Business Insurance

Fiduciary liability insurance

Fiduciary liability insurance: Your ultimate shield against financial risks!

Posted on by Shield Insurance Agency

Shield Insurance Blog | Fiduciary liability insurance | Contact TJ Simmons

Fiduciary Liability Insurance (FLI) is a type of insurance policy that provides coverage for fiduciaries against claims made against them for alleged breaches of their fiduciary duties. Fiduciaries are individuals or organizations that have been entrusted with the responsibility of managing assets or making decisions on behalf of others. This can include trustees, directors, officers, administrators, and other similar roles.

So, when do you need to be aware of fiduciary liability insurance? If you are in a position of fiduciary responsibility, it is crucial to understand the potential risks involved and the protection that FLI can offer. Whether you are managing a retirement plan, an employee benefit plan, or any other type of fiduciary duty, having the right insurance coverage can provide you with peace of mind and financial protection.

Fiduciary liability insurance

It is important to know that fiduciary liability insurance is not just for large corporations or financial institutions. Any organization or individual that acts as a fiduciary can benefit from this type of coverage. This includes nonprofit organizations, government entities, small businesses, and even individuals who serve as trustees or executors of estates.

Potential claims against fiduciaries can arise from a variety of situations. Some common examples include allegations of mismanagement of funds, failure to diversify investments, breach of fiduciary duty, errors in plan administration, and failure to comply with legal requirements. These claims can result in costly legal expenses, settlements, or judgments, which can have a significant impact on the financial stability of the fiduciary and the organization they represent.

But how do you know if you are a fiduciary? If you have been entrusted with the responsibility of managing assets or making decisions on behalf of others, you are likely a fiduciary. This can include managing retirement plans, employee benefit plans, charitable trusts, or any other type of financial arrangement where you have a duty to act in the best interest of others.

Now, let’s dive into what a fiduciary liability insurance policy covers. FLI policies typically provide coverage for defense costs, settlements, and judgments related to claims made against fiduciaries. This can include legal fees, court costs, and any damages awarded to the claimant. It is important to note that coverage may vary depending on the specific policy and insurer, so it is essential to carefully review the terms and conditions of the policy.

On the other hand, there are certain things that an FLI policy does not cover. These can include intentional acts, fraud, criminal acts, and certain types of professional liability claims. It is crucial to understand the exclusions and limitations of the policy to ensure that you have adequate coverage for your specific needs.

When looking for a fiduciary liability insurance policy, there are several factors to consider. First, you should assess the specific risks associated with your fiduciary duties and ensure that the policy provides coverage for those risks. Additionally, you should review the policy limits to ensure that they are sufficient to cover potential claims. It is also important to consider the reputation and financial stability of the insurance company offering the policy.

Fiduciary liability insurance policies can cover a wide range of plans, including retirement plans, employee benefit plans, health and welfare plans, and even non-qualified deferred compensation plans. It is important to understand the specific types of plans covered by the policy to ensure that you have the appropriate coverage for your fiduciary responsibilities.

In conclusion, fiduciary liability insurance is a crucial form of protection for individuals and organizations that have fiduciary responsibilities. It provides coverage for potential claims and can help safeguard your financial stability. When considering FLI, it is important to understand the coverage provided, the exclusions, and the specific needs of your fiduciary duties. Shield Insurance Agency represents over 40 insurance companies and can help you find the right FLI policy for your needs. Contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK, and an agent will be in touch soon.

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Commercial General Liability Insurance

Commercial General Liability Insurance: The Ultimate Guide to Understanding

Posted on by Shield Insurance Agency

Shield Insurance Blog | Commercial General Liability Insurance | Contact Comercial Specialist TJ Simmons

Commercial general liability insurance (CGL) is a crucial component of any business’s risk management strategy. It provides coverage for a wide range of liabilities that a business may face, protecting it from financial losses due to lawsuits and claims. In this blog post, we will explore what is covered by a commercial general liability insurance policy and why it is essential for businesses of all sizes.

Understanding Commercial General Liability (CGL)

Commercial general liability insurance, also known as CGL, is a type of insurance policy that provides coverage for third-party claims against a business for bodily injury, property damage, personal and advertising injury, and medical payments. It is designed to protect businesses from financial losses resulting from lawsuits and claims filed by customers, clients, or other third parties.

Understanding the Special Considerations

When purchasing commercial general liability insurance, there are several special considerations that businesses need to keep in mind. These considerations include the type of business, the industry it operates in, the size of the business, and the specific risks it faces. It is crucial to work with an experienced insurance agent who can help assess the unique needs of the business and tailor the insurance policy accordingly.

