A proposed settlement of a class action lawsuit against an insurance company for tens of millions of dollars in illegal overcharges was rejected by the Los Angeles Superior Court, in part because it would have allowed the company to pay using coupons that required the policyholders to buy more insurance from the company, according to the Foundation for Taxpayer and Consumer Rights.
Superior Court Judge Victoria G. Chaney acted after FTCR lawyers submitted a brief opposing the proposed settlement as unfair, inadequate and unreasonable. It was the second coupon-based settlement agreement between the parties to be opposed by FTCR and rejected by the court.
The case, Donabedian v. Mercury Insurance (BC249019), charges that beginning in 1995, Mercury surcharged policyholders because they were previously uninsured or had had a lapse in coverage. Such surcharges were prohibited by Proposition 103. Proposition 103 also permits consumers to sue insurance companies for refunds when they violate its requirements, FTCR said.
Rather than require Mercury to refund the overcharges, estimated to be at least $76 million, the proposed settlement would have allowed the company to send out $45 coupons that could only be used toward the purchase of additional Mercury insurance policies or extra coverage. The coupons could not be used to offset the cost of an existing insurance policy. Consequently, FTCR intervened in the case in 2005 to object.
"Coupon settlements that have no real value and come with conditions that make them impossible to use undermine public confidence in the system of justice and encourage the defendants' lobby in its campaign to shut the courthouse doors to legitimate suits," said Harvey Rosenfield, an FTCR lawyer for the case and the author of Proposition 103. The Superior Court's decision protects the integrity of the legal process and the rights of Mercury's current and former customers."
FTCR's Litigation Project is directed by Pamela Pressley. The Bay area firm of Chavez and Gertler are FTCR's co-counsel in the case.
Sunday, August 19, 2007
Friday, August 10, 2007
Liability insurance
Liability insurance is a part of the general insurance system of risk transference. Originally, individuals or companies that faced a common peril, formed a group and created a self-help fund out of which to pay compensation should any member incur loss. The modern system relies on dedicated carriers to offer protection against specified perils in consideration of a premium. Liability insurance is designed to offer specific protection against third party claims, i.e., payment is not typically made to the insured, but rather to someone suffering loss who is not a party to the insurance contract. In general, damage caused intentionally and contractual liability are not covered under liability insurance policies. When a claim is made, the insurance carrier has the right to defend the insured. The legal costs of a defense are not affected by any policy limits, which is useful because they can be significant where long trials are held to determine either fault or the amount of damages.
Overview of Liability Insurance
In many countries, liability insurance is a compulsory form of insurance for those at risk of being sued by third parties for negligence. The most usual classes of mandatory policy cover the drivers of vehicles, those who offer professional services to the public, those who manufacture products that may be harmful, and those who offer employment. The reason for such laws is that the classes of insured are deliberately engaging in activities that put others at risk of injury or loss. Public policy therefore requires that such individuals should carry insurance so that, if their activities do cause loss or damage to another, money will be available to pay compensation. In addition, there are a further range of perils that prudent people insure against and, consequently, the number and range of liability policies has increased in line with the rise of contingency fee litigation offered by lawyers (sometimes on a class action basis). Such policies fall into three main classes:
Public liability
Industry and commerce are based on a range of processes and activities that have the potential to affect third parties (members of the public, visitors, trespassers, sub-contractors, etc. who may be physically injured or whose property may be damaged or both). It varies from state to state as to whether either or both employer's liability insurance and public liability insurance have been made compulsory by law. Regardless of compulsion, however, most organizations include public liability insurance in their insurance portfolio even though the conditions, exclusions, and warranties included within the standard policies can be onerous.
Private individuals also occupy land and engage in potentially dangerous activities. For example, a rotten branch may fall from an old tree and injure a pedestrian, and many ride bicycles and skateboards in public places. The majority of states requires motorists to carry insurance and criminalise those who drive without a valid policy. Many also require insurance companies to provide a default fund to offer compensation to those physically injured in accidents where the driver did not have a valid policy.
Product
In the emerging . Product liability insurance is not a compulsory class of insurance in all countries, but legislation such as the UK. Consumer Protection Act 1987 and the EC Directive on Product Liability (25/7/85) require those manufacturing or supplying goods to carry some form of product liability insurance, usually as part of a combined liability policy. The scale of potential liability is illustrated by cases such as those involving Mercedes-Benz for unstable vehicles and Perrier for benzene contamination, but the full list covers pharmaceuticals and medical devices, asbestos, tobacco, recreational equipment, mechanical and electrical products, chemicals and pesticides, agricultural products and equipment, food contamination, and all other major product classes.
