Do I Need Additional Insurance for my Airbnb Rental?

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It’s so easy and happens all the time; property owners sign up for Airbnb with the goal of earning extra money during the year. It’s a quick and easy process to sign up for this home-sharing service. Soon your property is posted on the website and, before you know it, you’re operating your own rental/hotel business. 

But too many homeowners are soon confronted with a disturbing surprise: homeowner’s insurance policies typically will not cover Airbnb. Usually, an Airbnb home insurance policy is recommended, if not required.

That’s right. In the vast majority of cases, a homeowner’s insurance policy will not protect any type of property damage or bodily injury, for example, that takes place at an Airbnb rental. What’s more, on top of your homeowner’s insurance probably denying any claim, you could likely have your policy canceled. 

Short-term renting on Airbnb is considered a business transaction, which means you need business insurance. In short, you must have a business insurance policy that replaces your existing homeowner’s insurance. It needs to cover you while you are there, and while you have Airbnb guests. 

Be Sure Your Airbnb Insurance Provider Covers You

The vast majority of insurers classify a short-term rental on Airbnb as the same as a hotel, labeling it a business activity. There are some insurance carriers that will provide a limited home-sharing endorsement usually worth $10,000 in coverage. However, beyond that, almost any host protection insurance claims could be denied. 

This is where Airbnb home insurance comes in. 

Why Property Owners Require an Airbnb Insurance Company

As someone who rents out your home on Airbnb or another property rental site, it is important that you secure adequate coverage prior to listing your home for rent. More and more states regulate rentals, which means the majority of property owners are legally mandated to maintain business liability insurance if they rent out their home for short-term durations. 

One option is to find a vacation rental insurance company that will help make sure you remain compliant with existing laws and are also covered for property damage and liability issues. 

 

Homeowners Insurance Combined with Host Protection Insurance and Airbnb’s Host Guarantee

You could be protected by Host Protection Insurance and Airbnb’s Host Guarantee.  Host Protection Insurance and Airbnb’s Host Guarantee do not apply to hosts who provide accommodations through Airbnb Travel, LLC, hosts in mainland China, hosts in Japan, or hosts of experiences. 

Host Protection Insurance is a liability insurance program. It can provide up to $1 million in liability coverage for a host’s legal responsibility to a guest or a third party who is injured or has their property damaged as a result of an incident connected with an Airbnb stay. 

Airbnb’s Host Guarantee is a property damage protection program. It gives you up to
$1 million in property damage protection if a host’s place or their belongings are damaged by a guest or their invitee during an Airbnb stay. 

It is important to note that your personal insurance policy – which includes homeowners, condo, or renters insurance – may offer limited coverage during the time you’re hosting an Airbnb guest, or none at all. 

Factors to Consider 

  • Host Protection Insurance is a primary liability insurance protection, so it typically applies first no matter what other insurance policies you carry. 
  • Airbnb’s Host Guarantee is not an insurance policy, and not all property damage that guests cause falls within its terms. Hosts looking for additional protection should think about buying personal insurance that covers property damage that is not protected by Airbnb’s Host Guarantee. 
  • You can count on various insurers offering their own rules regarding short-term rentals. Know your policy thoroughly before you begin to host. Additional coverage is an option. 

 

An Airbnb Home Insurance Policy is Worth Having

You might wonder if having Airbnb home insurance is worth the cost. It is unless you are comfortable with high risk. 

Keep in mind, that if your guest inadvertently burns down your home, you’re out of luck. You very likely will not receive reimbursement because standard homeowner’s insurance does not cover rentals. If you believe your home or property has even some worth, then you should insure it. 

Do Not Rely on Your Homeowners Insurance for Airbnb Rental

As mentioned earlier, do not make the mistake in thinking that homeowner’s insurance will cover your Airbnb property. You need an Airbnb insurance provider. Your homeowner plans are intended to protect you from property damage claims and liability in accordance with a specific set of circumstances that exclude rentals. 

When you rent out your home, whether regularly or occasionally, the risk for property damage and liability claims increases tremendously. This is not factored into your existing homeowner’s insurance plan. What’s more, if your insurer learns that you listed your property for rent in Airbnb, they will probably discontinue your coverage and decline to reimburse you for future filed claims. Too many homeowners are not aware of this until they can’t do anything about it. 

 

Obtaining the Right Airbnb Insurance Company For Your Property

Different insurance companies provide their own types of homeowner’s insurance protection. You will want to select an insurer that, in particular, covers Airbnb short-term rental property to make sure your Airbnb house or property is sufficiently covered. These are known as commercial liability policies that are purchased on top of homeowner’s coverage. 