Here are some Examples of Commercial General Liability

Commercial general liability insurance covers a wide range of liabilities that businesses may face. Some examples of situations where CGL insurance would provide coverage include:

  • A customer slips and falls in a retail store, resulting in injuries. CGL insurance would cover the medical expenses and any legal costs associated with the claim.
  • A contractor accidentally damages a client’s property while working on a construction project. CGL insurance would cover the cost of repairing or replacing the damaged property.
  • A business is accused of copyright infringement in its advertising materials. CGL insurance would cover the legal costs associated with defending against the claim.

How Much Does Commercial General Liability Insurance Cost?

The cost of commercial general liability insurance varies depending on several factors, including the size of the business, the industry it operates in, the location, and the coverage limits. It is essential to work with an insurance agent who can provide a customized quote based on the specific needs of the business.

What Is Not Covered Under Commercial General Liability Insurance?

While commercial general liability insurance provides broad coverage, there are certain exclusions that businesses need to be aware of. Some common exclusions include:

  • Professional liability: CGL insurance does not cover claims arising from professional services or advice provided by the business. For this, businesses may need to consider professional liability insurance.
  • Employee injuries: CGL insurance does not cover injuries to employees. Businesses are required to have workers’ compensation insurance to cover employee injuries.

What is Coverage A: Bodily Injury and Property Damage Liability

Coverage A of a commercial general liability insurance policy provides protection against claims for bodily injury and property damage caused by the business’s operations, products, or premises. It covers medical expenses, legal costs, and damages awarded to the injured party.

What is Coverage B: Personal and Advertising Injury

Coverage B of a commercial general liability insurance policy provides protection against claims for personal and advertising injury. This includes claims for libel, slander, defamation, copyright infringement, and false advertising. It covers legal costs and damages awarded to the injured party.

What is Coverage C: Medical Payments

Coverage C of a commercial general liability insurance policy provides coverage for medical expenses incurred by a third party due to an accident on the business’s premises or as a result of the business’s operations. It covers medical expenses regardless of fault and can help prevent small claims from escalating into larger lawsuits.

What are the guidelines for Purchasing commercial general liability insurance?

When purchasing commercial general liability insurance, businesses should consider the following guidelines:

  • Assess the risks: Identify the specific risks that the business faces and determine the appropriate coverage limits.
  • Work with an experienced agent: Find an insurance agent who specializes in commercial insurance and can help assess the unique needs of the business.
  • Compare quotes: Obtain quotes from multiple insurance companies to ensure that the business is getting the best coverage at the most competitive price.

What Additional liability coverages should be considered

In addition to commercial general liability insurance, businesses may need to consider additional liability coverages depending on their specific needs. Some common additional liability coverages include:

  • Directors and Officers liability: Provides coverage for claims against directors and officers for alleged wrongful acts in the performance of their duties.
  • Liquor liability: Provides coverage for claims arising from the sale or service of alcoholic beverages.
  • Pollution liability: Provides coverage for claims arising from pollution or environmental damage caused by the business’s operations.

Shield Insurance Agency represents over 40 insurance companies

At Shield Insurance Agency, we understand the importance of having the right insurance coverage for your business. As an independent insurance agency, we represent over 40 insurance companies, allowing us to find the best coverage at the most competitive price. Contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK and an agent will be in touch soon.

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Business Owners: The Surprising Ways BOP and General Liability Differ

Business Owners: The Surprising Ways BOP and General Liability Differ

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Shield Insurance Blog | Business Owners | Business Insurance | Start A Quote Today!

How is a Business Owners Policy (BOP) Different from General Liability?

When it comes to protecting your business, insurance is a must. However, with so many different types of insurance policies available, it can be confusing to determine which one is right for you. Business owners often consider two common types of insurance: a Business Owners’ Policy (BOP) and General Liability insurance. While they may seem similar, there are some key differences between the two. In this blog post, we will explore how a BOP differs from general liability and help you understand which one may be the best fit for your business.

What is a Business Owners Policy (BOP)?

A Business Owners Policy, or BOP, is a comprehensive insurance package for small to medium-sized businesses. It combines several types of coverage into one policy, providing a convenient and cost-effective solution for business owners. A BOP typically includes property, liability, and business interruption insurance.

What Does a BOP Cover?

A BOP provides coverage for a wide range of risks that businesses commonly face. Here are some of the key coverages included in a typical BOP:

1. Property Insurance: This coverage protects your business property, including buildings, equipment, inventory, and furniture, against damage or loss caused by fire, theft, vandalism, or other covered perils.

