commercial insurance Archives - Page 7 of 12

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.

Ways To Minimize Commercial Insurance Costs

If you own a business, commercial insurance is a must. Depending on the type of business you own, you could need a number of different commercial policies. Having all of these different policies can come with a hefty price tag. The bad news is there’s no getting around having commercial insurance; just one mistake could lead to a lawsuit and even the loss of your business. The good news is that there are things that you can do to reduce the cost of your commercial insurance, and keep the future of your business secure.

Assess What You Really Need

illustration of a woman in business attire looking at a computer screen that says "risk assessment" on it — *In order to save money, you will need to assess what kind of coverage you need depending on the risks that can happen.*

Commercial insurance is 100% necessary, but you should really look at which policies are right for your business, so you know you’re protected but not overspending. The first type of policy to consider is property insurance to protect your building and its contents. If you have employees, you will need worker’s compensation insurance to protect you in the event that an employee gets hurt on the job. You will also most likely need general liability coverage to protect against lawsuits.

After purchasing those three major types of policy, you can determine whether you need other policies like cyber or professional liability insurance. Cyber liability will protect you in the event of a data breach, and professional liability will cover you in the event of an unfulfilled contract, mistake that leads to a client’s financial loss, etc.

No-Lapse Coverage

If you have a business that goes through slow seasons, it may be tempting to drop your insurance coverage when you hit a slow down. But you should know that doing so can have consequences. For example, if you continually drop your insurance, and then pick it back up when sales increase again, insurance companies will think twice about covering you. It is important to remain consistent in the eyes of the insurance company you’re working with. Not only that, but going through a slow season doesn’t mean that an accident or damage can’t still happen to your business! Keep your policies year round so you never have to worry about coverage.

different sized arrows, getting larger the lower it goes, with letters starting from A to G at the bottom — *Classify your employees correctly in order to avoid overpaying premiums.*

Classify Employees Properly

When you purchase workers compensation insurance, each of your workers need to be assigned a workers compensation classification code based on the type of work they perform. Your insurance company will use these codes as part of their formula for determining how much to charge you for your policy. Make sure your employees are classified correctly, otherwise you could end up paying higher premiums than necessary.

Security Is A Must

If, like most businesses, your business operates online, you have a lot of your customers’ sensitive information in your hands – and they expect you to protect it. To protect their information from security breaches, and your business from lawsuits and reputational damage, make sure you’re doing all you can to minimize the risk of cyber crime. Upgrade your systems, use VPNs, and talk to your insurance agent about cyber liability insurance.

Bundle Policies

As we mentioned above, your business will probably need at least general property and liability policies to be sufficiently covered. You might also need a few other types of policies. If you are looking to buy multiple policies, consider bundling to save money. Purchasing a business owner’s policy (BOP) can be cheaper than buying different policies individually.

Reduce Risks

If you want lower insurance rates, you will have to reduce risks within your business. If your insurance company sees your business as high risk, they will charge you more for your premiums. However, if you constantly train your staff, make sure that your business is clean and safe, and do everything you can to minimize claims, you can lower your premiums.

two bundles of money — *Policies with higher deductibles will have lower monthly premiums, which can help you save more.*

Opt For A Higher Deductible

Policies with higher deductibles have lower premiums. If you are looking for ways to save, consider opting for a higher deductible insurance plan to save on your monthly bill. Remember, though, to continue to minimize the risk of claims so you won’t have to worry about meeting your higher deductible.

Compare Plans

The best way to save the most money is by comparing all of your options. To do this quickly and easily, speak with an EZ agent, who will assess exactly what you need for your business. EZ.Insure works with all of the top-rated insurance companies in the country and can compare quotes instantly for you. One of our licensed agents will work with you to review your needs, and guide you through the whole process, at no cost to you. You could end up saving thousands of dollars a year just by working with one of our agents!. To get free instant quotes, simply enter your zip code in the bar above, or to speak to one of our 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.

Claim Or Lawsuit? Know The Difference For Your Business

The terms claim and lawsuit are often used interchangeably, but they have very different meanings and affect your business in very different ways. If you own a business, it is important to know the difference so that you can handle each situation properly, both in regards to the individual who is making a complaint against you and your insurance company. When someone files a claim against you (a claimant), it doesn’t necessarily mean that you will be facing a lawsuit. There are steps you can take to prevent major losses.

Claims

Claims are formal requests to be compensated for damages that are presented in writing to an insurance company. If you have been negligent, made a mistake, or caused some kind of loss to a customer or client, they can go to your insurance company with a claim, which could eventually lead to lawsuit.

When a customer files a claim against you, it will not necessarily cost you anything out of pocket if you are covered by a commercial liability policy. Once the customer submits a claim, your insurer assigns the case to a claim adjuster who then reviews the submitted documents and investigates further. Then a series of back-and-forth negotiations are initiated between the insurer and the claimant, which will result in a final claim amount being settled upon. The money is given to the claimant and the whole thing is over. As long as you have insurance when the incident occurs, then your policy will take care of it.

brown gavel on the block — *Lawsuits will cost you more than a claim, because you will need defense and can lose a lot more money.*

Lawsuits

Lawsuits are more involved than claims, and will cost you much more than a claim made against your business. A lawsuit is filed if no settlement can be reached through the claims procedure, or when the demands of the claimant are not met. You can attempt to resolve the lawsuit via mediation, but, no matter what, a lawsuit will cost you more than a claim. This is because you will have to hire an attorney to represent you even in the case of a mediated suit. You could end up losing a substantial amount of money during a lawsuit, through both attorney fees and damages, which could greatly hurt your business.

