Monthly Archives: December 2017

Types of Insurance Policies Every Business Owner Should Consider

Protecting business investment with insurance is a critical part of every sensible business owner’s business plan. Insurance protects businesses from unexpected financial risks due to natural disasters, accidents, liabilities and losses, which may run in to thousands of Euros.

Here are some insurance policies every business owner should consider to protect his investment as well as to ensure smooth running of his business.

Liability insurance: Business liability insurance covers the compensations and legal hassles resulted from the accidents, injuries, damage and loss caused by the business to third parties. There are three major types of liability insurance:

• Public liability insurance: Public liability insurance protects your business against financial risk of being found liable for death, injury, loss or damage of property caused to the third party due to your negligence. For example, if a customer slips and falls due to wet floor at your business premises and gets injured, he may sue you and claim for compensation. Public liability insurance helps you during this kind of situations by taking care of legal and medical costs.

• Product liability insurance: If your business involves in manufacturing, selling, or supplying goods, you should consider product liability insurance. It protects your business against financial loss as result of defective product that causes injury or bodily harm to the customer.

• Employers’ liability insurance: As a business owner, you are responsible for the health and safety of your employees while they are at work. An employee being injured while on the job, can file a compensation claiming that he should be given medical help and wage replacement while in recovery. This insurance protects you from the liabilities arising from disease, fatality, or injury to employees resulting from workplace conditions or practices.

Professional indemnity insurance: Professional indemnity insurance is a special type of liability coverage for professionals like accountants, architects, engineers, lawyers, insurance brokers and financial advisers. In case of any faulty advice/service rendered by these professionals that causes damage to the client, the professionals are legally liable to pay compensation, if the client sues them. Having this particular policy, can help you face these legalities as well as the monetary claims. For example, a patient may sue a physician for faulty diagnosis or improper treatment.

Business assets insurance: Business assets insurance covers the business assets such as buildings, premises, equipment, vehicles, stocks, and contents against losses arising from theft, fire, flood, natural disasters or other damages. It provides financial assistance to rebuild or repair business property so that operations continue with as little disruption as possible.

Business interruption insurance: Your business operations may be interrupted due to sudden damage caused by natural disasters or any other accidents. As it takes time to restore your business operations and generate profits, having business interruption insurance will offer cover for the loss of income, continuing fixed costs and other expenses associated with closure of your business.

Personal insurance: As a business owner, you should take a personal insurance policy as you are the key person in the business. Personal insurance policy covers you against the risk of death, injury, accident or illness. It provides income replacement, creates liquidity to pay-off debts and estate taxes on behalf of you.

Having known the different types of insurance policies and their benefits, you can either opt for selected policies or a comprehensive business insurance cover, which is customized as per your business needs. Select an appropriate insurance coverage and protect your business.

Important Coverage Features of Lawyers’ Malpractice Insurance

arious bases for malpractice actions against attorneys are available including: (1) negligence or legal malpractice, (2) breach of fiduciary duty, (3) violations of state or federal statutes, (4) common law fraud, or (5) breach of contract. Both suits by clients and suits by non-clients may be permissible.

Lawyers’ Malpractice Insurance policies (also known as lawyers’ professional liability policies) are not all created equal. There is no standard policy form for legal malpractice insurance. Therefore, important policy provisions can vary substantially from one insurance company to another. When comparing the policies offered by different insurers, you should pay special attention to the following policy provisions:

• Electronic Media Coverage

Most law firms use electronic media to conduct business. This coverage can respond for misdirection of email or other media such as intranet, extranet or internet connection, or loss of client information transmitted via electronic media, or unintentional spread of a computer virus into or enabling a denial of service attack on a third party computer or network, or unintentional unauthorized access, or personal injury arising from the use of electronic media such as a web site or social media.

• First Party Cyber Liability Coverage

Some insurers will reimburse the insured for up to $25,000 for the cost of hiring a third party to mitigate the potential of legal liability claims arising from any security breach that results in the loss or theft of confidential client information.

