Tag Archive | business insurance
January 25, 2011  

Workers Compensation Insurance – Independent Contractor vs. Employee

The difference between independent contractors and employees is a common debate within the insurance world. I wrote another post about it back in August, but the question continually arises, so it’s worth reinforcing. Determining which is which, employee vs. independent contractor is all fun and games until someone gets hurt. As an employer, think about the following points from the California State Compensation Insurance Fund before trying to dance around paying workers compensation insurance premiums.

Employees vs. Independent Contractors is a common debate for contractors and Work Comp insurance

California courts typically use a number of tests to determine whether an individual is an employee or an independent contractor. A crucial factor in determining employment status is the employer’s right to direct and control the work being performed. If you have the right to control the manner and means of the work performed, the courts have routinely decided that the “independent contractor” is actually your “employee”.

There are many other factors, but the reality is there is no definitive test to determine employee or an independent contractor. The following circumstances can help determine the relationship between the two. Among them, whether the person performing the service:

  • Has the right to terminate the relationship at will.
  • Is engaged in a distinct occupation or business.
  • Has voluntarily chosen the burdens and benefits of self-employment.
  • Has the skill required in the particular occupation.
  • Supplies the instrumentalities, tools, the work location, and carries the license or certificate required to perform the work.
  • Has the right to hire and terminate others.
  • Is paid by the time worked, or by piece rate.
  • Works under the direction of the employer or by a specialist without supervision.
  • Whether the services are a part of the regular business of the employer.
  • Whether the parties believe that they are creating the relationship of employer/employee or employer/independent contractor.

If there are questions, the Labor Code assumes a worker is an employee for workers’ compensation purposes. The burden of proof to support the independent contractor status of a worker falls on the employer. The Labor Code also requires that any subcontractor who does not have an active valid contractor’s license be treated as an employee, not an independent contractor. However, even though a worker may have a valid license, the worker may still be an employee depending on the factors as discussed above.

A good rule of thumb: as an employer, always protect yourself.

  • If certain jobs require a license, request a copy for your records.
  • Obtain original Certificates of Workers’ Compensation Insurance addressed to you from all contractors and subcontractors who have employees or who, in turn, subcontract any portion of their own work.

Remember, it’s all fun and games until someone gets hurt. If proper documentation is not maintained and presented to insurance auditors, carriers are obligated to charge premium for any liability that may exist under your workers’ compensation insurance policy.

–JK

January 20, 2011  

Fired ESPN Announcer Strikes Back With Lawsuit

Ron Franklin

Former ESPN announcer Ron Franklin, who was recently fired for allegedly making sexist comments to a sideline reporter before the Chick Fil-A Bowl, is suing ESPN for wrongful termination.

He confirmed the lawsuit on Wednesday but did not comment on the details of the lawsuit.

Franklin allegedly said to the sideline reporter, “Listen to me sweet baby, let me tell you something.” After the reporter told him not to talk to her like that, Franklin responded, “OK, then listen to me a-hole.”

Franklin later apologized in a statement. The longtime college football and basketball announcer worked for ESPN for 25 years.

What’s the moral of the story?

Employment Practices Liability claims such as this are not limited to major corporations such as ESPN. In today’s litigious climate, employers of all sizes are vulnerable. According to U.S. Equal Employment Opportunity Commission (EEOC) data, 41% of all EPL claims are brought against small employers with 15 to 100 employees. This is why any business with employees, or those which begin to hire employees must consider Employment Practices Liability Insurance (EPLI).

Employment Practices Liability insurance insures against claims of wrongful termination, failure to hire, failure to promote, various types of discrimination, as well as sexual harassment.

These insurance policies will reimburse your company against the costs of defending a lawsuit in court. They will also compensate for judgments and settlements. It doesn’t matter whether your company wins or loses the suit. Policies typically do not pay for punitive damages or civil or criminal fines, however.

One more benefit of these policies is that most include risk management services. Employment Practices Liability Insurance policies will typically offer an unlimited phone hotline service, online training, and state and federal compliance assistance from licensed attorneys.

If you are a business owner and are interested in more information on Employment Practices Liability Insurance, you can reach us here and we’ll be sure to follow-up with you:

← Back

Thank you for your response. ✨





Thank you,

–JK

January 18, 2011  

Earthquake Safety – Prepare Your Workplace

For you Californians out there, according to the US Geological Survey, there is a 60% chance that a 6.7 magnitude or greater earthquake will occur in California in the next 30 years.  I’ve been hearing that since elementary school so I don’t know how much longer we have if this is true. An earthquake of this size can can severely strain public services and disrupt business operations. The best way to survive an earthquake is to prepare before a big one hits. Here are some earthquake safety recommendations to consider for general guidance purposes.

