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robintek

Aug 01
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LIABILITY INSURANCE: DON’T LET ‘SEVERABILITY OF INTERESTS’ MAKE YOU CROSS

By Construction Insurance Bulletin

Let’s say a general contractor or owner/developer asks you for a “cross liability” endorsement, but you can’t find this provision in the policy itself or as an endorsement. Should you be worried?

Probably not. Standard Liability coverage includes a cross-liability provision known as a “Separation of Insureds” agreement, with language that reads something like this: “Every insured claimed against under this policy will be treated, at the time of the claim, as if they were the only insured under the policy.” This clause essentially allows one party that the policy covers (for example, the general contractor) to sue a second party covered in the same policy (you). In this case, the GC is asking to be added to your Liability coverage – while reserving the right to sue you.

If the GC sues you, under the cross-liability provision you’ll be treated as if you’re the only insured under your policy: The insured status of the party suing you is irrelevant.

The Cross Liability endorsement provides an excellent example of the extensive coverage that makes your Liability policy such a valuable resource for protecting the financial assets of your business.

If you have any questions about your coverage, please feel free to get in touch with us.

Aug 01
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IS THAT CONTRACT INSURED?

By Construction Insurance Bulletin

To be in business means to sign contracts – and every one of those contracts requires that you agree to provide some guarantee. A common question is “will my insurance back me up on those guarantees?”

The answer can be complicated. For one thing, it’s essential to determine if the contract is one of the types that your Liability coverage specifies as an “insured contract.” Although other policy provisions can also apply (such as exclusions and limitations), if a particular contract isn’t considered an “insured contract,” look no further – your policy won’t apply.

Standard Commercial Liability policies usually define “insured contracts” to include:

  • Leases.
  • Sidetrack agreements (made with a railroad if you have tracks crossing your property).
  • Easement or license agreements.
  • Obligations required by ordinance to indemnify a municipality.
  • Elevator maintenance agreements.

Almost all Liability policies also include a broader provision that covers contracts under which your businesses assume the “tort liability” of another party for bodily injury or property damage. “Tort liability” is defined as liability that would exist in the absence of a contract or agreement. In other words, the liability you’re assuming must arise from the negligence of the other party to the contract. If the injured person can sue this other party without reference to any contract or agreement (“tort liability”), then a contract under which your business agrees to assume this liability will be considered “insured.”

Although it’s important, the definition of “insured contract” is only the starting point for determining if Liability coverage applies. Instead of assuming that your policy covers your contractual agreements, give one of our specialists a call. We can review the specific provisions of your current coverage as they might apply to your proposed contract and advise you about possible gaps.

Aug 01
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TAKE A WORKERS COMP SHORTCUT – AND WIND UP IN COURT

By Workplace Safety

Employers are often tempted to cut corners in lowering Workers Compensation costs. We’re here to tell you that these shortcuts only lead to legal headaches.

For example, when an employer decides to declare certain employees independent contractors, and thus exempt from Workers Comp requirements, the usual process is to terminate the employees, have them purchase their own insurance, and bring them back onto the job as independent contractors.

However, such arrangements eliminate one of the key advantages of Workers Compensation laws for an employer: The limitation on the right of an injured worker to sue the business. In other words, if the injured person is an independent contractor, they’ll receive no Workers Comp benefits – which means there’s no limit on their ability to sue your company for whatever damages the court might award! Even if you win the case, defending it will cost you time, money, and grief.

When you, as an employer, choose to use an independent contractor instead of an employee in the workplace, be aware that you’re trading immediate and limited savings on your Workers Comp premium for exposure to unlimited legal damages and other hassles.

Think about it, and give us a call whenever it’s convenient to discuss your options.

Aug 01
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HELP KEEP YOUR WORKPLACE FIREPROOF

By Workplace Safety

On an average day, there are more than 200 workplace fires in the U.S. These mishaps kill hundreds of workers a year, injure thousands more, and cost American businesses billions in damage and lost productivity.

