Category Archives: Employers Practice Liability Insurance

Cyber Liability Insurance, Employers Practice Liability Insurance, General Liability Insurance, Human Services Practice Group Content, Line of Insurance

Understanding Your Commercial General Liability Insurance Will Absolutely Save Your Business From Financial Ruin

Most businesses who purchase commercial general liability insurance have little understanding of how it’s structured and what is important. Instead they focus on the amount of limits offered per occurrence and the premium being charged for those commercial general liability insurance limits for their comparison when making their purchase decision. We are here to tell you those are the last 2 data points ( coverage limit & premium) to consider when evaluating your current liability insurance program. It’s a classic price vs cost conundrum.

Over the next few paragraphs we will break down for you the critical components you should use when evaluating your commercial general liability insurance program. The goal here is not to provide a Master’s Class in understanding all of the nuance with respect to commercial general liability insurance. Instead it’s really to get you to consider engaging a Risk Advisor by clicking here to do the evaluation for you. Often times a RISK ADVISOR will not charge you to do the evaluation .

If the RISK ADVISOR is good at what they do they will first understand how you make your money, who your customers are , where you operate, and importantly the contracts that create both upstream and downstream obligations for your company. Understand, your Commercial Insurance Program is always a trailer , it never leads. It reflects and finances potential future losses more efficiently that using your own operating capital. To properly design ANY commercial insurance program both the broker and the customer need to spend time discussing in detail the operational components and risk profile of the business. Contingent on how , where and who you make your money from will determine this critical exercise. it can be fairly simple to pretty complex. You do the heavy lift once , then tweak it yearly to adjust or iterate as your business evolves.

QUICK TIP : You can tell how good the Risk Advisor is by the questions they ask, the process they put forth to understand your business. If it’s ad-hoc, only takes a few minutes that’s a big red flag. Did they analyze your loss runs, contracts, licensing agreements, laws you may be subject to in operating your business, future goals?

We say insurance is always a trailer because the real purpose of insurance is to transfer a future potential “net income loss” (defined as income you would have had except for a particular event), from YOUR balance sheet to the insurance carriers balance sheet for the lowest premium possible. Here is the key phrase AS MUCH RISK AS POSSIBLE for the LOWEST PREMIUM available. More on that later and why that is so important.

Here is the primer I promised before I went off on a tangent to frame this EXPLAINER.

COMMERCIAL GENERAL LIABILITY INSURANCE : The best way to remember this section; there is a reason it’s called “GENERAL LIABILITY”.  The reason, its general (non-specific) , kind of plain vanilla , designed mainly to cover the general public. It is NOT designed to cover for losses involving hiring , firing , management practices for your employees. It is NOT designed to cover your customers for specific errors , omissions , designated professional practices as it relates to the duties you perform.

It’s the most generic form of commercial liability insurance available to a business to insulate them from future 3rd party losses.  Commercial General Liability Insurance is designed to cover losses you may be responsible to ,a 3rd party, typically the general public for a loss or injury they may have suffered. Think of a pedestrian that slips and falls outside your retail store. They litigate against you and the building owner. The building owner will have their own commercial general liability insurance as will you. Who pays will be determined by the details of the incident and your lease which covers your business obligations.

If you want to understand what your commercial  general liability insurance policy covers start with what it DOESN’T COVER by going right to the EXCLUSIONS section of the policy. There you will uncover  how potentially woefully inadequate the coverage truly can be.

Without getting too much into the weeds here let me highlight a few key risks & exposures you may have that will NOT be covered in your commercial general liability policy.

CLAIMS BETWEEN YOU & YOUR EMPLOYEES: 

  • Harassment : Could be sexual, could be gender based, could be you just have a bad egg in your midst that is a bully to their co-workers or subordinates. It’s take very little for an employee to file a harassment complaint with the Department of Labor in your State, which will trigger a very expensive Dept of Labor audit. Worse they could lawyer up as they know or have heard it’s an easy way to make a quick buck. They are right, most of these claims come to some financial settlement where your business pays the employee money instead of expensive litigation.
  • Wage & Hour : These are hugely expensive to a business. Primarily because the audits are invasive, word spreads to ex-employees who want to be on the gravy train, the cost to defend (Employment Attorneys) are expensive. Finally the settlement, if it’s determined that you did not properly pay overtime or other wage related claims.

