Is Commercial Insurance Mandatory?

Commercial insurance protects your California business from any financial loss that may result from claims of damage or injury caused to others by you or your workers. It’s important to note that this policy is not mandatory for the businesses that operate in California. However, the state doesn’t put a cap on liability law rewards. Moreover, the state courts tend to award large liability judgments. This means that entrepreneurs who own property as well other valuable assets should be wise enough to invest in commercial liability coverage plans to minimize exposure to risks. Companies in Pismo Beach, CA like Neff & Associates Insurance Services Inc. can help you get the required plan.

Is there a set limit for the commercial liability insurance a business should carry?

Each situation is usually unique, but there is a general insurance guideline. The kind of business you run or the products you manufacture can determine how much coverage you require. Your insurance company should help you assess your risks and recommend the minimum coverage for your company. If you know you operate a high-risk business, consider increasing the coverage limits. Remember that if your business is operated from home, the renter’s or homeowner’s insurance will provide a limited coverage on business losses and liability.

Several factors are considered when setting the California commercial insurance premiums. Some include the type of product or service you sell, the number of years you’ve been in business, the total number of employees you have, and your claims history.

Mandatory insurance to consider

California requires every business to carry a worker’s compensation plan as long as there are employees. Business owners are required to offer disability insurance for covering casual wage for an eligible employee in case of a non-work related injury or sickness.

California also requires all company drivers to carry minimum car insurance. In case your truck or car is used for business, it’s recommended that you buy a commercial vehicle policy.

Feel free to contact Neff & Associates Insurance Services Inc in Pismo Beach, CA for more information about commercial insurance or for a quote.


Unpreparedness before Tragedy—When Floods Strike

Flood unpreparedness can leave homeowners and businesses in deep water when they do not have a strategic plan.

Businesses, self-proprietors, renters and first-time homeowners can use their diligence to find helpful insurance. Before low-pressure systems and seasonal storms can turn regions from congenial to inhabitable when floods strike.

Why would you need flood insurance?

The immediate answer is before a flood happens.

20 percent of flood claims arise from damage that happens to homes existing outside of high-risk flood zones. A mere one inch of water inside a building from flooding can run a cost in the tens of thousands.

While renters’ and homeowners’ policies do not often offer standard flood coverage.

At Neff & Associates Insurance Services Inc, we recommend all proprietors and dwelling owners should have flood insurance as a part of their overall preparedness plans.

You or your community may be required to have flood insurance.

Your federally insured or regulated lender must require insurance against floods:

  • on properties that are mortgaged, and

  • that exist in locales at a high-risk of flooding.

However, even when a property is not located in a flooding area of high-risk, you may be asked to carry flood insurance by your mortgage lender.

Are there any special kinds of flood insurance?

Properties existing within areas designated as hazardous from floods may require flood insurance to qualify for federal disaster assistance.

The majority of disaster assistance of the federal level sources as low-interest loans by the Small Business Association (SBA) and must be repaid.

The Federal Emergency Management Agency (FEMA) has the authority to enforce obtaining flood insurance. Or where it is available according to the National Flood Insurance Act.

However, grants that are provided by FEMA do not require any repayment for those who are eligible.

Residential policyholders (homeowners and renters) and non-residential policyholders (business owners) in the Pismo Beach CA area should find an insurance representative nearest to them.

Be certain you will be able to ask the insurance agent any flood policy requirements such as:

  • what contents inside of a building are covered,

  • any contents that are not covered by the policy,

  • if there is a deductible,

  • is a 30-day waiting period actuated while the policy takes effect, and

  • whether there is a national surcharge if the insurance is a National Flood Insurance Program (NFIP) purchase.

An insurance agent versed in renters or homeowners insurance serving Pismo Beach, CA may also be able to assist you with getting flooding insurance.

Neff & Associates Insurance Services Inc can help you sort and choose the flood insurance that is right for you: contact us to speak with one of our friendly and knowledgeable associates today.

