Insurance Articles

Once upon a time, general liability insurance was reserved for a select few business owners in high-risk industries. Today, all that has changed.

Lawsuits are a common threat for large- and small-business owners alike. As the cost of defending a claim continues to increase faster than the rate of inflation, even the most cautious business owners may face financial ruin - even if the case is eventually dismissed.

Fortunately, the solution - general liability insurance - is simple and cost-effective.

General liability insurance is simply a policy that provides additional protection against the assets of a business in the event of an accident, injury or other damage.

The policy typically covers the cost of legal representation and face value of a judgment in the event of a successful lawsuit.

It does not protect the personal assets of the business owner, just the company assets.

Purchasing general liability insurance is fairly straightforward, but it does require a bit of advance planning and preparation.

Following are some things to keep in mind:

For example, an insurance company will need a copy of your business name, industry classification, address and other pertinent information.

An insurance company can help you find the policy that meets your needs, taking into account limitations and exclusions.

It may be more affordable to bundle general liability insurance with a business owner policy if the business requires only a minimal liability policy.

Small-business owners are accustomed to doing annual employee reviews, audits and reviews of existing inventory.

Unfortunately, many forget the most important annual review of all - to look at your insurance needs.

There are several reasons your business might need to increase or decrease insurance coverage.

Following are some of those reasons:

Property and Casualty Coverage: Have you purchased or disposed of property or equipment? If so, it may be time to update your existing policy to reflect changes to capital investments.

General Liability: Expansion of the physical property, new locations and expanded product or service offerings may require additional layers of liability protection.

Health, Disability and Other Employee Benefits: New hires, especially those in critical positions, may change the overall status of health insurance premiums for the entire company. Take time to carefully analyze the needs of employees versus expenses to find the right balance between cost and benefit.

Commercial Auto Insurance: Whether you have an entire fleet of company-owned vehicles or simply use employee vehicles to run errands, take time to audit transportation trends. Be sure to speak with your insurance agent about mileage adjustments, accidents or other changes.

Key Employee Insurance: Critical employees, including the primary business owner, may require special insurance to protect the company in the event of a disability, injury or other situation where specialized knowledge or skill is required, especially if the business plans to seek outside investment or financing.

Umbrella Policy: Savvy small-business owners may want to invest in two umbrella policies - one for the business and one for their personal coverage. Umbrella insurance, also known as excess liability, provides protection against claims that may exceed the normal policy limits. As the business grows, it is important to increase the limits of coverage without breaking the bank. Umbrella insurance allows business owners to reduce risk without making major changes to the primary policy. Instead, the insurance can grow as your business grows, simply by adding an umbrella policy to enhance the existing coverage options.

Workers’ Compensation: Workers’ compensation costs are not set in stone. Instead, they are a reflection of the overall industry, individual record and general classification structure of the company. Doing an annual audit ensures that the latest information remains up to date and potential deductions are taken into account.

Bonds: If your business deals with issues of trust and security, bonds are already a big part of your business. Changes to employee status can have a profound impact on your bottom line and business reputation. Make a point of knowing how employee conduct both on and off the job may impact your company.

Equipment Coverage: Contractors and others concerned with the loss of equipment, vandalism or destruction of property should invest in ample equipment coverage, especially if it is an expensive investment or critical to the operational success of an endeavor.

Extended life expectancies and volatile markets have led many retirees to annuities - and many of them are using a strategy called “laddering” to take advantage of potentially rising interest rates.

An annuity is essentially a contract with a life insurance company.

You pay the life insurance company and it, in turn, guarantees you a stream of income.

With an immediate fixed annuity, you pay the insurance company a lump sum and it promises you regular, fixed payments for life that are usually based on current interest rates.

In today’s low-interest-rate environment, depositing a significant amount of your portfolio in an immediate annuity may not seem wise.

If you believe interest rates will rise in the future, though, you can potentially protect yourself by laddering your annuities.

With laddering, you invest in a number of immediate annuities in stages over a period of time.

For example, you might buy an annuity every year for five years or every five years for 15 years.

This strategy has two potential benefits.

