 Construction Defect is a phrase contractors do not like to hear.
Construction defect claims can be defined as damages resulting form faulty work or workmanship. Court decisions and state regulations make managing the risk of construction defects more than just prevention. Construction Defect Insurance The CGL policy underwent a major revision in 1986. The changes sought to clarify and to simplify the "property damage" exclusions. The changes were not, however, intended to change the exclusions meaning or effect. Not every policy is created equal. Make sure your contractors insurance does not have defect exclusions. “Now, an ‘occurrence’ is typically defined under a CGL as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions.” In other words, a threshold coverage question is whether the Homeowners’ lawsuit alleges property damage caused by an occurrence.” Property Casualty360.com Legal battles will continue over whether construction defect claims are covered by commercial general liability policies. This will cause increases in the cost of contractors insurance. Construction Defect Risk Management
 Business Insurance Trends The business insurance world is changing at a fast pace. Technology is continually evolving and businesses must change or die. New technology also brings change in claims and litigation. Often lawsuits filed today are indicators of business liability claims tomorrow. Business Insurance Business or commercial insurance coverage is available for almost every conceivable risk your business might face. The cost and amount of coverage of policies vary among insurers. Also the type of business you are in also impacts cost and coverage. You should discuss your specific business risks and the types of insurance available for your business with us. Future Business Insurance Risks Intellectual Property This is one of the fastest growing areas of litigation. The average defense cost in 2013 was over $500,000. With more information being disrupted over the internet, claims are sure to increase. Intellectual property insurance coverage protects companies for copyright, trademark or patent infringement, and claims arising out of the company's operation. Products Liability Insurance Products liability insurance covers a wide range of potential claims related to the sale and distribution of products. These include any injuries or losses due to design defects, manufacturing defects, inadequate instructions or warnings, improper packaging or labeling, breach of warranty, and other similar issues. In addition to covering the associated legal costs, it can also provide coverage for damages awarded by a court in such cases. This type of insurance is critical for businesses that produce, distribute, or sell products as it helps protect them from financial losses if they are held liable for an injury caused by their product. Healthcare Professional Liability As we move well into healthcare reform, we are seeing increased litigation focused on medical providers of all kinds. In 2012, litigation against OB/GYN doctors accounted for over $3.5 billion in claims. Many states have enhanced medical malpractice laws designed to speed up and compensate injured patients. Cyber attacks Recent news that Russian cyber thieves stole billions of passwords should create heightened awareness about the risks and need for cyber insurance. The problem, Munich Re explains, stems from the fact that “most traditional property and liability policies provide no cover for cyber risks” although there still may be a duty to defend until such time as coverage is determined. Social Media Social media is becoming popular with many businesses, and this increases the liability risks. The combination of personal use and business use combined with privacy laws increases the risk to business of being sued by employees and other third parties. There is definite increased risk of defamation, libel and slander for firms who don’t outsource the service. Directors & Officers Liability Most business owners don’t believe they can or will be sued despite statistics that show otherwise. The latest number by Chubb Insurance Company shows that about 20% of firms have been sued for directors and officers negligence. Claims can be made by shareholders, regulators, family members, customers, vendors and competitors.  What is liability insurance? It is the type of insurance that provides coverage for the purchaser if he or she is sued for losses or damages to another person. However, note that payment is NOT made to the insured person but to a third party that suffers loss or injury based on the insured person’s action or inaction. Furthermore, liability insurance does NOT cover contractual negligence on the part of the insured. In other words, if you do NOT meet your contractual obligations, you cannot expect your insurer to come to your aid. Lastly, an insured is NOT covered by this policy if it is proven that damages were caused deliberately. Type Of Liability Insurance Policies 1. Business Liability Every business runs the risk of causing losses or damages to a third party. This coverage protects your business from liability claims resulting from your premises and operations, your products and services, personal or advertising injury (libel suits are covered here), medical expenses or fire damage. 2. Employer Practices Liability If your business has employees then there is the need to have this type of liability coverage to protect your business. This policy covers your business for various claims by employees (past and current). It includes claims of wrongful termination, sexual harassment, discrimination, negligent evaluation, failure to employ or promote, breach of employment contract, wrongful discipline, mismanagement of employee benefit plans, deprivation of career opportunity and infliction of emotional distress. 3. Professional Liability This is also known as E&O (Errors and Omissions) insurance. If you are a professional who may be sued for negligence, errors or omissions in the discharge of your professional duties, then you need this policy type. This will cover you if your advice leads to financial loss to your client, a client is dissatisfied with your service and decides to sue for damages and other related issues. 