commercial insurance help Archives - Page 4 of 7

As Your Business Rebuilds, EZ Can Help You Save

Let’s face it, the pandemic has put a lot of strain on small businesses, many of whom are now struggling to survive. If you’re a small business owner, you might have had to let some employees go, shift around their duties, or even consider shutting down for a while. All of this will have changed the way your business operates, and you might have to work to get it back to how successful it was previously. There is no doubt that at this time you will want to save as much money as you can, and this probably includes looking for ways to save on commercial insurance. It is possible to focus on rebuilding your business while saving on commercial business policies, including worker’s compensation insurance, with help from an EZ agent. Here are some tips to consider when rebuilding.

Assess The Damage

Unfortunately, your business might have experienced a lot of financial hardship in the past year. You’re not alone: many businesses have had to take a loss during the pandemic. Assess the damage by comparing this year’s numbers with last year’s, and considering your total assets. Include the impact of losing employees and reducing their hours or changing their roles. Remember, with changes in operations or employee positions come changes to your commercial insurance policy. You might need to lower your liability limits, change your worker’s compensation policy, or change/add policies.

Reconsider Your Business Plan

The business plan that you had pre-pandemic is most likely looking a lot different right now. Focus on a new business growth model, whatever that might mean for your particular business. Do you need to focus more on marketing? Hire more employees? Make changes to how your business is run?

illustration of a hand filling out a loan application sheet of paper — *Consider taking out a loan to help you recover some of your losses.*

Consider A Loan

If you took a huge financial loss, consider looking into a loan. There are many small business loans (SBAs) you can consider, including the government’s pandemic-related Paycheck Protection Program, which provides funding to help business owners keep their employees. Getting a loan can help you invest in your business, or keep you afloat while you create a new business plan.

Save On Business Insurance

As mentioned, when you lose employees or shift their positions, it can completely change how much you pay in premiums for worker’s compensation insurance. You could be spending more than necessary, and the same goes for your commercial insurance policies. You want to make sure that you are properly covered, and if you have changed how your business operates, you need to do the same for your commercial insurance policies!

Develop A Time To Rebuild

Understand that it will take some time rebuilding your business back up to what it used to be. Take your time and create a realistic timeline for your priorities. Just remember to add protecting your business to the top of that list!

If you are interested in comparing commercial insurance policies, an EZ agent can help. With us, you will work with one agent in your area who deals with the nation’s top-rated insurance companies. We will assess your company’s needs and make sure that, as you focus on rebuilding, you are completely covered. To get free instant quotes, enter your zip code in the bar above, or to speak to a licensed agent, call 888-615-4893. No hassle or obligation.

General Liability Vs. Professional Liability

Just one single lawsuit can damage your business beyond repair, so there’s no doubt that you need liability insurance. But it can be a challenge to figure out what kind of commercial insurance your business needs. Different policies cover different risks and claims; in fact, one of the most common questions from small business owners is “What’s the difference between general liability and professional liability insurance?” Both cover different types of risks, and figuring out how each works can be confusing. Understanding how they compare will help you make the best decision for your business. You might even need both!

What Is General Liability Insurance?

brown gavel — *Court, attorney fees and settlements will be covered under general liability insurance.*

General liability insurance is the most basic kind of commercial insurance. It covers costs if a third party accuses your business of causing them physical harm, damaging their property, harming their reputation through slander, or advertising errors that infringe on their copyright. These policies are usually written on an “occurrence” basis, which means that all losses will be covered during the time of the policy period, regardless of when you file the claim. General liability insurance will cover expenses including:

Court costs
Attorney’s fees
Settlements
Judgements
Third-party medical bills
Third-party repair bills

What Is Professional Liability Insurance?