First, if interest rates rise, the annuities you purchase later will be based on a higher interest rate and thus generate a higher income stream.

Second, the older you are when you buy a fixed immediate annuity, the higher the payout you’ll receive.

There are no set rules for staggering your annuity ladder, but in general you may want to consider completing your ladder about halfway between your current age and your life expectancy age.

So, an investor who is 65 and has a life expectancy of 85 may want to complete his or her ladder in 10 years.

It is best to consult an insurance agent to help you determine if an annuity ladder is suitable for your needs, and if it is, construct it so it best meets your retirement income needs.

Many investors approaching retirement don’t think they need annuities, but the lifetime income they offer can add security to portfolios that consist primarily of stock and bond funds. This is particularly important when markets are volatile.

An annuity is essentially a contract with a life insurance company. You pay the life insurance company, either in a series of payments or a lump sum, and it, in turn, guarantees you a stream of income for a specified period, often life.

Annuities have long been considered important retirement planning tools, but today, in wake of the downturn of 2008 and 2009, they’re getting even more attention. That’s because so many investors were forced to delay retirement.

Any market downturn that hits just before retirement, or during retirement, can leave even conservative investors with a much smaller nest egg and little time to recoup the losses.

According to the Financial Research Corporation, a 65-year-old retiree with a $1 million portfolio of stocks and bonds who withdraws an inflation-adjusted $45,000 a year has a 25% chance of running out of money before age 92. On the other hand, if the same retiree invests $600,000 in stocks and bonds and $400,000 in an immediate annuity, and withdraws the same inflation-adjusted $45,000 a year, he or she only has a 6% chance of running out of money before age 92.

In other words, if you invest a portion of your retirement funds in an annuity, you’ll have a dependable income stream for life - and that’s important in a retirement portfolio.

Employment practices liability insurance (EPLI) helps protect small business owners from claims that arise from employees in relation to how the owners conduct their business.

For example, employees might file a claim for discrimination, wrongful termination, sexual harassment or wrongful discharge. With the average settlement for this type of claim now approaching $180,000 to $250,000, it is easy to understand why more small business owners than ever are taking steps to protect themselves from this growing threat.

Following is some information to help small business owners choose EPLI:

Determine Coverage: EPLI can provide coverage for employees, independent contractors and even leased employees as well as third-party providers such as salespersons. Coverage for off-site, remote and independent contractors is especially important, given the lack of direct supervision associated with performance.

Determine Deductible and Other Limitations: EPLI can be purchased in amounts ranging from $1 million to $25 million with corresponding deductible levels. Many policies will also include specific exclusions that limit or omit coverage during events such as a merger or major downsizing. Criminal conduct or other deliberate actions are also excluded.

Determine Your Small Business Risk: Every small business should have a written code of conduct as well as other pertinent personnel policies in place. Your agent may ask to review these before making a final determination on the cost of the policy, so be sure to keep them up to date and reflective of the day-to-day operations and expected conduct of employees. Nonprofit organizations are also at risk.

Determine Effective Dates: Policies are written on a “claims made” basis, and a policy must be in effect before a claim will be considered. Retroactive claims are available only as a special policy addendum and are most frequently used in combination with an acquisition or other unique event.

Annual Review: EPLI may be part of a comprehensive directors and officers policy or a stand-alone policy. It is important to do an annual review. Be sure your insurance changes with the company, including new situations, growth or downsizing, or other unique needs and demands. Ask your agent to coordinate each form of insurance so they complement rather than compete with one another.

Prevention is Still the Best Policy: The very best plan of action is to try to prevent this type of litigation from occurring in the first place. In a perfect world that may be possible, but today even the most diligent business owners face financial ruin from an unfounded lawsuit. According to the Society for Human Resource Management, 57% of respondents to a survey indicated their organization had faced an employment-related lawsuit in the prior five-year period. Even if a business owner wins, though, the owner may still be on the losing side simply due to the cost of defending the company. In fact, it’s not uncommon for employers to settle out of court in an attempt to cap out-of-control costs. By working with a knowledgeable agent, it is possible to develop a plan of action and human resource guide that reduce the bad behavior and unanticipated outcomes that could result in an employee-related lawsuit.

