Social Media Mayhem: How Liability Insurance Protects Your Business

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In today’s digitally driven world, social media is an essential marketing platform for most businesses. It’s also a rather unruly place with the potential to create serious liability headaches for you as a business owner.

Since social media and digital business aren’t going anywhere, the best course of action to avoid stress and potential lawsuits, is to protect yourself against threat well before it ever becomes a problem.

Let’s look at how digital business activity and social media contribute to online business risk and potential liability.

Defamation & False Advertising

Some of the biggest risks businesses face with regards to social media posts are defamation and false advertising risks.

Defamation

Defamation occurs when a false statement about another party is made that damages that party’s reputation.

Two kinds of defamation are slander and libel.

Slander is when the statement is oral and libel is when the statement is written, and both are types of defamation.

False Advertising

False advertising occurs when misleading, unproven or untrue information is used in the promotion of products or services to consumers.

For example:

Say you post a new vitamin supplement from your health food store on social media claiming it will turn any normal person into a wildebeest in 10 days or less. Working under the assumption that this would not be possible with any type of vitamin supplement, that would make your statement false advertising.

 

 

Or…

Another way false advertising presents itself is in exclusivity claims. If your business  claims to have the “one-and-only” product or service of some kind, but in actuality, sell the same service or product as even one of your competitors, that’s false advertising.

In the United States, businesses accused of slander, libel and/or false advertising may be sued by the affected party(ies). These lawsuits often result in costly legal fees, not to mention any settlements or judgements that might have to be paid.

So how do you protect yourself against these marketing and advertising risks?

General Liability Protection for Marketing & Advertising

Because many businesses face these risks, General Liability Insurance (GL) policies have long provided protection against most slander, libel and false advertising lawsuits. For years, general liability provided all the protection typically businesses needed against these risks.

The advent of the internet in general, and social media in particular, have increased these risks for many businesses. Not only are there new platforms where businesses might publish something that’s defamatory or false, businesses are also publishing statements at a faster rate than they were before, increasing risk by way of frequency.

As a result, new risk has emerged, which may not be covered under the fine print of every General Liability policy. Since not all GL policies have been updated to adequately cover all of today’s digital risks, some businesses opt to include additional liability coverage to bridge the gap.

Protecting with Additional Liability Coverage

While some General Liability policies have incorporated adequate digital protections into their terms and conditions, other types of coverage have emerged to help provide specific coverage for digital activities that but businesses at risk.

To help protect against new and increased risks presented by online activities and social media, insurance companies often offer cyber liability, media liability, and umbrella policies to cover the extra innate risk faced by some business industries.

As an added benefit, some new insurance products that offer added liability protections for social media activity frequently go beyond just defamation and false advertising.

In many cases, policies that focus specifically on protecting your online activities often cover:

  • Online copyright infringement, which occurs when a copyrighted image is published online without permission
  • Breaches of contract, which occurs when an agreed-upon contract is violated
  • Invasions of privacy, which occurs when photos of people are published without the necessary releases

Finding Social Medial Liability Protection for Your Business

Not every business needs more than just General Liability to cover their online activities. But the best way to make sure you don’t have holes in your coverage making you vulnerable, is simply to give your agent a call, and ask. Prepare to avoid risk so you can focus more energy on the important task of building your empire, and worry less about the liability what-ifs lurking in the digitally driven day-to-day of modern business.

How to Reduce the Cost of Your Small Business Insurance

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Every small business faces the same challenge—you know you need insurance for the big “what-ifs,” but struggle with the increase overhead that doesn’t directly lead to an increase in your bottom line.

For most business owners, it isn’t worth the risk to go without insurance, so they employ other ways of saving money: by minimizing the cost of their business insurance policies.

Here are several ways our clients at Citizens General have been able to reduce the cost of their insurance premiums, without sacrificing the important coverage they need to protect their business.

Increase Coverage Deductibles

Deductibles are the amounts your business pays before an insurance policy will begin paying on a covered claim, and increasing them can greatly reduce your overall premiums. By taking on a little more risk in the form of a higher deductible, your business lowers the likelihood of filing a small claim. In return, the insurer’s risk — and the premiums they need to charge — are lowered.

This strategy isn’t right for every business, particularly those with limited funds who can’t cover a larger deductible if push comes to shove. But for those with the cushion to afford it, raising the deductible only increases risk by a defined amount, and the corresponding premium decreases are usually substantial.

Take Advantage of Discount Programs

Just as insurance companies offer discount programs on personal policies, many also offer discounts on commercial policies. The available discounts vary depending on policy, but there are typically several your business might qualify for.

Everything from employing only drivers who have commercial licenses, to paying premiums in full may net you significant savings on the cost of coverage.

What’s the fastest way to find discounts? Ask your agent!

A quick call or email will get you dialed in on all the possible savings, and back to work quickly.

Employ Risk-Mitigation Practices and Devices

Insurance cost is directly related to the level of risk your business faces. In some cases, you may qualify for reduced premiums by instituting risk-mitigation practices and/or devices that lower the likelihood of a claim.

For example, your business might be able to lower premiums in exchange for:

  • Using high-quality personal safety equipment
  • Installing monitored security surveillance systems
  • Conducting employee safety training seminars

Even something like upgrading to ergonomically designed desks might qualify for a workers compensation discount, because ergonomic equipment reduces the risk of job-related injury (which workers compensation covers).

A number of carriers, such as The Hartford, have a built-in margin to their standard pricing to allow for discounting. Have low employee turnover, or a low manager-to-employee ratio? Is your business a drug-free workplace? Do you have a limited claims history?

The fastest way to find out which discounts you might qualify for is to delegate the investigating to your insurance agent, who can quickly find out where your most valuable and immediate insurance savings might be hiding.

