Michael Stoop is the president of Metropolitan Risk Advisory. He leads a team of smart & proactive risk advisors whose acumen and protocols yield a substantive outcome for their customers. The goal is to achieve a cost efficiency and cost consistency that better positions them for growth and continuity in their native markets. Michael has been in the industry for over 20 years.
Frustrated by the commercial insurance renewal process…
Every year commercial insurance buyers dread going into “renewal season” attempting to try and get the best pricing for their insurance program. The entire process is flawed, as shown here by another great article.
They receive their quotes at the last minute, asked to make a six-figure purchasing decision usually within 48 hours. That decision is nearly impossible to make correctly! Making the entire process flawed.
In this quick video see why this strategy fails far more than it succeeds. Over the long run, smart companies have figured out a way to drop their program renewal costs 30% more than their average competitors and keep it there year over year giving them a competitive advantage.
Renewing your insurance should not be the hassle that it currently is. It should be another cog in a smooth-running field where different groups exchange goods and services seamlessly in the private sector. Our video and other articles help make the process feel more like the latter.
Still have questions? You can contact a risk advisor at metropolitan Risk at 914-357-8444. Or you can click here for for our website. We have hundreds of different articles that can help answer other necessary insurance questions.
Commercial Insurance Is Essentially A Very Expensive Credit Line In Reverse…
Have you ever missed a payment on a Visa card only to watch your interest rate double because of that simple mistake? Misaligned goals are common and, unfortunately, costly. This happens all the time, and currently there is no way to take back that simple mistake. Like an offense, it stays on the record wherever you go, meaning being proactive and anticipating mistakes like this can be crucial to narrowing costs regardless of the amount of claims filed.
Find out how the commercial insurance marketplace works the same way. Why their goals and your goals are misaligned, trapping the commercial insurance buyer in a cycle of escalating premium increases.
Knowing their playbook helps you adjust your game plan to beat them and your competition. While your goals will never be aligned and on the same page, understanding their objective better will help navigate yourself to your own objectives: lower claims, lower premiums, less costs in general.
Still confused? Still have questions? We are here to help. That is, after all, our job!
Contact one of our professional risk advisors right now at 914-357-8444 or visit us at our website here.
There is a secret to knowing your construction liability insurance renewal pricing months early.
What if we told you that you could predict within a reasonable variance how much your construction liability insurance pricing will change at your renewal? Crazy helpful huh? Well, look no more for a solution to your problem.
If you do not have proper CLI and you are a contractor in construction, get a good policy right now! Here is a great article on why it is so important to have.
It’s a simple calculation that the commercial insurance marketplace uses to determine your insurance renewal pricing. CLICK HERE to get an idea if your construction liability insurance pricing will increase or decrease!
Usually, the calculation uses different formulas and algorithms that take into account previous losses, claim numbers, payroll amounts, location, etc. to figure out how much your company will lose this year and in the future. All of this is to figure out a new renewal price for your insurance policy that seems to be based on this amount of losses so that the insurance company ends up green for the year.
Still confused? Still have questions regarding this type of insurance? You can contact a professional risk advisor today at 914-357-8444. Or, you can visit our website for more information here.
It wasn’t too long ago when the worst run companies thought they could escape their poor claims results by shutting down and starting another company to try an outrun their loss history and insurance past.
How about the construction company who thought they would be slick. They tell the insurance company they were carpenters instead of roofers to get the lower rate.
Unfortunately, as clever as companies trying to save a buck think they are, large insurance carriers are 100 times better run and always thinking three steps ahead. Insurance carriers are always on top of companies they are insuring. They are constantly investigating claims, asking for updates, and sending their own consultants,. This video can show you not how to get away with fraudulent claims but to show you how every single one of your “Ferris Buellers Day Off” schemes has already been dealt with 1,000 times with the same insurance carrier. Unlike your company, they deal with other companies every single day.
The game has changed folks. In this quick little video, we share the why and how. Being forewarned allows you to be prepared.
Still, have questions? You can contact one of our professional risk advisors right now at 914-357-8444. Or, you can visit our website here.
New York State developed the NY State Construction Industry Fair Play Act to reduce levels of employee misclassification and fraud; predominantly in the construction industry. NY State Dept of Labor discovered employers in both the transportation industry and construction were intentionally reporting employees as “independent contractors” to state and federal authorities or their workers’ compensation carriers in huge names. Further, there was a huge increase in employers who simply failed to report a high percentage of their employees.
Unfortunately, any business who “willfully” fails to properly classify an individual as an employee is subject to civil and criminal penalties up to $2,500 for the first violation per misclassified employee, up to $5,000 for each subsequent violation per misclassified employee within a 5 year period. In addition to civil penalties, the criminal penalties imposed on the business owner who willfully misclassifies will be a misdemeanor. Upon conviction, punishment for a first offense may $25,000 or imprisonment for up to 30 days. For subsequent offenses, a fine may reach up to $50,000 or imprisonment for up to 60 days.