Film insurance used to be a rarity reserved only for big-budget Hollywood films.

Today, all that has changed as film and media go mainstream.

Small business owners, museum archives and even rare family events are just a few of the important types of documentation to be found on film.

Protecting against the loss of a major investment or rare footage is more important than ever, especially given the proliferation of computer imaging techniques capable of altering images with the click of a button.

Following are three tips to help you purchase film insurance:

Consult Your Agent: Ask your agent if you need a stand-alone policy or rider. Depending upon the value, importance, rarity and other factors it may be possible to add a rider to an existing policy rather than purchase an independent policy. Rare footage, significant investments or expensive film projects are often better served by an independent policy.

Decide on Principal Production, Postproduction or Both: Once you determine the need for a film insurance policy, it is important to understand the differences between principal production and postproduction. Principal production provides insurance for the actual creation and shooting of the film, including script, actors or those items that would impact the producer. Postproduction may include major mishaps related to the computer-generated upgrades or modifications used to restore or enhance old archives.

Understand the Risk: Every situation is unique, so it is important to properly identify risk. For example, a business owner may encounter an inadvertent intellectual property infringement or perhaps an especially difficult actor during the filming process. Rough terrain, perilous filming situations, aging or out-of-date transfer of old film archives, or even a 3-D project gone bad can each impact the price, deductible and exclusions of the policy. Film insurance is a specialty product, but one that is exceptionally affordable.

Many long-term-care (LTC) insurance policies are designed to protect individuals and insure just one person.

When it comes to couples, though, what happens if one spouse or partner needs more coverage than that offered by the individual policy?

Many insurance companies have addressed this need with shared-benefit LTC options.

LTC policies that offer shared benefits enable spouses or partners the ability to use some or all of the other’s benefits when their own have been exhausted.

And they can often do so for a premium that’s less than purchasing additional coverage outright on each separate policy.

For example, if a policy offers three years of benefits to each spouse or partner and one has used the pool of benefits dollars for three years, then the benefit for that individual will continue by dipping into the other partner’s pool of benefit dollars.

While these “shared care” types of LTC policies typically cost more than buying two separate policies, they allow policyholders to buy a policy with a shorter benefit term with a “pool” of benefits that both insured individuals can share.

In addition, some shared-benefit LTC policies now offer a provision to protect a surviving spouse or partner.

For example, if one partner passes away, the survivor’s policy benefits will go up by the amount of the deceased spouse’s or partner’s unused benefit dollars.

Some policies even offer the option for the surviving partner to buy a new LTC policy without the need to go through medical underwriting - even if the individual has poor health and would otherwise be disqualified.

Purchasing a shared-benefit LTC insurance policy - especially one that offers survivorship benefits - can help to protect spouses or partners from greater-than-expected LTC expenses, as well as help to avoid the risk that a deceased spouse’s or partner’s unused LTC benefits will disappear.

Underwriting is a part of purchasing any type of insurance policy. When an applicant applies for insurance, the person is essentially asking the insurance company to take a chance on him or her. Thus, the insurer is taking a risk.

In the case of life insurance, the chance is that the applicant’s life will last as long as the average life expectancy for individuals of that particular gender and age. And if the insured lives as long as expected, then after death the money paid in premiums has created enough investment income for the insurance company to make a profit once proceeds are paid to a beneficiary.

Underwriters for different types of insurance look for different factors when initially underwriting a policy. For instance, with life insurance, underwriters look for conditions that could possibly cause an early death of the applicant. This could include heart conditions or other types of issues that are likely to cause an early death.

If an applicant has such a condition, chances are that the person will be denied life insurance coverage. This is because the early death of an insured would actually cost the insurance company a great deal of money in comparison to the small amount of money they are likely to receive through premiums.

Conversely, underwriters on health insurance policies look more for conditions that would not cause an early death, but rather would cause long periods of health or medical treatments. For example, someone with diabetes is likely to live a long life but will require years of medical treatment and medications, costing the insurer a great deal more than the insured has paid in premiums.

