Frequently Asked Questions
Below are answers to commonly asked questions, but if we still haven't answered your question, feel free to call us!
Below are answers to commonly asked questions, but if we still haven't answered your question, feel free to call us!
About SMC
What is SMC Business Councils?
SMC Business Councils is a trade association that provides small to medium size business owners in Pennsylvania the resources and tools to better manage their business. It acts as a leading forum for Pennsylvania business owners and managers to come together and share experiences and knowledge to help their businesses grow. Members of SMC Business Councils include businesses in the service, manufacturing and commercial sectors.
What is the relationship between SMC Business Councils and SMC Insurance Agency?
SMC Insurance Agency is a subsidiary of SMC Business Councils. SMC Insurance Agency began as a service to the members of SMC Business Councils. It has grown to become a full service insurance agency, providing a comprehensive range of business insurance.
Do I have to be a member of SMC Business Councils to receive SMC Insurance Agency services?
Some of our clients are members of SMC Business Councils, but others are not. Membership is recommended to take advantage of our insurance services. If you would like to become a member, contact SMC Business Councils.
What type of insurance does SMC Insurance Agency provide?
With our business expertise, we offer a comprehensive array of insurance options for small to medium size businesses, such as: group health, disability, workers compensation, property and casualty, group life, business auto, and more.
How much does it cost for SMC Insurance Agency to review my policy?
To help determine whether your current policies adequately meet your needs and ensure you’re not paying for more than you need, we offer a no-cost, no-obligation review by one of our experts.
What insurance companies does SMC Insurance Agency work with?
SMC Insurance Agency is not beholden to any one insurance company. We work with all of the best carriers in the marketplace to meet your needs. Please call us for more information.
About Insurance
What should I look for in an agent?
A good agent will:
What information do I need to get a quote?
We will need an employee census, which includes the gender and date of birth for each employee and their level of coverage (ex: individual, parent/child, husband/wife, or family). We will also need your company’s inception date and a requested start date for coverage.
Many of my employees are insured elsewhere. How will this impact my group health plan?
In order to qualify for group coverage, certain guidelines need to be met for each carrier. Our insurance experts are well-versed in carrier guidelines, and can recommend the best solution for your business.
Can I purchase and offer individual plans to my employees?
There are a number of differences between individual plans and group plans. Individual plans are subject to individual assessment of eligibility and an employee may not be eligible for coverage. We always try to meet the specific needs of each business. If this is the best option for your business, we can provide it.
Do I need both Group Health insurance and Workers Compensation insurance?
Group Health is optional while Workers Compensation is required.
Do all companies charge the same premiums for Workers Compensation?
Many variables go into the development of a final Workers Compensation policy premium. If you are not taking advantage of those variables, you are probably paying too much for your Workers Compensation policy. Call today for a consultation and a comparison quotation.
What is the difference between Acual Cash Value (ACV) and Replacement Cost (RC)?
ACV is the cost to replace a building or property with like materials and intended use, less depreciation. Most Business Auto policies cover an auto on an ACV basis and will pay the amount of the value of that vehicle at the time of loss. If you suffer a loss to a building, the loss will be paid with the age and condition factored into the payment. If you suffer a loss to used office furniture, you may prefer to be paid for new office furniture (RC) than to be compensated at the used furniture rate (ACV). Please refer to your policy for the exact terms of your policy.
What is the difference between Comprehensive and Collision coverage on a Business Auto Policy?
Basically, Collision covers your vehicle in the event of a collision with another vehicle or object. Comprehensive coverage responds to losses of glass breakage, fire, flood, theft & contact with an animal.
As a retailer, should I worry about Product Liability?
In these litigious times, a retailer should worry about the Product Liability limit on their policy. Product Liability is usually included in General Liability unless excluded.
As a small business, do I really need to have insurance?
There are risks in starting a new business. Why risk losing everything you have built by going uninsured. Property and Liability premiums have become very competitive in the recent years. You may be surprised at the protection you can purchase for little premium. Don’t gamble with your investment, call us today.
I just started my business. Do I need insurance immediately?
Yes, because there is a chance that you could suffer a loss on the first day of business. If you have employees, you are required by law to have Workers Compensation insurance.
I don’t have any major business assets. Why do I need insurance?
Every business has some type of exposure. Your business needs to be protected from loss, damage and liability.
Is insurance coverage different for different businesses?
It can be, and this is why we are here to help you figure out which insurance solution makes the most sense for your business.
I think it is time to offer my employees some benefits. What do I need to know?
As a business owner, can I do anything to lower my insurance premiums?
Insurance premiums are always based on the risks involved. We will assess your specific situation and negotiate with the insurance providers to ensure you’re getting the best possible rates for your business.
Who keeps an eye on the insurance companies?
Insurance companies are regulated. Every state has a special department that monitors each insurance company operating in that state. Pennsylvania is regulated by the Pennsylvania Insurance Department.
Common Insurance Terms
Below are definitions of terms often used by agents or insurance companies.
Co-insurance
The health insurance company and the employee share the financial responsibility of a claim. For example, with 70% co-insurance, the insurance company would pay 70% of the total claim and the employee would pay 30%.
Co-payment
It is similar to co-insurance, but it refers to a flat dollar amount that the employee must pay. For example, if a plan includes a $25 co-payment for an office visit, the employee must pay the first $25 for the office visit. The insurance company will pay the remaining amount.
Deductible
This is the dollar amount that each person covered by insurance must pay towards expenses before the insurance company will start payment. This payment occurs each year – either based on your policy renewal date or calendar year. For example, if an employee has a $2,000 deductible, they must pay the $2,000 before the insurance company will pay for any expenses.
Maximum out-of-pocket
This is the maximum amount of money that an individual or family must pay in deductibles and co-insurance for all covered expenses.
Pre-existing condition
This is a medical condition that a person had before obtaining health insurance. If a person switches to a new health plan, coverage may be delayed or denied depending on the insurance provider.