ESi Insurance FAQs

FARMERS INSURANCE FAQ

What is Split-Dollar Life Insurance?

It is a life insurance policy that affects the permanent life insurance holder in which an employer and employee execute a written agreement that states how the premium cost, cash value and death benefit of the insured will be shared. 

What is LLC Cross-Purchase Agreement?

A cross-purchase refers to the process which permits shareholders and the company’s partners to purchase the interest and shares of a partner that dies, is incapacitated, or retires. When it is purchased by an LLC (Limited Liability Company) it is referred to as an LLC cross-purchase. 

What is Disability income insurance?

It is an insurance policy that provides supplementary income to the insured who cannot work due to disability. It is often applied to employees and the policy also varies. It can cover disability, rehabilitation and the short period after recovery. 

What is Entity-Purchase Insurance?

It is the purchasing of a life insurance policy of owners in the amount that is equal to their interest that each owner holds. The policy determines what happens to the shares and interests of company owners. 

What is Entity-Purchase Funding?

Entity-purchase funding is the means of funding an entity-purchase agreement. It is the life insurance that is purchased by the business on each of the owner’s life. 

What is the Entity-Purchase Agreement?

It is a document that is best described as a business succession plan used by companies that have more than one owner. 

What is the Buy-Sell Agreement?

It is a legally binding agreement between the co-owners of a business. This agreement is what legally determines what happens when a co-owner of the business dies, is forced to leave the business, or decides to leave the business. It is also called a buyout agreement.

What is Buy-Sell Insurance?

It is the life insurance policy purchased by the company or individual co-owner on other co-owners life so that in the event of death, they will receive the death benefit on the co-owner.

What is Buy-Sell Funding?

Buy-sell funding is the way by which buy-sell agreements are funded. Common ways of funding a buy-sell agreement are life insurance, sinking fund and borrowing.

What is Lifetime Transfer Buyout Insurance?

It refers to a situation whereby a life insurance holder sells his life insurance policy for a lump sum cash payment.

What is Cross-Purchase Insurance?

Cross-Purchase insurance is an insurance policy that allows the partners and shareholders of a business to purchase the shares and interest from their families of a partner that dies, becomes incapacitated. Each owner buys a life insurance policy on the other and the amount that they are often equal to their respective shares of the net worth of the business.

What is Cross-Purchase Funding?

It is the means through which cross-purchase insurance is funded. Each member buys the life insurance policy of every member to pay for this insurance. 

What is an Executive Bonus?

An executive bonus is a legal way in which companies and business owners can provide additional benefits to executives of their choice. It can be done using tax deductibles according to section (162). It is an employee retention strategy that is used to keep high performing employees. 

What is Debt Retirement?

It is the repayment of debt. It is often done through the sinking fund method which saves for the debt repayment period. 

What is Guarantor Insurance?

Guarantor insurance refers to third party insurance which ensures that if the insured is unable to pay or meet up with the financial requirement, they will be responsible for the payment. 

What is Charitable Gift Insurance?

Charitable Gift insurance is a life insurance policy that allows those insured to contribute to charity as beneficiaries of their life insurance

What is farm flood insurance coverage?

Farm flood insurance is a policy that protects farm owners from losses caused by floods. Farm flood insurance is important for farmers especially those whose farms are located in flood-prone areas.

What is Delaware farm insurance?

Delaware farm insurance comprises a variety of insurance services that can enable farmers to avoid undue financial losses due to certain incidents and circumstances. It enables farmers to go about their business without worry or fear that their investments in farming can be unexpectedly ruined.

Delaware farm insurance covers the insurance needs of farmers in Delaware and other service areas covered by ESI.

FUNDING

What is key person insurance?

It is the life insurance policy bought on top executives in a corporation. This will help secure the future of the company f the top executives die or become unable to work. 

What is Buy-Out Insurance?

Buy-out insurance refers to the contract between the insured, a member and the insurance company which requires that the GMP is paid out at retirement. The insurance company is also expected to make up for any shortfall when the time comes. 

What is Guarantor Protection Insurance?

This is the insurance policy which ensures that the guarantee for a property is covered in case of any breach in the guarantee. It helps to avoid pitfalls and delays in projects so it covers the guarantor for many years. 

What is Equitable Distribution Insurance?

