Construction Firm Tips for Avoiding Insurance Disasters

When you’re in the construction industry you already have lots to worry about: Keeping your workers safe in one of the most dangerous industries, uninsured or underinsured subcontractors, and finding experienced employees from a shrinking pool of talent.

Not only that, but lawsuits lurk in any project, exposing you to serious losses that can threaten the survival of your business. For these reasons, it’s important that you understand your insurance coverages and that you know how to address any deficiencies that may exist in your risk management strategy.

To make sure that you are not left exposed, we recommend the following:

Choose the right insurance company We can help you find an insurance company with the experience in writing policies in your industry and the resources to tailor coverage to your needs. Remember, some large projects and lenders require that you are covered by only an A-rated insurer.

Don’t buy the cheapest policy If the policy price is significantly lower than other insurers, that may be a red flag. Make sure the insurer will be covering what the project owner, your lenders and other stakeholders require. If you find out your policy is deficient after you’ve purchased it, you’ll have to cancel it and buy a new one. There go your profits.

Understand your policy All policies have exclusions and you should understand what the insurance company will cover and what it won’t. We can sit down with you and review every line of your policy, including any additional insured endorsements or exclusions, so you know exactly what’s covered and what isn’t.

Don’t buy insurance you don’t need We can do a thorough review of your business and its risks with your help. It’s important your coverage meets your needs and that you don’t carry coverage for risks you’re unlikely to face.

Use the correct class codes  It’s easy to misclassify certain employees, and if you err it can come back to haunt you. When it’s time for renewal, go through your books and make sure you have job descriptions for all of your employees. Keep track of your staff so that you get it right the first time.

Also, keep track of new employees that you hire (or let go) during the course of the year, so that adjustments can be made to your policy.

Avoid the independent contractor trap  During the last few years, the IRS, the Department of Labor and a number of state agencies across the country have been cracking down on the practice of worker misclassification.

There are many implications for classifying someone who is an employee as a contractor, and all of them are costly. You could be looking at back taxes, owing additional workers’ comp premiums, lawsuits, and more.

Don’t understate payroll  If your insurer audits your business and they find that your numbers just don’t add up, you could end up having to pay additional premium or risk policy cancellation.

Understand how ‘claims-made’ coverage works “Claims-made” policies have lower up-front and ongoing costs and they only let you make a claim during the policy year during which a project is being built.

The biggest drawback of these policies is that if you have to file a claim years after the project is completed, you may be out of luck especially if you’ve switched insurance companies.

Check your subs’ insurance certificates Know whether or not your policy will cover subcontractors or if they need to carry their own liability coverage. Verify that any subcontractors you use have valid and current certificates of insurance.

Keep your policies current and up to date Many factors should prompt you to revisit your insurance policy: Hiring new employees, buying new equipment or vehicles, or opening a new office. These types of changes should prompt you to review your coverage with us to ensure you stay fully protected.

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.

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, Workers Compensation Premium Recovery, 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 – 2022 – BGES Group

New Employees Account for Large Share of Workplace Injuries

A significant share of overall workplace injuries occur during new employees’ first year on the job, according to a recent study.

The report by Travelers Cos., Inc. found that over a five-year period, injuries to new employees accounted for 35% of all workplace injuries. These injuries resulted in more than 6 million lost workdays, accounting for 37% of all lost workdays during the period.

First-year injuries were especially prevalent in four industries. They comprised:

  • 53% of claims and 47% of claim costs in restaurants,
  • 48% of claims and 52% of claim costs in construction,
  • 43% of claims and 38% of claim costs in services, and
  • 39% of claims and 41% of claim costs in transportation.

The most frequent causes of injuries to new employees were:

  • Overexertion (27%)
  • Slips, trips and falls (22%)
  • Struck by an object (14%)
  • Cuts and punctures (6%)
  • Caught in or between objects (6%)
  • Motor vehicle accidents (6%)

Thirty-eight percent of first-year injuries were strains and sprains resulting from those overexertion and tripping accidents. Fractures accounted for 13%, some 9% were contusions, with cuts and puncture wounds, inflammation and dislocations making up 6% each.

Severe injuries such as amputations and multiple traumas were rare but costly — they comprised 8% of total claims, but 26% of total claim costs.

