This Insurance Can Help You Survive Another Business’s Disaster

Posted on November 9, 2020November 9, 2020 by BGESGroup

In October and November of 2011, floods inundated large parts of central Thailand, including thousands of factories that made everything from automotive parts and hard disk drives to eyeglass lenses and air conditioners. In addition to the human and economic cost in Thailand, the disaster affected businesses around the world.

Carmakers in Detroit shut down because they could not get the parts they needed and half of the world’s hard disk drive production was wiped out, leaving computer manufacturers with stalled assembly lines. When disasters like this occur, businesses around the globe feel the effects.

In addition to making advance arrangements for alternative suppliers, businesses can protect themselves by purchasing two types of insurance coverage: Contingent business interruption, and supply chain insurance.

Contingent business interruption

Contingent business interruption insurance, also called business income from dependent properties, pays for a business’s lost profit plus continuing expenses when it must slow or stop operations because of damage to another business’s property.

These other businesses can be customers or suppliers. For example, if a motorcycle dealership was left with no bikes to sell because its supplier in Japan suffered a fire, the insurance would make up part of the lost income.

The damage must result from a cause of loss that the insurance policy covers, such as fire or a hurricane. This is important because standard property insurance policies do not cover losses caused by catastrophes such as floods and earthquakes.

Supply chain coverage

Supply chain insurance takes contingent business interruption a step further. It covers income lost because of damage to a supplier’s or customer’s property. However, it also covers losses resulting from events that do not cause physical damage. These may include:

Labor disruptions
Production process problems
Trade disputes
Wars
Political turmoil
Closed roads, bridges, railroads and shipping channels
Public health crises
Actions by regulators
Financial difficulties

Businesses often have different tiers of suppliers, with key suppliers in the top tier and less important ones in the lower tiers. It is common for them to insure only the top tier.

However, insurers are increasingly offering multi-tier coverage. This applies to the business’s entire supply chain. Multi-tier coverage provides a more comprehensive solution for the business while also spreading out the insurer’s risk.

Some insurers offer options. One lets policyholders choose between measuring losses in terms of gross earnings or number of units from the supplier. Some also offer agreed-value coverage, which eliminates penalties for buying amounts of insurance less than the amounts of value at risk.

Businesses should determine where they are vulnerable to supply chain losses and develop back-up plans for dealing with unexpected disruptions. These could include reserves of the needed supplies and contracts with alternative suppliers.

Insurance can help the business recover from a supply chain loss after the fact. Advance planning can help make that loss as small as possible.

If you would like to know more about business interruption insurance, don’t hesitate to contact us.

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) Replacing policies that are 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.

Need More Work, Customers, a Plan B To Generate Massive Cash Flow To Cover Business and Personal Expenses? 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

Home-Based Business Not Covered by Homeowner’s Policy

Posted on November 9, 2020November 9, 2020 by BGESGroup

With recent advances in both technology and the internet, and many people working from home or having been laid off due to the COVID-19 pandemic, many Americans have or are planning to start a home-based business.

But will your homeowner’s policy cover the risks of a home-based business? In nearly every case, the answer is no.

Exceptions exist in the form of special endorsements, such as an endorsement to run a child-care operation from your home, but fewer and fewer companies offer such endorsements.

Even with a special endorsement, policies may give a very limited amount of coverage for business property, like computers and other electronics. The bottom line is, nearly all homeowner’s policies clearly exclude business operations and not having a proper coverage in place can leave you with uninsured exposure. This is why you need separate business insurance to cover your home-based business risks.

Business insurance

Home-based business owners may feel that they don’t need coverage because nobody steps foot on their premises. Even if this is true, liability claims often happen away from the business premises. Business insurance covers you in situations where someone takes action for information on your website, or if someone is injured by the product, or service, you provide.

Off-premises injury can occur when someone trips on or is injured by property you have taken into the field, such as to a trade show or event. A business policy will cover these injuries as well as meet the insurance requirements of most trade shows and events you may attend.

