Top Business Insurance Risks

Top Business Insurance Risks

According to insurance experts, here are the top five business risks:

The Allianz Risk Barometer surveyed more than 500 risk managers and corporate insurance experts in 47 countries, to identify the primary challenges facing businesses this year.¹ 

While these are responses from large corporations, we take away many applications for medium and small businesses. Here are some of the risk issues for 2015.

1. Natural Disasters – These issues are always a concern for small and medium business. We can offer flood, earthquake and wind insurance as your needs arise.
2. Cyber Liability– Cyber liability and data theft is one of the hottest topics for businesses, risk managers and insurance companies. 2014 had some of the biggest data thefts that we have seen. But even more interesting, is that small businesses are exposed more than large businesses. In fact, 25% of data breaches affect businesses with less than 50 employees. A small business has a greater chance of having a cyber breach than it does of having a fire.
3. Government mandates and regulations – There continues to be increased oversight from government in healthcare and financial reporting that creates new risk and liability for businesses.
4. Political and Civil Issues – As seen in 2017, political and civil issues have a direct impact on many small businesses. Having the right kind of business insurance is important to protect your business in the event of civil riots.
5. Business Interruption – If your business has a loss and you are unable to operate for a period of time, you will need financial resources in order to get back in operation. You may even need to continue payroll for a period of time. Business interruption insurance can provide these resources.

Your Private Business Is Exposed to Directors and Officers Claims

Directors and Officers (D & O) Liability Update

Every business, no matter what the size, has a D & O exposure.  Some people may mistakenly think that D & O risks are just for large firms, but actual court cases tell a different story.  D & O claims come about because of decisions made by the firm’s officers and employees.  Claims can come from employees, competitors, investors, and the government.  Most of these kinds of claims are not covered under a standard commercial insurance policy.

Here are some interesting facts brought to you by the Insurance Information Institute:

• Over 53% of privately held firms have had D & O related claims.

• Twenty-five percent of companies have had an employment related claim.
• The average defense cost for a D & O claim is around $75,000.
• Firms with less than 50 employees have the same percentage of claims as larger firms.

Here are some of the kinds of claims to which your business is exposed:

Misrepresentation

If you misrepresent your company’s services, financials or other information, third parties may sue you for your actions.  This can include services you say you provide on your webpage or financial information you provide to a lender.

Breach of Duty

Your firm’s officers and employees are required to carry out their duties with a standard of honesty and professionalism.  If these legal duties are breached, you are subject to litigation by the injured party.

Employment Issues

Your employees can sue the business for a variety of employment issues that can be covered under a D & O or employment practices liability policy.

The Latest From The Equal Employment Opportunity Commission (EEOC)

The Latest From The Equal Employment Opportunity Commission (EEOC)

The EEOC just released the latest numbers relating to employment claims, and they remind us of the need for employment practices liability insurance.

• Retaliation was the most frequently filed charge with the EEOC in 2018, followed by race and disability.
• Sexual harassment charges with the EEOC increased by 13.6%, based on preliminary 2018 results.
• Monetary awards recovered for victims of sexual harassment increased by 47.4%.
• The #MeToo movement and resulting publicity have caused visits to the EEOC sexual harassment website page to more than double over last year.

We can offer a very comprehensive and affordable Employment Practices Liability Insurance (EPLI) products available in the industry today.  Coverage can include protection against allegations of discrimination, harassment, wrongful termination, and retaliation. Coverage can be further enhanced to include Wage and Hour and Third Party Wrongful Acts. 

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.

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.

2019 Business Predictions

A Business Insurance Update

2019 is set to be a very good year for businesses.  We can count on many business-friendly policies and administrative rules that will help businesses. In addition, many communities are promoting local businesses. Finally, there will be many large retailers closing their doors in 2019, and this might be a good thing for local businesses.  Finally, the economy is still strong, meaning more people are buying goods and services.

