There are many financial considerations that go into being a property lessor or lessee. As you embark on either process, one major consideration should be lease insurance. As you begin to look at this insurance, there are some principles to follow to help ensure all parties are financially secure and protected.
Be Prepared To Pay Upfront
It may be tempting to look for the lowest rate or the biggest discount, but always make sure you know what you’re buying. Saving money at the outset may end up costing you much more if there are problems later.
Be Friendly With Your Broker
Your broker can help you save money without cutting coverage. Lease insurance is complicated and broad, and an expert can help you ensure that you have the coverage you require without paying more for extras that you don’t need.
Understand Your Lease
Always thoroughly read and understand the lease. Whichever side of the table you’re on, understanding what coverage is being offered is key to protecting your finances, avoiding surprises and maintaining a healthy lessor-lessee relationship.
Understanding lease insurance from either the lessor or lessee perspective can initially seem complicated. Luckily, following some basics precautionary principles can help make sure that negotiations are fair and your coverage is secure.
Most people are familiar with standard workers’ compensation insurance policies covering on-the-job injuries and illnesses for employees. However, some industries require a more specialized version of this coverage.
All businesses that work near navigable waters must have U.S. Longshore and Harbor coverage for their employees. The federal government requires this type of insurance under the Longshore and Harbor Workers’ Compensation Act of 1927.
What Are the Protections of USL&H Coverage?
This kind of policy supersedes other workers’ comp laws because the federal government mandates its use. Some covered risks include:
- Disability and death benefits
- Weekly allowance payments for rehabilitation services required after an injury
- Loss of wages benefits due to partial disabilities
- Legal fees for claimants challenging a denial
- Spouse benefits in the event of permanent disability or death.
What Types of Workers Need This Insurance?
Employees who work on the water have different requirements than those that work adjacent to navigable seas. Businesses that must secure this policy type include:
- Harbor workers
- Maritime construction workers
- Dock builders
- Marine contractors
Employers with companies that conduct business near the water must have adequate USL&H coverage to cover illnesses or injuries sustained by employees while performing job tasks. Benefits depend on the worker’s earning capacity and wage loss following an injury.
You work hard to provide your clients with the best services available and your company has taken the necessary steps to prevent and detect errors and omissions during the brokering process. However, the duties of a mortgage broker are many and varied, and mistakes do occasionally occur. These can easily lead to costly lawsuits, which is why errors and omissions insurance should be a component of your company’s risk management strategy.
What Does It Cover?
Professional indemnity for mortgage broker typically covers a wide range of errors and omissions arising during the performance of your professional duties. Examples of common claims include:
- Inaccurate counseling or advice
- Failure to disclose or wrongful disclosure of terms
- Unlawful foreclosure and eviction
- Perceived discrimination in underwriting
- Incorrect ARM adjustments
Are There Any Exclusions?
While E&O policies provide protection from many different claims, there are some exclusions. These primarily result from deliberately unethical or illegal actions. A policy will not provide coverage if a claimant proves that you or your company has, for example, engaged in intentionally dishonest or fraudulent acts or that there has been a conflict of interest from which your company has profited.
Despite these few exceptions, errors and omissions insurance provides vital protection from potentially expensive litigation. An expert in professional liability insurance can ensure that your brokering company is prepared for any eventuality.
If your business relies on one or a few key people whose death or departure would greatly affect your ability to continue operations as usual, you probably need key staff coverage, even if you don’t know it. This form of life insurance is typically taken out for company founders, top tier decision-making executives, and other professionals whose day to day guidance steers the entire organization. While it’s easy to see how large companies could require these policies, they’re actually vital for small companies, especially those that are still founder-run.
Protect Your Business Finances From Disruption
The main goal of key staff insurance is to provide a financial buffer during the turbulence that comes in the wake of the loss of a vital member of your strategic team. When these professionals depart under normal circumstances, you have the chance to plan for it and to work with a transition team to bring in new talent that can fill the role. This isn’t so when someone unexpectedly passes away, and the sudden vacuum can devastate the daily processes that keep companies moving. Often, insurance is not only taken out for company leadership, but also for specialized positions where replacement staff could be difficult to find. For an evaluation of your company’s needs and likely key roles, talk to key staff insurance professionals today.
The statistics for work-related injuries are shocking. 2.3 million people die every year due to work-related accidents and injuries. Outside of the deaths, there are 340 million work-related injuries and 160 million work-related illnesses that take place each year. If you are not covered with a workers’ compensation policy and still want to be insured in case something goes wrong, occupational accident insurance may be for you.
How Does Occupational Accident Insurance Protect You?
This type of insurance provides coverage to employees who are injured or killed in a job related incident. It stands as an alternative to workers’ compensation and can be extremely appealing due to its much lower cost. Occupational accident insurance is about 50% cheaper than workers’ compensation. If your company does not need all the benefits that a comprehensive workers’ compensation policy provides, this type of insurance may be your best option.
While occupational accident insurance is much cheaper than workers’ compensation, it does come with drawbacks. The biggest of these drawbacks is the fact that occupational accident insurance does not cover legal expenses. Because of this, business owners need to be aware that they are assuming a certain amount of financial risk by using this type of insurance.
