Courtesy of http://www.iii.org/press-release/what-do-women-business-owners-want-credible-accurate-insurance-advice-022616

Women have made great strides in the business world in the past few decades. And business insurance is essential to protecting their hard-earned capital, according to the Insurance Information Institute (I.I.I.).

Forty years ago women owned just 5 percent of all small businesses in the United States. Today, they own one-third, generating nearly $1.5 trillion in revenue and employing over 7.9 million people. Between 1997 and 2015, the number of women-owned firms increased by 74 percent, according to the 2015 State of Women-Owned Businesses Report. And the majority of new women-owned firms launched in 2014 were owned by minority women.

“Whether launching a new business, growing your business or competing in the global marketplace, it is essential that women business owners get the right type and amount of coverage,” said Loretta Worters, a vice president with the I.I.I. “Without adequate insurance, a natural catastrophe, employee lawsuit or even the death of a business partner could destroy what they’ve built,” she warned.

In recognition of Women’s History Month, the I.I.I. recommends the following six strategies to ensure that your business is financially protected:

1. Assess your risks. What business property, including inventory and equipment, do you own? Do you have employees? What is the nature of your business? This basic snapshot will help an insurance professional provide recommendations about the type of coverage your business needs.

2. Find the right insurance professional. When shopping for insurance most business owners use an insurance broker—you’ll want to find one who is familiar with the risks of your specific business. A qualified broker can help collect all the necessary information and paperwork to apply for a policy, and comparison shop among several options and quotes. Here are some tips for finding the right fit: Finding the Right Insurance Professional for Your Business.

3. Compare rates. As a general rule, you’ll want to get business insurance quotes from at least three different companies. Try to find policies that offer similar coverage so that you can clearly compare prices.

4. Evaluate insurers, policies and services. When purchasing business insurance, price is just one consideration. Make sure a potential insurer is reputable and in good financial condition. In addition, review and compare policies in depth. Does one policy have exclusions that another does not? In the case of litigation, does the insurer provide an attorney or reimburse you for an attorney you choose?

5. Lower your premiums. Choosing a higher deductible can lower your premiums significantly and insurers will often lower your rates for putting in place programs to minimize losses from fire, theft and employee and customer injuries. This is particularly important for start-ups that are low on initial capital.

6. Review your risks and insurance policies annually. Talk to your insurance professional prior to renewing you coverage each year to determine what adjustments should be made to your business insurance policies. If your business is expanding, you have purchased or replaced equipment or have started working with vendors internationally, you may have new liabilities that require higher insurance coverage.

Don’t Overlook These Coverages

Life insurance is vital to any business—both personal and for the company. Should you die prematurely, a personal life insurance policy can replace your income from the business and protect your family. In the event an owner, partner or key employee dies, life insurance will take care of your business.

Another key coverage is disability insurance. More than twice as many people will be disabled during their career as will die before they retire. “Income protection for small business owners is critical for the long-term security of the owner and the company if they cannot work due to an injury or illness,” said Worters.

Courtesy of iii.org

Homeowners coverage provides financial protection against loss due to disasters, theft and accidents. Most standard policies include four essential types of coverage: Coverage for the structure of your home; Coverage for your personal belongings; Liability protection; Coverage for Additional Living Expenses

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If you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for judgements against you and your attorney’s fees, up to a limit set in the policy. However, in our litigious society, you may want to have an extra layer of liability protection. That’s what a personal umbrella liability policy provides.

An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. It will also cover you for things such as libel and slander.

For about $150 to $300 per year you can buy a $1 million personal umbrella liability policy. The next million will cost about $75, and $50 for every million after that.

Because the personal umbrella policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. Most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your homeowners policy before selling you an umbrella liability policy for $1 million of additional coverage.

Courtesy of iii.org

Alcohol is a major factor in traffic accidents. Based on data from the U.S. Department of Transportation, National Highway Traffic Safety Administration (NHTSA), there was an alcohol-impaired traffic fatality every 51 minutes in 2015.

Alcohol-impaired crashes are those that involve at least one driver or a motorcycle operator with a blood alcohol concentration (BAC) of 0.08 percent or above, the legal definition of drunk driving. According to NHTSA 10,265 people died in alcohol-impaired crashes in 2015, up 3.2 percent from 9,943 in 2014. In 2015 alcohol-impaired crash fatalities accounted for 29 percent of all crash fatalities.

