Posts Tagged ‘Employment Law’

OCCUPATIONAL HEALTH & SAFETY (OHS) – FINES, SURCHARGES, EXPENSES AND CONVICTIONS – WHAT DOES THIS HAVE TO DO WITH INSURANCE?

August 15, 2014

Through the years in which I have been working in the insurance business as a broker, it became apparent to me that most clients will simply view his/her broker as a salesman, not as the professionals we all strive to be. That was why I focused my career in the consulting field of Risk Management. I realized that insurance won’t always do what I felt it did, previously, for clients and what we all would say it was designed for, ensuring the client is placed back in the same position following a loss as that client was prior to the event.

Some insurance companies have gone on to do surveys and express results that show only 50%, for example, of any business losses are ever covered by insurance! YES, only ½ of your losses can and will be reimbursed by the purchase of an insurance policy.

So what does this mean YOU should then do? Well, finding a professional and reputable insurance brokerage who understands Risk Management can be a wonderful step; but I know many businesses will still feel they are dealing with a “salesman”, someone who derives financial reward from the selling of an insurance policy to YOU! This may be quite accurate, in a large number of situations. I will gladly consult with businesses within my “licensed” territory (ONTARIO, CANADA) on a “fee” basis (but even then I will – if you read further – offer something SPECIAL to YOU) but also perform further reviews outside my territory for those who understand my expertise may be limited by some restrictions of knowledge (e.g. Workers Compensation laws in the various US states) that would need to be supplemented by other experts.

As a former retail commercial banker in both Canada and the USA and a licensed Life/Accident & Sickness insurance agent (“we” in the industry prefer the term broker since it represents multiple insurance company representation) and Property/Casualty broker in both Canada and US, I have been working for my clients, in a manner different than usual, for 10+ years. In reviewing leases, contracts, loan agreements and other legal documentation – supplemented by financial statements to ensure the client knows what all their major risks of conducting business are – I can identify and advise whether it is suitable to “retain” or “transfer” various identified business risks to others. The definition of retention includes assuming all risks by self-insuring all or a portion through deductibles, under-insuring, etc. Most businesses are not aware of the many risks they face nor whether it is even possible or if they have insurance to rectify a loss when it occurs. Transferring one’s risk may be through the purchase of an insurance contract that transfers the risk of loss to an insurance company, pool, captive or obtaining a Hold-Harmless Agreement, etc.

In my own region, for example, I will highlight some possible circumstances that might relate to your own business and real risks you know about and, without pointing fingers, tell you why you might want to talk with me. After reading this statement, if you don’t contemplate contacting me then do discuss with your insurance professionals and get a second opinion because many, in my field, are NOT aware of the availability of insurance for these expenses – (TORONTO (Canadian OH&S News) Penalties for workplace safety violations in Ontario are harsher than any other province in the country, threatening employers and supervisors alike with thousands of dollars in penalties at the least, and jail time for the most egregious of errors.).

I know many of us are familiar with Bill C-45 – http://www.ccohs.ca/oshanswers/legisl/billc45.html – but if, for some reason (possibly you are not a Canadian and immigrated here) then you should be. Penalties for violation can result in substantial fines and/or jail terms. Insurance will never suffice if a jail term is meted out by the judicial system but the legal defence costs, while you are assumed innocent until proven guilty, need to be paid and here is where some form of insurance may meet your need.

Canada: Canadian Employers Hit With Record Setting Occupational Health and Safety Fines – is $750,000 excessive or fair for a family-run corporation? http://www.mondaq.com/canada/x/269016/employment+litigation+tribunals/Canadian+Employers+Hit+With+Record+Setting+Occupational+Health+and+Safety+Fines+The+HR+Space

BOLTON, Ontario—A 67 year old contractor lost his life while making repairs to a reach truck. http://www.mmdonline.com/safety-and-security/contractor-dies-repairing-reach-truck-77870/

TORONTO, ON – Symtech Innovations Ltd., a construction business in the commercial and industrial sectors, has been fined $90,000 after a worker died following a fall through a skylight. http://news.ontario.ca/mol/en/2014/08/symtech-innovations-ltd-fined-90000-after-worker-dies.html

WOODSTOCK, ON – Erie Greenhouse Structures Inc., a company that produces and installs greenhouses and related equipment in Tillsonburg, has been fined $73,000 after a worker lost part of a finger in machinery. http://news.ontario.ca/mol/en/2014/08/erie-greenhouse-structures-inc-fined-73000-after-worker-injured.html

BRAMPTON, ON – Action Trailer Sales Inc., a company that sells, leases, maintains and repairs all types of semi-trailers, has been fined $50,000 after a worker was injured while changing equipment on a trailer. http://news.ontario.ca/mol/en/2014/05/action-trailer-sales-inc-fined-50000-after-worker-injured.html

