With the opioid epidemic continuing to sweep the nation, more and more workers are battling addiction than ever before. 

But if you as an employer suspect or know one of your staff has a substance abuse problem, you need to be careful about how you approach them and try to deal with the issue.

Even if many employees can keep their addictions under wraps in the workplace, not all of them can. According to a survey conducted by the website drugabuse.com, which offers educational content and recovery resources to people dealing with addiction:

• 23% of workers surveyed said they had used drugs or alcohol on the job.
• 60% said they had used alcohol on the job work (not including office parties or functions).
• 23% said they’d smoked marijuana on the job.

On top of that, 75% of U.S. employers say they’ve been affected in some way by an employee’s substance abuse. That can include:

• Employee theft to support the habit.
• Mistakes that cost the company money and lost business.
• Workplace accidents.
• Accidents that injure third parties.
• Reduced productivity because of presenteeism.

While you can have policies in place that bar employees from working under the influence – under threat of firing – it’s a trickier matter if one of them comes to you to tell you they have a problem.  

The Americans with Disabilities Act protects workers who:

• Have successfully completed a rehab program and have stopped taking the drug that caused them to enter the substance abuse program,
• Who are currently in a rehab program, or
• Who have been wrongly accused of having a substance abuse problem.

It’s also a challenge for employers to know the difference between an employee who may have been taking one Vicodin every day for years for pain but continues to do a great job, or someone who needs treatment. Taking the wrong action can set you up for being sued, and it’s hard to win a case if the employee is taking medication as prescribed by a physician.

What you can do

There are ways that employers can legally find out if employees are taking opioids. You can set a policy that requires employees to disclose if they are taking prescription medications that may cause impairment or come with warnings about drowsiness. 

This is legal under Equal Employment Opportunity Commission regulations as long as the policy is companywide.

But if you think you have a worker on staff who has a substance abuse problem, you need to go through an interactive process as prescribed by the ADA.

Steps under the interactive process start with talking to a worker you think has a substance abuse problem or is taking medication that could create a safety risk, to see if there is some way you can accommodate them. That could include:

• Restructuring their job.
• Offering a leave of absence to let them get treatment.
• Modifying their schedule so they don’t have to work after they have taken their medication.
• Reassigning them to a vacant position that will not put them or others at risk.

If you have an employee who has been on leave to get treatment for their substance abuse, you can ask them to take a fitness-for-duty exam to make sure they are up for resuming their old job.

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, Funding for the Construction Industry, Worker’s Compensation, New York State Disability, Group Health, Life insurance and Personal lines.  

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

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

New Jersey and Connecticut Contractors:  We have a fiercely competitively priced (savings up to 50%)  General Liability, Umbrella Liability, Business Auto, Workers Compensation program.  Want to lower these costs?  Get a quote today!   

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

© – Copyright – BGES Group

Ever wonder why it’s so great to own an alarm company, an insurance agency, a real estate company? So long as you have a customer, every month you get paid!

Now you can save your commercial and residential customers up to 40% on their essential services and get paid every month for doing so!   This business can also get you new customers!

Some of your customers are paying thousands, tens of thousands, hundreds of thousands of dollars (i.e building owners) each month for services. Our company not only can save them money but pay YOU up to 10% of their bill every month for as long as they remain your customer!

This business is GREAT for contractors!  Actually, anyone can do this business!

Do you know someone looking for other ways to make money?  Maybe your spouse, business associates, friends, relatives or children age 18 and older? 

This business is available throughout the United States.  Actually it’s in 26 countries!

Did you ever want to own a franchise but didn’t have hundreds of thousands of dollars to do so?  Now you can own this business for practically nothing!  There’s no rent, payroll, you don’t have to collect money, you have no aggravation and it is recession proof and you can make skies the limit!  It’s very easy to do it’s just most people do not know about it! 

Get in on something that can change your life forever!  This opportunity really can!  Throw away your skepticism, we were skeptical too!  This business makes sense, is aggravation free, you can make a lot of money, every month, and not have to wake up every morning worrying about at least money!

We can only work with a few people so it’s critical if you’re interested, you contact us immediately!

