What Can You Do To Manage Your Business’ Reputational Risk?

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by Stephanie Pennington, Director—Marketing & Sales Excellence, Main Street America Insurance •

Reprinted by Get Help With Insuerance, Inc.

It’s no secret that consumers want to spend their money with businesses they can trust. For that reason, your company’s reputation can be a huge factor in its success. In fact, a study published by O’Dwyer PR shows that 63% of a company’s market value is based on reputation.

When things are going well, your business’ reputation can lead to:

  • Greater opportunities
  • Increased profits
  • Interest from stronger, more qualified job candidates

However, small businesses face a number of reputational risks every day that can negatively impact day-to-day operations. That’s where your commercial insurance policies come in. Reputation insurance is a small but important part of your commercial insurance coverage. It can help protect your business from serious, long-term losses in the event of a crisis.

Reputational Risk Insurance

Business reputation insurance is a set of additional coverages that can be added on to your Business Owners Policy to boost your coverage and protect your business. These coverages include:

Business Owners Liability Insurance

Liability insurance is a basic coverage included in any commercial insurance policy. In most cases, liability insurance protects your business from bodily injury, personal injury, and property damage claims. But it also protects against reputational risks like lawsuits brought against your company for libel, slander, and advertising injury.

Cyber Insurance Coverage

In this day and age, cyber insurance is vital coverage for any business. In the event of a data breach or other cybersecurity threat, your cyber policy offers helpful resources to:

  • Minimize reputational fallout
  • Protect your customers’ sensitive data
  • Defend you in the event of a lawsuit

Crisis Management Insurance

Crisis insurance covers public relations services for businesses after a reputation crisis, such as a data breach or scandal. Once on board, the PR team can work to get ahead of the crisis, reducing its impact and protecting your business’ reputation.

Reputation Insurance

In some cases, businesses will even purchase specific coverage called reputation insurance. These policies protect against things like lost revenue in the aftermath of an incident. Insurance companies often reserve reputation insurance policies for large companies because they are difficult to underwrite and very expensive.

Common Business Reputation Risks

Most often, reputational harm comes from four types of risk:

Company Actions

These reputational risks are the direct result of your business’ actions and decisions, including:

  • Refusing to comply with state, local, and federal regulations
  • Bad business practices that result in security breaches or threats to your employee and customer data
  • Lawsuits, layoffs, bad working conditions, and other public scandals
  • Consistently providing poor quality products and customer service

Representative Actions

Your company representatives are those people who are directly connected to your business, like employees. These risks are often caused by engaging in bad or unethical business practices, like:

  • Employing leaders who have negative reputations or engage in unethical behavior
  • Employee misconduct scandals
  • Employees who represent your brand negatively or post negatively about your business online

Partner Actions

Your partners are those businesses that provide support and supplies to your company. It may not seem like the company responsible for your office supplies could risk your own business. But partners can create a number of reputational issues including:

  • Engaging in misconduct that causes a public scandal
  • Representing your business negatively to potential partners and customers
  • Experiencing interruptions that negatively affect your business, like software outages

External Actions

External actors are most often customers and former employees. This risk category can be especially tricky given their close proximity to your business and the potential for negative experiences. The risks brought by external actions include:

  • Negative online reviews or social media posts
  • Negative press coverage of your business
  • Cyberattacks and data breach

Assessing Your Reputational Risk

Reputational risk insurance is an important coverage for any small business to have. But we understand that it is an optional protection not every business owner will choose. When deciding if reputation insurance is right for your business, there are a few things to consider. For example:

  • Do you handle significant sensitive information for your employees or customers?
  • What is your company’s cyber risk and have you ever had a data breach before? For this, keep in mind that cyber threats aren’t just for large corporations. An increasing number of data breaches affect small businesses every year.
  • How many risks does your company face in its day-to-day operation? For example: customers, employees, social presence, media scrutiny, etc.

Risk Management

The good news is you can easily reduce your business’ reputational risk by being proactive. Here are a few ways you can protect your company reputation:

Frequently assess your risk — as your business grows and things change, take time to review your reputational risk and make any necessary changes to your operations.

Train your staff — ensure every member of your team knows how to operate ethically, protect your customers’ data, and provide high quality service every time.

Protect yourself and your company— invest in the right insurance coverages to protect your business, yourself, and your staff from the unexpected risks that come with doing business.

Talk to an independent agent today to evaluate your business’ reputational risk.