Just google WAGE & HOUR lawsuits in your industry to read some of the horror stories. It won’t take long for you to determine that having an employment practices liability policy is essential for the continuity of your business.

These are just (2) quick examples. There are far more, like discrimination. Bottom line you MUST transfer this risk to an insurance carrier for a premium as it’s too expensive to retain.

CLAIMS INVOLVING DIFFERENT TYPES OF SERVICES YOU PERFORM:

Examples here would be services that are technical and requiring licensing, specific training e.t.c. A specific example here might be a home healthcare agency that provides at home services for the elderly. If in their daily routine it’s asserted the home health aide fails in their duties or is negligent, a patient falls breaking their hip, the home healthcare agency may be held liable if they were negligent in their duties resulting in a significant injury. Even if you feel you were not negligent, the cost to defend yourself going to the matt on the suit will be crazy expensive , even if you win. Unless the Home Healthcare Agency purchased PROFESSIONAL LIABILITY INSURANCE  , they are funding this very expensive loss themselves. The cost to defend such an event is easily 6 figures, say nothing of the settlement.

Many non-profits perform services for their “clients” that require specialized services that are typically excluded on a commercial general liability insurance policy . They may provide elder care, youth services, counseling, legal services, placement services e.t.c. Much care needs to be taken to properly understand your risk and exposures to loss , then decide if you want to transfer that risk or exposure to  insurance carrier for a premium.

Often with non-profits we conduct a simple contract for services audit to understand what services they have been retained to deliver. Then we audit the professional liability policy to check if that exposure was contemplated . In a recent services audit for a local non-profit we determined that the  non-profIt , who was providing job placement services for disadvantaged youth , did NOT have the correct coverage for those services. Their Professional Liability policy did not include molestation coverage which could be critical if they placed that youth in a situation that led to an “event”. Just the assertion of the event could wipe out years of operating budget.

In the above example they did purchase Professional Liability coverage however without that audit , understanding their true exposure to loss , there was the potential for catastrophic failure if someone pointed a finger. Too often , without an audit these non-profits or other business organizations learn of the deficiency after they get the claim denied, making their education very expensive.

CLAIMS DUE TO AN ERROR OR OMMISSION :

In many service organizations, failure to perform a certain job function may result in damages to either your customer or the general public. An example might be a construction firm that improperly installed weep holes in the masonry facade of a building. Water built up behind the masonry wall going undetected for a period of time, ultimately resulting in the façade collapsing onto the street below. This actually happen to one of our clients.

Since they purchased Construction Errors & Omission insurance from us the loss defended and the damages covered. Mostly the re-purchase of new materials  and  labor to install the material  as well. Architectural fees, scaffolding, permits e.t.c. were also covered. The cash provided to investigate, defend and ultimately finance the repair was all paid from the construction errors & omissions policy. This had the affect of allowing the business to keep it’s cash flow, budgets and profits in tact. Errors & Omissions Liability Insurance is available to most service businesses, not just construction.

CLAIMS DUE TO A DATA BREACH :

This one can be fairly complex, with lots of potential for errors. Imagine you get an email from a Hacker stating that unless you pay them a ransom, they are going to slowly release all of your customers private information out into the web. Further they will tell your customers where they got the information and that you refused to pay the ransom which is why all their data is exposed. Imagine your a divorce attorney, a child psychologist, a financial advisor.

There are many examples I can give whereby your customers data or your customers systems are hacked due to a virus that may or may not have come from your network. The mere fact someone may point a finger at your company and make the assertion the hack started from an email your company sent is going to be a 6 figure event.  Further they can be very, very expensive to defend. In States like NY where they passed the SHIELD ACT the fines alone from a State or Federal government can put you out of business as the fines are well into the 6 figures.

In this situation you need a standalone Cyber Liability Insurance policy.

QUICK TIP : NEVER think you have coverage for Cyber liability just because your carrier added an endorsement onto your policy with a $ 1 mil limit stating they are covering  you for a cyber liability event.  Those endorsements fall woefully short of giving you proper coverage. They are hollowed out coverage forms that give the false impression you have coverage. This will only come to light when you file the claim , resulting in a denial.

