Business Insurance

Non-Admitted Insurance in Maine

Posted on by Bob O'Brien

“Non-admitted” insurance companies are not approved by the Maine Bureau of Insurance. But they play an important role in Maine’s insurance market. Non-admitted carriers are often called “surplus lines” or “excess lines” insurers. They take higher risks than admitted insurers. That comes at a cost. Here are the pros and cons of the non-admitted insurance market.

non-admitted insurance companies provide a valuable service, with some risk.

The Risk of Non-Admitted Insurance

  • Non-admitted insurance companies’ coverage forms are not approved by Maine regulators. Their customers don’t enjoy many of the Maine Insurance Code’s protections. But they are subject to federal regulation through the Dodd-Frank Act (.pdf, 800+ pages).
  • In case of insurer insolvency, the Maine Guarantee Fund does not apply. Even if a policy is active, claims might not be paid if the company goes bankrupt.
  • The Maine Bureau of Insurance doesn’t review or approve non-admitted insurance rates. They do with admitted insurers. Non-admitted insurers may charge what the market will bear.
  • Many non-admitted insurance policies have a “minimum earned premium” of 25% of the annual premium. Even if you cancel your policy right away, the insurer will keep 3 months’ premium.
  • Non-admitted insurers may add separate policy fees to premium. Those are usually non-refundable. They must add Maine surplus lines tax to the premium, too.

Non-admitted insurance is often more expensive and provides less coverage. That’s why Maine only allows non-admitted carriers to insure risks that admitted carriers refuse.

Non-Admitted Insurance Can be Valuable

Purchasing insurance from a non-admitted carrier isn’t ideal. But it is a valuable service.

  • Some protection is better than none. While non-admitted insurance coverage is restrictive, it can protect customers against catastrophe.
  • Non-admitted coverage can be a temporary solution. It can give you time to make improvements and qualify for insurance from an admitted insurer.
  • Most lenders will accept non-admitted policies as proof of insurance. Lenders require insurance from their borrowers in order to make a loan.

Be a Smart Insurance Consumer

Purchasing insurance from a non-admitted carrier can be risky. Since non-admitted insurers are not covered by the Maine Guaranty Fund, it’s important to research your insurer’s financial strength. But many non-admitted insurers have excellent A.M. Best financial ratings (.pdf). Ask your agent about yours.

Non-admitted insurance proposals list all applicable exclusions, warrantees and coverage forms. You should at least understand them, even if you can’t change them. Your agent should be able to explain them to you. If you’re a client, your Noyes Hall & Allen Insurance agent can answer questions about your insurance. We’re independent and committed to you.

3 Tips for Buying Portland Maine Business Insurance

Posted on by Bob O'Brien
Portland Maine business insurance doesn't have to be complicated

Buying Portland Maine business insurance doesn’t have to be complicated. If you own a business, it’s important to protect your asset with commercial insurance. These policies can protect your building and vehicles against liability, theft, fire and more.

Whether you just started a business or need to upgrade your existing commercial insurance, the team at Noyes Hall & Allen Insurance has put together this short list to help you get started. 

1. Find a Reputable Business Insurance Agent

Working with a friendly and reputable local insurance agent takes the hassle out of buying a new commercial insurance. They will ask you some questions to get a better understanding of what coverage you need.

Many Maine people prefer to do business locally. A good local agent knows the area, and what Maine’s unique hazards and opportunities. They can help you compare quotes, understand your coverage and bundle your policies. Check their online reviews to help you choose. 

2. Compare Several Quotes

It’s smart to compare three or more quotes during the commercial insurance buying process to find the right one. Go over each in detail with your reputable agent, asking questions for clarification as needed. Policies will differ on price and coverage so be sure to understand what you’re getting and for what price.

Fortunately, Noyes Hall & Allen Insurance offers a choice of 10 of Maine’s top business insurance companies. That means we can do the shopping and comparison for you, with one stop. 

3. Bundle Your Business Insurance Policies

If you need more than one type of insurance, consider bundling with one insurance company. For example, insuring your business vehicles and your property with the same company can simplify billing and save on your premiums.  

