There are so many things you need to look at as a small business owner. You often wear so many hats that it’s difficult to really cover all your bases. So we gathered a quick list of things to look for regarding your Commercial and Employee Benefits Insurance.
- Know your risks: Employees and automobiles. Do you have employees using company time to drive to the bank to make a deposit, grab lunch for your office, pick up a package, etc.? This is a huge exposure that you don’t necessarily think of. If your employee is in an accident during that time, your business will suffer. Hired and Non-owned Auto coverage can be obtained for these situations.
- Look for holes in your security system. Big-box security breaches are in the news all the time, but you may not know that most cyber-crimes happen in small businesses. Why? Small businesses are often easier targets for thieves as they have less sophisticated security systems and/or processes. If you store customer information or complete credit card transactions, you are likely at risk for attacks. Cyber Liability Insurance is an often overlooked coverage. Without it, it can prove very costly for your business.
- Develop a disaster plan in case of a natural disaster. In Florida, we have a very real risk of storms and flooding causing significant damage to our businesses. Even if you have property damage coverage, your business will likely be unable to operate during the repairs. Would your business survive months of not making any income? Business Income Insurance, coupled with a good disaster plan, is a necessity for all businesses in Florida.
- Take a closer look at your key people. Most organizations employ at least one individual who is essential to the company’s success. This person may be a partner, owner, majority stockholder or another individual crucial to the business. If this person unexpectedly leaves the organization—due to a death, disability or immediate resignation—it may be hard for the organization to survive. In this instance, Key Person Life Insurance can help ensure that your business is protected.
- Make sure that mistakes don’t cost you your business. In today’s litigious society, no one is safe from lawsuits. A simple mistake can cause you, as an owner, to be sued for what is deemed a “wrongful act”. A Directors’ and Officers’ Liability (D&O) policy specifically provides coverage for a “wrongful act,” such as an actual or alleged error, omission, misleading statement, neglect or breach of duty. Errors and Omissions Insurance (E&O) is another coverage that can help protect your business. E&O coverage kicks in where your Commercial General Liability policy does not provide coverage, such as for service errors, contract performance disputes or any other professional liability issues.
Employee Benefits Insurance
- Explore alternate funding. Policies issued prior to the Affordable Care Act (ACA) will begin to be phased out this year. Some employers still have these policies because they are less expensive than new ACA compliant policies. Alternate Funding of policy premiums can save a company from unnecessary rate increases.
- Ask an agent about alternative networks in your area. HMO’s can save a company 5-10% on premiums without any loss of providers in a metropolitan area such as Tampa Bay. Due to Florida law, they also have increased protections for your employees to safeguard against balance billing. In short, these are not your grandmother’s HMO’s
- Update salaries with your life and disability insurer. Salaries often change yearly, so be sure their benefits match.
- Resolve to review carrier invoices monthly. Often carriers have a 30 day limit on making adjustments… and mistakes can be costly.
- Count your employees every January. The magic numbers for different applications of Cobra laws is 20, for IRS 1095 reporting it’s 50. But these are counted differently – we can help.
Wallace Welch & Willingham is here to help you! Please contact us if you have questions about any of these business resolutions.