Keep a Clean Claims Record

Speaking of claims, keeping a clean claims record is a great way to keep your insurance premiums as low as possible. Obviously insurance is there if you need it, but having an insurance record without claims or limited claims let’s the carriers know your business is a good risk for them to take on.

If your business has a history of periodic claims, a carrier will need to factor this risk into their pricing model to make sure the premium makes sense should a claim arise. Higher risk = higher premium.

By enacting business practices to internally reduce the risk of a claim, you’re more likely to keep crystal-clear claim report which keeps your premium toward the lower end of your risk spectrum.

Bundle Coverage with a BOP

One of the most effective ways to reduce your business’ insurance premiums is to bundle coverage with a Business Owner Policy (BOP).

A business owners policy is a package policy that combines foundational coverage together. Most policies come with three primary coverages, with others possibly being offered as options. The three primary coverages are :

  • General Liability Coverage, to cover common accidents and advertising claims
  • Commercial Property Coverage, to cover a business’ physical and personal property
  • Business Interruption Insurance, to cover certain extended losses in revenue

Other coverage may be offered if needed, which might include cyber liability insurance, commercial auto insurance, employers liability insurance.

To find out which policies your BOP would need to include, you’ll save time by going directly to your agent or broker, who can quickly assess your situation, and find your insurance sweet spot for maximum savings and coverage.

Ask Your Agent for Help

Your agent or broker works with insurance products all day, and also sees other clients win and lose in business. They’re in a unique position to advise you on which policies and protections you can reasonably skimp on, and which ones will be crucial to the safety of your business.

To make sure your business has the right coverage for its specific situation, utilize the assistance of a knowledgeable insurance agent or broker. A professional who has worked with other businesses will not only know what risks yours might face, they’ll be able to help you avoid duplicate coverage, and protect against gaps in the fine print that could leave you vulnerable to liability.

Paying insurance is never fun, but mitigating the risk makes sure that if something does go wrong, you’ll be able to see another day. Talk with one of our agents today to make sure what you’re keeping your costs as low as possible, get a free online quote in minutes through The Hartford to compare your rates online.

Freelancing Isn’t Free: Protecting Yourself in a Gig Economy

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Throwing off the chains of the traditional 9-5 in favor of freelancing freedom is a popular dream these days. And thanks to a modern connected economy, remote work and virtual meetings are the norm, making it easier for more people to find their stride as a free agent.

This independent career choice brings with it the freedom to make your mark as well as your living. But, as any seasoned freelancer will tell you—freelancing is far from free.

Freedom and independence as your own boss balances itself with challenge and risk.

While you trade structure for freedom, and reliance for independent choice, you also assume liability, and become vulnerable without the safety net of your employer’s insurance policies and legal accountability for your actions.

The trade isn’t always pretty for those who are not prepared to face the reality that their side hustle or paid passion project is truly a business—which comes with the responsibility of treating it like one.

If you want to keep enjoying your professional freedom…

Here are 3 simple ways to insulate yourself against liability as a freelancer, and protect your future as an independent business person.

1. Create a Legal Business Structure

Whether you realize it or not, your freelance work counts as a business. You’re a sole proprietor, by default, the moment you earn enough money to require reporting it to the IRS.

The problem with being a sole proprietor, is the liability. Your personal assets become fair game, should any unhappy client decide to sue you.

Creating a legal entity draws a clear line between your personal and business life on paper, protecting your personal assets in the event you’re sued for something work related.

Small business owners have many options when it comes to converting from a sometimes-1099 contract worker to a legit business owner with something to protect. LLCs, S-corps, C-corps, and more. Just a quick search online will provide lots of articles on how best to structure your freelance business, and the IRS website has details on the tax implications and registration requirements for each type of business. Of course, a chat with your tax accountant or attorney is always a safe place to start too.

2. Purchase Small Business Insurance

Now that you have a formal business, it’s time to protect it. Before you even consider taking on a client, or doing uninsured work that could come back to haunt you, take control of your risk and reduce your liability with an insurance policy.

Small business insurance isn’t typically expensive, and in most cases, you can get a policy in place quickly online by answering a few questions about your industry and business structure.

Depending on what sort of work you do, you’ll likely be considering a combination of the following coverages:

Often, a Business Owner Policy (BOP) is available for you to purchase, which packages all the coverage you need in a tidy package, minimizing the cost of buying each policy individually.

An insurance broker who specializes in freelancer insurance policies can help you determine what coverages are right given your situation, and they’ll know what the best way to procure those coverages is.

3. Always Use Contracts

Nobody likes lengthy, wordy, legalese contract jargon, but it’s the stuff of sweet dreams and comforting reassurance if you find yourself with a nightmare client on your hands.

Many veteran freelancers swear by contracts, and for good reason. They protect both you and the client/customer by outlining exactly what services will be provided and what will be paid.

A professionally written contract for your services not only makes you appear more professional, it is a deterrent to would-be problem clients, who will be less likely to cause trouble if they’ve entered into the relationship with clear terms in place.

Should you ever find yourself up against a project with a bad-apple client, you’ll have a written contract in hand to help you quickly resolve any issues. Typically, a problem client will back down from an argument quickly when they come face-to-face with the agreed upon terms written in black and white.

You might already be using contracts if you work on a third-party platform, such as Fiverr or Upwork, which automatically provide built-in guidelines and rules as part of their service fee. If not, you’ll need to devise your own from scratch. Legalzoom offers affordable contract solutions for freelancers who want extra assurance.

Freelancing is a great way to experience professional freedom, and make a great living while you’re at it.

But remember:

The more business success you experience, the more you’ll have to lose. Take a moment and consider what you’ve got at stake, then get to work putting these three steps into action so you can ensure your continued status as an independent and free agent.

