If you have any specific questions regarding please feel free to contact us.
Posted by Taylor Patrick on Thu, Apr 12, 2012 @ 09:33 AM
General info regarding Masschusetts workers compensation coverage.
Workers’ compensation insurance is a form of coverage which provides protection for employees who are injured as a result of their employment. It also protects the employer against further legal action that an injured employee or dependents may pursue against the employer.
Workers’ compensation coverage does not provide coverage for non-work related injuries and there is no coverage for any injuries that are intentionally self-inflicted. It can also cover against disease or illness suffered due to repeated exposure over a period of time to something harmful such as asbestos.
Workers’ compensation laws were created because as our economy grew increasingly industrialized, the number of work related injuries increased. In Massachusetts, workers compensation laws are compulsory for employers. If a company is unable to get workers comp insurance coverage from the voluntary market, they must do so from the state pool.
Benefits that injured employees are typically eligible to receive include medical expenses, lost income, dependent funeral expenses, or expenses incurred due to rehabilitation. Workers comp can also provide liability coverage for the employer in the event he is sued.
4 things to keep in mind about Massachusetts workers compensation insurance…
- Negligence is not a factor in determining liability for bodily injuries sustained by an employee.
- Benefits will be paid to an injured employee on a periodic basis (weekly or monthly).
- The cost of coverage is paid by the employer (the employee does not contribute like he or she might for dental or health).
- Employers have to purchase workers comp insurance coverage unless they can prove that they have enough money to be self-insured.
Posted by Taylor Patrick on Thu, Apr 05, 2012 @ 12:28 PM
Do you need med pay auto coverage?
Part 6 of a Massachusetts Auto Insurance Policy is a coverage called Medical Payments coverage. What’s it all about?
This optional auto insurance coverage will pay reasonable expenses for necessary medical and funeral (depressing, we know) expenses incurred in an auto accident. It will cover anyone occupying your auto at the time of the accident. It was also cover you and household members stuck by autos as pedestrians. It applies no matter who is at fault. In the state of Massachusetts it is not one of the compulsory coverages.
Exclusions do apply; check your policy for details. Some of these exclusions for medical payments include people using your auto without permission, anyone injured who is entitled to workers comp benefits, or if someone is injured while using the vehicle off public roads.
Also keep in mind the insurance company will not pay for any expenses incurred more than two years after the date of the accident. The standard amount of coverage offered is $5,000 per person, but higher limits of coverage are available.
Even if you have health insurance, which is exceptionally likely in the state of Massachusetts, your insurance may have restrictions that med pay coverage may not have. It is certainly not a replacement for health insurance, as it only covers auto accidents, but it can be a useful supplement and it relatively inexpensive. Talk with your local insurance agent for a more detailed explanation to see if medical payments coverage makes sense for you.
Posted by Taylor Patrick on Mon, Apr 02, 2012 @ 08:14 AM
Some interesting facts about the Massachusetts RMV...
For those if you who don’t follow registry news too closely, a little while back the Mass RMV is now known as the Mass DOT (department of transportation). For many, a trip to the registry is synonymous with a trip to Best Buy on Christmas Eve; extremely long lines and instead of a new plasma TV you get two slabs of tin and a piece of paper. So how did we get to where we are today?
In 1892 the roads of Massachusetts were becoming congested with a combination of pedestrians, carriages, and motor vehicles all competing for space, so a commission was set up to investigate the matter. This led to the creation of Massachusetts Highway Commission.
The first licenses and plates were issued in June 1903, and the first Massachusetts license plate simply had the number “1” on it. You wouldn’t have any trouble remembering that one, would you? They were dark blue and did not come in a standard size, but rather were built depending on how many characters appeared. The plates were originally made of iron, which was replaced by tin in 1916.
The Registry of Motor Vehicles was created in 1919, with the first registrar being a man by the name of Frank Goodwin. His first order of business was to move license plate production to the commonwealth as they had previously been manufactured in Maryland and Pennsylvania. The task was left to a company that used Massachusetts inmates to assemble the plates, and they still make them (voluntarily of course!) to this day. In 1923 Goodwin mandated that the plate be illuminated. Prior to this, it was much easier to evade the police at night.
One of the RMV’s first controversies was over a cod fish that was depicted on the license plate that appeared to be swimming away from Massachusetts. Local fishermen, following a particularly bad year, blamed the new license plates, which were subsequently changed to show the fish swimming towards Massachusetts.
In 1957, Massachusetts license plate dimensions were finally standardized and the first handicapped plates were issued.
Before 1968 registrations expired every year and there was only one place to renew them! Every day in December people would stand in line literally all day in order to get their registration renewed. And we think we have it bad today!
In 1987 red plates began to be issued and today we have more plates than ever before, from various types of veteran plates, handicap plates, Cape Cod plates, Olympic plates, and many more. The Mass DOT mass be far from idea for many residence of the commonwealth, but at least we don’t all have to register our cars every year, at the same location, during the same month!
