Commercial Insurance

5 Most Common Business Lawsuits

Posted on by Aspen Insurance Agency

The United States are a litigious society: every business must be aware of and protected from suits brought for any number of reasons. However, there are five types of suits more common than all others. Most, though not all, may be covered by insurance.

1. Employment Discrimination and Wrongful Termination

Many lawsuits filed against businesses are based on allegations of discrimination, harassment, retaliation, or wrongful termination. Most workers are protected from these acts by federal anti-discrimination laws, including:

  • Title VII of the Civil Rights Act: Bars employers from discriminating against workers based on sex, race, religion, color, or national origin.
  • Pregnancy Discrimination Act: Prevents employers from discriminating against a woman because of pregnancy or a related condition.
  • Equal Pay Act: Requires employers to pay men and women the same wages if they perform equal work in the same workplace.
  • Age Discrimination in Employment Act: Prohibits employers from discriminating against employees ages 40 or older based on their age.
  • Title I of Americans With Disabilities Act (ADA): Prohibits discrimination against qualified employees who have a disability.

Many states have enacted their own anti-discrimination laws protecting workers. Both state and federal laws apply to applicants for employment as well as employees.

Harassment – Retaliation – Wrongful Termination

Harassment and retaliation are forms of discrimination. Harassment is defined as unwelcome conduct based on race, color, religion, sex (including pregnancy), national origin, age, disability, or genetic information. In a harassment claim, the alleged perpetrator is often a manager or co-worker; the plaintiff claims they reported the harassment to the employer who failed to stop it.

Retaliation is the termination, demotion or other action taken by an employer to punish the employee for filing a discrimination complaint or lawsuit.

Wrongful termination is firing an employee in violation of the law. Most wrongful termination claims against employers are based on allegations of discrimination, for instance firing an employee due to their age.

Small businesses are typically more vulnerable to employment-related lawsuits. Many small companies do not employ human resources professionals to ensure internal personnel actions comply with federal and state laws.

Claims alleging discrimination and other employment-related acts may be insured under an Employment Practices Liability (EPL) policy.

2. Discrimination Suits Not Based on Employment

All discrimination suits are not always brought by employees. Suits may be filed by customers, suppliers, patients, vendors, and other individuals with a connection to the business. For instance, a foreign-born customer sues a restaurant for discrimination alleging the wait staff made derogatory remarks about her native country and then refused to serve her.

Some EPL policies cover discrimination claims filed by individuals who are not employees.

3. Wage Law Violations

Many lawsuits filed against employers are based on allegations that the employer violated a federal, state, or local wage law. These laws are collectively called wage and hour laws.

The Federal Labor Standards Act (FLSA) sets the federal minimum wage. It also governs child labor, recordkeeping, and overtime pay. The FLSA creates two categories of workers, exempt and nonexempt. Generally, nonexempt employees are eligible for overtime pay while exempt workers are not. Many states and municipalities have enacted their own laws regarding wages and overtime pay.

Wage and hour suits are often based on claims that the employer failed to pay either the minimum wage or overtime pay. Workers may also contend that the employer avoided paying overtime by misclassifying them as independent contractors.

Suits based solely on allegations of wage and hour law violations are not likely to be covered by insurance. These types of law suits are not covered by general liability policies and are specifically excluded from employment practices and directors and officers liability policies.

4. Torts

Many suits filed against businesses by third parties are based on torts: violating a person’s civil rights. Two types of torts may lead to lawsuits against businesses: unintentional torts (negligence) and intentional torts.

Negligence committed by a business owner or employee may lead to an accident that causes personal injuries or damaging personal property. The injured party may sue the business or the employee for bodily injury or property damage. Intentional torts like false arrest and wrongful eviction can also generate suits against businesses.

Claims against a business for bodily injury or property damage may be covered under a general liability policy. Claims based on certain types of intentional torts are also covered by liability policies under personal and advertising liability coverage.

5. Breach of Contract

A business owner breaches a contract when he or she fails to comply with its terms. Most claims based solely on breach of contract are not typically covered by liability policies. Employers still may be able to avoid the risk of non-performance through the purchase of a surety bond.

We recommend discussing risk management and mitigation protection with your Aspen Insurance Advisor who can give trusted advice on protections for yourself and your business through small business insurance.

Aspen Insurance Agency is in Denver, Colorado, and services clients nationwide. We are a family run business working with multiple insurance carriers to offer our customers the coverage they need at the lowest possible cost. We offer a wide range of personal, commercial, and professional insurance to residential and commercial customers enabling the cheapest rates available. Call to speak to one of our insurance professionals and see how painless insurance shopping can be.

Aspen Insurance Agency Named As One of the Best Insurance Agencies in Denver

Posted on by Aspen Insurance Agency
Best Insurance Agencies in Denver

Aspen Insurance Agency was recently awarded and named as one of the Best Insurance Agencies in Denver for 2020, by Expertise. We are thrilled to receive this recognition and continue to remain committed to delivering the best customer service experience for our clients.