Own a Portland Maine Area Business?

Have insurance questions? Contact a Noyes Hall & Allen Insurance agent in South Portland at 207-799-5541. We offer a choice of  many insurance companies and have served the local business community for almost 90 years. We’re independent and committed to you. 

My Insurance Payment is Late – and It’s Not My Fault!

Posted on by Bob O'Brien

How to Avoid Mail Delays and Policy Cancellation

“My insurance payment is late, and it’s not my fault!” It’s happening to a lot of people and businesses right now. You don’t get a bill, or it arrives late. You mail the payment to the insurance company, and it isn’t recorded for days. Between COVID era workarounds and USPS issues, insurance billing and payment processing is more unreliable than ever. But it’s still important.

My insurance payment is late! It may not be your fault, but it's still a problem.

On Time Insurance Payment is Critical

If you pay a credit card bill late, you get a late fee. But if your insurance company doesn’t get paid, you might have no insurance. That’s why it’s critical to make your insurance payments on time.

What if the delay is not your fault? You didn’t get a bill. Or you mailed the payment days ago, but the insurance company hasn’t recorded it. It may not matter. Your insurance can still be canceled if your payment is late, no matter the reason.

If your policy cancels, two bad things happen. First, you have no insurance. Second, you’ll pay more for insurance when you need to re-start coverage. So it’s very important to make sure your policy stays active.

Ways to Make Sure Your Insurance Payment is on Time

Businesses and people are finding ways to make sure their insurance payments are on time. Maybe one of these options will work for you:

  • Electronic billing – Sign up to have your bills emailed. That avoids delays in getting insurance bills.
  • Insurance company accounts – Register for an account with your insurance company. Connect via mobile app or computer. These give you access to proof of insurance, and payment and billing info. You can even file and track a claim online through your account.
  • Pay online – Most insurance companies have a way to pay your bill instantly online. You can pay by credit card, debit card or automatic bank account withdrawal. Noyes Hall & Allen clients can find their insurance company here to pay an insurance bill online.
  • Automatic Payments (EFT) – Allow the insurance company to withdraw payments directly from your bank account. This ensures that your policy payments are always up to date.
  • AVOID Bill Pay Services – Many banks offer online bill payment services. These don’t work well with insurance bills. They don’t include your payment slip, and must be manually processed. Also, you may have more than one policy. Without the ticket, the insurance company doesn’t know which one you’re paying.
  • Double check the insurance company’s address – Many insurance companies use payment processing services. These can be thousands of miles from the insurance company office. If you mail your payment to the insurance company, they will forward it to the payment service. This causes delays in recording payments.

Answers to Maine Insurance Billing Questions

If you have an app and an online account with your insurance company, you can answer simple billing questions yourself. But sometimes it’s hard to understand what you owe or why. That’s when an agent can help. They can explain and clarify your insurance billing. Many can even take a payment over the phone if you’re ready to pay.

Southern Maine families and businesses have trusted Noyes Hall & Allen Insurance agents for more than 80 years. We can help you set up a company account or payment schedule. We can explain your bill, or even take your payment if you’re in a rush. We offer a choice of many insurance companies and billing plans. We’re independent and committed to you.

Contractors Insurance Audits in Maine – Best Practices Help Avoid Surprises

Posted on by Bob O'Brien

Contractors insurance audits are important. They help keep insurance costs predictable for all contractors. They also create important information for insurance rate setters. Accurate payroll and sales figures help them know how much premium they must charge to cover losses.

If your audit results in extra premium, it will be due within 30 days. You want to avoid that if possible. Tell your agent if your payroll, sales or subcontractor costs are much higher than the estimate on your policy.

Contractors insurance audits don't have to be painful

Why Am I Getting an Insurance Audit?

Many contractors insurance policies in Maine are auditable. Contractors’ jobs, payroll and subcontractor costs vary each year. In slow work years, claims tend to be lower. In boom years, there are more claims. Insurance companies audit to “true up” premiums with the expected claims.

Types of Contractors Insurance Audits

Your insurance company might audit your results in several ways. The method can change year-to-year. It may depend on the size of your business and current conditions.