Click here for a more complete history of the Mass RMV
Posted by Taylor Patrick on Tue, Mar 06, 2012 @ 01:54 PM
Keep an eye out if you are shopping for a new car in Massachusetts.
Massachusetts car buyers are being charged so-called “documentation preparation” fees that can range as high as $400 supposedly for processing paperwork and storage of documents according to a state-wide survey by the Office of Consumer Affairs.
The Office of Consumer Affairs surveyed almost 190 car dealerships across the state asking if these fees were charged, the amount and the reasons for the fees. Almost 70 percent of the dealerships called charged the fees, which ranged from $45 to $399, and the many reasons given for the fees appeared to be very questionable and literally made up by the auto dealerships.
Hey, I knew that salesman on the right the looked kind of suspiscious!
Reasons ranged from a 9/11 security fee to storing documents for eight years at Downtown Crossing to paying insurance agents.
“As consumers gear up for Presidents Day sales, they need to know that in most instances dealerships are hitting them with unnecessary fees claiming they are for paperwork and
Documents.” said Barbara Anthony, Undersecretary of Consumer Affairs and Business Regulation. “We found that many car dealerships are charging consumers exorbitant fees for costs that are negligible and in some cases telling car buyers these are required charges by state or federal law, which just isn‘t true.”
The survey of 180 car dealerships across the state found:
• 128 dealerships charged documentation fees
• Fees ranged from $45 to $399
• About 50 dealerships charged between $275 and $300
• New car dealerships were more likely to charge the fees than used car dealerships
• Dealerships gave various reasons for the fees, including “September 11th and Homeland Security issues.”
Some dealers also claimed the fees were for title or registry purposes. State law requires that title or registry fees must be separately itemized and cannot exceed the cost charged by the registry. The Office of Consumer Affairs will refer some of these car dealerships to the state
Attorney General‘s Office for further investigation. Complete survey results can be found at:
http://www.mass.gov/consumer.
Generally, “document preparation” fees are not revealed until the final stages of a negotiation over the price of an automobile. The Office of Consumer Affairs advises consumers to make these fees part of the negotiation process and to bargain with a dealer to take the fees off the finally agreed upon price.
“Car buyers need to look closely at what they are being charged for.” Anthony said. “And consumers should shop around, especially if a particular dealership tries to hit you with nonnegotiable documentation fees.”
Posted by Taylor Patrick on Fri, Feb 24, 2012 @ 01:55 PM
Is demanding 100amps justified?
Following a home inspection by their insurance company, many people receive the unpleasant news that unless their electrical service is upgraded to at least 100amps, their policy will be non-renewed and they will be forced to get insurance through the more state pool known as the Mass Fair Plan. What gives?
Before we get into the insurance aspect of this, what is the electrical service for in the first place? The amps are the maximum current you can draw at any one time. The more juice you are running through your home, the more amps you need.
If you only have 60amps, Massachusetts Insurance Companies will pretty much refuse to insure your property across the board. Are they justified? That is debatable. The general consensus is that there is nothing inherently unsafe about having 60amps. So why do insurance companies take issue? The likely truth is that they believe homes with only 60amps are indicative of a certain kind of home. This means that homes with 60amps tend to be older homes with fewer electrical outlets, which can lead to people resorting to the use of messy extension cords running under carpets and the like, which increases the risk of a fire. While this may seem like nitpicking, insurance companies work on the law of averages, and although it may not be justified, they feel that on average a home with 60amps is a higher risk than one with 100 or 200.
If you find this explanation to be less than satisfying, we really cannot blame you. Unfortunately, a minimum of 100amps is now the standard for virtually all companies writing homeowners insurance in Massachusetts. It is up to you to weigh the cost between paying for an ungrade, or paying more for your home insurance through the Massachusetts Fair Plan.
Posted by Taylor Patrick on Thu, Feb 23, 2012 @ 08:41 AM
There is nothing fun about getting into a car accident, but here are some steps and info to be aware of to make it less of an inconvenience from an insurance standpoint.
At the scene of the accident.
First thing you should do is to exchange information with any other party’s involved. You will want to exchange full names, phone #’s, and verify the name via their registration. If they don’t show you their registration for whatever reason, make sure you write down the license plate # and the make and model of their car. It is also a good idea to call the police to see if they will come to the accident to fill out a report.
Also, keep in mind that your insurance company is going to want to know the date and time of the accident, town and street it took place, so if you are driving in an unfamiliar area be sure to make a note of what street you are on.
Also be sure to take down the contact info of any witnesses.
Next, contact your agent.
Next, call your insurance agent. They will ask you information concerning details of the accident, including the info you took down at the accident and a brief description of what happened. If you have any general questions about the claim process this is a great time to ask. You agent will then report it to your insurance company. Next, your claim will be assigned to an adjuster at the insurance company and given a claim number for you to reference should you need to contact your company with questions. The assigned adjuster will contact you to obtain and confirm facts of the loss and make an arrangement to get your vehicle appraised, if necessary.
Once the insurance company has collected all relevant information, they will determine liability for the accident, assess all damages, and make sure any other issues have been address.
