What is Workers’ Compensation Insurance?

Workers’ Compensation Insurance is a state mandated insurance coverage required by nearly every state in the country. The basic purpose of Workers’ Compensation Insurance is to assure injured workers get medical care and compensation for a portion of the income they lose while they are unable to work as a result of injuries sustained on the job.  Workers give up the right to sue employers for injuries that occur as a part of normal business practices. Inured workers can sue employers if there is some form of negligence on the part of the employer.

Workers' Compensation

Workers receive these benefits regardless of who was at fault in the accident. In most cases if a worker is killed while working, workers comp (as it is often abbreviated) provides death benefits for the worker’s dependents. Also, Workers’ Compensation Coverage prevents the employer from bearing the full cost of injuries that occur during normal business operations. Employers also gain the relief that they cannot be sued for injuries that occur as a part of normal business practices.

In the United States, Workers’ Compensation Laws were implemented throughout the first half of the 20th century.  In 1908 President Taft signed the first legislation requiring mandatory employer coverage for employees working in multi-state commerce. Over the next 40 years each state enacted their own state specific workers’ compensation programs. Wisconsin was the first state to adopt such legislation and Mississippi was the last state to adopt a formal workers’ compensation program.

Workers' Compensation Insurance Claim Form

One of the most important legal concepts with regards to workers’ compensation insurance is that it is the “exclusive remedy” when an employee is injured on the job.  This means that employers who purchase coverage  can not be held liable for employee injuries in most states, except under narrow circumstances where the employer intended to cause injury to the employee or was willfully negligent. The idea behind the exclusive remedy clause is to force compromise between employers and employees. Employees give up the ability to to win large suits against employers in order to receive fast and limited financial return. Employers exchange liability regardless of fault, for legal protection from potentially devastating tort judgments in court.

In most states, employers are legally required to carry this insurance coverage. Each state has certain exemptions to the requirement. Two states (Oklahoma and Texas) have laws that allow certain employers to opt-out of the workers’ compensation requirement, if they qualify. Tennessee and South Carolina Legislatures are also proposing similar opt-out provision’s. This opt-out provision has been in the news a bit as of late. Oklahoma is in its second year of allowing companies to opt-out and fewer than thirty businesses have applied for and been granted the privilege.  Unlike Texas’s system, Oklahoma employers must meet certain financial and other requirements to qualify, including a written benefit plan that provides coverage and benefit levels that meet or exceed the minimum requirements set forth in the law.

Most states and employers are taking a wait and see approach to these changes to the opt-out provision.

 

 

Trim Carpenter

5 types of Insurance Coverage every Trim Carpenter should strongly consider

A Trim Carpenter typically performs only interior work such as cabinet installation and interior trim for construction projects. There are many other types of carpenters who perform exterior work only or both. Because of the differences in the nature of the work between these types of carpenters, the risks they face are also different. Interior carpentry normally consists of either rough or finish work. Rough work involves framing windows and doors, laying floor joists and subfloors, stairways and more. This type of carpentry can also include: hanging doors, installing baseboards, installing the molding around doors and windows, and making or installing cabinets and shelving. There are many other types of custom builds the carpenter might partake in. All of this type of work can lead to bodily injury claims for the carpenter or their employees. It can also lead to risk if the windows or doors are damaged during installation. With these different risks a trim carpenter faces, comes a need for many different types of insurance coverage.  Here are five types of insurance coverage every Trim Carpenter should strongly consider purchasing.

Trim Carpenter

Recommended Insurance Programs for Carpenters

  • General Liability Insurance
  • Commercial Property Coverage
  • Inland Marine Insurance
  • Commercial Auto
  • Workers Compensation Insurance

Other coverages to consider for the various types of Carpentry:
Business Personal Property, Employee Dishonesty, Contractors’ Equipment and Tool Floater (Inland Marine), Umbrella Liability Coverage, Business Income with Extra Expense, Builders Risk, Goods in Transit and Installation Floater.

Tools for a Carpenter

General Liability Insurance for a Carpenter

General liability exposures at a trim carpenters shop are normally somewhat limited. These limitations are due to the lack of public access to the carpenters property. There should be policies in place because risks like fires from woodworking and/or lumber storage can affect neighboring businesses or homes. Talking about all the different elements of your business with your experienced insurance agent can help you prevent severe or frequent claims.

Carpenters Commercial Property Coverage

Carpenters face commercial property exposures at their location, but those exposures are limited to the office area and storage of materials, equipment and vehicles. If the risks will be different depending upon if the business owns the building or rents.

Inland Marine Insurance for a Carpenter

Inland marine insurance coverage is designed to protect businesses that have specialized equipment or equipment that is frequently in transit. This equipment includes owned or rented tools.  The tools may include tables saws, scaffolding, building materials and materials being transported to and from the job-site. These tools and equipment are heavy but less likely to be damaged during transport. Transporting woodwork done at the carpenter’s shop increases the exposure because these items are more susceptible to damage from shifting, improper loading or inadequate tie-down. Inland marine insurance coverage is needed for nearly all carpentry businesses.

Carpenters Commercial Auto Coverage

Auto liability exposures are limited, for the most part. This limited exposure is limited unless lumber and pre-made items are frequently transported by the carpenter. The hazards of transport include failure to secure the load properly and equipment failure. Paying attention to your employees age, training, experience and driving records can limit these risks. Also, the condition and maintenance of the vehicles are important considerations.  Those maintenance records should be documented in order for your insurance agent to use this record to negotiate better rates on insurance premium.  Companies who allow employees to drive their personal vehicles for business purposes should purchase a separate hired and non-owned auto policy.

