Tag: "Insurance"

What is EPLI (Employment Practices Liability)?

author | November 11, 2010

Employment Practices Liability (EPLI) is normally a separate insurance coverage although at times it may be included as a sub limit under the existing General Liability within a carrier’s program. However, being included as a sub limit is more of an exception than a rule therefore having a separate policy is more of the norm.

EPLI covers the insured against claims and/or lawsuits from an employee. Although many employers believe they are covered under their General Liability, this is a huge misnomer that can end up costing them thousands. The only exception here is if the the claim is a result of a worker’s injury in which therefore the Worker’s Compensation would be triggered.

Employment Practices Liability covers the employer against things like wrongful termination, sexual harassment, discrimination, prejudice, wrongful discipline, wrongful infliction of emotional distress and so forth. Whereas General Liability protects against third party claims, EPLI guards against first party claims.

Something to keep in mind is that whether the accused is innocent or guilty the costs alone to defend can be and usually are very expensive. This is where EPLI kicks in as it will normally pay for the defense and settlement, if any, as the court determines. Of course it is very important to read the specific policy as all carrier’s policies are not the same in regards to coverages and limits.

Generally EPLI can be affordable by obtaining different quotes through varying carriers that are online. Usually through an online quote or online process EPLI quotes can be readily obtained. As with any insurance it is in the insured’s best interest to inquire of different sources before making a final decision once coverage and limits are favorable.

In closing, many insureds find the value and peace of mind of Employment Practices Liability or EPLI to be well worth the cost as America has become a very litigious society.

What is Directors and Officers coverage?

author | November 10, 2010

This is a question often asked by insureds when their insurance agent suggest getting a quote for this coverage. Usually insureds think that their General Liability will cover this risk, however, this is truly not the case. As a matter of fact without this coverage Directors and/or Officers of a corporation can be completely exposed personally for their actions should a suit arise.

From large corporations to small businesses to non-profits all can have some degree of exposure and therefore should have Directors and Officers coverage, otherwise known as DNO coverage. For the people on these boards Directors and Officers (DNO) coverage is essential should they be brought into a law suit for their actions and/or decisions which a third party is suing over.

Although many boards do not understand the importance of this coverage for their personal exposures it is vital that corporations have this in place. Unfortunately many board members do not request to see the policy prior to their service to their potential detriment.

There are a number of carriers that offer Directors and Officers coverage however it is limited in comparison to the carriers that write General Liability. There are a few companies that specialize in this coverage one of which is “Monitor”. This carrier for example has broad coverage when compared to other General Liability policies with Directors and Officers included. For this reason it is essential to read and fully understand the coverage afforded in these policies as with any insurance.

As always different carriers may rate differently thus charging different premiums. For this reason obtaining mulitple quotes is important once the coverage is determined to be adequate for the exposures. By requesting different quotes insureds will glean a broader understanding of the carrier’s policy and pricing and will be better informed even if using an insurance agent.

With the internet many companies are available to quote online or over the phone at no cost to the insured or the one seeking this coverage. Usually an application is required along with a Loss Runs report if there was prior coverage. Of course Loss Runs would not be necessary if Directors and Officers coverage was not prior. If this is the case the carrier may request a “no loss” letter stating there have been no knowledge or action against the corporation.

Once a carrier has offered a quote and the insured accepts, the insured can bind coverage with the payment and the board can rest easy knowing that they are personally covered for their actions as a Director or Officer on the board.

What is an Inland Marine Policy?

author | September 23, 2010

This is a great question that address the hard to insure stuff that many Americans have but don’t know how to cover. Examples of Inland Marine items that can be covered are those things that have significant value but isn’t part of a permanent structure or contents. Such items are expensive jewelry, instruments like guitars, golf clubs, camera equipment and any other items of value that can be moved off of the insured’s premises.

The way this policy works is that the specific items and values are itemized on the policy and the insurance covers that specific item for the stated value. It may or may not have a deductible and it may be written for Actual Cash Value or Replacement Cost.

Other examples of Inland Marine items can be tractors and accessories, a workman’s tools, portable generators and radios or even fine art. Really the concept is for those expensive items that are portable and are can move off the insured’s premises. By calling an insurance carrier it is relatively easy to obtain quotes although some high value items may need verification and/or appraisal.

The cost for Inland Marine policies are usually inexpensive and well worth the price in comparison to the amount that could be lost otherwise.

How often should I shop my auto insurance?

author | September 22, 2010

This is a question that usually comes up in casual insurance conversations amongst friends and family. Regularly there are those who have had their existing auto insurance with the same carrier for decades and then there are those who shop their auto insurance every year at renewal.

Those who keep their auto insurance carrier for decades usually do so for a number of different reasons. These reasons range from they have developed a personal relationship with the agent or agency to they just never have bothered to shop their auto insurance. However, this group for whatever reason more often than not are missing out on considerable savings by not more regularly entertaining auto insurance quotes.

The other group that shops their auto insurance on an annual basis often do so because they have typically found that their are possible savings and they don’t mind taking the time to do so. This group are usually consumer savvy shoppers and want to know that they are getting the best deal.

There is however another group in the middle that will typically shop their auto insurance every two to three years who are looking for savings and a good value however don’t believe it is necessary every year. This is probably the best approach as there is always the balance between time and money. So if shopping annually for auto insurance is not in your time budget then do make it a point to do it every two to three years.

With the internet so accessible and all the auto insurance carriers competing for your business why not shop today…

Will my insurance cover me if I was drunk and got into a car wreck?

admin | May 6, 2010 | Comments (0)

Typically an insurance policy doesn’t distinguish the condition of a driver at the time of an accident. Whatever auto insurance carrier is on the auto at the time of loss would be responsible for all coverages in place at the time of loss as they would apply. Of course this may vary from carrier to carrier but is best determined by carefully reading the policy. However, once a driver has a DUI on their driving record it will significantly affect their ability to obtain auto insurance at a reasonable price if attainable at all. It is always best to know the specific policy exclusions and then to reshop auto quotes.

What are “Loss Runs”?

admin | December 4, 2009

Every insurance carrier guards their bottom line by attempting to insure only the best risks by understanding the exposure in detail. When a prospect applies for insurance the obvious reasoning is that there is some sort of risk of loss that the prospect doesn’t want to be on the hook for. Therefore, the insurance carrier assumes risk for their insureds in turn for premium. By doing this they share the cost of risk over many.

This sharing of risk among many is usually not a problem as this is the essence of insurance. However, the problems arise when too many of the carrier’s insureds have losses within a similar frame of time. The carrier then ends up having a substantial loss that directly impacts the viability of the company.

For this reason “Loss Runs” are tracked. In essence “Loss Runs” is an insured’s insurance history at a glance. This report talks about past losses as well as open case losses. This report will state the time and the carrier along with other pertinent information. By having loss runs available an insurance company can then analyze the chance of risk with the prospective client.

Typically prospective insurance carriers will require anywhere from three to five years of Loss Runs before deciding to issue a proposal for business. Because all insurance carriers require loss runs all insurance carriers will provide loss runs as an industry standard of practice. Obviously the least amount of losses the better the insurance rates and the greater the amount of losses the higher the rates.

What this means for individuals and/or businesses alike is that it is always best to avoid or reduce risk as much as possible as a means of keeping insurance costs down. This is a direct strategy that has a direct impact on your bottom line.