2. Liability Insurance: Liability insurance protects your business from claims of bodily injury or property damage caused by your products, services, or operations. It also covers legal fees and settlements if you are sued.

3. Business Interruption Insurance: If your business is forced to temporarily close due to a covered event, such as a fire or natural disaster, business interruption insurance can help cover lost income and ongoing expenses, such as rent and payroll.

What Isn’t Covered by a Business Owners Policy?

While a BOP provides comprehensive coverage, there are some risks that are typically not covered. These may include:

  • Professional Liability: If your business provides professional services, such as consulting or advice, you may need a separate professional liability insurance policy to protect against claims of negligence or errors.
  • Workers’ Compensation: If you have employees, you are required by law to carry workers’ compensation insurance, which provides coverage for medical expenses and lost wages if an employee is injured on the job.
  • Auto Insurance: If your business owns vehicles or if employees use their personal vehicles for business purposes, you will need a separate commercial auto insurance policy to cover accidents and liability.

What Other Types of Coverages Are Needed?

In addition to a BOP, there are several other types of insurance coverage that may be necessary depending on the nature of your business. These may include:

  • Professional Liability Insurance: This coverage is essential for businesses that provide professional services, such as doctors, lawyers, or architects. It protects against claims of negligence, errors, or omissions.
  • Cyber Liability Insurance: In today’s digital age, businesses are increasingly vulnerable to cyber threats. Cyber liability insurance provides coverage for data breaches, cyberattacks, and other cyber-related risks.
  • Employment Practices Liability Insurance: This coverage protects your business against claims of wrongful termination, discrimination, harassment, or other employment-related issues.

Do You Need a Business Owners Policy?

Whether or not you need a BOP depends on the size and nature of your business. If you are a small to medium-sized business owner, a BOP can provide comprehensive coverage at an affordable price. It offers convenience by combining multiple coverages into one policy, saving you time and money. However, if your business has unique risks or requires specialized coverage, you may need additional policies to ensure adequate protection.

What Types of Businesses Are Eligible for a Business Owners Policy?

A BOP is typically designed for small to medium-sized businesses that operate in low-risk industries. Some examples of eligible businesses include retail stores, restaurants, offices, and small manufacturing operations. However, eligibility requirements may vary depending on the insurance company, so it’s best to consult with an insurance agent to determine if your business qualifies for a BOP.

What Does a Business Owners Policy Cost?

The cost of a BOP depends on several factors, including the size of your business, the industry you operate in, and the coverage limits you choose. On average, a BOP can cost anywhere from a few hundred dollars to several thousand dollars per year. To get an accurate quote for your business, it’s best to contact an insurance agent who can assess your specific needs and provide you with a customized quote.
In conclusion, a business owner’s policy (BOP) and general liability insurance are two different types of coverage that offer varying levels of protection for your business. While a BOP provides comprehensive coverage for property, liability, and income, general liability insurance specifically covers claims of bodily injury, property damage, and personal injury.

It’s important to assess your business’s specific needs and consult with an insurance agent to determine the appropriate coverages for your situation. Shield Insurance Agency represents over 40 insurance companies and can provide you with a free quote tailored to your business’s needs. Contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK and an agent will be in touch soon.

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Understanding Michigan State Short-Term Disability Insurance: Everything You Need to Know

Short-Term Disability Insurance: Everything You Need to Know in Michigan

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Shield Insurance Blog | Short-Term Disability Insurance | Start A Quote Today!

What is Michigan State Short-Term Disability Insurance?

Short-term disability insurance is designed to provide income replacement for individuals who are unable to work due to a temporary disability. This type of insurance coverage typically lasts for a specific period, usually up to six months, and provides a percentage of the individual’s pre-disability income.

What Does Short-Term Disability Insurance Cover in Michigan?

Short-term disability insurance in Michigan covers a wide range of health conditions that prevent individuals from working. These conditions can include illnesses, injuries, surgeries, and mental health disorders. However, it is important to note that not all health conditions are covered under short-term disability insurance. Certain pre-existing conditions may be excluded from coverage.

How Does Short-Term Disability Insurance Work in Michigan?

In Michigan, short-term disability insurance is typically provided through an employer-sponsored group plan or purchased individually. When an individual becomes disabled and is unable to work, they must file a claim with their insurance provider. The insurance provider will review the claim and determine if the individual meets the criteria for disability benefits. If approved, the individual will receive a percentage of their pre-disability income for the duration of their disability.

What Health Conditions are Included and Categorically Excluded?

