F I R M Solutions, LLC

Errors and Ommissions

What is E&O Insuance?

Errors and omissions insurance, commonly referred to as E&O, is professional liability insurance for companies and individuals. It covers any company or individual in the event of an error or omission made while servicing and/or selling products. If a client feels that a professional has provided services that did not yield the expected or promised results, that client has the option to take legal action against the professional or company. Errors and omissions insurance covers the judgments, settlements and defense costs incurred when a client takes legal action against a professional or company. Even if the client’s case has little merit and the allegations against the individual are groundless, proving a professional’s innocence can be costly enough to end even the healthiest business.

Our Business is Very Careful, Do We Still Need E&O Coverage?

Even the most cautious professionals and businesses are prone to the occasional mistakes. The painful truth is that mistakes, no matter how innocent, can cost a small fortune to rectify. A professional or business that is operating without errors and omissions coverage is taking an enormous financial risk. Even with general liability insurance, the monetary losses resulting from a misplaced shipment or medical malpractice are not covered. Errors & Omissions insurance protects businesses and individuals from embarrassment and bad reputations as well as losing clients.

Let FIRM Solutions help with taking a look at your business to make sure your properly covered. Give us a call at 888-471-FIRM (3476) 760-471-1312 or info@firmsolutions.net

Small Business Insurance

Small business owners are a unique breed, resilient and despite the economic uncertainty that surrounds us all we continue to remain entrepreneurial. In order to keep up with today’s ever changing market place my small business clients are changing their business plans or aggressively changing directions to keep the doors open. Why is this important? As you change your business plan or model, you change your exposure to losses and change your level of risk.

This does not always mean buying some new fancy endorsement or increasing coverage. Thus increasing your insurance premiums. What it does mean is that by staying in touch with your agent, as you change, we can actually keep up with those changes. All too often I get a phone call from prospective clients that are shopping for new insurance package for their business. It’s all about the price, in the beginning. By the time the first conversation is over I usually hear things like no one has ever asked me that. But on my end I have a full understanding of what they do, the company history and more importantly where they are going in the next year and the next five years.

At  F I R M Solutions we stay in touch with our small business clients, and not just at renewal. Maintaining an open dialogue with all our clients helps us make sure that our clients are always covered properly, all the time. I accept that responsibility as part of my job. On the other hand I expect my clients to keep me informed when they want to make changes to their business. It’s a true partnership and it works for both of us.

Professional Liability

I recently had a conversation with a client regarding adding professional liability in addition to his commercial general liability policy. His response was that’s only for attorneys, real estate agents and physicians. True, those are popular professions that do require professional liability however, there literally hundreds of other classifications that need this type of coverage as well.

Engineers, therapist, counselors and consultants are a few of the often overlooked risks. One of the tools I use to identify the need for professional liability is point out the professional liability exclusion on the commercial general liability policy. It’s a good time to point out  that the CGL policy protects them for the basics of bodily injury and property damage. In short, professional liability coverage provides protection in the event that an error or omission on “your” part has caused a financial loss for your client.

If you are in the business of providing a service to your client for a fee, you have a professional liability exposure. You may want to consider what will happen if the service is not done correctly, or on time, and it costs your client money or harms their reputation. Take a look at your last years client list and honestly review your exposure.

Not all professional liability policies are the same. This is the number one reason we take the time to learn what our clients are doing with their business. What’s the exposure and how is their operation different. from the standard ISO definition. Asking the right questions taking the time necessary to fully explain the risk to an underwriter will make a difference on the premium.

FIRM Solutions will take the time to learn about your business and the services you offer and make the correct recommendations for your insurance needs. Lets us help you with your professional liability needs.

888-471-F I R M (3476) 760-471-1312 or info@firmsolutions.net

LIFE INSURANCE

 

Life exists between the hours of the workweek. Most importantly, it exists in the eyes of sons and daughters and those you hold close – those forever expecting your safe return home.

Life insurance from FIRM Solutions, LLC gives you the opportunity to protect your family’s dreams, ambitions, and finances should an unexpected death occur.

