Archive for September, 2014

Knowledge or Experience, Your Choice

Posted on: September 26th, 2014 by Commercial Insurance No Comments

There’s no doubt that “Knowledge is Power”, and in order to make sound business decisions on your business insurance you need either the experience or knowledge to guide you. Experience can be very costly. Talk with an owner that suffered through an uncovered loss at their business and they will tell you they wish they had the knowledge and did not have to learn by experience.

Are you confident you have identified and have answers to common gaps in insurance coverage we uncover every day? These common gaps may surprise you;

Employment Practices Liability:

Employee suits against business owner for employment related claims, to include; Gender/Age discrimination, Sexual harassment, Wrongful Termination, Emotional distress, Negligent promotion/hiring

Fiduciary Liability:

As owner, officer, trustee of company retirement plan, YOUR personal assets are at risk. You can be held personally liable as a result of alleged errors, omissions or breach of duty for losses on a group benefit plan

Cyber Liability:

A breach of your secure network or point-of-sale system, a stolen lap top, missing thumb drive, or employee error, all pose real world problems for businesses

Business Overhead Expense:

You, a partner, or key employee is disabled due to injury or sickness, how will the business fill the role and lost income? What are the financial obligations owed to the disabled employee? Provide cash to the business to bridge the gap for up to two years until decisions and plans can be made

Long Term Care:

Not if but when you will need this important insurance. Determine how and where your medical care is delivered. Secure coverage today when health is good, benefits are greater, costs are lower, and premiums deductible as an employer benefit

If you have questions, Call us, We have the answers!

Business Overhead & Your Business

Posted on: September 12th, 2014 by Commercial Insurance No Comments

Often ignored or worse yet never discussed, is the important role and impact Business Overhead Expense (BOE) insurance can have on a business at a time when the business is most vulnerable. Businesses are successful because they have something to offer, or provide a service better than the other guy. Typically the competitive advantage rests with the leadership, marketing, technology, sales or production of the business and typically these advantages can be tied to a person or team of people that make the company successful. So what happens when a “rain maker” in a company can no longer work due to disability, enter Business Overhead Expense (BOE) insurance.

Business Overhead Expense (BOE) provides an income stream for the business to help cover a drop in income that may result from the loss of a key employee due to disability. Businesses where the owner or partner are the “product/service” are most at risk; think doctors, lawyers, accountants, engineers. When the owner’s direct professional work determines the amount of income, and they are not able to work, the income for the business stops. BOE will provide income to the business to offset the lost income to help pay the ongoing business expenses. These expenses would include employee salaries, utility expenses, rent/mortgage, taxes and other miscellaneous expenses.

A common example we see every day is the medical group with two doctors, ten employees and monthly income of $150,000. One of the doctors is out of work due to injury or illness and unable to work for up to one year. The income in the medical group drops by 50% but the expenses for the medical group remain unchanged. BOE gives the medical group a life line to pay their bills in the short term while they come up with plan B. Is this a short term problem and the doctor will return to work or are we looking at a long term problem and need to find a doctor to assist the medical group or a permanent replacement. With up to 24 months of coverage available, BOE gives the owner(s) time to breathe, assess all options and make decisions in the best interest of owner(s) and employees.

If BOE is new to you and you have not looked at the options for your business, we are pleased to bring the coverage to your attention. Although larger companies may have the resources to handle the loss of a key employee, the fact remains small to mid-size companies probably will not survive a prolonged drop in income. Today LLC’s and multi-owner corporations are common, BOE and Buy-Sell agreements will help you avoid major in fighting and costly attorney fees if you take the time to plan up front.

For more on Business Overhead Expense and how this one coverage could one day save your business, give us a call.

You have questions, We have the answers!

Employee Benefits Liability

Posted on: September 5th, 2014 by Commercial Insurance 2 Comments

Regardless of what business you are operating, retaining your best employees is as important as increasing sales. In order to attract and retain the best talent, you must offer competitive pay and usually very competitive employee benefits. While employee benefits protect the employee, Employee Benefits Liability protects you (business owner) from administrative errors made handling the company’s employee benefits.

When you offer competitive employee benefits like; Medical, Disability, Life, Dental, etc… you are also assuming responsibility the benefits will be available when the employee needs them. We’ve had the calls come in for errors when employees were excluded or never added to the benefit plan. The employee with a route-canal and dental plan did not respond, cost $2,000-$3,000, that hurts. The employee with heart attack and emergency surgery and no health insurance, cost $30,000+, major problem. Both cases, administrative errors resulted in lack of benefits when the employee needed the benefits most.

There are hundreds of rules and regulations business owners are required to follow when offering employee benefits. Waiting periods, Deductibles, COBRA, Eligibility, all can trip up even the best HR departments, a business without a full time HR employee make the challenge that much greater.

The good news, Employee Benefits Liability can often be added to your existing liability contract at a very reasonable rate. Typically a Claims-Made coverage, make certain your retro-active date remains the same year to year and in particular when you make a move from one insurance company to another.

Questions on Employee Benefits Liability, Call Us, We have the Answers.

Happy Labor Day!

Posted on: September 1st, 2014 by Herlihy Insurance Group 1 Comment

Per the USA Department of Labor:

“Labor Day the first Monday in September is a creation of the labor movement and is dedicated to the social and economic achievements of American workers. It constitutes a yearly national tribute to the contributions workers have made to the strength, prosperity and well being of our country.”

We at Herlihy Insurance Group would like to take a moment this Labor Day to sincerely thank all of our employees for their contributions that enable our business to grow and thrive.

We are fortunate to be working in the USA along side a dedicated group of professionals through out the year.

Best wishes to all for a safe and enjoyable Labor Day.