How to Avoid a Financial Disaster

Tornadoes. Grease fires. Cyberattacks. Lawsuits from spilled drinks or undercooked steaks. If you’re running a restaurant in Oklahoma, you’re not just serving up comfort food—you’re managing risks most people can’t see from the dining room. From Edmond food trucks to Tulsa wine bars, restaurants across our state are dealing with higher premiums, pickier insurance carriers, and rising weather-related claims. And if you’re not covered properly, one bad day could eat your whole month’s profit. Let’s break down what coverage really costs, why it’s getting harder to get, and how to protect your business before something hits the fan (or the fryer). Top Risks for Oklahoma Restaurants Running a restaurant is already a high-wire act. Add Oklahoma’s wild weather, liquor laws, and staffing challenges, and it becomes a full-blown juggling show—with knives.

Running a restaurant in Oklahoma isn’t for the faint of heart. Between unpredictable weather, tight labor markets, and the growing list of legal risks, it’s a daily balancing act. And while good food and loyal customers keep your doors open, smart insurance is what keeps them from closing unexpectedly. Did you know Oklahoma averages more than 60 tornadoes a year? That’s from the NOAA Storm Prediction Center. And that’s just one of the many reasons your coverage needs to do more than check a box — it needs to be built around real risks. Whether you're serving up burgers in Edmond or craft cocktails in Midtown OKC, here’s a breakdown of the essential insurance coverages every restaurant in our state should consider for 2025. Oklahoma-Specific Restaurant Risks at a Glance 

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Oklahoma contractors must be insured and bonded in order to maintain legal compliance, financial protection, and client trust. Oklahoma Industry Board requires licensed contractors to carry certain insurance policies and bonds. Besides these essentials, you can also protect your business and reputation with additional types of coverage. Contractors in Oklahoma are required to carry insurance For contractors to operate legally and protect their clients, employees, and business assets, Oklahoma law requires them to carry specific types of insurance. Oklahoma Industry Board mandates the following insurance policies: 1 . Liability insurance All contractors in Oklahoma must carry general liability insurance. The policy covers injuries, property damage, and legal expenses resulting from accidents on the job. In the event that contractors cause harm to someone or damage property during the course of their work, this policy covers them. 2. Compensation insurance for workers Workers' compensation insurance must be carried by contractors with employees. If an employee is injured or ill at work, this insurance will cover medical benefits and wage replacement. Fines and legal consequences can result from failing to carry workers' compensation insurance. 3. Insurance for vehicles Automobile insurance is required if you or your employees use vehicles for business purposes, such as transporting materials. You must have this coverage to protect your vehicles from accidents and to ensure that any third-party property damage or injury is covered. Contractors may wish to carry additional insurance To ensure comprehensive coverage, licensed contractors should consider several additional types of insurance policies in addition to those mandated by the Oklahoma Industry Board. Included are: 1. Professional Liability Insurance Consultants, engineers, and designers need errors and omissions insurance to protect themselves. In the event of errors, omissions, or professional negligence, your work is protected. 2. Insurance for commercial property In order to protect your business assets, such as office space, tools, equipment, and inventory, you must purchase commercial property insurance. If your property is damaged by fire, theft, or natural disaster, you will be covered. 3. Insurance for builders' risks Builder's risk insurance covers construction projects in progress. Damage to the structure during construction caused by fire, vandalism, or weather-related events is covered by this policy. 4. Insurance for equipment and tools Contractors need coverage in case their tools and equipment are damaged, lost, or stolen. In the event of an unexpected event, equipment and tool insurance will minimize downtime and financial loss. Oklahoma Contractors' Mandatory Bonds Oklahoma contractors are often required to have bonds in addition to insurance. These bonds may either be mandatory by the State of Oklahoma or contractor’s client and contract, or both. Bonds ensure compliance with state regulations and contractual obligations by the contractor and compliance. Type of Bonds: 1. Contractor's license bond A contractor's license bond is required by the state as part of the licensing process. The bond ensures that contractors abide by Oklahoma's building codes, regulations, and laws. When a contractor fails to meet their obligations or causes harm in the course of their work, it provides a safeguard for clients. 2. Bond for performance Performance bonds are often required from contractors for large and public projects. In addition, it ensures the contractor will complete the work on time and in accordance with the contract. As a result of this bond, the client is guaranteed compensation if the contractor fails to meet these requirements. 3. Payment Bond A payment bond ensures that subcontractors and suppliers are paid for their work on public projects. This prevents contractors from being held liable for any unpaid bills or liens placed against the project due to unpaid debts. 4. Supply Bond A supply bond ensures that contractors will provide all necessary materials for a project. In the event that the contractor fails to deliver the necessary supplies or fails to meet their contractual obligations, this bond protects owners and developers. 5. Local Bonds Ensure the contractor abides by local regulations and obtains all necessary permits. 6. Bid Bonds A bid bond is issued as part of a supply bidding process by the contractor to the project owner, to provide guarantee, that the winning bidder will undertake the contract under the terms at which they bid. The bond penalty is subject to full or partial forfeiture if the winning contractor fails to either execute the contract or provide the required performance and/or payment bonds. Contractors in Oklahoma must not only comply with state-mandated insurance and bonding requirements to operate legally but also contractually. For additional protection, contractors should also consider additional policies and bonds in addition to those recommended by the Oklahoma Industry Board and/or by contract. The right insurance and bonding are crucial to minimizing risk, regardless of how long you've been in business. Please note that the information provided in this article is intended for general informational purposes only and may not apply to your specific situation. Insurance laws and regulations can vary significantly from state to state, and it’s crucial to understand the specific requirements and coverages that apply to your location. We strongly recommend consulting with a licensed insurance agent in your state to discuss your unique needs and ensure you have the appropriate coverage for your circumstances.