One of the biggest risks faced by businesses is the unintentional violation of laws and regulations. If you violate a law or create a legal issue with another person or business, your business insurance may or may not respond.  We recommend that allow us to complete a review of your business insurance to make sure that you have the proper business insurance.

We also recommend that you develop a social media policy for your company.  It may be better to hire an outside firm to manage this risk.  Employees should be aware of the effect their actions may have on their images, as well as the company’s image.  The information that employees post or publish may be public information for a long time.

Every business is at risk for a cyber breach. Even the White House recently experienced a cyber breach. Cyber breaches are now a fact of life, and every state now has mandatory requirements for data breach notification. Statistics show that 39% of all cyber incidents affect businesses with fewer than 100 employees.  If you store data, including private information on computers, use e-mail, generate revenue online, or use your computer to control production, manufacturing, or inventory, your company is at risk!

Today, almost any business can find itself facing a liability lawsuit.  Many businesses do not even realize they have an exposure to professional loss.  A Management Liability lawsuit can put business and personal assets at risk, including the company’s assets, and even the personal possessions of the owners.  One simple mistake could cause financial devastation, as well as end your professional career.

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.

Are You Starting A New Business?

We know choosing the right insurance for your new business is an important decision. Roussel Insurance has the experience to market your insurance and provide you with options for your business. Whether you’re a store owner, distributor, office professional, or wholesaler, you need insurance to protect you against the unique risks and exposures you face so you can tend to your new business and be rest assured that it is protected. Here are the types of insurance you should consider when selecting and designing your business insurance:

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

Example: A customer slips on your driveway, trips on your steps, or injures himself on your premises, or customer is injured as a result of your product or service.

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

Example: A fire destroys your entire building and equipment.

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

Example: An employee steals money from your company.

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.

Example: You own a delivery company, and an employee is injured while making a delivery.

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

Example: You’re a beverage distributor making a delivery in the company van when another vehicle runs a stop sign and hits you.

Non-Owned Auto Coverage: Protects the company for vehicles owned or used by others (such as an employee) that are used in the business of the company.

Example: One of your deliverymen is driving his personal automobile to make a delivery and hits another vehicle.  This results in a lawsuit against your company.

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.

Example: You are an architect and one of your buildings has developed a mold issue due to poor roof design.

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.

Example: A major storm hits and your restaurant is completely flooded. You have to close for a month to repair all of the damage.

Equipment Breakdown Insurance: Provides coverage for the accidental breakdown of equipment.

Example: A power surge damages your computer network.

Each company has its own circumstances which dictate what would be needed to safeguard the years of hard work in building a successful enterprise. We will guide you through different scenarios to see what effects it would have on your business and what solutions are available. It may be as simple as a Key-Man Policy or funding a Buy-Sell Agreement with Life and Disability 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.

California Business Insurance

It is a good idea to review your business insurance program every year

Every business, like a person, needs checkup from time to time.  As your business grows or changes, your business insurance should too.  If your business changes, there could be the possibility that you may not have the right business insurance coverage, and that can lead to an uninsured claim.

What does a business insurance check-up look like?

We will review your policies and compare them to your operations to make sure that you have the coverage that matches your risk.  We will also review the following questions:

• Have you added any new locations?
• Do you design, sell, or manufacture any new products?
• Did you update or remodel your facility?
• Did you make any investments in your business?
• Have you added transport or delivery services?
• Have you sold any personal property or equipment?
• Are you expanding your services and/or your client base?
• Have there been any changes in ownership?

Established by company president John Roussel in 1985. Roussel Insurance & Financial Services was founded to assist business owners and professionals in their insurance and employee benefit programs. Our mission is to give you the peace of mind that your business and personal assets are properly safeguarded. Each business and individual has its own circumstances which dictate that would be needed to safeguard years of hard work.

