Lawley Insurance

Author: Lawley

  • Accidents Happen, Minimize Mounting & Dismounting Injuries

    Accidents Happen, Minimize Mounting & Dismounting Injuries

    Look before you leap, better yet…don’t leap.  Because jumping down off large equipment is a common practice for construction workers, it’s no surprise that lower back, knee, ankle and neck injuries occur more frequently. Regardless of the type of equipment you work with, mounting and dismounting safely should always be top of mind.

    Reduce Risk of Injuries

    To reduce your risk of injuries, follow these simple mounting and dismounting instructions for trucks and other tall equipment or machinery.

    • When using a new piece of machinery, become familiar with proper mounting and dismounting procedures.
    • When a person jumps from a height of more than one foot, the force that goes through the body is about 14 times the person’s body weight. In other words, a 165-pound man who jumps out of construction equipment or any other high surface is exerting 2,310 pounds of force on his body. This can cause injury to bones, tendons and cartilage. And if you’re doing this multiple times every workday, the damage to the body can be extensive.
    • When dismounting and mounting, maintain three-point contact. This means having contact with the construction equipment by either one foot and two hands or one hand and two feet. The smaller the triangle you form with your body, the more stable you are.
    • Always face the vehicle, both when mounting and dismounting.
    • Look at the surface below before stepping and make sure it is even to prevent ankle and knee injuries.
    • Never mount or dismount moving equipment.
    • Do not mount or dismount with anything, including tools, in your hands. Not only does it throw the body off-balance, it also reduces your chance of recovering your balance if you do slip. Use a drop rope to raise and lower supplies, tools and equipment instead.
    • Handholds and footholds are on the equipment for a reason—use them.
    • Wear appropriate clothing. Loose or torn clothing can get caught on equipment when you are jumping down instead of climbing down. In slippery conditions, wear proper footwear to prevent slipping hazards.
    • Proper vehicle maintenance also contributes to the safe mounting and dismounting of equipment. Make sure running boards, treads, steps, footholds and platforms are kept clear. Hazards like ice, snow and grease could cause slips, trips and falls.

    To lessen your risk of injury, follow these simple mounting and dismounting instructions for trucks and other construction equipment and machinery.

  • Liability Limits and Economic Downturn: Not the Time to Limit Coverage

    Liability Limits and Economic Downturn: Not the Time to Limit Coverage

    While feared by some, the uncertainty of economic downturns is often seen as a cyclic elimination of inefficient businesses. It’s your chance to expand and seize market shares relinquished by weaker competitors. However, the companies that successfully weather these tough times relatively unscathed could ultimately find themselves facing uninsured risks in the long term.   Worry not, Lawley has compiled some tips to keep your business prospering well into the next economic cycle.

    Not the Time to Limit Liability

    It’s no secret that the financial security of your business hinges on that of your partners, vendors and suppliers and that in tough times, everyone is looking for a way to cut costs.
    Never rely on the insurance coverage of your business partners to protect your assets or protect against third-party liability claims. In the event of financial insolvency, a business’s partner organizations could eventually be held liable for claims filed against it. Even healthy, well-insured partner organizations are no substitute for comprehensive liability coverage for your business.

    Ultimately, in order to protect your company, it may be a wise long-term investment to expand your coverage limits. While it may be tempting to cut costs by limiting coverage, you could risk paying out of pocket for hefty claims or settlements.

    An important way to protect your company from the enormous cost of specialty trade contractor failure, is to transfer the risk of project completion through surety bonds.

    Secure Seamless Contracts

    In a turbulent economic climate, it is more important than ever to have thorough, seamless contracts. They should clearly outline the obligation of each party and discuss dispute resolution policies so that if something goes wrong, you avoid a messy and expensive disagreement.

    In order to protect your company, it may be a wise long-term investment to expand your coverage limits during an economic downturn.

    It is never a good business decision to sign a contract hastily, but especially in a difficult economic time, be sure to look into all the risks and legal ramifications. Small companies who partner with larger companies are often strong-armed into making decisions with which they are not completely comfortable.

    Exploit Change with Caution

    For many construction companies, change is the best way of reacting to an economic crisis. Offering new services or exploring different customer bases can be a crucial factor in surviving difficult economic times. While expanding in either of these ways can revolutionize your business and keep you afloat in tough times, it could also expose you to additional liability you had not dealt with before.

