Posts Tagged "general liability insurance"

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...

Read More

Your Business is Not Fully Covered and Here’s The Reason Why!

Posted by on Feb 17, 2015 in News | 0 comments

Earlier this month I read an article on Huffington Post, titled, “Sweet Cakes by Melissa Violated Oregon Law By Turning Away Lesbian Couple, Officials Rule.”  The owners of this bakery declined to make a wedding cake for the lesbian couple.  The Oregon Bureau of Labor and Industries ruled that the bakery owners will have to pay the lesbian couple up to $150,000 for discrimination.  Most business owners aren’t aware of this, but your General Liability policy excludes Employment Related Practices Liability.  After reading the article, the first thing that popped into my head was that this will most likely be an out of pocket expense for these business owners. You see, Employment Practices Liability is a separate policy.  While you may get some throw in coverages on your Business Owner’s Policy, it’s usually a very small limit.  For example, Hartford gives an automatic $10,000 limit.  As you can see, that’s nowhere near enough to cover the potential judgment in this specific case.  And, what about the legal expenses?  Since there is no Employment Practices Liability coverage on the General Liability policy, there would be no duty to defend the lawsuit.  Basically, this couple is potentially out the $150,000 plus all legal expenses, and legal expenses thus far are a fixed cost that will be payable to the legal team. Employment Practices Liability offers coverage for business owners against claims brought on by employees, former employees, potential employees, and third parties.  The policy defends the employer and pays damages when allegations of discrimination, wrongful termination, harassment, retaliation, and inappropriate employment conduct are brought against the business owner. In the US we have seven statutory laws regulating employment practices.  The Fair Labor Act; the Equal Pay Act; Title VII of the Civil Rights Act; Age Discrimination in Employment Act; the American With Disabilities Act; the Family and Federal Leave Act; and the Uniform Services Employment and Re-employment Rights Act are the federal laws that employers have to abide by.  In addition, each state has its own statutes regulating employment practices and discrimination against sexual orientation.   Our own city of Houston amended Ordinance No. 2014-530 to include a number of changes, especially discrimination against sexual orientation in privately owned businesses operating public accommodation establishments.  I’m sure we will continue to see more states add similar laws to protect this group from discrimination. In today’s litigious society, business owners need Employment Practices Liability more than ever.  This policy will protect them from suits brought by employees, former employees, prospective employees, or third parties.  This insurance covers the following types of acts:  discrimination, wrongful termination, harassment, retaliation, and inappropriate employment conduct.  Some of these coverage triggers are both common law and statutory law exposures.  Business owners need this insurance policy to avoid substantial financial losses resulting from costs of damages and defense...

Read More