Being prepared with the right home health care insurance will help you develop a strong system in your company. It’s important to have a tight process so everything is clear and understood. When opening your own home healthcare agency there are many opportunities for risk. As an employer, you take on the extra risk of being unable to supervise your employees.
Workers comp insurance
Workers‘ compensation is insurance that provides benefits and medical care for workers who are injured or become ill as a result of their job. Many caregivers could end up in a situation trying to care for somebody but becoming injured. This makes it an important asset to have.
Disability insurance
This insures the beneficiary’s earned income against the risk that a disability creates a barrier for a worker to complete the core functions of their work. People are 3 times more likely to become disabled than die before the age of 65- so it makes sense to consider this type of insurance.
Professional Liability Insurance
This is liability insurance which helps protect service-providing individuals and companies. This protects them against financial losses from lawsuits filed against them by their clients. Even the best healthcare providers can come into contact with a dissatisfied client
General Liability Insurance
This covers any instance of lawsuits and injury damages. With this in mind, there’s a lot of things that General Liability insurance doesn’t cover. Damage to your property, Employee injuries, Employment disputes, Damage to your vehicle’s, and professional mistakes.
These 4 options are something that one should consider for home health care insurance. Preparedness and awareness are also the best things you can do for your company. Still need help? For more informationbook a 5-minute call with a risk advisoror call 914-357-8444.
Ordering a pizza, listening to music, getting a mortgage. All are examples of normal activities that have adapted with the emergence of computers. It is no wonder that insurance has also taken part in this advancement into the new era. However, this new, innovative idea that combines insurance with computers holds a name that the average person may find overwhelming and hard to understand: cyber insurance. On the surface, cyber insurance is very similar to most other insurance. Carriers take on your risk for a price in order to limit your losses in a case regarding cyberspace. However, since this is new, there are a lot of questions about coverage and how to purchase a plan.
Cyber Policies
Cyber attacks can cripple a company as so much of a business is done through computers these days. For that reason, it is imperative that companies become acquainted with cyber insurance, as it will cover against these devastating hits. Cyber insurance mitigates the risk involved with doing online business which allows for companies to take part in a new growth area while still being protected against the heightened risks involved with doing business online. It is also important to understand what each policy covers as there are some pretty complex rules that carriers follow when determining their exposure to certain events.
With a whole new category of insurance in place, it is important for businesses to understand what exactly is incorporated into their cost of insurance premiums, so they can take the resulting steps to reduce these costs as much as possible. A few factors that affect a cyber insurance premium are annual revenue, industry, and network security. So although cyber insurance will be an additional cost incurred for a company, there are ways to reduce this cost while still reaping the benefits of diminished risk surrounding cyberspace. Even with this additional cost, it still makes sense to take advantage of this new insurance. Hacking can disrupt business dramatically while causing costs to skyrockets and the company’s reputation to plummet.
FAQs
What needs to be covered?
It is important to understand what the biggest risk areas are. After determining the largest risk areas based on potential reputation damage, restoration costs, and reimbursement from regulatory fines, it would be logical to cover as much as possible starting with the largest risk areas.
What are the different types of cyber liability insurance?
Cyber liability insurance falls into two main categories: first-party and third-party. First-party insurance covers the holder’s direct losses from cyberattacks while third-party insurance covers companies that allowed a client network to experience a data breach. Some things that first-party insurance would cover include data theft, compensation for lost income, costs of notifying customers, and the cost of repairing a company’s reputation. An example of third-party coverage would be the following. A company made a website for another company and hacker took over the website. The creating company might receive legal fees and compensation for settlements or damages in court cases.
Exclusions of cyber incidents from coverage?
There are a few issues that most providers don’t include in coverage. Some of these include cyber issues resulting from failure to maintain a minimum level of cybersecurity, the careless mishandling of sensitive information, and malicious acts by employees. All of these examples should be avoidable through careful management and decision making.
In the case that it’s the company’s fault, do insurers still pay?
The short answer is that it depends on the situation and policy. Depending on what the coverage agreement is, insurers may still cover issues that are the company’s fault.
How long does a company have to report the breach?
Insurance companies like for companies to report the breach when practical. They understand it might take time as a company’s first priority may be to fix the problem. They also know they may need to provide clarity to all affected. However, the insurance company might become concerned if the issue is reported a long time after it is discovered as that might come off as fishy and affect the settlement deal.
Pricing of cyber insurance?
