Alaska Workers Compensation Rates in 2019 are going down!

The Largest Decrease for Workers Comp Insurance Premium in 40 years for Alaska Business Owners

In 2019, Alaska Workers Compensation Insurance Rates are expected to fall the most they have in 40 years. The governor office announced this past October that workers’ compensation insurance premiums should decrease by an average of 17.5 percent statewide starting the first of January.  This decrease follows a 5.4 percent decrease in 2017 and workers’ compensation premiums are down roughly 25 percent since 2015. These reductions amount to an estimated $35 million in savings for the Alaska Business Community. According to Alaska Governor Bill Walker, “These proposed rate reductions are welcome news for Alaska businesses — lower workers’ compensation costs reduce the burden on the small businesses that strengthen our economy,” Walker said in a formal statement. “Thank you to the Alaska state Legislature and the Department of Labor and Workforce Development for their work on payment reform, contributing to significant rate reductions for 2019.”

Mount McKinley, Denali National Park, Alaska

What Caused Alaska Workers Compensation Insurance Rates to Decline?

There were a number of factors that contributed to the large decline in Alaska Workers Compensation Insurance Rates. Claim frequency and favorable medical costs continued to decline in 2018 which were two of the major factors contributing to declining rates. The claims frequency means that across the board there were less claims filed in 2018 compared to previous years. This is a favorable measurement for insurance carriers because this decreases the costs related to paying out insurance claims and processing those claims. Declining medical costs is largely because of streamlined processes throughout the medical facilities operating within the workers compensation system.

There was also legislation passed in 2018 that will contribute to lower rates in 2019 and for the foreseeable future. The legislation was House Bill 79 (HB79). the legislation clarified who is classified as an independent contractor and who needs to be covered by workers’ compensation insurance. This bill made it easier to obtain exemptions, to acquire reporting data, and to make payments.

Alaskan Cruise Ship

What can Business Owners do to Maximize Alaska Workers Compensation Insurance Rates?

There are many ways a business owner can save, in addition to the savings the Alaska Business Community is receiving from workers compensation premiums declining. Here are 5 things a business owner can act upon to maximize savings on Alaska Workers Compensation Insurance.

  • Make sure your Business is Classified Properly
  • Implement a Safety Program
  • Incorporate a Return-to-Work Program in the Safety Program
  • Consider Pay-as-You-Go Workers Compensation
  • Partner with an Independent Insurance Agent

Proper Classification Codes

In any given year, there are more than 700 different classification codes for businesses and employees to use when it comes to workers compensation insurance. Making sure your business is classified correct is a step that can save a lot of headaches during a mid term or end of term audit. Proper classification can prevent your business from over or under paying premium throughout the year. If you under pay throughout the year, it can cause your business to owe additional premium at the end of the term. Even if your business over pays through out the year and gets a credit on their policy, it means your business has had unnecessary cash flow tied up in workers comp premium payments. This is money that could be used on other necessary business needs.

Well-Documented Safety Program

A safety program can help a small business lower what they pay for commercial insurance by decreasing the frequency and severity of workers compensation insurance claims. The safety program does not have to be exhaustive. It can be as small as part of the new staff training program and a few 15 minute huddles each week. It is important to have these meetings documented. Your insurance agent can use this documentation to get you an additional discount when purchasing coverage. The documentation can also be used when a business experiences a year in which there are several claims or one large claim. Usually when this occurs your can expect your insurance premium to rise. If you have a documented safety program, your independent insurance agent can use it to show the claims are more of an outlier and not a sign of more claims to come.

A Return-to-Work Program

A return to work program is a great way to show your employees you care about them and help them get back to their daily routine quicker. When executed properly, a return to work program can help get your injured workers back on the job, even in a limited capacity, and back a part of their regular work routine. This is the best way to keep insurance claims under control and help keep your experience modification rating low.

Pay-as-You-Go Option

Some businesses may benefit from Pay as You Go Workers Compensation. Most traditional workers comp policies require 25 to 33 percent of the entire premium up front just to get coverage in place. With the Pay as You Go Option, most businesses can get coverage in place for as little as a few hundred dollars. This allows cash strapped businesses to get coverage in place, but use their needed cash flow for other more urgent business needs.

