How Long Do I Have to Purchase Car Insurance After Buying a Car?
Car insurance can be complicated if a person does not have a good agent to help them through the process. How much do you need? When do you need to buy it? Can it be added to an existing policy? This article won’t answer all your questions. It will, however, help answer the question of how soon you need to buy insurance after you purchase a car. The answer can depend on where you purchase your car, your state laws and the existence of any other car insurance policies you may have.
Many car lots will not even allow you to drive off the lot with a car until you have insurance. This is more to protect them than protect you. They want to make sure the car is covered until it is paid in full. There is also likely to be a requirement as to how much insurance you need.
A private owner will most likely not care whether you have insurance or not since you will be taking title of the car right away. In this case, you may have two weeks or so, depending on when the temporary tags expire. It is then likely that you will be required to show proof of insurance before you will be issued permanent tags. This is definitely the case in states that require all drivers be covered under some kind of car insurance.
Car owners who have existing insurance policies will need to talk to their insurance agent. Some policies have a grace period during which the new car is covered under the existing policy. These grace periods vary in terms of their duration, so it is important to carefully review your policy. Other policies do not allow this at all. Your insurance agent can help you determine whether you are covered or not and how long you have before you need to get the additional car covered.
Most states have some type of car insurance regulations in place and they may differ from the requirements of the dealer where you purchase your car. In all cases, it is better to check in advance with your state Department of Motor Vehicles to find out their requirements. Once you know the State’s requirements, you will be in a better position to comply with them. Unless the dealer requires insurance before allowing you to take possession, state law is the standard, and that will likely mean you need to secure car insurance before you can be issued permanent tags for your car.
A Business Owner’s Policy (also known as a BOP policy) is a package policy, providing both property and liability coverage geared toward small to mid-size businesses. They are worthwhile because, unlike separate property and liability policies, they are bundled to contain extra coverage at a low price. Many companies now offer specialized BOP policies for home based businesses or specific classes of business, like retail stores and small restaurants. These policies offer more comprehensive coverage to business owners who may not be able to afford purchasing coverage a la carte.
The property section of a typical BOP policy will include but is not limited to office equipment, furniture, leased or rented equipment, and property belonging to someone else damaged while in your care. This also includes additions to your building and premises that you rent. When deciding on your limit of property insurance, don’t forget to include the cost of your build-out and improvements, equipment used to maintain the building, and permanently attached fixtures. Always consult your lease agreement, if applicable, so you can include any items you are responsible for and confirm that these items are covered.
Liability coverage under the BOP policy covers Bodily Injury and Property Damage claims that you are liable for. A claim can be filed against you for medical bills and expenses resulting from injury, sickness or death caused when you act negligently. If not covered correctly, these situations can drain your financial resources and can result in thousands of dollars out of your pocket.
The most common example is a slip-and-fall accident. These can result from something as simple as spilled liquids, uneven flooring, or narrow stairs. These accidents account for around 17,000 deaths in the United States each year. They are among the most frequently filed claims against small businesses, making it important to carry liability coverage in the event of such unfortunate accidents.
Several key coverages are not included in the basic policy but may be added to the policy by endorsement. A few of these coverages are Automobile, Disability, Health, Worker’s Compensation and Professional Liability. Each business has different needs, meaning not all of these coverages may apply to you. When buying a BOP policy, carefully review what coverages are included and what are not.
Worker’s Compensation is required by most states for businesses with more than one employee and you may need to purchase a separate policy for this coverage. Talk to your insurance representative about the Worker’s Compensation laws in your state.
Buying the right Business Owner’s Policy is a first step in protecting you from the risks inherent to running a business. Carrying this policy may also be a requirement of your rental agreement or leased equipment agreements. By not carrying the right BOP policy, you may be vulnerable to lawsuits or uncovered damages. It is a low cost alternative to out-of-pocket expenses and is packed with coverages which may otherwise be costly.
Ryan Niles is an insurance advisor for NewFirst Insurors, specializing in the development and implementation of risk management strategies for small- to mid-sized businesses in the Texas Coastal region.
Risk events can come in many different shapes and sizes, but regardless of your profession, risk management is something that can give you the edge over potentially damaging risks. For Small Businesses, there are several reasons why Enterprise Risk Management should be implemented. These reasons range from legal obligations to budgetary requirements and below, we highlight four of the foremost reasons for introducing Enterprise Risk Management to your Business.
In large companies, market risk covers the risk that the value of the company’s assets will decrease due to a change in the value of external factors. Changes in interest rates, foreign exchange rates and commodity prices can all negatively impact on a company’s assets. Similarly, changing economic and environmental factors can negatively impact on the productivity of small businesses.
By monitoring market influences and assessing other external influences that could impinge on the company’s market presence, you can protect against market risks and ensure the productivity of the business. For small businesses, accounting for market risks can help ensure projected growth patterns and prosperity. By formulating an enterprise risk management plan, employers can effectively address and mitigate unfavourable market forces.
