Tag Archives: liability

Dec 12 2013
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Business Insurance

What Types of Insurance Do Small Businesses NEED?

????????????????????????????????????????Every year in the United States, 600,000 new businesses are started. There are many reasons people start their own small business, from a desire to be in control of their own destiny, to the passion to pursue a lifelong dream. Regardless of your reasons for starting a small business, protecting that business investment with insurance is an important part of business ownership. The right insurance will minimize the risks you face due to unexpected events, liabilities, and losses.

Types of Small Business Insurance

Liability Insurance 

The most basic type of insurance that any small business requires is liability insurance. The basic idea behind liability insurance is to protect the policy holder against lawsuits or other legal exigencies. Small-business liability insurance covers things like bodily damage or third-party property damage vis-a-vis your staff, products and services. Liability insurance is the bedrock of small business insurance because it protects your most valued assets.

Workers’ Compensation

Workers’ compensation is perhaps the second most important form of insurance to protect you and your small business. This type of insurance focuses on wage replacement and employee medical benefits in the unfortunate circumstance that a small-business employee is injured while on the job.

The important thing to bear in mind is that small-business employees, by signing up for workers’ compensation, waive the right to sue the employer for negligence vis-a-vis an injury sustained on the job. Workers’ compensation effectively indemnifies small business owners against huge payouts and/or protracted court appearances. Most states require workers’ compensation for small businesses hiring W2 workers.

Professional Liability Insurance 

Professional liability insurance, also known as errors and omissions coverage, protects small business owners against charges relating to advice given or services rendered by employees. Professional liability insurance can help lower the cost of defending the business against negligence claims in court and/or reduce the monetary damages granted in a civil lawsuit.

Small business owners in the fields of real estate, law, accounting, consulting or myriad other advice-giving professions that hire less than 500 employees should consider professional liability insurance to weather possible negligence claims. This type of insurance coverage goes beyond regular liability insurance.

Business Owner’s Policy 

This brand of small business insurance is a commercial insurance package specifically designed for small to medium-sized businesses. Business owner’s policies couple general liability insurance and property insurance into one bundled insurance coverage package. Small business owners can expect a reduced premium when purchasing business owner’s policy insurance coverage.

That said, although business owner’s policy coverage can be economical for your small business, business owner’s policies often have stringent eligibility conditions. The property insurance portion of a business owner’s policy covers things like fires, explosions and vandalism whereas the general liability side covers third-party injury or dismemberment.

Commercial Auto Insurance 

Commercial auto insurance helps protect all vehicles owned and/or used by a small business. This kind of insurance is especially handy for small businesses that use staff to transmit goods and services. Work cars, trucks and delivery vans are all indemnified against damage and collision under commercial auto insurance policies.

If your small business employees are driving their own vehicles for professional reasons, you may also want to consider non-owned auto liability to insure the company vis-a-vis an uninsured or underinsured employee.

In some instances, non-owned auto liability can be bundled with a business owner’s policy to reduce the overall cost of coverage for cash-strapped small business owners.

Beyond Basic Coverage

Some small business owners may want to consider disability, life and health insurance. While not directly related to small business operations, purchasing one or all three kinds of external coverage could prove prudent in the long run.

Randy Reynolds is the Managing Partner for Texas Associates Insurors. His knowledge and experience extends to the manufacturing and construction industries, as well as to financial services, hospitality and not-for-profit organizations.

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Dec 05 2013
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Business Insurance, Risk Management

Why Every Small Business Partnership Needs a Buy-Sell Agreement

When most small business owners think about risk, they tend to consider the things that impact the physical security of the business (fire, flooding, wind damage, etc.) and the financial buy sellsecurity of the business (receivables, demand, professional liability, etc.). Given the immediacy of these risks, it is easy to forget issues relating to business continuation. The reality is that if you buy a business or start one with a partner, you are both at risk for losing everything. Without a buy-sell agreement, Forbes warns you and your partner are facing a world of hurt from the financial and tax problems following “an owner’s death, incapacitation, divorce, bankruptcy, sale or retirement.”

