Monthly Archives: October 2021

Why Your Business May Need Pollution Coverage

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Almost all businesses have some risk of being sued or cited for pollution, even the most benign, such as a property owner.

Pollution exposures for many businesses are obvious – like dry cleaners from the chemicals they use, to printing companies from the ink they use. And any manufacturer would face some type of pollution exposure as well, in addition to warehouse operators and contractors

Think you’re not exposed? Say you own a business property, even an office building for example, you could have pollution exposure such as:

  • The existence of lead (paint and pipes) or asbestos.
  • Releases of pollutants by tenants from improper or inadequate storage or disposal of lubricant oils, primer or lab waste material.
  • Inadequate containment in loading areas that could lead to the release of pollutants.

However, as the risks have grown for pollution liability, most commercial general liability policies now exclude pollution coverage. It’s something to be aware of for most any business, particularly as the list of what is considered to be a pollutant has grown dramatically.

The exclusion

The easiest way to think of a pollution exclusion is that it can apply to a contaminant. Virtually every commercial general liability policy includes a pollution exclusion.

These policies used to cover pollution but as the risk for being sued for pollution has grown, so then has the exclusion.

The standard policy has two pollution liability coverage forms. It also has a special form for underground storage tanks.

The current version of the Insurance Services Office (ISO) commercial general liability form has pollution coverage narrowed down to a few covered occurrences, typically including:

  • Certain off-premises exposures
  • Certain product-completed operations
  • Smoke, fumes, soot, vapors from your heating equipment or from a fire in your building
  • Gas or fumes from materials you bring into a work site.

The broad definition of pollution

Consider these examples:

  • A food company in Wisconsin recalled a batch of listeria bacteria-contaminated sandwiches and filed a product recall claim with its insurer. However, the insurer denied coverage based on the policy’s pollution exclusion. The court sided with the insurer, concluding that bacteria were an excluded ISO form pollutant.
  • A hospital in California was sued after an outbreak of legionnaire’s disease was traced back to a drinking fountain in the hospital lobby. The insurer rejected coverage for the lawsuits, citing a fungus and bacteria exclusion in their general liability policies.

The solution

What are the solution options when it comes to the pollution insurance question? You can have a specific commercial liability form or a separate pollution liability policy.

Pollution liability insurance is designed to address claims and suits involving pollution losses in which it is alleged that the insured is responsible, as well as property losses related to pollution on owned or occupied property.

Typically a pollution liability policy covers three risks:

Premises pollution liability — Covers first-party claims associated with pollution on the premises of the insured. (Example: It is discovered that instead of clean soil, contaminated soil was used to fill a space formerly occupied by an underground storage tank that leaked. The cost of remediation would be covered.)
It would also cover third-party claims associated with the pollution (like when a person falls sick due to the pollution).

Contractors pollution liability — Covers bodily injury, property damage and remediation costs for which a contractor who causes pollution is liable.

Errors and omissions liability — Covers losses that result from wrongful acts performed in conducting professional services, such as a soil engineer erroneously rendering an opinion that there is no soil pollution, when in fact, there is.

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.

Special Contractor Insurance Programs (NY, NJ, CT) – We we have 60+ 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. If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer, subcontractor screening, ways to lower your insurance costs.

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.

 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 – 2021 – BGES Group

Don’t Insure Your Vacation Property Like Your Home

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Are you considering buying a vacation home … a nice place by a lake or up in the mountains where you can go to get away from it all?

Just as when you bought your primary home, you’ll need insurance that is specific to a vacation property — a place at which you won’t be living permanently. So for that reason, you’ll need a policy that is slightly different from a typical homeowner’s policy.

What you need is seasonal and vacation property insurance, which provides coverage for accidental damage, liability and loss. Insurers normally have a standard policy, but they will often allow you to customize the policy to meet your specific needs and situation.

One of the things you need to consider before securing insurance is whether you plan to rent the property out in addition to staying there yourself on occasion.

