Liquor Liability Policy

Posted on December 23, 2012 by Jane Green

Liquor Liability PolicyA liquor liability policy is an insurance policy that is designed to help protect businesses that sell, distribute, manufacture or serve alcohol. It can be added on to an existing commercial liability policy or purchased separately, but not all businesses choose to carry this type of insurance for their business. In fact, it is estimated that only about 35% of all businesses that sell, distribute, manufacture or serve alcohol. And while there are definitely many reasons why businesses opt out of liquor liability insurance, the result of a claim can mean complete financial ruin.

If you have a business that hosts, serves, manufactures, sells or distributes alcohol, take the time to understand what a liquor liability policy is, how it can protect your business and why it might be a much-needed insurance policy.

You Are Liable

When it comes to liquor liability, there is something that you need to know; no matter what level of involvement you or your business has in the liquor industry, you can be held liable for an accident, injury or fight that is fueled by alcohol consumption. You can be sued by the intoxicated individual. You can be sued by someone injured by an intoxicated individual. You can be sued by a family member of the intoxicated individual. You can even be sued by an employee that is injured because of an intoxicated individual.

Litigation processes are extremely expensive. You need legal representation for you and your business. You may also be responsible for damages to the individual – medical bills, death compensation, property damages and even loss of income can all become your responsibility. In many states, the liability of the liquor distributor, manufacturer, seller or server is held liable by law. In these states, it is almost essential that you obtain liquor liability insurance. But even if the state you do business in does not have a governing law about liquor practices, you may want to consider purchasing a liquor liability policy. The absence of a governing law does not prevent lawsuits from happening.

The Problem with Liquor Liability Insurance

Unfortunately, liquor liability insurance is not without flaws. First, it is extremely expensive; so much so that many businesses that need it cannot afford it. What a lot of businesses fail to see, however, is that the cost of insurance, when compared to the cost of litigation,, is rather small.

Another common complaint with liquor liability insurance is the fact that there may be and often are numerous exclusions in the policies – one of which is any lawsuit that involves the distribution of alcohol to a minor. Before purchasing a liquor liability insurance policy, be certain that you know about any and all exclusions that could affect your business.

How Your Cost is Determined

There are many factors that are used to determine the cost of your liquor liability insurance – previous claims, business location, type of business, revenue and more. Understanding what your policy quote is based on can sometimes help you reduce the cost. If, for instance, you have a high number of claims, learn how to reduce claims against your business so that you can receive a lower premium in the future.

What to Look for in a Liquor Liability Insurance Policy

When you are checking into liquor liability insurance, there are some specific elements you should ask for. While these items may increase the cost of your policy some, having them will help ensure that you are fully protected from alcohol-related litigations that do not involve minors.

  • Employees as Patrons: Even if you set aside rules that restrict your employees from drinking, you have to know that employees will break the rules. It is inevitable. For this reason, many policies will exclude employees from the policy. This exclusion, however, will leave you unprotected. So if you serve alcohol at your facility, make sure that you include your employees, even if it costs a little more.
  • Legal Fees: Some policies exclude defense costs from their policies. Unfortunately, the legal fees can make up the bulk of your total litigation costs. Make sure that you find a policy that covers legal counsel.
  • Assault and Battery: When it comes to bars, night clubs and restaurants, the majority of claims relate to assault and battery charges. Insurance companies know this and often exclude this type of coverage from the policy. Unfortunately, if you do not have this type of coverage and you have one of the aforementioned businesses, you will find that your policy has practically no value because it cannot protect you from the most frequently filed claims.
  • Mental Damages: Damages do not have to be physical when filing a claim. Claims can be made regarding stress, psychological damage or mental anguish. Mental damages should be included in your policy and if the damages section is obscure in your policy, find another.
  • Safety and Claims Discounts: Finding an insurance company that offers premium discounts for classes, training, safety plans and a lack of claims. This can reduce your premiums drastically.

(Note: No policy will cover litigations that relate to alcohol sales to minors.)

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Architects Professional Liability Insurance

Posted on December 19, 2012 by Jane Green

Architects Professional Liability InsuranceAre you a newly started architect or architectural firm? Have you considered architects professional liability insurance? If not, you may want to take a moment to reconsider, even if your budget is little or your clients are small. Keep reading and discover what you should know about architect liability insurance and why it should be in place the moment you open for business.

Understanding Why Businesses Opt Out of Insurance

As with most types of business liability insurance, architects professional liability insurance is not required by law. Failure to recognize the benefits of liability insurance and misconceptions about the cost are often deterrents for newly started architects and architectural firms. In some cases, architectural business and self-employed architects are just not aware that the coverage exists until they are asked by a client or faced with a claim.

None of the above reasons really carry much merit. Numerous benefits, particularly protection from legal recourse, are provided to the architect or architectural business with professional liability insurance. The cost is often very manageable, especially for new businesses and architects. Failure to recognize that protection is needed can lead to serious consequences.

Types of Claims You May Face

If you have never considered the possibility of being held responsible for a claim against you, then you might be surprised to learn about the various claims that can be filed against you. In this litigious world, people are willing to sue over almost anything. As an architect, you can face claims because:

  • Failure to meet a deadline
  • Delays on construction
  • Planning or feasibility studies
  • Failure to design a safe, high quality building
  • Construction failure

Knowing what you may be held responsible for can help you determine why coverage is important. It can also help you see that, as a new architect, you are at a higher risk for claims, just because of lack of experience. Don’t leave you or your company unprotected.

