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Category: Business Insurance

The High Cost of a Low Price: Why Cheap Insurance Isn’t Always Best

Posted on by Jon Blankenship

When it comes to buying insurance, we often look at the “price tag” first. It is natural to want to save money, especially on an intangible product you hope to never use. We see advertisements promising massive savings, quick results, and lower premiums, and the temptation to click “buy” on the lowest quote is strong.

However, viewing insurance solely as a commodity to be bought at the lowest possible price isn’t reality. An insurance policy is a contract designed to protect your assets and your future. When you prioritize the lowest premium above all else, you often strip away the very protection you need. That’s because these policies aren’t equal – and what they are removing to lower the cost may be the exact thing you need when a claim occurs.

The Illusion of Saving on Cheap Insurance

We often equate finding a deal on insurance with finding a deal on a hotel or a discount on a service. And if two products have the same specifications, buying the cheaper one is smart. Insurance does not work this way. A cheaper policy is rarely the same product as a more expensive one. The lower price almost always reflects a reduction in coverage, higher deductibles, or significant exclusions.

When you select the cheapest option, you are often assuming more risk yourself. You are betting that nothing major will happen. If that bet fails, the “savings” you accumulated over years of lower premiums can be wiped out in a single afternoon.

The “Underinsured” Trap

The most common pitfall of cheap insurance is becoming underinsured. This means you have a policy, but the limits are too low to cover the actual costs of a claim.

Consider liability coverage. This protects you if you are sued for damages or injuries you cause to others. State or local laws often mandate minimum liability limits for auto insurance, and the cheapest policies usually stick to these minimums. In a severe accident where medical bills and property damage escalate quickly, these minimums are exhausted almost immediately.

Once your insurance limit is reached, the insurance company’s obligation ends. You remain personally responsible for the remaining balance. This could mean wage garnishment, losing your savings, or even having to sell your home to satisfy a legal judgment.

Common Scenarios Where Cheap Policies Fail

To understand the real-world impact of inadequate coverage, we must look at specific scenarios where policy limitations become painful realities.

  1. The Auto Accident and Liability Limits

Imagine you cause a multi-car accident on Interstate 40. You purchased the state minimum liability coverage to save $30 a month. The accident results in severe injuries to the other driver and totals their late-model luxury SUV.

The medical bills for the other driver reach $150,000, and the property damage is $60,000. Your “cheap” policy has a bodily injury limit of $25,000 and a property damage limit of $25,000.

  • Medical shortfall: $125,000
  • Property shortfall: $35,000
  • Total you owe out of pocket: $160,000

That $30 monthly saving has now cost you a fortune. A more robust policy would have absorbed these costs entirely.

  1. Homeowners Insurance and “Actual Cash Value”

In homeowners insurance, the difference between “Replacement Cost” and “Actual Cash Value” (ACV) is critical. Cheap policies often default to ACV for personal property or roof damage.

If a storm destroys your ten-year-old roof, an ACV policy will not pay for a new roof. It will pay for the value of a ten-year-old roof. Because roofs depreciate, you might receive a check for $2,000 to replace a roof that costs $15,000. You must find the remaining $13,000 yourself. A slightly more expensive policy with Replacement Cost coverage would have paid the full $15,000 (minus your deductible).

Evaluating Value Over Price

To protect your financial future, you must shift your mindset from “price shopping” to “value shopping.” Value represents the intersection of competitive pricing and robust protection.

Here is how to evaluate insurance policies effectively:

  1. Assess Your Net Worth and Assets

Your insurance coverage should correlate with what you have to lose. If you own a home, have significant savings, or have high future earning potential, you are a target for lawsuits. Your liability limits should be high enough to protect these assets. Purchasing an Umbrella Policy—which provides extra liability coverage on top of your auto and home policies—is often a very cost-effective way to secure millions in protection.

  1. Understand the Deductible Trade-Off

Raising your deductible is a safer way to save money than lowering your coverage limits. By accepting a $1,000 deductible instead of $500, you lower your premium without reducing the maximum amount the insurer will pay in a catastrophe. Ensure you always have the deductible amount saved in an emergency fund.

  1. Review the “Perils” Covered

For homeowners and renters, check if the policy is “Open Peril” (covering everything except what is excluded) or “Named Peril” (covering only what is listed). Open Peril policies are broader and safer, though slightly more expensive. Ensure you have coverage for specific risks in your area, such as flood or earthquake, which are almost always excluded from standard policies.

  1. Consult an Independent Agent

Comparing policies online can be confusing because the terminology varies. An independent insurance agent can compare quotes from multiple carriers for you. More importantly, they act as a professional advisor. They can explain the specific exclusions in a “cheap” quote and show you exactly what you are giving up for that lower price.

We Can Help

Insurance is a critical component of a sound financial plan. It functions as a firewall between a sudden disaster and your financial insolvency. When you erode that firewall by chasing the lowest possible premium, you compromise your security.

The goal is not to pay the most, but to pay for the right coverage. Contact Brandon Patterson on our team at brandon@ownbyinsurance.com to get started on comparing your risks to your coverage options.

 

Own or Operate an Outdoor Adventure Attraction? Risk Reduction Is Key

Posted on by Jon Blankenship

Managing an outdoor adventure attraction is a balancing act. You sell adrenaline, excitement, and the thrill of perceived danger. Yet, your business relies entirely on that “danger” being control with the reality of safety. When guests strap into a harness or clip onto a zipline, they trust you with their lives. Their trust – and the experience they have at your attraction – is your most valuable asset.

Operational excellence isn’t just about smooth logistics; it’s about rigorous risk reduction. While you can never eliminate risk entirely – accidents still happen – you can control the variables within your reach. This blog will outline some of the actionable strategies you can use to fortify your safety culture, protecting both your customers and your long-term viability.

The Foundation: Uncompromising Staff Training

Your equipment might be state-of-the-art, but human error remains the single biggest vulnerability in adventure operations. A belay device only works if the operator checks it correctly. A zipline brake is only effective if the staff member engages it at the right moment.

Training cannot be a “one-and-done” onboarding event. It must be a continuous, evolving process that develops into a culture of safety.

Scenario-Based Drills

Standard training often focuses on routine operations. However, incidents happen when things go wrong. Shift your training focus to anomaly management. What happens if a participant panics mid-course? What if a sudden storm rolls in?

