Liability Insurance is Not One Size Fits All
Making sure you have the liability insurace coverage you need is an important role of your agent. We collaborate with you to discuss your business operation and discuss exposures and risks to your business. We work together to create the risk management plan that fits with your priorities and goals.
A typical combination of insurance coverages could have some of these policies included:
Professional Liability (E&O)
Directors & Officers Liability
Employment Practices Liability
Premises/operations coverage pays for bodily injury or property damage that occurs on your premises or as a result of your business operations. For instance, if someone falls and gets hurt while in your business location, it’s covered.
Products/completed operations coverage pays for bodily injury and property damage that occurs away from your business premises and is caused by your products or completed work. For instance, when cars or car parts are recalled, that is products liability. Remember the Tylenol recall? Also product liability. Personal and advertising injury coverage is much more intangible than the coverages above, but the bottom line is this coverage is triggered when there is an act that somehow violates or infringes on the rights of others.
Mistakes happen. E&O protects your business when someone alleges failure to perform on the part of, financial loss caused by, and error or omission in the service or product sold.
It’s liability insurance that protects professionals who provide advice and services to individuals and companies. Defending yourself is expensive. This policy provides the resources to do it without bearing the full cost.
There are so many different ways to be sued as a business owner or a board member of a business. Any management decision that results in adverse financial consequences to anyone can result in a claim. Some examples are breach of contract, wrongful interference with a contract, unfair trade practices, consumer protection violation, and breach of fiduciary duty. Even if the lawsuits are dropped or settled outside of court, attorney fees can be high. D&O insurance limits the liability, so that the personal assets of each director or officer are not compromised. And in return, the leadership of your company thanks you very much.
Did you know that the Target cyber hacking incident triggered their cyber insurance and their D&O insurance? Management is responsible to make decisions protecting their customers’ information. D&O is very critical coverage.
Employment Practices Liability is coverage for reality – it protects against claims made by employees (current, former, and even potential) for discrimination, wrongful termination of employment, sexual harassment, and other employment-related allegations.
Your employees represent your company, and you can be held responsible for anything they do, good or bad. Did you know that if one of your employees offends anyone – be it a customer or a stranger – you can get sued? For example, a woman filed a harassment claim against the employee of a gas station who harassed her while she was getting gas.
Employment Practices Liability is a necessity for any company that hires employees (even if it’s just one or two).
Cyber liability arises out of unauthorized use of, or unauthorized access to, electronic data or software within your network or business. Policies provide coverage for liability claims for spreading a virus or malicious code, computer theft, extortion, or any unintentional act, mistake, error, or omission made by your employees while performing their job. Cyber insurance is a misnomer – this is really information risk insurance. If personal information gets disseminated into the public, there is an incident.
Do you really need cyber insurance? What would you do first? Who would you call? Do you know what the laws are? It can get overwhelming fast. A study done by FireEye, Inc. found that during a study of 1,200 websites, an average of 97% of the websites were breached.
This insurance can cover forensics involved in determining if there was a breach and the severity of it. Business interruption from a network attack, the cost of responding to customers, and insuring regulatory compliance in case of a breach are also covered.
Before pursuing this type of coverage, it’s a good idea to conduct a top-to-bottom review of your security measures and put in place those protections that will lower your potential premiums, such as anti-virus software and firewalls.
Auto liability coverage protects your company by insuring all vehicles that are owned, leased, hired, or borrowed for business purposes, whether it’s a passenger car or truck, trailer, semi-trailer, or commercial vehicle. Simply put, it will protect you as a business if someone driving a car that is owned by the company causes an accident. This protection includes liability to third parties and property damages for the vehicle itself.
Auto insurance seems like it should be as simple as making a phone call, but for a business, there are some details to consider (don’t worry – we’ll walk you through this):
- Are the vehicles titled to the company?
- Are employees driving the company vehicles or their own?
- What are the limits on your employees’ personal policy?
- What does the company manual say about cell phone usage while driving on company business?
- Are you checking your employees’ driving records periodically (with their written acknowledgement)?
- Where are the vehicles garaged at night?
- What level of deductible do you want?
- Do you have a safety program or safety devices on the vehicles?
- Are you hauling cargo? Does it belong to you or someone else?
Let’s discuss and find the perfect business auto policy for you.
“Brian and Kim Hutson strive to go above and beyond answering and explaining any questions we run into and it shows. They allow our company to feel completely at ease knowing that we have been giving the best coverage and price possible.”
~ Leah Myslewiec, JME Leasing, Dallas, Texas