The main factor in pricing cyber insurance is the company’s annual revenue, as more revenue correlates to higher risk exposure. In addition to revenue, insurance companies also look at industry type. It is important how much network security there is in order to price insurance premiums.
For more information book time with Risk Advisorsor call 914-357-8444
Commercial Insurance is one of those things that every company has but not every company understands. In some cases, a person is chosen to be put in charge of the insurance buying process and this person is usually an HR person who has a very little understanding of what goes into the insurance buying process.
To recap the video, commercial insurance is essentially when a person, business, or group of people transfer a risk that could cost money in damages to an insurance carrier. To transfer the risk, the business will pay a flat fee – a premium – that changes in cost every year based on the previous year’s claims. There are also difference types of insurance as well, including workers compensation for worker injuries on the job. There is also auto liability, general liability, property damages, and others.
The one part of insurance many do not understand is: Why do carriers agree to this? The damages may be 10x the insurance premium. It turns out that out of the hundreds of millions of premium policies carriers write every year, they will lose money on only a very small fraction of them. When insureds (those buying insurance) pool their risk into a small group of carriers, many of them pay for a premium. However, much of the time it turns out that their were no damages or claims to need compensation. That does not mean they should not pay for insurance the next year. Insurance is for the protection against the unpredictable. A driver with a perfectly clean record can skid on ice one day. Those damages can cost tens of thousands of dollars.
Learn about the different types of commercial insurance and the role it plays inside of your business. This is just a starting point to learn some of the basics of commercial insurance.
Still have questions? Call one of our risk advisors today at 914-357-8444. Or, visit our website here.
Did you know that MOST workers comp challenges originate from the moment you send that offer of employment letter out?
If you didn’t, you are not alone. When you hire a new employee, you inherit their ENTIRE medical history! Your competition has turned this hiring process into their competitive advantage over you. Learn what tools you have to insulate yourself from your next Workers Comp claim and ensure you’re hiring folks that YOU KNOW can do the job…
This video takes you through the hiring process, the laws, regulations, and other small but important facets of hiring employees you may have not known before. Then, we’ll tell you how you can deal with these issues. Obviously, hiring a professionally trained team to teach, inform, and place different safety mechanisms within your hiring system is costly but the best option available. Metropolitan Risk is one of those teams. We deal with these issues on a standard basis, as it is one of our main points of business with small companies.
If you have questions about how to prevent hiring your next workers comp claim, you can contact one of our professional risk advisors at 914-357-8444. Or, you can click here to visit our website with more information and blogs.
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.
Employees are the principal foundation of all companies. It is important to realize that there are many different types of employees and the ones you choose to hire will significantly impact how well your business is run. In other words, hiring motivated and well-rounded individuals will reduce expenses, and hiring incompetent ones will cost your company numerous losses. At Metropolitan risk, we never stop thinking about your issues and looking for ways to improve your bottom line. In our research we have found that effectively managing your HR practices can successfully achieve this. Yes, quantifying the mechanics of HR practices can seem vague at times, which is part of the reason many executives do not have a full understanding of the actual costs. However, to help clarify this situation, we have provided abasic quantitative guide that will make you more aware of your HR expenditures, and save you both time and capital.
Although employees should always be treated with respect, as an executive it is also important to view them in terms of their productivity. There is no denying that there are disparities in proportional productivity and salary for various employees. For example, an employee getting paid $60,000 and generating $100,000 per year for a company is much more valuable than an employee guaranteed $50,000 who is fired after one month on the job. If you ignore losses that result from HR practices, such as the $50,000 loss in the latter example, they can accumulate and put your business at risk. Contrarily, if you recognize the costs of your HR practices and identify where there is room for improvement, your business will experience multiple financial growth opportunities.
Along with creating a great workplace environment, in order to ensure a high number of motivated and productive workers, you must also invest additional funds in to lowering the costs of your HR practices. Good employees want to work for companies that hire capable coworkers and that are proactive in taking advantage of opportunities to make profits. Here are some questions you might want to consider when thinking of the best ways to invest in lowering your HR costs:
How much are you willing to invest to keep good employees working for your company (incentives, promotions etc.)?
How much cost are you willing to incur to keep poor employees?
How much are you willing to spend to maintain an HR management system to track performance improvement for employees?
How much are you willing to invest to drive down employee claims?
How much are you willing to invest to drive down your workers’ comp experience mod?