Partner with an Independent Agent

An independent agent is always the best way to find the most comprehensive insurance coverage at the lowest rate possible. Especially if the independent agent has several years of experience and relationships with multiple insurance carriers. They can use this knowledge and these relationships, to know which carriers are actively looking to quote your industry and and force carriers to compete for your business.

California Workers Compensation Rates 2019

Prices are Declining for California Workers Compensation Rates in 2019 

California Workers Compensation Rates 2019 are going to cost the business community less than in 2018. The average rate of $1.63 per $100 in payroll by Jan. 1 will be approximately 72 percent lower than when rates peaked in 2015. In 2015 the recommended rate was $2.81 per $100 in payroll.  According to California Insurance Commissioner Dave Jones, “Cost savings in the workers’ compensation system have helped insurers and employers deserve to share in the cost savings through lower premiums,” This is the lowest rates for workers compensation insurance have been in the state of California in five years.

Iconic Golden Gate Bridge, atracts businesses to San Francisco. Those businesses will be paying less for California Workers Compensation Rates 2019.

What is contributing to Lower California Workers Compensation Rates 2019?

California has some of the highest rates for workers compensation insurance in the country the California Workers Compensation Bureau WCIRB has pointed to a high frequency of permanent disability claims as a reason for higher costs. Also, California has a higher than average cost of handling claims and delivering benefits. This contributes to the state having higher rates for workers compensation premium. Businesses in the state of California spent $16.2 billion on workers’ compensation just last year.

In 2019, California Workers Compensation Rates are continuing to decrease for the fifth straight year primarily because of reforms made to fight the opioid epidemic, low inflation for medical and pharmaceutical costs, and increased fraud investigations. The amount paid out for opioids in 2018 was nearly a fifth of what it was in 2013. This drop was from $15,687 to $3,204 per 100 claims, according to WCIRB, the California Workers Compensation Insurance Rating Bureau. A large part of the reason for the decrease in what the workers compensation system paid out for opioid prescriptions is because California enacted a program called CURES (Controlled Substance Utilization Review and Evaluation System). CURES is a database of Schedule II, III and IV controlled substance prescriptions dispensed in California serving the public health, regulatory oversight agencies, and law enforcement.The CURES Program requires dispensing pharmacies, clinics, or other dispensers of Schedule II through IV controlled substances to provide specified dispensing information to the Department of Justice on a weekly basis in a format approved and accepted by the DOJ. This has significantly decreased the amount of opioid abuse throughout the state and that has benefited the workers compensation system.

Iconic Hollywood, California

What can Business Owners do to continue saving on California Workers Compensation Rates 2019

California Workers Compensation Rates 2019 are decreasing for the fifth straight year. This represents a decrease of 72 percent over this time period, but businesses in California still pay more for workers comp coverage than nearly all states throughout the country. Because of these high rates, it is important to maximize savings in any way possible. Here are five ways business owners can alter the way they do business in order to save on commercial insurance.

Make sure your business is classified properly

Far too many businesses are classified improperly for purposes of workers compensation insurance. This is attributed to a number of reasons, but many times it is because a business owner rushes through the quoting process when purchasing Workmans Comp Insurance California. An insurance agent can only act upon the information they are given by the business owner when they are shopping for the best coverage to fit a business owners needs. If the business owner does not explain many intricacies of their business, the business may be classified improperly and pay more or less for coverage throughout the year. This mistake usually gets cleared during the end of term audit, but it can cause a business to owe additional premium. Even if the business over pays and is issued a refund, it means the business has tied up valuable cash flow in unnecessary premium payments throughout the year. These unnecessary payments could have been used on other more important business expenses.

Implement a Safety Program

A Safety Program can help limit the cost of workers compensation insurance in California because it will limit both the frequency and severity of claims. When you business has less claims and the claims you do have are small, the insurance carrier is more likely to offer your business a favorable rate for premium.

Start the Safety Program the day employees are hired

Safety Programs should be a part of your company culture. This should not start after a month in which a few accidents occur. Safety should be part of the training program from the moment an employee starts on the job. The more the business (especially the key employees) talk about safety, the more likely that message is to fester throughout the organization.

Add a Return-to-Work Program to your Safety Policy

A Return to Work Program can significantly impact your experience modification rating in a positive way. When an employee is hurt and not able to work they are much more likely to develop new habits outside of their daily work routine. The longer they stay off the job, the more likely the injured employee is to become long term unemployed. This can have a drastic impact on the experience modification rating of the business. Businesses that are able to get an employee back on the job, even in a limited capacity, are more likely to have those employees return to permanent work.

