Tag: Business Insurance

Understanding Small Business Insurance

Posted on by butlervetinsurance

There are four types of insurance that most small businesses purchase. The first is Property insurance. This type of coverage provides compensation if business property is damaged, stolen or lost. In addition to covering the physical business structure, property insurance covers personal property. This includes inventory, office furnishings, raw materials, computers, machinery and other items that are part of business operations. Property insurance coverage doesn’t end with protecting physical assets. It also affords operating funds when business owners are forced to take steps to get their business back on track following a major loss. Property insurance might provide coverage for broken equipment in some cases. It can also provide coverage for water damage, debris removal following a fire and several other specific items.

Business Vehicle insurance is the second type of coverage many small businesses purchase. Anyone who uses their own personal vehicle for business purposes should discuss this type of coverage with their agent. Most personal vehicle insurance policies don’t provide coverage if the automobile that is involved in an accident is used mostly for business purposes. Business Auto insurance policies afford coverage for vehicles that are owned and used by a business. Third parties injured by the policyholder’s vehicle receive compensation for damages up to the policy limit amount. Some policies might provide compensation for repair or replacement of vehicles that are damaged from flooding, theft, accidents and similar events.

The third type of coverage most small businesses purchase is Liability insurance. Any business can face a lawsuit at some point in today’s litigious society. For example, a person might claim that a business caused them harm from a service error, defective product or negligence in providing a safe environment. Liability coverage provides compensation for damages a company is liable for. However, the coverage is only provided up to the policy’s limit amounts. These policies usually also provide funds for legal defense expenses, attorneys’ fees, medical bills and several other related expenses.

Workers Compensation is the fourth type of insurance purchased by many small businesses. In nearly every state, employers are required by law to have Workers Compensation coverage if they have employees. This number usually varies from three to five, and even if a business employs fewer than three employees, it is still wise to purchase this coverage. Workers Compensation pays for a portion of lost wages for workers who are injured. In addition to this, it also covers the medical care they require. Coverage is provided to employees who are injured at work regardless of who is at fault. If workers die as a result of the injuries they sustain, the insurance company compensates the surviving family members of the deceased worker.

In addition to the four major types of coverage purchased, there are several other valuable policies some companies might want to purchase. Umbrella policies, Terrorism coverage and specialized liability policies are all helpful. Umbrella policies, much like an umbrella, cover above and beyond the normal inclusions. These are usually obtained to prevent high losses by businesses with high risks. Specialized liability policies are made up of several types of individual coverage. Terrorism coverage provides compensation for damages and medical care to a certain extent in the event of terrorism.

We are an independent insurance agency, representing over 59 insurance companies, we shop the marketplace for you making sure you get the best coverage at the right price. To find out which options are best for your business, contact one of our Protection Coaches today at 877-994-6787.

Here are 4 Easy Ways to Reach Us:
1. Call 877-994-6787 or 951-600-5751
2. Fax 951-677-6265
3. Email – [email protected]
4. Visit – agency.thebutlerweb.com

Why You Should Require Liability Insurance For Those You Do Business With

Posted on by butlervetinsurance

Are the people you do business with insured? You might want to ask them. If a vendor, contractor, cleaning crew, gardener/arborist, or other service provider does not have insurance, you may be out of luck if they cause property damage or injury. Also, people who do not carry insurance are probably less likely responsible than those who are insured. They may not be the ideal people you would want to hire. It’s worth paying a little more to get someone who is insured.

Never just take the word of a vendor. Many who are not insured may say “yes” because it’s likely they don’t want to embarrass themselves. Instead, ask them to have their broker send a certificate of insurance. By having their broker send (fax or email) it to you, you know the policy has been paid for and has not been cancelled.

