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Tag Archive for: business insurance

Top Tips to Recession-Proof Your Business

in General Business Insurance, News, Workers' Compensation

Over the past several months, most business owners, and individuals alike, have heard mutterings about a recession.

Although we in no way can predict what’s coming, at Competitive Edge Insurance, we thought it’d be helpful to provide business owners with the top three tips they can take to recession-proof their businesses.

Let’s dive in; first, with an overview of what’s going on.

What Is Going On?

Many Americans might already be feeling the heat with decades-high inflation, record gas prices, and hefty grocery bills.

​​Bloomberg Economics says there’s close to a 75% probability there will be a recession by the start of 2024.

But how did this happen? And what is a recession?

What Is a Recession?

A recession, as defined by the National Bureau of Economic Research (NBER), is a “significant decline in economic activity that is spread across the economy and that lasts more than a few months.”

This period of time is when the economy contracts and business activity slows down. This can be caused by a number of factors, including a:

  • decrease in consumer spending
  • increase in taxes
  • decrease in government spending 
  • natural disaster

Businesses typically suffer during a recession, as there is less money circulating and people are more likely to save rather than spend. This can lead to layoffs, closures, and decreased profits.

As a business owner, it is important to recession-proof your business as much as possible. This means taking steps to ensure that your business can weather a recession and still remain profitable.

Contributing Factors

There are many contributing factors that have led the U.S. economy to tip its way toward a recession—inflation, supply chain issues, a nationwide labor shortage, the list goes on.

Moreover, The Washington Post notes that the Federal Reserve’s efforts to temper demand and tame prices have also been a contributing factor.

Oracle writes that “since 1950, recessions have lasted between two and 18 months.” This period can be “stressful for business owners, since they don’t know how long it will last. A business can freefall without an end in sight — if it isn’t ready.”

So let us help you prepare.

How Can You Recession-Proof Your Business?

There are many things you can do to recession-proof your business. For example, business owners can create a business emergency fund, assess their risk tolerance, reduce overhead, and more.

Minimize Workers’ Compensation Claims

One thing you don’t want in the midst of, or prior to a recession, is workers’ compensation claims being filed against your business. Why? It’s expensive.

Employers face both direct and indirect costs when a workers’ comp claim is filed.

Most obviously, when an employee is out on workers’ compensation, a business owner essentially “loses” their work. You then have to pay for another employee to pick up the slack (overtime in some cases), which can be costly.

Additionally, workers’ compensation claims can:

  • Increase your insurance premiums
  • Damage your public reputation, and
  • In some cases, a business can be penalized up to $136,532 per person by the Occupational Safety and Health Administration (OSHA) for repeated or willful violations

(Yikes, that’s a lot of money!)

This considered, it’s crucial (especially during this time of teetering toward a recession) to do everything you can to make your workplace safe, and therefore, reduce workers’ compensation claims.

Interested in learning how workers’ compensation plays out for remote workers? Read our article “What Does Workers’ Comp Look Like for Remote Employees?”

Create Trust and Safety Among Employees

Significant layoffs can already be observed across the nation. This considered, a recession can be an especially scary time for your employees.

During this time, as a business owner, it’s especially important to create trust and safety among your employees. Consider doing the following to build employee retention:

  • Keeping an open, honest line of communication
  • Listening to your employees
  • Utilizing employee engagement data
  • Offering consistent and effective feedback
  • Recognizing a job well done
  • Not letting team building fall to the wayside
  • Encouraging health and wellness and work-life balance

Invest in Insurance

The last thing you want during a recession is to get hit without the proper insurance. Typically, business profit is already top-of-mind during a recession.

If a cyber attack occurs, you receive high levels of workers’ comp claims, or an injury takes place on your commercial property, you want to be sure that you have the right insurance in place to keep your business financially protected.

Without proper insurance, a business owner may have to pay out-of-pocket for costly damages and legal claims against their company.

Additional Steps to Help

Minimizing workers’ comp claims, creating trust and safety among employees and investing in insurance are our top three tips, but there are so many other steps that you can take to help your business during a recession, such as: 

1. Diversify your revenue streams

Don’t rely on just one source of income. If possible, try to have multiple, different streams of revenue coming in. That way, if one or two of them dry up, you’ll still have money coming in from the others.

2. Cut costs where you can

During a recession, every penny counts. Take a close look at your budget and see where you can cut costs. Even small savings can add up over time and make a big difference.

3. Build up your cash reserves

Having a healthy cash reserve is always a good idea, but it’s especially important during a recession. This will help you weather any tough times and keep your business afloat.

4. Focus on customer retention

During a recession, it’s more important than ever to hang onto your existing customers. Keep them happy and they’ll stick with you, even when times are tough.

5. Invest in marketing

Marketing is vital for any business, but it’s especially important during a recession. Why? Because that’s when people are scaling back their spending and being more particular about where they spend their money. If you want to stay top of mind, you need to keep marketing.

Keep Your Eye On the Prize

It’s easy to get discouraged during a recession, but it’s important to remember why you’re in business in the first place. Stay focused on your goals and don’t let tough times get in the way of your long-term success.

As a business owner, recession-proofing your company is vital to ensuring that success.

Interested in learning more about how to keep your business safe? Read on to find out what types of insurance your business needs during a recession.

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Cyber Liability: Mitigating BYOD and E-discovery Risks

in Cyber Insurance, General Business Insurance, News

The prevalence of employee-owned smartphones and other devices in workplaces across the country has grown considerably in the last few years and shows no sign of stopping. A recent study by Bitglass found that 85% of organizations surveyed allowed their employees to use their personal devices for work functions. If it wasn’t obvious already, the “bring your own device” (BYOD) era is here to stay. While there are numerous benefits of implementing a BYOD policy at your workplace, it can be problematic from an e-discovery standpoint, should your company enter litigation.


E-discovery Basics
Electronically stored information, or ESI, can be subject to discovery, which means it can be requested as evidence in court cases. ESI is a category of discoverable information separate from print documents, and includes both structured and unstructured data such as emails, instant message logs, WordÂź documents, PowerPointÂź presentations and scanned documents.

In litigation, e-discovery is the process of identifying, collecting, preserving, reviewing and producing relevant electronic data or documents as evidence. Determining which ESI is relevant is not simple due to the lack of precedence and established standards; however, it is important to be able to quickly access the right ESI. While failing to produce all required ESI can be considered negligence, handing over too much data could mean disclosing privileged competitive information and jeopardizing corporate strategy or product plans.


BYOD’s Skyrocketing Popularity
Allowing employees to use their personal phones, laptops, tablets or other devices for work purposes has quickly become the new norm. Employees enjoy being able to use their own devices for several reasons:


· They can get more work done on their own devices with a more flexible schedule.
· They may prefer the operating systems of their own devices.
· Company-provided devices may lack the functionality that employees desire.
· Bringing personal activities into their work lives can lead to happier employees and more productivity.

Employees aren’t the only satisfied party. Employers can save money by not having to buy company-owned devices for employees to use, including technical support costs associated with diagnosing problems employees may have. In addition, many employers can save on telecommunication costs, as employees are often willing to self-fund their own mobile plans.


BYOD Litigation Risks
Allowing employees to bring their own devices can seem like a pretty good deal for both sides. However, there are inherent risks with the practice, especially from a legal standpoint. Employers must consider the following risks that may hinder the e-discovery process:

· Since you do not own employees’ devices, you do not have total control over the devices and how they’re used.
· There are many different types of data on devices, depending on the operating system, applications used, etc., and
· separating personal data from business data may be difficult.
· Data on devices can be stored in several locations.
· It is difficult to protect data on employees’ devices from harm, including theft and hacking.
· Employers cannot just seize an employee’s device for discovery—they need consent from the employee.


Best Practices for BYOD Policies and the E-discovery Process
If you have a BYOD policy at your workplace, or are planning to implement one, consider the following to ensure it is comprehensive and e-discovery-friendly:


· Have employees sign an agreement that lets them know how e-discovery requests will be handled, should the need arise.
· Consider using Mobile Application Management (MAM), which allows employers to control how applications perform on employee devices. It can control application encryption and even wipe sensitive data off the phone of a former employee.
· Consider purchasing and implementing one of the many applications capable of separating business data and personal data, making it easy for employers to locate discoverable data.
· Mandate that employee devices be configured to save certain information directly to the company servers.
· Create an acceptable use policy that lets employees know how you want them to handle company data on their personal devices.
· Prohibit employees from uploading sensitive company data to any third-party cloud storage system, such as Dropbox, Google Drive or Box.
· Sync data between employee devices and company servers regularly.
· Educate employees on best practices for keeping all data on their devices safe—the devices may contain sensitive company information.
· Mandate that employee devices be password-protected.
· Ensure that your BYOD policy is forthright and outlines the exact process for e-discovery, including a clear chain of custody.
· Ensure your IT and legal teams are on the same page. Your IT team should be able to advise the legal team on exactly what kinds of data are stored on employee devices and the best way to retrieve the data. The legal team, whether employed or contracted, should be familiar with the e-discovery process to advance the procedure as quickly as possible.
· Require compliance with your BYOD policy. In addition, keep the policy flexible to keep up with the ever-changing data landscape.
· Determine how you will handle the data on phones of former employees. Some companies remotely wipe former employees’ devices, but that can bring up questions about the ethics of deleting personal data from a device.
· Carefully decide which employees can use their own devices. BYOD may not be relevant or useful for all employees.
· Consider listing what devices are and are not acceptable. BYOD does not mean employees are free to use whatever device they wish. Employers may not want to offer support for certain devices due to the particular operating system or inherent security issues.
· Always put data security ahead of employee device security. Your company’s data should always be your number one concern.