A major benefit of choosing an annuity as a retirement savings vehicle is the tax-deferral advantage. Tax-deferred assets grow untaxed, meaning that interest, dividends and capital gains earned on the investments appreciate until they are withdrawn.

Following are three benefits of tax deferral:

No Taxation During Accumulation: Because returns are not reduced by income taxes every year, tax deferral lets you experience potentially higher overall returns during the accumulation phase.

Compounding: This is the process by which the money you make from an investment can be reinvested to make even more money. As a hypothetical example, let’s say you have invested $10,000 and it earns interest of 10% per year. In the first year, you will earn $1,000 in interest. In the second year, you will earn $1,100 in interest. Why? Because not only does your initial investment of $10,000 accrue interest, but also does the additional $1,000 you earned in the first year.

Potentially Lower Tax Rate Upon Withdrawal: You probably will not withdraw the assets you are accumulating in a tax-deferred account until later in life when you could be in a lower tax bracket, so you will also possibly minimize the taxes you have to pay on withdrawals. Your advisor can help determine if an annuity is a good tax-deferred investment vehicle for you.

The legal and tax information contained in this article is merely a summary of our understanding and interpretation of some current provisions of tax law and is not exhaustive. Consult your legal or tax counsel for advice and information concerning your particular circumstances. Neither we nor our representatives may give legal or tax advice.

The basic benefit of investing in a fixed annuity is the potential for a guaranteed payment.

But just how should you use an annuity?

How much money should you put in an annuity versus other types of investments?

First, it is important to remember why you are investing in a fixed annuity in the first place.

Whether the economy or markets are performing well or performing poorly, a fixed annuity will provide you with a minimum amount of income every month.

This can be appealing to investors who are looking for a stable level of income.

So, when it comes to allocating a portion of your overall portfolio to a fixed annuity, most financial advisors will recommend that you look at how much income you will need and for how long you will need it.

A financial advisor will also recommend you look at whether your assets can provide that level of income without achieving substantial growth.

If you don’t need your assets to grow significantly, you can put more of your money into a fixed annuity.

On the other hand, if you need significant growth in your portfolio to provide you with income for life, your advisor may want to allocate less to a fixed annuity because better returns may be available by investing in a diversified portfolio of securities.

As a result, there is no single answer for how to use annuities in your portfolio.

Some investors will put no more than a third of their assets in annuities.

Others will put three-fourths of their assets in. That’s a big difference.

Your advisor can help you determine how much of your nest egg to allocate to a fixed annuity in order to receive the amount of income you will need.

Contact your advisor today for details.

One of the worst possible scenarios for the average small-business owner is the inability to conduct business. It could be due to a natural disaster or something as small as a major supplier going out of business.

Whatever the cause, the impact is clear - a loss of earning potential and inability to fulfill orders or conduct business.

Fortunately, there is a way to prepare for the worst by purchasing business interruption insurance.

This special type of policy provides protection in the event a business is not able to operate or function. It typically will reimburse the business for lost profits and provide additional funds needed to pay continuing expenses, including the need to reopen in a temporary location or the cost to relocate. Unlike traditional insurance policies that cover damages liability claims or damages to property, business interruption insurance helps offset the indirect costs associated with other losses.

Many small business owners find this an invaluable form of protection. In fact, nearly any small business owner who cannot afford to lose an income stream is likely to benefit.

It is becoming standard practice for business partners, suppliers and providers to demonstrate some level of interruption insurance or other accountability in order to become an exclusive vendor.

Otherwise, it’s wise to have a secondary supplier for critical items or services.

Small business owners wishing to compete for exclusive service rights are especially likely to benefit from the additional layer of protection that is offered by interruption insurance.

Small-business owners who don’t have environmental pollution insurance may be at risk and not even know it, according to industry experts.

Environmental pollution coverage was originally designed to address the needs of corporations involved in large lawsuits or unintended financial hardship related to catastrophic losses associated with spills, leaks or other unanticipated events that impacted the environment and health of the surrounding community.

Today, the list of adverse events has grown to include legal liability for pollution, cleanup costs, loss of income to other business owners, injuries and disruption of services.