Secondary-home endorsement

Some insurers will let you add an endorsement to your primary home’s policy that covers your vacation home, and it’s often the most cost effective way to insure your property.

One issue though with these endorsements is that the coverage level might not be as extensive as with a separate insurance policy. That is particularly true if the home is at greater risk of being damaged by natural disasters like hurricanes, brush or forest fires, or flooding.

Renting it out?

Vacation rentals can be monthly, weekly or even nightly, so they are often considered a different type of activity than is covered under a homeowner’s policy.

A homeowner’s policy typically does not cover vacation rental activities, nor does personal liability coverage.

Vacation rental insurance will cover many of the same things your homeowner’s insurance does, but it offers some additional protection.

Here we’ll outline the three steps to insuring your vacation rental property in order to better preserve the long-term future of your investment:

Liability: Liability insurance protects you against lawsuits brought against you by your guests. The risks of liabilities imposed by lawsuits and similar claims, as well as property damages, will be covered depending on your insurance policy. In most cases, liability insurance will cover you even if you’re found legally responsible for an accident that causes injury or damage to another property.

Building and contents: The next biggest risk you have is the actual property itself. If your renters happen to start a fire or burn your property down, this aspect of your insurance policy will ensure your home and contents are replaced at no cost to you.

Building income: The third exposure you have as a vacation rental owner is business income. After all, your rental property is a business which generates income, therefore you’ll need to protect the income your business makes.

Factors that can affect insurance

Location – Rental properties in at-risk areas – like for the aforementioned natural disasters – may see higher rates. Unfortunately, the attributes that make a vacation property appealing will often result in higher insurance costs.

The beach, for instance, will be at risk for wind and storm damage as well as flooding, while a cabin in the forest can burn down during a forest fire.

You need to consider the price of insurance and the possibility of higher deductibles for homes in these areas.

Property type – Is your vacation property a single-family home, condo or townhome? Condominiums and townhouses usually have lower insurance premiums. If general upkeep for the exterior and some interiors is covered by fees, insurance companies may factor that in while writing a policy.

Facilities and amenities – Insurance companies take into account the extra features of a property that may expose you to more liability, such as pools and hot tubs. You can also purchase extra liability coverage for these items.

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.

Special Contractor Insurance Programs (NY, NJ, CT) – We we have 60+ 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. If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer, subcontractor screening, ways to lower your insurance costs.

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.

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 – 2021 – BGES Group

Factors Pushing Commercial Property Rates Higher

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Commercial property insurance rates are continuing to climb, as the segment faces a number of headwinds that have pushed claims costs to new heights.

There are number of factors that are colliding, including the frequency and severity of claims from extreme weather, the cost of rebuilding, rates for commercial properties are not keeping pace with claims costs, and more.

The end result has been a steady increase in property rates across the board, but businesses with operations in areas that are more susceptible to natural disasters are seeing the highest increases.

As a business owner with commercial property, you’ve probably already seen property rates increase, and you should be prepared for further rate hikes in the coming year. Here are the main drivers of these increases:

Mounting natural catastrophes

The number of natural catastrophes hitting the U.S. continues increasing, as does the cost of those disasters, which are affecting more and more properties around the country. Depending on the part of the nation a property is located, it can be exposed to:

  • Hurricanes,
  • Wildfires,
  • Tornadoes,
  • Hail,
  • Flooding, and
  • Convective storms.

There has also been an increase in civil unrest, which often results in property damage to businesses. Insured property losses in the past decade are the most expensive in history, reaching $74.4 billion in 2020. That’s compared with:

  • $37.7 billion in 2019
  • $60.4 billion in 2018
  • $131 billion in 2017

Five of the top 10 most costly catastrophe years for the insurance industry have occurred since 2011. On top of that, 2020 set the record for the most major natural catastrophe events to hit the U.S. in a single year (22 of them).