    When you experiment with new products or services, you will inevitably face a learning curve, which puts you at a larger risk of facing liability claims. You may want to consider purchasing additional lines of coverage to protect yourself, as your surplus lines insurance policy may only cover claims arising from existing projects or services.

    Unexpected Consequences

    By the same token, shifting or expanding your customer base may put you at risk of unexpected lawsuits. The same product or service may evoke disparate reactions in different sectors of the market. This is another instance in which it is important to be covered for potential liabilities resulting from a change in your business. Contact Lawley today to be sure your plan for escaping the economic downturn unscathed does not backfire.

  • Why Are Auto Rates Increasing?

    Why Are Auto Rates Increasing?

    One issue that has been consistent throughout the year is an increase in auto insurance rates. If you’ve seen a rate increase this year and have wondered why (especially if you have a clean driving record), this blog post is for you.

    Why are rates going up? There are three primary reasons:

    Distracted Driving:

    The National Highway Traffic Safety Administration reports that 71% of young drivers have admitted to texting and driving. At 55 miles per hour, the average text message takes your eyes off the road long enough to cover a football field. Do the math and tell me that’s not a serious problem. In fact, the statistics are already telling us it’s a problem. For example, in 2015 more driving-related deaths occurred in any year since 1966. Worse yet, we’re on pace for a two-year increase of 18%.

    Technology in Vehicles:

    A couple of our insurance companies have specifically cited this as a large factor in increased claim payments. The rear of cars used to be tail lights and a bumper. Now they have backup sensors, cameras, kick-activated tailgate sensors, etc. In 2005, a Ford side mirror cost $845. In 2015, it cost $1,349. Again, think about the turn signals that are now inside mirrors along with blind spot warning lights and mirror defrosters. That’s a lot more technology in the same amount of space.

    Health Care Costs:

    We’re sure you’ll agree that medical costs are significantly higher than they’ve ever been. Therefore, an accident that has a bodily injury component to it has a much higher overall claim cost than it did just a few years ago. Auto insurance rate increases haven’t even been as close to how much health insurance rates have gone up recently. Again, do the math on that and see where the auto insurance industry might be falling a tad short.

    Contact Lawley today for inquires regarding auto rates — we always make sure to get you the right insurance program for your unique needs. We have a dedicated team of professionals who will take care of you and your family with their 100 years of combined experience.

  • Driving Personal Cars for Business Use – A Good Idea?

    Driving Personal Cars for Business Use – A Good Idea?

    It is important to consider the risk that occurs from driving personal cars for business use.

    There are many situations in which an employee drives his or her personal automobile to perform a business-related task or activity:

    • Travel between work sites
    • Client visits
    • Transportation of clients
    • Travel home from work-related events
    • Quick stops to pick up food for a meeting

    Driving a personal automobile in lieu of a company-owned vehicle may seem to minimize an employer’s liability, but companies can be held partially liable for damages in the event of an accident. Additionally, if an insurance provider discovers the individual was driving for business, it may take action against the employer for subrogation purposes.

    If the employee is making a work-related phone call or taking part in any business-related activity, the employer will be held accountable. When employees will be driving their own cars for work, there are several actions you can take as an employer to mitigate risk.

    Purchase Hired and Non-owned Coverage:
    Any company that allows or requires employees to use their personal vehicles for business should either purchase hired and non-owned coverage or add it to an existing automobile policy. Hired coverage is for situations in which autos are not owned by the company or the driver, and non-owned coverage protects the company against liability when vehicles that are owned by employees are used on behalf of the company. In the event of an accident, these policies supplement the driver’s personal auto policy, which is typically activated first. For minimal yearly premiums, these policies generally protect the company only, not the car or the driver.

    When employees drive their own cars for work, there are several actions you can take as an employer to mitigate risk.