Competitors and customers both may sue a business owner for personal injury. Business policies include coverage for personal injury lawsuits, should someone take legal action against you for things like libel or slander.

From a property standpoint, any business property you may have in your home is usually excluded or has very limited coverage under a homeowner’s policy. Getting coverage to protect your computers, equipment, furniture, inventory and any other physical assets helps keep your business in operation with minimal disruption and financial loss.

A business policy also usually covers loss of income, which is payment for income you did not earn as a result of a loss covered under your policy. Policies may also include coverage for things like valuable papers, damage to property of others, property coverage off-premises and a number of other additional coverages.

A business owner’s policy includes the coverage described above and is specifically designed to protect the unique interests and property of the owner of a business. This package policy includes nearly all of the coverage you need.

Other coverages

However, if you are providing some kind of professional advice, consulting or other non-tangible professional services, you may also need a professional liability policy. This is also known as errors & omissions insurance. In addition, if you have any employees, you are probably required by law to get workers’ compensation insurance.

Depending on the type and size of business you own, you may have yet further insurance needs.

The takeaway

Hoping that your homeowner’s policy is going to cover you in the event of a claim will leave you frustrated if your business experiences a loss.

Businesses have a much higher risk than a homeowner’s policy allows for, and homeowner’s claims adjusters will quickly deny coverage for business-related claims in the event of a loss. Talk to us today to explore your home-based business insurance needs and options.

Need More Work, Customers, a Plan B To Generate Massive Cash Flow To Cover Business and Personal Expenses? 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

Injury and Illness Prevention Plans Save You Money, Period!

Posted on November 9, 2020November 9, 2020 by BGESGroup

Employees are your most valuable assets, but many businesses overlook the importance of having a workplace safety program in place to protect them.

Loss control is about employers caring for their workers’ safety. Successful loss control programs are means of reducing injuries and the severity of a potential accident.

If you want to reduce the costs and risks associated with workplace injuries and illnesses, you need to address safety and health right along with production. You should start by writing a plan and see that it is put into practice. Specifically, that means creating and implementing an Injury and Illness Prevention Program.

The IIPP will identify what has to be done to promote the safety and health of your employees, and the safety of your worksite. Elements of your IIPP should include:

Assignment of responsibility
Communications
Compliance
Inspections
Investigations
Correcting unsafe conditions
Training
Record-keeping.

Taking this approach to loss control will make the workplace safer, decrease workers’ compensation and overtime costs, reduce turnover rates, and minimize the risk of Occupational Safety and Health Administration fines – all of which in turn will increase productivity and profits.

Loss control starts with an authentic commitment from management. You should also ensure that supervisors, managers and employees are all on board and, together, the collaborative teams will achieve success.

Hazard assessment, evaluation, action-planning, problem-solving, implementation, record-keeping and documentation are the steps for a successful loss control plan.

Open communication is vital

Open communication with employees is important to facilitate a successful loss control program. Employee cooperation is connected to everyone understanding what the program is all about, why it is important to them and how it personally affects them.

Consider different channels via which your workforce can be informed, including meetings, e-mails, newsletters or text messages. Training is an important aspect of your program to ensure everyone has a good understanding of workplace safety.

Records are an important part of your safety plans. Records that should be maintained include:

Training
Employee injuries
Accident/injury investigations
Inspection records/corrective actions
OSHA 300 logs (where required)
Job analysis
Safety meetings
Equipment and vehicle inspections
CPR/first aid training
DMV driving records.

The takeaway

Remember to update and maintain all your programs at least once a year and/or if there are any changes.

If you are ready to make the commitment of reducing injuries and illnesses and managing claims, you can expect your costs to go down and your profits to go up.

Need More Work, Customers, a Plan B To Generate Massive Cash Flow To Cover Business and Personal Expenses? 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

How to Streamline your Insurance Policy Audit

Posted on November 9, 2020November 9, 2020 by BGESGroup

Are you due for a workers’ compensation premium audit? Audits are how insurance rates are determined, and it’s possible that an audit will uncover information that can actually save you money. In any case, it pays to be prepared. These five tips can help you get ready.

