What Mandating the Vaccine Might Mean for Your Business Insurance

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Business owners have experienced unforeseen challenges as a result of the last nearly two years in a global pandemic.

The conversation surrounding the ethics of requiring vaccines has been floating around the workplace for about just as long.

In September 2021, however, President Joe Biden directed the Occupational Safety and Health Administration (OSHA) to introduce an emergency temporary standard (ETS) that requires companies with 100 or more employees to ensure all employees are:

  • Fully vaccinated
  • Or, that they submit to weekly testing and mandatory masking

*As of November 17th, however, OSHA has paused all vaccine mandates “after a federal appeals court upheld a stay.”

Regardless, it is still top of mind for employees. Here’s what mandating the vaccine might mean for your business insurance along with how you can prepare if the mandate is passed.

Who Would This Mandate Affect?

According to The New York Times, companies with 100 or more employees would “have until Jan. 4 to ensure all their workers are either fully vaccinated or submit to weekly testing and mandatory masking.”

This measure would be enforced to promote workplace health and safety and will affect “some 84 million private-sector workers across the country, including some 31 million who are believed to be unvaccinated.”

If the mandate comes into play, OSHA anticipates the ETS will be in effect for six months depending on COVID-19 statistics.

When Did This Mandate Come About?

“The measure was announced by President Biden in September [2021], and details were released on Nov. 4 by the Labor Department’s Occupational Safety and Health Administration [OSHA],” according to The Times.

COVID, ELP, and EPLI

First things first, what is Employer’s Liability Insurance? This form of insurance “protects your business when an employee sues over a work injury or illness,” according to Insureon. It is especially important, considering “almost one in five small businesses will face employee litigation” at some point.

Equally as important to consider is Employment Practices Liability Insurance (EPLI), which is insurance that “provides coverage to employers against claims made by employees.”

With the potential vaccine mandate, we can anticipate an increase in EPLI claims. As a result, we might see EPLI premiums increase. Kyle Jeziorski, Executive Vice President at Founder Shield offered insight: “I think insurers will try to add COVID-19 exclusions to EPLI policies and potentially offer the coverage for an additional premium.”

It’s definitely something we here at Competitive Edge Insurance will continue to keep a pulse on.

How Responsible Are Businesses for the Spread of COVID?

During the onset of COVID, many employees wondered to what extent businesses and business owners should be held liable if an employee were to contract COVID-19 on the job and suffer sickness or even death as a result.

The answer today is still clear as mud.

There are, however, steps your business can (and should) take to prepare for these newly introduced COVID-19 vaccine mandates.

Steps Your Business Can Take to Prepare

Business Insurance tells us that now is the time that businesses should prepare U.S. Equal Employment Opportunity Commission processes as well as human resources (HR) departments for what lies ahead.

As we well know, there are many employees across the U.S. who will request exemptions from receiving the COVID-19 vaccine due to religious or health reasons. This process, called an ‘interactive process,’ can take weeks or even months.

For businesses, this can be a lot added on their plates—especially if they receive a high number of requested exemptions.

Businesses should know this ahead of time and prepare accordingly.

Erect a Framework in Advance

“Businesses owe it to themselves to put together a framework to manage this,” says Chuck Kable, Chief Legal Officer and Chief Human Resources Officer at Axiom Medical. “You have to have a protocol and a process that you have to administer consistently and over time, and you have to treat everybody equally.” 

If businesses fail to do so, this is when liabilities begin to pop up. 

“Any mishandling of an exemption request can run afoul of anti-discrimination laws,” says Adam Kempe of Kelley Kronenberg. Companies might face various liabilities including:

  • Failure to maintain and keep private workers’ health information
  • Failure to follow steps in Equal Employment Opportunity Commission (EEOC) exemption requests

Consider OSHA Fines

If the headache of one of your employees filing a claim with OSHA as a result of your negligence isn’t enough motivation to get your ducks in a line, consider the hefty OSHA fines you might face.

If a complaint is filed, the first thing OSHA is going to look for is your current OSHA Covid Protection Procedures that are in place, which includes your Injury and Illness Prevention Program (IIPP). All employers are required to have IIPPs in place.

OSHA fines can be especially detrimental to your company’s financials because while OSHA personnel might come in looking for one thing, chances are they will do some digging, which could lead to additional fines or penalties. OSHA, in that sense, is similar to the IRS—except for employers.

