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June 2016

Do I Need Habitational Insurance?

By Business Protection Bulletin

1606-BB-4Running a rental business brings its own unique risks and challenges. You’re not just responsible for your property, your apartment and condominium complexes, you’re also responsible for the people who live in them. Habitational insurance combines elements of home insurance, business insurance with all manner of liability concerns.

Anyone who runs a business in a building where customers and clients can come to visit in the flesh knows that they’re going to need liability should anything happen to their visitors. With habitational insurance, even more so than hotels and other homes-away-from-home, you’re looking at more long-term risks. Brief exposure to toxic mold,  for instance, isn’t so dangerous, but leave a moldy spot in a tenant’s bathroom for too long and you could be looking at some major health expenses.

A question worth asking: Who needs habitational insurance?

The answer is: Just about anybody who owns a rental property. Of course, the more tenants you’re servicing, the more important habitational coverage will be, but even if you’re just renting out a single house to a small family, habitational insurance will cover you for risks that are not covered by basic homeowner insurance. A solid habitational policy can also cover risks that you’d be more willing to pay for out-of-pocket for your own home. Vandalism, for instance, may be considerably more expensive to clean up and paint over when you are running an apartment building than when you only have one house to worry about. You can take a bucket of paint and get rid of the graffiti on your own garage door with about a half hour’s worth of work. A group of teenagers breaking all the light fixtures in an apartment building, on the other hand, will be a little more expensive.

There are also risks that don’t exist at all for homeowners. Loss of rental income, damage to outdoor signs, accounts receivable losses, insurance to cover your association directors and officers in a condominium community and so on.

Habitational policies are there to keep you covered when you need business insurance, and your business is in homes. You are responsible not only for the building where you rent units out to tenants, you are also responsible for tenants and their visitors, as well as any employees you may have helping you maintain your business. If you’re renting out so much as a single room to a single tenant, it’s not a bad idea to look into a habitational policy.

Driving For A Living: Covering All Your Bases

By Business Protection Bulletin

1606-BB-3If you’re a part time passenger transportation professional, whether that means driving a taxi on weekend or picking up an Uber passenger when you’re already going in that direction, you probably don’t want to be driving any customers anywhere without getting covered under some form of taxi cab insurance provision.

Okay, maybe you can take that hitch hiker up on his offer to pitch in for gas and not have to worry about it. The chances of something happening that will lead to you being held liable in a professional capacity in that instance are relatively slim. But if you’re driving passengers around on even a semi-regular basis, you’re increasing your risk of paying extensive costs out of pocket with every new customer you pick up. Here’s what you’ll want to do to make sure that your bases are covered:

Make Sure Your Insurer Knows What You’re Up To

Here’s the good news for Uber drivers: For anything that happens while the app is on, Uber provides supplemental insurance. Lyft offers similar coverage for all of their drivers. If you’re driving a taxi, different states legislate the industry in different ways. In some states, you’re not allowed to work as a private taxi driver at all, in others, you might not even need a specialty license to do some part time cab work. The taxi driver insurance requirements from state to state are just as varied. For instance, if you have a history with drug or alcohol problems, if you’ve ever been convicted on weapons or ATF charges, you might not be allowed to buy taxi insurance in the first place. Uber driver insurance requirements are more lenient in some ways, but Uber won’t hire people with certain convictions on their record.

Keep Your Own Tabs

You get mixed up with all sorts of people when driving for a service like Lyft or Uber. Keeping your own personal records can help keep you out of hot water in the future. There are all sorts of recording apps out there that can be used for security against would-be thieves, and even to prove your own innocence should you be implicated in a crime. A Muslim cab driver accused of a knifepoint assault in the UK back in 2013 exonerated himself with a voice recording app that he had been using for security purposes. Your employer’s first concern is protecting their own business. Your own safety is, to some extent, in your own hands.