For local quotes contact our agency
Get Help With Insurance, Inc.
223 S Water Street, Suite B
Henderson, NV 89015
(702) 541-0882
(888) 258-0208, FAX
HELP@GETHELPWITHINSURANCE.NET
HTTPS://GETHELPWITHINSURANCE.NET

Does Business Insurance Cover Spoiled Food?

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by Jaime Wagoner , Regional Sales Director, Main Street America Insurance •

Reprinted from Main Street America Insurance

A business owners insurance policy is vital coverage for any small business owner to have. It can protect you, your business and your staff in the event of unexpected losses like property damage, injuries and even lawsuits.

According to data from the National Institutes of Health, a single incident of food-borne illness can cost restaurants upwards of $2 million in damages, legal fees and more. Fortunately, having food contamination insurance coverage can protect your business from devastating out of pocket costs.

What is Food Contamination Coverage?

As you can probably guess, food contamination coverage is a type of business coverage that helps restaurants and other food-based businesses:

  • Replace spoiled and contaminated food
  • Pay for required equipment cleaning
  • Recover lost income from business closure, and more

This includes perishable beverages, meat, dairy, produce and any other item that needs to be properly stored and cooked to maintain food safety. Because food that isn’t properly stored can lead to food-borne illness, it’s important that you throw any potentially spoiled food away.

Is Food Spoilage Coverage Included in my Policy?

Yes and no. Food spoilage coverage is not automatically included in a standard business owners policy. However, it is a simple add-on that you can have written into your business insurance policy for a small added cost.

An independent insurance agent can help you review your current policies and decide if food spoilage insurance is right for your business.

Common Causes of Food Contamination

Most often, covered losses from food spoilage come from power outages, equipment failure, and mishandling of perishable items.

Power Outages

Whether a storm knocks out power lines or an incident beyond your control damages your electrical wiring, a prolonged power outage can mean bad news for your business. If your food inventory is left too long without electricity or a backup generator, it can leave you vulnerable to food spoilage and contamination.

When this happens, the best thing you can do is operate with the assumption that your food cannot be salvaged. Getting reimbursement for food loss in power outages is easier than paying to manage an outbreak of food borne illness if you serve bad items.

Equipment Breakdown

Imagine the feeling of opening your business one morning to find that your walk-in freezer broke down overnight and all your food inventory is spoiled. It can happen to any food business. Fortunately, with the right coverage your insurance will pay to help you replace any lost inventory and get back to business.

Mishandling or Improper Storage

In some cases, food can be delivered to your restaurant contaminated with bacteria like E. coli or salmonella. Unless a recall is issued in time, you could accidentally cook and serve the spoiled food to customers, resulting in an outbreak of food-borne illness.

When this happens, your insurance policy will help pay to replace the food, clean your equipment, and protect your business from medical and legal expenses.

Filing a Food Spoilage Insurance Claim

Filing an insurance claim for food spoilage is simple! Just work with your agent to report the loss, and be ready to provide any necessary information like:

  • How the loss happened
  • How much food was lost
  • Purchase information for the spoiled items
  • Service policies on any affected equipment and dates they were last serviced

Keep in mind that for equipment coverage, insurance companies may require that you have a service policy in place and keep a regular maintenance schedule to ensure the policy will pay out.

Talk to an agent to learn more at

Commercial Property Insurance – Why do you need It?

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by Marcus Haynes, AVP, Regional Sales, Main Street America Insurance •

Reprinted by Get Help With Insurance, Inc.

Commercial property coverage, also called real-estate property insurance, is an important part of your small business coverage. It protects you from many of the risks that come with owning or renting a space for your company.

In many cases, landlords and mortgage lenders require commercial property insurance coverage. However, investing in a policy is a great choice either way. That way you can enjoy the peace of mind that comes with knowing your business is safe.

What is Covered Under Commercial Property Insurance?

A commercial property insurance policy protects your business from physical losses including:

Owned and Rented Buildings

Whether you’re using a storefront or an office, your commercial property coverage protects the building itself from fire, burglary, lightning, wind and more.

Furniture and Other Items

Many of the items inside your business, such as desks, chairs, lighting fixtures, and more, also have protection.

Supplies and Equipment

Your commercial property insurance policy also protects office supplies and equipment. This includes things like computers, registers, or anything else you need to do business.

Inventory

This is especially important for retail stores and similar businesses. In the event of a loss, your policy protects your business’ product inventory.