Folks, there is a lot at stake here. Gone are the days where you can skirt the rules. Both the authorities and the “employees” have too much information. You work so hard to build a business. Short cuts only lead to dead ends.
If you really want to understand the nuance in the NY State Construction Industry Fair Play Act we suggest you download our E-Book by CLICKING HERE.
Still have questions? Still want more info? Contact a risk advisor today at 914-357-8444.
There are 3 questions every organization should put to each level within their organization to get a sense for how aligned they are as it relates to managing employee injuries, near misses and workers comp claims in general. Doing so will open up plenty of different conversation with your employees regarding their answers. Hence, why these questions must be asked. The more you understand may be a hard pill to swallow, but it usually allows for progress within the company and potentially will help lower claims and in turn, lower premiums.
When it comes to insurance claims and workers comp injuries, Mark Twain’s famous quote jumps to the fore:
” It’s not what we don’t know that hurts us…it’s what we think we absolutely know that kills us.”
Executives, HR reps, and senior management are almost always shocked when they poll the employees of their company and ask these 3 crucial questions. Though fairly straightforward, the answers they receive usually are not. The video will go through the questions, what you might expect, what the answer usually is, and how you deal with this new batch of information.
This brief video should give you some pause. We suggest you poll your own employees as soon as possible. You might be shocked at what you discover from their answers.
Do you have questions about any of the content in the video? Contact one of our professional risk advisors at 914-357-8444. Or, visit our website for more information here. We are always here to help.
A safe work environment starts with good systems and proactive, engaged leadership. Your safety programs success depends greatly on how much of these attributes you bring to the table. Accidents in the workplace are usually caused by lack of attention AND lack of supervision. Recently, the NYC Department of Buildings (DOB) assigned more responsibilities to construction superintendents as obligatory measures to increase the level of safety and security in the workplace. On November 6, 2017 statutes were implemented and referred to as Local Law 81.
Here’s what you need to know:
The criteria for jobs needing Site Safety Plans (SSP) and Superintendents consists of the following:
Excavation
Jobs with heightened risk to public & property
Alteration
Vertical & horizontal enlargement
New building construction or full demolition (not including 1-3 family homes)
Demo 50%+ floor area over 1 year
Underpinning
Does your project fit in one of these criteria?
Local Law 81 demands that superintendents and their responsibilities go beyond their normal work duties of overseeing the progress of work on the jobsite, scheduling the workforce and directing. The following are the added provisions:
Notifying the DOB and recording incidents in a daily log in the event of an accident to persons or adjoining properties.
Being the point person to notify the DOB immediately.
Assessing unsafe conditions and notifying those responsible for it. As well as ensuring the conditions are corrected and recording it in a daily log.
Being held responsible for all conditions in the building code such as working without permits, improperly constructed sidewalk sheds and standpipes, operating equipment without a license and other job site malfeasance.
Reporting to every job site daily for which they are responsible to sign a daily log
Ensuring work that complies with approved documents and maintaining a log of daily activities.
Having a competent person, as defined by OSHA on the job site to be present while doing work.
Are your construction superintendents in compliance with these new provisions? What happens when they don’t?
They are criminally prosecuted.
Stop work orders and delay projects
Disciplinary actions pursuant to the NYC Administrative Code
Violations and fines issued to up to $25,000.
Suspension and revocation of licenses or Certificate of Competence.
Construction superintendents are now vested with more responsibilities but what happens if the site conditions were already unsafe? The conditions will be inspected for code compliance, JHAs, daily logs, accident reporting, site safety drawings, equipment inspection checklists, inspection of orientation forms and safety training certifications and plan verification with matching field conditions. In addition, SSPs must be on the jobsite at all times and be made available to the DOB upon request.
In conjunction with Local Law 81, Local Law 196 implements new construction safety training.
Here’s what you can do (minimally) :
Supervisors and workers must complete one of the following:
OSHA 10-hour class; or
OSHA 30-hour class; or
A 100-hour training program approved by the Department of Buildings (DOB) (such as a training as an apprentice)
Permit holders must certify that workers had the required training and be able to prove the certifications if audited. For an untrained worker there is a $15,000 fine.
$5,000 for the owner
$5,000 for the permit holder
$5,000 for the employer
Failing to keep a log of trained workers face a $2,500 fine.
In addition, the DOB will make unannounced site checks, targeting sites where untrained workers have been found and other jobs of permit holders.