Due to changes in the law and a more complex supply chain, even small business owners may be at risk for environmental pollution and related damages. Farmers, trucking and distribution providers, small manufacturers, and even dry cleaners are just a few examples of small business owners that have been hit with big lawsuits due to the impact on the environment.

Waste products and chemical spills are common causes of concern and are likely to impact other small business owners such as contractors and consultants. In fact, real-estate-related concerns are one of the most significant sources of environmental and pollution-based litigation, especially those concerned with remodeling or remediation. Specialty trade and general contractors are all at risk.

Environmental pollution policies can vary widely, but most are written on a “claims made” rather than occurrence basis. Coverage usually includes legal liability, cleanup costs, restoration and development, transportation insurance, storage pollution liability, property transfer, secured creditor, and closure/post-closure related expenses. Both on- and off-site pollution and contamination can be included, with coverage for bodily injury, property damage and cleanup costs.

Small business owners seeking to buy or sell property or other business assets are increasingly calling for environmental insurance policies to be in place prior to the sale. In fact, buyers and banks are likely to back away from a deal without the protection of pollution insurance in place.

Because policy terms tend to be longer than average, it is important to plan ahead. Environmental pollution policies can be difficult to find, especially if there has been a prior claim or certain types of high-risk business associated with the property. Common examples include drycleaners, medical or vet offices, or even gas stations. In fact, even clean sites without a history of spills or toxic chemicals may still encounter problems obtaining coverage due to the adjacent properties, further exacerbating the total extent of the problem.

Finally, changes to reporting by CEOs and other top brass have resulted in renewed interest in pollution and environmental coverage. Under the new guidelines, officers are required to personally sign off on corporate financial statements, including potential liability concerns related to environmental damages.

Fortunately, it’s possible to find cost-effective premiums based upon the specifics of your business. Just ask your agent about environmental pollution protection.

Does your homeowner policy provide protection against catastrophic events? Most people assume it does, but the reality is often far removed from common expectation. Following are some things you should know in order to obtain the right policy for your home and family:

Catastrophic coverage includes rare events, ranging from wars and terrorist events to sinkholes, earthquakes and other natural disasters. Most insurance policies omit deliberate destruction or social events such as war or terrorist attacks since these events occur outside the normal day-to-day function of society. On the other hand, natural disasters can also result in catastrophic losses to an individual or group of individuals but are within the normal dictates of anticipated events.

Most homeowners will not need every form of catastrophic coverage. Depending upon where you live, some events are more likely than others. For example, Florida residents may be prone to hurricanes and sinkhole damage, but those issues are of little concern to residents of other states.

Sometimes the difference between standard coverage and catastrophic coverage can be difficult to ascertain. It’s vital to speak with your agent to determine the right cost/risk ratio for your situation.

Catastrophic coverage should be purchased as soon as possible because it’s often too late once an event has occurred. Underwriters are not able to write new hurricane policies once a storm is scheduled to arrive.

There are many types of life insurance on the market these days.

One of the most popular is term life insurance.

But figuring out whether you need it and, if so, what type of policy is best can be the tough part of the whole exercise.

Following are some of the basics about term life insurance:

Term life insurance provides coverage for a specified number of years in exchange for a specified premium.

It does not accumulate cash value.

Three main factors should be considered when looking into term life insurance.

The three factors are:

• The face amount or the type of protection provided
• The premium
• Length of coverage

When it comes to the type of protection provided, the most common types of term life insurance include:

• Level
• Annual renewable
• Mortgage insurance

Level term policies have a premium fixed for a period of time that is longer than a year - usually five, 10, 15, 20, 25, 30 or 35 years - although at the end of the term, some policies contain a renewal option. These policies are often used for long-term planning because the premiums remain consistent.

Annual renewable term policies are one-year policies that the insurance company guarantees will be matched or beat - without regard to the insurability of the policyholder, and with a premium that has been set for the insured’s age at that time - upon expiration.

Mortgage insurance policies usually have face amounts that are intended to equal the amount of the mortgage on the residence of the policyholder.

Clearly, life insurance is complicated, so it is best to contact an agent if you are interested in a policy.

