Workplace Safety

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Why Workplace Safety is so Important for Small Business

When a worker is injured at work, it costs the company money. It costs the company money in the form of lost work hours, reduced productivity, decreased employee morale, increased insurance rates, and even possible litigation. Productivity is lost when other workers have to stop work to deal with the injury and the other employees have to pick up the slack while the injured employee is not able to work. Workplace Safety is a important for any small business for a number of reasons. At the top of the list should be the health and well-being of the staff. When employees are safe and healthy they are happier and more productive employees. Here are three reasons to focus on creating a safe workplace and three tips to create an effective workplace safety program.

Construction Workers wearing a hardhat, holding a measuring device and documenting a companies workplace safety program.

Why should a Small Business create a Workplace Safety Program

Focusing on Safety Creates Loyal Workers 

Small businesses most valuable asset is always the people they employee. Businesses that take care of their employees the best have employees who best take care of the companies customers. Attrition and absenteeism can be extremely costly for a small business. Focusing on workplace safety can reduce employee turnover by creating a workforce that is healthy and happy. When employees are happy, they are much more likely to stick around.

Reduce Workplace Stress

Making workplace safety a focus of a small business will lead to a less stressful work environment. Some stresses are not able to be eliminated. Working out in the elements, being on your feet for long hours, or working with heavy equipment are necessary aspects of some businesses. The environment within which these employees deal with these issues determines how much stress those employees ultimately take on. Employees that are under less stress, are more productive employees. Taking regularly breaks and having regular talks about safety topics can go a long way toward keeping your staff fit for the job.

Less Absenteeism

Workers want to operate in a safe environment. Absenteeism increases when employees are under undo stress. When an employee does not feel safe, they are much more likely to not come in to work more often then when they work in an environment where their care and well-being is valued. Absenteeism has been shown to drop when effective safety programs are implemented in to the workplace.

White and Blue background with the word Safety in multiple colors.

How to create a safe work environment?

Extensive Workplace Safety Training

When a business has employees who need to use dangerous tools and equipment in order to do their job, it is important to take an adequate amount of time to properly train those employees how to use the equipment in a safe manner. Lack of training can lead to employees taking shortcuts or not using the equipment in the manner it was designed to be used. This can lead to enormous risk for your business. It is always best to have employees use the correct tools, to maintain those tools properly, and to have adequate supervision when dangerous equipment is in use.

Focus on Ergonomics

Ergonomics is a hot term in the workplace safety world. This is because more industries are requiring employees to have a sedentary lifestyle. Working in front of a computer is not what humans are designed to do. When people are sitting with bad posture and in a workstation that is not conducive to comfort, repetitive use injuries are more likely to develop. Ergonomics and posture are important for small businesses to focus on regardless of whether the business has employees who sit at a desk for eight hours a day , employees lift heavy material as a normal part of their workday, or the employees operate a loading dock with thousands of pounds being loaded and unloaded regularly. A strong focus on ergonomics should be a part of any workplace safety program.

Create a Workplace Safety Committee

The best way to develop a business culture that values workplace safety is to get the employees involved at all levels of the organization. Creating a safety committee is a way to get all levels of the organization to be thinking about and contributing to a culture of safety. The safety committee should have at least one employee from each department within the organization and should meet on a semi regular basis. The meetings do not need to be exhaustive or time consuming, but they should be regular and routine. Implementing regular Toolbox Talks can be a great way to make safety more a part of your company culture.

Yellow and Black road sign that reads Safety First.

How Should a Business Best Deal with an Injury in the Workplace

4 Time Periods To Prepare For Before An Organization Experiences An Injury At Work

If a business stays in business long enough, the business is going to experience an injured employee at some time. How a business prepares for and reacts to an injury on the job, goes a long way towards the long term success of the business. Preventing injuries will result in less insurance claims and the claims that are processed will be less severe. When a business is well prepared to deal with an injured worker, the injured worker will be cared for quickly. This will get the injured employee the benefits they deserve quickly and back on the job in a timely manner. This will keep the severity of the claims under control and positively impact the businesses experience modification rating. Finally, businesses that are prepared to get an injured employee back to work in a limited capacity will benefit from happier employees and lower rates for workers compensation insurance now and in the future. Here are four time periods to prepare your business for when it inevitably has to deal with an injured employee.

Co Worker carrying another employee after an injury at work.

