Entries Tagged 'Sign Of The Times' ↓

Will you be hosting a company picnic this summer? Perhaps you’re renting out a facility for a fun afternoon for employees and their families. Or holding a fall fair? These events can be great for morale and team building, but they also involve risk. Be sure to cover all your company liabilities with the proper insurance. Consider special event insurance.

What does it cover?

Special event insurance protects you from third-party claims in case of bodily injury or property damage. For example, if an employee’s child breaks an arm on the obstacle course, or an employee’s date sprains an ankle on the dance floor, you’re covered in much the same way that you would be under general liability insurance.

What should you add?

In addition to third-party claims, your coverage can be tailored to include other needs. You can add property insurance to protect company equipment or the space used for the event, and cancellation insurance to cover costs for postponing or canceling due to weather or other issues. It’s also wise to have employers’ liability insurance in case an employee (not considered a third party under special event insurance) were to sue for an injury or illness that happened at the event.

Are you a party animal?

If you will be hosting more than one event this summer, you may want to create a policy that covers several months and includes coverage for multiple events. Policies can be written for one day or up to one year. My office can suggest the best option for your company.

If a thief breaks into your house and steals your TV, your homeowners insurance policy usually covers your losses. But what about a business burglary? Will insurance save you from these thieves?

Typically, yes. A business owner policy (BOP) covers theft. However, it does work a bit differently from homeowners insurance by providing additional protection business owners need. In addition to theft, fire, and liability, a BOP includes business interruption insurance.

If a thief walks away with the tools you need for construction work, the computer required to run your office, or the inventory you rely on for sales, your policy will help cover your lost operation time. It will keep money coming in while you are unable to run your business.

But like homeowners insurance, business owner coverage offers either actual value or replacement value for reimbursement of stolen property.

If you receive actual value, you will get the worth of the item(s) minus depreciation. With replacement value, you receive the amount it will cost to replace the item. The type of coverage you have for your business helps determine the rate of the premium.

Each owner must decide which is the most cost-effective for his or her business. Consult with my office for advice on determining what is best for you.

Regardless of coverage type, you should keep complete records of all items at your business site. This can include receipts, photos, or a video documenting what is on the premises. This will provide proof for your claim and help expedite the process.

Increasing numbers of businesses are striving to reduce the size of their carbon footprint. While these efforts to go green save valuable resources in the long run, their initial setup can be costly.

For example, under traditional commercial insurance coverage, replacing or repairing old equipment with more environmentally friendly parts is not fully covered. Reimbursement is based on the value of the original equipment, which is typically lower than that of its green counterparts.

However, in response to these growing green needs, many insurers are now offering green endorsements that businesses can add to commercial property policies.

Green materials and equipment endorsements cover the higher cost of environmentally certified materials and equipment. It includes coverage for the difference in cost if your previous equipment was not green certified. If you must rebuild, the policy can also allow you to elevate your building to green certification status.

Green construction endorsements cover all miscellaneous costs involved with green construction, including design, engineering, certification fees, and recycling. Additionally, some insurers offer discounts for hybrid and electric cars if used for commercial purposes.

Some aspects of going green may require business owners to increase their coverages. For example, because green construction typically takes longer than traditional construction, business owners may want to extend their business interruption coverage.

They may also wish to increase overall property coverage if new environmental features are added.

Contrary to popular opinion, asbestos is still around: asbestos liability remains one of the biggest threats to U.S. businesses, and the insurance industry estimates that asbestos-related losses could go as high as $85 billion. Here are the ABCs of asbestos – something you may not have thought you’d need to know about:

Asbestos: Naturally occurring in the environment, asbestos is a group of minerals that exists as bundles of fibers, which can be separated into threads. Because of their durability and resistance to heat, fire, and chemicals, asbestos fibers have been widely used in many industries, including construction, shipbuilding, and automotive.

After heavy use in many products, asbestos was discovered to be a health hazard. Consequently, the use of asbestos has been greatly reduced. However, older products, especially older buildings, still contain asbestos. It is still legal to use asbestos in some applications, providing the product contains less than 1% asbestos.

Business insurance: Asbestos can prove costly to business owners whose employees use or regularly encounter it. Be aware of safety regulations, and implement them, using the help of employee education programs. Liability lawsuits are still being filed by individuals exposed to asbestos, and liability insurance is a must-have – not a should-have. Check with my office to ensure your coverage is appropriate for your level of risk.

Claims: The initial discovery of the harmful effects of asbestos resulted in a surge of claims. By the 1990s, it seemed this wave had passed. Recently, though, it has resurfaced. Business owners should be prepared with proper insurance.

Terrorism insurance coverage is not what it used to be. Prior to 9/11, business owners got terrorism coverage free or for a small fee. Events of the past fifteen years have changed this.

As of 2002, the Terrorism Risk Insurance Act set out insurance coverage basics for terrorist attacks.

The act established that commercial property owners must be offered a terrorism coverage option. Private insurers provide the commercial policy, but it is reinsured by the federal government.

Premium rates are based on risk for attack. If your business is located in or near a potential target for terrorism, rates are higher.

A policy for a large business in an urban area may costs thousands per year, while less vulnerable areas can see annual premiums of just $25.

It is up to the Treasury Department to administer the program and officially declare whether an event is a certified act of terror – only then is compensation provided for the losses.

If an act is certified as terrorism, a business owner’s terrorism insurance kicks in to cover property damage or losses caused by the attack.

These may include damages to structures and/or vehicles and injury or death of workers. Nuclear, biological, chemical, radiological, and war events are not covered.

Currently, 60 percent of business owners in the U.S. carry terrorism insurance. Should you? Consider the following:

• Are you located near a potential target?
• What is at risk? (Do you have a lot of property, vehicles, and employees?)
• What is the policy cost?