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The Beginner’s Guide to Professional Liability Insurance

If you sell products or provide services, you need professional liability. Your business can only benefit from this coverage.

Here, we’ll take a look at what Professional Liability covers, real-life examples, and costs.

business owner looking at professional liability coverage — *Running a company is difficult, but professional liability will bring peace of mind.*

What is Professional Liability?

This policy is often called “Errors and Omissions,” so if you see either, know they mean the same thing. Businesses need protection from professional mistakes, and this insurance type offers just that.

The worst-case scenario is a negligence lawsuit against your company. But, with this policy, you’ll be covered! A Professional Liability plan will help cover all costs and fees associated with the lawsuit, this includes legal fees and damages you have to pay. For businesses offering things like advice or services, it comes with the territory. An example of this would be a construction worker who is sued because a wall he built fell during a storm and the customer believes it was because of the companies negligence. A lawsuit like this has the ability to shut down a small business, but with professional liability, they would be covered!

This policy brings peace of mind, knowing that should unforeseen circumstances take place, you’ll be safe from the negative effects lawsuits bring to your company.

What is Covered?

While there could be exceptions, these are the typical circumstances covered by professional liability:

Business Mistakes– If your client incurs losses, and your business is at fault, then the financial costs will be covered.
Legal Costs – Should a lawsuit come your way, your company won’t have to pay the court fees or otherwise. This is regardless of the court’s decision.
Negligence– Should you incur a lawsuit due to failing to meet a client’s standards, then you are covered.

You might think these don’t apply to your business, but reading further will give you a better perspective.

Real-World Examples

Example: Let’s say you’ve been contracted to clean office space for a client. Your staff was sent out, but the client calls back, complaining that the work was unsatisfactory. To make matters worse, the client purchased the cleaning before a work event, so they are blaming the loss of the event on your company. Then comes the lawsuit.

Now, this example seems unfair, but even in an unfair case, you’ll still be charged several thousand dollars in legal fees. Do you really want that for your company?

man arguing on a call with headset — *Lawsuits come to even the best prepared. Liability can help recover when this happens.*

Example: You’ve performed surgery on someone but made a small medical mistake resulting in calling the patient back. The results are what you’d expect. While this mistake is human, it could cost you heavily in a negligence lawsuit. These range into over $100,000, especially with medical cases.

Example: Your business has a contract with another for financial advice, and you were confident that your advice would increase their profit margins, but it didn’t.

Now, the other company is suing you to make up for their own profit losses. Think this situation doesn’t apply to you? It can be any type of undelivered service. If you are promising something, simple human error or bad luck can intervene.

What Are the Costs?

Thankfully, professional liability is a less expensive option. However, you do want to keep continuous coverage to reap the benefits mentioned above.

For the average small business, professional liability will cost between $60-$80 a month–around $700 a year. This, of course, can be even less if the business is low-risk. If you run a high-risk business like construction, the costs can rise to nearly $2000 a year.

office table with plants, phone, and notebook for professional liability — *EZ.Insure is designed simply to get you access to the best coverage.*

Purchasing professional liability is easy enough, especially with an agent on your side. They will have the most up to date information about what level of coverage your company really needs to keep you safe–without overspending.

EZ.Insure is here to help. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.

At EZ.Insure, we know that starting a business can be overwhelming, so we’re putting together an easy series for reference. If you need more information, see our Business Insurance Masterlist and our Group Insurance Guide.

Want to Expand Internationally? Here’s What You Need to Know

You could be trending on Twitter with #GoingGlobal. International expansion is a bold move for any entrepreneur, but also an incredibly exciting one. It can bring so much to the table.

hand holding a mini globe — *Expansion can be the start of a new adventure. Are you ready?*

New markets mean new opportunities for growth, and there is no better time than the present. We live in an unprecedented era of connectivity because of the internet. Today, eCommerce is at an all-time high and shows no sign of stopping.

Like any change, there are mistakes to avoid and rules to keep in mind. For small businesses, it could be as simple as a perspective change.

Why Go Global?

International expansion can make or break your company. Remember that your focus changes from who walks by your storefront to anyone with an internet connection. Here are some benefits to look forward to:

Using social media’s powerful tools to grow a brand
More reach means more sales potential
International markets mean exposure to new ideas to influence your product/service
Relieves reliance on local markets

Move with caution, though. The expansion comes with new competition. While there may be more people involved, more companies will vie for their attention. Sometimes, local buyers are easier to persuade simply because they can interact with you on a personal level.

If you follow the rules, you should swim in these new waters easily.

