Entries Tagged 'Commercial Insurance' ↓

Between insurance premiums and claim payouts, this figure could be significant. But by improving safety measures in your business, you can significantly impact this cost.

To keep these expenditures down, many business owners are turning to technology.

Today’s tech often gets a bad rap (“Employees are on their smartphones instead of working.” “Robots are stealing jobs.”) But technology can also prove useful in making work environments safer and reducing costs. Following are a few tools that business owners can implement in their company operations to cut risk. The results should be lower insurance costs and safer employees.

Instant access – Upload manuals, instructions, and safety reports to your company website, and allow employees to access this information easily on tablets and phones while on the job. They can quickly reference the appropriate procedures for potentially dangerous situations. In case of an accident, they can easily and instantaneously complete required reporting.

Apps – Most employees now carry smartphones, and many apps are available to boost on-the-job safety. With the addition of a few apps, a smartphone can also be a flashlight, a level, or another tool. Does your business have a unique need? Work with an applications developer on the perfect app for your employees to make their jobs easier and safer.

Cameras and video – Surveillance cameras can help protect against break-ins and theft, but portable cameras and videos can do so much more. They can record safety walk-throughs for future reference and review, take pictures of hazards to report them, and photograph accident sites for accurate, instant reporting.

Drones – In addition to handheld or hard-hat-mounted devices, drones are great tools for photographing or recording a worksite for safety evaluation. Reviewing these images allows analysis of risk factors that could pose safety concerns or cause errors.

Personal sensors – Like boots, hard hats, safety harnesses, and vests, sensors can be used as personal safety equipment. These can let employees know if they have been standing too long or their heart rate is too high.

Site sensors – Sensors can be set up in at-risk areas of worksites to detect specific safety concerns: they can alert employees if they are in an area where it’s too hot to safely work, or alert them to potential hazards ahead that may cause slips or falls.

Self-driving vehicles – Unmanned trucks and cars are still a fairly new idea, but are quickly gaining acceptance. Construction crews in particular are interested in applying this new technology. Drivers of roadwork vehicles are often in danger of being struck by passing traffic. Removing drivers from these trucks would eliminate this safety hazard.

What technology could benefit your business? A quick review of your recent incidents may reveal where you need to beef up safety protocols. Once these at-risk areas are determined, consider what technology could improve employee safety in those situations. Spending a bit on technology could save you a bundle on your workers compensation claims.

Reduce risk: Fewer claims = savings. Set up procedures that prevent potential claims. Burglar alarms, employee training, and slip-and-fall precautions are great examples. Make a list of your biggest potential losses from accidents, and set up ways to prevent or minimize them. Having the appropriate measures in place will keep your operations running smoothly and your insurance costs low.

Bundle it up: Small businesses are often eligible for a business owner’s policy (BOP). This typically bundles your general liability, property, business interruption, and other riders together in one policy at a discounted rate. Check with my office to see if your business qualifies. Common requirements include a business location and a low-risk profile.

Classify correctly: There are hundreds of worker’s compensation class codes that correspond to various positions. Each has its own ranking for potential risks, and each has its own price. Since your worker’s comp premium is based partly on your class codes, be sure you have designated each employee correctly. Don’t overpay by placing employees in a higher-risk code than required. It might seem simpler to tag everyone under one code, but this is rarely the right move.

Lump your sum: Many business owners pay for their coverage on a monthly basis. This is often done for budgeting purposes. However, paying annually might save you money. Ask about payment plan options that could reduce your overall cost.

Revise restrictions: What are your current policy deductibles and limits? Have you reviewed them lately? If you have fairly low risk, it could be worth taking on a higher deductible to lower your premium. If your business has changed in the past year, you may be able to lower your policy limits. Or if you need to raise your limits, an additional umbrella policy might be the best option.

Make it a habit to review your policies at the end of each year to see what changes might save you money in the next four quarters.

Strengthen safety: Consider beefing up your safety measures in the next year. A safe work environment reduces worker’s comp claims and liability lawsuits. Develop or strengthen safety-training programs. Ensure all new employees are properly trained in your safety measures. Host workshops and training sessions regularly to ensure everyone is engaged. Incentivize safety by rewarding employees who maintain good records.

Call my office: Don’t let the calendar flip without contacting your agent. A quick call to your provider could save you crucial dollars in the next year. Your insurance pro is a valuable resource. Keep lines of communication open as your business needs change. This will ensure your policies not only meet your current demands, but also take less of your hard-earned money.