Workers Compensation Insurance for a Carpenter

Workers comp liability varies based on the size and nature of the job the carpenter is working on. Work with hand tools and sharp objects can result in cuts, piercings and accidental amputation. Lifting injuries such as hernias, strains, sprains and back injuries may occur. Minor injuries may be frequent even when the severity exposure is controlled. When work is done on ladders and scaffolds, there is a potential for severe injury or death from falling, being struck by falling objects or adverse weather conditions. Addressing all of these risks with proper safety programs and equipment can help you reduce the frequency and severity of the claims your business has.  FOr this reason, it is extremely important to train all employees in the proper use of basic safety equipment.

Carpentry Shop

Common Carpenter Liability Classification Codes

SIC Business Insurance Codes:

  • 1751: Carpentry Work
  • 1521: Residential Construction

NAICS Liability Classifications:

  • 238350: Finish Carpentry Contractors
  • 236118: Residential Remodelers
  • 238330: Flooring Contractors
  • 238390: Other Building Finishing Contractors

Business ISO General Liability:

  • 91340: Carpentry—Construction of Residential Homes
  • 91341: Interior Carpenter
  • 91342: Carpentry—Not Classified Elsewhere
  • 91343: Carpentry—Shop Only

Common Workers Compensation Class Codes:

  • 5437: Carpentry—Cabinets and Interior Trim
  • 5403: Carpenters—Not Classified Elsewhere
  • 2802: Carpentry—Shop Only
  • 5432: California Class—Carpentry
  • 5645: Carpentry—Residential Construction

Accounting Firms

Businesses in the accounting industry have unique risks that only they face. For this reason, you need to partner with an insurance agent who is comfortable working with businesses in this industry. Slips, trips, and falls do not cause a large problem to this industry because the employees do not move around a lot and there is limited interaction with the public.  Repetitive injury like carpal tunnel and back problems can arise from long periods of time sitting at a desk.

Accounting

Bigger risk arise from the fact that you are interacting with individuals and businesses private sensitive financial documents. These risks are typically low in frequency, but can most definitely be severe if the wrong information falls into the wrong hands. Additional risks arise from the fact that accounting businesses are providing professional advice and services. Because of the enormous amount of risk in all of these areas of the business, it is important to get an all encompassing insurance package. Consulting with an experienced independent insurance agent is always the best way to know for sure you are getting the most comprehensive coverage at rock bottom prices.  Here are TKTK Insurance policies all accounting services firms should strongly consider.

 

Coverages Recommended for Accounting Professionals:

✓ General Liability Insurance
✓ Professional Liability Insurance (E&O)
✓ Hired and Non-Owned Auto
✓ Workers Compensation Insurance
✓ Employee Dishonesty Bond

General Liability Insurance

In most states, this coverage is required by law to be in business. For this reason, most business owners start with this coverage and workers compensation insurance.  The risk of a General Liability claim is minimal since most operations are not conducted on the businesses property and most of the client contact is electronic or by mail. When clients do visit the office, they should be kept separate from the main office area in an attempt to prevent them from hearing conversations regarding other clients’ confidential information. Off-premises exposures arise when employees are engaged in sales visits, training sessions, and physical audits at the customer’s premises. There should be policies and training as to off-site conduct by employees.

Professional Liability Coverage

 

The risk factors accounting services businesses face in relation to Professional Liability Coverage include the services the business provides, the firm’s credentials, the employees experience as well as the ratio of professional to clerical employees. Failure to conduct thorough background checks to verify credentials and education can pose a significant risk. In some circumstances it can cause a claim not to be covered. The risk of E&O claims increase if clerical workers are allowed to do tasks that only the professionals should handle and if error checking procedures are inadequate. Most carriers have plans in place for you to follow if you do not already have such plans in place.

Hired and Non-Owned Auto Insurance

Risks associated with automobiles are generally limited to hired and non-owned auto insurance. This is because most accounting businesses do not have a need to buy vehicles specifically for business purposes. However, many employees probably do use their personal vehicles for business purposes to visit clients facilities. In these situations, there should be clear procedures in place regarding personal use by employees and their family members. The age, training, experience, and records of each driver, as well as age, condition, and maintenance of the vehicles, are all important items to consider if your business needs a commercial auto policy.

Workers Compensation Coverage

Workers compensation is a form of liability insurance required for employers in 48 out of 50 states. This type of insurance compensates injured workers for lost wages and medical costs while giving business owners the peace of mind to know they will not be sued for accidents that occur as part of normal operating procedures. Accounting firms don’t typically have a hard time finding affordable workers compensation coverage because of the light physical duty of the industry.  Repetitive injuries like carpal tunnel are the most severe type of risk employees face.  Offering adequate chairs and even desk that allow employees to stand for part of the day are a worthy investment.