CLAIMS DUE TO A FAILURE TO COMPLY WITH GOVERNMENTAL RULES & REGS: 

Sadly most companies aren’t aware that as a private company you have exposure to loss from rules , regs, codes that create obligations for your company for failure to comply. In this situation a Directors & Officers policy will help provide defense and in some cases help pay for the fines, or settlement due to these code infractions.

QUICK TIP : ON PRICING FOR ANY TYPE OF COMMERCIAL LIABILITY INSURANCE POLICY :

Pricing is predicated upon a “BASIS” ; a unit of measurement that the carrier determines best reflects their actuarial tables to determine the probability of a future loss. This is how they arrive at a premium. Some carriers are flexible with the “Basis” , others are not. They use one type of basis for determining the premiums they charge. You should determine up front what is the best possible “BASIS” for your company to yield the lowest possible premium.

Examples of “BASIS” would be :

  • Payroll
  • Sales
  • Units
  • Square Footage
  • Contracts

Contingent on the basis chosen the carrier applies a formula to the chosen basis to arrive at the premiums charged. A huge variable in that formula is your company’s loss pic (loss picture). This is the ratio of historical premiums charged versus claims paid out. Essentially , how much profit has your account generated over the previous 5 years based on incurred loss. For more on LOSS PICS , CLICK HERE.

We plan on doing a future piece just on pricing of Commercial General Liability Insurance as it’s way too much to tackle here.

A final thought  there are many risks and exposures that a typical commercial general liability insurance policy will disclaim. We cannot stress enough that a thorough evaluation with a qualified RISK ADVISOR of how you do business, where you make your money, how you make your money, from who you make your money is the ONLY way to properly insure the risk.

You cannot properly transfer risk or finance risk that hasn’t been indemnified. Further, unless you stress test your insurance program BEFORE a loss occurs you are setting yourself up for a very expensive lesson.

 

Employers Practice Liability Insurance, General Liability Insurance, Human Services Practice Group Content, Line of Insurance, Loss Control, Transportation Practice Group Content

Adult Day Care Considerations for Your Business

Running an adult daycare seems to be one of the harder gigs. Between keeping employees in check and fully trained and clients safe, it is a hard organization to manage. Our adult daycare inspection considerations list should help you keep insurance claims and deductions down. One less thing to worry about!

Insurance Considerations when Choosing which Adult Daycare Services to Provide

 

When running an adult daycare, you must understand that there are multiple types of insurance to cover you, your employees, your property, and your business. Some that you should consider when deciding on setting up your daycare center are:

  • Professional Liability – Covers your business from the negligence of employees and other defense/legal costs
  • General Liability – Liability for any incident that occurs within your business (slip & fall hazards or a loose handrail)
  • Auto Liability – For your workers who may transport clients/services to and from other locations
  • Abuse and Molestation Coverage – If the worker physically, sexually, mentally, or emotionally abuses a client

 

Adult Daycare: Safety Inspection Checklist 

Adult Daycares are meant to help adults who cannot supervise themselves during the day & may need help with basic care functions. This naturally means that these workers are constantly focusing on keeping patients/clients safe. Worker’s may overlook small issues, like a cracked sidewalk or an unsteady handrailing as their main focus is on the client, not their surroundings. A Supervisor should focus on making sure safety is a priority for employees & that the surrounding areas also well maintained & safe.

Here are just a few things you might want to keep constantly asking/monitoring:

  • Is the loading/unloading area clearly marked?
  • Are there any potholes in the parking lot?
  • Are there cracks in the pavement that needs to be repaired?
  • Do you have wheelchair-accessible ramps & handrails leading up to the main entrance clearly marked?
  • Are these ramps and handrails in good condition?
  • Are the emergency exits clearly marked and free of obstructions?