An effective workplace fire prevention program should include these 10 essential elements:

  1. Inspect all areas of your workplace for fire hazards on a regular basis. Pay particular attention to areas where fires are most likely to occur. More than half of industrial fires break out in everyday workspaces, while a high percentage start in storage areas.
  2. Educate employees about fire hazards. Use bulletin boards, memos, and safety meetings to distribute fire prevention information. Update your training whenever new equipment or processes introduce new hazards.
  3. Have the right fire extinguishers. Have maintenance check extinguishers throughout your facility regularly to make sure they’re properly charged. If you expect employees to use extinguishers, OSHA requires that you train them to handle an extinguisher effectively.
  4. Store materials safely. Keep storage areas well ventilated and free of ignition sources. Be especially careful with flammables.
  5. Dispose of wastes promptly and correctly. Don’t allow combustible waste materials to accumulate. When disposing of other materials, consider the ease of ignition; For example, be sure to dispose of oily rags in closed metal containers.
  6. Emphasize good housekeeping. Ensure that all work areas are clean and free of fire hazards.
  7. Make sure ventilation systems operate effectively to remove flammable vapors, gases, and combustible dust.
  8. Service machines regularly. Set up and enforce an effective maintenance schedule. Pay attention to electrical safety. Check circuits, outlets, wires, and plugs regularly. If you allow employees to use coffeemakers, fans, and other appliances, require them to do so safely and turn off these devices at the end of the shift.
  9. Enforce fire safety rules to make sure that all employees follow these precautions.

We’d be happy to offer a complimentary review of your company’s fire safety program. Just give us a call.

Aug 01
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DOES WORKERS COMPENSATION APPLY OFF THE JOB?

By Workplace Safety

Examples abound of workers offering their skills outside the workplace: Nurses and doctors aid the injured or ill; contractors assist someone with heavy lifting or short hauling while on a hardware run; benevolent computer techies make a quick fix for a customer without a dispatch order. If one of your employees suffers an injury while providing such help, can the employee collect under Workers Comp? After all, they were doing their work.

A California correctional officer, injured while helping at the scene of an accident on his way to work, was denied Workers Comp benefits on the basis that his services did not qualify as regular employment. Citing an ethical standard set forth for correctional workers in the Ethics Cadet Workbook, the injured officer claimed it was his ethical duty as a corrections officer to assist those in need, regardless of when or where. Hence, he argued that his services at the accident were related directly to his employment.

However, the court disagreed, stating that: “The fact that the law enforcement code of ethics for correctional officers speaks of a duty to serve humankind and safeguard lives and property does not confer authority on a correctional officer to act outside the scope of his statutory jurisdiction.”

Knowing the eligibility rules for Workers Comp benefits is essential for you and your employees alike. Now might be the time for a refresher course. For more information about your Comp coverage rules, call our service team today.

Aug 01
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GROUP LIFE INSURANCE BENEFITS YOU – AND YOUR WORKERS

By Employment Resources

If you’re looking for a low-cost, high-value benefits product that can help you attract and retain employees, consider offering Group Life insurance coverage.

Here’s how these plans work: Because the overall risk of death among a group – defined as 10 employees or more – is far lower than that of an individual Life policyholder, the insurance company can offer you a far lower premium rate (the overall rate for your company depends on the group’s size and distribution by gender and age, together with the number of claims filed). You’ll pay a fixed premium for every $1,000 in coverage. Because Group Life is usually bundled with other benefits, such as health plans, your administrative costs will be minimal.

What’s more, unlike individual Life policies, coverage is written on a “guaranteed issue” basis, with no need for plan participants to pass a physical exam.

Group Life policies usually pay the beneficiary the employee’s salary for a full year. This provides a valuable short-term financial cushion for the loss of a breadwinner’s income. Some insurance companies offer extended coverage, with a death benefit of two or three years’ salary (and such add-ons as Accidental Death & Dismemberment and/or Travel insurance) to participants – usually managers or supervisors – who pick up part of the premium. This option also includes a portability feature that allows employees to keep their coverage when they change jobs or retire.

If you offer Group Life benefits, your insurance company will review the rates and terms every five years. It makes sense to re-evaluate your program whenever you’re planning significant changes in your workforce (hiring more employees, raising salaries, and so forth). You might well be able to enjoy improved coverage at lower costs.

As employee benefits professionals, we’d be happy to offer our advice on selecting a comprehensive, cost-effective Group Life plan.

Aug 01
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‘CHOOSE-IT-YOURSELF’ EMPLOYEE HEALTH CARE, ANYONE?

By Employment Resources

The landmark Supreme Court decision upholding the federal Affordable Care Act (ACA) will encourage more employers to replace direct payment of their workers’ health care premiums under a company-sponsored plan with a lump sum that employees would use to buy the coverage of their choice.

A growing number of smaller and medium-sized businesses have been offering this “defined-contribution” option – similar to 401(k) programs financed by employers making a single tax-deferred payment into a retirement savings account – for years. An employee health benefit plan financed by a lump sum payment can save employers as much as 15%-25%, compared with the cost of a conventional benefit program; that’s a significant advantage, given that the average health care premium for covering workers and their families has skyrocketed by 113% during the past 10 years.

