Lowering Risk and Commercial Auto Insurance Premiums With Driver Safety Programs

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Rising losses, distracted driving, and more expensive repairs have made fleet risk harder to control. While pricing is driven by the market, your own loss experience still matters. A practical driver safety program can reduce incidents, improve claim outcomes, and support stronger renewals for commercial auto insurance.

Why Driver Safety Programs Influence Premiums

Insurers look at frequency and severity to determine risks. Frequency is how often crashes and losses happen. Severity is how costly they are when they do happen. Safety programs help on both sides by reducing preventable incidents and improving how quickly issues are addressed before they turn into claims.

They also improve consistency. When expectations are documented, trained, and coached, fleets tend to see fewer “outlier” behaviors such as speeding, harsh braking, and inattentive driving. Those behaviors show up in incident reports, telematics, and claim narratives.

What an Effective Program Includes

A solid program is more than a one-time class. It is a set of repeatable habits that leaders enforce and drivers understand.

Core components to build around:

  • Written standards for seat belts, phone use, speed, and following distance

  • Driver qualification and onboarding, including MVR checks and ride-alongs

  • Regular training refreshers tied to real incidents and near-misses

  • A coaching process for high-risk behaviors and repeated violations

  • Post-incident review that focuses on prevention, not blame

If you operate larger vehicles or cross state lines, the FMCSA Safety Planner is a useful reference for policy basics and ongoing compliance practices.

Using Data Without Overcomplicating It

You do not need perfect data to start. Pick a small set of metrics and track them the same way each month. Common starting points are preventable incidents, speeding events, hard braking, and backing collisions. Tie results to coaching, then measure whether the coaching changes outcomes.

If your fleet is small, keep it simple. Use driver check-ins, spot audits, and clear standards on vehicle condition. For larger fleets, telematics can help identify trends, but it works best when drivers understand how data will be used and what “good” looks like.

Claims Handling Practices That Reduce Friction

Safety programs work better when paired with consistent post-incident steps. Drivers should know what to do immediately after an incident, how to document details, and how to escalate injuries or property damage. Fast reporting can reduce disputes and helps your team control repairs, rentals, and downtime.

It also helps to review how certificates, driver lists, and vehicle schedules are managed. Inaccurate schedules can create delays and coverage questions that complicate claims.

Key Takeaways

  • Safety programs reduce preventable incidents and support better renewals.

  • Simple, consistent metrics often beat complex tracking that no one uses.

  • Clear post-incident steps can improve documentation and claim outcomes.

For a structured way to evaluate your coverage and process at renewal, see this guidance on Annual Insurance Policy Reviews. If you want to compare carriers and program structures, Garrett also explains the value of working with an Independent Insurance Agent.

Disclaimer: This content is for informational purposes only and does not constitute professional advice

Commercial Auto Insurance for Rural Routes, Farms, and Ranch Operations

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Rural driving brings different risks than city routes. Longer distances, gravel roads, open range, and limited roadside services can turn a minor incident into a costly disruption. Commercial auto insurance helps protect business-owned trucks, work vans, and drivers when operations depend on reliable transportation. For an overview of coverage options, start with a reputable local agent Garrett Insurance, then design your broader commercial insurance program.

Why Rural Routes Change the Risk Picture

Rural routes often include higher speeds, narrow shoulders, and low-light conditions. Wildlife crossings and farm equipment on the road add collision risk, and response times can be longer when an incident happens miles from town. Vehicles may also be used differently by season, such as hauling feed and fencing supplies in spring and towing equipment during harvest.

Those patterns matter because insurers price and underwrite based on how vehicles are driven, where they operate, and who drives them. When radius, mileage, and use are not accurate, policy assumptions can drift from reality.

Coverages to Confirm for Farms and Ranches

Start with liability limits that match contracts and real exposure, then confirm physical damage coverage reflects replacement costs for trucks and permanently mounted equipment. If employees or family members drive, make sure driver lists and qualifications are current. If you use personal vehicles for business errands, confirm hired and non-owned exposure is addressed.

Trailers are another common issue. Verify which trailers are scheduled, how they are valued, and whether the policy treats certain implements as equipment rather than auto. If your operation includes agriculture-specific property risks beyond vehicles, Farm Insurance can complement auto coverage and reduce gaps that show up during seasonal work.

For regulatory context on commercial vehicles, the Federal Motor Carrier Safety Administration provides guidance on Regulations. For plain-language background on how business vehicles are commonly insured, see the Insurance Information Institute’s overview of Business Vehicle Insurance.

Common Gaps in Rural Commercial Auto Insurance

Many problems come from changes that were never documented. Adding a driver, changing a vehicle’s primary use, towing a newly acquired trailer, or expanding routes can create coverage disputes when a claim happens. Seasonal use is another source of confusion, especially when a vehicle switches between personal and business roles or between farm and non-farm operations.

Another gap is assuming “auto” covers everything related to hauling. Cargo, tools, and equipment can be covered under different policies or endorsements, and sublimits can apply. Clarity on what is covered, where it is covered, and under which policy reduces surprises.

A Practical Review Checklist Before Renewal

A short review keeps commercial auto insurance aligned with real operations:

  • Confirm every vehicle and trailer is listed correctly

  • Recheck driver lists, roles, and licensing status

  • Validate mileage, radius, and seasonal changes in use

  • Update values for trucks, trailers, and attached equipment

  • Align limits with contracts and current replacement costs

For a process-oriented perspective on reviewing coverage, meeting with a local independent insurance agent is often the best course of action. Independent agents can compare rates between multiple carriers, and access insurance coverage that is available from captive agents at single-carrier agencies.

Disclaimer: This content is for informational purposes only and does not constitute professional advice

Business Owners Policy Essentials for Service Businesses

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A business owners policy is a practical starting point for many service-based companies because it bundles common protections under one policy form. The real advantage is clarity: you can see core limits, deductibles, and covered property in one place, then add endorsements only where you need them. This garticle explains what’s typically included, where coverage can fall short, and what to review before renewal.

What a BOP Usually Includes

Most BOP forms combine general liability and commercial property coverage. Liability can help with claims tied to third-party injury or property damage, while property coverage can help repair or replace certain business property after covered events. Many forms also include business income coverage, which can help replace income during a covered interruption.

