Below are answers to many of the questions we hear most often. We hope this information helps you better understand your insurance coverage, but it’s intended as general guidance only. Because insurance companies, policies, endorsements, and individual situations vary, some answers may not apply to every policy. If you have a question about your specific coverage, your Account Manager or any member of our team will be happy to help. If you don’t see your question below, we’re always happy to answer your questions. Feel free to contact us so we can answer it for you!
If the at-fault driver doesn’t have enough insurance to cover your injuries, your own Underinsured Motorist Coverage may provide additional protection, depending on your policy and coverage limits. Because many drivers carry only the minimum required insurance, we generally recommend carrying higher underinsured motorist limits whenever possible. It’s one of the most valuable coverages you can purchase.
If you carry Substitute Transportation on your policy and you cannot use your vehicle because of a covered collision or comprehensive loss, the company will pay the limit for up to 30 days.
Whenever you rent a vehicle of the same classification, if you have Collision, Limited Collision, or Comprehensive coverages, your policy would provide protection, less the deductible to pay for repairs or to cover the value of the rental vehicle in the event of a loss.
However the Massachusetts Auto Insurance Policy does not provide coverage for:
a. Replacement Cost of the Vehicle: The MA auto policy will only provide Actual Cash Value, not the cost to replace the vehicle.
b. Loss of Use: If the vehicle is unable to be rented by the rental company, they may charge you the highest rate possible per day for the vehicle PLUS ADMINISTRATIVE FEES while the vehicle is unable to be rented. RENTAL CAR COMPANIES TYPICALLY OFFER UPGRADES FOR PURCHASE THAT MAY COVER THESE THINGS. CHECK WITH THE RENTAL CAR COMPANY FOR DETAILS.
c. Depreciation of Value: After an accident, the value of the vehicle could decrease. There is no coverage for this on the MA auto policy, but the rental company may require you to reimburse them the difference between the value of the vehicle before the accident and the value of the vehicle after the accident. This is sometimes referred to as diminished value.
Many credit card companies provide some or all of the protections above if the vehicle is rented using their credit card. Please check with your credit card company to see if they offer any of these additional coverageís.
Please note that your policy only provides coverage while you are in the US, its territories or Canada.
There are many limits available that we can customize to suit your needs. However, to ensure proper coverage, we recommend the following limits.
Bodily Injury to Others: $250,000 per person/$500,000 per accident
Damage To Someone Else’s Property: $250,000 per accident
Bodily Injury Caused By An Uninsured Auto: $250,000 per person/$500,000 per accident
Bodily Injury Caused By An Underinsured Auto: $250,000 per person/$500,000 per accident
It’s important to note that some leasing companies or lienholders may require certain limits.
You are required to list all household members on your automobile policy, as well as any other licensed individual who regularly operates your vehicle. Each operator must be listed correctly as either the principal or an occasional operator on the vehicle. Be aware that an insurance company can deny your claim if this information is listed incorrectly.
This refers to the injury, sickness, disease, or even death, of any person that occurs during the policy period.
Evidence that an insurance policy has been issued, showing the amount and type of insurance provided. It may be used as evidence of reinsurance between companies, and it is the document containing specific details of property covered by Master or Open Policies. Marine insurance copies marked “original” and “duplicate” are issued as negotiable documents. In other words a printed certificate that states the essential provisions of your coverage, often required by customers who want proof you have insurance.
A contract that says one party can’t be held responsible for the acts of another.
Covers fixed expenses and the loss of profit in the event physical property is damaged by a named peril; requires that the business be shut down in whole or in part as a direct result of the named peril. Polices vary in length of time business needs to be shut down before coverage applies.
Despite its misleading name, inland marine is a broad type of insurance which covers articles that may be transported from place to place as well as via bridges and tunnels. Specifically, this type of insurance protects a wide range of high risk, mobile items, including: specialized contractor’s tools and equipment, electronic data processing systems, from mainframe computers to laptops, fine art objects and jewelry.
Errors & omissions insurance provides coverage for people who give advice, make educated recommendations, design solutions or represent the needs of others. “E&O” is also referred to as professional liability or malpractice insurance. This type of liability insurance would cover you and your employees in the event someone claims you incorrectly performed or failed to perform your professional duties.
