Archives June 2015

The Three Sides of Directors and Officers Insurance

Many insurance coverage plans are complicated and somewhat difficult to understand. This very trait can sometimes allow the coverage to be as comprehensive as possible, taking into account many different types of liability. One key example to illustrate this point is Directors and Officers insurance. This insurance has three sides: side A, B and C.

Side A

Side A coverage applies when the directors and officers of a company are not indemnified by the company, and are sued. This side of the coverage takes into account and protects each director and officer’s personal assets, so that these individuals do not bear the financial burden of certain suits directed at them.

Side B

Side B coverage, on the other hand, comes into play when the company does indemnify or compensate their directors and officers in the event of these suits. In this case, the Directors and Officers insurance coverage can compensate the company itself for the suit, rather than compensating individual executive officers.

Side C

Finally, there is side C coverage. Side C coverage responds to the circumstance in which the company itself has a claim brought against it. This component of the insurance helps to make sure that the company is compensated for these financial losses.

Overall, sides A, B and C each provide coverage for different circumstances. When the three are combined together under a single insurance plan, they can jointly constitute truly comprehensive Directors and Officers insurance coverage.

Protecting Your Business' Assets At All Costs

Owning and operating any business involves making a lot of risks and investments. While it is normal to take on certain risks in order to gain big returns, without the right amount of research and protection, your risk could cost your business a fortune. Make sure that your business policy also includes a directors and officers liability policy to be safe.

Sufficient Coverage Starts at the Top

Even though your board of directors and officers is not normally involved with the public or in any dealings with the customers, their decisions do have a big impact on how well your organization runs on a daily basis. When disagreements arise, and legal action is taken, you don’t want your directors and officers to end up footing the bill. Without proper insurance coverage, you leave them vulnerable, and that also leaves your organization vulnerable.

Protect Your Assets

Your company’s directors and officers are assets. All assets must be protected against every kind of perceivable threat possible. The best way to do that is to purchase a good directors and officers liability policy. This type of policy helps to offset the cost and damage of any litigation and allegations.

Since every organization has its own needs, contact a credible insurer to learn how they can provide your organization with the liability coverage it needs. An agent can work with you to prevent any loopholes in coverage that could potentially hurt your organization.

Does Your Nursing Home Insurance Protect Against Residents' Rights Claims?

Most nursing homes employ carefully designed policies to protect residents from rights violations and employees from wrongful claims. Still, these policies cannot always prevent misconduct or false allegations. This makes having appropriate insurance for nursing homes and residents’ rights claims essential. If you run a nursing home, you should consider the following points to ensure that your coverage is adequate.

Are Specialized Employees Protected?

Specialized staff, such as beauticians and barbers, may not be covered under your general liability policy. These employees may face claims involving burns, cuts, scalp damage and other physical injuries. Typically, these claims are only covered under a specialized professional liability policy, such as a Barbers and Beauticians policy.

Is Alleged Abuse Covered?

Many insurance policies explicitly exclude residents’ rights violations that involve physical or sexual abuse. Unfortunately, these are usually the incidents in which insurance for nursing homes is needed most, since defending against these charges or paying damages can be costly. It is important to make sure that your policy offers protection against all relatively likely claims, including incidences of abuse.

Does the Policy Reflect the Current Climate?

With the elderly population increasing and nursing home staffing shortages becoming more common, elder abuse presents a growing issue. The family members of older adults are also more sensitive to potential rights violations than ever before. These factors can make it difficult for nursing homes to fully mitigate the risk of claims.

Given these changes, it is critical to choose insurance coverage that fully addresses this threat. Even if you already have a strong policy in place, it is essential to regularly review it or seek a professional opinion to ensure that you are not leaving your business exposed to damaging claims.

3 Reasons to Have Construction Insurance

As a general contractor, you know that the right tools are essential for getting the job done correctly. When running your own business, you need certain tools in order to keep yourself and your business functioning smoothly. If you have been wondering whether or not to visit a Newton construction insurance agency, the following reasons should help you make up your mind.

Protection for Your Clients

Without a quality insurance policy specifically tailored for contractors, your clients could face risks. Accidents on a jobsite could result in litigation, but an insurance policy can protect you and your clients from potential loss.

Protection for Your Employees

Almost every construction site has dangers. Your employees face the possibility of injury on a daily basis, but adequate insurance coverage can cover medical bills or missed wages when necessary. Unforeseen costs can add up quickly if you and your employees are not prepared for the future.

Protection for Your Property

Chances are you own your own expensive tools, equipment and machinery required in your field of the construction industry. Gear is often damaged on-site, but a Newton construction insurance agency can help you get the coverage that you need to pay for repairs or replacements.

You wouldn’t do business without a fully functioning tool belt, so don’t attempt to run a construction company without the insurance policy you need to feel secure.

What Is Covered By a Directors and Officers Policy for Private Companies?

A policy that protects directors and officers for private companies typically covers the costs of a legal defense, investigations and settlements.

Legal Defense

Lawyer’s fees and court costs quickly add up. For complicated cases, it can take months or even years to reach a final decision. Defending against a legal claim can still be expensive regardless of any fault found. In a case involving allegations of wrongful acts by a firm’s officers and directors, these costs may become the responsibility of the individual managers themselves. This liability insurance provides managers with the legal defense they need and allows them to continue focusing on their responsibilities.