Employee Dishonesty Bond

There are two main types of criminal insurance related to employee dishonesty. The two types of coverage that a business can purchase to prevent losses related to the criminal activity committed by your employees are Commercial Crime Insurance and a Fidelity Bond.  A Fidelity Bond is a form of insurance that covers losses resulting from employee dishonesty. This can help cover any lost money or securities that result from an employee’s dishonest acts. A Fidelity Bond is meant to act as a security against potential fraudulent employees or disgruntled employees.  A Commercial Crime Insurance Policy is typically designed to meet the needs of organizations other than financial institutions (such as banks). A commercial crime policy typically provides several different types of crime coverage like: employee dishonesty, forgery, computer fraud, funds transfer fraud, kidnap, etc. Both of these policies will cover losses due to the actions of your employees. If you are not sure which type is best for you it is always best to consult with an experienced independent insurance agent to make sure you are properly covered.

 

Class Codes ASSOCIATED WITH THE ACCOUNTING INDUSTRY

Business Liability Category: Service Businesses

SIC Business Insurance Codes:

  • 8721: Accounting, Auditing and Bookkeeping Services
  • 7291: Tax Return Preparation Services

NAICS Liability Classifications:

  • 541211: Offices of Certified Public Accountants
  • 541213: Tax Preparation Services
  • 541214: Payroll Services
  • 541219: Other Accounting Services

Business ISO General Liability:

  • 41677: Accounting/Consulting

Common Workers Compensation Class Codes:

  • 8803: Accountant, Auditor; traveling
  • 8810: Clerical; office only

Pest Control Insurance Needs

Pest Control Companies Face Unique Risks

Pest control companies provide services to commercial and residential customers who have problems with insects, rodents and other nuisances on their property. The fumigator or exterminator determines the type of pest and the most effective method of extermination. These methods should always be the method that will cause the least amount of disruption to the customer, regardless if the customer is an individual or a business. Because these businesses are constantly interacting with customers off-premise and the nature of the chemicals they are using, risks in this industry are high.

In order to manage risks properly, pest control companies need to have thorough training procedures for all employees.  Those training programs should include safety programs to keep the employees and the clients safe at all times. In addition to adequate safety programs, pest control companies need to acquire adequate insurance coverage to protect the business from the unique risks each business faces. Here are six types of insurance coverage every pest control company should have.

Pest Control by Fumigation

Minimum recommended coverage:

  • General Liability Insurance
  • Commercial Property Coverage
  • Business Personal Property Insurance
  • Commercial Auto Coverage
  • Inland Marine Insurance
  • Workers Compensation Coverage

General Liability Insurance

General Liability risks arise for pest control companies when employees travel off-premises in order to applying chemicals. Customers should be given proper instructions on controls regarding anyone or anything that could be exposed to hazardous materials while the application is going on. This is especially important for clients who have children, pets, sick and elderly individuals. In some instances, temporary evacuation is required during application. This may be  followed by a waiting period and re-ventilation to replace the fumigant with fresh air.

Commercial Property Coverage

Commercial  property risks depend on the type of property you own and operate as well as the types of chemicals being stored on the property.  It also depends on the amount of these chemicals you keep on the property and whether or not those chemicals are flammable. Hazards increase if the contractor fails to store the chemicals properly in approved containers, cabinets and rooms, with accurate labeling and separation. Speaking long and honestly with your independent insurance agent is always the best way to properly protect your business. This conversation should include exactly what the employees of your business do on a daily basis, what is the condition of the property you operate, and exactly what chemicals you are storing on the property.

Business Personal Property Insurance

Business Personal Property Insurance provides coverage to small businesses for furniture, fixtures, merchandise, materials and all other personal property owned by you personally and used in your business. The best part about this coverage is that it is generally at replacement cost. Many business owners think this type of loss is covered by their commercial property insurance, but it is not. This coverage can and should be added to most BOP or CPP Packages if there is a need for this coverage.

Commercial Auto Coverage

Automobile exposure in the pest control industry is extremely high due to the amount of time employees spend in their vehicles travelling to clients locations. In addition, there is the fact that the employees are also transporting chemicals throughout their workday. Drivers in some states may need a hazardous materials (“hazmat”) endorsement to transport some chemicals used. Risks increase if the insured lacks spill control procedures and equipment.

Inland Marine Insurance

Inland marine exposures in the pest control industry come primarily from the contractor’s equipment and the transporting of that equipment, chemicals and supplies to the customers’ premises. Equipment is not highly susceptible to damage, but it can be hazardous to both your employees and clients.  This equipment may include tarps, drills, measuring devices and other hand tools. The tarps and plastics used to enclose the areas to be fumigated may be bulky and require attention to folding and tying down. The chemical containers may be vulnerable to overturn or damage that causes leaking, which impacts the auto and premises liability exposures.

Workers Compensation Coverage

Workers compensation exposure can be high for the Pest Control industry. Common hazards include slips and falls during application; minor injuries while using hand tools; lifting injury and back injuries, hernia, sprain and strain. Employees can experience lung, eye, or skin irritations due to the chemicals. The impact of these chemicals can be immediate or long term.  In some Pest Control companies seasonal employees may make safety a challenge. Loss potential becomes severe if the contractor fails to train and supervise employees properly. This is especially important when it comes to the proper use of protective gear by the employees.

