Eagle Harbor Insurance for Lawyers, Attorneys and Law Firms

Errors & omissions insurance : what and why

Who needs errors & omissions insurance?

In the litigious world we live in today, many business owners protect themselves with errors and omissions insurance (E&O). This type of insurance may be appropriate for anyone who gives advice, makes educated recommendations, designs solutions or represents the needs of others, such as teachers, consultants, software developers, ad copywriters, Web page designers, placement services, telecommunication carriers or inspectors.

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Why you need errors & omissions insurance

Regardless of what kind of business you own, customers can claim that something you did on their behalf was done incorrectly, and that this error cost them money or caused them harm in some way.

How errors & omissions insurance works

Although formalizing a contract with your clients can help limit your liability, the big expense in an errors and omissions claim is the legal defense needed to prove liability or innocence. Errors & Omissions policies are designed to cover many of these defense costs and ultimately the final judgment if the business owner does not win the case.

The DO's of smart insurance buying

To get more for your money, there are a few things to make sure you do, or don't do, when you purchase and maintain insurance for your business. Here's some guidlines for you.

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The DO's

Do make sure your business insurance company has experience in your industry. The more the insurer knows about your industry, the more confident you'll be that it can provide a cohesive business insurance program that minimizes gaps in your protection.

Do make sure your business insurance program covers all the basics. Today, most midsize companies need:

Property insurance including equipment breakdown,
General liability coverage, including product liability insurance,
Commercial auto insurance,
Workers' compensation insurance, and
Professional liability insurance.

Depending on your industry as well as your specific business operations, you may also need to consider specialized commercial insurance coverages, such as employee dishonesty, money and securities, directors and officers liability insurance, cargo insurance, and marine insurance.

Do make sure you keep an inventory of all your property in a safe place, off premises. Whenever possible, include photographs of your property and your inventory lists. If you ever need to report a claim, this kind of documentation can be invaluable.

Do check on the financial stability of a business insurance company before purchasing a policy. Also consider the insurer's reputation and integrity as well. If you're going to put the future of your business in its hands, you want to make sure it has a solid history of paying claims.

Do buy an insurance policy that will pay the replacement cost of any insured property. If you only insure your property for its current book or actual cash value (ACV), you may not have the necessary funds to replace damaged property.

Do make sure your policy would cover your liability for damage to space you rent, even if your lease doesn't require it. Often, the building owner's policy won't cover damages to the building caused by the negligence of your employees, leaving you exposed to property damages and liability risks.

Do check on the insurer's claims services. Does the insurance company have a reputation for paying legitimate claims with a minimum of stress? Are its claims representatives responsive to customers' needs in times of crisis?

Do make sure you update your workers' compensation insurance to reflect changes in your payroll. Not only do most states require that you have appropriate coverage, the ongoing financial health of your company and ability to retain employees may depend upon how effectively you can take care of injured workers. As you grow, it's important that your workers' comp protection increases to reflect your potential exposure.

Do confirm that your sub-contractors carry their own workers' compensation and liability insurance. If they get injured on the job, or if they injure one of your customers, you need to be sure they are capable of paying for that loss.

Do protect your business with more than just general liability insurance, including: 1) employment practices liability insurance (appropriate for any business with employees); 2) professional liability insurance (to protect you against claims of professional misconduct); and 3) directors and officers' liability insurance (even if you're not a publicly traded company).

Do consider buying all your business insurance policies through one reputable insurer. That can help to ensure your coverages fit together more seamlessly-without costly gaps or overlaps. It can also streamline the process of filing and settling claims, since you'll only have to deal with one insurance company.

Do be sure you work with a qualified, professional licensed insurance agent with a reputation for delivering quality service.

Do inform your agent of changes to your business, so that your business insurance policy always provides adequate coverage.

The DON'Ts of smart insurance buying

Don't underinsure to get a reduced premium. If you skimp now, you could really pay later. A lower limit means less financial protection when a loss occurs.

Don't hide or misrepresent unusual risks from your agent . Sometimes a failure on your part to disclose a risk can result in a denial on the part of the insurance company to cover a loss. Better to know you're protected now, than find out later you're not.