Pre Claim

Before an injury occurs to an employee, the best thing an organization can do is put in place a system to prevent injuries and prepare for how to deal with them when they do occur. Creating a safety committee is a great way to get multiple key employees involved in developing a culture of safety within an organization. This committee can develop an incident response plan, an incident report form, a safety plan, and even a return to work program.

Day of the Injury

First and foremost, it is always most important to take care of the injured employee. Taking care of the health of any employee should always be of utmost importance to any business. Keeping someone on staff that is trained in first aid and CPR may be helpful. If you do have trained employees the manager on duty should use those skills to adequately take care of the injured employee until medical personnel arrive or the employee can drive to the medical facility themselves. Assessing the scene is crucial. If the business is open to the public, it is important to keep customers away from the injured employee. If the business operates in an office setting, it may be a good idea to keep other employees away from the area of the injured employee. Remember, the other employees in the organization are watching the way you treat an injured employee. How business leadership treats an injured employee speaks volumes to all employees throughout the organization.

Week after the Injury

In the week after an injury, or the week after the injury is reported to management, it is important to have open communication with the employee about the workers compensation process. Do not expect the employee to know how to maneuver the workers compensation system. Some medical facilities may know how to process workers compensation claims and others may not. Going to the proper facility can speed up the time to get claims paid. It can also speed up the amount of time before the injured employee gets their benefits. Explaining this to them can ensure this process runs smoothly. Keeping the employee happy from the beginning can help the process move smoothly throughout.

Month after the injury

Eventually the employee will be ready to return to the job. Creating a return to work program can get injured employees back on the job quicker. The quicker an employee gets back on the job, the more likely they are to return to full time permanent employment. Getting an employee back on the job can limit the severity of an insurance claim. This will positively impact the experience modification rating of the business. This rating will impact what the business pays for workers compensation insurance in the future.

 

15 Terms to Know When Renewing Workers Compensation Insurance

Insured

The insured person is the business or entity involved in an insurance relationship that is protected under the policy. The insured can be an individual, a business, or a non-profit organization.

Insurer

The Insurer is a term referring to the insurance carrier who is offering coverage under the policy.

Additional Insured

An additional insured is anyone, other than a policyholder, who is also covered by an insurance policy. This coverage may be limited to a single event or in some instances it lasts the lifetime of the policy.

Carrier

The Insurance Carrier is the company who is providing the protection provided under an insurance policy. Some carriers have only captive agents who offer only their products while others partner with independent insurance agents who sell the products and services of many carriers. The carrier is responsible for processing a claim, not an insurance agency.

Underwriter

The underwriter is the person within the carrier who makes a decision to offer coverage or not, and what to charge for that coverage. They make this decision based upon the policies of the state they are offering coverage in and the appetite of the carrier they work for.

Agency

The agency is the business that helps individuals and businesses decide which types of insurance are best for their situation. The agency acts as a middle man who sells the products and services of a carrier. They do not service the policies when a claim arises. It is a good idea to keep your agent in the loop when a claim arises so they can hold the carrier accountable if they do not live up to their end of the policy terms.

Producer

The term producer, also referred as the agent, is the salesman in charge of finding the proper products and services for both individuals and businesses. The producer is your first point of contact between the insurer and the insured.

Named Insured  

Any person, business or non-profit organization who is specifically named as an insured on the insurance policy. It is important to realize that this is different from entities who are unnamed but may fall within the policy definition of an insured.

Date of Injury (DOI)

The term date of injury refers to the date the injured employee first experienced an injury. If there was an incident, it is the date of the incident, but for long term use injuries this is the date the injury was brought to the attention of the business or organization.

First Report of Injury

The first report of injury is a form a business must fill out during the workers compensation process. This term refers to the date the employee first reports an injury to their superior. This may be the same day as the date of injury, but it also may be at a later date. It is important to develop some type of incident report and require managers to fill them out any time there is

National Council on Compensation Insurance (NCCI):

NCCI is the term that refers to the National Council on Compensation Insurance. NCCI gathers data, analyzes industry trends, and provides objective insurance rate and loss cost recommendations to the states it partners with. States that use NCCI typically enjoy lower rates on workers compensation insurance premium.

Experience Modification Rating

The experience modification rating is a term that refers to a number used by insurance companies to gauge both the past cost of injuries and the future chances of risk. This rating has a strong impact on whether a business will be offered workers compensation insurance coverage and what the carrier will charge for that coverage.

