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We don’t have to tell you that we are in a very competitive business environment. If your business is not growing, it will be hard to invest in new technologies and hire quality staff. The world of risk is also changing, and your business is exposed to new risks every day. New laws, societal changes, and new technology create these risks. To respond to these new risks, the insurance industry has developed a number of innovative insurance products to help your business.
Insurance Products to Help Your Business
Cyber Liability Insurance
Cyber liability insurance is designed to protect your business from financial losses due to a breach of personal information. The breach can be from an external threat or from an employee’s failure to protect client’s personal information. According to the Insurance Information Institute, your business has a higher chance of having a cyber breach than it does of having a fire. Cyber liability insurance also can cover the costs associated with the investigation, notification, offering credit monitoring to clients, regulatory compliance, defending litigation, and payment of any judgments. Cyber policies vary so it is a good idea to contact our office for a review of your exposure.
After 9/11, the Federal Government and the insurance industry joined to create a special coverage called terrorism insurance. All commercial insurance products exclude terrorism risks unless endorsed. The Terrorism Risk Insurance Act (TRIA) ensures that businesses can recover from a certified terrorism act. Under TRIA, all property/casualty insurers in the U.S. are required to make terrorism coverage available. (Source iii.org.com)
Business Interruption Insurance
Business Interruption Insurance covers loss of income or loss of rents if your business suffers a covered loss. If your business needs to shut down for a period of time, you may need income to replace lost revenue during recovery. Business interruption insurance can provide the funds necessary to facilitate recovery as quickly as possible. Some expenses you may use business interruption insurance for are ordinary payroll, utilities, rental expenses, and other normal operational expenses. A similar kind of coverage is called “Loss of Rents” and is geared toward property owners. Businesses that rent space have similar exposures that can be addressed through loss of rents insurance.
Directors and Officers Insurance
Directors and officers insurance is a coverage that every business needs. Businesses of all sizes have the risk of litigation, and the directors and officers of the company are no exception. Directors and officers insurance provides coverage for directors and officers, managers, and other executives for claims that may come from any legal liability as outlined in the insurance policy. The policy usually covers “wrongful acts” of the individual insured or the business itself. The coverage can include regulatory actions, litigation from third parties, and defense costs. Directors and officers insurance can also include management liability that picks up coverage for the broader organization’s legal liability arising out of professional liability exposures.
Equipment Breakdown Insurance
Equipment breakdown insurance covers insurance for mechanical breakdown of electric equipment, heating and cooling equipment, pumps, machinery, computers, and even communication equipment. The coverage usually applies to breakdowns caused by internal failure. The insurance will in most cases repair or replace the damaged equipment with new.
Environmental Liability Insurance
Environmental liability insurance can provide protection against losses arising from accidental release of pollutants into the air or on the land. Coverage may include clean up required by the Federal or Local Government, bodily injury, property damage, third-party claims, and legal expenses resulting from pollution or incidents. For the claim to be covered, the event must be determined to be accidental, not intentional. The Federal Government is constantly redefining what pollutants are and how businesses must manage their risk.
Lloyds of London
Lloyds of London offers businesses the opportunity to protect unique risks. Lloyds of London is an insurance provider made up of many “syndicates.” These underwriters have the ability to provide coverage for things like ships, aircraft, art, collections, goods and services being shipped around the world, and musician’s voices.
Employment Practices Liability
Employment practices liability can cover claims made by employees for actions that have violated an employee’s rights under various laws. The kinds of claims usually covered under an employment practices liability policy are sexual harassment, discrimination, wrongful termination, wrongful discipline, breach of contract, and many others.
Employment claims are one of the fastest growing claims types for businesses. An employment liability claim can cause distractions to management as well as be a financial drain. There are a number of things your business should do to reduce the likelihood of having an employment liability claims.
- Use a human resource professional to help you write your employee procedures.
- Develop anti-discrimination procedures.
- Train all managers and employees on your policies and procedures.
- Make sexual harassment reporting mandatory.
- Always document all issues and investigate accordingly.
Leap/Carpenter/Kemps insurance is prepared to help your business review your risks and then develop a custom insurance program. Our team has access to many markets and programs that will allow us to deliver to you the best possible business insurance program possible.