Risk Management Can Save Your Business

Risk is something every business is exposed to every day.  Businesses have risk of fire, theft, employee injuries, and more.  Businesses can transfer some of the risk through business insurance policies, but business insurance policies can only cover so much, and do not always cover 100% of all risks.

There are a number of positive actions your business can do to reduce your risk. There are also many mistakes businesses make when managing risk.

Business Insurance and Risk Mistakes

• Not considering employment risks. Your employees are your most important assets but they are also your biggest risks. Every business with employees needs employment practices liability insurance.  Businesses also need to provide annual training to all employees on their employment policies, including harassment.
• Ignoring cyber risk. Your business has a greater chance of having a cyber-attack than it does of having a fire. You need to make sure that your computers and internet are protected, and that you have purchased cyber liability insurance.
• Not understanding how loss of income insurance is designed to work. Business interruption insurance, also known as business income insurance, covers the loss of income (rent) that a business suffers after a covered loss (fire, wind storm etc), while its facility is shut down or in the process of being rebuilt.  It is critical to your business’s future to have the correct amount of coverage.
• Buying too little liability insurance. In 2000, it was uncommon for companies to be sued for more than a million dollars.  In 2018, it is not uncommon for a company to have several large claims going on at the same time. A large judgment against your company could damage your reputation, and it might even put you out of business. We recommend every business consider options of 1 to 5 million dollars in liability insurance, depending on your operations.

This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice. Please seek professional legal or tax counsel before making any decisions. The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.

Is Now The Time To Consider Employment Practice Liability Insurance?

A Business Insurance Update

What does not make the news is that a majority of employment claims involve firms with less than 50 employees. The Equal Employment Opportunity Commission (EEOC) recorded nearly 86,600 charges in 2017 and obtained more than $294 million in settlements for claimants. The average cost of an employment litigation claim was over $200,000 in 2017.

We Offer A Solution

Employment Practices Liability Insurance (EPLI), can cover and insure a business when employees sue the employer if they feel that their legal rights have been violated. EPLI protects against many kinds of employee lawsuits, including claims of:
• Sexual harassment
• Age discrimination
• Mismanagement of employee benefit plans
• Discrimination
• Wrongful termination
• Wrongful discipline
• Breach of employment contract
• Failure to employ or promote
• Wrongful infliction of emotional distress

An EPLI policy will offer defense coverage even if you are in the right. Your business can transfer the risk of employees suing the corporation to the insurance company, as long as the claim is covered under the policy.

This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice. Please seek professional legal or tax counsel before making any decisions. The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.

Improve Your Workers Compensation Program Through Employee Selection

One of the most important things an employer can do is hire the best possible person for the company. In the current employment market, it is easy to lose sight of how employee selection is directly tied to employee injuries. Hiring the wrong person can put your workers;’ compensation program at risk. Fortunately, there are actions you can take to help prevent workers’ compensation losses through the right hiring processes.

• Always require formal applications for all employees.
• Conduct detailed interviews.
• Check references.
• Conduct background checks and drug testing as the law allows.
• Train your interveners to watch for indicators of past job performance issues. These might include applicants who offer vague responses, quite a previous job without notice
• or show negative patterns of behavior in their job histories.
• Be aware of any past employee fraud issues. This may include being fired or blaming others for performance issues.
• Have clear job responsibilities and share these with a potential employee.
• Develop a return to work program.
• Your job description should have specific physical demands outlined, and the employee should sign they can meet these demands.

Workers’ compensation is an important part of your business insurance program. It is required by state law that your business has workers’ compensation insurance.
As a business owner, you go to great lengths to provide a safe working environment for your employees. Workers’ compensation continues to be a significant cost driver for most employers, and understanding all the factors that can drive your workers’ compensation cost can often be complex and time consuming.

This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice. Please seek professional legal or tax counsel before making any decisions. The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.

Strategies For Reducing Professional Liability Risks

How To Minimize Risks

It is important to understand the tremendous risks attorneys and other professionals have when it comes to providing professional services. Almost any business can find itself facing a liability lawsuit. A Miscellaneous Professional Liability lawsuit can put the owner’s and other executive’s personal assets at risk including homes, cars, and other possessions. One simple mistake could cause financial devastation, as well as end your professional career.

It is important to document communications with clients and others to preserve important information. There are three forms of documentation that a firm should pay particular attention to when developing the firm’s standard procedures:

Contracts or agreements–It is important to have clear expectations in writing as to the services agreed upon.

Certified receipt transmissions–There will be occasions when documents and other records need to be delivered with a receipt. This is the best method of confirming that the documents were delivered to the intended individual.

Memos to file–It is critical that attorneys and other professionals keep memos and file notes. We always recommend that meeting notes be maintained and copies delivered to all parties in attendance at the meeting.

Professional Liability Insurance is sometimes called Errors and Omissions (E&O) coverage. Claims come from errors or omissions in the performance of professional services. Companies that perform professional services for a fee are exposed to E & O claims. Often claims result from overlooking a critical piece of information, misstating a fact, misunderstandings, forgetting to do something, or misplacing something.