What You Can Do

The best way to protect your business from both claims and lawsuits is to have commercial liability insurance. A general liability insurance policy will protect you in most instances, but a professional liability insurance plan will cover your business for claims resulting from a service provided. Errors and omission insurance, which falls under the umbrella of professional liability insurance, is claims-made coverage, which means the policy will cover claims on active policies regardless of when the claim happened. If you want to simplify your commercial insurance, a business owner’s policy can bundle all of your coverage needs into a single policy. It is best to stay ahead of the game before a claim is made against your business. Accidents happen, so it’s important to make sure you are protected.

illustrationof two businessmen in suits shaking hands while standing under a yellow and red umbrella. — *Get properly insured to protect your business by speaking with an EZ.Insure agent.*

Need Help?

Don’t make the mistake of getting the bare minimum commercial insurance coverage that just includes the basics. If you don’t have the proper liability insurance, you could end up losing your business. Liability coverage will help cover the cost of lawsuits, including your legal defense and any damages that you are ordered to pay.

To find the right commercial insurance to fully protect you from a claim or lawsuit, you need to do a lot of research, because different businesses will require different policies. EZ’s agents are trained in the commercial insurance industry so we can help cover you and your business. We understand how important it is to protect something that you worked so hard to build. Our agent will go over all the policies you need and will find the best rates with the most coverage. To start comparing plans for free, enter your zip code in the bar above, or to speak to an agent, call 888-615-4893.

How To Save More On Business Insurance With EZ

It is easy to find cheap commercial insurance, but, more likely, a cheap plan will not provide the coverage that your business needs. If a policy is a lot less expensive than others, there is usually a reason: most cheap plans do not cover what other policies do. Saving money by cutting corners will just lead to insufficient protection, which can only end up costing your business money. Having the right business insurance is important for the success of your business and your bottom line. There are ways to find affordable commercial insurance with the proper coverage for your business so that you can save money in the long run.

caucasian woman sitting at a desk looking at her laptop with her hand on her chin — *You can get the most savings by understanding what kind of insurance your business really needs.*

Understand What You Need

Different types of businesses face different types of risks, and will need different types of commercial insurance. Some businesses require multiple insurance policies, while others require just one or two policies. Having a better understanding of exactly what your business needs will ensure that you’re covered in every eventuality.

If you run a moving company, for example, you will have to insure all of your commercial vehicles, as well as the workers who are driving them. You will also need commercial liability insurance to protect your business against claims that you damaged customer property. To make sure that you are covering every aspect of your business, consider speaking to an EZ agent. Our agents are educated and experienced in the business insurance industry, so they can advise you on what insurance your specific business needs.

Choose A Higher Deductible

The higher your deductible is, the lower your premiums will be. If you want to save money on insurance, then consider opting for a higher deductible. This will save you money on the premium costs, since your premiums would be lower than those of other plans with lower deductibles. But before opting for a higher deductible, make sure that you would be able to pay your deductible if something did happen.

Consider Paying in Full

You have the option to pay your insurance premiums in full for the year, or to pay in monthly installments. You can save money by choosing to pay for your policy in full, because many insurance companies offer discounts for up-front payment. If you plan accordingly and set money aside throughout the year, you can pay for your insurance policy in one payment and lower your premiums without losing any coverage.

Bundle!

Most insurance companies will offer a discount when you purchase multiple policies. It can be cheaper to buy a package policy such as a business-owners policy (BOP), as opposed to purchasing general liability insurance and commercial property insurance separately. Packaged policies, while cheaper, offer just as much coverage as separate policies.

Ways To Prevent Losses

body in a suit with caucasian hands pointing at an insurance policy that is being held by another set of hands — *If your insurance company has some recommendations to follow, then do so so you can save more.*

You can reduce your insurance premiums for certain types of coverage by following any recommendations given to you by your insurance company. This can be anywhere from increasing workplace safety measures to human resource interventions. Knowing what the recommendations are and following them can mean saving more money. Following these guidelines can also help to reduce the number of claims you make on your insurance, which can further lower your premiums – insurance companies tend to reward customers who haven’t made any claims.

Reduce Risks

If you have any outside third parties working for your business, you can save money by making sure that they have their own insurance coverage. This means that, if an accident or other loss occurs, you won’t be held liable and have to pay any claims. In addition, if you decide to work with another business, ask to be listed on their policy as an additional insured. By becoming an additional insured on their policy, you are minimizing your risk if something goes wrong.

Use An EZ Agent

Researching and comparing insurance can be difficult and time-consuming. Instead of feeling helpless and lost, contact an EZ agent. Working with one of our experienced insurance experts will help you save money without sacrificing coverage. What separates us from the rest is that we offer expert advice at no cost to you, and we work with all the top-rated insurance carriers in the United States. That means we can compare all available plans to find you the best coverage at the right price – and we’ll do it for free! We can also guide you towards a bundle so that you can save more money. Start saving money by entering your zip code in the bar above, or to speak directly to one of our licensed agents call 888-615-4893.