Lincoln Business Liability Insurance

Lincoln business liability insurance won't protect you from intentional, wrongful acts. If you or one of your employees intentionally harms another party, or actually physically harms another person, don't expect your Lincoln business liability insurance policy to cover you. Any kind of wrongful act, breach of contract, or dishonest statement will not be covered by your basic Nebraska commercial business insurance policy.

Of course, as you might expect, Lincoln business liability insurance is pretty complicated. It typically contains an "intentional act" exclusion, but sometimes it's hard to know whether an act was intended or not. If an act is "intended" and "expected" it's not covered, but what if might not have been intended? And, that being said, you obviously can't completely control your employees and so you should purchase employee practices liability insurance, which will cover you in such cases. Comparing quotes for business liability policies will help you make a good decision.

Intentional Acts

The words "expected" and "intended" appear frequently in insurance law. The words may be interpreted differently in different states, and in different court rooms. Basically, if an act is meant to cause any kind of harm or bodily injury, the insured can deny coverage. Here's an example: if an employee blatantly fails to follow a safety law and gets hurt, there will be no coverage.

Here's a more complicated example: say that an employee acts slightly carelessly by working on a roof without fall protection, because he or she is new to the company. If that employee gets injured, he or she may not be covered. It depends on the Nebraska courtroom. Note that these particular cases are related to workers compensation, not Lincoln business liability insurance.

The reason that you cannot insure your Lincoln company for wrongful acts is pretty obvious. If you could get coverage for such acts, then businesses might intentionally act in malicious ways. Obviously, this would be harmful for the business environment, and the world! That being said, it's sometimes difficult to draw the line between intentional and accidental occurrences.

Furthermore, it's not exactly fair if your Lincoln, Nebraska company has to take full responsibility for the wrongful acts of your employees, is it? If a company has to take full responsibility for all employee wrong-doings, the business is taking on enormous risk. So, there's a employer coverage for employee activity. Well, sometimes there's coverage: it varies from courtroom to courtroom. It's hard to decide: should an employer be held accountable for all employee activity?

One theory suggests that the employer is "superior" and therefore should be liable for employee activity. Other courts treat the two as separate, and the employer gets Lincoln business liability insurance but the employee doesn't. In some cases, the Lincoln, NE employer could be encouraged the activity of the employee, but in other cases, the employee could be acting against the company.

You will need to consult with your Lincoln business liability insurance agent if an incident occurs. Most likely, employee crimes will be excluded from your Lincoln business liability insurance, but that's not necessarily the case. Nebraska has different standards from other states, and the Lincoln courtroom does, too.

Employment Practices Liability Insurance

If you want to protect your Lincoln, NE business from employee liability, you need to purchase EPLI. EPLI, or employment practices liability insurance, covers you from claims made by an employee. It might also protect you from the wrongful acts of your employee. If, for example, an employee steals from your Lincoln business, employment practices liability will protect you.

Like Lincoln business liability insurance, EPLI doesn't really insure against "intentional injury". However, it does protect a company from intentional injury if the employee causes it. It's a little complicated, and you may want to talk to a business insurance professional to help you clarify this point.

Also, EPLI does protect you from employee claims against the company. Your basic business liability policy won't cover you from employee claims, because they're not considered "third-party". EPLI, however, will protect you if a claim is made regarding harassment, discrimination, wrongful termination, and emotional distress.

EPLI may or may not cover the company for privacy based claims or reputation claims (made by the employee). EPLI typically excludes coverage for Fair Labor Standards Act violations, as well as most claims related to the Americans With Disabilities Act. Also, violations of the Employee Retirement Income Security Act and the Consolidated Omnibus Budget Reconciliation Act (COBRA), are typically excluded from the policy.

Alas, Lincoln business liability insurance is complicated. Due to the various subtleties, it's much harder to insure a company than it is to insure a car. On that note, if you have company cars, they need to be insured under a commercial auto policy! It's best to seek the help of a professional to insure your company. Find a professional who has experience insuring businesses in your industry.

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