Typical Uses For Umbrella Insurance

At Neff & Associates Insurance Services Inc, we have helped many Pismo Beach Can residents get great umbrella insurance policies. If you have heard about this coverage but haven’t tried it out for yourself, it is worth knowing how it could benefit you. There are a variety of possibilities available for people who purchase this type of insurance.

Property Damage

Umbrella insurance will cover excessive property damage when it occurs to your home. They are also a great policy if you somehow cause property damage to another person’s items and need to pay for the repair or replacement of these items.

Personal Liability Situations

Generally, umbrella insurance is used to cover serious personal liability issues. For example, it can cover bodily injury liability if you somehow hurt somebody in an accident. This coverage will pay for their medical treatment and recurring issues with their health.

However, it can also cover you in lawsuits that occur due to injuries on your property. For example, if a friend falls through your deck and injures themselves, umbrella policies can cover any financial losses you suffer in a lawsuit.

Problems With Your Dog

If you own a dog who ends up attacking a friend or family member, umbrella insurance can help you with this issue. It will cover financial losses that occur due to a dog bite personal injury lawsuit. They will also cover medical expenses for people injured by a dog. This coverage makes umbrella insurance policies a wise decision for somebody who owns one or more large pet dogs.

Getting The Best Coverage

So if you think that umbrella insurance is right for your needs, please contact us at Neff & Associates Insurance Services Inc today. We can help you and other Pismo Beach, CA residents get the high-quality umbrella insurance that you deserve.

Safety Tips for New Motorcycle Riders

Motorcycle riders enjoy a level of freedom that few get to experience. For new riders, however, the joy can be dulled by fear caused by lack of skill. The experts at Neff & Associates Insurance Services Inc want you to get the most out of your motorcycle rides. These tips for new drivers will keep everyone safe during motorcycle rides in the Pismo Beach, CA area.

  • Keep your machine in top-notch condition with regular maintenance. Check the tires, mirrors, and brakes before every ride. For tires, ensure the proper inflation and pressure before setting out on the road. If you aren’t sure what the right pressure is for your machine, check your owner’s manual. Look closely at the treads for signs of uneven wear, holes, or objects lodged between the treads. Take your bike to a mechanic at least once a year for a thorough check-up.
  • Always wear your helmet. California law requires it. Opt for long sleeves and pants as well. These will protect your skin in case of a slide-out. The leather is a strong protective fabric. Many manufacturers create pieces that are lightweight while still providing the necessary coverage. Gloves and sunglasses are also recommended to reduce the risk of injury.
  • Take a training class. In addition to general safety, a training class gives you a chance to practice while being coached by a seasoned rider. The tips and pointers they are able to provide are invaluable and can reduce your risk of accident on-the-road. Check with your local DMV for information on classes in your area.
  • Don’t be afraid to look around. New drivers often focus too much on their own actions. Take the time to visually sweep your surroundings for potential problems. Constant vigilance gives you time to react.

Neff & Associates Insurance Services Inc insures motorcycle enthusiasts in the Pismo Beach, CA area. Contact our agents to learn more.

When Is Flood Insurance Worth the Investment?

Did you know that living by the ocean has a lot of benefits? In fact, numerous studies have been conducted that reveal living by the ocean is actually good for your health. From reducing stress to providing you with great scenery when exercising outside, there is so much to enjoy when you live near the water. For now, though, let’s take a closer look at the benefits of living by the water as well as whether or not you should invest in flood insurance if you live by the ocean.

Benefits of Living By the Beach

Back in the 18th Century, it was not uncommon for doctors to prescribe trips to the ocean to clients who were suffering from certain ailments, including anxiety and depression. Studies have shown that when people are near the water, they are more relaxed. Data collected in England even found that those who live close to the coast are actually in better health than those who don’t. 

What About Vacationing on the Beach?