Employers
New policies have been developed to cover any liability that might be imposed on an employer if an employee is injured in the course of his or her employment. In many states, the insurers are prohibited from including conditions within their policies that seek to impose any unreasonable conditions precedent to liability, or require the insured either to take reasonable precautions or to comply with current legislation and regulations. In those countries where such insurance is not compulsory, smaller organizations are often driven into bankruptcy when faced by claims not covered by insurance.
Many of the public and product liability risks are often covered together under a general liability (or "umbrella") policy. These risks may include bodily injury or property damage caused by direct or indirect actions of the insured.
Evidentiary rules regarding liability insurance
In the United States, most states make only the carrying of auto insurance mandatory. Where the carrying of a policy is not mandatory and a third party makes a claim for injuries suffered, evidence that a party has liability insurance is generally inadmissible in a lawsuit on public policy grounds, because the courts do not want to discourage parties from carrying such insurance. There are two exceptions to this rule:
1. If the owner of the insurance policy disputes ownership or control of the property, evidence of liability insurance can be introduced to show that it is likely that the owner of the policy probably does own or control the property.
2. If a witness has an interest in the policy that gives the witness a motive or bias with respect to specific testimony, the existence of the policy can be introduced to show this motive or bias. Federal rules of civil procedure rule 26 was amended in 1993 to require that any insurance policy that may pay or may reimburse be made available for photocopying by the opposing litigants, although the policies are not normally information given to the jury. Federal Rules of Appellate Procedure rule 46 says that an appeal can be dismissed or affirmed if counsel does not update their notice of appearance to acknowledge insurance. The Cornell University Legal Institute web site includes congressional notes.
Overview of Liability Insurance
In many countries, liability insurance is a compulsory form of insurance for those at risk of being sued by third parties for negligence. The most usual classes of mandatory policy cover the drivers of vehicles, those who offer professional services to the public, those who manufacture products that may be harmful, and those who offer employment. The reason for such laws is that the classes of insured are deliberately engaging in activities that put others at risk of injury or loss. Public policy therefore requires that such individuals should carry insurance so that, if their activities do cause loss or damage to another, money will be available to pay compensation. In addition, there are a further range of perils that prudent people insure against and, consequently, the number and range of liability policies has increased in line with the rise of contingency fee litigation offered by lawyers (sometimes on a class action basis). Such policies fall into three main classes:
Public liability
Industry and commerce are based on a range of processes and activities that have the potential to affect third parties (members of the public, visitors, trespassers, sub-contractors, etc. who may be physically injured or whose property may be damaged or both). It varies from state to state as to whether either or both employer's liability insurance and public liability insurance have been made compulsory by law. Regardless of compulsion, however, most organizations include public liability insurance in their insurance portfolio even though the conditions, exclusions, and warranties included within the standard policies can be onerous.
Private individuals also occupy land and engage in potentially dangerous activities. For example, a rotten branch may fall from an old tree and injure a pedestrian, and many ride bicycles and skateboards in public places. The majority of states requires motorists to carry insurance and criminalise those who drive without a valid policy. Many also require insurance companies to provide a default fund to offer compensation to those physically injured in accidents where the driver did not have a valid policy.
Product
In the emerging . Product liability insurance is not a compulsory class of insurance in all countries, but legislation such as the UK. Consumer Protection Act 1987 and the EC Directive on Product Liability (25/7/85) require those manufacturing or supplying goods to carry some form of product liability insurance, usually as part of a combined liability policy. The scale of potential liability is illustrated by cases such as those involving Mercedes-Benz for unstable vehicles and Perrier for benzene contamination, but the full list covers pharmaceuticals and medical devices, asbestos, tobacco, recreational equipment, mechanical and electrical products, chemicals and pesticides, agricultural products and equipment, food contamination, and all other major product classes.
Employers
New policies have been developed to cover any liability that might be imposed on an employer if an employee is injured in the course of his or her employment. In many states, the insurers are prohibited from including conditions within their policies that seek to impose any unreasonable conditions precedent to liability, or require the insured either to take reasonable precautions or to comply with current legislation and regulations. In those countries where such insurance is not compulsory, smaller organizations are often driven into bankruptcy when faced by claims not covered by insurance.
Many of the public and product liability risks are often covered together under a general liability (or "umbrella") policy. These risks may include bodily injury or property damage caused by direct or indirect actions of the insured.