Hopefully we’re not painting too grim a picture of driving for a living here. The instances where things go wrong are far outnumbered by the instances where things go right, but that’s what insurance is for, isn’t it? To protect you when things do go wrong, no matter how common or uncommon those instances may be.

Why Some Insurers Won’t Cover Delivery Professionals

By Business Protection Bulletin

1606-BB-2Kitchen fires, food poisoning, liability, spoilage. People who run sit-down restaurants have it easy. The real nitty gritty insurance risks come when you start delivering food to people’s homes. It’s like the wild west out there, anything can happen.

You’re ready to look into franchise delivery restaurant insurance as soon as you start running a business that delivers. If there’s one exception, it may be when you’re the only person doing the delivering, and you don’t mind paying any unforeseen expenses out of pocket. If you have people delivering for you, then you’re responsible for the restaurant, for the food, for the customer, for the driver, and, to an extent, for their car. Their personal insurance might help to cover a lot of what might happen out on the road, but whatever your drivers do on company time may wind up costing company dime.

In some instances, your driver might be totally covered under their own policy, for their own expenses, that is. Their insurer isn’t likely to be the one paying out if they are robbed while delivering for you, and their policy might protect them, but it might not protect you if they are found at fault in an accident that occurred while they were on the job. Furthermore, some insurance providers won’t cover delivery drivers in the first place, forcing these drivers to seek specialty insurance or, in some cases, drive a company car under their employer’s policy. Many insurers cite the high mileage that comes with the job. All those little ten minute trips to and from the customers’ homes may not seem like much throughout the day, but by the end of the month, a pizza deliverer has racked up more miles on their car than some of us drive in a year.

If your employees are driving company cars, then you’re going to be looking into commercial auto insurance. If your drivers are using their own personal vehicles, then you’ll need to make sure that they have full coverage for themselves, including some form of pizza delivery insurance to cover their own end should something happen to them on the job. You will also need to ensure that your insurer knows that you’re employing delivery drivers, and talk to them about what sort of coverage they can offer you, from data compromise insurance to employment practices liability to food contamination and, if you serve alcohol, liquor liability, as well.

Why the American Railroad is Still as Relevant Today as Ever

By Business Protection Bulletin

1606-BB-1Railroad insurance. Now there’s something that most people don’t think about very often. To the average American, the railroad is something from the old west. Of course the truth is that after a couple hundred years, we still haven’t figured out a better way to get a whole bunch of stuff across the country quickly than the railroad. Trains and tracks are as relevant in 2016 as they were in 1916, still the backbone of the North American economies, and still the most beautiful way to see the country.

With advances in technology, trains are safer than ever, but, the risks have, if anything, become greater. If a truck turns over on the highway, you lose a truckload of product. In a train accident, you may lose several miles worth of product and millions of dollars in equipment. In other words, while a major railroad crisis is less common now than it was a hundred years ago, it’s still going to be too expensive for anyone but King Midas to pay for out of pocket. There aren’t a lot of minor disasters in the railroad business, and there aren’t a lot of inexpensive ones, either.

Although the public generally doesn’t spend a lot of time thinking about the train industry when everything goes right, it seems like they can’t think about anything else when something goes wrong. A disaster resulting from a defective part will have people on Facebook and Twitter speculating and debating as to who’s really to blame on this one and proudly declaring that this is why they choose to drive everywhere. It’s for this reason that you won’t meet a lot of railroad professionals who don’t have a crisis management expense reimbursement provision in their policy along with railroad protective liability and rail servicing liability. When you have a fender bender in your private vehicle, nobody needs to know about it but you, the other driver, and your insurance companies. When something goes wrong on the track, a lot of time, effort and money goes into protecting your reputation in the public eye.

While people tend to think of the railroad industry as something of a relic, the truth is that few professionals put as much time and effort into pushing their technological boundaries as those who run trains for a living. With the tremendous risks and liabilities that come with railroads, the ceaseless push for safer, smarter ways of transporting cargo is absolutely vital.