With life insurance from FIRM Solutions, LLC, you can help your family:

• Keep the ability to pay the home mortgage.
• Maintain their current standard of living.
• Pay off debts, estate taxes, and final expenses.
• Create a fund for college education.
• Create a fund for a family member with special needs.
• Protect your family’s dreams for the future.

A good life insurance policy would handle the financial responsibilities you left behind so family members won’t be burdened. Unlike the funds from an estate, the benefits from a life insurance policy will shoot straight to the beneficiaries, without any roadblocks. Tax Free!

In my 20 years experience in this business, no recipient of a death benefit  has ever complained that their loved one had too much life insurance. Every aspect of a untimely death will be made  better with the presence of LIFE INSURANCE.

1-888-471-FIRM (3476) 1-760-471-1312 or info@firmsolutions.net

Contractor Bonds

California, like almost all states, requires that contractors obtain and carry license bonds.  While most new contractors know that they need to secure a bond to start and maintain a successful business many people do not know exactly what it means to be bonded.  Allow me to briefly illuminate the purpose that a bond serves and how they work.

A surety bond is a three-part agreement among:

        The contractor, who buys the bond
        The obligee, who requires the bond
        The company, who sells the bond

The primary purpose of contractor license bonds is to protect the consumer from any wrongdoing on the part of the contractor.  Among the parties who require these bonds are local and state regulatory offices and consumer protection agencies.  Likely the major misconception about surety bonds is that they protect the contractor.  In all actually, they protect the consumer.  In the event that a claim is filed against the contractor he or she is required to pay out on that claim.  Their bond can give them credit to do so, as they are truly a form of credit, rather than a form of insurance, which protects the obligee.  Claims on a bond can occur for a variety of reasons, but often the claim falls into one of two major categories; namely the financial misconduct of the contractor or the contractor's failure to follow state or local laws and regulations.

FIRM Solutions can quote and issue bonds directly over the phone in most cases and accept all forms of payment. Most applications are simple one page apps that require the most basic information. Call us today for all your bonding needs.

info@firmsolutions.net or 877-471-FIRM (3476) or 760-471-1312

Home Based Business Insurance

More and more homeowners are operating their new businesses from home. The advantages are obvious: running a home-based business is convenient and cheaper than renting or buying commercial office space. But running any business — including a home office — without adequate insurance coverage can be a recipe for disaster.

Neglecting to purchase separate property and casualty insurance for your home-based business can be a costly mistake. Your homeowner's policy might not offer enough protection. Most homeowners' policies cover only $1,000 to $2,500 for business equipment, and do not offer liability protection or loss-of-income coverage.

When deciding how much property and casualty insurance to purchase, examine your business and the amount of money you risk losing. Your home-based business should be covered for incidents such as:

• Client injury. If clients physically enter your home, you should be covered for injuries due to negligence. The coverage will pay for your client’s medical expenses and the cost of defending a lawsuit if you're sued.
• Business interruption. If damage to your company's operations limits your ability to work, you'll be covered for lost wages and ongoing expenses, including suppliers' invoices. Interruption insurance is typically included in your business property insurance, but depending on your other arrangements, you may wind up buying it separately.
• Business equipment damage. If your equipment is damaged or destroyed by theft, fire, or a natural disaster, you'll be reimbursed for the cost of repairing or replacing it.

If your home-based business requires a separate property and casualty plan, consider purchasing an endorsement; it increases the coverage of your homeowner’s policy and starts at about $15 a year. This option may make sense if you have inexpensive business equipment, no liability exposures, do not store business inventory at home, and do not rely solely on your income for survival.

You should think about purchasing a business owner's policy (BOP) if you stock a lot of inventory, manufacture products, or are at high risk for professional liability. BOPs offer the most comprehensive coverage available; in addition to providing home-office coverage, BOPs offer extended liability and equipment coverage.

GARAGEKEEPERS COVERAGE-THE DETAILERS SIDE

 

From the customers point of view. Finding a DETAILER or auto repair facility that does high quality repairs at a good price can be difficult enough, but developing a relationship of complete trust is even more of a challenge.
Auto dealers, body repair shops, auto painting shops, DETAILERS, service stations, storage garages and parking lots all are businesses wherein commercial general liability and business auto liability insurance are heavily intertwined. For this reason these businesses are insured by a “Garagekeepers Coverage" policy.