Numerous adjustments are already being made to the new health care reforms, and with these come questions about how and when all the changes will go into effect. One of the most hotly debated topics having to do with the new laws is how pre-existing health conditions will be handled.

While many feel the ideas behind President Barack Obama’s plan are good, the number of Americans locked out of obtaining health insurance due to pre-existing conditions may not be as bad as originally indicated. Only about 8,000 people have taken advantage of health insurance options offered to high-risk individuals. Because of that low number, the government has now cut premiums for these high-risk pools and expanded some of the benefit options to entice new applicants.

The truth is, though, that many people with pre-existing health conditions may not even need to rely on the government’s program.

In fact, although there may be some restrictions in coverage, a number of insurance companies will provide health insurance to people with pre-existing conditions.

Oftentimes, applicants will be required to pay higher premiums for coverage, or they may need to undergo waiting periods - sometimes between 12 and 24 months - before having their pre-existing conditions covered. But, before assuming that the options in the health care reforms are the only choice, it is a good idea to check with a good health insurance broker regarding insurance for those with a pre-existing condition.

Medicare Part D is a federal program to subsidize the costs of prescription drugs for Medicare beneficiaries.

It was enacted as part of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 and went into effect on Jan. 1, 2006.

Anyone who is considering Medicare Part D, or those who are current policyholders, may be familiar with the term “donut hole.”

This refers to the range of total spending on prescription drugs where all the costs must be covered by the policyholder out of pocket.

In the past, Medicare Part D policyholders were essentially forced to choose between higher premiums or potentially paying a great deal of money out of pocket in order to bridge this coverage gap.

But as of January 2011, people with Medicare receive a discount of 50% on the covered brand name drugs that they need while they are in this coverage gap, or “donut hole.”

And, they will also begin to pay less for generic drugs.

In fact, after paying an annual deductible of $310 (depending on the Part D option chosen), Part D policyholders will pay a co-payment for their medications, and Medicare Part D will pay its part for each covered drug, until the combined amount - which includes the $310 deductible - gets to $2,840. At that time, policyholders are considered to be in the “donut hole.”

But, whereas previously the policyholders were then required to pay the full cost of their prescription drugs while in the “donut hole,” now they will get a 50% discount on their covered brand-name prescription drugs. And this “donut hole” discount will continue until the policyholders’ total out-of-pocket cost reaches $4,550. Once this amount is reached, the coverage gap will end, and other than some small co-payments, the Medicare prescription drug plan will pay most of the cost of the policyholders’ prescription drugs throughout the remainder of the year.

Many adults - even those who have quality health insurance coverage - do not add their children to their dental insurance plan. However, this can be a mistake.

Tooth decay is the most common chronic illness found in children. In addition, recent research has linked oral health infections to serious health conditions such as diabetes, lung disease and even stroke.

Overall, serious dental problems in children may lead to other issues such as low self-esteem, long-term depression or stress, and they could even interfere with basic functions such as eating, speaking and swallowing. With this in mind, it is important to include children in group dental plans, if that is an option. Otherwise, pediatric dental plans are not difficult to find. In fact, many can even be found within standard family dental plan programs.

Many pediatric dental plans are geared completely towards the needs of young individuals. In fact, oftentimes pediatric dental plans use dentists who specialize in working with children’s teeth as well as on their other dental care needs.

Placing a child on a pediatric dental plan can also help to ensure they will have fewer problems with their teeth later in life. It is important to have them checked when they’re at an age when they’re susceptible to damage. Meanwhile, a pediatric dental plan can also provide a parent with peace of mind from knowing that, if there is an issue, it will likely be covered with very little out-of-pocket expense.

Whether you are shopping for an underage driver or have had more than your share of fender benders, finding high-risk auto insurance doesn’t have to be a hassle.

Fortunately, there are some effective strategies to help reduce the cost without sacrificing coverage options.

The first step is to determine whether you really are high risk.

Auto insurance underwriters tend to have different criteria, so it’s a good idea to understand what your auto policy expects for “preferred” and “standard” drivers.

High-risk drivers tend to have several criteria in common, including being young or inexperienced drivers, having an excessive number of tickets and accidents, or having a history of driving under the influence or other infractions.

