Risk Management

If your business suffers a property loss it could cause the business to slow or close down while repairs are made. This could result in a complete or partial revenue loss depending on the time frame and the damage. From the time the loss occurs until your business is up and running again, insurance can replace your lost profits, and provide a source of money to pay your necessary continuing expenses (rent, payroll, taxes, etc.)

Business Owners Package policy, commonly called a “BOP”, contains many of the insurance coverages required by a majority of small businesses. While these policies are somewhat standardized and have certain common elements, there is great variation from insurance company to insurance company. The basic BOP offers:

• Business property (building and contents)
• Liability insurance protection for the operation of your business

This liability protection will generally include both the operation of your business at its established location and the liability from your products and completed operations.

Kevin Dahlke Insurance Brokerage provides surety bonds for the business and professional community. We work with many of the country’s top-rated surety companies to secure:

• Contract Payment and Performance Bonds
• Fidelity Bonds on Employees
• Code Compliance Bonds
• Judicial and Court Bonds (including estate guardianship and repletion bonds)
• License Bonds
• Professional Service Bonds

Our builder’s risk form is offered by some of the largest and more financially sound insurance carriers in the industry. It can be used in conjunction with your commercial general liability policy to offer protection for

• Materials
• Supplies
• Machinery
• Equipment
• Fixtures which will become a permanent part of the building, structure or project at the project site including temporary buildings and structures.

An essential coverage required by most businesses. Our program provides for both the property damage and liability protection necessary to protect a single vehicle or an entire fleet of vehicles. We offer competitive rates and have the ability to adjust these rates for businesses which have demonstrated favorable driving records and claims history.

OUR COMMERCIAL CRIME PROTECTION OFFERS A VARIETY OF SPECIALIZED COVERAGE OPTIONS:

COMPUTER FRAUD:

A specialized kind of theft wherein a computer is used to steal property form its rightful owner. This form covers money and securities along with property other than money and securities.

EMPLOYEE DISHONESTY:

Employee dishonesty is considered to be a criminal act committed by an employee acting alone or in collusion with others. Intent by the employee to cause the employer a loss and to obtain a financial benefit for the employee or someone else must be demonstrated.

EXTORTION:

Extortion is the surrender of property from the premises as a result of a threat of bodily harm to someone who is, or allegedly is, being held captive. This form covers money and securities and also property other than money and securities.

FORGERY OR ALTERATION:

Forgery involves generation of a document or signature that is not genuine. Alteration is changing a document in a manner that is neither authorized nor intended. This form insures against loss caused by the forgery or alteration of a covered item drawn against the insured’s accounts. A covered item might be a check, draft, promissory note, bill of exchange, or similar instrument.

PREMISES THEFT & ROBBERY OUTSIDE:

Section (1) covers property other than money and securities inside the premises for loss caused by actual or attempted theft. Section (2), Robbery Outside the premises, covers property other than money and securities while it is in the care/custody of a messenger.

PREMISES BURGLARY:

Premises Burglary covers property other than money and securities inside the premises. It also covers damage to the insured’s premises resulting from a covered cause of loss.

ROBBERY AND SAFE BURGLARY:

Robbery is the taking of property from a person by the threat of personal injury to that person. Safe Burglary is a specific kind of burglary that means the taking of property from a safe or vault which shows visible signs of forcible entry. This form covers property other than money and securities inside and outside the premises. Property other than money and securities is covered while outside the premises and only in the care/custody of a messenger. Coverage inside the premises is for loss or damage resulting form robbery of a custodian or from safe burglary. A custodian is the named insured or a partner or employee of the insured.

THEFT, DISAPPEARANCE AND DESTRUCTION:

Theft means any act of stealing. Disappearance results from an unknown cause of loss and lacks knowledge of whether the crime was a theft, burglary, or robbery. Destruction is the loss of certain property and is usually the result of another cause of loss. Section (1) of the form covers money and securities against loss by theft, disappearance, or destruction inside the premises. Section (2) covers money and securities outside the premises in the care/custody of a manager.

