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Mack, Mack and Waltz Insurance Group's Frequently Asked Questions 1. Why do I have to purchase a separate insurance policy for flood insurance?2. Why have insurance premiums been decreasing so much, especially property insurance? 3. Why is it so difficult to get Workers Compensation insurance in Florida? 4. When is it necessary for a business to purchase Workers Compensation insurance? 5. What is a Buy / Sell Agreement and why is it important to a business? 6. Do you know who the fastest growing insurance agency is in South Florida? (Hint-they are also the best) Back to Topics Why do I have to purchase a separate insurance policy for flood insurance? A loss resulting directly from the peril of a flood, which is defined as water rising from the ground, is an exclusion under your Homeowners policy and other Property Insurance policies. Back to Topics Why have insurance premiums been decreasing so much, especially property insurance? After Hurricanes Francis, Jeanne and Wilma, insurance rates went sky high as insurance companies began to recoup their paid claims. However, our politicians stepped in and demanded that companies lower rates and give credits for superior construction. While this was good for the consumer, it put the state in a precarious financial postition should a hurricane hit our state. Starting in January 2010 steps are being taken to reduce the state`s financial exposure to a costly hurricane. You will also see rates begin to climb for property insurance at a rate of 10% a year. Back to Topics Why is it so difficult to get Workers Compensation insurance in Florida? Florida is one of the most litigious states in the USA. Stay home from work some weekday and notice all the personal injury and workers compensation attorney advertisements on the television. They promise they can get you more money if you were injured on the job. Sometimes the award may be increased, but after attorney fees did the injured person get more money? In addition, there is a lot of workers comp fraud happening. The rates were just lowered on April 1, 2009 because of new legislation, and the companies are now waiting to see how the reversal of allowing higher attorney fees impact their profitability. This could lead to even more rate increases unless the legislators cap the attorney fees once more. Back to Topics When is it necessary for a business to purchase Workers Compensation insurance? In our opinion it is necessary as soon as a business hires an employee. Workers Comp protects a business when an employee is injured on the job, and pays for the employee’s injuries and rehab. However, legally speaking, Workers Comp is required for non-construction businesses that have 4 or more employees, and for construction businesses that employ more than one person. Back to Topics What is a Buy / Sell Agreement and why is it important to a business? Many businesses either fail or are forced to sell when one of the owners unexpectedly dies or becomes unable to work. A Buy / Sell Agreement is a legal document that spells out what happens in the event of the death or disability of a partner or owner. When the unexpected event occurs, the family comes forward and wants their fair share of the business. The Agreement will spell out how to valuate the stock. The agreement is often funded with a life insurance policy and when a stockholder passes away, the process becomes seamless and the remaining partners and owners can continue on. However, many businesses overlook the need to also fund the agreement with disability insurance as well. Statistics show that someone is 66% more likely to become disabled, as opposed to dying, before the age of 65. Back to Topics Do you know who the fastest growing insurance agency is in South Florida? (Hint-they are also the best) That`s right! The Mack Group Inc. is, according to The South Florida Business Journal. Back to Topics |