 

Business Liability Category: Artisan Contractors

SIC Business Insurance Codes:

  • 7342: Disinfecting and Pest Control Services
  • 2879: Pesticides and Chemicals—Not Classified Elsewhere

NAICS Liability Classifications:

  • 561710: Exterminating and Pest Control Services
  • 325320: Pesticide and Agricultural Chemical Manufacturing

Business ISO General Liability:

  • 43860: Fumigators
  • 43470: Pest Control Services

Common Workers Compensation Class Codes:

  • 9014: Janitorial Services by Contractors (Florida—Exterminators)
  • 4828: Chemical Blending and Pest Control Fumigation
  • 9031: California Code—Pest Control—All Operations
  • 0046: Massachusetts Code—Pesticide Application

Medical Offices

6 Types of Insurance Coverage every Medical Office Needs

Medical Offices have many unique risks to deal with. The fact that customers are in some cases sick can ad to the frequency and severity of commercial insurance claims. The fact that employees have to spend a large portion of the day on their feet can ad to the amount of injuries if the staff are not in good physical condition. Because of the unique risks faced by medical offices there are certain types of insurance that are necessary. Here is a list of six recommended types of insurance every office should secure.

Medical Offices need Commercial Insurance. Get the best answers to your small business insurance questions at My Insurance Question.com

Minimum recommended coverage:

  • General Liability
  • Medical Malpractice—Professional Liability
  • Property Insurance
  • Commercial Auto
  • Hired and Non-Owned Auto
  • Workers Compensation

 

General Liability

General Liability Insurance is a necessity for a medical office because of the amount of clients coming in and out of the property. General Liability will protect your business from injuries that occur to customers and other third parties that come in contact with your property. The fact that some of the customers are sick can contribute to more risk of other customers becoming sick due to contact with ill patients. Like in most industries that face the public regularly; slips trips and falls are always a risk. Having a safety committee and documenting their activities can help you save in the long run.

Medical Malpractice—Professional Liability

Medical Malpractice is a form of Professional Liability that is unique to the medical profession.  According to the Insurance and Risk Management Institute, professional liability is defined as:

‘A type of liability coverage designed to protect traditional professionals (e.g., accountants, attorneys) and quasi-professionals (e.g., real estate brokers, consultants) against liability incurred as a result of errors and omissions in performing their professional services’.

Conversely, medical malpractice coverage is defined as:

‘Coverage for the acts, errors, and omissions of physicians and surgeons, encompassing physicians professional liability insurance, hospital professional liability (HPL) insurance, and allied healthcare (e.g., nurses) professional liability insurance’.

In laymens’ terms, this coverage protects doctors and nurses from the liability they face regarding they face giving specialized services and advice related to the healthcare profession.  This coverage is a necessity to any business offering medical advice and services.

Commercial Property Insurance

If the business owns the location where it operates, then the business has a need for Commercial Property Insurance. This insurance coverage is very specific and it is different than a traditional home owners policy. The policy can be written on a replacement level value or on a prearranged value agreed upon by the insurer and the insured. Partnering with an independent insurance agent to determine which type of coverage you need is a wise decision.

Business Auto Insurance

If your business owns and operates any vehicles as a part of the business operation, than it needs to secure business auto insurance. Any time that an employee is using a vehicle for business purposes, the liability to third parties is the liability of the business and not the liability of the employee. This means if an employee gets in to a wreck while on the job, the damages to third party vehicles is the responsibility of the business. Now if you have employees who drive their own cars for business purposes you will need a separate policy called a Hired and Non-owned Auto Policy.

Hired and Non-Owned Auto (full commercial auto if vehicles owned)

Hired and Non-Owned Auto Insurance is needed for two main reasons. If a business has employees who use their personal vehicles for business purposes or if employees drive rented vehicles while they are doing something related to their work. This policy is in addition to the insurance coverage you may buy from a rental agency. Hired and Non-owned auto will cover your business for the liability it faces to third parties who may have property or bodily-=injury claims as a result of an accident involving an employee.

Workers Compensation

Workers Compensation Risks are unique for several different reasons. First and foremost the employees are interacting with sick patients in many situations. Spending long hours on your feet can be taxing for nurses and doctors. Encouraging the staff to live a healthy lifestyle can help limit the amount of severe claims due to wear and tear

Medical Offices

 

Physicians Liability Classification Codes

Commercial insurance companies use various liability classification systems in order to classify and rate coverage premiums for Physicians. Here are the most common business insurance classifications for Medical Clinics:

Business Liability Category: Health Care Providers

SIC Business Insurance Codes:

  • 8011: Offices and Clinics of Doctors of Medicine
  • 8042: Offices and Clinics of Optometrists
  • 8031: Offices and Clinics of Osteopathy
  • 8021: Offices and Clinics of Dentists

NAICS Liability Classifications:

  • 621111: Office of Physicians (Non Mental Health)
  • 621320: Office of Optometrists
  • 621320: Office of Dentists
  • 621498: All Other Outpatient Care Centers
  • 621330: Office of Mental Health Practitioners
  • 621399: Office of Other Health Practitioners

Business ISO General Liability:

  • 66561: Medical Office

Common Workers Compensation Class Codes:

  • 8832: Doctors, Physicians and Office Staff

Law Firms

Law Firms

Attorneys, Independent Lawyers and Law Firms work in many different types of law. Some attorneys specialize in providing legal counsel to financial services companies. Other Lawyers specialize in disability cases. Still other law firms specialize in general practice. Each different type of law brings with it, the possibility to be liable for damages. With each unique type of risk there are specific insurance coverages that a business in the law profession may need. Here are 6 Coverages every all law firms should strongly consider.

