Archives: 2018

Waterlogged

The Flood of 2010 left an indelible mark on Nashville, Tennessee.  The United States Geological Service classified it as a 1000-year flood, which means a deluge that has a “one in a thousand chance of occuring in any given year.”  The city saw almost 14 inches of rainfall in a two-day period, which broke a 31-year-old record.  Most residents watched the local news in disbelief as a trailer from Lighthouse Christian School floated down a flooded Interstate 24.  The efforts to rebuild the city took years and were complicated for many by the shock of learning that they did not have the proper insurance coverage.

Two Thousand Eighteen is proving to be a rainy year yet again for Middle Tennessee.  As reported by the website Current Results, Tennessee ranks sixth for the rainiest state in the Union.  This Spring, the Cumberland River reached its highest level since the 2010 flood.  According to the Federal Emergency Management Agency (FEMA), floods top the list of American natural disasters.  Given the wet year Middle Tennessee has had already and how commonplace flooding and water-related property damage, it is important to know what your current policy covers.

What many survivors of the 2010 flood discovered too late is that in property insurance, not all water damage claims are created equal.  The insurance world views them as either flooding or water damage. Flooding is damage from rising waters and that affect a large area and multiple properties.  Water damage is caused by falling waters such as rain or burst pipes. Most property and business insurance policies don’t include coverage from flooding. The National Flood Insurance Plan offers policies which specifically cover flood damage, and these policies are available for purchase from your local insurance agent.  To find out if your property is at risk for flooding, check out FEMA’s Flood Map Service Center.

Do you know what your policy covers and what it doesn’t?  Most victims of the 2010 Flood thought they did. To the layperson, the differences among types of water-related damages can be confusing.  Another factor was many residents experienced flood damage in areas not formerly considered at risk for flooding. These are the reasons why it is important to listen to the voice of experience.

Johnston & Associates proudly serves the communities of Brentwood, Franklin, Nashville, and Middle Tennessee.  They helped many customers handle their insurance claims resulting from the flood. With two and half decades of experience in the business, commercial, and personal insurance arena, agency founder Scott Johnston can help you determine the coverage you need so that when disaster strikes, you won’t be left with any surprises.  As an independent agent, he can find the company and policy that best suits your needs at prices you can afford. To get a quote for business and property insurance or to review your current policies, contact Scott and his qualified team of professionals.  Let their expertise guide you to comprehensive coverage which, when disaster strikes, won’t leave you high and dry.

Scott is an agent for Erie Insurance®.

Understanding Your BOP

A business owners policy (BOP) combines protection from all major business property and liability risks in one convenient package. Package policies are created for small and mid-sized businesses that face the same type and degree of risk.

A policy that combines property and business liability insurance can cover your business for claims resulting from fire, theft, and other covered disasters, as well as for claims that could arise from business operations involving property damage, bodily injury, or personal and advertising injury.

A BOP can be custom-tailored to meet the unique needs of your business. Our experienced agency can work with you to add additional specialized coverage, such as data breach or business income for off-premises utility services, to your business owners policy.

Do You Need a Business Owners Policy?

Most businesses do need a BOP. Consider a business owners policy if:

• Your business has a physical location. This could be out of your home, an office you rent or own, a store, or any other workplace.
• Your business has assets that could be damaged or stolen. This applies no matter what type of assets they are – equipment, furniture, cash, inventory, digital assets, or customer data.
• A possibility exists of your business being sued. For example, a lawsuit could arise if a customer had a slip and fall accident or was otherwise injured on your premises.

What Is Included in a Business Owners Policy?

A BOP typically includes the following coverage:

• Commercial property insurance: This protects property your business owns, leases, or rents, including buildings, furniture, fixtures, equipment, and inventory. It also provides coverage for loss of accounts receivable and valuable records.
• General liability insurance: Business liability insurance covers your business in case a lawsuit is filed against the business claiming property damage or personal injury. It helps cover the cost of your defense and damages you may be required to pay if the company is found liable.
• Business income insurance: If unexpected events in a covered cause of loss result in suspension of your business operations, business income insurance helps replace the loss of income so you can meet your financial obligations, such as payroll and rent.