4. Umbrella/Excess Liability This type of policy increases the amount of liability coverage for a policy holder. It is also called personal excess coverage. People buy it to ensure that lawyers do NOT go after their personal assets when the liability coverage amounts in their home and/or auto insurance policy is inadequate for compensation in a liability suit. There are other liability insurance policy types like general liability and cyber liability. Your auto insurance policy normally comes with liability components in the form of bodily injury liability, which takes care of people injured in an accident, and property damage liability, which pays for damages to someone else’s property by your vehicle. 5. Products Liability Insurance Products Liability Insurance is a type of insurance that provides protection for businesses when their products cause property damage, bodily injury, or death to customers. It helps cover the costs associated with defending and settling claims against your business due to any losses incurred because of a product you have made, sold, or distributed. This includes damages related to design defects in manufactured goods; improper labeling or packaging; inadequate warnings; and breach of warranty. Without this coverage, businesses would be completely exposed in such cases and face devastating financial losses and significant legal fees So Why Do You Need Liability Insurance? The answer is simple: We live in a litigious world. People are very quick to claim damages for any action or inaction that they believe impacts them negatively. You are liable if a dead branch falls off your tree and hits a guest on your property. You are liable if someone is bitten by your dog. The list goes on and on. And what happens if the liability amount of your regular policy is inadequate? Any smart lawyer can easily go after your assets in order to get full compensation for his or her client. This means that you need to get the right liability coverage (an umbrella insurance policy) if you have substantial assets and want to keep them safe. It is on record that 60% of employers are sued each year by their former employees. Add the fact that communities can easily sue a company for a product, service or activity that has “affected” their lives negatively. Liability insurance is a necessary part of any insurance policy.  With the beginning of a new year, it is important to review your home and auto insurance policies to ensure you are getting the most out of them. To begin this process, here are some questions you should ask when reviewing your policies; “What is and is not covered with my policies?” “Do I need to add any new family members or vehicles to my policies?” “What are my deductible amounts?” “Am I taking advantage of all available discounts?” “Is my coverage adequate enough to cover a loss should I have one?”
The following information will help guide you through some of these key questions for getting the most out of your home and auto insurance. 1)Review Your Policy- Make Sure You Are Aware of What Is and Is Not Covered It is essential to review your home and auto insurance policies to make sure you are aware of exactly what is and is not covered. Different policies cover different things, so it is best to read the entire policy to understand what is included. Depending on where you live and the type of coverage that you have purchased, there may be certain geographical limitations or exclusions related to certain types of damage such as flooding or earthquakes. Additionally, many policies will also list out any items that are not covered under your policy such as high-value items like jewelry or expensive electronics. By understanding exactly what is and is not covered with a policy can help prevent any unpleasant surprises if something were to happen down the line. When reviewing your current home and auto insurance policies, it is also important to consider additional optional coverage that could be beneficial for you in 2023. This will be based on your changing needs or circumstances - especially when it comes to new vehicles added over the past year. Optional add-on coverage options can provide extra protection from specific risks not otherwise provided by standard coverage, like roadside assistance packages or rental car reimbursement, should an accident occur away from home. It is always worth considering these additional coverage options since they often come with minimal cost, but they can offer tremendous peace of mind knowing that all bases are covered should anything unfortunate arise during 2023! 2)Add Any New Family Members or Vehicles to Your Policy Adding any new family members or vehicles to your policy is a crucial step in getting the most out of your home and auto insurance. If you have purchased a new car, it is important to include it on your policy as soon as possible so that you can enjoy the full benefits of coverage right away. Typically, this involves providing details such as make and model information, VIN numbers, and registration data. These details will ensure a smoother process when adding a vehicle to an existing policy! For any newly added family members (spouse/children), you may need to update certain aspects of your policies, such as personal liability limits and increased medical payments should they be involved in an accident. It is also worth considering adding them onto the same auto insurance plan since doing so often results in discounted rates due to economies of scale associated with multi-car policies. 3)Check Your Deductibles To Make Sure They Are Still Appropriate When reviewing your home and auto insurance policies, it is important to check and make sure that the deductibles are still appropriate for your needs. Having a deductible that is too low can put you at risk of losing out on potential savings if you need to file a claim. However, having a deductible that is too high could leave you facing hefty costs in the event of an accident or damage. It is best to review the amount of deductible currently listed with each policy and compare it against any changes in your financial situation over the past year. If either has changed significantly, then it may be worth considering adjusting deductibles accordingly, so they better reflect current circumstances while also allowing for maximum savings when filing claims down the line. Ultimately taking advantage of all applicable deductions can help ensure adequate coverage while keeping costs manageable throughout 2023 and beyond. 