My Interview with Candy Messer on The Different Types of Insurance To Protect Your Business
Thank you to Candy Messer from Affordable Bookkeeping and Payroll Services for interviewing me on the topic of “The Different Types of Insurance To Protect Your Business” Some of the key items we discussed are:
- Tailoring Insurance Coverage for each unique business
- Commercial General Liability Insurance
- Workers Compensation Insurance
- Errors & Omissions (Professional Liability) Insurance
- Do home based businesses need a business insurance policy?
- Is business insurance required by law?
- Insurance for contractual requirements and lease agreements
- Employment Practices Liability Insurance
- The difference between Commercial General Liability and Errors & Omissions Insurance
- Cyber Liability / Data Breach Insurance
- How much does business insurance cost?
- Ways you can keep your insurance costs down
- Negotiating premiums with Carrier underwriters
Check out our interview together here:
Thanks for watching
-JK
Radio Interview: The Different Types of Insurance To Protect Your Business
I hope you’ll catch my radio interview hosted by Candy Messer of Affordable Bookkeeping & Payroll. We discuss all things Business Insurance and Risk Management. From General Liability for a home based business to Cyber Liability and Employment Practices Liability for small to middle market companies. You can catch our interview HERE. Also, link included below.
Topics include: General Liability Insurance, Errors & Omissions Insurance, Cyber Liability Insurance, Businssowners Insurance policies, Employment Practices Liability, Workers Compensation, Risk Management.
-JK
Is California the Most Litigious State in the United States?
Although many people view California as the most litigious state in the United States, it is actually the sixth most litigious, according to the Employment Opportunity Commission (EEOC).
Texas had more than 7,482 charges filed in 2018; followed by Florida with 6,617; then Georgia with 4,919; then Pennsylvania with 4,463; followed by Illinois with 4,444; and then California with 4,344.
Considering that California is the most populous state and has the most protections for employees, the number of complaints, just based on employee population, is a head-scratcher unless you believe that California employers are better at preserving employee rights or that population and employee rights are not good indicators of employment practices risk.
Source: Travelers
-JK
Summer Dress Code For The Workplace
Summer is in full effect and it’s been hot and muggy in So Cal. Another heat wave is on the horizon this week. We spend our summer weekends at the pool and the beach and when it’s 90+ degrees outside, the last thing we want to do is slip into our wool suits or heavy dress clothing when we go to work. As an employer, how do you treat the dress code standards at your workplace? Do you have a dress code?
Click here to read the California Chamber of Commerce Human Resources Department’s thoughts on the subject that employers should consider – especially during these hot summer days.
-JK
Why Employment Practices Liability Insurance Coverage Is So Important
Quite honestly, I am floored by how many small businesses do not purchase Employment Practices Liability Insurance (EPLI). For those who are unaware, Employment Practices Liability is coverage against claims by employees alleging that they suffered damages as a result of the employer’s discrimination, wrongful termination, sexual harassment, or various other employment-related offenses.
Photo by rawpixel.com on Pexels.com
When saying I am floored by how many small businesses do not purchase EPLI, I am basing that off my own experience in helping businesses with their various risk exposures and insurance needs.
I understand there’s a price tag associated with the coverage, but there’s a reason why premiums can be hefty in California for EPLI. Statistics show businesses are more likely to face an employment claim than a property or general liability claim.
Check out these statistics:
- The average amount paid for out of court settlement is $40,000.
- Defense of an average EPL case, through trial, costs over $45,000.
- The median compensatory award for EPLI cases is $218,000.
- 67% of all employment cases that litigate result in judgment for the plaintiff.
- 41% of all EPLI claims are brought against small employers with 15 to 100 employees.
- Six out of ten employers have faced employee lawsuits within the last five years.
- 91,503 charges were filed in 2016, slightly higher than the past two years.
Most importantly, buying an EPLI policy provides defense coverage in the event of a claim or suit regardless of the legitimacy of the claim. A simple allegation cannot be ignored. When you receive that summons in the mail, you cannot just throw it away. It must be addressed and defended. EPLI provides defense coverage to protect your business.
Also, when buying EPLI, you have 24/7 access to Human Resource professionals and Employment Law attorneys to consult with if you need guidance on how to address an employment issue. Carriers don’t want to pay claims, so this offering is pushed on their part to help mitigate the potential of a more serious matter.
In my opinion, Employment Practices Liability Insurance is a must for any business with employees in California. The annual premium cost will seem like pennies on the dollar compared to the cost of a claim. Don’t believe me? Take a second look at the statistics above. You should act today before it’s too late. You can’t buy a policy for an Employment Practices claim or incident that already happened.