Employee Screenings

A final precaution that employers should take, according to Brenda Jo Robyn, founder of Competitive Edge Insurance, is to conduct thorough employee screenings.

Brenda Jo also acknowledges that it may be the case that many people will choose to not work as a result of this mandate.

“You can find out a lot about an employee or potential employee from a screening,” says Brenda Jo. “Be sure to look at their workers’ compensation claims and do reference checks.”

Take advantage of not only their most recent reference but reach out to prior references as well.

A Final Word

With this potential vaccine mandate firing up, it’s especially important for employers to be on their A-game as far as safety procedures and insurance are concerned.

“There’s nothing that prevents a company, especially one not familiar with these issues, from now bringing in appropriate HR personnel, a consultant, or employment counsel to understand what to expect,” says Kempe of Kelley Kronenberg.

On the topic of vaccines, did you know that Brenda Jo Robyn, founder of Competitive Edge, began her career as an Epidemiologist who specialized in immunizations? To hear more about vaccines, specifically, her passion for Polio research, visit this blog post.

World Polio Day

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Competitive Edge’s very own CEO, Brenda Jo Robyn has a passion for charitable giving. Because of Brenda Jo’s previous career as an Epidemiologist who specialized in immunizations, she places special attention on Polio research. As October 24 is World Polio Day,  we wanted to get Brenda Jo’s insight into what World Polio Day really means to her. 

What World Polio Day Means to Brenda Jo:

“I belong to the rotary club of Coronado and one of the things that I specifically work on is a fundraiser called End Polio Now, which raises funds to immunize children across the globe. 

Over the last few years, we have raised $2.1 billion to protect over 3 billion children and 122 countries from Wild Polio Viruses, two have been eradicated, and one is still active. And the only countries in which Polio exists in the wild are Pakistan and Afghanistan. This year, we only had two reported cases in January. However, between 2018 and 2020, there hasn’t been as much access to services for families and children. And in those two countries in 2020, there was a three-month break from providing immunizations due to COVID-19. 

They couldn’t go around and go from town to town and, and tried to tribe. Due to recent events, it has become increasingly challenging in Afghanistan and the immunization locations have been closed down. There’s a big concern right now on how this will play out and affect the future. 

Currently, there’s an estimate of 3 million children that remain, un-immunized. And why is this a concern? Well, it can lead to an outbreak. Refugees are being accepted in countries all over the world, and we don’t know who is immunized and who is not immunized as they come. We really have to focus on those children as they’re coming in and treat them all as if they are not immunized.”

Understanding World Polio Day

World Polio Day is an effort to draw attention to the End Polio Now organization working to eradicate the wild poliovirus in both Afghanistan and Pakistan, as well as increase immunizations in countries that are at greater risk, like Africa. 

In order to eradicate the wild poliovirus, high-quality immunization campaigns must be carried out to polio-affected and high-risk countries. Rotary has played a huge role in contributing to Polio eradication. 

What is Rotary?

Brenda Jo is a part of the Rotary Club, which provides her with various opportunities to connect and give back to the community at large. 

“Rotary is a global network of 1.2 million neighbors, friends, leaders, and problem-solvers who see a world where people unite and take action to create lasting change–– across the globe, in our communities, and in ourselves.”The main goal of Rotary is to serve others in the form of charitable works, giving, and time. Brenda Jo loves being a part of Rotary as it gives her the opportunity to make a real difference in the world. If she can impact just one life in a positive way, it is all worth it.

Four Types of Insurance Coverage for your Business

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There are so many options for insurance that it can be overwhelming to know which research steps to take as a business. At Competitive Edge, we help you navigate what coverage best fits you and your business. 

Health and Wellness 

Niche beauty insurance solutions can miss areas of business insurance that might bridge gaps in the event of falls or other general liability claims. With health and wellness insurance, unique situations are bound to arise depending on your business’s current environment and changes. 

The various Health and Wellness sectors that Competitive Edge caters to include: 

  • Beauty 
  • Spa Owners
  • Hair Salon Owners
  • Nail Salon Owners
  • Fitness
  • Yoga Studio Owners
  • Pilates Studio Owners
  • Dance, BarreFit, and Additional Exercise Studio Owners
  • Martial Arts Studio Owners
  • Health
  • Naturopathy Practices
  • Audiologists
  • Speech and Occupational Therapy Centers
  • Alternative Therapy Centers
  • Acupuncturists

To provide you with the right coverage from the right carrier, we need to know about your business. It’s not enough to put all cosmetology companies in one box, all spas in another, and all beauty product companies in yet another pre-planned box.