What Is A Buy-Sell Agreement?

A typical buy-sell agreement will protect business owners in the event a co-owner wants out of the business voluntarily or otherwise. A partner may want to retire, to sell his/her shares, or to settle a divorce. On the other hand, the partner may die or become incapacitated and unable to participate. Once a buy-sell agreement sets up a price and terms for a buyout, you have assured the business’s continuation and seamless transition.

Benefits Of A Buy-Sell Agreement

There are several reasons to consider putting a buy-sell agreement in place:

  1. Protect the Business: You and your partner may agree on keeping an unwanted third party from acquiring the business. The contract facilitates a hassle-free shift in control or ownership, it can provide the protocol for fixing or calculating the buy-price to the selling partner or deceased owner’s interest, and it can assure the mandatory arbitration required to settle any arising disputes. Finally, it may define the rights of remaining owners to purchase the interest of the departing owner to resolve or avoid the disputes that often arise among family members.
  2. Structure Tax Treatment: A buy-sell agreement may be used to protect a company’s status as an S-corporation, professional LLC, or professional corporation identity. And, it may want to avoid the termination of its status as a partnership for tax purposes. In addition, under the Internal Revenue Code, there are prohibited shareholders. The IRS will tax the business as a C-corporation if and when a share of the business is transferred to a prohibited shareholder and its status S election will be terminated.
  3. Protect the Remaining Interests: Great peace of mind comes with certainty of the terms enabling you to purchase the departing partner’s interest through a predetermined long-term financing arrangement that allows, for example, payments to be made from the business’s cash flow according to specific formulas. This allows the current owners to fix the price and terms of purchase, thereby reducing or eliminating the personal conflicts that could otherwise arise.
  4. Protect the Withdrawing Partner: The buy-sell protects the deceased partner’s estate from negotiating price and share from a disadvantage. By requiring the surviving partner(s) to buy back the deceased’s interest, it provides a source of income for payment of estate taxes and forestalls disputes with surviving spouses and heirs. In another situation, the agreement guarantees the disabled or retired owner a needed source of cash or a lump sum that fits a financial plan with tax treatment favorable to the withdrawing partner.

Designing Buy-Sell Agreements

There are a variety of ways that a buy-sell agreement can be structured. Typical formats include:

  • A Cross Purchase Agreement works best with four or fewer partners. The owners each own life insurance policies on the lives of each of the others, and in the event one of them dies, the surviving owners use the proceeds of the life insurance policy to buy the deceased owner’s share of the business.
  • A Trusteed Cross-Purchase Agreement creates a revocable or irrevocable trust with a third party owner-administrator and fewer insurance policies. The agreement contractually obligates the trustee to buy the interest of the deceased or departing owner, and the departing owner (or the estate) to sell the interest to the trustee. When using life insurance, the owner(s) can be confident that some or all of the money needed to complete the purchase will be available at the death of an owner.
  • A Partnership Among Shareholders transfers the funding from life insurance policies into a partnership.

It is never wise to enter into a buy-sell agreement without professional advice and assistance. Before you and your partners hang out your “business open” sign, have your lawyers and insurance professionals design the plan that best serves all your interests.

Dave Perez is a risk advisor at Texas Associates Insurors and specializes in property and casualty risk assessments for business owners.

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Nov 23 2013
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Personal Insurance, Personal Risk Management

Traveling? Renting a Car? Should You Buy the Insurance? So Many Questions!

Car_Rental_Insurance_JusRenting a car can be a confusing process. The additional fees and services offered by car rental companies are often tacked on the bill followed by paragraphs of legalese. Supplemental liability insurance is one of these extra fees. While the name implies importance, it may be an unnecessary fee when renting a car. To determine whether you need supplemental liability insurance on your next car rental, start by assessing your current coverage.

What is Supplemental Liability Insurance (SLP)? 

Most states require that rental car companies provide drivers with minimum levels of liability insurance during the rental period. Supplemental insurance provides additional coverage above the state minimums, up to $1 million in liability protection.

