Is Your Business Prepared For A Loss?

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A Business Insurance Update

Your business insurance can respond to many kinds of risks and losses.  Protecting your business from loss can mean the difference between having a great year, and having to close your doors.  According to the Insurance Information Institute, 30% of businesses that have a fire never re-open.  Therefore, it pays to have the right business insurance and to manage your tops risks.  However, do you know the most common risks faced by most businesses? 

Business Risks

Cyber breach – Your small business has a greater chance of having a data breach than it does of having a fire.  Make sure you have a cyber liability insurance policy.  Don’t save passwords on your computer, use the latest security software, train your employees on cyber security, and never use an open network.

Customer trip and fall – Make sure you keep your business entry clean and clear of clutter.

Flood – Your business insurance excludes flood damage.  If you are close to water, make sure you consider flood insurance.

Fire – Every business is subject to fire. Install automatic alarms to ensure proper notification, disconnect equipment when not in use, and never overload sockets with plugs.

Theft – Develop a system for end of day closure procedures. Keep a light on at night.  Burglars are less inclined to break in if they think someone is there.

Common Mistakes Made When Purchasing Business Insurance

Business Insurance 101

We work with hundreds of businesses and help them manage their commercial insurance programs. Our team recommends coverage and risk options as part of our regular services. Over the years, we have seen some businesses make preventable mistakes when considering their insurance coverage.  We thought it would be good to share these with you.

Business Insurance Mistakes

Mistake: Assuming you do not need an agent.

Your agent can provide valuable services including educating you on what coverage you need and may not need.  Your agent can search the market for the best possible combination of coverage, price and service.

Mistake: Thinking that your policy covers all losses.

Your business insurance policy is intended to cover unexpected losses and accidents subject to the policy terms.  There are limitations and exclusions in every policy.

Mistake: Assuming that the lowest price is the best option.

It may be that the lowest priced insurance excludes needed coverage.  Your agent can help you determine the best coverage option for you.

Mistake: Not including cyber liability, employment liability, and professional liability in your business insurance program.

In today’s litigious climate, all businesses need to be protected with this coverage.

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. To learn more about us and what we offer, make sure you browse through our personal and business services. Lastly, do not miss our blog page! All our blogs are informative, so we can help make insurance more understandable.

The Keys To A Business Owner’s Insurance Policy

Every business needs business insurance.  But business insurance policies are all different. That is why it is always better to use an independent agent who knows and understand your business and industry. The insurance needs for a restaurant are much different than the insurance needs of a manufacturer, and the coverage should reflect that.

If you own or operate a business, you may want to consider these coverages as part of your business insurance package. Our keys to coverage will assume some of the obvious coverage such as property and liability.  We also want to identify some business insurance coverage you may not have considered.

• Business income insurance–After a covered loss, you may have a period of recovery time when you are closed. Without business income insurance your business may run out of funds.
• Umbrella Insurance–An umbrella policy provides extra insurance protection over your commercial general and auto liability policies. It is not uncommon for a business to be sued for over $1,000,000.
• Cyber liability–Cyber breaches are the fastest growing causes for loss for most businesses. Every business needs the protection provided by cyber insurance.
• Employee dishonesty–This policy protects employers from workplace theft and fraud.

How To Reduce Workers’ Compensation Costs Today

Workers’ compensation insurance is state-mandated insurance that provides lost income, medical benefits, disability benefits, and rehabilitative services for workers injured on the job or while performing work-related duties. When an employee gets hurt on the job or has a work-related illness, only workers’ compensation will cover them. Health insurance benefits will not provide coverage for on the job injuries.

Workers’ Compensation Insurance premiums are computed as a direct result of your claims and payroll. The most effective method of reducing or managing Workers’ Compensation claims is to have effective safety program and a “Return to Work Program”.  Here are a few examples of what your safety rules might include:

1. Drug and alcohol rules.
2. Require safety equipment to be worn at all times.
3. Keep work areas clean.
4. Do not wear loose clothing or jewelry around machinery.
5. Where required, you must wear protective equipment such as goggles, safety glasses, masks, gloves, hair nets, etc. appropriate to the task.
6. Safety equipment such as restraints, pull backs, and two-hand devices are designed for your protection. Be sure such equipment is adjusted for you.
7. Develop a system for reporting unsafe practices.
8. Have monthly safety meetings that review safety issues and related topics.
9. Create accident investigation procedures that focus on prevention and change.