Rules for International Expansion

Every business will be different, but these guidelines should hold true for most. We’ll talk more about their meaning below:

typewriter making a to do list for international expansion — *Before you start, take good notes so you know what to expect.*

Make a Plan
Set Distributions
Conduct Research/ Connect Culturally
Trade Rules
Commercial Insurance

Make a Plan

Any project deserves a solid map. First, ask questions about why your goods/services would be received in another country. These questions will also help fill in the blanks of your distribution and research section. For example, you don’t want to try and sell a selfie stick to someone living in a country with no cell phones.

Your plan should cover exactly where you’re marketing, your target audience, and why they would be interested in your product.

Set Distributions

This one is probably the easiest. You just need to make sure you have enough boxes to transport your product. If you’re selling services, check with translation. Using the information above, you can easily find companies that help with shipping.

Conduct Research/Connect Culturally

You must understand your target market well. How they live on a daily basis, and what needs/ desires they share. Don’t try to sell water bottles to people that hate plastic. This can be accomplished with surveys, or you could conduct it yourself by contacting natives and speaking with them.

Trade Rules

different types of coins for currency and trade — *Have you thought about currency conversion? We have to think about money with new business opportunities.*

Any country has specific tariffs and rules set in place. Some markets will not accept certain products, and others will outright criminalize you for attempting to sell inside their borders. Make double sure that whichever country you’re planning to sell to accepts your goods/services and they are legal. If they require licenses, you must keep all paperwork up to date.

Commercial Insurance for an International Expansion

You should be insured for your products, even if you are using the internet to sell them. Cybercrime is more frequent now, and your presence online does not exclude you from simple robbery. Accidents happen to everyone.

An international expansion can be an exciting time, but to keep that forward momentum, keep all your t’s crossed and your i’s dotted. The business world can bring many connections to your brand. Take advantage of the eCommerce we have available and leap into our huge world.

EZ.Insure is there no matter where your company takes you. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.

How To Recover From A Business Burnout

How to Deal with Business Burnout

Picture Kate, our neighborhood baker. Kate unlocks her bakery and walks inside–but there’s an awkward feeling in her chest. She lacks motivation, feels fatigued, and to top it all off, she has a massive to-do list. Running a business can be hard, but it’s even harder when you lack energy. Studies have shown that in the US more than 77% of business owners experience a burnout like this.

business burnout for this beautiful bakery filled with customers — *If you are a small business owner or running a company solo, take extra care not to fall into a negative spiral!*

Small business owners are susceptible to accepting too much responsibility. Running a successful business can take its toll on anyone. Even if an entrepreneur sets aside growing their family or having a social life and focuses solely on their company, the magnitude of tasks can be overwhelming.

To prevent a burnout, start by understanding what the signs are:

Lack of motivation
Easily irritated
Fun job tasks are no longer fun
Avoiding your business in conversation

If these sound like you, we offer a simple solution of 3 R’s you can use day to day. These are Relax, Rewind, and Review.

Relax

This one can be the most difficult because we are instinctively active. However, the productive “doing” part of your life can only go on for so long. Remember, like a muscle, the mind must be given time to relax and reset. If you keep yourself in “doing” mode, you can end up overextending yourself; this is how fatigue sets in. We have some tips for relaxing during the workday here.

business owner reading a book by the ocean on a porch — *Relaxing can still be rewarding! Do something productive like reading a book or taking a yoga class to unwind.*

Take some time out to do things that are completely unproductive. Again, this is hard because staying “on the grind” is how brand empires are built. This doesn’t mean taking off for a week-long beach vacation. Some lifestyles simply do not allow for this; it does mean to pay better attention to your sleep habits, make sure you’re getting enough, and let your mind rest.

This can be accomplished by setting aside 30-45 minutes before bedtime for restful activity. Read, drink some herbal tea, or meditate before bed. This will not only ease your sleep schedule but also provide some quality “you” time.

Rewind

Another practice is “rewinding” or re-prioritizing. Avoiding a burnout stems from our ability to connect with our past motivations. Do you remember why you started your business? Do you remember the feelings you had earning your first dollar or reading your first glowing customer review?

Take care not to get too comfortable with your current situation. Sometimes, contentment can pull wool over your eyes from past mistakes. Practice gratitude for what you’ve done, even small things, and stay grounded!

Let’s take another look at Kate. Her bakery experienced some pretty rough months getting started: roach infestations, late deliveries, and slow weeks. However, Kate stuck it out and made it through the rough period. Now though, her bakery was held up at gunpoint. Instead of letting that get her down, Kate rewinds and remembers the hardships starting out and her triumphs. If she can make it through those, she can make it through worse.

