This week, our firm is excited to collaborate with guest blogger, Sheena Fitzpatrick of Walsh Carter & Associates, LLC, based in San Francisco. Sheena is an insurance broker who routinely procures insurance for her startup and small business clients.
We met Sheena at a BNI meeting in San Francisco and instantly connected. We were so grateful when she generously agreed to contribute to our firm’s blog. In this blog article, Sheena discusses the types of insurance that business owners may want to purchase when starting their business. Below Sheena’s discussion regarding policies, we generally discuss the process of tendering a claim or lawsuit to your insurers, and an insurer's duty to defend and indemnify your business. *** Typical Insurance Policies for Emerging and/or Small Businesses By: Sheena Fitzpatrick of Walsh Carter & Associates, LLC There are many things to consider when deciding to open a new business. Whether you are deciding to open a new construction company, an accounting firm, or a vegan bakery, one thing is certain -- you should know your industry, the types of typical risks your industry typically encounters, and how to go about limiting those risks for your business. The entire premise of insurance is to protect you against the uncertainty of life. Running a business is no different, as the complexity of your company becomes more enriched so does the need for your protection. Know the "must-haves" of insurance policies to help set your business up for success: what they cover; who they cover; and why you may need it, generally speaking. Employment Practices Liability Insurance ("EPLI")
Cyber Liability
Professional Liability
Directors & Officers ("D&O")
Commercial Property
Commercial General Liability ("CGL")
*** Tendering a Claim or Lawsuit and the Insurer's Duty to Defend and Indemnify By: Smith Shapourian Mignano LLP Tendering a Claim or Lawsuit Having insurance in place is especially crucial in case your business is ever sued. Subject to coverage concerns, your insurance carrier may cover your defense costs in a lawsuit and/or indemnify your business for any losses arising from a lawsuit. For this reason, it is important to let your carrier know when your business is has been sued. The most efficient way to do this is to tender the claim or lawsuit directly to your carrier(s). If you’re uncertain how to go about doing this, you may choose to send the claim or lawsuit to your insurance broker and ask the broker for assistance in tendering the claim to the appropriate carrier(s). The Insurer’s Duty to Defend and Indemnify As a general rule of law, liability insurance usually imposes two separate obligations on the insurer:
The insurer’s duty to defend is generally determined from all of the information available to the insurer at the time of the tender of the defense, although later developments may impact the insurer's duty to defend. The insurer’s duty to defend is broader than the duty to indemnify, and a bare "potential" or "possibility" of coverage is all that is necessary to trigger the duty to defend. The duty to defend arises when the insured tenders defense to the insurer either: (1) formally, when the business delivers a copy of the claim or lawsuit to the insurer; or (2) constructively, when the business may not have actually provided the insurer with a copy of the claim or lawsuit, but the insurer had reason to know of the claim or lawsuit against the insured anyway. Smith Shapourian & Mignano, LLP has acted as both insurance defense counsel and coverage counsel in the past, and is familiar with the process of tendering a claim or lawsuit to your insurance carrier(s). We are available to assist your business during this process and/or with disputing or litigating a denial of coverage under your business’ insurance policies. Feel free to contact us to learn more. This blog does not constitute solicitation or provision of legal advice, and does not establish an attorney-client relationship. This blog should not be used as a substitute for obtaining legal advice from an attorney licensed or authorized to practice in your jurisdiction. You should always consult a suitably qualified attorney regarding any specific legal problem or matter in a timely manner, as statutes of limitations may bar your claim. 1/13/2023 11:26:08 am
It really helped when you explained the importance of getting the right insurance for your startup. I have a cousin who's starting a small business in a few months, and I'm not sure if he's talked with an insurance agent yet, so I'll ask him later when I see him. Thank you for the information on business insurance policies and what they cover.
Edwin Castro
2/26/2023 08:13:57 pm
"As much as I am shocked and ecstatic to have won the Powerball drawing, the real winner is the California public school system". No one would convince me that winning this lottery Powerball or mega millions is not something that changes the way and view of life's prospects. My name is Edwin Castro and I am from California, United States. I won the Powerball Lottery on Nov 7 2022 and I am coming to say a wonderful and big thanks to Dr Anokokudo for helping me with the winning numbers for the Powerball Lottery. I was really overwhelmed the day I contacted Dr Anokokudo to help me win the California Powerball Lottery when he instructed me what to do. The time came to play the lottery and I did and believe me, it was exhilarating. I won the Powerball $2.04 Billion and collected the lump sum of $997.6 Million and the November Powerball drawing raised a record $156.3 million for the California public school system. I am indeed thankful to Dr Anokokudo and others who helped me with his contact. Anyone who reads my comments should also try to contact Dr Anokokudo at [email protected] 5/9/2023 01:51:35 am
This blog provides helpful information on the types of insurance policies that startups and small businesses may want to consider. It highlights the importance of having Employment Practices Liability Insurance (EPLI) to protect against claims related to employment practices such as wrongful termination and sexual harassment. The blog emphasizes the significance of having insurance to protect a business from costly lawsuits. 5/9/2023 01:54:58 am
This blog post discusses important insurance policies for startups and small businesses to consider, including employment practices liability insurance, cyber liability, professional liability, directors and officers insurance, and commercial property insurance. The post highlights the types of coverage each policy provides, who is covered, and why it is necessary to have them. It is a useful resource for entrepreneurs looking to protect their businesses from potential financial losses and damages. Comments are closed.
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