Tag: Commercial Crime Insurance

Accounting Firms

Businesses in the accounting industry have unique risks that only they face. For this reason, you need to partner with an insurance agent who is comfortable working with businesses in this industry. Slips, trips, and falls do not cause a large problem to this industry because the employees do not move around a lot and there is limited interaction with the public.  Repetitive injury like carpal tunnel and back problems can arise from long periods of time sitting at a desk.

Accounting

Bigger risk arise from the fact that you are interacting with individuals and businesses private sensitive financial documents. These risks are typically low in frequency, but can most definitely be severe if the wrong information falls into the wrong hands. Additional risks arise from the fact that accounting businesses are providing professional advice and services. Because of the enormous amount of risk in all of these areas of the business, it is important to get an all encompassing insurance package. Consulting with an experienced independent insurance agent is always the best way to know for sure you are getting the most comprehensive coverage at rock bottom prices.  Here are TKTK Insurance policies all accounting services firms should strongly consider.

 

Coverages Recommended for Accounting Professionals:

✓ General Liability Insurance
✓ Professional Liability Insurance (E&O)
✓ Hired and Non-Owned Auto
✓ Workers Compensation Insurance
✓ Employee Dishonesty Bond

General Liability Insurance

In most states, this coverage is required by law to be in business. For this reason, most business owners start with this coverage and workers compensation insurance.  The risk of a General Liability claim is minimal since most operations are not conducted on the businesses property and most of the client contact is electronic or by mail. When clients do visit the office, they should be kept separate from the main office area in an attempt to prevent them from hearing conversations regarding other clients’ confidential information. Off-premises exposures arise when employees are engaged in sales visits, training sessions, and physical audits at the customer’s premises. There should be policies and training as to off-site conduct by employees.

Professional Liability Coverage

 

The risk factors accounting services businesses face in relation to Professional Liability Coverage include the services the business provides, the firm’s credentials, the employees experience as well as the ratio of professional to clerical employees. Failure to conduct thorough background checks to verify credentials and education can pose a significant risk. In some circumstances it can cause a claim not to be covered. The risk of E&O claims increase if clerical workers are allowed to do tasks that only the professionals should handle and if error checking procedures are inadequate. Most carriers have plans in place for you to follow if you do not already have such plans in place.

Hired and Non-Owned Auto Insurance

Risks associated with automobiles are generally limited to hired and non-owned auto insurance. This is because most accounting businesses do not have a need to buy vehicles specifically for business purposes. However, many employees probably do use their personal vehicles for business purposes to visit clients facilities. In these situations, there should be clear procedures in place regarding personal use by employees and their family members. The age, training, experience, and records of each driver, as well as age, condition, and maintenance of the vehicles, are all important items to consider if your business needs a commercial auto policy.

Workers Compensation Coverage

Workers compensation is a form of liability insurance required for employers in 48 out of 50 states. This type of insurance compensates injured workers for lost wages and medical costs while giving business owners the peace of mind to know they will not be sued for accidents that occur as part of normal operating procedures. Accounting firms don’t typically have a hard time finding affordable workers compensation coverage because of the light physical duty of the industry.  Repetitive injuries like carpal tunnel are the most severe type of risk employees face.  Offering adequate chairs and even desk that allow employees to stand for part of the day are a worthy investment.

Employee Dishonesty Bond

There are two main types of criminal insurance related to employee dishonesty. The two types of coverage that a business can purchase to prevent losses related to the criminal activity committed by your employees are Commercial Crime Insurance and a Fidelity Bond.  A Fidelity Bond is a form of insurance that covers losses resulting from employee dishonesty. This can help cover any lost money or securities that result from an employee’s dishonest acts. A Fidelity Bond is meant to act as a security against potential fraudulent employees or disgruntled employees.  A Commercial Crime Insurance Policy is typically designed to meet the needs of organizations other than financial institutions (such as banks). A commercial crime policy typically provides several different types of crime coverage like: employee dishonesty, forgery, computer fraud, funds transfer fraud, kidnap, etc. Both of these policies will cover losses due to the actions of your employees. If you are not sure which type is best for you it is always best to consult with an experienced independent insurance agent to make sure you are properly covered.