Evidentiary rules regarding liability insurance
In the United States, most states make only the carrying of auto insurance mandatory. Where the carrying of a policy is not mandatory and a third party makes a claim for injuries suffered, evidence that a party has liability insurance is generally inadmissible in a lawsuit on public policy grounds, because the courts do not want to discourage parties from carrying such insurance. There are two exceptions to this rule:
1. If the owner of the insurance policy disputes ownership or control of the property, evidence of liability insurance can be introduced to show that it is likely that the owner of the policy probably does own or control the property.
2. If a witness has an interest in the policy that gives the witness a motive or bias with respect to specific testimony, the existence of the policy can be introduced to show this motive or bias. Federal rules of civil procedure rule 26 was amended in 1993 to require that any insurance policy that may pay or may reimburse be made available for photocopying by the opposing litigants, although the policies are not normally information given to the jury. Federal Rules of Appellate Procedure rule 46 says that an appeal can be dismissed or affirmed if counsel does not update their notice of appearance to acknowledge insurance. The Cornell University Legal Institute web site includes congressional notes.
Expatriate insurance
Expatriate Insurance policies are designed to cover financial and other losses incurred while living and working in a country other than one's own.
Insurance should be arranged prior to relocating to a new country or destination. Policies will generally cover the duration of your stay and can be purchased on a 6 month to annual basis. It is important to purchase this insurance from a reputable company.
The most common insurance policies purchased by expatriates include:
* Personal Property
* Automobile Insurance
* Personal Liability
* Emergency Evacuation
* Medical and Dental coverage
* Short-Term Travel Insurance
In some cases, specialty insurance can be purchased for high-risk areas of the world that provide coverage for:
* War and Terrorism Terrorism
* Kidnap and Ransom Kidnap
* Personal Accident Personal Accident
The following detail provides information on the most common insurance purchased by expatriates.
Expatriate Personal Property Insurance
Coverage applicable to an overseas move is very different from your typical domestic homeowners or renters policy. Package policies specifically designed to cover the unique aspects of international assignments are recommended. Areas of coverage to be considered include: coverage for items left in commercial storage; transportation coverage on items shipped by sea, air and truck; coverage at your residence abroad for fire, theft, acts of God; and protection for effects while traveling temporarily within the United States or other countries. It is advisable to seek insurance which covers all losses except those specifically omitted in the exclusions section of the policy, as well as “Replacement Cost” coverage, assuring a non-depreciated claims settlement. "Replacement Cost" assures that your claims will be paid based on the cost to replace the item and not on a depreciated value.
Expatriate International Auto Insurance
Those operating vehicles internationally must purchase both Physical Damage and Liability coverage. Physical Damage provides both collision and comprehensive coverage. Collision insurance is coverage for your vehicle while being operated. Comprehensive insurance provides coverage for the vehicle while it is parked, including theft, vandalism, etc. Each coverage is provided under one policy. It is recommended that this coverage be purchased from a U.S. insurance company. The purchase of this coverage within the country in which you are located can be very risky. Many local companies are poorly regulated and, therefore, provide inconsistent claims settlements. In many cases, there is no regulatory body which can assist if you are dissatisfied with your claims settlement.
Automobile Primary Liability insurance must be purchased in the country in which you are located. Local governments will require this in order to register your vehicle. Be aware that limits of coverage can be very low in many countries. If you are uncomfortable with the level of coverage available in your country, you may wish to obtain Excess Liability insurance. This coverage simply increases your locally purchased primary coverage to an appropriate level of protection
Be aware when shopping for Primary Liability insurance that rates may vary drastically. Do not assume that the premium quote you receive is the standard within that country. Shopping for competitive rates is as essential abroad as it is in the United States.
Expatriate International Health Insurance
If you are not covered under a group medical insurance program, an individual international medical policy should be purchased. These policies include worldwide medical protection and also can include evacuation services. Costs are reasonable and, in many cases, less expensive than stateside coverage. In addition, those traveling abroad for shorter periods of time, may wish to purchase a travel medical policy which assists during emergency medical situations abroad. These policies are less expensive as routine medical procedures are not covered.
It is important to understand how your medical policy will assist you should you need urgent medical care in your host country. May countries have less than adequate facilities and may require immediate payment for services. Therefore, it is advisable to understand the assistance your policy will provide to locate suitable medical facilities.
Insurance should be arranged prior to relocating to a new country or destination. Policies will generally cover the duration of your stay and can be purchased on a 6 month to annual basis. It is important to purchase this insurance from a reputable company.