Short-term disability insurance in Michigan covers a wide range of health conditions, including but not limited to:

– Illnesses such as cancer, heart disease, and diabetes

– Injuries such as broken bones, sprains, and concussions

– Surgeries such as joint replacements, hernia repairs, and appendectomies

– Mental health disorders such as depression, anxiety, and bipolar disorder

However, certain health conditions may be categorically excluded from coverage. These can include pre-existing conditions, self-inflicted injuries, and disabilities caused by illegal activities.

What are the Significant Terms to Remember?

When it comes to short-term disability insurance in Michigan, there are several significant terms to remember. These include:

– Elimination period: This is the waiting period before disability benefits begin. It is typically a specified number of days after the disability occurs.

– Benefit period: This is the length of time that disability benefits will be paid. It is usually up to six months but can vary depending on the policy.

– Benefit amount: This is the percentage of the individual’s pre-disability income that will be paid as disability benefits. It is typically around 60-70% of the individual’s income.

More About Short-Term Disability Insurance

Short-term disability insurance provides individuals with financial protection during a temporary disability. It can help cover expenses such as medical bills, mortgage or rent payments, and daily living expenses. It is important to carefully review the terms and conditions of a short-term disability insurance policy to ensure that it meets your specific needs.

Can I Get Temporary Disability After Surgery?

Yes, short-term disability insurance can provide coverage for individuals who are unable to work due to surgery. Whether it is a minor procedure or a major surgery, short-term disability insurance can help replace a portion of the individual’s income during their recovery period.

What are the Common Procedures that Lead to Short-Term Disability?

Several common procedures can lead to short-term disability, including:

– Joint replacements: Procedures such as hip or knee replacements can require a significant recovery period and may result in temporary disability.

– Hernia repairs: Hernia repairs can be a major surgery that requires time off work for recovery.

– Appendectomies: An appendectomy is the surgical removal of the appendix and can result in a temporary disability.

What are the Options After Wrongful Disability Denials?

If an individual’s short-term disability claim is wrongfully denied, there are options available to appeal the decision. It is important to gather all relevant medical documentation and evidence to support the claim. Seeking legal advice from an experienced attorney specializing in disability insurance can also be beneficial in navigating the appeals process.

What are the Common Red Flags that Indicate Bad-Faith Delays or Wrongful Denials of Disability Coverage?

Several common red flags may indicate bad faith delays or wrongful denials of disability coverage. These can include:

– Unreasonable delays in processing the claim

– Inconsistent or contradictory reasons for denial

– Failure to provide a clear explanation for the denial

– Ignoring or misrepresenting medical evidence

– Failing to consider all relevant information

If any of these red flags are present, it may be necessary to seek legal assistance to ensure that the individual’s rights are protected.

Shield Insurance Agency Represents Over 40 Insurance Companies

Shield Insurance Agency is a trusted insurance agency that represents over 40 insurance companies. They specialize in providing individuals with the best insurance coverage options to

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Loss Ratio Can Drastically Affect Business Insurance Premiums

Loss Ratio Can Drastically Affect Business Insurance Premiums – Don’t Miss Out!

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Shield Insurance Agency Blog | Loss Ratio | Start A Quote Today!

When it comes to business insurance, one of the key factors that affect your premiums is your loss ratio. But what exactly is a loss ratio? In simple terms, it is the ratio of the losses you have experienced to the premiums you have paid. It is a measure of how much you have claimed from your insurance company compared to how much you have paid in premiums.

Commercial Insurance

For businesses, the loss ratio is an important metric that insurance companies use to determine the risk associated with insuring your business. A high loss ratio indicates that your business is more likely to make claims, which means that the insurance company will have to pay out more in claims. As a result, they will charge you higher premiums to compensate for the increased risk.

How a Loss Ratio Works

To understand how a loss ratio works, let’s consider an example. Let’s say your business paid $10,000 in premiums over the course of a year, and during that same year, you made claims totaling $5,000. In this case, your loss ratio would be 0.5, or 50%. This means that for every dollar you paid in premiums, you claimed 50 cents.

Loss Ratio vs. Benefits-Expense Ratio

It’s important to note that the loss ratio is different from the benefits-expense ratio. While the loss ratio measures the claims you have made compared to the premiums you have paid, the benefits-expense ratio measures the benefits paid out by the insurance company compared to the expenses incurred by the insurance company.

Deductible

Another factor that affects your loss ratio is the deductible. The deductible is the amount you have to pay out of pocket before your insurance coverage kicks in. A higher deductible means that you will have to pay more out of pocket for each claim, which can lower your loss ratio. On the other hand, a lower deductible means that you will have to pay less out of pocket for each claim, which can increase your loss ratio.