Return To Work Program

A Return to Work (RTW) Program is a process used by an employer to help employees who have suffered work related injuries or illnesses return to their vocational status. A RTW should have the following components:

• A modification of work schedule and/or job duties. These need to be approved by the treating physician.
• Modifications will vary depending on type of injury, employee’s condition and skills.
• A plan that allows the employee to gradually return to pre-injury tasks and functions.

Work is therapeutic, and return-to-work programs are effective. The sooner employees reconnect with work associates and perform job responsibilities, the healthier their outlook, and the more favorable your workers’ compensation experience. All in all, a Return to Work Program can be a win-win solution for your employees and company.

Of course, there is more to an effective safety program, than what we have outlined here. Look for more information at a future time.

The Liabilities Of A Fiduciary

The Liabilities Of A Fiduciary

If you are an owner, director or officer of a private or public company you have a fiduciary liability exposure. You may be responsible for the selection of retirement or benefit providers or plans and these decisions can create personal liability for you.

What is a fiduciary?

Under ERISA, fiduciaries can be held personally liable for losses to a benefit plan incurred as a result of their alleged errors, omissions, or breach of their fiduciary duties.

Who are fiduciaries?

Fiduciaries can be plan trustees, investment committee members, even owners of companies who contract with third party providers.

Here are examples of the most frequent kinds of claims

1. Denial or change of benefits
2. Incorrect benefit calculation
3. Improper advice or counsel
4. Misleading representation
5. Failure to properly fund the plan
6. Lack of investment diversity
7. Conflict of interest
8. Selection of advisors

How to limit your liability

• Have annual plan review
• Communicate with employees regularly
• Use professional consulting firms and review their insurance
• Have the plan audited by outside accountant

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.

Why Update Your Business Insurance?

Let’s face it, your business changes almost every day.  You add new employees, equipment and vehicles, and you change and update in every way needed to remain competitive. To ensure your business is protected with the right business insurance, you need to structure your program to respond when needed.

These changes can impact your business risks, and you will need to adjust your business insurance accordingly:

1. New employees can create additional workers’ compensation and benefits risks.
2. The purchase of new vehicles adds auto liability exposure.
3. Part time employees may increase employment, benefits and workers’ compensation risks.
4. Have you relocated your business? Your location can affect your property insurance premiums.
5. Have revenues changed? Your business liability insurance is based off of revenues, so any changes can impact your premiums.
6. Do you offer any new goods or services? If so, we will want to review your policy to make sure your exposure is covered.
7. If you have changed your company’s legal status or added new partners, your insurance needs will be different.

To ensure that you enjoy protection no matter how your business grows or shifts positions, be sure to check with your insurance agent if you make any changes.

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 Insure Your Small Business

How To Insure Your Small Business

Small businesses have unique needs and it is important to work with an agent who understands your needs. When it comes to reducing your liability risks as a small business owner, you must secure the right business insurance policy.

Small Business Insurance Needs

Commercial General Liability: Covers third party liability claims, namely claims against you from a customer or visitor on your premises, or from someone who may be injured by your business activity or product.

Commercial Business Property Insurance: Insures your building and contents both on and off your premises.

Business Interruption Insurance: Provides protection from loss of income and extra expense if your business suffered a loss and you were unable to operate for a period of time.

Employee Dishonesty Coverage: Protects your company from financial loss resulting from employee theft of money, securities, or property.

Workers Compensation: Provides compensation for your employees for medical care in the event they are injured on the job; including medical benefits, income benefits, death benefits, and rehabilitation benefits.

Business Auto Insurance: Provides insurance coverage for your company’s cars, trucks, trailers, vans, or other vehicles.

Professional Liability: Covers you for the failure to perform professional services. If you design something or perform work which does not meet standards or expectations, you could be sued for the cost of the contract, damages, or lost business revenues by your customer.

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 Prepared For A Loss?

A Business Insurance Update

Your business insurance can respond to many kinds of risks and losses.  Protecting your business from loss can mean the difference between having a great year, and having to close your doors.  According to the Insurance Information Institute, 30% of businesses that have a fire never re-open.  Therefore, it pays to have the right business insurance and to manage your tops risks.  However, do you know the most common risks faced by most businesses? 