Employers should not assume that experienced new hires will be less likely to get hurt than those who are inexperienced. An experienced new worker may not necessarily understand their employer’s expectations for safe practices.

What you can do

Fortunately, there are steps employers can take to prevent their newest employees from getting hurt while at work and minimize lost time from accidents. These include:

  • Having a formal hiring process and clear job descriptions that emphasize the workplace safety culture.
  • Using behavioral interviews and background checks to determine whether prospective employees will fit within the employer’s safety culture.
  • Analyzing each step in performing a particular job to identify the associated safety hazards, and ways to reduce or eliminate them.
  • Including safety information in new employee orientation.
  • Continuously training employees on safe practices.
  • Including skill-based training (procedures on how to safely perform a task) and awareness-based training (training on general workplace policies, identification of workplace hazards, and employer safety expectations) in the ongoing training programs.
  • Implementing health and wellness programs, such as weight loss, healthy eating and exercise programs.
  • After accidents occur, analyzing them to determine their root causes. Document what happened, where, how long the employee had been with the company, and estimate how frequently the type of accident could recur if no changes are made.
  • Implementing return-to-work programs so that injured workers can get back to work quickly, even if only in a reduced capacity.

Finding and hiring good employees is both difficult and expensive. The last thing you as an employer want is for a good new hire to get hurt and miss many days of work. It hurts productivity and morale, raises workers’ compensation costs, and may discourage good employees from staying with you.

It is in the best interests of employers and employees to prevent workplace injuries to the extent possible. It is not necessary to just accept new employee vulnerability to injury. Accidents can be prevented or made less likely.

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.

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, Workers Compensation Premium Recovery, 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 – 2022 – BGES Group

Inflation, Jury Awards Continue Driving Insurance Premiums

Inflation is not just affecting the cost of food and fuel. It’s also spilled over to the price of almost every industrial item, as well as building materials and services.

Anybody running a business, particularly one that carries inventories or has to invest in machinery or electronics, has seen prices increase on top of wage inflation in a red-hot job market with strong economic expansion.

All of that inflation, however, is leading to higher insurance costs, largely due to the increasing cost of claims in almost all areas of coverage.

On top of that, jury awards for both third party injuries and employees filing discrimination, harassment or other employment-related lawsuits are also on the rise.

Additionally, even the cost of adjusting and managing claims has jumped nearly 20% in the last year, according to a recent American Property Casualty Insurance Association (APCIA) report.

A survey by The Council of Insurance Agents & Brokers found that in the second quarter of 2022, businesses were paying on average 6.1% more for their commercial insurance policies than they were in the same quarter of 2021.

But rates will vary between regions as well as business sectors. Companies in areas at high risk for natural disasters are seeing higher rate hikes than those in relatively calmer areas, for example. Additionally, some states have higher jury awards than other states.

Commercial insurance policies that are seeing the most noticeable increases in claims costs, and in turn insurance rates, include:

Commercial auto Auto insurance is feeling pressure on two fronts: the cost to repair vehicles and liability costs in terms of rising jury awards and medical costs for injured third parties. The average rate hike for commercial auto policies was 7.2% in the second quarter of 2022, compared to the same period in 2021.

According to the APCIA report: “The frequency of attorney representation in commercial auto claims has been increasing, and the relative costs of resolving claims are significantly higher for claims with attorney representation, including taking considerably longer to resolve for consumers.”

Repair costs have increased substantially, adding to the cost of claims.

General liability General liability insurance is affected by many of the same lawsuit trends that affect commercial auto policies, including the number of large “nuclear” verdicts in lawsuits. These verdicts can be in the tens of millions of dollars, if not more. Settlement costs and legal fees continue to increase as well, adding to the cost of claims.

According to the APCIA, insurance industry incurred losses for commercial general liability have skyrocketed more than 57% since 2017. According to the agents’ and brokers’ council, rates increased an average of 4.7% in the second quarter of this year.

Commercial property Construction costs have skyrocketed in the wake of unprecedented building material cost increases, a labor shortage in the construction industry and supply chain constraints, leaving contractors short of materials to complete jobs.

For example, between December 2019 and December 2021 the price of construction materials boomed 44%, with some lumber prices up 400% in the summer of 2021.