Benefits of Architect Professional Liability Insurance

The biggest benefit to carrying architect professional liability insurance is the protection it offers. Without architect professional liability insurance, you are personally responsible for all legal fees and damages awarded to the “injured” party in a lawsuit. When you have insurance, however, you are protected from the cost of legal fees and damages that may be owed to the “injured” party filing a lawsuit against you or your company. The insurance company will pay those fees, up to the limits placed on the policy, minus the deductible, granted the claim does not fall within any excluded services.

Another benefit of having architect professional liability insurance is the ease of obtaining clients. Many large businesses and corporations require architects to provide proof of insurance. While you may be provided with time to obtain it, securing the job would be much easier if you already had the policy in place. Additionally, already having a policy in place shows your clients that you are serious about your business and that you are willing to protect it and your work with an insurance policy.

Cost of Architect Professional Liability Insurance

Various factors are used to determine the cost of architect professional liability insurance. For each architect, the premiums will be different, as will be the coverage and policy. Additionally, each insurance company is different and each company will extend a different product to their customers. There are, however, things that you can do to help keep your premium costs manageable, no matter which company you decide to choose or what specifics apply to your business.

The first thing you can control when it comes to your premium is the application. While long, tedious and often difficult, accurate completion of the form can help to ensure that the agent understands your business and your business risks accurately. This can help ensure that you get the right policy for your needs and it can prevent any speculations on the part of your agent.

Other aspects of your business may not be controllable, unless you plan to change your type of business. For example, if you design condominiums, expect to pay a higher premium for your architect professional liability insurance.

Another aspect you cannot control is your business revenue. Your insurance policy costs will be partially figured on the revenue your business brings in. You can, however, adjust your revenue by deducting copy fees and fees related to projects abandoned before construction started. Adjusting your revenue can help decrease your premium costs drastically.

When the Cost is Still Too Much

If you find that your insurance policy is still too much, whether it already active or has yet to be reinstated, talk to your agent. Often, the agents can be creative with your policy and help you obtain discounts that can lower the costs. They may also be able to re-evaluate your business to determine if you even need all of the coverage you have purchased.

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What is a Certificate of Liability Insurance?

Posted on December 16, 2012 by Jane Green

Business liability insurance is needed for almost all companies to ensure that they are protected from certain damages. For some companies, however, liability insurance is necessary to even conduct business – subcontractors are just one example. If you have been asked for a certificate of liability insurance and don’t know what to do, this article will give you the information you need.

What is a Certificate of Liability Insurance?What is a Certificate of Liability Insurance?

In reality, a certificate of liability insurance is nothing more than a sheet of paper. It lists all of the specifics about your liability insurance, including the name of your company, the type of coverage you have, how much coverage you have and the effective policy dates. Much like your auto insurance card, the information on your certificate of liability insurance is not a replacement for continued coverage; more it acts as a snapshot or proof that you have coverage at all.

Why Do You Need a Certificate of Liability Insurance?

Certain clients, customers and businesses require proof of liability insurance before they will conduct business with you. In most instances, these clients, customers or businesses are entering into a business agreement with you. Their request of a certificate of liability insurance is a method they use to protect their business from loss.

So why not give your customer or client a copy of your liability insurance policy if they need proof of insurance? The answer is quite simple. Your insurance policy contains more intimate information about your business. Some of this information may be confidential. Some information, to put it quite simply, should not be shared with your customer or client, hence the need for a certificate of liability insurance.

Benefits of Having a Certificate of Liability Insurance

Having your certificate of liability insurance shows your clients or customers that you are serious about your business and theirs. It shows that you are a true professional, and in unspoken terms, your certificate of liability insurance shows your client or customer that you will do your best to avoid a claim against your business. Think of it as a bit of a guarantee on your work or services.

Drawbacks to Using a Certificate of Liability Insurance

Unfortunately, a certificate of liability insurance is not a guarantee of coverage for your customer or client – this is noted in a disclaimer on the certificate. Just like that auto insurance card, if the premium is not paid or updated, the policy will terminate. Additionally, your customer or client must file a claim to receive any type of benefits, should there be a reason to do so.

Another big drawback is that a certificate also contains a disclaimer that indicates that it cannot be altered or modified. While the policy can be modified or altered, you, as the insured, have no way of providing proof to the customer or client that you have done so through a certificate of liability insurance.

Where to Get a Certificate of Liability Insurance

Before you can obtain a certificate of liability insurance, you must first purchase liability insurance. Once you have purchased your policy, all you need to do is ask for your certificate of liability insurance. This is a common request and most insurance companies are more than happy to provide you with the necessary document.

Keeping Your Certificate of Liability Insurance Up-to-Date

While you cannot obtain an updated copy of your certificate of liability insurance if you simply update your policy, you can receive one when you renew.  Every time you must update your liability insurance policy, it is wise to obtain a new certificate of liability insurance. This will show your customers and clients that you are serious about your liability insurance coverage and your business.

Other Good Business Practices for Your Certificate of Liability Insurance

Once a request for a certificate of liability insurance is made, it is always in your best interest to provide the copy to your client as soon as possible. It is always a good idea to have extra copies of your certificate of liability insurance on hand. This way, you don’t have to wait for a new copy to be mailed to you when it is requested by a client or customer. You will always have a copy when you need it, which could help speed up business transactions. This exudes professionalism and it can even help increase your business’ income flow.

Another good practice is to let your customer or client know if your policy terms before the policy cancel date. This shows your client or customer that you really do care about their business. If the cancellation is because of a new policy that you have taken out with another company, present your client with a new certificate. This will keep your client up-to-date on all of your liability insurance information.

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