Communicate with your Insurance Carrier and Healthcare Provider

Communication is key when it comes to navigating the workers compensation system. This is true for the business owner, the injured worker, the insurance agent as well as the underwriter who represents the insurance carrier. The business owner has a responsibility to help the injured worker navigate the workers compensation system and get the care they deserve while not able to work. It is important to keep your agent in the loop throughout this process even though it is the responsibility of the carrier to administer the program. Keeping the agent in the loop can help in the unfortunate event that the carrier is not living up to their end of the bargain. If the agent knows about this process throughout, they can help hold the carrier accountable.

Surfing the California Coast

What are the Requirements for Workers Compensation Insurance Coverage in the State of California?

In California, all employers are required to purchase workers compensation coverage regardless of the number of employees. Sole Proprietors are not automatically included in coverage, but can elect to be included using the Acord 130 Application. Partners are automatically included on policies and they are not allowed to be exempt. Corporate Officers who happen to be the sole shareholder are excluded from coverage, but they have the ability to elect coverage if they so choose. All LLC Members who work within a business are included for coverage, but non-working LLC Members are excluded from coverage unless they elect to be covered using the Acord 130 form.

What are the Payroll Requirements for Business Owners in California?

According to California regulation, Sole Proprietors who elect to include themselves on workers comp coverage must use a minimum payroll amount of $52,000 and a maximum of $133,900 for rating purposes as of January First, 2019. Partners, Officers and LLC Members who do not excluded themselves from coverage must utilize a minimum payroll of $52,000 and a maximum of $133,900 for the purpose of rating workers comp premium.

 

Logo for the Insurance Shop LLCMy Insurance Question is a blog published by the insurance experts at the Insurance Shop LLC.  If you are in the market for any form of commercial insurance give us a call at 1-800-800-4864 or start a quote here: Start a Quote with The Insurance Shop

 

What Insurance do Bars, Taverns and Restaurants need?

Bars, Taverns and Restaurants

Small Businesses in the Bars, Taverns and Restaurant Industry have many different risks that are unique to this industry. The difference between a dive bar and a four star restaurant are as different as a beauty salon and a gun club. There are different classification codes for different types of insurance coverage depending upon the operations of your business. This is because the risks of a coffee shop, is different from the risks of a cafe or a wine bar. Which classification code the business is classified in is a large part of what determines how much they pay for commercial insurance. This may determine whether the business wants to offer a certain type of food or service depending upon how much it will impact what the business pays for commercial insurance.

Overhead picture of a Restaurant.

Alcohol Consumption

Most states determine if a business is a restaurant (not a bar or tavern) if it makes a certain percentage of its revenue from food and not from alcohol sales. The typical amount to be determined a restaurant is less than 50%. If the business makes more than 50% of its revenue from alcohol sales it is a riskier business and is thus places in a riskier classification code. This causes the business to be charged a higher premium for commercial insurance. The next main factor that impacts a restaurants rate for commercial insurance is whether the restaurant offers alcohol or not at all. If the business does not offer alcohol at all, they obviously eliminate the risk of intoxicated customers. This lowers the most costly risk a bar tavern or restaurant faces.  Also, an additional factor in the amount of premium is if the business does offer alcohol, whether or not the business offers hard alcohol or just beer and wine. Hard alcohol causes intoxication at a faster rate, because of this the business is more likely to have problems related to alcohol consumption.

Picture of a bar or tavern.

Hours of Operation

Aside from alcohol consumption the next largest risk that faces Bars, Taverns and Restaurant is the hours of operation. There is much less risk in a diner open from 6:00 AM –  1:00 PM, compared to a bar that serves no food and stays open until 2:00 AM 7 days a week. The latter might carry a few more risks that might turn in to insurance claims. Because of this risk the business is going to pay more in premium for their commercial insurance. Limiting these risks before they turn in to insurance claims can save your business immensely over the long term.

Picture of a table with breakfast food and a laptop.

Types of Coverage for Bars, Taverns and Restaurant

Most insurance carriers have business owner’s packages designed specifically for Bars, Taverns and Restaurants. Here are some common coverages you will find included in those packages.

