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What To Avoid When Shopping For Business Insurance

Updated on September 27th, 2023 by Cassandra Love8 mins read

What To Avoid When Shopping For Business Insurance text over laying image of businessmen shaking handsShopping for insurance for a small business can be difficult and time consuming, especially for new businesses. Your business insurance needs and risks vary a lot more than individual insurance does. Running a business can feel like walking through a trap, where every step could be a mistake. It’s easy to spend too much on some things and forget about important responsibilities. If you own or run a business, you need to make sure you have the right kind of insurance. But there are a lot of plans to choose from, and it can be hard to know what you need. Many business owners make decisions about business insurance too quickly, which leads to problems in the long run. Cutting corners in an attempt to save time and money can actually backfire and cost you more money and time than you bargained for. When you’re shopping for business insurance, avoid these common mistakes. 

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  • Shopping By Price

When running a business, it’s important to save money. But picking a cheap insurance policy can end up costing you more in the long run. If you buy business insurance based on how cheap the monthly premiums are, you might not get the coverage you need to cover a claim. And it’s not just for premiums, going for the lowest deductibles has the same consequences. When comparing policies, it can be very helpful to find a nearby independent insurance agent like EZ. An independent agent can get several quotes and give expert information about what is needed in the area. So, talk to your independent insurance agent about how your business is different and ask for a list of plans that fit your needs the best.

  • Not Reading Over The Policy 

Your policy holds important information about your coverage limits, deductibles, and exclusions. The document is most likely long and filled with legal jargon so it may seem tedious to take the time to read all of it, but skimming the policy could lead to a nasty surprise when you try to file a claim later. Before you buy the policy, you should take the time to read and understand the limits and benefits. This way you can ask any questions you may have. Additionally, knowing what kinds of losses aren’t covered lets you know what supplemental coverage you may also need to get to make sure your business is fully protected.

  • Not Protecting Your Income

When they buy insurance, some business owners put more value on their physical goods than on their profits. Even though disasters like fires and hurricanes cause companies to lose their physical assets, they may also lose money because of the downtime. Depending on your insurance and how your business works, it can be very hard to get back on your feet after a disaster and the downtime that follows. To keep your business from losing a lot of money while you make fixes or move, you must also make up for the lost income. Talk to your agent about income coverage and how to add it to your policy as you protect your business against natural disasters or theft. This insurance will pay you back for any income you lose if you have to close your business because of a disaster.

  • Not Changing Insurance Providers

Having a dependable insurance company is great, but many people stick with the same company solely because it’s the one they’ve always used. But insurance companies change over time, and if yours begins to change in ways that don’t benefit you and your growing needs then you need to change. Answering a few simple questions can help you figure out if your current company is meeting your business’s needs.

 

  • Have my premiums gone up without coverage improving?
  • Are the services outdated?
  • Is your insurance company not focused on your specific industry?

If you said yes to any of these questions, you might want to look for a different company that can better meet your needs.

  • Buying Insurance That Doesn’t Meet Your Needs

Every business is different, and if you choose just a standard insurance to meet insurance requirements, you might not have the right coverage. There’s more to business insurance than just the amount of coverage you have. Your insurance needs to cover the specific risks your industry or clients have. No amount of coverage will help if your policy doesn’t cover the claim you are filing. Talk to your agent about the services you offer and the customers and vendors who rely on you before you buy a policy. Your independent insurance provider can help you find the best business insurance policy for your needs.

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  • Not Adjusting Your Insurance As Your Business Grows

Your business insurance protects your business. So, you shouldn’t just buy your insurance and never think about it again. Your business’s value will most likely be much higher in five years than it is today, and your insurance should reflect that. 

Talk to your agent about any changes in your business such as increased revenue, opening new storefronts, buying work vehicles. Then be ready to make the necessary changes to your policy. That way you never have a claim that won’t be covered. 

  • Forgetting About Workers’ Compensation Insurance

Almost every state has some laws requiring workers compensation insurance after you have a certain number of employees, some states require it for even one employee. Your workers are important to your business, and making sure they are safe is a big part of your success. You can also get coverage for companies and workers on a lease. If your workers get hurt on the job and you don’t have Workers’ Compensation, you could get in trouble. Not only will you be responsible for the employee’s medical bills and lost wages, you can also face fines and even jail time for not having workers’ compensation insurance. Not to mention leaving your company vulnerable to lawsuits from the injured employee and their family. 

  • Not Insuring Your Data

The internet runs the world these days, and businesses are no exception. At least some part of your business is likely to require the internet to run properly. That can be anything from your payroll, to client information, to order forms, to contracts. If you use the internet for any part of your business you need cyber liability insurance. This insurance protects your business in the event a hacker gets into your system. Hackers will hold your information hostage for ransom or infect your files. This can lead to lawsuits and losing your business entirely. Having cyber liability will cover any damages and protect you from these hackers. 

  • Being Reactive Instead of Proactive

When bad things happen, insurance helps a lot of small business people. The insurance is bought, thrown in a drawer, and only looked at when a claim needs to be made. This kind of thinking can be more expensive and ignores the valuable risk management tips that can be found when shopping for insurance. Don’t let luck get the best of you. Protect your business and your pocket by learning how to avoid the risks your business faces and keep costs down. Your insurance agent and insurance company should be able to help, whether it’s coming up with safety processes, setting up security measures, or installing a fire sprinkler system. If you take a few precautions, disaster won’t stop your business, and you might even get a discount on your premiums.

  • Misclassifying Your Employees

Our insurance experts can point out any mistakes you might be making with how you classify your employees that could cause your insurance rates to go up. For example, if you mistakenly label an employee’s job as dangerous, you might be paying too much for insurance because of it. In the same way, if you mistakenly classify a freelancer as an employee, you may spend too much on Workers’ Compensation Insurance for that person.

  • Buying Too Much Coverage

You don’t want to pay too much for insurance you don’t need. You don’t need to cover your home for $2 million if it would only cost you $500,000 to rebuild it from scratch. This is where a reliable insurance agent comes in handy. They can help you choose the right types of policies, amounts of coverage, and deductibles for your business. They can also tell you where you have double coverage and can save money by cutting a certain policy back.

Working With EZ

EZ can help whether you need group health insurance for your workers or commercial insurance to protect your business. Our agents work with the best insurance companies in the country to make sure you and your workers get the best insurance. In fact, we can find you the best coverage for your budget and save you hundreds of dollars a year. Call us at 877-670-3531 for help with group health insurance or 877-670-3538 for help with business insurance plans. Or enter your zip code into the bar below.

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Making Sense Of E&O Insurance & EPLI

Posted on September 21st, 2023 by Cassandra Love9 mins read

making sense of E&O insurance &EPLI text overlaying image of a maze that says liabilityRisk management is the core of commercial insurance. You know you have to protect your business from lawsuits, like if an employee is injured on company property, as well as from disasters such as fire or theft. However, not all damages are physical and not all claims are made by third parties. There are times when you will need errors and omissions (E&O) insurance or employee practices liability (EPLI) coverage. So, let’s examine what these policies cover and where they differ.

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E&O Insurance

It’s easy to imagine a construction site requiring liability insurance in the event of an injury, or a supermarket needing a policy to cover a customer who slips and falls in the store. A general commercial liability insurance policy would cover these types of accidents. Product liability insurance would protect against a product’s failure. This is all damage that we typically hear about. However, what about damages that aren’t visible? If your company provides clients with advice or services, you likely need E&O (also known as professional liability). In the past professional liability was for professionals such as doctors or lawyers, whereas E&O was for semi-professionals such as accountants or financial advisors. But now, the terms are used interchangeably. E&O insurance protects you against claims of:

Bad advice

Many clients rely on professionals, such as lawyers and consultants, for sound, practical, and specialized advice. If a client receives advice from a professional and their expectations are not met, the client may sue. A client may file a lawsuit, for instance, if a personal trainer advises their client to do certain workouts or stretches that lead to muscle strains or injuries. Another example, say a hairdresser advises a client to use a certain product for their hair that leaves them with damaged hair or skin problems.

Negligence

When a professional fails to provide the standard level of care they are negligent. A judge may find a doctor negligent if, for instance, he or she fails to review a patient’s chart before prescribing an allergen-containing medication. If a financial advisor disregards all warnings about a company’s financial health and recommends stocks that ultimately fail, they can be sued for negligence.

Slander or libel

If a professional publicly expresses unfavorable or incorrect opinions about their client, they can be sued for slander. False or derogatory written statements are considered libel. Either scenario can lead to a costly lawsuit.

Omissions

An omission is the failure to provide important information that could alter a client’s decisions. For instance, if a real estate agent fails to mention that a home is in a flooding zone or has extensive damage from past problems the new homeowner could sue them for not giving them all of the facts.

Mistakeshand coming out of a computer with an error sign

Even the most professional people in the world can make mistakes. If a client is harmed or loses money due to an error made by a professional such as an attorney, doctor, accountant etc. They could file a lawsuit even though the error was not intentional.

Cost of E&O

The cost of E&O is determined by a number of variables, including the type of business, its location, and any prior claims you’ve had to pay out. Due to the increased underwriting risk, E&O insurance may be more expensive or have less than favorable terms for a person or business with a lengthy history of litigation issues. On average, E&O insurance can cost between $500 and $1,000 annually per employee.

What It Doesn’t Cover

E&O policies do not cover criminal prosecution and certain non-listed liabilities that may arise in civil court. This includes illegal acts, deliberate wrongdoing, and criminal activity. Typically E&O insurance does not cover bodily injury caused by your business, as this is covered by general liability insurance. E&O insurance also may or may not cover temporary employee’s claims resulting from work performed prior to the policy’s start date, or claims in different jurisdictions. It may also exclude cyber related information leaks, employee injuries, and discrimination claims.

 

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EPLI

All of the above pertains to claims made by clients or customers against your company. However, how do you protect yourself from claims filed by your employees? Employers are protected by EPLI against lawsuits filed by current, former, or even prospective employees. In the same way that you have a duty to keep your customers safe and provide them with the best service, you also have a duty to treat all employees and potential hires fairly. This type of insurance kicks in when allegations are made such as:

 

  • Sexual harassment
  • Discrimination
  • Wrongful termination
  • Breach of employment contract
  • Negligent evaluation
  • Failure to employ or promote
  • Wrongful disciplinary actions
  • Deprivation of career opportunity
  • Wrongful infliction of emotional distress
  • Mismanagement of employee benefit plans

 

Keep in mind, however, that this type of insurance will cover owners, managers, and other employees if a claim is made against them, but will not cover anyone who has intentionally acted illegally. 