For the convenience of the insured, policies are assembled to avoid duplication across multiple policies. Coverage’s are combined into a single policy and billed as one.

• Liability
• Property
• Auto
• Crime
• Professional Liability

Certain coverage may not be combined such as workers compensation, specialty lines and bonds.

Commercial Property Replacement cost coverage offers protection for:

• buildings that you own or are responsible for insuring
• business personal property
• business machinery
• business inventory
• business data processing equipment.
• tenant Improvements in leased space

Important extensions to protect your personal effects, valuable papers and records, accounts receivable, business income and extra expense are also available. Inland Marine provides coverage for property used by a business in the field that may be in the office, on site or in transit.

This policy provides protection against catastrophic liability claims. The policy acts as an excess coverage supplementing your primary liability policies. Its limits apply in addition to that provided by underlying coverage. The “umbrella” or excess liability insurance policy, adds an additional amount of liability insurance protection to both the general liability policy and the automobile liability policy. In addition, the umbrella policy may add additional liability coverage to any other liability policies scheduled under the umbrella policy. Most package policies provide a liability insurance limit of $1 million for any one loss and $2 million in any one year. For many businesses, this limit is inadequate for real economic security. As a result, additional layers of protection in million-dollar increments are readily for most businesses.

Cyber risk is a generic term that describes the risks faced by any individual or business that uses computers, networks, the internet and email.

CYBER RISKS FALL INTO 5 BROAD CATEGORIES:

3rd party liability: 1st party damage: Theft: Product or service failure: Business interruption Cyber Risk insurance is designed for the following sectors of the e-commerce and Internet world:

• e-Professionals – providing traditional professional services over the internet
• Information Technology (Internet) Professionals – website developers, systems/computer consultants, etc
• E-commerce Companies – companies existing only on the net and “clicks & mortar” companies, and content providers such as portals, search engines and specialty providers of content
• Internet Advertisers (“Brochureware”) – traditional organizations utilizing the internet for marketing

Each of these sectors has a different set of exposures that can be cost effectively protected against with the right Cyber policy.

The considerable exposure facing the Directors and Officers of a closely-held corporation in their role as corporate managers may well exceed the assets of their Company. For virtually any corporation, the cost of defending suits against its Directors and Officers can prove catastrophic. D & O Liability Insurance is designed to help protect both the assets of the company and the personal assets of these individuals. D & O Liability Insurance helps protect the Directors and Officers of the Company against claims alleging:

• Employee discrimination or unfair employment practices
• Wrongful termination
• Disposal of corporate assets, without regard to the firm’s ability to pay for or secure the Company’s debts
• Wrongful denial or termination of credit to any customer or client
• Violation of the anti-trust laws or unfair methods of competition
• Violation of a loan covenant
• Exorbitant dividend payments or profit sharing contributions which were made by the Company
• Improper loans made to Directors or Officers

Every employer, large or small, faces the reality that it could be the target of legal action from past, present, and prospective employees. It does not matter how many employees you have, how broad your benefit plan is, or how long your employees have remained loyal. You are a potential target for an employment-related claim and need protection against the growing area of litigation. Employment Practices Liability Insurance protects your company and its leaders from claims alleging a variety of employment related offenses including:

• Discrimination Claims
• Sexual Harassment
• Wrongful Termination
• Whistleblower Claims
• Other Employment-Related Claims

Businesses often wish to obtain a second opinion from an experienced, objective source that does not stand to gain from the recommendation provided. Fee-based analysis fulfills that need by providing Risk Management & Insurance analysis that you the client can then adopt with the insurance carrier of your choice. After agreement concerning the service(s) to be rendered, an hourly rate will be quoted along with an estimated time factor. A report will be generated for discussion with management.

GENERAL LIABILITY INSURANCE

There are many risks you take as a business owner including damage to property and people due to unforeseen accidents, lawsuits that result from such accidents and mistakes made by yourself or by employees. To lessen the risk of losing money and business assets, holding general liability insurance is a must for your company. One of the biggest risks as a business owner is the threat of a lawsuit. Legal fees can be overwhelming and may be something you have to face while running your company. Your liability insurance will protect you from many of the most common types of lawsuits. The general areas of protection you can expect in your policy include, bodily injury,  property damage, personal injury, business premises,product liability, completed operations and , medical payments.

BODILY INJURY COVERAGE

Cover the costs associated with an injury to a person when your business is at fault. This could include a slip and fall accident in your shop, a bad reaction to a product you sell, or even mental suffering caused by your company. For any harm that is caused by someone associated with your business or any object or place under the control of your company, you are liable for resulting medical and legal expenses.

PROPERTY DAMAGE COVERAGE

Affords protection from financial and legal expenses when your business is at fault regarding damage to someone’s property. If you provide services in the client’s home, for example, anything that you or your employees damage while there would fall under this category. It also includes coverage for damage done to property that occurs on your business premises.

PERSONAL AND ADVERTISING INJURY COVERAGE

Like property damage and bodily injury, this coverage protects you from expenses that arise from legal claims and lawsuits. Suits covered by personal and advertising injury include slander, libel, discrimination, and other similar claims. For example, a customer could accuse you of invading their privacy or slandering their character. If you are a landlord, a tenant may claim wrongful eviction. Advertisement injuries are specific to claims that arise as a direct result of your business’s advertising. A third party can, for instance, claim that you have slandered or libeled them in a print, radio, internet, or television advertisement for your company. You may also be accused of infringing on an individual’s or another company’s copyright or trademark.  You should be aware, however, that you will not be covered for instances in which you or your business knowingly infringed on a copyright or used false information to slander or libel a third party.

BUSINESS PREMISES PROTECTION COVERAGE

With a general liability insurance protection policy in place for your business, you can rest easy knowing if a client stumbles while on the premise of your company and must go to the hospital, general liability insurance covers the related hospital bills. Accidental injuries and property damage can happen outside of your office or retail location as well. If customers are injured due to activities your company has in progress at an offsite location, general liability insurance will cover the expenses involved with those accidents as well.

PRODUCT LIABILITY COVERAGE

General liability insurance is critical whether you simply handle the products or you actually sell or manufacture them, general liability coverage helps protect you when something goes awry with those products.  For example, a salon may find that their customers have a reaction to a new shampoo product, or an auto repair shop may find that a part that they have been selling and installing is defective.

COMPLETED OPERATIONS COVERAGE

There is the potential that you can be held liable for the injury or damage to your customer or their property due to your product or service.  For example, if a veterinarian’s office gives a customer’s dog a flu shot, and that animal has a severe reaction to the medicine that causes harm to the animal, general liability coverage can help protect your business from the associated expenses and potential legal fees. Completed operations coverage is part of general liability insurance, and it is designed to help protect you and your business assets in the event that work you completed somehow brings harm to your customer, or damages the customer’s property.

MEDICAL PAYMENTS COVERAGE

Another important part of your liability insurance is the medical payments portion. Medical payments coverage helps you in the event of a minor injury for which your business is liable. It can cover the medical bills that result from these injuries to avoid a lawsuit which would be even more expensive. Any accident that causes minor harm and occurs at your place of business or at a secondary location at which you are conducting business is covered under this portion of your liability insurance.

The business world is truly global. With this new reality the business traveler is often exposed to both business and health risks not covered by standard insurance policies. As U.S. companies expand into the global marketplace, their risk also expands. The international insurance policy is designed to address these exposures. International insurance is recommended for:

• U.S. citizens moving, living or traveling frequently abroad.
• Companies with employees in one or more foreign countries.
• Foreign nationals visiting the U.S. or any other country .

Protection against the possibility of personal seizure from outside an insured premises. This includes being forced to return to the premises to open the safe or provide information to do so.

Ocean marine insurance is designed to cover various hazards related to the movement of goods across the ocean. The first and obvious protection that can be provided is for the cargo itself. This protection can be provided to the seller/shipper or to the buyer. Where ownership of, and responsibility for, the cargo are assumed crucial in determining what coverage is needed. Most property policies do not provide adequate coverage for property in transit domestically or internationally. For businesses where goods being shipped is a risk, special coverage is available through cargo and transit policies.