]]> Don't assume your business' theft coverage will extend to the personal property, tools, or equipment used by your employees. Make sure your policy includes provisions for theft of employees' tools.

Don't assume that "malpractice insurance" is only for doctors and lawyers. These days, almost any professional can be sued for something they did or didn't do.

Don't skimp on errors and omissions coverage if your business needs it. While these types of claims may be few in number, they're often huge in impact. Just one professional liability lawsuit can wipe out an entire business.

Don't overlook the policy's "exclusions." It's just as important to know what you're not covered for as what you are. Be sure to ask your agent about standard policy exclusions and whether specialty insurance is available.

Don't just focus on reducing the cost of your insurance. Look for ways to reduce the likelihood of losses. Remember, your renewal insurance premiums will typically be based on your loss history. So the best ways to control your ongoing costs is to limit your yearly losses.

Umbrella insurance : why, what and how

Why you need umbrella insurance

No one really expects a disaster to strike his or her business. But every small business is vulnerable to a major catastrophe or a huge lawsuit. Think about some of the devastating losses you've heard about recently. Or the large settlements that are awarded in courts these days. Some of these losses could exceed your primary insurance coverage�unless you protect your business with umbrella insurance.

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What umbrella insurance is

As its name implies, umbrella insurance extends your coverage beyond the limits of your basic business insurance. Umbrella insurance is important because it covers unsuspected events. It's not expensive and in certain instances, it could literally save your business.

How umbrella insurance works

Umbrella insurance policies provide additional liability insurance coverage after the limits of your underlying policy are reached.

For example, if several people were injured on your property and required $1.5 million in medical treatment but the liability limit of your underlying policy is $1 million, your umbrella insurance policy would cover the additional $500,000 (if you're found liable).

Cost of Medical Treatment : $1,500,000
Your Basic Liability Limit : $1,000,000
Umbrella Policy Would Cover the Gap : $500,000

Two ways to manage your business risks

Accidents. Surprises. Losses. They all come with the territory of owning your own business. But there's no reason you have to be a "victim" of these unexpected losses, not if you take advantage of three key ways to manage your risks.

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One, you can finance risk

One approach to risk management involves purchasing enough insurance to transfer responsibility for losses to your insurer. Click to learn more about insurance, an essential aspect of risk management.

Two, you can transfer risk

Where appropriate, you'll want to shift the responsibility for risk to your lessors, vendors, subcontractors, competitors and even your customers. Here are some tips on how to transfer some of your business risk to others.

Lease business property and equipment. Depending on the leasing arrangement, your property and liability risks may be assumed by the lessor.

Use "just in time" delivery. If your business permits, and deliveries are not very time sensitive, a risk management technique that might prove useful would be to require vendors to store merchandise and materials at their sites until you need them. Or, if you are in the packaged goods trade, ask your supplier to drop-ship merchandise directly to your customers.

Transfer risk to your customer. Your lawyer can discuss ways to transfer ownership and risk of goods that have been sold to a customer but which remain on your premises. Also, pay careful attention to your warranties to make sure they protect you.

Hire the right subcontractors. Employing knowledgeable, properly insured subcontractors can reduce your workers' compensation risks and minimize high risk product liability exposures. Request Certificates of Insurance to verify that your subcontractors have adequate insurance.

Consider "hold harmless" agreements. A "Hold Harmless" agreement is a risk management tool that shifts legal and financial risk from you to another party. Consult you lawyer about these types of contracts.

Don't try to be all things to all people. Let your competitors take the chances on potentially dangerous projects or ventures.

Managing your business vehicle risks

From company cars to delivery vehicles, your business' motor vehicles represent many types of risk in one place such as loss of goods, loss of sales, Liability to persons and injury to your employees. No wonder your vehicle premium can account for a large portion of your overall commercial insurance cost. However, risk management can be used to effectively reduce motor vehicles liabilities, by simply:

Verifying driving records of potential employees.
Monitoring employee driving records.
Keeping your drivers properly trained.

How to protect your property

Fire. Theft. Water damage. Just a few of the incidents that can do damage to your property-one of your business' most valuable assets. Unless property and equipment are maintained properly and insured adequately, they can be at significant risk for loss and damage.

