Workers’ compensation and disability insurance are similar policies, but workers’ compensation covers both the company and the employee from injuries and illnesses that happen at work. While disability insurance covers an employee for medical problems that happen outside of work. Workers’ compensation insurance and disability both help workers who are sick or hurt and can’t work to earn money. Workers’ compensation insurance is something that most states require companies with employees to have.
It pays for a worker’s medical bills if he or she gets sick or hurt at work. It can also help make up for a worker’s lost income if they can’t work for a while. Disability insurance replaces a person’s lost income if they are hurt or sick outside of work and can’t work because they are handicapped. Most of the time, this coverage is not required. However, some states, like California, have state disability programs that require all qualified workers to have coverage.
Workers’ Compensation Insurance
In most places, employers are required to have insurance for workers’ compensation. But if you don’t have insurance, you could be held responsible for paying for any accidents you get on the job. If you or a worker needs long-term care, these costs can be much higher than the cost of insurance. After getting hurt or sick at work, workers’ compensation can help in three important ways: it pays for medical costs for emergency or ongoing care, pays for lost wages while the person is recovering, and protects the employer from claims. When it’s required by state law, not having coverage can leave you open to serious fines from state regulators and legal action from your workers.
The boss also has other duties, such as telling workers what their legal rights are. This is done by putting up health and safety signs at work. Such as the name of the insurance company and how to report an accident. If a worker gets hurt on the job, the boss generally has to give them a claim form within 24 hours of finding out about it. Find out more about cases for workers’ comp.
Benefits of Workers’ Compensation
Salary Replacement
Most of the time, someone who applies for workers’ compensation will get some of their lost pay back. But it won’t be as much as their full pay. Most policies cover about two-thirds of the gross pay of the recipient. Even though the payout is usually not taxed at the federal or state level. People who get money from Social Security Disability or Supplemental Security Income may have to pay taxes on that money, though.
Medical Bills
Workers’ compensation insurance also covers the cost of medical care for a worker who gets sick or hurt on the job. This could mean going to the hospital, having surgery, or taking medicine. If you get sick or hurt at work and it’s so bad that you need more than one treatment. Workers’ compensation will pay for that care. It will also cover accidents that come from doing the same thing over and over again. It’s important to know that most workers’ compensation plans will only pay for medical costs related to injuries that happened at work. For example, a building worker could get paid for injuries they got when they fell from scaffolding, but not for injuries they got on the way to work.
Survivor Benefits
If your employee dies because of something that happened at work, workers’ compensation can help pay for their funeral and give widow benefits to their family.
Disability Insurance
Disability insurance is different from workers’ compensation in many ways. In this case, an employee’s illness or injury that keeps them out of work doesn’t have to happen at work. Depending on the claim, the benefits may be paid for a few days, weeks or even for life. Disability insurance is generally split into two types:
Short-term disability – Benefits for short-term unemployment last from three to six months. Many employers give this coverage as part of a group insurance plan. The premiums can be paid by either the employer or the employees.
Long-term disability – Long-term disability gives disability benefits for more than one year and is for disabilities that last longer or are permanent. Most people buy this from an insurance company on their own. But some employers give it as an option that the employee can pay for through payroll deductions.
Disability insurance is generally not required by law like workers’compensation. Many workers choose to add their own private plans to the disability insurance that their employers already pay. Depending on the person’s situation, these policies can work with government-funded social security disability as well. As an employer, you might offer disability benefits as a way to make your employees happier and keep them on your payroll. This is because with disability insurance, employees know that if something comes up in the future that makes it hard for them to work, they won’t be left on their own with no options.
Benefits of Disability Insurance
Flexibility
Most of the time, employers can choose a plan that works for both them and their workers. For example, an employer might choose a “guaranteed issue” plan. Which lets workers buy coverage no matter what their health is like right now. Disability insurance also comes with payment flexibility. The company, the employee, or a combination of the two can pay the premiums, either before or after taxes.
Lower tax deductible premiums
Most of the time, group prices are less than individual rates. As a business tax deduction, you can use company-paid insurance that was paid before taxes.
How They Both Help Employer’s and Employees
Workers’ compensation helps workers with more than just medical care and lost wages. It can also protect employers from having to pay for this kind of care out of their own pockets and keep them from getting sued at the same time.
When an employee accepts a workers’ compensation settlement. They give up the right to sue their company for an accident that is covered by the settlement. This keeps the company from having to pay for expensive lawsuits and lets employees get the help they need right away. Since a workers’ compensation claim can be processed much faster than a lawsuit. Even when it’s not required, many employers give disability coverage because it can be a cost-effective way to keep their employees from having to pay a lot of money because of an accident or illness.