  • General Liability
  • Liquor Liability
  • Commercial Property
  • Business Personal Property
  • Workers Compensation
  • Business Income and Expense Coverage
  • Commercial Crime Coverage
  • Umbrella Coverage

General Liability Insurance covers a business for common slips and falls that happen on the property, Liquor Liability is required by law in most states and the amount of coverage is usually determined by the amount and type of alcohol a restaurant serves. Commercial Property Insurance covers damages to the building and most fixtures attached to the building. Workers’ Compensation is required by law in nearly every state and is coverage to prevent lawsuits for injuries that occur to your employees as part of normal business operations. Business Income and Expense Coverage is an addition to a Commercial Property Policy and will cover your business for loss of revenue due to being closed after damage to your premises. Commercial Crime Coverage will cover your business for crimes committed by your employees while acting on behalf of the company.  Umbrella Coverage is designed to extend the limits of existing policies when those limits have been met. It is important to note that Umbrella Policies only kick in on top of other existing policies. If the cause of the damage is not a covered peril than the Umbrella Policy will not be activated.

 

Below is a list of all the classification codes that might be included as a Restaurant, Bar or Tavern.

Business ISO General Liability:

  • Code: 16920- Restaurant- alcohol sales >75%- Table service, dance floor
  • Code: 16921- Restaurant- alcohol sales >75%- No table service, but dance floor
  • Code: 16930- Restaurant- alcohol sales >75%- Table service, no dance floor
  • Code: 16931- Restaurant- alcohol sales >75%- No table service, no dance floor
  • Code: 16940- Restaurant- alcohol sales >75%- Bar service only, with dance floor
  • Code: 16941- Restaurant- alcohol sales >75%- Bar service only, no dance floor

NCCI Class Codes:

  • 9082 – Traditional Restaurant.
  • 9083 – Fast Food Restaurant
  • 9058 – Restaurants owned or operated in a hotel.
  • 9084 – Restaurant who receives more than 50% of their revenue from the sale of alcohol.

 

 

Residential Cleaning

How a Residential Cleaning Company Can Benefit From Pay as You Go Workers Comp

A Woman Working at a Residential Cleaning Company. Workers’ Compensation Insurance is required by law for businesses in most states. So is General Liability in most industries. For that reason, these two policies are the bare minimum coverage a business needs to be in business. Now for a cash-strapped, seasonal, or start-up business; coming up with the initial payment to get coverage in place can be difficult. Because of this issue, many carriers have come up with alternative payment options for these necessary coverages. The most popular alternative payment option is Pay as You Go Workers’ Compensation. One industry in particular that benefits from this option is the residential cleaning industry. Here are four ways residential cleaning companies benefit from choosing the Pay as You Go Option for Workers Comp Coverage.

  • Pay-as-You-Go has lower up-front costs.
  • Pay-as-You-Go frees up cash for more pressing business needs.
  • Pay-as-You-Go allows businesses to pay premium monthly.
  • Pay-as-You-Go prevents most audits

Residential Cleaning Companies depend upon their employees to keep their customers happy.

Lower Up Front Costs

When a cleaning company decides to go with a traditional workers compensation policy, they are required to make a large lump sum payment just to get coverage in place. They later have to make nine monthly payments at the end of the term. These payments are based upon an estimate of payroll from last year. If your business has plenty of cash on hand and your employee hours are regular from year to year this may not be much of a problem. Most residential cleaning companies do not have regular payroll or mounds of cash on hand. If this sounds like your business than the Pay as You Go Option is a great way to get coverage in place without tying up too much cash.

Frees Up Cash

Now if you are a business that is not rolling in cash, you may need to consider the Pay as You Go Option.  This type of alternative payment method for workers comp coverage allows you to not only lower your up front costs, but it allows you to free up cash throughout the year by paying your premium in real-time each month based upon the accurate payroll from the previous month. This is instead of paying premium based upon an estimate of payroll from last year or the three previous years. This estimate can cause you to severely over or under-pay on premium.

Allows Monthly Payments

Allowing payments of premium each month can help your business in many ways. One of the best ways it helps is by keeping your payments accurate from paying them in real-time. When workers comp premiums are paid on an estimate basis, it can cause you to severely under or over-pay throughout the year. This gets cleared up whenever an audit takes place and an audit takes place at the end of each term, but if you under pay throughout the year it can cause your business to have a surprise payment at the end of the term. Even if you are one of the lucky businesses who over-pays and gets a refund at the end of the term, you still have had additional cash tied up in premium payments throughout the year. This is cash that could have been spent on more pressing needs.