Rates in the second quarter increased 8.3% from the second quarter of 2021, and while that rate is high, it’s compared to average rate increases of 10.3% in the fourth quarter of 2021.

Cyber The cost of cyber insurance is climbing 25% a year, thanks to increasing cyber attacks, increasing costs of ransoms demanded by ransomware criminals and rising cyber-attack business interruption costs, according to the agents’ and brokers’ council.

Another factor affecting the cost of cyber coverage is capacity (not enough insurers in the market). Also, insurers are raising deductibles and offering more restrictive terms to reduce their overall exposure.

The takeaway

With rates continuing to increase, it’s important that businesses take steps to manage their risks and reduce the chances of being sued, be that by third parties or their own employees.

It means having your internal policy procedures geared toward reducing the chances of discrimination (disability, race, sex, sexual orientation, etc.) or harassment lawsuits being filed by your staff.

It also means regular safety training for your workers to reduce the chances of customers, the general public or vendors that come onto your property being injured.

And it means taking steps to reduce the chances of your business being affected by a natural disaster. Mitigation steps will vary depending on the type of threat your business may face.

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.

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, Workers Compensation Premium Recovery, 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 – 2022 – BGES Group

Small Firms Increasingly Need Directors and Officers Coverage

While directors and officers liability has been traditionally thought of as insurance for publicly traded companies, increasingly it’s smaller companies that account for the largest share of exposure among top decision-makers.

A study published by the news website Advisen found that over the past 10 years, small businesses accounted for 70% of all D&O insurance claims. And during that time, these claims increased 300% for small businesses, compared with 200% for large companies and 150% for mid-sized operations, according to the study.

Although privately held businesses don’t risk exposure to securities class-action suits, a business doesn’t have to have shareholders in order for its directors and/or officers to be personally sued.

Your directors and officers may also face exposure to lawsuits and regulatory actions that could seriously dent your company’s finances. Consider the following risks:

  • Breach of fiduciary duty  Investors sue a company alleging that some of its officers had personal connections to a third-party contractor the company hired to do some work. They accuse other officers and directors of breaching their duty of care in undertaking the project without properly investigating the qualifications of the contractor.
  • Failure to comply with workplace laws  An employee is terminated and then sues the directors and officers and the company for wrongful termination based on gender discrimination.
  • Theft of intellectual property  You hire a new vice president and his former employer sues him and your company, accusing him of stealing certain corporate licenses to market proprietary software, creating unfair competition and trademark infringement.
  • Misrepresentation  A company asks a supplier to build up its inventory because it expects an uptick in business. The supplier complies and then the company switches suppliers. The original supplier sues, alleging damages based on the promise of more business and subsequent failure to provide that business.

When you may want to consider D&O coverage:

  • If your company has relationships with vendors and customers that could in some way leave your directors or officers exposed.
  • If you intend to seek venture capital funding or attract other investors.
  • You have officers or directors who could be targeted by litigants over their management of company affairs.

BOX:

Low-priced policies for small firms

Many insurance companies offer small business executive liability coverage starting at $1,500 per year to protect directors and officers.

D&O liability insurance protects corporate directors and officers in the event they are personally sued – often in addition to the company being sued by investors, employees, vendors, competitors and customers, among other parties.

The insurance protects directors and officers by covering legal fees, settlements and other costs; in addition, the coverage sometimes can extend to protect the company if it is named in a suit, as well.

Also, some new directors or officers may demand that you purchase D&O insurance as a condition of employment or serving, since they will not want to put their personal assets at risk. Outside investors may also demand that you purchase a policy before agreeing to fund your company.

Considerations when buying a policy

  • Should you limit coverage to directors and officers or include coverage for the entity, as well?
  • Make sure the policy will cover innocent directors if one member is found guilty of wrongdoing. Policies will cover allegations of criminal misconduct up to the point of adjudication.
  • Do you need additional coverage, which is usually sold in increments of $1 million of coverage?
  • Read the fine print to ensure that the policy covers a wide range of claims, from regulatory actions to criminal investigations and employee lawsuits.
  • Have a separate coverage limit if that coverage is bundled with an employment practices liability policy. This will ensure coverage for personal liability of directors and officers in the event a claim against the company depletes the EPL policy limit.

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.