Tailoring a BOP to Your Specific Needs

You can add additional coverage to your business owners policy to suit the needs of your company. Our knowledgeable agency can help ensure that your business has the coverage it needs. Popular optional coverage includes:

• Data breach coverage: This added protection is advisable for any business that handles or stores private customer, patient, or employee information. If a breach occurs, data breach coverage can help pay for expenses associated with notifying individuals affected by the breach, credit monitoring services, and public relations damage control. It can also replace lost income if operations close or slow down because of the breach and pay any ransom or extortion expense associated with the threat of a breach.
• Professional liability coverage (Errors and Omissions): If you provide a professional service, you are open to customer or client claims alleging negligent acts, errors, or omissions. Professional liability insurance helps protect your business from this type of claim.

Teenaged Drivers

School has started for 2018 in Brentwood, Franklin, Nashville, and most of Middle Tennessee.  For teens getting their drivers’ licenses or learning permits, taking themselves to school for the first time is an important rite of passage.  For parents of teens, this is also a huge concern and a potential headache.

According to The Centers for Disease Control and Prevention, car crashes are the number one killer of teenagers in America.  Not only are teens more likely to be killed in car crashes, they are more likely to cause car crashes, especially in the 100 days between Memorial Day and Labor Day.  Last year, the American Automobile Association stated, “Over the past five years, more than 1,600 people were killed in crashes involving inexperienced teen drivers during this deadly period.”

The State of Tennessee has procedures in place to make sure and encourage teen drivers to get as much preparation as possible for handling the road safely.  At 16 years of age, Tennessee residents can apply for an Intermediate Drivers License under the State’s Graduated Drivers License Program, provided they’ve held a valid learners’ permit for a minimum of six months, have 50 documented hours of driving experience (10 of which are at night), and successful completion of a road skills test.  (Check with the The Tennessee Department of Safety for more information.)

Of course, one has to also consider the financial expense.  Because of the greater propensity for accidents among teen drivers, the cost of insuring vehicles driven by teenagers is going to be higher, too.

As a general rule, it is cheaper to add a teenaged driver on to the parents’ existing automobile policy than it would be for the teenager to get his own insurance.  However, the expense of adding your teen to your policy is still significant. According to Insurance.com, insuring your teenaged son can cost up to 227% more than insuring just an adult driver.

What are some ways to keep the costs down?  Many insurance carriers offer discounts for teen drivers who show proof of earning good grades in school and having completed approved driving courses.

If you have a teenager who just received a learners permit or license and are concerned about road safety and extra expenses, rest assured that your young adult and you are in good hands at Johnston & Associates.  Scott Johnston is an independent agent who represents multiple car insurance, which means he can find your family the best coverage to meet your needs and your budget. With two and half decades of experience as an insurance agent, he is knowledgeable of finding discounts and ensuring your family can cut costs without cutting corners.

To find out more information on insuring your teen driver or any of our other product offerings, such as commercial or homeowners insurance, call our team of caring and competent insurance professionals at (615) 716-2123 or send us a message through our contact form.

Scott is an agent for Erie Insurance®.

Understanding Your Homeowners Policy

Most people don’t want to think about their homeowners insurance until they need it. Homeowners policies are lengthy, complicated, and written in legalese. Nevertheless, it could pay off to thoroughly understand your homeowners policy and know how it works. Our agency is happy to assist you with not only finding the right homeowners policy, but also with understanding what is in it.

Basics of Homeowners Insurance

Understanding what is and is not covered by your homeowners policy can make all the difference in whether you can rebuild your home and replace your personal belongings after a disaster. Our agency can help you with an annual checkup to ensure you are keeping up with the costs of building and remodeling and inventories of your personal belongings.