 

Class Codes ASSOCIATED WITH THE ACCOUNTING INDUSTRY

Business Liability Category: Service Businesses

SIC Business Insurance Codes:

  • 8721: Accounting, Auditing and Bookkeeping Services
  • 7291: Tax Return Preparation Services

NAICS Liability Classifications:

  • 541211: Offices of Certified Public Accountants
  • 541213: Tax Preparation Services
  • 541214: Payroll Services
  • 541219: Other Accounting Services

Business ISO General Liability:

  • 41677: Accounting/Consulting

Common Workers Compensation Class Codes:

  • 8803: Accountant, Auditor; traveling
  • 8810: Clerical; office only

5 Types of Insurance every Daycare Center needs.

Finding good daycare is an enormous concern for families with children under the age of 5.  Compared to the previous generation there is an extremely large amount of families who now have both parents in the work force.  ‘According to the group Child Care Aware, about 11 million children under age 5 spend an average of 35 hours a week in child care’.  Because of this fact, the day care industry has exploded. With this explosion has come many new businesses needing help with their liability needs.  There are many things that can put a day care center at risk.  Here is a list of the 5 most common coverages a day care center should secure.

 

✓ General Liability Insurance
✓ Hired and Non-Owned Auto
✓ Workers Compensation Insurance
✓ Business Income with Extra Expense
✓ Commercial Crime / Employee Dishonesty

 

General Liability Insurance

GL Insurance is required by law in most states. Many business owners unfortunately think this coverage is all encompassing and it is not.  It is the baseline for coverage for your daycare business.  It will cover your businesses liability for normal bodily injuries from things like slips and falls.  It can also cover property damage that occurs to third parties on your property.

 

Hired and Non-Owned Auto Coverage

If your business owns and uses vehicles as a part of your business you will need commercial auto coverage, but if you have employees who use their personal vehicle or rented cars you will need to secure Hired and Non-Owned Auto Coverage.  This will cover the liability your business faces as a result of any accidents you or your employees are in while on company time.

 

Workers’ Compensation Insurance

Workers Comp is another coverage that is required by law in nearly every state in the country.  It is similar to General Liability except it deals with bodily injuries to your employees. When an employee is injured on the because of normal business practices work comp coverage will cover a portion of their salary and any medical costs as a result of the injury.  Each state has their own laws governing how to administer workers’ compensation coverage.  For this reason, it is important for you and a key employee to know the process to properly help your injured employee get the care they need and get back on the job quickly.  Your carrier can help you with this both before you have an injured employee and when a claim occurs.

 

Business Income with Extra Expense Coverage

Business Income with Extra Expense Coverage is a type of commercial property insurance that covers the loss of income suffered when damage is caused to the property by a covered loss and it causes a slowdown or suspension of business operations. Coverage applies to loss suffered during the time required to repair or replace the damaged property and may extend to apply to loss suffered after completion of repairs for a specified number of days. Expense Coverage is an additional type of commercial property insurance that pays for additional costs in excess of normal operating expenses.  These are normally expenses that an organization incurs to continue operations while its property is being repaired or replaced because of damage from a covered loss.  Extra expense coverage can be purchased in addition to or instead of business income coverage, depending on the needs of the organization.

 

Commercial Crime / Employee Dishonesty

Commercial Crime Insurance is a type of insurance that is designed to help businesses deal with crimes committed by their employees. This type of coverage typically covers several different types of crimes, such as: employee dishonesty; forgery or alteration; computer fraud; funds transfer fraud; kidnap, ransom, extortion; and money orders and counterfeit money coverage.  Employee Dishonesty Insurance is an additional coverage for employee theft of money, securities, or property. This type of coverage is written with a per loss limit, a per employee limit, or a per position limit. This is important to speak with your agent about what types of activities your employees partake in.  They can help you determine what type and how much risk you actually face.