    Use a Company Policy to Reduce Risk:
    According to estimates by the National Safety Council, over one million car crashes annually are attributable to cellphone use while driving. Since distracted driving accidents can have serious implications for companies, a company policy that emphasizes the importance of driving attentively and restricts the use of mobile phones is essential to preventing employee accidents in all vehicles, both personal and company-owned. In addition, the policy should clearly state when the use of a personal vehicle will be expected or allowed, and all employee job descriptions should specify when driving a personal vehicle will be a job function. As a condition to employment and thereafter at least on a yearly basis, those employees driving personal vehicles should be required to provide:

    • Proof of a driver’s license
    • Motor vehicle safety inspection certificates
    • Copy of insurance certificates proving liability coverage at or above an established company limit including personal injury and medical limits
    • Proof that the employee has declared the use of the auto for business to his or her insurer
    • Exhaustive lists of all prescribed controlled medications

    Enforce the Policy:
    After the driving policy has been instated, it should be actively communicated and enforced. Managers of employees utilizing personal vehicles should be directed to monitor the safety and maintenance of those vehicles. Employees found out of compliance with the company policy should be subject to reassignment or termination. It is every employer’s responsibility to ensure its employees’ safety on the job, and those that use personal vehicles on business are no exception.

    Contact the insurance professionals at Lawley for more help assessing your company’s risk regarding the use of personal vehicles, or to learn more about hired and non-owned coverage.

  • Open Enrollment Tips

    Open Enrollment Tips

    At Lawley, we work with a lot of companies to provide employee benefits to their associates. Many of our clients have personnel with “open enrollment” questions. We wanted to make it simple! As an employee, making wise decisions about your benefits requires planning and it is often easier to elect the same coverage that you had during the previous plan year. However, last year’s coverage may not suit you again, and there may be new plans that better meet your needs.

    Follow these tips to make the best benefit decisions for you and your family:

    • Assess your health and the health of your family members before making any selections. For instance, plans with higher monthly premiums and lower copays and deductibles are best for those who will use a lot of health care services over the course of the year. Yet, healthy individuals and families may save a great deal by selecting a plan with low premiums and a high deductible.
    • Examine how you allocated benefits last year beyond just health care – retirement, dental, flexible spending accounts, etc. If you invested in some of these benefits in the past and did not use them, consider omitting this time around.
    • Attend all company meetings designed to explain new benefit offerings. These venues are great for learning the ins and outs of new plans and changes to existing plans.
    • Utilize plan selection and comparison tools. These resources can analyze your claims from the previous year and then determine which plan would be most appropriate in the coming year.
    • Before selecting a plan, verify that your doctor and hospital of choice are part of the network of health care providers that are covered. If they are not included, you will pay significantly more for their services.
    • Participate in wellness and disease management programs to not only become healthier, but also to receive potential discounts on your health benefits.
    • Utilize tax-free benefits such as health savings accounts (HSAs), flexible spending accounts (FSAs) and dependent care spending accounts. These savings vehicles can provide tremendous tax advantages, as contributions are made with before-tax income. Reimbursements from these accounts are also tax-free. They can be used to pay for prescriptions, deductibles and health-related costs that are not covered by your insurance (braces, eye glasses, etc.). HSAs are also a great way to save for future medical costs.
    • Are you saving enough to be comfortable during retirement? If not, change your retirement plan withholdings. Don’t forget to take advantage of your company match in your retirement account. This is free money for the future.

    Though we normally work with employers regarding the benefits plans they provide to their employees, Lawley‘s team of consultants is happy to help with any questions you might have as an employee during “open enrollment season” and beyond.

  • Lawley Insurance Advisor Michael Bandini Earns ERIS® (Energy Risk & Insurance Specialist) Designation

    Lawley Insurance Advisor Michael Bandini Earns ERIS® (Energy Risk & Insurance Specialist) Designation

    BUFFALO, NY | Michael Bandini, Lawley Insurance Advisor, has earned his ERIS® (Energy Risk & Insurance Specialist) Designation. Lawley is very proud to have this designation placed on one of their senior advisors.

    This program is a specialized curriculum focusing on the insurance and risk management needs of the energy industry. Examples of companies in the energy industry include those dedicated to providing power like solar, electric, oil, or natural gas. Those who complete the program are entitled to display the ERIS certification to attest to their knowledge of energy insurance, risk management and dedication to the industry.

    Bandini says, “I am really excited to receive this designation and bring it to Lawley. Energy companies have very serious and unique risks that need attention. And that attention should be given by someone with the proper training and expertise. I look forward to building partnerships with companies and individuals in the energy field and will provide the best service and knowledge possible to their operations.”

