Unique Business Insurance Needs for Employment Agencies

Employment agencies have unique business insurance need because of their special relationship with clients and employees. They are responsible for recruiting qualified, reliable employees that are able to perform the assigned tasks with little to no instruction. They are also trusted by their employees that the job assignments will be safe and comfortable working conditions.
 
If either the client or the employee is dissatisfied, the agency is liable for any damages or claims. This is risky and having the appropriate business insurance and liability coverage will help protect the staffing agency from expensive lawsuit payouts.
 
Good business insurance packages for employment agencies will usually include:
  • General liability coverage,
  • errors and omissions insurance,
  • Worker’s compensation insurance,
  • Employment practices liability insurance,
  • Umbrella liability insurance.

Coverage plans that include these types of insurance will more than likely provide full coverage to the employment agency, putting their mind at ease in the event of lawsuits.

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July 26, 2009  Permalink | Comments (0)

Various Forms of Business and Selecting the Best One

Starting a new business is an involved process that entails a number of strategic decisions. There are issues to consider such as: number of employees, location, hours of operation, products and services and more. This blog is going to be discussing one of the most foundational decisions – what form and type of organizational structure should your business employ? 
 
Not sure what types of organizational structure there are? No problem, we’re here to help.
 
There are four main types of business structure:
 
·         Sole Proprietorships – Owned in full by one person who is responsible for all decision making. They can work independently (such as an independent contractor) or choose to hire employees. The sole proprietor assumes total liability for any and all debts that are incurred.
 
·         Partnerships – Just like it sounds, a partnership is when two or more people decide to own a business together. There are three different types of partnerships with different structural implications. These are: general partnership, limited partnership and limited liability partnership. In a partnership, owners are personally liable in the same manner that a sole proprietor is.
 
·         Limited Liability Companies (LLC) – having the characteristics of both a corporation and partnership, an LLC provides limited liability to owners. This is a popular business model since it has the most flexibility and offers the best of both worlds – ownership without responsibility to stockholders and protection from full personal liability should something go wrong.
 
·         Corporations – A legal entity separate from those that formed it, a corporation has legal rights and specific laws that apply to it. This entity is controlled by stock – which is essentially how much of the company you own. Unlike a sole proprietorship or a partnership, if a corporation fails the owners/stockholders only risk losing their initial investment.
 
When deciding on the right business form, seek legal advice. There are a number of free resources for small businesses – such as the Small Business Administration (www.sba.gov) – that provide counseling, advice and more. Do some research on your business industry and see what organizational structures have been working for your peers and competition.

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July 23, 2009  Permalink | Comments (0)

Top 5 Reasons Why Your Medical Practice Should Use an Attorney When Choosing a Business Form

If you’re just getting started setting up your medical practice, you may or may not be familiar with some of the more specific business aspects, such as choosing a business form. When establishing a business, there are a number of different forms to choose from. A new business can be a:
 
·         Sole Proprietorship - solely owned by one person alone
·         Partnership - shared ownership between two or three people
·         Corporation - considered a separate legal entity with its own rights independent of ownership
·         Limited Liability Company (LLC) - a company where shareholders are not responsible for paying more of the debt than their original investment
While the answer as to which form your medical practice should take may seem obvious, it is strongly recommended by business and insurance experts that you meet with an attorney before making any final arrangements regarding a business model.
 
The following is a list of the top five reasons why medical practices should consult an attorney before settling on a specific business form:
 
1.      Liability – this is the most important reason why medical practices, or any new business, should consult with an attorney. The laws vary when it comes to personal liability for business debts based on which business model is in use. Attorneys can help you select a business model and will offer guidance as to which type of professional or general liability insurance will be needed.
2.      Contracts – it’s important that all relationships, including employment agreements, are clearly spelled out to prevent any future lawsuits. A lawyer will ensure that all relationships, between partners, investors, shareholders and employees are clear and legally sound.
3.       Taxes – there are different tax requirements and laws that apply to different business forms. An attorney will provide guidance as to which tax laws apply to your practice and the different tax breaks and requirements depending on the business model.
4.      Control – who do you want to be in control of the medical practice? Do you want to share that control with anyone, and if so, with whom? Different business models exhibit different levels and types of control for investors.
5.      Autonomy – similar to control, who will be making all the decisions and what will they be based on? An attorney will explain to you that different business forms have different decision making protocol that you may not have previously known about.

These are only some of the big reasons. Businesses should typically have an attorney familiar with their field readily available anyway. This is because the laws are ever-changing and an attorney will be able to provide you with sound legal advice.

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July 19, 2009  Permalink | Comments (0)
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