Buying the proper chemicals is an essential part of any successful residential cleaning company.

Prevent Audits

An additional benefit your residential cleaning business can gain from choosing the Pay as You Go Option is to prevent audits mid-term. Because the payroll is calculated monthly by a payroll company it is accurate. This eliminates the need for a mid term audit because the payroll company is auditing the premium payment each month. The Pay as You Go Option also makes the end of term audit much more smooth because the payments have been done based on actual payroll each month. Your staff will spend less time gathering data to compare your actual payroll with the estimated payroll and premium payments based on that estimate. If you have ever underpaid premium and owed a significant amount at the end of the term, you appreciate the accuracy this program provides.

Relief is on the way for Missouri Businesses

On Friday December, 15th; The Missouri Department of Insurance announced it is recommending a 3% decrease in workers compensation insurance loss costs for 2018.  This decrease comes on top of a 4% decrease that took effect in August of this year.

State of Missouri Flag celebrating a decrease in workers compensation insurance premium for 2018.

According to a release from the department of insurance, the decrease is driven by declining lost-time claim frequencies combined with stable average claim costs.  According to a statement from Department of Insurance Director Chlora Lindley-Myers, “Missouri’s lost-time claim frequency has fallen since 2010, and average claim costs have stayed steady for the past several years,”  This means the average claim cost is lower than in years past and the frequency of claims has gone down in recent years.  Additionally, this will be the fourth consecutive year of declining comp rates in the state, according to a department statement.

Relief is on the way for Missouri businesses in the form of a decrease on workers compensation insurance premium in 2018.

Under Missouri law, insurance carriers are not required to follow the recommendations of the state or that of The national Council on Compensation Insurance (NCCI).  Insurers may set their own rates based on NCCI’s recommendations, the department’s recommendations or their own analysis. In order to remain competitive, most insurers offering coverage in the state will change rates accordingly for most class codes.  Now this does not necessarily apply to businesses across all class codes. Some businesses may see larger decreases depending upon the appetite of the carrier to quote that particular coverage and industry. If your business operates in a high risk industry, the decrease may not apply or may be a smaller amount.

 

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

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

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

Painters

Painters or painting, staining and decorating contractors fill a great role within the construction industry. As the economy continues to recover the need for painters continues to grow. With the growth in this industry comes an increase in risk and a need for more insurance coverage. The risks in this industry are much different than if you run an auto repair shop or an HVAC company.

There are certain types of information you will need for a general liability and workers compensation quote. Here are 5 policies every painting contractor needs to secure in order to completely cover them and their employees.

Find the best info about insurance coverage for painters at My Insurance Question.

 

General Liability

General liability insurance is normally the first coverage any small business purchases. This is no different for a painting contractor. In most states this coverage is required by law to be in business. General Liability coverage will cover your liability to third parties for accidents that occur as a part of normal business operations. For painting contractors who work at remote locations, it is important to speak with your independent insurance agent about what exactly is and is not covered when you are operating on the premises of a third party. If you interact with a general contractor who has many contractors operating at one location it is important for you to make sure all of the other contractors have the proper insurance required for the work taking place.

Inland Marine Coverage

Inland marine coverage will cover any specialized equipment you or your employees use as part of your daily operations. This is an important coverage to secure, especially if you have expensive specialized equipment, because most basic policies will not cover this equipment when it is damaged. For instance if you have a van or a vehicle with a trailer carrying extra tools, when a wreck occurs your commercial insurance policy will cover your liability to the other person hurt in the accident and to fix your vehicle, but it will not pay to cover your specialized equipment. This is a coverage your agent can help you determine if you need it or not. Depending upon how much the equipment costs, you may be able to do without this coverage.

Commercial Property Insurance

Commercial property insurance is different from your personal home owners insurance policy. It is different primarily because it is sold one of two ways: Replacement cost or on an agreed upon value of the property. It may be tempting to go with an agreed upon value to save on premium, but this is almost always a mistake. This is because the agreed upon value is usually what the property is appraised at currently. This amount does not include the cost to tear down the dwelling and remove all the debris after a disaster occurs. This additional cost can be extensive.

