Directors and Officers (D & O) Liability Update
Every business, no matter what the size, has a D & O exposure. Some people may mistakenly think that D & O risks are just for large firms, but actual court cases tell a different story. D & O claims come about because of decisions made by the firm’s officers and employees. Claims can come from employees, competitors, investors, and the government. Most of these kinds of claims are not covered under a standard commercial insurance policy.
Here are some interesting facts brought to you by the Insurance Information Institute:
If you misrepresent your company’s services, financials or other information, third parties may sue you for your actions. This can include services you say you provide on your webpage or financial information you provide to a lender.
Breach of Duty
Your firm’s officers and employees are required to carry out their duties with a standard of honesty and professionalism. If these legal duties are breached, you are subject to litigation by the injured party.
Your employees can sue the business for a variety of employment issues that can be covered under a D & O or employment practices liability policy.
Unbelievably many small businesses do not have the right commercial insurance. Having the right business insurance does not have to cost you any more money. The key is having an agent who understands your risks and is willing to help you design a business insurance plan that meets your needs.
Strive Insurance Group, Inc. is a full-service independent insurance agency that has been serving the insurance needs of the Dallas area since 1984. In addition to having a presence in the Dallas and North Texas area, we have also expanded to Austin and Central Texas with agent representation and the same professional service.
Common Mistakes Made When Purchasing Business Insurance
Over the years, we have seen well-intentioned insurance and risk products buyers make decisions that, while they may appear to help the organization, actually hurt it in the end. Here is a list of top mistakes that uninformed insurance buyers often make. We provide it to you in the hope that you can learn from the errors of others.
Top mistakes made by uninformed insurance buyers:
“Bidding-Out My Insurance Is the Best Way to Get the Best Program.”
False. Most insurance buyers have the false belief that getting three bids from three different agents is the best way to make sure they are getting the best “deal.” This is like asking a builder to provide a bid without seeing the building plans. When talking to your agent about your insurance issues, give the agent the full set of “plans,” including losses and premiums, financial data, and policies. Utilizing the services of one agent whom you can trust will lead to reducing short term and long-term costs. Comparing multiple factors, including terms, conditions, and premiums is crucial, as even the best-priced policy can fall short in areas.
“Two Agents Are Better Than One.”
False. Your agent can provide valuable services including educating you about what coverage you need and may not need. Your agent can search the market for the best possible combination of coverage, price, and service. Having two agents can create gaps or coverage issues. It is best to allow one agent to understand your business thoroughly and then design a business insurance program specifically for you.
“I Don’t Need to Have a Relationship With My Agent.”
False. Many buyers have a false belief that the agent’s only function is to place coverage and administer insurance. Your broker/agent should be offering much more than that. Your broker should be a trusted adviser who helps you identify risk factors, and develops solutions that help you to manage these issues.
“My Policy Covers All Losses.”
False. Your business insurance policy is intended to cover unexpected losses and accidents subject to the policy terms. There are limitations and exclusions in every policy.
“I Don’t Need to Consider Different Kinds of Coverage.”
Every business should consider the following kinds of business insurance products.
As an Independent Insurance Agency we represent many insurance companies to fit your businesses dynamic needs. Whether you're a new business or a small business, we can help. Being an Independent Agent means we are not only your agent, but we are your insurance broker as well. We understand every business and industry is unique, so we will work with you to find the best business insurance coverage at the lowest rate. Contact us today for a free quote.
A Professional Liability Update
Architects and engineers have unique exposures. If they don’t perform to a set of standards they are at risk of being sued and have the possibility of loss of reputation. This is where Architects and Engineers (A&E) errors and omission insurance can help.
A&E Insurance covers liability for alleged or actual damages that result from the performance of professional services. All design professionals including residential and commercial architects, design/build architects, engineers, landscape designers, and specialty construction consultants, should consider professional liability insurance.
Here are a few actual claims
An architect firm was hired to design an HVAC system in a school. The design was discovered to have a flaw that caused exhaust to be brought back into the building. The resulting damages and legal fees totaled over $1,500,000.
An A&E firm designed a 55-unit apartment complex. Three months after completion there was water damage to 25 units totaling $90,000. It was determined the A&E firm’s window frame design was incorrect and the firm was held responsible for all damages. The A&E firm incurred over $110,000 of expenses in replacing windows and related damage.
There are things A&E firms can do to minimize risks including: