Insurance FAQ

Whether you need to purchase insurance from a rental car company depends on the coverage you already have and the terms of your insurance policy.

Many personal auto insurance policies extend certain coverages, such as liability, collision, and comprehensive coverage, to a temporary rental vehicle used for personal purposes. However, coverage limits, deductibles, exclusions, and eligibility vary by policy and insurance company. Rental vehicles used outside the United States or for business purposes may also be subject to different coverage rules.

Rental car companies typically offer several optional coverages, which may include:

• Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW): Helps cover damage to or theft of the rental vehicle. A waiver is not insurance but an agreement by the rental company to waive certain financial responsibilities.
• Supplemental Liability Protection: Provides additional liability coverage above what may be included with your personal auto policy.
• Personal Accident Insurance: Helps cover medical expenses for you and your passengers following a covered accident.
• Personal Effects Coverage: Helps protect personal belongings that are stolen from or damaged in the rental vehicle, subject to the policy's terms and limits.

Some credit cards also provide rental vehicle benefits when the rental is paid for with the card and certain requirements are met. Coverage, limitations, and exclusions vary by credit card issuer.

Before renting a vehicle, feel free to call us at Cheney to review your personal auto insurance policy, any applicable credit card benefits, and the rental agreement to understand what is and is not covered. If you have questions about your current auto insurance coverage. Let's make sure that while on vacation your are not worried about if you have the right coverage.

In most cases, yes. Maine law requires employers to provide workers' compensation insurance for their employees. Workers' compensation provides benefits for employees who suffer a work-related injury or illness, including medical expenses, lost wages, rehabilitation services, and other benefits as provided by law.

Some business owners may be exempt from the requirement depending on their business structure and whether they have employees. However, exemptions are limited, and the rules vary for sole proprietors, partners, members of limited liability companies (LLCs), corporate officers, and independent contractors.

Even if a business qualifies for an exemption, obtaining workers' compensation coverage may still be required by contracts, project owners, or general contractors before work can begin.

Determining whether workers' compensation insurance is required depends on your specific business structure, the type of work you perform, and whether you have employees. If you're unsure of your requirements, Cheney Insurance can help you understand Maine's workers' compensation laws and determine the appropriate coverage for your business. Cheney Insurance works with various carriers to help protect you and your employees to keep everyone safe and your business moving forward.

Insurance companies generally require all licensed drivers who live in your household to be disclosed because they may have regular or occasional access to your vehicles. Household members are considered part of the overall driving exposure when an insurance company evaluates and prices an auto insurance policy.

Listing all household drivers allows the insurance company to accurately assess risk, determine eligibility, calculate premiums, and apply any available discounts or exclusions in accordance with the policy and underwriting guidelines.

If a licensed household member is not disclosed, it could affect coverage, claims handling, or your policy, depending on the insurance company's rules and the circumstances of a claim. Some insurance companies may require a household driver to be listed as an insured driver, while others may allow an eligible driver to be specifically excluded where permitted by state law and company guidelines.

Requirements vary by insurance company, so if someone moves into or out of your household, becomes a licensed driver, or no longer has access to your vehicles, you should notify your insurance agent so your policy can be updated accordingly.

Businesses of all sizes can be exposed to cyber risks. If your business stores customer information, processes credit card payments, uses email, maintains electronic records, relies on cloud-based software, or conducts business online, it may face financial and operational impacts from a cyber incident.

Cyber insurance is designed to help cover certain expenses resulting from covered cyber events, such as data breaches, ransomware attacks, cyber extortion, business interruption, data recovery, legal defense, regulatory response, notification costs, credit monitoring for affected individuals, and public relations expenses. Coverage varies by insurance company and policy.

Many small businesses assume cybercriminals only target large organizations, but cyber attacks often affect businesses of all sizes. The potential financial impact of a cyber event can include lost income, recovery costs, legal expenses, and damage to a business's reputation.

Whether your business needs cyber insurance depends on the type of information you collect, how your business operates, your contractual requirements, and your overall risk exposure. An insurance agent can help you evaluate your cyber risks and determine whether cyber insurance is appropriate for your business. Call and talk to your Cheney Agent today to learn more about cyber coverage, one click can change your life.

A homeowners insurance policy may provide limited coverage for small boats and certain boating equipment, but it is generally not intended to provide comprehensive protection for most boats.