 

The cost of EPLI depends on the nature of your business, the number of employees you have, and various risk factors. Such as whether or not your company has been sued in the past for employment practices. The policies will reimburse your business for the costs associated with defending a lawsuit and for any judgements or settlements. Whether your company wins or loses a lawsuit, the policy will cover legal fees. In addition, policies typically exclude coverage for punitive damages and civil or criminal fines. EPLI policies exclude liabilities covered by other insurance policies, such as workers’ compensation.

Preventing Claims

To prevent employee lawsuits, start with educating your managers and employees so that you minimize these problems in the first place. For starters:

  • Develop effective hiring and screening programs to prevent hiring discrimination.
  • Post corporate policies throughout the workplace and include them in employee manuals so that everyone is aware of them.
  • Show employees what to do if they experience sexual harassment or discrimination at the hands of a supervisor.
  • Make sure that supervisors are aware of the company’s stance on unacceptable behaviors.
  • Document everything that occurs and the steps taken to prevent and resolve employee conflicts.

What it Won’t Cover

EPLI would not cover claims resulting from intentionally dishonest or criminal conduct such as theft or intentional property destructions. It also does not cover employee illness or work-related injuries as these are covered with workers’ compensation. In addition to intentional or criminal acts, the following situations are typically not covered by EPLI:

 

  • Professional errors – If your company makes a professional error you’ll need malpractice or E&O insurance to protect these situations.
  • Unemployment insurance – Most states have a government agency dedicated to handling unemployment benefits claims, EPLI will not cover these.
  • Unpaid wages – Typically, failing to pay wages for owed or completed work will not be covered by EPLI policies.
  • Fines and penalties – EPLI will not cover civil or criminal fines.

Limited EPLI Coverage

In addition, you may find that your EPLI policy provides limited coverage or none at all for certain types of employment practice claims. Below we’ve listed the examples of these situations where coverage is typically limited.

 

  • Breach of written employment contract – If any employee alleges that you violated your employment contract, whether the agreement was written or implied (EX: made in conversation) can be important. While most EPLI policies will cover the cost of claims related to implied contacts, written contracts may be handled differently by some policies. Some EPLI policies may cover written contract claims whereas many others will only cover legal defense costs or nothing for them.
  • Wage and hourly claims – When an employee claims that their employer did not pay them in a timely manner. Since a number of costly and high-profile overtime pay claims have been filed in recent years, most EPLI policies will exclude or specify sub limits for wage and hourly claims because the risk exposure is too great. 
  • Immigration violations – The majority of insurers do not offer EPLI coverage for federal, state, or local immigration-related violations (such as failing to check an employee’s immigration status). If so, it is typically a limited edition (or “endorsement”) to your EPLI policy.

Working With EZ

The world of commercial insurance can be extremely confusing, as it’s filled with a variety of policies that cover a variety of individuals and situations, as well as acronyms for a majority of policies. It’s important to evaluate your needs and get the best protection available. Remember that general commercial liability insurance does not cover everyone and everything, and you may need to supplement your policy with E&O and EPLI coverage.

If you need help making sense of the business insurance alphabet soup, we’re here to help! You will be assigned a personal agent by EZ.Insure, and you will never receive unwanted persistent phone calls. Our agents are highly trained and knowledgeable and will ensure you receive the exact coverage you need. Not to mention, we do all of this for free! To get your free instant quotes enter your zip code into the bar below. Or give one of our agents a call directly at 877-670-3538.

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Creating A Safer Workplace

Updated on September 27th, 2023 by Cassandra Love9 mins read

Creating A Safer Workplace text overlaying image of a work hat and dafety coneA serious injury at work can have a big effect on you and your business. It’s more common than you might think. So far in 2023, employers have reported 4.26 million non-fatal workplace injuries. Even though that seems like a lot, the number of work injuries has been steadily decreasing. That’s because more and more employers are starting to implement better safety programs. As an employer it’s your responsibility to keep your employees safe. Taking care of safety issues at work might seem expensive at first, but in the long run safe workplaces save more money as well as lower workers’ compensation premiums. 

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Identify Risks

Before you can get rid of risks at work, you have to figure out what they are first. The GOAL method is one of the easiest ways to find risks in the workplace. GOAL stands for Go Out And Look. Essentially, conduct safety checks regularly. Depending on the risks and types of hazards, inspections can be done every day, weekly, monthly, or quarterly. An important part of these checks is keeping records of everything so it’s easy to follow up. These records should include:

 

  • Names of the inspectors
  • Notes on each unsafe condition/practice
  • Suggestions to fix the conditions/practices

All inspections should also be looked over by the safety committee and the top managers. They can keep an eye on the cleanup process and look for any patterns in workers’ compensation claims in the operation.

Encourage Employees To Report Issues

While regular safety checks can improve a lot of hazards, nobody knows the potential issues like the workers. Your employees spend all day on the floor and are more likely to notice potential hazards or unsafe procedures quicker. Workers should know how important it is to fix problems when they are reported, and they should be encouraged to notice and report hazards or close calls right away. This lets you fix anything you may not notice during safety checks, allowing you to fix any issues quickly and efficiently. 

Offices Have Hazards Too

There are some safety risks that are unique to office environments. Most office workers spend their day sitting which can cause back and neck pain. Other risks like vision staring and wrist injuries can come from typing and answering phones over and over again. There are even fall hazards in the office. These may all seem like smaller injuries but over time can cause long term problems and workers’ compensation claims. Taking breaks can help reduce the chance of getting hurt, but figuring out other ways to reduce these risks is a great way to start making the workplace safer.