For some drivers, this additional coverage is a great deal that can cover additional costs associated with an accident. For other drivers, this coverage is already included in other areas and duplicating this service through the rental company is a waste of money.

Using a Credit Card? 

Many credit card companies offer bonuses that customers are not using. Charge backs and reward points are often scrutinized and compared when searching for a new credit card but many cards also offer secondary rental insurance which consumers fail to use.

The best way to determine whether your credit cards offer rental insurance is to read the terms of use or speak to customer service. Determine how long after an accident you have to file the claim. Most credit card companies offer drivers a 45 day window. If your credit card offers SLP, buying coverage from the rental car company is unnecessary.

Did You Call Your Insurer? 

Most drivers do not need supplemental liability insurance for the simple reason that they already have coverage under their current auto insurance. In addition to covering the driver while driving other people’s cars, rental cars are covered by basic auto insurance for the same deductible.

Don’t Want to File a Claim?

Even drivers who have primary automobile insurance may opt to use SLP to prevent their insurance rates from rising in the event of a rental car accident. Rental cars are notorious for being driven recklessly and drivers with a lead foot or those that are particularly harsh on rentals may not want rising rates over a couple of scratches. In this case, SLP is a good way to prevent extravagant bills for car damage without effecting insurance rates.

Don’t Own a Car? 

While insured drivers may already carry supplemental liability insurance, drivers who do not own a car may find value in getting additional coverage during their rental period. Without the secondary coverage available from auto insurance, customers with expensive rental cars or valuable assets can protect their money by accepting the nominal daily charge for supplemental liability insurance.

If you’re a non-car owner that travels frequently, the fees associated with SLP can add up fast. Consider contacting an auto insurance company to ask about liability coverage for drivers who do not own a car. Most policies cost less than $300 a year and will provide adequate coverage in case of accident without the additional cost of supplemental liability insurance.

Supplemental liability insurance may not be a great deal, but for drivers with the right prerequisites, it can be a valuable addition to rental insurance. Being underinsured in an accident can have serious consequences. Make sure you understand your coverage before turning down supplemental insurance while renting a car.

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Aug 01 2013
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Business Insurance, Risk Management

6 Vital Ingredients For Your Restaurant Insurance Plan

Espresso

Insurance is necessary for the protection of any business, especially restaurants. Restaurants, due to the number of hazardous situations that can occur to the business or a customer, require multiple types of insurance. Here are the top six types of insurance you need for your restaurant

1. Property Insurance 

Property insurance is important in protecting your restaurant in many instances of damage to physical property or vandalism. Many insurers only cover certain types of damage, so pay close attention when choosing your insurance. Insurers may offer different insurance plans when it comes to natural disasters such as storms and floods.

2. Loss of Business Insurance 

The restaurant business can be very unpredictable, so having loss of business insurance can cover many of the finances lost in the event your restaurant should have to shut down. Loss of business insurance, however, can be costly. Depending on the severity of the loss of finances, you may find yourself breaking even.

3. Food Contamination Insurance 

Food contamination insurance is important for you to have in the event that there is a power outage due to electrical errors or a storm. This insurance will cover the cost of the spoiled foods in the refrigerators and freezers.

4. Workers Compensation Insurance 

Most states require that a restaurant carry some type of workers compensation plan. As an employee in a restaurant you may be exposed to potentially hazardous situations, such as close proximity to fire and chemicals. In the event that a worker incurs a work-related injury, workers compensation insurance will be able to protect your business.

5. General Liability 

General liability covers the large majority if situations where a customer would want to sue the restaurant. There are several scenarios where a customer could fall into harms way, it is important to be prepared.

6. Liquor Liability 

If your restaurant has a liquor license you should have liquor liability to protect your business in the event that a customer consumes too much alcohol and injures himself or others.

Have we answered your insurance question? If not, head over to our website or ask an expert! 

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Jul 18 2013
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Business Insurance, Risk Management

Manufacturers – Protect Your Organization When Discontinuing Operations

Selling part of your business or discontinuing a product line is a complex process. However, you are not free from liability or risk once the process is complete. If your goods are still sued after you exit the market, you are still liable for any potential personal injury or property damage resulting from those products.

