7 Auto Recyclers ToolBox® Bill Velin Graduated from college in 1970 and has been involved in the insurance industry ever since. He began his career with Royal Globe Insurance Company as a management trainee in the Milwaukee, Wisconsin branch for three years, and then as a Production Underwriter for two years in the Chicago Regional Office. He trans- ferred to the Minneapolis Branch in 1975 as a regional marketing manager until 1978. In 1978, he decided to switch to the agency side of the business. He built a siz- able book of business over the next 10 years with three different agencies and in 1988, decided to strike out on his own when he founded an independent agency in Apple Valley, MN. He built his agencytoapprox..$3,000,000inrevenuebeforesellingtoalarger agency in 1994, who ultimately sold to Wells Fargo Insurance in 1996.BillwaswithWellsFargoInsuranceuntilearly2016whenhe decided to acquire his book of business and relocate it toAssured PartnersofMinnesota.Hisbookofbusinessismostlygeneralbusi- ness made up of manufacturers, contractors, etc. but he also has built two programs over the years – one of them in the entertain- ment and amusement business (Bill is one of the larger agents nationally for inflatables, family entertainment centers and Renaissance Festivals), and he is also the exclusively endorsed agentfortheAutomotiveRecyclersAssociation nationally. OrbyEmail: bvelin@apminnesota.com YoucancontactBill: 651-294-0705 income due to that injury, and reha- bilitation. If an employee dies, it also pays death benefits to the family or heirs. It also provides employers lia- bility coverage in the event an employee injured on the job sues you for putting him or her in a dangerous work place which caused the claim. Ÿ BUSINESS VEHICLE – This is usually configured to cover cars and trucks your business owns, leases, rents or simply uses. A good agent will always recommend you carry “hired and non-owned auto cover- age” to provide protection against an employee using his/her own vehicle for business use or an owner of a business using his personal vehicle for business use. Additionally, if a business owner uses a company vehi- cle for his personal use, a good agent will recommend a rider to cover that exposure properly. Ÿ LOSS OF BUSINESS INCOME – This is business interruption insur- ance. Hurricane Katrina taught small companies that it is not just the catastrophe you need to worry about, it is what comes after! Business Interruption insurance can solve the problem of seeing you through while you re-build your business by replac- ing lost income and paying continu- ing expenses you would be required to pay whether you are operational or not, such as mortgages, property taxes, etc. Rather than having a mon- etary deductible, Business Interrup- tion policies usually have a waiting period deductible – commonly 24 to 72 hours. The important thing to keep in mind for business interrup- tion insurance is that it only kicks in after a covered claim occurs, such as a fire, tornado, etc. Ÿ GARAGE LIABILITY – Certain industries, including the automotive recycling industry, present certain exposures that require special treat- ment. The existence of Dealer Plates, plus the exposure of vehicles held for sale and the repair of customers’ cars in your care, custody and con- trol are prime examples. These expo- sures can be handled by a general lia- bility and/or auto policy with riders attached, but the preferred method for handling these exposures is the Garage Liability policy. This is Ÿ DATA BREACH – If your busi- ness stores sensitive or non-public information about employees or clients on their computers, servers, or even in paper files, you are responsible for protecting the information and keeping it private. If a release or theft of this private information occurs, the Data essentially a general liability pol- icy and an auto policy combined into one policy. In addition to the coverage for general liability and autos, it also covers vehicles being driven under a dealer plate, plus it covers vehicles held for sale (deal- ers physical damage or “open lot” coverage) and customers cars in the care custody and control of the insured while the vehicle is being repaired, worked on, or waiting to be (Garage Keepers Liability). Other coverages The coverages outlined above are the “usual” coverage needed by most businesses – small or large. However, there are other coverages that are rec- ommended for most businesses that have employees. Ÿ EMPLOYMENT PRACTICES LIABILITY – This provides cov- erage for employment-related wrongful acts such as sexual harassment, wrongful termination, etc. This coverage can also be extended to third parties such as customers and vendors. Ÿ DIRECTORS AND OFFICERS LIABILITY – Larger corpora- tions, especially those with out- side investors, should always look into this type of coverage. Most small businesses do not usually need this as their leadership is unlikely to be sued. According to one recent survey, nearly a third of private companies reporter D&O claims from shareholders and other “stakeholders” in the past decade. D&O insurance protects the directors and officers of a com- pany against their actions /leader- ship decisions that affect the profitability or operations of the company. This coverage provides both legal defense and damages coverage if a director or officer of a firm is sued. Listed above are all insurance coverages that are common for most businesses – large or small. By having the proper coverage in place, your busi- ness can avoid a major financial loss due to a lawsuit or other catastrophic event. Even if you think your business does not have enough assets to be sued, or if you believe because your business is incor- porated you are shielded from personal liability due to the so-called “corporate veil”, you still need insurance because absolutely anyone can be sued, wages can be garnished, and bank accounts can be seized. Indeed, the smaller your busi- ness is, the more likely that you can be held personally liable for debts through your personal assets. And the best way for you to prepare to make an informed decision about buying the right coverage for your firm is to enlist the services of an insurance professional who knows exactly what your business does and rep- resents the insurance markets that are able to provide those coverages neces- sary to cover the exposures relevant to your business. A great place to start your search for the right agent to assist you is to contact your trade association, who may have access to tailored and less expensive coverage. Avoid major financial loss Breach policy will provide insurance protection against the loss and result- ing litigation.