 We can help find you the right insurance options, so that no matter what your budget is we can minimize you’re spending and easily meet your needs. To learn more about us and what we offer, make sure you browse through our personal and business services.

This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice.  Please seek professional legal or tax counsel before making any decisions.  The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.

Here Is Why Every Business Needs Insurance

Here Is Why Every Business Needs Insurance

The Top Claims For Small Businesses

In a recent report by Property Casualty 360 See full Article, the top claims for small businesses were reviewed. In this report, a leading insurer of small businesses reviewed millions of policies over a five year period. We found the results interesting.

Business Insurance

Remember that business insurance protects your investment by minimizing financial risks associated with unexpected events such as a death of a partner, an injured employee, a lawsuit, fire, or a natural disaster. Here are some results we found interesting:

1. Burglary accounted for 20% of the claims with an average cost of $8,000.
2. Water damage had an average cost of $17,000, or 15%, of the small business claims.
3. Wind damage, while not an exposure for every business, accounted for 15% of the total losses with an average cost per claim of $26,000.
4. The traditional risk of fire damage had an average claim of $35,000 and 10% of the total.
5. Product liability claims cost an average of $35,000.
6. Property rights/ Reputation, while not a large percent of the claims, had an average cost of $50,000.
7. Auto accidents accounted for only 5% of the total, but averaged $45, 000 per claim.

 At Roussel Insurance we strive for trust and reliability with our clients. Through our 32 years in the insurance business we have learned to achieve immediate and sustainable cost savings for businesses and individuals.

This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice.  Please seek professional legal or tax counsel before making any decisions.  The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.

How To Update Your Business Insurance

What Large Companies Do To Lower Costs That Any Company Can Do

As we continue on our journey to a better understanding of insurance, we thought it would be informative to identify some risk management “best practices” of larger companies. We believe that many of these “best practices” can, and should, be discussed with businesses of all sizes.

The good news is that these generally don’t create additional costs to the company; in fact, they usually reduce costs!

Insurance & Risk Best Practices

1. Big Companies View Their Broker/Agent As A Trusted Advisor. The best way to accomplish this is to not bid insurance, but rather select an agent based on qualifications and the best fit with the goals of the business.
2. Consider Modifying The Insurance Program With The Swings In The “Market”. For example, during a soft market you are able to lower deductibles and broaden coverage. As the market cycles up, you are able the increase deductibles to offset premium increases.
3. Develop Cyber Breach Procedures. Small to medium sized businesses have a greater chance of having a cyber-breach than they do of having a fire. Here is an excellent resource from Experian
4. Wellness Has Become A Norm. According to an article in the St. Louis Business Journal, “employee absenteeism is reduced when wellness programs are implemented”. In a study by Prudential Insurance, disability days were 20 percent lower and disability-per-capita costs were 32 percent lower, after implementing a wellness program. In addition, annual medical costs fell by 46 percent.
5. Human Resources Is Part Of The Management Team. As the workforce gets older, finding ways to attract younger employees will be important. Developing new nontraditional compensation formulas and work hour flexibility will help attract and retain top performers. Develop an employee handbook and keep it updated. Educate and train all employees.
6. Separation of Accounting Duties. A recent report issued by The Association of Certified Fraud Examiners, places the cost of employee fraud at 7% of annual revenues. Companies with less than 50 employees saw a median loss of $50,000. Separate check writing and depositing responsibilities, and have an annual audit by a qualified firm.

This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice.  Please seek professional legal or tax counsel before making any decisions.  The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.

Good Reasons To Consider Workers’ Compensation

Good Reasons To Consider Workers’ Compensation

If your company has employees, you may be required to buy workers’ compensation insurance. Some states do allow people to opt out of the system if they can prove financial responsibility, but that is only in two or three states in the entire country. If you have employees, you are most likely required to carry workers’ compensation.

One question we often get asked is, what is an employee? An employee can be a full-time or part-time person, working on behalf of the company. Temporary and seasonal staff can also be defined as employees. Many people seem to think that just because someone isn’t a full-time employee, they don’t need to have workers’ compensation coverage. Not true. Under all these cases you are required to have workers’ compensation insurance.

The way you pay your employee does not impact whether or not they are considered an employee. You can 1099 somebody and have him, or her withhold his or her own taxes, and you are still required to carry workers’ compensation coverage on that person. Don’t confuse tax laws and workers’ compensation laws. These laws and statutes are entirely unrelated.

Here are a few additional tests to determine the employer/employee relationship:

• Do you control the workplace?
• If the person takes direction from ownership or management, they are employees.
• Do you supervise them?
• Is their time controlled (lunch, breaks, etc.)?

What about independent contractors?

An independent contractor is someone who owns their own business, so they control their own working hours. They manage how they get the job done. They are the people to which you give a project, they return a completed project, and they are usually completely unsupervised by you. So, if you have someone who fits into this definition, you probably don’t need to carry workers’ compensation coverage on that person.  However, it is always a good idea to call is to help you review each situation.