Coverage details depend on definitions such as “who is an insured,” what locations are scheduled, and whether your work happens mainly on premises or at customer sites. If tools travel with you, confirm how off-premises property is handled and whether there are separate sublimits for theft.

Who It Fits Best

A BOP often fits operations with predictable services and moderate property values, such as professional offices, cleaning services, and many smaller contractors. It can also suit a single primary location with standard exposures and straightforward contracts.

If you handle higher-hazard work, store large amounts of inventory, or rely heavily on subcontractors, you may need additional policies or specialized endorsements. Fit is less about the industry label and more about how your work actually happens day to day.

Gaps and Add-Ons to Consider

Bundled coverage does not automatically address every modern risk. Cyber incidents, employment-related claims, and professional liability often require separate coverage. Equipment limits may be lower than replacement cost, especially when items move between sites.

If you sign contracts that require additional insured status or specific wording, confirm your policy can support those requests. It also helps to understand whether defense costs are paid outside the limit or reduce the limit, since legal expenses can be meaningful even on smaller claims.

Some businesses also need add-ons for hired and non-owned auto exposure, valuable papers, or equipment breakdown. A short exposure review can help you decide which add-ons matter and which ones you can skip.

Choosing Limits and Deductibles

Start with the contracts you sign and the value of what you need to protect. Liability limits should reflect worst-case scenarios, not only the “typical” claim. Property limits should match replacement cost and include tenant improvements you may be responsible for under a lease.

Deductibles should be high enough to manage premium but not so high that a routine loss becomes a cash-flow problem. If you have multiple locations, confirm whether limits and deductibles apply per location or across the entire policy. If contract requirements are higher than your base limits, an umbrella policy may be worth discussing.

A Practical Renewal Checklist

Use this checklist to keep renewals from becoming last-minute surprises:

  • Confirm revenue, payroll, and operations are current

  • Update property values for equipment and tenant improvements

  • Review new contracts, locations, or subcontractor use

  • Check add-ons for cyber, professional, or equipment needs

  • Ask how claims and defense costs affect available limits

Disclaimer: This content is for general informational purposes only and is not a substitute for advice from a licensed insurance professional.

Special Commercial Auto Coverages for Contractor Vehicles

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If you run a contracting business, the trucks and vans you send to job sites may carry people, but they also carry tools, materials, and your reputation. A commercial auto policy is a good start, but may leave gaps around specialized equipment, employee vehicles, and downtime. That’s where special commercial auto coverages for contractor vehicles come in, layered into the broader commercial insurance program you use to protect your business.

Why Contractors Face Unique Vehicle Risks

Contractors push their vehicles harder than most businesses. You’re hauling ladders, tools, and materials; parking on busy streets and crowded job sites; and relying on crews to drive safely in all kinds of conditions. Along the way, you’re dealing with risks like:

  • Damage to permanently attached equipment, such as racks, winches, or lifts.

  • Theft of tools and materials from trucks or vans at job sites or overnight.

  • Employees using their own vehicles to pick up supplies or check on a project.

  • Vehicles that are out of service after an accident are slowing down jobs and revenue.

If your commercial auto policy doesn’t specifically address these exposures, you may be paying out of pocket when something goes wrong.

Coverages Contractors Should Ask About

Coverage for Permanently Installed Equipment

Many contractor vehicles have specialized equipment, either bolted on or built in. Some standard policies treat this equipment differently from the base vehicle. Ask about coverage for permanently installed equipment so that the upgrades you’ve made to your work trucks are protected.

Coverage for Tools and Materials in Transit

Tools and materials often live in your vehicles between the shop and job site. A standard commercial auto policy may not fully cover those items if they’re stolen or damaged. You may need an endorsement for tools and equipment in transit, or a separate inland marine policy, to help protect what you carry every day so a single theft doesn’t derail multiple jobs.

Hired and Non-Owned Auto Coverage for Crews

Even if you own some vehicles, employees might occasionally drive their own cars to pick up supplies or meet a customer. Hired and non-owned auto coverage can help protect your business if an employee causes an accident while using a personal or rented vehicle for work. 

Downtime and Rental Reimbursement

When a key truck is in the shop, it’s more than an inconvenience—it can delay projects and frustrate clients. Rental reimbursement coverage can help pay for a temporary replacement vehicle so crews can get to job sites. Some policies also offer downtime or loss-of-use coverage that can help offset lost income when a vehicle is out of commission.

How to Review Your Contractor Vehicle Coverage

To see whether you need these coverages, start with a simple checkup. This quick inventory gives you a roadmap for questions to ask your insurance advisor:

  • List the vehicles that are titled to the business and those that are personal.

  • Note any permanent equipment or customizations on each vehicle.

  • Estimate the value of tools and materials you typically carry.

  • Identify instances where employees use their own cars or rented trucks.

  • Look at your current policy and see which of these exposures are clearly covered.

Talk With a Local Contractor Insurance Specialist

Contractors benefit from a coordinated approach to protection: commercial autos, general liability, equipment, and even workers’ compensation all interact when there’s an accident. A local insurance specialist can help you understand how your commercial auto coverage fits with the rest of your policies, and whether adding contractor-focused endorsements would close important gaps. It’s often easier to make adjustments before a claim than to discover a missing coverage after the fact.

If you’re not sure whether your current policy reflects how your crews really use their vehicles, it may be time to walk through your day-to-day operations with a commercial auto specialist who works with contractors regularly.

Disclaimer: This content is for general informational purposes only and is not a substitute for advice from a licensed insurance professional.

Add These Riders to Strengthen Commercial Auto Coverage

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If your business owns or uses vehicles, a standard commercial auto policy is only a baseline within your broader commercial insurance program. Real operations create coverage gaps around who’s driving, whose vehicles are used, and what happens when a vehicle is out of service. The right riders (endorsements) help close those gaps so one accident doesn’t turn into a major financial setback.

Why Standard Commercial Auto Policies Aren’t Always Enough

A basic commercial auto policy is designed for vehicles titled to the business and used in predictable ways, but many companies work differently. Any of these situations can create gaps if your policy doesn’t include the right endorsements:

  • Employees sometimes drive their own cars for work errands or deliveries.