If you don’t own a home by the ocean, there is no need to fret. A simple vacation to the water is a great way to take advantage of the health benefits that coastal living can provide. Even better is that you can switch up your vacations from one destination to the next, giving you the option to check out several oceans. You can even travel overseas if you prefer. 

What About Flood Insurance?

If you have a home on the ocean, you will definitely want to protect it with flood insurance. Homes by the ocean are commonly affected by harsh weather, including hurricanes and tsunamis. With the right flood insurance, though, you can rest assured that your property will be protected even in the event of damage. 

Call Neff & Associates Insurance Services Inc today serving the Pismo Beach, CA area to learn more about flood insurance. 

Understanding Your HOA: Important Considerations for Condo Owners

Whether you are a new or longtime condominium owner, you should familiarize yourself with the activities and governing documents for your unit’s homeowners association (HOA). California law specifies that HOAs operate according to bylaws that describe the organization’s structure and the way the HOA conducts its business. In addition to these governing bylaws, the association also will also have in place rules, covenants, and other documents that define common elements and outline permitted and prohibited activities.

As part of your regular review of condo insurance, you should keep abreast of any changes in HOA practices and policies that could have an impact on you. For example, if a member of your family or a guest in the condo violates association rules, how will you have liability? If someone claims that one of your visiting grandchildren damaged something near the swimming pool or in another common area, what steps must the HOA take to prove its case and what due process rights do you have as a member of the association?

As you most likely know, the insurance maintained by the HOA does not cover personal possessions within your unit. The HOA’s insurance covers “common elements,” but there may be a question about how the association defines these elements. Before purchasing a condo or renewing your policy, you should take an opportunity to review the HOA’s certificate of insurance to make sure that there are no discrepancies or unexpected surprises not covered in your condo policy.

A quick review of the HOA policy and asking questions about the rights and responsibilities of unit owners today may prevent problems tomorrow.

Serving Pismo Beach, CA, the professionals at Neff & Associates Insurance Services Inc look forward to offering condo coverage that suits your needs. Please contact us today. 

Is Classic Car Insurance All Inclusive?

It is often hard to find a car insurance policy that covers everything that you want it to. Things like damage from storms, damage from accidents and more are all covered, but is this coverage enough for a classic car policy? For those in the Pismo Beach, CA area, the agents with Neff & Associates Insurance Services Inc can help you find the perfect policy that covers all your classic car needs.

As far as classic cars go, most classic car policies are going to cover the price of replacing or repairing the car should it become damaged. It may also include things like liability but in most cases, your liability is going to lie with your normal car insurance policy. The classic car policy is more in place to make sure that you can replace or repair the car should something happen to it.

In the simplest of terms, no, your classic car policy is not going to be all-inclusive and is instead going to cover the cost of your car should you have to replace it. You are not going to be able to claim things like car accidents on your classic policy, you are not going to be able to use it to cover the medical bills of the passenger so the people you are riding with, and so on.

A classic policy is simply in place to protect the value of the car and to help you replace it should it become totaled or experience some major damage. This does not mean this type of policy is useless, just that it is not going to serve the same purpose as a typical car insurance policy and therefore should not be a replacement for your normal insurance.

For those in the Pismo Beach, CA area, the agents with Neff & Associates Insurance Services Inc can help.

Extra Expense Coverage in Commercial Insurance

As you shop around for commercial insurance, one important aspect to consider is whether or not to add extra expense coverage. Extra expense coverage will finance expenses a business might incur in order to either avoid or minimize a business showdown following a physical loss or disaster. While not necessary for all styles of business, it can prove especially valuable for businesses that have any of the following characteristics:

  • Provide ongoing and continuous services that people depend upon every day of the week, such as a data center or airport shuttle service.
  • Provide services that are essential to the community, such as a nursing home, credit union, or medical clinic.
  • Ability to operate from a temporary location to prevent a complete shutdown.