Prepare your workplace for an earthquake

  • Large equipment such as boilers, tanks, and machines need to be secured properly so they will not fall over in an earthquake.
  • Furniture such as bookshelves and file cabinets along with storage racks and shelving should be strapped or attached to the wall to keep it stable and upright.
  • Survey your workspace to make sure that heavy items are stored at lower heights or secured so they won’t fall.
  • Photos and pictures should be hung onto the wall with screws or earthquake “j” clips.
  • Keep doors, exits, and aisle ways clear at all times for quick evacuations.
  • Keep areas under desks and tables uncluttered to make room to take cover in an earthquake.
  • Store chemicals properly and in compatible groups.

Gather emergency supplies for the workplace

  • Fire extinguishers should be charged and inspected monthly so they are always ready to use.
  • Periodically test fire alarms, sprinklers, and emergency lighting.
  • Keep flashlights, a radio, extra batteries, and a first aid kit on hand at all times.
  • Consider stockpiling food, water, blankets, and sanitary supplies such as toilet paper and portable toilets.
  • Keep enough supplies for the number of workers that may need to shelter or work at your facility after an earthquake.
  • Prepare personal emergency supplies for your desk and your car, including comfortable clothes and shoes, a flashlight and batteries, first aid kit, food, water, and necessary medications.

Make an emergency plan at work and at home

  • Businesses must have an emergency evacuation plan that details how employees will evacuate from the building, where they will meet, how to account for everyone, and how to get further instructions to act.
  • Current emergency contact phone numbers for all employees and management are critical in an emergency.
  • Businesses should also list and prioritize their functions in a Business Continuity Plan (BCP) that ensures access to the people, materials, and other supplies needed to continue work after an earthquake.
  • Workers should have family emergency plans in place at home in case they are stranded at work or required to work after an earthquake.
  • Keep enough emergency supplies on hand to maintain your family for at least 3 days.
  • Make lists of emergency contact phone numbers and determine a meeting place for the family after an emergency.

Practice and train on your emergency procedures

  • Practice emergency evacuations.
  • Get training on first aid and CPR techniques.
  • Train and remember to Duck, Cover and Hold in an earthquake.  If you cannot take cover, stand against an interior wall and protect your head and neck with your arms.
  • Practice your business recovery procedures by inspecting and restarting equipment and computers in the proper and prioritized order.

Earthquakes aren’t planned, but you can at least plan and practice earthquake safety measures to increase your chances of survival.

Keep in mind that standard property insurance policies exclude coverage for damages resulting from earth movement, including earthquakes. Read more about it here. In order to cover your home or business for earthquake damage, you must purchase a separate earthquake insurance policy.

–JK

January 13, 2011  

What Do I do In the Event of An Auto, Property, or Liability Loss?

Ever been in a car accident? Or, been affected by a fire, burglary, theft, etc? Even injured someone accidentally?

Chances are there was a flood of emotions going through your head if you’ve experienced any of these scenarios. During times like these, it’s likely you’ll have to rely on your insurance coverage to help you through it. These are the times you’re actually really happy your paid those insurance premiums.

Here are some tips on what to do in the event of an auto, property, or liability loss courtesy of Golden Eagle Insurance*:

Automobile Losses

  • Make sure everyone is okay – call for medical assistance if necessary
  • Notify the police about the loss
  • Exchange contact and insurance information with other parties
  • Get the names and phone numbers of any witnesses
  • Make a diagram of accident
  • Photograph the scene prior to moving the vehicle(s) if this can be safely done
  • Take reasonable steps to move your vehicle from the scene and to safeguard it and any personal property contained in the vehicle from subsequent damage
  • Make no commitments for payment
  • Do not discuss fault or blame at the scene
  • Do not discuss the details of the accident with anyone except the police, your insurance agent, claim adjuster, or your legal counsel

Property Losses

  • Protect all property from further damage
  • Preserve all evidence
  • Locate purchase records to document values
  • Describe extent of damage to property
  • If emergency restoration services are needed, call a service such as Servpro at 1-800-SERVPRO

General Liability Losses

  • Contact emergency personnel if necessary
  • Document how, when and where the accident occurred
  • Photograph scene and/or all damaged articles
  • Complete accident investigation form (available from your agent or insurance carrier)
  • Collect names, addresses and telephone numbers of injured persons
  • Make note of any injuries/complaints
  • Identify any potential witnesses and secure their names, addresses and telephone numbers
  • Make no commitments for payment
  • Do not discuss fault or blame at the scene
  • Do not discuss the details of the loss with any party representing the injured person without first consulting with your insurance agent, claim adjuster or legal counsel

*While not an exhaustive list, the above information is provided to assist you should a loss occur. Nothing contained within this material should be construed as providing legal advice nor does it imply coverage will be afforded. Every claim submitted must be reviewed and evaluated based upon the applicable policy of insurance and the facts of loss.