What’s more, defined-contribution plans shift the responsibility for selecting a plan from the business to individual employees, which frees them up to tailor a program to the providers and benefits they prefer, rather than being stuck with employer-controlled, one-size-fits-all coverage (employees can also retain their plan if they move to a new job).

The ACA will simplify employees’ health care choices by setting benchmarks for coverage and creating insurance exchanges on the state level that offer a variety of programs.

The act gives businesses a powerful incentive to offer workers the “choose-it-yourself” health care option by funding high-risk coverage pools in individual states for workers with previously existing medical conditions. As of January 1, 2014, all Health insurers will be required to guarantee coverage for every private-sector employee.

To learn how you, and your employees, can take advantage of these new programs, please get in touch with our employee benefits professionals.

Aug 01
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ROI: THE KEY TO AVOIDING RIP FOR BENEFIT PROGRAMS

By Employment Resources

Business is tough. The financial markets are struggling. Layoffs and cost cutting remains the order of the day. Can employee benefit offerings be far behind? At many businesses, obviously not. But does this have to hold true at yours?

Not according to many benefit managers. They say the key to defending – and even expanding -benefit programs is the ability to make the business case for them. It’s not enough to argue that these programs improve quality of life or boost morale. Management needs to see the effect on the bottom line. In other words, they want benefit programs held to the same standards as the company’s other business processes – what’s the return on investment (ROI)?

Our employee benefits professionals can help by providing the bottom-line costs for your programs and the costs of any options you might wish to consider. With this information, you can present hard data to go with your success stories. For example, if you help a significant number of employees to quit smoking, so what? If you can put the answer to our “quit smoking” question in terms of its impact on health costs per employee, annual absenteeism rates, or meeting corporate mission statements about safety and retaining quality employees, now you’re talking about ROI: The language that drives the budget.

Aug 01
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SIX STEPS TO CURB EMPLOYEE THEFT

By Risk Management Bulletin

According to the U.S. Commerce Department, employee crime costs American businesses more than $50 billion a year – that’s “billion with a ‘B” – and three out of four employees have stolen from their employers at least once.

To help prevent a fox from getting into your hen house, a leading risk management group recommends these guidelines:

  1. Screen job candidates. You might discover that a potential employee was fired from another job for stealing. A thorough background check can give you hard evidence when doing an interview. Look for discrepancies between what the candidate says and what’s on paper; too many differences will point to a problem.
  2. Reduce the temptation to steal. Be careful when making operational changes. The thief might become familiar with the change and believe that they have specialized and private information they can use to their advantage. To avoid this danger, let everyone know about new procedures. Also, lock and bar all windows in warehouses or storerooms, create employee sign-ins in these areas, and never leave anything lying around to be picked up easily.
  3. Protect monetary assets. Thieves sometimes write checks to ghost employees or vendors and use the money for their own finances. Separating accounts payable from accounts receivable will reduce the chances of such a fiasco. Also, if Jim in sales never, ever takes a vacation, something might be amiss; he might be snooping around or doing something besides genuine hard work.
  4. Schedule periodic audits. If this isn’t possible, have an outside party review your accounting and bookkeeping practices.
  5. Create a zero-tolerance policy. Potential in-house thieves won’t be as inclined to steal if they know that they’re risking their job.
  6. Investigate suspected fraud. The Association of Certified Fraud Examiners (www.acfe.org) offers expertise in this field.

For an in-depth review and analysis of your in-house security precautions, please contact our risk management specialists.

Aug 01
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DON’T LET YOUR COVERAGE GO BROKE!

By Risk Management Bulletin

You can’t turn on the television, surf the Web, or read the papers without realizing that the economy is in transition — which means that a company’s financial fortunes can change daily. Amid all this change, how safe is your insurance company?

Even the strongest financial entities could face a devastating blow from market conditions, whether due to deteriorating claims experience or uneven investment results. As professional risk managers, we can’t ignore the possibility that your insurer might become a victim of today’s unsteady business climate.

To address this remote – but not impossible – scenario, we take these precautions:

  • We monitor various rating services, such as Best’s, which regularly reviews the financial stability of insurance companies. Although a good rating doesn’t guarantee a problem-free carrier, it offers a strong indication.
  • We help you stay on top of the marketplace by determining if there are better options for placing your protection.
  • We also factor in how comfortable you are with the financial stability of each option. We work with you to see how your state “guarantee fund,” designed to protect policyholders when their insurance company can no longer pay its claims, can provide a safety net for your business.

For an in-depth analysis of your coverages, give us a call.

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