Although at first, it might not seem enticing to spend additional funds, in the long run, your business will experience significant gains due to an overall improvement in the management of your finances. Think of it as investing in long-term security with a permanently positive ROI.
Employee payroll is the third highest expense for companies in the United States(the first for small businesses). You want to make sure that you are making effective use of this cost and not wasting money on unproductive resources. If you feel that your company can use help in this financial area, please click here to get your free HR Expenditure Guide and get in touch with a Risk Advisor.
I read somewhere that a smart person learns from their mistakes while a wise person learns from the mistakes of others. In the spirit of this musing I offer up a recent experience of an electrical subcontracting firm, a large CCIP (Contractor Controlled Insurance Program) and their respective insurance companies; shared to me by a close friend.Knowing the additional insured status for an un enrolled sub on a CCIP Or OCIP can be worth millions in the event of a significant liability insurance claim. It’s a hugely important lesson if you work on or utilize CCIP’s and OCIP’s. There is a lot to unpack here so stay with me. To protect the various parties I will not use their names or identities. What’s important is what occurred and how you might avoid it.
In the spring of 2017, a CCIP was finishing the final touches of a large residential project in NYC. As they were nearing the moment when they could apply for a TCO (Temporary Certificate of Occupancy) a rash of labor law claims (3) occurred in a span of several weeks. Apparently, at the end of these large projects workers have a tendency to get “injured”. The most expensive of these types of injuries are labor law claims where negligence standards don’t apply. Instead strict liability against the owner and general contractor rule the day. According to Howard Klar of Gallo , Vitucci and Klar, the average settlement for these types of claims in NY are in excess of $800,000. We won’t get into the how disruptive the Scaffold Law is to New York taxpayers, real estate owners, and contractors as that is ripe for at least seven other blog article rants.
As this was a CCIP program ( Contractor Controlled Insurance Program) all of the subcontractors were “enrolled” except demolition companies. As part of the enrollement in the CCIP / OCIP the liability and workers compensation coverage are provided to the enrolled subcontractors. One of the exceptions to the enrollment was this electrical contractor we will fictitiously name as “ABC ACME Electrical”. Their EMR (experience modification rate) for the their worker’s compensation was exceedingly high. This meant that they had a high employee injury rate; thus the insurance carriers and general contractor stipulated that if they wanted to work on this construction project they would have to use their own liability * workers compensation insurance. Due to their high EMR, they would not be permitted to enroll in the CCIP program. Hint ; this was the first mistake the electrical contractor made by accepting those terms. There is an inherent bias against ABC ACME on this project them with respect to future claims since any losses that could be asserted against them will be. This will manifest itself later.
Flash forward toward the end of the project. These (3) labor law claims “mysteriously” occur in the final weeks. The CCIP Administrator rather then have them defended and funded inside the WRAP program, as per usual, someone figures out that if they can discern a way to pull in the electrical sub, they might be able to hand some of the claims downstream to this “unenrolled” electrical subcontractor and have their insurance company defend and fund the claims. Ultimately the lawsuit suits insert into their pleadings the proximate cause of loss for the injured workers was due to poor lighting, which is why the workers “fell”. Wa La…. someone was feeling good about themselves with that little piece of hazard engineering…
So we have a CCIP in place, an unenrolled subcontractor, 3 labor law claims and a lot of money at stake. Remember for those keeping score at home these CCIP and OCIP programs are funded by the general contractors and owners for the first million dollars plus for EACH claim. The financial exposure from these 3 claims could have been significant to the owner and the GC as it would be their money first, unless of course, they can drag someone else in with them to share the burden; which is what occurred. The CCIP administrator filed claims against the electrical contracting firm on behalf of the owner and the GCgc asserting, among other reasons, the proximate cause of the losses were due to poor lighting which the electrical contractor installed.
If you lasted this long in our story you will be handsomely rewarded as here is where it gets interesting. The befuddled electrical contractor puts his insurance carrier on notice of these claims. Let’s call them “Stupid Mutual”, yes I know the real carriers name, this blog ain’t WIKI LEAKS.
“Stupid Mutual” sends out a “Reservation of Rights” letter which essentially provides defense for the 3 claims but does not commit to paying the judgment if their client is deemed negligent. If you’re the person paying all that insurance premium to your construction liability carrier you love getting these ( copious amounts of sarcasm).