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, Workers Compensation Premium Recovery, 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 – 2022 – BGES Group

Focus on Contractor Safety to Reduce Injuries for All

Whether you are a general contractor, subcontractor or general industry employer hiring a contractor to do work, you will almost certainly have some share in the responsibility for identifying hazards and communicating to employees the safe practices, tools and equipment needed to perform the job safely.

The employer and the contractor share an obligation to communicate planned work activities, the hazards involved and the contracted tasks, as well as the training, tools and equipment that all employees will need.

Before agreeing to work with a contractor, review the following data that gives insight into their safety culture and performance:

  • History of safety and environmental regulation violations.
  • Injury and loss history.
  • Total Recordable Incident Rate.
  • Experience modification rate (X-Mod).
  • Job and task hazard analysis procedures and results.
  • Written safety programs and policies.

Safety requirements

Ensure that you outline requirements in the work contract and in contractor manuals, so there is a clearly communicated expectation of workplace safety. Topics to consider include:

  • Company and contractor safety responsibility and emergency contact information.
  • A description and the location of hazardous areas, equipment, materials and tasks at the worksite.
  • Safety programs that govern the safe work practices for the contracted job.
  • Equipment, tools and supplies that the contractor or the employer needs to provide.
  • Personal protective equipment required at the worksite and for job tasks.
  • Training and certifications that contracted employees need prior to conducting work.
  • Reporting requirements and procedures for injuries, illnesses, hazards and safety concerns.
  • The expectation for a drug- and alcohol-free workplace.

Data shows that most serious work injuries in the field of construction are related to four general categories:

  1. Falls from heights
  2. Stuck or caught in between
  3. Struck by falling or flying objects
  4. Electrical hazards

Work around these types of hazards should typically be supervised or monitored by a competent person. Hazards related to the above factors can be found on most active construction sites.

Train your staff

Ensure that your employees are knowledgeable about the risks related to working around these hazards by creating or utilizing training resources that include the following topics:

  • Lockout/tagout procedures for equipment on-site.
  • A list of permit-required and non-permit-required confined spaces on-site.
  • Heat illness prevention procedures.
  • Trenching and excavation procedures and the location of utilities.
  • A list of chemicals used on-site and access to safety data sheets.
  • Areas where fall protection is required.
  • Vehicle, driving and traffic safety rules for the worksite.
  • Good housekeeping methods.
  • Worksite safety inspection processes and frequency of inspections.
  • Worksite security procedures.
  • Personal conduct requirements.

Training is important to familiarize employees with how to control job hazards and prevent injuries. Suggested initial and ongoing training topics include:

  • A worksite safety orientation, including a discussion of the hazards associated with the tasks of the job to be performed.
  • The contents of contractor safety manuals.
  • Pre-job briefings and shift meetings.
  • Safety tailgate topics specific to the worksite and job tasks.
  • Trainings that are required to control a hazard, condition or behavior.

Emergency procedures

Ensure that you train general contractors on the worksite-specific emergency procedures and equipment.

Knowledgeable employees and contractors can cooperate and make fast, quality decisions if they are prepared before an emergency occurs. The following topics and procedures at a minimum should be provided to employees and contractors:

  • Fire prevention and evacuation plans.
  • Emergency spill response and procedures.
  • Exit routes and assembly areas for emergency evacuations.
  • The location of emergency equipment such as fire extinguishers, first aid kits and rescue equipment.
  • Emergency contacts and communication methods.
  • Rescue and medical duties for those employees who are to perform them.

Establishing clear expectations, communication, training and monitoring all help employers and contractors work together in order to complete their jobs safely, while also protecting the safety and health of all employees.

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.

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, Workers Compensation Premium Recovery, 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 – 2022 – BGES Group

Additional Insureds: What Coverage Do They Really Have?

Most construction contracts require one party to name the other party as an additional insured under the first party’s general liability insurance policy. For example, a contract between a project owner and the general contractor will require the GC to cover the owner as additional insured. A contract between a GC and a subcontractor will have a similar requirement in favor of the GC. By making this requirement, the owner or GC is attempting to transfer the liability insurance responsibility from itself to the other party. However, what the GC is trying to achieve and what it actually gets may not be the same.