The Most Important Types of Insurance for CA Small Business

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Risk is part of the territory as a small business owner. This is true for every business, and specifically for those operating in California.

All states face their share of risk, for sure. But as we’ve recently seen with the California wildfires that devastated so many homes and businesses, some states face unique challenges when it comes to business preservation and risk management.

Take your pick from any of the looming disasters waiting to pounce—fires, floods, earthquakes, and even frequent auto accidents on our busy west coast highways…it can seem like there’s a catastrophe around every turn.

The truth is there are dangers and risks in every state, you just have to know which ones are most important to guard against in yours.

Proper risk management can be a life saver—not just a business saver—should you ever find yourself in the crosshairs of sudden disaster.

So how do you prepare for the worst?

It won’t come as a surprise that we’re going to recommend some insurance for your business. We are in the business of helping people protect their business, after all. What’ special about these recommendations is that they’re specifically relevant to California business owners.

Here’s the deal:

Why do small businesses need to worry about this more than big businesses?

It’s all about resources. Small businesses tend to run on a smaller budget, don’t have a big team of risk management pros backing up their decision making, and probably don’t have a million dollar credit line at the bank to get them through a rough patch.

You’ve got more at risk.

Determining the most important coverage for you as a California business owner is vital in protecting your future.

Think your shop or lemonade stand is too small to worry about insurance?

Think again.

Who Needs to Worry About Small Business Insurance in California?

If you own a business with less than 100 employees that grosses less than $5 million annually, you’re a small business owner.

Freelancers and independent contractors? You’re in the mix too.

In fact, freelancers and home based businesses might have even more at risk than your typical brick and mortar establishment. Your personal assets may be on the line, and counting on your homeowners insurance to cover you professionally could be a tragic error in judgement.

If you work for yourself, you need to worry about the risks associated with being in business.

Must-Have Insurance Lines for California Businesses

While every small business is different, each should have minimum basic coverage as the foundation of their loss protection coverage.

Here are the basics…the bare minimum…the core insurance you must carry if you’re a business owner operating in CA.

General Liability

This covers the business for any claims that occur against the business or its employees while conducting business activities. It could include everything from slip and fall claims to false advertising claims. General liability serves as a blanket in liability claims and will cover the legal costs associated with such claims and even the costs of any settlements.

Going back to the home-based business owners—don’t count on your homeowners insurance to cover the delivery guy who breaks his ankle tripping over the garden hose strewn across your front walkway…it’ll more likely be your business’s general liability policy that protect your personal assets in that unfortunate scenario.

Property Insurance

This covers any property owned by the insured for conducting business including structures and contents. Its coverage can extend to inventory, raw materials, machinery, and computers and electronics.

Imagine a fire sweeps through your area and takes out your warehouse, or even destroys your car, which had your computer in it?

Or imagine, instead, the fire takes your office, which was attached to your showroom floor, and adjacent to your manufacturing facility. Your office furniture, electronics, machinery, inventory, and facility are gone.

Now what?

Business Interruption Insurance

Pay close attention, because this one is not something most businesses consider.

Business interruption insurance: what is it?

This insurance covers your business in the event you can’t do business. It’s not to protect you from lawsuits or replace damaged equipment. It’s to cover you financially and replace the income you’d lose if you couldn’t conduct business for a period of time.

The recent fires in California are still a raw wound in our state, and highlight a sad reality—a lot of people have lost their businesses, homes, and possessions, and many face a huge income gap until they can get up and running again.

If your business was destroyed and you didn’t have business interruption insurance, how would you earn your living?

Home based businesses fall through the cracks in this category, because often self-employed individuals or freelancers don’t consider that their home is their office, and often, their personal computer is their lifeline to business operations.

The recent fires in California are a reminder of how critical this type of coverage can be. It can take weeks or months for businesses to file claims and restart their businesses following such a disaster. Business interruption insurance makes up for lost income during this period.

Is That it?

A simple Business Owner Policy (BOP) will cover most businesses to a fair degree, but other insurance lines exist to cover the extras, like cyber risk, or having employees on your payroll.

All of this can be bundled together and doesn’t break the bank…especially when you compare the cost to what might be lost if your business were to experience an unexpected loss.

Should Small Business Owners Be Scared?

No.

Not if they’ve got coverage.

We aren’t in the scare tactic business, and certainly aren’t sending the message that every business is going to face an actual disaster, but it’s hard to ignore the real pain and suffering seen so close to home by so many small businesses in our state over the past few years.

The truth is this:

We don’t have a crystal ball—and neither do you. That’s why every small business (and by the way, we’re a small business too:) should be adequately insured; we just don’t know what’s coming.

Expensive Mistakes Small Businesses Make When Hiring Employees

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When you run a small business, having the right team in place can mean the difference between success and failure. But when budgets are lean and there isn’t a big HR department to lean on for best practices, expensive hiring mistakes are often made.

Errors in the hiring process can cost a company big. From compromising your hard earned reputation and sullying company culture, to major lawsuits with the potential to bankrupt your business, hiring mistakes have the potential to cause major problems for you as a small business owner.

Know these common mistakes and how to avoid them, and you’ll have a fighting chance of putting together your dream team without much hassle.

Misclassification of Employees

Employees are treated differently than independent contractors, so it‘s critical you know which one you’re dealing with. There are serious implications for accidentally (or purposely) treating an employee as an independent contractor, including penalties, fines, and other costly tax-related consequences.

The Fair Labor Standards Act determines what makes a person an employee or not, and understanding the difference will help you withhold the right taxes, stay in compliance with overtime pay regulations, and keep your business running smoothly.

