Commercial Insurance - Other Commercial Coverages
Directors and Officers Insurance
Director and Officers Insurance isn't just for standard for-profit companies anymore. The threat of a new member to an executive board stealing large sums of money from any organizations cash account, either for-profit or not-for-profit, is both real and apparent. And exposures don't stop there. Situations such as disgruntled employees suing directors for discrimination, and charges regarding new employees divulging trade secrets can be insured against as well.
Of course, a lawsuit may end in your favor, but you would still he socked by defense costs. D&O Insurance covers this as well. Directors or officers who expect the corporation to protect them against personal liability should think again: The firm's Limited Liability Coverage goes only to uninvolved stockholders. It is designed to allow people to invest in a corporation while risking nothing but their investment. D&O Insurance provides protection that officers and directors need and deserve.
Insurance For Professionals
A professional has legal responsibility to adhere to a reasonable professional standard. The liability that comes from failing to meet professional standards is distinct from "general liability", which results from failing to live up to reasonable personal standard during life's common activities (driving a car, keeping one's premises safe, etc). In this sense, professionals include such diverse vocations as architects, engineers, auctioneers, trustees, collection agents, exterminators, TPAs, marine surveyors, real estate agents and stockholders.
While the nonprofessional commonly purchases one Liability Policy to protect the home, another to protect vehicle activities, and a third to protect business activities, professionals need a policy to cover liability specific to their occupation. This can be broken down into two categories: malpractice and errors and omissions. Malpractice generally refers to occupations such as doctors, nurses and hospitals, while Errors and Omissions applies to accountants, lawyers and insurance agents.
Professional liability claims are significantly different than claims for general liability. Someone who injures an ankle falling through your weakened floor board files a general liability claim; a person whose accountant gives bad may financial advice may end up filing a professional liability claim. A solid Liability program is a mosaic of various policies.
Distractions in the Work Place
DVD Software of Orange County, CA estimates that computer game-playing in the United States costs businesses $50 billion annually in terms of lost work time. Management must take steps to eliminate this kind of playing around. Ungame is software that can search, detect, and (optionally) delete games from a network server's disk. Ungame has been used by the Mississippi Workers Compensation Commission, the College of Business at the University of Oregon and various businesses. Contact Dana Hollander of DVD Software, Inc., (714) 757-0615, for more information.
How Do Others See Your Firm
"Little Things Mean a Lot" is a song that can apply to businesses as well as couples. Factors that management considers unimportant can be enough to cause the public to switch their business to another firm.
Consider these image-affecting factors:
- When the public calls, is the telephone answered promptly and intelligently?
- If an automated system answers, is it caller friendly and not excessively time consuming?
- Are written communications prepared on high-quality stationery? Does the firm's fax cover sheet carry the firm's logo?
- When customers come in, are they greeted and helped promptly?
- Are routine questions treated as important and complaints taken in a serious manner?
- Do customers have a pleasant waiting area (with current magazines)? Are the restrooms clean?
- Are exterior and interior signs both prominent and clean?
These items may appear trivial, but it's the little things that help build your popularity.
How You Can Help the Arts
Whether you're for them or against them, you can't deny that new government cutbacks are going to hurt the arts. What can your business do to help? You might not be able to become the prime sponsor of the Monet traveling art exhibit or the local appearance of the Joffrey Ballet—but you can contribute to arts-related activities in ways that go beyond simple donations of money. Consider the following alternative options:
- Service donations. Lawyers can offer legal services. PR firms can offer advertising. Contractors may offer carpentry work. What can your firm offer?
- Space donations. A restaurant can offer wall space for painting displays, a real estate firm may offer that empty commercial space for a sculpture exhibit—and your firm can offer…what?
Arts involvement is good for company morale and for the community. And when it's good for the community, it's good for the reputation of your business.
Crime Protection
Ratco, a payroll firm, did all the bookkeeping for Boylan, Inc. After several years of good service to Boylan, Ratco entered bankruptcy . In its last desperate throes, the firm dipped into Boylan's funds.
The first Boylan heard of it was when the IRS demanded back taxes and accompanying penalties due to Ratco failing to pass the money Boylan owed in taxes to the government. Boylan may now be headed down the same row as Ratco, when its only crime was to be uninsured.
Crime Insurance can cover the criminal acts of insiders and outsiders. Let us review your current Crime Protection and help you achieve maximum coverage.
