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Don't shoot yourself in the foot - consider your concealed weapons policy!

As a small business owner who allows customers and visitors on your property, you assume the responsibility of providing a reasonably safe environment for them. This responsibility includes warning them about any concealed dangerous conditions. In states with “concealed carry” laws, you might need to post warnings that your sales clerks are armed.

But what if one of your employees, legally carrying a concealed weapon, negligently (or deliberately) shoots a customer who is on the premises conducting business, and the client subsequently sues you for the injuries? Will your Commercial General Liability Insurance (CGL) policy cover this incident?

Obviously, you would have to be found legally responsible for the injuries for the CGL to pay. And, while your liability might be debatable, you will be brought into any lawsuit by the injured customer. At that point, your insurer will be compelled to defend you unless there is some clear-cut exclusion in the general liability policy that would apply to the shooting occurrence. And that’s not likely.

What's the right policy for minimizing risk and protecting employees and customers?

Even though it’s probable that your business liability insurance policy will cover you against such claims, it could be a smart move to minimize this type of risk by being pro-active. For instance, requesting an exemption from the scope of the concealed-weapon law will give you the authority to ban weapons in the workplace. Make it your company’s policy for all present and future employees that guns are not allowed on the premises. That would eliminate the possibility of a lawsuit…wouldn’t it?

What if your employee is attacked?

Think about your employee being attacked and beaten at work after you have forbidden him from carrying a weapon. Looking at this from his perspective, couldn’t that employee file suit claiming that he was unable to defend himself because of your weapons ban? The injured worker could assert that he sustained a bodily injury and that you, as his employer, are legally responsible for those injuries.

The workers’ compensation exclusion and the employers’ liability exclusion in the general liability policy would need to be considered, but if the injury to the employee is not work-related - in other words, not arising out of and in the course of employment - the exclusions won’t apply. In that case, your general liability policy would respond with a defense since there is no exclusion in the policy to prevent such a response. But, of course, the duty to pay the claim would depend on your liability being established in a court of law.

Suppose you don’t ban weapons and one employee shoots another?

If one of your staff carries a concealed weapon to work and shoots a fellow employee, and it results in a claim against you, will an insurance policy provide coverage? Once again, the first thing to consider is workers compensation. CGL does not apply to any of your obligations under a workers’ comp law, or to bodily injury to one of your employees arising “out of and in the course of employment.”

If the shooting injury did not arise out of the employment, the general liability policy would respond to a claim against you, but if the injury arose out of the employment, you could look to workers’ compensation for coverage. But what exactly is "out of and in the course of employment"? State workers’ comp laws have yet to define this. It may have to fall to the courts to make this determination.

Properly screen employees during the hiring process

The list of potential problems that concealed weapon laws pose for you as an employer is quite long. Good risk management calls for preemptive actions. Banning weapons from your premises is a good start. And instituting hiring practices (pre-employment screenings, etc.) that yield levelheaded employees who won’t resort to violence to settle disputes is also necessary. All business owners can learn to live with concealed weapons laws, but none can afford to ignore them.

Contact Us for Your Commerical Liability Insurance Needs

To learn more about Commercial General Liability Insurance, contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848. As an independent insurance agency, we'll compare pricing and coverage among many competing carriers to get you the right commercial insurance at the right price. Contact us today!

Attention: restoration contractors! You may have lucrative opportunities from an unlikely source—mold. Yes, the fungus that grows in moisture-laden areas of many old homes has created a demand for professional mold remediation services.  Done right, you can grow your mold remediation business while controlling your contractors insurance rates. 

Mold is one problem that homeowners cannot just ignore. Not only does it look disgusting, but it can also weaken the walls, ceilings, floor, and foundation of a house. And it presents a substantial risk to the health and safety of its inhabitants. 

Income vs. Risk

But along with the possibility of additional income, mold has created new risks for businesses that work on water damage restoration, mold removal, or construction. By implementing a mold risk management strategy, however, contractors can participate in these business openings without endangering their company with uninsured liability.