Supreme Court NCCI Ruling in Oklahoma Affect on Workers Comp

By Workplace Safety

1606-WC-4When the law sets a precedent for a certain situation in workers comp, it impacts future rates for employers. Recently this was seen in Oklahoma, where the Supreme Court ruled in favor of a woman who had injured her knee while on the job with Sprint PCS. It will likely cause in jump in rates for everyone.

Understanding her case is the key to understanding the hike in costs. After the worker filed a claim for her knee injury, she received sanctioned medical support from her employer based on current workers compensation laws. After some time passed though, it was clear her knee was never going to be what it was before.

She did come back to work once doctors let her know there wasn’t anything more they could do, but she had difficulty performing her job. At that point she filed an appeal for additional support, but was denied by the lower courts based on the provisions of the laws. She then took it to the Supreme Court where the ruling was reversed and she was granted additional compensation based on her injury.

While this case was judged based on its own merits, it’s easy to see why the scenario could easily repeat itself. Based on the extra money having to be paid out to her, the rates will need to go up to cover these additional expenses. The National Council of Compensation Insurance has already showed the Oklahoma Insurance Department that their loss costs (expenses paid out due to the injured) have increased by about 3.4 percent. This affects all employers, so it’s expected that rates will climb soon.

You may not live in Oklahoma, but it’s important to remember that your rates aren’t just based on what type of company you are or how you choose to run your organization. You can do everything possible to keep workers safe, but there are other factors at play that have nothing to do with you. This is the nature of insurance, and something we all have to contend with in both personal and professional sectors.

This case study is not a reason for you to throw up your hands though. The more you stay involved in what’s happening around you, the more likely it is you’ll see the pitfalls of other employers. For example, you can change safety practices based on how other employees were injured. You’ll also be more prepared with how you prepare your budget when you do see cases like this on the news. For the Sprint employee, her initial denial was ruled unconstitutional, so may also give you an indication of reform to come in the state of Oklahoma.

Workers Comp and Personal Injury: Understanding the Difference

By Workplace Safety

1606-WC-3Injuries can be difficult to define, and it can be hard for people to agree upon both the event in question and the outcome it deserves. Fortunately, we have laws in this country that help settle the debate. However, claims can be filed without employers even realizing that the actual information itself is suspect. Here’s what you need to know about personal injury and a workers compensation claim so you don’t confuse the two.

Personal Injury

Anyone injured due to a 3rd party may be able to file a personal injury claim. Not only can you file for the direct costs of the physical damages, but also for emotional distress as well.

Workers Comp

Workers comp is any injury suffered while on the clock. Those who successfully file a claim generally receive direct costs and possibly disability payments, as well as a potential final settlement in severe cases.

Burden of Proof

The extent you need to produce proof of your claim is different depending on which type you file. For a 3rd party personal injury claim, the injured will need to show there was negligence on the other person’s part as opposed to their own personal mistakes. Workers compensation is generally easier to have approved – even when employers can show the employee was not performing his or her job correctly at the time of the incident. While each state has its own laws and each person has their own interpretation to the laws, these are guidelines to keep in mind.

When Worlds Collide

Sometimes there are cases where a 3rd party causes injury while on duty. In this case, it becomes harder to determine how the case is filed. Because workers comp doesn’t cover any type of emotional damages, the injured can file both claims. However, this is where it gets complicated. Employers may pay out right away to a workers comp party but if the personal injury suit is approved, they may be able to recoup their costs based on the 3rd party settlement. Employees are not supposed to double dip essentially into both the pockets of their employer and the directly responsible party. Lawyers and courts will handle the negotiations in different ways, so having a person on your side who knows the law inside and out is your best bet for this complicated situation.

Keeping Everything Straight

No matter what type of situation you’re involved with, you need to keep clear documentation for the lawyers involved. For this case especially though, there will be plenty of questions about the facts. If you want any hope of recovering the money, then you’ll need the evidence to back everything up.

