Whether your business makes and distributes a product or operates as a distributor for another company’s product, your advisor at CAL will help you establish an insurance program that suits your needs and budget. In addition, our employee benefits team can be brought in to consult on leveraging HR technologies while also meeting the important objectives you have for your employees and their families.
Workers’ compensation coverage is mandatory, and proper safety and claim management of the program is essential. As coverage benefits differ from state to state based on state labor laws, it is important to inform your advisor before hiring someone in a new state. New York, in particular, has severe fines for having employees without work comp coverage in place or added to the current policy.
Commercial property insurance protects your business’s physical assets from fire, explosions, ruptured pipes, storms, theft and vandalism. Earthquakes and floods typically aren’t covered by commercial property insurance but can be sourced through different insurance markets. The policy may also include coverage for business income/interruption as well as employee dishonesty.
General Liability is the starting point for allegations of bodily injury and property damage suffered by a third party arising out of premises, operations, products, and completed operations; and advertising and personal injury liability. This line of coverage will almost always be requested in lease(s) and contracts.
When entering a contract that requires higher liability limits or to protect additional assets, an excess liability/umbrella policy is recommended. The coverage typically exceeds the limits of general and auto liability as well as employer liability, a part of a workers’ compensation policy.
A manufacturer or distributor should consider this coverage if there are outside investors. Each D&O policy should have three sides of protection: One side for the directors and officers not indemnified by the entity, one for the directors and officers indemnified by the entity, and one for the entity itself.
Employment Practice Liability can stand alone or be added to a D&O program. This coverage protects the entity from allegations of wrongful termination, harassment (including sexual harassment) and discrimination. The limit should provide coverage for defense costs as well as any settlement or judgment, when allowable by the policy.
Like EPLI, Fiduciary Liability can stand alone or be added to the D&O program. This protects the fiduciary(ies) of the organization from allegations of mishandling the company’s retirement plan(s). The policy covers the legal expenses of defending against the claim, as well as the financial losses the plan may have incurred due to errors, omissions, or breach of fiduciary duty.
Does the food or beverage product you produce contain cannabis? If so, insurance coverage will likely fall outside the traditional insurance marketplace for the time being. CAL can advise clients who have this unique exposure on the proper insurance solutions to appropriately address the risks.
Manufacturer E&O is professional liability insurance that protects against lawsuits or claims of negligence, error or omission that results in a third-party financial loss without bodily injury or property damage. Manufacturers E&O insurance will cover both the customer’s financial loss and your legal costs.
Cyber insurance should have coverage for both first and third party exposures. A robust program will also include cyber crime coverage. Limited cyber coverage can be embedded within a property, general or professional liability policy, which may or may not be the right solution. Your CAL advisor will know more on which platform is most appropriate.
Your operations likely include the need for company vehicles. Liability does not just stop at the owned vehicles of the organization but also is a concern when employees are driving their own vehicles on the company’s behalf. Coverage to protect the company owned vehicles in case of theft or damage is referred to as “comprehensive” and “collision” coverage, and both should be added in most cases.