    Cindy Vizzi, Lawley’s Director of Sales Administration, says “We are always looking to refine the skills of our team. By earning this designation, Michael will be able to anticipate the needs of clients and prospects in the energy industry. It is a great benefit and addition to his, and our, insurance infrastructure.”

    What does receiving an ERIS® entail?

    • Completing the five-part curriculum entitles a person to the ERIS certification.
    • Energy financial and risk professionals who obtain the certification will have the knowledge to make wiser insurance and risk management decisions for their employers and work more effectively with their agents/brokers.
    • Obtaining the ERIS certification will increase the competence, confidence, and credibility of insurance professionals who sell or underwrite insurance for contractors.
    • A CFO, CFM, controller, or risk manager who buys insurance from an ERIS designee will know he or she is dealing with someone who is knowledgeable about the specialized needs of energy companies. 
    (Originally published description on Irmi’s website)

    About IRMI & ERIS

    The Energy Risk and Insurance Specialist (ERIS®)  continuing education program was developed by IRMI to provide an opportunity for insurance agents, brokers, customer service representatives, underwriters, adjusters, and in-house risk managers or insurance buyers to gain specialized expertise in energy insurance and risk management. Completing the ERIS certification will ensure that the agent, broker, underwriter, or insurance purchaser understands the most important insurance needs of the energy industry.

    Who is Michael Bandini?

    Michael Bandini joined Lawley in 2011 as an Advisor of Property & Casualty Insurance. Mike is a Construction Risk & Insurance Specialist (CRIS) and actively pursuing his Chartered Property & Casualty Underwriter designation (CPCU). Mike’s focus has expanded to Life Sciences/Bio Technology, Professional Liability/Legal Malpractice, Public Entities/Municipalities and Cleantech Energy industries. Mike now has his ERIS® designation.

    Read more about Michael in his full bio here.

    ABOUT LAWLEY

    Lawley is a privately-owned, independent regional insurance firm specializing in property, casualty and personal insurance, employee benefits and risk management consulting and ranked among the 100 Largest Insurance Brokers in the U.S., according to Business Insurance magazine.

    For over 60 years, Lawley’s team of more than 400 associates have developed customized property, casualty, surety and benefits insurance programs for businesses and municipalities of all sizes along with personalized protection for individuals and their families. Lawley is consistently recognized as one of the Best Places to Work by Buffalo Business First.

    Headquartered in Buffalo, NY, Lawley has branch offices across New York in Amherst, Batavia, Dunkirk, Jamestown, Mahopac, Plainview, Purchase and Rochester along with Darien, Connecticut and Florham Park, New Jersey. To find out more, visit lawleyinsurance.com.

     

  • How to Maximize Employee Benefits – Are You Getting the Most for Your Money?

    How to Maximize Employee Benefits – Are You Getting the Most for Your Money?

    Employee Benefits: Essential But Unruly

    Employers and employees both know the critical role that the workplace plays in offering a better quality of life through a robust benefits package.

    What employees may not know, however, is how to capitalize on benefit offerings, or how to select the right benefit options for themselves or their families. And employers may not know how to properly analyze claims made on benefit plans, how to interpret data to adjust their benefits offerings to deliver more of what employees want, or when to develop wellness programs to prevent excessive medical expenses for conditions caused in part by unhealthy lifestyles.

    Technology-driven Solutions

    To help workers better grasp and employ benefits knowledge beyond orientation and yearly renewal periods, employers need an online collection of benefits and wellness materials that serves as a real-time solution generator for employee benefits questions.

    Data collected and housed in a central online program will allow employers to refine popular offerings, pinpoint underutilized benefits and analyze employee insurance claims—all of which adds value your benefit package.

    Besides data storage and sorting functions, employers need a central hub for educational materials that explain the complex world of health insurance to their employees, alleviating the burden of providing in-depth personal instruction. At Lawley, we provide this to our clients via our Technology Solutions team and with ZyWave/MyWave, an online client portal for employee benefits and HR resources.

    For Employees

    Providing a benefits suite can be a dynamic asset for your company that bolsters your bottom line in two critical ways: by acting as a magnet for attracting and retaining top talent, and by keeping your employees and their dependents healthy and free from expensive claims.

