Archive by Author | Jim Kinmartin - Business Insurance & Risk Management Broker

Workers Compensation Insurance For Doctors

For all outpatient physician practices and clinics including physical therapists, acupuncturists, chiropractors, dialysis, x-ray laboratory services; and blood, body fluid, and tissue collection and testing.

We have a quality Workers Compensation insurance carrier applying major credits off the 8834 physicians class code. I haven’t found another carrier who can compete with them in this market.

I found this to be true for two of my clients in the past month as we marketed their workers’ compensation insurance policy renewals.

If you know of a doctor who is interested in us exploring this option on their behalf, please share this message. Now is a good time to start looking ahead at 2019 as you’re reviewing operational expenses and budgets.

-JK

Own A Vacant Commercial Building? Beware

If you own a vacant commercial property like a retail shopping center, office building, industrial building, etc., be really careful when it comes to your property insurance. There are limitations with coverage.

By definition, a building is considered vacant unless at least 31% of its total square footage is rented to a lessee or sub-lessee and used by the lessee or sub-lessee to conduct its customary operations.

Typically, insurance carriers will not pay for any loss or damage caused by any of the following, even if they are Covered Causes of Loss if the building where loss or damage occurs has been “vacant” for more than 60 consecutive days before that loss or damage occurs:

  1. Vandalism;
  2. Sprinkler Leakage, unless you have protected the system against freezing;
  3. Building glass breakage;
  4. Discharge or leakage of water;
  5. Theft; or
  6. Attempted theft

With respect to Covered Causes of Loss other than those listed in Paragraphs (1) through (6) above, an insurance carrier will reduce the amount they would otherwise pay for the loss or damage by 15%.

If you own a commercial building which is currently vacant, or if you know you will be losing a tenant soon, the first thing you should do is contact your insurance broker to see what options are available before you secure a new tenant.

-JK

Professional Liability vs General Liability Insurance For Technology, Computer & IT Services

I’m working on an insurance policy renewal for a Technology, Computer & IT Services based small business. This is for their Professional Liability / Errors & Omissions insurance coverage.

The insured wants to know the advantages of keeping this E&O insurance policy and the coverage differences compared to General Liability insurance.

Here’s a nice two-minute explanation from The Hartford to address this exact question:

If you ask me, all Technology, Computer and/or IT Services based businesses should carry both professional liability (E&O) and General Liability to protect their risk exposures, without question.

Your clients can sue you for a wrongful act in providing professional services, which can be the result of an act, error or omission; very often, it is not the result of a mistake, but rather displeasure with the outcome, and even frivolous lawsuits will incur defense costs

The best part is that both coverages can often be packaged into a single policy together.

-JK

Construction Material Cost Continues To Increase. What Does This Mean For My Commercial Building?

Construction material costs increased by 7.4% in September compared to the same month in 2017, according to an Associated General Contractors of America (AGC) analysis of U.S. Labor Department data. In the past year, tariffs have caused producer price index increases of 29.3% for diesel fuel, 22.1% for steel pipe and tubing and 11.7% for fabricated structural metal, among other cost increases. Over the past year, contractors increased their construction fees for nonresidential properties by 3.5%, which indicates firms are absorbing increased costs, according to the report. Additionally, 80% of respondents to an AGC August survey reported difficulty filling hourly worker positions, resulting in 62% of firms paying higher salaries to attract and retain workers.

What does this mean for my Commercial Building Insurance policy? 

If you own a commercial building, whether it be an apartment, industrial, office, or retail building, you should pay close attention to the Building insurance limit you have on the policy.

Perhaps you secured a policy years ago and haven’t looked at it in a long time. Or, have no idea how much you should be insuring your building for in the event of a fire, or earthquake.

Our economy is cranking right now. Contractors have more jobs than they know what to do with. Their employees are in high demand and they need to pay high salaries to keep their talent. More demand equals higher costs.

This isn’t 2009 when contractors were begging for work and you could basically name a price when hiring them for a job. They are busy and selective on which jobs they choose in today’s economy.

From what we’re hearing from Southern California based general contractors right now, their costs for material and labor are at least $300-$400 per square foot to build. So if you have a 20,000 square foot commercial building, you should probably be insuring that for at least $6M Replacement Cost value (20,000 x $300 per sq/ ft).

My suggestion is that you dig up your commercial building insurance policy and check what limits of insurance you have for the building coverage. If you’re severely underinsured, call your commercial insurance agent/broker and ask them what it would cost to endorse your policy with the limits suggested above. You’ll be happy you did if you suffer a loss in the coming day/week/month/year.

-JCK

Small Businesses Are Opening Faster Than They Are Closing

Yesterday, the Small Business Administration (SBA) Office of Advocacy published a fact sheet by research economist Daniel Wilmoth that indicates more small businesses are opening than closing. In 2017, the number of businesses in the U.S. increased by about 118,000 with various levels of growth depending on the region. In all, 975,000 new businesses had opened by the end of 2017. The number of businesses that closed fell from 859,000 in 2016 to 857,000 in 2017. Business openings have exceeded business closings for 28 consecutive quarters, Wilmoth noted. California accounts for nearly one-third of the net increase of businesses in 2017, with 38,000.

Source: Long Beach Business Journal

-JK

Risking It All

Almost one-third of small and midsize business owners have no business insurance whatsoever according to InsuranceBee.

When the company recently researched 1,000 U.S. business owners to find out how well-equipped they are to mitigate risk, it found that of the respondents without an insurance policy, 47% are sole proprietors and more than half have a gross revenue of less than $50,000 a year.

Meanwhile, 43% of sole practitioners do not consider themselves to be risk-takers. When asked why they have no insurance policy, responses included “I don’t need insurance because my business operates in an ethical manner,” and “I can take care of problems myself.”

Other than insurance, 27% of business owners claim to have put money aside to help mitigate risk, while 18% say they have contracts and procedures in place.

Source: InsuranceBee; iamagazine.com

-JK

Summer Dress Code For The Workplace

Summer is in full effect and it’s been hot and muggy in So Cal. Another heat wave is on the horizon this week. We spend our summer weekends at the pool and the beach and when it’s 90+ degrees outside, the last thing we want to do is slip into our wool suits or heavy dress clothing when we go to work. As an employer, how do you treat the dress code standards at your workplace? Do you have a dress code?

Click here to read the California Chamber of Commerce Human Resources Department’s thoughts on the subject that employers should consider – especially during these hot summer days.

-JK

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