Cyber Liability

Cyber liability is a growing industry because of the evident rise in technology, and the hacking that comes with progress.

Does this sound like news to you? Don’t worry—we already wrote an article here for you to read about reducing cybersecurity risk. 

It’s important to understand what might be covered under your cyber insurance policy. 

  • Data Breaches
  • Intellectual Property Rights
  • System Failure
  • Damages to a Third-Party System
  • Cyber Extortion
  • Business Interruption

Traditional business liability insurance likely won’t cover any cyver risks associated with your business. 

Bonding

Surety bonds offer an important secondary level of coverage. 

A surety bond is a contract involving three parties. It is a promise to be liable for the debt, default, or failure of another.  These three parties include:

  • The Principal: The party that purchases the bond and undertakes the obligation to perform the act as promised.
  • The Surety: An insurance company that guarantees the obligation to be performed. If the principal fails to perform the act as promised, the surety has a contractual obligation for the losses.
  • The Obligee: The party who requires and receives the benefit of the surety bond.

There are two categories of surety bonds: contract surety bonds and commercial surety bonds.

Contract surety bonds are typically written for construction projects. If a contractor defaults, the surety company is obligated to find another contractor to complete the contract. Another option for the surety company is to compensate the project owner for the financial loss incurred. There are a few bond types of contract surety bonds.

Contract sureties are required during a federal construction contract valued at $150,000 or more. State and municipal governments have similar regulations. Note that contract sureties may also be used with a private owner.

Commercial surety bonds, on the other hand, cover a broader range of surety bonds. These are required of individuals and businesses by federal, state, and local governments.

These bonds can be required by the government to obtain a license. For example, mortgage brokers, contractors, and auto dealers may be required to obtain a license or permit bond. These bonds can also be required to protect various statutes, regulations, ordinances, and other government entities.

General Business Insurance

General business insurance covers areas such as property damage, bodily injury, product liability, libel, slander, and copyright infringement.

Hindsight is no place for general business insurance conversations as lawsuits are a sad reality for many businesses. Just one bodily injury or property damage claim can take away everything you’ve worked so hard to build. General liability insurance provides businesses with coverage for most damages, injuries, medical costs, legal fees, and settlements in the case that you’re being sued.

Construction Insurance

Shock losses from large claims can make it difficult to get affordable insurance in the high-risk field of construction. If your insurance was canceled or non-renewed, we can help. 

Our depth of experience and exemplary reputation with the carriers we work with can find a home for your hard-to-place and high-risk clients can find the right coverage. The fact is, every business can find coverage, you just have to take the time and know where to look. 

The businesses we work with include: 

  • Roofing
  • Construction
  • Commercial Property
  • Commercial Real Estate
  • General Liability (CGL)

Errors and Omissions Insurance

In the CRE industry, agents are at higher risk of being accused of failing to meet a client’s expectations, failing to document decisions or actions, or failing to act in a customer’s best interest. This could be an error on a title or an oversight in a property listing, which could lead to a costly lawsuit. 

Errors and Omissions (E&O) insurance covers against financial losses from lawsuits filed as a result of an agent’s work in the real estate profession. These policies cover liability related to the following issues:

The client may claim that you made an error that led to financial loss. In a lawsuit regarding professional mistakes, you may be at risk of losing big, considering the size of commercial property transactions.

An example of this is when a real estate agent misstates the square footage of a property. If the agent has Errors and Omissions Insurance, however, they may be covered for attorney’s fees, court costs, settlements, judgments, and fines. 

Potential E&O Exclusions

While it’s important to know what E&O insurance covers, it’s also important to understand potential exclusions. Some common exclusions in E&O coverage include claims resulting from dishonest or criminal acts. As well as claims associated with a polluted property. If any agent causes bodily harm or death to another person, or the agent causes damage to someone’s property, their claims will not be covered under E&O insurance. 

In the CRE industry, it’s more common to face a lawsuit related to errors and omissions so it’s best to be covered before you need it. Roger J. Stewart is an expert in providing coverage for real estate professionals and has helped various CRE investors and agents avoid risk and save money throughout the years.