Regularly conduct drills where senior staff act out specific emergencies – like a stuck climber or equipment malfunction – to test the team’s response time and decision-making under pressure.

Empowerment to Halt Operations

Every staff member, from the newest hire to the seasoned manager, needs the authority to stop operations. If a guide sees a fraying rope or notices a guest acting erratically, they must feel empowered to pause the activity without fear of reprimand for slowing down throughput. This culture of “safety first, revenue second” is the hallmark of a mature operation.

Equipment Maintenance: Beyond the Checklist

Routine inspections are standard, but a robust risk-reduction strategy requires a deeper level of scrutiny. Equipment failure is rare, but when it happens, the consequences are severe.

The “Top to Bottom” Tracking System

Do you know the exact history of every carabiner, harness, and pulley in your park? Implementing a detailed tracking system for each piece of Life Safety Equipment (LSE) is crucial.

Assign unique identifiers to every item. Your digital logs should track:

  • Date of purchase and manufacturer lifespan.
  • Daily inspection results.
  • Usage frequency (e.g., number of zip cycles).
  • Any incidents involving the equipment.

When a piece of gear reaches its retirement date or usage limit, retire it immediately – even if it “looks fine.”

Third-Party Audits

Internal biases can make us blind to gradual degradation. You see your course every day, so you might miss the slow wear on a platform or a subtle shift in a cable’s tension.

Engage accredited third-party inspectors annually. These fresh eyes provide an objective assessment of your structural integrity and equipment status. View their reports not as a critique, but as a roadmap for necessary investment.

Refining Safety Protocols

Protocols are the operating system of your park. Reviewing your Standard Operating Procedures (SOPs) should be an active, ongoing task, not an annual formality.

Redundancy is Key

In high-consequence environments, single points of failure are unacceptable. Your protocols should enforce redundancy at every critical juncture. This applies to equipment (backup lanyards, secondary braking systems) and procedures.

For example, implement a “check-and-verify” system where one guide secures a guest, and a second guide or the guest themselves (if trained) performs a visual and tactile check before commitment to the line.

Weather Contingencies

Outdoor attractions are at the mercy of the elements. Clear, non-negotiable thresholds for wind speed, lightning proximity, and precipitation are vital.

Don’t leave weather decisions to intuition. Invest in on-site weather monitoring technology that provides real-time data. Establish hard triggers: “If wind gusts exceed X mph, the high ropes course closes immediately.” Removing ambiguity helps staff make confident safety decisions quickly.

Customer Education: The First Line of Defense

Guests are often the unpredictable variable in the safety equation. They may be distracted, overconfident, or physically unprepared. Effective risk reduction starts before they even put on a helmet.

The Art of the Safety Briefing

We have all seen guests tune out during safety briefings. They are excited and often chatting with friends. To combat this, make your briefings interactive.

Instead of a monologue, use “check for understanding” techniques. Ask guests to demonstrate how to use a clip or ask them to repeat a critical instruction back to you. This active participation ensures the message lands.

Health and Ability Screening

Be rigorous about your participation criteria. Age, height, and weight limits exist for a reason – usually related to harness fit or equipment tolerances.

Beyond the metrics, train staff to assess physical and mental readiness. If a guest appears intoxicated, overly aggressive, or physically unable to manage the course requirements, your team must have the confidence to deny access. It is an uncomfortable conversation, but it prevents accidents.

Developing a Reporting Culture

How your organization handles “near misses” defines your future safety record. A near miss is a free lesson – an accident that almost happened but didn’t.

But you also need to encourage that reporting is helpful – not harmful. If a staff member makes a minor mistake and corrects it, do they hide it or report it? If they fear punishment, they will hide it. You need them to report it so you can analyze why it happened. Was it fatigue? A confusing procedure? A distraction?

Create a transparent reporting system where staff can log near misses and minor incidents without fear of retribution. Analyze this data to identify trends. If you see multiple near misses in the same area of the park, you have identified a systemic risk before it becomes a tragedy.

Put Risk Reduction Plan Into Action

Risk reduction in the adventure industry is not about removing the thrill; it is about ensuring the thrill is the only thing your guests take home with them. By investing in rigorous training, detailed asset management, and a transparent safety culture, you build a resilient business that can weather the challenges of this dynamic industry.

With this risk management in place, your insurance options may expand. Contact Brandon Patterson on our team at brandon@ownbyinsurance.com to learn more.

Essential Risk Management Tips for Cabin & Vacation Rental Owners

Posted on by Jon Blankenship

Managing a vacation rental or cabin property offers significant opportunity, but it also comes with unique liabilities. From slip-and-fall accidents on an icy deck to property damage caused by unruly guests, the risks are real. That’s where risk management comes in.

Successful owners don’t just hope for the best; they proactively manage these risks to protect their assets and their reputation. We hope that this guide will help you outline practical strategies for mitigating liability, securing your property, and ensuring guest safety.

Prioritize Proactive Property Maintenance

Maintenance is your first line of defense against liability claims. A well-maintained property is a safer property. While aesthetic updates drive bookings, structural and safety maintenance prevents lawsuits.

Conduct Seasonal Inspections

Don’t wait for a guest to report a broken railing. Implement a rigorous inspection schedule that aligns with the changing seasons, especially for cabins located in areas with harsh weather.

  • Exterior Walkways: Check for loose pavers, uneven ground, or moss buildup that could cause slips. In winter, ensure you have a contract or plan for immediate snow and ice removal.
  • Decks and Balconies: These are high-risk areas. Inspect support beams, railings, and floorboards for rot or instability annually.
  • Fireplaces and Chimneys: If your cabin features a wood-burning stove or fireplace, professional chimney sweeping is non-negotiable to prevent carbon monoxide buildup and chimney fires.

Document Everything

Risk management relies heavily on proof. Keep a digital log of all maintenance activities. If a guest claims they were injured due to negligence, your maintenance log showing that the area was inspected and repaired two weeks prior is your strongest defense.

Guest Screening

Who you allow into your property matters just as much as the condition of the property itself. Screening guests is not about discrimination; it is about verifying identity and ensuring responsible usage.