Operational risk represents the risk of loss from failed internal processes. These risks can arise out of everything from poor or inadequate employee practices to hardware malfunction. While operational risk is relevant to all categories of profession, many small businesses often overlook or underestimate the possibility of operational risk-related events damaging their business. Operational risks such as internal and external fraud, employment practices, business continuity processes can all negatively affect the overall business process of a small enterprise.
Through in-depth analysis, the identification, measurement, monitoring and managing of operational risk, small businesses can ensure the security and efficiency of the operating process. This involves having well-defined and organized roles, segregating duties and responsibilities, and implementing management review mechanisms that will allow employers to account for operational risks and ensure they don’t threaten the business.
Reputation is one of a business’ most important assets, particularly if they operate globally. That said, reputation is everything for small enterprises and start-ups as it represents the extent to which the company is meeting the expectations of its stakeholders, and this can often prove a determining factor in whether or not a small business can take off. While reputation is one of the most important assets of the business, reputational risks are indelibly difficult to protect against. Factors such as negative publicity, whether accurate or not, can compromise the business’ reputation capital while marketing channels such as social media can carry a lot of risk potential.
By defining how you want your business to be perceived, you can begin to clearly identify what risks could negatively impact on the company’s public image. Outlining an enterprise risk management strategy can greatly help a small business to actively monitor the effects of operational incidents on reputation capital and the public perception of the business. This involves an assessment of relationships with consumers, partners and the media as well as assessing the functionality of the business in terms of commitment and quality processes.
Emerging risk accounts for any new risk that is in the process of being quantified and understood. Emerging risks have the potential to substantially impact on a business or insurance policy and significantly damage the company’s reputation, reach and overall process. Emerging risks can infiltrate any part of your business or personal life and have a huge impact, and unfortunately, as there tends not to be any resolute method of predicting and protecting against emerging risks, they are considered some of the most potentially damaging risks that businesses face.
Typical emerging risks include Cyber Risks and Social Media Risks, both of which can be reduced greatly through a comprehensive risk management plan, but other emerging risks such as changing economic factors and wholly unpredictable risks like natural disasters can have devastating consequences for unprepared businesses.
Enterprise Risk Management is all about predicting, preparing for and protecting against the occurrence of a risk event. Each of the risks discussed in this post carry the potential to inflict serious damage on a company’s reputation and overall business process. However, if a small business incorporates each of the aforementioned risks into their overall Enterprise Risk Management plan, they can significantly protect themselves against the possibility of a risk event occurring and devastating the business.
Ensure your Risk Management Strategy is up to scratch with a free risk assessment.
Lonnie Meadows is a risk advisor for NewFirst Insurors. Lonnie specializes in developing commercial risk management plans for small to mid-sized businesses and focuses on leadership and management relationships to improve his clients’ overall operations.
As the U.S. home market slowly recovers, builders are seeing a boost in construction contracts. New commercial buildings are being built at a rapid pace. With these surges in construction, specialized policies like Builder’s Risk provide important protection against exposures that are unique to the building trade.
The Builder’s Risk policy provides protection for homes or commercial buildings under construction, while being remodeled, or undergoing renovation. The policy covers materials like concrete, lumber, and fixtures as well as machinery and equipment used to maintain the building. The policy also covers the cost to remove debris caused by a covered accident, like a fire or lightning strike.
In most cases, a Builder’s Risk policy is required for buildings under construction and purchased when the home or building is at least 30% complete. The limit of insurance is based on the estimated value of the project once its complete. Because the value will increase as glass, framing, and other materials are added, the limit should also be increased. Once the project is done, coverage will end when the building has been taken over by the owner, the work has been complete for 90 days, or the builder has abandoned the project.
Accidents happen and by their nature, they’re never anticipated. An accident can stall or completely stop a building project. To avoid the pitfalls of damage, there are three types of perils coverage to choose from: Limited Perils, Specified Perils, or Special Perils.
Each has their own unique advantages but the most inclusive is Special Peril, which covers accidental losses that are not specifically excluded. While this type of coverage is the most attractive, it is also the most expensive. Though the cost may be more than its counterparts, the broad coverage pays for itself in the event of a large loss that might otherwise have been excluded.
It’s a common misconception that all property policies replace damaged items based on their original replacement value. While many companies sell enhanced policies with special endorsements, like Replacement Cost, a great majority of policies come with Actual Cash Value.
In the event of covered damage to your property, claims are paid on an Actual Cash Value basis by default. This means only the depreciated cost to repair or replace will be paid. This can leave the project with a shortfall in funds and possibly halt further construction. To avoid this common mistake, check the policy and endorsements to ensure that Replacement Cost coverage is included.
While the coverage provided is vital to most building projects, limitations apply. Builder’s Risk does not cover Earthquake, Flood, Steam Boiler, or intentional acts of damage. Because policies vary by company, coverage for materials in transit, equipment such as scaffolding and trailers, or theft of materials may be limited or excluded. For an additional premium, separate policies or endorsements can be added to ensure coverage is in place where it is needed.