When do I need workers comp for my employees in Arizona?

Owning a business in Arizona may require workers compensation insurance, but that does not mean you must purchase the coverage as soon as you get the company started. Depending on the company and your goals, the appropriate timing to purchase the policy may vary.

Before Hiring Employees

If you are planning to hire an employee, then you may need to start considering coverage and comparing your options. Even though it is not required to purchase workers compensation in Arizona until after you have hired an employee, having the coverage and getting ready to hire employees can help prevent any complications when it comes to coverage and getting started.

As a general rule, you will need the insurance as soon as you hire a single employee within the state.

After Hiring Workers

There are times when you may not be sure if you need to hire a worker. As a result, you may not feel comfortable buying coverage that you have not determined is necessary for your business.

In this situation, you will want to obtain coverage as soon as you hire a single employee. The state laws require that you maintain coverage as long as you have one employee. There are a few exceptions, such as working partners or domestic servants, but you should expect to purchase the policy if you have hired any employees. Even one worker requires some coverage that is appropriate based on the risks associated with your business.

It is important to protect your employees, even if you have only hired a single individual. The appropriate coverage and the timing can depend on the situation, but you will usually need the coverage before your new employee starts working. Contact us to speak to an agent to learn more.

Is my employer sponsored life insurance plan enough?

As a general rule, most people don’t like to think about life insurance. That means that when an employer steps up and offers to provide life insurance, most people think "Okay, problem solved." As with many things in life, it is not really that simple. In most cases, employer sponsored life insurance is not enough.

The biggest inherent flaw with the idea of getting life insurance from your employer is that you probably won’t be with your employer for the rest of your life. In most cases, when your employment ends, your employer sponsored life insurance ends, too. This is especially problematic since life insurance tends to get more expensive as you get older, so the later in life you lose your job,the more expensive it will be to replace the insurance. If you lose your job too late in life, health issues may make you uninsurable to some agents, leaving you to search all over Green Valley, AZ and beyond for coverage.

Employers also often tend to give relatively minimal life insurance, rarely enough to cover your real needs. When you consider that your family is essentially needing to replace your income for many years, the popular employer’s life insurance standard of one year’s salary is not going to be enough to last your loved ones for very long, and certainly will not provide them much peace of mind about their future.

Life insurance is a personal thing, so it’s important to evaluate your own personal situation to determine how much you need. Odds are, you will need more insurance than you employer provides and you will need more dependable long-term coverage. To help evaluate your situation, you should call us today. As an independent agent based in Green Valley, we can answer your insurance questions and help you to make sure that you have the right coverage for you, whether you live in Sahuarita, Tucson or elsewhere in Arizona..

Is the dwelling extension amount the same as the land on my homeowner insurance premium renewal?

Renewing your homeowners insurance policy can result in the discovery of unknown terminology and details that you may have missed when you first obtained the policy. Among the terms that you may notice is the dwelling extension coverage. While it may seem that the term relates to the land, it extends beyond that limited definition.

What is Dwelling Extension?

The term dwelling extension is a simple way to refer to all of the items that are located on your land, not just the land itself. It may include a detached garage, a shed or other structures that are on your yard, but are not necessarily part of your house.

Depending on the policy, it may refer to several different items or it may simply relate to one building that is part of your property.

The Coverage

Generally, coverage for any items that are not attached to your house will only be a portion of the total amount that you have obtained on your policy. Since the details of your plan may vary, the exact amount and percentage that is identified may differ. For example, it may be five or ten percent of the total coverage or it may be a set dollar amount that is listed in the policy.

You can apply the coverage to the front or backyard, a detached garage, a shed or any other structure that is part of your property.

Homeowners insurance can seem complicated, but once you understand the terminology, it is easier to understand your policy. The dwelling extension only refers to structures and property that is detached from the house. Contact us to speak to an agent to learn more about protecting your property and understanding your policy.

I’ve had a minor accident and I don’t plan to submit a claim. Must I still notify my Insurance Company?

People often assume that if they are not submitting a claim to their insurance company, they do not have to notify them about a minor accident. Unfortunately, that is not what should be done. Insurance companies should be notified regardless of whether a claim is going to be filed or not.

There are a number of reasons that an insurance company should be notified when a minor accident occurs, regardless of whether a claim is going to be filed. The main reason is because of the other party involved with the accident.

Just because you are not filing a claim with your insurance company, does not mean the other party involved with the accident will not try to recover damages from your insurance provider. Notifying them of a minor accident allows your insurance company to prepare in the event the other party should contact them.

Another reason to notify the insurance company after a minor accident is because it could be grounds for a non-renewal. If a minor fender bender or accident occurred, you did not report to the insurance company and they find out later, they can use that to not renew a current insurance policy.

Many people do not wish to notify their insurance company of a minor accident because they are afraid of a potential increase in premiums. It should be noted that not all premiums will be raised as a result of an accident or even if a claim is filed. There are a number of factors that play into premium increases, including previous driving record, number of claims submitted, and who is at fault for the accident.

Worried about potential rate increases on minor accident insurance policies? Contact one of our independent insurance agents that operate out of Sahuarita and Tucson, AZ to explore various auto insurance policies from different companies to determine which offer you the best rates and coverage for your current driving needs.