Contact Competitive Edge Insurance today for more ways to help make sure your BYOD policy properly protects your company’s data.

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Parametric Risk Insurance: What You Need to Know

in General Business Insurance, News

What if you could have insurance that paid out when a specific event occurred, regardless of the cost of the damages? This is what parametric risk insurance is all about.

In this blog post, we will discuss what parametric risk insurance is, how it works, and who can benefit from it. 

What is Parametric Risk Insurance?

Parametric risk insurance is a type of insurance that pays out a predetermined amount of money when a specific event occurs. The benefit of parametric risk insurance is that it does not require an assessment of the damages caused by the event in order to make a payout. This can be helpful in situations where traditional insurance would not cover the entire cost of the damages.

Why Do You Need It?

Parametric risk insurance can be used to cover a variety of risks, including natural disasters, business interruptions, and even political risks. In many cases, parametric risk insurance can provide coverage that would not be available through traditional insurance policies.

One of the key benefits of parametric risk insurance is that it can help businesses to manage their exposure to risk. By having a parametric risk insurance policy in place, businesses can be sure that they will have some financial protection in the event of a major loss. This type of insurance can also help businesses to avoid the hassle and expense of making a claim on their traditional insurance policy.

What is Catastrophic Risk Insurance?

Catastrophic risk insurance is similar to parametric risk insurance in that it pays out a set amount of money when a specific event occurs. However, catastrophic risk insurance is designed to cover much more severe events than parametric risk insurance. Catastrophic risk insurance is typically used to protect against natural disasters, such as earthquakes or hurricanes. It also protects against riots or terrorist attacks.

An example of a business that has used parametric catastrophe risk insurance is an airline. In the event of a plane crash, the airline would receive a payout that would cover their losses without having to go through the process of filing a claim.

What is Parametric Home Insurance?

Parametric risk insurance has many benefits over the standard homeowners insurance. One of the main advantages is that parametric risk insurance can cover a broad range of events that are not typically included in homeowners insurance policies, such as flooding.

Another advantage of parametric risk insurance for homeowners, is the speed of a claims payment. With a standard home insurance policy, you need to have your home inspected, get cost estimates from contractors, and in some cases wait for work to be completed before receiving full reimbursement. However, parametric policies pay out as soon as the insurer can verify that the event occurred.

Another benefit is that parametric risk insurance claims can be paid out much more quickly than traditional insurance policies. This is especially useful in widespread disasters, where the claims process can be delayed for months. In addition, parametric risk insurance policies do not have deductibles or exclusions, so the process of making a claim is much simpler.

Why is Parametric Insurance Important?

Parametric risk insurance is important because it pays out a benefit when certain conditions are met, without the need for a detailed claim process. This can be incredibly useful in situations where traditional insurance would be impractical or too expensive.

Some parametric policies can provide cover for things like natural disasters, business interruption, and even death. This means that they can offer protection against a wide range of risks.

Parametric insurance can be used to supplement traditional insurance, or as a standalone policy. Parametric insurance can help to protect against unexpected events and give peace of mind in knowing that you have some financial protection in place.

Examples of businesses that have used parametric risk insurance include manufacturers, government agencies, and airlines. In each of these cases, the policyholder was able to receive a payout that covered their losses without having to go through the process of filing a claim.

What is One of the Main Advantages of Parametric Insurance?

One of the main advantages of parametric insurance is that it can help to transfer risk from one party to another. This can be particularly helpful if the party who is taking on the risk is better able to manage it. Additionally, parametric insurance can help to reduce the overall cost of risk. This is because parametric insurance typically pays out a fixed amount of money, regardless of the actual loss that is incurred. As a result, parametric insurance can help to stabilize costs and protect against large losses.