Loss Ratio

The loss ratio is a ratio of the insurance claims paid by an insurer in relation to the premiums earned from the insured. It is usually calculated over a one-year period.

Hammer Clause

A ‘Hammer Clause‘ is a provision within an insurance policy. The provision gives the insurer the right to settle an insurance claim for an undisclosed amount. If the insured decides not to agree with the settlement they must take on some of the risk involved with moving forward without a settlement. On some policies, the insured takes on all of the risk, but most of the time the amount is either 70/30 or 50/50.

Assigned Risk Provider

The assigned risk provider is commonly referred to as the pool or the state fund. This term applies to a workers compensation system. In the United States, the workers compensation insurance systems are governed by the state and not the federal government. Each state provides for a provider of last resort. This provider of last resort provides workers compensation coverage for businesses that cannot find coverage on the open market. In some instances, the business cannot find coverage because of the industry the business operates. In other circumstances, the business cannot find coverage because of their claims history (the business has a lot or a severe claim on the record). The Assigned Risk Provider offers coverage almost always at a higher rate then the open market. In most states, once you are in the pool you must stay in the pool for 2-3 years.

Swimming Pool Maintenance

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NCCI Class Code 9014 | Swimming Pool Maintenance

NCCI stand for the National Council on Compensation Insurance.  NCCI is the main governing body in most states for workers comp codes. Not every state partners with NCCI for their workers compensation system, but those that do tend to enjoy favorable rates on insurance premium. The classification codes set by NCCI generally include a variety of operations related to what the employees do on a daily basis. Swimming Pool Maintenance Companies are given NCCI Class Code 9014. Other businesses included within this class code are Janitorial Services (both residential and commercial), Chimney Cleaning, Environmental Clean Up, Exterminator, and Carpet Cleaning. Swimming Pool Maintenance Companies are unique businesses that exist within a niche.

Swimming Pool Maintenance Equipment on the side of a pool.

Only a few carriers are willing to quote swimming pool maintenance companies. Because of the specialization of this industry, there are risks that faces these businesses that other industries do not face. When the company adds construction to their list of operations, carriers are much less likely to offer coverage. This is a good reason to partner with an independent insurance agent because an independent agent can give you unbiased advice. They can give unbiased advice because they are not tied to one carrier. This allows them to advise you on the products and services of the entire market instead of just the one carrier a captive agent represents. When you are thinking about expanding your business, it is wise to consult with an insurance professional (like an independent agent) to determine if the expansion creates new risks and if those risks are worth the potential new revenue from the expansion. Regardless of who a business  decides to use as their insurance agent, the knowledge of an experienced insurance professional is extremely valuable. Determining what risks your business faces, how to best protect against those risks, and what level of risk the business owner is comfortable with are all aspects of insurance that should not be taken lightly. When determining how to best insure your swimming pool maintenance business, here are seven types of insurance all Companies should consider.

Swimming Pool Cleaner operating underwater.

General Liability Insurance (GL)

General Liability Insurance covers a swimming pool maintenance business for common property damage and bodily injury to outside third parties. Common slips, trips, and falls are common claims covered by a general liability policy. In some instances, a GL Policy will provide reimbursement for medical costs, funeral expenses, and eve court awarded compensation up to the limits of the policy.

Workers Compensation

Workers Compensation Insurance is a policy that is required by law in nearly every state across the country for nearly every business that employs people. If a swimming pool maintenance company is owned and operated by one person, a ghost insurance policy might be ideal. If the business does have employees, a workers compensation policy needs to be secured. A workers Comp Policy provide injured workers with medical costs and some wage replacements for the time they are hurt and not able to work. The amount of wage replacement is typically 60%. The business benefits from having the peace of mind to know they cannot be sued for injuries that occur as a part of normal business operations.

Commercial Property

Commercial Property Insurance is needed regardless of whether the business owns or rents the facility. A Commercial Property Insurance Policy is sold on a replacement basis or on an agreed upon amount. It is almost always best to secure a replacement basis policy. This is because over time the price to build a structure rises. Also, there may be new ordinances and laws that the new facility has to abide by. In addition, if the property needs to be completely rebuilt instead of repaired, it is expensive to remove all debris before new construction can begin. A replacement level policy will cover these cost up to the limits of the policy.