If your HR department consists of just you, and you’re too busy running your day-to-day operations to become an employment law expert, consider outsourcing the task to a service that can help you stay in compliance with the laws around classifying employees. There are tons of great companies designed for this specific purpose, and help small businesses manage HR without the oversight of a dedicated in-house professional.

Failure to Carry Workers Compensation Coverage

As tempting as it might forgo certain types of small business insurance to save a few bucks, those few dollars you might save won’t be worth the massive cost later if you get busted for not carrying workers’ comp insurance. Worker’s compensation is required in most states as soon as you have even one employee.

This small business insurance product is designed to help cover lost wages and medical expenses if an employee is injured or becomes very ill. It‘s not only smart to have a lifeline that protects your staff from being buried in debt, it’s a must-have if your state requires it.

It doesn‘t take long to get covered and isn‘t nearly as expensive as being caught without it. So, if you think you might hire even a single employee in the foreseeable future, look for affordable workers’ comp insurance and get compliant ASAP.

Not Preparing for Turnover & Onboarding Costs

High turnover rates and onboarding costs can be a nightmare for any business, but have a tendency to hit small businesses especially hard. Knowing what it will cost to bring a new employee on (in terms of training, benefits, etc.) and estimating costs of losing an employee can help you keep some cushion between you and the cost of having employees.

keep in mind that these costs will change as your business grows—so you’ll want to revisit them frequently as needed.

Ignoring the Importance of Culture Fit

An applicant may seem like the “ideal” candidate for the job on-paper, but if he or she doesn’t fit neatly into the culture you’ve been honing for your business, the relationship isn’t likely to work out long-term.

You may end up needing to find a replacement, which will slow down operations and cost you money in onboarding. Even worse, an employee who sneaks under the radar and ends up being a bad culture fit has the toxic power to poison your workplace if you let it. Be very careful to vet new employees before they officially become part of the team.

Focus on finding the person with the right experience to do a great job, but more importantly, one who embodies the values and characteristics you define as imperative to maintaining your desired workplace culture. After this new employee will become part of your company’s culture, and help define what its future looks like.

Skipping Background and Reference Checks

Properly researching and vetting potential new hires is another area where small businesses owners often ignore best practices in an effort to cut costs. After all, background checks are expensive, and you might not need security clearance calibur employees if you’re running a restaurant.

But if you’re running a daycare, you’d better believe the integrity of your new hire’s background is relevant, and really important to your customers.

Reference checks on the other hand cost nothing more than your time, and should be a standard item on your new hire checklist.

Always ask for both professional and personal references when hiring a new employee and follow up with every single one before making a job offer. Even something as small as a two-minute phone call to verify a reference can help you avoid costly issues down the road.

These are just a few of the most common mistakes small business owners make when hiring employees. The good news is they are mostly avoidable. Sometimes it makes sense to spend a little more upfront, play by the insurance rules, and take a few minutes to consider each applicant before bringing them onboard. Outsource when you need to, and take the time to build a team you know you can count on for the long haul.

6 Common Reasons Freelancers Get Sued

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As a freelancer, you enjoy some of the gig economy’s most enticing benefits. You may get to choose your own projects, set flexible hours, and determine your own path to success. It’s as simple as delivering excellent work on deadline, and making the clients happy, right?

Not quite.

For most freelancers the road is paved with creative inspiration and remote freedom, but for some unsuspecting solopreneurs, there‘s legal trouble lurking. It‘s not uncommon for clients and even third parties to sue freelancers over their work.

A small business insurance policy will provide protection from these types of legal hassles, but it’s still stressful and often can be avoided altogether.

Here’s how:

1. Violating Platform Terms of Service

 

Lots of independent contractors and solopreneurs find and deliver work through freelancing platforms that help match them with clients. Typically, these freelancing sites spend money to promote themselves and to provide tools for collaboration and productivity. The sites act as middlemen take a cut from each project or order their efforts resulted in.

Here‘s the kicker:

The terms of service for most of these freelancing gig sites rarely allow their clients and talent to connect outside of the platform.

If you get caught violating these terms, you may be lucky enough to get a warning. Even being barred from the platform would be lucky compared to the more serious alternative punishment.

In the worst cases, the platform could sue the offending freelancer for breaching the terms of service and trying to profit from that breach.

How to avoid getting sued for violating the terms of service:

To avoid this kind of legal issue in your freelance career, it’s best to familiarize yourself with the platform’s terms of service and resist the temptation to violate them, even when prompted by a client.

Freelance platforms are a great way to get started, and the fees they charge help them provide that service for other freelancers who want to work independently. If you want to keep the entirety of your fees, do the work to create your own website, network among other independent freelance professionals, and cut out the middleman’s terms of service from the start.

2. Clients Wanting Refunds

Sadly, some clients don’t pay their invoices. Whether they weren’t happy with the final product, got charged more than they thought, or just aren’t good clients to work with, refusal to pay can cause serious conflict.

Sometimes they may have even paid a deposit or advance and demand you return it.

For example, one freelancer software developer had delivered 50 percent of a project and as agreed in the original contract, invoiced the client at that time. The client hesitated but then sent that partial payment, which the programmer used to pay bills. After that, the client appeared increasingly unhappy as the project progressed. The client’s attitude concerned the freelance developer, so he offered to let the client off the hook for the rest of the project.

At first, the client agreed to this solution. Then, without further communication, he sent a court summons for a claim to recoup all previous payments, including the non-refundable $500 deposit.

How to avoid refund demands for freelance work:

This is hard to completely rule out; some clients are never happy. So, if this happens to you, make sure you have saved all communications and deliveries between you and the client. Email any communications and avoid phone conversations that could turn into a he-said-she-said debate.