Coverage Examples

Now you’ve got a clearer idea of just how important business property insurance is for small businesses like yours.

Let’s look at a few examples of commercial property insurance in action:

Example 1

Imagine you have an overnight electrical fire in a clothing store. The fire damages portions of the building’s structure and destroys a lot of the merchandise you had in the stock room. Commercial property insurance will help repair the shop’s structure and replace that inventory. Your policy protects you from out-of-pocket expenses that could seriously hurt your business.

Example 2

Sally owns a doughnut shop in a popular downtown location. One night, a burglar breaks into Sally’s shop. The burglar damages the door frame on his way in and steals cash from the register. He then destroys a display case before leaving.

Because Sally has business property coverage, she can be back up and running in no time. Her policy will pay to repair the door, replace the display case, and even replace the stolen cash (subject to policy limits).

Factors to Consider with Business Property Insurance

Rising reports of natural disasters have had a significant impact on the insurance industry. In fact, experts suggest that the number of natural disasters is continuing to rise. And with it, the cost of many insurance policies.

Policy holders are feeling the heat, from homeowners insurance to commercial property coverage. Here are a few things to keep in mind when choosing a space for your business or searching for coverage:

The property’s location is an important factor that could mean you pay more or have limited coverage. This applies to buildings in areas at risk of wildfires, hurricanes and other severe weather.

Flood zone risk – if your business is in a high-risk location, it could affect your rates. Not to mention, you’d need to consider adding flood insurance to your coverage.

Your commercial policy does not include flood insurance. It’s only available through FEMA’s National Flood Insurance Program, but it can be a real lifesaver after a storm.

Building materials are another consideration, as they may increase or decrease your building’s fire risk. As you may have guessed, those that use fire-resistant materials are the better choice.

What you use your property for matters as well. Some businesses like restaurants are a higher risk to insure. However, insurance companies are likely to consider an office building as low risk.

Proactive protection is one of the simplest (and most important) things to consider. Being close to a fire station, having a fire suppression system, and a good security system can make a big impact.

Do I Need Commercial Property Insurance Coverage?

The simple answer is yes. Your building’s landlord or mortgage lender will often require proof of coverage before you can open your business. This includes coverages like general liability insurance and commercial property insurance.

The good news is Business Owners Policies often automatically include commercial property coverage. This makes it an easy policy to add to your portfolio.

Every business (and every location) comes with its own risk. For that reason, some businesses will be a better candidate for commercial property insurance. These include businesses that:

  • Own or rent a physical storefront/office
  • Are at risk of lawsuits as a result of day-to-day operation
  • Invite customers, clients or other visitors to the property
  • Want to reduce their risk and enjoy greater peace of mind

Common Questions About Commercial Property Insurance

Do I need commercial property insurance for a home business?

Home business owners don’t need to purchase a commercial policy because they aren’t renting or buying a space. However, it’s a good idea to contact an insurance agent to discuss your specific coverage needs.

Are there any policy exclusions?

Yes. Business property insurance does not cover:

  • Flood damage, for that you’ll need FEMA flood insurance
  • Business vehicles, you would need a commercial auto policy
  • Equipment breakdown. Though you can often add that as an extension coverage
  • Intentional or illegal acts

How can I lower my premiums?

Get proactive! Here are a few ideas for reducing your business’ risk:

  • Install smoke alarms and other fire suppression devices
  • Install a quality security system
  • Inspect and maintain your HVAC, plumbing and electrical systems
  • Train your employees on proper operations and safety precautions

Talk to a licensed insurance agent to learn more about how to protect your business with the right insurance policy.

Get Help With Insurance Inc
223 S Water Street, Suite B
Henderson, NV 89015
help@gethelpwithinsurance.net

Protecting Your Business: Understanding ERISA Bond Coverage

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by Richelle Smith, Director, Bonds Small Business, Main Street America Insurance •

As a business owner, it’s important to understand the insurance requirements that apply to your company as well as the various types of bonds your business may need.

One specific requirement is ERISA bond coverage, which is a type of insurance that protects employee benefit plans from fraud or dishonesty. If your company provides its employees with a pension or 401(k) plan, the IRS will require you have an ERISA Bond.

In this simple guide, we’ll delve into the fundamentals of ERISA bond coverage and why it’s important for your business.

What is ERISA Bond Coverage?