As you may come to realize, paying for two insurance plans can be expensive and difficult to manage. Additionally, your homeowner’s insurer could drop you from your plan if they discover you are renting out your property to a guest. 

Don’t Forget Commercial Liability Coverage

Liability claims protection might not be the first thing that comes to your mind when you own a business, but that doesn’t lessen its importance. If you are renting out your home only a few times a year, you are still operating a hotel-type business. So, if your guest sustained a bodily injury while staying at your property, you could be held personally liable, and this still applies even if you were not involved in the personal injury. 

Consider that the legal expenses for just liability claims could total into the tens of thousands of dollars, at least. This is why it is important that when you select an Airbnb home insurance company, you choose one that not only offers host protection from a property damage claim but that you are covered for liability claims, too. 

 

If You Have a Complete Loss of Your Airbnb Property

There are two ways an insurer can compensate you for a total loss of your property. One way is utilizing a Actual Cash Value system.  For this method, the expense of rebuilding your property is calculated. Afterward, depreciation, which is likened to a loss of value over time, is deducted from this cost. So if you, as the insured, make a claim on older property, you could find yourself out of a substantial amount of money. 

The second method of reimbursement is known as the Replacement Cost valuation method. For this situation, the claim that is covered is equal to the amount mandated in today’s dollars to rebuild the property. Here, there is no factoring of depreciation. You, as the insured, can have your property rebuilt at no disadvantage to you. 

5 tips for protecting yourself:

  1. If you’re not going to be around, and the property is your main home, secure your mail, either via a locking mailbox or using a PO Box for redirected mail.
  2. Lock your valuables away and make sure the contents of your home are properly insured. “Though Airbnb has an insurance system that covers certain types of damage, they don’t protect debit or credit cards, checks or financial papers, jewelry, etc.,” she says. (Speak to us if you’d like to discuss contents insurance for your rental property)
  3. If you offer Wi-Fi, protect the details of your system. You can set up a guest-only network. And by connecting via a Virtual Private Network (VPN), their Internet activities won’t be traceable to your home. (Google “VPN” to learn more about how to do this.)
  4. In addition to checking out the renter’s profile, create an emergency plan for them, explaining safety issues in the home, locating features like fire extinguishers, and providing a list of emergency numbers.
  5. Install a security system. “With a security system, you can monitor what goes on in your home,” she says. “In addition, outfitting your home with a home security system may earn you more bookings as it provides your guests with an extra layer of security which may not be available in other rentals they are also considering.”

To hear an Airbnb home insurance rental horror story, click here!

Graybeal Group, Inc. Offers The Widest Range of Products and Pricing

Graybeal Group, Inc. is a professional Insurance company with licensed agents and staff.  With over three decades of experience, The Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch. 

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business. At Graybeal Group, Inc., we are committed to providing an experience that empowers our clients so they are educated on their coverage and the value we provide above all others.

For more information, we invite you to call Graybeal Group, Inc. at (541) 567-5523. 

How to Avoid Farm Machinery Hazards

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Avoiding Farm Machinery Hazards

Every attempt is made by farm machinery manufacturers to ensure that their products are safe. It also helps when you and your workers do your best to avoid farm machinery hazards.  Agricultural work presents many hazards even with the safety guards added to equipment for further insurance.  Unfortunately, human error still remains the biggest cause for accidents and injuries on the farm.  Whether it’s taking a shortcut, not paying attention, not following the safety rules, or simply ignoring warning signs, all of these are examples of human error.

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We’ve compiled a list of some of the most common farm machinery hazards farmers and their workers could face:

Cutting Points and Shear Points

Cutting points occur when an object moves forcefully and is able to cut (example: sickle blade).

Shear points occur when the edges of two objects move close together and can cut soft material (example: auger).

SAFETY: Remain alert while operating machines that have cutting and shear points. Also, let others know when you are using the machines and to avoid them, as some machines can throw objects while in use.  This will help you avoid farm machinery hazards.

Crush Points

Crush points occur when objects move toward one another, or one object moves toward a stationary object. Workers can be crushed in between.

SAFETY: Absolutely block equipment securely to avoid fatal crushing injuries.  This will also help you avoid farm machinery hazards.

Pinch Points

Pinch points are created when two rotating objects move closely together, one moving in a circle.

Hands and feet can get caught in pinch points, or other body parts can get pulled into pinch points when loose clothing becomes entangled in the machine.

SAFETY: Wear tight-fitting clothing and never work near rotating parts or reach over them.  Avoid areas that have been identified to have pinch points.  This too, will help you avoid farm machinery hazards.

Wrap Points

When exposed machine parts rotate, they create wrap points. Loose clothing can get caught in the moving parts, and consequently pull workers into the machine.