Reconstruction costs

Reconstruction costs have skyrocketed during the past five years, averaging 5% a year, according to the Associated Builders and Contractors analysis of Bureau of Labor Statistics data.

Lumber prices rose by 73% between April 2020 and July 2021, greatly increasing rebuilding costs. On top of that, iron and steel products jumped 15% in price during the same period, and steel mill products by nearly 7%.

Construction labor shortage

Like most sectors, the construction industry faces a serious labor crunch, which is resulting in a shortage of contractors willing to take on jobs. And many have backlogs that stretch out more than six months.

According to the U.S. Chamber of Commerce Commercial Construction Index, this shortage is leading to real-world setbacks for contractors:

  • 68% of contractors say they are asking skilled workers to do more work.
  • 56% report a challenge in meeting project schedule requirements.
  • 50% of contractors are putting in higher bids.
  • Over a third (35%) report turning down work due to skilled labor shortages.

Property rates are inadequate

Despite the fact that rates have been increasing for the last five years, insurers are still struggling to keep up with the rapidly rising cost of claims as well as the number of claims they are seeing.

Those factors have made it difficult for the industry to peg pricing at the right level, resulting in a string of losses in property insurance for most carriers. As the industry struggles to get back to profitability, insurers will have to continue boosting rates.

Reinsurance rates

A portion of the property insurance rate gains can be attributed to insurance companies dealing with higher reinsurance costs. Insurers buy reinsurance to pass on claims costs from catastrophic events, in order to reduce their overall risk.

The takeaway

While commercial property insurance rates continue to increase, there are some steps that businesses can take to try to affect their premiums.

If you have an older building, you can:

  • Replace your mechanical, electrical and plumbing systems with newer, code-compliant variants.
  • Seismically retrofit your building.
  • Replace the roof system.

You can also safeguard your building against location-specific hazards (for example, by creating a defensible space and using fire-resistant roofing in wildfire areas).

Also, electrical fires are the number-one cause of property damage, so you should consider installing fire-protection systems such as sprinklers and fire hose cabinets.

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.

Special Contractor Insurance Programs (NY, NJ, CT) – We we have 60+ 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. If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer, subcontractor screening, ways to lower your insurance costs.

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.

 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 – 2021 – BGES Group

New Rules Cast Shadow over Ransomware Payments

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A recent announcement on ransomware from the federal government has put cyber insurance companies and their policyholders in a bind.

If the targeted business doesn’t pay the ransom, it can’t operate. If it and its insurer do pay the ransom, the government may penalize them both, and the fines could be hefty — as much as $250,000 per violation in “non-egregious” cases, under new U.S. Treasury guidelines.

This news comes as ransomware attacks are increasingly hitting small businesses. A recent study by cybersecurity firm NetDiligence showed that, over the past five years, small and medium-sized  businesses have made insurance claims for ransomware attacks at three times the rate of hacking events, with insured ransom payments averaging $247,000 plus $350,000 in recovery costs.

The fallout and what’s happening

An insurance company that wants to operate in good standing may not be willing to risk incurring penalties by paying the ransom as part of their coverage.

The announcement has already caused insurers to reject applicants who have been hit with certain ransomware strains, according to one cyber-security expert.

He said insurers and the Treasury Department communicate frequently to determine the risk that certain payments may violate the law.

The Treasury Department has historically discouraged victims from paying ransoms, saying that ransoms enable criminals and adversaries to “profit and advance their illicit aims.”

Recently, the department went a step further: It will start penalizing anyone who pays or facilitates payment of ransoms to certain individuals, groups and countries. That could include the victimized businesses and their insurance companies.

The department believes that some ransom payments have gone to individuals and entities named on the Specially Designated Nationals and Blocked Persons List. This list, created after the September 11, 2001 terrorist attacks, identifies those suspected of terrorist activity.