The definition of drunk driving had been consistent throughout the United States until March 2017. All states and the District of Columbia defined impairment as driving with a BAC (blood alcohol concentration) at or above 0.08 percent. In addition, they all have zero tolerance laws prohibiting drivers under the age of 21 from drinking and driving. Generally the BAC limit in these cases is 0.02 percent. In March 2017, the governor of Utah signed a bill, effective December 30, 2018, that lowered the limit defining impaired driving for most drivers to 0.05 percent BAC, the lowest in the nation.

Anti-drunk-driving campaigns especially target drivers under the age of 21, repeat offenders and 21-to 34-year-olds, the age group that is responsible for more alcohol-related fatal crashes than any other. Young drivers are those least responsive to arguments against drunk driving, according to NHTSA.

To make sellers and servers of liquor more careful about to whom and how they serve drinks, 42 states and the District of Columbia have enacted laws or have case law holding commercial liquor servers legally liable for the damage, injuries and deaths a drunk driver causes. Thirty-nine states have enacted laws or have case law that permit social hosts who serve liquor to people who subsequently are involved in crashes to be held liable for any injury or death. (See chart below and Background.)

Recent developments

• Latest data from the National Highway Traffic Safety Administration (NHTSA) indicates that the 10,265 alcohol-impaired fatalities in 2015 accounted for about one out of three highway deaths (29 percent) on U.S. roads. There were 9,943 such fatalities in 2014.
• Ignition interlock systems require drivers to blow into a breathalyzer-like device to ensure the individual is sober before allowing the vehicle to start. According to a report released in January 2017 by the Johns Hopkins Bloomberg School of Public Health, traffic fatalities have declined by 7 percent in states that mandate ignition interlocks for first-time drunken-driving offenders. The researchers studied traffic fatalities for about five years before states began passing interlock laws in the late 1980s through 2013, when all states required them under some circumstances. See Background, Repeat Offenders.
• Drunk Driving by Gender: Latest NHTSA data show that 14 percent of women drivers involved in fatal crashes in 2015 (1,761 drivers) were alcohol-impaired, only 1 percentage point lower than in 2006. In comparison, 21 percent of male drivers involved in fatal crashed were alcohol impaired in 2015, down from 24 percent in 2006.
• Drunk Driving by Age: According to data from NHTSA, in 2015 the percentage of drivers in fatal crashes who were alcohol impaired was highest for 21 to 24 year old drivers, at 28 percent, followed by 25 to 34 year old drivers, at 27 percent, and 35 to 44 year old drivers, at 23 percent. The percentage of alcohol-impaired drivers in fatal crashes was 19 percent for 45 to 54 year olds, 16 percent of 16 to 20 year olds, 14 percent for 55 to 64 year olds, 9 percent for 65 to 74 year olds and 6 percent for drivers over the age of 74.
• Drunk Driving by Vehicle Type: NHTSA data for 2015 show that 27 percent of motorcycle drivers involved in fatal crashes were alcohol impaired, compared with 21 percent of passenger car drivers and 20 percent of light truck drivers. Only 2 percent of large-truck drivers involved in fatal crashes in 2015 were alcohol impaired.
• Social Host Liability: The Massachusetts Supreme Court ruled in February 2012 that social hosts could be held liable for off-premise injury to people caused by the drunk driving of a guest only if the host served alcohol or made it available. People who host “bring your own” parties are free from liability, even if the guest is underage. The court rejected an attempt by the parents of an injured 16-year-old to sue a party’s 18-year old host. The younger person suffered injuries in a crash in a car driven by someone who brought his own alcohol to the party. At issue was the fact that the driver, not the party host, supplied the liquor. Although the lawsuit contended that the host should be found negligent for allowing the driver to drink at her home, the court said that earlier rulings showed that hosts can’t be responsible for their guests’ drinking if they don’t control the supply of alcohol. Massachusetts law and court cases have held social hosts liable if they supply alcohol (See chart: STATUTES OR COURT CASES HOLDING ALCOHOLIC BEVERAGE SERVERS LIABLE).
• Also in February 2012 the New Mexico Supreme Court said that circumstantial evidence of a driver’s intoxication was sufficient to support a jury finding that the driver was intoxicated, overruling a decision in a 2004 case. Evidence presented in the earlier trial showed that a driver who struck and killed a motorcyclist had a 0.09 percent blood alcohol content five hours after the crash. The owners of the gas station where the driver worked and consumed a number of beers bought at the gas station pleaded ignorance of the driver’s condition. The court ruled that the blood test results were enough to prove that the driver was intoxicated. The ruling holds liquor sellers responsible for liability where evidence is available under the existing dram shop law.