Many owners and subcontractors, when they require additional insured coverage, are seeking coverage that an obsolete insurance form used to provide. This form covered the person or organization listed on it for liability arising out of the policyholder’s work for the person or organization. The industry has revised this form several times over the years. The current version covers the named person or organization for liability arising at least partly out of the policyholder’s acts or omissions or those of subcontractors working for the policyholder. It covers liability for the policyholder’s ongoing operations for the additional insured. Coverage ends when all work on the project is completed or the part the policyholder was working on is put to its intended use.

The modern version has some significant differences from the old one. Courts interpreted the old version as covering the additional insured even when the accident was 100 percent its own fault. The new version requires the policyholder to be at least partly responsible. The old version covered liability arising out of the policyholder’s work, whenever it occurred. The new version covers liability arising out of the policyholder’s work only while it is in progress. It does not provide any coverage for liability arising out of the work once it is complete.

Contractors who need or want coverage for additional insureds arising out of their completed operations must request a separate coverage form from the insurance company. Willingness to provide this coverage varies from one insurance company to another.

Another option is to cover all additional insureds automatically. Many insurance companies offer this, but the form ordinarily applies only when a written contract requires the policyholder to add the additional insured. Also, it usually does not provide completed operations coverage for the additional insureds, and it may provide only the amount of coverage the contract requires even if the policy actually provides more. The contractor must request to add completed operations coverage separately for each additional insured.

It is important to note that none of these forms promise to provide the additional insured with advance notice if the company decides to cancel the policy. Owners and GCs often require advance notice in the contract. If this is the case, the contractor should discuss it with his insurance agent and ask to have this provision added to the policy separately. Insurance companies’ willingness to do this varies.

An owner or GC that requires its contractor to add it as an additional insured may expect or demand coverage for all operations, both ongoing and completed. They may also require advance notice of cancellation. It is crucial for contractors to be aware of what their policies do and do not provide. The contractor should discuss any coverage deficiencies with his agent as soon as he discovers them. If the insurance company is unwilling to remedy them, he may have to negotiate with the other party. The worst possible outcome is for the other party to be surprised by lack of coverage when an accident happens.

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.

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, Workers Compensation Premium Recovery, 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 – 2022 – BGES Group

Understanding When Additional Insureds Are Covered

With construction contracts, a general contractor must be added as an additional insured on the subcontractor’s liability insurance policy. Most contracts require liability coverage because there may be claims arising from completed or ongoing work. This also means that the general contractor runs the risk of facing a lawsuit from the flaws in the subcontractor’s work. For this reason, subcontractors need completed operations insurance.

In the past several years, the insurance industry took steps to remove completed operations coverage from the policy forms commonly used for additional insureds. The ISO Form CG 20 10 of 1985 offered coverage for the organization or person listed on it. The named party was covered for liabilities arising from their work or work performed for them by someone else. Materials and equipment were also covered. From the wording on the form, the courts decided that additional insureds were covered for any completed operations. However, ISO revised the form in 1993. ISO had never intended to extend this coverage, so the form was changed to offer coverage only for the named insured’s ongoing projects. At the same time, Form CG 20 37 was introduced. It provided liability coverage for additional insureds helping with the named insured’s operations. However, operations were only covered if they were away from the premises rented or owned by the named insured.

To understand how this works, consider an example scenario. Company A is subcontracted to do electrical work, and Company B is subcontracted to do plumbing work for a new project. Contractors from both companies are working at the general contractor’s work site on the same day. While a plumbing worker from Company B is installing parts in a bathroom, the electrical contractor from Company A accidentally drops a tool on the plumbing worker. The Company B employee is injured, so he sues the general contractor and Company A. Company A’s CGL policy has the CG 20 10 endorsement with the general contractor listed as an additional insured. Since the injury took place during ongoing operations, the policy will cover the general contractor in the lawsuit filed by the injured worker.

However, if an electrical contractor performs work and leaves without intention of returning, it is the general contractor’s responsibility to ensure quality work. If the general contractor accepted it and a fire started because of faulty wiring after the job was done, the building owner could sue the general contractor. Since the electrical contractor’s work was finished and approved, the CG 20 10 endorsement would not apply. In order for the general contractor to be covered, the policy would have to include the CG 30 37 endorsement. No losses would be covered by either endorsement if the general contractor was at fault. To qualify for coverage, an incident must be at least partially another party’s fault.

