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Three Times You Will Need EPLI

Three Times You Will Need EPLI

Employment Practices Liability Insurance (EPLI) is one of those lines of coverage that many businesses don’t want to purchase. It may seem like an unnecessary expense and is often overlooked when a company is building an insurance portfolio. There are plenty of instances when EPLI can come in handy.  Here are the three big ones. (1) When You Are Hiring Employees Hiring new or replacement employees is never easy. Once you post the help wanted ad you have to deal with an onslaught of resumes, phone calls, and in-person inquiries. This is time-consuming and frustrating. After you narrow down the list of applicants there are phone and/or in-person interviews, and then the hope that your selected applicant is everything they seem to be and more. From the perspective of a potential employee, things are just as frustrating. They’re sending out multiple resumes and going on multiple interviews. The one with your company goes well, but then they don’t get hired. Why? Some potential employees may believe that they should have been hired and weren’t because of something other than they weren’t right for the job. A job applicant may decide that he or she wasn’t hired due to skin color, gender, sexual orientation, country of origin, pregnancy, disability, or another discriminatory reason. While some of these claims are easy to dismiss, the applicant may choose to hire an attorney and file suit. Fighting a discrimination claim can be time-consuming and costly for your business, even resulting in negative press.  The answer? Employment practices liability insurance.  (2) During The Course of Employment The biggest expense for an employer is, of...
Insurable Interest: What’s In It For You?

Insurable Interest: What’s In It For You?

Insurance can be a big expense for businesses or individuals. However, some may choose to insure everything (or everyone) that they can in order to protect themselves financially. The main thing to remember if you are looking to purchase any type of insurance is a concept called “insurable interest”. What is it, and do you have it? Let’s find out. Why Does Insurable Interest Matter? The basic tenet of insurance is to “make whole”. For example: If you own a home or a building and you lose it in a fire, then insurance will pay to replace it. That will make you whole again – by replacing your building or home so that you once again have a place to work or live. Of course, there are other things that factor into it (coinsurance, depreciation, etc) but the main idea of making a person or business whole again is that you’ve lost something you owned or had an insurable interest in. What Can You Insure? Just about anything can be insured by anyone. You can get life insurance on your spouse and children. You can insure your home, your business building, your personal and company vehicles.  You can purchase life insurance on someone other than a spouse or child. You can even insure buildings you don’t own.  For example: let’s say you’ve run out of storage space in your house. Your next-door neighbor lets you store some of your belongings in his backyard shed. You decide that since your stuff is in the shed, you’re going to purchase insurance on the shed and the contents. The shed gets struck...
Do You Have Management Liability Insurance?

Do You Have Management Liability Insurance?

Hayes Brokers believes that regular insurance portfolio reviews are important for businesses. Besides cyber liability insurance, the most often unpurchased coverage for business owners is Management Liability insurance. If you don’t currently have these policies or have never been offered this coverage in the past, it is time to talk to your broker. So what is Management Liability insurance? The Components of Management Liability Insurance Management Liability coverage is actually a combination of coverage lines or policies designed to protect business owners, management teams and boards of directors. These entities can be vulnerable to claims no matter how large or small the company is, and whether or not it is private, non-profit or publicly held. These policies typically include: Directors & Officers Liability (D&O). Whether or not you have an official board of directors, there are one or more persons who make decisions for your company. Directors and officers may be exposed to costly litigation brought against them and the company due to financial losses brought on by the decisions of this board or the individuals. This coverage not only protects the assets of the company, but also the personal assets of the directors and officers. Examples of D&O claims include conflict of interest, violation of articles of incorporation and/or bylaws of the organization, transactions with companies in which the directors or officers have a personal interest or any other dealings that cause financial losses to the company or shareholders. Employment Practices Liability (EPLI). EPLI is valuable coverage that provides for defense costs and damages resulting from alleged or actual employment-related practices for things such as wrongful termination, failure...
Liability Exclusions That Could Affect Your Business