The most common insurance policies purchased by expatriates include:
* Personal Property
* Automobile Insurance
* Personal Liability
* Emergency Evacuation
* Medical and Dental coverage
* Short-Term Travel Insurance
In some cases, specialty insurance can be purchased for high-risk areas of the world that provide coverage for:
* War and Terrorism Terrorism
* Kidnap and Ransom Kidnap
* Personal Accident Personal Accident
The following detail provides information on the most common insurance purchased by expatriates.
Expatriate Personal Property Insurance
Coverage applicable to an overseas move is very different from your typical domestic homeowners or renters policy. Package policies specifically designed to cover the unique aspects of international assignments are recommended. Areas of coverage to be considered include: coverage for items left in commercial storage; transportation coverage on items shipped by sea, air and truck; coverage at your residence abroad for fire, theft, acts of God; and protection for effects while traveling temporarily within the United States or other countries. It is advisable to seek insurance which covers all losses except those specifically omitted in the exclusions section of the policy, as well as “Replacement Cost” coverage, assuring a non-depreciated claims settlement. "Replacement Cost" assures that your claims will be paid based on the cost to replace the item and not on a depreciated value.
Expatriate International Auto Insurance
Those operating vehicles internationally must purchase both Physical Damage and Liability coverage. Physical Damage provides both collision and comprehensive coverage. Collision insurance is coverage for your vehicle while being operated. Comprehensive insurance provides coverage for the vehicle while it is parked, including theft, vandalism, etc. Each coverage is provided under one policy. It is recommended that this coverage be purchased from a U.S. insurance company. The purchase of this coverage within the country in which you are located can be very risky. Many local companies are poorly regulated and, therefore, provide inconsistent claims settlements. In many cases, there is no regulatory body which can assist if you are dissatisfied with your claims settlement.
Automobile Primary Liability insurance must be purchased in the country in which you are located. Local governments will require this in order to register your vehicle. Be aware that limits of coverage can be very low in many countries. If you are uncomfortable with the level of coverage available in your country, you may wish to obtain Excess Liability insurance. This coverage simply increases your locally purchased primary coverage to an appropriate level of protection
Be aware when shopping for Primary Liability insurance that rates may vary drastically. Do not assume that the premium quote you receive is the standard within that country. Shopping for competitive rates is as essential abroad as it is in the United States.
Expatriate International Health Insurance
If you are not covered under a group medical insurance program, an individual international medical policy should be purchased. These policies include worldwide medical protection and also can include evacuation services. Costs are reasonable and, in many cases, less expensive than stateside coverage. In addition, those traveling abroad for shorter periods of time, may wish to purchase a travel medical policy which assists during emergency medical situations abroad. These policies are less expensive as routine medical procedures are not covered.
It is important to understand how your medical policy will assist you should you need urgent medical care in your host country. May countries have less than adequate facilities and may require immediate payment for services. Therefore, it is advisable to understand the assistance your policy will provide to locate suitable medical facilities.
Thursday, August 9, 2007
Business Auto Insurance
There are a number of parts to a commercial auto insurance policy - some are required and others are just good to have, if you have the cash to pay for them. The more you add to your package, of course, the more expensive your premium.
Liability will be the biggest factor in your business auto policy when it comes to protecting your business. It can be broken down into two parts: bodily injury and property damage. Bodily injury liability (BIL) will protect your business from being sued for bodily injuries, lost wages, or even death by a person involved in an accident with one of your employees. Property damage liability will cover the cost of damages done to property and structures not owned by your employee or business in the event of an accident.
Medical payments is another part of a policy that is required by most states. If your employee is in an accident and the other person involved is hurt, it will cover the cost of treatments that person needs.
Although many states don't require collision and comprehensive insurance, it's good to have since it will protect your property. Collision will cover the cost of repairs for damage done to a company car in the event of an accident (most non-owned polices do not include collision). Comprehensive coverage takes effect if your car is broken into, vandalized, or damaged during a natural disaster.
Uninsured/Underinsured motorists coverage is still required by some states, but usually it's optional. This type of coverage gets tricky, but basically if you are involved in an accident with a driver who has inadequate insurance coverage, or none at all, this will kick in and cover damages and injuries.
Other extras include towing and rental reimbursement. This coverage doesn't include towing due to illegal parking, but if your disabled company car must be towed to a repair shop, it will cover that. And if you need to rent a car in the meantime, it will cover that cost.