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Review your property insurance program with your insurance representative to make sure you understand what is and is not covered.

If your policy has "blanket" coverage for a number of different properties, make sure that all properties that should be insured are actually listed on the property policy. Even with blanket coverage, property not listed on the policy may not be covered.

Be sure that your property is insured to replacement value. Improvements or changes in building costs should be reflected in your insurance coverage. So periodically review and update your property values and adjust the coverage accordingly.

Managing the risks to your employees

There are a lot of potential hazards your employees can encounter in the course of working for your business, from slippery floors and heavy lifting to undetectable chemicals and repetitive stress. To ensure that your employees remain healthy and productive, you need to be aware of these hazards and guard against them.

]]> Risk management in this context means careful monitoring and attention to detail by management, supervisors and workers. Special measures can then be taken to reduce and even eliminate workers' compensation risk.

Hiring an ergonomist to evaluate any manual processes in your business can pay off by lowering the possibility of injury as well as by increasing the efficiency of the operation. Often, ergonomics programs focus on:

Job redesign
Reduction of loads
Getting things off the floor
Improving workstations
Job rotation
New equipment
Automation
Encouraging employees to move and stretch to relieve tired muscles

Of course, risk management does not always mean risk elimination - workplace injuries can and will still happen. When a worker is injured:

Work with your medical provider to bring employees back to work as soon as possible.

Identify alternate or modified work to accommodate the injury while it is healing.

Maintain communications with the injured worker so he or she can continue to identify with the workplace.

Ten disaster planning tips

Over 40% of businesses that don't have a disaster plan go out of business after a major loss, like a fire, a break-in, or a storm. But there's no reason a temporary setback has to turn into a permanent failure. There are things you can you do now to protect your business before disaster strikes starting with creating a disaster recovery plan. Below are some tips you may find helpful as you begin to create your own plan for speeding your recovery after a loss.

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1. Focus on prevention

The easiest way to ensure that your business recovers from a disaster? Do everything you can to prevent that disaster from happening. This means conducting a thorough safety audit of your business' fire prevention and safety systems. Try to think of everything you might need in the case of a fire, flood, severe storm or other possible disasters. Check systems regularly to make sure they're functioning properly. And make sure your employees know what to do if they're not.

2. Appoint your preparedness team

It's important to have a team of employees who know exactly what to do the instant an emergency occurs. First, select a Preparedness Coordinator - this is the person who will be responsible for the development, implementation and continued updating of your disaster recovery plan. The Preparedness Coordinator should be very familiar with your business and capable of dealing effectively with both your employees and outside organizations and the media.

Next, select the rest of the Preparedness Team. They will assist and advise the Preparedness Coordinator with the development and implementation of the disaster recovery plan. When selecting team members, it's important to have representation from all areas of the business. For example, make sure you have one team member who knows your computer technology inside and out.

3. Establish evacuation procedures

Obviously, the most important priority during any emergency is protecting the health and safety of your employees. So you'll need to think carefully about how to evacuate your worksite and make sure all your employees know the procedures.

Evacuation plans will vary depending on the facility and the nature of the emergency. For example, how you exit a building during a fire could change depending on whether the fire's on the first or second floor. Or, in some cases, like a tornado or hurricane, you may not exit the building at all. And don't forget the needs of any disabled employees.

Also, don't forget to select a meeting place where everyone can gather and be accounted for as they evacuate. This should be an easily accessible location within a short walk of your worksite, but also a safe distance away.

4. Ensure continuity of computer operations

Once you've determined how to ensure the safety of your employees, it's important to protect the equipment and information most vital to your business' well-being. In most cases, this means your computers and related technology.

There are two major areas of preparedness to consider with computer technology: hardware protection and software protection. Hardware protection measures include surge protectors, battery backups and other measures that protect the actual computer equipment. Software protection measures are more often processes, such as continually backing up data, storing copies of software off-site and documenting your business' software.

