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robintek

Sep 01
Love0

TAKE NOTE

By Your Employee Matters

Confidentiality Provision in Employment Agreements. In NLRB v. Northeastern Land Services, a non-union temporary staffing agency terminated an employee in violation of the confidentiality provision in his employment agreement after he complained to a client of his employer about the amount of pay he was receiving for the use of his personal computer for work.

The Court of Appeals for the First Circuit upheld the NLRB’s decision that the confidentiality provision, which prohibited the employee from discussing the terms of his employment, as well as his compensation with “other parties,” was overly broad and a per se violation of Section 8(a)(1) of the NLRA. Section 8(a) (1), which bars employers from interfering with employees’ right to discuss the terms and conditions of their employment with others. The NLRB had found that employees could reasonably understand this provision as prohibiting from discussing their compensation with union representatives.

The First Circuit held that the NLRB did not have to consider the employer’s justification for enforcing the confidentiality provision, which the employer stated was to prevent employees from disclosing its labor costs — one of the key components of its bid to clients.

The court held that when a discipline is imposed pursuant to an overly broad rule, this discipline is unlawful, regardless of whether the conduct could have been prohibited for lawful reasons.

If the employer had not relied on the confidentiality provision, but instead on the employee’s disruptive conduct, the employer probably would have been within its right to terminate him.

However, by relying on the overly broad provision, the employer lost any defense against the termination.

Sep 01
Love0

EDITOR’S COLUMN: IS YOUR WORKPLACE ENGAGED?

By Your Employee Matters

The idea of employee “engagement” remains a corporate buzzword. I find it interesting that the term “engagement” implies only a willingness to commit, without consummating this commitment. Webster’s defines “engage” as:

  • Involved an activity
  • Pledged to be married
  • Greatly interested
  • Involved especially in a hostile encounter

None of the above has anything to do with productivity. For example, you can be involved in your work without being motivated to do anything about it! Likewise, you can be greatly interested but inept. Interestingly, the word derives from the French word “gage,” which means something thrown down by a knight as a token of challenge to combat. Historically “engagement” means to be in the process of battle. True to the “at will” nature of employment, it seems that we’d rather have engagement than true commitment.

My diatribe on word choice aside, the 50 Most Engaged Workplaces Award identifies these eight criteria as the foundation for generating employee engagement:

  • Leadership
  • Communication
  • Culture
  • Rewards and recognition
  • Professional and personal growth
  • Accountability in performance
  • Vision and values
  • Corporate social responsibility

Essentially, this is a checklist of good management practices. You might as well cross out the word “engaged” and substitute “profitable.”

Noticeably absent from that list is any mention of compensation. I continue to believe that pay is the No. 1 reason why people go to work every day. However, once employees earn what they perceive to be a fair day’s wage, then these other factors come into play. Of course, another way is to look at what drives “engagement,” or its older equivalent, “motivation,” in Maslow’s Hierarchy of Needs, which focuses on the need for survival, security, belonging, ego gratification, and self-actualization.

After surveying numerous organizations and speaking in confidence with thousands of business owners and employees, I can tell you that the No. 2 concern at work is also the No. 2 concern at home: The quality of communication. Ultimately, we’re looking for some financial security at work and at home and then communication that’s clear, caring, and allows a safe place for dialogue. When you do a good job of communication, you support all the other factors mentioned.

Although all of the award criteria mentioned are great, your primary concern should be what matters most to your company and its employees. One way to learn this is to ask questions. Of course, unless you’re deaf, dumb, blind, or uncaring, you usually realize the major concerns. The question is, do you really want to do anything about it?

Sep 01
Love0

REVIEW YOUR LIFE INSURANCE NEEDS AS YOU PREPARE FOR THE ADDITION OF A NEW BABY

By Life and Health

From maternity leave, parenting and maternity classes, and readying the new baby’s room, expectant parents have a lot on their plate as they prepare for a new baby. The tasks you need to accomplish can be overwhelming, but you certainly don’t want to forget to protect your child’s future financial well-being. One area you’ll want to address is your Life insurance to determine if your current coverage will still meet the needs of your soon-to-be larger family. As you examine it, you’ll want to pay particularly close attention to the following three areas:

1. Type of Insurance. Although Life insurance policies come in various shapes and sizes, most fit under either Permanent Life insurance or Term Life insurance.