4)Confirm That You Are Taking Advantage of All Available Discounts It is advisable to investigate available discounts as well when checking deductibles since these could help lower overall premiums further. It is important to make sure you are taking full advantage of all the discounts available when it comes to your home and auto insurance policies. Some of these may include discounts for having multiple policies with one insurer, being a part of certain organizations like alumni associations or professional societies, or even having certain safety features installed in your vehicle. Taking advantage of any applicable deductions can offer significant savings on premiums while still providing adequate coverage should something unfortunate arise during 2023! It is also worth confirming if there are additional discounts that could be applied towards specific coverages such as roadside assistance packages or rental car reimbursement should an accident occur away from home. Additionally, many insurers now offer preferred driver discount programs designed to reward safe driving habits with discounted rates, so even if you have been involved in a few accidents over the past year—this could still provide some relief when it comes time to renew your policy in 2023. Ultimately exploring all potential deductions and discounts before signing up for new policies each year can help ensure maximum savings while also protecting yourself and your loved ones against unforeseen risks throughout the year. 5)Review Your Coverage Limits To Ensure They Are Still Adequate It is important to review your coverage limits and ensure they are still adequate for your needs. This means confirming that the amount of liability protection you have is high enough, as well as any other coverages such as medical payments or rental car reimbursement should an accident occur away from home. It is also worth considering increasing these limits if possible since doing so can often result in lower premiums due to economies of scale associated with higher-value policies. Also, having adequate coverage offers more peace of mind knowing that greater financial protection is available against unforeseen risks during 2023. In conclusion, it is important to take the time to review your home and auto insurance policies. Doing so will ensure you are aware of what is and is not covered, that the deductibles are still appropriate, that you are taking advantage of all discounts you are eligible for, and that your coverage limits continue to be adequate. Taking this action now can help save money on necessary coverage. Strive Insurance Group, Inc. (formerly Gordon Lund Insurance Agency, Inc) is an independent insurance agency representing many insurance companies. This means that we quote with many different insurance companies to obtain the best rate and coverage for your insurance. We do this at no additional fee or service charge to you. Our insurance agency's reputation for representing the best insurance companies, providing excellent customer service and competitive pricing to our clients has been earned and proven for over 30 years. We take great pride in finding you the best coverage and backing it up with prompt personal service. 11/15/2022 Business Insurance Myths Business insurance is crucial in the current economic climate. In case we get sick or hurt, we have health insurance. We have auto insurance to protect us in case of a collision and allow us to drive legally. There is no exception for businesses. The proper types of company insurance coverage are necessary if you operate a business in order to safeguard it. Common misconceptions about company insurance are dispelled as follows:
Only Large Businesses Are Sued Even in our litigious culture, many people are aware that going after a big business in court is frequently a bad idea. They have the financial wherewithal to wait out a plaintiff, tying up the matter in court as their in-house attorney refuses to move. Forty percent of all small firms, according to the Small Business Administration (SBA), are thought to be involved in litigation every year. Therefore, it is highly possible that you will have faced legal action by the time you have been in operation for three years. Insurance Is Not Necessary For Small Businesses Simply said, this claim is untrue. In this litigious environment, any size of company can be sued. Every year, numerous small firms get into legal disputes. The size of your business property, the number of employees you have, or even your revenue are not factors in business insurance. It needs to be based on the risk exposure that your company faces. The correct insurance coverage can assist in protecting your business from catastrophe, regardless of the risk, which may include fire, theft, liability for injuries, or a lawsuit based on a service or product your firm delivered. My Home-Based Business Is Covered By Homeowners Insurance It's crucial to understand that your homes insurance won't offer enough protection for your home-based business if you're self-employed and operate from home. According to the Insurance Information Institute, the median homeowner’s policy only covers business equipment up to $2,500. (III). This might not be sufficient to cover all of your commercial property. Additionally, a homeowner’s policy won't offer liability or lost income coverage, which you could require. Your alternatives for home-based business insurance can include: BOP: This sort of insurance is intended for small to medium-sized businesses. If your home-based business has multiple locations, it is a wise decision. On a far larger scale than an in-home business policy, a typical BOP will cover business property and equipment, liabilities, lost