Liability insurance is required in Texas. Serious fines and even jail time are only the basic consequences of driving uninsured. If you end up in an accident without proper insurance, you can add the cost of lawsuits, losing your license and collateral damage to that as well.

Personal Auto Liability Coverage is most often sold in packages with three numbers. As an example, 25,000/50,000/25,000 is the Texas state minimum. Most folks are unaware of what these numbers mean. The first number is the maximum liability limit that will be paid for injuries to any one person that the insured driver is responsible for. The second number is the maximum limit which will be paid if the insured driver is liable for bodily injuries to more than one person. The third number is the maximum limit that will be paid for property damage the insured driver is responsible for. It is easy to see that the state required minimum coverage may not be adequate. Consider that if a driver is held responsible for damage or total destruction to one or more luxury vehicles, state minimum property insurance limits of $25,000 will not adequately cover the damage.

Uninsured/Underinsured Motorists Coverage (UM/UIM)covers bodily injury to occupants of the insured vehicle and/or property damage to the insured vehicle caused by an uninsured or underinsured motorist. Most folks forget the second phrase in this coverage which is underinsured motorists coverage. Considering that the state minimum limits are 25,000/50,000/25,000 and that a good many drivers carry only the minimum limits, it is highly probable that any accident which you might become involved in will involve an underinsured, if not an uninsured motorist. This valuable coverage may be rejected, though the agency does not recommend doing so.

Collision Coverage covers damage to the insured vehicle up to Actual Cash Value (ACV) for any vehicle on the policy to which such coverage applies. It is possible to cover some, but not all vehicles, on the policy with collision coverage. Collision Coverage is offered with a variety of deductible choices. Naturally, the higher the deductible selected, the lower the premium. It is also possible to purchase optional gap or replacement coverage on new vehicles so that at the time of collision, the coverage provides the difference between the ACV (or depreciated value) of the wrecked vehicle and the price required to purchase a brand new vehicle.

Comprehensive Coverage covers all other accidental causes of loss other than Collision up to Actual Cash Value. Like Collision Coverage, it is offered with a variety of deductibles with the caveat that carrying higher deductibles yields a lower premium. Like collision coverage, comprehensive coverage may be carried on some, but not all vehicles insured under a policy.

Personal Injury Protection (PIP)/Medical Payments To the extent of PIP limits, PIP covers medical bills for the driver or passenger who are injured in an insured vehicle regardless of whose fault an accident is. To the extent of the PIP limits it also covers lost wages while the injured is recovering and unable to work. Medical Payments coverage, like PIP, covers medical expenses, but it does not cover lost wages. Generally a motorist selects PIP or Med Pay Coverage, but not both. This valuable insurance coverage may be rejected, though the agency does not recommend doing so.

While auto insurance is sold with an overwhelming variety of coverage choices and through numerous companies, we can save you confusion by custom building an affordable auto insurance package to suit your specific needs and budget. We can protect your investment against accident, theft, vandalism and many other potential problems while saving you money.

Your home and its contents are probably your most valuable assets and it can be a huge financial risk to leave those assets unprotected or inadequately covered. We can aid you in establishing your home's replacement value and provide protection not only for your property, including replacement cost coverage for your home and contents, but also for any liability you might incur due to accidents which might occur on your property.

Homeowners and Renters policies should be written on a replacement cost basis rather than an Actual Cash Value (“ACV”) basis. It does little good after a fire or other catastrophe to receive from the insurer ACV on an item that is still useful, but which might be depreciated. A television set is a good example. A ten year TV while still 100% functional might easily be considered to be depreciated 50% or more. If Replacement Cost coverage is purchased, the homeowner gets a new TV after a loss. On the other hand, with ACV coverage, the homeowner who lost a 10 year old TV gets very little. Replacement Cost coverage on both the dwelling and contents is an essential ingredient of adequate homeowners’ coverage. For the same reason replacement cost coverage is just as important with renters coverage.

Homeowners coverage is available under many different lettered or numbered homeowners insurance forms, example A, B, C, 3 or 5. The forms with the higher numbers or letters generally provide broader coverage and protect against a broader range of perils.

Medical costs are rapidly rising and a serious illness or accident can be financially devastating, assuming of course, one were fortunate enough to obtain decent health care without such coverage in the first place. Medical insurance protects you and your family against catastrophic medical expenses. Most policies can be customized to fit your specific needs and can include networks (PPOs) or traditional (any provider) plans. It is possible to select from a wide variety of options for personal or group policies, including deductibles, coinsurance, maternity, prescription drug card, dental, and accidental medical expense coverage.

Life insurance protects your family. It provides cash to cover outstanding debts (like a mortgage, credit cards, medical bills, etc.) and provide a steady cash flow in the event of your death. While dwelling on death might seem morbid, a bit of planning now can save your loved ones a great deal of pain and financial uncertainty in the future.

Disability coverage protects the income stream of a worker and his family (or your business) in the event a wage earner becomes disabled. These wage replacement policies can be flexibly tailored to provide long or short term disability benefits dependent on the needs of the client. Southern Agency offers group and individual policies.

Southern Agency offers insurance packages which are tailored to individual needs. Whether you’re shopping for insurance for your business, building, business property, workers compensation, inventory or company vehicles we offer insurance products and services to protect your businesses.

In addition we offer group health, life and disability insurance for you and your employees. Southern Agency writes all kinds of businesses and specializes in the following risks:

Read on to find out more abouot different types of Commercial Coverage...