In commercial auto policies, refers to a vehicle the insured neither rents, borrows, owns or leases. Generally refers to cars your employees own that are used for company business.
Coverage is for a vehicle whose use has been granted to another individual in return for a specified monetary remuneration.
Most commercial auto insurance policies cover the liability for a business if employees use their own cars for business, provided that the business owner has purchased coverage for non-owned liability. Separate non-owned physical damage coverage is available to cover actual damage to the auto. However, the employees’ personal auto policy would be the primary coverage for damage to their automobiles.
Many personal auto insurance policies exclude coverage if a vehicle is used mainly for business. A commercial auto policy provides coverage for autos owned by a business if these vehicles are in an accident. The insurance pays to repair or replace the vehicle and the vehicle of the third party damaged by the employee. It also pays for the medical expenses of those injured in an accident.
Workers’ compensation pricing is based upon your employee payroll, the number and job classification of the employees, classification of your business and past loss experience. The employer pays for the cost of the workers’ compensation.
In most states, workers’ compensation is required when you have one or more employees. There are a few states that do not require employers to carry workers’ compensation coverage.
Personal and advertising injury means being responsible for libel, slander or any defamatory or disparaging material, or a publication or utterance in violation of an individual’s right of privacy; wrongful entry or eviction, or other invasion of the right of private occupancy; false arrest, wrongful detention, false imprisonment, or malicious prosecution; which occurs during the policy period.
There are many different types of third-party liabilities to be covered for a business. Business liability insurance may protect you from claims arising from someone’s bodily or personal injuries. Other items that could be covered are damage to the property of others, products-completed operations, advertising, premises operations, fire, legal liability and related legal defense costs. For instance, liability insurance will not only pay the cost of covered damages but also the attorney fees and other costs associated with your defense..
Property insurance can be purchased on the basis of the property’s actual value (the replacement cost minus depreciation); its replacement value (the cost of replacing the item without deducting for depreciation); or an agreed-upon amount.
Property insurance protects your buildings and equipment, stock, furniture and fixtures. Some policies include equipment breakdown and business income coverage. Basic property insurance will generally cover your business for losses in the event of a fire or lightning strike and will pay the cost of removing property to protect it from further loss. Additionally, a standard small business insurance policy will usually cover losses from windstorm, hail, explosion, riot and civil commotion and damage caused by aircraft, automobiles or vandalism.
A BOP is a customized policy for small businesses that combines property insurance and liability insurance in one policy, and generally includes additional coverages at little or no additional premium. So it allows you to have broad coverage at affordable premiums. Most insurance carriers have customized BOPs for particular industries and services.
This is liability coverage for the insured’s legal liability in cases where the tenant causes fire damage to the rented property.
No, the substitute transportation coverage on your policy for rental only responds at the time of a collision or comprehensive claim. It cannot be used for getting a rental for vacation or while your car is in for normal routine repairs.
If you believe the settlement offer doesn’t accurately reflect the value of your vehicle, you can discuss it with your adjuster and provide information that supports a higher value, such as recent comparable vehicle sales that are higher than the ones that they have presented in their valuation report, recent maintenance records within the 6 months prior to your accident, or documentation of upgrades. You should review the specs and odometer listed for your claim vehicle on the report for accuracy, as well.
We get this question frequently. The answer is that not all claims increase your premium, however we are unable to foresee if there will be any increases or by how much, if so. Many factors affect your premium, not just claims. When claims are factored into rating, factors including who was at fault, the type of claim, your claims history, and your insurance company’s rating guidelines are all considered.
In Massachusetts, the auto policy follows the vehicle, not the driver. For example, if you are driving a friend’s car and you have an accident, the friend’s auto policy is where the claim will get filed. There can be exceptions to this for things like if your friend does not carry collision but you do on your own auto policy and are the at-fault party, then your policy can potentially cover the damage for your friend’s vehicle. This is what it is important to know when deciding to let anyone drive your vehicle.