income, and other expenses. The Cost of Business Insurance Is Expensive Although it is not free, business insurance is required to run a business. Cutting costs in a way that puts your company in danger is not a cost-effective strategy. Every day, several small businesses are sued for various reasons. Your company's size, location, and the kinds of services or goods you offer will all affect how much your business insurance will cost. Strive Insurance Group, Inc. (formerly Gordon Lund Insurance Agency, Inc) is an independent insurance agency representing many insurance companies. This means that we quote with many different insurance companies to obtain the best rate and coverage for your insurance. We do this at no additional fee or service charge to you. Our insurance agency's reputation for representing the best insurance companies, providing excellent customer service and competitive pricing to our clients has been earned and proven for over 30 years. We take great pride in finding you the best coverage and backing it up with prompt personal service. Call our team for a free review.  A Business Insurance Update
If you think about it, your business faces risks every day. When you open your doors, you have the risk of having sick or injured employees, customer complainants, and vendors who fail to deliver on their promises. The world has changed in the past few years and it is important for business owners to make sure their business insurance keeps up. Recently a large insurer released their annual business risk index. This index identified the top concerns of over 1,000 business owners. Nearly half of survey respondents believe that the business world is growing riskier, yet just 24 percent said that risk management was a strategic priority for them. According to the survey, the top seven worries of today's business owners across all industries are:
Let our agency help you understand how to manage and treat the risks. We offer a wide range of highly rated insurers that can offer the necessary products to help you manage you risks. 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.  The day-to-day operations and challenges of running a business can often overshadow the importance of reviewing your insurance coverage. Updating your insurance may not be at the top of your priority list, what with work, home, and personal obligations. Have you ever wondered when you should update your insurance policy? We recommend your take the time to review your business insurance program before each renewal.
The length of time it takes to renew your policy is determined by the size of your company, the complexity of your risk, and the insurance carriers you use. However, starting conversations two to four months ahead of time has a significant advantage. We have discovered that it allows you to communicate with your insurance broker about various difficulties and ideas. You can talk about potential company developments as well as the various insurance options. A good market strategy can be condensed to five simple criteria regardless of an organization's size, complexity, or risk profile.
To begin with, how responsive is your insurance agent? Is it common for you to be left hanging or suffering in the dark for weeks while waiting for a response to your insurance details? Of course, top-tier brokers are also quite busy. A little common sense goes a long way. People who want your business, on the other hand, are more likely to work hard for it. Consider the following items when selecting your agent
Some agent like to start 120 out from the renewal date, and other say 90 days is ok. We think the more time you have, the better. This gives you plenty of time to plan your strategy and goals, gather data, create attractive underwriting submissions, engage underwriters to consider your options, and get post-binding papers like ID cards, certificates of insurance, and invoices. The idea is never to give an insurer a reason to deny participation because "there isn't enough time. Review Your Risks In Relations To Your Coverage The process of risk and coverage review can be important to ensure your proposed coverage meets your goals. If you have an uncured loss due to a lack of understanding of your risk is never acceptable. This gives you and your agent an opportunity to thoroughly review your risks and design a program to meet your needs. Recognize That Low Price May Not Be The Best Option Often businesses will look to the lowest cost as the main factor in considering which program to select. This may not be in your best interest. Low-cost insurance can mean that there are coverages missing, restrictive terms, or exclusion you may not want to be included in the quote. There are cost-saving options when purchasing or renewing company insurance coverage to help you save a large amount of money. If you can persuade your insurance that your risk exposure is modest, for example, your premium can be lowered. Be Prepared To Negotiate While a small business doesn't have the same bargaining power as a firm that pays a six-figure premium, there are a few things you can ask for, including:
Yes, the renewal procedure can be time-consuming and complicated, with many loose ends. That does not have to be the case. Not if you follow the correct procedures and have a well-defined strategy. A qualified insurance broker specializing in commercial insurance plans may make things a lot easier and more cost-effective. Commercial business insurance is an important aspect of any business that cannot be ignored, especially if the business premises are leased or rented and even otherwise. Whatever your commercial insurance needs, we can design a protection program that’s right for you.  When it comes to protecting your financial assets like your home or auto, you can't trust just anyone with your investment. Finding a trustworthy and trained insurance agent/broker could mean the difference between having enough coverage for your property following a catastrophic loss and being stuck with a large repair bill. An insurance agent/broker is a specialist who works on behalf of clients to find the best policy or insurance provider for their needs.