Federal law prohibits making or facilitating payments to anyone named on the list or to countries on the terrorist watch list, such as Cuba, North Korea and Iran. Those who make payments to these individuals, entities or countries face civil penalties even if they were unaware that the recipient was on the lists.

The department’s Office of Foreign Assets Control is authorized to fine everyone involved in making an illegal payment, including the insured business and the insurer.

Advice from the Feds

The Treasury Department has urged businesses to take mitigation steps to prevent attacks. Businesses that implement cyber-security practices such as employee training, system monitoring, multi-factor authentication and installing anti-malware protection on their servers are less likely to be victimized.

In addition, the department said it would look more favorably on businesses that have these protections in place and end up having to pay ransoms anyway. Organizations that self-report possible impermissible payments to law enforcement will also be considered as having mitigated the risk.

Ransomware has become a plague for all kinds of organizations. Taking defensive measures is the best way to avoid having to make an insurance claim and accidentally breaking the law.

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.

Special Contractor Insurance Programs (NY, NJ, CT) – We we have 60+ 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. If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer, subcontractor screening, ways to lower your insurance costs.

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.

 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 – 2021 – BGES Group

Are You a New York Contractor Who Has Lots of Exclusions in Their Liability Policy and Wants a Better Policy and Boutique Services?

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Most New York contractors are looking for ways to reduce their General & Umbrella Liability rates.  Some like Restoration and Roofers pay exorbitant rates!

 

Many have a “Labor Law Exclusion” which cuts their cost in half but places them in a very precarious position.  This exclusion also bars them from taking on lots of work.

 

There are a bunch of exclusions like sub contractor, height, exterior work that get included that most contractors are not aware of their specific language.  Worse, their brokers don’t understand either!

 

Finally, contractors are asked to include various parties as additional insured’s and waiver of subrogation.  Unbeknown to them, their policies are not covering them properly.

 

Many of you are with agencies that insure hundreds even over 1,000 contractors.  At first glance this is impressive until you realize the people who service your account don’t have time to think, their operation is one big factory and how they service your account is “Hazardous To Your Wealth!”

 

Big is not better!  Dealing with factory agencies is not better!  Dealing with inexperienced people is not better especially when it comes to large amounts of YOUR money!

 

At BGES Group we have over 42 years experience and designed our office as a “Boutique Agency” so clients are treated like “Royalty!”

 

In addition, construction insurance is our specialty so you’ll be dealing with the sharpest people around who know the ins and outs of insurance and who you will learn to really, really trust!

 

If you can get better coverage at lower rates, deal with a boutique agency, have a 42 year “Construction Insurance Expert” servicing your account and get the best of the best service, isn’t it worth picking up the phone and calling?

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.

Special Contractor Insurance Programs (NY, NJ, CT) – We we have 60+ 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. If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer, subcontractor screening, ways to lower your insurance costs.

 

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

e-mail: bgesgroup@gmail.com

website: http://www.bgesgroup.com

© – Copyright – 2021 – BGES Group

Getting a Divorce Doesn’t Mean Saying Good-Bye to Your Life Insurance

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Getting a Divorce Doesn’t Mean Saying Good-Bye to Your Life Insurance

Getting a divorce means making changes. Just about every aspect of your current lifestyle will be altered, and your life insurance needs are no exception. However, just because you’re getting divorced doesn’t mean you should drop your life coverage altogether.

If you and your ex-spouse don’t have children, and there isn’t anyone else relying on you for support, you probably won’t need as much life insurance as you did when you were married. But there are instances in which getting a divorce actually increases your need for life insurance, such as when:

  • You are the parent of dependent children, and you must contribute to their support.
  • The court approves a divorce settlement that requires you to carry a certain amount of life insurance with your ex-spouse as the named beneficiary, the proceeds from which will be used to support your children in the event of your death.
  • The coverage you previously had is terminated as a result of the divorce.

Changing your beneficiary

In addition to revisiting the amount of life insurance you carry, you may also want to change your beneficiary.

