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 There are many things to analyze when contemplating whether or not to open your own business. One key item to keep in mind is the potential to be sued because of any inaction as the business owner. Listed below are some everyday potential liability risks that business owner’s can encounter:
- Operations Liability: The risk of injury based on the work practiced by the business.
- Premises Liability: The risk of visitors being injured or harmed while at a business location.
- Products Liability: The risk of products manufactured by a business causing harm or injury
- Injury to employees: There are laws in place that dictate the liability a business owner takes on when an employee is injured on the job.
- Management Liability: The risk directors and officers take on at a business by being held accountable based on the responsibility to those they attend to.
- Professional liability: Professionals such as lawyers and doctors, can have further legal responsibility placed on them.
Let us help you define your business’ risk exposure, as well as the specific coverages you will need, so you can breathe easy knowing you are properly covered.
Contact us today at 214-824-8888 to learn more about business insurance or to get a free Texas business insurance quote.
JG
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 As a contractor, you need protection against the potential liabilities you face in order to keep your business moving forward. You’ll need to remain in operation even after someone is hurt physically or financially.
Contractors aren’t the only individuals exposed to risk in a client/ contractor relationship though. When an individual hires a contractor, they also need protection. In this case, clients need protection against issues that arise due to the contractor’s inability to complete a job according to the client’s needs.
There are two different policies able to appease each of these needs: Bonding and Contractor’s Liability.
Contractor’s Liability Insurance
To protect your business against claims that can arise due to carelessness on a jobsite or an accident that happens with your equipment, then contractor’s liability insurance is a must-have for your insurance portfolio. As with any liability policy, contractor’s liability protects you against claims from clients or subcontractors who are hurt or otherwise adversely affected by the activities of your business.
Contractor’s liability has deductibles and limits which have their own parameters of what is and isn’t covered. When you take out a policy, be sure to address any specific challenges that your business faces that expose you to liabilities you wish to have covered.
Bonding
A bond is a guarantee by a third party that you, as a contractor, will complete the work that has been asked of you. It also guarantees you will pay for all supplies you order and you will produce quality work for your clients. As a bonded contractor, you have paid a company to award financial compensation to a client if you walk off their job without meeting any of the previously mentioned expectations.
When you are a professional contractor, you always want to work in a professional manner. For clients, it can be difficult to tell the difference between a professional contractor who takes their work seriously and one who isn’t qualified for the work they need. One of the easiest ways to show clients you respect their time and money is to have yourself bonded and covered by a liability insurance policy.
If you are considering bonding your employees and subcontractors, give us a call at (214) 824-8888 and we can discuss the many bond options and protocols with you.
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 As a business owner, it is in your best interest to hire the most experienced, qualified, and careful candidates to work for you. Without a crystal ball, or other future divining device, it’s impossible to know just how trustworthy your new employee is.
Trustworthiness isn’t just about protecting your clients from theft. It may be about the employee accurately representing his or her experience and ability when dealing with a complicated task.
Having your employees bonded is one way to ensure that they are trustworthy and you will not be responsible for paying damages if it turns out they aren’t.
Fidelity Bonds
Any business with employees that have access to customer property should have fidelity bonds for their employees. In addition, if your employees have access to your company’s accounts, equipment and other assets, bonding may protect you in the event they steal.
Subcontractor Bonds
As a contractor, you may not have employees in the traditional sense. You are, however, responsible for ensuring that subcontractors meet contractual obligations to your clients. In order to protect against the risk of a subcontractor being unable to complete the work on schedule, or up to the standards established in the contract, you should get a performance bond on the subcontractor.
Interestingly, even the process of getting an employee or subcontractor bonded can help you determine whether or not they will be a good fit for the job in question. Surety companies complete intense background screenings before they decide to bond someone. If they fail to issue the bond, this is a big red flag that you might not want the individual in question to become a part of your business.
If you are considering bonding your employees and subcontractors, give us a call at (214) 824-8888 and we can discuss the many bond options and protocols with you.
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 There are three things you have to do as a business owner, every year without fail, to have a successful enterprise. The first thing you need to do is to make sure you create or revise your business plan and financial projections. Next, you need to develop or create your marketing plan. The third thing that should be done is to pay your insurance premiums.
But paying your insurance premiums annually should not be a knee jerk activity because before you make those payments you should review your insurance policies and make sure the coverages they offer are still relevant to your ever-evolving company.