GENERAL LIABILITY

What It Protects Against: Accidents and injuries that happen on company property or the property of a client. General liability insurance may also include forms or endorsements to provide protection against products liabilities.

How it Works: Commercial general liability coverage or (“GL” or “CGL””) includes payments to injured persons or owners of property that become damaged as a result of the negligence of the business or its employees. These payments cover medical expenses and the costs of defending lawsuits, including legal settlements or investigations. Such insurance may also provide the means to post bonds during legal proceedings, or pay judgments.

A GL policy also covers liable, slander, advertising injury, copy write infringement and other personal injuries. Owners of businesses which do not carry commercial automobile insurance may nonetheless purchase hired and non-owned coverage under a GL policy to shield them from liability which might occur if an employee uses his/her personal vehicle and becomes involved in a vehicular accident while on company business.

Who needs it: Most, if not all, companies. This is the most basic type of liability insurance.

What you need to know: GL policies exclude losses that can be covered under other types of policies such as:

BUSINESS OWNERS POLICIES

What It Protects Against: A variety of property and liability risks. It is often compared to a homeowner's policy for a business.

How it Works: Business Owners Policies (“BOPs”) combine basic coverage’s needed by small or mid-size companies into a single policy with a single premium that should cost less than buying coverage’s separately.

Covered perils for property coverage include those covered under regular commercial property policies such as fire, wind storm and explosion. Property coverage also covers loss of business income and extra expenses resulting from a covered property loss. Among the available optional coverage’s:

Who needs it: Small to mid-size companies. Insurers created BOPs to make insurance easier and less expensive for these types of businesses.

What you need to know: Premiums are based on location, type of building construction, public fire protection, occupancy type, existence of fire sprinklers and limits/deductibles applicable.

PRODUCTS LIABILITY

What It Protects Against: Cost of judgments, settlements and legal fees arising from damages or alleged damages caused by a faulty or defective product.

How it Works: Coverage cost depends on the kinds of products being underwritten. Some, such as lawn mowers or wood-burning stoves, are more dangerous than others or at least they are perceived as such. Goods with a higher potential for injury include:

Who needs it: The manufacturer, seller and the vendors of the products, both retail and wholesale, because all may be liable. Liability may be extended beyond the design or manufacturing the product itself to:

What you need to know: Lawsuits may challenge product design and safety, testing and hazard potential. They may also question the level of customer education of product recall activity, if any.

WORKER'S COMPENSATION

What It Protects Against: Lawsuits arising from workplace accidents. It provides medical care and lost wage benefits to an injured employee, along with other compensation.

How it Works: Workers Compensation insurance is no-fault insurance designed to protect against suits from employees who become ill, injured or are killed as a result of job related injuries. It also protects employers because it most often provides immunity from suit for employers that carry such coverage. Employers who do not subscribe to workers’ compensation coverage have no immunity from lawsuits resulting from work related accidents suffered by employees and are faced with an increased evidentiary burden in such suits.

Who needs it: Virtually every employer. Businesses are required to buy workers’ compensation insurance or risk an increasing evidentiary burden in any lawsuit that results without the employer carrying workers’ compensation insurance.

What you need to know: Benefits of workers’ compensation insurance include the amount and duration of medical services and rehabilitation as well as death benefits, if applicable. Workers Compensation coverage is sold as a separate policy.

COMMERCIAL VEHICLE

What It Protects Against: Liability, No-Fault medical payments, uninsured/underinsured motorists, collision and comprehensive physical damage. In addition, commercial auto affords coverage on autos that are hired or borrowed for use in the business. The latter can be autos owned by employees or members of their households while in use on company business.

How it Works: Liability coverage pays for injuries or damages due to an accident involving the use of a covered auto. The insurer also pays for legal defense costs. Medical coverage pays for an insured's medical expenses. Uninsured/underinsured coverage pays for damages when the offending party is unable to pay.

Who needs it: Virtually every business.

What you need to know: Texas requires liability coverage and, uninsured/underinsured motorists coverage, unless waived in writing In addition, lenders on auto loans require physical damage coverage on the financed vehicles. Even firms that own no autos usually want hired and non-owned auto liability coverage.

COMMERCIAL PROPERTY

What It Protects Against: The insured's buildings, business personal property and personal property of others, if specified. Loss of business income or extra expenses incurred because of physical loss of a covered peril to the insured's property can also be covered.

How it Works: Some policies cover multiple causes of loss specified in the policy, such as:

Who needs it: Most businesses because mortgage lenders require at least some level of property coverage.

What you need to know: Premiums are based on the business location, financial stability, security features, fire hazards and whether any construction is taking place on an insured's site.

EMPLOYMENT PRACTICES

What It Protects Against: The financial costs of lawsuits brought by employees, former employees or potential employees.

How it Works: It covers the costs of lawsuits brought for:

Who needs it: New and fast-growing companies are considered most vulnerable because they may not have developed clear guidelines for hiring, firing or disciplining employees. New Technology firms are considered especially vulnerable.

What you need to know: Cases against employers are on the rise and can result from the pre-hiring process to the exit interview, or even people who are not hired or who work only a few days. Businesses can incur expenses even if an allegation is groundless. Premiums depend on the number of employees, type of business and risk factors such as whether the company has a history of being sued by employees. Policies cover legal costs but may not pay fines or punitive damages.