Affordable Protection for Your Business and Family

Understanding how your loss ratio affects your business insurance premiums is crucial for ensuring that you have affordable protection for your business and family. By maintaining a low loss ratio, you can demonstrate to insurance companies that your business is a low-risk investment, which can result in lower premiums.

Shield Insurance Agency represents over 40 insurance companies, which means that we can help you find the best coverage at the most affordable price. Our experienced agents will work with you to assess your needs and find the right insurance policy for your business. Whether you need general liability insurance, property insurance, or workers’ compensation insurance, we have you covered.

Contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK and an agent will be in touch soon. We understand that every business is unique, and we will tailor our services to meet your specific needs. Don’t let high insurance premiums eat into your profits. Let Shield Insurance Agency help you find affordable protection for your business and family.

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Thriving Through Turbulence: How Commercial Insurance Protects Your Michigan Business

Thriving Through Turbulence: How Commercial Insurance Protects Your Michigan Business

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Shield Insurance Blog | Commercial Insurance | Meet TJ | Start A Quote Today!

Michigan’s businesses face a variety of daily challenges that can negatively impact their businesses. Commercial insurance helps Michigan business owners protect their most important investments. 

How Your Business Can Thrive Through Turbulence

Smart business owners mitigate the challenges that affect business growth, operations, and financial stability by investing in business insurance. 

Why Michigan Businesses Need Commercial Insurance 

When businesses experience financial turbulence, business insurance acts as a shield to safeguard your business against turbulence. For example, unexpected events like floods or natural disasters can end a business without commercial insurance. 

Michigan Commercial Insurance Coverages

Business insurance policies provide a financial security blanket that shields Michigan business owners from loss. 

Legal Disputes

Commercial insurance helps to protect Michigan business owners when legal disputes about business operations, products or services. 

Lawsuits

Avoid paying out-of-pocket if your business is sued by a customer, vendor, or partner. 

Workers Compensation Claims

Do you have workers injured on the job? Protect your business from work stoppage when workers’ compensation claims threaten your bottom line. 

Slip and Fall Accidents

Accidents happen, and when accidents happen on your business property, the results can be costly. Shield your Michigan business from loss with a protective policy. 

Not sure which commercial insurance plan is right for you? Talk to the Michigan business insurance experts at Shield Insurance Agency. 

Get Commercial Insurance in Michigan!

Our knowledgeable insurance agents can walk you through the steps to choose the best business insurance policy to protect your business assets in Michigan. We can also talk to you about bundling your business insurance policy with other forms of business insurance to best meet your needs. Contact Shield Insurance Agency for a quote today!

Shield Insurance Agency represents over 40 insurance companies. Contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK and an agent will be in touch soon.

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Unveiling the Hidden Secrets: General Liability vs. Professional Liability - Which One Protects You Better?

Unveiling the Hidden Secrets: General Liability vs. Professional Liability – Which One Protects You Better?

Posted on by Shield Insurance Agency

Shield Insurance Blog | General Liability vs Professional Liability | Start A Quote Today!

What is the difference between general liability and professional liability?

When it comes to insurance, there are many different types of coverage available to protect individuals and businesses from various risks and liabilities. Two common types of insurance that often get confused are general liability insurance and professional liability insurance. While they may sound similar, they actually serve different purposes and cover different areas of risk. In this blog post, we will explore the differences between general liability and professional liability insurance, as well as their similarities and benefits.

What is general liability insurance?

General liability insurance is a type of coverage that provides protection for businesses against claims of bodily injury, property damage, and personal injury. It is designed to cover the costs associated with legal defense, settlements, and judgments that may arise from these types of claims. General liability insurance is typically purchased by businesses to protect themselves from accidents or incidents that may occur on their premises or as a result of their operations.

What does general liability insurance pay for?

General liability insurance pays for a variety of expenses related to claims made against a business. This can include medical expenses for injuries sustained by third parties, repairs or replacement of damaged property, legal fees, and settlements or judgments awarded to the injured party. It can also cover advertising injuries, such as defamation or copyright infringement, and certain types of personal injuries, such as false arrest or invasion of privacy.

What is professional liability insurance?

Professional liability insurance, also known as errors and omissions insurance, is a type of coverage that provides protection for professionals against claims of negligence, errors, or omissions in the performance of their professional duties. It is designed to cover the costs associated with legal defense, settlements, and judgments that may arise from these types of claims. Professional liability insurance is typically purchased by individuals or businesses that provide professional services, such as doctors, lawyers, architects, consultants, and contractors.

How are general liability and professional liability insurance similar?