When you insure your home, you are insuring two separate things – the structure of your home, and your personal belongings. Your homeowners insurance also covers your legal liability up to policy limits in case you, your family members, or your pets cause harm to others or their property.

Insuring the Structure of Your Home

Homeowners insurance typically covers damage to your home from fire, hail, water (excluding flooding), windstorms, riots, explosions, and other sudden and unexpected losses. You have the option to insure the structure of your home in one of three different ways:

• Replacement cost coverage: In this case, the insurance company will pay you the cost of replacing your damaged property with no deduction for depreciation, up to a maximum dollar amount.
• Extended replacement cost: This type of policy covers up to a certain percentage over the maximum dollar limit, typically 20%. It protects variables, such as a sudden increase in the cost of construction.
• Actual cash value: In this case, the insurance company will pay out the cost to replace your home minus depreciation for age and use. Depending on the age of your home, replacement costs in the marketplace today could far exceed actual cash value.

It would be wise to insure your home for the total amount it would cost at present to rebuild it if it were destroyed. If you don’t have enough insurance, the company may only pay out a portion of the cost of repairing or replacing damaged items.

Insuring Your Personal Belongings

There are two ways to insure your personal belongings under a homeowners insurance policy:

• Replacement cost coverage: This type of coverage pays the dollar amount needed, without deduction for depreciation, to replace damaged personal property with items of like kind and quality.
• Actual cash value: The policyholder receives the replacement value of damaged property minus depreciation. Coverage is for real cash value unless the policy specifies that property is covered for replacement value.

When you are insuring your personal belongings, make an inventory of your belongings, including all available information, such as make and model numbers, serial numbers, purchase price, date of purchase, and present value. Check your policy limits on personal items and consider a “floater” or personal property endorsement that allows you to insure valuable items separately if the limits are too low. Our knowledgeable agency can assist you in finding the coverage you need to fully protect your home and belongings at the best available rates.

A Whole Lotta Shaking Going On

When one thinks of Tennessee, certain things usually jump to the forefront:  Elvis Presley, country music, Christian music, the Bible Belt, and barbecue, to name a few.  However, a less commonly known claim to fame is the state’s history of earthquakes. That’s right.  Earthquakes.

August 17 will mark the 153rd anniversary of one of the worst earthquakes in our state’s history.  Part of a succession of quakes now known as the New Madrid earthquakes, named after the epicenter located in New Madrid, Missouri, the quake had a magnitude of 5.0, and the tremors, though felt the worst in New Madrid and Memphis, could be felt in all the states bordering Tennessee on the west.  The New Madrid earthquakes are known as the worst in history to have struck east of the Mississippi River.

There has been much debate and hype about the possibility of a major quake hitting again, affecting not only Western but Middle Tennessee, and powerful enough to potentially change the landscape of the United States itself.

In 2011, a devastating earthquake hit Christchurch, New Zealand that leveled the majority of the downtown area.  Scores of small businesses were displaced and forced to leave the city altogether. Delays in buildings being rebuilt and insurance companies dragging their feet to pay claims made for an uncertain future for many business owners.  The tragedy took the city by surprise and many years from which to recover. Now, if it took so long to rebuild for a tiny nation where earthquakes are incredibly commonplace, what would it look like for Tennessee where earthquakes are rare?

When starting a business, it’s important to make sure all your bases are covered.  While the wild predictions of another major earthquake in The Volunteer State may come to nothing, part of protecting one’s investment means planning for the unexpected.   Johnston & Associates is an independent insurance agency with a proven track record of fitting businesses in Brentwood, Franklin, and Middle Tennessee with the commercial coverage they need to handle life’s curve balls and worst case scenarios.  Agency founder Scott Johnston offers his commercial clients the unique perspective of being both an insurance agent and a small business owner. He knows the anxiety of fleshing out a dream and trying to prepare for everything that can go wrong. He has his finger on the pulse of the changing business landscape in the Greater Nashville area, and it’s his passion to see his clients plan for problems before they strike, which they will.