SAFETY: Shield potential wrap points before beginning your work.  If you cannot shield them, paint them. This will help remind you and others that they’re there.  This will help you avoid farm machinery hazards.

Click for more information regarding farm insurance and liability insurance!

Also, a big part of Farm and Farm Equipment Safety is having a strong Workers Comp Policy in place..Workers’ compensation coverage pays benefits to workers injured on the job, including medical care, part of lost wages and permanent disability. It also provides death benefits to dependents of employees killed from a work-related accident. Workers’ compensation systems are different in every state, as individual statutes and court decisions have shaped the way they handle claims, evaluate impairments, settle disputes, provide benefits, and control costs.

As part of the insurance package, the injured worker’s medical, rehabilitation, and lost wages are paid for by the state or insurance carrier. If the injury leaves the employee disabled, the insurance carrier will pay the claim based on the extent of the injuries and based on its permanence. The disability will fall into one the following categories: temporary total, temporary partial, permanent partial, or permanent total disability.

Workers’ compensation rates and programs are managed by private insurers, state funds, or the National Council on Compensation Insurance (NCCI). Ferranti-Graybeal Insurance can provide more information about how Oregon handles these programs.

Graybeal Group, Inc. Offers The Widest Range of Products and Pricing in Oregon

Graybeal Group Inc. is a professional Insurance company with licensed agents and staff.  With over three decades of experience, Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland, and Forage, and Farm & Ranch. 

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business.

For more information, we invite you to call Graybeal Group Inc. at (541) 567-5523.

Additional Farm Insurance Coverage in Oregon

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Our goal here at Graybeal Group Inc. is to make sure you fully understand your farm insurance policy and the additional coverage this provides in the state of Oregon. We want to make sure you know what your policy covers and what is doesn’t, so there’s no surprises!

DEBRIS REMOVAL: The insurance company will cover expenses to remove debris from the insured property if that debris is a result of a covered loss. The insured must report the expense within 180 days of the damage/loss for debris removal to be covered.  The insurance company will pay equal to 25% of the total loss plus the amount of deductible applicable to the loss. If the amount is more, after limits have been reached, the insurance company will pay another 5% of the limit of insurance. EXCEPTION: The insurance company will not pay to extract pollutants from land or water. 

REASONABLE REPAIRS: If the insured needs to make necessary repairs to the damaged property to prevent further loss, the insurance company will pay reasonable costs to do so. 

PROPERTY REMOVED: This additional coverage addresses if property is removed from a damaged building (that’s covered by the policy) and placed somewhere else to prevent loss, the insurance company will pay for any loss to that property up to 30 days after its removal. 

FIRE DEPARTMENT SERVICE CHARGE: No deductible applies here- the insurance company will pay for fire department services (assumed by contract or agreement with insured) when they are called to save or protect covered property from a covered cause of loss.

Exception: If the fire department service is provided to insured through taxation, this coverage does not apply. 

POLLUTANT CLEAN UP AND REMOVAL: If the loss is reported within 180 days, the insurance company will pay up $10k for each insured location and occurring during each 12 month period of this policy. It covers the insured’s costs to remove pollutants from land or water that results from a covered form of loss.

COLLAPSE: Damage or loss is covered if caused by or resulting from direct physical loss involving collapse of or any part of a building caused by one or more of the following: 

  • Hidden Decay
  • Broad Form Named Perils (The ones listed in the broad form as covered perils)
  • Weight of personal property or people
  • Hidden insect or vermin damage 
  • Weight of rain that collects on a roof
  • Use of defective methods of construction, defective materials, remodeling, or renovation- if collapse occurs during remodeling, renovation, or construction. 

oregon farm insurance coverage graybeal group

For more information regarding farm insurance, click here!

Graybeal Group, Inc. Offers Widest Range of Products and Pricing in Oregon

Graybeal Group, Inc. is a professional Insurance company with licensed agents and staff.  With over three decades of experience, The Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch.

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business. At Graybeal Group, Inc., we are committed to providing an experience that empowers our clients so they are educated on their coverage and the value we provide above all others.

For more information, we invite you to call Graybeal Group, Inc. at (541) 567-5523.

What Does Business Owner’s Insurance Policy Cover in Oregon?