While general liability and professional liability insurance cover different areas of risk, they do share some similarities. Both types of insurance provide protection against claims that may result in financial loss for the insured party. They also both cover the costs associated with legal defense, settlements, and judgments. Additionally, both types of insurance typically have a deductible, which is the amount the insured party must pay out of pocket before the insurance coverage kicks in.

However, there are also some key differences between general liability and professional liability insurance. General liability insurance is broader in scope and covers a wider range of risks, such as accidents, injuries, and property damage. It is typically purchased by businesses to protect themselves from claims that may arise from their operations. On the other hand, professional liability insurance is more specific and covers claims related to professional negligence, errors, or omissions. It is typically purchased by individuals or businesses that provide professional services.

Another difference between the two types of insurance is the cost. General liability insurance is generally more affordable than professional liability insurance, as it covers a broader range of risks and is considered to be less specialized. The cost of professional liability insurance can vary depending on the type of profession, the level of risk involved, and the amount of coverage needed.

In conclusion, general liability insurance and professional liability insurance are two different types of coverage that serve different purposes and cover different areas of risk. General liability insurance provides protection against claims of bodily injury, property damage, and personal injury, while professional liability insurance provides protection against claims of professional negligence, errors, or omissions. While they have some similarities, such as covering legal defense costs and having a deductible, they also have key differences in terms of scope, cost, and the types of risks they cover.

If you are in need of general liability or professional liability insurance, Shield Insurance Agency can help. Shield Insurance Agency represents over 40 insurance companies and can provide you with affordable and comprehensive coverage to protect you and your family. Contact Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK and an agent will be in touch soon.

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Employment Practices Liability Insurance Do You Need It - Shield Insurance Blog

Employment Practices Liability Insurance: Do You Need It?

Posted on by Shield Insurance Agency

Shield Insurance Agency Blog | Employment Practices Liability | Contact TJ, Shield Commercial Specialist for details

Does my business need employment practices liability (ELPI)?

Employment practices liability insurance (EPLI) is a type of insurance coverage that protects businesses against claims and lawsuits related to employment practices. It provides coverage for legal fees, settlements, and judgments that may arise from allegations of wrongful termination, discrimination, harassment, or other employment-related issues. In today’s litigious society, it is essential for businesses to have this type of insurance to safeguard their financial stability and reputation.

So, how does employment practices liability insurance protect your business? Let’s take a closer look. 

First and foremost, EPLI provides coverage for legal expenses. If your business is faced with an employment-related claim or lawsuit, the costs of hiring an attorney and defending your case can quickly add up. EPLI can help cover these expenses, ensuring that your business has the necessary resources to mount a strong defense.

In addition to legal fees, EPLI also covers settlements and judgments. If your business is found liable for an employment-related claim, you may be required to pay damages to the affected employee. These damages can include back pay, front pay, emotional distress, and even punitive damages in some cases. Without EPLI, these costs could be financially devastating for your business. However, with the right coverage in place, you can rest assured knowing that your insurance will help cover these expenses.

So, what exactly does employment practices liability insurance cover? EPLI typically provides coverage for a wide range of employment-related claims, including but not limited to:

– Wrongful termination: If an employee believes they were terminated unfairly or without just cause, they may file a wrongful termination claim against your business. EPLI can help cover the costs associated with defending against these claims.

– Discrimination: Claims of discrimination based on factors such as race, gender, age, or disability are unfortunately common in the workplace. EPLI can provide coverage for legal expenses and damages resulting from these claims.

– Harassment: Allegations of harassment, whether it be sexual, verbal, or based on other protected characteristics, can have serious consequences for your business. EPLI can help protect your business by covering the costs of defending against these claims.

– Retaliation: If an employee believes they were retaliated against for engaging in protected activities, such as reporting discrimination or harassment, they may file a retaliation claim. EPLI can provide coverage for legal expenses and damages resulting from these claims.

While employment practices liability insurance provides valuable coverage, it’s important to note that it does not cover every type of claim. For example, EPLI typically does not cover bodily injury or property damage claims, as these are typically covered under general liability insurance. It’s important to review your policy carefully to understand what is and isn’t covered.

Now that we understand what employment practices liability insurance is and how it protects your business, let’s discuss who needs this type of coverage. In general, any business that has employees should strongly consider obtaining EPLI. However, certain industries may have a higher risk of employment-related claims and may benefit even more from this coverage. These industries include healthcare, hospitality, retail, and professional services.

To determine if your business is eligible for employment practices liability insurance, there are a few factors to consider. Insurance companies typically look at the size of your business, the number of employees you have, and your history of employment-related claims. It’s important to work with an experienced insurance agent who can help assess your needs and find the right coverage for your business.