Term policies will provide you with protection for only a specified period of time and these policies don’t accumulate a cash value. Evaluate term policies to determine if they will still offer a sufficient coverage to protect your growing family. On the other hand, Permanent Life insurance policies can cover you for your entire life. They also accumulate a cash value that can be borrowed against for future expenses, such as your child’s college tuition. Do keep in mind that availability, options, and cost are greatly influenced by your health status and age. As a general rule, you’ll find the best Life insurance coverage and rate while you’re young and in good health.

2. Coverage. The addition of a child only exaggerates a couple’s desire and need to protect their family should the wage earner unexpectedly pass away. Do keep in mind that each parent, even if one isn’t earning a wage, should have a Life insurance policy. It’s a common misconception that a stay-at-home spouse doesn’t need to be insured because they aren’t financially contributing to the family. In reality, all the childcare, household chores, and so forth would still need to be done if the stay-at-home spouse were to pass away. These duties would become expenses that weren’t present when the spouse was alive. Having Life insurance on the stay-at-home spouse allows the surviving spouse to remain at his/her job and hire someone to perform the duties.

3. Beneficiaries. Should you pass away, the funds from your Life insurance policy become part of your estate if you don’t have designated beneficiaries. You want this money to be available immediately for the care of your child, not tied up in your estate. Therefore, it’s important for you to update your beneficiary designations soon after the adoption or birth of your child. Be sure to choose both a primary and contingent beneficiary.

In closing, insurance might not be as fun as baby shopping, but you can see how important it is to meet with your insurance agent and ensure that your Life insurance policy adequately meets your growing family’s needs and protects your child’s future financial well-being.

Sep 01
Love0

DO I REALLY NEED TRAVEL INSURANCE?

By Life and Health

In many cases, vacations can involve thousands of dollars and months of advanced planning, organizing, and saving. So if you’re wondering if you need travel insurance, the answer is often yes. Like any other investment of this magnitude, it’s important to make sure you have adequate insurance to protect yourself should the tour operation or cruise line you’ve booked with go bankrupt, you or a family member becomes ill, or some other unforeseen event upsets your vacation plans.

Travel insurance can be purchased as a packaged plan with several different options, including travel delay, trip cancellation, baggage, accidental death, auto, 24 hour traveler assistance, dental, emergency medical, emergency medical evacuation, and so forth. The five main types of travel insurance, which are trip cancellation, baggage, emergency medical, auto, and accidental death, can each also usually be purchased as an individual policy.

1. Trip Cancellation. This insurance policy protects you should certain factors prevent you from taking the trip. Look to the specific policy to determine what factors will be covered, but most will include circumstances like a tour operator or cruise line going out of business, personal or family illnesses, and the death of a family member. The policy may also reimburse you for any unused portion of your vacation should you become seriously ill or injured once on the trip. The cost of trip cancellation insurance is usually equivalent to between five and seven percent of what the vacation costs, meaning a policy for a $2,500 dollar trip would be around $125-$175 dollars.

Keep in mind that trip cancellation insurance isn’t the same as the cancellation wavier your tour operator or cruise line may offer you. While the waiver is relatively less expensive, at around $40 to $60 dollars, it must be purchased when you book your vacation. These waivers also are usually accompanied by multiple restrictions, such as not covering a cancellation occurring near the date of departure or once the trip has begun. It’s important to remember that a cancellation waiver isn’t insurance and isn’t regulated by any agency, which means it might not be worth the paper it’s printed on if the business goes bankrupt or closes.