Utilize Platform Tools and Third-Party Software

Most major booking platforms offer built-in verification tools. Ensure you require guests to have a verified identity, phone number, and email address. For direct bookings, consider using third-party screening services that can check for red flags like previous evictions or criminal history related to property damage.

Establish Clear Rental Agreements

Your listing description is not a contract. You need a signed rental agreement that explicitly outlines:

  • Maximum Occupancy: Strictly enforce limits to prevent parties that can damage your property and disturb neighbors.
  • Pet Policies: clearly define weight limits, breed restrictions (if applicable by insurance), and liability for pet damage.
  • Conduct Rules: Specify quiet hours and smoking policies.

By having a guest sign this agreement, you create a legal standing that proves they were aware of the rules before entering the property.

Secure the Right Insurance Coverage

Many new owners make the mistake of relying on standard homeowner’s insurance or the basic coverage provided by booking platforms. These often fall short when a significant claim arises.

Commercial or Vacation Rental Policies

Standard homeowner’s policies frequently exclude “business activity,” which includes short-term renting. You need a specialized vacation rental policy or a commercial liability policy.

  • Liability Limits: Aim for higher liability limits than a standard home. One million dollars is often the industry baseline, but depending on your assets, you may need more.
  • Loss of Income Coverage: If a fire or burst pipe renders your cabin unrentable for months, this coverage replaces your lost booking revenue.
  • Amenity Specifics: If you have a hot tub, swimming pool, or provide bicycles/kayaks, ensure your policy explicitly covers these high-risk amenities.

Implement Emergency Preparedness Protocols

When an emergency happens, seconds count. Your guests are likely unfamiliar with the property and the local area. You must provide the information they need to react quickly.

The Digital and Physical Welcome Guide

Don’t bury emergency numbers in a drawer. Place a laminated sheet in a highly visible location (like the fridge or near the main entry) containing:

  • The property’s exact address (guests often forget this when calling 911).
  • Emergency contact numbers for police, fire, and poison control.
  • Your 24/7 emergency contact number.
  • Location of the nearest hospital and urgent care.

Safety Equipment

Go beyond the bare minimum required by law.

  • Smart Detectors: Install smart smoke and carbon monoxide detectors that alert your phone if they go off. This allows you to call for help even if the property is vacant.
  • Fire Extinguishers: Place current, tagged fire extinguishers on every level of the home and specifically near the kitchen and outdoor grill.
  • First Aid Kits: Stock a comprehensive first aid kit and check it between stays to replenish used items.

Smart Technology for Risk Mitigation

Modern technology offers affordable ways to monitor your property without invading guest privacy.

Noise Monitoring

Noise monitoring devices measure decibel levels without recording conversations. They can alert you if noise levels exceed a certain threshold for a sustained period, often an early indicator of an unauthorized party.

Smart Locks

Keyless entry systems eliminate the risk of lost keys or unauthorized copies floating around. You can generate unique codes for each guest that expire automatically at checkout time, ensuring property security.

Water Leak Detectors

Water damage is one of the most common and expensive insurance claims. Place smart water leak sensors near water heaters, under sinks, and behind washing machines. These devices can alert you to a leak instantly, and some systems can even shut off the main water valve automatically.

Risk management is an ongoing process, not a one-time task. By implementing rigorous maintenance schedules, screening guests effectively, securing proper insurance, and leveraging smart technology, you protect more than just your property – you protect the future of your business.

Contact Brandon Patterson on our team at brandon@ownbyinsurance.com to help you take the next steps for your risk management planning.

Why Your Business Needs Employment Practices Liability Insurance (EPLI)

Posted on by Jon Blankenship

If you’re a business owner, manager, or HR leader, you focus on building a great team and a positive culture. Yet, even with the best intentions, employee-related claims can arise unexpectedly. Defending against allegations of wrongful termination, discrimination, or harassment can be financially crippling, even if the claims are baseless. This is where Employment Practices Liability Insurance (EPLI) becomes a critical part of your risk management strategy.

What is EPLI?

EPLI is a specialized type of management liability insurance that protects businesses against claims made by employees, former employees, or even job applicants. These claims allege that their legal rights as employees have been violated. Unlike more common policies like general liability, which covers bodily injury or property damage, EPLI specifically addresses a wide range of employment-related risks.

The Growing Risk Landscape for Employers

The modern workplace is more complex than ever, and the legal landscape is constantly shifting. Several factors are increasing the frequency and cost of employment claims.

  • Rising Claim Frequency: Employees are more aware of their rights than ever before. This awareness, combined with a more litigious social climate, has led to a steady rise in employment-related lawsuits filed against companies of all sizes.
  • Remote and Hybrid Work Dynamics: The shift to remote and hybrid work models has introduced new complexities. Issues like digital communication, perceived inequities in opportunities, and challenges in monitoring performance can easily lead to claims of discrimination, harassment, or unfair treatment.
  • Evolving Laws and Regulations: Federal, state, and even local employment laws are in a constant state of flux. New legislation related to pay equity, family leave, and discrimination protections creates new compliance burdens and potential liabilities for employers who fail to keep up.

What Does EPLI Typically Cover?

An EPLI policy is designed to cover the costs associated with employment-related lawsuits, including legal defense fees, settlements, and judgments. While policies vary, most provide coverage for the following types of claims:

  • Wrongful Termination: Allegations that an employee was fired in violation of the law or their employment contract.
  • Discrimination: Claims that an employer made decisions based on protected characteristics like age, race, gender, religion, disability, or national origin.
  • Harassment: Includes claims of sexual harassment as well as harassment based on other protected categories, creating a hostile work environment.
  • Retaliation: Allegations that an employer punished an employee for legally protected activities, such as reporting harassment, acting as a whistleblower, or requesting accommodation for a disability.
  • Wage-and-Hour Claims: Some policies offer a sub-limit (a smaller amount of coverage) for the defense costs associated with claims alleging violations of wage and hour laws, such as unpaid overtime or misclassification of employees. Note that coverage for the actual unpaid wages is typically excluded.
  • Third-Party Claims: This valuable extension provides coverage for harassment or discrimination claims brought by non-employees, such as customers, clients, or vendors. This is especially important for businesses with significant public interaction.

Real-World Claim Scenarios

It’s easy to think “this won’t happen to us,” but employment claims can stem from everyday situations.