Workstation Safety

Not every injury is caused by a single accident. Repetitive stress injuries happen when employees do the same motions over and over again for years. These injuries can be avoided by making sure your work area is set up well. Here are some things to think about when setting up a new workstation:

 

  • Make sure work chairs can adjust to the employee’s height. For the best posture their thighs should be parallel to the floor with their feet flat on the floor. This helps employees keep a comfortable posture so they don’t injure their back with slouching.
  • Allow for keyboard height adjustments. While your employees are typing their elbows should be at a 90 degree angle with their wrists straight. This will help prevent wrist injuries such as carpal tunnel
  • Purchase adjustable high quality computer monitors. Their computer monitors should be able to adjust so they can keep the monitor at eye level. This also prevents slouching and eye strain. 

Preventing Falls In The Office

Whether you believe it or not, falls are the most common kind of accident in the workplace. The most reported common reasons for office falls are:

 

  • Tripping over desks, file cabinets, cords, and carpeting
  • Falling out of broken or unstable chairs
  • Falls from standing on chairs
  • Slipping on wet floors
  • Falls due to poor lighting

The easiest ways to avoid these incidents are things you may consider common sense, but making sure steps are taken is important:

 

  • Maintain and fix carpeting and electrical cords
  • Keep offices well lit and change bulbs that start to dim immediately
  • Make sure there are no loose objects lying around
  • Keep walkways clear and ask employees not to leave things like their bags or personal items sticking out

Provide Safety Training

Everyone in the company, and we do mean everyone, from management to the interns, need to be trained in safety protocols. The safety program should also be part of the training for any new employees or when the tasks and possible risks of job changes. Employers who follow safety rules and procedures give their workers safety training, education, and occupational health programs. This way they feel safe when they go to work every day and aren’t at risk for easily avoided mistakes. These safety procedures should be looked at regularly and updated as needed to make sure they are always effective.

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Create Emergency Action Plans

Having a plan for what to do when an employee gets hurt will help make sure the worker gets care quickly and help the workers’ compensation claim process go smoothly. Employees should be taught to stay calm, look at the situation, get in touch with the person in charge, and do what they can to help the person who is hurt or sick.

Think Like An Underwriter

Underwriters work for insurance companies, and their job is to decide whether or not they want to cover a certain risk. When your agent sends them the opportunity to evaluate, they will highlight what the business is doing to make it safer so that it looks like a good risk. When evaluating your own business, it can be helpful to think like an underwriter. This can help you see where you might need to tighten up. Think about how you want other people to see your business and work hard to make that happen.

Provide Proper Gear

What kind of personal protective equipment (PPE) your employees need depends on what you do for a living. For example, antibacterial clothes keep people safe when handling food, masks with double-layer panels are used by people who work in health care, and industrial workwear is strong and resistant to fire. Often, an industry association can help you with questions about your workplace. Making sure your employees have the proper PPE will help keep them safe from potential hazards.

Require Proper Footwear

Any job requires that you wear the right shoes. If your workers are going to be outside, they should wear shoes that are right for the weather. Soles that don’t slip are important almost everywhere. Encourage people to wear shoes with closed toes at work, and provide sturdy shoes in places where people could get hurt on their feet.

Perform Maintenance On Tools and Equipment

Did you know that dull knives hurt more people in restaurants than sharp ones? That’s because a dull knife needs more force to cut through food, which makes it more likely that you’ll cut yourself accidentally or get an injury from doing the same thing over and over again, like tendonitis or carpal tunnel syndrome. Your employees’ tools should be checked regularly to make sure there are no broken or worn parts, no mechanical problems, and that everything is working as it should. Do regular maintenance on your equipment to make it last longer and keep your workers safe.

Factor In Your Employees Needs

Stress, anxiety, and tiredness can make it hard for an employee to pay attention, react quickly, concentrate, and do other things. What’s going on in their personal lives may be “none of your business” as an employer, but how it affects them is very much your business. Even though you can’t control what happens to employees on a personal level, employers can take steps to help keep problems from getting worse. Try to cut down on or limit long, rotating, or overtime shifts. Both employees who take on more work and those who don’t get enough sleep are more likely to get hurt on the job. Plan regular breaks throughout the day. Consider starting a workplace wellness program to give employees a reason to do things that will help them stay healthy and less stressed. 

Working With EZ

Most businesses are required by law to have workers’ compensation insurance. Having this insurance protects both your business and your employees. Your business doesn’t have to spend a lot of money to keep your employees safe, though. There are many ways to encourage safety routines and programs, all of which will help you spend less on workers’ compensation. If the best practices for claims management are put in place and followed, your employees will be able to go back to work as soon as they are medically cleared to do so. Not only will production get back to normal, but workers’ compensation costs will go down as well. 

 

Come to EZ to get free, instant quotes from one of our licensed agents on the best workers’ comp policy. And if you already have workers’ comp benefits but want to look around for a better deal, we can help you do that. Your EZ agent will know about the rules in your area and be able to give you advice as you look for the best policy at the best price. To get started, just type your zip code into the box above or call us at 877-670-3538 to talk to a licensed agent.