ERISA stands for the Employee Retirement Income Security Act, which is a federal law that sets standards for private employee benefit plans. This includes retirement and pension plans, health insurance plans, and other types of employee benefits. ERISA bond coverage is a kind of insurance that is necessary by law for all employee benefit plans under ERISA. It protects the plan from losses caused by fraud or dishonesty on the part of plan administrators.

Who Needs ERISA Bond Coverage?

  • ERISA bond coverage is mandatory for all employee benefit plans under the ERISA act.
  • This requirement applies to plans sponsored by private employers, government entities, and churches.
  • Anyone who is responsible for managing the funds or assets of an employee benefit plan must have a bond, unless they meet the criteria for exemption under ERISA.
  • The only exceptions are for plans that are fully funded by insurance contracts or solely funded by the employer.

What Does ERISA Insurance Coverage Protect Against?

ERISA bond coverage protects against losses caused by fraud or dishonesty on the part of plan officials or fiduciaries. Examples include:

  • Theft, embezzlement, larceny and forgery
  • Wrongful abstraction, wrongful conversion, willful misapplication, and other illegal acts
  • Errors or omissions

How Much Coverage is Required?

The amount of ERISA bond coverage required depends on the size of the plan. For plans with fewer than 100 participants, the minimum coverage required is $1,000. For plans with 100 or more participants, the minimum coverage required is 10% of the plan’s assets, up to a maximum of $500,000. Additional coverage may be required if the plan includes nonqualifying assets.

By understanding ERISA bond coverage requirements and ensuring that your employee benefit plan is properly covered, you can protect your business and your employees from financial losses.

If you need help getting ERISA bond coverage 

Get Help With Insurance, Inc.
223 S Water Street, Suite B
Henderson, NV 89015
(702) 541-0882, office call the office to leave a message
(888) 258-0208, fax
help@gethelpwithinsurance.net

Cyber Insurance – Is the claim First-Party vs Third-Party

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by Chris Cox, AVP, Regional Sales, Main Street America Insurance •

Reprinted by Get Help With Insurance, Inc..

When someone mentions a data breach, what kind of company do you think of? Likely, large retailers, banks or other companies dealing with the data of thousands or millions of customers are the first that come to mind. The reality is that nearly half of small businesses also experience cyberattacks.

According to Astra Security, a study revealed that nearly 43% of cyber attacks are on small businesses, yet just 17% of small businesses have cyber insurance.

Cyber insurance coverage is one of the best ways to protect yourself, your business and your customers. With the right cyber insurance policy in place, you can recover faster and protect your business from significant losses.

Common Cyber Security Risks

First, let’s talk about some common cybersecurity risks your business may face. Most often, these threats include:

Malware –malicious software designed to invade your network and steal data, including ransomware, trojans, spyware and more.

Phishing – when a cyber criminal reaches out by phone or email in an attempt to get victims to share personal information, usernames or passwords.

Spoofing – a technique where criminals spoof your business domain or email addresses to fool customers into giving them personal data.

Supply Chain Attacks – when criminals target third-party vendors your business works with through either software or hardware supply chain attacks.

Preventing Cyber Attacks

There are steps you can take to get proactive and try to prevent cybersecurity threats on your business, including:

Have a Plan
Don’t wait for a breach to happen to prepare your business for a cyber event. Instead, come up with a plan for how your staff will actively work to prevent breaches, how you’ll respond internally in the event of a cyber attack and how you’ll work with your customers to recover.

Enhance Your Security
Restrict access to sensitive data to only those who need it. Secure your systems with unique credentials for each employee and change passwords often. Conduct regular training with your staff on cyber security and risk prevention.

Review and Improve
Regularly review your security protocols and make changes when necessary to protect your staff and business. And don’t forget to keep software up to date with the latest updates and patches to avoid leaving your systems vulnerable to attack.

Review Your Insurance Policy
Your team should regularly review all commercial insurance policies to ensure you have the coverage you need and that premiums are up to date. While this won’t technically prevent a loss, it will help you avoid headaches in the event of a data breach.

Like many other things, understanding cybersecurity threats is key to protecting your business. Now, let’s talk insurance.

What is First-Party Cyber Insurance?

Simply put, first-party cyber insurance directly protects your business. With first-party cyber coverage, your business is protected from damages caused by a cyberattack that occurs on your network or systems.

As hard as we try, there is no way to 100% prevent a data breach, so you need to be prepared. Because first-party cyber coverage directly protects your business, it is a vital insurance policy for any small business to have.