  • The Small Business Scenario: A small business with 15 employees lets go of a team member for performance issues. The team member, who is over 50, files an age discrimination lawsuit, claiming younger, less-experienced colleagues were retained. The startup must now pay tens of thousands in legal fees to defend itself, even though its decision was performance-based.
  • The Mid-Size Business Scenario: A mid-sized manufacturing company receives a complaint that a manager is making inappropriate jokes, creating a hostile work environment. Before HR can complete its investigation, the employee quits and sues for constructive discharge and sexual harassment. EPLI would cover the defense costs and any potential settlement.
  • The Miscommunication Scenario: During a friendly chat, a manager tells a pregnant employee, “You’ll have your hands full with the new baby! We can scale back your duties when you return.” Though well-intentioned, the employee interprets this as a demotion and files a pregnancy discrimination claim.

The key takeaway is that you don’t have to be wrong to be sued. The cost of defending a claim alone can be devastating for a business without proper insurance coverage.

Who Needs EPLI the Most?

While every business with employees has exposure, some face a higher degree of risk.

  • Startups and Fast-Growing Companies: Rapid hiring and evolving internal processes can lead to inconsistencies and HR oversights.
  • Businesses with High Turnover: Industries with frequent hiring and firing naturally see more claims related to termination.
  • Multi-State Employers: Navigating a patchwork of different state and local employment laws significantly increases compliance risk.
  • Customer-Facing Industries: Restaurants, retail stores, and hospitality businesses have higher exposure to third-party claims from the public.
  • Nonprofits: Board members and the organization itself can be targets of employment lawsuits, and limited budgets make defending these claims particularly challenging.

What EPLI Doesn’t Cover

It’s equally important to understand what is typically excluded from an EPLI policy. Common exclusions include:

  • Claims related to the Employee Retirement Income Security Act (ERISA).
  • Workers’ compensation claims (these are covered by a separate workers’ comp policy).
  • Bodily injury or property damage (covered by general liability).
  • Penalties and fines imposed by law.
  • Claims arising from deliberate fraud or intentional wrongdoing.

Proactive Risk Management Can Reduce Your Premiums

Insurers reward businesses that take proactive steps to minimize their employment risks. Implementing strong HR practices not only protects your company but can also lead to more favorable EPLI premiums.

  • Employee Handbook: Maintain a comprehensive, up-to-date employee handbook that clearly outlines company policies, procedures, and expectations. Have every employee sign an acknowledgment of receipt.
  • Regular Training: Conduct mandatory anti-harassment, anti-discrimination, and diversity training for all employees and managers.
  • Clear Documentation: Document everything—performance reviews, disciplinary actions, and termination reasoning. Consistent documentation is your best defense.
  • Complaint Hotline: Establish a formal, confidential process for employees to report concerns without fear of retaliation.
  • Consistent Processes: Apply all HR policies and procedures consistently across all employees to avoid any appearance of favoritism or discrimination.

Understanding Your Policy: Limits, Pricing, and Coordination

When purchasing EPLI, you’ll need to decide on coverage limits and a retention (deductible). These are influenced by several factors:

  • Industry: Certain industries (like hospitality or healthcare) are considered higher risk.
  • Claim History: A history of prior employment claims will increase your premium.
  • Employee Count & Turnover: More employees and higher turnover mean greater exposure.
  • Location: Operating in states with employee-friendly laws can impact pricing.

Finally, it’s important to see how EPLI fits with your other management liability policies. Claims can sometimes trigger coverage under multiple policies. For instance, a lawsuit against a company executive for an employment-related decision could potentially involve both your EPLI and your Directors & Officers (D&O) policy. Coordinating these policies ensures there are no gaps in your coverage.

Review Current Coverage

Ready to learn more about the EPLI risks and options for your business? Contact Brandon Patterson on our team at brandon@ownbyinsurance.com and the options you can choose from to get covered.

Insurance for NEMT Companies: Protecting Your Business and Patrons

Posted on by Jon Blankenship

Running a non-emergency medical transport (NEMT) company means taking on unique responsibilities. You’re not just moving people from point A to point B – you’re caring for vulnerable patients who depend on safe, reliable transportation to reach medical appointments that could impact their lives.

This specialized role comes with distinct risks that standard business insurance won’t cover. From vehicle accidents involving wheelchair-accessible vans to liability claims from patient injuries, NEMT companies face challenges that require specific insurance protection.

In this guide, we’ll explore the specific risks your NEMT business faces and the insurance coverages that can protect you, your employees, and the patients you serve.

Understanding NEMT Business Risks

Vehicle-Related Risks

NEMT vehicles spend more time on the road than typical commercial vehicles, increasing accident exposure. Your drivers navigate various weather conditions, traffic patterns, and unfamiliar routes while operating specialized equipment like wheelchair lifts and stretchers.

Consider this scenario: Your driver is transporting an elderly patient to dialysis when another vehicle runs a red light and crashes into your van. The patient suffers additional injuries, your vehicle sustains $40,000 in damage, and your driver requires medical treatment for whiplash. Without proper coverage, this single incident could financially devastate your business.

Patient Care Liability

Unlike standard transportation services, NEMT companies provide care during transport. You’re responsible for patient safety from pickup to drop-off, including proper securement in wheelchairs, assistance with mobility devices, and monitoring during the journey.

Imagine your employee fails to properly secure a patient’s wheelchair, causing them to fall during transport and break their hip. The resulting medical bills, rehabilitation costs, and potential lawsuit could reach hundreds of thousands of dollars.

Employment-Related Risks

Your drivers handle intimate patient care tasks, access personal health information, and work in patients’ homes. This creates exposure to discrimination claims, privacy violations, and allegations of inappropriate conduct.

Regulatory Compliance Risks

NEMT companies must comply with Department of Transportation regulations, Americans with Disabilities Act requirements, and state medical transport licensing. Non-compliance can result in fines, license suspension, or lawsuit vulnerability.

Essential Insurance Coverage for NEMT Companies

Commercial Auto Insurance

Standard personal auto policies won’t cover your business activities. Commercial auto insurance provides crucial protection for your fleet and operations.