Every claim is different. Simple claims may be resolved within a few days (a glass claim or striking a deer while driving for example), while more complex claims involving injuries, significant damage, or parts delays can take several weeks or longer. Your insurance company will keep you informed throughout the process, and our office is always available to help answer questions along the way.
An appraiser evaluates the damage to your vehicle and prepares an estimate for repairs or determines if it’s a total loss.
An adjuster manages your entire claim from inside the insurance company. They review coverage, determineliability, coordinate payments, and help move your claim through the settlement process. For homeowner’s or property claims, there is sometimes a separate field adjuster that handles the work “in the field” and works closely with you, your contractors, and the inside adjuster.
Depending on the insurance company, one person may perform both roles.
This is very common. Once repairs begin, additional hidden damage is sometimes discovered. When this happens, the repair shop will typically submit a supplemental estimate to the insurance company for review. If the additional damage is covered under your policy, the insurance company will usually issue additional payment for the approved repairs.
If the driver cannot be identified, there may not be another insurance company available to reimburse your damages. In that situation, your claim is generally handled under your own policy, which means your deductible may apply. If the responsible driver is later identified and their insurance accepts responsibility, you may be reimbursed for your deductible.
Your safety comes first.
1. Check for injuries and call 911 if anyone needs medical attention and call the police to come to the scene to do a report.
2. Take photos before moving vehicles or before anyone leaves if it’s safe to do so.
3. Exchange information with the other driver, including names, contact information, driver’s license numbers, insurance information, and vehicle details.
4. If there are witnesses, obtain their contact information as well.
5. Finally, report the accident to your insurance company or contact our office. We’ll be happy to help guide you through the claims process.
Your first priority should always be the safety of you and your family. If there’s an emergency, call 911 immediately.
Take reasonable steps to prevent further damage whenever it’s safe to do so, such as shutting off the water after a pipe burst or arranging temporary protection if your roof has been damaged. You can contact 24-hour mitigation companies in the area to assist with this. Keep receipts for any emergency repairs or temporary expenses such as lodging, for example.
If your insurance company offers a 24-hour claims reporting service, report the claim as soon as possible. You can also visit our website’s Client Center for direct carrier claim reporting information. Then, contact our office on the next business day so we can assist you throughout the claims process.
A first-party claim is one you file with your own insurance company. This typically happens when you use your own coverage, such as Collision, Comprehensive, or Medical Payments.
A third-party claim is filed directly with the insurance company of the person who caused the accident. If you’re unsure which option is best, we’re happy to help you understand your choices.
Yes. In Massachusetts, you have the right to choose the repair shop you want to use. Your insurance company may recommend a preferred repair facility, but the final decision is yours. Preferred shops often participate in repair programs with the insurance company and may offer additional conveniences, but you are never required to use one. Using a preferred shop means the insurance company guarantees the work of the shop and that the shop agrees to work at the insurance labor rate avoiding any out-of-pocket labor costs for you.
“Hazard insurance” isn’t a separate type of insurance policy. It’s a term commonly used by mortgage lenders to describe the portion of your homeowners insurance that protects your home’s structure from covered risks such as fire, wind, hail, and certain other types of damage.
If you have a homeowners insurance policy, you most likely have hazard insurance as part of that policy. Your mortgage company may require proof of hazard insurance before closing on your home or throughout the life of your loan.
Certain classes of property are specifically excluded from coverage because of the nature of what they are or because they are generally covered by other types of policies (check your policy for a complete list):
• Animals, birds or fish
• motorized vehicles or aircraft, including equipment and accessories
• radios, CB radios, tape decks, etc., while in or on a motor vehicle
• articles separately described and specifically insured in any other insurance
• property of boarders (renters insurance is available and should be considered by boarders).
• aircraft or aircraft parts
• property in an apartment held for rental by the insured
• property rented to others off the residential premises
Certain classes of property have specialized limits of coverage:
• money or related property, coins and precious metals other than tableware
• securities, manuscripts, and other valuable property
• water craft, including trailers and equipment
• trailers
• grave markers
• loss by theft of jewelry, watches, furs and semi-precious stones
• loss by theft of firearms
• loss by theft of silverware, goldware or pewterware.
