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

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.

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.

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.

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.

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.

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.

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.

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.