Our Business is Expanding!

• Have you considered the negative impact of taxes and inflation on your
  retirement savings?
  
• Would your business function profitably and productively if a key person
  were to die or become disabled?
  
• How much life insurance do you have . . . how much do you need?
  
• If one of your business partners were to die, would you want to be in business
  with their spouse?
  
• Do you have the proper retirement plan in place for yourself and/or your
  employees?

Call us today to get the answers to these and other common concerns.

Many of our customers have expressed the need to have a trusted advisor create a one-stop-shop for their insurance and financial services needs. We are pleased to announce that we have partnered with P&C LifePlans, Inc. to bring you additional services. With the partnership of P&C Life-Plans, Inc. we will be able to provide a host of specialists to support you. We are proud to provide you with a sampling of some of our additional products and services:

• Employee Benefits
• Business Planning
• Retirement Planning
• Life Insurance
• Long-Term Care Insurance
• Annuities
• Disability Insurance
• Education Planning
• Investment Services
• And More . . .

We appreciate your continued trust in providing quality service with integrity and commitment. Thank you for your confidence and consideration.

Please contact our office to let us know how we can assist you.

Visit us online @ www.williampalumbo.com

Medfield Corporate Office 4 West Mill St. PO BOX 250 Medfield, MA 02052 (508) 359-4151

Attleboro Office (508) 222-3240

Franklin Office (508) 520-1755

Sandwich Office (508) 888-2244

Why You Need an Umbrella Policy?

Do you have enough liability insurance? If there were a vehicle accident for which you were at fault, and a child were permanently disabled, would your auto liability policy have enough coverage to pay for the skilled care the child would need for years to come? If a young parent were killed in a freak fall on your property, would your insurance cover the support he would have provided his children as they grow up? We’d all like to believe that such catastrophic losses would happen only to other people. But there is nothing we can do to totally eliminate the risk of this type of event in our own lives.

Consider what would happen if there were a settlement (or judgment, if it goes to court) of $800,000 as a result of an auto accident for which you were liable. Let’s say you have insurance with a limit of $300,000 per accident. What would happen? The auto insurer would pay its $300,000. Then virtually everything you own would be fair game for seizure to pay off the additional $500,000, except for assets that may be protected in some states, such as your home. Furthermore, your earnings could be garnished for years to come. With stakes this high, and considering the relatively modest cost of additional liability coverage, it just makes sense for many people to purchase the added protection of an umbrella policy.

An umbrella policy is insurance that provides additional coverage once the liability limits on your homeowners or auto insurance policy are exhausted. Umbrella policies are typically sold with limits of $1 million to $10 million. In the example above, if you had a $1 million umbrella policy, once you satisfied the deductible, the auto insurer would pay the auto policy limit of $300,000, and your umbrella insurance would pay the other $500,000 of the $800,000 settlement or verdict. Your assets would not be at risk.

One myth about an umbrella policy is that it’s only needed by the wealthy. These days the cumulative value of homes, vacation homes, rental property, cars, boats, savings, investments, and so on, owned by many people, who don’t consider themselves wealthy, make them vulnerable to liability beyond their auto or homeowners insurance limits. A good question to ask yourself is whether you have assets that you don’t want to put at risk in the event of a catastrophic liability.

Lifestyle also plays a role in determining liability risk. Do you have a swimming pool, trampoline, swing set, or other recreational equipment that can lead to accidents? Are there frequent guests on your property? Do you engage in sports that could injure others? Do you live in a wealthy town where you might be more of a target for a liability lawsuit?


How Much Do You Need?

People often reason that the amount of umbrella coverage they need should be the value of their assets, but this might not be adequate. If, for example, you have assets of $1 million and buy $1 million of coverage, what happens if you’re found liable for a $2 million judgment? Insurance would pay the first $1 million, plus the limit of the underlying homeowners or auto policy, but you could lose a significant amount of your assets for the second million. If you were found liable for $3 million, you could lose not only a significant portion of your assets; you’d still owe $1 million. Both your future income and any inheritance you might receive would be jeopardized. Just how much coverage you need depends on all your risk factors, your own financial planning, and your tolerance for risk.

