Every business idea is made of a complex series of decisions. Even the most prepared business leaders, however, face unknown factors that can create damage to their company. Risks – from property damage to business reputation to employee health – are all potential parts of business. Being able to handle whatever comes your way is just part of the deal.
What are the most common areas of risk to consider and plan for in your business?
- Physical and building risks: Do you occupy an old building with an asbestos risk? Do you have fire extinguishers and evacuation maps posted? Ensuring the safety of your physical space is one of the most significant ways to prevent and address workspace risks.
- Hazardous material risk: Certain businesses have more risks than others in this regard – chemical plants or auto shops, for instance, will have an increased risk, but even companies who have employees who simply come into contact with cleaning supplies need to be mindful.
- Location risks: Is your office located in a place known for severe weather? If floods, earthquakes, blizzards, fires, tornadoes or hurricanes are a risk in your area, it’s important to have a plan to protect your physical space and employees in an emergency.
- Human risks: People are the foundation of any business, and they need to be protected. Slips, falls and other on the job accidents are important considerations – you not only need to make sure that there is maintenance to help prevent employee injury but also have the right insurance should accidents happen. Plus, businesses will need to consider the cost of lost employee productivity.
- Technological risks: One thing all modern businesses need to be wary of is how they’re using technology. Is your business using best practices to protect data and prevent fraud? What about training employees to avoid phishing emails? It’s important to always consider technology misuse as a potential business risk.
- Employment practices risk: Wrongful termination, negligent evaluation or refusal to employ or promote are some examples of events that can place a business at risk for employment practices litigation.
Commercial insurance helps you prepare for the unexpected and can help protect you against financial and legal risks should the worst happen. Responsible business leaders work to understand the potential risks they might face in their organization and know that the right insurance is crucial. If you need to talk to someone about getting the best insurance for your business, our team can ensure that you have the coverage that’s right for you. Get in touch today.Posted in Uncategorized | Leave a commentJuly 24, 2019
Risk managers might not be in charge of making the actual decisions regarding whether something should or shouldn’t be done at a business, but they are crucial in the decision-making process. Their role is to offer insight and advice that minimizes overall risk while maximizing overall value to the business and organization stakeholders.
A risk manager’s job is to evaluate risks, of course – but communication of these findings to board members, senior management and others is crucial. In fact, without effective and thorough communication, a risk manager’s role is worthless to a business. Without effective communication that helps stakeholders understand the output and consequences of certain actions, an organization will almost certainly undergo more harm than good. In fact, most business crises are not linked to a lack of information or understanding but a failure to effectively communicate risk.
What does effective risk communication look like?
- explaining the chance of a risk playing out a certain way and what the business impact will be in the scenario
- outlining the difference between risk (which is dependent on certain scenarios) and hazard (found within a specific area)
- helping to deal with fears and uncertainties around certain risk elements
- managing expectations around long-term and short-term risk impact
- improving the overall comprehension of risk-based terminology and concepts to ensure better understanding
- educating managers about risk management decisions impacting every level of business
- creating a culture of transparency that enables concerns to be addressed and questions answered
- growing risk-management credibility through training, continued education and consistent, relevant communication
- dealing with potentially conflicting interests of various stakeholders and all affected parties
Our business takes risks seriously. We can help you establish the risk management plan that’s right for you and take the appropriate steps to stay insured against potential business hazards. Get in touch with us today to find out more.Posted in Uncategorized | Leave a commentJuly 10, 2019
All companies need business insurance, but some businesses require an extra kind of liability insurance called directors and officers, or D&O, insurance. This coverage protects the personal assets of people serving as corporate directors and officers, as well as their spouses, in the event of being sued by employees, vendors, competitors, investors or customers for actual or alleged wrongdoing when managing an organization.
What does D&O insurance cover?
Director and officer insurance will usually cover legal fees, settlements or other costs and expenses. It’s the financial insurance for the standard indemnification clause that is part of many employment contracts. It holds officers – like those in the C-suite – harmless in their role as a company official.
Why would a company need D&O insurance?
Companies and their leadership teams can be sued for a number or reasons related to their corporate roles and responsibilities, including:
- Breach of financial responsibilities that resulted in losses or bankruptcy
- Falsification of company assets
- Misuse or waste of company funds
- Non-compliance with applicable workplace laws
- Intellectual property theft
What kinds of businesses need D&O insurance?
