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BUSINESS INSURANCE REVIEWNATURAL DISASTERS ARE INCREASING. ARE YOU COVERED? In the wake of recent catastrophic events such as Superstorm Sandy, companies are becoming more aware of the need to safeguard their enterprises. They accomplish this by developing strategic plans that include consistent monitoring of their disaster plan. Unfortunately, the occurrence of a natural disaster is typically when most companies begin to regret not having a business continuity system in place. Preliminary estimates of Sandy losses total in the billions for damage and business interruption. This storm awakened us to the fact that natural disasters are increasing in the wake of climate change. Wind knocked out power for weeks. Flooding spoiled inventory. Soaked and damaged equipment had to be repaired or replaced. Even undamaged companies were shut down for days as a result of damage elsewhere. Companies can learn another lesson from Sandy: Businesses with disaster recovery plans were back in business faster than companies that didn’t have a plan. Companies with a disaster plan have procedures that aid them in getting up and running as soon as possible after a disaster. Companies that don’t plan for these types of catastrophes likely will wish they had. Business insurance is a necessity to protect your business from financial destruction. This can limit your liability in the event of a natural disaster or other misfortune. New businesses have different needs from established ones and your coverage should grow as your business grows. Various types of insurance are required by law, while other types are needed for your particular business. Coverage is available for your building and its contents. Now is the best time to buy flood insurance because, typically, there’s a 30 day waiting period from date of purchase before your policy goes into effect. A few of the common types of business insurance are:
Call your agent today about insuring your business and its contents.
If you have employees who aren’t owners of your business, generally, you need workers’ compensation insurance. Whether you have a handful of employees or thousands of employees, you need to make sure you have the right insurance coverage for your business. The rules surrounding workers’ compensation can be complicated. However, your agent can help you determine the correct workers’ compensation for your needs.
Workers’ compensation insurance offers you safeguards to protect your employees who may become injured or ill in the workplace. The benefits provided by this type of insurance includes: medical expenses, death benefits, lost wages and vocational rehabilitation.
Workers’ compensation insurance is state regulated so requirements for businesses can vary from state to state. This is important to remember if your company has multiple offices or branches in different states since your obligations as an employer may vary in each location. Most states offer workers’ compensation insurance through private insurers. However, some states, such as New York, offer this coverage through either state funds or private insurances. And, some states, such as New Jersey and Texas, do not require employees to purchase workers’ compensation insurance. However, just because it’s not required doesn’t mean it’s a good idea to forgo the purchase of a workers’ compensation policy for your company since companies in those states are still liable under its workers’ compensation laws for injured workers.
You may have more employees then you think. Most state’s workers’ compensation laws consider uninsured contractors or subcontractors to be your employees if they are injured while doing work for your business. These definitions vary from state to state and it’s a good idea to make sure you define your employees properly. This article provides a basic overview of workers’ compensation insurance which is a valuable tool in any business owner’s tool box. However, while a workers’ compensation policy can provide protections for both you and your employees, purchasing a policy is not as simple as logging onto a website and clicking “buy.” Give your agency a call; they can walk you through the nuances that contribute to obtaining the right workers’ compensation policy for your business. There are also other insurance policies that every business needs. Be sure to ask your agent to make sure you have the insurance coverages you need.
Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex and national origin. Since it was passed, charges of racial discrimination and sexual harassment have increased each decade. According to the U.S. Equal Employment Opportunity Commission, the body responsible for enforcing federal discrimination laws, the total number of charges filed per year has grown from 80,680 in 1997 to 99,412 in 2012. That’s more than a 23 percent increase. I don’t have to worry about discrimination suits, you say. I do everything by the book, you say. The fact is, it doesn’t matter. You don't have to do anything wrong to get sued; someone just has to say you did. It can be an expensive distinction to learn after the settlement or trial. Defending a single discrimination claim can cost more than $100,000 in attorneys' fees alone. In 2009, the average settlement for discrimination litigation was $140,338, which some might call getting off light considering the average judgment granted by jury was $991,486. Enter EPLI - Employment practices liability insurance offers protection against claims and lawsuits that are brought against a business, its officers or directors, or its employees and managers. Policies can cover the following areas:
A well crafted personnel policy should be your first line of defense against employment related claims. Nevertheless, EPLI coverage is another essential tool in a comprehensive risk management plan. Call your agent today to get started.
For many businesses, seasonal weather means time to gear up for big events. Hosting a community event or coordinating a convention is a great way to increase exposure and raise awareness about your products and services. Good thing the days are getting longer because these events take hours of planning and investment. Unfortunately, even the most organized event coordinators can’t predict some problems—from seasonal weather, to sick celebrities. That’s what insurance is for: Being prepared for the unexpected. If you are planning an event—sporting, musical or even a trade show—you will want to protect it should something happen to force a cancellation. Event cancellation coverage exists to cover your business should it be the victim of:
There is a fundamental divide to the insurance industry. There are the attentive, caring people representing professional, independent agencies, and there are behemoth corporations represented by actors and mascots that are in it for maximum profit. Both can sell you a policy, and both can compensate you fairly for a covered loss, but only an agent can physically stand at your side after you’ve lost your business, assure you that you can overcome the hardship, offer a hug if it’s needed, help rip up carpets, provide a hot meal, or do the countless other things that agents take it upon themselves to do but never advertise or print on a policy. Last year’s Superstorm Sandy was the latest example of this, but it will not be the last. Service to the degree of personal involvement such as this exemplifies the difference between independent agents and the direct writers of the insurance world. Big Direct Insurance companies don’t make house calls, Agents do. They’re here for you. If you need help, just call.
Your Professional Insurance Agent … For more information, please contact the author of this article.
His Agency insures thousands of polices for TLC Insurance as well as many policies for all types of PERSONAL and COMMERCIAL insurance. You can reach him in his Briarwood, Queens office at (718) 523-1300 Ext. 1082, or visit the website at: www.MemberBrokerage.com
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