small business insurance Archives - Page 2 of 4

Primary Insurance Vs Excess Insurance

One of the most important things you can do as a small business owner is make sure you have enough insurance coverage in case of a claim or lawsuit against you. Liability policies will go a long way in protecting you, but do you know if there are gaps in your current commercial insurance policy? There might be, so it’s crucial to know whether you might need excess insurance to supplement your primary insurance policies.

Primary Insurance

gold medal with the number one on the front — *Primary insurance first responds to a claim, but it might not cover the full amount of the claim.*

A primary insurance policy is the first policy to respond to a loss or claim made against your business. Professional liability insurance and general liability insurance policies are considered primary insurance, and are great ways to protect your business against losses. But these primary plans might not cover the full amount of a claim if the claim amount exceeds the policy’s limits.

For example, if a customer comes into your store and is injured slipping on a spill that was not cleaned up and had no warning sign, they can sue you for the cost of their medical bills. If you are found responsible for the claim against you, your general liability insurance will pay up to your policy’s limit – for example, $1,000,0000. But if the settlement is $1,400,000, what happens? You would have to pay the rest out-of-pocket, which could cost you your business.

Excess Insurance

In order to avoid the above situation, you can choose to purchase excess insurance. When your primary policy cannot pay a claim in full because it exceeds the limits of your policy, your excess insurance kicks in. The primary purpose of excess insurance is to close gaps in coverage and offer another layer of protection. To get back to the example from earlier, if you had excess liability insurance in that case, the $400,000 you would’ve had to pay out of pocket would now be covered. Umbrella insurance is a common type of excess insurance policy.

Stacking

In certain states, you can stack your primary and excess insurance policies together. What this means is that you can add them together to create a higher total amount of coverage. For example, if your primary policy has $800,000 worth of coverage and your excess policy’s limit is $1,000,000, then your total available amount for a claim would be $1,800,000. If you cannot stack policies, you would first have to exhaust your base policy of $800,000, and then the total available coverage of your $1,000,000 excess policy would be $200,000.

map of the US with the states in different colors. — *Some states will allow you to stack policies so you get more coverage for a claim.*

The states that allow stacking are:

Alabama
Colorado
Florida
Georgia
Kentucky
Mississippi
Missouri
Nevada
New Jersey
North Carolina
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
Texas
West Virginia

Need Help?

Do you have a primary policy and/or an excess policy? Do you need help finding policies that will completely protect your business? If you need a new plan or just more coverage, EZ.Insure can help. We will go over your business’s needs and make sure that it is fully protected in any eventuality. Our agents work with the top-rated insurance companies in the country and can compare quotes in minutes to find a comprehensive plan while still saving you money. To get free instant quotes on small business insurance plans in your area, enter your zip code in the bar above, or to speak to one of our licensed agents, call 888-615-4893.

Protecting Yourself From Web Design Copyright Infringement

There are thousands of businesses out there making websites, all trying to create unique designs, logos, videos, text, and images. There is a danger that, when you create a website for your business, your design or logo might resemble that of another business. This could be totally coincidental, but it could still be a serious problem that ends in a copyright infringement claim. How will this affect your business? What steps should you take to protect yourself?

Copyright Laws

Copyright infringement happens when you recreate and display copyrighted work without the permission of the copyright holder.

You want people to notice your website, but what happens if another company notices that your website is similar to theirs? If your logo or design is similar to that of another company, you could face a legal copyright claim from that company.

Copyright infringement means that a copyrighted work has been recreated and displayed without the permission of the copyright holder. Copyright laws protect creative and intellectual property against anyone copying or stealing the design. Intellectual property that is protected will include the words “all rights reserved” or “copyright.” The laws surrounding intellectual property protect:

The automatic right to your creative work from the moment of its creation.
The exclusive rights to use, copy, or modify your original content.
Any intellectual property without the need for the author, artist, or developer to publish or register their work.

Avoiding Copyright Infringement

If you decide to create your own web design, or hire a web designer to do it for you, you need to familiarize yourself with the laws in order to avoid copyright infringement. Copying a website, whether intentionally or not, will come with consequences. Here is what you can and cannot do:

You cannot duplicate copyrighted designs such as images, text, or source code.
It is illegal to use someone else’s logo or trademarked material.
You are allowed to use inspiration from different sites and incorporate them into your web design (as long as it is not the same exact material).
It is legal to recreate designs similar to those on another site using custom code.
If you use a website template, there will be thousands of other sites similar to yours and you have no rights to the source code.
A custom website gives you ownership of your unique design, and another site cannot legally copy it.

