ready for takeoff- insurance 101 for entrepreneurs
TRANSCRIPT
READY FOR TAKEOFF
INSURANCE FOR ENTREPRENEURS
Insurance 101
Presented by:Betsy Ellis Clement
Know what you are buyingKnow why you are buying it
Buy it smart
01 Building & Contents - How are they defined?
02 What are perils? Which “form” do I buy?
03 Improvements & betterments vs. contents
04• Business Interruption• Extra Expense• Your agent needs your financials
Business Income - What is it?
property insurance.
• Percentage Deductibles – % of what?
• Flood• Electronic Data Processing
• What about someone else’s stuff in your care?
• Off premises? In Transit?• Don’t Guess
property insurance.
Covers Three Perils
How much is enough?
How is it rated?
1) Bodily Injury 2) Property Damage• At your premises
& for your products & completed ops
3) Personal Injury
• $1,000,000 per occurrence / $2,000,000 aggregate
• Consider Umbrella / Excess Liability
• Sales• Payroll• Square Footage
general liability.
• Subcontractors & Independent Contractors
• The Audit
• Classification limitation
• Designated Premises Limitation
• Coverage Territory
• Louisiana Payroll Cap
• Hired & Non-Owned Auto
• Employee Benefits Liability
general liability.
workers compensation.• Part I: Statutory Workers
Compensation Insurance• Part II: Employer’s Liability• Part III: Other States Insurance• In Louisiana, Workers Compensation
insurance covers the medical bills of employees injured in course and scope work and 66 2/3 of average weekly wage (subject to maximums)
• Classification code rate is applied per $100 of payroll
workers compensation.• Owners/Officers can exclude
themselves (This is not recommended)
• If not excluded, payrolls are capped for owners/officers
• The audit• Here come those subs again• Stay away from the water, or
endorse policy accordingly (USL&H)• Report, report, report your claims
•Excess over General liability, Employers Liability, Auto
•How much is enough?•Preferable to keep with the underlying carrier
•Don’t be afraid to report claims
umbrella.
• Liability insurance payable to (or on behalf of) directors and officers of an organization or to the organization itself as indemnification for wrongful acts
• Can include defense costs associated with criminal and regulatory matters
• Excludes civil or criminal fines and any amount allocated to non-covered losses
directors & officers.
01$5,000,00002$1,000,00003$250,00004$560,000
Misuse of funds: State attorney general sued a large charitable foundation, alleging the trustees were overpaid and underworked. Settlement: $5,000,000
Antitrust & False Advertising: A competitor sued insured claiming that a new product was based on a proprietary method and customers were being improperly steered to use it. Defense alone: $1,000,000
Intellectual Property: Software developer claimed the insured organization took his ideas and developed its own software, allegedly retaining and using his intellectual property to create a competing product. Defense & Settlement: $250,000
Patent Infringement: Company sued the insured, asserting patent infringement, fraud, misrepresentation and breach of contract. Defense & Settlement: $560,000
claims scenarios.
• A type of liability insurance covering wrongful acts arising from the employment process
• Wrongful Acts include wrongful termination, discrimination, sexual harassment, retaliation, defamation, invasion of privacy, failure to promote, deprivation of a career opportunity, and negligent evaluation
• Third Party Claims
employment practices liability.
crime.
•Employee Theft•Employee Theft of Client Property
•ERISA Fidelity•Funds Transferred Fraud•Computer Crime
•In Transit•Personal Accounts Protection•Forgery or Alteration•Money Orders & Counterfeit Money
•On Premises
• An event that leads to a Privacy Wrongful Act or a Network Securities Wrongful Act
• Caused by: Hackers Viruses/malware Careless employees Lost computers/flash drives Stolen briefcase
cyber liability.The new frontier of claims
• Privacy & Network Security Coverage Pays for the Loss (defense expenses, monetary damages, pre-judgement interest, post-
judgement interest, settlements, fines and penalties, etc.) due to a claim resulting from a Privacy or Network Security wrongful act.
• Notification & Credit Monitoring The Insurer will reimburse the insured for the costs they incur to notify and monitor the
credit of a person residing in the US, including employees, who is the victim of a Privacy Wrongful Act.
• Data Forensics The Insurer will reimburse the insured for data forensic expenses incurred in
connections with a data breach that leads or may lead to a Privacy Wrongful Act or Network Security Wrongful Act.
• Crisis Management Coverage The Insurer will reimburse the insured for the Crisis management expenses they incur
in connection with a Material Event.
cyber liability.
PollutionKey Man
other coverages to consider.
Professional Liability
Kidnap & Ransom
• Definition of an insured contract• Additional insured status must be in writing• Additional Insured Completed Operations• Waiver of Subrogation• Primary & Non-contributory• Certificates of Insurance
Laws pertaining to issuance Tracking and monitoring certificates
• 30 day notice of cancellation
Contracts.
what’s next?Decide where you are on the scale…
(cost) (correct)
• Involvement• Responsiveness• Risk Management• Guidance• A Trusted Advisor…. Not a salesperson• You are driving the bus
the cost to you is 12%What should you expect?
questions?