2. Emergency Medical Assistance. Ask your health insurance carrier what type and degree of coverage you’ll have on a trip to a foreign country. If your health insurance policy doesn’t cover you at all or leaves you under-insured while visiting a foreign country, then you might consider an emergency medical assistance policy to cover any emergency medical assistance that you might need during your vacation following an injury or illness. The policy would cover medical transportation to a hospital capable of treating your illness or injury; foreign hospital stays; and, should you be seriously ill or injured, transportation home.

3. Baggage Insurance/Personal Effects Coverage. This policy covers you should your personal belongings get damaged, stolen, or lost during the vacation. It’s usually about $50 to cover $1,000 dollars worth of personal belongings for a seven day trip. Depending on if and how much insurance is provided by your trip operator and/or airline, you may or may not need this coverage. You’ll also want to determine if your homeowner’s or renter’s insurance covers off-premise thefts before you purchase this coverage. You might consider an endorsement or floater to your homeowner’s/renter’s insurance instead of personal effects coverage if you’re traveling with high-value items like electronic equipment, sports equipment, or jewelry. Such an endorsement to cover a $1,000 necklace for a year would be about $10 to $40. Additionally, you may want to contact your credit card company to determine what, if any, travel-related coverage or services they provide.

4. Auto Coverage. A typical auto insurance policy only covers your vehicle within U.S. states and territories and Canada. You can check with your auto insurance carrier to determine how your auto insurance will apply to your vacation destination and mode of transportation – rental or personal vehicle. Should your trip include carrying your personal or rented vehicle outside the areas specified in your personal auto insurance policy, then you’ll need to purchase coverage applicable to your destination through either an insurance agent, car rental agency, or travel agency. Don’t forget to obtain both liability and physical damage if you’ve chosen to rent a car.

5. Accidental Death. An accidental death policy usually isn’t necessary if you already have an appropriate life insurance plan. Much like a typical accidental death policy, this policy provides a benefit should the insured party die on the vacation.

Sep 01
Love0

POINTS TO CONSIDER BEFORE BUYING A MEDICAL DISCOUNT PLAN

By Life and Health

You’ve most likely seen an internet, print, or television ad for an affordable health care plan that doesn’t have deductibles or co-pays, has thousands of PPO network providers, doesn’t discriminate against pre-existing conditions, has discounts on medical services of up to 60%, and so on. It may appear that such ads are for health insurance, but most of them are actually offering a medical discount plan, program, or card.

Medical discount ads are often aimed directly at individuals looking to cut the cost of health care, and while these medical discount plans can help some consumers save some money on their health care costs, medical discount plans shouldn’t be confused with health insurance. Health care plans typically cover a broad spectrum of medical services, products, and procedures with a payment either directly to the provider or insured individual. Unlike health care plans, medical discount plans don’t pay any portion of an individual’s health care costs. A medical discount plan will charge you fees to become a plan member. You’ll then be provided with a list of medical product and service providers offering you, as a plan member, a discount on certain services, procedures, and products.

Many of these medical discount plans assert that members can obtain huge discounts from hundreds of service and product providers related to everything form hospital admissions and prescription drugs to dental and doctor visits. Some of these plans indeed provide the array and degree of discounts being promised to members. However, the Federal Trade Commission (FTC) has found many plans don’t make good on what they’ve promised consumers and are actually providing very little in return for the fees being charged. The FTC is the nation’s consumer protection agency, working to prevent deceptive, fraudulent, and unfair marketplace practices and arm consumers with the information they need to identify, evade, and stop entities with such practices.

The most important thing, regardless if you’re purchasing a medical discount plan or a traditional health insurance plan, is that you know what you’re getting. You can contact your state insurance commissioner to determine if an insurance company is registered to sell insurance in your state. If a company isn’t registered to sell you health insurance, then you might consider an alternative insurer. Likewise, you should do some investigating and questioning before buying a medical discount plan, including:

  • Check out the medical discount plan’s website. Look for a phone number or local office location so that you can obtain more information from a real life representative.
  • Contact the Better Business Bureau, local consumer protection agencies, or the attorney general’s office to determine if the entity offering the discount medical plan has any complaints against them or ethics violations on record.
  • Ask for a full listing of the plan’s providers. Call several of the providers on the list to ask what discounts are offered for what services. If a medical discount plan procrastinates or refuses to provide you with a list of the providers until after you’ve made a purchase, you should strongly consider finding a different plan.
  • Check to see if your usual dental and medical providers are on the plan’s list of providers. If not, and you can live with changing from your usual providers, then you may want to ask if the plan will offer you a get acquainted, initial consultation visit with a participating practitioner before you commit to membership. Most legitimate plans will not have a problem providing such a visit to help you get acquainted with their providers.
  • Pay close attention to the plan’s fine print and refund policy. Ask questions if you don’t understand any element of the contract.
  • Some of these medical discount plans can entail an upfront, lump-sum payment; monthly fees; and/or additional per-fees. So run the numbers to determine if the plan’s total cost is more than you could ever save from the discounts being offered.
  • Keep in mind that if a plan’s representatives can’t or won’t answer any and all questions before you make a purchase, then they certainly aren’t likely to do so once they have your money in their hands.
  • You may be able to get a discount without paying for membership in a medical discount plan if your usual providers aren’t on the plan’s provider list. After all, your usual provider doesn’t want to lose your business just because he/she isn’t on a plan’s provider list. It certainly doesn’t hurt to ask your providers before paying for a plan.
Sep 01
Love0

WHY YOU SHOULD REQUIRE LIABILITY INSURANCE FOR THOSE YOU DO BUSINESS WITH

By Personal Perspective

Are the people you do business with insured? You might want to ask them. If a vendor, contractor, cleaning crew, gardener/arborist, or other service provider does not have insurance, you may be out of luck if they cause property damage or injury. Also, people who do not carry insurance are probably less likely responsible than those who are insured. They may not be the ideal people you would want to hire. It’s worth paying a little more to get someone who is insured.

Never just take the word of a vendor. Many who are not insured may say “yes” because it’s likely they don’t want to embarrass themselves. Instead, ask them to have their broker send a certificate of insurance. By having their broker send (fax or email) it to you, you know the policy has been paid for and has not been cancelled.

Some vendors, especially small firms, will try to convince you that they do not need insurance. Do not fall into this trap as you will be letting an amateur convince you to purchase product or service that lacks the protections an insurance policy provides. As a courtesy to existing clients, we can give you advice on any insurance certificate that is emailed or faxed to us. Suggestions on who you should request insurance certificates from:

  • Contractors who are working on a home or commercial remodel
  • Repair or installation service for your auto, home, or business
  • Service contractors, such as gardening and maids/cleaning services
  • Independent Contractors or Contract Employment
  • Professional Services, such as such as a CPA, Consultant, Mortgage Broker, Staffing Firm, Insurance Broker, Architects/Engineers, and others who provide professional services (professional liability)
  • People who rent or lease from you

Types of Insurance you should request:

  • General Liability
  • Workers Compensation – for operations that have workers on your premise
  • Commercial Auto Coverage – for those who use vehicles on the job
  • Professional Liability (Errors & Omissions Insurance) – for those who provide professional services

Should you request a certificate for every purchase? It’s your call, but if someone is entering your premise or you are purchasing a bigger ticket item, you should strongly consider asking for insurance documentation.

Sep 01
Love0

ONLINE INSURANCE AS OPPOSED TO AN INSURANCE AGENCY: WHAT’S THE DIFFERENCE?

By Personal Perspective

Just as one might use a CPA to prepare their income taxes or an attorney to help them with their estate planning, many choose to use an insurance agency to write their insurance policies. This choice is mainly made because a person feels they need professional advice during the process. Of course, everyone will have different needs and circumstances surrounding their purchase, and this is why an insurance professional’s advice can be an invaluable asset. If you’re debating buying insurance online versus through insurance agency, then you should ask yourself a couple of questions:

  • Do I know for certain what specific coverage(s) I need?
  • Do I know all the questions I should be asking before making an insurance purchase?
  • Will the online purchase truly result in both time and money savings?
  • Can I obtain all my insurance policies through a single online insurance provider?
  • Can I call the online insurance provider and receive insurance advice when needed?
  • Is the personal information I’ll be providing kept secure?