Liability Exclusions That Could Affect Your Business

We all know how easy it is to click the “I Agree” button on a website or for a piece of software when it is required. Most of us don’t read the fine print and have no idea what we are agreeing to. Sometimes that can come back and bite us later on. Insurance policies are contracts, just like those terms and conditions. You are usually made aware of the terms and conditions of an insurance contract twice: once when you receive the quote or proposal and then when you receive the policy. Do you read them? If not, you should. What you don’t know can hurt your business. Here are a few sample liability exclusions and endorsements that could come back to haunt you. Designated Premises Endorsement This endorsement, sometimes called Limitation of Coverage to Designated Premises or Project (CG 21 44 sample here), is most often used on liability policies that are project or location-specific. However, the endorsement may show up on liability policies to help curb premium costs. Let’s say you run a restaurant. Most restaurants operate out of a fixed location. So the liability coverage is limited to anything that happens at your restaurant on 123 Main Street. Now your cute little Anytown, USA is going to have a centennial celebration in the town square two miles down the road. You’ve decided to set up a booth there to sell food and drink.  If your policy has a Designated Premises Endorsement, there would be no coverage for bodily injury or property damage incurred by patrons of your restaurant’s booth while they are at the centennial...
The Future of Insurance for Vaping

The Future of Insurance for Vaping

Vaping has increased in popularity over the years due to its attractiveness as an alternative for smokers and an alternative vehicle for cannabis consumption. However, recent events in the news have both consumers and suppliers on edge.  In The News Deaths due to alleged vaping-related illnesses are popping up all over the country. These deaths are being attributed to everything from the flavored oils being used to a chemical used in cheap vape pens. Still others blame black-market cartridges containing THC. These incidents spurred some legislators on state levels and the national level to introduce bills calling for banning of vaping and e-cigarettes in whole or in part. Not Illegal Yet As of now, vaping and e-cigarettes are still legal and may be sold by businesses and used by individuals. That may not change anytime soon. What may change? The age at which consumers may purchase and use these products, how the products are made, and how they may be used.  How Will Your Insurance Be Affected? If you own a cannabis business or smoke shop that deals with vaping pens and/or e-cigarettes, there is no cause for alarm just yet. As long as these products remain legal and your business is selling legal products within the confines of the law, your insurance will not be affected. To be certain your coverage isn’t affected, be sure that you know where all of your stock comes from. Always use reputable vendors, and don’t stock products that might have shady origins. One thing to consider, if you don’t have it already, is products liability insurance. It is important to note that...
Work Comp Exemptions for Marijuana Businesses

Work Comp Exemptions for Marijuana Businesses

As the marijuana business landscape continues to change in California, so do the insurance rules. In many cases, what you don’t know could actually save you money. Nonprofit vs. For Profit With the implementation of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) in January 2018, adult-use cannabis businesses now have a choice. These businesses may now be organized as non-profit or for-profit. There are advantages and disadvantages to both types of business formats. If you are still deciding which is right or your business, a great article on the pros and cons of each can be found here. Whether you are just starting out or thinking about converting your business from non-profit to for-profit status, you should know that status affects your workers’ compensation insurance. What Does Work Comp Have To Do With It? As you are aware, workers’ compensation insurance is based on the number of employees and their payroll. The more employees you have, the higher your payroll and the higher your insurance premium will be. Non-profit businesses must report all payroll, even for owners and officers. This is an added expense when for-profit businesses can exclude owners and officers from coverage. There are caps for payroll for the following: Executive Officers, Partners, Individual Employers and Members of a Limited Liability Company. The minimum reported payroll for included officers is $52,900 and the maximum is $133,900. However, even those amounts can have a significant impact on the Workers Compensation premium. Have You Made the Change? If your cannabis business has converted from non-profit status to for-profit status, you should be aware that the status...