Parametric risk insurance can be particularly helpful for businesses that are exposed to catastrophic events. For example, it can be used to protect against losses that occur as a result of a natural disaster. Parametric insurance can also be used to protect against other types of risks, such as the failure of a key supplier.

How Big is the Parametric Insurance Market? 

The parametric insurance market is growing rapidly. As reported by Business Wire, “the parametric insurance market was valued at $11.7 billion in 2021, and is estimated to reach $29.3 billion by 2031, growing at a CAGR of 9.9% from 2022 to 2031.”

Why is Parametric Insurance Growing?

There are a few reasons why parametric insurance is growing. One reason is that traditional insurance can be difficult and time-consuming to file a claim with. Another reason parametric insurance is growing is because it can be used to cover a variety of risks. This type of insurance provides businesses with a way to manage their exposure to these risks.

A Final Word

Utilizing parametric risk insurance can be an effective way for your business to address and cope with risks, but it is important to understand how it works before purchasing a policy. If you are interested in learning more about parametric risk insurance, contact one of our advisors today. They will be able to help you determine if this type of insurance is right for your business.

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Don’t Create Your Own Labor Shortage

in General Business Insurance, High-Risk Insurance, News

Since even before the pandemic, millions of Americans have left their jobs. In fact, we have more than three million fewer Americans participating in the labor force today compared to February of 2020, according to the U.S. Chamber of Commerce.

So, how can you ensure you don’t create your own labor shortage as a business owner? Read on for our best tips.

Create a Strong Company Culture

What are the signs that a business has great company culture? High employee retention, transparent communication, employee benefits, employee recognition, opportunities for development
 The list goes on.

But how do you get to this level? To create a strong company culture, you should consider the following:

  • Determine what this culture looks like
  • Ask for employee input and LISTEN to what they have to say
  • Hire for culture
  • Encourage (and model!) work-life balance
  • Make sure employees know your expectations regarding culture

Of course, this is a shorthand list of things you can do. Building a strong company culture is crucial to ensuring you maintain the workforce you do have, and don’t create a labor shortage for your own business.

Ensure Your Workplace is Safe

Your workplace, regardless of your industry, needs to be safe. This includes big-ticket items like following any regulations and codes as well as small things like ensuring rugs are adhered to the floor to prevent tripping, for example.

Ensuring your workplace is safe will help increase employee retention and lower your risk of receiving workers’ compensation claims against your business. It’s a win-win.

Read on to learn more about rising workers’ compensation claims and what you can do.

Provide Growth Opportunities for Employees

What opportunities are you providing to help your employees grow? Are you paying for outside training? Seminars they’d like to attend?

Increased employee retention is one of the best benefits of a successful learning and development (L&D) strategy. In fact, according to a LinkedIn study, “94% of employees would stay at a company for longer if the business was investing in their career development.”

Implementing learning and development opportunities for employees can help:

  • Retain top talent
  • Increase job satisfaction and morale
  • Improve productivity, and
  • Earn more profit


In fact, research shows that “businesses that have actively interested and dedicated employees see 41 percent lower absenteeism rates, and 17 percent higher productivity.”

Consider: What training and development might your employees benefit from?

Invest in the Right Insurance Coverage

Of course, we wouldn’t be who we are without mentioning insurance. Having the proper coverage for your business makes for safer operations and employees.

Although the types of insurance your business needs vary on a case-by-case basis, most businesses need the following types of coverage at a minimum:

  • General Liability Insurance
  • Workers’ Compensation Insurance
  • Commercial Property Insurance
  • Cyber Liability Insurance
  • And more

Read on to learn how much business insurance should cost.

Focus On What Matters Most

Our biggest overarching rule is this: Focus on what matters most. Employee retention is all about making your workforce feel special, valued, and safe. Take some time today to think about how your specific business might achieve this.

Interested in learning more about the labor shortage? Read on to see how the California labor shortage is affecting the construction industry.

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Complying with Insurance Requirements: Construction, Manufacturing, Tech Start-Ups

in Construction, News

Insurance for your business isn’t one size fits all. As we’ve well learned, various industries have different requirements. This rings true, especially for insurance requirements regarding construction, manufacturing, and even tech start-ups.

Requirements can be regulatory or contractual. Moreover, depending on your industry you might need varying levels and types of insurance. Let’s discuss some aspects that stand across the board.

Workers’ Compensation Insurance

Workers’ compensation insurance, purchased by employers, is insurance that covers the medical costs and lost wages for employees who are injured during the course of work for the insured.