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What exactly is a Business Owner’s Policy? The insurance company agrees to pay for direct physical loss or damage to covered property at the described premises caused by or resulting from any Covered Cause of Loss. Covered property includes the insured’s building(s) and business personal property as follows:

  • Buildings/Structures at the described premises, including: 
  • Completed Additions
  • Fixtures, including outdoor fixtures
  • Permanently installed machinery and equipment
  • The insured’s personal property in apartments or rooms furnished to others
  • Personal Property owned by the insured used to maintain or service the premises, including: 
  1. Fire extinguishing equipment
  2. Outdoor furniture
  3. Floor coverings
  4. Appliances used for refrigerating, ventilating, cooking, dishwashing, or laundering

If not covered by other insurance, this also covers additions under construction, alterations, and repairs to the buildings or structures, including materials, equipment, supplies, and temporary structures on or within 100 feet of the described premises that will be used in making additions, alterations, or repairs. 

business owners policy insurance coverage

 

Business Personal Property located in or on the building(s) at the described premises or in the open (or in a vehicle) within 100 feet of the described premises, including: 

  1. Property owned by the insured that is used in the business.  This includes, but not limited to: furnishings, office equipment, inventory (stock) held for sale, etc. 
  2. Property of others in the insured’s care, custody, or control: Settlement on personal property of others will Actual Cash Value, unless the property is subject to a written contract that governs the insured’s liability for loss or damage, then valuation will be based on the amount of liability specified in the contract, but not to exceed the lesser of replacement cost or the applicable limit of insurance.  Property of others includes, but not limited to, equipment (leased by the insured) used in a manufacturing process, leased equipment used in assembly, etc. 
  3. Tenant improvements  (fixtures, alterations, installations, or additions) that are made part of the building or structure at the insured’s expense, but cannot be legally removed. 
  4. Leased personal property the insured has a contractual responsibility to insure unless otherwise provided for under “Property of others in the insured’s care, custody, or control.” This includes property such as photocopies or leased computer equipment that the lessee is required to insure. 
  5. Exterior building glass: Extends coverage if the insured is a tenant, where no limit of insurance is shown for building coverage, applicable only if the glass is owned by the tenant (insured) or in the tenant’s care, custody, or control. 

Graybeal Group, Inc. Offers The Widest Range of Products and Pricing in Oregon

Graybeal Group, Inc. is a professional Insurance company with licensed agents and staff.  With over three decades of experience, The Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch.

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business. At Graybeal Group, Inc., we are committed to providing an experience that empowers our clients so they are educated on their coverage and the value we provide above all others.

For more information, we invite you to call Graybeal Group, Inc. at (541) 567-5523.

Types of Homeowner’s Insurance in Oregon

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Does my homeowner’s insurance cover this? The question that many insurance agents receive every day from their customers. Today we will discuss what coverage is afforded with a homeowner’s insurance policy. 

There are four categories of homeowner’s insurance coverage options in Oregon- Coverage A-Dwelling, Coverage B-Other Structures, Coverage C- Personal Property, and Coverage D-Loss of Use.

What Does Homeowner’s Insurance Actually Cover?

Coverage A – Dwelling

Dwelling coverage provides coverage for the physical home itself. It also provides coverage for supplies and materials that are used in construction, repair, or to alter the dwelling and/or other structures located on the insured’s premises, these materials must be located on or next to the premises.

Coverage B – Other Structures – What Does This Cover?

Other structures on the insured’s premises that are apart from the main dwelling, defined by a clear space between – ei: shop, shed, barn, or free standing garage. If the structure is attached to the main dwelling via utility line or fence, etc it’s considered detached and will be covered under Coverage B. You may wonder what is my limit and how is it calculated? Other Structures limit is 10% of your Coverage A (Dwelling) limit. In other words, if your Dwelling(Coverage A) is insured at $300K, then your Other Structures (Coverage B) limit would be $30k.

Coverage A: $300,000.00 x 10% = Coverage B $30,000.00

There are exclusions for Coverage B and it is important to understand what they are. If you are unsure if your property may not be covered, ask your agent. If your “Other Structures” are being used for business purposes, being rented or held for rent to someone who does not reside in your home, coverage on this structure is excluded. One exception is if the structure is being used as a private garage only. If it’s being used as a private garage only, the renter does not have to reside on the premises for this “other structure” to be covered. 

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Coverage C – Personal Property – Homeowner’s Insurance Policy Oregon

Personal Property can cover your property while being physically at your home or anywhere in the world. Personal Property can range from furniture, electronics and clothing, camping gear and at times the property of a house guest if applied to your policy upon issue. This type of coverage helps pay to repair or replace your belongings after a covered loss, such as theft or fire

The limit of coverage for Personal Property is 50% of your Dwelling limit (Coverage A). If your Dwelling limit(Coverage A) is $300K, then Personal Property limit (Coverage C) is $150K. 

Coverage A: $300,000.00 x 50% = Coverage C $150,000.00

Personal property away from the premises coverage limit is 10% or $1,000.00 of your Dwelling (Coverage A), whichever is more. Coverage away from the premise is strictly for the insured’s property, this does not apply to guests.  