In most cases, coverage includes:

•    Rebuilding your network or replacing technology after an attack
•    Restoring any data destroyed after malicious or accidental breaches
•    Recovering data loss after a natural disaster or other accident
•    Legal and public relations help to restore your business’ reputation
•    Reimbursement of income lost while your systems are down
•    Reimbursement of ransom payments made to cyber criminals

First-party cyber insurance can protect you from most of the cybersecurity threats your business will face and can help you get back up and running with minimum loss.

What is Third-Party Cyber Insurance?

The term third-party refers to the clients, partners, and vendors your business works with every day. Knowing this, the biggest difference with third-party cyber insurance coverage is that it’s designed to protect your business from actions taken by third parties after a breach.

Essentially, this coverage protects you by:

  • Paying legal fees, court costs and damages if a third party sues your business
  • Offering legal and public relations help to restore your business’ reputation
  • Paying judgments if your business is found liable for a data breach
  • Helping your business navigate and pay settlements outside of court

Data from Security Ventures show 60% of small companies go out of business within six months of a cyberattack. While this coverage won’t help you recover lost data or get your business up and running, it can save you from spending hundreds of thousands of dollars in unexpected legal fees after an incident.

What Isn’t Covered by Cyber Insurance?

As with any other insurance, first-party and third-party policies have exceptions and exclusions. No cyber insurance policy will protect you or your business from:

  • Intentional acts, like fraud or criminal conduct
  • Prior acts, meaning claims you knew about before your coverage began
  • Legal fees resulting from a criminal trial or grand jury proceedings
  • Business interruption if your systems are under the control of a third party

Choosing the Right Coverage

Now that you know what both first-party and third-party cyber insurance are, how do you know which coverages you need?

First, you need to evaluate your business risks. Take a close look at all your company’s vulnerabilities and data collection habits, so you know what type of coverage you’ll need. Start by reviewing the following:

  • The type of data you collect and store, including all sales, personal, and banking information
  • How susceptible your business and network are to threats. Are there gaps in your security?
  • What local, state, and federal regulations your business needs to comply with
  • What steps both you and any third parties you work with are taking to prevent a breach
  • How many breaches or near-breaches your business and any third parties have experienced before

From there, an independent insurance agent can help you look over your current policy, evaluate your risk and determine which coverages (and what level of coverage) your business needs to be fully protected.

To learn more about cyber insurance and get coverage, call Tel:702-541-0882.

Get Help With Insurance, Inc.
223 S Water Street, Suite B
Henderson, NV 89015
(702) 541-0882, office call the office to leave a message
(888) 258-0208, fax
help@gethelpwithinsurance.net

What Factors Impact Business Insurance Costs

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by Richard Vaughn , Head of Sales, Main Street America Insurance •

As a business owner, you know insurance is a necessary expense. Understanding the costs associated with business insurance and the factors that influence your policy, is a key part of a sustainable business plan. Certain factors are related directly to the type of business you run, while others correlate to the economy and the ever-changing world around us.

What Drives Business Insurance Costs?

  • Type of Business: The type of business you operate is a primary factor that affects insurance. For example, a construction company may have higher insurance costs than a consulting firm due to the higher risk of property damage and injuries on construction sites.
  • Business Size: The size and scale of a business also influence insurance costs. Generally, the larger the business, the higher premiums will be.
  • Location: Where a business is located can also impact insurance costs. For example, a business located in an area prone to natural events like hurricanes or earthquakes will likely have higher insurance costs than one located in a low-risk area.
  • Industry Regulations: Certain industries have specific regulations that require businesses to carry certain types of insurance coverage. For example, healthcare businesses are required to have malpractice insurance in many states, and trucking companies must have commercial auto insurance.

Why Is Business Insurance Going Up?

Insurance rates change over time, even without any changes to your policy itself. Factors like inflation, changing weather patterns and labor costs all play a part. Let’s dive deeper into what may cause rate increases:

  • Weather-Related Events: According to the NOAA, in 2023 the United States experienced 28 weather and climate events costing at least 1 billion dollars. That marks the fourth year in a row with 18 or more separate billion-dollar disaster events, indicating this could be the new normal.
  • Technology: Businesses are increasingly vulnerable to cyber threats and data breaches. Anne Neuberger, Deputy National Security Advisor, recently shared information predicting the annual average cost of cybercrime will exceed $23 trillion by 2027. Additionally, a study by Astra Security revealed that nearly 43% of cyber-attacks are on small businesses, yet just 17% of small businesses have cyber insurance. These factors can impact premiums for business owners.
  • Cost of Materials: The rising cost of construction materials has a direct impact on premiums. It’s reported that the cost of materials like wood, plastics, composites, plaster, and thermal protection will hit average increases of 6.5% through 2025.
  • Construction Labor: Contractors are facing labor shortages, supply chain issues, and overall higher costs, leading to an increase in the cost of labor. Rebuilding after a claim may not just cost more, but also take longer while they wait on materials and available workers, which can increase the cost to pay a claim.
  • Economic Conditions: Fluctuations in the economy also influence insurance premiums. While inflation slowed in 2023, a recent report indicated that consumer goods prices rose 3.4% annually to close out the year.