All companies – public, private and non-profit – could benefit from the assurance of D&O coverage. Companies of all sizes and industries can face litigation risks. Any company, including a nonprofit, that has a board of directors or advisory committee, should consider D&O insurance. Directors and officers from any kind of business posting any kind of profits can be sued over company management affairs, putting their personal assets at risk.
What are the benefits of D&O insurance policies?
- Businesses with D&O insurance have protections for their profits and assets against being lost in a lawsuit.
- D&O insurance could help companies look more appealing to investors, if they know they are protected.
- Organizations will be better able to recruit and retain quality directors who won’t feel that their personal assets are at risk.
Our business is helping your business stay compliant as well as protect your assets and your reputation. Get in touch with our insurance experts today to identify any gaps in your insurance coverage or assess your other business insurance needs.Posted in Uncategorized | Leave a commentJune 26, 2019
Businesses have a responsibility to take care of their employees. Not only is this a smart business practice to protect your bottom line and to protect your business reputation, it’s federally mandated. Most private sector employers and their workers in the United States must adhere to OSHA safety programs to protect employees.
The Occupational Safety and Health Administration Act details specific responsibilities of employers regarding ensuring a safe and healthy workspace for their teams, which includes, but is not limited to:
- Provide a workplace free from serious recognized hazards and comply with standards, rules and regulations issued under the OSHA Act.
- Examine workplace conditions to make sure they conform to applicable OSHA standards.
- Make sure employees have and use safe tools and equipment and properly maintain this equipment.
- Use color codes, posters, labels or signs to warn employees of potential hazards.
- Establish or update operating procedures and communicate them so that employees follow safety and health requirements.
- Provide safety training in a language and vocabulary workers can understand.
This federal law also gives employees the right to call their local OSHA office and make a complaint or lodge a concern regarding their place of employment. Because of the importance of worker safety, OSHA takes workplace violations against regulations seriously. Inspections that reveal non-compliance can mean fines or costly renovations for the business.
The official OSHA website notes, “OSHA encourages all employers to adopt a safety and health program. Safety and health programs, known by a variety of names, are universal interventions that can substantially reduce the number and severity of workplace injuries and alleviate the associated financial burdens on U.S. workplaces. Most successful safety and health programs are based on a common set of key elements. These include management leadership, worker participation, and a systematic approach to finding and fixing hazards.” All that to say – smart planning can protect your business.
Prevention and preparation are the key to avoiding costly and dangerous accidents or workplace problems. Our team can help you find solutions for your OSHA compliance needs. Give us a call today.Posted in Uncategorized | Leave a commentJune 12, 2019
When it comes to insurance plans, businesses and individuals both tend to consider plans with the lowest quotes and costs. The truth is, there are a lot of things that can affect your insurance rates, and the cheapest plans are rarely the best. Here’s what to know:
- The kind of insurance plan and coverage: General liability is usually the least expensive coverage, and it covers damage to property or injury to people as a result of your business. Professional liability covers damages that result from your business itself, usually financial losses.
- Size of your building or office: Property insurance is usually part of a business insurance plan. The size of your building or office space will affect your insurance prices in order to ensure adequate coverage for disasters, weather or accidents.
- Risk-level of your industry: Sometimes coverage costs will vary based on your industry. People who own a construction company may pay more for their premiums than those who own an accounting firm or a restaurant franchise.
- Location of your space: Location matters. Not only will the right location bring more customers to your door and into your space, it will affect your insurance costs. Is your commercial space in a flood zone or an area more prone to earthquakes? Just like homeowners’ insurance, business property and commercial insurance may vary based on location.
- Revenue: How much money does your business bring in? What is your business worth? The more money a business has or makes means the more they might lose in the event of a lawsuit. Business insurance can help prevent or offset the cost of legal action. To utilize this protection, your premium payment will be in proportion to the amount of coverage you need based on the business’s assets and value.
- Number of employees: Workers’ compensation insurance is directly related to the number of employees it covers. A larger workforce means more coverage is needed.
- Claim history: Just like other insurance policies, your coverage costs can go up if you’ve filed claims in the past. Businesses who have filed previous claims may be subject to higher premiums in order to stay protected.
When it comes to your business, don’t take chances. Buying into an insurance plan because it costs the least means you might not have the right coverage or enough coverage for your business. Call us today so we can quote you on the right policy protections at a fair price.Posted in Uncategorized | Leave a comment← Older posts