Pay Attention to Policy Milestones to Reduce Workers’ Comp Costs

Once they have paid their annual premium, many employers pay scant attention to their workers’ comp policy until the renewal date starts closing in. Unfortunately, that’s not the best time to attempt to control costs.

Because workers’ comp is one of the most loss-sensitive insurance policies, and as claims can sometimes be paid out for decades, it’s important that you proactively manage claims. One way to do that is through a quarterly claims review process, the timing of which is in line with the calculation of your company’s Experience Modification Factor (X-Mod).

It’s important to review loss runs and assess all open claims three months into the new policy year, because the critical number crunching for calculating the X-Mod takes place six months after the policy anniversary date. This gives you three months to reduce or close claims that will affect the X-Mod calculation.

Policies that renewed on Jan. 1, 2020 used the loss experience from policies that were effective from 1/1/16 to 2/31/16; from 1/1/17 to 12/31/17; and from 1/1/18 to 12/31/18. In other words, it looks at the claims from four years ago to one year prior. It will not include the most recent year’s claims payouts, as they are still too fresh.

This is when it’s time to focus on trying to close claims and reducing reserves on existing claims. The top priority is getting the injured employees back to full or modified duty. If that isn’t possible and return to work appears unlikely, then consideration should be given to settling the claim.

Six months after policy inception is the most important day of the workers’ comp year, because this is when the insurance company sends loss information to your state’s rating bureau to be used in the calculation of your X-Mod. This is known as the valuation date, or sometimes, the unit stat date.

This information includes not only the money that the insurer has spent on claims, but also what it expects to spend (the reserves). In effect, your insurer takes a snapshot of your loss information and it is absolutely critical that these numbers are correct. With few exceptions, once the rating bureau has the numbers, they are set in stone.

Unfortunately, the numbers are often inaccurate because gauging claims costs is not an exact science. Also, errors are rampant in the system and, once an insurer sets reserves for a claim, it is hard to get them reduced until after the claim closes.

The window of opportunity is short and the process of correcting mistakes can take time, which is another reason for the comprehensive review three months after the policy’s inception.

Put reserves in focus

Pay close attention to reserves. They represent what the insurance company thinks the ultimate cost of the claim will be. It is not a guess, but it is more of an art than a science.

Its accuracy depends on the precision of the adjuster in evaluating the employee’s medical condition, anticipated time away from work, cost of medical care and other relevant costs.

Yet, the cost projections get counted exactly the same as the dollars paid out, so if the reserve is set too high, you will pay too much.

Although the X-Mod is set at the sixth-month mark, it is a good idea to continue the quarterly review process at nine months. Throughout the year, proactive management of all open claims will ensure that there are no surprises at renewal.

BGES Group’s office, located in Larchmont, NY is a full service insurance agency offering, Property, Liability, Umbrella Liability, Business Auto, Bid & Performance Bonds, Inland Marine, Worker’s Compensation, New York State Disability, Group Health, Life insurance, Personal lines and Identity Theft.

BGES Group are Worker’s Compensation Specialists for the States of New York, New Jersey and Connecticut – Issues we address: 1) Lowering pricing – we have specialty programs that can save you up to 40%; 2) Finding a new company; 3) Being cancelled or non renewed; 4) Audit disputes; 5) Company creating fictitious payroll at audit time; 6) Lowering high experience modifications factors; 7) Misclassification of payrolls; 8) Lowering or eliminating renewal deposits;   9) Getting coverage when you’ve been without for a few months; 10) Covering multiple states under one policy; 11) Eliminating 10% service or policy fees; 12) Timely issuance of certificates; 13) Always being able to get someone on the phone or by email when you need to.  

Special Contractor Insurance Programs (NY, NJ, CT) – We we have 50+ insurance companies to market your general liability, umbrella liability, business auto, workers compensation, bid & performance bonds and group health coverages.  We help contractors set up proper risk transfer mechanisms.  If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer mechanisms, subcontractor screening, ways to lower your insurance costs that lower them.