Safety Tips for Your Adult Daycare Center

 

While having a safety inspection checklist is definitely important, having certain safety parameters in play is just as necessary. This includes, but is not limited to:

  • Rigorous, continuous safety training – your employees are dealing with real-life adults that can be unable to perform simple functions without supervision. This means your employees need training to the max. Rigorous training with in-depth expert advice is important. What is also important is that this training never stops and is not just a 3-day course. It is a continuous learning process.
  • Safety Guideline/Handbook – Having a written word on the safety parameters and rules already gives the employees a better idea of how to handle their clients.
  • Mechanical Lifts & Safe Patient Handling
  • Handrails on stairways
  • Handicapped Bathrooms
  • Proper Lighting
  • Large, spacious areas
  • Medical supplies ready for immediate use

 

Adult Day Care Transportation Considerations 

When running an adult daycare, you need to think about how the adults in need of assistance will come to the daycare facility. If their caretakers at home do not have the time or resources to drive them there and back or make trips to various other locations to aid the adult, this is where your daycare service can flex its muscles. Having a transportation wing of your facility will make your daycare more profitable immediately. Offering the transportation of clients from home to daycare and back is the most important, but you can also offer trips to the grocery store, hospital, and sources of entertainment.

 

Before setting any of this up, you might want to think about the potential risks of implementing this transportation system. Who will be driving? Will they be using their own vehicle or a vehicle provided by your organization? Are they a good and safe driver? Do they need a specific type of license to drive an organization owned fleet vehicle? Will their actions cost me thousands of dollars? We suggest following these tips to make sure you have the necessary guidelines set to open up your transportation service.

 

Have a Motor Vehicle Record open for every single driver. Essentially, a MVR is a small summary of the driver’s previous record and any information pertaining to tickets they may have received. This report includes driver’s license info, date of birth, previous driving history, violations, etc.

 

Obtain comprehensive automobile insurance with medical, property, and liability damage included. That means if you/your driver is liable for an accident, you are protected and covered. If your car receives damages or is stolen (your property), you are covered. And if there is a medical injury due to a crash, you are also covered.

 

Contracting a professional driving company may be worthwhile for your company’s success. If you are unsure of your workers serving as part or full-time drivers, hiring professionals is worth it. They are experienced and bring less risk into the equation. Spending more on their services may cost you less in the long-run.

 

Conclusion

To conclude, running a daycare for adults is not easy. There are a lot of risks and potential costs to consider. But taking our adult daycare inspections tips into consideration will help your organization to succeed.

 

Still, need help? Still, have questions? Contact a risk advisor today at 914-357-8444. Or, visit our website here.

 

Claims Management, Employers Practice Liability Insurance, HR Challenges, Risk Management, Workers Compensation Insurance

Heat Injury and Illness in the Workplace

An Under looked problem

Heat injury and illness is a serious work-related danger that affects millions of American workers each year. Not only do heat injuries directly cause injuries/illness, but at times they are the underlying reason for mishandling of equipment, and lack of focus that leads to other work-related injuries. While federal agencies such as OSHA publish articles on measures to prevent heat-related injuries/illness, at times these cautions do little. It is on the management to provide resources, knowledge, and safety measures for workers in constant risk of heat injuries and illness. Here are some ways to prevent heat injuries and illness.

How to Avoid Heat Injury and Illness

Provide Rest Breaks:

Management should provide several work breaks other than lunch every day. These breaks should include free water and a shaded location. This well help workers stay out of the heat, cool down body temperature, and replenish fluids.

Provide Information:

Your workers need to understand the dangers of working in constant heat. Manual labor in heat will cause a slower release of body heat and less sweat. This traps more heat in the body, raising the body temperature. This is a dangerous result, as 2 degrees fahrenheit higher than normal body temperature can cause dizziness, lack of focus, and dehydration. Once you hit 5 degrees past normal body temperature you are flirting with possible fatal illnesses. The more your workers know, the safer your workers will work under intense heat.

Training:

Training workers on how to avoid what prevention is nearly impossibly. However, training project supervisors on proper safety plans and measures is beneficial to all. Having set heat prevention measures in place for your supervisors to execute can save you money in claims and injuries.

Sometimes, these precautions still are not enough. Workers may still suffer from the effects of high heat and humidity. Here are a few steps to deal with a worker with a heat injury or illness.

How to Treat Heat Injury and Illness

Immediately Bring the Worker to Shade:

Give the worker tons of water to hydrate them. Ice packs to cool down their body temperature is also recommended. The best spot to cool down a worker is the back of the neck, as it helps control your entire body’s temperature.