You want to know exactly what coverage you need and that the insurance you’re purchasing meets those needs adequately. Insurance can vary greatly from state to state, meaning that it’s equally important for your insurance source to be knowledgeable. You certainly don’t want to purchase an insurance policy and discover down the road that it doesn’t protect you during a claim. Making an insurance purchase with an online company that fails to connect professional insurance advice to your personal insurance needs can leave you at risk of being without the coverage you need. You shouldn’t be the only one taking time to ask questions. The online insurance company must ask you questions in order to ensure they’re recommending the appropriate coverage(s).

One of the best ways to determine if you’re really saving money by purchasing your insurance online is to get a quote of your policy online. Do keep in mind that most online companies don’t offer multi-policy discounts, such as for home and auto. This is because most offer homeowner’s insurance through a different company, if at all. On the other hand, an insurance agency typically allows you to select coverage from several different insurance companies and can help you determine which company will offer you the most favorable rates for your particular risk type. Another consideration is that insurance agencies typically have a much more stringent screening process in relation to these insurance companies.

Unlike insurance agencies, many online companies will either not have the services that you need readily available or have a system that you must sign into and learn to navigate before being able to obtain what you need. One such example would be obtaining insurance documents, such as a certificate of insurance. Let’s say you’re using your vehicle to take your child and some of his/her classmates on a field trip. You learn the day of the trip that you must have evidence of your insurance before going. If you use an insurance agency, the documented can be faxed or emailed to the school or your smart phone with a quick and simple call. A second example would be how an insurance agency can help you meet some very challenging needs associated with needing a hard to place insurance policy. Despite the trend for online shopping, insurance agencies continue to thrive because of the solid reputations they build from customer satisfaction.

Insurance is often required – auto insurance by your employer, homeowner’s insurance by your mortgage lender, or even coverage(s) an owner of a space you’re trying to rent for a professional or personal function may require of you. Such requirements can often be like trying to understand the tax code. If you use an insurance agency, then you can email or fax any insurance requirements to your insurance agent for quick and efficient resolution.

Carefully consider how you go about purchasing your insurance. Surprises are the last things you want when it comes to the vital protection of insurance. If you have any uncertainty about what you’re really getting with online insurance, then you might want to rethink your decision. If you’d like to avoid the one-size-fits-all approach of online insurance and receive the knowledge and expertise of an insurance agent, then you may consider opting for a professional, independent agent to prepare your insurance policy.

Sep 01
Love0

KEEPING YOUR IDENTITY SAFE FROM INTERNET AND TELEPHONE SCAMS

By Personal Perspective

What would you say the fastest growing crime in the United States is today? If identity theft came to mind, then you’re exactly right. Statistics by the Federal Trade Commission show that over 20% of all identity theft cases involve the internet and telecommunications. While you might think identify theft scams are easy to spot and avoid, the criminals behind such scams devote themselves to putting together emails, phone calls, and websites that appear enticingly legitimate.

Most email and telephone identity theft scams ask you to provide your Social Security number, credit card account information, or banking account information. According to the Identity Theft Resource Center, unless you initiate the call and know you’re speaking with a legitimate representative from the company you’re doing business with, you should never give out any personal or financial information.

Of course, there are innumerable scams circulating the country. The following are a few of the most commonly seen:

Moving Money Scams / Nigerian Money Offers. The “can you help me move my money from my country” scams were around before the internet was even a thought. Despite people being aware of the con, these scams still make $100 million each year. The scammers will send out mass emails. They claim to be in a foreign country, often Nigeria. They ask the recipient to assist them in moving their money out of their country and promise to pay the recipient from helping them. The explanation for the request is often a heartbreaking tale or humanitarian cause like a sick relative needing a surgery.