A recent history of mold and insurance

Around 2001, the number of insurance claims for mold damages soared, as did the income for restoration contractors. Unfortunately, the insurance industry had not expected this rush of claims, and they had not priced them into their policies. In response, insurance companies were compelled to begin issuing mold exclusions and limitations. While these exclusions are not standardized, almost every type of property and liability insurance policy has them.

Liability exposure increases for contractors

Without contractors insurance to help resolve their mold problems, some property owners tackled the mold themselves (bad idea!) or sought out mold remediation experts. But these experts are not the only contractors who come up against mold on a regular basis. Restoration contractors, plumbers, and electricians also encounter mold on their job sites. Even though they have not been hired to eliminate a mold issue, these contractors should always inform the property owner when they discover mold. So, why should this put any contractor at risk?

Disgruntled homeowners often blame their contractor

In an ironic twist, many homeowners began filing lawsuits against the contractors who pointed out the mold to them. This shoot-the-messenger mentality put contractors at risk of liability. The Commercial General Liability Insurance (CGL) policy, usually a protective tool for a contractor, has the same pollution exclusion clause as the homeowner’s policy. This exclusion states that the insurance does not cover any bodily or property harm caused by the escape, dispersal, or release of pollutants.

Is mold a pollutant? There is no universal agreement on this from the courts. Some have found the policies to be vague in their definition of pollution, while other courts have defined mold as an airborne pollutant.

Contractors are advised not to expose their business to chance

Contractors need to protect themselves against potentially devastating lawsuits. There are now insurance policies that specifically cover mold and pollutants. Contractors Pollution Liability (CPL) can be added to your CGL to cover liability for these pollutants and provide an unambiguous definition that includes mold or fungi.

CPL is probably the best available policy for contractors wanting to avoid liability when they discover mold on a job site. And there are other methods contractors can use to manage their mold risks.

Reduce Your Risk With an Arsenal of Protection

• Choose your customers wisely: If your client is aware of a mold problem and knows the insurance company won’t cover it, you may want to walk away from this job.
• Document your work: Leave nothing to chance. Use photos, notes, and witnesses to corroborate your findings.
• Treat your customer with empathy: Approach your client with a plan of action that shows you understand his problem and will work with him to solve it.
• Protect yourself: Adding CPL to your contractors insurance will complete an arsenal that will mitigate your mold risks.

Get Help For All Your Business Insurance Needs 

To learn more about Commercial General Liability and Contractors Pollution Liability insurance, or for any business insurance need, contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848. We offer insurance from over 25 competing carriers, so we're sure to find you the right insurance at the right price. Call or click today!

In 1992, 79-year old Stella Liebeck filed a lawsuit against McDonald’s for serving coffee that was too hot. In a product liability case that became known as the “McDonald’s Coffee Case,” the Albuquerque woman sued for injuries she had received after spilling coffee on herself. The basis of the lawsuit centered on insufficient warnings on the cups. After a trial and appeals, the parties settled out of court for an amount of less than $600,000.

This serves as a powerful reminder that having the right commercial insurance in the form of product liability insurance can help cover unpredictable claims.

The damages awarded in this claim, and others like it, include medical costs, compensatory damages, economic damages, and, in some instances, attorneys' fees, costs and punitive damages. While a large company like McDonald’s was in no danger of being financially damaged by the lawsuit, product liability claims can and do put smaller companies out of business.

Product liability is not difficult to understand. Simply put, your small business is responsible for the safety of the goods it provides. And that can be true even if you’re not the manufacturer. No matter where you are in the supply chain, you can be at least partially responsible for consumer safety.

If you are responsible for any of the following, you could be held liable:

• Design
• Distribution
• Retail
• Wholesale
  
  

Be aware of the claims your company could face

There are three types of products "claims" a company may encounter:

• Manufacturing or Production Flaws: Some part of the production process created an unsafe defect in the product. Included here are dangerous chemicals found in goods imported from China.
  
  
• Design Defect: The design of the product is inherently unsafe. Remember the Pinto owners’ lawsuits against Ford in the 1970's?
  
  
• Defective Warnings or Instructions: The product was not properly labeled or had insufficient warnings for the consumer to understand the risk. The McDonald's coffee case is an example.