  • Owners may use a personal vehicle to visit clients or job sites.

  • Vehicles can sit in the shop for days or weeks after an accident.

  • Tools, materials, or custom equipment live inside or on top of your vehicles.

Key Riders That Can Fill Dangerous Gaps

1. Hired and Non-Owned Auto Coverage

This rider helps when your business relies on vehicles it doesn’t own, such as employee-owned cars or short-term rentals. If an employee causes an accident while driving their own car for a work errand, their personal policy may not fully protect your business.

2. Drive Other Car Coverage for Owners

Many owners title their vehicles personally but still use them for business tasks. Drive Other Car coverage extends certain commercial auto protections to a personally titled vehicle that’s being used for business, which can help if you don’t want a separate commercial policy on that car.

3. Rental Reimbursement and Downtime Protection

Even a minor accident can keep a vehicle off the road while it’s being repaired. Rental reimbursement can help pay for a temporary replacement so you can keep running routes and meeting customers. Some policies also offer downtime or loss-of-use coverage to help offset lost income while a key vehicle is out of service.

4. Custom Equipment and Tools on Your Vehicles

Contractors, service companies, and delivery businesses often upfit their vehicles with ladder racks, toolboxes, lift gates, signage, or refrigeration units, and they may store valuable tools or inventory in the vehicle. A custom equipment or tools endorsement can help cover those add-ons and contents if they’re damaged or stolen.

How to Decide Which Riders You Need

Start by mapping how your vehicles are actually used and comparing that picture to your current policy. Anywhere you see a mismatch, there’s a good chance a rider can help. Try asking:

  • Do employees run errands or make deliveries in their own cars?

  • Do you rent trucks or vans during busy seasons?

  • Are owners driving personal vehicles for business meetings or client visits?

  • How specialized and expensive is the equipment on (or in) your vehicles?

Talk With a Local Commercial Auto Specialist

A local commercial auto insurance specialist can review how your fleet works, explain which riders are available, and help you avoid gaps between your commercial auto policy and the rest of your coverage. Consider how riders might support both your business auto coverage and other parts of your risk management plan.

Commercial auto insurance is a single piece of the puzzle that keeps your business assets protected. If you’re unsure whether your current coverage has gaps, it may be time to talk with a local commercial insurance specialist who understands businesses like yours and the vehicles you rely on every day.

Disclaimer: This content is for general informational purposes only and is not a substitute for advice from a licensed insurance professional.

4 Times Commercial Insurance Can Keep Your Business Running

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For many smaller businesses, insurance is something you only think about when you sign paperwork or pay the bill. But when something unexpected happens, the protection in your commercial policy can be the difference between a temporary setback and closing the doors for good. Working with an independent insurance agency helps owners compare options from multiple carriers instead of relying on a one-size-fits-all policy.

1. A Customer Is Injured on Your Property

Even careful businesses see slips, trips, and other accidents. If a customer is hurt and believes your business is responsible, you could face medical bills, legal costs, and time away from running the company. General liability coverage is designed to respond to these kinds of third-party injuries and property damage claims.

It’s important to understand what’s covered, what your limits are, and how deductibles work before a claim happens. The Insurance Information Institute offers a helpful overview of common small-business insurance coverages and how they fit together, that will provide a more in=depth understanding.

2. A Fire or Storm Shuts Down Operations

Fires, severe storms, and other disasters can damage your building, equipment, or inventory with little warning. Property insurance can help repair or replace what’s damaged, but many owners overlook what happens to income and expenses while the business is closed.

Business interruption coverage is meant to help replace lost income and certain ongoing expenses while you recover. Reviewing this part of your policy with an experienced agent is especially important in areas that see hail, high winds, or other severe weather.

3. Your Business Is Sued Over Its Work

Service businesses, contractors, and professional firms sometimes face claims that their work caused a financial loss. Depending on your trade and the details of the claim, you may need professional liability, errors and omissions, or other specialized coverage. A few useful questions to ask your independent insurance agent include:

  • Does our policy match the specific services we provide?

  • Are subcontractors or temporary workers included?

  • How are defense costs handled under this policy?

4. An Accident Involves a Company Vehicle

If your business owns vehicles, or if employees use their own cars for work, commercial auto coverage is an important part of your insurance plan. Personal auto policies often exclude accidents that happen while using a vehicle for business purposes.

A commercial policy can be structured to cover owned vehicles, hired and non-owned autos, and different drivers who operate them. It’s also a good time to discuss higher liability limits if your business frequently moves people, products, or equipment.

No policy can remove every risk a business faces, but the right commercial insurance can make unexpected events easier to survive. Reviewing your coverage, asking questions, and understanding how the pieces of your policy work together can help you protect the business you’ve worked hard to build.

Disclaimer: This content is for general informational purposes only and is not a substitute for advice from a licensed insurance professional..

Commercial Auto Insurance Requirements Every Business Should Know

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Businesses that rely on vehicles for work must understand commercial auto insurance requirements. From delivery vans in Kerrville to service trucks in Hill City, every business owner needs to know commercial auto protection and compliance requirements.

Know the Legal Minimums

State liability requirements apply to all business-use vehicles. Personal auto policies typically exclude work activities, so relying on them can leave major coverage gaps. For more in-depth information, check out this fact sheet from the Insurance Information Institute.

Understand Core Coverage Types

Commercial auto insurance typically includes liability, collision, comprehensive, and uninsured motorist coverage. Additional options like rental reimbursement or towing may support businesses that travel long distances between rural job sites. 

Common policy elements include:

  • Bodily injury liability

  • Property damage liability

  • Medical payment provisions

  • Physical damage coverage

  • Uninsured and underinsured motorist protection

Consider How Vehicle Use Affects Requirements

Insurers evaluate how your business operates its vehicles. For example, long rural routes between Fredericksburg and Boerne or mixed commercial and agricultural use may raise different coverage needs. Refer to documents from the National Highway Safety and Transportation Administration for information that may affect insurance rates.