Review

After rewind is the review. Taking a step back can give you a better perspective on your situation. leads to fresh ideas, more motivations, and decreases your burnout risk.

two business owners talking about their companies — *Talk to other business owners or your customers and ask for feedback. What can you do to improve your company?*

The review process can be as simple as keeping a business journal, utilized by writing what you’ve learned along the way. The journal can be a notebook, margins in a financial document, or one of many note-taking apps available on our devices. Just make sure it is easily available for you and not anything that can be defaced.

When you review, focus on the positive aspects you’ve accomplished as a small business owner and take into account the lessons that have helped your company grow. For example, Kate, her bakery may not have the growth she anticipated, but she took notes about her first months. Upon review, she noticed that her bakery did well during school months when students came after release and bought snacks. Armed with the new info, she decides to bake a new muffin flavor and advertise student discounts. With the new plan in motion, she makes a new projection with enough profit to buy better insurance coverage.

Be like Kate. Take the time to use your 3 R’s every day. You may not have a bakery, but business burnout is not just for bread. Utilize the apps available or even take the time to keep a journal, your company is worth it.

Theft Exclusion: Ways Your Insurance Might Not Cover You

It is a fact that insurance policies have loopholes in them. One loophole is theft exclusion, and it affects most commercial insurance policies, even if the words “theft exclusion” are not presented in black and white.

close up of broken window — *Have you been robbed before? Break-in’s happen, so you’ll want to prepare for the worst.*

These tiny words can spell disaster for you should a theft occur on your property. Not only can they leave you high and dry during an unfortunate time, but you can also feel bad for not reading the fine print. More simple mistakes business owners make can be found here. Not to worry, there are steps you can take to prevent being blindsided by theft exclusion. Before that, let’s talk about what you need to know.

What Theft Exclusion Is

Most exclusion clauses come in mighty fine print. It’s no secret companies make excellent use of wordy contracts. Who reads complete terms and conditions anyway? Forget the owner’s manuals…

However, we must look into theft exclusion. The clause removes an insurance company’s duty to provide financial assistance to you in your time of need, depending on the situation. While in most cases your property insurance (within a Business Owner’s Policy) covers a loss, the rules set down for covering said losses are outlined when you purchase a policy. It is extremely important that business owners read the fine print completely before signing.

This can be a challenging situation for anyone with commercial insurance to understand without seeing it in action. Consider this:

Example:

You own a restaurant. One night, you pass by and notice a broken window. Heart pounding, you discover your beautiful business was robbed. The criminal shattered the entry window, cut the power to your security system, and made off with your cash register.

security cameras for a business — *No matter how much security you have, a good thief can find a way in.*

To make matters worse, the food in your refrigerated coolers was in the “danger zone” for too long and is now unsafe. Not only are you out of money, but you are also unable to continue running your business.

So, you file a reimbursement claim. Most claims support damage incurred during the looting, but excludes the peripheral damage. You might receive compensation for the window and cash register, but you can kiss food reparations goodbye.

What You Can Do

When signing for your policy, speak with the underwriter so that you completely understand the coverage you qualify for. Further, look into what exclusions apply. For example, the situation above was exacerbated by the clause “due to temperature changes, the loss is disclaimed for property damage.”

It might cost you more money during the sign-up period, but it can make a complete difference come bad times. Whether you are looking to purchase a new policy or renew an old one, the wise business owner will take a good look at what their policy covers–and what it excludes.

EZ.Insure saves you from these headaches. Your agent will answer any questions you have, compare different plans for you, and even sign you up when you’re ready, free of charge and without having to worry about being hounded by endless calls. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-350-1890. EZ.Insure makes the entire process easy, and quick.

Do You Need Drone Insurance?

What’s that in the sky? Is it a bird? Is it a plane?

pilot with drone insurance flying a drone — *Drones are fun, but they can get us into trouble. Like any company vehicle, make sure yours is properly insured.*

Nope, it’s a drone, or unmanned aerial vehicle (UAV).

Commercial drone usage is growing because new products and services become accessible once your company purchases one. While they are useful, new technology opens up new possibilities, both positive and negative. Accidents happen even with the safest equipment. Consider purchasing drone insurance coverage when you upgrade your company with its own drone.

Remember when purchasing to make sure you are up to date with your city’s air codes, privacy laws, and vehicle operation licenses as these will be brought up in conversations with your insurance agent. Purchasing a drone may also require hiring a trained drone pilot or remote controllers. With all of these additions, a wise employer will consider drone coverage. The freelance drone pilot should look into these policies as well.

Commercial Uses for Drone and Their Hazards

Problem:

Drones fly at a low altitude, perfect for getting an amazing company picnic selfie. While they are considered unmanned aircraft, drones can trigger nuisance laws as people feel like they are invading their privacy. These claim types are in court at this very moment. The drone’s reputation as an “eye in the sky” is a great selling point but comes as a double-edged sword.