A well-known parable talks about two men:  one who built his house upon shifting sand and one who built his house upon rock.  Disaster hit both houses, but only the one built upon rock withstood the storm. Your business deserves a strong foundation that provides protection for the problems you can see coming and the ones you can’t.  Let the experts at Johnston & Associates guide your business coverage onto sure footing.

 Scott is an agent for Erie Insurance®.

Are You Paying Too Much For Your Car Insurance?

Like food, housing, and medical care, car insurance is a necessity of life in the 21st Century. At a bare minimum, nearly every state in the U.S. has enacted mandatory liability car insurance laws for all drivers. On top of that, a new car is a significant investment that most owners want to protect with comprehensive and collision coverage.

Unfortunately, many people today are leaving money on the table in insuring their automobiles or trucks. You may be paying too much for car insurance when you could be saving hundreds of dollars a year. Our independent agency can shop around with multiple insurance companies to help you find the auto insurance coverage you need at the best available rates.

Factors that Can Lower Your Auto Insurance Premiums

There are a number of ways to save money on car insurance. Any of the following factors could make a difference in your rates:

• Your profession could net you lower premiums. Certain professions have lower accident rates than others and are associated with safe drivers. If you are a teacher, a nurse, or an accountant, for example, you may qualify for discounts on your premiums from many insurance companies.
• The amount you drive could lower your premium. Drivers who are on the road a lot have a higher risk of being involved in an accident. To qualify for the best premiums, let your agent know how much you drive. If you work from home, you may be eligible for a lower rate.
• Age and marital status can affect your rates. Older, married drivers are less expensive to insure because they are generally safer drivers who have fewer accidents. Be sure to tell your agent if you get married. Savings for being married are greatest for younger adults, but people over 30 still save money on car insurance when they marry.
• Luxury cars cost more to insure. It stands to reason that premiums are higher on newer, fancier cars that cost more to repair or replace. Insurance companies keep databases on the prices of parts and how much various items cost to repair.
• You can lower your premiums with less insurance or a higher deductible: If you are willing to pay more out of pocket with a higher deductible, you can significantly reduce your car insurance premiums. If you have an older car with low book value, you may consider dropping collision and comprehensive coverage.

Benefits of Shopping for Car Insurance with an Independent Agent

If you want to save money on car insurance, it pays to be proactive and look for potential discounts at least once a year. As you grow older and things change in your life, you may become eligible for discounts that weren’t available to you previously.

Our independent agency is committed to helping you save money, and we shop around to find the best deals available. We get quotes from multiple carriers, as opposed to a State Farm agent, for example, who is only allowed to sell State Farm auto insurance.

Meet Scott Johnston

Mark Cuban once said, “All businesses are personal.”  For Scott Johnston, this was precisely what got him into the insurance business in the first place.

Back in 1991, his grandparents lost everything in the Great Oakland California Fire, a tragedy compounded by a woeful lack of insurance coverage.  To their insurance company, they were just a number. No care was taken to make sure they had the best policy to fit their needs. Prolonged litigation ensued, which eventually lead to a good settlement for his grandparents, but at the cost of precious time and aggravation.  Spurned by the love of his family, Scott decided to make things right by making things personal. 

He began his career as an independent insurance agent, which means he is bound not by loyalty to one company but to personalized service.  His philosophy now is the same as it was then—to make his customers family. Now making his home in Brentwood, Tennessee and serving those in Franklin, Williamson County, and the mid-state region, he works with several different insurers to make sure his clients get the personal and/or commercial coverage and provider that best fits their needs, and his agency has a proven track record of customer satisfaction.