Business Auto Insurance

A Business Auto Insurance Policy is needed for a swimming pool maintenance business if they own vehicles, but also if the business has employees who use their own personal vehicles for work. Also, some form of insurance is needed if the employees drive leased vehicles. If the business owns the vehicles, a traditional business auto policy will suffice. If the business has employees who use their own vehicles or who use rented vehicles, a hired an non-owned auto policy needs to be added to the suite of coverages a business purchases.

Inland Marine Coverage (Floaters)

Inland Marine Coverage is needed by a swimming pool maintenance business if they have expensive equipment that is frequently transported to third party locations. If the equipment is stored at a third party facility, if the equipment is transported on a trailer, and if the equipment is transported attached to the outside of a vehicle; it is only covered by an inland marine insurance policy. The equipment is not covered by a business auto or a hired and non-owned auto policy.

Umbrella Insurance

An Umbrella Insurance Policy is a cost effective way for businesses to ad to the limits of all existing policies. An Umbrella Policy sits on top of the existing policies and it kicks in when the limits of those policies have been met. If the limits of an existing policy are met, the umbrella policy will kick in to cover any additional costs up to the limits of the umbrella policy. The key to an umbrella policy is that the underlying loss most be a covered loss by an existing policy.

Business Owner’s Package (BOP)

A Business Owners Package is frequently referred to as a BOP. This is a good way to purchase insurance for two reasons. One it saves the business money. Insurance carriers are more aggressive with discounts when they know they will be getting more business from a small business. Also, a BOP is a good way for a business to purchase insurance because it prevents there being a gap in coverage. A gap in coverage occurs when a claim occurs and there is an exclusion with both policies related to the claim. For example, if the business purchases a business auto policy from one carrier and an inland marine policy from another carrier, there may be an exclusion on both policies when an accident occurs. If both policies are purchased through the same carrier, the likelihood of a gap in coverage is much smaller.

 

Wind and Hail Damage

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Five Tips to prepare you business for Spring Wind and Hail Storms.

In most of the United States, Spring brings about an elevated risk of property damage related to weather events. At the top of the list of weather related insurance claims is Wind and Hail Damage. The damage may be caused to a businesses equipment as well as property. If you own a business that has extensive property and equipment, especially if it is stored outside and you live in a high risk area, you need to prepare your business for Spring Weather. Here are five things to look out for as you prepare your business for the Spring weather season.

Analyze What Weather Risks Your Business Faces

It is important to first determine what risks you face and the likelihood of an event occurring. If you live in Kansas, it is obviously more important to prepare for Tornadoes as opposed to Hurricanes or Earthquakes. Having a discussion with the key employees within your organization can help you determine what risks you, what risks you do not face, and what level of risk exists for each liability. Partnering with an independent insurance agent is a good way to find out about risks you may not realize you face and how to best protect your business from the risks that do exist.

Inspect The Property

Prior to the Spring Season, in preparation for wind and hail damage, it is important to do a thorough inspection of the entire property. Have someone who is trained examine the roof, the gutters, the HVAC System, and any specialized parts of your property. If there are trees on your property, make sure they are properly trimmed to avoid damage to the facility.

Secure All Equipment

Especially if you live in an area that is prone to wind and hail damage, it is important to secure a designated spot for all equipment and other valuables at the beginning of the Spring Season. Equipment stored outdoors should fastened securely to prevent it being lost or stolen after a storm.

First Keep Your Employees Safe

When a storm hits, it is the right thing to do to take care of your employees. Keeping an eye on the weather forecast will help you determine if employees who work outside need to be taken off the job. Keep employees away from windows and if necessary, take shelter in the safest portion of your facility. Put an emergency plan in place ahead of time and practice it from time to time.

Don’t Forget Insurance

Severe weather can hit anywhere, especially in the Spring Months. If you live in an area that is likely to experience wind and hail damage, it is important to speak with your independent insurance agent about what is the best package of insurance for your business to secure. First and foremost, do not base your decision to buy insurance solely on price. Margins for insurance carriers are extremely tight. Credits and discounts are not substantial on insurance premium. If one carrier offers a policy that is noticeably lower in price than a number of other carriers, there is usually a reason for that lower price. The reason for a lower price on premium is rarely because the carrier offering the lower price is known for offering additional limits or providing exceptional customer service. Partnering with an independent insurance agent allows you to get unbiased recommendations about each carrier because the independent agent is not tied to only one carrier.

