Your New Year’s Resolution - Protect Your Business - Andrew Kasmen
Posted by Member Solutions on Tue, Jan 03, 2012 @ 07:00 AM
The New Year is a perfect time to set new goals for your business for the coming year and for the future. While it is obviously important to have a plan in place to obtain new members and retain existing ones, it is equally as important to protect the business that you have built from risk.
Would your business survive if you were sued by a member who suffered a serious injury during training? How about if one of your employees took a member’s credit card information and used it for their own personal expenses? What if you were sued by a parent claiming that one of your instructors improperly touched their child?
In these litigious times, it is critically important that you protect your investment from liability and financial loss. Moreover, if you run a business like a Martial Arts studio, MMA gym or fitness club that provides physical fitness classes, curriculum and activities, it is critical to protect your business and yourself in the event your staff or members are injured during normal business operations.
One of the easiest ways to protect yourself and your business is with proper insurance coverage. Insurance coverage comes in all shapes and sizes, some of which you may not even be aware are available to you.
This list explains some of the essential coverages which should be part of your business insurance program. Read through them to determine which ones make sense for your business, then set a goal – a specific date and deadline – to enroll in the proper coverages.
1) General Liability Coverage: The primary insurance coverage that every business must have. General Liability Coverage protects your business in the event of claims for bodily injury, property damage, personal injury and/or advertising injury claim.
2) Professional Liability Coverage: This type of insurance protects the business owner and staff from legal obligations arising out of a professional's errors, negligent acts, or omissions during the course of the practice of his or her craft. Thus, if a member is injured in training and sues you for negligence, this coverage will protect your business.
3) Sexual Abuse Liability Coverage: Protects the owner and staff from legal obligations arising out of accusations of sexual or physical abuse. You would also be protected against related claims of negligent hiring, training and retention of employees who commit these terrible acts.
4) Employee Practices Liability Coverage: This insurance protects your business against lawsuits by current and former employees for harassment (including for claims of sexual harassment), discrimination and wrongful termination.
5) Property Coverage: As the name implies, Property Coverage provides protection against most risks to owned or rented property, including fire, theft and weather. Some property insurance may also provide temporary reimbursement of lost income if your business temporarily closes because of a loss (for example, damage to your building, fire, etc.). For more complete protection in the event your business closes (reimbursement of lost income, payment of expenses), you will want to obtain Business Interruption Insurance.
6) Umbrella Liability Coverage: Umbrella coverage protects you personally and your business in the event of a catastrophic occurrence. It kicks in after you have exhausted the limits of your General Liability and/or Auto coverage. For example, if you have $1 Million of General Liability and a $5 Million Umbrella, the umbrella policy covers you or your business for losses in excess of $1 Million up to $5 Million.
7) Accident Medical Coverage: Provides the funds necessary to cover medical expenses to your staff and members in the event of injury.
8) Equipment and Contents: Protects against damages or loss to equipment that is owned or rented.
9) Crime and Theft Coverage: Coverage for losses suffered as the result of theft, whether by an employee or someone not connected with your business, employee dishonesty, forgery and computer fraud.
10) Auto: This is not coverage for your personal vehicle. If you use your vehicle for business purposes, or if you have a sign on your vehicle advertising your business, you will need to consider a commercial auto policy.
Though the above list provides an explanation of the primary insurance coverages that every business should have, it only scratches the surface with respect to the types of coverage that your business could have or that you may want to consider.
Business Interruption Insurance could be a critical component of your business survival if your business is forced to close for any reason, while other coverages that should be considered include Buy/Sell, Health and Disability.
Searching for the right insurance can be tedious, and determining which plans best suit your needs can be overwhelming. If you are not certain your current coverage suits your needs or is too costly, or if you do not have any coverage, we can help point you in the right direction.
For example, if you are looking for health insurance, our health insurance partner, Core Health, offers reasonably-priced, limited medical indemnity plans. For more information on health insurance opportunities, visit www.membersolutions.com/CoreHealth.
Also, feel free to contact Member Solutions at info@membersolutions.com, or visit our partner businesses here for a complete line of cutting-edge services and tools to help protect and grow your business.
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Andrew S. Kasmen, Esq. is Counsel for Member Solutions and a licensed insurance agent. Member Solutions is not an attorney and does not provide legal advice. The information in this article is not being offered as legal advice. Consult an attorney for specific advice regarding your situation.
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