Some vendors, especially small firms, will try to convince you that they do not need insurance. Do not fall into this trap as you will be letting an amateur convince you to purchase product or service that lacks the protections an insurance policy provides. As a courtesy to existing clients, we can give you advice on any insurance certificate that is emailed or faxed to us. Suggestions on who you should request insurance certificates from:

  • Contractors who are working on a home or commercial remodel
  • Repair or installation service for your auto, home, or business
  • Service contractors, such as gardening and maids/cleaning services
  • Independent Contractors or Contract Employment
  • Professional Services, such as such as a CPA, Consultant, Mortgage Broker, Staffing Firm, Insurance Broker, Architects/Engineers, and others who provide professional services (professional liability)
  • People who rent or lease from you

Types of Insurance you should request:

  • General Liability
  • Workers Compensation – for operations that have workers on your premise
  • Commercial Auto Coverage – for those who use vehicles on the job
  • Professional Liability (Errors & Omissions Insurance) – for those who provide professional services

Should you request a certificate for every purchase? It’s your call, but if someone is entering your premise or you are purchasing a bigger ticket item, you should strongly consider asking for insurance documentation.

The Stromsoe Insurance Total Protection Team hopes this article helps. If you have any questions, comments or concerns, please just let us know.

Here are 4 Easy Ways to Reach Us:

  1. Call 951-600-5751 or 877-994-6787
  2. Fax 951-677-6265
  3. Email – [email protected]
  4. Visit – agency.thebutlerweb.com – 24/7

Online Insurance as Opposed to an Insurance Agency: What’s The Difference

Posted on by butlervetinsurance

Just as one might use a CPA to prepare their income taxes or an attorney to help them with their estate planning, many choose to use an insurance agency to write their insurance policies. This choice is mainly made because a person feels they need professional advice during the process. Of course, everyone will have different needs and circumstances surrounding their purchase, and this is why an insurance professional’s advice can be an invaluable asset. If you’re debating buying insurance online versus through an independent insurance agency, then you should ask yourself a couple of questions:

  • Do I know for certain what specific coverage(s) I need to be properly protected?
  • Do I know all the questions I should be asking before making an insurance purchase?
  • Will the online purchase truly result in saving both time and money?
  • Can I obtain all my insurance policies through a single online insurance provider?
  • If I purchase online, am I certain that I am receiving all discounts that apply to me?
  • Can I call the online insurance provider and receive insurance advice when needed?
  • If you purchase online insurance, in the event of a claim, who will stand by your side?
  • Is the personal information I’ll be providing kept secure?

You want to know exactly what coverage(s) you need and that the insurance you’re purchasing meets those needs adequately. Insurance can vary greatly from state to state, meaning that it’s equally important for your insurance source to be knowledgeable. You certainly don’t want to purchase an insurance policy and discover down the road that it doesn’t protect you during a claim. Making an insurance purchase with an online company that fails to connect professional insurance advice to your personal insurance needs can leave you at risk of being without the coverage(s) you need. You shouldn’t be the only one taking time to ask questions. And when that unfortunate claim does occur, who will help you when the insurance company doesn’t want to pay your claim? When you purchase through an independent insurance agency, we are here to help and support you through the entire claims process.

One of the best ways to determine if you’re really saving money by purchasing your insurance online is to get a quote of your policy online. Do keep in mind that most online companies don’t offer multi-policy discounts, such as for home and auto. This is because most offer homeowner’s insurance through a different company, if at all. On the other hand, an independent insurance agency typically allows you to select coverage from several different insurance companies, Stromsoe Insurance Agency currently offers over 59 insurance companies and we shop the marketplace for you, and we can help you determine which company will offer you the most protection for your insurance dollar. Another consideration is that independent insurance agencies typically have a much more stringent screening process in relation to these insurance companies.

Unlike independent insurance agencies, many online companies will either not have the services that you need readily available or have a system that you must sign into and learn to navigate before being able to obtain what you need. One such example would be obtaining insurance documents, such as a certificate of insurance. Let’s say you’re using your vehicle to take your child and some of his/her classmates on a field trip. You learn the day of the trip that you must have evidence of your insurance before going. If you use an independent insurance agency, the documented can be faxed or emailed to the school or your smart phone with a quick and simple call. A second example would be how an insurance agency can help you meet some very challenging needs associated with needing a hard to place insurance policy. Despite the trend for online shopping, independent insurance agencies continue to thrive because of the solid reputations they build from customer satisfaction.