  • Online or Mailed Audit – You fill out your own audit on a form and send with quarterly 941 reports.
  • Phone Audit – An auditor will set an appointment to complete the audit by phone. They’ll tell you the information you’ll need. Commonly, quarterly 941 reports, payroll reports, and a list of officers and owners of your business.
  • Physical Audit – An auditor comes to your workplace by appointment. They examine your records in person. The auditor also checks that employees are properly classified based on the work they perform.

What Happens if I Don’t Complete My Contractors Insurance Audit?

Workers compensation insurers must report premiums and losses to NCCI. NCCI uses that information to set rates and experience mods. Insurers can incur penalties for slow or inadequate reporting. General liability insurance uses payroll info too. Your audit information is an important factor in insurance company rate-setting.

Insurers are not going to “go away” if you ignore the audit request. Your audit information is time sensitive, and collecting it is someone’s job.

If you fail to respond to audit requests, the insurance company will bill you for an estimated audit. You do not want an estimated audit. It increases your premium by 25% or more. And you’re contractually obligated to pay it.

Bite the bullet. Complete your audit. It’s not going to go away.

How Do I Prepare For an Insurance Audit?

  • Be ready. Your audit happens at the same time every year.
  • Keep good records throughout the year.
  • Get certificates of insurance for your subcontractors: general liability and workers compensation.
  • Tell your agent during the year about large payroll, sales or subcontractor cost changes, up or down.
  • Keep track of time and payroll for different kinds of work. This can lower your workers comp costs while still protecting you and your workers. Include overtime.
  • Remember that some owners or officers might have waived workers comp coverage.
  • If you have a physical audit, plan to be present and available. The auditor wants to finish their work quickly and thoroughly. The faster they have what they need, the sooner you can get back to work.

Completing Contractors Insurance Audits: Who Can Help?

Completing an online or mailed audit? The insurance company should send detailed instructions. If you’re stuck, you can call the insurance company’s audit department or your agent. Sometimes, your payroll company can assist, too.

What if I Disagree With the Audit Results?

You can dispute an audit if the payroll or classifications are wrong. You can’t dispute just because the premium is higher. Your agent may be able to help, but they don’t have the information unless you authorize the insurance company to share it with them.

Maine Contractors Insurance Answers

Are you a contractor in Southern Maine? Do you have questions about Maine business insurance? Contact a Noyes Hall & Allen Insurance agent in South Portland at 207-799-5541. We have decades of experience and offer a choice of Maine’s top contractors’ insurance companies. We’re independent and committed to you.

Continuing to Serve You – Remotely

Posted on by Bob O'Brien

We are available to serve you by:

At its core, insurance is about
SPREADING RISK and
HELPING OUR COMMUNITY.
Noyes Hall & Allen believes in these causes.

SPREADING RISK

Insurance customers pay a small amount of money to help those who suffer a catastrophe avoid financial disaster.

While researchers feverishly work to develop a vaccine, health professionals recommend limiting human contact. The goal is to save capacity in the health care system for our most sick and vulnerable neighbors. We care about our clients, our co-workers and our community.

HELPING OUR COMMUNITY

Insurance contributes to the community in many ways. It pays for losses of course. It also enables people to buy vehicles and homes; to start businesses and hire people. Insurance promotes safety and risk education. It provides good jobs for thousands of families. It supports local economies and non-profits.

By serving you remotely, we hope to reduce the community spread of a very serious virus. We want to practice public health safety and risk management. We live and work here, too. Working remotely also allows our team to be with their families. To provide care and comfort during a stressful time.

INDEPENDENT AND COMMITTED TO YOU

Noyes Hall & Allen has been locally owned since 1933. We’re independent – not beholden to any insurance company. That allows us to be committed to YOU, our clients.

We know that you need us. We’ve prepared for an interruption like this. You can still accomplish any insurance transaction thing that you normally do. 

We hope that you and your loved ones remain safe and well. We remain independent and committed to you. We’re always happy to answer any questions about your insurance. Together, we will get through this tough time.

What are the benefits of having commercial insurance in Maine?

