Wrap-up or “Wrap” Construction insurance can provide a highly effective tool to reduce costs and avoid headaches in insuring large, complex projects and the workers building them.
Wrap policies usually offer superior coverage, higher policy limits and greater contract certainty than traditional Commercial General Liability, Workers Compensation, and (often) Builders Risk insurance written for individual subcontractors and types of risk. What’s more, Wrap coverage can minimize potential cross-litigation on construction projects.
Although they’ve been available for decades, these policies have become widespread in recent years, due to the skyrocketing costs of raw materials, financing, and litigation. There are two types of Wrap coverage; owner-controlled insurance policies (OCIP), and contractor-controlled insurance policies (CCIP). Either variety allows the owner to spread the risk among different parties, while providing a seamless insurance safety net for every company and individual involved – which can translate into profit, based on loss experienced over the life of the policy.
Because of their extensive coverage, Wrap policies are usually more expensive than other types of Construction insurance for the owner or primary contractor, who will pass on the extra cost among the general contractors and sub-contractors on the project. This is a small price to pay considering the peace of mind that comes from having all coverages and insured parties protected under a single policy.
Because of their complexity, insurance companies often tailor Wrap policies for each project, writing them on a customized (“manuscript”) basis. Our agency’s professionals would be happy to work with you and your insurer in creating coverage that’s comprehensive and cost-effective. That’s what we’re here for.
Read more
More and more businesses are offering workers quality legal services as a voluntary employee benefit, according to a nationwide survey of more than 300 human resource and benefits professionals. The study, sponsored by MetLife, found that the top reasons for the popularity of these services were improved employee satisfaction (69%) higher retention and loyalty (44%), and the ability to compete with other companies’ benefit programs (32%).
A majority of survey respondents cited these benefits of Group Legal plans:
- Helping employees achieve peace of mind when dealing with legal issues.
- Reducing employees’ levels of stress.
- Lowering the cost of legal services.
- Minimizing workplace time in dealing with personal issues.
- Providing quality legal services (57%).
More than 90% of survey respondents found that legal plans are easier, or as easy, to administer than other voluntary benefits plans. These programs also have high persistency rates for both employers and employees.
Says Bill Brooks, CEO of Hyatt Legal Plans, “This is a benefit that spans the generations and suits a diverse workforce because there’s a broad range of situations where an attorney can help.
Legal assistance at a cost of less than some attorneys may bill per hour can be an effective way to generate employee loyalty.” There’s a clear need for this coverage: According to the American Bar Association, 71% of people encounter a legal problem every year.
Will preparation and estate planning are the most frequently offered services under Group Legal plans, followed by family matters, home purchases and sales, and credit problems, among others.
If you’d like to add a comprehensive, cost-effective Group Legal plan to your voluntary Employee Benefits portfolio, please free to get in touch with the professionals at our agency. As always, we’re here to help!
Read more
By decreasing work time lost from to job-related injuries and illnesses, Return-to-Work (RTW) programs can reduce your insurance costs (Workers Compensation, Disability, and Medical insurance), strengthen workplace morale, boost productivity – and help protect you against ADAAA litigation.
Here are ten common mistakes by businesses when using RTW:
- Failure to manage the higher number of employees covered by the ADAAA. An expanded definition of disability has increased the number of employees under the ADA to the point that some attorneys advise against fighting disability claims.
- Insisting on employee release to “full duty” before returning to work. This raises Workers Comp costs and the possibility of the employee not returning to work when medically possible.
- Ignoring co-morbidities. Health issues that complicate or delay an employee’s recovery (such as diabetes, obesity, and hypertension) can increase Comp claims.
- Failure to commit the necessary budget or resources. The costs of absences and non-compliance with government rules is usually far higher than that of implementing an RTW.
- Reluctance to set transitional assignments because employees “might get reinjured.” It’s even riskier to have them stay at home and develop a “disability attitude” that extends the absence and boosts costs.
- Failure to distinguish “light duty” from “transitional work.” The ADAAA permits employers to reserve less physically demanding or “light-duty” jobs for those with work-related disabilities – and these jobs should be distinct from transitional tasks.
