Return on Investment: Insurance Shouldn’t Be a Commodity

By: Mark Ellington, Account Executive

In today’s economy, businesses are finding new ways to cut costs to protect their profit margins.  The majority of business owners look at “shopping” their insurance to find the most affordable deal.  One might think they are saving 30% on their premiums, but are they really getting the deal they think they are?  Business owners who only look for a cheaper product will eventually end up spending more in the long run.

Insurance is a vital asset to one’s business.  For some business owners, insurance is a big investment so they only budget for the cheapest price available.  Business owners scrutinize every expense – insurance is no different and, for some, is a considerable expense.  While it is understandable to assume that by purchasing the cheapest available insurance, money will be saved, the reality is that by purchasing the bare minimum coverage, your business may be left underinsured or even uninsured.  In some cases, a claim will need to be made against your insurance, which will end up costing you money out of your own pocket and become an unbudgeted expense.

As a business owner, you need to determine the correct amount of insurance coverage you will need to adequately protect your business assets.  Look at it in a different way: investing in the correct insurance coverage is crucial to your businesses success!  Although the upfront costs may be slightly greater, your company and employees, not to mention your peace of mind, will thrive with the knowledge that your business is properly insured.

Distracted Driving – Employers Liability

More than 16,000 Americans were killed in “texting while driving” accidents between 2001 and 2007. That number is now up to 16 people killed every day by distracted drivers, a rate that will equal more than 5,800 by the end of 2011.

Distracted driving affects virtually all age groups and backgrounds. For example, every week we hear about high school students taken too soon because of distracted driving. And in September 2008, 25 people lost their lives when the engineer of the train they were riding in slammed into a freight train that he never saw coming because he was texting while operating.

While these statistics would be enough to push any parent to the brink of an anxiety attack, employers need to be paying strict attention as well. As of October 2010, 30 states plus the District of Columbia had outlawed text messaging while driving. Nine have banned the use of cell phones by drivers in their entirety.

So What Does This Mean for Employers?

Employers are responsible for employees who do any driving while on the clock, whether it is making deliveries, or just running an errand for the boss. It is an employer’s legal obligation to have clearly stated policies against employee texting while driving.

Additionally, it is your responsibility to make sure that these policies are enforced. If a member of your staff causes an accident while behind the wheel of a car during work hours, the employer can be held liable by the victims of the accident. This is not direct liability, as if the employer committed the act themselves, but vicarious liability, which holds superiors responsible for the actions of their subordinates.

As the number of deaths from distracted drivers continues to skyrocket, it has become everyone’s responsibility to figure out how to stop it. Almost every day we hear about horrific accidents caused by those who text, check e-mail, or otherwise multitask while driving. Employers should communicate to their staff a zero-tolerance policy of these dangerous practices, because the consequences of failing to do so are too great.


Image: astrocoz

Protecting Your Business from Slips, Trips and Falls

Ensuring your customers, staff and your business are protected from slips, trips and falls is important during the entire year. People can track loose gravel, mud, snow, ice and other debris into your building, creating a potentially dangerous situation in which a business is liable for anyone hurt from hitting the floor due to this situation. Sometimes even the floor mats that are put down to absorb this moisture and debris can become the cause of the accident and the source for a liability claim.

By the Numbers

While the financial impact from a slip and fall varies greatly, the National Floor Safety Institute estimates that the average cost of a compensation claim for an injured worker is $4,000. However, if this accident should happen to a customer, vendor or other third party, the cost to your business leaps to between $60,000 and $100,000. While these types of workers’ compensation and liability claims occur all year, during the winter months they make up the majority of all workers’ compensation claims. The U.S. Department of Labor’s Occupational Safety & Health Administration (OSHA) states that 15 percent of all accidental deaths happen as a result of slips, trips and falls, second only to motor vehicle accidents.

Prevent the Accident, Protect Yourself

The best way to protect yourself and your business from these types of liability claims is to make sure that these accidents don’t happen in the first place. While there is nothing that you can do to control the weather, managers should walk the grounds of the business often to ensure that sidewalks, walkways and stairwells are free of rocks, loose gravel, snow, ice, puddles, spills and other debris.

Putting down proper matting to absorb wetness and debris that makes its way into entryways is important to reduce the chances of an accident. However, you must make sure that these mats lie flat on the floor, because if they are the cause of an accident themselves, you could have a liability claim on your hands.

Another element you will want to manage is the way that floors and entryways are cleaned. Using the correct cleaning products on floors will not only keep them free of moisture and debris, but also ensure the proper traction – the better traction your flooring provides, the less likely that there will be an accident.

Despite your best efforts at floor maintenance and slip protection, accidents will happen. Slips, trips and falls are accidents that need to be managed on a year-round basis. Call your insurance agent today to make sure you have the best coverage available to protect yourself in case of workers’ compensation and other liability claims.


Image: BrokenSphere