What is most unique about this insurance is the “Garagekeepers coverage."  It is coverage which applies to vehicles left with the business, by a customer, while it is being serviced, stored or DETAILED by the employees of the business. In most cases you will never know that an adverse event involving your vehicle has occurred while in the care, custody and control of a shop, garage or DETAILER.  As you can imagine, it is not in the best interests of the business in question, to advertise its lack of caution or accidental mishaps. So what if something does happen to your car?

Garagekeepers will pay for any damages incurred while your vehicle is in the care, custody and control of the business. This means that you do not have to involve your own insurance carrier in the claim or repair of damages. You won’t have to pay your deductible first and wait for the possibility of reimbursement. The insurance for the business will be first in line to respond on your behalf.

What if you leave your vehicle with a DETAILER for a complete interior and exterior detail. The DETAILER has limited parking and moves your vehicle to curbside parking in the course of waiting to get to your car. While it is parked on the street a careless motorist damages the entire left side of the vehicle while driving down the street.  The DETAILER is clearly are not legally liable in this case. Your vehicle was parked properly and was unattended at the time of the crash.

If the DETAILER has no Garagekeepers coverage most likely you will be notified of the accident and must report it to your own insurance carrier. It will be considered a no fault loss since your vehicle was parked and unattended, but you will need to be actively involved in the claim process and repair since your vehicle’s insurance policy is primary.

If the DETAILER is a professional, he realizes the importance of being properly insured. The DETAILERS garagekeepers policy will handle the claim and damage repair, and you will not be asked for a deductible. The shop will pay any deductible that applies to the loss. You the customer are out of pocket zero.

FIRM Solutions offers a wide verity of commercial insurance products. Our Garagekeepers package is one of the industries best. We have preferred underwriting status with the nations top commercial insurer. Our prices make it affordable to the new business owner and start up alike. Don’t run your business bare because you think it’s going to cost thousands of dollars to get Gargekeepers coverage. Our average policy for the new DETAILER runs $60 a month. 

Give us a call at 888-471-FIRM (3476) 760-471-1312 or info@firmsolutions.net

CGL Coverage Product & Completed Operations

Products:

If you manufacture, sell or distribute a product of any kind, there is a possibility that the use of this product by one of your customers could potentially cause bodily injury. The most common and apparent example of a Products Liability exposure is all the warning labels manufacturers attach to a stepladder. Next time you are at a home improvement store take a look at all the warning labels the ladder manufacturer places on their product. Who really needs to be told not to stand on the top rung of a ladder? Or Watch Your Step!
The reason why the ladder manufactures places obvious warning labels on their products is because of the potential risk of someone injuring themselves from an undisclosed exposure that results in a hazardous fall. A product liability hazard exists when someone injures themselves as a direct result of the manufactures not disclosing the potential dangers or risks associated with owning their product. So that's why it is wise for all manufacturers to properly inform their consumers of the potential dangers and risks associated with owning a particular product. Even if you are not the manufacturer, and simple sell someone else's product, you could still be liable for bodily injury damages.

Completed Operations:

The second part of this important coverage is called Completed Operations Coverage. If you install or repair products such as a heating system, you could be negligent should damage be caused by your work after your work is completed. Let's say that you installed a new furnace in a restaurant, and later that day fire ensues. The fire marshal determines the cause of the fire to be from the product literature that was left inside the furnace that just happened to catch on fire, further melting a plastic cover causing black smoke to spread throughout the premises. The business had to close until repairs and cleanup could be completed. A substantial amount of money was lost due to the business being closed and the cleanup was in the thousands of dollars.
Both of the situations cited above would be covered under a Commercial General Liability Policy if your policy includes Products and Completed Operations Coverage. Not sure if you're commercial package includes this very important coverage?

Let FIRM Solutions help you make the right decision when it comes to your business venture. Call 1-888-471-FIRM (3476) 760-471-1312 or info@firmsolutions.net. 