- Relying on physicians to guide the RTW process. Although physicians are medical experts, they’re not familiar with workplace policies, job demands, and the availability of transitional work.
- Failure to understand overlapping and conflicting laws. The clashing requirements of insurance companies and state and local governments can be a nightmare.
- Inability to focus on the goal. An Integrated Benefits Institute study ranked a focus on the employee’s job as the major success factor in successful RTW programs.
- Believing that Workers Comp settlements resolve other liabilities. One size does not fit all.
Read more
Third-Party Administrator (TPA) adjusters form the front line of defense against unnecessary claims expenses, including such traditional cost drivers as fraud or opioid pain medication addiction. They’re the ones who determine how soon employees will mend and return to the job, the length of claims, and whether closing a claim will require additional resources, such as attorney involvement. It makes sense that the more closely you monitor the adjusters of your company’s TPA, the lower your Workers Comp claims costs – and premiums.
However, adjusters today are running on overload more than ever. In addition to managing larger caseloads, they face growing real-time information demands, increasing communication speed, and expanding regulations – which distract them from such cost-control practices as staying in contact with injured workers. Says one claims adjustment expert, “The fastest way of getting an injured employee to hire an attorney is making them feel like you don’t really care about their injury. So you end up with a lot more claims than necessary going to attorneys, which leads to higher claim costs.”
It makes sense to work closely with your TPA adjuster by following these guidelines:
- Interview adjusters before they’re assigned to your company.
- Review the adjuster’s claims notes on a regular basis.
- Audit the TPA’s services periodically to make sure that the adjuster is meeting your expectations.
- Develop close relationships with claims examiners and their supervisors.
We’d be happy to work with you and your TPA adjuster on keeping tabs on your Workers Comp claims costs. Please feel free to get in touch with us.
Read more
Some companies employ workers who work alone or in remote areas where injuries and illnesses can occur, resulting in delays in emergency response or medical assistance. They include people who work outside normal business hours, such as janitors, security guards, special production, plant maintenance or repair staff, delivery truck drivers, and others. Protecting the safety of these lone or remote workers isn’t always easy – but it’s your responsibility.
In some cases, you must monitor the exposure of these workers to identify potential hazards, assess the risks of injury or illness, and take steps to eliminate or control them. Bear in mind that some high-risk activities have safety regulations which require at least one other person to do the job, such as confined space work (defined by OSHA regulations) or electrical work at or near exposed live conductors.
If you have any employees out in the field or working alone, consider what safety measures to take to protect their well-being and security. A well-thought-out safety program for these employees is an essential first step. Hazard control measures might include:
- Safety Awareness information.
- Training.
- Supervision.
- Protective Equipment.
- Communication and Monitoring devices.
Take steps to make sure that these safety control measures remain in effect – and review your plan at regular intervals by doing a risk assessment in areas where employees work alone.
As your professional insurance agents, it’s our responsibility to help you keep all of your workers safe at all times. Give us a call at any time to discuss how we can help.
Read more
Business Property insurance protects your building and property against loss or damage from theft, accident, and a variety of other causes. The policy will pay for replacing or repairing covered property or providing compensation for irreplaceable items.
If you don’t own your building you’ll still need to cover its contents: fixtures, furniture, office equipment, inventory and the supplies stored at your location or off-site.
The premium will depend on whether you choose to insure the replacement cost or actual cash value (ACV) of the property. Most Business Property coverage is written on a replacement-cost basis, which will reimburse you for replacing lost or stolen goods with new items at current market prices. This feature can help your business recover from the loss or theft quickly. (If you’re leasing equipment, the leaseholder might require you to cover it at replacement value.) You’ll need to revise your coverage when you acquire or dispose of property. Be sure to update replacement values over time; a computer worth $1,000 two years ago might cost half that today – on the other hand, the price of a desk might well increase.
Actual cash value coverage, which generally costs less, provides reimbursement for the depreciated value of covered property. If your business owns its own equipment, which you could replace easily with comparable goods at depreciated market value, the lower premium of an ACV policy might make it a more cost-effective choice.
As always, our agency’s Business Insurance specialists stand ready to offer their advice on choosing the coverage that’s best for you. Just give us a call.
Read more