Law Firms

Recommended Insurance Programs for Attorneys and Law Firms

Minimum recommended coverage:

  • General Liability
  • Professional Liability (Malpractice Insurance)
  • Property Insurance
  • Hired and Non-Owned Auto
  • Business Income with Extra Expense
  • Workers Compensation

Other coverages to consider for Law Firms:
Business Personal Property, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, Employee Benefits Liability, Umbrella Liability, Auto Liability, Building, Computer Fraud, Forgery, Employment Practices Liability (EPLI), Business Auto Liability and Physical Damage.

Insurance needs for Law Firms.

General Liability

General Liability Insurance is needed by all businesses. It is required by law in nearly all states for most businesses. This coverage will protect your business from the risks you face when the open public comes in to your facility. The risk of slips, trips, and falls is low because of the lack of a large volume of customer coming and going from the facility.

Professional Liability

Professional Liability risks are much higher in the Law Profession. Most Attorneys refer to this type of coverage as Malpractice Insurance. This type of coverage protects professionals who provide professional advice and services. This is at the heart of what lawyers do. If law firms offer advice to a client and the outcome is not desirable, the client has the ability to sue the lawyer for that advice. Even if the claims are unfounded, it can take an enormous amount of time, energy, and money for lawyers to defend themselves. This coverage can reimburse law firms for these costs up to the limits of the policy.

Property Insurance

Commercial Property Insurance is necessary if the law firm owns the property you operate your office. It is important to consult with your insurance agent about what exactly is and is not covered under your policy. The coverage will likely cover the building, structure and foundation; but if you have specialized equipment you may need additional coverage. If you live in an area where natural disasters are common (Floods, Hurricanes, Tornadoes, Etc.) you more than likely need this coverage or the damage resulting may not be covered.

Hired and Non-Owned Auto

If your business owns vehicles and you or your employees use those vehicles for business purposes than you need commercial auto coverage. More than likely, you do not own a business vehicle. Still you and your employees may periodically use your personal cars for business purposes. This is when a Hired and Non-Owned Auto Policy is necessary. Because the employee is in the car on business purposes than the liability to third parties is the liability of the business, not the individual. If your employee causes a wreck, the damages occurred as a result of that wreck are the liability of the business. This coverage will help in just these types of situations.

Business Income with Extra Expense

Business Income with Extra Expense Coverage will cover a law firm for loss of income suffered by a business when damage to its premises (by a covered cause of loss) causes a slowdown or suspension of its operations. Coverage applies to loss suffered during the time required to repair or replace the damaged property. The key part of this coverage is the covered loss portion of the policy. If your business is damaged because of a flood or an earthquake and you do not have this coverage, the business income and extra expense policy will not kick in. If the damage is because of a fire and it is covered by your commercial property policy, than the additional policy will kick in. For this reason it is wise to work with one insurance agent and make sure they are dealing with one or a few carrier to provide you optimal coverage. This will prevent gaps in coverage and speed up the time to process your claim.

Workers Compensation

Workers Compensation Coverage is required by law in most states for most attorneys. There are some exceptions in some states, so it might be worth your time to check with the proper governing agency in the state your law firm operates. Even if your business is eligible for an exemption it is more than likely beneficial for your law firm to still secure coverage. One expensive injury to an employee can result in a large cost to a business. In many scenarios the losses cause a business to close for good.

The risks associated with workers compensation are fairly low in this industry. Long term Repetition injuries like carpal tunnel may occur from employees sitting at a desk for long periods of time. Having adequate safety programs and offering desks that allow employees to stand may be beneficial to your business. This additional desk may be expensive, but an injured employee who is out of work for three months because of surgery can be significantly more expensive. Partnering with an experienced independent insurance agent can help you determine if you need this coverage.

 

Justice is found through the work done in Law Firms.

Attorney Liability Insurance Classification Codes

Commercial insurance companies use various liability classification systems in order to classify and rate coverage premiums for Lawyers. Here are the most common business insurance classifications for Attorneys:

Business Liability Category: Service Business

SIC Business Insurance Codes:

  • 8111: Legal Services
  • 9222: Legal Counsel and Prosecution

NAICS Liability Classifications:

  • 541110: Law Office or Legal Firm
  • 922130: Legal Counsel and Prosecution
  • 541120: Notary Office
  • 541199: All Other Legal Services

Business ISO General Liability:

  • 66122: Lawyers Offices

Common Workers Compensation Class Codes:

  • 8820: Attorneys—All Employees

Auto Repair

5 Insurance Coverages every Auto Repair Business Should Have

Auto Repair Shops offer a wide variety of mechanical services. These services may include from engine repair and tune-ups. Some businesses specialize in a specific type of sales and repair, like tires, transmissions or brakes. Normally, auto repair shops do not specialize in body work or painting operations. These services are typically performed by specialized professionals. Some operations include the retail sales of automobile parts and tools. Some repair shops are a part of a gasoline or diesel fuel sales operation, or part of an automobile dealership. Each type of operation has its own unique risks and its own unique insurance needs. Here are 5 coverages every auto repair shop owner should strongly consider, in order to properly protect their business.

Auto Repair Shop

 

✓ General Liability Insurance
✓ Garage Keepers Liability
✓ Commercial Auto
✓ Hired and Non-Owned Auto
✓ Workers Compensation Insurance

General Liability

General Liability Exposure can come in many different forms. Like many industries the risk begins with slips, tips and falls by third parties on your premises. This risk starts primarily due to public access to the businesses facility. Risks also arise from having cars parked overnight in the parking lot of the facility.  These areas should be well lit and an ongoing relationship with local law enforcement is advisable.

