December 14, 2011

Understanding Business Interruption Insurance

Understanding Business Interruption Insurance: This is probably the one risk area that is often overlooked and most likely to put a company out of business shold they suffer a loss that causes an interruption. Time and again we see examples of companies not understanding this coverage and not having the proper coverage at the time of a loss. When business is interrupted by a disaster, business interruption insurance will help get it up and running again as soon as possible, but if your building is heavily damaged and your equipment and materials are gone, how do you do that? Your main concern is to keep your employees, keep your existing customers, and to maintain your excellent relationship with your suppliers. Business Interruption Insurance is designed […]
November 16, 2011

Communication-Key To Injury Management

Communication- It Can Help You Lower Work Comp Costs As simple as it appears that simple word is a major barrier when it comes to workers’ compensation claims. However, if your employees and supervisors don’t know what is expected of them when an injury occurs you are likely paying more than you should for your workers’ compensation coverage. While employers spend money on loss control efforts, incentive programs and safety programs they often fail in one of the key areas to help control workers’ compensation costs. Yes, it is important to focus on injury prevention but that isn’t enough. There are two more areas that employers need to focus on, managing the injury and managing the return-to-work process. Injury reporting is a key factor in […]
November 9, 2011

Contractual Risk Transfer Recommendations

CONTRACTUAL RISK TRANSFER RECOMMENDATIONS The following checklist suggests some approaches for minimizing friction between contracting parties (or the possibility of unknown breaches of contract requirements) while still securing realistic protection for risk transferors. • Update your insurance requirements to reflect modern insurance terminology. If your contract still requires “comprehensive” general liability insurance with a broad form property damage endorsement, it was written in the dark ages. • Construct your additional insured requirement to deal with the other insurance issue in a manner that works with the standard industry approach instead of requiring special language that achieves nothing more but is very difficult to obtain. • Don’t require a waiver of subrogation endorsement on the transferee’s general liability policy. Include a waiver of subrogation in the […]
October 14, 2011

Shun Those Cell Phones While Driving

Shun Those Cell Phones While Driving More than 20 percent of injury crashes in the United States involve reports of distracted driving, according to the National Highway Traffic Safety Administration (NHTSA). Of those killed in distracted-driving related accidents, 18 percent involved the usage of a cell phone. Another study indicates that using a cell phone while driving, whether it is a hand-held or hands-free device, delays a driver’s reactions as much as having a blood alcohol concentration at the legal limit of .08 percent. Cell phones, and particularly smart phones, are considered one of the leading driver distractions. As a result, more and more communities are placing restrictions on drivers’ use of cell phones. The following tips are offered to motorists with regard to cell […]
September 28, 2011

Ordinance & Law Coverage-Often Overlooked

One of the most overlooked coverages that building owners don’t have is Ordianace and Law Coverage. Building codes are constantly being updated, but many business buildings may not be exempted from the newer codes simply because they were constructed prior to the enactment of the new statutes. The building laws exposure that this endorsement was originally designed to cover was the exposure created by many local building ordinances, requiring any building which is damaged to some specified extent (such as 50 percent) to be demolished and reconstructed in accordance with current building codes. Other ordinances that could affect rebuilding are zoning laws and ADA compliance.  Ordinance and law coverage is not included as a standard part of a business policy as it actually improves a business’ pre-loss condition. […]
August 19, 2011

Big Changes Coming For Your Ex Mod Factor

NCCI has recently announced some news that will have an impact on how your NCCI experience modification factors are calculated. For the first time since 1993 NCCI will be adjusting the Spilt Point. Remember, the experience rating modification is affected by small losses more than by large ones because small losses are more frequent and predictable than large losses. The portions of all losses that are $5,000 (split point) or less, which are termed “primary losses”, have the greatest influence in determining the experience modification. Losses in excess of $5,000 go into the “excess losses”.     Every loss is divided into a primary and excess portion. Since small losses – those less than the split point – have NO excess value, primary losses work as an […]