Coverage components include:

  • Liability protection for bodily injury and property damage
  • Collision and comprehensive coverage for your vehicles
  • Medical payments for injured passengers
  • Uninsured/underinsured motorist protection

NEMT companies typically need higher liability limits than standard commercial vehicles due to patient vulnerability. Consider minimum limits of $1 million per occurrence, though many companies carry $2-5 million for adequate protection.

Real-world example: A NEMT van rear-ends another vehicle while transporting three dialysis patients. All passengers suffer neck injuries requiring ongoing treatment. With $1 million in liability coverage, the insurance company handles medical expenses, lost wages, and legal fees, protecting your business assets.

General Liability Insurance

This foundational coverage protects against claims arising from your business operations, including patient injuries that occur outside vehicle accidents.

Protection includes:

  • Slip and fall injuries at your facility
  • Patient injuries during loading/unloading
  • Property damage at patient locations
  • Advertising injury claims

Scenario: While helping a patient into their home, your employee accidentally knocks over and breaks an expensive personal item. General liability insurance covers the replacement cost, preventing an out-of-pocket expense that could strain your cash flow.

Professional Liability Insurance

Also called errors and omissions (E&O) insurance, this coverage protects against claims alleging negligent performance of professional services.

Coverage applies to:

  • Failure to follow patient care protocols
  • Medication administration errors
  • Improper patient handling techniques
  • Documentation mistakes affecting patient care

Case study: Your company’s care plan requires a patient to arrive at dialysis by 10 AM, but traffic delays cause a 30-minute late arrival. The patient misses their treatment, experiences complications, and claims your negligence caused their deteriorated condition. Professional liability insurance covers legal defense costs and potential settlements.

Workers’ Compensation Insurance

Required in most states, workers’ compensation protects employees injured on the job while shielding you from related lawsuits.

NEMT-specific considerations:

  • Repetitive lifting injuries from patient transfers
  • Back injuries from wheelchair securement
  • Stress-related conditions from patient care responsibilities
  • Vehicle accident injuries

Example: Your driver injures their back while operating a wheelchair lift for a 300-pound patient. Workers’ compensation covers medical treatment, rehabilitation, and partial wage replacement during recovery, while preventing the employee from suing your company.

Cyber Liability Insurance

NEMT companies handle sensitive patient health information, making them attractive targets for cybercriminals. Data breaches can result in massive fines, notification costs, and reputation damage.

Protection includes:

  • Data breach response costs
  • Regulatory fines and penalties
  • Credit monitoring for affected patients
  • Business interruption from cyber attacks

Commercial Property Insurance

This coverage protects your physical business assets, including your facility, medical equipment, and office contents.

Considerations for NEMT companies:

  • Wheelchair lifts and medical equipment in vehicles
  • Specialized communication systems
  • Patient records and computers
  • Building improvements for accessibility compliance

Work with Specialized Agents

Insurance agents familiar with NEMT operations understand your unique risks and can recommend appropriate coverages. They’ll help you navigate complex requirements and find competitive pricing from insurers who understand your industry.

Brandon Patterson from our team has experience with these risks and is ready to help you. Contact him today at brandon@ownbyinsurance.com to get the coverage info you need!

Insurance Risks Every Dental Practice Must Know

Posted on by Jon Blankenship

Operating a dental practice can be an impactful and rewarding career, but it comes with its fair share of challenges and vulnerabilities. Having the right dental practice insurance coverage for your dental practice is not just a legal or business formality – it’s a vital safeguard for your practice’s longevity and reputation. From malpractice claims to cyber threats, dental practices face unique risks that could jeopardize their operations if not addressed proactively.

This blog outlines the key risks dental practices should be aware of and how insurance coverage can mitigate them, ensuring peace of mind for both your business and your patients.

Be Specific When Seeking Dental Practice Insurance

Dental practices operate in an environment where precision and patient trust are paramount. However, even with the highest standards of care, unexpected issues can arise. Malpractice claims, natural disasters, or even an employee lawsuit could severely disrupt your practice—or worse, lead to permanent closure. Insurance coverage acts as a safety net, ready to protect what you’ve worked so hard to build.

By understanding your practice’s unique vulnerabilities, you can take proactive steps to secure the right policies, ensuring that you are prepared for whatever comes your way.

Key Risks Dental Practices Should Address

1-Malpractice Claims

No matter how skilled you are, mistakes can happen in patient care. Misdiagnoses, procedural errors, or perceived negligence could lead to malpractice lawsuits, costing you both financially and reputationally.

How Insurance Helps
Professional liability insurance (also known as medical malpractice insurance or “MedMal”) is essential for helping cover legal costs, settlements, or judgments associated with these claims. A robust policy ensures that one misstep doesn’t threaten your entire practice.

Risk Mitigation Tips

  • Document patient records meticulously.
  • Stay updated on the latest industry best practices and continuing education.
  • Communicate transparently with patients about procedures and risks.

2-Property Damage

Dental practices are equipped with expensive machinery and facilities designed to deliver precise care. Events like fires, floods, or earthquakes can cause costly damage, disrupting your ability to serve patients. And some of these perils may not be covered by standard property insurance policies.

How Insurance Helps
Commercial property insurance covers damages to your building, equipment, and other assets due to covered perils like natural disasters or theft. Tailoring this policy to include coverage for specialized dental equipment is crucial, and making sure specific risks like flooding are covered can be critical depending on your level of risk.

Risk Mitigation Tips

  • Conduct regular maintenance on equipment and infrastructure.
  • Install fire alarms, security cameras, and robust cybersecurity measures.
  • Ensure policy limits accurately reflect your practice’s property value.
  • Understand what might be excluded from your policies and how much risk you have for those exclusions.

3-Cyber Threats

With patient data becoming increasingly digitized, dental practices face a growing threat of cyberattacks. Data breaches can expose sensitive information, leading to lawsuits, regulatory fines, and loss of patient trust.

How Insurance Helps
Cyber liability insurance may help protect against costs related to data breaches, including customer notifications, data recovery, legal fees, and public relations efforts. It’s an essential layer of protection in the digital age.

Risk Mitigation Tips

  • Implement secure, encrypted systems for storing and transmitting patient data.
  • Train employees regularly on cybersecurity protocols.
  • Invest in a reliable cybersecurity infrastructure with regular software updates.

4-Employee-Related Liabilities

Your team is integral to your success, but employment practices carry risks. Disputes over pay, discrimination claims, or workplace injuries can lead to legal entanglements or compensation claims.