Industries that Raise Workers Compensation Costs for Everyone

By Workplace Safety

1606-WC-2Some industries are inherently more dangerous than others, and we accept that it will make insurance rates higher for the rest of employers. However, it still benefits you to know when and where rates change based on this, so you can plan for the future of your business. For example, if your city sees the addition of an additional thousand workers to be added to your fire department, you can prepare a budget that takes that into account.

California City Workers

It was recently reported that the costs for injured employees in Santa Monica are on the uptake and do not appear to be slowing down any time soon. It was found that the police and fire departments as well as the city’s bus system were the responsible parties. They saw a 7 percent increase from last year to this year, with a 15% rise in indemnity costs. More than half the cases saw the need for workers to completely abstain from work. This is not surprising for the city, as costs have been rising for quite some time. Between 2014 and 2015, they paid $5 million and then proceeded to increase it to $6 million for the next fiscal year. In the coming year, they’ve budged over double that at $13.8 million. These increases are staggering based on the claims themselves.

The Financial Future

It doesn’t appear that this is sustainable for anyone, and it’s affecting people across the board. Even those who participate in the Self-Insurance Fund to escape the costs of higher premiums are expected to feel it. The 5% projected increase in the financial forecast in Santa Monica for this group will likely end up being much more than that. The open claims are up several million from last year, mainly due to police employees. Many of the closed claims involved putting workers on permanent disability, with the condition that all medical treatments stemming from the injury will be covered for life.

What Can Be Done?

There is only so much you can do if you’re experiencing something similar in your area. For Santa Monica, they’re seeing an aging police force who are unable to keep up with the high-demand nature of their job. While the city is looking into ways to curb costs, it will likely be done on the legal side as opposed to directly working with employers. They want medical care to be accelerated for less downtime from workers as well. Staying informed and sending letters to officials when possible is a smart move when you see costs rising, as well as looking into any type of alternative action as well for insurance plans in your area.

How Can Workers Prove Chronic Pain: Case Studies to Learn From

By Workplace Safety

U1606-WC-1nfortunately, you can’t actually see chronic pain. You can talk to someone who physically looks fine, yet is claiming they can barely stand up. Since pain is felt differently by different people, medical professionals and laypeople alike have difficulty categorizing and defining the more severe injuries. This leads to confusion and sometimes outright fraud. Let’s look at how pain is defined by using a specific case study.

A Question of Proof

How injured do you have to be to claim injury? Do you have to be constantly writhing in agony or is it only when you make specific motions? These are specific questions that get a bit touchy. Recently, a man who filed for compensation claimed that he needed a wheelchair but was then shown to be out of his home shopping without it (and seemingly without pain) through video surveillance.

They also had him on camera performing a number of other activities as well. He was arrested with the possibility of up to five years in jail. Since the amount paid out due to his injury was more than a half million dollars, it’s certainly brought about some attention in his area of Florida. The man was a deputy there, and was injured when bending to get his laptop from the trunk of his police cruiser in 2007.

After that, he went through surgery and stated that he couldn’t walk, drive or bend, which has then been shown to be false by videos. He states that he had always been consistent in reporting his pain to be inconsistent because no two days are alike. He says that while the video may show him driving and running errands, he can only do so in limited ways. He claims his whole life is a mess, with his job ripped out from under him and expenses piling up. It’s now up for the courts to decide who has the better claim and what will happen.

Employer Tips

No employer wants to follow their employee around constantly to check up on their progress and verify the truth in their claims. Also, it’s difficult to accuse someone who’s experienced severe injuries of trying to game the system. However, sometimes it’s necessary with the case of chronic pain to be more involved. Medical professionals have been shown consistently to raise costs without cause in certain areas where they have direct financial incentives to do so as well.

Through questions and visits, you can start to see the character of the person behind the claim as well as the treatment they’re receiving. If you do suspect foul play on either side, then your insurance company will be more than happy to help. After all, they stand to lose out on fraudulent claims too.

