Posts made in August, 2015

Insurance Policies for Business Owners

Posted by on Aug 27, 2015 in News | 0 comments

If you are a business owner, you should consider purchasing the following insurance policies to ensure that your company is protected: General Liability Insurance: Even if your business is home-based, it needs liability insurance. This policy provides both defense and damages if you, your employees or your products or services cause or are alleged to have caused Bodily Injury or Property Damage to a third party. Property Insurance: Do you own your own building? Do you have personal property in the building including office equipment, computers, inventory or tools? Then you should consider purchasing a policy that will protect you if you have a fire, vandalism, theft, smoke damage etc. You may also want to consider business interruption/loss of earning insurance as part of the policy to protect your earnings if the business is unable to operate. Business owner’s policy (BOP): This policy packages all required coverage a business owner would need. BOP’s will often include business interruption insurance, property insurance, vehicle coverage, liability insurance, and crime insurance . You can alter what is included in a BOP based on your company’s specific needs. A business owner will save money by choosing a BOP typically because the bundle of services often costs less than the total cost of all the individual coverage’s. Commercial Auto Insurance: This type of insurance protects a company’s vehicles such as those that protect vehicles that carry employees, products or equipment. Commercial auto insurance insures your work cars, SUVs, vans and trucks from damage and collisions. Don’t have company vehicles, but employees drive their own cars on company business? Then you should have non-owned auto liability to protect the company in case the employee does not have insurance or has inadequate coverage. Many times the non-owned can be added to the BOP policy. Worker’s Compensation: Worker’s compensation provides insurance to employees who are injured on the job. It provides wage replacement and medical benefits to those who are injured while working. The employee gives up his rights to sue his employer for the incident In exchange for these benefits. It is very important as a business owner to have worker’s compensation insurance because it protects yourself and your company from legal complications. State laws vary, but all require you to have workers compensation if you have W2 employees. Penalties for noncompliance can be very high. Professional Liability Insurance: Also known as Errors and Omissions Insurance this policy provides defense and damages for failure to or improperly rendering professional services. A general liability policy does not provide this protection, so it is important to understand the difference. This type of insurance is applicable for any professional firm including lawyers, accountants, consultants, notaries, real estate agents, insurance agents, hair salons and technology providers just to name a few. Directors and Officers Insurance: This insurance protects directors and officers of a company against their actions that affect the profitability or operations of the company. For instance, if a director or officer of your company, as a direct result of their actions on the job, finds him or herself in a legal situation, this type of insurance can cover costs or damages lost as a result of a lawsuit. Data Breach: Does your business store sensitive or non-public information about employees or clients on their computers, servers or in paper files that they are responsible for protecting? Then you need this type of insurance should a breach occur either electronically or from a paper file to provide protection against the loss. Homeowner’s Insurance: Do you office out of your home? Homeowner’s insurance is one of the most important kinds...

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Employment Practices Liability Insurance – A Vital Component to any Business

Posted by on Aug 21, 2015 in News | 0 comments

EPLI covers businesses against claims by workers that their legal rights as employees of the company have been violated. No matter the size, Employment Practices Liability Insurance (EPLI) coverage is a vital component to any business’ insurance package. In recent years the number of employee accusations and charges employers face has grown dramatically. Unfortunately many small businesses lack human resource professionals or legal counsel on staff to guide them through the minefield of risks they face every day. Recognizing that smaller companies now need this kind of protection, some insurers provide this coverage as an endorsement to their Businessowners Policy (BOP). An endorsement changes the terms and conditions of the policy. Other companies offer EPLI as a stand-alone coverage. How does EPLI protect employers? It protects employers from claims brought by employees who allege: Sexual harassment Discrimination Wrongful termination Breach of employment contract Negligent evaluation Failure to employ or promote Wrongful discipline Deprivation of career opportunity Wrongful infliction of emotional distress Mismanagement of employee benefit plans EPLI covers claims brought by: Full time, part-time, temporary, and seasonal employees Recognized volunteers Applicants Independent contractors Leased employees The cost of EPLI coverage depends on your type of business, the number of employees you have and various risk factors such as whether your company has been sued over employment practices in the past. The policies will reimburse your company against the costs of defending a lawsuit in court and for judgments and settlements. The policy covers legal costs, whether your company wins or loses the suit. Policies also typically do not pay for punitive damages or civil or criminal fines. Liabilities covered by other insurance policies such as workers compensation are excluded from EPLI policies. For more information about EPLI, and to make sure your business is covered, contact us...

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Key Man Life Insurance for Your Small Business

Posted by on Aug 7, 2015 in News | 0 comments

Key Man Life Insurance is Defined as: Life insurance on a key employee, partner or proprietor on whom the continued successful operation of a business depends. The business is the beneficiary under the policy. . Simply put, key man life insurance is coverage for the key person in any business. Normally this is the owner, the founder(s) or even a key employee or two in a small business. Their absence would sink the company since they are crucial to the business so you should always consider providing key man life insurance for these individuals. How does it work? A company purchases a life insurance policy on its key employee(s), pays the premiums and is the beneficiary of the policy. If that person unexpectedly dies, the company receives the insurance payoff. The reason this coverage is important is because the death of a key person in a small company can cause the immediate death of that company. The purpose of key person insurance is to help the company survive the blow of losing the person who makes the business work. Now, key person insurance isn’t as necessary if the company is a sole proprietorship and employs just you and no other employees or has no other people who depend on it. Please take note that we did not mention family – this is not personal life insurance. If you have family, i.e. spouse and/or children who depend on your income, you should purchase a separate life insurance policy. How does a company determine who needs this type of insurance? Who in your company is irreplaceable in the short-term? That’s your guy or girl! Here’s why. In many small businesses, the owner wears many hats. He or she may keep the books, manage employees, handles key customers etc. so if that person is gone, the business comes to a halt. Now here’s the big question: How much key person insurance do you need? That answer of course is determined on your business – however – generally speaking you should get as much as you can afford. Most life insurance agents will sell you a key person policy so shop around and get rates – or contact us for the best rates! Whole or variable life insurance isn’t necessary for a key man policy so as for term insurance. Ask for quotes on $100,000, $250,000, $500,000, $750,000 and $1 million, and compare the costs of each. Now think about how much money your business would need to survive until it could replace the key person and get the company back on its feet. Purchase the type of policy that will fit your budget and address the company’s short-term cash needs in the event that there is a...

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