Let your broker know when there are changes in your staffing, payroll or areas of operation. This is important not just at audit time but all the time. Your rates are based on variable rating information, including the number of employees, job classifications, the states in which you operate, etc. Updated information results in more accurate premium assessments.
Get your records ready. Your auditor will need to see records such as federal and state tax returns, ledgers, checkbooks, contracts and employee or contractor tax documents. If you prepare your records in advance, you’ll speed up the audit process.
Make sure you break out various types of compensation in your records. For example, to set your premium, your broker considers pay but not contributions to employee benefits packages and other perks, so it’s important to make sure your records are clear on the various types of compensation. Also make sure overtime pay is clearly defined since it’s classified as regular pay for workers’ compensation insurance purposes.
Ensure that contractors have their own insurance. This is important not only from an audit standpoint but from a liability prospective as well. If an uninsured contractor has an accident while performing work on your behalf, you can be held liable. If an audit identifies contractors for whom you don’t have certificates of coverage, you can be charged for their premiums.
Remain on hand to answer questions. As your auditor reviews your material, he or she may have questions or need additional data. If you are available to provide answers, your audit will be completed more quickly.

By following these tips, you’ll be more prepared for your workers’ compensation premium audit. A fast, efficient audit process can save time for both you and your auditor, so it pays to be prepared.

Need More Work, Customers, a Plan B To Generate Massive Cash Flow To Cover Business and Personal Expenses? 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

Coronavirus Could Trigger Multiple Insurance Policies

Posted on November 9, 2020November 9, 2020 by BGESGroup

Coronavirus Could Trigger Multiple Insurance Policies

COVID-19 is forcing businesses to face a number of risks, liability and insurance implications.

Companies could seek coverage for a variety of claims stemming from the outbreak, including workers’ compensation, business interruption, liability and more.

And, now that it is a pandemic, the economic fallout may be expansive – hitting your company’s operations in the form of lower sales or supply chain disruptions.

Now is a good time to understand which of your insurance policies could come into play.

Workers’ compensation

Workers’ compensation policies generally extend insurance benefits to employees for injuries and illnesses “arising out of or in the course of employment.”

That wording makes it difficult for most workers to file a claim if they suspect that they got the coronavirus at work, presumably from another employee, customer or visitor to the workplace. But if an employer knows that the virus is in the workplace, coverage could apply.

Workers’ compensation could come into play in the following instances:

Health care personnel who work where there are patients being treated and tested for COVID-19 would have a strong claim if they contracted the virus.
Employees who travel overseas for business and contract the illness.
Employees who are exposed to the illness at work by an infected co-worker.
Employees who are assigned to work in a location with infected parties.

However, workers’ comp insurance would likely not cover employees who are working on assignment abroad for more than a short time.

Business interruption

One major fallout from the spread of COVID-19 is that it has cut into global supply chains, forcing manufacturers around the world to suspend production. This has been especially true for companies that rely on China for their parts and materials.

But now that the virus has exploded in a number of countries, the threat to supply chains will only increase. This has already started affecting companies in the United States. If your company’s operations are affected or stopped due to the virus, you may be wondering if the business interruption coverage in your property policy or business owner policy may pay out.

Business interruption coverage replaces income that was lost due to a disaster, such as a fire on the premises of the company or one of its suppliers, or a hurricane that hinders a company from operating.

However, any hit to your income from coronavirus would not be physical damage, which is a prerequisite for this coverage. Viruses and disease are typically not an insured peril unless added by endorsement. In many cases, the policy may specifically exclude coverage for viruses and disease.

There is potential coverage through communicable disease coverage under proprietary insurance carrier forms if the insured is closed by a “public health authority” order for closure, decontamination, etc. But it’s worth noting that these usually require the order to happen, so the insured cannot voluntarily decide to close and then claim coverage.