When choosing to discontinue operations, many companies make the mistake of not purchasing insurance coverage to protect against defense and indemnity expenses that accrue after the business closed or product line is obsolete. As a result, they are left vulnerable to a potential lawsuit.

Organizations that discontinue operations and consequently layoff employees also face personnel issues and legal hurdles. To avoid complex legal headaches, business owners must be knowledgeable of their compliance obligations.

Product Liability

Once a product becomes available to the public, its makers become liable, even when the company is sold, merges with another organization or when the product is no longer produced. You are liable for any product you manufactured that is currently or was once on the market, regardless of the current state of your business operations.

Purchasing an insurance policy that protects against risks when discontinuing business operations is a must, as CGL policies do not cover injuries or damage that occurs after the business is sold or closed. Business owners should take the necessary precautions to protect themselves by purchasing a Discontinued Operations Insurance policy and by adhering to the following recommendations:

  • Get to know industry standards and applicable legal requirements. Before leaving your business or ceasing operations, determine how you must legally do so. For instance, you must give notice to creditors, the specifics of which vary by jurisdiction.
  • Devise a run-off business infrastructure. By doing so, you can handle future claims that result from incidents that occurred before the business closed. It is wise to devise risk management solutions in anticipation of a problem; you will already have remedies in place. Also, if defendants have difficulty locating you, this may be seen as an evasion of responsibility and could result in punitive damage for bad faith conduct. A run-off plan will mitigate those risks. It is also smart to let customers know why you are closing your doors or discontinuing a product line.
  • Create an infrastructure based on your needs. The creation and design of your company’s infrastructure will depend on how the business is shut down. Also, companies operating in highly regulated fields will have more obligations and the structure must accommodate losses far beyond when the business is closed. While creating an infrastructure, consider hiring a consultant who can provide guidance concerning future claims. You may also benefit from the expertise of loss auditors, legal counsel and product liability experts.
  • Provide guidance to those who remain. If you are only closing part of your business or discontinuing a product line, run-off your responsibilities before doing so. Provide legal advice, risk management and commercial guidance.
  • Maintain solid business records. Document when and where products were manufactured and to whom and when these products were sold. Your organization should also document the product development process, quality control measures, testing procedures, vendor lists and supplier lists. If you sell your business, keep all of the records from that transaction.
  • Create problem resolution systems. This may include consumer hotlines, complaint reporting procedures, incident forms, etc. Also determine why merchandise was returned to your company to potentially identify any potential product defects.

Personnel Liability

In addition to the concerns about product and consumer liability, there are also employee liability issues that must addressed when discontinuing operations, specifically with regard to layoffs and terminations. While this may be a trying time for your organization, it will be significantly worse if a terminated employee files a lawsuit against the company, so it is best to be prepared.

The following are safeguards to consider when conducting layoffs in conjunction with discontinuing operations at your business:

  1. When employees are let go, ask them to sign a waiver promising not to sue (known as a separation agreement). Be mindful of the Older Workers Benefit Protection Act of 1990 (OWBPA), which mandates that workers over age 40 have a minimum of 21 days to sign the release and another seven days to change their decision after they do so. If you pressure workers to sign before this time, you are at risk of a lawsuit. Under OWBPA, you must also provide 45 days to sign a waiver for multiple workers being laid off at the same time.
  2. Consider the Worker Adjustment and Retraining Notification (WARN) Act, which requires companies in certain circumstances to give employees notice before a layoff. More information is available at http://www.doleta.gov/layoff/warn.cfm.
  3. Offer severance packages based on the employees’ titles and lengths of service, as opposed to offering a universal package for all employees being laid off.
  4. Do not blame employees for things that they did not do or make false accusations as a way to justify a layoff.
  5. Conduct layoffs within a short period of time.
  6. If you must discontinue operations for financial reasons, high-ranking employees should also take some cuts as well. This shows remaining employees that everyone is making sacrifices for the company.
  7. Provide job counseling, resume writing guidance and job searching assistance to employees being let go.

