FAQ

Why do I need Employment Practices Liability Insurance (EPLI)? My business is small and I’ve known and worked with most of my employees for years.   [top]
It’s not just employees that can file a claim against you. Third parties, such as one of your customers, or one of your vendors that you do business with, can also file a lawsuit alleging that he or she was discriminated against or harassment by you or one of your employees. And even if you’re not guilty, just the costs to defend a lawsuit are likely to run into the thousands.

It’s also important to remember that you can be sued for more than just discrimination and sexual harassment. An employee (or ex-employee) may accuse you and file a lawsuit for wrongful termination, failure to hire or promote, wrongful discipline, demotion, or failure to enforce or administer employment practices consistently. While you might have known and worked with the same employees for years, you cannot predict what someone might do a person will do or what feelings he or she  may have if you had to lay that person off because business slowed-down, or if you promoted one employee over another who wanted or felt that he or she deserved promotion.

AHM’s EPLI programs were created specifically to help protect you and your business against employment-related claims and lawsuits alleging discrimination, harassment, and other wrongful acts. Coverage is provided for actual damages as well as the legal expenses incurred in defending a claim. In addition to incidents involving current and former employees, coverage is also available for legal actions brought by members of the public and other third parties. And multiple choices for limits and deductible allow you to tailor a program which fits your business and financial interest.

Why do I need Funds Transfer Coverage? If someone steals our banking information and makes an unauthorized transfer or withdrawal from one of our accounts, won’t the bank be responsible for it? Wouldn’t it be covered by the FDIC (Federal Deposit Insurance Corporation)?   [top]
The FDIC was enacted specifically to cover losses (depositors’ losses) resulting from bank failure. It does not cover losses caused by fraud or theft. There are some state and federal laws, as well as standard banking industry practices, which limit consumer losses arising from criminal activities, including the fraudulent transfer or withdrawal of funds from a banking institution. One example is the federal Electronic Fund Transfer Act which limits a consumer’s liability for the unauthorized use of an ATM or debit card to no more than $50. However, certain types of accounts and losses may be excluded (exempted) from these laws, and consumers are required to report fraudulent activity within a certain timeframe. In fact, if a known loss is not reported in time, a consumer could be responsible for the full amount of unauthorized charges/losses occurring after the first unauthorized use.

The bottom line is, you cannot assume that a bank or any other financial institution is responsible for a fraudulent transfer or withdrawal of funds from your account. That’s why you may want to ask your insurance representative how Funds Transfer Fraud Coverage can provide an added level of security. It covers losses resulting from a fraudulent instruction (electronic, cable, teletype, facsimile, or telephone) by someone claiming to be you or your employee directing a financial institution to transfer, pay or deliver funds from your account. Funds Transfer Fraud can be combined with other available Crime coverage’s to provide a comprehensive package of protection against financial losses resulting from criminal acts committed by outsiders and employees.

I don’t need Computer Fraud Coverage. We use firewall protection, and other security programs. Plus, if anyone is able to break into our system and steal from us, we’ll be able to trace it through our internet provider.   [top]
Technology is changing every day. The unfortunate truth is internet service providers, protected websites, anti-spyware and other privacy services and software can’t keep up with computer hackers. Every time one way in is blocked, someone else finds another path. If you conduct business over the internet, particularly banking transactions and other financial activities related to sales, inventory, accounts receivable, or accounts payable, you are at risk. But you can help limit your financial losses with Computer Fraud Coverage. It covers loss of money, securities, and other property resulting from the fraudulent use of a computer to transfer property from inside an insured location or banking institution to a person or place outside the insured location or banking institution. Ask your sales representative how Computer Fraud Coverage can help protect you from internet crime.

I don’t think I need a Commercial Umbrella. My liability limits under my commercial policy are at $500,000 and that seems high enough.   [top]
A bodily injury or death claim resulting from an auto accident or some other incident arising from your business operations could easily exceed $500,000. If your business is responsible, your liability doesn’t end when your insurance company pays the full $500,000 limit. You (your business) are still responsible for any damages which exceed the limit, which means you risk losing your business assets. If you’re a business owner, securing adequate insurance protection is one of the best investments you can make. If you don’t have a Commercial Umbrella, you need to consider it. If you do have an umbrella, you should consider increasing the limit to a level where you feel you’re getting the security and protection you need at a premium level you’re comfortable with.