–JK

January 8, 2011  

Lessons Learned – Week of January 2, 2011

The Luckiest People On Earth!

–JK

January 5, 2011  

My First Video Blog Post!

Ladies and gentleman, I bring you my first video blog. Be easy on me though, this is my first time. I’m pretty sure this 90 second clip took 90 minutes to put up. However, I learned a lot in the process and am excited to add video to my blog. Thanks for watching!

–JK

January 3, 2011  

2010 Blog In Review

The stats helper monkeys at WordPress.com mulled over how this blog did in 2010, and here’s a high level summary of its overall blog health:

Healthy blog!

The Blog-Health-o-Meter™ reads This blog is on fire!.

Crunchy numbers

Featured image

A Boeing 747-400 passenger jet can hold 416 passengers. This blog was viewed about 1,900 times in 2010. That’s about 5 full 747s.

In 2010, there were 72 new posts, not bad for the first year! There were 205 pictures uploaded, taking up a total of 55mb. That’s about 4 pictures per week.

The busiest day of the year was July 1st with 177 views. The most popular post that day was About Me.

Where did they come from?

The top referring sites in 2010 were facebook.com, twitter.com, linkedin.com, mail.yahoo.com, and WordPress Dashboard.

Some visitors came searching, mostly for merry christmas quotes, office holiday party, jim kinmartin, cell phone usage policy, and small business building.

 

Attractions in 2010

These are the posts and pages that got the most views in 2010.

1

About Me June 2010

2

Featured Client Partner: ‘Mac–n-Mo’s Magical Morsels’ December 2010
1 comment

3

Why Your Business Should Consider A Cell Phone Usage Policy August 2010

4

Merry Christmas! (21 Christmas Quotes For Everyone) December 2010

5

Christmas Tree Safety Tips November 2010

 

December 30, 2010  

Commercial Auto Fleets – Vehicle Safety Tips

Does your business own a fleet of automobiles? Fleets are generally defined as a group of motor vehicles owned or leased by a business, rather than by an individual or family. Many businesses purchase or lease fleet vehicles to deliver goods to customers, or for sales representatives to travel to see clients, etc.

Overseeing multiple vehicles requires hefty organizational skills and  responsibility. Not only do you need to keep tabs on the vehicles themselves, but you need to take into account the employees driving them. When managing your businesses fleet of automobiles, consider three main points:

  1. Safety
  2. Maintenance
  3. Your insurance program

How can you improve fleet safety?

  • All fleet insurance programs should start with driver selection and having suitable standards for the drivers hired. As a business, make sure that all the drivers you hire meet your standards. Review your driver list to make sure that you are keeping the very best drivers. Insurance carriers make it a priority to look at the driving records of the people you put on the road.
  • Once you hire a new driver, provide adequate training programs, both on and off the road. Make sure your drivers are familiar with their routes and with the customers’ operations so they know where they’re going and what they are supposed to do.
  • Once your drivers are on the road, be sure to measure what’s going on. Be aware of when your drivers have violations, accidents or incidents. Technology these days can help you do that. Systems such as on-board recorders can give you details like hard braking, speeding, etc. Some vehicle systems have parameters that will alert you if the driver has gone off-route. These systems alert the dispatcher that your driver has left the route, then you can contact the driver to see what’s going on.

What can be done to improve maintenance?

  • Be sure that your vehicles are well-maintained and that you are keeping adequate records to document that maintenance. Train drivers to do inspections. Consider having a checklist that they need to complete before and after every trip to prove that they have done those inspections.
  • At the very least, perform the regularly scheduled preventive maintenance, whether you’re using your own mechanics or outside mechanics, and document it all. That way, you can prove what you have and haven’t done if there ever was an issue with that vehicle or an accident. Some businesses resort to technology that will alert them when the vehicle is due for maintenance, and the dispatcher will be notified not to dispatch that vehicle until that maintenance has been completed.

How do you determine what type of insurance coverage you need?

  • Concerning your insurance program, be sure your insurance broker has a complete understanding of all details of your fleet and that it is clearly relayed to your insurance carrier because it will affect your premium. Premium is rated according to whatever you’re transporting, your radius of operations, whether you are operating in an urban or rural area, whether you are a short-haul or long-haul.
  • Once a loss occurs, stay very involved because in the end, those losses will determine what your insurance premiums are going to be.

It is very important to have an insurance partner who can represent your best interests. Monitoring the claims process is as important as preventing the claim in the first place.