Contractors Make More Sales – Close more sales with easy, affordable financing options for your customers.  Everything can be done from your phone.  Thirteen banks to get financing from.  No hidden fees. Click here to learn more.

Identity Theft – Over the past year hundreds of thousands of people have had to deal with identity theft.  This has become such a huge problem so we now offer Identity Theft Protection. We heard stories of kids going for car loans and learning they owe $200,000+ to companies they never heard of.  Under our program you can protect yourself, spouse and children.  Anyone you know can purchase this protection though our plan!  Click here to learn more or sign up.

Soon To Be The Best Artificial Intelligence Technology Marketing Platform In The World To Get You New CustomersSick and tired of paying social media experts thousands of dollars to do your marketing?  Paying Google, Facebook, Linkedin hundreds/thousands of dollars for lousy results?  How would you like to dominate your business niche?  How would you like get in on the ground floor and earn a massive new cash flow every month?   Click here to learn more.  

If you would like to speak with us call Gary Wallach at 914-806-5853 or click here to email or click here to visit our website.

Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538

e-mail: bgesgroup@gmail.com

website: http://www.bgesgroup.com

© – Copyright – 2020 – BGES Group

Courts Rule COVID-19 Business Interruption Claims Invalid

As second court has ruled that an insurer does not have to pay business interruption claims by businesses that saw their revenues run dry due to the COVID-19 pandemic, which will further make it difficult for business to successfully file such claims.

In the most recent case, a Superior Court judge in the District of Colombia in August ruled that an insurer is not obligated to pay business interruption claims of the owner of several restaurants after the mayor ordered all restaurants to close in response to the coronavirus. The judge ruled that in order for the business interruption claims to be valid there must have been physical loss or damage and that the plaintiffs failed to prove any they suffered any such losses.

The ruling comes on the heels of a Michigan state court decision in July that also sided with Michigan Insurance Company in a case brought by the owner of two restaurants whose $650,000 business interruption claim the insurer had denied.

These two cases are closely following the wording of typical business property policies that also include business interruption coverage caused by physical damage.

In the D.C. case, there were several plaintiffs: Lead plaintiff Rose 1 LLC, which is owned by chef Aaron Silverman, and which operates a number of upscale restaurants including Rose’s Luxury, Elaine’s One, Pineapple and Pearl’s and Little Pearl. Other plaintiffs included Buttercream Bakeshop, Karma Modern Indian, El Cucho, Bar Charley, La Vie and Beuchert’s Saloon.

Mayor Muriel Bowser had issued orders on banning indoor dining, for residents to shelter at home and for all non-essential businesses to close. The restaurants filed claims on their commercial property policy with Eire Insurance Company, which included coverage for loss of income and/or rental income from a partial or total interruption of business that results directly from loss or damage to the insured property.

The restaurants after the claim was rejected, arguing that the loss of use of their restaurants was a direct physical loss because the closures were the direct result of the mayor’s orders.

The plaintiffs argued that the losses were physical because the coronavirus is “material” and “tangible.” But, the judge pointed out that the plaintiffs failed to show that the virus was present in their properties and that the mayor’s orders did not materially or tangibly affect the restaurants.

Business interruption cover

Business law attorneys say business around the country have filed hundreds of coronavirus-related business interruption lawsuits after seeing their claims rejected. The issue mainly comes down to policy wording.

Most business property policies also cover business interruption claims, but policies usually specify that there must be physical damage to property. The policies are typically tapped to losses resulting from damage to a business caused by a natural catastrophe. Additionally, most business interruption portions of policies explicitly exclude pandemic.

Most policies require there to be some type of direct physical loss or damage to either your premises or some part of your supply chain in order to trigger business interruption coverage. Without that trigger, insurers would likely argue that a virus in your facility is not physical loss or damage.

But these are early days in the litigation front as more cases are decided and appealed, we should have a clearer picture of COVID-19 business interruption coverage.