Discontinuing your business’s operations presents may liability issues with regard to your products, services and employees. To learn more about the insurance solutions designed to mitigate those risks, contact us today.

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Jul 06 2013
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Health and wellness, Personal Risk Management

Safe Walking & Cycling

The weather outside has finally turned from frightful to delightful (if you like it hot!), and for millions of Americans that means it’s time to head outdoors for some fun in the sun. If you are hiking or biking on or near roads and sidewalks, keep these safety tips in mind.

When walking:

  • Always do so at marked crosswalks so cars are aware of your presence.
  • Make sure drivers know you are about to cross by making eye contact with them.
  • Don’t just look left and right—pay attention to cars that may be turning at intersections.
  • If you’re walking at night, wear bright or reflective clothing.

When riding a bike:

  • Always make sure you have enough room to avoid being sideswiped by nearby vehicles.
  • Use hand signals when turning or stopping so that drivers know what you are about to do.
  • Wear bright or reflective clothing so that you catch drivers’ attention and they know you are there.
  • Be attentive and slow down slightly when nearing intersections.

And as usual, when doing any kind of physical activity out of doors – DRINK LOTS OF WATER!

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Jul 01 2013
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Bond Management, Business Insurance, Employee Benefits, Health Insurance, Risk Management

How Does Risk Management Create Value?

Risk management isn’t just a defensive tactic designed merely to keep something bad from happening. Effective risk management can also be constructive and encourage the creation of something positive. This positivity is a culture of value and self-awareness.

How to create value with risk management

Risk management doesn’t have to be a secondary addition to your business strategy, it can be incorporated into your overall business plan to give you direction and help you make the best decisions.

Balancing risk avoidance activities and responsibilities throughout the company makes it so that everyone is aware of what the risks are and how they are to approach them. Rather than a strategy dictated from up above, risk management becomes more of an open discussion that includes input from multiple areas. Not only is a fully comprehensive view of risk management at work in a company, it’s all-inclusive for management and employees alike.

Risk management allows for risks to become opportunities

Executives and board members are likely to have a much longer list of worries than their average employee would. Especially in the digital information age and with the popularity of social media for example, reputational risk is of real concern to many companies

Managing these types of risks, risks that have many variables, as part of your business strategy allows for large scale projects such as social media monitoring to be broken down into smaller manageable tasks and spread throughout the company. Employees can become more involved in the company’s risk management. It also potentially makes for more effective risk management if employees are encouraged to make suggestions for improvement or development.

Risk management best practice

To best understand how your risk management can bring value to your business, you need to understand how these risks can affect you. Generally they fall into four areas – strategic, operational, financial and compliance. How would your business plan get thrown off? What would loosing the use of a key piece of machinery mean to business? Often times the answers will come from those who would be directly affected by these risks, frontline staff.

Proactively managing these risks not only gives management, but all members of staff piece of mind that risks have been comprehensively assessed.

The value risk management creates can be viewed in many ways. It’s including employees of every level in the protection and management of the company. It’s tying business strategy with risks avoidance and management for efficient planning and strategizing. It’s creating opportunities for everyone to get involved and strengthening the company’s defenses against risk.

If you have risk management questions, click here to ask an expert

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Jun 15 2013
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Personal Insurance, Personal Risk Management

Top 10 Mistakes Teen Drivers Make

Cars.com, in conjunction with DriversEd.com, America’s leading drivers education resource and solution, have identified the 10 most common mistakes teen drivers make. “There are a number of factors that lead to an increase in accidents for teen drivers, including inexperience, dealing with emergency situations, distracted driving and the inclination to show off for friends,” said DriversEd.com founder Gary Tsifrin. “By recognizing these common mistakes, we hope that teenagers will be able to avoid the risks associated with being a teenager behind the wheel.”