BRAMPTON, ON – General Kinetics Engineering Corporation, a manufacturer of vehicle suspension systems, has been fined $50,000 after a worker fell from a ladder. http://news.ontario.ca/mol/en/2014/06/general-kinetics-engineering-corporation-fined-50000-after-worker-injured.html

Now what is the “something SPECIAL to YOU” that I offer? As a consultant, I would normally charge a fee for service but anyone – within Ontario, CANADA – who contacts me and mentions this Blog will be entitled to 1 hour of FREE analysis and feedback, without any further obligation. I can be reached by e-mail – larryewinsurance@gmail.com and I might call this my “end of summer” special but the sale won’t be limited to a timeframe if YOU mention to me at any other time since I am hoping that my Blog is the reason and wish to promote blogging as an effective tool in my business promotional efforts. If you don’t live/operate from Ontario, CANADA and still wish to discuss, I am very happy to see if there might be an opportunity to assist you – again at no cost, but it may NOT be 1 hour FREE but a shorter time.

Employment Law, Wrongful Termination/Dismissal & Employment Practices Liability Insurance

August 7, 2013

Often, writing a blog can be very challenging.  What should I blog about?  So, I procrastinate – doesn’t everyone when a task seems tedious?  This time, however, I have to admit that I can hardly wait to write – just trying to arrange my thoughts in an orderly fashion so you will better understand me.

An opportunity arose during this past year whereby a client purchased, upon our advice, an insurance policy for Directors’ & Officers’ Liability (D&O) AND Employment Practices Liability (EPL) – a very wise decision.  Why?  Well, first I’ll explain that a wonderful online acquaintance of mine, a legal expert whose sole practice is devoted to Employment Law, tells me that “defending any claim will easily involve tens of thousands of dollars in legal fees” so I have been targeting those businesses who can least afford this type of event taking place, small to medium sized incorporated entities. 

Now, it is time for me to tell you about my client.  The employer/owner, upon seeing a long-term employee abuse his trust, stealing inventory from him, decided to suspend the employee until all circumstances were properly investigated, documented and, seemingly, took adequate steps to terminate or dismiss that employee.  Guess what?!  The employee met with legal counsel and has now presented his former employer/my client with a lawsuit for $100,000!  YES, that’s right – the former employee is now suing for Wrongful Dismissal/Termination for this shocking amount.

How many of you business-owners could continue to operate your firms if faced with this type of lawsuit?  Even if the case is dismissed, how many of you can afford the “tens of thousands of dollars in legal fees” you might face?  Will your bankers be happy if you have to use your lines of credit or approach them for additional financing?  As a former banker, you might not actually be able to obtain affordable credit for a request of this sort or you may be in violation of loan agreements where you already have, in place, approved lines of credit should you lose a suit for this amount and lack adequate liquid capital.

Let me further explain a few additional details.  The client is typical of many or most small businesses that I know, having fewer than 20-25 employees, no legal counsel on retainer (how many of us do?), inadequate Human Resources personnel/training to handle situations like this, slim operating margins AND be aware that they can AFFORDABLY purchase insurance to protect against a potential claim of this sort.  There is a time limit to respond to a legal suit or you will be found to be guilty and how many of you know of proper legal counsel – assuming you don’t have insurance of this kind – who can, adequately, defend you?

What do I mean by “affordably”?  Let me run some examples for you Accountants!  In many cases I can prepare for you within two minutes through an online portal to one of my exceptional insurance carriers for this class of business.

#1 – Company with $500,000 Annual Revenues, 4 Full-time Employees in Canada, $1,000,000 D&O, $500,000 EPL – ANNUAL COST $840 + PST;

#2 – Company with $3,000,000 Annual Revenue, 12 Full-time Employees in Canada, 1 Full-time Employee in USA, $1,000,000 D&O, $1,000,000 EPL – ANNUAL COST $1,470 + PST;

#3 – Company with $5,000,000 Annual Revenue, 10 Full-time Employees in Canada, 3 Full-time Employees in USA, $2,000,000 D&O, $1,000,000 EPL – ANNUAL COST $2,228 + PST;

#4 – Company with $30,000,000 Annual Sales, 25 F/T Employees in Canada, 5 F/T Employees in USA, $3,000,000 D&O, $2,000,000 EPL – ANNUAL COST $4,620 + PST;

#5 – Company with $50,000,000 Annual Sales, 75 F/T Employees in Canada, $5,000,000 D&O, $3,000,000 EPL – ANNUAL COST $8,125 + PST

These examples are only that – we will still need to verify some information to ensure a firm qualifies but, when comparing the annual cost vs the “tens of thousands of dollars in legal fees” (provided you don’t lose a lawsuit), it is easy to see why I believe this insurance protection is now affordably priced for any incorporated business.

Can you sleep easier at night by investing two minutes in following-up with me?  I can be reached easily by e-mail – larryewinsurance@gmail.com