BGES Group’s office, located in Larchmont, NY is a full service insurance agency offering, Property, Liability, Umbrella Liability, Business Auto, Bid & Performance Bonds, Inland Marine, Worker’s Compensation, New York State Disability, Group Health, Life insurance, Personal lines and Identity Theft.

BGES Group are Worker’s Compensation Specialists for the States of New York, New Jersey and Connecticut – Issues we address: 1) Lowering pricing – we have specialty programs that can save you up to 40%; 2) Finding a new company; 3) Being cancelled or non renewed; 4) Audit disputes; 5) Company creating fictitious payroll at audit time; 6) Lowering high experience modifications factors; 7) Misclassification of payrolls; 8) Lowering or eliminating renewal deposits;   9) Getting coverage when you’ve been without for a few months; 10) Covering multiple states under one policy; 11) Eliminating 10% service or policy fees; 12) Timely issuance of certificates; 13) Always being able to get someone on the phone or by email when you need to.

Special Contractor Insurance Programs (NY, NJ, CT) – We we have 50+ insurance companies to market your general liability, umbrella liability, business auto, workers compensation, bid & performance bonds and group health coverages.  We help contractors set up proper risk transfer mechanisms.  If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer mechanisms, subcontractor screening, ways to lower your insurance costs that lower them.

Contractors Make More Sales – Close more sales with easy, affordable financing options for your customers.  Everything can be done from your phone.  Thirteen banks to get financing from.  No hidden fees. Click here to learn more.

Identity Theft – Over the past year hundreds of thousands of people have had to deal with identity theft.  This has become such a huge problem so we now offer Identity Theft Protection. We heard stories of kids going for car loans and learning they owe $200,000+ to companies they never heard of.  Under our program you can protect yourself, spouse and children.  Anyone you know can purchase this protection though our plan!  Click here to learn more or sign up.

Soon To Be The Best Artificial Intelligence Technology Marketing Platform In The World To Get You New CustomersSick and tired of paying social media experts thousands of dollars to do your marketing?  Paying Google, Facebook, Linkedin hundreds/thousands of dollars for lousy results?  How would you like to dominate your business niche?  How would you like get in on the ground floor and earn a massive new cash flow every month?   Click here to learn more.    

If you would like to speak with us call Gary Wallach at 914-806-5853 or click here to email or click here to visit our website.

Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538

e-mail: bgesgroup@gmail.com

website: http://www.bgesgroup.com

© – Copyright – 2020 – BGES Group

Pay Attention to Policy Milestones to Reduce Workers’ Comp Costs

Once they have paid their annual premium, many employers pay scant attention to their workers’ comp policy until the renewal date starts closing in. Unfortunately, that’s not the best time to attempt to control costs.

Because workers’ comp is one of the most loss-sensitive insurance policies, and as claims can sometimes be paid out for decades, it’s important that you proactively manage claims. One way to do that is through a quarterly claims review process, the timing of which is in line with the calculation of your company’s Experience Modification Factor (X-Mod).

It’s important to review loss runs and assess all open claims three months into the new policy year, because the critical number crunching for calculating the X-Mod takes place six months after the policy anniversary date. This gives you three months to reduce or close claims that will affect the X-Mod calculation.

Policies that renewed on Jan. 1, 2020 used the loss experience from policies that were effective from 1/1/16 to 2/31/16; from 1/1/17 to 12/31/17; and from 1/1/18 to 12/31/18. In other words, it looks at the claims from four years ago to one year prior. It will not include the most recent year’s claims payouts, as they are still too fresh.

This is when it’s time to focus on trying to close claims and reducing reserves on existing claims. The top priority is getting the injured employees back to full or modified duty. If that isn’t possible and return to work appears unlikely, then consideration should be given to settling the claim.

Six months after policy inception is the most important day of the workers’ comp year, because this is when the insurance company sends loss information to your state’s rating bureau to be used in the calculation of your X-Mod. This is known as the valuation date, or sometimes, the unit stat date.