Insurance is often required – auto insurance by your employer, homeowner’s insurance by your mortgage lender, or even coverage(s) an owner of a space you’re trying to rent for a professional or personal function may require of you. Such requirements can often be like trying to understand the tax code. If you use an independent insurance agency, then you can email or fax any insurance requirements to your insurance agent for quick and efficient resolution.

Carefully consider how you go about purchasing your insurance. Surprises are the last things you want when it comes to the vital protection of insurance. If you have any uncertainty about what you’re really getting with online insurance, then you might want to rethink your decision. If you’d like to avoid the one-size-fits-all approach of online insurance and receive the knowledge and expertise of an independent insurance agent, then you may consider opting for a professional, independent agent to prepare your insurance policy.

If you would like to request your Free Insurance Quote or if you have more question about what an independent insurance agency, like Stromsoe Insurance Agency, offers it’s clients in addition to an insurance policy, please contact our knowledgeable team at 877-994-6787, that’s 877-99-INSURE.

Don’t Make the Mistake of Only Looking at Cost When Evaluating New Health Plan Carriers

Posted on by butlervetinsurance

Over recent years, at least from a percentage standpoint, health plan costs continue to rise substantially. These hikes and the continued premium increases are simply more than many businesses are able or willing to absorb. This conundrum leaves many employers trying to decide if they should pass on part or all of the increased cost to their employees, cutback on benefits, or seek a different carrier offering a more cost-effective plan. If leaning toward the third option, remember that many factors go into evaluating and vetting potential carriers. Even when considering a health insurance carrier change due to being dissatisfied with customer service, record of claim payment, or services offered by your current carrier, employers should carefully evaluate potential new carriers before jumping aboard. Here are 10 key questions that you might want to ask when evaluating and vetting potential carriers:

  1. Is the carrier financially stable and licensed? Insurance rating services and your state insurance commission can help you determine many of these important stability issues.
  2. Does the carrier only issue coverage under the stipulation that a certain number or percentage of your employees enroll?
  3. How does the carrier set their premium rates and allocation of premium cost among claims, commissions, and administrative expenses or fees?
  4. Does the carrier have a sufficient range of providers and locations in their provider network and how many employees will have to make a provider change under the potential new carrier’s provider network? Employees often cite having to change from their current provider or usual hospital and having to pay more to continue with their current provider as the most disruptive elements of a carrier change.
  5. Does the carrier have a positive reputation when it comes to the accuracy and efficiency of claim payments? It’s important to ensure that the carrier has a positive history since employee dissatisfaction in this area can really hurt you during the renewal period. As far as overall reputation, it might be helpful to ask the carrier to provide you with references from customers with a similar sized, located, and niche business.
  6. Does the carrier offer a choice when it comes to plan options like co-payments and deductibles? Choice is important to employees and raises the likelihood of their satisfaction with the plan. It can also result in substantial cost savings, as some employees will opt for cheaper high co-payment and deductible options.
  7. Does the carrier offer plans with preventive screening and wellness programs? Services like these can be a cost saver in many areas, even extending into increased employee productivity and decreased employee absences.
  8. What technology does the carrier use to facilitate ease of access to plan information and, if that portal doesn’t provide sufficient information, is there a real person accessible to address the issue? Having such can save you money and time by cutting down on the calls participants make to your human resource department to have their coverage or claim questions answered.
  9. What steps does the carrier implement to control cost and waste and ensure appropriate care? You might use quality indicators, such as those under the Healthcare Effectiveness Data and Information Set (HEDIS), to determine the performance and effectiveness of a plan on issues like how the plan responds to complaints or access to medical specialists.
  10. What is the carrier’s definition of key contract provisions, such as dependents, usual and customary, coordination of benefits, and covered employees, and what are the caps, exclusions, and limitations on services? Of course, none of the above should seem extreme. It’s also important that the provisions reflect the unique needs of your work force.