At Competitive Edge Insurance, we work with insurance carriers across the country to place all types of business coverage. We are always seeking out new insurance companies to write hard-to-place and high-risk business insurance. 

Don’t let cancellation dissuade you from finding comprehensive coverage, we can help! 

Contact us today at Competitive Edge to find out more information.

Cannabis Insurance: Risks and Coverage

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The emerging cannabis market has created a new space for industry coverage. There are, however, both general and unique risks of cannabis insurance that shouldn’t be overlooked.

Let’s talk about the risks of cannabis insurance and what coverage is available to keep your business protected.

Risks of Cannabis Insurance

Claims can vary, but some of the most common in the cannabis industry include:

  • Bodily injury or property damage caused by a product misuse
  • Product-related/manufacturing defects that result in some kind of loss
  • Inhaled, edible, and infused products that may have caused illness
  • Faulty/misused equipment (which includes vape cartridges, batteries, and lighters)
  • Marketing/labeling misrepresentations

Moreover, The National Association of Insurance (NAIC) acknowledges that companies might need to reevaluate their coverage when it comes to cannabis and hemp. With the rising popularity of different forms of cannabis (for example, edibles), there are mental effects that need to be accounted for with insurance risk.

NAIC claims that products like edibles “increase the risk of product liability and safety recalls. The psychoactive effects of CBD raise the risk that products may be deemed mislabeled, misrepresented, or harmful.”

Research shows that young people have shown more interest in illicit drug use in recent years, which could change the insurance services and risks available.

Some additional and unique risks associated with cannabis coverage to consider include:

  • Cannabis businesses are complex
  • The market is constantly changing
  • Policies are not on the same playing field
  • Vaping products muddle the market

What Insurance Does Your Cannabis Business Need?

So, what insurance does your cannabis need to combat these risks? Below are three of the best ways to protect your cannabis business.

  1. Product Liability Insurance

Cannabis and CBD products require custom product liability policies for their:

  • Manufacturers
  • Retailers
  • Distributors
  • Cultivation
  • Facilities
  • And more

This coverage applies to any business bringing a product to market. If an incident were to occur, these custom product liability policies kick in to help defend your company against claims and allegations and to pay damages if your business is found liable.

Considering the potential claims that can be made against your business (listed under “Risks of Cannabis Insurance”), product liability insurance is an essential part of your cannabis coverage.

  1. Product Recall Insurance

Similarly, you may want to consider product recall insurance, which can cover the costs of removing a defective product from the market and further prevent third-party claims.

  1. Employment Practices Liability Insurance (EPLI)

Lastly, your cannabis business might consider EPLI.

Employment Practices Liability Insurance (EPLI) is insurance that provides coverage to employers against claims made by employees.

EPLI policies typically extend coverage to the following:

  • Wrongful Termination
  • Sexual Harassment
  • Wage-Related Claims
  • Claims of Unequal or Unfair Pay
  • Discrimination Claims (i.e. age, race, gender, sexual orientation)
  • Third-Party Claims
  • And more

According to Amtrust Financial, the below are also common employer missteps that may be covered:

  • Failure to Hire or Promote
  • Libel, Slander, Defamation of Character, or Invasion of Privacy
  • Wrongful Infliction of Emotional Distress
  • Wrongful Discipline or Demotion

Who Needs EPLI?

The fact of the matter is that some industries are more susceptible to these types of claims than others. Highly susceptible industries include the cannabis industry as well as healthcare, professional services, restaurant, food services, retail, and manufacturing.

Again, EPLI claims can be detrimental to businesses of all sizes and types. This policy helps protect against many kinds of employee lawsuits which is why it’s important to invest in coverage, especially for a client-facing business such as cannabis.

A Final Word

Naturally, carriers have their own best interests at heart and only cover the safest bets to protect themselves. At Competitive Edge Insurance, we build your case with the carrier to ensure that you get the right coverage at the best price based on your real-world conditions.

Read on if you’re wondering the difference between cannabis and hemp insurance, then get in touch with our team today.

What You Need to Know About Insuring your Fitness Studio

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The health and wellness industry is booming. Over the last few years, there has been a greater demand for health and wellness services beyond traditional medicine. As a fitness center or studio owner, you prioritize the health and wellness of yourself and your patrons. As you look to continue to grow your business, it’s important to also look out for the health and wellness of your business.