Now, you may be wondering how much employment practice liability insurance costs. The cost of EPLI can vary depending on several factors, including the size of your business, the industry you operate in, and your claims history. It’s best to reach out to an insurance agent who can provide you with a personalized quote based on your specific circumstances.

Lastly, it’s important to understand the difference between employment practices liability insurance and workers’ compensation insurance. While both types of insurance provide coverage for employment-related claims, they serve different purposes. Workers’ compensation insurance specifically covers injuries or illnesses that occur in the workplace, while EPLI focuses on claims related to employment practices. It’s important to have both types of coverage to fully protect your business.

In conclusion, employment practices liability insurance is a crucial form of coverage for businesses of all sizes. It protects your business against costly claims and lawsuits related to employment practices, ensuring that you have the financial resources to defend your case and cover any damages awarded. To learn more about employment practices liability insurance and how it can benefit your business, reach out to Shield Insurance Agency. With their expertise and access to over 40 insurance companies, they can help you find the right coverage at the best possible price. Call or text Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK and an agent will be in touch soon.

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Small Business Income Insurance: Protecting Your Business and Your Income

Secure Your Business with Small Business Income Insurance

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Shield Insurance Blog | Business Income Insurance | Contact TJ Simmons, Shield Business Insurance Specialist

Business Income Insurance.

Running a small business comes with its own set of challenges and risks. One of the most important aspects of managing a business is ensuring that you have the right insurance coverage in place to protect your assets and income. One type of coverage crucial for small businesses is Business Income or Extra Expense coverage. In this blog post, we will explore what this coverage entails and how it can provide important protection for your business.

What is Business Income Insurance or Extra Expense coverage?

Business Income coverage, also known as Business Interruption coverage, is designed to protect your business income in the event of a covered loss that causes a suspension of your operations. This coverage can help replace lost income and cover ongoing expenses such as rent, utilities, and payroll while your business is unable to operate.

Extra Expense coverage, on the other hand, covers additional expenses that you may incur to minimize the impact of a covered loss on your business. This can include expenses such as renting temporary office space, purchasing new equipment, or hiring additional staff to expedite the recovery process.

Is Business Income Insurance coverage subject to a deductible?

Yes, Business Income coverage is typically subject to a deductible. The deductible is the amount that you, as the insured, are responsible for paying before the insurance coverage kicks in. Reviewing your policy to understand the specific deductible amount and any other terms and conditions that may apply is important.

Here is an example of how these coverages may provide a business with important protection:

Imagine you own a small retail store that is hit by a tornado, causing significant damage to your building. As a result, you are forced to suspend operations while repairs are being made. During this time, you are unable to generate any income and still have ongoing expenses such as rent and utilities.

In this scenario, your Business Income coverage would kick in to replace the income you would have earned during the suspension period. It would also cover your ongoing expenses, ensuring that your business can continue to meet its financial obligations.

What if my building sustains significant tornado damage and, as a result, I have to suspend operations? When would my Business Income coverage begin? When would it end?

Your Business Income coverage would typically begin on the date of the covered loss, in this case, the date the tornado caused damage to your building. It would continue until the date when your business can resume normal operations or until the coverage limit is exhausted, whichever comes first.

How will the amount of my Business Income loss be determined?

The amount of your Business Income loss will be determined based on your financial records and the financial performance of your business before the covered loss. This can include factors such as your net income, operating expenses, and any other relevant financial information.

What information will I need to provide to support my Business Income Insurance claim?

To support your Business Income claim, you will typically need to provide documentation such as financial statements, tax returns, and other records that demonstrate your business’s income and expenses. It is important to keep accurate and up-to-date financial records to ensure a smooth claims process.

Do I have coverage for paying my employees while my business is not operating?

Yes, Business Income coverage can include coverage for paying your employees while your business is not operating. This can help ensure that your employees are taken care of during a temporary suspension of operations.

What happens if, once I resume operations, I continue to experience a loss of business income?

If you continue to experience a loss of business income even after resuming operations, you may be eligible for Extended Business Income coverage. This coverage can provide additional protection for an extended period, allowing your business to recover from the loss and regain its financial stability.

How will I know if my policy provides Extra Expenses or Extended business insurance income coverage?

You should review your policy documents or contact your insurance agent to determine if your policy provides Extra Expense or Extended Business Income coverage. They will be able to provide you with the details of your coverage and help you understand any additional endorsements or options that may be available to you.

