Frequently Asked Questions

By working with a Lawton agent, you will have someone who can advise you on how to best cover your risks. Your Lawton agent will also work to reduce costs and inquire about any discounts that may be available to you.

If you have more questions, or would like to speak to agent before quoting, contact us for a free insurance advice appointment.

General

  • Why do I need insurance?
    • Protects your assets.
    • Provides for cost of defense when you are sued.
    • Allows you to purchase such high value items as a car or a home by insuring the collateral on behalf of the financial institution that lent you the money.
    • Provides financial security for your family.
    • Provides for the health care of you and your family.
    • Allows you to remain financially solvent when you’re ill and can’t work.

Auto

  • What factors can affect my auto insurance rate?

    Your insurance costs can increase or decrease depending on your personal situation and assessed level of risk. Factors that may affect your rates include marital status, age, gender, driving history, use of vehicle, and more.

  • Is my vehicle covered against an "Act of God"?

    Yes, if Comprehensive coverage is included in your plan.

Life

  • Who can take out a policy on my life?

    Only someone who has an “insurable interest” can purchase an insurance policy on your life. That means a stranger cannot buy a policy to insure your life. People with an insurable interest generally include members of your immediate family. In some circumstances your employer or business partner might also have an insurable interest.

  • Does my beneficiary have to have an "insurable interest"?

    No. If you buy a policy on your own life, you become the owner of the policy. As the owner, you can name anyone as beneficiary, even a stranger!

Home

  • My basement flooded and all my furniture is ruined. Does my policy cover this?

    Flood coverage is generally excluded on the basic homeowners policy. However, some homeowners policies provide coverage for backup of sewers and drains that cause flooding in your basement. Check with your Lawton agent to see if this coverage is provided and how much it costs.

  • My house and all its contents were completely destroyed by fire. How can I recover this loss through my homeowners policy?

    Whether your policy pays for the replacement or just the actual cash value of items lost, the insurance company is only obligated to pay for personal property that you can show you owned at the time of loss. It is a very good idea to keep an up-to-date inventory in a secure place. It can also be very helpful to take pictures of each room and keep them with your inventory.

Health

  • What is a "preexisting condition"?

    This is normally a physical or mental condition for which medical advice, diagnosis, care or treatment is recommended or received before the effective date of the policy.

  • Do I have to pay a penalty if I don't have health insurance?

    If you don’t have health coverage for all or part of the year, you may have to pay a penalty fee. For 2016, the fee is $695 per person ($347.50 per child) or 2.5% of your household income, whichever is higher.

Farm & Crop

  • Does crop insurance cover crops in the event of natural disasters?

    Producers who purchased crop insurance are covered for all natural causes of loss listed in their policies. Your agent is happy to explain your crop coverage in full detail at any time.

  • Do I really need crop insurance?

    Crop insurance equals risk management. Producers should consider how a policy will work in conjunction with their other risk management strategies to ensure the best possible outcome each crop year. Your agent will work with you to develop a strong risk management strategy that includes the right crop insurance coverage for your needs.

Business

  • When do I need Workman's Comp insurance?

    Workman’s Comp Insurance is one of the few small business insurance policies regulated at the state level. Though where you live determines your insurance obligations, most states require employers to carry the coverage as soon as they hire their first employee. Your agent can help you determine your state’s requirements.

  • What if I don't have small business insurance?

    Though you may not experience a loss or lawsuit as soon as you open your doors for business, the reality is that you don’t know what the future holds. A devastating accident or disaster may be years down the road or just a day away. Also, most states require small businesses to carry certain types of coverage. Your agent can help you choose a coverage plan that suits both your requirements and your budget.

Cyber

  • What is Cyber Liability Insurance?

    Cyber Liability is insurance coverage specifically designed to protect a business or organization from:

    • Liability claims involving the unauthorized release of information for which the organization has a legal obligation to keep private or confidential
    • Liability claims alleging invasion of privacy and/or copyright/trademark violations in a digital, online or social media environment
    • Liability claims alleging failures of computer security that result in deletion/alteration of data, transmission of malicious code, denial of service, etc.
    • Defense costs in State or Federal regulatory proceedings that involve violations of privacy law and,
    • The provision of expert resources and monetary reimbursement to the Insured for the out-of-pocket (1st Party) expenses associated with the appropriate handling of the types of incidents listed above.

    The term “Cyber” implies coverage only for incidents that involve electronic hacking or online activities, when in fact this product is much broader, covering private data and communications in many different formats – paper, digital or otherwise.

  • What does Privacy Liability cover?