Garage Keepers Liability

Garage Keepers Liability is usually worded as, “a form of bailee liability designed to cover damage to autos belonging to others while in the insured’s care”. In layman’s terms this is an insurance policy for the liability a business might face related to cars that are stored at their facility for multiple days.  These are other peoples cars that your business is performing a service on that is not able to be completed in one day.

Commercial Auto

Commercial Auto Insurance is needed if your business owns its own vehicles and employees use the vehicle for business purposes. If you own and operate vehicles at your business, it is important to properly train all people who are going to be operating the vehicles. Collecting and documenting these employees motor vehicle records is recommended. Both the training program you have in place and the vehicle records you collect need to be well documented for when you quote new coverage and when a claim arises.

Hired and Non-Owned Auto

Hired and Non-Owned Auto Risks mainly arrive from employees running errands for the business.  If you have employees partaking in these types of activities, all drivers should have valid licenses and their motor vehicle registrations regularly checked. Have these records documented can help you independent insurance agent save you when quoting coverage.

Workers Compensation

Workers Compensation Insurance risks can be significant for auto repair shops. Employees are at risk when performing brake tuning, welding or other repair work. These activities should take place only with appropriate safety equipment. Lifting of a vehicle by hoists, jacks, and other mechanical means can result in injury should the equipment malfunction. Lifting by non-mechanical means can result in back injury, sprains, strains or hernias. Having a documented policy in place for how employees are supposed to do these activities is crucial to prevent injured employees.

Auto Repair Shop Insurance Information at My Insurance Question.

Here are the most common commercial insurance classification codes for auto repair shops.  

SIC Business Insurance Codes:

  • 7533: Automotive Exhaust Repair Shops
  • 7538: General Automotive Repair Shops
  • 7532: Body, Paint and Upholstery Repair

NAICS Liability Classifications:

  • 811111: General Automotive Repair
  • 811112: Automotive Exhaust System Repair
  • 811113: Automotive Transmission Repair
  • 811118: Other Automotive Mechanical and Electrical Repair and Maintenance
  • 811121: Automotive Body, Paint and Interior Repair and Maintenance
  • 811122: Automotive Glass Replacement Shops
  • 811198: All Other Automotive Repair and Maintenance

Business ISO General Liability:

  • 10072: Automotive—Quick Lube
  • 10073: Auto Sales, Repair and Service
  • 10075: Automotive Repair Shop—Self Service

Common Workers Compensation Class Codes:

  • 8380: Auto Repair
  • 8393: Auto Body Repair or Paint Shop
  • 9516: Auto Shop—Radio and Equipment

Here is a great video about Auto Repair Shops and Workers Compensation Insurance  from our partners at Employers.

 

Golf Courses

My Insurance Question - Golf Courses

5 Types of Insurance Coverage all Golf Courses Need

The industry surrounding Golf Courses is a diverse industry. Some of the businesses serve very high end customers and professional tournaments. Other courses serve people with middle-class incomes in a rural setting. Some of the businesses do not have a full course and only offer a driving range putting green. Most of the businesses offer some form of lessons, food and beverage as well as retail offerings. Depending upon which type of golf course you own or operate, the type of insurance coverage you need may vary dramatically. Here are five coverages most golf courses need.

  • General Liability
  • Liquor Liability
  • Commercial Property
  • Hired and Non-Owned Auto
  • Workers Compensation

Golf Courses

General Liability Insurance

General Liability Insurance risks can be substantial due to both the number of visitors and the nature of the activity. Golf is a physical endeavor and not everyone who partakes in the activity is of the highest athletic ability, nor are many in the best physical condition. The safety of the customers is a major concern. Slips, trips, and falls are always are a concern; as are flying golf balls. Golf carts can overturn and that may cause additional risks. If you have employees that are interacting with children, it is important to conduct proper background checks on those employees.

Liquor Liability

Liquor Liability Insurance is commonly referred to as dramshop liability. Most golf courses sell and serve some types of alcohol and in most states this requires them to purchase some form of liquor liability insurance. There are many types of risks associated with alcohol use at a golf course. Those risks include selling to an intoxicated customer, contributing to the over-intoxication of a customer and serving alcohol to a minor. These and many other risks associated to alcohol consumption make liquor liability a necessary coverage for golf courses.

Commercial Property Insurance

Commercial Property Insurance Exposure might be minimal if limited to a clubhouse facility or a maintenance shed, but not all golf courses are this simple. Many golf courses offer retail, food and beverage, restaurant facilities and instruction.  Many golf courses are located in remote areas. These locations add additional risks due to fires and how quick first responders can get to injured employees or customers.

Hired and Non-Owned Auto

If your business owns the vehicles employees are operating as part of their work, a commercial auto policy is necessary. Hired and Non-Owned Auto Liability Exposure is generally limited to employees using their own vehicle for running errands or when an employee is travelling for work and using a rented vehicle. If your employees partake in any of these actions your business needs Hired and Non-Owned Auto Insurance.

Workers Compensation Insurance

Workers Compensation Insurance Risks can be high for golf courses. If the golf course has employees who do its own grounds maintenance and chemical applications, it can cause the amount of injuries to rise. Other employees face normal slips, falls, strains, sprains and being hit by errant golf balls or equipment.