In your homeowner’s policy, there are special limits of insurance. In other words, designated amounts of maximum coverage for certain items. 

See table below: 

Maximum Amount of Coverage  Items included 
$2500 Business personal property at the residence
$1500 Personal records, deeds, securities, passports, stamps, letters of credit, notes (other than bank notes), accounts, proofs of debt, tickets, and manuscripts. Also included is the cost to replace, research, or restore the lost/damaged information
$1500 Trailers not used with watercraft
$1500 Watercraft, including trailers, equipment, and outboard motors (an outboard motor is a propulsion system for boats, consisting of a self-contained unit that includes engine, gearbox and propeller or jet drive, designed to be affixed to the outside of the transom)
$1500 Electronic apparatus while in, on, or away from a motor vehicle, as long as it can be operated from the motor vehicle power source and retains its ability to be operated from a power source other than the motor vehicle. Includes tapes, wires, disks, records, and other media 
$500 Business property away from the insured premises
$200 Bank notes, money, gold (not goldware), silver (not silverware), coins, platinum, medals, and bullion (Bullion is gold, silver, or other precious metals in the form of bars or ingots.

 

There are also types of property that are subject to a max amount of coverage if they are stolen. See table below for those items and their max coverage amounts.

Maximum amount of coverage Type of Property
$2500 Firearms
$2500 Goldware, Silverware, and Pewterware
$1500 Furs, watches, jewelry, precious and semi-precious stones

 

Coverage D – Loss of Use Homeowner’s Insurance Coverage in Oregon

What exactly does this mean? Loss of use coverage is applicable when a residence or dwelling becomes uninhabitable due to damage that has been caused by a covered cause of loss. 

There are few different scenarios that would cause this coverage to kick in: 

1) Cost of Living Expenses: If the dwelling suffers a covered loss and is uninhabitable, the insurance company will reimburse the insured for the (necessary) increased cost of living expenses to keep a normal standard of living – while the property is being restored/repaired. This is referred to as Additional Living Expense. 

2) Fair Rental Value: If the loss occurred on the part of the residence premises that is rented out to others, the insurance company will pay the fair rental value while the building is repaired. Payments will be for the shortest time to repair/replace. 

Lastly, if civil authority doesn’t allow you to access your dwelling/premises because of damage to a neighboring dwelling, the insurance company will pay Fair Rental Value or Additional Living Expenses for up to two weeks. 

Graybeal Group, Inc. Offers Widest Range of Products and Pricing in Oregon

Graybeal Group, Inc. is a professional Insurance company with licensed agents and staff.  With over three decades of experience, The Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch.

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business. At Graybeal Group, Inc., we are committed to providing an experience that empowers our clients so they are educated on their coverage and the value we provide above all others.

For more information, we invite you to call Graybeal Group, Inc. at (541) 567-5523.

What Does the Fair Credit Reporting Act Mean in Oregon

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fair credit reporting act oregon

The Fair Credit Reporting Act was put in place by Congress in 1970 to protect consumer’s rights. It applies to any financial institution that is requesting information on a consumer through credit reporting or other consumer reports. The entire Act contains a lot of information and is very extensive, but, the following pertains to insurance companies and the rules and regulations they must follow to protect consumers. 

oregon fair credit reporting act 1970

 

  1. If the insurance company wants to pursue an investigative consumer report, the consumer must provide authorization and be notified within 3 days of an initial request that the report was requested. An investigative consumer report is done through personal interviews with an applicant’s friends, neighbors, acquaintances, business assoc., etc. and this process must be disclosed to the applicant/consumer.  The purpose is to determine the applicant’s character, personal characteristics, general reputation, and the way they live.
  2. Applicant must be notified of their right to the disclosure of the nature and extent of the investigation.  If requested by the consumer, the insurer requesting the report must provide a summary to the applicant relative to the nature and scope of the investigation within 5 days of request.
  3. If the app for insurance is rejected by the insurance company, based on info obtained through an inspection or credit report, the insurance company must provide the applicant with the name of the reporting agency. 
  4. If requested by the consumer, the reporting agency must disclose to the consumer the nature and substance of all information (excluding credit scores) contained in the individual’s file at the time of request. 
  5. If the consumer disagrees with the info found in the report, he or she may request a re-investigation relating to disputed information.  The reporting agency must re-investigate free of charge.  If the reporting agency is unable to verify disputed information within 30 days, the reporting agency must promptly remove the disputed information from the file. If disputed info is NOT removed from the file, the consumer has the right to submit a letter of dispute relating to the report. The letter of dispute must then accompany any subsequent report requested. 