General liability

In terms of liability, a third party – customer, vendor or guest – could claim they were sickened on your property and sue your business for negligence for failing to provide a clean facility, which could trigger your commercial general liability policy.

Any company that deals with the public or customers, like a retailer, restaurant, hotel, daycare center or a gym, would be at greatest risk for this type of action.

While the chances of them winning such a case would be small, you could still face legal bills, which your CGL policy would typically cover. If there is coverage, it would come under the policy’s “bodily injury” portion.

Some CGL policies exclude claims arising from a pandemic, virus or bacteria, so read your policy carefully. Many insurers also include broadly worded pollution exclusions that could preclude or limit coverage.

Business travel accident insurance

This insurance could cover employees who travel on business domestically or internationally, foreign employees of U.S.-based businesses and U.S. employees on offshore assignments. The insurance provides:

Traditional accidental death & dismemberment coverage.
Emergency evacuation, repatriation, and out-of-country medical benefits that cover costs for the treatment and transportation of sick or injured employees.
Optional coverage for unexpected medical expenses.

Need More Work, Customers, a Plan B To Generate Massive Cash Flow To Cover Business and Personal Expenses? 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

Why Slips, Trips and Falls Are So Hard to Avoid

Posted on November 9, 2020November 9, 2020 by BGESGroup

Slips, trips and falls constitute the majority of general industry accidents, cause 15% of all accidental deaths, and are second only to motor vehicles as a cause of fatalities.

With those stark realities, any employer that fails to guard against these preventable accidents is asking for an injury to occur. And despite all of American employers’ best efforts, slips trips and falls:

Result in more than 95 million lost work days per year (or about 65% of all work days lost).
Account for nearly 25% of all reported injury claims every year.
Accounted for a 17% increase in the number of deaths from such accidents in 2018, compared to the prior year.

Obviously, there is a disconnect between employer safety measures and the outcome.

A December 2018 survey of almost 1,300 safety professionals, carried out by Safety Daily Advisors, found the “big three” causes of slip, trip and fall incidents are:

Human factors – 54%
Wet or slippery surfaces – 25%
Poor housekeeping – 16%

While you can put in place stringent safety procedures, require fall-protection equipment and install non-skid surfaces, there is one thing that is hard to control: the human factor.

That’s why it’s important to instill in workers the importance of:

Immediately cleaning up spills,
Closing file drawers when done,
Picking up loose items from the floor,
Keeping aisles and walkways free from clutter, and
Keeping their personal workspace clean and orderly.

But it doesn’t pay to tell them once. Regular reminders can help instill safety mindedness like the above.

Slippery surfaces a major challenge

Slippery surfaces are one of the biggest challenges a business faces in protecting its employees – and customers, for that matter. It’s important, then, that you know in which types of area slippery surfaces are likely to occur. You should pay special attention to these high-risk areas:

Parking lots, especially in areas where water is pooling,
Sidewalks,
Food preparation areas, where grease and water can cause hazards, and
Non-carpeted entryways or lobbies.

Conduct walkway audits to identify safety issues, so that you can develop plans to eliminate them. The plans need to account for varying weather conditions.

Besides those physical aspects, also remind employees to wear proper shoes when it’s raining and not to rush when walking in those areas during rainy days.

The problem is that walking is something we do almost automatically and these days many people are distracted, reading and texting on their smartphones while walking, or maybe lost in thought about their weekend plans.

Distraction results in blindness to their surroundings. Moreover, their emotions, sense of urgency, fatigue or complacency can take over.

But training your employees to be more mindful in areas with slip, trip and fall hazards is not as simple as telling them to “pay attention” or “don’t get distracted.”

Behavior-based safety approach

Changing behavior is not easy and it takes time and commitment, but the best solution is a behavior-based safety approach.

