Most employee errors are simple work-related mistakes that can be easily fixed. However, without the proper precautions in place some seemingly-innocent employee errors can lead to costly consequences. A minuscule error such as a typo in a contract or a program’s code or a missing signature on a document can turn out to have dramatic financial repercussions for a business if left unchecked.

Many employee errors are considered the result of “employee misunderstanding,” which is defined as; mistakes caused by employees’ misunderstanding or misinterpreting of operations, job functions, and policies. Often, these mistakes can be reduced by implementing better communication efforts. 

Human error is unavoidable. As an employer you don’t want to punish employees for every single accident they make, but you also don’t create a workplace environment in which mistakes are occurring frequently. Business owners have a responsibility to protect their operations from as many preventable financial risks as possible in order to remain profitable and successful. Below are some of the steps management can take to reduce costly employee errors.

Assess and Document Errors When They Happen
Before you can take precautions to reduce costly employee errors, it’s helpful to know what the most common errors are for your particular business. Document employee errors and the results of said errors – even if no performance management steps were taken – to give you a foundation to make necessary changes in policies and procedures or for future training opportunities.

Get Rid of Unnecessary Stress in the Workplace
One of the main reasons employees make mistakes is because they are stressed and/or rushing to finish their work. Ensure your employees aren’t constantly being made to compete against each other or aren’t being given unreasonable deadlines to meet.

Set Forth Clear Policies and Procedures
Most errors can be prevented just through proper training and enacting clear policies and procedures. If there are tasks that seem complicated, create a checklist to help employees self-audit themselves and ensure they are submitting error-free work.

In some cases there may be an employee who still makes frequent mistakes regardless of the steps taken by management. When the decision is made by management to let an employee go because of their performance, it can potentially result in claims against the company. Management liability insurance, also called directors and officers coverage, can help protect against financial loss resulting from these types of claims, pay for legal fees and indemnity payments for settlements or losses in court and give employers one less costly error to worry about.

If you are interested in Management Liability Insurance or E&O Insurance, click here to speak with one of our insurance professionals. 

Source: https://www.errors-omissions.com/

Anyone who has watched the news of a major hurricane or another intense storm has seen the aftermath of flooding. According to the Federal Emergency Management Agency (FEMA), flooding is the number-one natural disaster in the United States. So, how do I know if I need flood insurance over and above what my current homeowners policy covers?

Given flood’s #1 status, you might assume a lot of people have flood insurance—but that’s not the case. FEMA statistics from the National Flood Insurance Program show there are more than 5 million flood insurance policies in effect, nationwide. Just one inch of water in a one-story, 1,000 square-foot home can cost more than $10,000 in damages. FEMA has a cost-of-flooding tool to get a ballpark idea of what a little bit of water might mean for your home.

How to Be Sure You’re Insured Against Flooding
Just because you have a homeowners insurance or renters insurance policy doesn’t mean you’re covered for flood damage. Most policies don’t include flood coverage. Congress enacted the National Flood Insurance Program in 1968 as a way for homeowners to get that protection. If you’re considering flood insurance, it might also be a good time to consider your overall homeowners insurance needs. There are many factors to consider when deciding how to spend your insurance budget.

Do You Need Flood Insurance?
If you live in a known flood-risk zone, certainly, you need flood insurance. It’s likely a requirement to get flood insurance as a contingency of purchasing your home. But even if you don’t live in a high-risk. flood zone, flood insurance is still a good thing to consider; more than 20 percent of flood insurance claims are made by policy-owners who live outside of high-risk zones. In fact, 98 percent of the counties in the United States have been hit by flooding. FEMA has another handy tool that can show the history of flood risk and costs for your state.

Don’t Depend on Government Emergency Funds
The emergency relief funds you hear about aren’t simply a spigot of money that gets turned on when it floods. First of all, it requires a presidential declaration of disaster (flood insurance can be paid out without a declaration). And then there’s the money itself. It might come in the form of a loan that needs to repaid, or you might receive a FEMA disaster grant, which pays you about $5,000 on average. With the average flood insurance claim payout coming in at more than $40,000 (money that doesn’t have to be repaid) the wisdom of a flood insurance policy becomes fairly evident.

What Does Flood Insurance Cover?
FEMA’s National Flood Insurance Program (NFIP) comes in two types: coverage for your building and coverage for your building’s contents.

• Building Coverage: The maximum building coverage you can buy is $250,000 to cover such things as walls, floors, heating and cooling systems, large appliances and cabinets.
• Contents Coverage: The maximum contents coverage you can purchase is $100,000 to protect such things as clothing, furniture, small appliances and personal items.

Those are just a general overview of the coverage available to homeowners and renters. Higher levels of coverage are available for businesses. 

For instance, there will most likely be separate rules regarding both building and contents coverage for your basement. Policies can also differ in the way they treat personal property such as original artwork and items of particular personal significance. Also important is to understand what “flooding” means in the context of your policy; it doesn’t just mean “water in your house.” Flood insurance is intended to cover water damage that is the direct result of a flooding event. If your sewer line simply backs up into your home, for instance, that is not covered under flood insurance. Take a look at this coverage guide for more details

How to Buy Flood Insurance
 A good place to start to speak with an insurance professional at USA Mutual Insurance. NFIP insurance comes with an average premium is $700 per year, but the only way to know your actual costs (it can be much lower in low-risk areas) is to speak with an insurance professional about your individual needs.

NFIP is Not the Only Option
Most of the flood insurance in effect in the U.S. is NFIP insurance. But there are private policies available for people who don’t find NFIP an attractive option. For those who require a higher coverage level than NFIP offers, there is private insurance. There are advantages and disadvantages to going the private route. But possibly the most important disadvantage is private flood insurance is a fairly young market that has yet to stand the test of time against Mother Nature.

Flood insurance is one of those things people tend not to miss until they get caught without it. The world of homeowners and renters insurance is full of possibilities and it’s up to each of us to weigh our personal risks and make the best, most-informed decisions possible within our personal means.

If you have any questions regarding flood insurance or any other insurance questions, please click here to speak with one of our insurance professionals.