PRODUCT LIABILITY INSURANCE covers businesses against potentially catastrophic product-related events:

• Compensation awarded as a result of damage to property or personal injury caused by your product.
• Unforeseen circumstances, such as product faults your quality control system couldn’t trace.

Please note that if you simply make an inferior product, you may be unable to make a claim, or even receive insurance coverage. Bad workmanship is not covered either. Before issuing a policy your insurer will want to know the following:

• Manufacturing or services are conducted according to industry best practice
• Staff are adequately trained
• Equipment and systems are appropriate, up to date and well maintained

Professionals unlike other services, have a unique characteristic – they possess specialized knowledge, training and skill level and are expected to exercise a higher degree and standard of care in their particular field or practice as a result. Errors and Omissions Insurance (also known as Professional Liability Insurance and Malpractice Insurance) generally provides coverage in situations in which you are sued for negligence or alleged negligence in the execution of professional duties. Our professional liability policies provide liability coverage for claims arising as a result of alleged negligence, errors or omissions while performing or rendering professional services even if the allegations are groundless. In addition the policy will pay any judgment up to the policy limit of coverage.

My risk managent philosophy stems from the premise that the best way to reduce your insurance costs is to minimize the need for insurance. This is achieved by employing a diagnostic approach to insurance, including the following steps.

• Complete operational and current insurance coverage review
• Review of contracts with suppliers, customers & leases as it relates to the insurance provisions
• Assistance with negotiations with suppliers, customers & leases in insurance matters
• If called for establishment of an insurance logistics control including insurance specifications
• Work to make your risk management an offensive strategy rather than an defensive overhead item

After review of your operations and current insurance you will need to make decisions in the following areas:

• Avoidance of Risk
• Assumption of Risk
• Transfer of Risk

We will ensure that operationally you avoid whatever risk possible. Risks that have finite cost that you feel comfortable with will be assumed. Some of your risk may be, or has been transferred by contract, to suppliers, outsource partners and/or sub contractors. For situations that cannot be transferred or assumed, insurance with a suitable carrier will be proposed. I have knowledge of insurance markets by industry, operations by industry type and the typical hazards surrounding them. Each business is different in management and operational philosophy. Kevin Dahlke Insurance Brokerage has preferred relationships with most of our insurance underwriters, allowing us the flexibility to better meet your needs. While most businesses operate in similar ways, no one business is identical to another and as such, no one insurance program will work for everyone. Customized underwriting to fit the client allows for confidence that your assets and work are protected. Because businesses present unique exposures for insurers, it is difficult to generalize concerning coverage’s. The categories of policies listed below are only an outline of those available through our carriers.

• Bonds
• Builders Risk (Course of Construction)
• Business Owners Package (BOP)
• Business Interruption
• Commercial Automobile
• Commercial Crime
• Commercial Package Policies
• Commercial Umbrella
• Directors & Offers Liability
• Employment Practices Liability
• Fee Based Consulting
• International
• Kidnap, Ransom & Extortion
• Ocean Cargo & Transit
• Property Real & Business Personal
• Professional Liability
• Product Liability
• Specialty Lines & Events
• Workers Compensation

Whatever your commercial insurance needs, we can design a protection program that’s right for you.

Whether planning a small wedding, holding a large rock concert, or organizing a local flower festival, Special Event Insurance ensures that you are covered against unforseen events that could turn the Big Day into a Big Nightmare. Coverage for the serving of food and alcohol (with proper licensing), bodily injury or property damage on the site of the event

Workers Compensation is a mandated insurance coverage that is administrated by each state in accordance with their own set of rules and guidelines. State law requires that every employer provide Workers Compensation insurance on their employees. This insurance provides coverage for accidents or disease arising from employment as prescribed by state laws. Workers Comp Benefits can also include lost wages, medical expenses, and permanent disfigurement/disability payments.