 Scott and his team are best suited to serve your personal and commercial insurance needs for several reasons:

• He’s a father-he understands the precious cargo in your vehicles and home.
• He’s a client, both a commercial and personal one-he’s had to walk through the process of filing claims on his own behalf while navigating the choppy waters of financial devastation.  He’s experienced times of uncertainty and understands the importance of giving his clients a strong safety net for all the moments when life doesn’t go as planned.
• He’s a small business owner-he knows what it’s like to build not only a family and a business, but also a legacy.  He has the unique perspective of being on both sides of the claims and sales desks. He will do all that he can to ensure your investment is protected so that if and when disaster strikes, your tailor-made coverage will do all the heavy lifting as you get to the business of getting back in business.

 After a quarter of a century in the insurance business, Scott has learned through trial, error, and hard work the importance of making tough times as easy as possible through careful planning.  Let him do this for your home and business, too, because he’s never forgotten that everyone who walks through his agency’s doors is someone’s parent, grandparent, spouse, or child, and those we love and the things we cherish deserve the best protection available.

 Scott is an agent for Erie Insurance®.

Bridge Over Troubled Fires

Almost four years ago, Franklin, Tennessee experienced a tragedy, which turned into a traffic and logistical nightmare.  A tanker truck en route to Columbia and carrying a full load of fuel crashed into the Peytonsville Road overpass on Interstate 65, on the south side of Franklin, killing the driver and destroying the bridge.  An innocent life was lost, and the cleanup and rebuilding processes were messy and extensive. The bridge has since reopened, and one can’t tell from looking at the interchange the devastation that occurred, though residents who witnessed the flames will remember for years to come.

Whenever something like this happens, there is almost always a ripple effect in terms of the event’s repercussions.  Obviously, the most serious effect was an oil company employee left this earth in horrific fashion. His family was deprived of a loved one in a violent and unforeseen manner.  Commuters were stuck on the interstate for hours as traffic had to be diverted. Nearby schools were temporarily closed. Millions of dollars were spent by the local, county, and federal government for the hazardous material crews, emergency responders, and construction crews who had to rebuild an overpass that had only just been recently rebuilt.  For the months following, everyone who normally used that exit had to find alternate routes to avoid the construction.

If you are a small business owner, particularly one just starting out, what would a scenario such as this mean for you, your business, and your family?  How would you deal with the human and financial casualties? What if your business had been along a busy interstate exit that, all of a sudden, saw a major decrease in traffic due to unforeseen circumstances, which resulted in a decrease in revenue?

No one wants to think, when starting a business venture, about all the things that can go wrong, nor can any of us predict what those things might be.  Having the right commercial insurance for your business is critical for making sure your investment is protected and you have a safety net not only for yourself, but your employees and those that love them.  You need someone who knows what can and will go wrong.

Johnston & Associates cares about your business and all the lives it touches.  Based in Franklin and serving those in Brentwood, Williamson County, and Middle Tennessee, the staff understands what it means to build a business and will help you craft a tailor-made solution so that all your bases are covered.  Scott Johnston, agency founder and a small business owner himself, is an independent agent representing multiple carriers, which ensures you are getting the coverage that fits your business. Scott brings over two decades of experience in the insurance business to the table.

Starting a business is stressful in and of itself.  Let the capable staff of Johnston & Associates provide you with the commercial coverage you need and do the hard work of “expecting the unexpected.”

Scott is an agent for Erie Insurance®.

How To Keep Your Office Safe From Cyber Crime

Cyber crime is criminal activity carried out on the internet. It can be a crime such as hacking, spamming, or phishing in which a specific device is the object of the crime, or a crime in which a device is used as a tool to commit an offense.

Common cyber crimes include identity theft, unauthorized computer access, online theft of bank information, and online predatory crimes. Generally, cyber crime can be broken down into two basic categories:

• Crimes that target networks or devices. This includes viruses and DoS (denial-of-service) attacks.
• Crimes that use networks for other criminal activities. This type of cyber crime includes fraud, identity theft, phishing, and cyberstalking.

What Business Owners Can Do to Help Keep the Office Safe from Cyber Crime

Cyber crime is a real threat to businesses of any size today. Fortunately, there are steps you can take to help keep your enterprise safe.