Consider the overall fit not just the price, as price can be deceptive. Be careful of someone who sells on low cost, generally it means poor coverage. The same method you used to choose a doctor or dentist can be applied to choose an insurance broker. You want someone with a pleasant "bedside manner," as it were. Understand the differences in agents Direct Writers vs. Independent Agents: There are two ways to obtain insurance coverage from a company. Direct writers are insurance companies that hire their own salespeople to write exclusively for them; they work for the company that employs them. Independent agents work for the insured rather than the insurance company. They do, however, have contracts with multiple insurance companies and can usually provide you with more options. Signs It Is Time To Find A New Agent
Testimonials: Yelp, LinkedIn, Facebook, and other social media platforms can help you determine whether or not a business provides good service. These websites can be useful, but meeting with an agent or broker in person is one of the greatest methods to determine whether or not they will take good care of you. Personal Recommendations: Consult with your coworkers, people you trust, and your circle of friends. Asking a complete stranger is preferable to relying on advertisements or the yellow pages. People are more likely to refer others with whom they have had a good encounter. Ask Questions Consider this like an interview, where you are selecting a person and agency to represent you.
 Contractors insurance policies range significantly in terms of what they offer. Most will have a business owner's policy (BPO) that will provide:
Why Do I Need Liability Insurance? Good liability risk management can reduce the chances that your business will be sued, but it can never eliminate the risk entirely. You or a member of your organization can make a mistake that injures someone or damages property. Your mistake could harm the reputation or interfere with the privacy of a customer, client, competitor or member of the general public. When such injuries occur, you may be legally liable to pay damages to someone who suffers a loss due to your actions or inaction. Everyone in society has a duty to take reasonable care that his or her actions do not injure others. The same rule applies to business entities. Not repairing a pothole in a parking lot, not lighting a dark stairway, failing to train workers how to do their jobs safely and legally or failing to provide directions for the safe use of a product can constitute negligence if a client, customer or member of the general public is injured as a result. The legal meaning of negligence is failure to exercise reasonable care. The law of the state where the lawsuit is filed sets the rules for the determination of liability and damages. The amount of damages imposed in any particular case is, of course, in part a function of the economic losses the plaintiff can prove he or she has endured due to the defendant’s negligence. In some states plaintiffs may also be awarded damages for. What Kind Of Liability Policy Should I Get? For small businesses the most efficient and least expensive way to purchase liability insurance is usually as part of the Business owners Policy (BOP) which combines property and liability insurance in one contract. Your liability insurer will pay damages that you are legally obligated to pay as a result of “bodily injury,” “property damage” or “personal and advertising injury,” up to the policy limits and subject to your deductible. Punitive damages are generally not covered, although there may be some exceptions. Bodily injury means injury, sickness, disease or death; it may include injuries that are emotional or mental, such as post-traumatic stress syndrome or humiliation. Personal and advertising injury includes libel, slander or any defamatory or disparaging material or a publication or utterance in violation of an individual's right of privacy; infringing the privacy or copyright rights of another in your advertisement; wrongful entry or eviction, or other invasion of the right of private occupancy; and false arrest or wrongful detention. Who Is Insured? BOP liability coverage insures a sole proprietor, partners or partners named in the policy "Declarations," but only with respect to their duties on behalf of the business. The spouses of sole proprietors or partners are also covered. If your organization has officers and directors, they are insured, as are your stockholders, but, once again, and this applies to all parties, only with respect to their duties or liabilities in connection with the business. Employees and volunteer workers are insured for acts committed within the scope of their employment in your business.  There are more remote workers in American today than at any time in our recent history. Many employers are embracing this trend, but there are new risks to consider. As a result of this distant work environment, a crucial problem arises in new security threats. In our digital age, businesses have had to improve their cybersecurity, yet cybersecurity dangers have increased significantly due to remote labor. Employees who work from home are at a significantly higher risk than those who work in offices.
Ransomware attacks are also a big concern for more than two-thirds (69%) of IT executives, who anticipate that the hybrid workplace will be a target for ransomware. Targeted organizations faced a threat to their business continuity as a result of these attacks. Sharing a computer and using it for personal purposes are two different things. It may seem self-evident, but sharing a business computer with family or roommates can be a security concern. This should be avoided at all costs, especially if your work result contains sensitive customer information. Cyber Tips For Remote Workers
For remote employees, cybersecurity necessitates ongoing monitoring. Give us a call if you're concerned about your present remote security practices. We'll examine and put safeguards in place that will allow your remote workers to work securely and productively. |
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