Another thing to think about is that the benefits from workers’ compensation may not be enough for some people who make more money. In many places, workers’ compensation insurance can only replace a certain amount of lost income. So some employers and employees buy disability insurance to make sure they are financially safe.
When You Need Each Policy
Depending on the workers’ comp rules in your state, you may need workers’ comp coverage as soon as you hire your first employee. But some states set the bar a little higher. Some states require this coverage for independent contractors who work in jobs that are more dangerous, like construction. For example, California requires employers with one or more workers to provide this service to any regular worker in the state. Even if they work alone, roofers must have their own insurance. Businesses with five or more staff in Missouri are required to have workers’ comp. Independent workers, one-person businesses, and owner partnerships don’t have to pay.
Employers are required to take part in state disability insurance plans in California, Hawaii, New Jersey, New York, Rhode Island, and Puerto Rico. Most states don’t require sole proprietors and contractors with no staff to get workers’ compensation insurance. But some states do for more dangerous jobs. No matter what you do for a living, this coverage may be needed to apply for some contracts. Some companies require their contractors to have their own workers’ compensation insurance. Because it lowers the company’s liability if a contractor gets hurt on the job. Many workers buy this insurance because it protects their money. If you are a sole proprietor or an independent contractor, your normal health insurance probably won’t cover you if you get sick or hurt at work. If you can’t work because of an accident, you can also recoup some of your lost pay through workers’ comp.
How EZ Can Help
If you are in need of disability insurance for your employees or need commercial insurance to safeguard your business, EZ is available to provide assistance. Our agents collaborate with leading insurance firms around the country. To ensure the identification of optimal insurance coverage for both your business and its employees. Indeed, it is possible to get substantial cost savings amounting to hundreds of dollars annually by collaborating with your financial plan to choose the most optimal insurance coverage. If you require any further clarification, please do not hesitate to contact us at 877-670-3531 for assistance with group health insurance. Or at 877-670-3538 for inquiries on business insurance.
Risk 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.
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.
Mistakes
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.
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.
A 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.
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.
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.
You’ve finally made it, you are your own boss and you run your business out of your home. You’re not alone. There are currently more than 20 million people in the country who work from home. Of those, almost 70% are running their own home-based business. The question is, is your home business properly insured or are you one of the many who are underinsured because you assume your homeowner’s insurance will cover your business? Below we’ll go over what business insurance policies you may need and why.
Homeowners Insurance Is Not Enough
While you were starting your company, you know doubt gave a lot of thought to many different aspects. What kind of business, what supplies you need, how shipping works etc. We’ve got one more to add to your long list of worries. If you think that your homeowners policy you have is enough to cover your business against damages and liability, you’re more than likely wrong. The typical homeowner’s insurance policy will only pay out for up to $2,500 in damages inside the home. And only about $100,000 for liability. In some cases it won’t even cover anything for claims related to a business. Additionally, some parts of your homeowner’s insurance can be actually void if you’re operating a business out of your home without other proper coverage.
Policies You Need
Now that you know your home business needs specialized policies, you will need to give some thought to the kind of insurance coverage that your specific business needs. First ask yourself a few questions:
What is my business property’s value?
Do I have employees?
Do I use a vehicle for my business?
What type of risks are associated with my business?
Do customers come into my home?
Do I digitally store sensitive information?
Once you’ve answered those questions it’s time to think about the policies that will work best for your business. Since Business insurance for a home-based business typically consists of a variety of different policies. You’ll want to carefully consider whether or not you will need more than one of the following types of protection:
Commercial Property Insurance
This policy will provide protection for all of the physical property associated with your company from damages and accidents. Such as fire, theft, or vandalism. If the value of the equipment in your home office is more than what your homeowners insurance policy will cover, or if you keep more than $10,000 worth of inventory in your home, you may need this insurance. Even if you don’t use the expensive equipment on your own property, such as landscaping equipment or handyman tools, if you store the equipment and use it elsewhere you will also need this policy. If you don’t keep any high-value business property at your home, or if your homeowners policy will cover damages, you may not need it. For instance if you are a freelancer and only use your personal laptop for work, then you probably do not need commercial property insurance.