If the owner of the copyright can show proof of infringement, you will have to pay a penalty for each infringement. This is not the only consequence to copyright infringement: you will also have to pay attorney fees and will suffer damage to your business’ reputation.

Protecting Your Business

Accidents happen, and that could include accidentally copying another person’s design or image. Companies are constantly changing their logos or website designs in order to keep up with what is popular, and you could end up using a similar design or image. Protect yourself with a business owners policy that includes general liability insurance, which will cover your business property and intellectual property. You should also consider a professional liability insurance policy, or errors and omission (E&O) insurance. This will protect you from copyright infringement, covering:

Court costs
Legal fees
Damages
Alleged or actual negligence
Personal injury costs

Creating a website is vital for your business, but it can be difficult to create a design that does not seem similar to that of the thousands of other sites on the internet. The best thing you can do is protect your business and its reputation with the right commercial insurance policy. EZ.Insure understands just how important it is to protect your business from claims, as well as your designs from copyright infringement. We work with the top-rated insurance companies in the country in order to compare quotes and find the best plan for your business. To get free instant quotes, simply enter your zip code in the bar above, or to speak to one of our trained, licensed agents, call 888-615-4893.

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.

Adding Endorsements To Your Small Business Insurance

Businesses grow and change all the time, which means that, at some point, you might need to modify your commercial insurance policies. While your policies are contracts, they are not completely set in stone. An insurance endorsement can add, take away, or exclude certain types of coverage. While some endorsements are added by your insurance company to minimize their risk, others can be beneficial because they allow you, the business owner, to customize your policies, which could save you money. For example, if you find that your policy has something that you do not need, you can request an endorsement to remove it. On the other hand, there might come a time when you need to extend your policy so that your business is fully covered. In this case, you can request an endorsement to add certain types of coverage.

Endorsements Explained

Endorsements are documents that are attached to your original insurance policy and are only good for that particular policy’s period. Some endorsements are added by your insurance company and can either exclude certain things from being covered or clarify what is covered by a policy. For example, some commercial property insurance policies have a wind and hail deductible endorsement, which requires you to pay a separate deductible in the case of wind or hail damage, while some general liability policies have exclusions for damages resulting from exposure to asbestos. Some endorsements clarify what is covered, such as a professional service exclusion, which makes clear that your general liability policy only covers bodily and property damage, not damage caused by professional advice.

As previously mentioned, other endorsements are additions that you can request for your policy. These changes can allow your business to grow and change while still remaining fully covered by your insurance policy. For example, if you change your business’s address, add another location, or add a new product, then you can make changes to your policy without the risk of losing insurance coverage.

Common Endorsements

There are some common endorsements that you might want to consider for your business:

stacks of coins going up with a green arrow above them going upwards. — *Adding locations and increasing your limits can be done with adding endorsements to provide more liability coverage.*

Additional Insured– This is most often paired with a general liability insurance policy and allows you to add a third party to your policy, such as a subcontractor who is doing work for you.
Adding/Changing Location– You can request endorsements to make administrative changes to your policy, such as a change of address or a change in the policyholder’s name. You can also add locations to your policy coverage; this will protect your new location and your current location.
Extended Reporting Period– This will give you the ability to report claims after the expiration date of your insurance policy on a claims-made professional liability policy, or on an error and omissions insurance policy.
Increased Limits– This endorsement allows you to increase your limit of liability for your business property, as well as to extend workers’ compensation benefits not covered by state law.
Industry-Specific Endorsements- You can also add coverage that is specific to your industry with certain endorsements, such as a contractor’s enhancement endorsement. These endorsements will cover equipment, property, and other tools specific to your industry, and at a cheaper rate than if purchased individually.

Adding An Endorsement

Adding endorsements to existing policies is a great way to continue your coverage as your business continues to grow. You can personalize your policies to add endorsements that fit your business’ needs. Adding them is easy: simply speak to your current agent, and ask that they be added when your policy renews, or when you are shopping for a new policy.

It can be confusing to know just how much coverage you need for your growing business. EZ.Insure specializes in breaking down your needs and your risks. We will provide you with a trained, licensed agent who will compare business insurance quotes in minutes. We aim to find you the most coverage with the most savings, all at no cost to you. To get free quotes, simply enter your zip code in the bar above, or to speak directly with an agent, 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.

Tag: small business insurance