Liability will be the biggest factor in your business auto policy when it comes to protecting your business. It can be broken down into two parts: bodily injury and property damage. Bodily injury liability (BIL) will protect your business from being sued for bodily injuries, lost wages, or even death by a person involved in an accident with one of your employees. Property damage liability will cover the cost of damages done to property and structures not owned by your employee or business in the event of an accident.
Medical payments is another part of a policy that is required by most states. If your employee is in an accident and the other person involved is hurt, it will cover the cost of treatments that person needs.
Although many states don't require collision and comprehensive insurance, it's good to have since it will protect your property. Collision will cover the cost of repairs for damage done to a company car in the event of an accident (most non-owned polices do not include collision). Comprehensive coverage takes effect if your car is broken into, vandalized, or damaged during a natural disaster.
Uninsured/Underinsured motorists coverage is still required by some states, but usually it's optional. This type of coverage gets tricky, but basically if you are involved in an accident with a driver who has inadequate insurance coverage, or none at all, this will kick in and cover damages and injuries.
Other extras include towing and rental reimbursement. This coverage doesn't include towing due to illegal parking, but if your disabled company car must be towed to a repair shop, it will cover that. And if you need to rent a car in the meantime, it will cover that cost.
5 Buying Tips for Small Business Liability Insurance
Owning and operating a small business comes with plenty of responsibility and accountability. Even if you operate with the utmost care and provide the best quality and services, a client can perceive you did them wrong. Is your business protected with liability insurance? Learn what all successful business owners know about small business liability insurance.
Who Needs Business Liability Insurance?
Over 78% of all U.S. businesses are structured as a partnership or sole proprietorship, according to Bizstats.com. For the majority of small business owners, this form of ownership puts your business and personal liabilities at risk. Owning business liability insurance protects both your business and personal life from financial ruin.
A common misconception of a limited liability company (LLC) or an incorporated company is a business owner is protected from personal liability and liability insurance is not necessary.
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You can be personally liable if:
you have signed a personal guarantee for a loan
personally you have injured someone
you have acted in an irresponsible or illegal manner
you do not operate your business as a separate entity
What is Business Liability Insurance?
Business liability insurance protects your small business in the event of a lawsuit for personal injury or property damages. It will usually cover the damages from a lawsuit along with the legal costs. Depending on your business needs, liability insurance can purchased in many forms.
Types of Business Liability Insurance
General Liability Insurance: This form of business liability insurance is the main coverage to protect your business from: injury claims, property damages, and advertising claims. General liability insurance also known as Commercial General Liability (CGL) may be the only type of business liability insurance you need depending on your business situation.
Professional Liability Insurance: Business owners providing services will need to consider having professional liability insurance known as errors and omissions. This coverage protects your business against malpractice, errors, negligence and omissions. Depending on your profession, it may be a legal requirement to carry such a policy. Doctors require coverage to practice in certain states. Technology consultants often need coverage in independent contractor work arrangements.
Product Liability Insurance: Small businesses selling or manufacturing products should be protected in the event of a person becoming injured as a result of using the product. The amount of coverage and the level of risk depends on your business type. A retailer of scrap book supplies will have far less risks than a wood stove builder.
5 Buying Tips for Small Business Liability Insurance
The costs of covering your business and yourself from a potential lawsuit are high. After a decade of intense competition among insurers and low premiums, the fallout from the Sept 11 terrorist attacks and the stock market have increased insurance costs while providing less coverage. Every business owner renewing an existing policy or starting a new policy needs to shop for the best business liability insurance rates and coverage. Here are 5 tips to shop the best rates:
Belong to an Association: Many trade associations and business groups such as the Chamber of Commerce provide members the benefit of purchasing insurance at group rates. Explore alternative trade associations for lower rates and a possible fit with your business.
Compare coverage: The extent of business liability coverage varies from insurer to insurer. Consider if and how much legal fees are covered. Review the policy details to know what is included and excluded in the coverage.
Assess your Industry’s Settlements: To gain a better perspective of the amount of coverage your small business needs, take a look at your industry. Review the recent legal actions and settlements in your field. Talk to peers and find their level of coverage. Using your peer feedback and industry research, determine the average legal costs and settlement to set your coverage limits.
Get the Package Deal: Purchasing separate types of business insurance from various insurers can quickly escalate your premiums. Depending on your business situation, it can make sense to buy a package of policies such as Business Owners Policy (BOP) to cover your business and save on rates. Be sure to understand the extent of coverage of the package. Not every type of insurance falls under a BOP. A business professional will often require a separate errors & omissions coverage.
