After investing years, or even decades, to grow your company, you cannot let an avoidable mistake, like insurance neglect, take it down. Lawsuits and accidents outside of insurance coverage devastate big businesses every year.
Inc. reported that a “travel agency was sued for back pay by a former staffer who quit.” It took “more than 1,500 hours of work … to wade through more than 100,000 emails and other records.”
Another business was charged with libel “because of information one of his employees posted on a website.” The business took a hit of “$500,000 in lost business and $15,000 in legal costs.”
A Randstat US survey found that “Fifty-five percent [of U.S. workers] have left jobs in the past because they found better benefits or perks elsewhere.” Advice from an insurance broker can help big businesses avoid insurance neglect and keep quality employees on board.
Companies can avoid Insurance neglect just by talking with an insurance broker. Brokers understand how to protect against expensive, life-changing financial disasters for employees and businesses.
More than 40 million lawsuits plague the United States per year. There’s no excuse for betting against odds like that.
Inadequate coverage of your employees or business, for any reason, can constitute insurance neglect. If an employee hurts his lower back on the job, proper insurance should cover the medical expenses. If not, you can expect your employee’s attorney to look immediately for possible insurance neglect.
Even when your business has done things the right way, frivolous lawsuits pop up daily. Average out of court settlements cost around $40,000, wrote, CersNow:
“Ten percent of wrongful termination and discrimination cases result in a $1 million dollar settlement. The majority of cases, about 67 percent, are ruled in the plaintiff’s favor when taken to litigation.”
Insurance neglect occurs when an employer underinsures his or her employees. Regardless of whether it’s unintentional or intentional; it’s neglect. Here are some basic causes:
Lapses in coverage, occur due to…
Although large businesses can avoid exposing themselves this way, insurance neglect happens.
Insurance neglect can also happen when poor communication results in inadequate coverage. If a business reports incorrect figures or information about finances, safety, or employee health, it can end up with insufficient coverage. Failing to disclose potential risks to the insurer can result in uncovered catastrophes.
Big business need time to recover from accidents and lawsuits. Insured companies receive payouts during this indemnity period, but negligent businesses may not survive through the recovery, after the shutdown of profitable operations.
Big businesses often try to reduce expenses with higher deductibles, third party administrators, or insurance omissions. Overconfidence risks critical assets. It’s extremely difficult to accurately predict the potential cost of accidents and liquid asset recovery.
Losses to businesses guilty of insurance neglect go beyond problems related to lawsuits, damaged assets, and healthcare expenses. Negligence can also result in …
To avoid losses caused by insurance neglect in your big business, talk to your insurance broker about your current coverage. Ask if you have any gaps in your own protection and that of your employees.