6 Types of Insurance every Home Healthcare Small-Business needs.

Home Health Care is one of the fastest growing industries in the country. With the baby boomers moving up in age, the need for these services is growing larger every year. The need for proper insurance in these businesses is also becoming more important. For a business owner, most of the clients in this industry are nearing the end of their life. Most are not in good health. Many get hurt or are sick frequently. Protecting your business from mistakes or court costs is crucial in this industry. Below are 6 types of coverage every Home Health Care Business should carry.

Home Health Care

  • General Liability
  • Professional Liability
  • Business Personal Property
  • Hired and Non-Owned Auto
  • Workers Compensation
  • Commercial Crime/Employee Dishonesty

 

General Liability

General Liability (GL) Insurance, in most cases, is the most important insurance coverage a home health care business can obtain. In most states it is required by law and it is usually the first line of insurance purchased by a business. It protects your business from most liability exposures other than automobile and professional liability. Other coverages are usually added to this depending on the business needs, but all businesses need General Liability. Unlike Workers Compensation Insurance this coverage protects your business from liability to third parties.

 

Professional Liability

Professional Liability Insurance is coverage for professional businesses that give expert advice or provide technical services for a fee. It is designed to help protect a business against any claims of negligence. Therefore, professional liability insurance helps business owners defend themselves from lawsuits and helps pay the damages awarded in a civil lawsuit. Professional liability insurance is commonly referred to as errors and omissions (E&O) or medical malpractice.

 

Business Personal Property

Business Personal Property Insurance is usually an addition to a Commercial Property Insurance Policy. It protects your business from damages to your buildings and property of your business. The personal property of your employees and the personal property of others you might be responsible for. In most policies it also provides additional coverages including: debris removal, pollutant cleanup, preservation of property, fire department service charges, increased cost of construction, electronic data, newly acquired or constructed property, off-premises property, valuable papers and records, outdoor property, and nonowned detached trailers

 

Hired and Non-Owned Auto

This type of auto insurance coverage is for when employees of a home health care business use their own vehicle or a rented vehicle to do company business. This can be as simple as an employee running to the grocery store to buy snacks for a meeting, an employee using a rented vehicle while away at a conference or using a rented truck to transport your equipment.

 

Workers Compensation

Workers’ compensation insurance differs from most other forms of business liability insurance. That is because it is specifically designed to cover your employees and not third parties. Workers Comp covers insurance claims by employees in the event they are injured on the job. The function of workers compensation insurance is to insure a business is not liable for most accidents that occur on the job and employees have comfort knowing their doctors bills and some lost wages will be covered if they are hurt on the job.

 

Commercial Crime/Employee Dishonesty

This type of insurance coverage is mainly for employee theft of money, securities, or property. Most policies include some or all of the following types of employee crimes: forgery or alteration, computer fraud, funds transfer fraud, kidnap, ransom, extortion, and counterfeit money. It is usually written with a per loss limit, a per employee limit, or a per position limit.

Seven Insurance Coverages Every Restaurant Should Carry

I am opening a restaurant, what Insurance do I really need? This is a question insurance agents get asked a lot. Not just from restaurant owners, but from all small business owners. The answer to this question is like many things in life; It depends. The answer to this question will be different if you are a Painter, a Dry Cleaner, or even an Artisan Contractor.

 

There are many variables that go in to running a restaurant and those variables bring on completely different risks.

First and foremost the restaurant owner needs to determine what class code their business will be in. To find this out you will need the help of an experienced insurance agent. It is very important to be open and honest with the agent about what your restaurant will and will not be doing. For example, if you are a bar that stays open until 2 AM you will be in a different class code than a diner that is open from 6 AM until 2 PM. The risks are different, so the businesses are classified different. Furthermore, if you are not honest with your agent about serving alcohol they may leave out Liquor Liability Coverage. If an incident occurs without coverage it may be a loss so large it forces you to close permanently.