Your company’s survival depends on getting your products into the hands of consumers. But you must manage your product liability risk while you’re doing that. What’s the answer?

Product liability insurance protects your business

If your company offers any products to the consuming public, then you need product liability coverage. In many cases, some form of this coverage will be present in the standard commercial general liability or business owners' policy. You will need to confirm this with your insurance professional. Having a clear understanding of your business insurance coverage is essential.

Here are some things to know about your coverage options:

• General Liability Insurance can help pay your defense costs if a customer sues you because of bodily harm or property damage that your product causes.
  
  
• Product Liability Insurance covers the manufacturer's or seller's liability for losses or injuries to a buyer, user or bystander caused by a defect or malfunction of the product, and, in some instances, a defective design or a failure to warn. You can add this coverage as part of a commercial general liability policy.
  
  
• Recall Insurance helps cover the costs of a recall. Some business owners add it as a rider to their general liability or product liability insurance. It can contribute to paying for client notifications, product disposals, and other costs associated with a recall.

Take steps to mitigate your risk

In addition to being adequately insured, here are some ways to minimize your risks:

• Inspect any retail stock for defects
• Make sure warning labels are easy to read
• Clean and inspect your equipment often
• Review product instructions for accuracy
• Have a system in place to track products from the factory to the store

Get the Right Product Liability Insurance 

Product lawsuits and recalls can drain your company’s bank account. Talk to us about protecting your business with a Product Liability Insurance policy that will help you manage your risks. We're independent insurance agents who are free to shop among many competing insurance providers to get you the absolute best deal on quality insurance coverage.

Contact American Insuring Group online today, or call us at (800) 947-1270 or (610) 775-3848.

Litigation is like lightening; it can never be accurately predicted. So, the best defense against both is to avoid them altogether. While it’s possible to seek shelter and stay out of harm’s way during a storm, avoiding a professional liability lawsuit can be much more complicated.

Being diligent in all areas of your business could be an asset if you face a professional liability lawsuit, even if you have professional liability insurance, but it can’t always prevent one.

If you own a small-business and you’re being threatened with a lawsuit, your best defense is preparation. Assume that a lawsuit could be coming at any time and you may be ready if it actually does.

Here are 3 key strategies to maximize your odds of successfully defending your business against a professional liability lawsuit:

#1. Document all communications with your clients

During the course of a lawsuit, your lawyer may ask you for a particular document or certain facts relating to an important incident. If you’re working from memory alone, you’re going to have trouble presenting a cohesive defense. You will have much easier access to information about your lawsuit if you have left a thorough paper trail. Depending on your type of business, that trail might include:

• Written contracts
• Work documents
• Invoices and receipts
• Confirming emails sent after meetings and phone calls
• Changes to contracts and proposals

Just keep in mind that overly-complicated documents may hurt your case. If a mediator or jury can’t follow the information in a key document, they could easily assume that your client couldn’t either. 

#2. Work with your lawyer

The relationship between lawyer and client can come under considerable strain during the course of a lawsuit. A good working relationship can increase the odds of a positive outcome and reduce your anxiety considerably. You and your attorney are a team. Here are some teambuilding hints to improve your odds of winning:

• Keep your lawyer informed by disclosing everything that might pertain to the dispute. Don’t hold back. Lawyers are trained to sift through information and determine what is useful and what is not.
  
  
• Prepare summaries, timelines, and other materials. Be as accurate as possible. Your lawyer will base your claims and defenses on this information.
  
  
• Respond promptly to all requests. Your lawyer may have to work under a very tight deadline. The more time you give your lawyer to digest the material you provide, the better job your lawyer can do of using that material to prepare important legal papers.
  
  
• Keep your lawyer apprised of your schedule. You will need to be present at certain events in a lawsuit. Most of these events can be postponed or moved up to accommodate your schedule, but your lawyer must have enough advance warning that you won't be available.

Assess the professional liability lawsuit honestly

Your first instinct after being hit with a lawsuit might be to fight the claim with all available means. After the initial emotions have subsided, however, and you can approach the dispute objectively, you might discover that it makes sense to settle. An honest assessment might make you realize that that you were in error to some extent, or you may come to the conclusion that a sustained legal battle would drain your financial resources.