This information includes not only the money that the insurer has spent on claims, but also what it expects to spend (the reserves). In effect, your insurer takes a snapshot of your loss information and it is absolutely critical that these numbers are correct. With few exceptions, once the rating bureau has the numbers, they are set in stone.

Unfortunately, the numbers are often inaccurate because gauging claims costs is not an exact science. Also, errors are rampant in the system and, once an insurer sets reserves for a claim, it is hard to get them reduced until after the claim closes.

The window of opportunity is short and the process of correcting mistakes can take time, which is another reason for the comprehensive review three months after the policy’s inception.

Put reserves in focus

Pay close attention to reserves. They represent what the insurance company thinks the ultimate cost of the claim will be. It is not a guess, but it is more of an art than a science.

Its accuracy depends on the precision of the adjuster in evaluating the employee’s medical condition, anticipated time away from work, cost of medical care and other relevant costs.

Yet, the cost projections get counted exactly the same as the dollars paid out, so if the reserve is set too high, you will pay too much.

Although the X-Mod is set at the sixth-month mark, it is a good idea to continue the quarterly review process at nine months. Throughout the year, proactive management of all open claims will ensure that there are no surprises at renewal.

BGES Group’s office, located in Larchmont, NY is a full service insurance agency offering, Property, Liability, Umbrella Liability, Business Auto, Bid & Performance Bonds, Inland Marine, Worker’s Compensation, New York State Disability, Group Health, Life insurance, Personal lines and Identity Theft.

BGES Group are Worker’s Compensation Specialists for the States of New York, New Jersey and Connecticut – Issues we address: 1) Lowering pricing – we have specialty programs that can save you up to 40%; 2) Finding a new company; 3) Being cancelled or non renewed; 4) Audit disputes; 5) Company creating fictitious payroll at audit time; 6) Lowering high experience modifications factors; 7) Misclassification of payrolls; 8) Lowering or eliminating renewal deposits;   9) Getting coverage when you’ve been without for a few months; 10) Covering multiple states under one policy; 11) Eliminating 10% service or policy fees; 12) Timely issuance of certificates; 13) Always being able to get someone on the phone or by email when you need to.

Special Contractor Insurance Programs (NY, NJ, CT) – We we have 50+ insurance companies to market your general liability, umbrella liability, business auto, workers compensation, bid & performance bonds and group health coverages.  We help contractors set up proper risk transfer mechanisms.  If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer mechanisms, subcontractor screening, ways to lower your insurance costs that lower them.

Contractors Make More Sales – Close more sales with easy, affordable financing options for your customers.  Everything can be done from your phone.  Thirteen banks to get financing from.  No hidden fees. Click here to learn more.

Identity Theft – Over the past year hundreds of thousands of people have had to deal with identity theft.  This has become such a huge problem so we now offer Identity Theft Protection. We heard stories of kids going for car loans and learning they owe $200,000+ to companies they never heard of.  Under our program you can protect yourself, spouse and children.  Anyone you know can purchase this protection though our plan!  Click here to learn more or sign up.

Soon To Be The Best Artificial Intelligence Technology Marketing Platform In The World To Get You New CustomersSick and tired of paying social media experts thousands of dollars to do your marketing?  Paying Google, Facebook, Linkedin hundreds/thousands of dollars for lousy results?  How would you like to dominate your business niche?  How would you like get in on the ground floor and earn a massive new cash flow every month?   Click here to learn more.    

If you would like to speak with us call Gary Wallach at 914-806-5853 or click here to email or click here to visit our website.

Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538

e-mail: bgesgroup@gmail.com

website: http://www.bgesgroup.com

© – Copyright – 2020 – BGES Group

Worker's Compensation Policy

More Employers Ask Workers to Sign COVID-19 Waivers, but They May Not Be Legal

As lawsuits against employers continue rising amid the coronavirus pandemic, some businesses are requiring workers to sign waivers absolving them of liability and responsibility should they contract the virus.

