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Do You Really Need Insurance?

Do You Really Need Insurance?

There are generally three schools of thought on the purchase of business insurance: As a business owner I should discuss my business with my insurance broker and purchase the policies recommended to cover all of my operations and potential hazards. A Business Owner’s Package (BOP) policy should cover all of my insurance needs, even the ones my broker doesn’t know about. I don’t need insurance. If I buy insurance someone is just going to sue me to collect from my insurance company. Our favorite client is, of course, number 1. We offer risk management analysis services to all of our current and potential clients as a free service. What you (and we) don’t know can hurt you in the event of a claim. But what about the other 2 types? Are these ideas really so dangerous? No Policy Can Cover Everything Even if it has “general” or “comprehensive” or “package” in the title, no insurance policy is designed to cover every eventuality.  Every policy comes with some exclusions, and many of those exclusions are the result of court cases where a policy was forced to pay out on a claim the policy was never intended to cover. A healthcare organization made news in the past year when they were the victim of a data breach. Millions of patients records and personal information were exposed.  The costs of the hack would have been covered by cyber liability insurance, IF the board of directors had taken the recommendation of their insurance broker and purchased the coverage. They didn’t. Since the decision of the board to decline cyber liability insurance affected the...
Fake Insurance Certificates – What Can You Do?

Fake Insurance Certificates – What Can You Do?

You are a contractor with a long list of contract requirements for your subcontractors. The most important item on that list besides tax forms is the insurance certificate. It is the one you have to chase some subs for, even resorting to withholding payment to get it. Technology has made getting insurance certificates easier than ever. However, new advances also make it even easier to produce fraudulent certificates. Here are some ways to know if the certificate you’ve provided is valid, and how to prevent your business from receiving invalid certificates. Anyone Can Fake A Certificate Any business can pass off a fake certificate under the right (or wrong) circumstances, even subcontractors you may consider to be honest to a fault.  Things happen, and businesses may find themselves in a bind.  Consider these scenarios: A subcontractor that you’ve worked with before runs into money troubles. His insurance lapses due to nonpayment, but he needs the work, so he doctors an old certificate to look current. The employee of a former subcontractor goes out on his own and can’t afford insurance yet, so he uses a copy of the certificate from his former employer to provide proof of coverage. Just a few keystrokes on his computer and he’s suddenly “insured”. He’ll buy coverage when he can afford it. A subcontractor purchases a bare bones policy and doesn’t want to pay for those fancy extras like primary & noncontributory endorsements or an additional insured, so he takes the certificate from his insurance agent and adds that wording in after-the-fact to meet your contract requirements. No one on that list is completely...