Key risk factors include:

Businesses should also understand how operational habits influence their commercial auto insurance needs. Insurers review several practical factors to determine risk levels, especially for companies that rely on regular travel between rural job sites or manage mixed-use vehicles. These considerations help shape appropriate liability limits, premium calculations, and safety planning across Texas and Kansas service areas.

  1. Driver experience

  2. Vehicle age and condition

  3. Trip distance

  4. Cargo type

  5. Frequency of daily routes

Review Contract and Client Requirements

Many commercial contracts require specific insurance limits, endorsements, or proof of coverage before work begins. In small-town markets, municipal clients or property managers often require documentation showing compliance. 

Keep Policies Updated as Your Fleet Evolves

As businesses grow, they often add service vans, expand delivery areas, change vehicle types, or onboard new drivers. Each change affects insurance needs, and policies should be updated before new operations begin. Although rare, severe incidents could result in high liability costs, and it is advisable to plan accordingly. 

Quick FAQ

Q: Do personal auto policies cover business use?
A: Not generally, because they exclude work-related driving.

Q: Should businesses increase limits for hauling equipment?
A: Yes. Cargo type and weight influence recommended liability limits.

Q: Do rural routes change insurance requirements?
A: Often yes, because long travel distances may increase exposure.

Key Takeaways

  • Personal policies rarely cover business-use vehicles.

  • State liability minimums may not provide enough protection for daily operations.

  • Commercial contracts often require specific insurance limits.

  • Rural and small-town businesses face unique risks related to distance and equipment transport.

  • Regular policy reviews help ensure compliance as fleets change.

Businesses operating in both commercial and agricultural environments should clarify whether any vehicle is used for hybrid purposes. Proper classification helps avoid gaps that commonly appear in mixed-use scenarios.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice.

Why Commercial Auto Insurance Matters for Contractors and Trades

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For contractors and trade professionals in rural and small-town settings, a properly structured commercial auto insurance policy is a regulatory checkbox as well as a practical foundation for safeguarding your business. Whether you transport tools to a job site in the Texas Hill Country or bring equipment across Kansas farmlands, your vehicle is a moving asset with exposure.

Coverage Built for Business Use

Many contractors rely on trucks or vans for daily operations—hauling materials, driving to multiple job sites, pulling trailers, or transporting crews. A personal auto policy often excludes business-use scenarios, leaving gaps in protection. According to industry sources, business vehicle use elevates risk and widens liability exposure. With commercial auto insurance, you gain higher liability limits, broader driver definitions and coverage for equipment-in-transit, which align with trade-based operations.

Protecting Tools, Vehicles, and Income from Disruption

In trades and contractor work, a vehicle carries tools, equipment and serves as a mobile workspace. When a covered incident occurs, you could lose access to your vehicle and thus your income. As one insurer observed: “Without commercial auto insurance, your business could face huge bills from damages or injuries resulting from such accidents. This kind of protection matters in rural locations where downtime and travel costs are higher and subcontracting delays are more disruptive.

Meeting Contract and Client Expectations

Many commercial jobs, especially with property managers, business owners or self-employed contractors, require proof of insurance for worksite access. A credible commercial auto insurance policy signals professionalism and compliance, helping you qualify for bids and partnerships. This matters in small-town and rural markets where reputation and trust with local clients and agencies are central.

Leverage Local Independent Agency Expertise

Working with an independent insurance agency that understands rural and small-town contractor operations can help tailor your coverage. Whether your service area covers Kerrville, Boerne, Hill City or Russell, the right agent will identify exposures such as multi-site employee driving, long-distance transport, equipment trailers, and seasonal fluctuations. They can ensure endorsements match your business; a huge improvement over a generic urban policy.

Know How to  Plan Proactively

Commercial auto insurance is vital, but it does not automatically cover every scenario. Common exclusions include hired and non-owned vehicles, tools detached from vehicles, or vehicles used outside policy definitions. One contractor-focused article points out that personal vehicle insurance may deny claims when business use is involved.  A thorough review with your agent ensures you identify supplemental coverages and endorsements if you operate in remote rural areas, use trailers, or employ multiple drivers.

Quick checklist for contractors and trade professionals

  • List all business vehicles (trucks, vans, trailers) and their primary uses.

  • Map driving patterns and job-site locations across rural or small-town regions.

  • Verify if business use is covered under existing policies and whether any vehicle is excluded.

  • Confirm driver definitions, trailer coverage and tools-in-transit endorsements.

  • Schedule an annual review with your agent as your fleet or service area changes.

For contractors and trades operating in rural Texas or Kansas, the right commercial auto insurance policy is a practical tool for compliance, business continuity, and professional credibility.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice.

The Key Benefits of a Business Owner’s Policy for Rural Businesses

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Rural and small-town businesses face a unique mix of opportunities and risks. Many operate with limited staff, multiple responsibilities and specialized equipment, which means unexpected disruptions can be costly. A business owners insurance policy helps simplify protection by combining essential coverages into one package. For business owners across Texas and Kansas, it offers a practical way to safeguard property, income and liability exposures.

A Streamlined Package for Essential Protections

A business owner’s policy typically brings together three primary protections in one policy: commercial property coverage, general liability coverage, and business income coverage. According to the Insurance Information Institute, a BOP can help protect buildings, contents, and income when a covered event interrupts operations. Bundling these coverages reduces complexity and helps rural business owners avoid gaps that can occur when purchasing separate policies.

Cost Efficiencies for Rural and Small-town Operations

Many rural businesses operate with tight margins. A business owners policy often costs less than buying multiple standalone policies, making it a cost-effective option. State and federal small business resources note that bundled commercial policies can reduce administrative fees and simplify purchasing decisions. This efficiency helps business owners in communities such as Kerrville or Stockton focus on day-to-day operations rather than managing multiple insurance plans.

Protection for Equipment, Buildings, and Disruptions

Rural businesses frequently depend on specialized equipment, outbuildings, leased workspace or seasonal revenue cycles. The Insurance Information Institute notes that fire, burglary, and storm damage are common perils that can halt operations.  A BOP supports these needs by protecting physical assets and providing income replacement after a covered loss. For businesses across the Texas Hill Country, this safety net can help maintain stability during challenging periods.