When divorcing couples fail to arrive at a property settlement, it takes equitable distribution insurance to allow for a sharing of the property as marital property between the parties involved. 

PROPERTY INSURANCE TERMS

What is equipment breakdown insurance policy and coverage?

Farmers, construction companies, and all those that make use of equipment in their work need equipment breakdown insurance to ensure that their work does not suffer undue interruption and delay due to equipment breakdown.

Equipment breakdown insurance does not cover heavy-duty equipment and industry machines alone. It makes provision for a mechanical or electrical breakdown of all equipment such as computers and photocopiers.

In the event of loss or damage to the equipment or loss, the insurance company compensates the owners financially for the expenses made for repairs and replacement of the insured equipment.

 

What is General Liability Insurance?

It is an insurance policy also known as commercial liability insurance which protects the business from being sued in the event of damage to property or bodily injury incurred. 

What is Cyber Liability Insurance?

Cyber liability insurance provides coverage for your business from liabilities due to a breach of information such as account numbers, credit card numbers, and sensitive health information among others. It is a protection against liabilities due to cyber risks. 

What is Replacement Cost?

The amount that has to be paid to replace an asset in the present at its current worth is referred to as the replacement cost. Repayment is an insurance industry term often used during compensation. 

What is Actual Cash Value?

It is the amount that is arrived at that is equal to the replacement cost after the depreciation deduction. It is the actual cash value that is taking into account by insurance service providers. 

What is Employment Protection?

Employment protection is an insurance policy that provides coverage for companies against claims by their workers that their employee rights have been violated. The insurance policy will protect the company from financial losses as a result of such claims. 

What is Liability Insurance?

It is also a form of general liability insurance that minimizes financial expenses due to individual or business liabilities. This applies in case of libel, damage to a third party, or injury caused by the insured. 

What is Equipment Breakdown?

Damage caused by internal forces such as operator errors, mechanical breakdown, motor burnouts and unusually high currents from electricity can cause equipment breakdown. Equipment breakdown is an insurance policy that covers losses as a result of the breakdown of your equipment. 

What is Pollution Liability?

Companies can incur liabilities due to their activities which causes pollution. It is pollution insurance that provides coverage for the company for cleanup, injuries caused to third parties as a result of pollution and other liabilities. 

What is Business Income and Extra Expense?

When businesses shut down temporarily due to fire incident or unforeseen circumstances, it leads to losses. Business Income and Extra Expenses insurance is an insurance policy that compensates the business by replacing income and expenses that are covered by the policy.  

What is Data Compromise Insurance?

It is an insurance policy that reimburses business after a data breach incident. Data-breach can make companies suffer losses because of the need to reorganize data and use new software. The policy can be obtained along with business insurance even though they are different.  

What is Care Custody and Control Coverage?

Liability insurance allows for third party compensation. However, when people claim that a third party’s property is theirs just to gain compensation, they are violating the care, custody and control coverage terms. An insured individual cannot claim compensation on a damaged property not owned by them. 

What is Network Security Liability?

Network Security Liability protects the business from losses due to failure to secure personal security information of clients. It is synonymous with cyber liability insurance. 

What is Installation Tools and Equipment Coverage?

This insurance policy provides coverage for tools and equipment in event of theft, vandalism, or damage excluding wear and tear of equipment and tools. This will ensure that you deliver on projects without wanton delays. 

What is Contractors Coverage(s)?

Contractors coverage protects all the materials and equipment used by the contractor from a wide range of risks. The contractor is compensated in case of damage to the materials, theft and other risks. It is similar to tools and equipment insurance. 

What is Property Coverage?

Property coverage is an insurance policy that protects the property of the insured from damage, theft and loss. It is broad and it is also known as property insurance. The property owner gets compensated in the event of loss or damage. 

What is Flood Coverage?

Flood coverage is an insurance policy that compensates the insured against losses and damage to property directly due to flood. 

What is Hired Auto Coverage?

It is an insurance policy that provides liability coverage for vehicles that you lease, borrow, rent, or hire. This policy ensures that you are compensated in case of damage to the vehicle.  

What is Named Non-Owned Coverage?

This policy provides auto liability insurance for persons that use borrowed or rented vehicles. This will make them entitled to compensation in the event of damage or loss 

What is Comprehensive and Collision?