Phisher / Account Verification Scams. These scams involve the scammer purchasing domain names that closely resemble that of legitimate and reputable businesses. One of the most recent scams involved the E-Bay domain name. The scammers purchased domain names like change-ebay.com and ebay-verification.net and sent out mass emails asking consumers to provide their personal and credit card information. The emails often asked the recipient to verify a purchase or made threats to cancel the account if the recipient didn’t provide the information. Other companies being used in alike scams include: AOL, PayPal, MSN, Discover Card, Best Buy, and Bank of America. Even if you’ve recently purchased an item or made a transaction with a company, you should never comply with emails asking for personal or financial information. Most companies don’t conduct business in such a manner. To make sure, use the official phone number for the involved company to find out if the request is legitimate.

Get Your Free Credit Report Scams. Most correspondence related to getting a free credit report will turn out to be a scam in one way or another. Free is usually the relative word since most receive a bill charging for the service after it’s used. Other free credit report scams are simply after your Social Security number.

You’ve Won a Free Gift Scam. The phone call or email saying that you’ve won a free gift is luring. The scammer will claim the gift is free, but that they need your credit card information to cover the shipping and handling. With your credit card number in hand, they can use it for a lot more than shipping and handling. Just remember that few things are free and those that are don’t require a credit card.

You’ve Won the Canadian or Netherlands Lottery Scams. According to the FBI, this scam has collected approximately $80 to $100 million so far. Keep in mind that you first must buy a ticket or enter a lottery to win it. If you haven’t purchased a ticket, you haven’t won.

Questionnaires. This is a request for your personal and financial information under the guise of a friendly questionnaire. The scammer often claims to be a childhood or old social network friend. The questionnaire may blatantly ask you for your info or be subtly collecting information related to your account passwords by asking you your birthday, favorite things, name of your kids, and such. Delete the questionnaire. Giving false information only alerts the scammer they’ve reached someone willing to respond and possibly provide inadvertent information in the future.

IRS Audit Scams. Scammers have sent out emails claiming the recipient must undergo an e-audit within 48 hours or face penalties and interest. The e-audit questionnaire asks for personal and financial information. Be aware that the IRS doesn’t correspond with taxpayers about audits via email and certainly doesn’t have anything called an e-audit.

Resume Scams. Identity theft even occurs from sending out a resume. Scammers can place a print or online help wanted ad just like a real employer can. Never place your birthday or Social Security number on resumes. That information can be collected by legitimate employers during the interview stage.

The best way to stay safe is not responding, even with a don’t contact me or remove my name from the list email, to anything you feel has the potential to be a scam.

Sep 01
Love0

QUESTIONS YOU NEED TO ASK BEFORE BUYING DISTRESSED COMMERCIAL PROPERTIES

By Business Protection Bulletin

The economic downturn that began in late 2007 has taken a severe toll on all sectors of the U.S. economy, but it hit the real estate sector especially hard. Real estate research company Green Street Advisors reported in March 2011 that commercial property values were 17% below their peak in August 2007. CoStar Group reported that the values of the highest quality office buildings, relatively new retail and industrial properties, and apartment complexes were down 33% since June 2007. These large price decreases might attract investors in search of good buying opportunities. However, potential buyers should look beyond the low purchase price when they evaluate these properties. The properties’ physical state, legal issues, and insurance considerations also affect whether they are smart investments.

Many of these properties were only partially completed when the financial crisis hit, so buyers must assess their economic viability and physical condition. They need to ask:

  • How much of the project has been completed and how much remains to be done?
  • Does any of the work need to be repaired or redone because the builder, facing financial difficulty, took shortcuts in material quality or construction?
  • Do the original construction plans comply with current building codes? Are there any design errors that need correction?
  • Are there any significant changes the buyer would like to make to the project?
  • What liabilities (debts, lawsuits, penalties, etc.) will the buyer assume with the property?
  • Who will be legally liable for any defects in the design or construction of the project?
  • If the original owner and builder are responsible for the problems, can the buyer recover from them?
  • What insurance covered the original project? Did one program apply to the entire project, or did each individual contractor have its own coverage?
  • Will the insurance apply to construction defects?
  • If a single wrap-up insurance policy covered the project, did it include a deductible or self-insured retention? If so, and the insured owner or contractor has declared bankruptcy and is unable to pay it, will the insurance still apply?
  • Are there special conditions that must be met before the policy will apply when the deductible or SIR cannot be paid? Does the original wrap-up policy extend completed operations coverage beyond the policy’s expiration date? If so, for how long?

