Business owners can handle risk management in a couple of ways. They can reduce their exposure to risk as well as invest in insurance to protect their assets against risk exposure once it occurs. Reducing contact with known risks can reduce insurance rates as well. A company’s best line of defense is to mitigate risk to avoid expensive insurance claims; however, it is unrealistic to assume a claim will never happen.
Failing to invest in insurance is an ill-advised business practice and poor risk management. While many business owners do not intentionally overlook insurance, many are not aware of the coverage they need. For example, many businesses lack the proper coverage for cyber incidents. This is an issue as cyber insurance is necessary to controlling cyber threats. Technology in the workplace will continue to flourish, as will the associated risks. Businesses that collect customer data such as medical records or credit card numbers face a heightened risk of cyber attacks as they possess highly sought after and lucrative information.
Employee Negligence Limits Insurance Protection
More often than most would like to admit, employees fall for cyber tricks that result in a data breech. Some insurance policies only go into effect for unauthorized breeches. If a breech occurs due to employee negligence, the policy may not provide coverage. Smart business owners will train employees to recognize threats and risks as well as how to avoid them. Some examples include:
- Never leaving laptops open and unattended
- Creating strong passwords
- Recognizing phishing email scams
Businesses need to consider all angles of exposure for effective risk management. The Reilly Company can help businesses identify the unique risks to their industry and develop a proactive strategy to defend against them. To learn more, contact us.
All businesses come with a certain degree of risk—some more than others. For example, the construction industry faces much more risk than a standard desk job. Loss of finances, personal injury, and property damage are just some of the upfront hazards construction companies face. After completing a project, construction businesses may experience other claims such as building defects. While these hurdles are part of doing business in the construction industry, there are several ways companies can reduce their risk.
Contract Hierarchy of Documents
Because of their length, construction contracts are prone to inconsistencies. In the event that an issue goes to court, both parties often have documentation backing their position taken straight from the contract. Without establishing a contractual hierarchy, disputes are more likely and the litigation process will be lengthy. Clarify such matters before finalizing a contract to avoid conflicts that a court cannot easily resolve.
Limitation of Liability
Most design professionals such as architects and engineers include clauses that limit their liability in regards to their services. Many project developers sign these agreements not realizing the designer may be responsible for significant economic loss later in the project. The developer will not be able to recoup the loss caused by the designer’s negligence due to this clause. Developers should read over these agreements carefully and consider the risk before signing it.
Insurance is vital to a successful construction company. Insurance flows between general contractors and subcontractors with policies providing additional coverage. However, in response to increased risk, insurance companies added endorsements. These endorsements can limit the effectiveness of additional coverage. Due to these complexities, construction companies should invest in a knowledgeable agent to ensure they have proper coverage. The Reilly Company can help your business navigate the intricacies of construction insurance. To learn more, contact us.
No employer hires an individual with the intent to provide an unhealthy work environment. However, mistakes happen and those mistakes can lead to lawsuits. Employment Practices Liability Insurance (EPLI) protects a company and its employees in the event of an unfair employment practices lawsuit. These types of claims cover a wide range of offenses such as:
- Failure to employ or promote
It is not always clear to business owners how they could end up embroiled in such a lawsuit. However, failing to invest in adequate EPLI coverage can bankrupt a business. The following scenarios illuminate how EPLI can help save businesses.
Workplaces can be stressful, especially during busy periods. However, if an employee feels his manager is creating stressful situations on purpose, he may file a lawsuit for intentional infliction of emotional distress. EPLI coverage protects the business as well as the accused manager.
While EPLI provides coverage for a variety of situations, this type of suit is becoming much more prevalent. To avoid wrongful termination suits, business owners need to make sure that manager know what is grounds for legal termination and what is not. For example, managers cannot terminate employees because of their age, race, gender, or any other attribute not related to job performance.
There are very few industries where characteristics such as gender or race affect job performance. As such, recruiters should not rely on these aspects during the employment process. If a prospective employee believes the interviewer did not hire her because of her gender, she may file a lawsuit for failure to employ. Just as managers cannot fire an employee due to their gender, employers cannot refuse to hire an individual for the same reason.
Implementing appropriate hiring and workplace practices can help reduce the likelihood of EPLI lawsuits. For example, employers can prominently display company policies around the workplace. A thorough and well-written company handbook can help as well. However, no business is impervious to litigation. Contact The Reilly Company Group to learn more about protecting your business with Employment Practices Liability Insurance.
Every business owner understands the importance of obtaining insurance to protect themselves and their company. However, which type of policy they need is not always clear. For liability coverage, businesses have two options available to them: General Liability Insurance or the more expansive Business Owner’s Policy (BOP). Each type of insurance has its own benefits. Which one suits a business owner’s needs depends on the type of financial protection they require.
What is General Liability Insurance?
This type of insurance offers comprehensive coverage for several common issues business owners may face such as:
- Slander, libel, etc.
- Property damage
- Bodily injuries
No matter how carefully a business owner operates his or her business, they are likely to face one or more of these types of claims. General liability insurance helps business owners pay for lawyer expenses, court costs, and settlements.
What is a BOP?
A BOP is a more robust version of a General Liability Insurance policy. It combines several types of policies into one bundle at a reduced cost. BOPs provide:
- General Liability Insurance
- Property Insurance
- Business Interruption Insurance
This means in addition to general liability coverage, a BOP provides compensation for property damaged by fire, wind, or theft. Should unforeseen events force a business owner to stop business operation for a short period of time, this policy compensates for lost income as well.
However, not everyone qualifies for a BOP. To be eligible, the individual must own a small business, work in a low-risk industry, and require a year or less of Business Interruption Insurance. To learn more about these policies and which would work best for your business, contact The Reilly Group. We can also help your business identify risks as well as implement solutions to mitigate them.