Risk Management: What you Need to Know About Your Insurance Policies Posted June 8 2016 by Sandra Heminger Business Insurance In many cases, business owners and decision makers see insurance as something they need only because a law makes it mandatory for them to remain in business. However, that couldn’t be further from the truth. Insurance is here to protect your business, it’s employees, the equipment, etc. We have also found that some aren’t aware what insurance is protecting them from, and don’t know what their exposures are. While recognizing certain buzzwords such as general liability, and workers’ compensation is great, we want people to understand why they have to have these insurance policies. After all, accidents happen, but there is no need for an accident to ruin your business. Workers’ CompensationA workers’ compensation insurance policy provides wages, medical treatment, disability, and if necessary a death benefit to employees who are injured on the job. While workers’ comp makes up a large portion of many businesses expenses, it is necessary because without it, businesses would liable for any injuries an employee experiences while working. It also protects the business from any lawsuits that could be filed by the injured employee.General LiabilityCommercial general liability policies protect businesses in a lot of ways. Typically, it provides coverage for bodily injury, property damage, and personal and advertising injury which protects the insured from slander and false advertising. General liability may also cover fire damage that is caused by the negligence of the insured. Marine General LiabilityMarine general liability policies are similar to general liability policies except they are designed specifically for those who work at sea, as general liability insurance will not cover those who work near or on the water. These policies include coverage for marine contractors and others who work on or near water. Professional Liability (PLI or E&O)Professional liability insurance, also known as errors and omissions (E&O), will cover your business if you provide advice, or provide a service. It will protect you against negligent claims and damages that are awarded from a lawsuit.Employment Practices Liability Insurance (EPLI)Employment practices liability insurance protects your business against claims made by your employees. It can protect you from claims alleging discrimination based on sex, race, age, or disability. It can also protect you from claims alleging wrongful termination, harassment, and many other employment-related issues.United States Longshore and Harbor Workers’ Compensation Act (US L&H)Thanks to the United States Longshore and Harbor Workers’ Compensation Act (LHWCA also known as USL&H), those who work in the maritime industry and fall into certain categories, will have coverage backed by the federal government, not just the state. The law ensures that workers’ comp benefits are provided to those who work in the maritime industry, which will protect your business from any lawsuits associated with a workplace injury.Maritime Employers Liability (MEL)This policy generally covers employees who are working onboard a vessel, whether owned by the company they work for or as a contractor. Think of workers’ compensation insurance for those who work at sea.Having the necessary insurance policies isn’t all you should be doing to protect yourself. Practicing good risk management also includes taking precautions around your workplace to make it as safe as possible. Read our previous blog, “10 Tips on Creating a Safe Work Environment”, for help in deciding what steps you should take in order to further protect you and your employees. If you have any questions, or are interested in purchasing workers’ compensation insurance, USL&H or other types of business insurance, or group health insurance for your employees, please contact us at954-828-1819 or visit us online at mhginsurance.com. Our insurance specialists have the knowledge and experience to cover your company’s risks appropriately.