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Commercial Insurance

Benefits of Product Liability Insurance

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Your customers expect you to have safe and reliable products, and failing to meet these expectations can lead to huge financial losses. If one of your products harms a customer in any way, they can sue your business, leading to costly legal fees and settlements. These costs can easily reach six figures.

While you may do everything in your power to ensure your products are safe, mishaps can still occur without warning. That’s why, to protect against claims and ensure the longevity of your business, you need product liability insurance.

Product Liability Insurance includes:

Coverage for manufacturing or production flaws – One of the key features of product liability insurance is its coverage for manufacturing or production flaws that cause unsafe defects in the product.

Protection against design defects – Even after product testing and trial runs, potentially dangerous defects can still appear long after production. Product liability insurance can provide coverage for design errors that make goods unsafe for use by the public.

Response for packaging and warning issues – In the event that you fail to provide adequate defect warnings or instructions for using the product, your company can be sued. These claims arise when products are not properly labeled or have warning s that are not explanatory enough to reduce consumer risks while using the product Product liability insurance helps organization prepare for and litigate these types of claims.

Supplemental commercial general liability (CGL) coverage – Generally, there is limited product liability protection under a CGL policy, yet it may not be enough coverage to adequately protect your business.  Product liability policies work alongside CGL coverage, providing protection against losses caused by malfunctions or defects in your products.

Product liability is a complex exposure, and managing your risk can be a major undertaking – even if you have access to all the right resources.

To supplement your risk management strategies and address specific exposures, speak with one of our agents at Contractors Insurance Agency today.

 

Benefits of Fiduciary Liability Insurance

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Offering employees a variety of benefit options, like pension plans, retirement accounts and health care coverage, while not required, is expected of today’s employers.

Organizations that provide these resources to their workforce often task an individual or group of individuals called fiduciaries to oversee the benefits plans. Fiduciaries may include employers, plan administrators, plan trustees, directors, officers and internal investment committees.

A fiduciary’s job is to select advisors and investments, minimize expenses and follow plan documents exactly.  Under the Employee Retirement Income Security Act (ERISA), fiduciaries must act in the interest of plan participants in order to avoid liability claims related to the denial of benefits, administrative error, improper advice, wrongful termination of a plan and similar allegations stemming from plan management.

In order for an organization to protect its fiduciaries, fiduciary liability insurance is critical and can provide policyholders with the following:

ERISA liability protection – Under ERISA, a fiduciary is any entity or person that is responsible for the management of benefits plans. Per ERISA requirements, these individuals can be held liable for any breach of duties, errors or omissions. Fiduciary liability insurance is designed to protect plan sponsors and their employees from fiduciary claims – claims that can easily reach six figures or more.

Protection from common fiduciary claims – A number of parties, including employees, the Department of Labor and the Pension Benefit Guaranty Corporation, can file fiduciary lawsuits. Claims can arise for a number of reasons, including administrative error, wrongful termination of a plan, improper advice and conflicts of interest. Fiduciary liability insurance can go a long way in protecting employers and plan administrators from these common claims.

Affordable Coverage – While the cost of fiduciary liability insurance can vary depending on an organizations’ assets and the number of plan participants, coverage is generally affordable. On average, fiduciary liability insurance plans range anywhere from $600 to $2600 per year depending on a company’s specific requirements.

Specialty protection not found in similar policies – Companies often wrongfully assume that employee benefits liability (EBL) or directors and officers (D&O) liability policies can provide protection for fiduciary claims. While EBL insurance can defend against claims of errors in plan administration, it provides no protection for more expensive and complex ERISA violations. D&O policies also typically exclude EBL and ERISA related claims, making fiduciary liability insurance a must.

Coverage beyond fidelity bonds – ERISA fidelity bonds are required by law and are meant to protect plans against losses related to acts of theft or fraud. While these bonds are critical if someone acting as a fiduciary deliberately defrauds or steals from a plan, they only protect employee benefits and not a fiduciary’s liability.  Specifically, fidelity bonds do not provide any form of payment for legal defenses or damages related to fiduciary claims, making finding the right policy crucial.