Eight percent of executives surveyed by law firm Blank Rome said they would require that their workers sign waivers of liability before returning to the workplace.

While employers are trying to protect themselves from a liability that didn’t even exist a year ago, some human resources legal experts have expressed concerns that they may not be necessary ― and may be unenforceable.

The moves come as employers are wrestling with numerous risks that the pandemic has wrought, and with the U.S. Senate having proposed legislation that would limit the liability of employers for workers who become sick during the pandemic. A number of states have also enacted laws or emergency regulations that make it harder for employees to sue employers for negligence over COVID-19.

COVID-19-spurred employee lawsuits have mostly centered on employers not providing the proper protections for workers, discrimination or for being laid off for refusing to come to work.

Legal experts caution that employers cannot require workers to waive rights they may have, such as access to workers’ compensation benefits or the right to file a complaint with OSHA.

They also say that some employers may consider waivers as a green light to not take precautions against COVID-19, but in such cases the waivers would likely not be legal.

If a worker claims they caught COVID-19 at work and the facts back that up, they would likely have access to workers’ compensation benefits (some states even require it). But if the employer was negligent, the employee could have further legal avenues to pursue besides workers’ compensation, rights that cannot legally be waived, lawyers say.

So even if an employee were to sign a document waiving their right to file a complaint if they feel their employer is being negligent, they may still have recourse.

Requiring workers to sign waivers could present a number of legal issues, according to the law website nolo.com, including:

  • Courts in some states are reluctant to enforce liability waivers in the workplace because of the superior bargaining power of employers over their staff.
  • Workplace morale could suffer if your employees think you are placing your own economic interests above workplace safety.
  • Any waiver employees sign would not protect your firm from lawsuits filed by their families should they contract COVID-19 if staff are infected at work.
  • A waiver might be unnecessary in states that have passed laws granting immunity to employers for claims made by workers infected with the virus.

Another option

While employees who refuse to sign a waiver of their company’s liability may have grounds to challenge their employer, some liability lawyers say that employers instead of a waiver can ask their staff to sign a social contract that requires:

  • The employer to follow Centers for Disease Control and Prevention guidelines and take all necessary precautions to prevent the spread of COVID-19 at work, and
  • The workers to comply with their employer’s requirements on mandates on wearing masks, social distancing and not coming to work if they have symptoms or of they think they have been exposed to someone with COVID-19.

This type of agreement won’t protect an employer from a lawsuit, but it does spell out that they are following authorities’ recommendation for protecting employees.

While employees who refuse to sign a waiver of their company’s liability could have grounds to sue, those who sign this type of acknowledgement of new workplace rules and government guidance are less likely to be successful if they are fired for not signing. This is because the acknowledgement is not forcing them to give up any of their rights and is rather for their and their co-workers’ protection.

These social contracts also would provide workers with a list of their responsibilities when working during the COVID-19 pandemic, and outline what their employer is doing to protect them.

BGES Group’s office, located in Larchmont, NY is a full service insurance agency offering, Property, Liability, Umbrella Liability, Business Auto, Bid & Performance Bonds, Inland Marine, Worker’s Compensation, New York State Disability, Group Health, Life insurance, Personal lines and Identity Theft. Worker's Compensation Policy

BGES Group are Worker’s Compensation Specialists for the States of New York, New Jersey and Connecticut – Issues we address: 1) Lowering pricing – we have specialty programs that can save you up to 40%; 2) Finding a new company; 3) Being cancelled or non renewed; 4) Audit disputes; 5) Company creating fictitious payroll at audit time; 6) Lowering high experience modifications factors; 7) Misclassification of payrolls; 8) Lowering or eliminating renewal deposits;   9) Getting coverage when you’ve been without for a few months; 10) Covering multiple states under one policy; 11) Eliminating 10% service or policy fees; 12) Timely issuance of certificates; 13) Always being able to get someone on the phone or by email when you need to.