Because you are involved in the day-to-day activity in your business, you may not realize all the small changes that can occur which will affect your insurance policies. One of the most overlooked changes is the addition of new equipment which has been purchased for the business. Whether you upgrade your existing equipment and supplies or add completely new items to the roster, you need to notify your insurance company of these changes. It is possible that your existing policy does not offer sufficient coverage for the new equipment and that your limits or exclusions need to be adjusted. In addition, you need to find out if you are being reimbursed for actual cash value or replacement value. When you have hard-to-replace equipment, an ‘actual cash value’ reimbursement may not be enough to make you whole and help you replace the equipment if it is damaged or stolen.
Business owners should also consider any changes that have been made to the vehicles used for their business. If a new vehicle has been purchased for the business, you may need to increase the limits on your policy in order to protect its value fully. Conversely, if your company vehicle has lost value during the year, you may want to lower your auto policy limit in order to accommodate its reduced value. This will also reduce your premium—usually a very welcome concept to business owners.
Another consideration you should make when evaluating your business insurance each year is the addition of coverage for any new business ventures that have developed. Just because you have liability, auto and other relevant insurance coverage for your main business venture, that doesn’t mean that all other business ventures you enter into are adequately covered. New lines of business could pose increased risk to the insurer and may even have certain facets that need additional endorsements for your policy.
So before you write your policy premium checks each year, take a look at your policies and note whether or not there have been any staffing, equipment, or process changes that would affect any of them. After all, an insurance policy can only offer effective protection when the insurance company actually knows what it is that needs protecting.
Contact us today at 214-824-8888 to learn more about business insurance or to get a free Texas business insurance quote.
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Surety Bonds
A surety bond is a promise to pay one party (the obligee) a certain amount if a second party (the principal) fails to meet some obligation, such as fulfilling the terms of a contract. The surety bond protects the obligee against losses resulting from the principal's failure to meet the obligation. There are three different surety bond categories: Commercial, Contract, & Court. Each category is underwritten differently and as such, requires different questions of you, the applicant.
Each of the categories have a list of specific bond types that fall under them. For instance, the most common bond types for commercial bonds are license & permit bonds, while bid & performance bonds are the most common contract bond types.
- Commercial Bonds
Commercial surety bonds, sometimes referred to as "non-contract bonds", come in a wide variety of specialties for a wide variety of company sizes. They are generally required by law, and are most frequently used for business owners who must be bonded to satisfy both local and state guidelines. Most business owners cannot even obtain a business license without first having at least one bond in their possession.
- Contract Bonds
Contract surety bonds are comprised of several bond types that cover a construction project from start to finish. This help guarantee a contractor will perform accordingly and provides financial security for a project owner that a contractor will not only perform the work, but pay subcontractors, laborers and suppliers. These are useful regardless if you need a single bond to get your project started or multiple bonds to secure a new project.
- Court Bonds
Court surety bonds, also known as judicial bonds, are often required in court proceedings to ensure that one is protected from possible loss as a result of the outcome of the proceeding. This guarantees that all parties are protected from financial loss and will receive whatever payment ffis due, as well as guarantee that finances are properly managed following the death of another individual. In these cases, an executor or probate bond are utilized to protect an estate’s assets.
Texas
Texas is the second-largest U.S. state by both area and population, and the largest state in the contiguous United States. The name, meaning "friends" or "allies" in Caddo, was applied by the Spanish to the Caddo themselves and to the region of their settlement in East Texas. Located in the South Central United States, Texas is bordered by Mexico to the south, New Mexico to the west, Oklahoma to the north, Arkansas to the northeast, and Louisiana to the east. Texas has an area of 268,820 square miles, and a growing population of 25.1 million residents.
Houston is the largest city in Texas and the fourth-largest in the United States, while San Antonio is the second largest in the state and seventh largest in the United States. Dallas–Fort Worth and Greater Houston are the fourth and sixth largest United States metropolitan areas, respectively. Other major cities include El Paso and Austin—the state capital. Texas is nicknamed the Lone Star State to signify Texas as an independent republic and as a reminder of the state's struggle for independence from Mexico. The "Lone Star" can be found on the Texas State Flag and on the Texas State Seal today.
(Source: Wikipedia.org)
If you can Wreck it, Burn it, or a Tornado can Knock it down —We can insure it for you. Call us today for a free Texas Surety Bond request at (214) 824-8888
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