business insurance
Insurance Brokers or Agents Working From Home
Are you an insurance producer with an existing book of business? Are you tired of commuting into the office every day? Would you like to work from home and have the same access to carriers and service staff that agents have at large brokerage houses? Call Lemore Insurance Services to discuss the opportunity that we have for you.
Travelers Institute Partners with Small Business California to Advocate for Small Businesses and Identify Solutions to Complex Challenges
SAN FRANCISCO, Oct 20, 2011 (BUSINESS WIRE) — The Travelers Institute, the public policy division of The Travelers Companies, Inc. TRV +3.89% , today announced the results of its California small business survey, in which more than two out of three Bay Area entrepreneurs, policy makers and community leaders surveyed feel that small business is more heavily impacted by government regulation than their larger counterparts. The results were revealed at the Travelers Institute’s “Small Business, Big Opportunity” symposium, which convened San Francisco small business leaders at the historic Merchants Exchange Building, an emblem of the city’s economic significance, to identify solutions to business challenges.
At the event, panelists discussed detailed survey findings in which employee benefit matters (61 percent) and cash flow (60 percent) were cited as the top challenges facing small businesses in California. Participants also discussed the Travelers Institute’s white paper, which advocates for greater awareness of small business issues through legislative action to reduce regulatory burdens and offers tips for business continuity and risk management planning.
“Travelers is committed to helping small businesses succeed and influencing public policy leaders to improve the business environment,” said Joan Woodward, Travelers Executive Vice President of Public Policy, who also heads the Travelers Institute. “Small businesses are the backbone of our economy, and we understand it is essential to have state and federal policies that encourage entrepreneurship and fuel job creation in San Francisco and across the country.”
In addition to Woodward, who moderated the panel, program participants included several high-profile San Francisco small business leaders including:
– Christine Baker, Acting Director, California Department of Industrial Relations
– Elizabeth Echols, Regional Administrator, U.S. Small Business Administration
– Regina Dick Endrizzi, Director, San Francisco Office of Small Business
– Scott Hauge, President, Small Business California
– Al Nelson, Regional Vice President, Small Commercial — California Region, Travelers
“Businesses, especially small ones, need encouragement to expand and create jobs, ultimately stimulating the local economy. This requires appropriate access to both resources and capital, and limiting burdensome regulations that stifle growth,” said Scott Hauge, an insurance executive who also runs the entrepreneurial advocacy group Small Business California, which co-hosted the event. “Through its series of small business symposia, the Travelers Institute highlights many of the very obstacles facing entrepreneurs in San Francisco, and we are proud to partner with them to address and solve these challenges.”
At the symposium, panelists discussed the issues of disaster preparedness and business continuity planning as critical to business success. The American Red Cross has data that shows as many as 40 percent of small businesses do not reopen after a disaster, and according to a national Travelers Institute survey conducted in March, more than half of all small business owners surveyed do not have a business continuity plan.*
“As one of the largest insurers of small businesses in the country, we strongly advocate for business continuity planning and risk management,” said Al Nelson, Travelers Regional Vice President of Small Commercial. “We’ve seen firsthand what can happen when entrepreneurs aren’t prepared for disaster.” Nelson added that many business owners consider business continuity planning a competitive advantage, recognizing that an entrepreneur’s reputation and livelihood are at stake if they can’t meet the needs of their customers.
The key findings of the Travelers Institute California survey discussed at the symposium include:
– 71 percent of respondents feel the national, state and local economies are in poor condition. The majority feel it will be the same or worse next year. There is more pessimism among small business owners in California regarding the economy compared to the national sentiment overall, based on a similar national survey conducted by the Travelers Institute.
– Employee benefit matters (61 percent) and cash flow (60 percent) are cited as the top business challenges facing small businesses in California.
– 51 percent cite state/local regulation and 35 percent cite federal regulation as business challenges.
– 50 percent say employment regulations are the most difficult to comply with, followed by health insurance mandates (47 percent).
– The majority (65 percent) feel that small business is more heavily impacted by government regulation than big business.
– More than 4-in-10 feel that government regulation negatively impacts the ability of small businesses to hire new employees and grow business.
Methodology: The survey polled 129 Travelers Institute symposium attendees in conjunction with Small Business California members. The poll was conducted online from 9/20/2011 — 10/7/2011 and respondents included a mix of business owners and principals from small sized firms, as well as policy makers and community leaders in the San Francisco area.
The Travelers Institute has additional forums planned in select markets throughout the remainder of the year to bring stakeholders together to discuss ways to create better operating climates for small businesses. For more information, visit www.travelersinstitute.com .
