Frequently Asked Questions for Batts and Associates Insurance Agency | Huntsville

Personal Lines Insurance

What is Auto Insurance?
There are six types of auto insurance coverage. Depending on the state you live in, some are required and some are optional. The six basic coverages are: Bodily Injury, Medical or Personal Injury Protection, Property Damage, Collision, Comprehensive, and Uninsured Motorist Coverage

What is Assigned Risk Auto?
Assigned risk auto is a state-supervised insurance plan for people who are unable to obtain insurance coverage in the regular market. The cost of this insurance is substantially higher

What Happens if I Choose Not to Purchase Car Insurance and Still Drive My Car?
That depends on the state you live in. Most states have stringent laws about having car
insurance and if you don't choose to follow these laws by not purchasing car insurance, there
can be tough penalties and fines. You can probably for sure count on loosing your drivers
license and getting your car impounded but then you will be charged with breaking the law
and that will be on your police record. Also, if you cause an accident, on top of the above
mentioned things you will still have to pay for the damage to the other vehicle and people who
may have been hurt, which can easily run into thousands of dollars.

What does Bodily Injury Liability cover?
Bodily injury liability is insurance that pays for another person's bodily injury or death in an automobile accident caused by you. It compensates those people for pain, suffering, and other personal hardships, and will also pay for some economic damages (i.e., lost wages).

What is Collision Coverage?
Collision coverage is optional insurance that pays for physical damage caused when your own car hits another car or object, regardless of who is at fault. Collision coverage may carry a deductible -- a stated amount that you must first payout of your own pocket.

What is a Deductible?
A deductible is the amount you must pay from your own pocket for each claim or accident before the company pays on a claim. The bigger the deductible, the cheaper the coverage.

What is GAP coverage?
GAP coverage pays for the gap between the amount due under a lease and the actual cash value of the car at the time of the accident.

What is Underinsured Motorist (UM) coverage?
(UM) provides coverage for bodily injury caused by a driver who is underinsured. It does not cover damage to your car.

Commercial Insurance

How many employees must be employed by an employer before Workers' Compensation becomes compulsory?
Every employer, individual, firm, association, or corporation, regularly employing three or more persons, part-time or full-time, shall provide Workers' Compensation insurance coverage.

When is an insurer required to complete the audit for auditable policies?
All insurers are requested to complete audits and provide the infonnation the insured within 60 days of the expiration or termination date of an auditable policy.

What is Business Interruption (BI) Coverage ?
Business interruption covers a business for loss of income as a result of a covered loss. It is also known as business income, loss of profits, time element, use and occupancy coverage.

What does business interruption insurance coverage cover?
Business interruption (BI) kicks in when your business cannot operate as a result of a covered loss. The property is untenable as a result of the loss and therefore operations must shut down. BI covers the continued business operation expenses, profits/losses that would have been earned had there been no loss. Coverage begins from the time of the loss and continues until the time that the business is back up and running at its pre loss state.

How does a Commercial Umbrella policy work?
An insightful look into how umbrella policies supplement the liability coverage you already have through your General Liability and commercial auto insurance and provide an extra layer of protection.
"For example, if you have a business insurance policy with general liability limits of $1 ,000,000, the umbrella policy will pay claims above $1,000,000, up to the limit you select, such as $3 million. Or if your liability limit on your commercial auto insurance policy is $100,000 of bodily injury protection per person and $300,000 per accident, your umbrella coverage kicks in after you exhaust that coverage."

What does EPLI (Employers Practice Liability) cover?

• Wrongful termination
• Unlawful discrimination by race, gender, or age
• Work-related harassment, including sexual harassment
• Employment-related defamation
• Wrongful demotion
• Negligent evaluation

Life Insurance

Do I need life insurance?
If you can afford it, there are several reasons why you may need life insurance. The most important reason is to have enough money to provide for dependents such as young children, non-working spouses or elderly parents, should you die and be no longer able to provide for them. Also, your survivors may need funds to pay for extra expenses that may arise due to your death, such as funeral expenses, or other expenses to payoff bills and debts. If you have no dependents or have adequate financial resources, you may not have an actual need to purchase life insurance.

Why buy life insurance?
Some reasons to buy life insurance are: 1. Income Replacement 2. Funeral Expenses 3. Pay Off Debts 4. Pay Off Medical Bills 5. Mortgage life insurance

Where do I buy life insurance?
If you know of a trusted insurance representative, you could start by reviewing your life insurance needs and existing coverage with that agent. Otherwise you might want to find an agent or insurance broker to work with you. If you are person who prefers to do your own research, you can find plenty of insurance information and quotes on the Internet, or from direct marketing ads in magazines, newspapers, etc. It is in your own best interests to review and compare various offerings and prices.

How do I find a good life insurance agent?
Ask people you know about any life insurance agent they have dealt with. As with picking contractors for work on your home, or finding a good auto mechanic, doctor or dentist, the recommendation of friends or family members is olten a good way to start. If you are unable to find an agent this way, then you may have to contact the insurance company or an insurance broker for assistance. Once you locate an agent, it is important to find someone who you are comfortable with and who understands your needs.

Is there a certain amount of lile insurance I should purchase?
Although there are "rules of thumb" such as your life insurance should be 10 times or 20 times or some other multiple of your annual income, the best approach is to consider your own personal needs so that your survivors have adequate life insurance proceeds to meet their financial needs in the event of your death. To estimate how much money may be needed, you should make a list and estimate the expenses that need to be covered. This could include the cost of paying funeral expenses and the amounts that your spouse and young children need for mortgage payments, household expenses, education, etc.