Posted on by admin

Those that are in the Portland, ME area will find that there are plenty of local amenities and a strong local economy. Due to this, Portland can also be a good place to start a small business. If you are going to start a company here, you should get a quality commercial insurance policy. There are several benefits that come when you get this type of insurance coverage here. 

Coverage Gives Important Protection

A key advantage of having commercial insurance in this area is that it will give you very important coverages. With a commercial insurance policy, you can receive property coverage, liability protection, and other forms of protection that are curtailed to your business needs. In a situation where you experience a loss, the commercial insurance policy will prove to be very valuable and could keep your business solvent.

Coverage is Required by Many Stakeholders

Another reason that you may want to get a commercial insurance policy is that it is often required by many different stakeholders. If you would like to lease a commercial space, purchase a building with a mortgage, take out a business loan, or even raise capital, any stakeholder is going to want you to have commercial insurance. This is almost always a requirement under our legal documents as it can help to protect your organization and protects another party’s investment.

As you are shopping for commercial insurance in the Portland, ME area, it is important that you speak with someone that you can trust and help guide your decision. Noyes Hall & Allen Insurance is a great company to contact when you are looking for a new policy. Noyes Hall & Allen Insurance will be able to help you personalize a policy to ensure you are properly protected. 

Adding Outside Dining to Your Portland Maine Restaurant

Posted on by Bob O'Brien

Portland and South Portland Maine recently passed ordinances expanding outdoor seating options for local restaurants. These respond to indications that coronavirus is less likely to spread outdoors. Soon, some local restaurants will be able to serve patrons :

  • on sidewalks
  • in parking lots or closed streets
  • in on-street parklets.

Transitioning a Restaurant to Outdoor Dining

Outdoor dining isn’t for every restaurant. Depending on your cuisine, location, formality and clientele, you may choose not to serve al fresco. If you do, here are some things to consider.

  1. Check city rules and resources. Portland and South Portland city web sites have the ordinances and applications for permits and street closures.
  2. Up your cleaning game. During the COVID threat, you’re already doing extra cleaning and disinfecting. Outside adds new cleaning challenges: pollen, dust, litter and even insects.
  3. Keep it light – and smooth. Make sure there’s enough light for employees and customers to see well. Paint or tape the edge of irregular surface levels. Avoid loose cords and other trip hazards.
  4. Watch the skies. That includes the sun. Plan your seating to avoid excessive sun exposure during meal service, if possible. Summer thunderstorms can develop fast. Have a plan to quickly evacuate your dining area and secure umbrellas and other furniture. That will help avoid injury and damage.
  5. Beware of vehicles. Create barriers between diners and vehicles – including bikes and scooters that might be on sidewalks.
  6. Watch outdoor flames. Keep propane heaters, cooking equipment and other heat sources away from flammables like fabrics and awnings.
  7. Check your insurance. Many liquor liability policies only cover you “on premises.” Does that extend to a parking lot or street? The same with property insurance for your outdoor seating and fixtures. Ask your agent about your insurance coverage.

Do you own a Portland Maine area restaurant, cafe, food truck, brewery or other food service business? Contact a Noyes Hall & Allen Insurance agent in South Portland at 207-799-5541. We’re local business owners, just like you. We offer a choice of Maine’s top business insurance companies. We’re independent and committed to you.

Doing Insurance Business Safely and Remotely

Posted on by Bob O'Brien

Sometimes, staying apart means staying safe. That includes when you buy insurance, file a claim, and repair vehicles or property.

People value stability in uncertain times. Insurance delivers. You can do your insurance business in a low-contact, safe manner. You don’t have to sacrifice personal advice and service. Here’s how.

GET NO-TOUCH INSURANCE QUOTES

  • Get insurance quotes online. Most insurance agencies and companies offer online auto and home insurance quotes. Enter information about your vehicles and property and get quotes back. A good independent insurance agency can deliver several quotes at once. That helps you compare.
  • Get advice, not just quotes. It’s hard to know if you’re asking for the proper coverage online, or to compare the quotes you receive. That’s why most people prefer to consult an agent before they actually buy a policy. A tech-savvy insurance agent should be available by text, video or real-time chat as well as phone and email.