Nevada Workers Compensation Rates 2019

In 2019 Nevada Workers Compensation Rates will be Some of the Lowest in the Country

Effective the first of March, 2019; Nevada Workers Compensation Rates will be 8.1% lower than the previous year. This is great news because rates on coverage were already the 46th most expensive state for purchasing coverage according to the  Oregon Premium Rate Ranking Study. A workers compensation ranking study done every other year by the state of Oregon. This study found the cost for coverage in Nevada is 71% of the national median. Now not all businesses will see the same amount of savings. Depending upon the industry classification code and the experience modification rating of the business, the savings may be smaller or larger than the recommended premium rate.

Nevada Desert Highway

Why are rates so low in New Mexico?

There are numerous reasons why there will be a decline on workers comp rates in Nevada for the year of 2019. According to the Nevada Division of Insurance, “claim frequency continues to decline countrywide due to improvements in automation and workplace safety”. Because of the decline in claims frequency insurance carriers are forced to pay out less in insurance claims. As a result of these declines, insurance carriers are able to pass some of the savings on to customers. This is great news for the business environment in Nevada. A state that already experienced some of the lowest rates for workers compensation insurance.

Las Vegas, Nevada

What is Unique about the Workers Comp System in Nevada?

The first thing that is not so unique about the workers compensation system in the state of Nevada is that all businesses must purchase coverage and Nevada operates under what is referred to as a no-fault system. A no fault system protects employees by providing medical and disability benefits along with some lost wages. The system also protects employers by limiting liability in the event of a workplace injury. All of these benefits are provided no matter who is at fault for the injury to an employee.

In the past Nevada was a monopolistic state. What it means to be a monopolistic state is that the employer must obtain coverage from a compulsory state fund or qualify as a self-insurer. This means all businesses that operate within the state must purchase coverage from one provider. There is no open market for coverage. To be self insured, the business must meet certain financial criteria to qualify. This is no longer how the Nevada Workers Compensation System is operated. Currently, Nevada is an NCCI state. NCCI stand for the National Council on Compensation Insurance and this partnership means the state pool for high risk businesses t is administered by NCCI. In most instances, states who partner with NCCI enjoy favorable rates for workers comp coverage.

Lake Tahoe, Nevada

The State of Utah Workers Compensation System in 2019

Utah Workers Compensation Rates 2019

The Utah Workers Compensation System is different from the way other states administer the ‘Exclusive Remedy’. The business community benefits from these differences in the form of some of the lowest rates for workers comp premium in the United States of America. In the state of Utah, workers compensation is a no-fault insurance system. The fact that Utah uses a no fault system means that benefits are provided to the injured employee no matter who is at fault for the worker injury. One of the most impactful aspects of the Utah Workers Compensation System is the strength of the Assigned Risk Provider. There are also a few bills passing through the Utah State Legislature that may have a positive impact on the rates businesses pay for workers compensation insurance in the future. Here are several aspects that contribute to the strong Utah Workers Compensation System.

How is the Utah Workers Compensation System Different?

Utah Insurance Department?

The Utah Insurance Department is the governing body that regulates the workers compensation system. The Insurance Department approves the premium rating plans used by workers’ compensation insurance carriers. Premium rates charged for workers’ comp in Utah are revised annually based on statistical data provided by the National Council on Compensation Insurance (NCCI).

What is the Utah Labor Commission?

The Utah Labor Commission is another state regulatory agency that handles disputes within the workers compensation system. These disputes invlove an injured worker and either the insurance company or the employer. Because of the success of this commission, less than two percent of all claims wind up in litigation. The saves the system as a whole an enormous amount of money in saved legal fees. In most cases an administrative law judge is assigned to the case in order to determine what benefits an injured workers is entitled to. In some situations, there is a representative with the employer is asked to provide extensive evidence about claims.

Public Private Partnership

The Workers Compensation System in the state of Utah is a public private partnership between the state government and two outside entities. Those entities are the National Council on Compensation Insurance (NCCI) and The Workers Compensation Fund (WCF). NCCI creates classification codes and recommended pure premium rates. WCF is the state provider within the state and they commonly dominate a large percentage of the market.

Exclusions

When it comes to the system for Workers Comp Utah, all employers are required to carry coverage. There are only a few exceptions to this rule. One of those exceptions is that sole proprietors and partnerships who have no employees other than the sole proprietor or partner are not required to purchase coverage. All General Contractors are required to ensure when they hire subcontractors (including sole proprietorships, partners and corporate officers), that those subcontractors have workers comp coverage. If the subcontractors do not have workers compensation coverage the subcontractor is considered an employee of the contractor. When this occurs, the general contractor must carry work comp coverage. Most states have additional exclusions for certain circumstances. Because there are so few exclusions in the state of Utah, all businesses must purchase coverage. This additional amount of businesses who have to purchase coverage contribute to driving the price of premium down.