Local Expertise Improves Coverage Fit

Independent agencies familiar with rural regions bring added value when tailoring a business owners policy. They understand local exposures such as wind events, tenant-occupied commercial buildings, farm-adjacent businesses or equipment stored across multiple structures. That insight allows them to recommend endorsements that adjust the policy to match real-world operations.

Awareness of Limitations and Coverage Needs

A BOP does not cover every type of risk. It generally excludes professional liability, workers’ compensation, commercial auto and flood damage. Rural businesses may require separate policies or endorsements if they use large vehicles, offer specialized services or operate near flood-prone areas. Knowing these exclusions ensures that business owners do not assume protections that are not included.

Quick FAQ

Does a BOP cover equipment stored offsite?
Often no, unless an endorsement is added.

Is business income coverage included automatically?
Most BOPs include it, but limits vary.

Can seasonal operations qualify?
Yes, but coverage needs may differ depending on income cycles.

Key Takeaways

  • A business owner’s policy provides bundled protection for property, liability and income.

  • Rural and small-town businesses benefit from cost efficiencies and simplified administration.

  • Specialized equipment and multi-building operations align well with BOP protections.

  • Independent agents can tailor endorsements to local risks.

  • Understanding exclusions helps ensure complete and accurate coverage.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice.

Does Your Company Need Hired & Non-Owned Auto Coverage?

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Many Texas businesses rely on employee vehicles for errands, deliveries, or customer visits. What happens if an accident occurs while driving for work? Hired and non-owned auto coverage (HNOA) protects your company when employees or contractors use personal or rented vehicles for business tasks. It’s one of the most overlooked extensions of commercial auto insurance that can save you from costly liability claims.

What Hired & Non-Owned Auto Coverage Actually Covers

HNOA insurance protects businesses from claims of property damage or bodily injury caused by vehicles not owned by the company. If an employee gets into an accident while driving their own car to a client site, your business can still be sued. This policy covers legal defense, settlements, and judgments when a personal auto policy falls short.

When Your Business Needs It Most

Even small companies face exposure. Do staff members pick up supplies, deliver parts, or visit customers? Each trip creates liability. According to the Insurance Information Institute, more than 20% of all commercial claims involve employee-driven personal vehicles. Without HNOA, your business could be responsible for medical costs and legal fees that exceed an employee’s personal limits.

Common Scenarios Where Coverage Applies

Each of these incidents can trigger liability for the employer, even though the company doesn’t own the vehicle involved. Lawsuits often name both the driver and the business, regardless of who owns the car. Without hired and non-owned auto coverage, one accident could create financial exposure that ripples through the entire company:

  • Errands: An employee uses their vehicle for a business purchase and hits another car.

  • Deliveries: A contractor delivers equipment using a rented van.

  • Client visits: A manager drives their car to a meeting and causes an accident.

  • Rented vehicles: Staff rent a car for out-of-town business travel.

What HNOA Doesn’t Cover

This policy doesn’t protect physical damage to employee vehicles—it covers liability only. Businesses that rent cars frequently should consider a rental damage waiver or add physical damage endorsements. Your independent insurance agent can explain where coverage stops and recommend cost-effective options to fill the gaps.

Policy Limits and Coordination with Personal Insurance

Even with hired and non-owned auto coverage in place, understanding how limits coordinate with personal insurance is vital. The employee’s policy responds first; your business coverage steps in when their limits are exceeded. Because jury verdicts and repair costs keep climbing, most companies should choose at least $1 million in liability protection. Review endorsements annually—especially if your business expands routes, hires more drivers, or adds rental vehicles for seasonal work.

How to Strengthen Your Commercial Auto Strategy

Pairing HNOA coverage with your standard commercial auto insurance ensures you’re protected in every driving scenario—owned, rented, or borrowed. An independent agency like Garrett Insurance reviews all vehicle-related exposures and tailors limits to your real-world operations, not just your fleet list.

Disclaimer: This content is for educational purposes only and does not constitute legal advice.

Contract Requirements vs. What You Actually Need in Coverage

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It’s common for Texas business owners to acquire commercial insurance because a landlord, lender, or client contract demands it. But minimum requirements often protect others more than they protect you. Understanding the difference between contractual obligations and true coverage needs helps you avoid costly gaps that could cripple your business after an unexpected loss.

Why Contracts Set Minimums, Not Maximums

Most contracts outline only the insurance that protects the party drafting the agreement, typically property owners, project managers, or financial backers. For example, a construction contract might require $1 million in general liability coverage to protect the client from job-site accidents. But that limit may not cover your tools,your coverage. vehicles, or employees. For your own protection, consult a commercial insurance agency to round out your coverage.

When “Required” Isn’t Enough

Even if you meet every clause, you could still face uncovered losses. Suppose a subcontractor damages a client’s property and your general liability limit is exhausted. Without umbrella coverage, the rest comes out of your pocket. Or imagine your lease requires property insurance; but only for the building, not your equipment or stock. Requirements rarely reflect the full scope of your exposure.

How to Balance Cost, Compliance, and Real Protection

Buying insurance just to meet contract terms may check a box, but it rarely reflects what your business truly needs. A smarter approach is balancing cost, compliance, and protection. Start by meeting the contract minimums, then review your operations for uncovered risks like vehicles, equipment, or digital assets are common blind spots. Compare premiums versus potential loss, and remember that modest policy increases often yield significant added protection when tailored by an independent commercial insurance agent who understands your business.

Coverages That Go Beyond Compliance

A smart insurance strategy safeguards your company’s long-term stability. The right mix of policies shields revenue, assets, and employees from unexpected setbacks. Think of these layers as your business’s safety net, designed to keep operations running smoothly even after a major loss:

These policies may not appear in your contracts, yet they often determine whether a business recovers or closes after a major claim.

Working with an Independent Agent

An independent insurance agency goes beyond simply checking your coverage boxes. Their agents review contracts line by line, identify exposures that minimum policies overlook, and design protection that matches how your business actually operates. The goal is to meet every legal requirement while building reliable, long-term coverage that truly safeguards your assets and operations.

Disclaimer: This content is for educational purposes only and does not constitute legal advice.