Commercial Auto Insurance

Commercial auto insurance is also different from a personal auto policy. Commercial auto can be purchased for vehicles your business owns, but it can also be purchased for employees who drive their own vehicles or rented vehicles while on the job. This type of policy is called hired and non-owned auto coverage. Again, with this coverage it is important to take some additional time to speak with your agent about the daily operations of your business. If you are honest with them about what you do on a daily basis they can do their best to prevent occurrences from taking place where your business or your vehicles are not covered.

Workers’ Compensation

Workers compensation insurance is the second coverage a business purchases because like general liability insurance it is required by law in most states. Workers compensation is like general liability, but it applies only to your employees and not to third parties. If your employees are injured at work as a part of what would be deemed normal business operations, workers compensation coverage will pay them for some of their lost wages (typically 60%) and medical expenses. Depending upon the state in which you operate in and the accident occurs, there are time limits on how long the employee can collect workers compensation benefits. Having adequate safety programs and a strong return to work program will help your business from experiencing excessive damage to your experience modification rating.

 

Here at My Insurance Question you can find the best advice on the insurance policies all painters need.

Recommended Insurance Programs for Painters

Minimum recommended coverage:

•   General Liability

•   Inland Marine Coverage

•   Property Insurance

•   Commercial Auto Insurance

•   Workers’ Compensation

Other coverages to consider for Painters:
Business Personal Property, Employee Dishonesty, Contractors’ Equipment (Inland Marine), Umbrella Liability, Commercial Auto Liability, Goods in Transit, Environmental Impairment Liability, Stop Gap Liability and Employment Practices Liability Insurance (EPLI).

Workers Compensation Insurance in California

What makes the Workers’ Compensation Insurance System in California unique?

California Workers' Compensation Insurance

 

California is currently the most expensive state in the country for employers workers compensation coverage. Rates throughout the state have continued to rise over the past 10 years. Much of the increased costs are caused by the rising costs of medical coverage and state laws.

State law, like in most states, requires all employers to provide workers compensation coverage to all employees of a particular company.  Failure to purchase workers comp coverage is a criminal offense in California. Employers may receive a fine of $10,000 or more and up to a year in a county jail.  It is also illegal for any employer to pay a medical bill directly to the provider. A claim form (DWC Form 1) must be filed with the insurance company for any injury requiring more than first aid care.

San Francisco, California

As you may know, California has the largest economy of any state in the United States.  This brings an extraordinary amount of businesses to the state who have an extraordinary need for commercial insurance.  Because the states mandates that employers carry workers comp coverage there is a lot of competition to quote the coverage of those businesses.  In most cases this increased competition would bring the cost of the coverage down, but not in the case of workers compensation insurance.  The main factors driving prices up in the state of California are the state regulations that many would say favor the worker over employers.

According to the Insurance Journal there are steps being taken to curb the increase in workers compensation costs throughout the state of California:

“Claim frequency, claim administration and high medical costs are typically among the drivers of high workers’ comp rates. However, the state in 2012 passed a massive workers’ comp reform law, which according to its supporters seems to be working.

California’s Workers’ Compensation Rating Bureau earlier this month submitted a pure premium rate filing to the California Department of Insurance proposing Jan. 1, 2017 advisory pure premium rates lower than the corresponding industry average.

The WCIRB submitted a rate filing that averaged $2.22 per $100 of payroll, citing in part legislative changes made this year that the bureau believes could help reduce costs. Senate Bill 1160 and Assembly Bill 1244 are both designed to remove medical providers convicted of fraud from the system and prevent them from filing liens.”

Additionally, a lot of business owners in California assume workers compensation is similar regardless of the carrier. Depending upon the industry you are in and the scope of the work you do within that industry, coverages can vary dramatically.  The cost of coverage for the same classification codes can vary significantly between carriers. This is because the appetites for certain industries and types of coverage change from year to year and carrier to carrier. For example, after Hurricane Katrina many insurance carriers were very conservative when offering homeowners or hurricane insurance throughout the coastal areas in the southeast.  This was because of the damaging amount of claims the carriers had to pay out as a result of this damaging storm.

At some independent insurance agencies, they take the work out of finding an insurance company with quality coverage and affordable rates. They do this by being able to quote you coverage from several carriers as opposed to just one or a select few.  In short, they shop the insurance so you don’t have to. Partnering with a good independent insurance agent with whom you trust and speaking candidly with them about your business can go a long way towards saving on workers compensation insurance in California.

Santa Monica, California