Workers’ compensation benefits and wages are provided in exchange for eliminating the employee’s right to file a lawsuit against their employer’s negligence.

Workers’ compensation insurance is required by law in California, and can help pay for:

  • Immediate medical costs (i.e. emergency room expenses)
  • Ongoing medical costs (i.e. physical therapy)
  • Partial lost wages while the employee is unable to work

Lack of proper coverage can result in fines and even criminal exposure. 

Workers’ compensation insurance is extra important in the construction and manufacturing settings, where accidents are more likely to occur. This considered, businesses within the construction and manufacturing industries might opt for higher levels of workers’ compensation to keep their employees and business safe.

General Liability Insurance

General liability insurance (GLI), also known as business liability insurance or commercial general liability insurance, “helps protect your business from claims of bodily injury or property damage that can come up during normal business operations.”

This is important for construction and manufacturing businesses where hands-on work is occurring but also for tech start-ups. According to Insureon, general liability insurance covers “the cost of legal fees and settlements if your company is sued for:

  • Client injuries
  • Client property damage
  • Advertising injuries, like copyright infringement, libel, and slander

General liability insurance is often required as part of a property lease, mortgage, or client contract.” Moreover, the cost of your GLI will depend on the level of risk your company faces.

If you don’t have GLI, medical expenses and property damages will need to be paid for out of pocket. Depending on the injury or event, not investing in general liability insurance could cost you your business.

Employment Practices Liability Insurance

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

Claims can be made for an assortment of reasons, including:

  • 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

The primary industries that are susceptible to EPLI claims include healthcare, professional services, restaurant, food services, retail, and manufacturing and construction.

Read on to find out if your construction business needs EPLI.

Cyber Liability Insurance

In our digital age today, more businesses than ever are falling victim to cyber-attacks. Having a cyber liability policy in place, for any business, is crucial to keeping your business and your clients safe. This stands even more true for tech start-ups that manage sensitive information and high volumes of data.

There is both first and third-party coverage available. Implementing a quality cyber liability policy can help pay for regulatory fines and penalties, credit and fraud monitoring services, crisis management and public relations, finding and addressing the security defect, and more.

Complying with Insurance Requirements

Complying with Insurance Requirements: Things to Note

The insurance policies listed above are not, of course, an exhaustive list of insurance requirements all construction, manufacturing, and tech start-ups need to meet; but rather, a list to get you thinking about insuring your business.

You might also need automobile liability and property damage Insurance, commercial property insurance, errors and omissions insurance (E&O), the list goes on.

Regardless, there are additional elements to consider regarding insuring any one of these three businesses. Let’s discuss some final things to note.

Occupational Safety and Health Administration

The Occupational Safety and Health Administration, also known as OSHA, has particular requirements regarding insurance as well as health and safety practices for a variety of industries.

Visit the OSHA website for additional information.

Certificates of Insurance

In any project, it’s important to make sure you have the proper insurance to protect yourself and all parties involved.

Every contract with a vendor or a customer will have an indemnity or insurance section of what they want to see from you as far as insurance is concerned. This includes documents that extend your policy to cover them. Those requirements are contractually driven, which means a certificate is necessary.

A Certificate of Insurance (COI) gives a summary of what coverages someone has, whether it be general liability, workers’ compensation, or property. A COI can also include a description of coverages that might be there or attached; such as additional insured status or waivers of subrogation.

Read on for more on what you need to know about certificates of insurance.

Contract Wording

A written contract is a printed document that is legally binding and details what parties can or cannot do. For this reason, the contractual language is extremely important. Contracts for construction, manufacturing, and tech start-ups might include hold harmless clauses and/or indemnification clauses.

Hold Harmless Clause

What is a hold harmless clause? According to Investopedia, “a hold harmless clause is used to protect a party in a contract from liability for damages or losses. In signing such a clause, the other party accepts responsibility for certain risks involved in contracting for the service. In some states, the use of a hold harmless clause is prohibited in certain construction jobs.”

Indemnification Clause

An indemnification or indemnity clause protects “one party from liability if a third-party or third entity is harmed in any way. It’s a clause that contractually obligates one party to compensate another party for losses or damages that have occurred or could occur in the future.”

For this reason, the wording in such contracts must be crystal clear.

With the influx of remote employees in current and previous years, it’s important to consider how workers’ compensation policies might change. Read on for more information on what workers’ compensation looks like for remote employees.

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What Mandating the Vaccine Might Mean for Your Business Insurance

in General Business Insurance, Health & Wellness, News

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.

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