Why are Utah Workers Compensation Rates so Low?

Strength of the State Fund

The Workers Compensation Fund (WCF) is the strongest assigned risk provider of any state in the country. Depending upon the year, WCF controls nearly 60 percent of the market for workers comp. This dominance of the market place allows WCF to control what other carriers charge for premium. If other carriers want to compete for coverage in Utah, they must keep their premium rates at or near what WCF Charges.

House Bill 288

In 2018, House Bill 288 (HB288) passed the state legislature. HB288 makes it unlawful for employer to interfere with an employee’s ability to seek workers’ compensation benefits. In addition, it made it illegal to retaliate against employees for seeking benefits. This bill establish fines of up to $5,000 for each individual violation.

Senate Bill 75

Senate Bill 75 (SB75) was passed to allow the Division of Industrial Accidents to waive the penalty for failure to purchase workers comp.  SB75 states ‘the violation must be the employer’s first violation and the period of noncompliance must be less than 180 days’. This is intended to allow businesses one mulligan when it comes to not securing coverage.

Commercial Insurance Checklist

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Do You Know What Your Business Needs For its Next Commercial Insurance Renewal?

Commercial Insurance Checklist

Familiarize yourself with the jargon

Buying commercial insurance is something a small business owner has to do once a year. It is not something most business owners think about on a daily basis. When interacting with employees within the industry, there may be an awful lot of small business insurance jargon that is not exactly common knowledge to the general population.

Is the Address Still the Same?

The insurance agent will need an accurate and up to date address for the business. If the business has moved, it is necessary to inform the carry of the new address.

How many employees do you now have?

The insurance agent will need to have an accurate count of employees. Employee turnover is common in most industries. If you can provide your agent with the number of employees now, the average number of employees throughout the past year, and the man hours worked for each employee classification code; it will help your agent get a more accurate quote.

Have you purchased any new equipment, including vehicles?

Informing your insurance agent of new equipment purchases is important for a number of reasons. Ideally you should inform your insurance agent when you purchase the vehicle or the new piece of equipment. The value of the new vehicle will impact the premium rate for either the commercial auto or inland marine insurance policy.

Does your Business offer any new goods or services?

If your business started selling new products or offering new services, it may change the classification of your business. This is especially important if your business begins offering anything with a driving risk. From an insurance perspective driving is an activity that significantly increases the frequency and severity of insurance claims. Because of this, business that have employees who drive as part of their daily routine will pay more for commercial insurance.

Assess Your Risk

It is important to periodically assess the risks your business faces. Prior to renewing all commercial insurance policies is a good time to think about any accidents that occurred throughout the year including any near misses.

Speak Long and Honestly with Your Insurance Agent

After you have assessed the risks of your business internally, it is important to schedule an adequate amount of time to talk over an concerns you have with your insurance agent. If anything has changed, they need to know about it. If anything concerns you, your insurance agent can act as a wealth of knowledge to prevent accidents from happening and for properly protecting your business from the risks you actually face.

Make sure you have all required coverages

Workers compensation and general liability insurance are required by law for most businesses in most states. You will need to check with the state governing body within your state to see if their are any additional coverages required. If your business sells or serves alcohol, it is usually a requirement to carry liquor liability insurance.

Ask About Additional Coverages

Do not try to skimp by on only the bare minimum coverage. This is typically a recipe for disaster when a claim occurs. Most businesses need additional coverages than just GL and WC. Speaking long and honestly with your insurance agent can help you make sure your business is properly protected. Remember they are not just there to sell you an additional product, they are there to help you determine how much coverage you need and if there are any types of coverage you may be able to do without.

Shop Around

Every few years, it is a good idea to shop around your policy with multiple carriers. Partnering with an independent insurance agent is a good way to do this efficiently. An independent insurance agent can shop your policy out for you and get quotes from multiple carriers are in one stop. This should be able to get your business better coverage at a lower rate. Additionally, because an independent agent is not tied to one carrier, they can give you unbiased advice about the coverages you are considering. margins within the insurance industry are extremely tight. When one carrier offers a noticeably lower rate, there usually is a reason for it. The reason for the lower rate is rarely because the policy provides more coverage or the carrier offers better service throughout the life of the policy.