So once a business is classified correctly there are seven main coverages every restaurant should carry. Some restaurants will need all of these coverages and more. Some restaurants will need only a few coverages. Again, that is where the help of an experienced commercial insurance agent is important. This list is a great starting point for protecting any restaurant.

 

  • General Liability
  • Liquor Liability
  • Commercial Property
  • Hired and Non-owned Auto
  • Commercial Crime
  • Workers’ Compensation
  • Umbrella Policy

 

General Liability

General Liability (GL) is often referred to as the first line of defense in any good business insurance policy. A GL policy protects a business against liability claims for bodily injury and property damage as a result of normal business operations. It also covers some types of advertising liability. This can be as simple as someone slipping and falling on the way to the bathroom to another business claiming you stole their advertising slogan. There are exclusions in every policy and not every carrier has the same exclusions. Reading your policy and consulting with your agent are important.

 

Liquor Liability

Liquor Liability is designed for businesses that sell or serve alcohol. If you do not plan on selling alcohol this is not necessary for your business. In many states, business are required by law to carry this coverage. Liquor liability covers liquor related instances including bodily injury, mental anguish, psychological damage, assault, intoxicated employees and property damage.

 

Commercial Property

Regardless of whether you own or rent the facility your restaurant is located, property insurance is an essential part of protecting your restaurant from disaster. Commercial Property Insurance covers losses and damages to a companies property including buildings and permanent fixtures, inventory, furniture, equipment, personal property, signage, fences, and even landscaping.

 

Hired and Non-Owned Auto

One risk that many restaurant owners forget about is when their employees are using their personal cars for business purposes. This is where Hired and Non-owned Auto Coverage is necessary.  Many restaurant owners think if they do not offer delivery services they do not need Commercial Auto Coverage. That is not always the case. Hired and Non-owned Auto Coverage kicks in when your employees use their own vehicle or a rented vehicle not owned by the the company. The employee could be using their vehicle for something as simple as going to get change at the bank. Regardless of how small the activity may seem, when the employee is using any vehicle to do business activity you are liable.

 

Commercial Crime

In today’s day and age the risk for credit and debit card fraud is very high at a Restaurant. You and your customers are putting a lot of faith in the people you hire to not steal their personal credit card numbers. For this reason it is necessary to carry Commercial Crime Insurance. This coverage provides coverage for criminal acts committed by you or your employees. These can include employee dishonesty, forgery, computer fraud , funds transfer fraud, kidnap, ransom, extortion and money laundering. Depending upon the policy it will pay to defend you at trial and some fines or judgments awarded by a court of law.

 

Workers’ Compensation

 Workers’ Compensation Insurance offers coverage similar to General Liability. Workers Comp is designed for your employees instead of third parties. Work Comp Coverage is frequently referred to as the “exclusive remedy”. This means employees give up some rights to sue for injuries occurring on the job in exchange for guaranteed benefits like lost wages and coverage of medical costs. Employers gain the piece of mind that they will not be sued for most accidents occurring on the job unless the business is intentionally negligent.

 

Umbrella Policy

An Umbrella Insurance Policy is a great way to provide an added layer of protection to your business. The coverage is a policy that goes over the top of other insurance policies for a rainy day. Basically, the Umbrella Policy will provided higher limits of coverage when a large claim occurs. Think about the size of a potential claim if your restaurant caught on fire while people were inside. This could easily lead to you reaching the limits for General Liability and Commercial Property Coverage. This type of situation could easily exceed a typical $1,000,000 occurrence limit for those underlying policies. This is when the Umbrella policy would kick to provide additional coverage over and beyond those limits.

 

In most cases these policies can be bundled together under a Business Owner’s Policy (BOP). Most insurance carriers like to offer policies in a bundle because it brings them more business and allows them to get better prices for the business owner. It also ensures business owner’s are completely covered with no gaps in their coverage. So when you go out looking for your restaurant’s insurance policy these are seven insurance policies to consider when protecting your restaurant.