The most common mistakes are:

  • Being distracted behind the wheel
    Cell phones, CDs, food and even text messages can pose serious distractions to drivers. In some cases, drivers will even text message their backseat passengers. Distracted driving contributes to 80 percent of collisions.
  • Taking too many risks
    Actions like ignoring traffic signals or school zone signs and changing lanes without checking blind spots are all considered “risky behavior.” The difference between risky behavior and distracted driving is that risky behavior is deliberate, while distracted driving is often the result of ignorance.
  • Speeding
    Most drivers occasionally speed, but teens do so because they don’t have a good sense of how a car’s speed can affect their response time. On average, teens drive faster than all other drivers as a whole. They will exceed speeds on residential roads that they interpret as empty because they haven’t had any close calls there. The Insurance Institute for Highway Safety reported that speeding factored into roughly one-third of all fatal crashes in 2005 when teenagers were behind the wheel – some 50 percent more than it did in fatal crashes for 20- to 49-year-olds.
  • Overcrowding the car
    Teens frequently overcrowd their cars, cramming five or six into a cabin meant to seat four or five. Worse yet, the extra passengers often result in teens driving more aggressively. The distractions of carrying too many passengers can have serious consequences as well.
  • Driving under the influence
    When teens drink and drive, they’re even less likely to practice safe habits like seat belt usage: Of the 15- to 20-year-olds killed after drinking and driving in 2003, 74 percent were unrestrained, according to the National Highway Traffic Safety Administration. Because teenagers are too young to drink legally, they’re also less likely to call their parents to come get them when they shouldn’t drive.
  • Following too closely
    Maintaining a proper following distance is a critical step in preventing accidents. At 60 mph, a typical car needs between 120 and 140 feet to reach a full stop. Most SUVs require an extra 5 to 10 feet on top of that. Consider that 60 mph translates to 88 feet per second and it’s easy to see why maintaining a proper following distance is a critical step in preventing accidents.
  • Driving unbuckled
    A 2003 survey by NHTSA reported that 79 percent of drivers ages 16 to 24 said they wore their seat belts regularly, while 84 percent of the overall population did so. Approximately 21 percent of young drivers do not wear their seat belts regularly. Many young drivers have a sense of invincibility that also factors into teen speeding. Fortunately, many cars today have seat belt reminders that flash warning lights or chime until belts are secured. Call them annoying, but they help keep occupants buckled.
  • Not being able to handle emergencies
    Knowing how to avoid an accident comes with driving experience. Young drivers can only learn so much in the classroom, which leaves learning maneuvers like straightening out a skid or how to apply the brakes correctly to real-world experience. Speeding and distracted driving only make things worse, as they compound the lack of experience by putting drivers at higher risk of encountering an emergency situation in the first place.
  • Driving drowsy
    Drowsy driving affects an unlikely group: the so-called “good kids.” That means straight-A students or those with a full plate of extracurricular activities. Overachievers have a lot of pressure. If they’re playing varsity sports and are also preparing for an AP English exam, and if they’ve been going since 7 a.m. and now it’s midnight and they have to get home, they don’t think, “I’m too tired to drive.”
  • Choosing the wrong car and not maintaining it
    Too often, a combination of tight budgets and high style leads teens to pass up important safety features for larger engines and flashy accessories. A teen or novice driver will opt for a cool-looking sports car rather than a car that’s really a safer choice. Then, if they sink all their money into it, they might be remiss in maintaining it.
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Jun 01 2013
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Liability, Personal Insurance, Personal Risk Management

Is Your Pooch Considered Dangerous?

Accidents involving dog bites cost the insurance industry over $350 million per year and are now the largest cause of Homeowners Insurance claims in the U.S. As a result, many breeds are considered “uninsurable” or may require heightened premiums.

Notoriously Dangerous Breeds

The following dog pedigrees are considered dangerous:

  • Pit Bull
  • Rottweiler
  • German Shepherd
  • Husky
  • Alaskan Malamute
  • Wolf-dog Hybrid
  • Chow Chow
  • Doberman
  • Saint Bernard
  • Great Dane
  • Doberman Pinscher
  • Siberian Husky
  • Akita
  • American Staffordshire Terrier
  • Boxer
  • Perro de Presa Canario

Owner Responsibilities

It is difficult to determine how a dog’s breed will predict its disposition, much like it is hard to predict how nature versus nurture plays a role in the development of a child.