What Extra Expense Insurance Covers and When

There are two ways extra expense coverage might step in:

1. If businesses are able to continue operations following a property loss or damages, then extra expense insurance will cover any relocation expenses necessary to operate at a temporary facility and any costs necessary to equip and operate normal operations at that temporary location or new replacement relocation.

For example, a data company that sustained fire damage is unable to continue work at its normal location but is able to reopen in a building across the street. Extra expense coverage would cover the costs associated with preparing that new commercial space as this will allow the data company to more quickly reopen business and generate income.

2. If operations cannot continue, then extra expense insurance will pay for any extra expenses needed to repair or replace property immediately to minimize the suspension period of that business.

For example, a commercial office building that incurred damage to its HVAC equipment is unable to heat the building during winter and thus cannot be occupied until the issue is resolved, but the part to repair the equipment cannot be ordered and received for eight weeks. Yet during this waiting period, the commercial office building loses out on its rental income. Extra expense coverage would pay for the expedited shipping of the necessary part and immediate repair in order to the avoid suspension of rental income.

For more information about extra expense insurance, contact our team at Neff & Associates Insurance Services Inc. in Pismo Beach, CA today.

Factors to Consider When Buying Renters Insurance

Not every renters insurance policy is the same. As such, you need to consider certain factors to help you find the policy that best suits your needs. Here at Neff & Associates Insurance Services Inc, serving the greater Pismo Beach, CA area, we are committed to helping everyone find the right insurance policy. Here are three of the factors we recommend you consider as you look to buy renters insurance. 

The Events the Policy Covers

One of the first factors to consider when you are looking to buy renters insurance is what events the policy covers. Different policies cover or exclude different events, including theft, fire damage and flood damage. Always make sure you understand what events are covered under your policy and which are excluded from your policy. 

The Fair Market Value of Your Belongings

The next factor you need to consider when buying a renters insurance policy is what the fair market value of your belongings are. Go around your home and make a list of everything you own, including clothing, electronics, dishes and furniture. Then figure out fair market value. Make sure your renters insurance policy covers the minimum value of your belongings. 

The Cost of an Emergency Rental in Your Area

Lastly, take the time to find out how much it would cost you to have to get a rental similar to yours for up to three months. Renters insurance will provide you with temporary rent coverage if you are forced to relocate while repairs are being made or due to unsafe living conditions. Always make sure the value that is offered in temporary rent provides you with enough money to live based on the rental market in your area. 

Finding the right renters insurance policy for you in the Pismo Beach CA area can be overwhelming. At Neff & Associated Insurance Services Inc, we can help make the process easier. Contact us today and let us guide you toward the policy that best meets your needs. 

How Much Motorcycle Insurance Coverage is Enough?

As a motorcycle driver in the state of California, you need to at least meet the minimum requirements as set up by the insurance laws in the state. While these may be enough in coverage for some people, there may be others that consider getting a bit more coverage for their motorcycle and themselves.  Here at Neff & Associates Insurance Services Inc we know that you need to at least have the minimum coverage here in Pismo Beach, CA. 

What is the Minimum Motorcycle Insurance Requirement in CA?

For motorcycle insurance, the law is clear and outlines the specific type of coverage you need as well as how much. You need to have liability coverage on your motorcycle and the minimum coverage depends on the type. You need to have at least $15,000 in coverage for injury or death for one person. You also need to have at least $30,000 for total injury or death if there are multiple people that are hurt in the accident you caused. Lastly, you need to have at least $5,000 in coverage for damage to property. You may decide that you need more but as long as you have the minimum, you are compliant with the state laws.

If you do not have the minimum coverage for your motorcycle or you want to make sure that your policy meets the requirements, be sure to contact us at Neff & Associated Insurance Services Inc today. We are here to help those in the Pismo Beach, CA area ensure they are properly covered and will take a look at your current policy or get you a quote at no cost to you. We will also help you find a policy that fits in your budget so you do not have to sacrifice anything to remain compliant.