Tag Archives: workers compensation

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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Sep 26 2013
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Healthcare Reform, Risk Management

How Heathcare Reform Will Affect Workers Comp

There has been much speculation about the changing face of health care in the United States since the Affordable Care Act was passed by the Obama Administration in 2010. Divided opinions on the provisions of ‘Obamacare’ have been well-represented by the rife inconsistency across the nation with regards health care exchanges, with some states opting for state-based exchange system, while other states have opted for federal-based initiatives.doctor, clipboard, stethescope

As the October 1 deadline draws nearer, much of the attention has focused on the requirement for all US citizens to carry health insurance coverage and the bearing that will have on employers. The reformed regulations are also expected to affect workers’ compensation insurance but the extent, nature and desirability of this impact remains markedly unclear. In the meantime, here are some changes in Workers’ Compensation we are sure to see.

Fewer claims

Each year, millions of workers’ compensation claims are filed, costing employers billions. However, not all of these claims are due to work-related injuries. In some cases, employees without adequate insurance coverage would opt to use their workers’ compensation coverage to cover treatment for various conditions that may be pre-existing. Under the Affordable Care Act, a large contingent of previously uninsured workers will have the right to health insurance coverage of some form or another, thus reducing the need for workers’ compensation claims.

The increase in insured employees will also lead to a preventative approach, from both employers and the workforce, all aiming to develop a healthier workplace and lower the number of filed insurance claims. For Businesses, taking a preventative approach by introducing initiatives such as wellness programs should be regarded as something they do FOR employees and not TO them. At the end of the day, a healthier workforce means health insurance claims are less likely, while taking an interest in the well-being of the workforce can also help harness working relationships and ultimately lead to better results.

Better Care

The Affordable Care Act legislates for an increased number of insured US citizens and in light of this increase, the number of practitioners and physicians is set to also increase, particularly in rural areas. While there have been suggestions of how the actual care will be affected by a much higher proportion of patients, the long-term ideals of the ACA include increased facilities and medical professionals, which will ultimately result in better care in some areas that may have lacked facilities in the past.

The provisions of the ACA also dictate the introduction of Electronic medical records allowing Physicians to diagnose and treat workers’ compensation claims more efficiently and accurately. This emphasis on the holistic treatment of chronic care could ultimately help claimants to return to work quicker, thus benefitting Businesses. An electronic database could also help reduce the likelihood of medical errors and subsequently increase the quality and efficiency of care.

While speculation over how the ACA will affect workers’ compensation coverage continues, it is important for Businesses to understand that there will be changes. Understanding mandate deadlines and the provisions of the act itself is one thing, but understanding the actual effects of Health Care Reform is another, which will involve time, effort and commitment from employers.

If you’re looking to review your Employee Benefits program ahead of January 1, why not ask one of our experts for their advice.

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Aug 01 2013
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Business Insurance, Risk Management

6 Vital Ingredients For Your Restaurant Insurance Plan

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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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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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