Professional liability insurance, which includes errors and omissions, or E&O, insurance, covers legal defense if a third party claims they suffered a financial loss as a result of your negligence. It is written on a “claims made” basis, which means that the damages had to have occurred within the active policy period or they will not be covered. Some of the claims that professional liability insurance covers include:

Negligence
Inaccurate professional advice
Failure to uphold contractual promises
Work that was not completed
Work mistakes or omissions

caucasian man and woman mad at an African american man in a suit sitting at a desk. — *Both insurance policies will cover you in the event of any damages to third parties.*

Coverage will typically pay for:

Attorney’s fees
Court costs
Investigator’s bills
Settlements
Judgements

How They Are Similar

Both protect against business liabilities and cover:

Damage to third parties.
Accidental damage, not intentional damage
Restricted coverage within a specific area; if you go outside that area you will not be covered.

How They Differ

The main difference between general liability and professional liability insurance is the risks they cover. General liability insurance will cover physical risks, like bodily injuries or property damage caused by your business’ daily operations. Professional liability covers financial losses resulting from negligence, errors, or omissions that occur when you provide your services to others.

Who Needs General Liability Insurance?

Every business owner should consider buying a general liability insurance plan to protect their assets. Accidents happen, and when you own a business, these accidents can be quite costly. You should consider general liability insurance if you:

black and white photo of the back of a woman sitting in front of a computer screen. — *If you have a home based business, then general liability is necessary. If you provide professional services or advice, then professional liability is necessary.*

Have customers visiting your location.
Rent a physical location.
Handle other people’s property.
Own a home-based business.
Sell, manufacturer, or distribute products.
Advertise your services.

Who Needs Professional Liability Insurance?

Professional liability insurance is important to consider if your business provides professional services and has specialized professional training. Some professionals might even be legally required to obtain this type of insurance. You should consider a professional liability insurance plan if you:

Provide professional or technical services or advice.
Are expected to maintain professional standards.

Some examples of people who should have professional liability insurance are lawyers, consultants, accountants, and technology inspectors.

Which Do You Need?

In many cases, you will need both policies to fully protect your business from an unexpected lawsuit. EZ.Insure provides licensed agents who are highly trained in commercial insurance and can help determine which policy better suits your business, or if you need the coverage of both types. We will compare all plans and find the plan that offers the most coverage at the best price. To get free quotes, simply enter your zip code in the bar above, or to speak with one of our specialized agents, call 888-615-4893.

Difference Between Admitted & Non-Admitted Insurance Companies

When shopping for commercial insurance, it can seem like the choice of insurance companies is endless. There is so much you need to learn about each company, including whether they are “non-admitted” or “admitted.” These two terms relate to how insurance carriers are classified and the regulations they must follow. The differences between the two may seem like technicalities, but it is important to know these differences, and the advantages and disadvantages of each type of company, so you can choose the right one to protect your business.

Admitted Insurance Companies

approved stamp with stars around the word in a circle. — *Admitted insurance company’s products must be approved by the DOI with a set rate.*

Admitted insurance companies are “admitted” by a state to conduct business as an insurance company. In order to conduct business, the insurance company has to comply with the regulations set by the state’s Department of Insurance (DOI). These regulations include:

Each rate and insurance product must be approved by the state’s DOI before they can be sold.
They must file their rates with the state, which means that they do not have pricing flexibility.
Admitted insurance companies have a capitalization requirement, meaning the company has to have a liquid amount of cash greater than the minimum regulatory capital levels needed to operate a business.
The organization, or how the company is operated, dependent on how profits are accrued and distributed, is also regulated. For example, a stock company has stockholders, whereas with a mutual company there are no stockholders; instead, the policyholders are owners of the company.

The benefit of working with an admitted insurance company is that if the insurance company fails financially and becomes insolvent, the state has the responsibility to pay the insurer’s claims up to the specified limits. In addition, customers of admitted insurance companies have the right to go to the DOI to appeal claims if they feel that the claim was mishandled.