–JK

December 28, 2010  

Record Number of Employee Discrimination Claims Filed In 2010

The U.S. Equal Employment Opportunity Commission (EEOC) recently reported that for fiscal year 2010, it received nearly 100,000 new private sector charges of employment discrimination. This is the most ever in the agency’s 45-year history and a 7.2% increase over the number of charges filed in 2009*. For more information, click here.

What does it mean for employers?

Most experts agree that in a down economy, the opportunities for Employment Practices Liability insurance claims increase – employers are more likely to have to make difficult employment termination decisions, and with fewer alternatives available to them, employees are more likely to pursue legal remedies.

Employers facing difficult budget decisions may be tempted to reduce or eliminate their Employment Practices Liability insurance coverage. However, as the surge in EEOC claim filings shows, the risk to employers may now be greater than ever.

How much does an Employment Practices Liability insurance Policy Cost?

The cost of coverage depends on your type of business, the number of employees you have, and various risk factors such as prior claims or loss history. You can get a quote with very minimal information, often right on the spot. You would be surprised on how minimal the cost is in comparison to the coverage provided.

We here at ISU- The Olson Duncan Agency are available to review Employment Practices Liability coverage options with you. Please contact us today with questions.

*Courtesy of Swett & Crawford Professional Services Group

–JK

December 23, 2010  

Merry Christmas! (21 Christmas Quotes For Everyone)

21 Christmas quotes for everyone, from the funny to the more sentimental.

  1. “In the old days, it was not called the Holiday Season; the Christians called it ‘Christmas’ and went to church; the Jews called it ‘Hanukka’ and went to synagogue; the atheists went to parties and drank. People passing each other on the street would say ‘Merry Christmas!’ or ‘Happy Hanukka!’ or (to the atheists) ‘Look out for the wall!'”  -Dave Barry
  2. “Christmas is a time when everybody wants his past forgotten and his present remembered. What I don’t like about office Christmas parties is looking for a job the next day.”  -Phyllis Diller
  3. “The one thing women don’t want to find in their stockings on Christmas morning is their husband.”   -Joan Rivers
  4. “Christmas is a race to see which gives out first – your money or your feet.”
  5. “Christmas at my house is always at least six or seven times more pleasant than anywhere else. We start drinking early. And while everyone else is seeing only one Santa Claus, we’ll be seeing six or seven.”   -W.C. Fields
  6. “Mail your packages early so the post office can lose them in time for Christmas.”    -Johnny Carson
  7. “I once bought my kids a set of batteries for Christmas with a note on it saying, toys not included.”   -Bernard Manning
  8. “The Supreme Court has ruled that they cannot have a nativity scene in Washington, D.C. This wasn’t for any religious reasons. They couldn’t find three wise men and a virgin.”   -Jay Leno
  9. “Let me see if I’ve got this Santa business straight. You say he wears a beard, has no discernible source of income and flies to cities all over the world under cover of darkness? You sure this guy isn’t laundering illegal drug money?”   -Tom Armstrong
  10. “Oh look, yet another Christmas TV special! How touching to have the meaning of Christmas brought to us by cola, fast food, and beer… Who’d have ever guessed that product consumption, popular entertainment, and spirituality would mix so harmoniously?”  -Bill Watterson, Calvin & Hobbes
  11. “There is no ideal Christmas; only the one Christmas you decide to make as a reflection of your values, desires, affections, traditions.” -Bill McKibben
  12. “Christmas waves a magic wand over this world, and behold, everything is softer and more beautiful.”   -Norman Vincent Peale
  13. “There has been only one Christmas – the rest are anniversaries.” -W.J. Cameron.
  14. “Santa Claus has the right idea. Visit people once a year.”   -Victor Borge
  15. “Never worry about the size of your Christmas tree. In the eyes of children, they are all 30 feet tall.”  -Larry Wilde
  16. “Blessed is the season which engages the whole world in a conspiracy of love.”   -Hamilton Wright Mabi
  17. “Let us remember that the Christmas heart is a giving heart, a wide open heart that thinks of others first. The birth of the baby Jesus stands as the most significant event in all history, because it has meant the pouring into a sick world of the healing medicine of love which has transformed all manner of hearts for almost two thousand years… Underneath all the bulging bundles is this beating Christmas heart.”    -George Matthew Adams
  18. “I wish we could put up some of the Christmas spirit in jars and open a jar of it every month.”   -Harlan Miller
  19. “If there is no joyous way to give a festive gift, give love away.”
  20. “The best of all gifts around any Christmas tree: the presence of a happy family all wrapped up in each other.”
  21. “Peace on earth will come to stay, when we live Christmas every day.”    -Helen Steiner Rice

“MERRY CHRISTMAS TO ALL AND TO ALL A GOOD NIGHT!”

–JK

« Older Posts
Newer Posts »