July 2, 2010  

Is My Employee Covered On An International Business Trip?

I had a client call last week to ask  if his business would be covered by his general liability insurance policy if his employee was traveling internationally and caused bodily injury or property damage to a client of theirs. Truthfully, I didn’t know the sure answer to his question. This was the first time anyone had ever asked it. If this was in the United States, the answer would be easy….yes. However, would coverage apply internationally? 

I reviewed the Coverage Territory on the standard commercial general liability policy form and found “Coverage Territory” means: 

a. The United States of America (including its territories and possessions), Puerto Rico and Canada;

b. International waters or airspace, but only if the injury or damage occurs in the course of travel or transportation between any places included in a. above;

c. All other parts of the world if the injury or damage arises out of:

(1) Goods or products made or sold by you in the territory described in a. above;  

(2) The activities of a person whose home is in the territory described in a. above, but is away for a short time on your business; or

(3) “Personal and advertising injury” offenses that take place through the Internet or similar electronic means of communication  

provided the insured’s responsibility to pay damages is determined in the United States of America (including its territories and possessions), Puerto Rico or Canada, in a “suit” on the merits according to the substantive law in such territory, or in a settlement we agree to. 

Unless you’re a lawyer or an insurance agent or something, this might look like a foreign language to you. Let me translate. Under, c.(2) above, my client would have coverage in a general liability claim since his home is in the United States he and is away for a short time on business. Note, however, that my client’s responsibility to pay damages would have to be determined by a U.S. Court, not an international court. 

And you thought that all insurance agents do all day is run quotes and punch numbers, didn’t you?

July 1, 2010  

Have A New Business? Insurance Options You Must Consider

So you’re starting a new business and giving thought to what types of insurance you need to carry. Or, maybe you haven’t given insurance any thought at all. As crazy as it sounds, business owners often avoid insurance all together to bypass the cost. However, without coverage, all it takes is a single accident or a lawsuit to drain your capital and drive you out of business for good. Insurance is purchased to protect against loss and financial impairment of your business, aka your livelihood. You need it.

“What type of insurance do I need to make sure my business is secured?”

 

 The answer to this question varies depending on the type of product you sell, or the services you provide. Not all businesses have the same exposures, so an analysis must be done by your insurance agent. You’ll need to design an insurance package that meets your business needs and provides you with the level of protection you’re comfortable with.

Here’s a summary of the type of insurance your business might need:

Property Insurance: Provides protection against most risks to property such as fire, theft, and vandalism. If you have a home based business, your homeowners/ renters policy will not cover your business articles. You need to cover it under your business policy.

General Liability Insurance: A must, no matter what type of business you own. Liability insurance protects your business from: bodily injury claims, property damage to others, and advertising claims (Injury arising out of libel or slander, misappropriation of advertising ideas, or infringement of copyright, in the course of advertising goods, products, or services). Liability insurance may be the only type of business liability insurance you need depending on your business situation.

Professional Liability Insurance: If you’re a professional, such as a doctor, lawyer, realtor, management consultant, etc, you should consider carrying professional liability insurance (errors & omissions insurance). This type of insurance helps to protect an individual or a company from enduring defense costs for lawsuits relating to an error or omission in providing professional services.

Workers Compensation Insurance: If you have employees, workers compensation insurance is required by state law. WC provides medical benefits, disability (loss of earnings) benefits, death benefits, and rehabilitation benefits for employees who are injured in the course of employment.

Business Interruption Insurance: If a catastrophe like a fire causes your business to shut down, business interruption (aka business income coverage) is designed to help. It pays your net income and operating expenses, and other reasonable expenses to keep your business from shutting down after a disaster and during restoration.

These are just a few of the many insurance coverage’s out there. Don’t get discouraged at the broad variety. Many of these coverage’s can be packaged together under one policy and with the help of a knowledgeable insurance agent, you shouldn’t have to worry about all these things. If in doubt, pick up your phone and contact your agent today.

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