Ways to Manage Business Insurance Costs

Like so many other things in business, it’s important to be proactive. Let’s explore some ways to manage commercial insurance costs.

  • Bundle Your Policies: Many insurance companies offer discounts for bundling multiple policies, such as business owners’ policy, liability, and workers’ compensation insurance. Bundling policies can also make it easier and more efficient to manage your insurance coverage and premiums.
  • Implement Risk Management Plans: Avoiding an insurance claim is one of the best ways to keep insurance costs down. By doing things like conducting regular safety training for employees, properly maintaining property and equipment, and having a disaster recovery plan in place, you can help prevent a loss.
  • Pay in Full: Many insurance providers offer paid in full discounts to policy holders who make a single payment rather than breaking their premiums down into monthly installments. In some cases, you may receive a discount for setting up auto pay rather than manually making payments each month.
  • Review Your Coverage Regularly: Business insurance needs may change over time, so it’s essential to review coverage regularly. As your business evolves, you may need to increase your coverage limits or add new types of coverage to adequately protect your business. Alternatively, if your business downsizes or changes its operations, you may be able to reduce your coverage and lower your premiums.

Be sure to review your coverage with a licensed agent.

Get Help With Insurance, Inc.
223 S Water Street, Suite B
Henderson, NV 89015
(702) 541-0882, office call the office to leave a message
(888) 258-0208, fax
help@gethelpwithinsurance.net

What is Advertising Injury For Small Businesses?

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by Stephanie Pennington, Director—Marketing & Sales Excellence, Main Street America Insurance •

Reprinted by Get Help With Insurance Inc

As a small business owner, you may have heard the term “advertising injury” in relation to business liability insurance. But what exactly does it mean, and why is it important for your business?

Understanding Advertising Injury

Advertising injury is a type of harm that can occur because of your business’s advertising activities. This can include things like copyright infringement, defamation, or false advertising. For example, if your business uses a slogan or logo that is like another company’s, you could be sued for trademark infringement. Or, if you make false claims about your product or service in your advertising, you could be sued for false advertising. In today’s digital age, where businesses are constantly promoting themselves through various channels, the risk of advertising injury is higher than ever.

Coverage Under Business Liability Insurance
Business liability insurance, also known as general liability insurance, is a type of insurance that protects businesses from financial losses due to lawsuits or claims made against them. This can include claims of bodily injury, property damage, and yes, advertising injury. Most business liability insurance policies include coverage for advertising injury, but it’s important to review your policy to ensure that this is the case. If not, you may need to purchase additional coverage or a separate advertising injury policy.

Why Your Small Businesses Need Legal Protection
Small businesses can be particularly vulnerable to advertising injury claims because they often don’t have the resources or legal expertise to defend themselves against a lawsuit. This can result in significant financial losses and damage to your company reputation. Having legal protection in the form of business liability insurance can provide small businesses with the necessary resources to defend themselves in court. This can include coverage for legal fees, settlements, and judgments.

Types of Advertising Injury

There are several types of advertising injury that small businesses should be aware of:

  • Copyright Infringement: Copyright infringement occurs when a business uses someone else’s copyrighted material without permission. This can include images, videos, music, or written content. For example: if a small business uses a photo from a stock image website without purchasing the proper license, they could be sued for copyright infringement.
  • Trademark Infringement: Trademark infringement occurs when a business uses a name, logo, or slogan that is similar to another company’s, causing confusion among consumers. This can also include using a trademarked term in your advertising without permission. For example, if a small business uses a slogan that is similar to a well-known brand’s, they could be sued for trademark infringement.
  • Defamation: Defamation occurs when a business makes false or damaging statements about another person or business. This can include libel (written statements) or slander (spoken statements). For example, if a small business makes false claims about a competitor’s product or service in their advertising, they could be sued for defamation.
  • False Advertising: False advertising occurs when a business makes false or misleading claims about their product or service. This can include exaggerating the benefits of a product or making false claims about its effectiveness. For example, if a small business claims that their product can cure a certain illness without any scientific evidence to back it up, they could be sued for false advertising.