Bring the Worker Medical Assistance:

If their symptoms continue to worsen or remain stagnant, calling an ambulance is the best option. Make sure to call the ambulance within the hour the worker first felt symptoms.

Loosen Clothing:

Loosening the worker’s clothing can help free entrapped heat between the skin and clothing. This will help cool the workers’ internal body temperature. It will also help with quicker blood flow, which will help the worker recover quicker.

Heat injuries and illnesses are not small cast-offs when talking about workers’ injuries and workers comp. These are critical parts of worker safety and health, especially in construction and work done primarily outside. Hopefully, this article will help bring important information to project supervisors and management about proper steps and safety precautions regarding heat injuries and illnesses.

Still confused and want advice? Call a risk advisor today at 914-357-8444 or visit our website here for more information.

Construction Practice Group Content, Employers Practice Liability Insurance, Food & Beverage Practice Group Content, HR Challenges, Human Services Practice Group Content, Practice Groups, Risk Management, Transportation Practice Group Content

Is Your Organization Prepared For The Coming Changes That Could Increase Your EPL Risk?

Rapidly changing times bring rapidly changing standards when it comes to things like diversity, harassment, and discrimination.  Employment practices liability has always had significant exposure but the current social climate adds a hypersensitivity surrounding these topics which are bringing forth calls for new regulation. Consumers are more than ever keeping a close watch on both private and public corporations to make sure that they treat its employees fairly. Companies that don’t shift with the times can and will face costly lawsuits and reputational damage. 

 

Below are some regulatory changes that are already set in motion:

 

The Federal standard no longer applies

 

This past August, states like New York which ALREADY had a lenient threshold when it came to proving discriminatory harassment, amended a law to make it even easier to prove harassment. New York now requires all companies to adopt a written sexual harassment policy as well as have all employees “interactively” trained within 90 days of getting hired.  Prior to this, NYS followed the federal burden of proof needed to provide “severe & pervasive” harassment to prove a claim

 

Now, the person claiming harassment does not need to demonstrate the existence of another individual whose treatment compares to their experience. Meaning, the burden of proof lies not with the person claiming harassment, but on the accused to prove the contrary. 

 

Example: The accused is guilty until proven innocent. Instead of innocent until proven guilty.

 

New legislation determined that there must be Female representation on the board of directors. 

Legislators in California ruled in September 2018 that any publicly held company where the principal executives reside in the state MUST have women on the board. 

This new law is already evolving; by the end of 2019, such company boards MUST include one woman and by the end of 2021, that number will increase depending on the total number of board members. Companies that fall out of compliance are subject to an initial fine of $100,000 and all subsequent violations at $300,000 each. 

Example:

761 publicly traded companies are currently HQ’d in California. As of October 2019, at least 70 companies are out of compliance with this legislation Source

 

 

Discrimination Against Potential Employees With Criminal Records 

 

The Equal Employment Opportunity Commission (EEOC) launched an initiative in 2008 in opposition to practices used by employers when making employment selections based on arrest and conviction records. They feel that this conduct negatively impacts certain minority groups. There have been significant amounts of case law surrounding the legality of asking applicants about possible criminal history. 

At present. 35 states have passed legislation regarding this practice but each state has its own approach. In most states, employers are not allowed to ask any conviction questions but allow a background check after a Conditional Offer of Employment is made. If the offer is rescinded due to a criminal history found, recent precedent requires that the employer must demonstrate some sort of relationship between the conviction(s) and the job applied for. 

 

Example: If you were convicted of something like embezzlement and you are disqualified from a Bus Driving job, a case could be made against the employer. But if you are applying for a job in let’s say, the accounting department, that is a different situation. 

 

Non-Disclosure provisions will be a thing of the past 

 

 Historically, settlement agreements usually include a non-disclosure provision where 

Money is paid but ONLY the plaintiff is prohibited from discussing the case. (Hush Money) The argument for this is obvious,

 it allows the continuation of inappropriate behavior by sweeping things like discrimination or harassment accusations under the carpet. New York and California both passed legislation that eliminates the use of Non-disclosure agreements on settlements of discrimination or sexual harassment cases. The culture of wrongdoing in a company will NOT change if it is not brought out into the open.

