How has your business done so far in 2015? Our Colorado economy is booming and most businesses in our state are growing and feeling prosperous. However, business ownership isn’t always easy and for various reasons many businesses struggle daily to stay afloat. Our job at RSS is to protect our commercial clients to the best of our ability. What is one thing that large and small, prosperous and struggling business have in common? One small mistake, data breach, or even accidentally overlooking a small piece of paperwork, could send a business into financial ruin. Having the proper insurance coverage can give you peace of mind and assure that your business is prepared if you fall prey to a seemingly innocent mistake. We have growing concern about four particular risks that our business clients face and we’d like to share information about the insurance coverage you should have in place to protect your business’s assets.
- Employment Practices Liability Insurance: You think of your employees like family, so why would they ever file a lawsuit against you? Employers don’t have to do something wrong to be sued. Unfortunately, employers still end up paying substantial legal fees to defend themselves against allegations of wrongful termination and discrimination among other employment practices-related claims. As a business owner you need insurance coverage that helps to proactively minimize risks to your business. And, if you have employees, you need insurance that helps protect you from employment-related claims resulting from alleged or actual acts of discrimination, harassment, retaliation, wrongful discipline, wrongful termination, wrongful failure to promote, or violation of the Family Medical Leave Act (FMLA). Read the top four reasons your business needs EPLI coverage HERE.
- Data Breach Insurance: With the implementation of EMV chip technology and chip-based card machines, businesses are even more at risk for being liable for a breach of client information. Credit card companies have stated that they will not accept fraud liability if chip-based card machines were not in place by October 1, 2015. A data breach is a security incident in which sensitive, protected or confidential data is copied, transmitted, viewed, stolen or used by an individual unauthorized to do so. Data breaches may involve financial information such as credit card or bank details, personal health information, and trade secrets of corporations or intellectual property. The cost for mandatory notification, providing credit monitoring & credit repair expense for individuals impacted by a breach could be crippling to a business. However, businesses today can protect their business and their clients from these unwanted risks with the right insurance and coverage.
- Employee Benefits Liability Insurance: Your business takes good care of its employees and offers and pays for a great health plan and other benefits. While these benefits can help your company compete for qualified workers and keep your current employees happy, they must be administered properly. Small clerical errors can have major consequences. What happens if due to a clerical error by human resources a new employee is not actually enrolled when eligible and the mistake is not discovered until months later when the employee is in a serious car accident? Errors in administration can lead to lawsuits against HR employees, your firm, or both. To insure against such claims your business can purchase employee benefits liability (EBL) coverage. EBL coverage is often provided via an endorsement attached to a general liability policy.
- Errors & Omissions Insurance: Costly mistakes can happen – even to people with the best training and years of experience. In fact, individuals with specialty training and experience are typically held more accountable and to a higher standard in the eyes of the public and the courts. That’s why errors and omissions insurance is so important. Errors and omissions (E&O) is the insurance that covers your company or you individually, in the event that a client holds you responsible for a service you provided, or failed to provide, that did not have the expected or promised results. CLICK HERE for more information about E&O Insurance why you may be at risk.
Our goal and intent is to make sure we inform all of our customers of these four important coverages and to insure them beyond their basic liability policies. In the litigious environment that today’s businesses now operate, you need to make sure that you have protected yourself properly and entirely. Please call our office today if we can assist you in reviewing your risk exposure and to verify that you have the correct policies in place.