Although we were founded in Denver, Aspen Insurance Agency continues to support clients nationwide. Check out all of the states that we do business in here.

Thanks for the support, Denver- We appreciate your business!!

Interested in learning more about the services we provide?

Request a Quote from a Licensed Agent or give us a call today!

Commercial Business Insurance Saved My Company

Posted on by Aspen Insurance Agency

By: Jennifer Hanzlick, Owner of Clutter Trucker

How a Commerical Insurance Policy Saved My Business
Let’s face it. Unless you work in the insurance industry, you probably get bored stiff whenever someone brings up the topic. Plus, whenever you are in a position where you must purchase a policy, like for your car or home, you might skip through the fine print, ask for “minimum legal coverage” to keep the state or your mortgage holder happy and sign the forms. I used to be that way too, until I became a business owner.

Reading the Fine Print Pays Off
After putting my life savings into equipment, supplies, a lease contract for office space, and advertising, I quickly realized that insurance coverage was my best friend. How did that happen? Well, for starters, I decided to read the fine print of the business insurance policy that was in front of me.
It took a couple of hours, and a huge magnifying glass because the policy documents were not online. But the effort was worth it. I soon discovered that this inexpensive policy included financial protection for me in all sorts of situations. So, I opted for what’s called a “BOP” or a business owner’s policy.

It cost a bit more than minimal coverage but offered protection against things like property theft, equipment breakdown, employee accidents, data hacking, business interruption, general liability claims, and much more. The BOP is a smart way to get an entire package of insurance coverage at a reasonable cost because you’re essentially buying policies “in bulk,” the way you’d save at a wholesale club if you purchased a 10-pound jar of peanut butter.

That was the first eye-opener for me: reading the policy cover-to-cover. The small amount of money I spent for the coverage protected my life savings, in other words, my business, from just about every type of accident or case of bad luck under the sun.

Don’t Let Stolen Equipment Ruin Your Day
The next thing that turned me into a “true believer” in the power of insurance, was something that happened to me on an otherwise beautiful summer day.

After cleaning a rather large home on one of the first jobs I had after opening my company’s doors, my co-worker and I noticed something. During a three-minute interval, while we were finishing up client paperwork, about $4,000 worth of equipment was snatched from our truck. Someone had been watching us, sneaked up to the vehicle while we were occupied, bashed out a window, and made off with two very pricey cleaning machines.

What’s the good news? The commercial property section of my insurance policy covered that stolen equipment. Of course, I filed a police report, but the items never showed up. However, after I provided all the documentation to my insurance carrier, they reimbursed me within 24 hours.

That policy saved me from shelling out several thousand dollars on new equipment when my company was new, and I didn’t have many clients yet. It would have been an extreme financial hardship for me if I hadn’t had commercial property coverage within my BOP, business owners policy.

My Comeback From a Hack Attack
Since then, my BOP insurance coverage has saved the day in other, smaller ways. Once, for example, my company lost all its online access for two days due to a widespread server shutdown. That meant our computer systems, which we use for quality control, client follow-up, and job tracking were completely down. A two-day business interruption like that can be costly for a small entrepreneur with a loyal client base and a small workforce.
However, my Business Owners Policy, reimbursed us for financial losses incurred due to the downtime covered under the cyber insurance clause of the insurance contract. It turned out that the server failure was due to a massive computer hacking incident. Cyber insurance covers situations just like that.

Long story short: an anonymous hacker was able to knock out thousands of computers in a four-state region but couldn’t stop my business from continuing to make a profit. Cyber insurance is one of the newer types of business coverage and is well worth it, in my opinion. Hacking is becoming more common, so it’s a good thing the insurance industry offers this kind of protection.

Sleep is Sweet, and Highly Underrated
Never underestimate the power of insurance coverage. If you’re like me, it could save your financial life and help keep your company rolling along and earning a living no matter what happens. The other bonus is hard to prove, but I believe it: if you have an excellent business insurance policy you’ll be able to sleep very well at night.

I think insurance professionals should add restful sleep right into the paperwork as a policy benefit. All joking aside, if you own a business, shop for the best coverage you can get. You won’t regret it.

Jennifer Hanzlick is an Entrepreneur, Speaker and Hoarding Expert. She was inspired to create a business to help people remove the junk and clutter from their homes. She found out many people are overwhelmed with the amount of clutter or junk in their homes. They want to get rid of it but don’t know where to start and need extra help. And this is how Clutter Trucker was born!

Disclaimer: This post is to be used for informational purposes only. Each person should consult their insurance or business advisor with respect to matters referenced.

If you are searching for Business Insurance reach out to us. With a variety of coverage options such as commercial auto, general liability, cyber liability, commercial insurance for truckers, business owner policies and much more we are able to provide you with a policy specific to your company’s needs.