Since construction is risky business, it is important for all contractors to discuss their insurance questions with an agent. Contractors must fully understand their contractual obligations and what coverage is available to meet their needs. Agents are able to provide information about policy terms, costs and additional insured options. It is crucial to have ample coverage before taking on a project where losses are likely to be incurred.

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.

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, Workers Compensation Premium Recovery, 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 – 2022 – BGES Group

The All-in-One Business Insurance Solution

Business insurance can get complicated. Organizations need to protect themselves against damage to their property, income they may lose if they have to shut down after their property is damaged, and the risk of lawsuits.

With the risks of natural disasters, crime and other types of losses that separate policies cover, there can be a lot to keep track of.

It does not have to be so complicated. Small businesses can meet most of their insurance needs with a single product: a Businessowner’s Policy, or BOP, as it is commonly known.

BOP packages essential coverages into a single insurance policy. At its most basic, a BOP provides three broad coverages:

  • Property   Insurance for the business’s buildings (if it owns any), contents including inventory, furnishing and equipment, and other property used by the business.
  • Business interruption   Insurance for lost income resulting from a business shutdown following damage to the property or extra costs the company incurs to stay open after the damage.
  • Liability   Insurance covering amounts the business has to pay as damages to settle some lawsuits against it, as well as legal costs for defending against those suits.

 

BOPs offer some flexibility to the buyer, but not the overwhelming variety of choices that individual property and liability policies offer.

Enterprises can choose between insuring against a broad list of causes of property damage loss or “special” causes of loss. The broad form covers only the causes of loss listed in the policy; the special form covers all causes except those listed in the policy.

The special form costs more because it covers more.

The business must select the amounts of coverage it needs to protect its buildings and property.

However, it is unnecessary to select an amount of insurance for business interruption coverage. The policy simply pays for the actual loss the business sustains during a necessary shutdown caused by covered damage to the property.

 

Typical inclusions

BOPs typically include small amounts of coverage that would otherwise have to be purchased separately, such as:

  • Loss or damage to valuable papers and records.
  • Debts the business cannot collect because of loss or damage to accounts receivable records.
  • Income lost when the business must shut down due to an interruption in computer operations.
  • Some types of crime losses.
  • Clean-up and removal of pollutants.

 

The policy covers the business’s legal liability for bodily injuries, property damage, advertising injury and some types of non-bodily personal injuries to others. Most insurers offer businesses a choice of only three or four amounts of liability insurance.

BOPs may be customized to include other types of insurance, such as for liability resulting from the use of autos the policyholder hires or borrows.

However, a BOP is not a substitute for an automobile insurance policy, and it does not include workers’ compensation coverage. Those policies must be purchased separately.

To qualify for a BOP, a company cannot exceed a certain size, such as 100 employees or $5 million in revenue. For those businesses that qualify, a BOP is a sensible foundation for their insurance programs.

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.

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, Workers Compensation Premium Recovery, 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 – 2022 – BGES Group

 

 

Why Insurance Companies may Audit your Business and Compliance is Crucial

When you get a commercial insurance policy, in many cases premium assigned isn’t final. It’s actually an estimate. Your carrier assigns a premium based on an informed guess, based on your prior year business activities. Business changes, of course, and estimates can be off. The purpose of insurance premium audits is to use actual sales and operations data to determine how accurate their guess was. The audit then determines the amount of your final premium.

At the end of the process, you could wind up with a balance due, meaning you underpaid premiums for the year, or you could wind up with a credit. This means you overpaid your premiums for the year and the carrier is either crediting or refunding your overpayment to you.

These audits are very common when it comes to General Liability insurance, liquor liability insurance, workers compensation insurance and similar commercial/business insurance policies.

Ask your agent what the basis is for your premiums. Your exposure basis is the data that the insurance company uses to calculate its expected risk, and with that the premiums to cover that risk. Examples include payroll data, sales data, vehicle counts and/or mileage data, and the like. They may also ask for a description of your operations, information about the officers and owners of the company, job duties, names of subcontractors, certificates of insurance for subcontractors, and/or tax documents.

Make sure your figures for the audit are as exact as possible. If you asked up front exactly what your premium basis was, you shouldn’t have to use estimates. If you do, or if the carrier feels they are not quite getting the full story, they will request further information, or they could wind up charging a higher premium to compensate for the underwriting uncertainty.