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The Most Common Business Insurance Claims

Updated on September 1st, 2023 by Cassandra Love9 mins read

The Most Common Business Insurance Claims text overlaying image of a worker who fell holding their headIf everything has been smooth sailing for your business so far, then that’s great! We don’t want to be the bearers of bad news but we have to remind you that things can go wrong. Which is why you have to maintain your commercial insurance policies. It could be a major mistake to believe that you will likely never have to use your insurance policies or that the cost of premiums is not worthwhile. Insurance claims are more common, and costly, than you might expect.

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Burglary And Theft

Almost every commercial business has been the victim of theft by either customers or employees. The majority of all insurance claims filed annually are for burglary and theft. In fact, a recent survey revealed that 54% of small business owners have reported theft. Every business has something that can be stolen, whether it’s money, supplies, data, etc. It is not surprising that this is the most common insurance claim for businesses.

Water And Freezing Damage

The second most frequent insurance claim is for water damage and subsequent freezing due to pipes bursting or flooding from storms. Thankfully the cost of this type of damage can be covered by commercial property insurance. You also need to consider the cost associated with repairing structural damage. Keeping up with snow and ice removal can lower the risk of freezing damage. And maintaining a suitable indoor temperature can prevent pipes from bursting. If you plan to be away from the business for more than 72 hours, such as for an expected snow storm, turning off the water can lower the chances of pipes bursting and causing damage.

Wind and Hail Damage

During severe storms, the wind can become so strong that it actually brings trees and branches down onto buildings. Hail can damage roofs and windows, whereas a tornado can completely demolish your building. Sounds intense, right? Wind and hail damage can cost your business thousands of dollars in repairs. A sufficient commercial insurance policy will help cover the costs of hail and windstorm damage.

Fires

Both small and large businesses can be severely affected by fires. If your business has suffered fire-related losses or damage, you can file a claim for commercial property insurance to cover your financial losses. In some instances, business may be required to replace damaged equipment and reconstruct portions of the structure. If your company’s operations are temporarily halted as a result of fire damage, you can rely on business interruption insurance to compensate for any lost revenue.

Customer Injury and Property Damage

Customer injury and property damage are precisely what they sound like. On your property, accidents are inevitable, however, your general liability insurance policy will cover any customer injuries or property damage. These two insurance claims are commonplace in the majority of industries from construction to retail. If a customer or someone from the general public slips and falls while visiting your business, or if a vehicle crashes into the front of your store, causing severe property damage, your business will need insurance. 10% of businesses file claims for injuries caused by slips and falls. However, if medical costs, legal fees, or repairs start to build up after a customer injury or property damage claim, your general liability insurance can help.

Product Liability

If any products you sell or make are defective, or fail, there is a good chance you will be held liable for any damages, injuries, or illnesses the failure results in. This frequent insurance claim typically happens in the retail, manufacturing, and distribution industries. You will be held responsible for any medical expenses, legal fees, and wage lost. Not to mention the cost of a product recall if your company does not have the appropriate insurance policy. General liability insurance and product liability insurance can protect your business from the risks associated with product liability claims.

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Reputational Harm

If a client or another business decides to sue your company for causing them reputational damage, you may be held responsible for the damage. Reputational damage can also result from an event that causes your company’s reputation to be questioned or damaged. These claims are most common in businesses that store customer data, such as banks, retailers, and media companies. General and professional liability insurance policies can help protect you from reputation damage claims.

Auto Accidents

If your company uses commercial vehicles then you’ll need appropriate coverage from vehicle damage, property damage, and injuries associated with car accidents. A commercial auto insurance policy can protect your company, employees, and your vehicles in the event of an accident.

Struck By Object

Customers, employees, and the general public can be struck by random objects while on your property. Which can cause some serious problems if you don’t have enough business insurance. In one of the more unusual cases of business insurance claims, a British travel insurer offered additional coverage against people being struck by falling coconuts while on vacation. It just goes to show that you can never predict what can happen.

How The Business Insurance Claims Process Works

In the event that your business is affected by one of the above problems, filing a claim for business insurance is pretty straightforward. Your first step should be to contact your insurance company. You have to inform them immediately to get the claim started. You’ll need to give them a list of any items that were damaged or the specifics of a customer’s complaint. Some insurance companies will require you to call them on the phone to file a claim. While others will let you file online. When you file a liability claim, your insurer will conduct an investigation to verify the circumstances.

 

Next, your broker will examine your insurance policy to determine what is and is not covered. Additionally, your insurer may suggest contractors who can assist you with any necessary repairs. Once the investigation and policy review are complete, your claims adjuster will let you know when you can anticipate receiving payment for your commercial insurance claim. 

What Happens If My Insurance Claim Is Denied?

Unfortunately, not all commercial insurance claims procedures are straightforward. Your claim may be rejected for a variety of reasons. For example, if the insurance company suspects fraud, if the claim is not covered by your policy, or if you did not submit the claim quickly enough, it could be denied. There are, however, alternatives to filing a lawsuit in this situation. If your claim is denied, you can write a response letter to your insurance company explaining why you believe the denial was incorrect. To do this, you have to maintain accurate records of all pertinent information before and after the incident. If you require additional assistance, do not hesitate to contact a state insurance regulator for direction.