Safeguarding Mobile Equipment & Tools with Inland Marine Insurance

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Every contractor, builder, and service company depends on tools and equipment that move daily between job sites. One accident, theft, or storm could halt operations overnight. Inland marine insurance protects these mobile assets by covering losses while they’re on the road, in storage, or actively in use. By understanding how this coverage works, business owners can prevent downtime and financial loss that standard property policies often overlook.

What Inland Marine Insurance Covers

Unlike traditional property insurance, which protects fixed locations, inland marine coverage follows your equipment wherever work takes you. It can insure power tools, compressors, materials, or even laptops used in field operations. If items are stolen from a truck, damaged in transit, or lost during installation, this policy fills the gap. For many small businesses, it’s the missing layer that keeps projects running smoothly.

Why It Matters for Mobile Businesses

Standard property coverage ends at your premises—exactly where most job-related risks begin. Equipment loaded into vans, trailers, or temporary sites faces exposure to theft, vandalism, and collision damage. According to the National Equipment Register, construction-related theft alone costs U.S. companies more than $1 billion annually. Inland marine insurance reimburses replacement or repair costs so work can continue without major interruption.

Key Policy Options and Endorsements

Most carriers allow policies to be customized to your operations.

  • Contractor’s equipment: covers owned and leased tools.

  • Installation floater: protects materials awaiting installation.

  • Builder’s risk extensions: address property under construction.

  • Computer and electronics coverage: shields mobile tech used for estimates and reporting.

Review each limit carefully—high-value machinery or specialty tools may require scheduled coverage to ensure full replacement value.

Common Mistakes to Avoid

Many owners underestimate the replacement cost of older equipment or assume auto insurance covers everything in transit. Others forget to update policies when they add new gear. A periodic inventory and consultation with an independent insurance agent ensures your protection keeps pace with growth.

How to Set the Right Limits and Valuation

Getting inland marine insurance is only half the job. You also need limits that match real replacement costs. Start by listing every tool and piece of equipment with make, model, and serial number. Choose replacement cost when available so claims pay what it takes to buy new, not the depreciated value. If you have a few high-value items, schedule them separately; use a blanket limit for the rest. Review deductibles so small losses do not stall projects.

Quick checklist:

  • Update inventories quarterly with photos and receipts

  • Add new purchases within 30 days

  • Confirm rental gear and borrowed tools are included

  • Watch for coinsurance clauses that penalize underinsurance

Reliable coverage keeps projects on schedule, payroll consistent, and client confidence intact. Inland marine insurance bridges the gap between the warehouse and the worksite, giving business owners peace of mind that critical tools are always protected.

Disclaimer: This content is for educational purposes only and does not constitute legal advice.

Important Insurance Options for the Oil and Gas Industry

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Texas energy drives local jobs and global markets, with risks as big as the rewards. From environmental exposures to high-value equipment, oil and gas companies need coverage from an experienced commercial insurance agent. Even a minor incident can trigger seven-figure losses. If you’re reviewing coverage, start with a high-level look at commercial policies.

Why the Oil & Gas Industry Has Stringent Insurance Guidelines

Oil and gas work spans high-hazard environments, multi-party worksites, and long supply chains. Blowouts, H₂S exposure, fires, explosions, and environmental releases can escalate quickly, affecting nearby landowners and communities. Contracts such as master service agreements and joint operating agreements often prescribe minimum limits and endorsements to align risk transfer among parties. Regulators and lenders expect proof of financial responsibility, and site owners typically require certificates before granting access. Because losses can be severe and complex to settle, the industry relies on clearly defined coverages and elevated limits to protect people, property, and production.

General Liability Insurance

At the core of every portfolio is general liability. Drilling sites, refineries, and transport hubs pose third-party risks. A single spill or equipment strike can mean property damage, injuries, and legal defense. This coverage reassures partners and regulators that common hazards are addressed. In practice, it’s a baseline requirement to secure leases, vendor approvals, and project partnerships.

Pollution Liability Insurance

Environmental damage is a top concern. According to the U.S. EPA, cleanup responsibility after hazardous incidents can be costly. Pollution liability helps fund cleanup, crisis response, and regulatory penalties. For operators near sensitive ecosystems or residential areas, it’s essential to preserve compliance and community trust.

Commercial Property and Equipment Insurance

Rigs, pipelines, and tanks represent enormous capital. A lightning strike or wind event at a remote site can cause severe damage and downtime. Equipment policies address repairs or replacement; property insurance protects offices, warehouses, and yards. Typical considerations include:

  • Protection against fire, wind, hail, and storm losses

  • Coverage for specialized drilling and extraction gear

  • Safeguards for tanks, warehouses, and supply yards

  • Options for temporary structures and mobile equipment

Companies in storm-prone or isolated regions especially benefit from policies that address both natural catastrophes and unexpected breakdowns.

Workers’ Compensation and Employer’s Liability

The sector’s injury rates exceed many industries. A comprehensive workers’ comp policy ensures injured employees receive care while limiting employer exposure. Employer’s liability extends protection for certain suits beyond medical costs. Together, they demonstrate a commitment to crew safety and operational continuity.

Additional Coverages to Consider

Beyond core policies, energy operations often need targeted protection that speeds recovery when the unexpected occurs.

Insurance is more than a compliance checkbox for energy businesses; it’s a foundation for stability in a volatile sector. With the right combination of liability, property/equipment, and specialized protections, Texas oil and gas companies can manage risk, maintain site access, and protect years of investment.

Most Important Insurance Requirements for Texas Business Owners

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Running a business in Texas brings both opportunity and responsibility. One overlooked responsibility is carrying the right insurance. Without protection, even small setbacks can create major financial challenges. From state mandates to industry-specific risks, owners should know which commercial insurance policies are required and which are simply smart. 

Workers’ Compensation

Unlike many states, Texas does not require most private employers to carry workers’ comp. But opting out removes important lawsuit protections and can expose owners to direct injury claims. The Texas Department of Insurance explains non-subscriber obligations and risks. In higher-hazard roles, the long-term risk often outweighs short-term premium savings.