How to Take Breaks as a Small Business Owner

By Risk Management Bulletin

1606-RR-4As a small business owner, you have a huge responsibility when it comes to making your business a success. Your heavy workload can lead to burnout, though. Improve your ability to stay in business and boost your creativity, productivity and focus when you take breaks.

Schedule Breaks

Your daily schedule is filled with meetings, trainings, projects and networking. These tasks are essential, but where are your breaks?

Starting today, include meal times, regular exercise and family nights into your daily schedule. Mark out vacation, too. Writing breaks on your schedule shows that you prioritize them and ensures you have time to eat, play and relax. Adding breaks to your schedule models a good work life balance to your staff, too, which helps them stay focused and energized at work.

Stick to Your Schedule

Now that you added breaks to your schedule, take them! Don’t make excuses or promise to take a longer break tomorrow. Tomorrow will be busy, too.

Set alarms on your phone that remind you to stick to your break schedule. You can also plan a fun activity, like chatting with a friend, walking your dog or eating your favorite sushi to enjoy on your break. By keeping your schedule, your creativity, productivity and work life balance will thank you.

Take Advantage of Natural Stopping Points

You’re all set to take breaks, but the big projects you have scheduled don’t take breaks. Use natural stopping points to stay on track and get away.

Divide the project into milestones, calculate how long each milestone will take to complete and schedule your breaks to occur then. This technique gives you something to work toward and look forward to, and after your break, your brain will be fresh and ready to tackle the next thing on your to-do list.

Make the Appropriate Arrangements

Don’t let your work keep you from taking the breaks you need. Whether you get away for a few hours or a few weeks, a little planning and a few arrangements allow your business to keep moving forward even when you’re not present.

To put your plan in action, assign staff to do your duties. Then communicate with your clients. Work out a schedule that allows you to get away and finish any projects, even if that means putting in a few extra hours before you leave or postponing some work. The planning effort is challenging, but your mind and body need to get away from work once in awhile.

Breaks allow you to regroup, recharge, prevent burnout and stay focused. They’re essential for your business’s success. What will you do during your next break?

The Difference Between Employees and Independent Contractors

By Risk Management Bulletin

1606-RR-3As a small business owner, you need help to run your business. You can hire someone, but you have to be careful that he or she is classified properly. Otherwise, you could face hefty fines from the IRS. Learn the difference between employees and independent contractors before your next hire.

What is an Employee?

Employees are workers you hire for a specific job. They are an integral part of your business and receive most of their income from you.

You determine the employees’ work hours and schedule. If they do not show up for work at their assigned times, they could be fired.

When paying employees, you must take out taxes and any insurance coverages. They receive a regular paycheck from you.

Employees use your tools, equipment and materials. In most cases, they are not required to provide any of these items for their job.

What is an Independent Contractor?

Independent contractors are self-employed. They use their skills to help business owners like you meet temporary needs. Examples include plumbers, freelance writers and office cleaners.

When hiring independent contractors, remember that they work for whomever they want and do not rely solely on you for their income. They also bring their own tools and pay their own taxes and insurance costs.

You do still need to write, review and sign a contract that verifies the pay rate and project completion date. However, you do not micromanage the work. Independent contractors cannot be fired for not showing up one day as long as they are completing the work according to the contract.

Use this checklist to determine if the workers you hire are employees or independent contractors:

    • Do you or the workers provide the tools, supplies, equipment and materials?
    • Do you or the workers set their schedule?
    • Is the work permanent or temporary?
    • Are the workers micromanaged or allowed to do the project on the timeline they prefer?
    • Do the workers rely solely on your for their income or have multiple jobs going at once?
    • Do you pay taxes and insurance for the workers or are they responsible for those financial obligations?
    • Are the workers an integral part of your business or needed only occasionally?

Employees and independent contractors are different. Protect yourself and your workers when you understand the differences before you hire anyone. For more information, talk to your financial advisor or attorney. Make sure you have adequate insurance for your business, too, as you grow your team.