 

Additionally, it never hurts to follow up with an insurance company regarding a pending claim or to request an explanation as to why the claim was denied. Most of the time, you’ll want to avoid having to go to small claims court over a dispute with an insurance company. Hiring an attorney will only cost you more money. Additionally, there is no assurance that you will win the case. Consider reaching an agreement with the insurance company, even if a state insurance regulator is required. Going to court should almost always be a last resort for small businesses.

Types of Business Insurance You May Need

There’s a long list of insurance policies you should consider for your small business. All of these protect different portions of your business and are equally important.

 

  • General Liability – General liability insurance, also known as commercial general liability insurance, protects your business against claims of bodily injury and property damage. This type of policy can be purchased separately or as part of a business owner’s policy.
  • Professional liability – Professional liability insurance, also known as errors and omissions insurance, covers a portion of the costs associated with negligence claims and lawsuits. Professional liability will cover you if you or an employee make a costly mistake, such as providing poor advice or improperly handling confidential information.
  • Commercial property – Your company’s physical assets are protected with commercial property insurance. It protects against damage from fire, explosions, burst pipes, storms, theft, and vandalism. Typically, earthquakes and floods are not covered by commercial property insurance unless they are purchased as an add-on for the policy.
  • Cyber liability – Cyber liability protects against threats associated with that technology. These threats, which include hacking and data leaks, can be devastating to your business.
  • Commercial auto – Any costs associated with injuries, deaths, or property damage caused by your business vehicle are covered by commercial auto. This policy is necessary because a standard auto insurance policy will not cover you if you use your vehicle for business purposes.
  • Business Owners Policies – A business owner’s policy (BOP) combines property and liability insurance into one easy policy. NOP insurance protects your business financially against fire, theft, bodily harm, and property damage.

Working With EZ

Regardless of the type of business insurance policy you need, EZ can help. Our agents work with the nation’s leading insurance providers to ensure that your business and its employees have the best coverage available. In fact, we can save you hundreds of dollars annually by finding the best coverage within your budget. Simply enter your zip code into the box below to get started. Or feel free to contact us at 877-670-3538 if you have any questions.

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How to Fight a Workers’ Comp Claim

Updated on September 1st, 2023 by Cassandra Love9 mins read

How to Fight a Workers’ Comp Claim text overlaying image of two people playing tug of warWorkers’ compensation insurance is designed to protect you and your employees financially in the event of a workplace accident or unjust. Workers’ compensation insurance isn’t just a good idea, depending on your state it may be a legal requirement. When it comes to workers’ comp claims, the majority of them are approved because workers’ compensation is considered “no-fault”. Meaning that employees do not need to prove that their employer was at fault for their injury.

 

As long as the employee files their claim on time, has witnesses to their accident, and seeks medical treatment for their injury, the employee will receive benefits. There may come a time, however, when one of your employees files a claim that you find questionable. In this case, you do have options, including the option to contest the claim. Below we’ll look at how you can fight a questionable claim. As well as the impact workers’ compensation claims can have on a business. 

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Reasons To Dispute A Workers’ Comp Claim

You can’t fight a workers’ comp claim for no reason, you and your insurance company must have a legal basis for disputing any claims. Here are some of the reasons you could have for disputing a claim:

 

  • Your employee missed the deadline to file a claim
  • The wrong paperwork was used to file a claim
  • The injury didn’t happen at your company
  • Your employee quit before filing a claim
  • The injury happened while the employee was at work but was not working
  • The injury was intentional

Always File The Claim

Even if you suspect the workers’ compensation claim is false. You have to file it when the employee comes to you with it. You can be penalized if you fail to report a work-related injury with a full report of all related details as soon as possible. The insurance claim adjuster’s job is to determine whether or not the claim is valid or not. You are paying premiums to your insurance company so that they can handle these matters. If your report is thorough and you work closely with your adjuster, there is a good chance the adjuster will catch the fraudulent claim and deny it anyway. So, delaying or not filing a report because you think it’s invalid could backfire on you, best to just let the adjuster do their job. 

Work With The Claims Adjuster

Once you’ve filed the workers’ compensation claim with your insurance company, an adjuster will be assigned to the case. They will contact you and the employee personally, as well as review all documents associated with the case including medical records. The adjuster ultimately decides if the claim will be denied, but at this point you will have more information about the claim than the adjuster. If you have reason to believe the employee lied, or was injured outside of work, now is the time to gather all information that supports why you think it’s invalid. Document, date, and save everything that indicates why you think the claim is fraudulent. Most importantly, inform your adjuster immediately that you believe the claim to be questionable. Indicating in your initial report that you believe there are reasons to deny the claim serves 2 purposes.

 

First, it lets the adjuster know they may need to file an extension early, since workers’ compensation claims have to be completed in a certain time frame, and disputing a claim will take more time to investigate. Secondly, marking your claim as questionable from the beginning will actually make your adjuster pay closer attention. They will spend more time looking through the paperwork, medical records, and searching for warning signs that otherwise may have been missed. Finding one of these red flags doesn’t necessarily mean anything, as accidents and coincidences do happen. But if an adjuster notices that more than one exists, they will look into it further to make sure if the claim is or isn’t fraudulent.

Warning Signs

  • A new hire who immediately filed a claim after being hired
  • An employee who has immediately hired an attorney after the injury
  • Claims from an employee who may have been “disgruntled”
  • Employees with poor attendance, poor work records, or financial issues
  • Injuries with no witnesses, or that happened in an area the employee isn’t assigned to normally work
  • Injuries that occur late on a Friday or right when they return to work on Monday

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Learn Your State’s Procedure

While workers’ comp is mandatory in almost every state, each state has its own laws and procedures for dealing with claims. Including disputing them. You can call your insurance provider and ask about what you need to know about local procedures. So you don’t accidentally make a misstep and cause trouble for yourself or your company. 