Commercial Auto Insurance

Texas requires financial responsibility for vehicles used in business. If your company uses delivery vans, service trucks, or regular driving to job sites, commercial auto liability insurance is essential. Even when staff use personal cars for errands, a hired and non-owned auto liability policy can help protect the business after a crash. Review who drives, how often, and for what tasks, then set limits accordingly.

General Liability Insurance

Not mandated by statute, but commonly required by landlords, lenders, and contracts. General liability covers third-party injuries, property damage, and legal defense—think a customer trip on a storefront step or accidental damage at a client site. In practice, it’s a baseline requirement to secure leases, vendor approvals, partnerships, and larger projects, while also reassuring clients that your business operates responsibly, carries adequate protection, and can respond effectively when unexpected issues arise.

Property Insurance + Business Interruption

From Gulf Coast hurricanes to West Texas hail, natural disasters can halt operations. Property insurance helps repair buildings, replace equipment, and restock inventory. Pair it with business interruption coverage to replace lost income during closures.

Typical property coverage includes:

  • Wind, hail, fire, and storm protection

  • Coverage for equipment and stock

  • Safeguards for offices and warehouses

  • Options for temporary or mobile structures

Common Optional Coverages

Beyond the core policies, many Texas businesses benefit from additional protections. These optional coverages are not legally required but often address modern risks, contract expectations, or industry-specific exposures. Adding the right mix can help close coverage gaps and strengthen resilience.

  • Cyber liability for data breaches

  • Professional liability (E&O) for advice-driven work

  • Employment practices liability (EPLI) for HR claims

  • Umbrella liability to extend policy limits

Missing or Insufficient Coverage FAQ

Q: What happens if I skip workers’ comp in Texas?
A: You may save premiums, but you lose legal defenses and face direct liability for injuries—one claim can exceed years of premiums.

Q: Is basic general liability enough?
A: Often not. Contracts may require higher limits, and verdicts can exceed base caps. An umbrella can close the gap.

Q: Does property insurance cover downtime?
A: No. Property insurance repairs damage; business interruption replaces lost income during covered closures. Every Texas business has unique risks, but certain coverages rise above the rest. From workers’ comp and commercial auto to liability and property, thoughtful coverage supports resilience and long-term stability.

How Reliable Commercial Insurance Agents Reduce Risk and Stress

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As a business owner, you know that securing the right insurance coverage is an indispensable part of protecting what you’ve worked so hard to build. As your company evolves, your insurance coverage should, too. However, given the everyday challenges that come with running a business, it can be stressful to constantly look for liabilities. 

When you have a reliable commercial insurance agent by your side, you can minimize your company’s risk and find peace of mind. Take a look at some of the ways the right commercial insurance agent can make a difference in your business and your life.

They Spot Risks You May Have Missed

Even the most vigilant business owner can’t spot every possible risk. When you work with a local commercial insurance agency, you’ll know that your agent is actively monitoring for potential threats to your company.

A good commercial insurance agent understands the importance of being proactive, so they will look for coverage gaps and work with you to mitigate risks. For example, if your company is adopting an online record system, your agent might recommend cyber liability insurance to protect you in the event of a data breach.

They Assist With Regulatory Compliance

Some industries are more highly regulated than others. If you’re in a sector with strict insurance requirements, your agent can help you choose a policy that satisfies all regulations. As those regulations change, they may recommend policy changes or additions that keep you covered.

They Help You Understand Your Policy

Unless you’re in the insurance industry, the language used in policies can be difficult to understand. Some business owners rush into choosing policies or just select one based on an insurer’s recommendation. However, if they don’t have a comprehensive grasp of what their policy covers (and doesn’t cover), they may find themselves constantly worried.

A reliable commercial insurance agent won’t pressure you into a specific policy or rush you into making a decision. Instead, they’ll discuss coverage in plain language, answer questions, and do what they can to make sure you thoroughly understand your coverage. 

They Assist You Through the Claims Process

Most business owners hope that they’ll never have to actually file a claim. However, when you have an experienced commercial insurance agent, you know that you won’t have to navigate the claims process alone. Your agent can offer valuable guidance at each stage of the process:

  • Understanding whether your loss is covered

  • Helping you gather documentation

  • Putting together your claim

  • Facilitating communication between you and the insurer

If necessary, your agent can also advocate for you. While there’s no way to guarantee that the insurance company will offer you fair compensation for losses, having the help of a skilled agent can greatly increase your chances.

Never Underestimate the Importance of a Reliable Insurance Agent

To some people, buying insurance is just a transaction. However, when you have the right commercial insurance agent, purchasing coverage is so much more. In addition to getting an insurance policy, you’re also gaining a dedicated ally who is committed to your long-term success.

5 Important Ways Independent Insurance Agents Simplify Policy Decisions

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When you’re shopping for insurance, the policy itself shouldn’t be your only consideration. Independent insurance agents offer unique benefits, and they can help you find quality coverage for a fair price.

The world of insurance is notoriously complicated, and independent insurance agents can also help you keep things simple and straightforward. Here’s a closer look.

1. They Offer Unbiased Recommendations

When you work with a major insurance company, the agents assisting you are “captive” insurance agents. This means that they work exclusively for one company. Their job is to sell you a policy from their employer, and if another carrier has a policy that would better suit your needs, a captive insurance agent isn’t going to tell you.

With an independent insurance agency, the experience is different. Independent insurance agencies partner with multiple insurance carriers. This means that an independent insurance agent can help you compare policies from different companies. Because your agent works for you — and not for an insurance company — you can count on receiving unbiased advice.

2. You Won’t Have to Shop Around for Quotes

If you’ve ever looked for an insurance policy yourself, you may have reached out to several carriers for quotes. This process can be tedious, and in some cases, an insurance company won’t give you a quote without also giving you a sales pitch.

When you work with an independent insurance agent, there’s no need to spend hours gathering and comparing quotes. After discussing your needs and budget, your agent can find quotes and help you make a selection.

3. They Know the Local Market

When you work with an independent agent, you’re not on the phone with someone in an office hundreds of miles away. More often than not, independent agents are members of your local community. They understand the unique risks you face, so they can help you make the right coverage decisions for your needs.