What really hurt the electrical contractor was that now “Stupid Mutual” sent the reservation of rights letters out; they boosted the liability reserves on this poor contractor’s policy to north of 3 million dollars. This is the dollar amount an insurance company sets aside to fund these particular claims just in case. It doesn’t mean they will pay that amount, just that in a worst case scenario this could ultimately be the payout which is how reserves are set.
The net effect on these huge reserve set-asides is that it affects the loss history balances for this electrical contractor. Understand that when your construction insurance account is up for renewal the carriers look at your 5 -year loss history to determine where to set renewal premiums. Thus you don’t have to be a quant to understand what a $ 3 million loss reserve will do to this construction companies construction liability insurance renewal.
As a side, “Stupid Mutual”, years ago, made a decision to bring a lot of their NY Construction & Labor Law litigation in-house. I remember arguing against that strategy as the NY Labor Law is very dynamic, fluid and nuanced. By having attorneys cloistered in some office in the midwest having no idea about NY or NYC would be a recipe for failure.
Instead of understanding that case law had been recently established, setting the stage for how additional insured status can and would be granted for an unenrolled subcontractor in an OCCIP / CCIP program, they picked up coverage through their reservation of rights when they should not have.
What I will say is that “Stupid Mutual” should have known this recent case law. If they used local attorneys who specialize in this type of litigation they would have saved themselves and their customer millions; alas.
Now; this electrical contractor has several million dollars of claims reserves on their loss history that should never have been there. Their insurance renewal went up north of 300 % PER YEAR, which is very difficult to absorb as their contract revenue is already set and can’t be adjusted. Requisitions aren’t going to get you there. We wrote a whole article on just how important this insurance renewal re-set is to any construction company in WHY NY CONSTRUCTION INSURANCE MAY BE TOXIC TO YOUR PROFITS.
In short, this was and currently is a big mess for all parties involved. We know the details of this mess because news travels fast in a very small circle of brokers and risk managers that practice the craft of NY Construction Insurance.
As of this writing, nothing has been resolved. Everyone here lost. The CCIP WRAP GC should have been on top of the site to prevent this event from starting in the first place, the electrical contractor who needed to have their eyes wide open knowing their lack of enrollment set them up for this type of scenario,‘Stupid Mutual” for not having the best NY Labor Law attorney’s on top of their claims . Had they had the right law firms handling the case instead of bringing most of their claims handlings in-house; they would have been on top of it.
If you got this far in the article then you are indeed a wise person who learns from the mistakes of others. Be sure you have a really good team of professionals around you who can really parse these details on the front end. If you’re a NY based construction firm spending far too much on insurance; how you prevent and manage your claims makes all the difference in how profitable and how competitive your unit cost structure is as you seek to grab market share. If you need help building your team, contact a Risk Advisor. We have it all built already, plug and play.
Fall protection and safety is a major concern at construction sites. In fact, OSHA cites injuries from falls as one of its top 10 worksite injuries and a huge driver of insurance costs in states like NY which have laws that specifically address falls from a height.
Falls and falling objects result from unstable working surfaces, ladders not safely positioned and misuse of fall protection. Workers are also subject to falls or the dangers of falling objects if you can not maintain proper protection of sides, edges, floor holes and wall openings. Any time you are working at a height of six feet or more on the construction site, you must be protected.
What is “Ladders Last”?
“Ladders Last” is a program that will save lives. The idea is based on prevention rather than protection. Accomplish this by identifying other means of access and/or elevated work platforms that protect workers and support safe production, rather than defaulting to the choice of a ladder.
We Suggest :
Identifying other means of access and or elevated work platforms that better protect workers and support safe production. Devices like scissor lifts, podium ladders, bakers racks or mobile mechanical hydraulic lifts should be your first option.
Ladders will be used on construction projects only after it has been determined that there is no other feasible method to perform the elevated work.
All ladder work will be permitted but will require sign off by your Superintendent or your Safety Manager.
Subcontractors shall complete a Construction Ladder Use Permit and have it reviewed and approved by the Superintendent or Safety Manager.
While working on/from the ladder, 3 points of contact must be maintained at all times. If you can not maintain 3 points, utilize 100% tie off when above a 4’ working height.
Lanyards will not be acceptable fall protection while working from a ladder. The only acceptable personal fall arrest system used when working from a ladder is retractable.
Job Built Ladders will only be allowed with approval of the Site Superintendent and Project’s Safety Manager on a case by case basis.
Extension ladders when Permitted must have walk through extensions.
Platform Ladders should be the ladder of choice on your construction projects when a ladder has been approved.