Want to learn more? Contact Gary by phone or text at 914-806-5853 or click here to go to business opportunity.

Email address: bgesgroup@gmail.com

Business owners who form a corporation or a limited liability company (LLC) may question the need for the business to carry insurance. A major benefit of these forms of business organization is that they shield the owners’ personal assets. Because of this, they may believe insurance is unnecessary.

A corporation is a legal entity separate from its owners. It acts as an artificial legal person. It can do the things that individuals may do, such as:

• Enter into contracts
• Incur debts
• Earn income
• Make investments
• Sue others, and be the target of lawsuits.

It gives its owners a legal shield against many of its obligations. In other words, an individual owner of a corporation (called a “stockholder”) does not have to pay for the business’s debts out of his or her own funds.

An LLC also shields its owners (known as “members”). However, tax laws apply differently to LLCs than they do to corporations. If a corporation earns $10,000 in income, it must pay tax on that $10,000. If an LLC earns $10,000, the money is distributed to the members and they individually pay taxes on it.

Corporations and LLCs shield their owners and members from liability for the entity’s debts.

Suppose someone sues the business, claiming that its product injured them. A court orders the business to pay the injured individual $1,000,000. The business must pay that amount out of its assets. But, the individual owners or members do not have to cash in their bank accounts or homes to pay it. The most they stand to lose is the amounts of their investments in the business.

Legal shield only goes so far

The shield is not absolute. A court may hold individual stockholders and members liable in some situations. If they personally and directly injure someone, the shield does not protect them.

The court may also decide that the corporation is a sham entity. It could do this if the business has not conducted the normal activities of a corporation, such as:

• Holding regular stockholder meetings.
• Keeping business records separate from those of the owners.
• Investing adequate capital in the business.

Regardless of the shield, the business should carry insurance. The shield cannot protect the time and effort that goes into building a business. An uninsured accident can wipe out all of the business’s assets. Without large additional investments, it might not survive. The stockholders’ investments in money, time and work will have been wasted.

Also, an individual acting on the business’s behalf may incur personal liability. For example, while driving on company business, a member may injure someone in a car accident. Business liability and auto insurance policies usually insure individual stockholders and members for acts they perform in their roles with the business. Without this coverage, the individual would have to hire their own lawyers and pay judgments out of pocket.

For these reasons, wise business owners buy insurance. They should insure the business’s buildings, property and liability risks. The personal liability shield is no substitute for insurance protection.

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, Funding for the Construction Industry, Worker’s Compensation, New York State Disability, Group Health, Life insurance and Personal lines.  

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

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

New Jersey and Connecticut Contractors:  We have a fiercely competitively priced (savings up to 50%)  General Liability, Umbrella Liability, Business Auto, Workers Compensation program.  Want to lower these costs?  Get a quote today!   

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

© – Copyright – BGES Group

Workers’ Comp Audit Mistakes: What to Look For

Workers’ Comp Audit Mistakes: What to Look For

No company owner wants to undergo a workers’ compensation audit, but they are a fact of life if you run a business and have employees.

Unfortunately, many audits don’t go smoothly and sometimes your insurer may make mistakes. Missouri-based Workers’ Compensation Consultants, which helps employers through the workers’ comp audit process, recently listed the 10 most common audit mistakes that insurance companies make.

The list highlights a common problem and how you can detect the mistakes to avoid being stuck with a massive audit bill. Insurance companies allow you to review the audit with your broker. If you notice that you have received an audit bill that is obviously overstated, you should contact us.

Here are the things to look for when reviewing an audit by your insurance company:

Wrong class code – Misapplication of job classifications occurs in many workers’ comp audits. With hundreds of job classes to choose from, mistakes can happen. Talk to us and review your old policies to see if any of your class codes have changed.

X-Mod is changed – After your insurer finishes the audit, it will use the information to calculate your premium. When that happens, it has to include your X-Mod to get the right rate. But sometimes the insurer may use an incorrect X-Mod. Check carefully.