Comprehensive insurance is a policy that covers damage to cars due to accidents, theft, vandalism, fire, or loss. It compensates the insured owners if a loss occurs but it does not cover collision.  

Collision insurance policy is an aspect of motor insurance that covers accidents involving a listed collision between the insured vehicle and another vehicle. 

What is Personal Injury Coverage?

This insurance policy covers the medical expenses of the injured insured person whether they are at fault or not. It is also called Personal Injury Protection (PIP). 

It is also a broad insurance policy that can cover lost wages incurred while receiving medical attention. 

 

What is Umbrella Insurance?

This is a type of liability insurance that makes provision for extra coverage that is not covered by the regular property insurance, auto insurance among others. 

What is a Personal Umbrella Insurance?

It is the policy that covers extra areas not covered by personal property insurance. It makes room for excess coverage for personal liability insurance policies. 

What is a Commercial Umbrella Insurance?

Commercial Umbrella insurance is complimentary because it makes coverage provision when other liability insurance has reached its limits. This ensures that when the liability policy of business is exhausted, they will still be protected from losses. 

What is Workers Compensation Insurance?

This is an insurance policy for workers that are injured while working. It is also known as workers comp. The policy covers the medical bills so long as they will lose the right to sue their employers. 

What is Inland Marine?

Inland Marine Insurance is an insurance policy that provides coverage for materials, equipment and products while they are transported on land. The insured owner will be compensated in case of loss, damage, fire, or theft. 

What is burglary insurance coverage for business?

Burglary attacks are often unforeseen and they involve breaking into business premises to loot properties or steal valuables. Since they are unforeseen, they can hurt your business. The financial burden of replacement of the lost items will be on the business.

That is why burglary insurance coverage for business is important. In the event of a burglary attack on your business, the policy will ensure your compensation.

What is property damage insurance coverage?

The property damage insurance policy at ESi provides coverage for your properties; clothes, machinery, appliances. It ensures that you are compensated if a loss occurs. Damages done to your home and the contents in it will also be compensated by this policy as long as they are listed in your policy.

What damaged property insurance policy and coverage?

Damaged property insurance policy provides coverage for other properties damaged by the car of an insured person. When such damages occur, it raises a lot of financial risks which the damaged property insurance covers.

Apart from bodily injuries, cars can also cause damage to other vehicles, and properties like fences, houses, and businesses. When car owners are responsible for such accidents, they are required to pay financial compensation to those affected to facilitate repair.

What is Inland Marine Insurance?

Inland Marine Insurance is an insurance policy that provides coverage for materials, equipment, and products while they are transported on land. The insured owner will be compensated in case of loss, damage, fire, or theft.

LIFE INSURANCE

What is universal life insurance policy and coverage?

Universal life insurance policy like all other life insurance policies provides a lump sum as compensation to the beneficiary of an insured person when they are no more. It is unique for having a special cash value package.

 

This involves the splitting of your premium into two parts designed to make you enjoy some value while alive and still have death benefit paid to your beneficiary when you are no more.

What is Term life insurance policy and coverage?

Unlike whole life insurance policies, term life insurance policies provide life insurance coverage for s specific period of time. Term life insurance policy provides life insurance coverage for a period that is limited when compared to whole life insurance and universal insurance policies.

What is Whole life insurance policy and coverage?

Whole Life insurance policy is made to remain in force throughout the lifetime of the insured person. The insured continues to meet up with the premium demands until they are no more. Upon their demise, the insurance company will compensate its beneficiaries with a lump sum courtesy of the insured life insurance policy.

 

CAR INSURANCE

What is car collision insurance policy and coverage?

Car collision insurance covers strictly collision-related accidents involving the car that is insured. Accidents due to collision can cause greater damage to our car because of the force that is involved with the moving cars collide. It can cause a lot of damage to your car.

 

What is comprehensive car insurance policy and coverage?

All car insurance policies cover one unique aspect of car insurance or the other but a comprehensive car insurance policy provides all those coverage in a single policy.

It does this by making room for those areas that other insurance policies cannot cover due to the nature of such policies. With the exception of a collision, it takes the financial responsibility of payments for all covered accidents and incidents.

 

HOME INSURANCE

What is bodily injury insurance for home?