Home Based Business Insurance

When you start a home-based business, insurance may not be your first priority, but you cannot afford to ignore it either. When the unexpected happens -- and it will -- having insurance coverage may mean the difference between the success and failure of your home-based business. Remember that your homeowners insurance policy will exclude certain if not all commercial coverage. You may not require all types of insurance listed here, but taking some time now to consider your insurance needs can save you money and headaches in the future.

Business property insurance helps protect you against loss of inventory or equipment. If your business equipment or inventory is damaged in a flood, fire, or other disaster, this type of insurance will allow you to recoup your losses.

Comprehensive commercial general liability insurance is necessary for your home-based business if you plan on having clients or customers visit your home. Whether you plan to hold meetings, allow customers to pick up merchandise, or have members of the public enter your home for any other reason, this insurance will protect you if someone is injured while on your property. This insurance will typically pay for your legal defense should you face a lawsuit as the result of a fall or other damage that occurs on your property.

Business interruption insurance will help your business recover from natural disasters. It will cover you for income lost during the disaster, and will pay for operating expenses that continue to accrue, even though your business isn't up and running.

Workers' compensation insurance is vital if you plan on having employees working out of your home. Without workers' comp, you'll be responsible for any medical expenses arising from injuries employees sustain while working for you. Many home-based business owners mistakenly believe that this type of insurance is only required by businesses that have a retail or separate location, but that's not the case.

Health insurance should be a serious consideration. If you have just left your current job to start your own business, you may be eligible for COBRA, which will provide temporary interim coverage, but is often very expensive. This will keep you covered while you search for the best health insurance policy that will fit your new budget.

Disability insurance will guarantee you some income should you suddenly become unable to work because of injury or illness. Having this extra peace of mind may be well worth the extra money you pay.

Life insurance will help ensure that your family has the money it needs should you meet with an untimely death. Some lenders require that you have life insurance before they'll issue a loan; this guarantees that the loan will be repaid if you meet with an untimely end.

Do you have a home based business or home based hobby? The difference is setting your business up professionally making sure you have the right insurance coverage in place. Let FIRM Solutions help you make the right decision when it comes to your business venture. Call 1-888-471-FIRM (3476) 760-471-1312 or info@firmsolutions.net.  

Commercial General Liability: How does it work?

 

In today's litigious society, especially in California, even small mishaps can result in large lawsuits. That's why commercial general liability insurance, along with property and worker's compensation insurance, is essential for small business.

Under a commercial general liability insurance policy, the insurance company is obligated to pay the legal costs of a business in a covered liability claim or lawsuit. Covered liability claims include bodily injury, property damage, personal injury, and advertising injury (damage from slander or false advertising). The insurance company also covers compensatory and general damages. Punitive damages aren't covered under general liability insurance policies because they're considered to be punishment for intentional acts.

Commercial general liability insurance policies will show maximum amount of coverage on the declarations page that the insurance company will pay during the policy period. Usually these policies also list the maximum amount the insurance company will pay per occurrence. For example, if a company has a $1 million per occurrence cap for its liability policy and is successfully sued for $1.5 million, the insurance company would pay $1 million and the business would be responsible for paying $500,000.

To cover these types of situations, many companies purchase umbrella liability insurance, which picks up where their general liability coverage ends. Umbrella liability covers payments that exceed their other policy's limits, and provides additional coverage for liabilities not covered in a standard liability insurance policy.

Most insurance companies require their policyholders to proactively participate in risk control. In the event of a loss the insurance company may then require the business owner to document the situation, forward all summonses and legal notices, and cooperate fully in any investigations.

All businesses can take certain steps to lower the chance of a liability insurance claim:

• Set a high standard for product quality control;
• Make sure all company records are complete and up-to-date;
• Be sure employees are properly trained;
• Get safety tips for your type of business from your insurance company.

The most important decision a business owner can make is choosing the right insurance broker. Make sure they will take the time to understand your business. Understand what your liabilities are and help you choose the right package for your business. Getting a quote is easy but did anyone take the time to learn what you do, and what’s important to you and your business. This is what we do at FIRM Solutions. Give us a call to fine out how we can help you. 1-888-471-FIRM (3476) or 1-760-471-1312 or email us at info@firmsolutions.net