Directors and Officers liability insurance programs protect managers from lawsuits that arise due to actions and decisions that fall within their jobs’ regular scope. A hammer clause in a D&O policy helps protect the professional reputation of a business.
What Is D&O Insurance?
This policy type covers the directors and officers of a company against potential lawsuits. It enables managers to carry out their job obligations without the fear of financial loss due to legal claims. These policies help cover the resulting defense and settlement costs.
What Does a D&O Policy Cover?
This insurance reduces the risks associated with claims against executives within your organization. It helps negotiate settlements and cover defense expenses. This coverage saves both time and money and enables your company’s decision-making members to conduct business as they deem appropriate. It also protects the personal assets of directors if legal issues arise.
What Protection Does a Hammer Clause Provide?
A hammer clause in a D&O policy caps the insurance company’s liability if the insured rejects a settlement during a claim. Defendants in claims involving D&O insurance typically do not admit guilt, yet the compensation often consists of an allocation based on an admission. A settlement rejection triggers the hammer clause, limiting the liability for the settlement and defense of claims amounts.
With this clause, the insurer has the power to force a settlement, making it an executive protection plan your business may want to consider.
Insurance needs for individuals, families or businesses are diverse so it’s important to give people a wide range of coverage options. Mountainside Insurance Management will customize programs that are flexible and ensure that clients get the specific types of coverage they require.
How Does Insurance Management Work?
Insurance management is a network of brokers, consultants and providers who work together to offer a broad spectrum of insurance products to buyers through personalized programs. These insurance solutions are designed to meet the specific needs of consumers and are competitively priced. These are three reasons people use managers:
- Risk management: Risk management involves a strategy to mitigate possible losses by finding the proper protections as needed. The right insurance tools can lessen financial impacts that come as a result of adverse life events.
- Business losses and claims: Companies have numerous factors to consider when it comes to losses and claims that include property, employees and customers. The risks consistently change, and an insurance management team alleviates the burden by staying on top of necessary and timely policy modifications.
- Individual and family protections: Clients need insurance policies for property, life, health and auto.They may also need additional products, such as umbrella coverage to protect personal assets.
Insurance managers work with clients to ascertain risks and make certain their insurance products keep them personally and professionally covered throughout their lifetimes.
Business insurance can be tougher to shop for than it seems on the surface. Most insurers do their best to predict your risk, but very few employ people who have been in your line of business, at a company with your exact business model. That’s why more and more businesses are turning to alternative risk management options like captive insurance. Captive insurers are owned by the companies they insure, and they provide bespoke insurance solutions whenever you need a form of coverage that just isn’t cost effective in the general marketplace. Some companies even use them as a total insurance solution.
Group Captives Control Cost
While you can start a captive on your own for maximum control over its processes and costs, group captive insurance solutions significantly lower the investment up front while expanding the insurer’s risk pool, a move that usually saves on the cost of policies in the long run as well. The key to managing a group captive situation well is to work with companies who are well-matched to yours in terms of the depth of coverage and kinds of risks covered. By working with businesses whose needs are very similar to your own, your captive company winds up with a more specific insurance mandate and your partners wind up being able to understand your needs, making it easier to build the new captive together.
When you operate a business on the water, your choice of boats becomes very important, and your insurance needs to reflect that choice in detail. The size of the vessel, purposes to which it is being put, crew configuration, and motor design all play a role in the cost of insuring it, so your insurer needs to understand the difference between sterndrive and inboard motors as well as you do.
How Motor Type Affects Insurance Costs
Sterndrive or inboard outboard motors have a few cost-saving advantages over full inboard motors because they are easier to clean and to access for maintenance. Often, they’re also less expensive to repair and replace, too. When considering whether to invest in an inboard vs inboard outboard boat, you need to consider the cost of the investment in full, including the cost of keeping it insured and the cost of keeping it operating. Lower repair and replacement costs save you money in both those arenas.
Using Your Business Insurance Provider as a Resource
When you have the right insurer, one who really understands your needs, you can inquire about these cost comparisons ahead of a purchase to help you better understand the full costs of an upgrade. That’s just one of the many ways you benefit from working with professionals who focus on offering insurance to maritime businesses like yours.
Companies hire temporary workers for a limited time when regular employees are absent for prolonged periods. Your business must comply with federal laws when hiring temporary employees.
When Should You Hire Temporary Workers?
Businesses hire temporary workers for a specific project or purpose while avoiding the cost of hiring regular, permanent employees. There are many reasons an owner might hire someone temporarily, including:
- When a permanent employee is on maternity leave, family leave, or vacation
- When there is a short-term need for a specific skill set, such as creative or computer expertise
- When you desire to keep staffing levels optimal without overworking your regular employees
How Long Can You Employ a Temporary Employee?
A temporary worker’s time with your company cannot exceed 1,040 hours per year. The same employee cannot work at your company for more than two consecutive years.
Employers should specify both the scope of duties and length of time for temporary help. These employees should not perform the same responsibilities as regular, full-time staff indefinitely.
Why is There a Time Limit for Temporary Personnel?
Temporary workers do not qualify for health insurance or retirement benefits, and they typically earn a lower wage than permanent employees in similar jobs. Therefore, it costs companies less to employ temporary staff members. Laws are in place to prevent employment abuse.
Sometimes hiring permanent workers is the better solution, but for the right business at the right time, hiring temporary employees can solve short-term needs.
Workers compensation is an insurance policy taken out by an employer to protect employees in case they get injured while working. You should first check to see if your employer has workers comp, as not all states legally require businesses to cover their employees. If they do, it’s important to understand how workers comp can protect you and what your rights are in the event that a claim is denied.
What Are the Benefits of Workers Comp?
Workers compensation covers many things depending on the extent of your injuries and how the accident occurred. It can pay for all your injury-related medical bills, as well as any wages you might lose while unable to work during your recovery. If you become permanently disabled, workers comp will continue to cover you.
What If Your Claim Is Denied?
Your claim could be justifiably denied because your injury resulted from a fight with another employee or you were acting negligently on the job. However, sometimes your employer will unfairly deny your claim because of costs. While some companies are trying to make insurance more affordable, such as warehouse workers comp, it can still be something your employer doesn’t want to deal with. If this happens, you can contact an attorney to see if you have the option to sue.