Obesity Classified As A Disease – This Presents New Problems For All Employers

The American Medical Association (AMA) has recently chosen to classify obesity as a disease instead of a medical condition.  This new classification may have implications for all employers.  Now carrying the label of disease, obesity suddenly becomes a major risk liability for employers on many different fronts.  Employers now must better understand what this means vis-à-vis the ADA Amendment,  federal disability law and the Equal Opportunity Employment Commission (EEOC)law suits.  And keep in mind that since one third of all Americans are considered obese, with another one third considered overweight, this dramatically increases the number of people that can now be recognized as disabled with rights under the 2008 amendments to the Americans with Disabilities Act. 

In defense of this new classification, the AMA says that recognizing obesity as a disease will likely help change the way the medical community tackles this very complex medical issue.  And this could offer hope to those that suffer from this disease.  And while the AMA’s new definition does not carry the force of law, it might make it easier for an obese employee to argue that he or she is disabled.  Disability law says that an impairment is something that affects a major life function.  This could include walking or sitting.   Next up is the EEOC.  Will they change their definition of disability to include limitations caused by obesity?   Currently their definition of disability due to obesity is limited to the category of morbidly obese. 

One more area of concern for employers is the federal disability law.  Under this law, employers’ actions in dealing with an obese employee could come back to haunt them.  An employee who isn’t morbidly obese and who isn’t limited in any major life functions might still qualify as disabled if the employer treats him or her as impaired.  A worker who is passed over for promotions or hiring because of obesity, may be able to show that he was denied work because the employer acted in a way that indicated that the employer considered him impaired.

So what should a business owner do to protect the company from the risk of lawsuits and disability claims due to obesity?  Start by getting a clear understanding of whether or not your company falls under the rules of the ADA amendment.  If so, then keep in mind that by their definitions, you may have a disabled person working for you and you may need to modify the work environment to accommodate them.  Next, remember that if you don’t treat the person as disabled in terms of the work that you give them or the promotions that they receive, then you will have made a step in the right direction in terms of making it harder for them to prove that they are disabled because of the way that they are treated in your company.  And if you don’t carry workers compensation insurance, then get that taken care of immediately.   Last of all, make sure that you have purchased and have in force, an Employment Practices Liability Insurance(EPLI)  policy and be sure that your protection provided by this insurance policy will extend to discrimination against obesity.  Treat all of your employees fairly in all hiring, firing and promotions, without regard to physical attributes and you will have gone a long way toward protecting your business.  But bear in mind that you must stay on top of changes to rules and definitions like this or you may suffer damages for ignoring them.

At Clinard Insurance Group, located in Winston Salem, NC, we insure thousands of businesses all across North Carolina, South Carolina, Georgia, Tennessee and Virginia.  We want all insurance buyers to be educated and informed consumers.  If you would like to discuss an Employment Practices Liability Insurance (EPLI) policy, or any other insurance need for your business, please give us a call.  We will take as much time as you need to help you understand your risks and your options for insurance protection.  You can reach us, toll free, at 877-687-7557.

Cyber Liability Insurance – Can You Afford To Ignore This Protection Any Longer?

These days most every business, no matter how small or what kind, is in the business of collecting data and information about its customers.  We do this for many reasons, from collecting payments from clients to establishing ways to stay in touch with them and help generate repeat business with them.  And these days there are so many client data driven business applications for smart phones and tablets and computers that data collection processes are now showing up in even the smallest organizations.  So what can you do to keep this data safe, and by implication, protect the privacy of your clients?  What will be your responsibilities to them if your database is hacked or stolen?  Have you tried to understand and measure the costs to you and your business if you have to pay for the losses and damages from a cyber-intrusion into your network?

Cyber attacks can happen fast and leave behind long lasting negative effects for your company.  A data breach can be caused by something as simple as misplacing or losing a laptop computer, smartphone or a tablet computer.  And while this sounds a bit scary and overwhelming, the good news is that the insurance industry has recognized this risk and has begun to offer insurance protections for this type of loss.     I have listed below a short list of reasons why you need cyber liability insurance coverage in place for your business. 

Here are 5 top reasons why you should purchase a cyber liability insurance policy for your company:

1.        Breach of Network Security/Privacy  -   While we tend to think of a data breach affecting our clients, it can also involve the loss of the personal information of your employees of information about your vendors.  You could also lose company data for your own company such as proprietary information; let’s call it the secret sauce to what makes your business unique and successful. 