As the owner of a business, you need to insure your employees in case any of them are injured or killed at work. Occupational accident insurance can be a great alternative to workers’ compensation if you don’t need all the benefits that workers’ compensation provides.
Operating a marina or yacht club carries with it a significant number of risks. As such, your insurance coverage needs to be able to accommodate your business in the areas of marina liability, property protection and employee protection.
Marina Liability Protection
Liability insurance is imperative when you operate a yacht club or marina. There are specific types of coverage that are geared towards your type of business, such as marina operator’s legal liability protection. General liability covers your business from third party claims of bodily injury, property damage and reputational harm.
Property insurance is imperative for a marina or yacht club. You need to make sure that you have coverage for the various types of property found at your place of business. This may include:
- Real estate
- Personal property
- Docks, piers and wharves
- Owned vessels
- Operational equipment and tools
Federal law requires those who operate businesses on or adjacent to water to carry a specific type of worker’s compensation insurance called United States Longshore & Harbor insurance. USL&H coverage is similar to state-level worker’s compensation, but the requirement to carry this type of insurance supersedes state laws.
Make sure your marina or yacht club is fully protected. An insurance company that specializes in marine policies can ensure you have the marina liability, property and employee protection you need.
Can subcontractors drive company vehicles? The short answer is yes. As with all questions related to business relationships, however, the complete answer is that it depends on the circumstances and risks involved.
Subcontractors usually supply their own tools, rather than relying on a client to provide them. Allowing a subcontractor to drive a company vehicle blurs the line between employee and contractor, and can lead to the breakdown of a good working relationship. Situations do sometimes arise in which it is simply more convenient or cost-effective for both parties if the contractor uses a company vehicle. In these cases, the decision whether to allow it is up to you
Unless specifically named on your policy, a subcontractor is not covered by your auto insurance. Therefore, it is a good idea to ask for proof of insurance before allowing one to drive. You also should consider purchasing professional indemnity insurance, sometimes called comprehensive independent contractor liability insurance. This type of policy will protect you in case a contractor is involved in an accident that results in a lawsuit.
It is perfectly legal for a subcontractor to drive a company vehicle, and sometimes it just makes sense to do so. If you decide to allow this practice, always ask for proof of insurance, and be sure your own policies are up to date.
If you’ve been considering diversifying your heat and oil business to include propane delivery services, this can be a profitable move. However, there are also many things to keep in mind before jumping into this new endeavor.
Going into the propane industry will require a large financial investment. It could put a significant financial strain on the rest of your business. Many of the upfront costs that you will need to consider include bobtails, storage families and tanks for your consumers.
If your business is in a strong position financially, then this move can make a lot of sense. For businesses that are already struggling, it can make their situation worse.
Because propane is a hazardous chemical, your employees will have to go through additional training in safe housing and delivering propane. Some of the hazards include:
- Propane inhalation
- Direct skin contact
- Correct use of protective equipment
- Environmental disasters
These risks will necessitate the addition of propane dealers insurance to your commercial policy. If there is a mishap, you want to ensure your business is protected.
Propane can appear to be a lucrative business, and it can be if you have the resources to get a new business off the ground. Understand the risks and be cautious as you enter into the industry.
Are you planning to spend time on the water? Then one important thing you need to do is file a float plan. This is a critical and often overlooked part of boater safety. A plan provides comprehensive information to an individual who will help oversee your trip itinerary. If you do not make it to your destination as designated, they can notify the proper authorities to make certain you are safe.
Float Plan Details
This is the type of information you should include in your float plan:
- Personal data: Write down your name and phone number.
- Boat specifications: Provide the type, make, model, year, color, length, registration number, survival equipment and the name of the vessel (if applicable).
- Individuals onboard: Give the names, addresses and phone number of all people on board the vessel and be sure to include yourself.
- Trip plan: Detail your departure and destination information, leave and arrival times and dates, and any stops while on the journey.
- Vehicle and trailer information: Supply information about your vehicle and trailer and give complete registration information for both.
Always clearly note your expected return date and specify any authorities to be notified if you fail to get back on time.
The experienced insurers at https://www.marinersins.com/ also remind boaters that proper insurance coverage is necessary to keep you safe on the water. Float plans and insurance are good common-sense ways to protect you on any boat outing.
When a company’s directors and officers are primarily responsible for its managerial functions and fiduciary duties, both the company and the directors and officers can face liability in the event of losses or damages resulting from wrongdoing. Companies need to protect both themselves and their directors and officers against all possible claims.
Examples of D&O Claims
Typically, D&O claims arise from situations in which directors or corporate officers are alleged to have failed to perform their management duties lawfully:
- A company was sued for a business tort when it tried to recruit a competitor’s employee who was bound by a non-compete agreement
- Corporate officers were alleged to have failed to disclose material information to investors
- A company made charges immediately before filing for bankruptcy, fraudulently misrepresenting its ability to pay what was charged
The Financial Impact of D&O Claims
When a company and its directors or officers are sued jointly or severally, litigation costs alone can amount to tens or hundreds of thousands of dollars. Likewise, if a company loses a suit, they and their directors and officers may be ordered to pay hundreds of thousands of dollars.
Companies need to ensure that their insurance coverage will apply to claims made directly against directors and officers. It’s advisable that they work with an insurance carrier who can advise them about their risk exposure and necessary coverage levels.