If you want to learn more about your state’s specific workers compensation laws you can read our state by state guide here.

Dispute The Claim

You have the option to dispute even if the adjuster doesn’t deny the claim after the investigation. In some states, such as Texas, you have to submit a form or attend a hearing to dispute the claim in front of a judge. In other states, such as New York, or Tennessee, you may have to appear before a judicial panel or speak with a state-assigned workers’ compensation arbitrator. However, regardless of the state your company is in, you will most likely have to defend your position orally, in writing, or both. You will also need to provide all of the evidence you gathered when you first filed the claim and informed the adjuster of your concerns. Remember the “document, date, and save all information” part? This is where that step comes in handy.

How Workers’ Comp Claims Affect Businesses

Workers’ compensation claims tend to have a greater impact on smaller businesses. This is because larger companies have deeper pockets and larger payrolls, allowing them to absorb the financial cost with not much issue. Regardless of how big or small your business is though, workers’ comp claims can cause your business issues. Below we’ve detailed how claims can affect you. So, you understand why it’s important to fight fraudulent claims to protect yourself. As well as explain why doing everything you can to avoid workplace accidents is even more important.

Premium Hikes

Your workers’ compensation insurance premiums are determined by your industry, number of employees, payroll, and claims history over the last 3 years. A single claim will not necessarily result in a higher premium. But depending on the nature of the claim and the resulting medical bills and disability benefits even one claim could make a mark on your record. The more often you have workers’ compensation claims the more likely it is that your premiums will increase.

 

Additionally, your insurer also takes your experience modification rate (EMR) into consideration. Your EMR is how insurance companies compare your claims history to other companies in the same industry. The average EMR is 1.0, the more claims you have the higher above average you are. And then the higher your premiums will be because your company will be considered a higher risk to insure. Regular safety training and following industry-specific safety guidelines can help reduce your premiums.

Administrative Costs

Processing a workers’ compensation claim can take a lot of time. Especially if you’ve signaled that you believe it’s fraudulent. The insurance company will want to examine all relevant evidence, including the employee’s medical records. Effectively giving you or your claims specialist more work to do. Your company may also need to spend a lot of time and money to fix or check any equipment that was involved. As well as repair it if needed. Especially if the machinery involved is found to be defective after the accident. There may also be more paperwork and more hours involved in reporting the incident to state and federal regulators. Particularly if an OSHA violation is suspected. New equipment or training that stems from a regulator’s requirement can take a chunk out of your bottom line.

Legal Action Expenses

If you believe it is false, and you decide to take it to court you could also end up paying. While your attorney will advise you on whether or not you should go to court in the first place. Keep in mind if you lose the case, you will have significantly higher legal fees than you would have if you settled the claim. So, if you are planning on disputing your claim make sure your legal team agrees with the decision. And that you have absolute proof that the claim was fraudulent.

Reputation Damage

Impact on your company’s brand is difficult to predict. Your reputation can be affected by the severity of the accident. Whether it is covered by local news outlets, and whether it spreads on social media. A serious accident, repeated incidents, or OSHA fines could make it difficult to be able to hire new employees or get new customers.

Working With EZ

Workers’ compensation isn’t just about protecting your employees, it’s also about protecting your business. Nobody wants to deny a legitimate claim. But if you encounter one of those rare cases it’s fraudulent, you should know you have rights as well. And remember, EZ.Insure is here to help if you have any questions about workers’ compensation insurance. Or any other commercial insurance for that matter. We will connect you with a highly trained licensed agent. Who will listen to all of your concerns and make sure you get the best policy. To get started, enter your zip code in the box below or call 977-670-3538 to speak with an agent today.

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Business Insurance For The Self-Employed

Updated on September 1st, 2023 by Cassandra Love8 mins read

business insurance for the self-employed text overlaying image of a mom working from homeMore and more Americans are leaving their cubicles to work on their own. Well, why not? You decide how to run your business. You decide when to work. Who is on your team is up to you. Those are some great perks. So it’s not surprising that there are 15 million self-employed professionals in the American workforce right now, and that number could nearly triple in the next two years.

 

But there are some things you can’t control or plan for in business or in life. What if something goes wrong on the construction site and one of your clients gets hurt? Or what if you get hurt in a freak accident and can’t work anymore? Those “what if” questions are enough to turn the dream of a self-employed entrepreneur into a nightmare. So, if you work for yourself, you need insurance to protect yourself, your family, and your business. You’ve worked too hard to leave anything unprotected. But how do you know which types of insurance for self-employed people need and don’t need? Let’s look at types of insurance that will make you feel safe.

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Self-Employed Business Insurance

Whether you’re a plumber or a freelance writer, there’s always a chance of something going wrong with your job. Some people are more likely to get hurt on the job, while others may be more likely to be sued. If you work for yourself, you need some kind of business insurance to cover the risks of your work. Here are the four most important types of business insurance to look into.

1. General Liability 

Liability insurance will protect you financially in the event that someone sues you for damages after slipping and falling in your coffee shop. Or breaking an expensive vase while cleaning a client’s home. Slander suits are also covered by general liability insurance. This sort of protection is available both as a separate policy and as part of a business owner’s policy.