2.       Data Recovery Costs – Among the many costs of recovering from a cyber theft will be the costs to recover data that is stolen.  You may have to spend quite a bit to pay for your clients’ or your employees’ costs to rehabilitate their individual financial identities.  This could be a very long and expensive process, depending on what damage has been done by the thieves. 

3.       Breach Notification – You will be required to notify anyone who might be affected by the data breach.  The costs of communicating with so many people at one time could be quite expensive for your company.

4.       Regulatory Fines/Penalties – Different governmental entities may have fines that you will have to pay as a result of the cyber theft of your data.

5.       Your Loss of Income – Don’t discount the damage to your business of this type of theft.  Your reputation will need to be repaired and this will take time.  In addition, the time and effort that you spend in recovering from a data breach loss could completely cripple your ongoing operations and generate a huge loss of income for you.

Cyber liability losses to businesses are increasing in both frequency and scope.  Because this liability exposure is so new, many businesses have overlooked the negative financial impact that this kind of loss might have on their organization.  My advice is that you sit down with your insurance agent and take as much time as is needed to make sure that you have the cyber liability coverage in place that you feel is required to adequately protect the health of your organization. 

Here at Clinard Insurance Group, located in Winston Salem, NC, we want all insurance buyers to be informed consumers.  We insure thousands of small businesses all across North Carolina, South Carolina, Georgia, Tennessee and Virginia.  If you need help with your small business insurance, or if you want to explore cyber liability coverage in more detail, please feel free to call us, toll free, at 877-687-7557.

Homeowners Insurance And Dog Bites

There are a lot of dog lovers in this world.  I know I am one.    And that makes it easy to be blinded to the risks that they pose to me as a dog owner and a home owner.  If your dog bites or attacks someone, either in your home or off of your premises, do you have any insurance protection?    What steps should you, as a dog owner and dog lover, take now to reduce the possibility that your dog will hurt someone else?

In NC, if your dog injures someone and if you are held responsible for that injury, then your North Carolina Homeowners Insurance Policy will pay that loss.  This falls under the liability section of your homeowners insurance policy.  But bear in mind that once the claim is settled, your insurance company may refuse to renew your homeowners insurance policy unless you remove the dog from your home.   And depending on where you live, your local government may require that the dog be destroyed.   So it makes a lot of sense for you to be clear about some of the facts of dog bite claims and injuries.  In addition you should be thinking about things that you can do to keep your loved family pet from hurting someone.

Here’s a quick review of some recent dog bite statistics.  In 2012, insurance companies paid out an estimated $489 million on dog bite claims.  The US Postal Service reports that in 2012, a total of 5879 postal workers were bitten or attacked by dogs.  The 2012 number reflects an increase of 274 attacks over the 2011 totals.  And the American Humane Society estimates that unsupervised newborns are 370 times more likely than an adult to be killed by a dog.  And consider that the average cost of a dog bite claim in 2012 was $29,752.

So what can you, as a dog lover and dog owner, do to reduce the chance of your dog biting someone?  Well, keep in mind that any particular dog’s tendency to bite will depend on a number of factors such as heredity, training and socialization, as well as the victim’s behavior.  Many people don’t realize this but under the right circumstances, any dog might bite.  Here are a few tips that might help:

·         Remember that a sick or injured dog is much more likely to bite. Stay on top of your dog’s health needs to reduce the chance of a bite due to poor health.

·         While your dog is still young, make an effort to socialize him or her to as many different situations with other animals and people as you can.  If your dog feels at ease in a situation, he or she is much less likely to bite.

·         When you play with your dog, do so with nonaggressive games.  A good example of this would be fetch.  Playing tug of war type games can encourage inappropriate behavior that could lead to a bite later.

Taking a bit of care to work with your dog early might save the dog’s life later.  And it could prevent someone from being hurt by your dog.  And all of that prevention just might preserve your ability to continue to buy insurance for your home by preventing a claim later.

At Clinard Insurance Group, we insured thousands of families, all across North Carolina.  If you would like help or questions answered about any of your insurance policies, either home insurance, auto insurance, business insurance or even life insurance, please call us, toll free, at 877-687-7557.