To minimize the risk that your dog will display aggressive behavior towards other dogs or humans, you must be a responsible pet owner and do the following:

  • Restrain your dog with a strong leash when in public or fenced in while in the yard. The fence should be at least six to eight-feet tall, depending on your dog’s size.
  • Socialize your dog as a puppy with other dogs and people. Take him/her to puppy classes starting at a young age, and praise your dog when he/she behaves well with others.
  • Spay or neuter your dog, as 80 percent of all fatal attacks are caused by non-neutered male dogs. Fixing a dog alters its territorial instincts and aggression.
  • Train the dog not to bite your hands, furniture, etc. If your dog starts to growl or chew on something, clap your hands loudly to distract him/her and then provide a toy for the dog to play with. Praise the dog when he/she chews on toys only.
  • Give your dog lots of positive attention.
  • Properly identify your dog with tags and a microchip.

Watch your dog’s behavior closely and contact your veterinarian if he/she exhibits any of the following behaviors: growling, snapping, biting family members, being aggressive towards strangers or showing signs of extreme fear. Your vet can refer you to a veterinary behavior specialist. While the dog is going through treatment, be extra cautious while in public and consider placing a basket muzzle over the dog’s mouth.

Insurance can usually be obtained for most dogs; however, there are some limitations. If you own a breed that has been historically violent, you may have to pay an increased premium (even if your dog has not displayed any violent behavior). If your dog has passed obedience school tests, you may qualify for a premium discount.

Here are the Facts:

According to the Centers for Disease Control and Prevention (CDC), approximately 4.7 million people are bitten by dogs annually, and around 17 percent of those victims need medical care. There are also 10 to 20 people who do not survive the attack. The CDC claims that dog bites are an “epidemic” in America.

To curb dog bites, some communities around the U.S. have banned certain dogs as pets, as they are perceived to be more dangerous or a have track record of violence. This specifically applies to Pit Bulls and Rottweilers.

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May 30 2013
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Business Insurance, Liability, Risk Management

Restaurant Workplace Accidents Are COSTLY!

We all know that safety is important, but are you aware just how costly a workplace injury can be? According to the Occupational Safety and Health Administration (OSHA), the average eye injury costs $1,463. It may not seem like much money, but the extra expense to pay for injuries has a powerfully negative effect to our restaurant’s bottom line.

Why is profitability also an important issue to you? The only way that  can stay in business is to operate at a profit, and that ability can be threatened by a serious workplace injury.

The Real Cost of Workplace Injuries

It may be surprising to hear that most companies do not have a high profit margin—3 percent is about average. Expenses take a large chunk of the income, and competition limits how much we charge our patrons.

Each time an accident occurs, the cost of the injury must be subtracted from profits. Consider the following two examples:

  • At a 5 percent profit margin, an extra $20,000 in sales is needed to compensate for a $1,000 injury.
  • If the profit margin is nearer to 1 percent, an additional $100,000 worth of new income is necessary to maintain that profit level for the same injury.

As you can see, that adds up to a lot of extra income just to compensate for a single injury. And we all know that we can’t just find more customers because we need the extra income. Thus, every time a worker gets hurt on the job, other employees are affected, too. The company may be forced to make difficult budget decisions such as cutting hours or jobs, plus some employees will need to work extra hours to make up for the injured employee’s lost time.

Also, recovering from an injury can mean time away from work, reduced compensation, painful rehabilitation and frustrating adjustments to daily life.

Practice Prevention

Though operating at a profit is essential to our success, our top priority is to keep our employees safe and healthy. That’s why we are counting on you to help practice good safety principles, including following all safety procedures, even if they seem unnecessary or slow you down. Safe work behavior will contribute directly to our bottom line as well as to everyone’s job security. By observing safety precautions, we can limit accidents.

It is always wiser to spend a bit more time doing the job safely than to risk getting a serious injury. Be sure to always follow all safety guidelines and stay alert for unsafe conditions

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