 

Salary Data now used as an Underwriting tool

 

The EEOC is requiring salary data across on its EEO-1 reports. What is an EEO-1 report? It is a report/survey required by companies with more than 100 employees. It indicates the demographic breakdown of its employees across 10 job categories. The change this year is that the EEOC wants the salary data in those categories as well. It will show the rate paid in these categories based on gender, race and national origins.

 

From an underwriting standpoint, this information is invaluable. A potential class-action lawsuit situation may occur if there are large pay discrepancies related to race, gender, or national origin. This data will help underwriters understand the risk they are taking. It will also help Risk Managers understand where to apply resources, decreasing the chances of these claims being filed.

 

Example:
The U.S. Women’s’ Soccer Team filing a gender discrimination lawsuit against the soccer federation over pay equity and working conditions.
Source

In conclusion

These changes made at the state levels will eventually turn into National trends. If you are a business owner, you should expect your state to pass similar legislation. If you are a proactive employer, knowing what new legislation means to your company will help you limit your exposure. It will also help understand how to better transfer the risk to carriers when it comes to employment practices liability. 

 

We speak with people all of the time who think “Risk Management” as only a preventative measure. That is a component and what we talk about with regards to proactive employers. But the bigger picture is Risk Management is ALSO about accepting that you WILL have a loss. When that time comes, make sure you have an Action Plan and procedures mitigating the impact of the claim. Observe, Orient, Decide, Act…

For more information on Employment Practices Liability Risks and how your organization can better protect themselves from EPL claims, contact a risk advisor at 914-357-8444.

Construction Practice Group Content, Employers Practice Liability Insurance, Food & Beverage Practice Group Content, HR Challenges, Human Services Practice Group Content, Practice Groups, Risk Management, Transportation Practice Group Content

New York State Expands Anti-Discrimination Laws

New York State (NYS) has once again increased its protections against workplace discrimination and harassment by updating and expanding its Anti-discrimination laws. Under a new law enacted on Aug. 12, 2019, certain provisions that were added by the state’s 2019 budget in 2018 are expanded so that they cover not only sexual harassment but also all other types of unlawful employment discrimination. New employee notice requirements apply as well.  

The new law also makes all employers in the state (not just those with four or more employees) subject to all provisions of the NYS Human Rights Law (HRL) starting on Feb. 8, 2020. A variety of other changes will make it easier for individuals to hold employers liable for harassment and discrimination. 

Action Steps For Employers

Employers in NYS should become familiar with the new law and begin providing written copies of their sexual harassment prevention policies and training program information in English and each of their employees’ primary languages. Employers should also monitor the NYS Department of Labor’s (DOL) website for model foreign-language notices. 

Identifying Unlawful Workplace Harassment

The new law expands the NYS HRL’s current definition of unlawful workplace harassment effective Oct. 11, 2019. Specifically, harassment will be considered an unlawful discriminatory practice when it subjects an individual to inferior terms, conditions or privileges of employment because of the individual’s opposition to or participation in any proceeding involving unlawful workplace harassment or because of the individual’s membership in one or more of the following protected categories:

  • Age
  • Creed
  • National origin
  • Gender identity/expression
  • Sex
  • Predisposing genetic characteristics
  • Marital status
  • Race
  • Color
  • Sexual orientation
  • Military status
  • Disability
  • Familial status
  • Domestic violence victim status

 

Changes to Recently Added Provisions on Workplace Sexual Harassment

Topic Effective  Law Changes
Written policy on sexual harassment prevention Oct. 9, 2018 Employers must have a written sexual harassment prevention policy and distribute it to employees.
Aug. 12, 2019 Employers must provide the above policy in English and each employee’s primary language and both at hire and again every year when training is provided. 
Training programs on sexual harassment prevention Oct. 9, 2018 Employers must provide annual, interactive sexual harassment training to all employees. 
Aug. 12, 2019 Employers must provide written copies of the training program information in both English and each employee’s primary language and both at hire and again every year. 
Nonemployee claims April 12, 2018 Nonemployees may file workplace sexual harassment claims against an employer.
Oct. 11, 2019 Nonemployees may file any type of unlawful workplace discrimination claim against an employer.
Contractual arbitration requirements July 11, 2018 Employers are prohibited from including mandatory arbitration requirements for sexual harassment claims within any written contract.
Oct. 11, 2019 The above prohibition applies for any type of unlawful workplace discrimination claim.
Nondisclosure conditions in claim settlements July 11, 2018 Employers are prohibited from including nondisclosure conditions in any agreement to resolve a sexual harassment claim, unless the complainant prefers to include one. 
Jan. 1, 2020 The above prohibition applies to agreements to resolve any type of unlawful workplace discrimination claim. Also: 
  • If a complainant prefers to include a nondisclosure condition, it must be written and provided in both English and the complainant’s primary language. 
  • A nondisclosure condition is void if it restricts a complainant from participating in any local, state or federal agency investigation or from filing or disclosing facts necessary to receive public benefits. 