• Deceptive Trade Practices Acts (DTPA) Coverage

In some jurisdictions DTPA coverage is important. Lawyers may still be liable for certain actions under DTPA type statutes. Misrepresentations by an attorney are still actionable under some DTPA statutes. Note some legal malpractice policies do not cover all DTPA damages such as the multiplied portion of treble damages.

• Punitive and Exemplary Damages Coverage

Many legal malpractice policies specifically exclude punitive and exemplary damages. It would be preferable to have a policy that would provide coverage where permitted by law.

• Innocent Partner Protection

Criminal, dishonest or fraudulent acts by a lawyer are excluded from coverage by all policies. Via an exception to the exclusion any other innocent lawyer insured under the policy that neither participated nor acquiesced in such acts may benefit from coverage.

• Deductibles – Per Claim v. Aggregate and First Dollar Defense or Loss Only

With a “per claim” deductible, each claim against you during a policy year subjects you to a new deductible. Some policies have “aggregate” deductibles so an insured would not be charged more than one deductible per policy year. Another feature available is first dollar defense within the deductible.

• Alternative Dispute Resolution (ADR)

Some insurers will waive a percent of the deductible (e.g., 50%) or may even waive the entire deductible if ADR is used to settle a claim.

• Hammer Clause

A “hammer clause” provides if the insurance company wants to settle a claim but the insured does not consent to the settlement, then the policy will only pay the amount for which the insurance company could have settled the claim. In effect, coverage for the claim is reduced to the settlement demand. It would be preferable to have more favorable consent to settle provision.

• Loss of Earnings

Time spent defending a malpractice claim means a loss of revenue to you. Some legal malpractice policies may provide you with expense reimbursement/trial attendance coverage in the $500-$750 range for each day you are out of the office for trial, mediation, arbitration or your own deposition in defending a claim under the policy.

• Disciplinary Proceedings

Some legal malpractice policies will allow coverage for up to $25,000 or $50,000 for defense costs incurred to respond to disciplinary proceedings. This may be an additional limit and not subject to the deductible.

• Other Coverage Options

Some other coverage options available may include:

1. Predecessor firm coverage

2. Career coverage

3. Lateral hire coverage

4. Extended reporting periods (ERPs) for non-practicing, retirement or disability

The Benefits of Hiring a Personal Injury Lawyer

Have you recently been injured in a car accident? Have you been the victim of another person’s malicious actions? If so, you will need the invaluable assistance of a personal injury lawyer. There are numerous benefits to hiring an attorney who specializes in legal issues of this type.

A personal injury lawyer has been highly trained. Many people have been misled to believe all an attorney really does is offer confusing information and send you a bill. But that’s untrue.

Did you know even though you may have suffered physically, emotionally or financially due to your accident, you may not even be entitled to compensation? As a crackdown on insurance fraud, many states won’t ordain compensation laws if there is even the slightest indication you may have been at fault or instigated the issue.

Another area a personal injury lawyer will be knowledgeable about is what claims you are entitled to. Not having been trained, most likely, in legal matters, you may not even realize there are some claims that fall into this category.

Effective communication with insurance companies is another benefit. Unfortunately, some insurance companies will willingly try to misrepresent legal issues. They may try to convince you that you aren’t entitled to compensation to which you may really be in order to avoid payment. Plus, an attorney will be able to get you exactly what you’re entitled to plus more if state laws allow for additional compensation. Working on your own with an insurance adjuster may limit your ability to receive all you should. You benefit by a personal injury lawyer knowing if state laws entitle you to more compensation for your injuries than is apparent.

These attorneys will readily know what value your case has. Along with their knowledge, their experience handling many cases has given them the inside track to what each assault is worth monetarily. Their experience also allows them to know what facts are crucial to get you the highest compensation.

Court experience is another invaluable asset. Most insurance companies know that if you represent your own claim, there’s a good chance you may not ever go to court. This is great for them because a court decision may make them pay more than they want to. Remember, an attorney will be working to represent you and help you receive the highest amount of compensation possible.