With a homeowners policy, a deductible applies to the property portion of the policy. A deductible is the amount you would have to pay out of your own pocket before the insurance coverage kicks in. Typical deductibles are $1000, $2,500, $5,000 and some policies have several deductibles. The higher the deductible you select, the lower your premium payment is.
A homeowners policy does not provide coverage for the following perils (check your policy for specifics):
Some policies also provide coverage for (check your policy for specifics):
Coverage A – Dwelling Coverage
Imagine your house on moving day…empty, waiting to be filled. This is the part referred to as Coverage A: your physical home (rooms, fireplaces, tile floors, carpeting, etc.) and the structures attached to it, such as an attached garage.
Coverage B – Other structures
Not all structures that exist on your property are actually attached to your house. Therefore, Coverage B offers insurance protection for other structures such as a detached garage, gazebo, or storage shed.
Coverage C – Personal property
Your personal possessions such as furniture, clothing and appliances are covered. Certain types of possessions are excluded or have limited coverage. Please see personal property exclusions and limits of coverage for more specific information.
Coverage D – Loss of use
The coverage is also called Additional Living Expense. Essentially, this pays for your housing and other living expenses (like meals and laundry) if a major loss makes your house uninhabitable and you have to move out temporarily while it’s being repaired.
Coverage E – Personal liability
Provides coverage for bodily injury or property damage for which you are legally responsible. For example, let’s say your dog bites someone, a guest falls down your front stairs, or your son throws a ball through your neighbor’s window. You are legally responsible for these actions. Personal Liability helps to cover the associated costs of these related damages.
Coverage F – Medical payments
Pays all reasonable and necessary medical expenses for a period of three years from the date of an accident to a person or persons injured while on your property. This coverage does not apply to the insured or regular residents of the insured’s household.
Our office can help you to complete a current cost estimator to establish the estimated cost to rebuild your home at current building costs. This is the amount of insurance you should carry on your home to assure you could rebuild in the event of a total loss. Insurable value should never be based on tax valuations as those take into consideration current market values rather than building costs.
Your policy provides specific dollar amount limitations for many classes of personal property. In addition, coverage is limited to named perils that do not include losing or misplacing an item or accidental damage. Optional scheduled coverage to include such claims is available.
Your policy excludes liability coverage for any type of business conducted from your home. Optional coverage is available.
Your policy limits coverage for business property at your residence to $2,500. Optional increased coverage is available.
If you make any type of improvements to your home, contact our office to discuss whether or not you need to increase your coverage.
Your policy excludes coverage if another structure is rented to others or used in any manner for business. Optional coverage is available upon request.
No coverage is included but optional coverage is available. Contact your Account Manager in the office for more information.
It is excluded under the homeowner policy but optional coverage is available.
The homeowner policy pays covered losses to personal property on an actual cash value basis. In other words, settlement is based on the cost to repair or replace less depreciation due to age. This option eliminates depreciation and assures you will collect in full to replace an item, without deduction for depreciation. *Not all items are eligible for this option; refer to policy for list of exclusions.
Depending on the age of the dwelling, different options are available. If you insure your home for 100% of the replacement value, agree to inflationary increases and report all additions and alterations, you may be eligible for one of the following:
A. Repair or Replacement Cost Protection – provides coverage for the full cost of the repair or replacement of the dwelling
B. Extended Dwelling Replacement Coverage – provides an additional amount of insurance (25% or 50%) when loss to dwelling insured exceeds the dwelling limit of liability!
Your policy provides limited coverage for loss caused by enforcement of a state or town ordinance regulating the construction, repair or demolition of a building. Some homes do not meet modern building codes and in some localities, the law may require a badly damaged building to be demolished and rebuilt rather than repaired.
Optional additional coverage is also available.
Insurance that extends your coverage beyond the limits of your basic home and auto insurance policy. Umbrella insurance can potentially kicks in once you’ve reached the limit of your basic policies. For example, if you suffered a $1 million dollar loss, and your property insurance covers $500,000, an umbrella policy could potentially cover the remaining $500,000. Find more info here