The first step you need to take is to help your employees become aware of unsafe habits and analyze their mistakes. They should:

Walk with caution and make wide turns at corners.
Test footing before committing weight.
Open doors with caution.
Use railings on stairs.
Ensure there are three points of contact on ladders and equipment.
Look before moving.
Wear appropriate footwear.
Be aware of weather forecasts.
Push (rather than pull) carts to allow a better line of sight.
Keep eyes and mind on the task in hand; no multitasking.
Not text or talk on phone while walking.
Be alert for trip hazards.
Recognize dangers of walking on ice.
Take designated walkways, rather than shortcuts.
Not wear sunglasses in low-light areas.
Report all potential hazards.

It will take time and effort to change employees’ perception of risk and personal responsibility. But with a proactive approach that builds a culture and fosters an attitude and behavior that puts safety first, workplace injuries will be reduced.

On your end, you can:

Implement good housekeeping practices.
Provide proper lighting, traction aids and require safe footwear.
Keep walking surfaces clean and in good repair.
Install railings and guards.
Display warning signs in high-risk areas (‘slippery when wet’-type signs).

Need More Work, Customers, a Plan B To Generate Massive Cash Flow To Cover Business and Personal Expenses? 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

Filing Late and Other Ways to Have a Claim Rejected

Posted on November 9, 2020November 9, 2020 by BGESGroup

One of the biggest mistakes you can make if you incur damage to your business premises is to wait too long before filing the claim with your insurer.

The owners of a hotel in Dallas learned this the hard way when a U.S. Circuit Court of Appeals held that the business had waited too long to file a claim with its insurer after suffering hail damage.

The court ruled that because the hotel had waited more than 19 months to file the claim, it was impossible for the insurer to ascertain exactly when the damage had occurred.

The hotel’s property policy required that the insured make “prompt notice” of any claims.

But the insurer rejected the claim when it received it for a hailstorm that had happened more than a year and a half earlier, on the grounds that it could not determine what had caused the damage or when the damage occurred. This was crucial since the policy had expired 17 months earlier – two months after the storm had allegedly damaged the hotel.

Believe it or not, filing late is a common problem and it is one of many mistakes business owners make when filing claims. The following are surefire ways to risk having your claim denied or disputed by your insurance company:

Not contacting your insurer immediately

While most insurance policies state that you must notify the company promptly of a loss, what counts as “prompt” may be a little vague. However, you can wreck your claim by reporting a loss so late that it “prejudices” the insurance company.

For the most part, you should take steps to notify your insurer as soon as possible after you become aware of a loss.

Failing to document the damage

Take pictures and itemize everything that was damaged. Often, you will have to make repairs immediately to prevent additional damage, or move machinery to a new location. If so, be sure to photograph the original scene to document how it was before you started your clean-up effort. Also take photos of any repairs you make.

Disposing of damaged goods

If your business clean-up includes removal of items such as water-damaged merchandise, flooring or insulation, keep it all, even if it has to pile up in the parking lot. The damaged materials are all evidence of the impact of the disaster on your business.

Not appealing an insurer’s low estimate

After the claims adjuster inspects the damage, the insurance company will give you a damage estimate. If you think it’s too low, you can appeal. We can help if you feel the estimate is too low.

But some businesses will hire an outside adjuster to make a second estimate, and then the claim will go to mediation for a final resolution.

Not reading your policy

You should understand exactly what your policy covers. For the most part, commercial property policies will not cover flooding or earthquake damage. That kind of coverage will often require a separate policy or rider.

Not being prepared

If your business suffers damage, you’ll be better off if you know what to do in advance. Some advance steps you can take are:

Reviewing your policy to make sure you have adequate coverage.
Knowing where your insurance policy is kept.
Keeping an extra copy of the policy off-premises or in a safety deposit box.
Having our telephone number and e-mail address in the contacts on your smartphone, so you can call us immediately if you suffer a claim.

A final word…

Filing a claim is usually not a difficult process, but you should be prepared in advance, like making sure you keep good records of all your assets, including receipts, payment schedules and more.

Finally, if you are unsure whether you should file a claim on any of your commercial policies, you can always give us a call to discuss the event and we can assist you.

Need More Work, Customers, a Plan B To Generate Massive Cash Flow To Cover Business and Personal Expenses? 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