Golf Courses Insurance Needs

Unique Commercial Insurance Risks

8 Industries with Unique Commercial Insurance Risks

Commercial Insurance is a necessary evil that all successful businesses need. Depending upon the state and industry you operate in, your business may face different commercial insurance risks. Because of these unique commercial insurance risks, your business may need just a small amount of coverage or a substantial amount of coverage to properly cover your business.  Regardless of the amount of insurance you choose, you need to make the best decision for your unique business. That can only be done with the help of an experienced insurance agent. Taking some additional time to discuss the day-to-day operations of your business can go a long way towards covering your business. Here are eight industries that have unique risks not present in most businesses.

 

Ridesharing Vehicles

As Ridesharing Companies have grown in popularity, insurance carriers have expanded their offerings to meet the demand for coverage. Normally, rideshare insurance covers personal use and has an add-on for part of the time drivers are signed in to a ridesharing app. The coverage has many grey areas, because of the newness of the profession. Partnering with an experienced insurance agent is highly advised and do not rely solely on the coverage offered by the companies.

Hotel Motel Industry

As with any business in the Hotel Motel Industry, businesses face many risks that can damage the company if not properly prepared for. Depending on all the offerings of your location, there may be a substantial difference in the types of insurance you need. If you offer a restaurant, there will be specific commercial insurance risks associated with that area of the operation. If that restaurant serves alcohol, there are additional risks. It is important for a hotel owner to be prepared for all commercial insurance risks that may arise.

Lawncare & Landscaping

Commercial Insurance Risks in the Lawncare & Landscaping Industry arise from installation, service, and attractive nuisance at the job site. Depending upon the specifics of your operation, work hazards may include injury or damage from debris thrown by power mowers, trimmers, and other equipment. The application of lawn chemicals presents additional commercial insurance risks. Contractors who do not obtain and keep proper licensing and certification for chemical applications create a serious liability exposure to themselves.

Non-Profit

Professionals who work in the Non-Profit Industry, for the most part, go in to this sector to be a part of something greater than themselves. Most do not anticipate having to manage risk or buy insurance. Interacting with volunteers, part-time employees, donors and at-risk populations brings extremely unique risks to non-profit associations. How effectively a non-profit organization handles commercial insurance risks, will contribute immensely to the success or failure of your organization.

Auto Repair Shops

Auto Repair Shops are different from many other industries because of what they do and what they sell. Some shops only perform oil changes, while other shops do most mechanical work on any vehicle. Other shops might work on niche specific cars and some may even offer retail offerings. Each type of business has its own risks included. Taking additional time to speak long and honestly with an experienced insurance agent is the best way to determine what types and how much insurance your business needs.

Commercial Cleaning

Commercial Cleaning Companies have less premises liability because a majority of their work is performed at a remote site. Damage to the clients property is high in this industry as is the risk of employee theft. Wet and slippery floors can add to the risk of slips trips and falls.  Securing the work site during and after the work is completed is a huge risk for commercial cleaning companies. High turnover among employees in this industry adds to this industry.

Construction Industry

The Construction Industry is a common industry that employs people throughout the country, bit the size and scope of each individual business can bring immensely different risks to businesses within this industry. A family operation that builds starter homes in a rural town may face different risks than a large construction company that works building high rise apartments in major cities. Whether the employees are W2 or 1099 can complicate the risks the business faces. The only way to know for certain if your business is covered to your specifications is to partner with an experienced independent insurance agent.

Day Care Center

A Day Care Center, like many industries, have very unique risks. If there is playground equipment at the location, the equipment should be maintained periodically and that maintenance should be documented. Because the nature of the work forces the employees to work near children who do not have strong immune symptoms, cold and flu are common. Proper hygiene is a must to limit the amount of liability to the children and your employees.

Most businesses in this industry operate at one location, but some smaller operations will operate out of a private residence. State laws determine what types of coverage each business is required to carry. In most cases general liability and workers compensation is the bare minimum a day care center can operate with. In most cases, the business will need additional coverage. Partnering with an experienced agent is the only way to know if you are fully covered.

Insurance Needs for Floor Installation Businesses

Floor installation is an industry that has a unique set of risks. Floor laying, finishing and refinishing businesses are a specific type of carpentry that increases exposures because of the construction and lay out of floors in both residential or commercial buildings. This work may include the installation of floor coverings such as linoleum, tile and carpet. There may be chemicals involved in the work that can ad to the risks faced by employees.  Because of the specific risks involved in this industry, business owners should take a bit extra time to speak with their insurance agent about what exactly the employees of the business do and do not partake in on a daily basis.

When going through the quoting process for commercial insurance, it is important to remember that your insurance agent is in the business of analyzing risk. If they are absent the appropriate amount of information to assess the risks of your business, it is in the best interest of the agent to always assume more risk.  If they do assume more risk than your business actually faces, it can cause your insurance premium to be significantly higher.

Once you have spoken long and honestly with your Independent Insurance Agent there are certain policies most all floor installation companies need to secure. Here are four policies that are a good idea to secure.

Property Insurance 

If you own property, no matter how big or small, you need to protect that property in some way. Commercial Property Insurance is different from a personal home owners policy. Commercial Property is sold in two main ways, Actual Cash Value and Replacement Value. An Actual Cash Value Policy will pay for an agreed upon value that the property is worth. This type of policy does not pay for tear down and removal costs. A Replacement Value Policy does pay for the additional costs to tear down, remove debris, and rebuild the property to current codes. Speaking with your agent can help you determine if you need this coverage and if so how much.