If your ex-spouse is the named beneficiary on your life insurance policy, and you plan on changing that designation, be sure you remain in compliance with your divorce decree.

If your settlement agreement requires that you maintain your ex-spouse as the beneficiary of your life insurance, you cannot legally remove them. Keep in mind that if your ex-spouse was designated as your beneficiary when you purchased the policy, and getting a divorce doesn’t necessarily alter that.

There are some states in which divorce automatically invalidates the ex-spouse as the designated beneficiary. However, don’t assume you live in one of them. Talk to your attorney and verify it.

Another point to remember is that specifying a change of beneficiary in your will doesn’t supersede the beneficiary designation stated on your life insurance policy. The only way to remove your ex-spouse as your beneficiary is to execute a change of beneficiary with your insurer. We can help you with the necessary paperwork.

If you do change your beneficiary, don’t name a minor child. Insurers will not pay the proceeds from a policy directly to a minor, and the probate court may require that a trust be established, and a guardian appointed, to manage the proceeds from the policy until the child becomes an adult.

If you are a recent divorcee, call us about evaluating your situation and recommending products that suit your current needs.

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.

Special Contractor Insurance Programs (NY, NJ, CT) – We we have 60+ 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. If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer, subcontractor screening, ways to lower your insurance costs.

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.

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 – 2021 – BGES Group

Life Insurance and COVID-19: What You Need to Know

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Life Insurance and COVID-19: What You Need to Know

The COVID-19 pandemic has millions of people looking carefully at life insurance. Policy sales were up almost 11% in the first quarter of 2021, compared to the same period a year ago.

Nearly one in three consumers nationwide say COVID-19 has made them more likely to buy life insurance in the next 12 months. But because it’s a new disease, many people have concerns and wonder if life insurance will cover a coronavirus-related death and whether they can get coverage if they have or have had COVID-19.

Here are the answers to those questions and more.

 

Does life insurance cover COVID-19-related death?

Yes, standard life insurance policies generally do cover deaths related to COVID-19 — as long as you did not misrepresent your health status on the application.

Furthermore, life insurance provides protection regardless of your vaccination status.

Can I get life insurance if I have COVID-19?

If you have an active positive test, you are symptomatic for COVID-19 or you have been exposed to the virus, you may have a hard time getting immediate coverage. Your carrier will probably delay coverage by two to three weeks, or until you have recovered.

So don’t wait until after you have a suspected exposure or a positive COVID-19 test to apply.

Rise in ‘no-exam’ applications

Before the pandemic, it was routine for carriers to require applicants to take an in-person medical exam.

But because applicants were concerned about social distancing, insurers now rely more on medical records and other alternative underwriting techniques. Except for very large policies, you may not have to take a medical exam at all.

 

Can I rely on workplace life insurance?

It’s important to have your own life insurance coverage, separate from your employer-sponsored policy. The group life insurance from your employer or trade union may be inadequate. Here’s why:

  • Coverage may be limited. Most financial experts recommend that young family breadwinners maintain about 10-15 times their annual income in life insurance. But many employer-paid life insurance policies cap out at just $50,000 — just a fraction of the total protection needed for most families.
  • You can’t take it with you. Your employer’s group life policy may not be portable. That is, you may not be able to take it with you if you leave the company, or the company shuts its doors.

What if I can’t pay premiums?

State insurance commissioners have generally encouraged insurers to work with struggling policyholders by extending due dates, waiving late fees, allowing “catch-up” payment plans, extending reinstatement periods, and other measures.

Some major carriers allow 90-day payment plans to allow policyholders to bring policies current without lapsing

Some states have mandated insurance companies to allow a forbearance period for those unable to pay premiums because of the COVID-19 pandemic. New York, for instance, requires insurers to allow policyholders experiencing financial hardship to delay premiums for up to 90 days on life policies.

If you have cash value life insurance, you can use the cash value to pay premiums to keep your policy in force. Note that this may reduce your death benefit, until you can replace your cash value in the policy.