Also, spend a few dollars on a legal professional who can make sure you‘ve got an iron clad contract that documents expected payments for deposits, advances, and timelines for each stage of completion. You might also consider adding an escape clause to your contract so it‘s very clear what path is to be taken if either party wants out of the contract.

3. Defamation Lawsuits

Sometimes the work you do for a client ends up offending a third party, or the customer of your client. You might assume the client would be the target of any kind of defamation suit in that case, but it‘s not always that cut and dry.

Freelancers are sometimes named in defamation suits along with their clients. In other cases, clients have even referred legal action to the freelancer as a way to avoid trouble for themselves.

For example, a freelancer wrote a review of popular sweeteners. The purpose of the piece was to provide information that would attract visitors to a website. The writer honestly preferred certain sweeteners over others, and he made that clear in his review.

The manufacturer of a brand the writer did not prefer threatened legal action for defamation.

Avoiding defamation suits as a freelancer:

While you‘ve got your legal aficionado working up your contract, they might want to include an indemnity clause in the mix. Getting a good small business insurance policy to cover you is a must-have, but contract fine print can often be enough to deter legal action from the get go.

4. Getting Sued Over Security Breaches

Hackers pose one of the biggest threats to all kinds of businesses, including freelancing businesses. Even companies with large security budgets have suffered breaches, and it’s a particularly growing threat for smaller companies with fewer dollars in the budget for cyber security measures.

Despite the best efforts of trained and experienced professionals, cyber criminals still manage to find flaws in code they can exploit. You’d be surprised at the number of well-known business names who have faced a serious breach. If you’re a WordPress developer, for example, a hacker might exploit a flaw in the base code, but the client might try to hold you responsible.

Measures to avoid this:

No matter how careful you are about coding your project, you can’t control every aspect of how it’s used after delivery. You need a contract with an indemnity clause that puts the security burden back on the client. Some freelancers may want to consider cyber insurance for their business too.

5. Lawsuits Over Errors

Nobody‘s perfect, and even the most consummate professional freelancer might make an error from time to time. Whether it‘s accidentally introducing a bug into software or inadvertently entering misinformation into a spreadsheet, the repercussions of that mistake can leave the offender open to legal trouble down the road. Even when proper care is taken to avoid mistakes, it‘s inevitable at some point.

Creating a liability cushion when mistakes are made

Again with the contract legalese—an indemnity clause may help; however, it’s also prudent to have a contract clause that specifies you took reasonable care to avoid any mistakes in the first place. Building trust and working with diligent clients will help mitigate this risk too. The best clients will due their own due diligence and always have their own systems for testing software, checking for bad data, vetting sources, and so on.

6. Intellectual Property Lawsuits

Sometimes freelancers are accused of violating someone else’s copyright or other property rights. For example, a writer may accidentally use too much text from another source without getting permission or giving credit, or use an image that didn’t belong to them in a graphic.

A more subtle way this plays out is in software applications. A software developer might borrow code they developed themselves when under contract with another client who claims ownership. If copyright belongs to the client upon delivery, that’s a problem.

Avoiding IP lawsuits:

Freelancers need to take care when they use all or part of previously published media, or any other intellectual property another party might claim as their own. Always use a duplicate content checker when creating original content writing, and follow creative commons best practices for attribution.

Even freelancers who take great care to prevent lawsuit can end up getting sued. Life is unpredictable like that, which is why most professionals carry small business insurance to reduce the likelihood that a rogue legal problem or accident will ruin them financially.

7 Ways to Advertise Your Home-Based Small Business for Free

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As a small-business owner working out of your home, you know (possibly better than most) that every penny matters. Maximizing the return on investment (ROI) for whatever you put your money into is crucial for making sure your company not only survives but thrives. Advertising your company is no exception; you naturally want still to get the top return for your dollar.

Let’s take a look at some of the best ways to advertise your business for free to give you options in growing your home business in a cost-effective way.

1. Create Your Elevator Pitch

You have 8 seconds…GO! That’s roughly the average attention span of an American adult, the time it takes a person to decide if what you’re communicating is worthy of their time. Drafting, reworking, and perfecting your elevator pitch (that brief summary of your business and why it’s better than other businesses) is arguably the most important step in advertising your company. Why? Because a great elevator pitch is the message that grabs the attention of your target audience. Once refined, it then filters into all of your other advertising methods and helps create the cohesive message you project to your customers and prospects, whether it be through face-to-face meetings, online, social posts, or even riding elevators.

2. Build a Website

If you’re working out of your home, chances are you’ve already made a site. But if you haven’t, start today. With DIY tools such as Squarespace, Wix, and Godaddy, making a website is easier than ever and requires absolutely zero knowledge of HTML, CSS, JS, etc. (if you’re thinking WTF, we’re with you). Your website is where you get to house everything you want to convey to your current and potential customers including what you do/sell, why you started your business, and how to contact you. It’s also an increasingly important because customers are increasingly visiting company websites before purchasing. Most of the time that first visit is for other reasons than purchasing, such as researching your company, but it’s becoming a very common step in the buying process.

As a home-based business, you don’t have the pleasure of walk through traffic or being able to display your products in a store front window. Your website is your store front window. Make sure you have a window.

3. Utilize Social Media

Before you even start your business, you have a marketing base: your social network. Your friends and family (and by social connections their friends and family, and so on) is a great jumping point for creating awareness of your business. If you’re new or established, social has become essential for reaching customers, building brand awareness, and increasing your brand authority. Creating a business account on social sites is about as hard as creating your personal account, so again there’s no need for ‘techy’ programming knowledge. On social sites you can promote your product or service, perform product reviews, advertise positive reviews of your business, and generally increase awareness of what makes your business so awesome.