Prospective buyers need to pay special attention to Builders Risk insurance on the project. If the original developer bought this coverage, the policy might have cancelled after work on the project stopped. A policy purchased by the general contractor might still be in force, but the buyer should review its terms and conditions carefully. Due to the long period of inactivity, vacancy and unoccupancy provisions might have taken effect. The buyer should also check to see if the policy covers catastrophic perils such as flood and earthquake; lost income and extra expenses resulting from delays due to covered perils such as fire or vandalism; and the extent of coverage for testing.

Regardless how low a property’s price might be, it is no bargain if it comes with a host of physical and legal problems. Arranging insurance on a property with severe problems might be very difficult or even impossible. An insurance agent or broker experienced in obtaining coverage for such properties can help sift through the issues and identify appropriate policies. There is no substitute for a careful examination of a property and all that comes with it. Buyers who do their homework will uncover the profitable opportunities.

Sep 01
Love0

FAN BEATING AT A BASEBALL GAME: LESSONS FOR YOUR BUSINESS

By Business Protection Bulletin

On the opening day of the 2011 baseball season, a San Francisco Giants fan named Bryan Stow attended the Giants’ game against the rival Los Angeles Dodgers at Dodgers Stadium in L.A. After the game, as Stow tried to hail a taxi, two men accosted him for wearing Giants fan apparel and administered a brutal beating.

Violent crime is not unique to Los Angeles or Major League Baseball teams. Something like this could happen in a school, an apartment complex courtyard, or in the parking lots of a shopping mall, a convenience store, a library or a restaurant. If it is common for groups of people to gather at your business, there are a few lessons you can take from this incident.

1. The amount of liability insurance you buy matters — a lot. All businesses try to stretch their dollars, so limiting insurance costs is a natural thing to do. When a severe event like this happens on your property, however, the questions that will matter are: Will my insurance cover it? Do I have enough insurance to cover all of it? The insurance premium might seem like a minor consideration.

2. One of the most important features of liability insurance is that it covers the cost of providing a legal defense. In smaller towns, good lawyers cost a few hundred dollars an hour; in a large city like L.A., the cost is many times that. Many insurance policies provide an unlimited amount of coverage for defense costs in addition to the amount of coverage for the settlement or judgment. Check your policy or ask our agents if you’re not sure how your policy handles this.

3. Your business might have an exposure to this kind of incident even if your relationship with the location is incidental or indirect. The Stow family’s lawsuit names 19 parties and has placeholders for dozens more. Each of these parties will require legal defense and a source of funds for potential payments. Some of the parties operate parts of Dodgers Stadium, while others are part owners. The team’s principal owner is named individually and in his role as owner. In the case of a severe injury like this, the plaintiffs will look to sue anyone with any slight relationship to the incident.

4. Security, including video surveillance, is vital. Monitored security cameras can catch an incident before it begins or before it escalates to the extremes that this one did. Also, the mere visible presence of security cameras can deter some individuals from starting trouble.

5. Incidents like this can and will hurt your business. Attendance at Dodgers games was down 200,000 through the first two and a half months of the 2011 season. The median ticket price is $27, with many seats selling for much higher amounts, so it’s safe to say that the attack is at least partly responsible for more than $5 million in lost revenue. Due to the principal owner’s personal problems, the Dodgers were already in financial trouble, so this comes at a particularly bad time.

This horrible attack is, fortunately, quite rare, but violent crime is still a very real possibility. Every business owner should consider how something like this would affect the business, take precautions to prevent such incidents or make them less severe, and work with one of our insurance agents to make sure it has appropriate financial protection.

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