Frequently
Asked Questions
Q: What Protection does the Program Provide?
A: PROGRAM HIGHLIGHTS
1. Insuring Company – Philadelphia Insurance
2. Statutory Availability – Continental United States *
3. Coverage Available:
A. INCLUDED in the NASMM Package Policy:
Your Business Property – including Computer Hardware, Software and Your Business Property in Transit
Property of Others - in Your Care Custody and Control
General Liability - covers your businesses common law tort liability for bodily injury and property damage
Professional Liability – covers Wrongful Acts like a negligent act, error or omission committed or alleged while rendering of your Professional Services.
Non-Owned & Hired Automobile Liability - covers employees using their own cars in your business, and cars you temporarily rent to use in the business for LIABILITY only
Employee Dishonesty (employee theft against you the employer)
Business Income ** - covers lost profits and continuing expenses after a covered property loss
B. MINIMUM Limits of Liability provided by the NASMM Package Policy (higher limits may be available subject to underwriter approval for an additional premium):
$ 10,000 Your Business Property
$ 5,000 Computer Hardware and $1,250 Software
$ 30,000 Customers Goods in your Care, Custody & Control (Bailees Coverage)
$ 1,000,000 per Occurrence / $3,000,000 Aggregate General Liability and Professional Liability
$ 1,000,000 Non-Owned & Hired Automobile Liability
$ 10,000 Employee Theft of YOUR property
C. OPTIONAL Coverage - Available on SEPARATELY Written Policies:
Blanket Crime (Fidelity) Bond – covers theft of CUSTOMERS GOODS by you and up to three of your employees
$10,000 protection - $120 annually, plus $6 billing fee
$25,000 protection - $210 annually, plus $6 billing fee
$50,000 protection - $330 annually, plus $6 billing fee
Workers' Compensation - State mandated coverage for your employees (or uninsured sub-contractors) – MRSC can arrange this coverage for you & your company
Umbrella Liability - increases the coverage available for both automobile and general liability claims - $1 and $2 million limits are available
Automobile (Business or Personal form) - for your owned vehicles used in the business)*
Q: If I have homeowner’s insurance and am running a home-based business, why do I need “Business Insurance”?
A: The Liability Section of the Standard Homeowner’s Policy specifically EXCLUDES coverage for “business operations” other than “incidental” business operations (such as paper routes and baby sitting). It also has a Property coverage LIMITATION (generally no more than $ 500/claim) for “Any Property Used in Business”. Thus, a NASMM member operating from home has NO Liability coverage and little Property coverage unless they purchase “Business Insurance”.
Q: Does membership in NASMM guarantee insurance protection under the program?
A: No. Each member must apply and will be subject to individual underwriting which will include:
1. Location of Operation
2. Experience
3. Type(s) of Services Offered
4. Claim Experience
5. Statutory Worker’s Compensation Classification*
* Some classifications are considered “undesirable” by the insurance company.
Q: Are there other “requirements” to be met to secure the insurance?
A: Yes. Each member MUST be willing to enter into uniform contracts with clients and independent contractors as a regular course of business. These contracts MUST include a Hold Harmless Agreement, A requirement that ALL parties carry insurance, and that all parties provide evidence that they carry insurance.
Q: Why are the contracts so important?
A: You as a NASMM member use a client contract to protect yourself by spelling out what services you will provide for an agreed fee. Your client contract lists the responsibilities and obligations of both parties to the contract. If anything occurs your client contract is what defines who is liable. Your client contract only is between you and the client. It does not cover any of the independent contractors that you refer or that the client may use on their own. An independent contractor should not be allowed on the clients locations without proper liability insurance and workers compensation insurance.
Problems can be avoided when the NASMM member has a written contract with the client in place that required the client to carry (and show evidence of) homeowner’s insurance AND a Hold Harmless agreement making the client responsible for their negligence as well as any INDEPENDENT CONTRACTORS hired by the client.
Q: Why are there coverages in the policy that I may not need nor want?
A: There are two (2) reasons. First, some of them are “built-in” and cannot be removed. The coverages are offered by the company as incentives to purchase the product. Secondly, because of the Minimum Annual Premium charge, some coverages were increased (i.e. Personal Property coverage) so that the ACTUAL annual premium was equal to the minimum charge. This way each member receives some benefit from paying the minimum charge.
Q: Why aren’t all coverages available in every state?
A: Individual state’s requirements sometime restrict an insurance company’s ability to offer certain products. In addition, specific geographical areas present hazards that many insurance companies do not want to entertain. An example of this is Property Insurance coverage in coastal areas (due to the hurricane exposure).
Q: How long will it take for me to get a quote?
A: That depends on what type of insurance you are requesting and where you are located. For the “basic” policy, 3rd Party Employee Dishonesty, Automobile coverage, and Umbrella coverage the time frame should be somewhere between one (1) week and three (3) weeks (sometimes sooner). The Worker’s Compensation will normally take about thirty (30) days to process.
Q: What is the process for getting a quote?
A: Call Chuck Snyder at 800-860-7660 ext 215. He will ask the needed information needed so MRSC Insurance Partners will forward you the NASMM Insurance application and supplemental application. We will need you to supply us with the following documentation:
Completed NASMM Insurance application and supplemental application
Copy of client letter/agreement (Mandatory. You are not eligible for the program without a client agreement)
Copy of your existing coverage (if any)
Copy of your Damage Liability Policy (if any)
Copies of any other marketing materials (brochures)
Your website address
Once we receive your documentation we will review and forward the information on to the insurance company to review and approve. Once we receive the quote, we will forward (fax/e-mail) a proposal to you.
Q: If I decide to purchase the coverage, who do I contact with questions?
A: We will have included the premium for the NASMM package and the option for the Blanket Crime (Fidelity) Bond in the proposal sent to you. When you return all the required information you can tell us your requested effective date. We will send you an email confirming the coverage you requested, the effective date and a copy of the Certificate of Insurance we have forwarded to NASMM on your behalf.
You will receive your policy and annual billing within 2 to 4 weeks. For your convenience on the bill you will see a toll free phone number to the insurance company billing department that you can call to make your payment by credit card.