 

You don’t have to work every social media platform; just the ones your target audience is using. Facebook is generally good for a diverse audience, but if you’re targeting professionals, you may want to try LinkedIn. If you have lots of visual content, Pinterest, Instagram, or Youtube is probably a good fit. Whichever ones you go with, make sure you’re keeping your pages updated (posting at least once or twice a week) to develop consistency with your followers.

4. Google My Business

Formerly referred to as Google Local, Google My Business (GMB) is what helps ensure your business shows up when people run local searches. Google is by far the most used search engine; you don’t Bing something, you Google something. Creating your business profile with Google helps ensure that people in your town are looking for what you specialize in, your business appears in the search results. Keep your profile and information up-to-date and accurate to ensure people searching for your business are able to find your business. One small caveat: if you are an entirely online home-business, you cannot have a GMB profile. Google requires businesses to have at least some (at minimum the potential for some) face time with their customers and prospects in order to create a profile.

5. Create Content

Creating content works, and works really really well. Small business that engage in content creation generate 126% more leads than those that don’t. From your home business it’s hard to have those face to face customer interactions to explain those intricate details about your profession and why they need to work with you. Do you have specific knowledge that your customers are constantly asking about? Chances are other people are asking those same questions. Write about it! Do you target a very particular customer base for which there isn’t a lot of information available online, or you’re unable to reach through local advertising? Create content to fill those search results!

Some companies create how-to guides in the form of blogs, others publish cheat sheets and whitepapers, and others film explainer videos and upload them to their facebook, instagram and youtube profiles. Creating content not only tells your customers that you’re an expert in the industry, it also begins to tell Google you’re an expert, which boosts your website in search results.

6. Send Emails

Speaking of mail, electronic mail is free* and easy to send, especially if you’re using a CRM or email marketing automated tools. There’s an asterix because email marketing tools are free until your list grows to a certain size; that certain size is determined by whatever tool your using. After your free is no longer available, email marketing still remains incredibly cheap as an advertising tool. Email is great to notify your subscribers of new products being launched, promotions you’re running on products/services, or updates about your business. You can also cross-advertise that new content you just created, ask them to review your Google My Business profile, or like your latest Facebook post.

7. Advertise your Insurance

Operating a business out of your home doesn’t mean it’s any less legitimate than another. You provide a product or service, and you stand behind what you do. Advertising your insurance coverage is a great way to reinforce confidence in your work by showing that even if something goes wrong, you have the protection to make your customer’s loss whole again. If you’re an artisan contractor advertising your small business, your insurance protects not only your business but your customer too, should they get injured because of your work. If you refinish customers furniture in your garage, your insurance gives your customer piece of mind that their things are protected while you have possession of them. While insurance is not the sexiest advertising channel possible, it’s another tool you can use to solidify your business as trustworthy in the eyes of your customers.

Did You Know?: Insurance Protects your Business If You’re Sued Because of Your Advertising

Not only does your General Liability policy cover your company against third party injury and property damage, such as if someone comes into your home office and injures themselves,  but there exists an insuring agreement within the policy which covers you and your business against claims resulting from your advertising. Ecclesiastes 1:9 states “there is no new thing under the sun”, meaning, it’s very possible your brilliant advertising idea has been thought of before. If someone thinks the new ad you created is based on their ad they created last year, they can elect to sue you for plagiarism. Regardless of if it is plagiarism or not, you now have to defend your business against this claim. Some other ways your business could be sued based on your advertising efforts:

  • Any advertising that violates a person’s right to privacy, including using their likeness for commercial gain without permission (yes, Beyonce may love your product, but get it in writing)
  • Any advertising that libels or slanders another person or organization
  • Any use of other individual or company’s copyright or slogan. If you build craft custom rugs, you can’t tell customers to “have it your way.”

As you are starting or growing your home based small business, advertising is obviously the way you get your business in front of your target market. How you advertise, free or not, through handshakes or social media, is completely up to you. but working from home means you need to get creative to attract attention, grow your customer base, and thrive. However you decide, make sure your company is protected should anyone decide your advertising is too much like theirs.

How Well is Your Course of Construction Insurance Covering You?

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A small spark ignites a dry brush on the side of the interstate. A thin stream of smoke begins to trail up toward the hot, summer sun. A light breeze picks up. In a matter of moments, it has started.

Wildfire.

No matter where you live and work, chances are you saw the devastation of a nearby wildfire this year.

In 2015, wildfires consumed more than 5.5 million acres across the US, an area approximately the size of New Jersey. Summertime heat and drought conditions in the western states have made them most susceptible to these disastrous blazes. And anyone living in California, Nevada, or Alaska can tell you…

Wildfires don’t just destroy the wild.

A fire can quickly spread to nearby populated areas, destroying residential homes and commercial properties in an instant.

What if you were working on a project and an unexpected fire blazed through it?

The progress you’ve made would be lost.The materials and supplies on the project site would be destroyed.

The cost of cleaning up the damage, replacing the materials, and getting back on track with your project could be huge. What would it cost you to repair, replace, and start over?

For many small business and independent contractors, this kind of disaster could eat up all of their profits on a project, and even force them to pay out of pocket to get it finished.

But not for everyone.

Contractors who carry course of construction insurance would be unfazed in this type of situation. Also known as builders risk, this coverage is designed to protect you and your project from the real emergencies that can happen while you are working on a project.

When fires strike, flood waters rush in, or earthquakes shake the very foundation of a project, covered contractors can keep on building. The cost of repairing the damage, clearing debris from a site, and replacing materials and supplies that are lost or damaged won’t come out of your pocket.

Just what types of mayhem does builders risk cover on a project?

  • Natural disasters
  • Extreme weather conditions
  • Vandalism
  • Theft and burglary

In a worst case scenario, your project site and all of your materials are covered with course of construction insurance.