Getting Your Vehicle Appraised.
If your car is drivable, you have the option to take it to one of your insurance company’s drive in centers to get it appraised. In many cases, this is the fastest and easiest method. If your car cannot be driven, your insurance company will send a licensed appraiser to examine it.
The appraisal will write an estimate, or “appraisal”, of what it will cost to repair any accident related damage. They will give you a copy to give to your auto body shop before they begin to make any repairs.
As motor vehicles are highly complex and sophisticated pieces of machinery, it is possible that the appraiser may not be able to gauge all of the damage done to your car. If additional damages are discovered during the repair process, a supplemental inspection will need to take place. Have the body shop working on your car contact your insurance company, once they have confirmed the additional damages, they will issue another check.
Total loss
If the vehicle is a total loss, this means that the cost to repair your vehicle plus the expected salvage value exceeds the actual cash value of the car. Your insurance company will determine this value and pay you what you are entitled.
Deductible
Whether or not your deductible will apply depends on the accident. For collision coverage, the deductible will apply if you are 50% or more at fault for the accident. If not, it will be waived. If the loss is covered by comprehensive coverage, that deductible will always apply.
Surcharge
In the wonderful state of Massachusetts, if you are deemed more than 50% at fault for an accident, depending on the amount of damages paid, you will be assessed a surcharge on your driving record. For more information on the Safe Driver Insurance Plan, check out our blog on the subject. You can certainly appeal the surcharge; just follow the instructions on the back of your surcharge notice. For some great advice on fighting your surcharge, check out our blog article on that very subject!
Unhappy with your current insurance provider?
Posted by Taylor Patrick on Fri, Feb 10, 2012 @ 09:53 AM
NAIC Reports Massachusetts Auto Insurance Premiums Record Largest Drop in the Nation
A report published by the National Association of Insurance Commissioners found Massachusetts personal auto insurance premiums decreased by 12.7 percent between 2007 and 2009, the time period when the Patrick-Murray Administration's Division of Insurance was implementing managed competition in the marketplace.
The report found the average premium from the end of 2007 to the end of 2009 fell from $1,056.91 to $923.11, a $133.80 decrease. Over the same time period, the national average premium decreased by 1.4 percent. Massachusetts' 12.7 percent decrease is the largest drop in the nation over the time period.
Managed competition started in April 2008, and opened up the marketplace to allow insurance companies to set their own rates and compete for a customer's business. Since its inception, managed competition has attracted 13 new companies into Massachusetts, in addition to the 19 that were in place under the old system. Three of the four largest carriers in the country, GEICO, Progressive and Allstate, have all entered Massachusetts since 2008.
"Managed competition helped Massachusetts drivers see premiums drop at a higher rate than the rest of a country, a benefit we expected to be part of this reform," said Joseph G. Murphy, the Commissioner of Insurance. "Consumers have a larger choice of company, coverage and cost under this system, and shopping around for auto insurance can maximize those benefits."
The report on private passenger automobile insurance was created by the National Association of Insurance Commissioners, reflecting the increase attention to auto insurance rates across the country.
We have noticed at our agency that in the past year or so a number of our companies have issued slight auto insurance rate increases. This was probably bound to happen after rates dropped for a number of consecutive years.
Posted by Taylor Patrick on Tue, Jan 31, 2012 @ 02:00 PM
Here is what to do if you are applying for a new Massachusetts registration...
- If you purchased your car from a dealer, have them fill out an “RMV-1” form for “registration and title”. If you purchased the car from an out of state dealer, you will want to get in touch with your insurance agent who can complete and stamp the RMV-1 form for you.
- Next you will need to have your licensed insurance agent stamp and sign the RMV-1 form for proof of insurance. If you do not yet have insurance, you will need to purchase it before you can register the car. Also, keep in mind that once your form has been stamped, you have 7 DAYS to take the RMV-1 to the registry before the stamp will expire and you will need to get a new RMV-1 completed.
Once you have a completed RMV-1 that has been stamped by your insurance broker, this form must be accompanied by one of the following before you are ready to head down to the RMV:
- If you purchased a new vehicle, you should have the manufacturer’s “certificate of origin”.
- The previous owner’s certificate of title, or
- The previous registration and bill of sale for vehicles exempt because of their age.
- Make sure that the title or the “certificate of origin” includes the following information: the date sold, odometer reading, purchase price, and your signature. If all of this paperwork is in order, you are now ready to go to RMV. Keep in mind that many insurance agents and dealers are willing to take your paperwork to the RMV for you, saving you from what can be a frustrating and time consuming trip.
One more thing to keep in mind: the fees. A 6.25% sales tax will be collected when you go to the registry, based on the purchase price of the vehicle. In addition, there is also a $75 fee for a new registration, as well as a $50 fee for new plates (assuming these are normal series plates and not vanity or special plates). If you are transferring plates from your old vehicle to a new vehicle, the fee is $25 instead of $50. You will receive new plates and a receipt of registration at the RMV, as well as a expiration sticker for your rear plate. Your title will be processed and mailed to you.