Typically, contractors insurance will come into play if a business focuses on one or more of the following: construction, carpentry, plumbing, cleaning, electrical work, landscaping, painting, snow removal, and more.

These categories cover a wide range of businesses and needs. Since every business is different, insurance options range from standard policies to a mix of appropriate coverages. However, some issues are common to almost every contractor, including:

• Bodily injury and property damage: Many contractors work with heavy machinery and tools. If you do, or you hire workers who do, you should be concerned with potential accidents related to your equipment.
• Product liabilities: If you deliver a product or serve food, you must consider potential injuries to those recipients, and illness.
• Medical and disability: In addition to the safety of others, it’s also important to consider an owner’s own health. An owner needs coverage in case of becoming ill or being injured.
• Errors and omissions: If you provide consulting advice, such as that provided by landscapers or others, you risk liability. Coverage is needed in case a client experiences loss as a result of the advice.

To cover each of these areas, companies will need an appropriate bundle of policies that meet the specific needs of the operations. Options include:

• General liability: This is the standard that everyone needs. It covers bodily injury and property damage. For medical costs, it covers anyone injured during the course of the work. For property costs, it includes the project contractors are working on plus third-party claims.
• Completed operations/products: This covers any products sold or distributed, as well as any issues caused on a completed project.
• Contract liability: This policy provides coverage in the case of a contract dispute. It may or may not be included with general liability coverage.
• Commercial vehicle: If vehicles are used in the business, companies need this coverage for asset protection, as well as providing coverage for accidents.
• Workers’ compensation: The regulations for workers’ compensation vary by region. In the case of solo contractors, it’s likely they won’t be required to carry this insurance, but it’s not guaranteed. Be sure to check with an agent about local requirements. If a company has employees, this coverage is needed to protect workers from injury, illness, or death. It provides for employees if they must miss work and for the contractor in case of an employee lawsuit.
• Professional liability: This is also known as errors and omission insurance. It protects the contractor in the event of an error that causes a client financial loss. It covers legal defense and settlements.

It’s common for businesses to change and grow. Contracting businesses can be particularly dynamic. As companies expand and develop, they need to maintain communication with their agents. Company owners should also review policies annually to determine their needs and make any changes necessary to meet those needs.

• Hacktivists – These tech pros are on a mission to make a political point or embarrass your company. Their actions can range from benign to seriously damaging.
• Criminal hackers – Not to be confused with hacktivists, criminal hackers are trying to accumulate funds illegally. Think of them as online thieves. Their hope is to find a way into your system to siphon your funds.
• Intellectual property threats – Hackers may seek out technical plans, blueprints, patents, or other secured information. This intellectual property gives them access to sensitive information at a great cost to your business.
• Terrorism – These hackers aren’t looking for monetary gain, and they definitely aren’t playing an embarrassing prank. Terrorists may want to steal information that aids in a physical attack.
• Disgruntled employees – The other four types of cyber threats are all external; this one operates from the inside. An unhappy employee has access to passwords and other insider information and can use his or her insider status to inflict damage on your company.

Stop hackers in their tracks

To protect their companies and their employees, business owners must be prepared for these threats. However, it’s not about trying to avoid being hacked. You should expect these cyber threats to happen; no one can avoid them entirely. The goal is to make breaches as small as possible, and to act quickly to minimize damage.

Business owners should realize they can stop a hack in progress. Strong security and careful scanning can alert you to hackers’ activity. Hackers’ reconnaissance missions are often lengthy; on average, 240 days pass before they’re noticed. Try to spot them early to begin identifying who they are, what systems they’re in, and how you can cut them off.

Contain and act quickly

Once the hackers are ensconced, you need to implement a predetermined plan to handle the attack. It’s essential to have analytics and legal teams at the ready to intervene; if a plan is not already in place before a cyber threat happens, the proper resources cannot be moved quickly into place to handle the issue.

Something else to keep in mind is focus. Too often, companies and legal teams are worried about potential litigation later on. The initial focus must be on surviving the current threat.

Being aware of these potential threats can help business owners understand their vulnerabilities and prioritize protective measures. Because these attacks are nearly inevitable, company owners must take steps to prepare on all fronts.

Cyber insurance

A key part of your preparation is cyber insurance. These policies cover liability for data breeches, and they’re essential. Without insurance, a nasty cyber attack could bankrupt your company and destroy all you’ve worked for. Discuss cyber insurance with my office; we can help you select the coverage that’s best for your company.