BUY INSURANCE REMOTELY

  • Read and sign documents electronically with e-mail, text and e-signature. These tools allow you to read and sign applications from anywhere. All you need is a computer or mobile device.
  • Use contactless payment. Most insurers accept credit cards or electronic checks using your bank account info. No need to leave home and go to the insurance office.

AVOID INSURANCE PEOPLE COMING TO YOUR HOME

Many insurers allow customers to complete a self-inspection. That usually involves answering questions about your home’s systems and emailing pictures.

In case of a claim, avoid an insurance company appraiser’s visit. Email or upload photos of your damage to the insurance adjuster.

CONTACT-FREE INSURANCE SERVICE and PAYMENTS

  • Use mobile apps. Most insurers have them. Download and use them to request changes, check on billing, make payments and file claims.
  • Don’t want to use an app? You can do many of the same things over the phone, email, video or text chat with your agent.

GET VIRTUAL INSURANCE COVERAGE REVIEWS

Modern tools allow you to meet virtually with your Insurance agent. They can even share documents with you by video. You can get personal service and answers to your questions quickly and safely, without leaving home.

DOWNLOAD INSURANCE DOCUMENTS

You don’t have to go into the insurance office to get policy documents. Here are some other ways:

  • Your insurance company’s app. Get documents on your mobile device.
  • Register for an insurance company account. Set one up and download the documents to your computer.
  • Use your agency account. Tech-forward insurance agencies offer online access. These allow you to view your policy information and download insurance documents.
  • Ask your agent to email or text your document to you.

FILE CLAIMS FROM THE SCENE

  1. Report online. Use your insurer’s mobile app to start a claim. Or register for a free account with your insurance company, and file online.
  2. Call the insurance company directly to report your claim.
  3. Call your agent who can explain your coverage, answer questions and help you file a claim.

DON’T SACRIFICE PERSONAL SERVICE

One advantage of having a local agent is that we know you and live where you do. That’s more important than ever in this era of physical separation.

Noyes Hall & Allen Insurance is a forward-thinking agency. We’ve invested in tools and ideas to provide personal advice to you easily and safely. Do you prefer text, video, phone, or a combination of all? Any way, you can get a local agent’s trusted insurance advice without venturing to our office.

Are you looking for a Maine insurance agent who can serve you safely in uncertain times? Call a Noyes Hall & Allen Insurance agent in South Portland at 207-799-5541. Or visit noyeshallallen.com.

Stay safe!

Should You Cancel Workers Comp Insurance When You Lay Off Employees?

Posted on by Bob O'Brien

If a business downturn causes you to lay off employees, you might want to cancel your workers’ compensation insurance. Workers’ comp coverage is required when you hire someone. Without employees, it’s overhead you would like to cut.

But canceling your insurance isn’t always the best move. Here’s why.

Three Reasons Not to Cancel Workers’ Comp Too Quickly

  1. It’s hard to scale up again. Do you expect the downturn to be temporary? You will need to re-apply for workers’ comp when you hire employees again. This costs time, effort and money.
  2. You may lose valuable dividends. MEMIC, Maine’s largest workers’ comp insurer, has paid dividends several years in a row. If you cancel, your business has to wait 3 years to start earning dividends again.
  3. You may lose loss-free discounts. By canceling your policy, you lose the benefit of any loss-free discounts you’ve earned. When you re-start your policy, it takes time to accumulate those discounts again.

Cost-Cutting Alternatives to Canceling Your Workers’ Compensation Policy

  1. Reduce estimated payroll. Workers’ comp premiums are based upon payroll amounts. Layoffs mean lower payrolls, so it’s fine to reduce estimates. This may create a refund without actually canceling your policy.
  2. Change payment plans. Most workers’ comp insurers offer installment plans. Spreading payments may allow you to better match cash flow without losing benefits.

Updating your Maine workers’ comp policy may be smarter than canceling it altogether. Closing your business, or have no plans to hire for more than a year? Then it’s proper to cancel your workers’ comp insurance.

Maine Workers’ Compensation Insurance Questions?