Non-Admitted Insurance Companies

Non-admitted insurance companies, also referred to as “excess surplus,” or “surplus lines” carriers, are not held to the same standards that admitted insurance companies are. They do not operate under an individual state’s insurance laws, so they do not have to follow the same rules for underwriting, rate setting, and coverage. These companies:

Have more pricing flexibility than admitted insurance companies.
Have larger capital reserves in order to conduct business. The accumulated capital surplus of the company, created out of capital profit, will offset any losses they might face.
Are subject to more fees and taxes, which can make the insurance they sell more expensive.

Unlike admitted insurance companies, if a non-admitted insurance company becomes insolvent, there is no guarantee that claims will be paid. In addition, you cannot appeal to the state’s DOI if you believe your claims were mishandled. Non-admitted carriers can’t write policies that are on the admitted market.

The advantage of using a non-admitted insurer is that they have more flexibility when it comes to pricing and they have the ability to insure more than admitted carriers can. They can fill in the gaps that admitted carriers cannot, such as insuring higher-risk events and specialty risks, such as professional liability insurance, that admitted carriers cannot afford to cover.

Which Is Better For Your Business?

Depending on the type of business you own, there might be advantages and disadvantages to each type of insurance carrier. Admitted insurance companies might be the way to go if:

You don’t want to pay as much in fees and taxes when buying a plan.
You want to be sure that your claims will be paid even if the company fails.
You want the ability to appeal a claim to the state insurance department.

However, if you need more high-risk coverage that an admitted insurance company does not offer, such as hurricane or earthquake damage, then a non-admitted insurance company is the way to go. With non-admitted insurers, you do not have to worry about meeting underwriting criteria, which can be beneficial if you have filed multiple claims in the past or are considered a high-risk business.

It is important to note that just because a non-admitted insurance company is not subject to state regulations, does not mean it is not a stable or reputable company. The best way to determine the quality of each insurance company is by checking the grade given to it by rating firm A.M. Best Company; they give each company a letter grade from A++ to F.

EZ.Insure works with the top-rated admitted and non-admitted companies in the country, so we can help business owners find the best policy for their needs. To compare quotes for free, simply enter your zip code in the bar above, or to speak directly to an agent, call 888-615-4893. We will compare quotes instantly, discuss the pros and cons of both types of insurance company and answer any questions you have.

How Workers Comp Settlements Work

Unfortunately, workplace accidents and injuries happen. When they do, it can be very costly for a business. If one of your employees is injured on the job, they can claim workers compensation benefits to help pay for their medical expenses, lost wages, and disability benefits. These benefits will be provided by the employer’s (your) insurance company. But, in some cases, an employee may not be happy with the amount offered by your insurance company. Be aware that your employee does not have to accept the insurance company’s offer for their workers comp claim. This is when a workers comp settlement is required.

How Workers’ Compensation Claims Work

two hands holding a magnifying glass in each hand — *When a worker gets hurt, you must first get them medical help and then investigate exactly what happened for your claim.*

If your employee is injured at work, they have to report it to you, the employer. If this happens, you need to take the following steps:

Get your employee medical attention right away
Investigate the accident by documenting what happened and by taking witness statements and pictures, if possible
File a claim with your insurance provider

Each state has different timelines for filing a claim, but, in most cases, the claim must be reported within anywhere from 72 hours to two years, with a typical requirement of within 30 days from the injury. After the claim is filed, your insurance provider will review the claim and either approve or deny it. Claims are usually approved, but if one is denied, your employee has the right to appeal the denial in an administrative hearing. Your employee can choose to hire an attorney to represent them and possibly pursue a larger settlement. Not all employees will choose to go this route, because it means risking a lower settlement. This course of action is most common for permanent disability claims.

The Settlement Process

If your employee does choose to hire a lawyer to pursue a larger settlement, they will pursue what they (in discussion with their lawyer) believe is fair compensation. In most cases, they will seek a workers compensation settlement that covers:

Attorney fees
Disability payments if the injury leaves the worker permanently impaired
Medical bills
Surgery and future medical treatment
Cost of retraining to perform the job, if necessary
Lost wages and future wage loss

How Workers Comp Settlements Are Paid

Once the calculation is finalized with the employee and their attorney, they will begin negotiations with your insurance company. The settlement will generally be a compromise between your insurance company and the attorney, and can be paid in one lump sum amount or as a structured payment plan. If your employee is not willing to settle, the case will go to trial, also known as a worker’s comp hearing or workers compensation lawsuit.