You should realize that most lawsuits settle, and that the court system is designed to put pressure on both parties to settle. You continually need to reassess whether defending the lawsuit makes economic sense. If you see yourself spending a large amount on legal fees, settling the lawsuit is probably a good move. Remember that your time is worth something. So is your peace of mind.

Protection starts with the right business insurance - call today!

To learn more about Professional Liability Insurance, which helps you pay for the cost of lawsuits and other expenses for which you are legally responsible, and for all your Business Insurance needs contact American Insuring Group online or call us at (800) 947-1270 or (610)775-3848.

Experienced small-business owners know that it’s wise to expect the unexpected. Bad things often happen without warning.

Different insurance policies protect their businesses from surprises in different ways, and it’s important to understand the coverage that is included and the differences between the policies.

Comparing business liability and commercial property insurances is a good place to start! 

Business liability insurance protects you from lawsuits

Anything that your business is legally responsible for is called a liability. When you cause someone a loss, you are legally responsible for replacing the loss, usually with money. And that’s where lawsuits come into play. Business Liability Insurance helps you pay for the cost of lawsuits and other expenses for which you are legally responsible.

For example, let’s say you own a machine shop that mass produces parts for an automobile manufacturer, and one of your parts is recalled because it wasn’t made to specification. What happens now? You’re likely to be sued for your mistake or for negligence, which means you will need to hire lawyers and prepare yourself for the possibility of a lengthy trial. You could amass huge costs.

Since small businesses don't have that kind of money, they invest in business liability policies that offer insurance coverage that includes:

• Attorney fees
• Out-of-court settlements
• Judgments from losing the lawsuit
• Other court and legal fees

Business liability insurance also helps you deal with the responsibilities you have to the people who come into contact with your business:

• Employees
• Customers
• Suppliers
• Partners
• Vendors

Types of commercial liability insurance

It's important for you to know that there are various kinds of business liability insurance that cover different types of lawsuits:

• General Liability Insurance covers physical injuries, slander, libel, infringement, and property damage lawsuits when someone outside of your business sues you.
• Workers’ Compensation Insurance covers lawsuits related to injuries and illnesses in the workplace.
• Professional Liability Insurance, sometimes called Errors and Omissions Insurance, covers lawsuits related to your work. It typically pays for your legal expenses when a client claims your work was negligent.
• Employment Practices Liability Insurance covers lawsuits arising from wrongful termination, discrimination, or unpaid benefits.

Commercial property insurance protects your company’s physical assets

When you buy commercial property insurance, assets like equipment, computers, supplies, inventory, offices, and other business property are insured against loss or damage. Your insurance will repair or replace property that was damaged by the specific events that are outlined in your policy, which can include:

• Fire
• Theft
• Vandalism
• Some weather-related damages
• Explosions

For example, a fire does serious damage to a building that houses tens of thousands of dollars’ worth of your equipment. Much of the equipment is lost and the building itself needs major repairs. You will need to replace furniture and the cleanup costs will be substantial. 

A commercial property insurance policy will cover all of these expenses, and if you add Business Interruption Insurance coverage to the standard policy, you can cover the income you would lose if your business has to shut down when it suffers too much damage to operate normally.

Bottom Line: You need BOTH commercial property and business liability insurance policies!

Small businesses need both business liability and commercial property coverage, because they work together to make sure you have enough money to pay your bills when an incident or loss threatens your business. Either a lawsuit or property damage could wipe out your company’s savings, put you in debt, and require that any new revenue go toward legal bills or repair costs. Meanwhile, your business suffers.

Buy both types of coverage and save! 

The good news is that as a small-business owner, you might qualify for a lower rate if you purchase these two policies together. This insurance bundle, often called a Business Owner's Policy (BOP), offers this discount to qualifying small businesses.

Get help for all your business insurance needs right here

To learn more about business liability and commercial property insurance from our independent agents, contact American Insuring Group online, or call us at (800) 947-1270 or (610) 775-3848.

As independent agents we're free to shop among lots of competing insurance carriers to find the best policy for your needs at the right price. Call or click today to get started!