Self-Insured Groups: Balancing Today’s Premiums Against Tomorrow’s Uncertainty

Workers’ compensation insurance can be an expensive and cumbersome proposition. This has made self-insured workers’ compensation an appealing alternative for some employers. Using a self-insured group to take over workers’ compensation obligations from a traditional insurer can offer lower premiums and increased transparency. However, it also means that employers who are not in the insurance business accept responsibility for the risk and uncertainty that insurers typically shoulder.

Learning Today About Last Year’s Injury

In any policy year, workers may suffer injuries they don’t report until a future policy year. They may also file claims that aren’t resolved for several years. Thus, an insurer won’t know the final cost of a given policy year until several years later. This is especially true of industries with large numbers of reported injuries or particularly expensive injury claims.

Your Competitor’s Liability May Now Be Yours

California is one of several states that impose joint and several liability on the members of a SIG. If one of the members of a group can’t pay its share of workers’ compensation claims, then the other members of the group are obligated to do so. This means that a competitor’s poor safety practices (or poor financial health) could end up becoming your problem.

An insurance company reduces your liability and risk to a single known quantity, your yearly premium. Long-running claims or injuries at other companies become the insurance company’s problem, not yours. This is why deciding between a traditional insurer and a SIG involves a lot more than just comparing annual premiums.

 

3 Things That Set Temporary Staffing Agency Insurance Apart

Like all businesses, temporary staffing agencies are required to maintain certain types of insurance policies to ensure adequate coverage for owners, employees, and customers. Staffing agencies face a unique set of risks, however, that they must assess in order to identify and adopt the most suitable temporary staffing agency insurance policies for their individual needs.

1. More Risks

One thing that sets temporary staffing firms apart is their need to cover more parties than traditional insurance policies typically cover. Firms are responsible for insuring clients––the businesses that turn to them for viable employees––as well as the workers they recruit to pass along to these eager businesses.

2. Unique Needs

No two staffing firms are alike, which means their insurance needs vary drastically. The size of the firm and the type of workers they place can alter the coverages needed in order to avoid legal trouble. Firms placing people in the medical industry, for example, must be well covered, as one wrong move can prove injurious or even fatal.

3. Wider Coverage

Because of the increased insurance needs, staffing firms may come across more coverage options than their fellow businesses. On top of typical policies like general and professional liability, options such as employment practices and employee benefit liability can be equally beneficial.

Temporary staffing agencies make finding a job less stressful for employer and employee alike. To ensure the smoothest experience possible, it’s critical that agencies evaluate their insurance coverage needs and obtain all necessary policies.

3 Reasons Why Your Business Needs Travel Accident Insurance

In many industries, routine business travel is a necessary part of the job. Since businesses are responsible for anything that happens to employees while they’re on the clock, insurance via business travel accident coverage is one of the best ways to prevent a minor incident from becoming a major hassle.

1. More Opportunities for Accidents

Any time you get in a car or plane, you face the inherent risk of experiencing an accident. Thus, traveling for work greatly increases your chances of becoming injured on the job. This is especially true for those who travel frequently or those who make international trips.

2. Expect the Unexpected

Although transportation issues may be the most obvious threats while traveling, there are countless other risks that can affect travelers. Depending on the location, employees may be exposed to serious illnesses or even acts of violence. It’s also wise to plan for medical emergencies that are unrelated to travel, as they can occur anytime and anyplace.

3. It’s Not Just for Employees

Fortunately, business travel accident insurance can be extended to cover affiliated individuals who aren’t technically employees. This ranges from company board members to tourist groups such as students or missionaries.

Business travel accident coverage exists to help cover the costs of any injuries or illnesses an employee experiences while traveling on business. It helps companies fill in the gaps left by traditional employee insurance policies so they can focus on business without fear.