Fires happen. Floods happen. Vandalism happens.

And you can still be profitable when they do.

What’s in a BOP: Breaking Down the Business Owners Policy

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As a small business owner, you want the peace of mind to know your business is protected should an unforeseen accident occurs. But when you start to think about all the things that could happen, the roof leaking during a storm, a break-in in the middle of the night, a customer injuring themselves…it can be a bit overwhelming. But don’t worry, you can cover a large majority of your risk with your go-to policy as a business owner: business owners insurance (business owner, business owners insurance. We know, insurance people are not very creative).

A Business Owners Policy, also called a BOP or Business Owners Insurance, is kind of like the combo appetizer plate at your favorite restaurant. While you can always purchase each item by itself, the restaurant packages the most popular options together in the combo platter and typically sells it for slightly less than those items purchased separately. In the case of BOPs, most insurance companies group a number of specific types of coverages together in one package to provide the combination of coverage you need in a single policy.

What’s Covered in a Business Owners Policy?

But before anyone actually purchases the proverbial pu pu platter, they typically want to know what individual items are included to see if it’s worth it. Let’s take a look at those coverages that are included (and not included) in Business Owners Insurance.

1. Property Insurance

A commercial property insurance plan works similar to a homeowner’s plan. It protects the physical building and its contents. In some cases, the plan will cover damage or loss caused by anything. This is often referred to as a “special,” “all-risk,” or “open-peril” policy. More often than not, however, the policy is “standard,” meaning only damage and losses caused by specific named events are covered. For example, a policy might list fire, tornado, and vandalism as covered perils, but will exclude other events such as war acts of God.

You can also elect to insure only the contents if you don’t own the building. Much in the way a renter needs to insure their personal belongings but not the actual building (since that is insured by the landlord), a BOP can only list the business personal property of the company. Think of those items that you need to run your business; computers, stoves, ice cream machines, signage, etc. Whatever your equipment may be, your company relies on it to function smoothly and would be burdened if it had to replace that equipment out of pocket.

2. Business Interruption Insurance

Along with making sure your damaged property gets repaired or replaced, a BOP can include business interruption coverage (also called Business Income Insurance) to make sure you can keep paying your bills until you’re able to open for business again. If your clothing store has to shut down for repairs, will your rent bill shut down too? What about payroll to key employees continuing to work? Typically the answer is no. That’s why Business Income Insurance is so important to the success of small businesses. Business Interruption insurance is the financial interjection your company may need to make sure that the doors can stay open once reopened.

3. Liability Insurance

No matter what business you’re in, whether you’re a contractor, a florist, or a gym owner, there’s always some risk that the product or service you offered could cause someone harm. For example, a patron may burn herself on hot coffee, or a TV that has been professionally installed could fall on someone passing underneath. Not only does it protect your business against injury claims, it also covers property damage (not the same property as able, we’re talking about other people’s property). So if a server spills a tray of drinks on a customers brand new laptop, you’re covered. Where property insurance is your go-to for the things of your business, liability is your go-to for the actions of your business.

4. Optional Coverages

Although the first three are standard in business owner policies, some policies may also include things like flood insurance and crime insurance depending on your risk profile. We’ll look at just a few:

Cyber Liability – Do you handle and store customers data? You’re at risk for data breach. We’re not saying your security isn’t good, but if Target can get hacked, so can you. This coverage can help with the extra expenses of notifying your clients for the breach, hiring credit monitoring services to keep your eye on the outcome (if any), and providing defense if you’re sued by your customers.

Professional Liability – Do you offer professional services such as financial or legal advise, brokering transactions (such as realtors), and design/planning? You may need to include professional liability. This separate coverage from standard liability insurance protects your company should you be sued for any error or negligence during those professional services provided.

Hired/Non-Owned – If your company doesn’t own any vehicles and you don’t have a commercial auto policy for your business, this coverage is key to making sure your business is protected when vehicles are on the road for business purposes. Think about if you have to rent a car for a conference, or you send an employee out to make a bank deposit. Should there be an accident, your BOP will be able to help pick up the tab rather than your checkbook.

Employers Practices Liability – Let’s face it, unless you have a full-time HR director, keeping up with changing laws and regulations regarding employment is tough. EPLI helps protect your company against employment practice related claims such as wrongful termination, discrimination, wage violations, and harassment.

If your company has unique risks, you may also be able to incorporate some other less common protections, such as spoiled merchandise, mechanical breakdown, and even forgery coverage. Talk with your agent if to see which of these are included automatically and which can be added for your unique situation.

What’s Not Covered in a Business Owners Policy?

As mentioned earlier, many things can fall under the umbrella of a Business Owners Policy, but there are a few types of coverage your business will likely need to purchase separately. These include:

  • Workers Compensation Insurance – Coverage to you and your employees for work-related injury and illness.
  • Health and Disability Insurance – Coverage for you and your employees for injury and illness not related to their job.
  • Commercial Auto Insurance – Coverage to protect your company vehicles and any liability claims that may arise from an accident.

Who Needs a Business Owners Policy?

Business Owner Policies provide necessary protection to lots of organizations. Does your company own a building or business property? Is your company capable of being sued, even if the suit is frivolous? If you answer yes to both of those, you probably should have a BOP in place.

Where a BOP is the go-to for most businesses, some industries and professions are ineligible for this type of policy with most carriers. In that case you’ll either need to graduate to a commercial package policy (basically the same as a BOP, but with more flexibility in what endorsements can be added to the policy), or purchase the lines of insurance separately though your broker. Some BOP ineligible industries include non-durable goods manufacturing and heavy construction.