About the Travelers Institute The Travelers Institute, the public policy division of The Travelers Companies, Inc., engages in discussion and analysis of public policy topics of importance to the insurance marketplace and the financial services industry. The Travelers Institute draws upon the industry expertise of Travelers’ senior management and the technical expertise of many of Travelers’ underwriters, risk managers and other experts to provide information and analysis to public policy makers and regulators. Travelers is a leading provider of property casualty insurance for auto, home and business. For more information, visit www.travelers.com .
About Small Business California Small Business California is a proactive, non-partisan business advocate whose only agenda is the well-being of California’s 3.2 million small businesses. Working for all small businesses for a better business environment, SB-Cal is responsive to the needs of small business owners.
* Based on data collected through a national Travelers Institute survey of small business leaders conducted in early 2011.
SOURCE: The Travelers Companies, Inc.
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Are Your Subcontractors Insured Under Your General Liability Insurance Policy?
Most businesses and consumers assume that subcontractors that are hired on behalf of a business are covered under that business’s general liability and workers compensation policies. This is most often not the case.
Most general liability policies contain a subcontractor exclusion. The subcontractor exclusion clause excludes coverage that is caused by a subcontractor. In such cases the business that is hiring the subcontractor must protect itself from damages that can be caused by the subcontractor that was hired to do the work. The best way for a business to protect itself from damages caused by a subcontractor is to make sure that the subcontractor has adequet coverage. There are two steps that must be taken. First, the company must request to become an additional insured on the subcontractors general liability policy. The second step is to request a copy of the subcontractors policy to make sure that the terms, conditions and exclusions of the subcontractors policy are acceptable to the business that is subbing the work out. After all, what good is it to be an additional insured on a policy that carries every exclusion under the sun? The terms, conditions and exclusions of a policy are not disclosed on the additional insured certificate and the business that subbed the work out will not know this information untill there is an uncoved claim. By this time, its too late.
Don’t let this happen to you. Check your policy to make sure you and your customers are properly protected against damage or injury.
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Don’t Hire An Unlicensed And Uninsured Contractor
SACRAMENTO —The Contractors State License Board (CSLB) wants consumers in smaller communities and rural areas of the state to know that they’re especially vulnerable to becoming victimized by unlicensed contractors. Last week CSLB’s Statewide Investigative Fraud Team (SWIFT) investigators teamed with the Kern County Sheriffs and District Attorney Offices, and the Department of Homeland Security’s Immigration and Customs Enforcement to conduct a sting in the city of Ridgecrest.
The operation, conducted on February 3, 2011, led to the arrest of eight suspected unlicensed operators. CSLB investigators posed as homeowners and invited suspected phony contractors to a newly constructed home near Pearson Park. Investigators asked for bids that included landscaping, fencing, and painting. If the bid totaled more than $500 in labor and materials and the suspect was not state-licensed, they were arrested. Eight were given a Notice to Appear (NTA) in court to face misdemeanor charges of contracting without a license; some also face charges of illegal advertising, and soliciting an excessive down payment, also misdemeanors. All eight will face a charge of failing to secure workers’ compensation insurance for employees. They are scheduled to appear in Kern County Superior Court in Ridgecrest on March 29, 2011.
“This sting is a perfect example of why homeowners need to make sure the contractor they hire is properly licensed and insured. It only takes a minute to check information on the CSLB website at www.cslb.ca.gov or www.CheckTheLicenseFirst.com,” said CSLB Registrar Steve Sands. “If someone working on your property is injured and is not covered by workers’ compensation insurance, they could turn around and sue you for their medical bills.”
By law, anyone performing home improvement services that total more than $500 in material and labor must be licensed by the state of California. Contractors must include their CSLB license number in all advertisements and contracts. Those who are not licensed can only perform jobs valued at $500 or less. Their ad must state that they are not licensed.
CSLB received critical support for this operation from one of its legitimate licensed contractors. Four of the eight arrested during last week’s sting operation were the result of leads from that licensee.
Licensees face the difficult task of competing against those who break the law by operating in the multi-billion dollar underground economy. In addition, the loss of tax revenue takes money away from schools and law enforcement.
“Homeowners should also know that they have little recourse against an unlicensed operator if something goes wrong with a project,” added Sands. “That’s especially true if you give them a big down payment and they never show up to start the job.” CSLB offers a variety of free services, including mediation and arbitration, for consumers who have a problem with their licensed contractor.