As you evaluate carriers and plans, you’ll be glad that you didn’t just look at cost. The above questions will help you get started weighing cost and coverage with the carrier’s stability, reputation, and responsiveness to determine the best carrier and plan for your business.

If you have more questions, comments or concerns, please feel free to contact any of our knowledgeable protection team.  Here are 4 Easy Ways to Reach Us:

  1. CALL 951-600-5751 or 877-994-6787
  2. Fax 951-677-6265
  3. Email – [email protected]
  4. Visit agency.thebutlerweb.com

Is Your Business Protected Against Data Security Breaches?

Posted on by butlervetinsurance

By the end of 2009, 45 states, the District of Columbia, and two U.S. territories had enacted laws requiring notification of security breaches involving personal information. New York’s law is typical. It requires businesses that own or license computer data that includes private information to disclose any security breach of the system to any state resident whose private information the business believes was accessed without authorization. The businesses must provide the notice by mail, phone or e-mail as soon as possible after discovering the breach, inform the state government of the notices, and inform consumer reporting agencies if the breach affected more than 5,000 residents.

Notifying the victims is only one part of the costs businesses that suffer security breaches can expect. They might face lawsuits from the victims, fines from regulators, and serious harm to their reputations. Lockton International has estimated the cost of a security breach to be $15 per person affected. Lockton issued a paper in 2010 that discussed several ways that businesses can avoid cyber attacks and handle those that do occur, including:

  • 1. Assemble a multifunctional team to identify cyber risks and develop plans for preventing attacks. The team should include individuals responsible for legal compliance, risk management or insurance, information technology, procurement of vendors, and operations.
  • 2. Comply with applicable federal and state laws and regulations, including HIPAA (which applies to security of private health information) and the Gramm-Leach-Bliley Act (which applies to private financial information.)
  • 3. Manage vendors that have a high risk of data security breaches, including payroll companies, credit card processors, and accountants. Require them to meet legal and industry standards, obtain insurance against security breaches, and indemnify the business from related losses.
  • 4. Manage the people as well as the system. Train and educate employees on system security, monitor them for poor security practices and possible malicious acts, and verify that they have not installed unauthorized software that would increase vulnerabilities in the system.
  • 5. Regularly test the system and repair security problems. Perform internal tests, external system penetration tests, scans for viruses and other malware, and evaluate work processes.
  • 6. Encrypt private data on the network, while it is being e-mailed or transferred another way, and while it is on laptops, smart phones, and other mobile devices.
  • 7. The team should develop a plan for effectively responding to security breaches.

As more businesses become aware of their exposure to data losses, insurance companies are beginning to offer specialized policies to cover these incidents. An electronic data liability policy covers a business’s liability for damages resulting from accidents, negligent acts, errors or omissions, or a series of these, leading to a loss of electronic data. Coverage applies to claims made during the policy period for losses occurring on or after a date specified in the policy. Another policy offered by specialty insurers covers a business’s lost income and extra expenses resulting from harm to its reputation after a security breach.

Most businesses and organizations today have some exposure to loss from cyber risks. Just as they try to prevent fires, car accidents, and workplace injuries, businesses must make preventing data security breaches a standard part of their operations. Speak with our professional Protection Coaches about the insurance you might need when breaches occur. With proper loss control and the right insurance, a business can survive a cyber attack.

Here are 4 Easy ways to reach our Total Protection team if you have any questions or would like to review any protection:

1. Call 877-994-6787 or 951-600-5751 
2. Fax 951-677-6265 
3. Email [email protected]
4. Visit us on the web – www.SIAonline.com

Prevent Employee Claims of Invasion Of Privacy…

Posted on by butlervetinsurance

It’s not easy being an employer. The business must offer competitive wages and benefits without over-paying. It must keep employees happy but still maintain workplace discipline. It must protect its customers and its assets without seeming to distrust its employees. Without being overbearing or acting as a strict parent, it must ensure that employees are doing their work and doing it well. Many employers, using modern technology, are keeping an eye on workers — literally. A 2007 study by the American Management Association and The ePolicy Institute revealed that:

  • – 66% of employers monitor employees’ Internet connections
  • – 65% use software to block employees’ access to some Web sites
  • – 43% monitor employees’ e-mail
  • – 45% monitor the time employees spend on the phone and the numbers they call
  • – 16% record employees’ phone conversations
  • – 9% monitor voice mail messages
  • – 7% monitor employees’ job performance using video surveillance

 

Also, in certain industries employers search workers’ workstations and lockers, perform drug tests and physicals, investigate their backgrounds, and even monitor their activities outside of work. When an employer disciplines or fires a worker based on information it learned through one of these methods, the worker might become angry enough to sue the employer for invasion of privacy. Although federal and state laws generally permit employers to monitor workers’ activities and use of employer property, some suits succeed and all of them divert financial and human resources away from the employer’s main business. There are several things employers can do to avoid this.

  • >> Establish a workplace policy about non-business phone and Internet use, and include it in the employee manual. The policy should describe the extent to which the employer will monitor phone and Internet use, if any, and the consequences should employees violate the policy. Ensure that employees are aware of it by discussing it at staff meetings and asking them to document that they have read it.
  • >> Be careful about audio recording conversations. Although state and federal laws generally permit employers to use video monitoring of employees, some restrict the ability to make audio recordings or to listen in on conversations. Employers should become familiar with the wiretapping laws in their states before using audio monitoring.
  • >> Keep employee e-mails confidential. Employers have the right to monitor their employees’ use of the business e-mail system, but making e-mails public (absent some legal or business requirement) might violate employee privacy rights.
  • >> Include in the employee manual a written policy regarding employer searches of desks, workstations, and lockers. This should describe the employer’s right to conduct searches, the reasons it may do so, and the consequences should an employee refuse to cooperate. Conduct searches only when absolutely necessary for business or legal reasons, and take care to respect the employee’s dignity by doing the search out of the view of other employees.
  • >> Perform drug tests for legitimate business reasons and at appropriate times, such as during the hiring process and following a workplace accident. If the employer will administer random drug tests, it should have a written policy stating as much in the employee manual and it should conduct the tests with as little privacy infringement as possible.
  • >> Obtain a job applicant’s written consent for a background check, and investigate only those factors relevant to the position. For example, a credit check might be appropriate for a position that requires handling money.Keep employee information safe from individuals outside the company. Instruct managers and staff not to discuss personnel matters with outsiders and employees who do not need to know the information.

Employers must run an efficient operation, maintain a safe workplace free of harassment, make employees feel comfortable in their work, and make a profit. Following these steps will reduce the chances of employee lawsuits and allow the business to focus on its core mission.  If you have any questions regarding any items mentioned throughout this article, call 951-600-5751 and ask for Mike! We have easy to implement solutions that can help you with all of these matters today!

Employee Substance Abuse & The Affect On Your Company’s Bottom Line

Posted on by butlervetinsurance

More than ever, some of your team may need you help. Here’s some info to consider:

Employees with substance abuse problems cost businesses billions of dollars each year. According to the 2008 National Survey on Drug Use and Health, among the 17.8 million Americans aged 18 or older who admitted to illicit drug use, nearly 73% were employed. This equates to 12.9 million employees who admit to some form of substance abuse.

For the majority of substance abusers, their problem lies with alcohol. According to information published by Ensuring Solutions to Alcohol Problems, a part of the George Washington University Medical Center, alcohol abuse costs American businesses $134 billion in annual losses. Most of the losses are due to missed work: 65.3% of this cost is caused by alcohol-related illness, 27.2% due to premature death, and 7.5% to crime. People addicted to alcohol also spend more time in the hospital and have higher rates of job turnover than their non- or light-drinking co-workers.

Data such as this shows that alcohol and other substance abuse takes a toll on workplace productivity, and contributes to higher medical costs both for treatment of the addiction and for substance-related medical issues. Employee substance abuse problems also cause an increased occurrence of workplace accidents and higher Disability and Workers Compensation costs. There is no question that it is in an employer’s best interests to find ways to minimize the impact of employees’ substance abuse on the workplace.