Bodily injury insurance for home provides insurance coverage for injuries that you have while at home. A fire incident, home accident, and weather hazards can lead to bodily injuries.

Many factors constitute bodily injuries and they include physical conditions like pain, illness, serious bodily injuries, and emotional distress resulting from such bodily injuries.

What is dwelling insurance policy and coverage?

Dwelling insurance is a home insurance policy that provides coverage for damaged buildings. Certain hazards can result in damages to the structure of our home.

A home provides security not just for you but for your properties too. Such damages to the structure of your building can cause further damage to properties and more financial implication.

 

What is home insurance?

Home insurance provides unique insurance coverage for the properties in your home. As a form of property insurance, it offers compensation in case of any damage to property or structures in your home. Home insurance is borne out of the untold risks involved in having a home.

It covers damages to the house and properties of the insured based on the policy. Damages that occur to assets in the house tend to be serious because a home is a necessity and vital properties can be kept at home.

NATURAL INSURANCE

What is earthquake insurance policy and coverage?

This policy is designed to compensate you financially for the properties lost and damaged as a result of an earthquake. Being a natural disaster the safety of life is more important than anything else in the event of an earthquake.  Properties left behind will be badly damaged by the earthquake.

These properties are important for our daily living and comfort and getting them back by buying new ones is a big financial risk.

That is why the earthquake insurance policy and coverage are important. If you have this insurance policy, you will be adequately compensated for the financial implications of losses caused by the earthquake.

What is natural disaster insurance policy and coverage?

Natural disaster insurance provides insurance coverage against disasters like earthquakes, floods, fire, and other weather hazards. Unlike manmade disasters, natural disasters are not avoidable. The insured will be compensated in the event of a natural disaster.

RENTERS INSURANCE

What renter’s liability insurance policy and coverage?

Tenants can also be held liable for an injury or damage is done to other persons or their properties in the tenants’ home. Renters’ liability insurance is a policy that protects tenants against unplanned financial expenses due to liabilities.

It may not be a deliberate act of responsibility but they can incur serious legal fines for the damage done to the property of another person in their home.

Renters’ liability insurance does not cover liabilities outside the home.

 

What is renters insurance?

Renters insurance which is also called the tenants’ insurance is an insurance policy for those that are living in homes that are not theirs. By implication, it does not cover the dwelling or structure of the home.

However, if the tenant put up a structure in the home, it can be covered by this renter’s insurance policy.

What is additional living expenses insurance policy and coverage?

Additional living expenses insurance under the renter insurance policy is designed to provide insurance coverage for the additional cost of living of the insured in the event that they are displaced from their place of residence. Apart from renters, the policy also applies to homeowners, condominium owners.

ASSET INSURANCE

What is asset insurance?

When an asset is insured with an insurance company, the owner will be compensated in the event of damage or loss by the insurance company. ESI offers asset insurance policies to clients in view of its great importance to preventing unplanned expenses due to loss or damage of assets.

Assets refer to resources or properties that have economic value to individuals, companies, or states and it has a high financial risk if damage or loss occurs.

What is fire insurance coverage for business?

Fire insurance coverage for business provides insurance protection in the event of a fire. Fire can destroy products, goods, machinery, and damage the building structures.

The fire insurance coverage for business offers compensation when a business is affected by a fire disaster.

 

BUSINESS INSURANCE

What is burglary insurance coverage for business?

Burglary attacks are often unforeseen and they involve breaking into business premises to loot properties or steal valuables. Since they are unforeseen, they can hurt your business. The financial burden of replacement of the lost items will be on the business.

That is why burglary insurance coverage for business is important. In the event of a burglary attack on your business, the policy will ensure your compensation.

What is small business insurance?

Small business insurance provides financial compensation for business losses in covered areas. Small businesses go through a lot of challenges so they need small business insurance to ensure that in the event of a sudden loss, damage to their property, or disaster they can be compensated.

Your small business insurance also covers threats coming from liabilities which can come with some legal and financial implications. All small businesses need this policy to ensure that business is not interrupted or suffer unnecessary losses as a result of an unforeseen situation.

What is Corporate Buy-Sell?

Corporate buy-sell is a contract that binds both buy and sell at a given price in a company. In the event of certain incidents, those that it binds must buy and sell at the given price.

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