    Sophisticated benefits analysis tools give workers a chance to research various benefits options and discuss their elections for the coming year with their families. To recoup the costs of offering benefits and to achieve gains in productivity, morale, and talent acquisition and retention, it is critical to highlight the value of your company’s benefit package. Having a proper platform in place to disseminate information is crucial. An ideal platform should include support in the form of:

    • Notifications that send out alerts prior to important benefits deadlines
    • Multiple education resources that explain differences between health plan options, medical savings accounts and retirement information, customized to the needs and ages of a diverse workforce
    • A plan selector tool that uses personalized lifestyle data to help employees decide what benefit options are best
    • A tracking calendar that enables users to stay informed about important deadlines pertaining to medical savings accounts
    • Comprehensive plan information for health insurance companies or network providers
    • A direct line of communication with the HR department

    For Employers

    The cost of health care is rising at an unsustainable rate, placing a significant burden on employers. With new health care reform rules, some employers may be tempted to drop coverage and accept a penalty instead, but should also consider the employee satisfaction implications.

    Instead of potentially overreacting by dropping benefits altogether, employers can choose to manage costs through claims analysis. While health claims data analysis has long been an option, getting good data can often be challenging. To get full value out of claims analysis as quickly as possible, employers need a tool that is extensive and illuminating, and includes certain features, such as:

    • Outlining rules and calculating model or projected budgets for various types of health and retirement plans and medical savings accounts
    • Using health and prescription claims data to uncover high-cost problem areas
    • Benchmarking costs and claims against national data
    • Illuminating cost drivers for targeted wellness initiatives
    • Showing the impact of plan design changes
    • Surveying your employee population to determine their priorities
    • Gauging what employees value from underused offerings

    For more information, contact Lawley today.

  • A Two-Tier Approach to Protect Yourself from Identity Fraud

    A Two-Tier Approach to Protect Yourself from Identity Fraud

    Cyberattacks are increasing at an alarming rate and the resulting data breaches have led to countless amounts of personal information being exposed to unscrupulous individuals. While banks have become more proactive in monitoring accounts for activity that appears to be fraudulent, their services only play a small part in the overall campaign against identity fraud.

    Are you familiar with how your personal information can be used by criminals? Many people immediately think of fraudulent credit card charges, which is certainly one widely used method. However, your personal information can also be used to:

    • Open up new credit cards or lines of credit
    • Illegally obtain tax refunds due back to you
    • File false medical claims to health insurance companies

    This is where identity theft insurance comes into the equation. Will it help? Certainly. But don’t expect it to be a comprehensive solution.

    Whenever discussing identity fraud with clients and prospects, Lawley’s team tries to reiterate to them that identity fraud insurance is just like any other type of insurance. It’s reactive in nature. This means the coverage won’t provide you with any benefit until the damage is already done and you have to end up spending time restoring your identity and/or bank accounts.

    Some suggest utilizing a two-tier approach. The first tier should be preventive. Employ a service that is proactive and constantly monitors your identity along with your financial accounts. Therefore it offers some flexibility rather than a one-size-fits-all approach. It also offers the option to monitor the identities of your children. Criminals love to get their hands on social security numbers that have no history attached to them.

    The second tier in your fight against identity fraud should be insurance. This is reactive and will provide you with services such as access to fraud specialists, assistance with filing police reports, access to a credit monitoring service, and even expense reimbursements for lost wages, credit bureau reports, and various postage, phone and shipping fees associated with the theft of your identity.

    If you want to take things a step further, consider freezing your credit. This will make it extremely difficult for identity thieves to open any new accounts using your information. Just make sure you lift the freeze in the event you need to undertake a legitimate transaction that requires your credit report!

    Unfortunately no single method is 100% foolproof, but the more layers you can add to your identity protection, the better off you’ll be.

  • Renters Insurance: Why It’s Important for Landlords

    Renters Insurance: Why It’s Important for Landlords

    Anyone who has ever rented a residence (or is currently considering renting a residence) has most likely heard about the importance of having renters insurance in place. We all know that our “stuff” is important and needs protecting. We also know that these types of policies provide liability coverage, but we may or may not fully understand what that means.

    But what if you’re a landlord? Should your tenants have renters insurance?

    Absolutely! Your house, condo, or apartment is just as valuable as your tenant’s “stuff,” correct? Here’s why it shouldn’t only be suggested, but required by the terms of your lease.

