The Fiduciary Responsibility of Staffing Firms

According to the experts at World Wide, any individual or individuals that design, manage, or administer benefit plans to employees are subject to fiduciary liabilities. Individuals and/or employers that are authorized to administer any aspect of a plan, whether health and welfare, pension programs, profit-sharing, savings, or otherwise, can be held liable when a breach of duty is suspected or alleged.

The Challenge for Staffing Firms

Those working for a staffing agency find themselves in a unique employment situation. While an employee may be filling a specific role with one company, the individual is solely employed by the staffing agency. As a result, the administrative team at the staffing agency is responsible for overseeing the benefits to which an employee is entitled. Due to the Affordable Care Act, staffing firms have a potential requirement to extend certain healthcare benefits to their employees.

The Potential for Litigation

Staffing agencies must follow a mandate to both offer minimum coverage and make it affordable, either using fully or partially self-funded plans. These employers must keep up with coverage offerings, premium differentials, auto-enrollment, wellness incentives, W2 reporting, and more. All employees must receive timely communications concerning plan options and alternatives as well as the ongoing administration of their benefits. Any error or oversight, no matter how small, presents a fiduciary liability.

Risk management in this area includes using automated processing to help reduce human error, as well as carrying an insurance plan that addresses fiduciary duties.

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What Is Tail Insurance and Why You Need It

Most professionals understand the importance of liability coverage or malpractice insurance. If you are in an industry where you are at risk for lawsuits or litigation, then you may want to consider tail coverage.

What Is Tail Coverage?

A tail policy or an extended reporting period endorsement provides you with a way to report claims after your policies expire. This is not an extension of your policy period but instead a safety net in case you face any claims against you after your policy expires.

Do You Need Tail Coverage?

Say that you leave your current job and your insurance expires. This might not seem like a big deal at first, but then imagine what could happen if someone files a lawsuit against you for work that you performed at your last job. For instance, if you were a lawyer and you advised a client and he or she filed a lawsuit after you left the firm or your insurance was canceled. You would have to pay for legal fees on your own. Tail coverage protects professionals when this happens. Your insurance may expire, but you still have coverage for work that you already completed.

Tail coverage policies are a safety net. They provide you with the reassurance that you can handle any lawsuit or liability claim that comes your way.

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Paying the Price for Someone Else’s Mistake

As a business owner, you are responsible for everything that goes on in your business, even if it means an employee or a contractor you hired created a disaster. Contingent liabilities are the incidents that occur outside your scope of direct control but yet you and the business are financially responsible for. No matter what kind of safety policies you put in place or how thoroughly you stress care and quality in daily operation, you can still find yourself being sued for someone’s mistake.

Same Coverage, Different Name

Contingent liability insurance is a way to protect your company from the financial fallout of dealing with employee, contractor, or agent error. It might also be referred to as vicarious liability or indirect liability. Regardless of what name it goes by, the premise of liability means you are legally responsible for another person’s poor work or wrongdoing according to the workings of legal relationships. Employees are generally the biggest risk with vicarious liability, and whether or not they were abiding by company policies, their actions are pinned on the company.

Should a customer decide to sue your company, you could be looking at thousands and upwards of million dollars in legal fees, lost productivity, settlement costs, and reputation management efforts. An insurance plan addressing vicarious liability helps offset these costs, keeping your business from going under.

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Boat Insurance Coverage and Costs

If you’re trying to obtain boat insurance cost estimates, you’ve probably seen that prices and coverage can vary greatly. Costs can run anywhere from $300 to over $1,000 per year, depending on a number of different factors. For example, how frequently you use the boat, the type of boat you have, your driving history, and what area you reside in will all have an impact on your insurance costs. The type of coverage you select will also impact costs, but it’s very important that you understand what kind of coverage you’re getting.

Liability

Liability refers to anything that’s determined to be your responsibility. There are two primary types of liability insurance:

Bodily Injury (damage to a person)

Property Damage (damage to an item)

Medical Expenses

You may be held responsible for medical bills if someone in your boat gets hurt, even if you’re not at fault.

Uninsured Boaters’ Coverage

Not everyone has insurance, and if you get hit by someone who doesn’t, this coverage will handle any related expenses.

Personal Property Coverage

This coverage can be used to replace all kinds of items that could be damaged in a boating accident. From boating equipment to luggage. Again, your boat insurance cost will vary depending on what type of insurance you select and the levels of coverage you choose, but it’s important to understand your coverage.

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