For answers to your Maine workers’ compensation questions, contact a Noyes Hall & Allen Insurance agent in South Portland at 207-799-5541. We’re independent and committed to you.

Does Insurance Cover Loss of Business from Coronavirus?

Posted on by Bob O'Brien

UPDATED 4/2/2020

COVID-19 (Coronavirus Disease), has everyone’s attention. It’s changed behavior around the world, and now it’s here. Business owners feel it. Emergency declarations have forced many to close for the duration.

For those businesses remaining open, routines and procedures are completely disrupted. No more non-essential shopping, eating at restaurants or going to shows. No going out for drinks or coffee. Instead, people are stockpiling supplies, staying home, washing, disinfecting and keeping their distance.

COVID-19 is causing turmoil for businesses large and small. Inventory control and staffing are all messed up. Marketing and sales are on hold as clients and prospects are otherwise occupied.

What if Your Business Suffers due to Coronavirus?

Many businesses feel threatened.

  • What if fear causes my customers to stay home?
  • What if I can’t get inventory or supplies?
  • How can I keep my employees safe?
  • What if my employees get sick and can’t work?
  • What if I have to disinfect or close my workplace?
  • The government has restricted movement in my area.
  • What if economic fear or market changes cause me to lose sales?

Do My Policies Cover Business Interruption?

Unfortunately, business insurance is very unlikely to cover you against lost business due to Coronavirus. Even policies that provide “”business interruption” coverage exclude damage caused by communicable diseases. They also require physical damage to your premises by a covered peril, like fire or water.

If Not, Why Not?

You probably don’t care about the reason behind the exclusion, but there is one. Put simply, diseases are too uncertain for insurers to accurately price insurance to cover them.

Insurance companies have a lot of experience with fires, hurricanes, and other disasters. They know how to price insurance for that, and they know that these perils are local or regional in scope. They can collect enough premium from everyone to pay for the few who suffer a loss.

Viruses are extremely rare – or even unknown – until they’re widespread. And it’s hard to quantify a resulting drop in business. Profits and sales are subject to changing factors: weather, competition, consumer preferences. It’s very hard to put a dollar value on lost sales directly caused by a public health threat.

Should I File a Business Interruption Claim Anyway?

Although the chances of coverage are very small, each business situation is unique . Coronavirus is new for everyone. Insurers are trying to deal with it just like everyone else. Coverage interpretations and response may evolve.

No one wants to file a claim, only to have it denied. But, you may choose to anyway. Here are two reasons why it might be a good idea to file a claim with your insurer.

  1. By contract, insurance companies must investigate each claim to determine if coverage applies. If they find that coverage does not apply, they must show the wording in your insurance policy that precludes it.
  2. The government could create a relief program in the future that might apply to your loss of income. Government could also force insurers to create coverage, in spite of policy wording. Such government actions would probably require you to prove your loss. You might also have to show that your insurance policy provided no coverage for the incident.

Resources for Small Businesses Affected by COVID-19

Congress passed the CARES Act in March, 2020 to help people and businesses weather the economic effect of Coronavirus. This Small Business Owners Guide to the CARES Act provides a good recap of the bill. It tells you how to apply for benefits, which are widespread. We encourage our affected clients to apply early if they’re affected.

The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million. The goal is to help small businesses overcome a temporary loss of revenue.  These are loans, not grants. They must be repaid.

The Maine CDC Coronavirus information page is a good resource for Maine businesses and citizens. It contains factual and timely information about the disease and its effect on our state.

We’re Here to Help our Neighbors

We are a local business. We live and work in Greater Portland. While insurance may not be able to help our clients directly, we still want to be accessible. We want to help where and how we can.

While our office is closed to the public, we’re available by phone, email or our website. Our insurance company partners also continue serving customers while keeping their employees safe.

Stay Safe

Public health scares and economic uncertainty create anxiety. Most business owners feel responsible for the safety of their employees and customers, as well as their loved ones.

We hope that all or our clients, friends and business partners remain safe and calm during these trying times. We’re here to answer your insurance questions.

In this anxious season, check on family and friends. Be kind to each other. Together, we can make it through.