Some ways you may want to consider protecting your hardware:

Surge protectors
Battery backups
Uninterruptible power supplies (UPS)
Duplicate servers
Servers located in separate areas and fire divisions
Physical security (is technology in a safe, secure location?)
Environmental controls (regular housekeeping, air temperature of 72 degrees, 50% humidity, circulating air)

Some ways you may want to consider protecting your software:

Virus protection software
Firewall and proxy servers insulating your network from the Internet
Regular back-up (at least once a week) of critical software and data
Back-up copies stored off-site in U.L.-listed records containers
Software manuals, warranties and paperwork stored away from computers

5. Protect vital records

Besides the information and data within your business' computer systems and software, every company also has many vital physical records and assets, such as employee records, financial and insurance records, contracts, permits, building plans and many other "paper-based" documents. Preserving these critical records during emergencies, and gaining access to them after emergencies, is essential to the quick restoration of your operations.

Preservation planning should include analyzing and prioritizing the records and establishing procedures for protection and access. Consider keeping copies of all your vital records offsite, or storing vital records where they will be safe but easily accessible in the event of an evacuation. Who will be responsible for making sure the vital records of your business leave the building safely? Where will they reside until operations resume?

6. Establish an emergency communications plan

In the event of an emergency, it is essential to remain in contact with your employees and administration. A communications failure can be a disaster in itself should it affect vital business activities.

Plan for all possible contingencies that may arise from a temporary or total communications failure. Consider all the functions that your business may need to perform in an emergency, as well as the communications systems needed to support them. Be prepared to accommodate communications between and among:

Your Recovery Team
Your employees
Employees' families
Outside safety and response organizations
Neighboring businesses
Customers
The media

When planning your communications system, be sure to:

Create a "phone tree" that establishes a fast, foolproof method for a message to be passed from employee to employee. For example, John should call Mary, who should call Beth, etc. Be sure to include both standard and cell phone numbers. Also include information on "who to contact in an emergency" for each person, such as a spouse or parent.
Identify and prioritize all facility communications, determining which should be restored first in an emergency.
Establish procedures for restoring communications systems.
Ask communications vendors about emergency response capabilities.
Determine needs for backup communications.

7. Get to know those who can help

Your organization's relationship with the community can strengthen your ability to protect employees and property and return to normal operations. Maintain a dialogue with community leaders; public safety organizations such as the police, fire and emergency medical services; government agencies; utility companies; and others. Don't just ask how they will help your business. Offer your facilities and services to them as well.

Ways of involving your business in your community include:

Meeting regularly with community emergency personnel to review emergency plans and procedures
Meeting with your neighbors to determine how you could help each other in an emergency
identifying ways your facility could help the community during a community-wide emergency
Involving local fire, police and emergency management personnel in drills and exercises

Remember to make sure you have phone numbers handy for your local emergency services.

8. Use the media to your advantage

During an emergency, you're focused on protecting your business, ensuring the safety of your employees and restoring your operations. It's easy to forget how important it is to maintain communications with the public, your potential customers. If the public hears of a disaster involving your business, many may assume that you have been put out of business temporarily or permanently, when this may not be the case. Obviously, this can translate into big losses in lost business.

The news media are your business' liaison to the general public, with the ability to quickly disseminate emergency information quickly. It's up to you to use that power to your advantage, with a media relations plan that will help your business swiftly defuse an emergency, instill public confidence in your products and services, and maintain your reputation and good standing within the community. Effective media relations don't take place overnight. So make sure you develop your plan well in advance of an emergency.

As part of a successful media relations plan, you should:

Designate an official spokesperson with in-depth knowledge of your company's operations, excellent communication skills and full authority to speak formally to the news media on behalf of your business.
Consider appointing a media relations team consisting of key members of different departments responsible for rapid decision-making in emergency situations.
Research area public relations firms who you can call upon to assist with media relations should it be necessary.
Establish relationships with key local media contacts and keep them updated and informed of the latest news about your business.
Create a formal press kit that has been distributed to the news media, including, at minimum, a general overview of your business and key contacts.
Write an "emergency press release" that can be quickly edited and distributed to the news media in the event of an emergency.

9. Establish recovery procedures

So far, we've focused on what to do before and during an emergency. But there's a lot that needs to be done after disaster has struck and the situation has begun to settle down. That's when it's important for your business to begin recovering and resuming normal operations. Advance planning will make the recovery period less difficult and far more efficient-meaning fewer losses and less downtime.

