Long Insurance Services of Kernersville, NC


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All Posts in Category: Erie Insurance Company

Insurance Audit

Why Is My Business Being Audited?

Erie Insurance’s priority is always to do right by you, our valued Customers. Although an insurance audit may seem like bad news, the truth is that it may not be as troublesome as you may think. In fact, it could be beneficial to your business.

If you have workers’ compensation and/or general liability coverage for your business, it’s likely that your insurer will conduct an audit. This common practice helps ensure that the insurance company doesn’t overcharge or undercharge your business for coverage. In the end, you’ll be reassured that your coverage is up to date and you’re paying the proper amount.

The good that comes from an insurance audit

When you purchase your policy, the initial premium charged for workers’ compensation and general liability coverage is estimated using different rating bases as well as the proper classifications and rates that apply to the business and the work during the policy term. Premiums for workers’ compensation insurance are estimated based on payroll. Premiums for general liability insurance are calculated based on different variables, such as payroll, receipts, sales, units and the like.

Throughout your policy term, your sales, payroll and other variables will fluctuate. The audit takes place at the end of the policy period to collect the updated information and calculate your final premium.

For example, if business is better than you expected and you have hired more employees than you planned, your payroll will be higher and you will potentially have a greater exposure for someone to file a workers’ compensation claim. It’s a smart move to reconcile any differences.

There are three basic types of audits:

  • Questionnaire audit: You will be mailed a letter that provides a website address and a password that allows you to sign on and complete a questionnaire.
  • Telephone audit: An auditor will contact you by phone and interview you to complete the audit. You will initially receive a letter with a date and a two-hour window when the auditor will call you.
  • Physical audit: An auditor will meet with you in person to complete the audit information.

What happens if my estimates are not accurate?

Estimates should be as close as possible to the actual amount of payroll and sales incurred during the policy period. If the estimate is too high, you’ll receive a refund, usually a credit to your current policy. If it is too low, you’ll receive a bill for the additional premium for the audit period and the current year.

(Full Erie Article)

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Hurricane-Insurance

How Named Storms Affect Your Insurance Coverage

Hurricane season is here and it’s been an active one so far. Here are a few things to know about hurricanes, named storms and how any strong storms can affect your insurance coverage.

A storm is called a hurricane when it forms over the Atlantic and the eastern and central Pacific Oceans; a cyclone when it forms over the southern Pacific and Indian Oceans; and a typhoon when it forms over the western Pacific Ocean.

Today, the NWS maintains six lists of names that rotate every six years. The only exceptions are the 77 names of the most damaging hurricanes the World Meteorological Organization retired out of respect to victims and survivors.

A few years ago, The Weather Channel (TWC)—a private cable and satellite television network that’s completely separate from the NWS—announced that it would start naming winter storms. When asked why, they cited many of the same reasons behind naming hurricanes—namely, an easier and more effective way to raise awareness and communicate updates about a storm.

Many named-storm deductible clauses work by requiring a deductible that’s a certain percentage of a home’s value—anywhere from one to 10 percent—instead of a fixed dollar amount. That means instead of paying a $500 or $1,000 deductible, a house that’s insured for the U.S. average of $161,100 would shell out $16,100 if their named-storm deductible was 10 percent.

With ERIE, you don’t have to worry about a named-storm deductible.

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JD Power Insurance Survey

ERIE Ranked Highest in J.D. Power Insurance Study

Thousands of people recently shared their experiences about shopping for auto insurance in a new national study and Erie Insurance was awarded “Highest Satisfaction with the Auto Insurers Shopping Experience.”

The J.D. Power 2017 U.S. Insurance Shopping StudySM, now in its 11th year, provides an in-depth look at the entire auto insurance policy selection process. It explores why customers shop, their attitudes toward and perceptions of auto insurance brands and how they make their final purchase decision. Satisfaction is measured on three factors (in order of importance):

  • Price—How customers rate their new auto insurance provider on the price of the policy given the level of coverage.
  • Distribution channel—How customers rate their experience interacting with their new auto provider’s agent, call center rep and website.
  • Policy offerings—How customers rate the variety of coverage options, the degree to which their needs are met and the ease of obtaining a new policy.

For the fifth consecutive year, Erie Insurance ranked the highest in the study, with a score of 879 out of 1,000.

The study methodology and other findings

The study is based on responses from more than 16,400 shoppers who requested an auto insurance quote from at least one of the top 25 insurers that have the largest market share in the United States. Customers were surveyed from April 2016 to January 2017.

The study also revealed that shoppers are increasingly reliant on agent recommendations when considering and quoting insurers, compared to 2015 (with 9- and 10-percentage point increases, respectively). Another critical driver of satisfaction is communication. Companies like ERIE that ranked the highest in the study help:

  • Ensure the customer completely understands the coverage.
  • Provide guidance and/or tools for selecting the right coverage.
  • Make certain customers understand their premium calculations.

Are you shopping for insurance?