A motorcycle insured in Oklahoma must be kept in good working order to avoid accidents Oklahoma motorcycle riding can be thrilling and rewarding, but it is not without risk. It is easy to get caught up in the state's wide-open roads and scenic routes when you take a ride along them. A good motorcycle insurance policy, proper maintenance, and safe riding can reduce your chances of getting into accidents and financial burdens. Safety and insurance for motorcycles The ability to protect you in the event of an accident is an important feature of motorcycle insurance. According to the Oklahoma Highway Safety Office, nearly 60% of motorcycle crashes resulted in injury or death. A motorcycle accident is 29 times more likely to result in death than a road accident involving a passenger vehicle, according to the National Highway Traffic Safety Administration. It is imperative that proper safety precautions be taken considering statistics like these. One should always wear a helmet. It is not just a good idea for safety but is also required by law in Oklahoma and most States of the United State if not all of them. It is always a good idea to choose one with a good safety rating. Other safety apparel should not be neglected either. A motorcycle rider should consider clothing and gear that reduces road rash, impact protection to minimize broken bones and internal injuries, increases visibility, and weather protection. Don't speed or drive recklessly: Speeding and reckless driving increases your chances of getting into an accident. To stay safe, follow all road rules. Motorcycle Maintenance: Preventing Mechanical Failures Maintaining your motorcycle properly is essential to avoiding mechanical failure-related accidents. Focus on these things: • Make sure that your tires are properly inflated and treaded to prevent slipping and blowouts. The front and rear brakes should be inspected for wear. A brake pad should be replaced when it begins to thin. • Check that your headlights, taillights, and turn signals are working properly, especially at night. • Ensure smooth and safe operation by regularly checking oil levels, engine coolant, and brake fluid. Maintenance, especially before and after long trips, can prevent accidents caused by avoidable breakdowns and mechanical failures. How Motorcycle Insurance Protects You Just like an automobile owner, motorcycle owners are required to carry a minimum amount of liability coverage, but this is often insufficient to cover the costs associated with motorcycle accidents. A motorcycle accident can cause a great deal of damage and if you have just state minimum liability insurance, you may be covering damage not just to your motorcycle out of your own pocket but also any injuries you sustain. It is estimated that a motorcycle accident can result in a significant amount of bodily injury. U.S. motorcycle bodily injury claims average more than $25,000, according to the Insurance Information Institute (III). Damages to your motorcycle or property are not included in this calculation. Having adequate insurance can protect you financially if the unexpected happens. Here are some types of motorcycle insurance you should consider : • Liability Insurance: Covers you if you damage property or cause injury to someone else. • Comprehensive and Collision Insurance: These cover damages to your motorcycle in event of an accident (regardless of fault), theft, hail damage, and other perils. • Uninsured/Underinsured Motorist Insurance: Covers injuries and other bodily injury damages you incur if you are hit by an uninsured or underinsured driver and the other driver is at fault. • Medical Payment: Covers medical payments in event of an accident regardless of fault. Invest in the right coverage Motorcycle accidents are more common than many people realize, and their consequences can be severe. Maintaining your bike, having the right insurance coverage, and practicing safe riding habits are all key steps in protecting yourself on the road. Invest in comprehensive coverage today to enjoy peace of mind on every ride. Please note that the information provided in this article is intended for general informational purposes only and may not apply to your specific situation. Insurance laws and regulations can vary significantly from state to state, and it’s crucial to understand the specific requirements and coverages that apply to your location. We strongly recommend consulting with a licensed insurance agent in your state to discuss your unique needs and ensure you have the appropriate coverage for your circumstances.