Understanding the USLH Act

Running a business in a niche industry means taking time to understand what makes for an acceptable insurance plan. If you run a maritime business, for example, you absolutely need to think about the additional steps you must take in order to insure your business to meet industry standards. This is especially the case when it comes to workers’ compensation options. Standard plans will not cover all of the risks of maritime employees, meaning business owners need to look into options like the United States Longshore & Harbor Act.

Know the Basics

The USL&H Jones Act is a type of insurance plan meant to fill the workers’ compensation gaps created in maritime businesses. Since standard plans don’t cover certain risks, USL&H helps to ensure your employees are always protected. What’s more, federal regulations dictate that certain businesses are required to have this additional coverage. The more you understand about the regulations, the easier it will be to make the final decisions for your business. Other areas to focus on can include:

  • D&O coverage
  • E&O policy options
  • PWC rental coverage

Learn More About Your Options

There are several areas to consider when it comes to insuring your maritime business. As long as you dedicate time to understanding USL&H options, you will be able to find the best possible policy to meet your needs.

A Short Guide To Motorcycle Insurance

Whether you’re looking for a way to get around town or you’re just seeking a little more adventure in your life through riding, there’s nothing quite like driving a motorcycle. However, motorcycles come with a certain amount of risk. It is important that you take all the necessary measures to protect yourself, other people, and your property. Just as you need insurance for your car, motorcycles need adequate coverage as well. This is where motorbike insurance comes in.

What Types Of Coverage Do You Need For Your Motorcycle?

There are many different coverage options available for motorcyclists. Some of the types of insurance available are similar to car insurance while others are specifically for motorcyclists.

Liability And Collision Insurance

The first type of insurance you will absolutely need is liability coverage. Motorcycle liability insurance can help protect you financially if you get into an accident and injure someone or damage their property. In addition to liability insurance, you also need collision coverage.  This insurance applies to your bike and protects it if you get into an accident. For example, say you damage your bike by hitting a fence, collision coverage will pay for the repairs.

Other Types Of Insurance

There are other types of insurance you may want to consider purchasing. You can obtain coverage for damage your bike has sustained through theft/vandalism as well as coverage for fire damage or weather damage.

Riding a motorcycle can be a blast but is not exactly a risk-free activity. Motorcycle insurance can make a huge difference.

2 Construction Industry Insurance Policies Essential to Protecting Your Building Business

If you work in the construction industry, there are certain insurance policies you must carry to protect yourself from building liability. The two forms of essential coverage are builders risk insurance and contractors general liability insurance. To ensure that all your potential exposures are covered for a construction project, you will need both policies. Complete building liability protection includes:

1. Builders Risk Insurance

Builders risk covers the contractor’s materials, equipment and property related to the building being constructed. Examples of events protected include:

  • Fire or explosion
  • Lightning strikes
  • Hail
  • External theft

2. Contractors General Liability Insurance

A construction general liability policy is critical in the construction industry. If you are accused of causing injury, property damage or negligence, general liability assists with legal fees to keep your business in operation and avoid financial devastation. Among the incidents covered are:

  • Someone is injured on your property
  • You are renting commercial space that becomes damaged
  • You or your employees cause injury or property damage
  • You are sued for false advertising or copyright infringement

Builders risk insurance and contractors general liability insurance are both imperative mechanisms for maintaining building liability coverage and risk mitigation, as well as safety for owners, contractors and employees. Responsible protection for your company and your construction personnel demonstrates your company’s dedication to providing the best possible work environment in this economically vital industry.

What You Need To Know About Boat Insurance

A new boat means you need a boat insurance policy to protect your investment. If this is your first one, you may be uncertain what boat insurance covers and why you even need it. Here is what you need to know.

All Sizes of Boats Need Insurance

Even personal watercraft require a policy separate from your homeowner’s insurance to protect you from damages that may occur on the water. If your boat is yacht-sized or larger, be sure it does not exceed the size limit of what your insurance company covers.

You May Need a Separate Policy for Dry Land

In some states, marine policies do not insure boats while they are parked on land. However, your homeowner’s insurance may protect it while stored in your driveway. Find out whether your existing policies apply to your boat so that you are covered at all times.