Optimize Email Security

Have multiple layers of security to prevent hackers from accessing your company’s database for sensitive information. Rather than fight their way through levels of built-up security, cyber criminals are more likely to give up and turn their attention to more vulnerable systems.

Use State-of-the-Art Protection Software

Ensure that you have the most advanced protection software in place. This includes firewall, malware, global DNS protection, and spam and phishing protection software. Have a knowledgeable IT specialist advise you on the best programs to run.

Adopt Password Policies for the Entire Company

It is a must in any company to have policies in place that dictate how often passwords are changed, where they are kept, and how they are given out. Your password policy should prohibit staff from using the same password for multiple logins and sites. All staff should use two-factor or multi-factor authentication to log in anywhere.

Assess Network Vulnerabilities and Make Needed Adjustments

Have your IT support test your infrastructure and data centers to ensure your cyber defenses are sufficient for the current environment. Managed IT services providers can perform 24/7 monitoring, testing, and analysis and make adjustments as needed to ensure your data is fully protected.

Have Regular Meetings with Staff and IT Specialists

Your staff need to be on the same page with your IT support specialists to protect your company from cyber crime. Have regular meetings in which knowledgeable IT support shares their findings and implementations with the entire staff to help keep cyber security protections and policies working as they should.

Protect Your Company with Cyber Liability Insurance

A cyber liability insurance policy can help protect your company in the event of a data breach in which sensitive customer information is exposed or stolen by cyber criminals. Cyber liability insurance covers a variety of expenses associated with a data breach or cyber crime, including:

• Notification costs
• Defense against claims by state regulators
• Fines and penalties
• Loss resulting from identity theft
• Liability arising from website media content
• Property exposures from business interruption, data loss or destruction, funds transfer loss, computer fraud, and cyber extortion

The cost of cyber liability insurance will depend on various factors, including type of business, number of transactions per year, number of computers or devices, type of information collected, and security measures your company has in place. Our knowledgeable agency can help you protect your company with the right cyber liability insurance at the best available price.

Prepare Your Office For The Summer Heat

Working in a hot office all day can affect employee morale and productivity. It makes sense for business owners to prepare in advance for scorching summer days. The following tips can help you beat the heat and create a more comfortable office environment.

Make Sure Your HVAC System is in Top Running Order

When temperatures are climbing, an efficiently running HVAC system can make all the difference in the comfort of the building’s occupants. Schedule a professional service check and any needed maintenance, including coil cleaning and filter changes.

Block Out the Sun’s Rays

Sun shining through the windows will raise the temperature in your office. Close curtains and window blinds to prevent the sun from heating your offices. Remind employees to leave the windows closed while the AC is running.

Power Down Unused Electronics

Computer systems and machinery that are left running when they are not being used can consume significant amounts of energy and add heat to your office. Power down equipment and electronics not currently in use.

Reduce the Lighting in Your Office

Lighting can raise your energy costs and generate heat in your building. Turn off lights that are not needed to make the office a cooler, more comfortable environment.

Use Cooling Stands for Laptops

Many professionals today use a laptop, both on-the-go and while at work. Laptops get hot with extended use, which is not good for the device and generates heat within the office. Laptop cooling stands can help reduce the problem.

Allow Employees to Work from Home If Possible

Employees who travel to work must spend time in a hot car, bus, or train, which can make them irritable and less productive. When they arrive at the office, they power up computers and equipment and turn on the lights in their area. Allowing employees to work from home helps keep them cool and comfortable and can help lower the cost of cooling your office.

Provide Cool Water

It is easier to become dehydrated when temperatures are soaring. Providing filtered water coolers or refrigerated, bottled water can help keep your employees cool and hydrated and help raise morale and productivity.

Business Insurance to Protect Your Office

An important part of maintaining an office is having the insurance coverage you need. Business insurance can protect your company against losses caused by the company or its employees, and provide protection against third-party lawsuits. Our agency can help you determine the type of insurance coverage you need to minimize potential risks to your business and put an effective business insurance plan in place.