We also suggest using A Frame ladders when ladders must be used as another potential alternative.
Daily Ladder Inspection Tag with sign off by user will be attached to each ladder.
Lastly it’s important that the ladders last program be inserted into your OSHA Site Safety Manual which should be your go to safety document.
Ladder Permits (Please Provide) :
Mandatory Engagement (Superintendent / Safety Manager Project Team inspection of use & sign off)
Elevated documented oversight
Correct ladder size and set-up
Training documentation for use
National Statistics
A new study from the Centers for Disease Control and Prevention found that falls remain a leading cause of death and nearly half of those deadly falls have been from ladders.
Approximately 20% of fall injuries involve ladders. Among construction workers an estimated 81% of fall injuries treated in emergency rooms involve ladders.
Over the last 10 years the amount of ladder-related injuries has increased 50%
The construction industry has the highest Ladder Fall Injuries (LFI) rate compared to other industries
Ladder Fall Injuries (LFI) increase with age
Companies with the fewest employees have the highest fatality rates
Head injuries wereimplicated in about half of the fatal injuries
More than 90,000 people receive emergency room treatment from ladder-related injuries every year.
WHY
Constant misuse
Failure to use ladders correctly
Failure to inspect
Failure to train employees
If you like the concept and want to pursue building your own ladders last program we suggest you start by downloading our FREE GUIDE HERE. Any questions contact one of our Risk Advisors today at (914) 357-8451.
Why Ladder Safety Is Important To Controlling NY Construction Liability Costs
Falls from elevated surfaces are frequently listed as one of the top 10 causes of accidents in the workplace. Most of these accidents occur due to failure to follow basic ladder safety. In New York a fall from a height may trigger Labor Law 240 or Labor Law 241 also know as the scaffold law. According to Howard Klar partner at Gallo Vitucci & Klar the average award for a labor law case is over 7 figures. When your insurance company gets punched in the face with a labor law claim; you need to know they are going to turn around and punch your companies insurance renewals hard, for 5 years! That is why at Metropolitan Risk we suggest building out a ladders last program. When ladders are an absolute must on a job site then implement these tips if you want to control your NY construction liability costs.
Below we highlight some basic ladder safety tips. If you want a copy of our Ladders Last Program Pack CLICK HERE. It includes as how to guide and hand outs for your line labor staff for tool box talks and safety training.
Setting up Safely
Make sure you select the correct ladder for the job—check the length and duty rating. Proper length is a minimum of three feet extending over the roofline or working surface.
Inspect your ladder before each use for loose or damaged:
Ladders Last
Steps
Rungs
Spreaders
Rung dogs
Safety feet
Other parts
Clear the area where you will be working. Never place a ladder in front of a door that isn’t locked, blocked or guarded.
Because metal ladders conduct electricity, use a wooden or fiberglass ladder near powerlines or electrical equipment.
Check that all locks on extension ladders are properly engaged before placing your ladder on a steady surface. The ground underneath the ladder should be level and firm. Large, flat wooden boards braced underneath a ladder can help level it on an uneven surface or soft ground. Straight, single or extension ladders should be set up at approximately a 75 degree angle.
Use the 1:4 ratio to ensure your safety when on a ladder. Place the base of the ladder one foot away from whatever it’s leaning against for every four feet of height up to the point of contact for the top of the ladder.
Use Caution When Using Your Ladder:
Always exercise caution when using a ladder and do not use a ladder for any other purpose than intended. Too often we see ladders being used as make shift scaffold or bridges. Really bad idea. Spend the extra money and rent the proper equipment for a day. It will be far cheaper in the long run.
Other safety considerations include:
Make sure the weight that your ladder is supporting does not exceed its maximum load rating (user plus materials). And only one person should be on a ladder at a time.
Keep your body centered between the rails of the ladder at all times. Do not lean too far to the side while working. Never overreach. Instead, descend from the ladder and move it to a better position.
Do not step on the top step, bucket shelf, or attempt to climb or stand on the rear section of a stepladder.
Always face the ladder when climbing up or down. Never leave a raised ladder unattended.
Slowly step down from a ladder if you feel dizzy or tired.
Non-slip footwear should be worn at all times when on a ladder.
By minimizing ladder accidents by adhering to these safety and prevention tips you will prevent having a large NY construction insurance liability claim. If you have further questions or concerns download our Ladders Last Program Pack or contact Metropolitan Risk Advisory at (914) 357-8444 today!