How Insurance Helps

  • Workers’ compensation insurance covers medical expenses and lost wages for employees injured on the job.
  • Employment practices liability insurance (EPLI) addresses claims such as harassment or wrongful termination.

Risk Mitigation Tips

  • Foster a workplace culture of respect and compliance with labor laws.
  • Regularly update employee handbooks with clear policies and procedures.
  • Document all employment-related actions thoroughly.

5-Business Interruption

What happens if a natural disaster, pandemic, or unforeseen event forces your practice to shut down temporarily? Loss of income during this time can be devastating.

How Insurance Helps
Business interruption insurance compensates you for lost income and ongoing expenses, like rent and payroll, during periods of temporary closure due to covered events.

Risk Mitigation Tips

  • Develop a business continuity plan to reduce recovery time.
  • Diversify revenue streams, such as offering tele-dentistry or selling dental care products.
  • Regularly review and update your insurance coverage to align with your practice’s evolving risks.

Ensure Peace of Mind for Your Practice

There’s no one-size-fits-all solution when it comes to protecting your dental practice. Every practice faces a unique combination of risks, and securing the right insurance coverage is the foundation of a strong risk management strategy.

Don’t wait until an incident occurs. Contact Brandon Patterson on our team today to discuss your coverages. Call 865.453.1414 or email brandon@ownbyinsurance.com.

 

Veterinary Clinic Insurance: Essential Coverage for Common Risks

Posted on by Jon Blankenship

Running a veterinary clinic or animal hospital comes with numerous rewards – it’s a unique opportunity to provide care for animals and support pet owners. However, like any business, veterinary practices face various risks that can significantly impact their operations if not properly managed. From liability concerns to employee safety, understanding and mitigating these risks with veterinary clinic insurance is crucial not only for the welfare of the business but also for client trust and overall success.

Why the Right Veterinary Clinic Insurance Matters

Veterinary clinics deal with unique operational challenges that involve animals, advanced medical equipment, medications, and sensitive data. Managing these complexities leaves practices exposed to specific risks that cannot always be anticipated or avoided. Without adequate veterinary liability insurance, the financial repercussions of accidents, lawsuits, or unforeseen events could jeopardize the entire business. Below, we break down the most critical risks veterinary professionals need to address through proactive measures and the right insurance policies.

Liability for Pet Injuries

Even under the best care, accidents can happen. A pet may injure itself while at your facility, escape and get hurt, or have an adverse reaction to treatment. Such incidents can lead to claims of negligence, emotional distress lawsuits from owners, and costly legal battles.

How to Mitigate This Risk

  • Invest in General Liability Insurance: This policy helps protect your clinic in the event a pet gets injured due to negligence or accidents on your premises. It can also cover legal defense and settlement costs.
  • Implement Safety Protocols: This includes securing all animals appropriately during treatment, ensuring cages are locked, and creating clear processes for handling high-risk animals.
  • Employee Training: Ensure all staff are well-trained in animal handling and emergency response procedures.

Property Damage

Veterinary practices house expensive equipment, valuable medical supplies, and sensitive technology. Damage from fires, floods, or even vandalism can be devastating, leading to significant losses and costly downtime.

How to Mitigate This Risk

  • Secure Property Insurance: Comprehensive coverage for your building, equipment, and inventory is critical. Property insurance can help repair or replace damaged items while covering the cost of business interruption.
  • Upgrade Security Measures: Install surveillance cameras, alarm systems, and secure entryways to deter vandalism or theft.
  • Prepare for Natural Disasters: Conduct risk assessments for weather-related hazards in your region and invest in measures like flood barriers or fire-resistant storage.

Employee Safety Risks

Veterinary staff often work in a physically demanding and high-pressure environment, which increases their risk of workplace injuries. They may be bitten or scratched by animals, exposed to dangerous substances, or suffer repetitive strain injuries from heavy lifting or frequent bending.

How to Mitigate This Risk

  • Workers’ Compensation Insurance: This essential policy covers medical expenses, lost wages, and rehabilitation for injured employees.
  • Provide Personal Protective Equipment (PPE): Gloves, masks, and goggles can reduce exposure to hazardous chemicals and physical injuries.
  • Ergonomic Training: Introduce proper techniques for lifting animals and other heavy items. Invest in equipment like hydraulic exam tables to minimize strain.

Data Breaches and Cybersecurity Risks

Veterinary clinics increasingly rely on technology for client management, billing, and medical record-keeping. Unfortunately, this makes them a target for cybercriminals, who may exploit vulnerabilities in your systems to steal sensitive client data or jeopardize operations through ransomware attacks.

How to Mitigate This Risk

  • Cyber Liability Insurance: This type of policy protects against losses caused by data breaches, including legal fees, notification costs, and fines.
  • Strengthen Cybersecurity: Use firewalls, antivirus software, and multi-factor authentication. Regularly update your systems to address potential weaknesses.
  • Employee Awareness: Conduct regular training sessions to help staff recognize phishing attempts or suspicious activity.

Controlled Substance Regulations and Risks

Veterinary practices often manage controlled substances like painkillers or sedatives to treat animals. Improper storage, theft, or employee misuse of these drugs can lead to legal complications and harm to reputation.

How to Mitigate This Risk

  • Compliance Coverage: Certain insurance policies can address liabilities related to regulatory claims or investigations.
  • Strict Inventory Management: Track all controlled substances meticulously. Use secure, locked storage and deploy inventory software to monitor use and loss.
  • Develop Legal Expertise: Partner with a consultant or attorney to ensure your practice adheres to controlled substance regulations.

Client-Related Risks

Disputes with pet owners can arise for various reasons, such as miscommunications about treatment costs, dissatisfaction with outcomes, or perceptions of negligence. These disputes may escalate to lawsuits or damage your reputation.

How to Mitigate This Risk

  • Professional Liability Insurance (Malpractice Insurance): This protects against claims of negligence or errors made during treatment decisions.
  • Clear Communication: Always provide detailed explanations of procedures and costs upfront. Have clients sign consent forms before undertaking significant treatments.
  • Customer Relationship Management: Train staff to handle emotional clients professionally and empathetically, diffusing tension before conflicts arise.