Graybeal Group, Inc. Offers A Wide Range of Products and Pricing

Graybeal Group Inc. is a professional Insurance company with licensed agents and staff.  With over three decades of experience, Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch. 

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business.

For more information, we invite you to call Graybeal Group Inc. at (541) 567-5523.

Do I Need Hemp Product Liability Insurance?

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When you are an owner of a hemp or cannabis business, you figure you’ve got so much hemp insurance, why would you need more?  You probably purchased all the policies your business mandates that include Property Insurance, Worker’s Comp, Business Income Coverage, Product Liability, General Liability, etc. 

Why would you possibly need product liability insurance for your cannabis business? You could assume that your business is covered under another business’ product liability policy. 

Product liability is a substantial coverage gap in the successful operation of your hemp or cannabis business. 

hemp product insurance graybeal group

Importance of Having Hemp Product Liability Insurance

All cannabis businesses involved in the supply chain – from business owners to wholesalers and distributors – are advised to have their own product liability insurance. Strict liability doctrine makes your business legally vulnerable if your business permitted a dangerous or defective product to enter the market. 

There are many problems that can surface with respect to a cannabis crop. They include drought to application of the wrong pesticide concentration, which makes it unusable. These mistakes can cost wholesalers and distributors major losses. 

If there is a shortage of cannabis product, your hemp business might have to fill your orders through other suppliers. The risk comes in when a new supplier is not aware of the state requirements and the integrity of the hemp is undermined. Product liability coverage will protect you from both the actual product and the equipment used like vape cartridges, lighters, and batteries. 

 

Product Liability Coverage Extends to Product Quality

Having product liability insurance will serve to cover you from liability if there are issues with the quality of the hemp – at any step of the way. For example, if a product is sold in edible form, food poisoning could happen or illness from ingestion. When it comes to products that are smoked, you’re contending with potential health hazards as a result of long-term exposure to contaminants that could be present in the product. This could occur from mislabeling or other errors. This additional hemp insurance – product liability – covers your business from legal actions stemming from product contamination. 

 

Additionally Insured on Another Business’ Product Liability Insurance Not Adequate

Your hemp business is still exposed to potential legal action even if you are an additional insured on another business’ product liability policy. 

States like Washington require cannabis businesses to have Commercial General Liability with limits of at minimum $1 million. Subsequent to a series of uninsured product liability claims, Washington state changed its insurance requirements for licensees by requiring they buy product liability insurance under WAC 314-55-082. 

This stipulates that a licensee’s insurance is mandated to cover bodily injury that includes disease, illness and death and property damage. These issues could result from the licensee’s premise or operations, products, and personal injury. 

 

Dispensaries and Retail Operations Require Product Liability Insurance 

While dispensary and retail outlets typically would rather not carry their own product liability insurance, it is not legally sufficient to be covered as an additional insured. 

There is significant legal exposure to various parties along the cannabis supply chain when it comes to lawsuits. Strict liability permits plaintiffs to sue every party that was involved in allowing a dangerous product to enter the possession of a consumer. 

Washington state amended their statutes to make it clear that retailers are required to obtain their own product liability hemp insurance. 

 

Ways to Protect Your Business Against Product Liability Claims

First, be aware of Health Hazard Exclusions, which include: 

  • You should have product liability insurance for your business, despite being listed on a processor or manufacturers policy as an additional insured. Policy limits can be quickly exhausted in product liability claims. Unpaid portions are the responsibility of your business. 
  • Cannabis industry insurance policies are frequently written through non-admitted insurance companies. These non-admitted insurers have ample leeway on how exclusive they make their product liability coverage. 

 

What Does a Health Hazard Exclusion Mean?

Health Hazard Exclusion translates into your insurance not applying to any claim or suit for injury or damage in any way related to hemp, cannabis, or marijuana. This represents a significant risk for hemp and cannabis business owners. 

 

Make Sure Your Product Liability Coverage Includes Product Recalls

A vast majority of insurers provide your business the choice to buy product recall coverage limits. However, it’s not required. As a business owner, it is important to purchase limits for product recall, or you will float the bill when getting products returned from consumers. 

 

Put Together a Product Recall Plan Before You Have a Loss

Make sure you develop a well thought out recall strategy before you need it. Refer to state laws, and put together comprehensive distribution lists to determine when and where a product has been sent. Then craft a quick response to contaminated products. Be sure you record each step you take to ensure your recall is successful. 

 

Review Your Policy Every Year

It is important that you conduct an annual review of your product liability insurance policy and speak with outside legal council if you think your policy is inadequate. You want to be knowledgeable of the exact policy language in your product liability hemp insurance so you are always clear on the extent of your coverage. 

Learn more about how the USDA plans to extend crop insurance to hemp.