Coverage, limits, and exclusions vary by insurance company and policy. A homeowner's policy may provide limited protection for damage to a boat caused by certain covered perils and may include limited personal liability coverage in specific situations. However, many homeowners' policies have restrictions based on the boat's size, value, horsepower, or type of watercraft.

A separate boat insurance policy is typically needed to provide broader coverage. Boat insurance can help cover physical damage to the boat, motor, trailer, equipment, liability for bodily injury or property damage, medical payments, uninsured or underinsured boaters, and other coverages, depending on the policy.

If you own a boat, personal watercraft, or other recreational watercraft, it's important to review your homeowners policy and discuss your specific coverage needs with your Cheney insurance agent to understand what protection is provided and whether additional coverage is appropriate. Call one of our Personal Lines agents today to ensure that you are properly coverage while enjoying the great waterways of Maine.

In most cases, no. A landlord's insurance policy is designed to insure the building and the landlord's financial interest in the rental property. It generally does not provide coverage for a tenant's personal belongings.

A renters insurance policy is designed to help protect a tenant's personal property, such as furniture, clothing, electronics, and other belongings, from covered losses like fire, theft, vandalism, and certain types of water damage, subject to the policy's terms, conditions, and exclusions.

Renters insurance may also provide personal liability coverage if you are found legally responsible for bodily injury or property damage to others, as well as additional living expenses if a covered loss makes your rental home or apartment temporarily uninhabitable.

Coverage, limits, deductibles, and exclusions vary by insurance company and policy. If you rent your home or apartment, your Cheney Insurance agent can help you understand what renters' insurance covers and determine the amount of coverage that best fits your needs. Contact one of our agents today to learn how to protect your personal items.

It depends. Filing a claim does not automatically mean your insurance premium will increase. Insurance companies consider a variety of factors when determining premiums, and each company has its own underwriting guidelines.

Factors that may be considered include the type of claim, the amount paid, who was at fault (for auto claims), the frequency of claims, your overall claims history, and the severity of the loss. In addition to individual claims, insurance premiums may also be affected by broader factors such as inflation, increased repair and replacement costs, catastrophic weather events, and overall claims experience within your geographic area.

Some claims may have little or no impact on your premium, while others may result in a premium increase or affect your eligibility for certain discounts at renewal. Coverage, pricing, and underwriting decisions vary by insurance company.

If you're considering filing a claim and have questions about the claims process, your Cheney Insurance agent can help you understand your policy, explain how the claims process works, and answer any questions you may have before you report a loss.

In most cases, your auto insurance policy follows your vehicle, not the driver. This means that if you give someone permission to drive your vehicle, your insurance policy may provide coverage if they are involved in a covered accident, subject to the policy's terms, conditions, limits, and exclusions.

Coverage depends on several factors, including whether the driver had your permission, the type of claim, your policy provisions, and your insurance company's underwriting guidelines. If damages or injuries exceed your policy limits, the driver may also have coverage available through their own auto insurance policy, depending on the circumstances.

Some policies have exclusions or limitations for certain drivers or situations. Additionally, if someone who regularly drives or lives in your household is not listed on your policy, it could affect coverage or claims handling, depending on your insurance company's requirements.

Because coverage varies by insurance company and policy, it's important to understand who is covered under your auto insurance. If you have questions about your policy or who should be listed as a driver, your Cheney Insurance agent can help explain your coverage and answer your questions.

Insurance companies may require an audit because the premium for certain commercial insurance policies is based on estimated business information at the beginning of the policy period. An audit allows the insurance company to compare those estimates with the actual exposures during the policy period.

Depending on the type of policy, an audit may review information such as payroll, sales, subcontractor costs, number of employees, or other factors used to calculate the premium. For example, a workers' compensation policy may be based on estimated payroll, while a general liability policy may be based on sales or payroll.

If the actual exposure is higher than originally estimated, an additional premium may be due. If the actual exposure is lower, the policy may result in a return premium, subject to the policy terms and conditions.

The insurance company may request financial records, payroll reports, tax documents, subcontractor information, certificates of insurance, or other business records to complete the audit. Providing complete and accurate information is important because uninsured subcontractors or amounts classified as payroll may affect the final premium.

An audit is not necessarily an indication that there is a problem with your policy or business. It is a standard process used by insurance companies to determine the final premium based on the actual exposures during the policy period.

If you receive an audit request and have questions about the information being requested, your Cheney Insurance agent can help explain the process and what records may be needed.