Whether your fitness studio focuses on cycling, yoga, martial arts, boxing, or it is a classic space for people to come throw some weight around, you need to ensure your business is protected. Let’s get started!

Insurance Coverage for Fitness Studio Owners

General Liability

General liability coverage is, first and foremost, the coverage you need to cover incidents when your employees, products, or services may be deemed negligent or cause injury or property damage. This coverage protects your fitness business from general claims from patrons when they are on your property.

Professional Liability

This coverage ensures your business remains protected in case of claims against employees who act on your behalf. For example, trainers, physical therapists, or yoga instructors who work in your studio. 

Workers’ Compensation

You should also ensure you have workers’ compensation insurance to cover potential employee injuries while on the job. Some states contain workers’ compensation statutes that cover injury in an employer-sponsored fitness center, therefore it’s important to understand what your state covers. 

Occurrence Coverage

Occurrence coverage covers incidents that have occurred in the past. Within the fitness industry, an example would be a former patron injuring themself on your equipment and issuing a complaint years later.

Business Income & Extra Expense Coverage

Accidents happen, however, if your studio isn’t properly insured, those accidents may turn into something much larger. In the case of fires, floods, or other studio-closing events, you need the coverage to relocate your facility and continue to provide for your members.

Business Personal Property Coverage

Your fitness studio may include additional amenities such as locker rooms, pools, a sports court, and classrooms. These amenities also need coverage in the case of unexpected accidents. 

Equipment Breakdown Coverage

Coverage in the case that equipment breaks is important to have if you own a fitness facility. This coverage protects you and your business from expenses that are incurred due to the breakage of equipment. 

Premises Liability Coverage

This coverage is essential to your fitness studio, as you likely have a high volume of foot traffic. This coverage, however, not only covers potential injury within your facility, but it also covers injury if the patron gets injured on another area of the premises (for example, in the parking lot).

There are a few ways you can begin to mitigate these risks. First, your facility should provide spotters for weight lifting–– especially with free weights. You should also ensure your facility has a well-maintained parking lot and entrances/exits to limit the risk of slips and falls. 

Participant Liability & Accidental Medical Coverage

Not all fitness studios need this coverage. This coverage mainly applies to fitness facilities that sponsor tournaments or supervised competitions. This liability insurance protects from liability claims that are a result of injury during competitions.

What you need to know about employee insurance coverage

As a fitness studio owner, you may decide to hire independent contractors, trainers, physical therapists, or teachers. In doing so, you will need to make sure they have a certificate of insurance with a general liability insurance limit of at least $1 million incidental medical malpractice coverage.

Depending on how you choose to classify your employees, the insurance options may vary. If you choose to classify your employees as W-2, your trainers and other employees will be covered under your business’s liability coverage. 

It’s equally as important to understand when you can classify your workers as 1099 contractors. Many states argue that as a fitness center, you are setting appointments, schedules, and dress codes, which leads to an employee/employer relationship.

As you look to begin your journey in opening your fitness center, you need a partner who is ready and prepared to help you mitigate your risk. Contact Brenda Jo and her team at Competitive Edge to get started! 

Employee Benefits Are Still Just As Important

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Employees who have a good health insurance program are more productive, more engaged, and more attached to their company.
As you consider your hiring practices, think of ways to incentivize the best talent to join your company aside form salary increases.
In addition to health insurance coverage, think outside the box.  Flexibility to balance work and home is the most important factor for workers ages 34 and younger… Above salary, even above health insurance and 401K.If you are a business owner, this is great news. Recommendations are the most powerful recruiting tool available, so if you can use existing benefits to sell your company, you are better off.

Health insurance bonds employees to the company. 

Churn is expensive, hiring and firing takes time and productivity away from your operations.  Great health benefits are one of the many reasons people stay at their jobs.According to the Glassdoor study, the other benefits that employees appreciate are:

  • A matching 401-k plan
  • Paid leave, including sick days
  • Family leave, this includes paternity leave
  • Employee discounts

Balancing the needs and wants of your employees with your desire for productivity can be a win win.

  • Freedom & Flexibility
  • Feedback (publicly praise, privately correct)
  • Growth
  • Autonomy and ownership

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