Graybeal Group, Inc. Offers The Widest Range of Products and Pricing

Graybeal Group, Inc. is a professional Insurance company with licensed agents and staff.  With over three decades of experience, The Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch. 

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business. At Graybeal Group, Inc., we are committed to providing an experience that empowers our clients so they are educated on their coverage and the value we provide above all others.

For more information, we invite you to call Graybeal Group, Inc. at (541) 567-5523. 

What if I Get Into an Accident With an Uninsured Vehicle in Oregon?

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graybeal group inc uninsured vehicle

An uninsured vehicle in Oregon is a vehicle that meets any of the following criteria: 

  • The vehicle is operated by a hit and run driver, where the insured is unable to identify the driver of the vehicle 
  • No liability policy is in place at the time the accident occurs
  • Or the auto has liability coverage, but the coverage is not enough to meet Oregon’s standard requirement
  • If the other driver’s insurance company denies their coverage or the insurance company is or is going bankrupt

uninsured vehicle insurance graybeal group inc

WHAT IS NOT COVERED WHEN IN AN ACCIDENT WITH AN UNINSURED DRIVER IN OREGON: 

  • Using an auto without the reasonable belief he or she is allowed/entitled to (Does NOT apply to family members using a covered auto owned by the insured)
  • Using an auto for public use/livery conveyance, unless it’s a shared car pool
  • If accident while an INSURED is driving or is struck by another one of THEIR autos that is NOT covered in the policy
  • If a family sustains bodily injury while occupying or struck by the named insured that has primary coverage under another policy (then that policy will pay it)
  • If a bodily injury claim is settled without the insurance company’s consent
  • If bodily injury occurs and it’s already covered by a workers compensation policy or disability benefits law
  • Doesn’t cover/pay for punitive or exemplary damages (Punitive damages, also known as exemplary damages, may be awarded by the trier of fact (a jury or a judge, if a jury trial was waived) in addition to actual damages, which compensate a plaintiff for the losses suffered due to the harm caused by the defendant)

OREGON REQUIREMENTS FOR UNINSURED MOTORISTS

The insurance company is required to provide uninsured motorist coverage for bodily injury in an amount equal to the policy’s limit for bodily injury liability coverage unless the named insured asks for lower limits in writing. 

If the named insured requests lower limits in writing to the insurance company, the following must happen: 

  • They must get a signed statement from the insured acknowledging that he or she was offered coverage with limits equal to his or her bodily injury liability limits and this statement must contain a brief summary of uninsured/under-insured motorist coverage actually provides.
  • Provide a premium comparison with the limits equal to the insured’s bodily injury liability limits and the requested lower limits

To find out about what kind of auto insurance coverage options are offered by Graybeal Group Inc., and protect yourself from uninsured motorists!

Graybeal Group, Inc. Offers A Wide Range of Products and Pricing

Graybeal Group, Inc. is a professional Insurance company with licensed agents and staff.  With over three decades of experience, The Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch.

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business. At Graybeal Group, Inc., we are committed to providing an experience that empowers our clients so they are educated on their coverage and the value we provide above all others.

For more information, we invite you to call Graybeal Group, Inc. at (541) 567-5523. 

What are the Benefits of Oregon Worker’s Compensation Insurance?

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workers compensation insurance oregon

Worker’s compensation insurance was created to protect companies from being sued by injured employees. The benefits of Worker’s Compensation are offered to an injured employee. However, the employee must have been injured on the job due to job-related activities. Also, they are covered if they succumb to an illness that is job-related in its cause.

worker's compensation insurance oregon

WORKER’S COMPENSATION PROVIDES FOUR (PRINCIPAL) BENEFITS: 

  1. Disability income benefits
  2. Medical benefits
  3. Death/Survivor benefits
  4. Rehabilitation benefits

MEDICAL BENEFITS

Medical benefits will cover the cost for most medical treatment. These are generally paid 100%. 

DISABILITY INCOME BENEFITS

There is a 3 day waiting period in Oregon for Disability Income Benefits to kick in. Other states may have a different waiting period, but, typically it’s 2 to 7 days. Once the waiting period is passed, the benefits will be paid retroactively and the employee will continue to receive a weekly check based on a percentage of their earnings. There are four classifications of disability, based upon the degree of disability. 

  1. Permanent Total: Complete and total loss of the ability to perform a gainful/suitable occupation.
  2. Temporary Total: A total disability that will last for a short period, after which the employee can return to full employment.
  3. Permanent Partial: A disability that results in a partial loss of earning power or limits the employee’s overall capabilities.
  4. Temporary Partial: A temporary limitation in work capabilities that may require the employee be placed on light duty for a period of time. 