Experts in the field stress that it is imperative that employers educate employees about the health hazards of substance addiction and encourage employees to seek early treatment of any problems. While stressing the importance of a drug-free workplace, policies that rely primarily on discipline can result in addicted employees hiding their problems out of fear of losing their jobs, and in co-workers enabling such behavior in a spirit of friendship. In this type of environment, an addicted employee might resist seeking assistance — such as obtaining treatment under the medical plan or taking a leave to enroll in a treatment program — until a crisis occurs.

On the other hand, employees will be more likely to seek the help they need if they believe that by doing so they will receive help, not punishment. The same is true of co-workers, who can be a valuable resource in encouraging addicted employees to ask for help and to stay committed once treatment has begun.

Since substance abuse is truly a medical problem, most medical insurance plans include at least some substance abuse benefits. Workplace communications about a business’s policies on alcohol/drug use should include this information. If employees realize that help is within reach, they are more likely to seek solutions to their problem. Some employees might not realize that this benefit is available to them. Employee Assistance Programs (EAPs) can also offer screenings, counseling, and treatment referrals for employees with substance problems. Depending on the individual EAP design, it also might have worksite awareness and supervisor training programs.

Employers should make employees aware that any communications regarding substance abuse issues are confidential. This, together with a supportive (instead of punitive) environment, increases the likelihood that employees will ask for help.

With so many dollars wasted in lost productivity, the incentives for a business to promote substance abuse awareness are compelling. And, because work is such an important part of most people’s lives, the workplace can be an effective place for substance abuse intervention to begin.

For more information on our proprietary program for business owners, HR That Works, contact Raimie Brown at 877-994-6787 or [email protected]

Running A Home-Based Business – Do You Need A Small Business Policy?

Posted on by butlervetinsurance

Like most new home-based business owners, you might believe that your Homeowners or Renters insurance coverage offers sufficient protection. That is unfortunate, because in most instances these policies offer little to no coverage for business-related losses.  Homeowners policies are not designed to cover business losses. Most offer a small amount of business property coverage, meant to cover incidental items, such as a computer used for office work.

Take a look at the following list. If one or more of the items below apply, you might want to consider a Business policy for your business:

  • 1. Business Property, Stock or Equipment greater than $10,000 in value. A Business policy will allow you to insure your office contents, equipment, and stock. A Homeowners policy will likely have little, if any, coverage for business-related items.

 

  • 2. Clients visit your office/use your product/depend on your service. Liability insurance can help cover your exposure to lawsuits resulting from slip and falls, product liability claims, personal injury claims, etc. Perhaps even more importantly, it will provide defense costs for such actions. Homeowners policies do not have coverage for business liability. In a few instances, you might be able to purchase an endorsement to allow coverage for slip and falls due to customer visits, depending on your type of business.

 

  • 3. Damage to your office/workspace would require you to relocate/find a temporary substitute. Extra Expense coverage in a Business policy will provide funds for a temporary office/workspace or cost of a mobile trailer near your damaged office site.

 

  • 4. An Error or Omission could result in a lawsuit that would need to be defended/could seriously damage your business. Errors and Omissions coverage will protect you from judgments and defense costs resulting from past mistakes.

 

  • 5. Damage to your workplace could cause you to lose business, perhaps even lose some customers permanently. Business Interruption coverage will help pay for expenses until your property is repaired or sales return to normal (depending on the policy form).

 

  • 6. Your employees use their vehicles to make deliveries or run errands for your business. Non-Owned Automobile Liability will protect your business in the event that your employee has a serious accident during the course of running an errand for your business.

 

Contact our office today for more information about your home-based business insurance needs!  Here are 4 easy ways to reach us:

1. Phone  877-994-6787  
2.  Fax  951-677-6265  
3.  Email – [email protected]  
4.  Visit www.SIAonline.com