Business Risks

Cyber breach – Your small business has a greater chance of having a data breach than it does of having a fire.  Make sure you have a cyber liability insurance policy.  Don’t save passwords on your computer, use the latest security software, train your employees on cyber security, and never use an open network.

Customer trip and fall – Make sure you keep your business entry clean and clear of clutter.

Flood – Your business insurance excludes flood damage.  If you are close to water, make sure you consider flood insurance.

Fire – Every business is subject to fire. Install automatic alarms to ensure proper notification, disconnect equipment when not in use, and never overload sockets with plugs.

Theft – Develop a system for end of day closure procedures. Keep a light on at night.  Burglars are less inclined to break in if they think someone is there.

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.

Every Business Needs These Coverages

Commercial Insurance

Insurance coverage is available for almost every type risk your business might face. Our agency can advise you on the exact types of commercial insurance you should consider purchasing. The right commercial insurance policies will go a long way toward helping you safeguard your earning power and your future. If you are a business owner, here are a few insurance products that you should consider.

Business Income or Loss of Rents

Commercial Property Insurance can cover loss of business income when damage that has occurred to the business premises (by a covered cause of loss), causes a slowdown or suspension of operations. It can include lost net income, continuing expenses, and even relocation expenses. This coverage is not always automatic, and needs to be added with specific limits.

Cyber Liability

If your business stores sensitive or non-public information about employees or clients on your computers, servers or in paper files, you are responsible for protecting that information.  If a breach occurs either electronically or from a paper file, a Data Breach Policy will provide protection against the loss. Cyber breaches have increased over 45% in the last year. 30% of breaches occurred in firms with less than 100 employees. Every state has laws regarding notification of breaches which cost as much as $200 per person per breach.

Commercial Umbrella

If you operate a thriving business, your Commercial Liability Insurance may not be enough to protect yourself in the event of a loss. We recommend you consider adding a Commercial Umbrella Policy to protect yourself. A well designed Commercial Umbrella Insurance Policy is one of the main lines of defense in today’s increasingly litigious society. For a reasonable premium, a Business Umbrella Policy adds another layer of protection to any of several other policies that you might carry including General Liability, Employer’s Liability, and Hired and Non-owned Auto Liability policies.

Errors & Omissions Insurance

Errors and Omissions, also known as Professional Liability Insurance, helps to protect your business from lawsuits and claims which may occur as a result of providing professional services or not delivering on a commitment or promise.  If you provide any kind of “professional” services you need to consider this insurance.

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.

Insurance Problems To Avoid

There are many insurance myths floating around, and most of them have been around for years. We want to respond to these myths with clear information, so that you can make educated decisions about your insurance purchases. Roussel Insurance is here to help you understand your risks and to provide options.

Myth One

Having two agents is better because they keep each other competitive.

Having two agents duplicates effort and can create coverage gaps and/or duplications. For example, there is certain coverage that can be included under a liability policy as well as under an auto policy. If you have two agents, who coordinates coverage? One agent is better able to manage your entire insurance program.

Myth Two

The lowest premium is the best option.

Premiums are determined by a combination of exposures and coverage. If you select the lowest premium you may be missing needed coverage.  For example, the lower premium may not include replacement cost coverage on buildings and equipment.

Myth Three

Buying from a national company is always better.

Don’t be mislead by entertaining advertising. Most national agents only represent one insurance company. They can’t shop your account to determine the best combination of price and coverage. Regional companies often have a better understanding of risks unique to your area. 

Myth Four

The internet is a great place to get insurance deals.

Low cost internet insurance may allow you to select the coverage and limits you think you need, but in most cases you end up with a limited and inadequate program.  Typically, you may only realize these limitations after you have an uninsured claim.

Myth Five

Umbrella insurance is only for high net worth companies or individuals.

A small electrical contractor was at fault for the total loss of a historic property; a loss that exceeded his general liability policy. The contractor’s umbrella policy paid the loss in excess of $7,000,000. Umbrella or excess coverage is some of the least costly insurance you can buy. Don’t risk a big loss for a small expense.

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Myth Six

There isn’t anything I can do to manage my insurance costs except shop price.

There are many things you can do to reduce your premiums; here are a few:

• Consider increasing your deductibles
• Maintain good credit
• Develop a safety program at your work site
• Consider the vehicle when make a purchase, some are more expensive to insure
• Add monitored smoke and security alarms to your home or office
• Ask us about the many different discounts offered by our insurers

Call Roussel Insurance today.

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.