Protecting Your Business Against Advertising Injury

As a small business owner, there are several steps you can take to protect your business against advertising injury claims. These include:

  • Review Your Advertising Materials: Before publishing any advertising materials, it’s important to review them carefully to ensure that they do not infringe on any copyrights or trademarks, and that they do not contain any false or misleading claims.
  • Purchase Business Liability Insurance: Business liability insurance can provide crucial legal protection for small businesses. It’s important to review your policy and make sure that it includes coverage for advertising injury.
  • Consult with a Legal Professional: If you’re unsure about the legality of your advertising materials, it’s always best to consult with a legal professional. They can review your materials and provide guidance on how to avoid potential legal issues.

Real-World Examples of Advertising Injury Claims

According to a recent CBS News piece, there were a record number of food litigation lawsuits filed from 2020 to 2023. Another article in Business Insider cites 18 different businesses that were charged with false advertising claims. These stories serve as a reminder for businesses to be careful about the claims they make in their advertising and to ensure any claims you make are backed by truth and evidence.

By taking the necessary precautions and having legal protection in place, small businesses can avoid financial losses and damage to their reputation, allowing them to focus on growing and succeeding in their industry. Talk to tel:702-541-0882 insurance agent today to discuss the coverage options available for your business.

Get Help With Insurance, Inc.
223 S Water Street, Suite B
Henderson, NV 89015
(702) 541-0882, office call the office to leave a message
(888) 258-0208, fax
help@gethelpwithinsurance.net

Essential insurance claim information

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distracted-driving
Portrait of reckless driver talking her mobile phone while driving car.

interview-client-after-claim

As part of any initial investigation of the accident, the claims representative should always attempt to obtain a recorded statement from the claimant. It is obviously important as part of the initial determination of whether an insurance claim is compensable or not. It is also potentially invaluable later if the claim becomes subject to litigation.

The first step is to obtain and/or verify identifying information for the claimant, such as their physical description, address, names of other persons living in their residence, vehicles driven, hobbies and other items. Ideally, these details will be irrelevant. But if the insurer decides surveillance of the claimant is necessary to verify or dispute their claims, this information will be crucial. The investigator needs enough evidence to locate the claimant and distinguish them from other similar-looking individuals.

For example, we recently had a case where the claimant moved residences after he gave his recorded statement. The information we collected allowed us to provide the investigator with a detailed physical description of the claimant and the truck he drove. Once the investigator located the claimant’s new residence, he was able to easily identify the claimant. He then obtained footage of the claimant performing remodeling work on a house while simultaneously informing his treating physician he could barely walk, could not bend and could not lift anything due to extreme pain. The surveillance video showed just the opposite, and we were able to use that surveillance video when we met with the claimant’s treating physician.

Prior to that meeting (and the doctor’s viewing of the surveillance video), the claimant had been recommended for shoulder surgery and lumbar spine injections. Following that meeting, the doctor released the claimant to return to regular duty work with no restrictions, and we were able to successfully close out the claim for a nominal amount.

Additional pertinent details

It’s important to obtain other information including details about the claimant’s job duties, work history and other aspects of employment, followed by key facts about the alleged accident/injury.

Consider another case that involved a school employee. The employee stated in her recorded statement that she twisted her ankle because a student ran out of the classroom and bumped into her. We were lucky enough to have security video of the incident, which showed she tripped over her own feet with no student in the vicinity.

When we presented the video to the claimant’s attorney, he responded that the adjuster must have misheard or misunderstood the claimant, and she did not say she had been bumped by a student. Rather, the attorney said, his client turned her ankle slipping on something on the hallway floor.

We then provided him with the recorded statement of the claimant, in her own words, claiming she was bumped by a student. The claimant’s attorney withdrew and dismissed the claim the following day.

Medical concerns

A final portion of the recorded statement should address the claimant’s medical treatment following the alleged injury and any relevant prior medical history.

We frequently see important differences in the medical records regarding how the claimant explains the injury to doctors. While this can be good evidence at a hearing, the claimant can always explain that the doctor misunderstood what they said. If we have a recording of the claimant’s own words describing the accident, we have very good evidence for impeachment and other purposes at the hearing if the medical records differ from the recorded statement.