    • Your tenant fell asleep with the stove on and caught the house on fire. If your tenant has renter’s insurance, his policy may respond and pay out due to his negligence. If there is no renter’s policy in place, you as the landlord would be completely responsible for the damages and could eventually face adverse underwriting action on your policy, though the accident was not your fault.
    • Your tenant hosts a gathering and drinks spill, causing the floor to become slippery. A guest of the tenant slips and falls. If your tenant has a renter’s policy, coverage will likely be available to pay for his liability to the guest. Without a renter’s policy, you could face having to pay for the guest’s damages.

    Just as we see with complex commercial accounts, the landlord-tenant relationship should have appropriate risk transfer in place. You should require your tenants to have renters insurance and additional insured status on the policy (via ISO form HO 04 41 or equivalent) ensuring that your tenant’s insurance policy can protect you if you are dragged into a claim that another insurance policy should potentially cover.

    Lastly, be sure to ask the renter for a certificate of liability insurance or a copy of their declarations pages each year. This proof of insurance will help to make sure that they are keeping the appropriate coverage in place and are compliant with the terms of your lease.

    Owning rental properties is a business and should be treated as such. With a wealth of industry-specific knowledge and experience, one of our specialized teams will really get to know your organization, your business insurance needs and goals.

  • Top 10 Threats To Small Business To Consider, Including Sexual Harassment

    Top 10 Threats To Small Business To Consider, Including Sexual Harassment

    Simple strategies that small business owners can take to help identify and manage top threats to their business

    Optimism is the fuel that drives the entrepreneurial spirit, so it isn’t surprising that most small business owners consider themselves optimists. Too much optimism, however, can get a small business owner into trouble. A business plan built solely on the “best case scenario” is like a house of cards—one gust of wind (or fire or wrongful termination lawsuit) and the entire business can come crashing down. That’s why smart business owners temper their innate optimism with a healthy dose of reality. In other words, they learn to manage risk.

    The first step in implementing a comprehensive risk management plan is identifying potential risks. To help you get started, we have provided a list of the top 10 threats to small business facing small business owners. As you read through the list, consider the unique risks facing your business and ask yourself whether those risks are being managed effectively.

    1. Protecting your Property

    Property holdings are often a small business owner’s largest asset. Therefore, for the long-term security of your small business, it is vital that you evaluate potential threats to your property and develop a plan to manage those threats. Begin by taking a complete inventory of all of your assets to determine how a loss might affect your business and how much coverage you need. Property coverage can come in many forms to suit your specific needs, but a typical policy will provide the replacement cost value for your building and the actual cash value for your business property.

    You have a lot weighing on your budget already, but don’t make the mistake of planning for the “best case scenario” when it comes to your property coverage. Leaving your small business “underinsured” is a risk too great to take.

    1. Business Interruption

    The U.S. Department of Labor estimates that more than 40 percent of businesses never reopen following a disaster such as a fire or flood. Is your business prepared to weather the storm if disaster strikes? If a fire causes the facility to be temporarily unusable, what would you do? Ideally, you would move to a temporary location while your permanent place of business is being repaired, but traditional Property Insurance does not cover this move or the loss of income while the permanent business location is being repaired. Ill-prepared businesses are often forced to completely shut down operations during repair, which can do irreparable damage to their brand and leave employees without work for extended periods of time. To mitigate this risk, consider adding Business Interruption coverage to your Property Insurance policy. This invaluable, though often overlooked, coverage safeguards your business by covering operating expenses and lost income while the permanent business location is being repaired. This will allow you to maintain payroll and, if needed, reallocate current employees to help with the cleanup effort.

    1. Liability Losses

    No matter how well you plan, running a small business can be fraught with unexpected surprises—the only way to completely avoid liability is to shutter your business. Smart business owners do the next best thing: protect their assets by carrying adequate Commercial General Liability (CGL) Insurance coverage. CGL policies provide coverage for claims of bodily injury or other physical injury, personal injury (libel or slander), advertising injury and property damage as a result of your products, premises or operations. A CGL policy with adequate coverage limits enables you to continue normal operations while dealing with real or fraudulent claims of negligence or wrongdoing, and also provides coverage for the cost of defending and settling claims.