Key Steps to Take Today

If you run a veterinary practice or animal hospital, take the following steps to ensure you’re protected against these risks:

  1. Conduct a Risk Assessment: Identify specific vulnerabilities in your operations and address them proactively.
  2. Work with an Insurance Specialist: Partner with an agent or broker who understands veterinary practices. They can help tailor a comprehensive policy to suit your clinic’s needs.
  3. Review Policies Annually: Your risks may change over time, so make it a habit to revisit your insurance policies and adjust as needed.

We Can Help

Our team understands the risks for veterinary clinics and animal hospitals, and we can help you understand your options for coverage. Contact Brandon Patterson on our team at brandon@ownbyinsurance.com to get started!

Risks to Ponder When Considering Insurance for Alarm Installers

Posted on by Jon Blankenship

Alarm installers, whether operating in residential or commercial markets, play a vital role in ensuring safety and security. However, the work they perform and the services they provide expose them to a wide range of risks. Without proper insurance for alarm installers, these risks can have significant financial and legal implications, potentially jeopardizing the long-term success of their business.

To safeguard their operations, alarm installers must understand the specific hazards associated with their profession and the coverage options available to mitigate them. Below, we explore critical risks to consider and why tailored coverage is a must for alarm installation professionals.

Common Risks Faced by Alarm Installers

Alarm installation professionals are exposed to numerous risks during day-to-day operations. These include both external exposures and potential liabilities arising from their own business activities. Here are the key challenges they face:

Liability Claims

Mistakes in installation or failure of installed systems can expose alarm installers to claims of negligence. For example, if an alarm system fails during a break-in due to improper installation, the client may hold the installer accountable. General liability insurance can help cover legal fees, settlements, and damages arising from such claims.

Property Damage

Whether on a customer’s premises or off-site, damage to property is a plausible risk. Accidentally damaging walls, electrical systems, or valuables while installing equipment can leave installers liable for the cost of repairs. Investing in property coverage protects against these incidents.

Employee Theft

While rare, cases of employees stealing from client premises can harm the installer’s reputation and finances. Third-party crime coverage specifically addresses this risk, protecting businesses from losses resulting from employee theft of client property.

Bodily Injury

Accidents can occur during installations, leading to injuries among employees or clients. An installer may drop heavy equipment causing harm, or a client may trip over tools on-site. Workers’ compensation insurance can cover employees, while general liability insurance addresses third-party bodily injury claims.

Cyber Liability

With alarm systems increasingly connected to online platforms, exposure to cyber threats is higher than ever. Hackers may target alarm systems to gain unauthorized access or disrupt operations. Cyber liability coverage can mitigate risks related to data breaches or cyberattacks, covering costs like regulatory fines, legal fees, and data recovery.

Commercial Auto

Alarm installation businesses often rely on vehicles to transport tools and equipment, making them vulnerable to auto-related incidents. Commercial auto insurance covers accidents, theft, and damage involving company vehicles, ensuring that transport-based operations remain uninterrupted.

Inland Marine

Protecting tools and equipment during transportation is critical for alarm installers. Inland marine insurance acts as a “floater” policy, covering items in transit or stored at off-site locations. This ensures that critical equipment is protected, whether being moved between job sites or stored temporarily.

Tailoring Alarm Installer Insurance for Residential and Commercial Installers

The risks and associated coverage needs may differ slightly between residential and commercial alarm installers.

  • Residential Installers face unique risks related to customer interaction within private homes, such as accidental property damage or liability claims arising from defective home installations.
  • Commercial Installers, on the other hand, may encounter larger-scale risks working in commercial properties, including advanced cybersecurity challenges or employee theft involving high-value assets.

It’s vital for alarm installers to consult with specialized insurance providers to tailor a plan that comprehensively addresses their specific needs.

Recommended Insurance Coverage for Alarm Installers

To manage these risks effectively, alarm installation businesses should consider the following insurance options:

  • General Liability Insurance to address claims of negligence, bodily injury, or property damage.
  • Property Insurance to protect business-owned tools, equipment, and inventory.
  • Third-Party Crime Coverage to safeguard against client property theft by employees.
  • Cyber Liability Insurance for protection against data breaches and other cyber threats.
  • Workers’ Compensation Insurance to cover employees in the event of workplace injuries.
  • Commercial Auto Insurance to ensure the safety and reliability of business vehicles.
  • Inland Marine Insurance to cover tools and equipment during transit or storage off-site.

By investing in the right mix of coverage, alarm contractors can mitigate financial uncertainties and focus on delivering exceptional services to their clients.

Take Steps to Ensure Your Alarm Installer Insurance Coverage

Insurance is not just a safety net; it’s a fundamental part of running a resilient and professional alarm installation business. Understanding the array of risks inherent in the industry enables alarm contractors to proactively secure the right protection and safeguard their reputation and bottom line.

Are Cheaper Small Business Insurance Policies Leaving You Exposed?

Posted on by Jon Blankenship

The economy has some uncertainty that is leaving many feeling like they need to reconsider their business expenses.

Cutting costs might seem like the smart thing to do, however, when it comes to small business insurance, opting for a cheaper policy can leave your business vulnerable to risks you might not even be aware of. Below, we’ll explore some common gaps in small business insurance and how these gaps could impact your operations, profitability, and long-term stability.

Insurance Gaps Happen

Insurance gaps often happen when small business owners try to minimize costs without fully evaluating the risks unique to their industry or operations. Policies that seem affordable on the surface may have lower coverage limits or exclude critical areas, putting your business at risk of financial and operational hardship if something goes wrong.