When you’re shopping for insurance, J.D. Power offers the following tips:

  • Look for an agent with a reputation for integrity and trustworthiness, who can give you thorough advice on the pluses and minuses of various insurers and their products.
  • Compare the terms of various policies and assess how those policies might be affected by factors such as current events, driver performance and acquisition of new vehicles.
  • Be sure you’re well covered in areas where you most need coveragesuch as personal liability (when you hurt other people or their property).

Who Is Erie Insurance?

ERIE has been protecting families and businesses for more than 90 years. The company’s employees and agents follow the Golden Rule—treat others as you would want to be treated.

“As you can see from this study, our prices, products and service often outshine the competition,” says Doug Smith, executive vice president, sales and products, at Erie Insurance. “When you work with an experienced ERIE agent from your neighborhood, you’ll get coverage that exactly fits your life and never pay more than you should. When something bad happens, we’ll make sure you’re back on your way, right away. We’ve built our reputation for being Above all in Service®.”

In the past year, ERIE has made improvements to the auto insurance quote tool on its website. Shortly after the J.D. Power survey closed in January, ERIE launched a refreshed website. For more information, get in touch with a local ERIE agent.

 

Erie Insurance received the highest numerical score in the J.D. Power 2013–2017 U.S. Insurance Shopping Studies (tied in 2016). The 2017 study is based on 16,424 total responses evaluating 21 providers and measures the experiences and perceptions of customers surveyed between April 2016 and January 2017. Your experiences may vary. Visit jdpower.com for more information.

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Business Car Insurance

Ask ERIE: How Does Business Auto Coverage Work

With business auto insurance, customers often ask us how coverage works in certain situations. A couple examples would be when employees drive company vehicles for personal reasons or when they drive their personal cars for their job.

With most business auto policies, the coverage follows the vehicle. So if the employee has permission to use the business vehicle for personal reasons, coverage will typically be extended.

Using a personal car for work

If you’re a business owner and your employees use their personal cars for work, coverage is not provided automatically for you through a commercial auto policy. You would need to add hired and non-owned coverage to your policy, which would provide liability coverage if you are sued following an accident. The employee’s car insurance would usually cover the physical damage to the vehicle.

“The commercial auto coverage provides protection for your interests as the business owner, but the employee’s auto coverage may still be required to cover the claim,” says Leo Heintz, vice president and product manager, commercial auto insurance, at Erie Insurance.

Other ways business auto insurance can help protect you

For both owned and leased cars and trucks, business auto insurance offers coverage for:

  • Damages if your car is damaged or destroyed by something other than an accident, such as theft, vandalism or hail when you purchase comprehensive coverage.
  • Uninsured/underinsured motorists if an at-fault driver is unable to pay for damages associated with your injuries.
  • Liability if you’re responsible for harming others or for damaging their vehicles or property.
  • Medical costs for you or your passengers’ injuries as the result of an auto accident.

It can be helpful to work with an insurance professional like an Erie Insurance agent, who can help you select the best coverage for your business and tell you about policies suited to your specific industry.

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JD Powers Erie Insurance

What You Should Know About the Rise of the Side Business

There’s an exciting career revolution taking place – say hello to the “gig economy” (AKA, the side hustle), a booming new job market characterized by workers who call their own shots, set their own schedules and control their own destinies.

According to the Chicago Tribune reports, “There’s no hard data yet on the size of this labor force. Some say it represents less than 10 percent of the domestic workforce but is growing rapidly, while other studies say it makes up nearly 25 percent. The U.S. Department of Labor is conducting a study to determine its size.”

No doubt, it’s a trend that is on the rise. That – of course – got us thinking: What do insurance needs look like in the gig economy?

  • The Gig Gap: For decades, having a job meant being an employee of a company—often for life. Today, it’s a different story. Many people are a part of the “gig” economy. Upsides like freedom and flexibility attract people to this work. Yet there are downsides like hustling to find jobs and managing a fluctuating income. Another lesser known one is not having enough—or even any—business coverage. Fortunately, there are easy ways to fix that.
  • You’re Invited: Remember the “exchange chain letters?” If you sent a single kitchen towel to the first person on a typewritten list and then mailed the letter to six of my friends, you’d receive the bounty of 36 kitchen towels. These days, invitations continue, but the requests aren’t coming through the U.S. Postal System—they’re coming via email, text and, more often than not, social media.
  • How to Cash in on the Gig Economy: Whether you’re a new graduate looking for a job, a retiree looking for some extra cash or a stay-at-home parent hoping to grow your nest egg, there are many advantages to joining the gig economy. Here are a few.
  • [INFOGRAPHIC] Evolution of the Gig Economy: Gig economy. Side Hustle. Welcome to the 21st Century workforce. Check out a few ways some of the most popular side gigs have evolved over time.
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Erie Business Insurance

Business Insurance Quotes

When was the last time you had your insurance quoted? We have multiple lines to find the best rates for your Personal and Commercial needs.  Call us today at 336-992-5664 to see if we can save you some $$$$.

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