Business Insurance

Companies that sell business insurance offer policies that combine property and liability coverage in one package. One package purchased by small and mid-sized businesses is the business owners policy (BOP). Package policies are created for businesses that generally face the same kind and degree of risk. Larger companies might purchase a commercial package policy or customize their policies to meet the special risks they face.

BOPs include: 

• Property insurance for buildings and contents.
• Business interruption insurance, which covers the loss of income resulting from a fire or other catastrophe that disrupts the operation of a company. The coverage can also include the extra expense of operating out of a temporary location.
• Liability protection, which covers a company's legal responsibility for the harm it may cause to others as a result of actions that an owner or his or her employees do or fail to do in that may cause bodily injury or property damage due to defective products, faulty installations and errors in services provided.

BOPs do not cover professional liability, auto insurance, workers' compensation or health and disability insurance.

 

Workers' Compensation Insurance

Despite the best efforts of employers, accidents still occur in workplaces. When mishaps do happen, workers' compensation insurance provides coverage, assuring the injured get medical care and compensation for a portion of the income they lose while they are unable to return to work.  Also, workers' compensation usually protects employers from lawsuits by employees who are injured on the job.

Workers receive benefits regardless of who was at fault in the accident. If a worker is killed while working, workers' comp provides death benefits for the worker’s dependents.

In Rhode Island, just about every business with one or more employees must have workers' compensation coverage, but individual partners and sole proprietors are exempt. However, coverage must be provided for most corporate officers unless a waiver is filed with the Department of Labor and Training.

Injuries employees sustain in the workplace or anywhere else while the employee is acting in the course and scope of employment are covered under workers' comp insurance. In addition to injuries from accidents, workers' comp covers injuries employees may sustain from other events that may occur while they are working, including workplace violence, terrorist attacks and natural disasters.

Furthermore, workers' comp insurance covers certain illnesses and occupational diseases contracted as a result of employment. For example, employees who work with toxic chemicals can be made ill by exposure to the chemicals.

 

Employee Practices Liability Insurance

Businesses need to purchase employment practices liability insurance (EPLI) for protection from lawsuits employees file claiming their rights have been violated.

Businesses and their managers must be careful not to violate a myriad of federal, state and local employment laws such as the Americans with Disabilities Act, the Civil Rights Act of 1991, the Age Discrimination in Employment Act and Title VII of the Civil Rights Act of 1964.

The average award in employment cases tops $450,000, a sum that could devastate a small business that does not have EPLI. Aware that smaller companies need EPLI, some insurers provide coverage as an endorsement to business ownership policies. Other companies only offer EPLI as a stand-alone coverage.

EPLI provides protection against many kinds of employee lawsuits, including claims of:

• Sexual harassment
• Discrimination
• Wrongful termination
• Breach of employment contract
• Negligent evaluation
• Failure to employ or promote
• Wrongful discipline
• Deprivation of career opportunity
• Wrongful infliction of emotional distress
• Mismanagement of employee benefit plans

The cost of EPLI coverage depends on business type, number of employees and various risk factors such as whether a company has been sued over employment practices in the past. EPLI will reimburse a company against the cost of defending a lawsuit and for judgments and settlements.

For assistance with purchasing all business-related insurance, call (401) 722-1185 or send an e-mail to whunt@shove.com.