Find a Specialist Broker: Your business and industry has unique needs and risks. To get the best available coverage and rates, consider working with an insurance broker who knows your business and has experience in your industry.
Protecting your small business from risks is the foundation of success. Take the necessary time to investigate your business liability insurance needs with an insurance representative, your industry association, and peers. It could be the most important decision to your company’s survival.
Who Needs Business Liability Insurance?
Over 78% of all U.S. businesses are structured as a partnership or sole proprietorship, according to Bizstats.com. For the majority of small business owners, this form of ownership puts your business and personal liabilities at risk. Owning business liability insurance protects both your business and personal life from financial ruin.
A common misconception of a limited liability company (LLC) or an incorporated company is a business owner is protected from personal liability and liability insurance is not necessary.
Sponsored Links
恒生商務卡
一卡繳付商務支出，開支管理更具效率 遞交申請即獲百佳現金券
www.hangseng.com
Business Opportunities HK
Find the Top 5 Small Business opportunities in HK. Free Service.
www.Biz4You.net/HongKongMatchup
Educate Yourself CD-ROMs
Start Your Own Business Platinum Computer Learning Made Easy
www.educateyourselfcdroms.com
You can be personally liable if:
you have signed a personal guarantee for a loan
personally you have injured someone
you have acted in an irresponsible or illegal manner
you do not operate your business as a separate entity
What is Business Liability Insurance?
Business liability insurance protects your small business in the event of a lawsuit for personal injury or property damages. It will usually cover the damages from a lawsuit along with the legal costs. Depending on your business needs, liability insurance can purchased in many forms.
Types of Business Liability Insurance
General Liability Insurance: This form of business liability insurance is the main coverage to protect your business from: injury claims, property damages, and advertising claims. General liability insurance also known as Commercial General Liability (CGL) may be the only type of business liability insurance you need depending on your business situation.
Professional Liability Insurance: Business owners providing services will need to consider having professional liability insurance known as errors and omissions. This coverage protects your business against malpractice, errors, negligence and omissions. Depending on your profession, it may be a legal requirement to carry such a policy. Doctors require coverage to practice in certain states. Technology consultants often need coverage in independent contractor work arrangements.
Product Liability Insurance: Small businesses selling or manufacturing products should be protected in the event of a person becoming injured as a result of using the product. The amount of coverage and the level of risk depends on your business type. A retailer of scrap book supplies will have far less risks than a wood stove builder.
5 Buying Tips for Small Business Liability Insurance
The costs of covering your business and yourself from a potential lawsuit are high. After a decade of intense competition among insurers and low premiums, the fallout from the Sept 11 terrorist attacks and the stock market have increased insurance costs while providing less coverage. Every business owner renewing an existing policy or starting a new policy needs to shop for the best business liability insurance rates and coverage. Here are 5 tips to shop the best rates:
Belong to an Association: Many trade associations and business groups such as the Chamber of Commerce provide members the benefit of purchasing insurance at group rates. Explore alternative trade associations for lower rates and a possible fit with your business.
Compare coverage: The extent of business liability coverage varies from insurer to insurer. Consider if and how much legal fees are covered. Review the policy details to know what is included and excluded in the coverage.
Assess your Industry’s Settlements: To gain a better perspective of the amount of coverage your small business needs, take a look at your industry. Review the recent legal actions and settlements in your field. Talk to peers and find their level of coverage. Using your peer feedback and industry research, determine the average legal costs and settlement to set your coverage limits.
Get the Package Deal: Purchasing separate types of business insurance from various insurers can quickly escalate your premiums. Depending on your business situation, it can make sense to buy a package of policies such as Business Owners Policy (BOP) to cover your business and save on rates. Be sure to understand the extent of coverage of the package. Not every type of insurance falls under a BOP. A business professional will often require a separate errors & omissions coverage.
Find a Specialist Broker: Your business and industry has unique needs and risks. To get the best available coverage and rates, consider working with an insurance broker who knows your business and has experience in your industry.
Protecting your small business from risks is the foundation of success. Take the necessary time to investigate your business liability insurance needs with an insurance representative, your industry association, and peers. It could be the most important decision to your company’s survival.
Saturday, July 28, 2007
Pet insurance
Pet Insurance pays the veterinary costs if one's pet is ill or has an accident. Some policies also pay out if the pet dies, is lost or stolen.