The amount payable from this benefit is based on the degree of disability and the length of time the disability is expected to last. 

DEATH/SURVIVOR BENEFITS

There are two types of benefits that are paid under this.  One is a burial allowance and the other is monthly income benefits to eligible survivors. 

  1. The burial allowance is paid in a lump sum. The amount is based on a multiple of the employee’s weekly earnings. 
  2. A monthly income benefit is paid to the deceased’s spouse and/or dependent children, which is all dependent on the employee’s earnings and rationed proportionately to each family member.  

The spouse benefit is paid for life, unless the person gets remarried. The children’s benefit is up to a specified age, typically 18, unless there’s other circumstances (higher education, etc.)

REHABILITATION BENEFITS

These benefits are offered to restore a person to a position of productive employment. In addition to rehabilitation services, the disabled worker may be compensated for necessary cost associated with rehabilitation, room/board, travel, equipment, and books. Generally, any justifiable expense will be paid under rehabilitation benefits. 

To read more about Oregon Worker’s Compensation Insurance specifically, please click here (it will take you to Oregon WC specific article- happy reading!)

Graybeal Group, Inc. Offers The Widest Range of Products and Pricing in Oregon

Graybeal Group Inc. is a professional Insurance company with licensed agents and staff.  With over three decades of experience, Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch. 

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business.

For more information, we invite you to call Graybeal Group Inc. at (541) 567-5523. 

What is Liability Insurance?

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Liability Insurance is purchased by consumers to protect themselves against their own negligent acts towards others that result in bodily injury or property damage. A person may be determined liable to another because of an act that damages a person or property of another, referred to as a “tort”. A tort is a civil wrong that violates the rights of another. A tort could be done on purpose, or unintentionally. 

The only type of tort that may be insured is the unintentional type.  It is defined as an individual action (or failure to act) as a reasonably prudent person would act given similar circumstances. A reasonable person can be defined by the standards of his/her profession or by the level of education and training, give the age and background of the individual. Also, an unintentional tort is commonly referred to as a negligent act or negligence. 

Negligence: The lack of reasonable care that is required to protect others from the unreasonable chance of harm.

In order to establish negligence, four things must be present :

  • A breach of legal duty has occurred
  • A legal duty must be owed
  • A proximate cause that 
  • Results in damage to another, property damage or bodily injury.

Legal duty varies based on the situation or circumstance, however, the “prudent person” rule generally prevails, which is defined as that degree of care imposed on one person as it relates to the protection of property and/or rights of others.  Failing to do so can result in a breach of that legal duty. 

The duty owed by one person to another may be expressed as the degree or standard of care imposed, given the situation. A property owner owes the greatest degree of care to someone he/she invites onto the property for their (the property owner) own benefit. A lesser degree of care is given if the person is say, a licensee. Someone who has permission by the owner to be on the property, but, the benefit is theirs (the licensee’s). The very lowest degree of care is in regards to a trespassing individual. 

Proximate cause is an unbroken chain of events that results in a loss, bodily injury, or property damage. The sequence is unbroken by any other factors or events and would not have occurred, except for the sequence of events. An example of this would be someone falling asleep at the wheel, therefore, veering into oncoming traffic and causing an accident. 

liability insurance graybeal group

Property damage or bodily injury caused by one person to another can result in a monetary award to compensate the injured party. Monetary awards fall under two different categories.

Compensatory: To reimburse the injured party for losses that were actually sustained. The two subtypes of compensatory award are;

-Special Damage Award: Involves the actual expense resulting from the loss, including medical expenses, lost earnings, funeral expenses, and the costs to repair or replace damaged property, when applicable

-General Damage Award: Made to compensate the injured party for issues such as pain and suffering. 

Punitive: To punish. A court may award punitive damages as a means of punishment if it believes damage or injury inflicted was maliciously or willfully imposed. Punitive damages are also awarded as a means of making an example of the defendant, essentially to discourage others from behaving in the same manner.

For more information regarding general liability insurance, click here!

Graybeal Group, Inc. Offers Widest Range of Products and Pricing in Oregon

Graybeal Group, Inc. is a professional Insurance company with licensed agents and staff.  With over three decades of experience, The Graybeal Group takes pride that our agents are specialized in the needs of our customers in the areas of Crop/Agriculture, Hemp, Non-Profits, Pasture Rangeland and Forage, and Farm & Ranch. 

Being able to provide the time for our agents to focus on their specialty allows us to give you – our clients – the needed coverage for your home and business. At Graybeal Group, Inc., we are committed to providing an experience that empowers our clients so they are educated on their coverage and the value we provide above all others.

For more information, we invite you to call Graybeal Group, Inc. at (541) 567-5523.