Once your employee accepts a settlement, they must waive their right to sue you. However, if they got hurt because of your (or a third party’s) direct negligence, then the employee can bypass the workers compensation process all together and instead choose to sue you or the third party for damages.

Employer’s Role During Settlement

There is not much that you can do during the settlement negotiations except to make sure it goes as smoothly as possible. To do this, you will need to keep the lines of communication open and stay updated throughout the whole process. The best way to do this is by reaching out to your insurance company.

Protect Yourself With The Right Insurer

If you currently have workers comp benefits but would like to search around for other options, or if you are starting a business and are in need of workers comp insurance, come to EZ for free instant quotes from one of our licensed agents. Because every state has different rules on workers comp insurance, it is important to know the requirements for your specific state. Your EZ agent will be highly trained in your region’s rules and can guide you through the process, while comparing quotes for all the plans in your area. We will find you the best plan for your budget. To get started, simply enter your zip code in the bar above, or to speak directly with one of our licensed agents, call 888-615-4893.

Why Cyber Liability Claims Are So Costly

You have probably heard or read about something like this in the news- a large company is hacked, leading to a major data breach. For example, not too long ago, big box store Target was the victim of a hacker, and thousands of customers had their sensitive information exposed. Fortunately for big companies like Target, they are large enough to survive a cyber liability lawsuit. Unfortunately, many small businesses aren’t so lucky. In fact, more than 60% of small businesses go under within 6 months of a cyberattack. Cyber liability breaches (and claims) come with expensive legal settlements and large fines, not to mention damage to your reputation and brand. It is important to have the right cyber liability insurance policy, because recovering from a cyber security breach can drain your business’s time and money.

How Much Can Cyber Claims Cost Your Business?

a hundred dollar bill on fire, burning. — *A data breach can cost your business thousands, even millions of dollars.*

Data breaches can cost your business an enormous amount of money. There is a lot you need to do in the case of breach, which all adds up. You have to notify all of your customers whose information was affected as soon as possible (as required by state law). You must also investigate and correct the breach, which can cost a lot of money, and take months or even years. A study from the IBM/Ponemon Institute found that data breaches cost businesses $242 per stolen record on average. That means the average U.S. data breach costs more than $8 million.

The reason cyber liability claims cost so much is that they include the costs of:

Finding and repairing the cause of the breach– Hiring an expert can cost anywhere from $200 to $2,000 per hour.
Notifying customers– Contacting the affected parties can cost anywhere from $1 to $5 per notice.
Credit monitoring for affected customers for two to three years– This can cost anywhere from $10 to $30 per individual, and needs to continue for at least 2 years.
Fines or penalties
Client’s financial losses if you are sued– The average cost for legal defense is $740,000, while the average legal settlement is about $2 million.
Defense costs and legal fees

What Cyber Liability Insurance Covers

While some small business owners might think that cyber liability insurance is only necessary for big companies, this couldn’t be further from the truth. Any business, no matter the size, can be hacked, and a network failure or breach can end up costing you hundreds of thousands of dollars. Any business that operates online and handles sensitive information needs cyber liability insurance. For example, if customers use credit cards to pay for your services on your site, then you are at risk of a breach.

Cyber insurance provides protection for your business from financial losses as well as the cost of data loss to your customers. It covers:

Cyber Extortion– If a hacker accesses your database and is holding it for ransom, cyber liability insurance will help recover those losses.
Forensic Support– Your policy will cover investigation-related expenses and consultation fees.
Legal Fees– Cyber liability insurance helps pay for legal help and advice when dealing with a lawsuit brought by clients or staff.
Business Interruption– A data breach affects your day-to-day operations, which leads to additional losses of income and revenue. Cyber liability can help cover these losses.

