August 2017

In Arenas vs. El Torito Restaurants, a California appellate court ruled on the possibility of a class action lawsuit for the misclassification of all managers at the El Torito restaurants as exempt.

Although the court gave a lengthy analysis about the appropriateness of the class action case, for our purposes, what’s important was that it warned employers that just because managers might be exempt at one store they might not be exempt at another store. It depends on the circumstances.

At some El Torito restaurants, many of the managers also did work performed by the staff or busboys. In other larger, busier restaurants, they did less of this work. Employers should determine whether managers are exempt on a case-by-case basis unless there’s complete uniformity in operations.

The plaintiff’s complaint also lays out the laundry list of exposures employers face by misclassifying managers as exempt; violation of wage and overtime regulations, failure to furnish wage and hour statements, or not providing rest and meal periods.

Convenience stores, including those that offer gas, food, car washes, vehicle repairs and truck stop facilities, often enjoy a steady stream of traffic. As a convenience store owner, you do face multiple risks and hazards, however. Protect your business with convenience store insurance. It covers several key elements.

General Liability

With general liability insurance, you receive broad coverage that insures you against a variety of risks and hazards. It also grows with your business as you add new inventory, products or stores.

Purchase general liability insurance and receive coverage for:

• Premises Liability – If a customer is injured on your property or their property is damaged while on your premises, you are liable for the medical payments or repairs. Liability coverage pays for these expenses.

• Products Liability – There’s always a risk that one of your suppliers, manufacturers or distributers could provide you with a product that causes harm to your customers. Use your products liability insurance to pay medical costs, legal defense, settlements and related costs.

• Completed Operations – When an employee makes a mistake activating a cellphone, issuing a money order or performing another service, the customer could sue your business. Completed operations insurance pays these claims.

Business Owners Policy

Also known as BOP, a business owners policy protects your physical and intangible business assets. It includes general liability and other protections based on your needs. Several options under a BOP policy include:

• Buildings and Contents
• Business Income and Extra Expense
• Electronic Data
• Employee Dishonesty Coverage
• Newly Acquired or Constructed Buildings

Workers’ Compensation

Workers’ Compensation is normally required by law. When an employee is injured or becomes ill because of the job, this coverage pays for related expenses.

Business Auto

You or your employees may drive a vehicle for business purposes. Your business auto insurance will cover any liability if you cause an accident or property damage. It can also pay for any goods that were lost or damaged, vehicle repairs, injury expenses or medical bills.

Commercial Umbrella

Even if you purchase all the insurance options available, you may still need additional protection. A commercial umbrella policy extends your coverage limits and protects your business and assets.

Consider Additional Coverage Options

In addition to these five insurance categories, you can purchase insurance for:

• ATM Machines
• Canopies
• Car Wash Building and Equipment
• Flood Insurance
• Garage Keepers Liability
• Liquor Liability
• Pollution Coverage for underground storage tanks
• Pumps
• Theft and Crime
• Utility Time Element Coverage
• Windstorm Coverage

Convenience store insurance is important. Discuss your needs and options with your insurance agent as you protect your business.

Once annual enrollment has come and gone, it’s a good time to brush up on some basic benefit plan requirements, to avoid some of the common mistakes made in employee benefit plan administration. The following list of potential errors is by no means exhaustive, but represents a sampling of issues to steer clear of:

Keep your plan documents up to date and reference them in related plan communications. ERISA requires that all employee benefit plans be maintained pursuant to a written plan document. As the governing document for the plan, it should be reviewed regularly, and amended if necessary, to keep up with new laws and regulations (such as health care reform). Since this will be the most detailed document regarding any given plan, it should be referenced in disclaimer materials included in less formal plan communications (such as annual enrollment materials) as the document that will control in the event of discrepancies, or errors or omissions in these other ancillary communications.

Keep summary plan descriptions (SPDs) up to date and distribute them to employees. ERISA requires that employees receive an SPD covering each benefit plan, and specifies the information that must be included in the SPD. Plan vendors might supply booklets or other communications materials to distribute to employees that describe the plan, but these are unlikely to meet the requirements for an SPD. When plan changes result in an SPD needing modification, an employer might distribute a summary of material modifications in the interim before preparing an updated SPD.