The purpose of pet insurance is to remove the need for the "life or money" decision if a pet guardian is faced (also called Economic Euthanasia) with an unexpected and very expensive veterinary bill. Since pets are increasingly considered part of the family more and more and veterinary medicine is increasingly using expensive human medical techniques and drugs, pet guardians are facing this emotional decision more frequently than in the past.
UK Policies usually pay 100% of vets fees. Policies in the USA usually offer to pay 80-90% of the costs minus a $50-100 deductible depending on the company (VPI Pet Insurance offers a $50 deductible, while PetCare pet insurance offers a $100 deductible). The owner will usually pay the amount due to the Vet, and then send in the claim form and receive the reimbursement. In the case of a very high bill, the Vet will usually allow the owner to work out a contingency plan to pay the Vet when the claim is processed. However, providers such as Direct Line Pet Insurance do pay the vets directly (subject to vets agreement) on behalf of customers.
Pet insurance generally will not pay for preventative veterinary care (such as vaccinations) or elective veterinary care (such as neutering) since these costs are known and can be budgeted for in advance. Recently however, some companies in the UK and US (Such as PetPlan & Direct Line Pet Insurance, in the UK, and VPI, in the US) are offering routine care coverage as well to help reimburse for all costs related to pet care.
In addition, companies are not equipped to pay for pre-existing medical conditions for a pet (much like trying to get house insurance for your already burning house), which is why, if one does choose to sign their pet up for insurance, it's best to do it as a puppy.
Some insurers cover more than just health issues. It can also cover boarding costs for animals if the owner needs to go into the hospital, and money to help with retrieval of a lost animal, as reward or for posters. With some policies, the owner can receive money if forced to cancel a holiday due to the pet needing urgent treatment or dying.
Some UK policies for dogs also include third party liability insurance. This means, for example, that if the dog causes a car accident that damages a vehicle, the insurance will pay to rectify the damage (under the 1971 Animals Act, owners are legally responsible for their dogs).
In the US, VPI Pet Insurance, the largest of the pet insurance companies, offers insurance for cats, dogs, birds and many types of exotic animals. Other companies are now emerging that offer competative plans for dogs and cats such as Global Pet Insurance which offers an array of customizable plans to allow the consumer to now tailor exactly what they want in a pet insurance plan.
Pet Insurance is available in all developed counties and the precise details of the insurance cover will vary from policy to policy.
Business insurance
Professional Errors and Omissions Liability Coverage (Miscellaneous Professional Liability)
Errors & Omissions (E & O) Professional Liability insurance is purchased by companies to protect against the costly litigation that could arise from claims alleging negligence or inadequacy in the performance of their professional services. Any individual, partnership or corporation providing professional services can be exposed to liability as a result of any negligence in providing these services. E&O coverage also protects the mistakes of employees and Independent Contractors the firm may hire.
This coverage is not provided in Commercial General Liability (CGL) which primarily responds to property damage and bodily injury claims.
There are hundreds of forms of E&O insurance based on the type of industry or service you provide. Some policies are written based on specified professions such as:
- Accountants
- Architects & Engineers
- Accountants
- Architects & Engineers
- Associations
- Bankers
- Doctors
- Insurance Agents and Brokers
- Lawyers
There are a host of other businesses outside of traditional Errors & Omissions exposures that provide professional services to others. These would be considered Miscellaneous Professional Liability and there may be broader forms available for certain industry groups. Some examples are:
- Media: Broadcasters, Advertisers, Music/Entertainment, TV/Film producers
- Management Consultants
- E-Commerce
- Technology/Software providers or developers
- Advertising and Publishing Errors and Omissions
- Property Managers
Technology Errors and Omissions Liability Coverage is Errors and Omissions Liability Coverage specifically designed for technology companies.
Intellectual Property Liability Coverage Within Various Errors and Omissions Policies
This type of coverage is provides protection for various types of intellectual property such as copyrights, trademarks, domain names, slogans, etc. Technology Errors and Omissions policies often provide coverage for software code under copyright protection. Cyber liability coverages that include media errors and omissions provide coverage for copyright/trademark liability for digital content. Publishers errors and omissions provides this type of coverage for traditional media such as catalogs.
Cyber liability coverage
A term for a policy that includes coverage for risks encountered companies with Internet websites. The following are typical examples of cyber-liability coverages:
- Network security
- Privacy
- Digital Media
- Virus
- Digital advertising and personal injury
- Digital Asset Coverage
- Cyber extortion
- Digital business income coverage
eCommerce liability coverage is another term for cyber liability coverage
Network Security Liability Coverage within a Cyber Liability Policy
Coverage can be provided against allegations/claims made by third parties that were economically harmed by a breach in the insured’s network security. This type of coverage would cover disparaging information that is publicly made known, embarrassing information made public and identity theft. In some policies regulatory actions such as patient information and HIPAA fines and penalties are also covered.