Visits to Mexico Require Special Insurance

Mexico is infamous for impounding vessels without what they consider proper documentation. If you plan to sail there, make sure you purchase an insurance policy specific to that country.

Boat insurance is somewhat complicated, but it doesn’t have to be confusing. Talk to your insurance agent about the policy that will best complement your vehicle and homeowner’s insurance to fully protect your boat

A Short Guide To Taxi Driver Insurance

Taxis are an integral part of life, especially in cities where they can be found on nearly every street. They serve as a reliable way to get to your destination that is available 24/7.  However, taxis and their drivers face a certain amount of risk while out on the road. Taxis don’t follow an assigned route or schedule, nor do they use luxury vehicles like limos and black car businesses. Additionally, anyone can hail a taxi and this can lead to some less than desirable circumstances.  This is where taxi insurance comes in.

What Is Taxi Insurance?

Taxi insurance is coverage that helps protect taxi businesses in unexpected situations where accidents, injury, or property damage occur.  It provides a financial safety net that can pick up legal fees, repair costs, and medical bills. Taxi driver safety is likely one of your top priorities and taxi insurance can help facilitate that.

How Much Does Taxi Insurance Cost?

The cost of taxi insurance can vary widely and is based on a number of factors. Some of these factors are:

  • Where your taxis operate
  • The taxi driver’s driving record
  • The type of vehicle driven
  • The age of the vehicle driven
  • The types/amount of coverage you need

Running a taxi business can be a very lucrative endeavor but comes with a certain amount of risk. Taxi insurance can go a long way towards mitigating that risk.

Making Propane Insurance a Part of Your Risk Management Plan

There are inherent risks in transporting and delivering flammable chemicals. Propane insurance provides mitigation for these risks and protects your fuel dealership business. In addition to the insurance covering your workplace in the event of a workers compensation or workplace violence claim, propane insurance covers several additional areas.

Liability

Liability coverage protects your business from liability and pays the legal fees associated with those claims. Spill and pollution liability protection can be included within your liability insurance policy. In the event of a spill, your insurance carrier can mobilize a pollution response team that will coordinate cleanup and filing reports to the appropriate federal environmental agencies.

Property

Property coverage protects your buildings and tanks should they be damaged or destroyed. It also covers your inventory and equipment and provides income protection should your business operations become interrupted.

Automobile

Including the traditional protections offered with an automobile policy, automobile coverage under a propane insurance policy provides special protections for the service vehicles and tanker trucks that deliver propane to your customers. Pollution liability protection can also be included within the automobile portion of the policy and covers accidental spills from your covered vehicles.

To mitigate risks and hazards, propane retailers and distributors should have a thorough risk management plan that includes adequate propane insurance coverage.

Select the Best Retirement Package for Your Employees

Your employees work hard for your company. They deserve to retire with a package that will support them in their golden years. Several factors play into the decision when looking for the best plan to protect your retirees.

Administration of the Plan

To administer a successful plan, choosing the right retirement planning and services package is key. It is ideal to find a comprehensive plan that includes many considerations, including well-defined benefits and cash allocations. Important items include:

  • 401(k) and 403(b) Planning and Administration
  • Distribution Considerations and Compliance Testing
  • Cross-Tested Calculations

Additional services, including termination of plans or new acquisitions and mergers, should also be considered when choosing a plan.

Compliance With Regulations

The IRS must approve certain documents with annual updates. Because retirement planning documents must comply with these regulations, it’s crucial to employ an organization that understands and addresses all necessary legal requirements. If the IRS finds discrepancies during an audit, a competent service provider will help to settle these disputes and minimize any penalties handed out.

The retirement service must also understand the fiduciary compliance responsibilities to reduce their client’s risk of possible litigation in the future. Actuary services are an important consideration as well when designing and maintaining accurate calculations that comply with the laws.

Make sure the retirement service provider you choose protects your business and your workers.