Commercial Auto

If you have a company vehicle or you use your personal vehicle for work operations, than you will need some form of additional coverage for you business. Some form of Commercial Auto Insurance is needed for you or your employees if you do travel to third party locations. If your employees use their personal cars for business purposes you may just need a hired and non owned auto policy. This is because the liability to third parties for accidents that are the fault of your employee is the liability of the business. This is because the reason they are on the road is because of the actions of the business. The damages to the employees car will more than likely be picked up by their  insurance company if the accident is their fault. Either way it is important to protect your business with the proper coverage for the risks you face regarding driving and vehicles.

Inland Marine Coverage

An Inland Marine Insurance Policy will cover any specialized equipment you have in your car or on a trailer attached to your car. A commercial auto insurance policy will not cover these pieces of equipment if they are damaged in an accident. For these damages, you will need this separate policy. One thing to remember in relation to an inland marine policy is to keep an up to date account of all the equipment your business owns. Take pictures of these pieces of equipment and keep them on file with your insurance agent. If you buy new equipment in the middle of your term, it is a good idea to notify your insurance agent of the new equipment.

Workers Compensation

Depending upon the state you operate in, how many employees you have, and how those employees are classified you may have to purchase workers compensation coverage. It is important to check with the proper governing body for your state to determine if you need this coverage. Even if you are not required by law to purchase this coverage, your insurance agent can help you determine if it is a good idea to still secure this coverage for your business.

 

Here are several common Workers Compensation Class Codes:

•   5478- Carpet, Linoleum, Vinyl Installation

•   5438- Tile Floor Installation

•   5437- Hardwood Floor Installation and Refinishing

•   5645- Residential Construction

•   5651- Commercial Carpentry

•   5436- California- Hardwood Floor Installation

Why should someone choose an independent agent?

4 Reasons why you are better off choosing an Independent Agent.

Choosing which businesses to partner with are important decisions for any business owner, no matter what industry they operate in. Finding another business to provide the products and services you depend on is essential to your success.  No decision is more important who you decide to purchase insurance from. There are many ways a business owner can go about this process, but one of the most effective for many businesses is to partner with an independent agent. Here are 4 reasons why you should choose and independent insurance agency the next time you are looking for insurance coverage.

An Independent Agent Works for You

When you partner with a captive agent (an agent who works for only one carrier) they have a partnership with that carrier and that carrier only.  They work for you the business owner, but they also are equally looking out for the best interests of the carrier as well. An independent agency, who partners with multiple carriers, has more of an incentive to keep you the business owner satisfied in order to continue to win your business in the future.

An Independent Agent gives you choice

When you partner with an independent agent you will have the choice of which insurance carrier you would like to partner with. Most independent agencies partner with between 10 and 40 insurance carriers. This gives them the ability to shop your policy around and make the carriers compete for your business. An insurance agent who is a partner with only one or a few carriers, is not able to obtain quotes from as many carriers. In most cases, this causes them to not be able to get as thorough coverage and it may not be at the best rate. When an independent agent partners with many agents they learn the ins and outs of each carrier. They know which carrier is better at the claims process, which carrier is more likely to give additional credits and discounts, which carriers like for you to have a safety program in place. They can advise you on which carrier might be a better match for you based upon what you value. The best match for you may not always be the carrier who offers the best price. They can help guide you through that process with the most thorough and unbiased information.

An independent agent is a partner with an insured, who has their best interst at heart.

An Independent Agent can be your advocate

An independent insurance agent can give you unbiased advice about the coverage’s you are looking to secure. They can give you advice about all the companies you are considering. They can tell you which companies are the best during the claims process, which companies more than likely offer the cheapest rate, why you might want to pay additional premium for the services of a particular carrier.

An independent agent can also be your advocate when you have a problem regarding your insurance policy. These problems can arise when you have a billing question, you buy new property or equipment mid-term, when you need a certificate of insurance for another business you are partnering with or even when you have a claim. This is especially important in the event you have a claim, and all business at some point have to file a claim. If your carrier is not living up to their obligations your agent can hold them accountable on your behalf.

An Independent Agent can save you time and money

Depending upon what you value in the insurance quoting process, an independent agent can help you save both time and money. For some business owners their time is precious and the most important aspect of the insurance buying process is to have the process over with as fast as possible. If this is the case, you can express this to your agent and they can search the policies for you after a 5 or 10 minute conversation. They can get you a quote from as many as ten carriers with minimal time. Partnering with a captive agent means you have to call each carrier individually.

For many business owners, their time is better spent running their business than it is trying to save additional money on premium. Some businesses may have a premium amount that is so small it may not be worth their time to spend an additional few hours to find a 5 % savings on a $500 policy. In the end this would only save them $25. On the other end of the spectrum, a large business with a $75,000 policy may block out as much time as a half a day or even multiple days to find the best insurance policy for their business. In this instance a 5% savings would add up to $3,750, which is a months worth of salary for one of their employees, it could be a $500 bonus for 7.5 employees, or it could be a winter vacation to Florida for the owner of the company. No matter what you as a business owner value, an independent agent can save you time and money by having them do the searching for you all at one stop.