    The Privacy Liability insuring agreement in our policy goes beyond providing liability protection for the Insured against the unauthorized release of Personally Identifiable Information (PII), Protected Health Information (PHI), and corporate confidential information like most popular “Data Breach” policies.

    Rather, our policy provides true “Privacy” protection in that the definition of Privacy Breach includes violations of any rights to privacy (e.g., person’s right of publicity or disclosure of private information).

    Because information lost in every data breach may not fit State or Federal-specific definitions of PII or PHI, our policy helps to fill these potentially costly gaps.

  • What does Privacy Regulatory Claims Coverage cover?

    The Privacy Regulatory Claims Coverage insuring agreement provides coverage for both legal defense and the resulting fines/penalties emanating from a regulatory claim made against the Insured, alleging a privacy breach or a violation of a Federal, State, local or foreign statute or regulation with respect to privacy regulations.

  • What does Security Breach Response Coverage cover?

    This 1st Party coverage reimburses an Insured for costs incurred in the event of a security breach of personal, non-public information of their customers or employees.

    Examples include:

    • The hiring of a public relations consultant to help avert or mitigate damage to the Insured’s brand
    • IT forensics, customer notification and 1st Party legal expenses to determine the Insured’s obligations under applicable Privacy Regulations
    • Credit monitoring expenses for affected customers

    Our policy can extend coverage even in instances where there is no legal duty to notify if the Insured feels that doing so will mitigate potential brand damage (such voluntary notification requires prior written consent).

  • What does Security Liability cover?

    The Security Liability insuring agreement provides coverage for the Insured for allegations of a “Security Wrongful Act”, including:

    • The inability of a third-party, who is authorized to do so, to gain access to the Insured’s computer systems
    • The failure to prevent unauthorized access to or use of a computer system, and/or the failure to prevent false communications such as “phishing” that results in corruption, deletion of or damage to electronic data, theft of data and denial of service attacks against websites or computer systems of a third party
    • Protects against liability associated with the Insured’s failure to prevent transmission of malicious code from their computer system to a third party’s computer system
  • What does Multimedia Liability cover?

    The Multimedia Liability insuring agreement provides coverage against allegations that include:

    • Defamation
    • Libel
    • Slander
    • Emotional distress
    • Invasion of the right to privacy
    • Copyright and other forms of intellectual property infringement (patent excluded) in the course of the Insured’s communication of media content in electronic (website, social media, etc.) or non-electronic forms
  • What does Cyber Extortion cover?

    The Cyber Extortion insuring agreement provides:

    • Expense and payments to a harmful third party to avert potential damage threatened against the Insured such as the introduction of malicious code
    • System interruption
    • Data corruption or destruction or dissemination of personal or confidential corporate information
  • What does Business Income and Digital Asset Restoration cover?

    The Business Income and Digital Asset Restoration insuring agreement provides for lost earnings and expenses incurred because of a security compromise that leads to the failure or disruption of a computer system, or, an authorized third-party’s inability to access a computer system. Restoration costs to restore or recreate digital (not hardware) assets to their pre-loss state are provided for as well.

    What’s more, the definition of Computer System is broadened to include not only systems under the Insured’s direct control, but also systems under the control of a Service Provider with whom the Insured contracts to hold or process their digital assets.

  • What is “PCI-DSS Assessment” coverage?

    The Payment Card Industry Data Security Standard (PCI-DSS) was established in 2006 through a collaboration of the major credit card brands as a means of bringing standardized security best practices for the secure processing of credit card transactions.

    Merchants and service providers must adhere to certain goals and requirements in order to be “PCI Compliant,” and under specific agreements, may subject an Insured to an “assessment” for breach of such terms.

    The Cyber and Privacy Liability Policy responds to PCI assessments as well as claims expenses in the wake of a breach involving cardholder information.

  • Isn’t this already covered under most business insurance plans?

    The short answer is “No”.

    While liability coverage for data breach and privacy claims has been found in limited instances through General Liability, Commercial Crime and some D&O policies, these forms were not intended to respond to the modern threats posed in today’s 24/7 information environment.

    Where coverage has been afforded in the past, carriers (and the ISO) are taking great measures to include exclusionary language in form updates that make clear their intentions of not covering these threats.

    Additionally, even if coverage can be found in rare instances through other policies, they lack the expert resources and critical 1st Party coverages that help mitigate the financial, operational and reputational damages a data breach can inflict on an organization.

  • If e-commerce functions such as payment processing or data storage are outsourced, is this coverage still needed?

    The responsibility to notify customers of a data breach or legal liabilities associated with protecting customer data, remain the responsibility of the Insured.

    Generally speaking, business relationships exist between Insureds and their customers, not their customers and the back-office vendors the Insured uses to assist them in their operations.