Although the items we ask about and record are intended to be exhaustive, there are certainly other questions that may be relevant depending on the circumstances. For example, if the employee is alleging an injury due to repetitive motion, it will be important to ask questions regarding any outside activities that could cause the same symptoms. The more detail that can be gathered up front, the better the claim can be defended at the outset and going forward.

What follows is the basic identifying information that should be verified during a claimant interviews:

Full name (prior names/maiden names/aliases

Date of birth

Social security

Current address

email address

Cell phone number

Height and weight

Hair color and eye color

right or left handed

wear glasses and/or contacts

take any medications on a regular basis

other health conditions

doctor’s name

relationship status

spouses name

name and ages of dependents and grown children

highest level of education completed

military experience

languages spoken

prior insurance claims

prior lawsuits

hobbies

driving ability

vehicles driven

The claim representative also should inquire about the claimant’s work history — especially in a workers’ comp case. These questions should address:

A detailed work history

job duties for each prior position

reasons for leaving each prior job

job title with the employer

date of hire

detailed description of current job duties

does this job require any special equipment (i.e. safety glasses, hearing protection, etc.)

name of supervisor(s)

full or part time

work shift/ hours/ regular schedule

hourly wage rate

average hours worked per week

how long in that position

prior positions / job duties for the employer

other jobs or sources of income at the time of the injury

Details related to how the accident/injury occurred; day of the week/time of day

were medications, drugs or alcohol consumed in the 24 hours prior to the accident

witnesses to accident/injury

any video of the accident/injury

photos of the scene of the accident

did you report the accident/injury to anyone and if so when, to whom, what exactly did you tell them and what did they say.

Ask the claimant to describe in detail all body parts injured;

What was not injured

did you continue working/finish your shift

Were you scheduled to work the next day

When was the first day you missed work?

When did you return to work

Have you been offered any light-duty or modified work, and if so, describe in detail the job offered.

It also will be essential to gather information about the claimant’s medical history and treatment. Ask questions such as:

When did you first see a medical provider following this injury?

What exactly did you tell them had happened to you?

What did the medical provider tell you about your condition/injury?

How did you choose the medical provider?

Why did you choose that provider?

Are you familiar with the employer’s posted panel of physicians?

Where is it posted?

Was the purpose and function of the posted panel explained during your initial employee orientation?

Did anyone show you a copy of the panel of physicians following your report of injury?

Who showed you the posted panel?

What did they say?

Detail all subsequent medical treatment received.

What treatment (physical therapy, etc.) testing or medication has been prescribed for you?

Who prescribed it?

What medications are you currently taking (including medications not related to your alleged injury?

Has any medical provider assigned work restrictions?

What are they?

Have you communicated those work restrictions to the employer?

Who exactly  did you talk to?

What did you tell them?

Have you seen any other medical providers since your injury?

Who is your primary care physician/family doctor?

What do they treat you for?

Any prior injuries to the body part(s) alleged to be injured in this claim?

All prior injuries

identify any prior medical providers

for each prior injury, provide a description of how you were injured, and the duration of medical treatment received and the identity of the medical providers.

…Did you undergo a pre-hire physical examination?

Did you complete a post-hire medical questionnaire?

If so, did you identify the prior injuries or medical conditions identified above

Describe your current symptoms in detail.

Is the pain mild, medium, or severe?

Is the pain constant or intermittent?

What activities aggravate or lessens your pain?

Describe a typical day for you since this injury?

Are there activities you could do prior to the incident that you are now unable to do?

Provide details.

Are you capable of performing routine household duties or yard work?

Do you have any work restricitions?

What do you feel are your physical restrictions?

Do you believe you are capable of performing your regular duty work?

If so, please explain what job duties you could perform.

Detail all communications you have had with the employer regarding your work status, your ability to return to work, and any other relevant communication with the employer.

Jim and Bonnie Grant

Get Help With Insurance, Inc.

223 S Water Street, Suite B

Henderson, NV 89015

(702) 541-0882

Jim Grant had 14 years experience managing the Homeowners Claims Team for Farmers Insurance in Las Vegas, NV. Prior to that he managed the Southern part of the State of Arizona in the Homeowners Claims Department. He started out in claims with Progressive insurance in Houston, TX. Jim is now an owner of Get Help With Insurance, Inc. Not many agencies have a prior state claims manager as part of their team. You’ll benefit from his experience if you are insured by our agency.

 

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