Creating a safe work environment and preventing workplace accidents/injuries should be a priority as much as doing the actual work. Should you have any questions your Metropolitan Risk Advisor is ready to help. Contact one HERE.
In addition to a number of site safety prerequisites regarding construction superintendents local law 204 necessitates pre-shift safety meetings for workers at construction sites.
A permit holder who requires a site safety manager, site safety coordinator and construction superintendent must have a safety meeting with workers who are on site and under a permit holder or by a performing subcontractor. It is imperative that this meeting takes place before the initiation of any construction or demolition work.
Hold the safety meeting under these following conditions:
Have a Competent Person Conduct the Pre-Shift Safety Meetings: When the permit holder designates this person, they must have a pre-shift safety meeting before the commencement of any construction or demolition work. The competent person must be able to communicate with each worker at the meeting.
Click Here to Read More About Competent Workers.
2. The Pre-Shift Meeting Content: The meeting covers a review of the activities and duties to accomplish during the shift, along with detailed information regarding the safety and risks associated with specific tasks.
3. Records: The permit holder must maintain a record for each worker and meetings must be held once a week. The records must include the following:
The name, title and company associated to each worker who has participated.
The name, title and company association of the competent person who held the meeting along with their signature.
The date and time of the meeting.
This law has taken effect as of May 16th, 2018. The commissioner of buildings may take certain measures such as promoting rules to ensure the implementation of the law.
Stay ahead of the curve and speak with one of our risk advisors today!
You’re probably looking online for an answer on “How to Spot Workers Compensation Claims”. Well, it’s probably the most often repeated refrain when we speak to folks whose companies are suffering under the high cost of employee injuries. They feel victimized by the system, mistreated by morally challenged employees, wronged by the insurance carriers who re-enforce the false perception that there is nothing they can do. Here’s the good news that perception is not only false but can be a huge competitive advantage for you.
It’s a competitive advantage because while your competition is playing the woe is me fiddle finger ; you put forth processes and protocols that won’t eliminate fraud, but will make you much less of a target in the future sending a strong message to the rest of your employees that you take employee injuries very seriously as long as they are legit. If they are not established, it may be considered fraud by the insurance carrier, which is a felony.
The tenor of this article is not to teach you how to build systems that lower the probability of fraud, that will come later another publication or posting. We want to help you identify the red flags that may show you might be getting deceived.
Here are six red flags of a possible and potentially fraudulent workers compensation claim.
Most workers compensation claims are reported Monday morning. The reason is that the injury potentially took place over the weekend. Maybe in a softball game, maybe doing yard work. Quite often these employee lack health insurance which is why they might use the workers comp system to obtain medical treatment. If your employee reports an injury first thing Monday morning, look for some of these other signs.
The injured individual refuses diagnostic procedures like an X-ray or MRI. This might be because they really don’t want the answer. If they are truly hurt, they would want the test done to receive the correct diagnosis and treatment to get back to being functional. Let the employee know there is no cost for the test so you take money out of the equation. If they still refuse recommended diagnostic tests in poker we call that a “tell”.
You can’t grasp a clear idea of what actually happened from those involved. Lack of clarity, conflicting stories should give you pause. Separate the injured employee from the witnesses and perhaps call in a professional to execute the accident investigation.
You’ve heard gossip about the employee’s injury. Careful with this as there could be different motivations in play. All this does is confirm that you need to take a deeper dive into the claim.
There are no witnesses to the injury event.
The claim is reported more than seven days after the injury occurred. This in of itself is not a red flag as most companies don’t have a solid on-boarding process whereby the employee knows when to report an incident or injury.
One of these flags is not a conclusive way to determine a workers compensation claim is false. But if there are three or more, it’s an indication to take a closer look through a really good accident investigation process. At Metropolitan Risk we have several tools available to our clients like our Digital Surveillance Pak which is a robust tool that tracks the employee on both the internet and the streets from our partners desktop.
Before re-affirming and acting upon your suspicions on a false workers compensation claim, consider these statistics and factors.
According to the Safety and Health magazine, newer employees are more susceptible to injury due to lack of their experience. Take into account the employee’s age and sufficiency in job training when judging the validity of the workers comp claim.
Experts in the industry estimate that only 1-2% of workers compensation claims are false. When you use this as a reference you only have a maximum 2% justification on your assumptions.
It takes a lot of effort and finances to train a new employee on safety and compliance.
When an employee submits a false workers compensation claim, there are crucial steps to take to protect your business. Upon uncovering a false claim, the employer must report their findings to their claims adjuster.
The issue is: employees stay out too long on workers compensation which could be considered border line fraud.We think there is a bigger opportunity there.
If you’ve noticed multiple red flags and continuously doubted the validity of the claims, give us a call at 914.357.8444. or request a free consultation with one of our RISK ADVISORS.