In many instances, it is possible to reduce the cost of coverage by taking a few precautions or completing additional training.

For example, young drivers with good grades and graduates of driver education classes may qualify for reduced rates. Those with tickets or other traffic violations may qualify for reduced points by participating in special classes.

When in doubt, ask your agent about other incentives or programs in your area.

Some people are good drivers, but still incur higher-than-average premiums due to other risk factors such as credit scores, lapse of coverage and type of car driven. In this situation it is often possible to make a few strategic changes to help reduce auto insurance rates. Common examples include paying down credit card debt, signingup for automatic insurance renewals and carefully selecting your next sports car.

Some drivers are considered so high risk they are repeatedly denied coverage. In such situations, it is still possible to obtain an auto policy via the state “assigned risk” pool. Since this is often the most expensive option, it is a good idea to speak with your agent about other possible alternatives before making a final decision.

Diabetes is a chronic condition that affects more than 20 million Americans. There are different types of diabetes, including type 1, type 2 and gestational.

Type 1 is diagnosed primarily in children and younger adults. Type 2, the more common form of diabetes, can be diagnosed at any age. Gestational diabetes, occurring in pregnant women, is more of a temporary condition and typically goes away once the woman has given birth.

A great many diabetic individuals are uninsured, which severely limits the options they have available for treatment. It also leaves them at risk for additional complications such as heart disease, stroke, kidney failure, blindness and even lower-limb amputation.

It is important for diabetics to obtain health insurance coverage in order to help control both the diabetes itself and the additional issues it can cause. Since this lifelong condition requires ongoing treatment, a good health insurance policy can help pay the high cost of ongoing medications, regular doctor visits and other procedures.

There are several things to look for when shopping for a health insurance policy for someone with diabetes. Make sure the policy will cover treatments for medical conditions that are associated with diabetes. Also be sure to consider coverage that will help pay for pharmaceutical needs such as insulin shots and other medications. And get more than just one policy quote, as even very similar health insurance plans may have vastly different premiums.

Obtaining commercial auto insurance coverage can be confusing.

Following are some ways to take the sting out of shopping for insurance:

1. Take Inventory: Take time to evaluate current coverage options and needs. Make a list of all automobiles and vehicles used in the course of your business, including personal use of company cars and business use of private vehicles. In general, it is better to be safe than sorry when allowing the personal use of a company car or the business use of a private vehicle. When in doubt, buy commercial coverage. Keep track of:

• Make and model of all vehicles and percentage of time used for business purposes.
• Type of business, name of business, industry and clients served.
• Ownership of each vehicle.
• Driver of each vehicle.
• Primary business use of each vehicle and location.

2. Evaluate Options: There are several coverage options available when selecting commercial auto coverage. For example, you need to think about fleet insurance versus individual auto policies. In general, fleet insurance tends to be more cost effective for larger needs, but it often depends on the total number of vehicles, usage patterns and other criteria.

3. Ask About Discounts: Commercial auto coverage can be reduced via careful planning and preparation. Ask your agent about discounts for any of the following which may apply:

• Safe drivers.
• Type of vehicle.
• Higher deductibles.
• Anti-theft and other safety devices.
• Location of business operations, parking and off-site storage.
• Number of prior claims.
• Coverage limits and exclusions.

4. Consider the Name: Deciding how to list the insured driver isn’t quite as simple as it may sound when working with a commercial policy. Depending on the type of business, ownership of the vehicle and even status of the driver, the insured party needs to be specified in the policy. Be sure to speak with your commercial auto insurance agent to assure the name of the insured is properly recorded when purchasing or amending a policy.

5. Liability Limits: Commercial auto coverage typically includes higher liability limits. For example, even $1 million or more might not be sufficient, especially if your business deals with transportation of vulnerable populations, hazardous materials or expensive items. Ask your agent about liability limits and other special considerations.

6. Additional Options: Many small business owners find it helpful to purchase additional layers of protection when buying a commercial auto policy.

7. Equipment and Addendums: Do not make the mistake of assuming that all equipment is included in the standard commercial policy. Specialized vehicles that hold equipment, generators or other attached machinery may require additional coverage addendums.