Investigations

An allegation must be proven to have any legal significance. While some forms of evidence may justify a filing, a thorough investigation is often necessary to prove a claim. These investigations may include expert testimony, witness interviews and a review of past records. While this research may be critical for a defense, costs quickly escalate. Protection under a D & O policy often includes provisions for the expenses of investigations.

Settlements

In some instances the settlement and negotiations are covered by the policy. An amount determined to satisfy the wronged party is paid up to the policy’s limit. In instances where officers and directors are not specifically indemnified, this protects the personal assets of the firm’s top level managers. It also helps to reduce the costs the firm incurs as a result of a judgment or settlement.

It is important to have a properly structured policy specifically designed to meet the needs of directors and officers for private companies. Speak with a licensed agent to create a plan for your company.

Do You Need Motor Truck Cargo Insurance?

The Federal Motor Carrier Safety Administration may not require you to carry motor truck cargo insurance, but can your business afford not to? If the load you carry from point A to point B is damaged, who would be held liable? Depending on the contract you have with the shipper, it could be your company. For many cargos, the shipper may require that a trucker to have this insurance before you take the load.

Motor truck liability insurance varies by the type of load. Some items, such as clothing, electronics, and liquor have higher risks, which will make the insurance coverage have higher deductibles and sub-limits. There may be exclusions on a policy that takes off coverage for certain types of property damage. It’s important to you to know the exclusions and limitations of every insurance policy that protects your business. Logistics providers should work with the insurance agent to make sure that it provides the most effective coverage for the load and trip.

Purchasing motor truck cargo insurance is a complex underwriting process. To get the best coverage, make sure you work with an agent and company that specializes in this type of policy. Your cargo is vital to your business. Replacing it in the worst-case scenario would be expensive and cripple your financial security. Take care of your company and protect your hard work with the right insurance.

Three Compelling Reasons You Need Solid General Liability Coverage

Running a business is hard work and doing it right can yield incredible rewards, benefits, and successes. For any company, no matter what industry they are in, having proper General Liability Insurance in New York is a critical component to adequately protect against risks. With sufficient coverage to effectively mitigate risks and protect against exposure, you can confidently provide your product or service and not waste time fighting costly claims.

  1. Protection – The right policy doesn’t just protect your company and your assets, it is also beneficial to your customers. No matter the job you are undertaking, your customers can feel good about their safety because your company is protected against claims associated with issues like injury or property damage.
  2. Variety – The business you run requires customized details to properly mitigate against the unique risks of your industry. Solid General Liability Insurance in New York will offer much variety in areas including restaurants, manufacturing, and hospitality to name a few. This enables you to select a plan that will perfectly fit the needs of your organization.
  3. Confidence – Adequate coverage does more than reduce loss, protect against claims, and strengthen your brand. It also provides businesses with the confidence and peace of mind that comes with protection. This means you can focus more of your energy and resources on building a great product or service for your consumers.

Reliable General Liability Insurance in New York means protection, variety in coverage types, and the confidence that comes with dependable protection.

Reasons for Workers Compensation Insurance

Any business owner knows that workers compensation insurance is a major part of any corporate insurance plan. There are many different reasons why this type of coverage is important to get, ranging from legal requirements to loss reduction.

Legal Requirements

First of all, workers compensation programs are required by law in almost every case. Businesses both small and large need to have workers compensation in order to obtain a business license that allows the company to operate legally. The requirements differ from state to state, but consequences for not having a plan can include everything from fines to business closure.

Employee Morale

Workers compensation is a good idea for other reasons, too. For one, it helps boost worker morale and thus productivity, because workers know that they will be taken care of in case of an accident and thus feel more secure and confident. For another, workers compensation is an essential part of attracting new employees to your business.

Return to Work

If something does happen to go wrong, then workers compensation can help reduce the damage to both the company and the employee. A workers compensation payment can help cover medical bills, helping the employee heal faster, get back on their feet, and return to work quickly. This minimizes downtime and increases the ability of the company to run smoothly. Workers compensation insurance is a good idea for many reasons, both legal and financial.

3 Ways a Good Commercial Insurance Agency Stands Out From the Rest

When you’re looking at insuring your business you want to make sure that the agency you decide to work with is reputable and customer service oriented. There are certain factors that will make a commercial insurance agency stand apart from the rest. Here’s what you need to consider as you shop for insurance for your business:

  1. Can the Agency Cover all Your Needs? – There are a lot of different types of businesses out there, so not every business needs the same types of insurance. Does the agency you’re considering have the coverages that will be best for you? Consider what your business needs as you make this decision.
  2. Does the Agency Consider Your Business? – There are a lot of policies available, and you may not know exactly what your business needs to succeed. Will the agent you’re working with help guide you through the tough choices? It’s nice to know that the people you’re working with are looking out for you. Consider working with an agency that will take the time to get to know your business, so they can better serve you.
  3. Is the Agency Convenient for You? – It’s nice to work with people that are just right down the road. They know your community, and that may help them to better serve you. Does the agency you’re considering have a local branch? Local people will better know what insurances you need for your state, and they’ll be easier to contact.

No matter how far you are in finding a commercial insurance agency, it’s always good to be reminded of what’s important in an agency. These three tips will help you find the best company to work with.