The insurance industry is facing a significant challenge today in the form of insurance fraud. The cost of this crime to insurers and policyholders is billions of dollars every year. Even though some may believe it's a victimless crime, insurance fraud affects everyone's premiums. Fraud in the insurance industry: What is it? An insurance fraud occurs when someone deceives an insurance company to gain financially. Staging accidents, inflating claims, falsifying insurance applications, and falsifying insurance applications are just a few examples of insurance fraud. Despite their apparent isolation, these actions affect all policyholders. As a result of fraudulent claims or misrepresentations, insurers' costs rise, leading to higher premiums for honest consumers. Premiums that are too high and insurance fraud are prevalent Insurance fraud occurs when someone intentionally deceives an insurer for financial gain. Insurance companies suffer from fraudulent activities as well as consumers, whose premiums increase as a result. Here are the steps: 1. A higher payout for claims Paid fraudulent claims add to the overall losses to the carrier. The carrier in turn will increase premiums for everyone to cover all losses both legitimate and fraudulent. 2. High operating costs For insurance companies to detect and prevent fraud, advanced fraud detection technologies, specialized investigators, and training programs must be invested. The additional operational costs lead to higher premiums. 3. Detailed underwriting of the project The data used by insurers to set premiums can be skewed by fraudulent claims. Insurance premiums may rise for everyone in that risk group if fraudulent activity alters insurance statistics. 4. Lack of trust A high level of fraud may lead insurers to be more cautious about accepting higher-risk policyholders. The insurer may increase premiums for everyone, even those at low risk of filing fraudulent claims, to mitigate the increased risk. 5. Claims are becoming more difficult to process Fraud slows down the claims process. Processing time and costs increase due to the need to thoroughly investigate fraudulent claims. As a result of this delay, insurance companies incur higher costs. --- Fraudulent activities related to insurance Fraud in the insurance industry takes many forms, and each type affects rates differently. 1. Staging accidents to defraud insurers The purpose of staging accidents is to collect an insurance payout. This can be accomplished by fabricating fake witnesses, exaggerating injuries, or causing damage to property. In areas where this fraud is prevalent, insurers often raise rates for all insured because of staged accidents. 2. Exaggerated claims An example of this type of fraud is when policyholders inflate the severity of their losses, regardless of whether the loss was caused by an auto accident, property damage, or a personal injury. Insurance companies may overestimate damages or injuries incurred by insureds. Exaggerated claims result in higher premiums for consumers. 3. False medical claims (fraudulent health insurance claims) A false health insurance claim involves billing for treatments that were not provided or exaggerating the cost of those treatments. A claim could also be submitted for a procedure or treatment that does not exist. Fraudulent medical claims cause healthcare costs to rise, forcing health insurers to raise premiums. 4. Falsifying application information Underreporting income, failing to disclose a preexisting medical condition, or failing to disclose a hazardous occupation are examples of falsifying insurance applications. A misrepresentation can cause an insurer's risk assessment to be skewed. The carrier will fail to collect appropriate premium based on the risk characteristics. When an insurer pays out a claim based on fraudulent information, everyone's premiums rise. As a result of these misrepresented risks, insurers have to increase their rates. 5. Theft of property insurance (arson) Arson fraud occurs when a person intentionally burns down their own property to collect an insurance payout. As a result of the costs associated with processing and paying arson claims, insurers charge higher premiums. Consequently, property owners, especially those in high-arson areas, can expect to pay higher premiums. 6. Fraudulent claims for workers' compensation The purpose of workers' compensation fraud is to collect benefits that employees are not entitled to by fabricating or exaggerating their injuries. Employers can also misclassify workers to reduce their insurance premiums. 7. Fraudulent life insurance policies Faking a death, submitting false death certificates, or staging a suicide to collect a death benefit are all examples of life insurance fraud. Insurers face this less often, but it is still a serious issue. 8. Inflated or false theft claims (auto insurance fraud and homeowner's insurance fraud) False claims for stolen property are submitted in this type of fraud. It is possible for policyholders to claim their belongings were stolen when they weren't, or to exaggerate the value of their stolen items. 9. Fraud in the healthcare industry Health care providers can also commit fraud by submitting false claims or overcharging for services that were not rendered. Overbilling and unnecessary procedures are examples of this. The Scope of Insurance Fraud Statistics The financial impact of insurance fraud is staggering. Fraud accounts for approximately 5-10% of all insurance claims, according to the National Insurance Crime Bureau (NICB). Every year, billions of dollars are lost to fraudulent activities, resulting in higher premiums for all policyholders. The cost of insurance fraud in the United States alone is estimated to be around $80 billion annually, which is passed on to consumers. Fraudulent insurance claims have far-reaching consequences Fraud in the insurance industry is more than just a crime -- it raises costs for everyone. A variety of fraudulent activities raise insurance rates, including staged accidents, exaggerated claims, and health care provider fraud. Policyholders pay higher premiums as a result of insurers passing on these costs. In addition to becoming aware of the risks and combating fraud through vigilance, consumers can also report suspicious activity to the insurance industry once they understand the types of fraud and how they affect the insurance industry. By reducing fraud, keeping premiums low, and ensuring fair pricing, all parties benefit. Please note that the information provided in this article is intended for general informational purposes only and may not apply to your specific situation. Insurance laws and regulations can vary significantly from state to state, and it’s crucial to understand the specific requirements and coverages that apply to your location. We strongly recommend consulting with a licensed insurance agent in your state to discuss your unique needs and ensure you have the appropriate coverage for your circumstances.

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