 Workers Compensation Insurance

Since workers compensation policies are based entirely on payroll data, payroll audits are very common, and if you keep good records, fairly simple. The carrier can audit on a yearly, quarterly or monthly basis, and your premium will be adjusted up or down based on the last period’s audit. In many cases, this auditing process has become fully automated.

Commercial Liability

Commercial liability carriers usually base their premiums on sales levels. Occasionally they’ll ask for some other data including square footage or payroll data – especially during the early months of the policy period, or if you’ve expanded floor space.

Cargo/Freight Insurance

Cargo insurance is generally based on shipping volume or overall valuation of goods shipped.

Liquor Liability Insurance

Carriers vary, but premium basis usually includes gross sales, broken down between alcohol gross sales, non-alcoholic beverage sales and food sales, along with some operations information. Your insurance agent should be able to tell you at the beginning of the term what information to have available for the premium audit.

Best Practices

  • When you apply for coverage, ask exactly what the premium basis is. This way, you know exactly what numbers you need to have on hand when it comes time for the premium audit, and the process should go quickly and smoothly.
  • Keep track of time and payroll for different kinds of work, job categories, etc. This allows for the lowest workers compensation premiums that still provide protection for workers and the company alike. Include overtime.
  • Get certificates of insurance for your subcontractors: General liability and workers compensation.
  • Ensure a responsible and informed individual is present and available for on-site audits.
  • Restaurants should keep tip records.
  • Inform your agent right away about any large changes to your payroll, whether up or down.

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, Workers’ Compensation, Worker’s Compensation Premium Recovery, 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 – 2022 – BGES Group

Misclassifying Workers as Independent Contractors is Bad for Your Business

Employer misclassification of workers as independent contractors is a large and growing problem. Employers trying to keep their costs down may inadvertently or deliberately misclassify workers who should be classified as employees. They escape employment taxes, unemployment and workers’ compensation insurance costs, and paying overtime rates required by law for employees. They also cheat workers and gain an unfair advantage over their law-abiding competitors.

Federal and state authorities have begun to crack down. The U.S. Department of Labor won $79 million in settlements for 109,000 workers in 2014 alone. The employers caught breaking the rules come in all sizes and from many industries. To name a few examples:

– In 2013, a federal judge ordered a large provider of information services to pay $1.3 million to nearly 15,000 current and former employees. The employees had worked from home, answering text messages from customers. The company paid them a set rate for each message responded to, without regard to the number of hours they worked. The Labor Department determined that the company had misclassified the workers as independent contractors. Since they were actually employees, they were entitled to the minimum wage. The department calculated that their per-hour rate was below that. The judge’s order raised their compensation up to the minimum.

– Four related New York City plumbing and heating contractors paid a $1.4 million settlement in 2015 for, among other things, misclassifying 25 workers as independent contractors. The employers paid them a weekly wage that did not include the required time-and-a-half rate for hours worked beyond 40.

– A Kentucky-based cable, telephone and Internet installation company was found in 2013 to have misclassified 77 employees. The “independent contractors” performed the same work as others who were classified as employees. All workers were paid based on the pieces of equipment they installed, rather than the number of hours worked. Consequently, none of them received overtime pay. The company paid $1.075 million in back wages and damages to 200 employees.

– A Chicago home cleaning service classified 55 maids as independent contractors. This despite the fact that it forced the maids to sign non-compete agreements and forbid them to clean homes that were not assigned by the company. If the maids exceeded time limits for cleaning houses, they were threatened with disciplinary actions and having their pay docked. The company tried to skirt the overtime law by paying them a flat rate per house cleaned, regardless of how long the job took, and did not pay them for travel time. A federal judge ordered the company to pay the workers $184,505 in back wages and damages.

– A $4.5 million arbitration award to 16 misclassified limousine drivers forced a California car service into bankruptcy in 2012.

These companies suffered severe consequences for breaking the law. Any business that is unsure how to properly classify workers should check with federal and state labor regulators, the IRS and state tax authorities, or labor and tax attorneys. The short-term cost advantages from misclassifying workers are not worth the penalties that come with getting caught.

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, Workers’ Compensation, Worker’s Compensation Premium Recovery, 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 – 2022 – BGES Group