2. Professional Liability

Listen, we all have our flaws, and everybody messes up sometimes. This is where professional liability comes in handy. It’s insurance that protects you in the event that a client is harmed as a result of a service you provided or advice you gave. It is also known by its more common name, errors and omissions insurance. Professional liability insurance covers financial losses in the event of injury or damage. While general liability insurance covers injuries and damages to property.

3. Business Owner’s Policy (BOP)

A business owner’s policy (BOP) gives your small business protection against a wide range of claims. It does this by combining two types of coverage. Commercial general liability insurance and Commercial property insurance are both parts of its coverage. 

 

The part of a BOP called “general liability” protects your business in case someone makes a claim against you or your business. General liability insurance protects you from lawsuits if something like a customer slipping on a wet floor. Or a faulty product causing damage to a client’s property. Or a claim that your products or services hurt someone. It can also protect you from libel, slander, and certain advertising lawsuits.

 

The property part of a BOP helps protect the buildings, equipment, furniture. And stock that you own, rent, or lease for your business. It helps pay to fix or replace things that are stolen, broken, or destroyed, even if they don’t belong to you but were in your care. It can also pay for things like rent, payroll, and other bills while your property is being fixed or replaced after a fire or other covered loss.

4. Workers’ Compensation

If you have employees, no matter the nature of your business, you are required by law to carry workers’ compensation insurance. Workers’ compensation insurance, also known as “workers’ comp,” is a mandatory type of coverage that will provide financial support to your staff if they sustain an injury while performing their job duties. It serves as a disability insurance pool that reimburses workers monetarily and/or provides medical care in the event of an illness or injury. If you want to learn more about the workers’ compensation laws in your state, you can visit the state by state guides on our site.

5. Cyber Liability

Physical dangers such as injury and property loss are ever-present in the business world. However, there are dangers associated with using technology that could affect your company. Data leaks and hacking are just two examples. Information about customers’ identities or medical histories that you store on company computers is a prime target for hackers. In order to quickly recover from a data breach or cyberattack, it is crucial that your company be covered by data breach or cyber liability insurance.

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Self-Employed Health Insurance

If you’re in business for yourself, it’s important to have a basic understanding of health insurance. As a first step, you should enroll in a health insurance plan. If you do not have health insurance this year, you could be fined by the government depending on what state you live in. More importantly, you and your loved ones are taking a serious risk if and when a medical emergency arises.

 

In addition, if you have been relying on your employer to provide health coverage, you may be in for a rude awakening when you compare prices. Since you no longer have an employer to split the cost of health insurance with, you must do so on your own. The good news is that self-employed professionals can reduce their tax liability by deducting the money they spend on health insurance premiums.

How To Reduce The Cost Of Self-Employed Health Insurance

A high-deductible health plan (HDHP) is a good option for those looking to save money on health insurance premiums. A higher deductible on your health insurance plan means you’ll have to pay more out of pocket for medical care before your policy kicks in. However, the trade-off is cheaper premiums every month.

 

Opening a health savings account (HSA) is an option with your high-deductible health plan, making it an even better value. The funds built up in a health savings account (HSA) are exempt from federal income tax, allowing you to save tax-free for future medical expenses. It’s a good idea to consult with an EZ agent, who can explain your options and guide you toward a policy that works for your finances and your loved ones. They will assist you in locating competitive rates and suitable protection.

Self-Employed Disability Insurance

If you’re self-employed and become ill or injured and unable to work, disability insurance could help replace some of your lost income. There are both public and private options for disability insurance. The government provides some options, such as the Social Security Administration and some state programs. 

 

When you’re self-employed, you can buy your own disability insurance policy rather than participating in a potentially more expensive group plan through your employer. You may still be eligible for a group policy through your spouse’s employer or a trade group. You may have more options with an individual policy, but the premiums may be higher. Policy features such as the waiting period, riders, and the definition of disability may be up for negotiation.  

Short vs Long Term Disability Insurance

Disability coverage comes in two flavors: long term and short term. Long term disability insurance typically has an elimination period of several weeks to months and a benefit period of several years up until retirement. There may be no waiting period or one as long as two weeks before benefits begin with short term disability insurance. Although long term disability insurance that pays out until retirement age is ideal, a short term policy could be worthwhile as well. In general, shorter waiting periods and longer benefits payout periods tend to come with higher premiums.

 

For an additional premium, you can secure coverage that the insurance provider can’t revoke for any reason (including your failure to pay premiums) with a noncancelable policy. With guaranteed renewable policies, the insurer cannot cancel your coverage. But they can raise your premiums along with other customers in your rating class.  Additional riders, such as cost-of-living adjustments (COLA), residual benefits in the event of a partial disability, premium refunds for going claim-free, premium waivers in the event of a disability, and so on, can be purchased for an additional cost.

EZ Can Help

Working independently or as a freelancer allows for more freedom and a better work-life balance. One disadvantage is that you will be responsible for arranging your own insurance. It’s essential that you do this. Since an accident or emergency can cause financial ruin if you don’t have the proper insurance.  As a result, self-employed people who don’t have insurance are taking a risk by not doing so. However, EZ can help! We offer free instant quotes on business insurance and we can even help you find the best plans for you. Enter your zip code in the box below or call one of our licensed agents at 877-670-3557 to get started.

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