Walmart just got sued for wrongful death for alleged ignorance for care of its employee. Attorneys are now starting to react and warn their business-owner-employer clients of the minefield of risks associated with COVID-19. https://www.abajournal.com/web/article/attorneys-advise-companies-on-potential-coronavirus-related-liability
CAN YOU NAVIGATE THE WATERS OF PROPER EMPLOYEE MANAGEMENT? What are the regulations that provide oversight for all employee management, when we’ve never had a pandemic like this impacting our lives and the business world? Will you be able to follow them? The bottom line is no matter what you do that is best effort, if an employee gets sick or dies from this virus, the business and owner will likely be sued.
PUBLISH & DOCUMENT BEST PRACTICES: the best asset in risk management is to have a detailed plan published and reviewed/updated ongoing as new facts become public practice as set by governmental agencies and by our community at large. Then further show that you have followed your plan at each step and have done everything humanly possible to provide a safe environment for your employees, executives, and even board members. Warning: this is an exhausting amount of work, and as we all know…
NO GOOD DEED GOES UNPUNISHED: the reality is that while most find these efforts of great comfort, predators will try to find fault and liability claims in a plan, and just like they do at every other aspect in small business management, try to claim why they should benefit at to the cost of hard-working American business-owners.
ARE YOU INSURED? CAN YOU BE INSURED? IS THERE EVEN COVERAGE AVAILABLE?
Being that the risks associated with a pandemic is new to almost all of us and most would have never guessed to see if liability coverage would even apply, you will likely find that pandemics are excluded from coverage. Should have you a special umbrella coverage that includes “acts of god’, then perhaps there is an application, however one would also find that the coverage amounts are limited.
THERE IS A TYPE OF COVERAGE THAT CAN INSURE AGAINST COVID-RELATED BUSINESS LOSSES (BUT ONLY BEFORE AN INCIDENT): We have been able to customize special revenue risk coverages for our business clients through our exempt trusts. TRUST-CFO can craft an excess-surplus lines policy that can include certain benefit provisions for loss of key employees under unique circumstances. Not only will this type of coverage provide significant insurance against loss of capital, cash flow, and profits, it also offers significant tax benefits under the current CARE ACT, so the client not only reduces taxes when setting up a contract (which is going to be critical for cashflow survival until the economy rebounds), but is also secure against loss should there be a real risk and claim. Go to PRP ACCELERATOR here to find out more>
ARE YOUR ASSETS & RETIREMENT PROTECTED IF ALL ELSE FAILS? SETUP A SAFETY-NET.
If you don’t qualify for excess & surplus lines coverage, what should you do to protect yourself?
You should at least claim your legal exemption rights and max-fund your private retirement plan with your private assets, including investments, real estate, business interests/stock and private equity assets. These assets can then be protected in case a litigating attacker was successful in piercing your corporate/business veil and make claim against your personal balance sheet.