CSLB urges all California consumers to follow these tips before hiring a home improvement contractor:
• Be especially hesitant when approached by someone offering home improvement services door-to-door.
• Verify the contractor’s license online at www.cslb.ca.gov or www.CheckTheLicenseFirst.com, or via CSLB’s automated phone system at 1-800-321-CSLB (2752).
• Ask to see a photo identification to verify the contractor’s identity.
• Don’t pay more than 10% down or $1,000, whichever is less. There is an exception to this rule for about two dozen contractors who purchase special bonds and are noted on CSLB’s website.
• Don’t pay in cash, and don’t let the payments get ahead of the work.
• Get at least three bids and insist on a written contract before your project begins.
The Contractors State License Board operates under the umbrella of the California Department of Consumer Affairs. More information and publications about hiring contractors are available on the CSLB website or by calling 800-321-CSLB (2752).
Contractors, need assistance with contractors insurance or business insurance for any industry? Call us at 818-348-6106
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Contractors Insurance – Beware of prices that are too good to be true.
As the economic climate becomes more hostile towards remodeling contractors and new home builders the need to save money on contractor’s insurance coverage increases. However, contractors need to be well aware of what it is they might be giving up to get that low price. Insurance brokers have several ways of lowering the cost of your contractor’s insurance costs. However, they are also lowering coverages and thereby the level of protection that your business has against claims for property damage, bodily injury, construction defect, or any other claim that might arise.
In this article I will introduce the concept of the sunset clause, the manifestation clause and the money saving risk retention group policy. These are three options that may save you a bundle of money now but can cost you your business later. Unfortunately, when competing for the sale some insurance brokers are willing to sell you anything just to get the business. Always ask your insurance broker if the policy you are purchasing contains one or both of these clauses or if it is being offered by a risk retention group.
The sunset clause limits the time that a claim can be filed after the policy expiration date. For example, a general contractor has liability over his operations for ten years after the projects completion. A sunset clause would limit the ability to file a claim to however many years the clause stipulates. So a policy with a three year sunset clause would limit the insurance company’s liability to the said amount of time. That does not mean that the general contractor is absolved of the liability for the remainder of the ten year term. The contractor is still responsible no matter what deal he cut with his insurance company.
The manifestation clause limits claims to be filed within the policy year or a short time thereafter. The manifestation clause says that the damage being claimed had to have manifested itself or shown itself to the average person during the time of the policy or the stipulated time period. If the damage was not seen or noticed during the designated time period the claim will not be covered. Again, this leaves the contractor holding the bag for any damages that he may be liable for.
The sunset clause and manifestation clause can be written into the policy separately or together. Used alone or together the insurance company limits their liability so severely that the policy becomes virtually worthless. All this for a savings of usually just a few % of the annual premium.
The third way that insurance brokers sneak one over on the client in an unethical attempt to get the lowest quote possible is with a policy offered by a risk retention group. I don’t care how safe your insurance broker told you risk retention groups are they are not safe at all. Purchasing your insurance coverage from a risk retention group is not a financially sound decision. There are several issues with Risk Retention Groups. The two that I find most dangerous are a) the fact that they are not under the authority of any State Department of Insurance and b) there is no guarantee of funds being available in case of a claim. There is no remedy for the insured if the company is dissolved. These are not minor problems if you ask me. The fact that RRG’s are not under State DOI authority lends them to playing by their own rules often times. I have seen this in the underwriting stage, in the policy servicing stage and in the claim process. Even when an insured files a complaint with the DOI, the RRG cannot be compelled to act. Once a business buys this type of coverage they are opening up a can of worms that may very well come back to haunt them.
While there are several safe ways to save money on your business insurance these are not some of the ways that I would recommend. Although I am addressing contractors in this article this information is important to anyone who is purchasing business insurance no matter what their industry. Ask your broker to put all the terms, conditions and exclusions of the policy that you are about to purchase in writing on a formal proposal. Make sure to read the entire proposal and make it a point to understand the insurance proposal thoroughly. If there is any part of it that you do not understand take the time to ask your broker. That is what he or she is there for. Also, make sure that the name and rating of the insurance company is noted on the proposal. This will enable you to make sure that you are purchasing coverage from a reputable carrier that has a good reputation and is going to stand behind you and your business at the moment of truth. If you still don’t feel like you are getting the coverages you need for a reasonable price shop around. Call a broker that specializes in the type of coverage that you are looking for. It is your right as a consumer to get the best coverage that your money can buy.
Need assistance with contractors insurance or business insurance for any industry? Call us at 818-348-6106