What is a Ghost Policy?

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And Who Might Benefit From a Ghost Policy?

A Ghost Insurance Policy is a type of Workers Compensation Insurance Policy where the owner of a business is excluded from coverage and they are the only employee of the business. There must be no additional employees for the business in order for a Ghost Policy to be appropriate. In most cases, this type of policy is purchased by a contractor or subcontractor to satisfy coverage requirements within a contract they are agreeing to with another contractor or business. The policy is not designed to provide workers compensation benefits except when the employer hires employees or becomes liable for an uninsured subcontractor. Not all states allow Ghost Policies, but where they are available they can be the best scenario for many small contractors and subcontractors who have no employees or subcontractors.Ghost

How Does a Ghost Policy Work?

In most cases, the term ghost policy refers to a workers comp policy purchased by a business owner, typically a sole proprietor, who is the only employee of the business. The coverage basically provides no “real insurance coverage”.  It is a minimum earned policy where the owner is excluded from coverage on the Acord 130 Form and there are no active or anticipated employees for the policy period. What a minimum earned policy means is that the policy includes the standard state expense constant and the insurance companies minimum required premium for a policy. Businesses request this type of coverage because it is normally  cheaper than a policy where the owner wages are applied to the policy.

Why Might a Business Want a Ghost Policy?

There are a number of reasons why a business would choose this instead of a traditional workers compensation policy. First and foremost, this type of policy enables a business owner to have a certificate of insurance issued. This is typically required to enter in to most contracts. A ghost policy can cost a significant amount less compared to a workers comp policy including the owner and all of their payroll. Finally, a Ghost Insurance Policy provides the business with employer liability protection, This type of coverage may be needed in the event an employee is hired or the business makes a payment to an uninsured subcontractor. It is important to remember, ghost policies are audited for additional exposure just like a traditional workers compensation policy. This occurs at the end of each policy period and if the requirements for a ghost policy are not met, the business may owe additional premium.

Louisiana Workers Compensation Rates 2019 Are Declining

5 years of Continued Declines for Louisiana Workers Compensation Rates 2019

Starting on May 1st, 2019 the Business Community will be saving 5.6 percent on average for Louisiana Workers Compensation Rates 2019. Louisiana Insurance Commissioner Jim Donelon said, “Rates have had a cumulative drop of 19 percent over the last five years and 51 percent over the last 20 years.” This is a very good sign for the most businesses operating in the state of Louisiana. Depending upon a number of factors, some businesses will see a larger decline in workers comp rates and other businesses will receive a smaller decline. Overall, the business community throughout the state will be saving money on workers compensation insurance premium in 2019. Louisiana Workers Compensation Rates 2019

Why are Louisiana Workers Compensation Rates 2019 Declining?

The agency said workplace safety is a factor. Louisiana has one of the lowest non-fatal work-related injury rates in the U.S., according to the Bureau of Labor and Statistics.

Louisiana Workers Compensation Rates 2019 are declining again. There are a number of reasons for the declining rates. At the top of the list of reasons for declining rates is competition in the market place, improved workplace safety, and better risk management practices being used throughout the business community. According the the Bureau of Labor and Statistics, Louisiana has one of the lowest non-fatal work-related injury rates in the United States. Speaking about the reasons for the decline in premium Donelon said “Louisiana businesses are benefiting from the competition in the workers’ compensation market. Through improved workplace safety and better risk management practices, rates have continued their downward trajectory and are more affordable for businesses statewide”.New Orleans, Louisiana

What Can Business Owners Do To Enhance Their Savings?

Partner with an independent agent

Partnering with an independent agent is usually the best way to get the most comprehensive coverage at fair rates. A traditional agent (captive agent) sells the products of one or a select few carriers. If that carrier is not hungry to quote the policy you are looking for or the industry you operate in, they may not offer a competitive rate.

Shop Around your policy

It is not a wise decision to switch carriers every year based upon a slight drop in premium. Long term relationships do mean something, especially when you have a claim or a year where your business has several claims. It is also a good idea to shop your policy around periodically to make sure your carrier is competitive with the current market place.

Focus on Safety

Safety is the most important thing any business can emphasize to make their operations more appealing to an insurance agent. This is because businesses who focus more on safety have a tendency to file less insurance claims. This positively impacts a businesses experience modification rating and can have a long-lasting impact on what your business pays for commercial insurance.