Solution:

Check to see if your Professional Liability insurance will cover privacy claims. Your Business Owner’s Policy will most likely need an addition for your drone.

Problem:

These tiny aircraft are also great for gathering data, but this has them flying into spaces where people work. While the drone pilot may be experienced, accidents can still occur. You don’t want someone to be smacked in the shoulder by a drone and not have coverage.

Solution:

General Liability insurance for the drone or Worker’s Compensation in specific cases

There are different drone models available for any type of business. Which kind would you want to get and what would you use it for?

Problem:

Another drone attribute is its property value. Like any technology, a properly insured piece will be a great asset for your company. Unlike other company property (unless your business owns aircraft), these handy robots should see more exposure to the elements and other hazards, making them more likely to fail due to durability issues or otherwise.

Solution:

Property insurance

Problem:

The last issue concern is due to the drone’s robotic nature. Drone operation does not have to be exclusively human. The aircraft operates via radio waves and some can carry onboard computers. This puts them at risk for cyber attacks as they may carry information on top of their guidance systems. A normal cybercrime may consist of perusing information on your laptop, but a drone cybercrime can have more physical consequences. Picture your drone, hacked and out of control, careening towards a group of people on the sidewalk.

Solution:

Cyber liability insurance

Experts speculate drones for commercial purposes to skyrocket in the near future due to their performance with millions predicted to cover US skies. Amazon is currently working with Prime Air, a drone delivery system that can bring Amazon goods to your doorstep in 30 minutes or less. Hospitals can use them to bring medicine quickly to ailing people, and photographers can capture great footage with ease. Their capabilities are sky-high, but so are the dangers. The insurance industry has taken these into account. So, don’t be caught without drone insurance.

And EZ.Insure will take your business into account. Your agent will answer any questions you have, compare the plans available to you, and even sign you up when you are ready, free of charge. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-998-2027. EZ.Insure makes the entire process simple, easy, and quick.

2 HRA changes Coming in 2020. Will They Affect You?

With the current health reimbursement arrangements, the new HRA changes might be welcomed, especially if you’re saving money this year. It can be hard to keep your employees covered, especially for small businesses with fewer options. Some good news is on the horizon. In June 2019, government officials decided that employers can offer two different health reimbursement arrangements (HRA) to their employees. These new options alleviate the stress previous IRS restrictions had on the coverage type. With the current administration’s push for health insurance change, we should see results after their start in January 2020. Thinking about starting a HRA for your employee’s? Read about the current status first before you decide on the right time.

medical appointment book plus stethoscope and pen — *Keeping an HRA was something of a challenge. Hopefully, in 2020, this will be a better option for people.*

What Is a HRA?

For business owners, a health reimbursement arrangement/account is a benefit for employees. If employees are to pay a medical expense out-of-pocket, then the account assists them during this time. It is advantageous for the employer because of the tax benefits. In addition, the company pays for it. It works by setting up a limit for each account. The employee may incur medical expenses, then be reimbursed from the company account up to this limit. This is not health insurance, but instead an option for the smaller business that cannot afford Group Health.

What Is It Like Now?

Presently, employers pay into these accounts as an added benefit for employees. Then, employees can withdraw for their expenses. However, the HRAs annual limits can be broken, violating stipulations put in by the Affordable Care Act. This has caused frustration between companies and the IRS as HRAs had strict guidelines separating them from other forms of health insurance.

What HRA Changes Will Look Like

The Trump administration’s proposed shifts should alleviate these prior concerns using integration into health insurance plans. This means expansion of what an HRA can do and their definitions are. In 2020, the HRAs used alongside non-group health insurance have two new names:

business owner talking to a doctor about an HRA — *Change is usually a good thing. What can you look forward to next year with your new HRA?*

Excepted-benefits HRAs (EBHRAs) – These are used specifically to reimburse “excepted” benefits. For example, they might help with dental. Look for this is you are wanting more coverage in outlier benefits.

Individual-coverage HRAs (ICHRAs) – These HRAs, like their name says, are combined with an individual’s health insurance.

These changes can be a positive force for small business owners that are looking for solutions to keep their employees covered.

If you are looking to get more coverage for your company, EZ.Insure offers solutions. Your agent will answer any questions you have, compare the plans available to you, and even sign you up when you are ready, free of charge. To get started simply enter your zip code in the bar above, or you can speak to an agent by emailing replies@ez.insure, or calling 888-998-2027. EZ.Insure makes the entire process simple, easy, and quick.