-JK
Top 10 Employment Discrimination Charges in 2017
The U.S. Equal Employment Opportunity Commission (EEOC) announced last week that 84,254 workplace discrimination charges were filed with the federal agency nationwide during 2017.
The agency handled over 540,000 calls and more than 155,000 inquiries in field offices.
The FY 2017 data show that retaliation was the most frequently filed charge filed with the agency, followed by race and disability. The agency also received 6,696 sexual harassment charges and obtained $46.3 million in monetary benefits for victims of sexual harassment.
Specifically, the charge numbers show the following breakdowns by bases alleged, in descending order:
- Retaliation: 41,097 (48.8 percent of all charges filed)
- Race: 28,528 (33.9 percent)
- Disability: 26,838 (31.9 percent)
- Sex: 25,605 (30.4 percent)
- Age: 18,376 (21.8 percent)
- National Origin: 8,299 (9.8 percent)
- Religion: 3,436 (4.1 percent)
- Color: 3,240 (3.8 percent)
- Equal Pay Act: 996 (1.2 percent)
- Genetic Information: 206 (.2 percent)
These percentages add up to more than 100 because some charges allege multiple bases.
EEOC legal staff filed 184 merits lawsuits alleging discrimination in fiscal year 2017. The lawsuits filed by the EEOC included 124 individual suits and 30 suits involving multiple victims or discriminatory policies and 30 systemic discrimination cases. At the end of the fiscal year, the EEOC had 242 cases on its active docket. The EEOC achieved a successful outcome in 90.8 percent of all suit resolutions.
My question to you, do you have Employment Practices Liability Insurance for your business?
Source: EEOC
-JK
Three Laws For California Employers To Know In 2018
This week, the California Chamber of Commerce released a video report highlighting three new laws impacting employers that go into effect in 2018. They include:
- a law requiring small employers to provide up to 12 weeks of unpaid parental leave;
- a law restricting the types of salary questions employers can ask applicants;
- and a law restricting employers’ abilities to conduct background checks or inquire about prior convictions for potential new employees.
(Source & additional information on these new laws: CalChamber)
-JK
California has become the latest state to outlaw the ‘previous salary’ question.
California joins Delaware, Massachusetts, Oregon, and several cities (including San Francisco) in passing laws preventing employers from asking prospective workers for their salary history. If asked, companies must also provide a pay range for the job in question. The new law, which comes into effect January 1, aims to curb the gender pay gap by keeping low salaries from following women through their careers.
-JK
Signs, Signs, Everywhere A Sign…
Saw this sign driving around L.A. yesterday. Employers beware. Your employees are exposed to this type of marketing from attorneys. First and foremost, treat your employees with the respect they deserve. Build a strong culture of trust and put your employees first. However, what if you do your best but still get a bad seed filing a groundless wrongful termination or discrimination claim against you? Do you have the money and resources to defend it?
They say nationally, the cost of settling an Employment Practices Liability #EPL claim out of court averages $75,000, and the average jury award hits $217,000 if you go to court and lose. In CA, I’m sure it’s higher. Are you prepared? #EmploymentPracticesLiability
-JK
EEOC Launches Small Business Resource Center
One of the most challenging aspects of owning a small business (particularly in California) is knowing and following legal requirements regarding hiring, managing, and sometimes terminating employees. It seems like there are new laws drafted daily. How can one possibly stay on top of it all???
The Equal Employment Opportunity Commission (EEOC) recently launched a Small Business Resource Center designed to assist small business owners in their compliance with employment laws they, the EEOC, enforce.
This new dedicated EEOC Resource Center contains a general overview of small business obligations including the posting and record-keeping requirements to assist in staying compliant with the myriad of nondiscriminatory laws.
The website also has available FAQs, tips, fact sheets and videos, as well as no-cost outreach programs. This is a good resource to keep in mind when you need to make sure how you are treating employees is legal.
I wouldn’t recommend that you try to do it all on your own though. Use a professional Human Resources consultant or attorney when necessary when dealing with sensitive matters surrounding the employment process.
Need help finding a reputable Human Resources consultant or attorney to help with your business? Contact me today. I have relationships with some great ones who can help you out.
-JK
About Me
I grew up in Fullerton, CA and graduated from Servite High School in Anaheim. I have my Bachelors degree from Loyola Marymount University in Los Angeles. I currently live in Tustin, CA.
Please contact me if you need help with any of the following lines of insurance for your business:
-Businessowners
-Property
-Commercial General Liability
-Product Liability
-Workers Compensation
-Group Medical
-Commercial Auto
-Umbrella/Excess Liability
-Errors & Omissions/ Professional Liability
-Employment Practices Liability
-Directors & Officers
-Life & Disability Insurance
Jimmy Kinmartin, CPCU 