Special Contractor Insurance Programs (NY, NJ, CT) – We we have 50+ insurance companies to market your general liability, umbrella liability, business auto, workers compensation, bid & performance bonds and group health coverages.  We help contractors set up proper risk transfer mechanisms.  If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer mechanisms, subcontractor screening, ways to lower your insurance costs that lower them.

Contractors Make More Sales – Close more sales with easy, affordable financing options for your customers.  Everything can be done from your phone.  Thirteen banks to get financing from.  No hidden fees. Click here to learn more.

Identity Theft – Over the past year hundreds of thousands of people have had to deal with identity theft.  This has become such a huge problem so we now offer Identity Theft Protection. We heard stories of kids going for car loans and learning they owe $200,000+ to companies they never heard of.  Under our program you can protect yourself, spouse and children.  Anyone you know can purchase this protection though our plan!  Click here to learn more or sign up.

Soon To Be The Best Artificial Intelligence Technology Marketing Platform In The World To Get You New CustomersSick and tired of paying social media experts thousands of dollars to do your marketing?  Paying Google, Facebook, Linkedin hundreds/thousands of dollars for lousy results?  How would you like to dominate your business niche?  How would you like get in on the ground floor and earn a massive new cash flow every month?   Click here to learn more.      

 

If you would like to speak with us call Gary Wallach at 914-806-5853 or click here to email or click here to visit our website.

Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538

e-mail: bgesgroup@gmail.com

website: http://www.bgesgroup.com

© – Copyright – 2020 – BGES Group

Number of COVID-19 Workers’ Comp Claims Continues Rising

While the pandemic rages on, the number of workers in the U.S. who are filing COVID-19 workers’ compensation claims is increasing and are accounting for a growing portion of overall claims.

While there is only data currently available from two states – California and Florida – the numbers coming out of the two states show the steady progression of claims being filed, although in Florida’s case the numbers don’t reflect all filed COVID-19 workers’ compensation claims. Additionally, the National Council on Compensation Insurance, which the rating agency for about 38 states will release it’s first numbers on coronavirus claims in September.

In California since the start of the year, workers have filed 22,621 COVID-19 workers’ compensation, according to the state

Division of Workers’ Compensation. In June and July alone case rose by nearly 11,000 cases. In Florida there have been 5,693 COVID-19 indemnity claims filed since the start of the year, but the number of new claims has been falling.

The way the numbers are reported in those two states differs though as Florida only provides monthly reports on all COVID-19 claims that result in indemnity payments. California’s numbers include the total number of first reports of injury where COVID-19 was listed as the cause, so that number includes medical-only claims. There have been 5,252 denials of COVID-19 claims in California through July 31, according to the DWC.

The numbers in California are concerning as in the last two months COVID-19 claims have accounted for nearly 20% of all workers’ comp claims filed in the state.

There are concerns that if COVID-19 cases continue rising among American workers that it will start affecting workers’ compensation rates as insurers never priced pandemic illness into their policies. The rate pressure may also be less as other industrial injuries have fallen dramatically as not as many people are working as before.

In Florida, COVID-19 was the cause of 28% of indemnity claims in March, 36% in April, 23% in May and 25% in June.

All of the above figures are still raw data as the more claims may be filed for prior months and as more data is available, the true cost of COVID-19 on the workers’ compensation system will become apparent.

Who is filing claims

Mitchell International, a San Diego-based insurance data provider, has been tracking COVID-19 workers’ compensation claims and has found that claims were filed as follows:

  • 66% of claims were filed by workers in the health care and social assistance industries
  • 7% were filed by workers in public administration
  • 4% were filed by workers in education
  • 4% were filed by workers in manufacturing
  • 3% were filed by workers in transportation and warehousing
  • 16% were filed by workers in other sectors.

At the same time, the frequency of other typical workers’ compensation claims continues to fall. For example, in California  in July there were only 16,000 total workers’ comp claims filed, compared to nearly 46,000 claims in July 2019.