How much life insurance do I need?

Every situation is different, but you can get a rough estimate by using the Life Insurance Needs Calculator at www.lifehappens.com.

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.

Special Contractor Insurance Programs (NY, NJ, CT) – We we have 60+ 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. If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer, subcontractor screening, ways to lower your insurance costs.

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.

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 – 2021 – BGES Group

How to Handle a Premium Audit

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How to handle a premium audit.

It might be hard to fathom any type of audit being beneficial, but when your insurer conducts a premium audit for your account, it can just as important to you as it is to your carrier.

When you were first issued your policy, the carrier looked at the estimated sales figures or payroll data that you provided to them. It calculated your premiums based on this information. Now that you have real numbers under your belt and actual experience, the information can be reassessed to determine the correct premium amount.

Depending on how your business operates and the size of your policy, there are several methods your insurance carrier can use to conduct your premium audit, including:

Mail — Your insurer will mail you an audit form and the instructions to complete it. Once completed, you will return the form by mail to your carrier.

Phone — Your carrier will hire an independent audit company to conduct your audit over the phone.

Physical — Your insurance company will usually conduct the audit at your business, but it could be conducted at an alternative location, such as your certified public accountant’s office.

Regardless of the method, the audit will typically include your disbursements and payroll journals, ledgers, tax and Social Security reports, state unemployment forms, and other accounting records being inspected. Depending on the audit, other documents could be involved.

The data is then used for determining and adjusting premium amounts (either higher or lower). If it’s higher, you may be asked to pay back premium for the months that you underpaid for coverage.

Be prepared

The best way to handle these audits is to be prepared, and that means keeping track of certain documents and records and having them conveniently accessible so you can produce them at a moment’s notice.

The most commonly audited policies are liability and all workers’ comp policies. The
audits collect exposure information estimated when the policy was written and compare it to the actual numbers.

Here are the main records you will need to produce:

Liability policies

  • Gross company sales
  • Independent contractor costs (insured and uninsured)
  • Payroll for certain types of exposures.

Workers’ compensation policies

  • Actual employee payroll
  • Cost of independent contractors if no certificate or proof of other coverage is provided.If you are notified that you will be audited, you can make the whole process easier and less stressful and hopefully end on a positive note if you follow these tips:


How to prepare

Once you’ve been notified that you’re up for an audit, there are a number of steps you can take before the auditor arrives:

  • Find out what the auditor will be reviewing by looking at their worksheets and past audit billing statements.
  • Determine which of your employees would be best suited to work with the auditor. Look for someone that’s both knowledgeable about the accounting records that will be used in the audit and about what work is done by various employees and departments.
  • Collect all the accounting records that will be used during the audit.
  • If you use subcontractors, make sure that you have their certificates of insurance on hand. Ensure that your documentation shows all the contractors have their own general liability insurance and workers’ compensation coverage.
  • Check that your payroll documents include a breakdown of wages according to class code, department and employee.

 

The day of the audit

  • Make sure you have all the applicable records easily available to the auditor. You might request the audit be conducted at your place of business.
  • Ask the auditor to explain any points that aren’t clear to you.
  • Request a hard copy of the auditor’s findings.

After the audit

Carefully assess the audit billing statement, comparing it to your original policy. Discuss the findings with us for assistance and advice.

Don’t agree to pay any additional premium dollars until after you have talked to us, you’ve made a list of all changes and discussed any problematic areas with the auditor.

Knowing what to expect and how to prepare is the key to a successful audit. Even if you end up being charged back-premium, it could be worse if you don’t keep accurate records. By regularly updating records that your insurer would ask for, you’ll be ahead of the game and you may identify changes that may affect your premium.

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.

Special Contractor Insurance Programs (NY, NJ, CT) – We we have 60+ 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. If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer, subcontractor screening, ways to lower your insurance costs.

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.

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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