Get a Free Business Owners Insurance Quote

If you’re ready to explore your insurance options, Citizens General is here to support you. A new tool is available through The Hartford where you can not only quote BOPs, but your workers comp and commercial auto in as little as 10 minutes. Our brokers have been helping small businesses like yours for nearly a decade. We get to know your business and its risks, then find the best policies for your needs at the best prices. Let us help you secure your success; get your free no-obligation quote today.

How to Protect Your Business from Workers’ Compensation Claims

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According to the Occupational Safety and Health Administration (OSHA), employers pay about $1 billion per week in workers’ compensation claims costs. New injuries occur roughly every seven seconds, bringing the average annual count to 4,500,000, per the National Safety Council.

Indeed, workplace injury is all too common, and it’s costly as well. OSHA provides a calculator business owners can use to tabulate the estimated direct cost of any given injury, with amounts ranging from an average of $13,364 for a contagious disease claim all the way through $149,103 for something severe like asphyxiation. This, of course, doesn’t include indirect costs, such as lost productivity, preventative training measures, and repairs to damaged business personal property. Depending on the size of your business, even a minor claim could wipe away profit for the year or result in your business shutting down.

Here are some suggestions to help protect your business from workers’ compensation claims.

Know Your Risk

Although all businesses are at risk, a few industries have more workers’ compensation claims than others. You’ll want to be especially mindful if your industry is:

  • Service-Related
  • Transportation / Shipping
  • Manufacturing / Production
  • Installation, Maintenance, and Repair
  • Construction

Conversely, there are a number of industries with very little workers compensation exposure which in turn results in fewer claims.

  • Banking and Finance
  • Software and IT
  • Professional Services
  • Broadcasting
  • Medical, Nursing, Health Services

Even though there are fewer claims in these industries, a claim can still be a heavy financial burden should an incident arise. A cost benefit analysis can show just how much you can gain by having coverage in place.

Be Familiar with the Most Common Workers’ Compensation Claims

The National Safety Council gathered data on the most common injuries. In knowing these, your business can establish policies to minimize the risk to employees.

Most Common Injury Types

  • Sprains, Strains, or Tears
  • Soreness or Pain
  • Cuts, Lacerations, or Punctures

Most Common Events Leading to Injury

  • Overexertion (34% of injuries)
  • Contact with Objects and Equipment (25% of injuries)
  • Slips, Trips, and Falls (25% of injuries)

By understanding what areas of your operations provide the most exposure to workplace injury, you can then tailor your operations in a way to minimize the event of an occurrence, the severity of an occurrence when it happens, or both.

Enact Policies to Reduce Risk

Let’s face it, things happen. If a company could find a way to reduce 100% of the risk for workplace injury, they would not only revolutionize business in general but they would be sitting on top of a goldmine. But until that day, the best business owners can do if enact policies to reduce of the risk as low as possible.

Breaks: Although rest periods are traditionally mandated by law, it’s important to adhere to them and offer extra recovery time for those in physically-demanding jobs.

Lifting: Create policies that require employees to use braces when lifting and set maximum lift amounts. Provide employees with training on how to safely lift objects and offer refresher courses. Also, refer to your workers compensation policy as carriers will typically have guidelines for maximum weight suggested.

Protection: Make sure employees have access to the right protective gear for their environment and do not allow anyone to work without it.

Housekeeping: Do a walk through your place of business and look for things that could result in slips, falls, or trips. Issues like uneven walkways should be corrected or marked, while spills should be marked and tended to promptly. Because each person will have slightly different abilities in terms of things such as balance and vision, it’s especially helpful to have several people do walkthroughs.

Shifts: People on the night shift have 30% more incidents than their daytime counterparts. Whenever possible, reduce or eliminate nighttime work. For those companies that have long operating hours, have a rotating schedule, or cover irregular shifts also have increased risk. If you cannot put your team on a standard daily schedule, be especially mindful about giving them a reliable schedule that enables their internal clocks to adapt and keep to the schedule as much as possible. Be advised that missing as little as two hours of sleep results in about the same impairment level a person would have after drinking three beers. Overwork and sleep deprivation has been found to be responsible for an estimated 274,000 workplace accidents per year. If you aren’t honoring their sleep schedule, it’s likely you’re increasing your risk for a workers compensation claim.

Phones: The leading cause of workplace death is car accidents, and 94% of all crashes are caused by human choices. While sleep is a major component of this, cell phone use is a huge concern as well. Your company should have a phone policy as well as policies which relate to other forms of distracted driving.

Here are a few other suggestions of ways your business can reduce workplace injury.

Have Adequate Insurance

Though having insurance in place does not itself protect your company from claims, it still makes good financial sense. In the event of an illness or injury, it provides benefits to employees for work-related injuries or illnesses including medical care, wages from lost work time, and more so you don’t have to come out of pocket. It will even help expedite your employee returning to their position.

If you can identify which injuries have the potential to occur within the normal scope of work for your employees, you can then use the OSHA calculator to help determine how much coverage you’ll need to provide adequate protection to your business. Depending on your state, limits may start at $100,000 per occurrence for bodily injury, $100,000 per employee for bodily injury by disease and a $500,000 policy limit for bodily injury by disease. Commonly though these limits can be raised to $1mil each for a marginal increase in your premium.

In addition to the fiscal benefits, having insurance is good for employee relations. Your team deserves to be taken care of if something goes wrong on the job. Your policy will add an extra measure of security so the team can feel confident and protected in their workplace.

Get Protection from Workers’ Compensation Claims

The above suggestions are to reduce risk are not all-inclusive, but they are a great starting point in helping you reduce your exposure. There is no way to totally safeguard against workplace injury, thus why it’s important you have workers’ compensation insurance if you want to protect your business and your employees. Take the first step toward a more secure future; get a free insurance quote today.