FAQs

An Independent agency, like Shafer Insurance Agency, has the ability to work with many different insurance carriers, which provides much greater flexibility in coverage and pricing options. No two businesses are exactly alike, so you need to be able to design your insurance plan accordingly.  The other type of agency is a Captive Agency, which can only sell policies from one company.  You see a lot of these companies advertise on TV.  As an Independent Agency, Shafer is able to pick and choose the carriers that do the best job for our customers and not be locked in to only one choice.  After all, you don’t just have one type of shoe, do you?  You have different pairs for your different needs.

Commonly referred to as GL, this coverage provides you and your company protection in case a third party alleges that your company caused them bodily injury or property damage due to your negligence.

In the State of TN you are required to carry Workers Compensation if you have 5 or more employees. However, if you are engaged in the construction industry, you must carry WC for even one employee.

This coverage is incredibly important to any company’s risk management plan, as it protects businesses from internet-based risks such as social engineering fraud, ransomware, extortion, systems failure, and network security. Don’t leave your company exposed; let us help you make sure you’re properly covered.

You most likely do not have flood coverage since the majority of policies specifically exclude this coverage. Sometimes it can be purchased back by an endorsement, so you’ll need to check with your carrier or agent.  If the property is in a high risk flood zone, you’ll need to purchase a separate policy backed by FEMA and written through the National Flood Insurance Plan.

Yes. If there are any structures owned or maintained by the HOA, they need to at least have General Liability insurance and property coverage. If your HOA has a Board of Directors, they should also carry Directors and Officers coverage for allegations of mismanagement.

Notify your insurance carrier or agent about the claim immediately. Depending on which insurance carrier you have, some prefer you report directly to them and some ask you to report through your agent. For future conversations, be sure to write down the name of the person you spoke with and your claim number. Also, providing the requested information to the adjusters as soon as possible will speed your claim along.

In most cases, a simple document between you and your company requiring that your company provide the coverage will work; we recommend checking with your attorney. You will need to request that the business policy add your name as additional insured on the auto and equipment policy.

The standard insurance industry opinion is if, in a three-year period, a driver has

• 3 moving violations or
• 3 At Fault Accidents or
•  a combination of 3 of these

  the driver will be looked at closely, and could be denied coverage. Any single Serious or Major Violation such as a DUI, Driving with a revoked license, leaving the scene of an accident, or Reckless Driving could result in denial of coverage also.

Many times contracts require a “waiver of subrogation,” meaning, if a claim occurs, the two parties involved (such as a landlord and tenant) have already agreed not to sue each other to recuperate damages. This is a mutual waiver of subrogation. Sometimes it is only one sided. The IRMI definition is, “Waiver of subrogation is a waiver in an insurance contract that limits the insurer’s right to sue a third party in the event of a claim.” Because these contracts often prevent the insurance companies from recouping funds from the third party, they typically charge higher in premiums for policies with these waivers.

An “additional insured” is a person or organization that enjoys the benefits of being insured under someone else’s insurance policy.  For an example, General Contractors require they be listed as additional insured under the subcontractors policy. This means if the subcontractors work causes damage, their insurance policy provides a defense to the subcontractor and the General Contractor.

Most people do not review their policies every year and evaluate how much insurance they have on their property; therefore, Insurance companies might automatically increase the amount of coverage on the real property by around 4% every year. This is called an inflation guard.

In the State of TN, insurance follows the vehicle, meaning your employee’s personal auto coverage would be primary. If your policy includes hired and non-owned auto liability, it will provide coverage to your business in excess of your employee’s coverage.

There are several ways you can save money on your personal insurance, including:

• Increasing Deductibles
• Bundling Home/Auto/Umbrella
• Protective Devices (Water shut off, burglar alarm, fire alarms, etc.)
• Clean Claim history (not turning in small claims)

When calculating how much life insurance you need, you should consider your debt and the resources needed to maintain the lifestyle you have today.  If you are curious what your amount should be, take a look at our life insurance calculator.

Most likely. Only if the other party has insurance and you simply have damage to your vehicle, would you want to attempt to work out the details with the at fault party’s insurance adjuster. However, if there is a disagreement on the amount of damage or payment, you might want to engage your carrier and let them fight it out. If you suffer bodily injury and you might need to file an uninsured motorist claim, then you will definitely need to report the claim.

The short answer is yes, but there are many things to consider. Contact us to discuss.

Yes, if you are renting you will need to insurance to protect yourself and your property. Contact us to discuss.

If you are enrolled in an employer’s group plan, unless you experience a life-changing event, you cannot make changes to your benefits until the next open enrollment period.  During a qualifying life event you may add or term dependents, enroll in the plans yourself, or change from one plan to another, if available.  Changes (with the exception of Medicaid/CHIP) must be made within 30 days of your qualifying event.  You may need to provide proof of the event, such as a marriage license or adoption paperwork.  If you fail to make qualified changes within the 30 days, you will have to wait until the next open enrollment period to make changes to your benefit elections. Qualifying life events include events such as marriage, divorce or legal separation, birth of your child, adoption etc. Contact your administrator for a complete list.

No law directly requires employers to provide health care coverage to their employees. However, the Affordable Care Act imposes penalties on larger employers that fail to provide health insurance.

Under the ACA, employers with 50 or more full-time employees (or the equivalent in part-time employees) must provide health insurance to 95% of their full-time employees or pay a penalty to the IRS. This penalty is quite hefty—$3,860 per employee per year (in 2020). As a result, large employers have a strong incentive to provide health coverage. However, employees have no right to demand health care under the ACA.

To comply with the ACA, the health insurance must meet minimum requirements for coverage and affordability. Coverage must also be extended to the employee’s dependents, which are defined as biological or adopted children under the age of 26. However, spouses are not considered dependents under the ACA, nor are stepchildren or foster children.

To view qualified HSA expenses, please see IRS Publication 502.