Common Coverage Gaps That Can Leave You Exposed

Cheaper policies often skimp on critical coverage or fail to address your business’s specific needs. Here’s where you could find yourself unprotected:

  1. Low Coverage Limits
    Your policy might cover claims, but the limits could be far too low for an actual incident. For example, a general liability policy might cover up to $100,000 in damages, but what happens if your liability in a lawsuit climbs to $500,000? Your business would be responsible for the difference, which could strain your cash flow or force you out of business.
  2. Cyber Liability Coverage Is Missing or Insufficient
    Cyberattacks are becoming increasingly common, even for smaller businesses. Phishing scams, data breaches, and ransomware attacks can result in costly damages, including legal fees, customer notifications, credit monitoring services, and lost revenue. If your policy doesn’t include robust cyber liability coverage, you’ll be left to handle these costs out of pocket.
  3. Workers’ Compensation That Doesn’t Properly Cover Employees
    Work comp insurance is often mandated by law, but cheaper policies might exclude certain workers or job functions. For instance, contractors, part-time employees, or seasonal staff are sometimes left uncovered, even though their roles involve on-the-job risks. Uncovered workers can lead to significant medical or legal costs after an injury.
  4. Specialized Equipment Isn’t Covered
    For businesses relying on specific tools or equipment (like commercial kitchen appliances, construction machinery, or IT hardware), property insurance might not cover these items due to their specialized nature. For example, if a key piece of equipment breaks down or is stolen, downtime from the loss could cripple your operations if it’s not covered under your current policy.

The Hidden Costs of Gaps in Your Coverage

While cheaper policies might save money upfront, the “hidden costs” of insufficient coverage can pose substantial risks down the line:

  • Unplanned legal or repair expenses
  • Business interruption and downtime
  • Long-term hits to your reputation and customer trust
  • Potential non-compliance with local or industry regulations

How to Get the Coverage You Truly Need

Avoiding coverage gaps boils down to careful planning and working with the right insurance provider. Here are some steps to ensure you’re covered:

  • Perform a Risk Assessment: Identify all potential risks your business faces, from property damage to cyber threats.
  • Customize Your Policy: A one-size-fits-all policy might not include the protection you need. Consider endorsements or add-ons to tailor coverage for your needs.
  • Regularly Review Policies: Your business will evolve, and so will your insurance needs. Conduct an annual review of your policies to ensure they align with your current risks.
  • Partner with Experts: Work with an insurance provider who understands your industry and can guide you toward comprehensive coverage.

Protect Your Business Without Compromise

Don’t sacrifice security for short-term savings. Investing in the right insurance policy isn’t just about peace of mind; it’s about ensuring your business can weather challenges and stay competitive for years to come.

Reach out to Brandon Patterson on our team at brandon@ownbyinsurance.com to discuss options for your coverage needs and how you can avoid gaps that leave you vulnerable.

Business Interruptions and the Role of Insurance

Posted on by Ownby Insurance Service

For business owners and operators of all sizes, unforeseen interruptions to daily operations can have a significant financial and operational impact. One such scenario is a major utility issue – like a prolonged power outage – that grinds your business to a halt. Instances like these highlight why understanding and investing in comprehensive insurance coverage, such as Business Interruption Insurance, is crucial.

Let’s explore what business “interruption” means and how insurance may be able to help safeguard your revenue and operations in these instances.

What Is a Business Interruption?

A business interruption refers to any unforeseen event or issue that halts or restricts a business’s ability to operate. These interruptions can arise from external factors like property damage, natural disasters, or utility failures, such as a severe storm knocking out power for extended periods.

Such interruptions can create ripple effects – from lost customers to missed revenue opportunities – making long-term recovery more challenging. A well-prepared business owner can mitigate these risks with the right strategy, including insurance solutions tailored to address these scenarios.

Why a Major Utility Outage Could Be Devastating

Among various interruptions, major utility issues – like losing power or water due to connection failure or equipment malfunction – pose significant challenges. Think about the consequences if you’re relying on refrigeration in a restaurant, powering key electronics, manufacturing with powered equipment, or welcoming in customers for retail. Beyond operational inefficiencies, additional costs pile up quickly, including replacement of spoiled resources, uncompleted orders, missed revenue, and extra expenses to resume operations.

Without a financial safety net to handle these situations, businesses risk losing momentum or even shutting down permanently.

Business Interruption Insurance Impacts

Business Interruption coverage, often called Business Income Insurance, may act as your lifeline during such disruptions. If a covered event forces your business to cease operations temporarily, this insurance helps replace lost income and cover essential costs, ensuring your operations stay afloat.

What Does It Typically Cover?

Here are the key areas this insurance focuses on, which can be critical for managing interruptions like utility outages effectively:

  • Revenue Replacement: Compensates for income lost during the downtime.
  • Loan or Lease Payments: Covers rent or loan obligations so you’re not falling behind on payments while operations are paused.
  • Taxes: Helps ensure you can continue paying business taxes even if your business isn’t active.
  • Payroll: Keeps your employees paid during the disruption to ensure your team is ready to be in place when operations resume.
  • Extra Expenses: Covers costs such as renting a generator or relocating temporarily to keep parts of your services running.

Example in Action

Imagine a bakery that relies heavily on refrigeration for its operations. If a power outage caused by a storm results in spoiled inventory and forced closures, business interruption insurance could cover the lost revenue, employee wages, and even extra expenses, like the immediate need to rent cold storage or a temporary workspace.

Understanding the Limits and Exclusions

While this coverage is versatile, it’s important to understand its scope to maximize its benefits. To ensure your expectations align with policy terms, keep the following in mind:

  • Business Interruption Insurance does not cover flood or earthquake damage unless specified in a separate policy.
  • Business Interruption Insurance does not cover communicable diseases unless specified directly in policy language.
  • Utilities themselves (e.g., electricity bills or water supply) are excluded.
  • Coverage is dependent on documented losses, which underscores the importance of maintaining accurate business records.

Review your policy for specific waiting and restoration periods. Typically, benefits apply after a 48- to 72-hour waiting period and last up to a year.

How to Choose the Right Coverage

When tailoring your business interruption insurance, ask yourself questions like these to determine the appropriate coverage level for your business needs:

  • How long would it take to recover from a disaster? Think about cleanup, repairs, or reinstating services.
  • What’s my worst-case scenario? Identify the large-scale events that could pose risks—whether they are utility-related or natural disasters in your region.
  • What are my essential operating expenses? Lease payments, wages, and loan requirements should all be factored in when determining coverage amounts.

You might also consider bundling interruption insurance with your liability and property insurance for broader coverage.

Is Your Business Protected?

Small businesses are the backbone of any economy, and interruptions shouldn’t spell the end of your hard work. With the right preparation and sufficient business interruption insurance, you can withstand disruptions, minimize financial loss, and continue thriving.

Need help with a plan for protecting your business? Please contact Brandon Patterson on our team at brandon@ownbyinsurance.com.