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 You Control Your Business Risks

We Can Help You Control Your Business Risks

There is no question that operating a business comes with certain risks. But there are also many benefits. The range of business threats is evolving rapidly but your organization can thrive and gain a competitive advantage if you know how to manage your risk. Here are a few simple ways to manage risk:

Follow insurance company loss control recommendations. These are designed to reduce the probability of a loss and to reduce the severity if a loss occurs.

Develop an employee handbook. Having a set of procedures involving roles and responsibilities will help reduce employment issues in the long term.

Evaluate your facilities. Unused equipment, obsolete security systems and lack of attention to risks on the site present significant potential for loss.  Insurance companies encourage all business owners to maintain clean and safe premises for the health and safety of employees, vendors and customers.

Make safety a priority. Having a safety program can not only reduce your costs but will improve employee productivity.

Train your staff. Employees perform better if they have an understanding of what their roles and responsibilities are. Make safety part of every job description.

Keep employees healthy. A local company, for example, has instituted a comprehensive wellness program that includes disease management for afflictions such as asthma and diabetes, as well as offering flu shots, cancer screenings, smoking-cessation sessions and a round-the-clock phone line staffed by nurses. The company found that for every dollar it invested, it saved $4.23.

If your business changes, your insurance should too.  Meet annually with us to determine whether your business has changed in significant ways that require modifying or adding coverage.

Raise your deductible. Raising the deductible on your insurance usually lowers your premiums. Even if you end up having to pay the deductible, it’s likely to be less than the amount you save.

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 you Control Your Business Risks

We Can Help you Control Your Business Risks

There is no question that operating a business comes with certain risks. But there are also many benefits. The range of business threats is evolving rapidly but your organization can thrive and gain a competitive advantage if you know how to manage your risk. Here are a few simple ways to manage risk:

Follow insurance company loss control recommendations. These are designed to reduce the probability of a loss and to reduce the severity if a loss occurs.

Develop an employee handbook. Having a set of procedures involving roles and responsibilities will help reduce employment issues in the long term.

Evaluate your facilities. Unused equipment, obsolete security systems and lack of attention to risks on the site present significant potential for loss.  Insurance companies encourage all business owners to maintain clean and safe premises for the health and safety of employees, vendors and customers.

Make safety a priority. Having a safety program can not only reduce your costs but will improve employee productivity.

Train your staff. Employees perform better if they have an understanding of what their roles and responsibilities are. Make safety part of every job description.

Keep employees healthy. A local company, for example, has instituted a comprehensive wellness program that includes disease management for afflictions such as asthma and diabetes, as well as offering flu shots, cancer screenings, smoking-cessation sessions and a round-the-clock phone line staffed by nurses. The company found that for every dollar it invested, it saved $4.23.

If your business changes, your insurance should too.  Meet annually with us to determine whether your business has changed in significant ways that require modifying or adding coverage.

Raise your deductible. Raising the deductible on your insurance usually lowers your premiums. Even if you end up having to pay the deductible, it’s likely to be less than the amount you save.

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 Build A Good Relationship With Your Insurance Company

How To Build A Good Relationship With Your Insurance Company

Commercial insurance is about developing relationships between the insurance company and the customer, or business. The more your insurance company knows and understands your risk, the lower your premium will likely be. Unlike personal insurance, commercial insurance premiums are developed using some level of individual judgment on the part of the underwriter. Underwriters can debit your premiums by 25% in most cases. They can also credit your premiums by 25%. That is a 50% swing in premium that is at the discretion of the underwriter.

We have found a number of key strategies that you can utilize to help you get the attention you deserve. These may not be necessary for every business. The larger the premium, the more of these you may want to consider.

• Have a comprehensive safety program and provide an outline of that program.
• Know where your losses are occurring and have a plan to address them.
• Use an agent who can put together a complete and quality proposal.
• Create a short profile of your firm. The profile should include a sales and marketing plan, the firm’s mission statement, goals and objectives, history, organizational chart, key employees, agency marketing materials, and top 10 classes of business.
• Be open and honest about your operations.

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.

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.

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.