The takeaway

As an employer, it’s encumbant on you to provide a safe workplace and that means also safeguarding your workers against transmission of COVID-19. OSHA, the Centers for Disease Control and various states have issued return to work plans for employers to follow.

Most important a safe workplace today must now include:

  • Social distancing between workers and workers and customers.
  • Requiring employees to wear masks and other protective equipment depending on their risk.
  • Regular sanitizing and cleaning.
  • Plans for monitoring employee’s for COVID-19

BGES Group’s office, located in Larchmont, NY is a full service insurance agency offering, Property, Liability, Umbrella Liability, Business Auto, Bid & Performance Bonds, Inland Marine, Worker’s Compensation, New York State Disability, Group Health, Life insurance, Personal lines and Identity Theft.

BGES Group are Worker’s Compensation Specialists for the States of New York, New Jersey and Connecticut – Issues we address: 1) Lowering pricing – we have specialty programs that can save you up to 40%; 2) Finding a new company; 3) Being cancelled or non renewed; 4) Audit disputes; 5) Company creating fictitious payroll at audit time; 6) Lowering high experience modifications factors; 7) Misclassification of payrolls; 8) Lowering or eliminating renewal deposits;   9) Getting coverage when you’ve been without for a few months; 10) Covering multiple states under one policy; 11) Eliminating 10% service or policy fees; 12) Timely issuance of certificates; 13) Always being able to get someone on the phone or by email when you need to.

Special Contractor Insurance Programs (NY, NJ, CT) – We we have 50+ insurance companies to market your general liability, umbrella liability, business auto, workers compensation, bid & performance bonds and group health coverages.  We help contractors set up proper risk transfer mechanisms.  If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer mechanisms, subcontractor screening, ways to lower your insurance costs that lower them.

Contractors Make More Sales – Close more sales with easy, affordable financing options for your customers.  Everything can be done from your phone.  Thirteen banks to get financing from.  No hidden fees. Click here to learn more.

Identity Theft – Over the past year hundreds of thousands of people have had to deal with identity theft.  This has become such a huge problem so we now offer Identity Theft Protection. We heard stories of kids going for car loans and learning they owe $200,000+ to companies they never heard of.  Under our program you can protect yourself, spouse and children.  Anyone you know can purchase this protection though our plan!  Click here to learn more or sign up.

Soon To Be The Best Artificial Intelligence Technology Marketing Platform In The World To Get You New CustomersSick and tired of paying social media experts thousands of dollars to do your marketing?  Paying Google, Facebook, Linkedin hundreds/thousands of dollars for lousy results?  How would you like to dominate your business niche?  How would you like get in on the ground floor and earn a massive new cash flow every month?   Click here to learn more.          

 

If you would like to speak with us call Gary Wallach at 914-806-5853 or click here to email or click here to visit our website.

Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538

e-mail: bgesgroup@gmail.com

website: http://www.bgesgroup.com

© – Copyright – 2020 – BGES Group

Why Every Contractor Should Require Workers’ Comp Insurance

Two construction workers died on the job every day in 2013, according to the U.S. Occupational Safety and Health Administration. One out of every 25 construction workers got hurt on the job that year. Workers in this industry need the protection of Workers’ Compensation benefits more than most.

Most states require employers to carry Workers’ Compensation insurance, but not in all cases. Many states exempt one-person operations from the requirement, for example. Regardless, it is a good practice for project owners and general contractors who hire subcontractors to require the subs to carry this insurance, whether the law requires it or not.

A typical construction project involves three types of entities: The owner who is paying to have the project done; a general contractor or independent contractor whom the owner hires to do the work; and subcontractors whom the GC hires to do portions of the work. The relationships between these entities and their employees differ.

While most states require employers to provide Workers’ Compensation benefits to employees, their laws also define who exactly is an employee. If someone is working on my property, but the law does not consider that person to be my employee, then I do not owe that person Workers’ Compensation benefits. States use several criteria to determine whether two parties are in an employer-employee relationship. These are similar to the criteria the Internal Revenue Service uses, such as control over when and how work is performed.

