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

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

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

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

Small Business Insurance Property Coverage

Today most business owner policies (BOPs) we write at FIRM Solutions, LLC provide coverage for property, this can be the source of some confusion. Property or the actual structure of your business. Under a BOP, generally, the structure of your business is protected by the named covered perils in the policy (i.e. fire, smoke,vandalism or weather-related damage).

What’s a covered peril? Look under the exclusions and see what’s not covered, it’s a lot faster to find out specifically what’s not covered, than to try and figure out what ‘s exactly covered sometimes.  What about your furniture, computers, and equipment in your building? Who will cover the cost of replacing that new outdoor sign?

This is where Commercial Property Insurance comes in. A typical Commercial Property Insurance policy will cover the property of your business that a simple BOP may not. FIRM Solutions, LLC can put together  a Commercial Property Insurance package that will include coverage for:

• Structure (building) of your business
• Furniture
• Equipment
• Lost inventory
• Landscaping
• Outdoor signs
• Damage to the property of others
• And more…

Commercial Property Insurance is customizable in most cases, allowing you to provide more coverage for the things that truly matter to your business, and less coverage to the things that do not. Don’t think you need Commercial Property coverage? Consider this: if a fire erupts in the building of your business and you lose your entire inventory, are you positive that your BOP provides enough coverage to replace it all? If someone breaks into your business and steals expensive equipment, are you positive your BOP provides enough coverage to replace it in full?

If not give FIRM Solutions, LLC a call and let us put together a package that fits your businesses needs specifically. Insurance is all about information and relationships. The better we do our job the better coverage you will have for your business and it all starts with getting the right information. Don’t get forced into a program that one size fits all, because they don’t!

Contact us for quote today 1-888-471-FIRM (3476) - 760-471-1312 or info@firmsolutions.net

Why Choose FIRM Solutions for your E & O Coverage

There are no "standard" policy verbiage for E&O coverage. Each policy must be read carefully to make sure that the coverage being offered fits your exposures. An attorney, a doctor and a computer programmer all have exposures; however, the same policy would not work for all. There is no "one size fits all" E&O policy. Let F I R M Solutions find the right coverage for your business.

Most E&O policies are written on a "claims made" or "claims made and reported" form. This means that any claims must be made or, in some cases, made and reported, within the policy period. These policies have a retroactive date that becomes very important. Claims that arise out of acts committed prior to the retroactive date will not be covered. The farther back the retroactive date, the more coverage provided.

Some policies also include the defense expenses within the limit of liability. Some will exclude punitive damages. The wording of these policies can vary greatly, and each policy must be read carefully to make sure the coverage fits the exposure.

This is why it is very important to let FIRM Solutions,  professionals that understand the E&O coverage and marketplace to accurately understand your unique exposure. Different information may be needed depending upon the type of exposure.

The cost of E&O insurance may vary greatly depending on the class of business, location, claims experience (both of the individual insured and of the industry they are in) and from insurance company to insurance company. An insurance company that is very competitive on insurance agents or real estate agents, may not be competitive, or may not even offer coverage on business consultants, even if the consultant works with real estate or insurance agents.

An insurance company underwriter may ask for copies of contracts, a description of quality control procedures, documentation procedures, training procedures, etc., or they may want nothing more than a completed application.

The underwriter will not only look at your experience to see if you have had claims, but they will also try to determine the reason you haven't had claims. Is it luck or are you doing something that prevents the claim in the first place? And if you have had claims, what steps have you taken to ensure that the same errors will not continue to occur?

This is why you need a professional who will take the time to understand your business and submit your risk to the proper company. Call for your quote today 888-471-F I R M (3476) 760-471-1312 or info@firmsolutions.net.

 

Why Buy E & O Insurance

To put it very simply, everyone makes mistakes. Even with the best employees and the best risk management practices in place, mistakes will be made. No one is perfect.

If a freight forwarder sends a shipment to South America instead of South Africa and it is a time sensitive shipment and their client loses a sale and, therefore, hundreds of thousands of dollars, who will pay the loss?

If a wedding planner reserves the reception hall, the band, the caterers, etc., for May 22 instead of May 29 and everyone shows up except the wedding party and guests, who pays? And imagine the emotional distress caused to the bride if this were to happen!

There is also the less tangible loss of reputation for both the professional and his client. What will the cost be to the business that now has equipment in South America instead of South Africa? Will they lose future contracts with their current client as well as future clients?

By not purchasing E&O a company can be taking a serious financial risk. These types of losses are not covered under a general liability policy. And, as stated earlier, even if you are not at fault, litigation is both time consuming and expensive.

FIRM Solutions can help. Call today and lets talk about your exposure and if you need coverage. 888-471-F I R M (3476) 760-471-1312 or info@firmsolutions.net

E & O Errors and Omissions Insurance Coverage

Errors and omssions (E&O) is the insurance that covers your company, or you individually, in the event that a client holds you responsible for a service you provided, or failed to provide, that did not have the expected or promised results. For doctors, dentists, chiropractors, etc., it is often called malpractice insurance. For lawyers, accountants, architects or engineers, it may be called professional liability. Whatever you call it, it covers you for errors (or omissions) that you have made or that the client perceives you have made. Most E&O policies cover judgments, settlements and defense costs. Even if the allegations are found to be groundless, thousands of dollars may be needed to defend the lawsuit. They can bankrupt a smaller company or individual and have a lasting effect on the bottom line of larger companies.

In short, E&O coverage provides protection for you in the event that an error or omission on your part has caused a financial loss for your client.

The best-known professionals who need E&O insurance are doctors, lawyers, accountants, architects, engineers, etc. However, less thought about individuals range from advertising agencies to commercial printers, Web hosting companies to wedding planners. If you are in the business of providing a service to your client for a fee, you have an E&O 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.

FIRM Solutions will take the time to learn about your business and services and make the correct recommendations for your insurance needs. Lets us help you with your E & O Needs. 888-471-F I R M (3476) 760-471-1312 or info@firmsolutions.net