Courtesy of iii.org

Whether you own or lease a single business car or an entire fleet of commercial vehicles, you’ll need to purchase commercial auto insurance. Your insurance professional can help you weigh your risks and evaluate coverage options.

But even with insurance in place, you’ll want to take steps to prevent accidents and protect your employees and vehicles. Your business can reduce the chance of an accident by establishing and enforcing the following practices and policies.

Hard-and-fast driving rules

When it comes to the safety of employees and the protection of your vehicles, you should set certain firm driving rules that must be followed at all times, including:

• Mandatory seat belt use – Nearly every state has a seat belt law. Seat belt use helps prevent deaths and limit the severity of injuries in vehicle accidents. There is no reasonable excuse for not using a seat belt.
• Zero tolerance for intoxicants – Even one alcoholic beverage can impair a driver’s reaction time. Employees should never drink or use other intoxicants prior to using business vehicles.
• No cellphone use – Distracted driving is a leading cause of accidents, and cellphone use while driving is banned in some states. Prohibit employees from taking calls or texting while driving.

Vehicle use guidelines

Other rules may be more flexible, but you should consider instituting policies and adhering to the following practices yourself as appropriate:

• Limit non-business use of vehicles – While some employees use the same car for work and personal use, generally limit business vehicle use to work-related travel.
• Slow down – Scheduling should allow sufficient travel time between meetings and assignments. Do not create such a frantic pace of work that employees are encouraged to speed. In addition to reducing the risk of accidents, driving the speed limit also will help control fuel costs.
• Lock and secure vehicles – Employees should always lock vehicles when on the job. Whenever possible, vehicles should be parked in secure, well-lighted areas.

Employee-focused practices to reduce vehicle risk

• Know your employees – Before hiring employees to drive company vehicles, check their driving record with the motor vehicle department for past infractions. Limit or ban driving by employees with a history of accidents or moving violations. Employees should also be required to report any accidents they have while not working. In addition, recognize that some personality traits—such as a bad temper—can raise the risk of auto accidents.
• Provide training – Employees who regularly drive work vehicles—or are taking on a new assignment requiring vehicle use—should be provided with drivers training. This course may just be a refresher for some, but it should cover key safety practices such as following distances and proper backing techniques.
• Recognize safe drivers – For businesses in which driving is central—such as a florist or a moving company—establish a program to recognize and reward safe drivers. You may also want to reward a department or the whole company for accident-free periods.

Responding to an accident

The above practices and policies can help minimize the risk to your business vehicles, but they cannot entirely prevent accidents from happening. If a business vehicle is involved in an accident, you’ll want to help your employee-driver respond appropriately and proceed with filing an insurance claim. The following practices and steps will help your business and the involved employee recover and get back to work.

• Establish procedures in the event of an accident – Employees using company vehicles should be trained what to do if an accident occurs. This includes not leaving the scene of an accident, contacting the police, and collecting information (license plate numbers, contact information, insurance information, etc.) from the affected parties and any witnesses. The accident should also be reported to appropriate personnel at work. Consider using the incident as an opportunity to educate all employees who drive company vehicles about what to do if they are involved in an accident.
• Contact your insurance professional and file a claim with your insurer – As soon as possible, contact your insurance professional to report the accident and begin the claims filing process. It’s especially important to work immediately with your insurance team if anyone has been injured in the accident. Follow the guidance of your insurer in a timely manner, such as getting estimates for repairs.

Remember too, that auto insurance claims are not limited to accidents. You may also need to file a claim if your vehicle is vandalized, stolen or damaged from an event other than an accident, such as fire or severe weather.