Typically, state regulators do not find a construction worker to be an employee of a project owner. The same cannot be said about independent contractors and employees of subs, however. Some sole proprietor subcontractors who suffer worksite injuries claim Workers’ Compensation benefits under the policies of the contractors who hired them. Often, state Workers’ Compensation law judges rule that these individuals were acting as employees of the hiring contractors, not independent contractors.

In addition, many state laws require an independent contractor who hires a sub to provide Workers’ Compensation benefits to the sub’s employees if the sub fails to obtain insurance. The injured subs or their employees end up collecting benefits even though that was never the intention of the hiring contractors. Consequently, insurance companies can and do charge independent contractors additional premiums when they find that uninsured subs have worked for them.

In a worse case scenario, both the independent contractor and the sub may fail to buy Workers’ Compensation insurance. Leaving aside the legal problems that will result for the employers, this leaves injured workers without sources of the benefits to which they are entitled. Their logical recourse is to sue the project owner. They may seek damages for an alleged failure to maintain a safe worksite or for negligence in the hiring and supervision of contractors. Since the project owners are not the employers of these injured workers, their own Workers’ Compensation policies will not help. Rather, they will have to seek legal defense and the payment of any awards from their liability insurance companies.

For these reasons, project owners should insist and verify that all contractors working on the job, including subs, carry their own Workers’ Compensation insurance. Independent contractors should do likewise with the subs they hire. Project owners may want to supplement their protection by making the independent contractors responsible for verifying that the subs have insurance, and by requiring the independents to hold the owners harmless from any lawsuits resulting from workplace injuries.

Construction is dangerous work. Every contractor setting foot on a job site should carry its own Workers’ Compensation coverage, whether the law requires it to or not.

BGES Group’s office, located in Larchmont, NY is a full service insurance agency offering, Property, Liability, Umbrella Liability, Business Auto, Bid & Performance Bonds, Inland Marine, Worker’s Compensation, New York State Disability, Group Health, Life insurance, Personal lines and Identity Theft.

BGES Group are Worker’s Compensation Specialists for the States of New York, New Jersey and Connecticut – Issues we address: 1) Lowering pricing – we have specialty programs that can save you up to 40%; 2) Finding a new company; 3) Being cancelled or non renewed; 4) Audit disputes; 5) Company creating fictitious payroll at audit time; 6) Lowering high experience modifications factors; 7) Misclassification of payrolls; 8) Lowering or eliminating renewal deposits;   9) Getting coverage when you’ve been without for a few months; 10) Covering multiple states under one policy; 11) Eliminating 10% service or policy fees; 12) Timely issuance of certificates; 13) Always being able to get someone on the phone or by email when you need to.

Special Contractor Insurance Programs (NY, NJ, CT) – We we have 50+ insurance companies to market your general liability, umbrella liability, business auto, workers compensation, bid & performance bonds and group health coverages.  We help contractors set up proper risk transfer mechanisms.  If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer mechanisms, subcontractor screening, ways to lower your insurance costs that lower them.                     Contractors Make More Sales – Close more sales with easy, affordable financing options for your customers.  Everything can be done from your phone.  Thirteen banks to get financing from.  No hidden fees. Click here to learn more.

Identity Theft – Over the past year hundreds of thousands of people have had to deal with identity theft.  This has become such a huge problem so we now offer Identity Theft Protection. We heard stories of kids going for car loans and learning they owe $200,000+ to companies they never heard of.  Under our program you can protect yourself, spouse and children.  Anyone you know can purchase this protection though our plan!  Click here to learn more or sign up.

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If you would like to speak with us call Gary Wallach at 914-806-5853 or click here to email or click here to visit our website.

Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY 10538

e-mail: bgesgroup@gmail.com

website: http://www.bgesgroup.com

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