Basics of 'Lemon Law' ~ INSURANCE

Insurance for Your Business

LIABILITY INSURANCE

This is probably the most important element of your insurance program. Liability insurance provides protection from potential
losses resulting from injury or damage to others or their property. Just recall some of the big cash awards you have read about that have resulted from lawsuits concerning liability of one kind or another and you will understand the importance of this insurance. Your insurance agent can describe the various types of liability insurance coverage that are available. If you will end up with a comprehensive general policy, make certain that the general policy does not include items you don't need. Pay for only the insurance you need. For example, your business may not need product liability insurance.

Do not confuse business liability coverage with your personal liability coverage, both of which you need. Your personal coverage will not cover a business-generated liability. Check to be certain.

Compare the costs of different levels of coverage. In some cases a $2 million policy costs only slightly more than a $1 million policy. This economy of scale is true with most forms of insurance coverage. That is, after a certain value, additional insurance becomes very economical.

KEY PERSON INSURANCE

This type of insurance is particularly important for the sole proprietorship or partnership where the loss of one person through illness, accident, or death may render the business inoperative or severely limit its operations. This insurance, although not inexpensive, can provide protection for this situation. Key person insurance might also be necessary for others involved in your business.

SGC was a small firm run by three partners, a software programmer, marketer, and a general manager. Their product was a complex computer program used by aerospace firms. Al, the programmer, was involved in a severe automobile accident, became totally disabled, and SGC lost their programming capability. The problem was that the computer program written by Al was essentially the company's sole product. Modifications to accommodate the customer became impossible and the time to bring another programmer up to speed was excessive. SGC lost considerable business as a result of this situation. These losses could have been offset by key person insurance.

DISABILITY INSURANCE

You, as a business owner, should be covered by disability insurance whether or not you decide on key person insurance. This insurance, along with business-interruption insurance, described below, will help ensure your business will continue to operate in the unfortunate situation where you are unable to work. Your disability insurance policy needs to provide satisfactory coverage. Particular attention should be paid to the definition of "disability," delay time until payments start, when coverage terminates, and adjustments for inflation.

FIRE INSURANCE

Fire insurance, like all insurance is complicated and you should understand what IS and IS NOT covered. For example, a typical fire insurance policy covers the loss of contents but does not cover your losses from the fact that you may be out of business for 2-months while your facility is rebuilt. Fire insurance is mandatory whether you're working out of a home office or you have a separate facility. You should discuss a comprehensive policy with your agent. Take the time to understand the details.

Saturday 16 July 2011

Basics of 'Lemon Law'

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Ahmed Bilal

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What is Lemon Law

A "Lemon Law" is a state law that protects purchasers of motor vehicles. Lemon Laws define the rights and remedies that a consumer has if he has purchased a defective motor vehicle. In certain states, the Lemon Law only protects consumers who have purchased brand new personal use cars, trucks, vans and SUV's, while in other states, the Lemon Law protection extends to used vehicles, motorcycles, recreational vehicles (RV's) and more.

Why 'Lemon' Law?

A "Lemon" is term that is used to reference a defective product. State Lemon Laws set forth the particular terms that define what a lemon vehicle is, but there are general parameters that are found in all states' Lemon Laws.

Basis of Lemon Law

Generally, a vehicle is considered a Lemon if it exhibits defects or non-conformities that substantially impair the use, value or safety of the vehicle. As stated, that means that the defect or non-conformity must be serious in nature. Examples of such include Transmission, Engine, Braking, Steering, Electrical and other assorted problems. Please know that this is not an exhaustive list. Once your vehicle suffers such a defect, all state Lemon Laws require that the Manufacturer must be given a reasonable opportunity to repair the problems. This number varies from two (2) to five (5) depending upon your state Lemon Law. If the dealer cannot repair the defect after the appropriate number of attempts, your vehicle may be considered a Lemon.

Benefits of Lemon Law

Most State Lemon Law statutes provide that the consumer is entitled to choose either a free replacement vehicle or a full refund of the purchase price of the vehicle.

A free replacement vehicle means obtaining a vehicle which is substantially identical to the defective vehicle, of like make, model and options, at no additional cost.
A full refund of the purchase price includes obtaining all funds that were used to purchase the vehicle, including any down payment, trade-in equity, financing payments (including interest) taxes, title fees and documents costs.
In most states, the consumer is also entitled to an award of reasonable Attorney Fees for prosecution of the Lemon claim.

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Saturday 16 July 2011

Basics of 'Lemon Law'

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