Include only eligible employees (and dependents) in your plans, as to do otherwise will run contrary to plan documents and represent unnecessary coverage costs for your company. Improperly covering ineligible individuals — contractors, leased employees, former employees, etc. — can be a costly proposition. Similarly, maintaining formerly eligible dependents who, for example, have aged out of the plan, unnecessarily adds to plan costs. Eligibility audits can help to mitigate this problem.

Follow plan terms in administrative practices. The plan document governs, and both internal staff and outside administrators must follow the terms of the plan when making eligibility and claims decisions, issuing plan notices, handling appeals, etc.

Make sure plan contributions are calculated properly. This includes taking into account the definition of compensation that is in the plan (which might include bonuses, commissions, etc.) and calculating matching and profit sharing contributions correctly.

If you allow employees to pay for any benefits on a pretax basis, a cafeteria plan is required. Although the term “cafeteria plan” might conjure images of employees selecting from a menu of benefit choices, a cafeteria plan is, at its most basic level, a premium only plan, and is required to be adopted before employees can pay their health (or dental, vision, etc.) plan premiums with before-tax dollars, or to make before-tax contributions to a health care or dependent care flexible spending account.

If employees make salary deferrals to a 401(k) plan, these deferrals must be deposited into the plan trust on a timely basis, as by DOL regulation they become plan assets as soon as they can be reasonably segregated from the employer’s general assets.

Review your COBRA administrative practices to make sure all individuals qualified to elect COBRA coverage receive the proper notices, for all plans subject to COBRA (the health plan, but also the dental and vision plan, and the health care flexible spending account). Administrative errors can result in fines and penalties, lawsuits, and employee discontent. An annual plan self-review can avoid these potential costly consequences of common mistakes.

Your job as a fitness instructor is to help other people get and stay healthy. Unfortunately, accidents and injuries can happen during individual or group trainings or classes. Fitness instructor insurance protects you if you are sued by a student for injuries or damages.

Who is Eligible for Fitness Instructor Insurance?

Fitness instructors over the age of 18 are eligible for fitness instructor insurance. Depending on your policy, you can work in these fields:

• Acrobatics
• Aerobics
• Cardio kickboxing
• Children’s fitness classes and programs
• Dance
• Exercise
• Fitness boot camps
• Personal trainer
• Pilates
• Spinning
• Strength
• Tai Chi
• Tumbling
• Yoga
• Zumba

What is Covered in a Fitness Instructor Insurance Policy?

Your fitness instructor insurance policy will cover several conditions.

General Liability – pays for bodily injuries and property damage caused by your fitness instructor activities

Professional Liability – covers wrongful acts, including breaches of duty, neglect, omissions, errors and misleading statements

Damage to Premises – pays for repairs if you or a student damages the building you rent for fitness activities

Sexual Abuse Liability – covers expenses related to charges of sexual abuse

Legal Liability – pays for expenses related to legal fees when a class participant sues you

You may also be able to purchase coverage for:

• Personal or Advertising Injury
• Medical Expenses
• Defense Cost Reimbursement
• Products Liability

Why do you Need Fitness Instructor Insurance?

Whether you teach fitness classes in your home, school, gym or training facility, you are responsible for your students. If they’re injured while training with you, they could sue you. You’ll be liable for the resulting medical payments, legal fees or other damages.

Fitness instructor insurance can cover your liability and pay any expenses that are your responsibility. It gives you peace of mind and protects your business and assets.

You also may need this policy to teach in certain settings, and clients may choose you over a competitor because you have insurance. With a fitness instructor insurance policy, you could potentially expand your business.

How to Purchase Fitness Instructor Insurance

Talk to your insurance agent today about fitness instructor insurance. Your policy can be customized based on the types of classes and style of exercise you teach, how often you teach and where you teach. Share details about your work with your insurance agent to ensure you purchase adequate insurance for your needs. Remember to update your agent, too, if your business services, location or focus changes.

Fitness instructor insurance protects you as you help others achieve their health goals. Purchase a policy before your next class to ensure you have this important coverage and protection.