Privacy Liability Coverage within a Cyber Liability Policy
Extends network security coverage to also cover paper files.
Media Liability Coverage within a Cyber Liability Policy
Coverage for content injury claims such as mis-use or unauthorized use of copyrighted material. When included in a cyber liability policy this refers to digital content. When coverage is for paper documents it is called Publishers Liability.
Warranty Coverage
Errors and omissions liability policies exclude claims arising out of contractual provisions if there is no error or omission causing the incident. Parties to contracts often add additional provisions such as warrantees that errors and omissions policies will not respond to. A warranty policy is tailored to cover specific warrantees in specific contracts. Examples of this would be covering the warranties involved in digital certificates and service level agreements.
Publishers Liability Coverage
Coverage for copyright and other disputes arising from content in publications such as brochures, books, manuals and catalogues.
Advertising Injury Coverage within a General Liability Policy
This covers injury arising out of libel or slander, the violation of the right to privacy, misappropriation of advertising ideas, or the infringement of copyright, title or slogan committed in the course of advertising goods and services. Most insurers exclude content on the internet. Some cyber liability policies permit an endorsement that adds coverage for digital content to eliminate this gap.
Personal Injury Coverage
Injury other than bodily injury arising out of false arrest or detention, malicious prosecution, wrongful entry or eviction, libel or slander, or violation of a person's right to privacy committed other than in the course of advertising, publishing, broadcasting or telecasting. Due the last part of this wording companies that publish content on their website would not be covered unless they purchased a cyber liability policy with a personal injury endorsement.
Internal Breach of Security Coverage within a Cyber Liability Policy
When Network Security Liability coverage includes internal breach, it provides coverage for instances of network security breach by an employee or employees.
Example: A rogue employee abuses their access to the company network in order to obtain privacy information to cause identity theft.
Contingent Bodily Injury
When included in a cyber liability policy, this type of coverage would cover incidents where bodily injury damage to a third party occurred as a result of digital events.
Example: The insured has a website that provides information on drug interactions. A third party accesses the information and is hospitalized, due to the information being incorrect.
Digital Asset Protection
Coverage for loss of data and/or network resources in a cyber liability policy.
Business Income Coverage
In a traditional property insurance policy this covers loss of income by an insured that arises out of direct physical damage. An example would be plan store burning down and the insured losing revenue while it is being re built. When included in a cyber liability policy it covers loss of income due to network intrusion and/or other computer event that makes the network inaccessible or operates slowly.
Property Coverage
Fire and other peril coverage for physical property such as buildings and contents. When applied toward digital assets such as data it is called Digital Asset Protection.
Cyber Extortion
Coverage that pays for ransom money and, in some instances, the cost to investigate and/or catch extortionists. This applies only if it arises out of a third party claiming they have sensitive information gained from unauthorized access to your network, and that they will release this information to the public unless you pay the ransom. The data is being held hostage.
Directors and Officers Liability
Coverage for the fiduciary duties of directors and officers while acting in their capacity as a director or officer. This is not covered by any other policy.
Package (Property and Liability)
Most businesses have these coverages as they are usually the first insurance purchase made by business owners and there are usually discounts for buying them together. See property coverage and commercial general liability coverage.
Employment Practices Liability
EPLI covers businesses against claims by workers that their legal rights as employees of the company have been violated. EPLI provides protection against many kinds of employee lawsuits, and will include all or some of the following:
- Sexual harassment
- Discrimination
- Wrongful termination
- Breach of employment contract
- Negligent evaluation
- Failure to employ or promote
- Wrongful discipline
- Deprivation of career opportunity
- Wrongful infliction of emotional distress
- Mismanagement of employee benefit plans
Fiduciary Liability
Fiduciary liability insurance is a popular vehicle for the financial protection of fiduciaries of employee benefit plans against legal liability arising out of their role as fiduciaries, including the cost of defending those claims that seek to establish such liability. Most popular is a stand-alone form or separate fiduciary liability policy. Those having anything to do with pension, savings, profit-sharing, employee benefit, and health/welfare plans are liable to the beneficiaries for any breach of their fiduciary duties.
Crime Coverage
Fidelity/Crime Insurance protects organizations from loss of money, securities or inventory resulting from crime. Most companies purchase coverage for employee dishonesty.
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