Commercial liability covers claims made by third parties (customers, clients, general public). This type of business insurance will pay for any legal defense expenses if your company is sued for causing bodily injury, damage to property, or advertising injury. This includes anything from hiring an attorney to paying court-ordered settlements and any other legal costs that arise. This policy is needed for any home-business that interacts with customers or clients. You’ll want to have at least $500,000 of coverage to protect you against any potential claims that may be made against your business. Specifically if you work off-site with the general public or if you have customers or clients that come to your home for any reason.
Having a home-based business means you probably use your computer and the internet. Whether it be to store client information, payments, and even client’s products (such as graphic design or writing if you’re a freelancer). If you use any kind of technology you need to protect your business against the threats that come with that technology. These threats include hackers and data leaks and can damage your company beyond repair. With cyber liability your business will be covered for any losses that stem from the cyber attack. This includes investigating services, data recovery, and identity recovery. It can even cover damage to your customers or business partners such as legal fees, customer notifications, and settlement costs.
If part of your business provides intangible services, such as financial advice, providing personal training, doing someone’s taxes, or consulting, you will need this policy. This policy will cover your business if a customer sues you for damages that result from your advice or consulting. It also covers your business if you don’t meet a deadline, breach your contract, or are accused of negligence. In most cases a standard liability policy will not pay out for this form of damage as it’s not physical. So, it’s important to have if any part of your business involves giving professional advice in any way.
If you have any employees, workers’ compensation should be something you look into. It covers the lost wages, medical costs, and death benefits in the event that your employee is injured or becomes sick or passes away from a work related incident. Depending on the state you live in, you might legally have to have this policy. Some states require any business with at least one employee (besides yourself) to have it while others only require it if you have a certain number of employees. To find out more about the workers’ compensation laws in your state check out our workers’ compensation state by state guides.
Commercial auto insurance is just like personal auto insurance except it’s specifically meant to cover vehicles used for business purposes. It covers damages and medical costs that come from unexpected car accidents as long as the vehicle belongs to a business or was operating for work. This could be a truck and trailer for landscaping, a van you use to haul goods. Or even your personal vehicle if you meet with clients or deliver things to your clients personally. Your personal auto insurance will only provide limited coverage. And may not even cover your vehicle at all if it were being used for business purposes. This could leave you with massive debts that could be avoided with the proper insurance.
Health Insurance
We know, health insurance doesn’t sound like business insurance. However, being self-employed means, you don’t get benefits like a group health insurance plan through an employer. Because YOU’RE your employer. This is commonly overlooked and health insurance for yourself is just as important as any other business insurance. Because protecting yourself protects your business. You’ll want to look into getting yourself an individual policy. Or a family policy if you have dependents or a spouse. This makes sure you stay healthy and never have to dip into the money your business relies on to pay for expensive medical bills. Because you are your business, without you, everything comes to a halt.
Add-Ons and Packages
That seems like a lot of insurance, especially if you have a generally small business at the moment. There are easier ways to cover your small business if you don’t actually need the full extent of the coverages listed above. There are add-ons and packages specifically meant to give your smaller business property and liability insurance but on a more reasonable scale. These options are:
Endorsements – As we noted above, your homeowners policy might cover some damages but not all. If your home-based business generates less than $5,000 a year you might be able to add a business endorsement to your standard homeowners policy. This endorsement will increase the amount of your standard policy. As well as ensure none of your homeowners policy is void due to having a home-based business.
In-home business policy – These policies are essentially business owner’s policies (BOP), a combination of property and liability coverage, but on a smaller scale. These packages will allow you to bundle smaller business property insurance and liability policies without the cost for coverage that a standard BOP would offer. Typically, the packages will include up to $10,000 in property coverage. And allow you to add anywhere from $300,000 to $1million in liability coverage. This bundle is much more affordable than buying standalone commercial property and commercial liability coverage.
Don’t Stress With EZ
All this information may be overwhelming and a lot to process, especially considering how much you already have going on as a business owner. EZ.Insure is here to assist you, whether you are confused, need help enrolling, or in need of some guidance. We are able to put you in touch with a representative who will answer any questions that you might have. You will have access to one highly trained agent. Who will direct you in the direction of the policy that is best suited for your work from home business.
To discuss your commercial insurance needs with one of our representatives over the phone, please dial 877-670-3538. If you are interested in health insurance that we discussed, you can reach us at 877-670-3557. You can also get a free instant quote by entering your zip code in the box below. You will never be harassed by an endless stream of sales calls, and there will never be any fees associated with using any of our services. Let us do the heavy lifting so you can focus on building your business.
If 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.
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.
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.
Workers’ 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.
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
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.
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.
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. 
Dispute The Claim