We’ve Got Your IT Business Covered With Technology Insurance

You probably feel like a hair salon or barbershop is one of the least likely businesses to need professional liability insurance. On the contrary, barbershops and hair salons are highly vulnerable and must be protected from lawsuits and claims. The following are five situations where professional liability insurance would come in handy for you if you own a barbershop or hair salon establishment.

1. A Slip-And-Fall Incident

Slip-and-fall incidents are highly common in places of business, and they can occur at any time. Such incidents happen when customers fall and hurt themselves because of slippery floor surfaces. Water, spilled drinks, hair chemicals, and other cleaning items can cause a slip-and-fall incident to occur. Your business is vulnerable because the customer can sue if he or she falls in your establishment. Liability insurance could cover the funds you may have to pay for compensatory and punitive damages.

2. A Bad Reaction to a Product

An allergic reaction is another situation that may bring you an ill fate if you don’t have insurance. Your choice of products may not work well with all of your clients. You may one day use something on a person that causes itching, redness, hair loss, or something worse. The client may choose to sue the manufacturer who created the product if he or she suffers financial loss because of the injury. Alternatively, that person may decide to sue you and your business.

3. A Hair Cutting Accident

You don’t ever want to think that a hair-cutting accident will happen, but it might. It would be best to prepare yourself in case the situation ever arises. You never know when you are going to help an antsy child or a distracted adult who moves at just the wrong time. As a professional, you are the first person who is going to have to take responsibility for the customer’s injury. An insurance policy can help you to pay the client’s medical bills. It can also help you pay for attorney fees and other expenses.

4. A Claim of Illegal Photo Use

You can also experience some odd claims, such as a claim for illegal photo use. For example, let’s say that you take pictures of your clients when you do their hair, and you put them on your Facebook page to show them what you can do. You might be vulnerable to a lawsuit or claim if you did not receive their permission to use the photo. You can also suffer if any person feels as though you presented him or her in a negative light. The insurance could help you deal with a situation like that if it were to arise.

5. A Harassment or Assault Situation

Another unforeseen situation that could come up in your business is harassment. Harassment can be sexual or non-sexual, and it might come from patrons who frequent your establishment or people who work for your establishment. There may be an incident where a disagreement turns into a brawl or fight, as well. All of those situations can shed a negative light on your business and put you in jeopardy of losing a lot of money if the court rules against you. It’s best to have personal liability insurance just in case one of these odd situations occur. You should always be three steps ahead when it comes to protecting your business.

Now you can clearly see some situations that may require professional liability insurance. Contact us and allow us to connect you with a policy that will ease your mind about suffering losses at your business. We’ve been helping business owners protect their assets for almost 20 years.

For some companies a PEO can offer convenience – but it comes at a price. Leaving a PEO can save you tens or hundreds of thousands of dollars each year. While PEO contracts can be complicated, shifting away from a PEO doesn’t have to be. A licensed insurance broker can help.

Professional employer organizations (PEOs) take over your employees and lease them back to you under a “co-employment” agreement. In exchange for a per-employee fee, the PEO handles some HR tasks, such as managing payroll, administering benefits, and securing workers compensation insurance. While a PEO can work well for smaller companies who lack experience, it comes at a high premium. Many of the benefits a PEO offers can be had by working with an experienced benefits broker.

Here are the main reasons to move away from a PEO and a few considerations along the way:

1. Cost

Cost is often the driving force when thinking of leaving a PEO. In addition to payroll, management and insurance costs, PEOs charge an average of $100 per employee per month. The costs add up quickly. To put that in perspective:

($100 PEPM x 25 employees) x 12 months = $30,000

($100 PEPM x 50 employees) x 12 months = $60,000

($100 PEPM x 100 employees) x 12 months = $120,000

Depending on your size, this is enough to hire a full time HR manager or an HR consulting service. For a small company with only a few employees, a PEO can relieve the owner of some HR responsibilities. However even a small business with 5 employees will pay $6,000 per year – money that could be spent on advertising, operations, or dividends.

2. PEOs are not customizable

PEOs operate on a one-size-fits all model. The benefits, requirements, and technology are the same for every member of the PEO and most PEOs charge fees for any special requests, such as running a special payroll, if they allow them at all.

Many companies outgrow their PEO or become frustrated with their cooker-cutter approach. Moreover, fees charged for things like a 401k can be higher than market rates. An independent insurance broker can design a custom benefits package that meets your company’s needs at a surprisingly lower cost.