Different Cyber Liability Insurance

There are two kinds of cyber liability coverage:

First-party cyber liability insurance covers costs from a cyberattack or data breach on your own network or systems.
Third-party cyber liability insurance protects businesses from lawsuits related to a cyber incident that affects a client.

Cyber liability insurance might seem pricey, but when considering the cost of cyber liability claims, it is a necessary expense. If you are worried about the cost, remember that there are many different plans that can be tailored to your specific business and needs. You can choose how much coverage you need and how much you can afford to spend. Most business owners add first-party cyber liability insurance coverage to their general liability policy, so you might be able to get a deal if you bundle your policies.

If you are interested in cyber liability insurance, and do not know where to start or what type of coverage you need, EZ can help. EZ.Insure understands just how important it is to protect customer’s information. We will provide you with an agent to help you find the right plan to fully cover you and protect your customers’ privacy. Your agent will compare quotes from all plans available in your area, and find the best plan at the best price. Even having the best cybersecurity does not completely eliminate the risk of a data breach, so it is best to protect your business with insurance. To get instant free quotes, simply enter your zip code in the bar above, or to speak directly to an agent, call 888-615-4893.

Can Your Insurance Company Cancel Your Business Insurance Policy ?

One of the first steps in getting your business up and running is making sure it is insured. Once it is fully insured, you can rest easy knowing that your hard work is protected in the event of any mistakes, damages, or other liability issues. But it is important to remember that insurance is an ongoing commitment. If you don’t keep on top of it you could end up with a letter or call from your insurance company saying that your business policy is going to be canceled. In order to keep that from happening, be sure to avoid the following.

Filing Too Many Claims

Insurance companies are businesses, and, as such, they need to worry about their bottom lines. When they protect you, they take a risk in protecting you. If you process too many claims, your insurance company will come to the conclusion that you are not taking the proper steps to prevent claims from occurring. If you are not minimizing your risks, they may see you as negligent, which could violate your insurance conditions.

Not Keeping up with Payments

Again, insurance companies are businesses and, as with all businesses, if you don’t pay for something, then that business has the right to no longer work with you. If you fail to make a payment or make multiple late payments, that will send a red flag to the insurance company that you are not reliable and cannot keep up with your policy.

Inaccurate Application or Renewal Data

If you accidentally (or purposefully) provide inaccurate information to your insurance company during the application process, this gives them the right to cancel your policy. If you unintentionally provide inaccurate information, your insurer may continue to work with you if you correct the information. But in many cases they will cancel your policy and not work with you to fix the issue. If they find out that you intentionally gave false information, not only will they cancel the business policy retroactive to the date coverage first became active, but they will also notify the proper authorities. Knowingly providing false information to your insurance company is considered fraud, which is a felony.

Preventing Cancellation

illustration of a two agents with a headset and 24/7 underneath with a conversation bubble next to it — *An EZ.Insure agent will be there for you 24/7, keep you on track, and help prevent any cancellations.*

In order to avoid having your business insurance policy cancelled, you need to be upfront, pay your bills on time, and try your best to keep claims to a minimum. Accidents happen, which is understandable; but if multiple accidents keep happening, then your insurance company will believe that you are not trying to prevent these claims from happening.

In addition, if you have moved to a new area, or if anything about your business has changed, be sure to notify your insurance company immediately. If you realize that any information you provided was not correct, then notify your insurance company immediately.

Having a good insurance agent is key to helping you prevent any cancellations; they can also present your case if your insurer does decide to cancel your policy. EZ’s agents will do just that for you. Our agents are your biggest advocate and will always have your back. If you do end up losing your policy, contact an EZ agent and we will find you another commercial insurance plan that offers as much or more coverage than your current policy, and that saves you more money. To get started, enter your zip code in the bar above, or to speak directly to an agent, call 888-615-4893.

Tag: commercial insurance help