Effective, efficient recovery procedures include the following elements:

Recovery Coordinator who is very familiar with your business and who will be responsible for assuming command, assessing the recovery, determining the recovery strategies and approving and activating resources.
Recovery Team comprised of key employees from different departments who can assist the Recovery Coordinator in assessing damage and next steps.
Recovery Analysis and Planning process that establishes goals and objectives to plan for short- and long-term recovery.
Damage assessment that will help the Recovery Coordinator prioritize repairs and work to be done.
Employee support, including medical, physical and financial support that keeps your employees physically and mentally healthy and able to return to work.

10. Keep your plan up-to-date

Your disaster recovery plan is never finished. It must remain a dynamic, constantly evolving document so that it is always current and ready to be activated should the need arise. In effect, the plan is more of a process than a document.

Review, audit, evaluate, revise and test your plan on a regular basis (at least once a year) to be sure it keeps pace with changes at your facility. Update your plan whenever there are:

New Preparedness Team members
New operations, processes, equipment or materials
New or renovated sites or changes in layout
Changes with outside agencies
New suppliers or vendors
Mergers or acquisitions

Start today to prepare for anything tomorrow. I hope you have found this information helpful.

Commercial auto insurance

Why you need commercial auto insurance

You wouldn't dream of driving your personal automobile without insurance. It's just as important to protect your company vehicles. Even if you have personal auto insurance, you still need commercial auto insurance. That's because vehicles involved in an accident while engaged in company business may not be covered by your personal insurance. To make matters worse, you could be charged with misrepresentation if you've placed a vehicle you use for commercial purposes under your personal auto policy.

What Commercial Auto Insurance Covers

There are a variety of coverages for your commercial autos, and your agent or broker can help you choose the right one. The discussion should include business-use autos, pickups, vans, trucks and non-owned and rented vehicles. You may also want to include a conversation about "non-owned" vehicles-when employees use their own vehicles to run errands; and rented vehicles-when an employee travels and needs to rent a car.

Property and liability insurance : what and why

A major fire at your worksite or even a minor fall by a visitor can have a devastating impact on your business. So how can you protect your small business from big financial losses? You can start with two critical kinds of commercial insurance that are often packaged together in a Business Owner's Policy (BOP): property insurance and liability insurance.

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What property insurance is

Property insurance covers your physical assets: your building, equipment, furnishings, fixtures, inventory, computers, valuable papers, records, and more. But property insurance can also provide income if your business is forced to suspend operations after a covered loss.

For example, if your building is destroyed or damaged in a fire, you may not only be covered for that property loss, you may also be able to collect income while you're regrouping.

What liability insurance is

Business liability insurance is specifically designed to protect your business assets if your company is sued for something it did or even didn't do that resulted in bodily injury or property damage to someone else.

For example, a liability insurance policy may cover expenses if someone claims to be injured by a product you sell�or it can pay for defense costs if a competitor sues you for trademark infringement.

How Liability and Property Insurance Work

Many insurance providers bundle the primary property and liability insurance coverages you need into an economically priced business owner's policy. You can then tailor your insurance package by extending the coverage limits in specific areas or adding options to cover risks that are inherent to your industry.

Professional Liability Coverage for Law Offices

Most lawyers agree, professional liability coverage is essential. But, it isn�t easy to buy. At least � not until now.

Now you can get all the insurance coverage your law firm needs from me, your local agent. That's a big plus for you.

All your property, casualty and liability coverage will come from one company.
Write one check and know that your business insurance headaches are over.
Competitive prices.
Inusurance coverage from one of the most respected names in the small business insurance market.

Spectrum�s Tailored Coverage Now with Professional Liability

Spectrum, The Hartford�s industry-leading small business owner�s policy covers law offices from a wide range of liability and property risks including:

To make Spectrum�s coverage even more comprehensive, Professional Liability coverage can now be added to the business insurance package. Get the reliability and financial stability of The Hartford and the ease and convenience of one policy and one bill. We�ve even streamlined the application and made it quick and easy to complete.