    1. Key Person Losses

    Many small businesses are built around the talents and expertise of a few individuals. If an employee crucial to the functioning of your business departs unexpectedly due to death or injury, would day-to-day operations continue as usual or would disorder and uncertainty ensue? Would you be able to maintain your current level of performance and current revenue stream? How would you cover for the financial loss of the employee or pay for a temporary replacement during his or her recovery? Key Person Insurance can help you answer these questions with confidence. This coverage is designed to provide financial stability in a time of stress and uncertainty, allowing you to keep your business moving forward without missing a beat.

    1. Injuries to Employees

    Small business owners, especially those with less than 10 employees, often struggle with understanding their employee health and safety obligations. Just like their larger counterparts, small businesses have the same responsibility to indemnify workers who are injured or become ill during the course of their employment. Many businesses do not realize the full effect workplace accidents have on their organization. Beyond initial treatment costs and lost production time, on-the-job injuries have an impact on insurance premiums, which can increase your costs for years to come. Thankfully, by managing exposures and promoting safety, it is possible to control workers’ compensation premiums. Having the proper pre- and post-accident procedures in place can drastically reduce the severity of a workers’ compensation claim, and implementing a comprehensive safety program can reduce the accident rate. Together, these two steps can produce tremendous long-term savings.

    1. Managing Electronic Data and Computer Resources

    Small businesses often lack a formal IT department or even rudimentary internet security measures, which leaves them vulnerable to unscrupulous cybercriminals searching for an easy target. With an estimated liability of more than $200 per compromised record (multiplied by hundreds or thousands of customer records), the cost of a single data breach incident can be devastating for a small business. If your business stores customer records electronically, it is crucial that you have robust security measures in place. In addition to taking preventative measure to reduce Internet-based exposures, specialized technology coverage, such as Cyber Liability Insurance, can help protect your business against damage from cyber attacks, data breaches and other Internet-based exposures.

    1. Environmental Exposures

    Think of a business with significant environmental exposures. What comes to mind? Most people think of a large manufacturing, mining or petroleum operation, but these are not the only industries at risk for environmental liability losses. It is important to perform a comprehensive risk analysis to determine your own level of exposure. Keep in mind that because most commercial insurance policies contain pollution exclusions, unless you carry Environmental Insurance, you may be uninsured against significant environmental loss exposures.

    1. Employment Practices

    From the moment you begin the pre-hiring process until the final goodbyes at the exit interview, you are at risk for a lawsuit. In fact, three out of five employers will be sued by a prospective, current or former employee while they are in business. Although many lawsuits are groundless, defending against them is costly and time-consuming. Your business should take a hard look at whether it can afford to defend itself against accusations of wrongful employment practices. If not, there is an insurance solution called Employment Practices Liability that will protect your company against wrongful termination, discrimination (age, sex, race, disability, etc.) or sexual harassment lawsuits.

    1. Contracts

    When first starting out, many new business owners simply don’t have the time or expertise to adequately evaluate each clause in everything they’re signing. This oversight, however, can create major problems down the road. In many cases, small businesses become saddled with large additional risks, accepted via risk transfer from savvy suppliers or customers. While it’s tempting to shave costs by skimping on legal fees, making sure your business isn’t accepting additional and unnecessary risk can save you a lot of money over the long haul, both in legal costs and in insurance coverages.

    1. Manage Your Supply Chain

    Do you rely on one or more third-party suppliers to produce certain components used in your products? If you do, a disaster that interrupts your supplier’s regular business operations could have a crippling effect on your production abilities. Although you should always try to minimize potential liability through contingency planning and other risk management techniques, as supply chains grow across the globe, sometimes there is little you can do about the exposures faced by your suppliers. In a perfect world you could simply avoid doing business with companies that present numerous risks or that are unwilling to conform to your standards, but pricing constraints and niche markets limit the number of potential suppliers to choose from. Supply chain insurance is meant to cover losses you incur as a result of an interruption to your supply chain. Such coverage allows you to work confidently with suppliers who face exposures beyond your control.

    Insurance is a key component of any comprehensive risk management plan, but successful risk management also involves prevention, training and contingency planning. Contact Lawley’s small business team today to learn more about the tools and resources we can offer to help you manage risks, control workers’ compensation costs, advance safety and boost employee morale.