I don’t think I need Personal Umbrella coverage. My autos are titled to my business and they’re covered under my Commercial Umbrella Policy.    [top]
A Commercial Umbrella Policy is intended to provide liability coverage for operations and exposures related to the conduct of the business organization to which it is issued. It is intended to cover owners, partners, executive officers, and employees while acting within the scope of their work-related duties and responsibilities. In certain circumstances, a Commercial Umbrella Policy might extend coverage to the personal use (by owners, officers, partners, or employees) of autos owned by the business. However, there’s probably no coverage under the umbrella for personal use by family members of other non-employees. For example, let’s say you’re the principal owner of an incorporated business. All vehicles are titled to the corporation and are insured under a Business Auto Policy at a liability limit of $1 million per accident. There’s also a Commercial Umbrella Policy which provides another $5 million per accident on top of the Business Auto Policy. If you’re driving a corporate-owned vehicle for non-business use, you and your business may be protected up to a combined limit of $6 million (Business Auto Policy at $1 million plus $5 million Commercial Umbrella). But if your son or daughter is driving that same corporate-owned vehicle for personal use, it may not be covered under the umbrella.

It’s much more than just an auto liability issue. If your actions or the actions of a family member cause or contribute to any type of accident, you can be held personally responsible for bodily injury or property damage to a third party. If the damages to that third pay exceed your liability coverage (limits), you risk losing your personal assets. Not just your savings and investments, but also your home and personal belongings. Don’t risk losing what you have worked so hard to earn. Protect yourself and your family by asking your American Hardware sales representative to add a Personal Umbrella to your Commercial Umbrella Policy.

Why is the Equipment Dealers Stock Floater (EDSF) such a great program for farm implement and construction machinery and equipment dealers?   [top]
The EDSF was created specifically for businesses engaged in sales and service of machinery and equipment used in farming, and various other uses commercial and industrial uses, including construction, contracting, materials handling, and warehousing. Essentially, the EDSF, in one single coverage form, provides comprehensive protection for virtually all of a dealer’s personal property exposures. This includes new and used equipment and machinery held for sale; parts and accessories held for sale; other types of property held for sale; machinery and equipment held for rent; property of others (customers) held for service, or repair; furniture, fixtures, and equipment of the business; computer equipment; and employees’ tools. The EDSF is an inland marine form which means property is covered on and off the business premises. Other features and options include false pretense coverage, flood coverage, and an automatic 25% increase in the limit to cover seasonal fluctuations in inventory values.

Does American Hardware offer personal umbrella coverage?   [top]
Yes, up to $5 million is available for business owners who have a commercial umbrella with AHM.

How will my claim be handled?   [top]
Claims can be submitted 24 hours a day, 7 days a week, with a claims adjuster contacting you within 24 hours of the claim being reported. Our philosophy is to provide customers with as much assistance as possible to make sure their experience during a claim is not disruptive to their business.

What happens if a change needs to be made to my policy and I can not get in contact with my sales representative?   [top]
Licensed, knowledgeable and highly trained customer service reps are prepared to answer questions and assist customers whenever possible. Real-time changes to policies are only a phone call away.

I prefer to work with only one person for all my insurance needs. Is this possible through American Hardware?   [top]
Yes it is. Not only do we have an in-house agency for coverage’s unique to your business, we also have the ability to offer personal lines, life, health, and disability allowing all of your insurance needs to be handled through one company and one sales representative.

What are some of the benefits of working with a direct writer?   [top]
Our experienced, professional sales representatives specialize in writing commercial insurance. They will take the time to meet with you in person to not only discuss your coverage needs, but also will explain how our programs and customized coverage’s meet your business’ unique and specific needs.

Who is American Hardware Mutual?   [top]
Since 1899 AHM has been providing quality insurance to hardworking individuals and the successful companies they have built. In association with The Motorists Insurance Group, American Hardware is extremely proud to be a key contributor to the group’s $1.4 billion in assets and policyholder surplus of more than $591 million. Our financial strength, experience and expertise are key reasons why we consistently earn an “A” (Excellent) rating by the A.M. Best Company. American Hardware Mutual has been a leader in the commercial insurance industry for more than 100 years. As a direct writer of property and casualty lines for small- to medium-sized businesses, we are able to design and customize insurance programs for our specialty niche markets.

American Hardware associates are committed to providing MAX Service.   [top]
MAX Service is an attitude and commitment to provide legendary service to sales representatives, policy holders and colleagues in every interaction. The MAX Service Standard reads; If I do not have the answer, I’ll find it. If I do not have the time, I’ll make it. There is nothing more important than helping this person.