This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice.  Please seek professional legal or tax counsel before making any decisions.  The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.

Is Your Business Hiring This Summer?

Many businesses today offer college students the opportunity to hold a summer intern position. These can be rewarding for the college student as well as provide some help to the business. Offering paid or non-paid internships can create risk for your business. We wanted to highlight some of the business risks associated with having interns. Before you bring that person on board, make sure your business is well prepared.

You should have a written plan. It should include a job description, hours, and line of authority.

Check to see if there are any state regulations that might be impacted.

If you offer a paid internship, you will need to treat the intern like any other employee. We suggest having a formal agreement indemnifying the terms of the agreement, including the time period of the internship.

If the internship is a paid position, don’t forget about workers’ compensation.

Make sure you comply with Healthcare Reform relating to employee benefits.

Make sure the intern understands they are not entitled to “regular” company benefits, i.e.  retirement, insurance, vacation, etc.

The internship must provide similar training that would be given in an educational environment.

There must be a “true” benefit for the intern.

The internship cannot be for the sole benefit of the company.

The intern must not replace regular employees, and should work under the close supervision of existing staff.

Unpaid internships for for-profit companies are subject to the U.S. Department of Labor’s Fair Labor Standards Act. There are provisions if you offer educational credit. Here is a link to the U.S. Department of Labor.

We recommend you check with the department of labor to make sure your program meets all of the requirements. There have been many businesses who have been sued as a result of improper internship programs.

This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice.  Please seek professional legal or tax counsel before making any decisions.  The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.

We Can Help Your Business Survive an Interruption

A Business Insurance Update

Have you considered the cost to you if your business had to shut down for a week, month, or even longer?  We have, and we can offer a few tips to help your business continue even in the midst of a shut down.

A business can be shut down for a number of reasons. Your business or commercial insurance policy will cover the cost to repair or rebuild your building, and replace business property.  But are you protected if it takes time to re-open? Business Interruption Insurance keeps you financially stable during the period that you are forced to vacate.  You can continue to provide your employees with pay, and manage bills during the period in which the business cannot operate.

When considering business income, you also need to determine if you have certain risks that would require specific limits within the overall coverage. If these are not managed correctly, you may suffer a loss and not have enough insurance to ensure your recovery.

Business Income Insurance

• Peak Season – If your business has seasonal income, you will want to adjust your policy accordingly. Don’t just average your income out over 12 months; that may not be adequate coverage.
• Period of Recovery – When you consider your recovery time, (the amount of time to fully resume operations) you may need to take into account any special construction needs. For example, you may have unique equipment that will take several months to design and construct. Knowing this will help you design your coverage to meet your needs.
• Payroll coverage–Under this coverage, you can select who you want to offer payroll continuation to. However, you must do this prior to the loss.  You can also add categories of workers and even managers.

At Roussel Insurance we strive for trust and reliability with our clients. Through our 32 years in the insurance business we have learned to achieve immediate and sustainable cost savings for businesses and individuals. We can help find you the right insurance options, so that no matter what your budget is we can minimize you’re spending and easily meet your needs.

This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice.  Please seek professional legal or tax counsel before making any decisions.  The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.

Cyber Security Prevention Tips

If your business stores or controls any kind of personal customer information, you have a cyber liability risk. Even if you don’t store customer information electronically, you still have a risk of identity theft. The insurance industry has a key role to play in helping U.S. companies strengthen cybersecurity, a senior Treasury Department official said Thursday.

More than 40 percent of small businesses don’t have an adequate IT security budget, according to a November 2014 survey by the Ponemon Institute.  According to a 2014 study by the National Cyber Security Alliance, 60% of small businesses close their doors within six months of a data breach. A data or cyber breach can not only cost a business money, but also their reputation.

Top Breaches For Small Businesses

1. Third-Party Breeches.
2. Employee misuse of information.
3. Socially engineered trojans- An end-user browses to a usually trusted website, which prompts him or her to run a trojan. Most of the time the website is a legitimate, innocent victim, whose website has been temporarily compromised by hackers.

Cyber Liability Prevention Tips

• Outsource credit card handling with a reputable vendor.
• Use more complex passwords with a combination of letters, numbers, and symbols. Here is an example (MP#09xT28S%).
• Don’t save passwords on your computer.
• Question your internet security at every level, including email. It may be time to encrypt all emails.
• Use the latest security software.
• Do not allow laptops to leave the office without proper security.
• Train your employees on cybersecurity.
• Do not use an open network.

Cyber Insurance

We can provide your firm with the right combination of pricing and coverage. Cyber risk insurance is available at very reasonable premiums. Many of our companies offer coverage to help protect your business from loss.

At Roussel Insurance we strive for trust and reliability with our clients. Through our 32 years in the insurance business we have learned to achieve immediate and sustainable cost savings for businesses and individuals. We can help find you the right insurance options, so that no matter what your budget is we can minimize you’re spending and easily meet your needs.

This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice.  Please seek professional legal or tax counsel before making any decisions.  The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.