There is usually a substantial premium discount if you buy your auto, homeowners, and umbrella policy all from the same company. Additionally, if you have a claim, you eliminate the potential problems of dealing with different insurance companies where each might be trying to shift payment responsibility to the other, leaving you caught in the middle.

The cost of an umbrella policy depends on such criteria as the amount of coverage, the insurance company issuing the policy, and your own “personal risk factors” (such as the number of traffic tickets you’ve gotten in the past few years, and possibly your credit report). A million dollar policy often costs less than a dollar a day. For some people another attractive feature of an umbrella policy is that it provides coverages not found in their homeowners or auto policies. You are covered if you cause bodily injury, property damage, or personal injury. Generally, the types of personal injury covered include false arrest, false imprisonment, malicious prosecution, defamation, invasion of privacy, wrongful entry, or eviction. Some umbrella policies also provide coverage if you face liability arising from your service on the board of a civic, charitable, or religious organization. Your insurance agent can help you decide whether an umbrella policy makes sense for your life style and financial needs.



Small Business Can Have Huge Liabilities - Insure Yours

So, you’ve decided to launch your own business. Good! This can be an exciting time for you and your family, but don’t forget about the risks. Protecting yourself from financial disaster is a must and will preserve your long hours of hard work and determination, not to mention your future. There are three types of small business insurance you need, including one that is mandatory. Although most employers must provide workers compensation insurance for injuries and illnesses that are job-related, other coverage for business property and liability, though not required by law, is strongly recommended. This optional coverage protects your business’ property, equipment, and inventory as well as providing protection against potential liabilities.


Property Insurance

Property insurance can be purchased on the basis of the property’s actual value (replacement cost minus depreciation), its replacement value (cost of replacing an item without deducting for depreciation), or an agreed-upon amount (commonly used for art objects and other unique items). Basic property insurance will generally cover losses in the event of fire or lightning strike and will pay the cost of removing property to protect it from further loss. Also, a standard small business policy will usually cover further losses from windstorm, hail, explosion, riot and civil commotion, and damage caused by aircraft, automobiles, or vandalism. Optional coverage can insure against earthquakes, floods, building collapse, and glass breakage. You can even insure your property by categories or by events such as fire, theft, or vandalism. You should take a complete inventory of all your business property, determine its value, and decide what is worth insuring. Make sure the items you want to cover are provided for in the basic policy; if not, buy more coverage. For example, you’ll want to make sure your building is covered and your inventory, furniture, equipment, and supplies.


Liability Insurance

Liability insurance will protect your business assets in the event you are sued. These days, with lawsuits at an all-time high, you will want to maintain a proper amount of liability insurance to protect yourself and the business you have worked hard to build. Liability insurance will not only pay the cost of the damages but will also pay the legal fees and other costs associated with your defense in a lawsuit. The expenses of defending yourself against such claims in court can be enormous, regardless of whether the lawsuit has merit. Liability insurance will not protect you against claims arising from nonperformance of work, sexual harassment, wrongful termination of employees, or gender and race lawsuits. Therefore, it may be in your best interest to take out a surety bond as performance insurance. Employment practices liability insurance (EPLI) protects your business against employment-related claims such as sexual harassment and is a good idea to have.


Business Owners Policies

Many insurance companies have bundled property and liability coverage into a business owner policy, or BOP. This policy provides broad coverage with affordable premiums. Even if you have a BOP, it is advisable to consider adding coverage that might otherwise not be included. Since no two businesses are alike, property insurance can be tailored to fit your individual needs. Because businesses face different amounts of liability (accounting offices vs. contractors), it is advisable to obtain liability insurance above and beyond a BOP when needed. We can help direct you according to your business’ specifics.