If you have any questions about Fiduciary Liability insurance please contact us at Contractors Insurance Agency and find out how we can help you.

 

 

 

What All Business Owners Need To Know about Insurance

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Why Do I Need Commercial Insurance?

Does your current insurance cover what you need it to cover? This can be a tough question to answer. The insurance world is complicated, not always easy to understand, and the last thing you want to happen is to lose your business because of an insurance mistake. Before we can talk about why business insurance is so important, we have to define what business insurance is and how it works.

Business insurance protects your company’s property, assets, and income. When getting a business insurance quote, the insurance company is going to look at a lot of different factors to determine which kinds of business insurance you’ll need, and how much coverage you’ll need.

  • How big is your company? Are you a startup or an established corporation?
  • What industry are you in? Do you work in something like construction or food service?
  • What do you need to protect (company vehicles, customer data, property, etc.)?

All of these things help the insurance company decide how much risk you pose, and your likelihood of filing a claim. They’ll ask you a lot of questions to determine what you want to be covered and from what. If you have company cars, you’ll need to consider commercial auto insurance. If you deal with a lot of sensitive data on computers, you’ll likely want cyber-liability insurance to protect against hacking or loss of data. These are all things a knowledgeable and experienced agency like Contractors Insurance Agency can help you with.

 

Types of Coverage to Consider

There are multiple types of coverage to consider for your business. You don’t necessarily need all of them, but it can’t hurt to look at each one individually and decide what applies to you and what doesn’t.

  • General Liability Insurance – Protects against financial loss due to property damage, personal injury, etc. caused by your company or on your business’ property.
  • Commercial Property Insurance – Covers loss of property (office, equipment, etc.) due to weather, theft, etc.
  • Cyber Liability Insurance – Protects against loss of your customers’ sensitive data through hacking or other cybersecurity flaws.
  • Employer Insurance – Covers things like worker’s compensation costs.
  • Commercial Auto Insurance – Covers company vehicles against damage or loss.

 

Don’t Skimp On Insurance to Save Money

It can be tempting to skip over insurance in order to keep costs low, especially if you are just starting out. However, this can be a dangerous decision that could come back to hurt your business tremendously. Business insurance can protect against several issues that could arise, either because of something outside of your control or a mistake you make.

Commercial property insurance can protect you against loss of your property or equipment due to either theft or unintended damage like a storm or fire. On a different note, what if a customer is injured on your property or a product or service you sold them causes them harm? They could sue and certain types of liability insurance can help protect you against the costs associated with a lawsuit.

 

Are You Legally Required to Have Insurance?

Another thing to consider is the legal requirements in your state. Many states have specific laws mandating whether your business needs certain kinds of insurance. These are requirements your insurance agent should be able to help you with. If you aren’t following the laws in your state, this could also hurt your business.

 

Saving Money On Business Insurance

So while business insurance is so important to have, it can still be a cost that you are hesitant to pay for. But there are a couple of ways you can work to save money.

  • Using an independent insurance agency like Contractors Insurance Agency can be helpful in saving money. Because we are independent, we have the capability of shopping around with several companies in order to help get you the best coverage at the most affordable rate for your business. Be sure to work closely with the agent you decide on and be transparent with them about all things relating to your business’ needs and insurance risks.
  • A bundled policy can be an additional option to explore in order to save money. A lot of times there are Business Owner Policies that include common types of standard coverages that a small or medium sized business needs. By bundling all of your coverage with one company, rather than buying individual coverage for each type of liability, you can very often save money. 

 

Contractors Insurance Agency Can Help

If you have questions about your current business insurance or are concerned about having the right coverage, Contractors Insurance Agency can help. As our name implies, we specialize in helping contractors properly insure and protect their businesses. Aiming to provide the best coverage at the best rates, we’ve got several satisfied clients. We’ve also got plenty of other content on our blog, discussing everything from workplace safety to filing an insurance claim.

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