Any agreement that prevents disclosure of facts related to a future discrimination claim must include notice that it does not prohibit the employee or applicant from speaking with law enforcement, the U.S. Equal Employment Opportunity Commission (EEOC), the NYS Department of Human Services (DHS), any local commission on human rights or an attorney.

For more information contact one of our Risk Advisors or call 914-357-8444.

Employers Practice Liability Insurance, General Liability Insurance, Human Services Practice Group Content, Line of Insurance, Other, Workers Compensation Insurance

4 Types of Insurance To Consider Purchasing For Home Health Care Agencies

Being prepared with the right home health care insurance will help you develop a strong system in your company. It’s important to have a tight process so everything is clear and understood. When opening your own home healthcare agency there are many opportunities for risk. As an employer, you take on the extra risk of being unable to supervise your employees.

Workers comp insurance

Workers‘ compensation is insurance that provides benefits and medical care for workers who are injured or become ill as a result of their job. Many caregivers could end up in a situation trying to care for somebody but becoming injured. This makes it an important asset to have.

Disability insurance

This insures the beneficiary’s earned income against the risk that a disability creates a barrier for a worker to complete the core functions of their work.  People are 3 times more likely to become disabled than die before the age of 65- so it makes sense to consider this type of insurance.

Professional Liability Insurance

This is liability insurance which helps protect service-providing individuals and companies. This protects them against financial losses from lawsuits filed against them by their clients. Even the best healthcare providers can come into contact with a dissatisfied client

General Liability Insurance

This covers any instance of lawsuits and injury damages. With this in mind, there’s a lot of things that General Liability insurance doesn’t cover. Damage to your property, Employee injuries, Employment disputes, Damage to your vehicle’s, and professional mistakes.

These 4 options are something that one should consider for home health care insurance. Preparedness and awareness are also the best things you can do for your company. Still need help? For more information book a 5-minute call with a risk advisor or call 914-357-8444.

Employers Practice Liability Insurance, General Liability Insurance, Human Services Practice Group Content, Vlogs, Workers Compensation Insurance

Workers Comp Claim: How To Prevent Hiring Your Next One

Did you know that MOST workers comp challenges originate from the moment you send that offer of employment letter out?

 

If you didn’t, you are not alone. When you hire a new employee, you inherit their ENTIRE medical history! Your competition has turned this hiring process into their competitive advantage over you. Learn what tools you have to insulate yourself from your next Workers Comp claim and ensure you’re hiring folks that YOU KNOW can do the job…

 

This video takes you through the hiring process, the laws, regulations, and other small but important facets of hiring employees you may have not known before. Then, we’ll tell you how you can deal with these issues. Obviously, hiring a professionally trained team to teach, inform, and place different safety mechanisms within your hiring system is costly but the best option available. Metropolitan Risk is one of those teams. We deal with these issues on a standard basis, as it is one of our main points of business with small companies.

 

If you have questions about how to prevent hiring your next workers comp claim, you can contact one of our professional risk advisors at 914-357-8444. Or, you can click here to visit our website with more information and blogs.

Employers Practice Liability Insurance, Other

4 Quick Tips To Avoid or Finance A Wrongful Termination Suit


Wrongful termination suits typically occur when an employee feels their firing was unjust. We will cover 2 of the most prevalent reasons employers are sued for wrongful termination as well as 4 quick tips to mitigate the loss.