In conclusion, Business Income or Extra Expense coverage is an essential component of insurance protection for small businesses. It provides financial support during a temporary suspension of operations and helps cover ongoing expenses. By understanding the details of your coverage and working with a knowledgeable insurance agent, you can ensure that your business is adequately protected.

Shield Insurance Agency represents over 40 insurance companies and can provide you with a free quote to help you find the right coverage for your small business. Call or text Shield Insurance Agency at (616) 896-4600 for a free quote today or start the quoting process by visiting this LINK and an agent will be in touch soon. Protect your business, protect your income, and protect your family’s future.

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To help you better understand this complex industry, we have compiled a comprehensive list of insurance terms that you should be familiar with.

Know Your Insurance Terms for Peace of Mind

Posted on by Shield Insurance Agency

Shield Insurance Agency Blog | Insurance Terms | Start a Quote Today!

Insurance is an essential aspect of our lives, providing us with the necessary protection and peace of mind. However, navigating the world of insurance can be overwhelming, especially with the numerous terms and jargon often used. To help you better understand this complex industry, we have compiled a comprehensive list of insurance terms that you should be familiar with. Whether you are a seasoned policyholder or a newcomer to the world of insurance, this list will serve as a valuable resource.

Insurance Terms

1. Premium: The amount of money you pay to the insurance company in exchange for coverage. Premiums can be paid monthly, quarterly, or annually, depending on the policy.

2. Deductible: The amount of money you must pay out of pocket before your insurance coverage kicks in. For example, if you have a $500 deductible and file a claim for $1,000, you will pay the first $500, and the insurance company will cover the remaining $500.

3. Policy: A contract between you and the insurance company that outlines the terms and conditions of your coverage. It specifies what is covered, the limits of coverage, and any exclusions or conditions.

4. Coverage: The protection provided by an insurance policy. It can include various types, such as auto, home, health, life, and more.

5. Liability: The legal responsibility for any damages or injuries caused to others. Liability coverage is designed to protect you in case you are held responsible for an accident or injury.

6. Claim: A formal request made by the policyholder to the insurance company for compensation or reimbursement for a covered loss or damage.

7. Underwriting: The process of evaluating an applicant’s risk and determining the terms and conditions of their insurance policy. It involves assessing factors such as age, health, driving record, and more.

8. Exclusion: Specific situations or conditions that are not covered by an insurance policy. It is important to review your policy carefully to understand what is excluded from coverage.

9. Rider: An additional provision or amendment to an insurance policy that modifies or expands the coverage. Riders are often used to add specific coverage options or increase policy limits.

10. Agent: A licensed professional who represents an insurance company and helps individuals or businesses find the right insurance coverage. They can provide guidance, answer questions, and assist with the claims process.

11. Insured: The person or entity covered by an insurance policy. This can be an individual, a family, or a business.

12. Loss: The reduction in value or damage to property or assets covered by an insurance policy. It can be due to theft, accident, natural disaster, or other covered events.

13. No-claims bonus: A discount or reward given by insurance companies to policyholders who do not file any claims during a specific period. It encourages safe driving and responsible behavior.

14. Comprehensive coverage: An insurance policy that provides protection against a wide range of risks and perils, including theft, vandalism, fire, and natural disasters.

15. Grace period: The additional time given to policyholders to pay their premium after the due date without incurring a penalty or losing coverage.

16. Subrogation: The process by which an insurance company seeks reimbursement from a third party who is responsible for the loss or damage covered by the policy. It allows the insurance company to recover the amount paid to the policyholder.

17. Actuary: A professional who uses statistical data and mathematical models to assess risk and determine insurance premiums. They play a crucial role in pricing policies and ensuring the financial stability of insurance companies.

18. Umbrella policy: An additional liability insurance policy that provides coverage beyond the limits of your primary policies. It offers an extra layer of protection against high-cost claims or lawsuits.

19. Depreciation: The decrease in the value of an asset over time due to wear and tear or obsolescence. Insurance policies often take depreciation into account when determining the amount of compensation for a covered loss.

20. Endorsement: A written amendment or addition to an insurance policy that changes the terms or coverage. It can be used to add or remove coverage options, increase or decrease policy limits, or modify other policy provisions.

Understanding these insurance terms will empower you to make informed decisions when it comes to protecting yourself, your family, and your assets. Remember, insurance is not just a financial product; it is a shield that safeguards your future. If you have any questions or need assistance in finding the right insurance coverage, contact Shield Insurance Agency at (616) 896-4600 for a free quote today. You can also start the quoting process by visiting this LINK, and an agent will be in touch soon. Stay protected and enjoy peace of mind with comprehensive insurance coverage.

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