4. They Build Long-Term Relationships

Many people who work with independent insurance agents don’t just purchase a policy as a one-off. Instead, they form lasting relationships, consulting their agent each time they need to update their coverage or buy a new policy. When your insurance agent has a thorough understanding of your history and your insurance needs, they can make accurate, efficient recommendations.

5. They Serve as Your Advocates

When you file a claim with a major carrier, a captive insurance agent can walk you through the process. However, because these agents are employed by the insurer, you can’t count on them for objective advice. 

Your independent agent works for you, so when they guide you through the process of filing a claim, you can be assured that they have your best interests in mind. Your agent may also advocate for you with your insurance company, making it more likely that you’ll receive a fair settlement.

Ready to Find the Right Policy?

Whether you’re trying to insure your car, your home, your health, or something else, choosing the right coverage is critical. When you have the help of an independent insurance agent, protecting yourself and your loved ones doesn’t have to be complicated.

Key Coverage Areas a Commercial Insurance Agent Can Explain

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No matter the size of your business, you need commercial insurance — also known as business insurance — to manage risks and safeguard your business from financial loss.

Your business is surrounded by risks that can lead to financial losses from property damage, liability claims, operational disruptions, and employee accidents and injuries. Coverage from a commercial insurance agency can keep these incidents from leading to large financial outlays or potential business failure.

A commercial insurance agent can explain the key areas of coverage essential for all businesses, big and small.

What Is Commercial Insurance?

Commercial insurance acts as a contract between your business and an insurance company. You pay a premium, and in exchange, the insurer assumes the risk and liability for certain covered events that could result in a loss for your business. If the accident or incident happens, a commercial insurance agent can help you file your claim. If it is covered, your insurer pays the claim.

Key Commercial Insurance Coverage Areas

Whether your business is large or small, commercial insurance is crucial to safeguard your company from the financial costs of claims for property damage, liability, and employee-related incidents.

A commercial insurance agent is your trusted advisor to explain complex insurance terms and tailor your coverage to your specific needs.

The key coverage areas in every business are:

Commercial Property Insurance

This type of commercial insurance can safeguard the physical assets and related financial gains of your business. These include:

  • The Building: Structure, installed fixtures, and machinery

  • Business Property: Contents, such as furniture, inventory, and equipment

  • Business Interruption: Lost income and temporary closure expenses

Commercial property insurance can guard against loss or damage from such events as fire, theft, and natural disasters.

Commercial General Liability Insurance

Commercial general liability insurance can help guard your company against financial loss from legal claims filed by someone outside your business for:

  • Bodily injury

  • Property damage

  • Personal and advertising injury

Your coverage may pay the costs for someone who was injured at your business, damage that your operations or an employee caused to someone’s property, and liability for such offenses as libel, slander, and copyright infringement. 

Workers’ Compensation

Most states require businesses to carry workers’ comp insurance to cover employees who suffer work-related injuries or illnesses.

Workers’ comp can pay for the medical costs and lost wages of employees who agree not to pursue a claim against the company. This compensates the employee and safeguards the company against lawsuits from injured or ill employees.

Let a Commercial Insurance Agent Explain Coverages to You

Talking to a commercial insurance agent can go a long way in helping you understand the essential coverage areas for businesses: commercial property insurance, commercial general liability insurance, and workers’ compensation. 

A commercial insurance agent can also assess your special risks, compare coverage options and pricing, and customize policies for you.

If you need additional commercial insurance, you can talk to your agent about commercial auto insurance, professional liability insurance, and commercial umbrella insurance.

How Independent Insurance Agents Simplify Risk Management

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Whether you’re a business or an individual, buying insurance isn’t just about finding the lowest premium. It’s about knowing that your company — or you and your family — are adequately covered for whatever risks lie ahead.

That’s where working with an independent insurance agency comes in. An independent agent takes a comprehensive, personalized approach to constructing a strategy that simplifies your risk management.

An independent insurance agency takes you beyond simply insuring against risks. Your agent proactively manages risks.

Here’s how an independent agent’s holistic approach simplifies risk management for you.

What Is an Independent Insurance Agent?

An independent insurance agent is a licensed professional who is your ally in the complex world of insurance. They represent multiple insurance carriers and work with you to find the right insurance that fits your needs at a reasonable price.

Unlike captive agents, who exclusively sell the insurance products of one insurer, independent agents can choose from a broad range of carriers to customize coverage to your needs. 

Understanding Your Risk Profile

Your independent insurance agent is a trusted risk advisor who takes the time to get to know you and your business to learn about your risks and exposures.

Unlike a captive agent, an independent insurance agent takes a holistic view to evaluate your life or business operations to identify risks.

These agents do the following:

  • Conduct a thorough assessment beyond the standard to uncover potential risks and vulnerabilities that others might miss

  • Review your operations or lifestyle to understand how they might impact your insurance needs

  • Tailor your risk mitigation strategies to reduce premiums

  • Forecast future needs that may arise as your business grows and your family changes

  • Develop a strategic roadmap for your insurance needs

This approach can give you the clarity to see how you or your business is safeguarded today and in the days ahead.

An Independent Insurance Agent’s Process

Independent agents simplify risk management by following a process that builds a relationship with you. They become trusted risk advisors by offering personalized advice and strategies.

The process varies, but it can look like this:

  • Initial Consultation: An agent takes the necessary time to learn about you or your business

  • Risk Assessment: They take a deeper dive to root out all potential risks

  • Submission for Insurance: Understanding your risks, an independent agent submits details to insurance carriers

  • Proposed Insurance Presentation: They walk you through and thoroughly explain the best proposals for your coverage

  • Policy Selection: Once you make a selection, your independent agent will handle the paperwork for you, and you’ll receive your policy documents

  • Ongoing Support: The relationship is just beginning once you have insurance — your agent is available to answer questions, advocate for you with claims, review your policies before renewal, and change coverage, if necessary

Your independent insurance agent’s comprehensive, personalized approach to risk management can save you time and money and give you comfort in knowing you have the appropriate insurance coverage for you and your family or business.

Independent Agents Simplify Risk Management

When you work with an independent insurance agent, your risk management is simplified because your agent takes a holistic approach to identifying potential risks, finding you sufficient insurance against those risks, and proactively helping you manage them.