The first is when terms in the employee handbook alter the “at will status” of employment. The “at will status” refers to the fact that the employer/employee relationship can be terminated by either side at any time and for any reason. You can read more about it at the New York State Department of Labor’s website. Ultimately all that matters is what you put in writing. So if an employee feels the handbook implied a contract he or she may have grounds to sue. This brings us to our first tip:

Tip 1: Be careful of what you write in your employee handbook. Feature a clear disclaimer statement, stating the employer’s intention that the policies are not intended to alter the at will employment relationship.
 

Tip 2: Once your policies are written follow them precisely.

The second reason suits typically occur is because employees feel that their employers did not adhere to the “good faith” exception. This rule states that once an agreement of employment is made the employee must be given a reasonable amount of time to perform up to expectations. An example of a wrongful termination would be if Bob is from New York and accepted a job in Florida. He moved there just to find out that his position was filled because the company found a better candidate. Here the company would most likely be in the wrong due to the good faith exception, and would likely face a suit from Bob.

Tip 3: Once a definite offer is made and accepted, give your employee a reasonable  amount of time before making a decision to let them go.
The good faith exception depends on the situation so there is no clear answer for the amount of time before an employee contract can be terminated.


Tip 4: Purchase Employer’s Professional Liability Insurance or E.P.L.I. to help defray the cost to defend your company if a suit is brought against your company. The premiums are very reasonable, and can be a huge net income loss saver for many small to mid sized business owners. According to Richard Landau of Jackson, Lewis LLP, a noted labor relations defense attorney located in White Plains N.Y. the vast amount of cost for these law suits are defense related. When a small business purchases the additional employers professional liability coverage the legal expense which would otherwise be paid from either cash reserves or current cash flow is then paid for by the insurance company. Some insurance companies like The Hartford can include it on many of their Spectrum Class Insurance products which were designed for the small business owner. If the employee prevails in the litigation quite often the insurance carrier will also pay the court imposed judgement. That said over 90% of these types of law suits never see a courtroom according to Richard Landau. Usually a settlement is arrived at before an expensive trial commences.

We hope you found this information helpful. If you have any questions or would like a quick quote on how much Employers Practice Liability Insurance would cost your business please call or contact one of our Risk Advisors at Metropolitan Risk Advisory.
Employers Practice Liability Insurance, Other

Avoiding General Wrongful Termination Lawsuits

Firing an employee happens often and this recession has caused employers to fire many employees. Some cases involve an employee filing a lawsuit for unjustified termination. New York State employers are more protected by wrongful termination litigation than most states because of its ‘at will’ presumption.

Ways to stay out of court after firing an employee:

  • Maintain ‘at-will’ condition meaning either the employee or employer can end the employment for any lawful reason and at any time, without warning or cause. Unlawful requital, discrimination, and other illegal reasons are not included.
  • Have an employee handbook. Make sure an employee cannot claim that the terms used in the handbook change the ‘at will’ status, making it a contract of employment. Policies written in the handbook may cause the handbook to become an employment contract.
  • It is important that you include a disclaimer to reduce this problem. The disclaimer should clearly state that the handbook is not a contract and does not change the ‘at will’ status.
  • Have employees acknowledge the ‘at will’ status and provide a signature for their acknowledgment and that they have been given and have read the employee handbook.

Other Wrongful Claims:

  • The employee handbook includes in-depth disciplinary actions. Employees may sue for breach of contract because employees were not disciplined by following the disciplinary arrangement before being fired. Make sure you follow all disciplinary policies stated in the handbook.
  • This claim is a little tricky, however, it has and can happen: Pre-employment promise by an employer is terminated before the employee had a chance to work. In cases such as this, employees can sue the employer; promissory estoppel claim. There must be proof that the employee accepted the employment offer, resigns from his/her former employer and the new employer made a clear and straightforward promise of employment but terminated the offer before the employee’s first day of work.  The employee can sue and collect damages for wrongful termination.
Following these tips may save you a trip to the courtroom and a lot of headaches. To further reduce your risks, there are experts in the New York and New Jersey area who can help you unfold ways to protect you and your business. If you need to consult an excellent Labor Attorney may we suggest Richard Landau of Jackson Lewis, one of the nation’s premier Employment Law firms. We also suggest you review our brief interview with Richard relating to Wage & Hour Labor Disputes , highlighted in our 90 Second Solutions.