Spectrum�s Professional Liability add-on coverage includes:

Coverage for your professional services and those rendered for and qualifying predecessor firm. A predecessor firm is any law in whose financial assets and liabilities you are majoring successor in interest.
Coverage for firm attorneys, �of-counsel� and non-attorney employees, such as paralegals and legal secretaries.
Full prior acts coverage, subject to underwriting.
Innocent Insured Coverage. If only one person performs the dishonest act, we defend and cover the other insureds within the firm, exclusive of fraudulent and dishonest acts.
Flexible deductibles.
Awareness Provision allows you to report �incidents� that may potentially lead to a claim and we will deem the claim made at that time and honor the date when you report the incident to us.

Other Important Coverage�s from the Hartford

In addition to core coverage�s, Spectrum Professional Liability provides additional coverage�s that may not be included in other policies to ensure protection against potential loss:

Expanded definition of professional services for acts while holding such positions as a title agent, abstractor and mediator.
Multiple extended reporting periods available by endorsement. If coverage is cancelled or nonrenewed, you may not wish to buy prior acts coverage from a new carrier or there may not be continuing coverage available. In that case, you may extend the reporting period:
- 1,2,3 and Unlimited years.
- Unlimited years at no cost when insured retires (after 3 years of coverage).
- Unlimited years available for death and disability.
Worldwide coverage. This coverage applies to claims brought in courts in the United States and Canada, regardless of where the act occurred.

Quality Coverage and Claim Service in Uncertain Times

While Professional Liability coverage is a new addition to our Spectrum business insurance package, The Hartford is not a new player in the market. All claims from Spectrum Professional Liability and handled through Hartford Financial Products, a long-time and highly respected expert in the Professional Liability insurance market.

Our Professional Liability Claims Department is staffed by skilled attorneys with prior law firm experience. They are dedicated to our philosophy of customer service and excellence in claims handling.

Added Value

All business insurance and Professional Liability coverage is not the same. The Hartford has nearly 200 years of experience insuring American business. We know the coverage your law office needs and now we�ve added Professional Liability and made it easier than ever for your convenience. And you�ll have the peace of mind knowing that your business insurance and your Professional Liability coverage are both in capable hands of The Hartford � the small business insurance specialist.

Give me a call, 206 842-7410, or drop me an email. I would be glad to talk with you, answer any questions you have and get you a quote. It'll only take a few minutes.

This outlines in general terms the coverage afforded under this policy. Examine the policy carefully for any exclusions, limitations, or any other terms or conditions that may specifically affect coverage. The terms and conditions of the policy prevail.

Introduction

When you choose The Hartford, you and I, as your independent agent, work
together to design a coverage package that�s just right for your law practice.
Then you can rest assured that you�re protected against the risks your practice
Faces routinely and perhaps some risks you might not have considered.

For example, what if:

Your computer equipment and law library were destroyed by fire?
Your client files and records were lost in the fire and you had to research and re-create them?
You couldn�t collect outstanding account balances because your records of billable hours were lost?

The Hartford�s Spectrum has the protection you need.

When your law practice is protected by Spectrum, you�ll be covered for a
wide range of liability and property risks including:

Premises Liability
Building and Contents
Errors and Omissions
Business Equipment
Lost Income
Workers'Compensation

Business Liability

Your Spectrum policy from The Hartford protects your law office against
financial loss resulting from claims of damage (actual or alleged) caused to
others by you or your employees.

Premises Liability

Provides protection from injury to others that occurs at your place of business.

Advertising/Personal Injury

Protects your business against claims of financial damages to others resulting from your advertisements. It also provides coverage for claims brought against you because of your actions or statements that are deemed slanderous or damaging to another person�s reputation.

Defense Costs

Pays legal expenses for liability claims brought against your business regardless of who's at fault.

Tenant Liability

Protects your business against claims of damage due to fire or other covered losses caused by you to premises that you rent.

Contact Information

Andy Kosick

Eagle Harbor Insurance

175 Parfitt Way SW, S-105
Bainbridge Island, WA 98110
Phone: 206-842-7410
Fax: ��206-842-7610

Drop me an email today.