3. Technology Limitations

PEOs force its members to use its software. Things like payroll, HR requests, and benefits are managed through the PEO website. Once again, this software is out-of-the-box portal that has limitations. Today, there are many customizable HR programs that offer a better value and increase functionality for your company.

4. Liability

PEOs may give business owners the impression that they can avoid HR issues and act as a shield from liability. In reality, most PEO contracts shift all liability back to the business. PEO contracts typically state that you are responsible for all wage and hour compliance, correct classifications, and all civil liability.

While there is some benefit, such as access to an insurance policy, these policies are often inadequate for the average business. For example, PEO participants will often be covered by the PEO’s employment practices liability insurance. However, this insurance typically carries a high deductible (often $50,000) which is your responsibility. In addition, the maximum policy limit is sometimes very low. More cost-effective policies with lower deductibles are usually available from an independent insurance agent.

What to do next

If you’re thinking of leaving your PEO – or joining one – get in touch with a licensed insurance broker. Benefit plans and commercial insurance packages can be customized for your business at much lower rates than what a PEO charges.

In addition, a recent law – the Small Business Efficiency Act (SBEA) has removed barriers that previously kept many companies from leaving their PEO.

At a minimum, business owners owe it to themselves and their companies to explore the options available to them. Speaking with an experienced insurance broker is a commitment free way to ensure you’re making an informed decision.

Business owners have to protect their property, employees, customers, and themselves against damages. Business insurance policies provide general liability coverage, professional liability coverage, workers compensation, and commercial auto coverage. Another important type of protection for some businesses is a Third Party Fidelity Crime Bond. It provides specific protections against willful wrongful acts carried out by your employees. It’s especially pertinent if you regularly deal with expensive equipment or large sums of money.

What Does a Third Party Fidelity Bond Cover?

A Third-Party Fidelity Bond, which is also referred to as an Employee Dishonesty Bond or a Commercial Dishonesty Bond, is designed to protect your business from harm caused by an employee or contractors actions. While you try to do your best to hire trustworthy people and honest contractors, you can’t be 100% sure. A Third Party Fidelity Bond will protect you in the event that any of the following happens:

• An employee or contractor steals from a client.
• An employee or contractor illegally transfers funds by remotely accessing a client’s secure system.
• An employee or contractor commits fraud against a client.
• An employee or contractor’s forgery affects a client negatively.

Since you’re the employer, or the company that hired the contractor, you’re directly responsible for their actions while they’re working on your behalf. That means you’ll have to compensate your client for the losses they incur in one of the above instances. A Third Party Fidelity Bond will provide you with the funds to cover your client’s losses without disrupting your own finances.

Standard Insurance vs Fidelity Bonds

Your company’s insurance policies are all meant to cover specific areas of your business. For example, your general liability policy protects you against injury and property damage claims and Worker’s Compensation provides your employees with protection if they get hurt. Fidelity Bonds are the only type of business insurance policy that’s created to explicitly cover intentional wrongful acts by employees or contractors. It’s not a replacement for any other insurance coverage, it’s an additional layer of security for your business.

Do I Need a Third-Party Fidelity Bond?

For the most part, a Fidelity Bond is an optional coverage, however, there are instances where it’s essential. For example, if you’re an IT consultant that works in the financial industry, a Fidelity Bond may be a requirement by many of your clients. In fact, having a Third-Party Fidelity Bond in place may well put your business ahead of a competitor. Generally speaking, anytime you and your team will have access to a client’s expensive equipment, facilities, large amounts of money, or other valuable items, you’ll need a Fidelity Bond.

Additional Fidelity Bond Coverage to Consider

If you’re just realizing that you need a Fidelity Bond, you may already have some liability issues that you’re working through. Perhaps you have concerns of past fraudulent or otherwise illegal actions by an employee or contractor. If you’re buying a Fidelity Bond for the first time, you may also want to consider adding a Discovery Bond to your insurance coverage mix. This type of bond protects you against any undiscovered losses that you incurred before the Fidelity Bond was issued.

How Do I Buy a Third Party Fidelity Bond?

The easiest and fastest way to find the business insurance coverage that you need is to request a free, no-obligation quote contact us at InsureYourCompany.com. Or, if you prefer, you can call us at 888-242-4675 to talk to one of our insurance specialists. We’ll help you find the right coverage for all of your business needs including General Liability Insurance, Worker’s Compensation, Professional Liability, and of course, Third Party Fidelity Bonds.