Subcontractors are counted – Sometimes insurers will include subcontractors as employees, which results in a new audit bill to account for the additional “employees.” But if they are genuine subcontractors, they should not be counted. Often, uninsured contractors will be included as employees. Make sure to use insured contractors only.

Disappearing credits – Most policies will have some sort of premium credits or other modifiers. Sometimes during audits, the insurer will remove them when recalculating the premium they think you owe. Watch out for missing credits and other modifiers if you get an audit bill, like:

• Premium discount
• Schedule credits
• Deductible credits
• State-specific credits

Audit worksheets missing – If the auditor fails to provide you with audit worksheets, which are used to compile your payroll and other audit information, you should ask to check their work. They will provide you with the information you need to carry out such a check.

Your rates changed – The rates you are charged at the beginning of your policy period must remain the same for the entire policy period. If your base rates have changed, the insurer may have made a mistake.

Separation of payroll – Depending on your industry, you may or may not be able to split your employees’ payroll between job classifications (like cabinet installers and sheetrock hangers). This is a pinch point when errors can occur. If the auditor says you are not allowed to split job classifications even though you have in the past, your audit may be in error.

Unexpected large premium due – If you get a significant bill for your insurance company after your audit, the auditor may have made mistakes, particularly if you know that your employment has remained relatively stable and you’ve had no significant claims, if any. If it seems out of whack, call us. 

Payroll data doesn’t match – If there is a discrepancy between your payroll data and what you see on the audit, a mistake may have been made. Try to match the payroll on the audit with that generated from your accountant. If the insurer made a mistake, you could end up paying for phantom payroll numbers.

No physical audit – There are three types of audits:

• Mail audit
• Phone audit, and
• Physical audit

The mail and phone audits are prone to errors since neither you nor your staff likely have any experience in premium auditing. If you have a big bill after a mail or phone audit, mistakes could have been made. 

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, Funding for the Construction Industry, Worker’s Compensation, New York State Disability, Group Health, Life insurance and Personal lines.  

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

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

New Jersey and Connecticut Contractors:  We have a fiercely competitively priced (savings up to 50%)  General Liability, Umbrella Liability, Business Auto, Workers Compensation program.  Want to lower these costs?  Get a quote today!   

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

© – Copyright – BGES Group

Contractor Worker’s Compensation Program Why You Should Get a Quote: 1.Pricing – Rates can be up to 40% less than what you now pay. Paying a 10% service fee?  We DO NOT charge any service fee.                                                     2. Coverage – Better protection built into our program.  For example, if you operate weeks at a time out of state, we can cover you according to that state’s workers compensation laws.  State plans usually do not cover if you work out of state weeks at a time and if claim is filed out of state.For example, let’s say medical costs are $55,000 for a particular injury in New York.  In New Jersey, for the same injury, medical costs are $125,000. Under our program you will be fully protected.                              3. Long Term Coverage Stability – Our program has been providing Workers Compensation for contractors for 23 years.  You can have coverage stability being in it!                                                                             4. Who Can We Cover – We can cover almost any contractor except asbestos or those that work at heights (exterior) in excess of 3 stories unless work is 5% or less of what you do.  We love roofers, exterior contractors that work up to 3 stories, interior demolition contractors too!              5. Pay as You Go – Your premium payment is based on your last month’s payrolls.  During slow times when cash flow is slow you will pay less.                   6. Audits – Our auditors are friendly, accommodating and very helpful.  They are usually in and out in 30 minutes.  In those states that do not mandate audits, you may not be audited for years.                                                 7. Deposit Premium – 10% needed to bind coverage.  No renewal deposits required.                                                                                                      8. Payroll Caps – We will keep track of all payroll caps so you pay no more than you should.                                                                                                  9. Proper Payroll Classifications – Upfront your payrolls will be classified correctly.  We give you back control over this.  Every week, so you don’t overpay, your payrolls will be assigned to the proper workers comp codes and you will pay what you should, no more.                                                      10. NYCPAP Credit – Every year we will apply for credit on your behalf.                               11. Claims – Our claims department is one of the best in the country.  If you tell us a claim is suspicious we will investigate and fight back.  This is an area we excel in.  We want to protect your claims history so we can give you excellent pricing.                                                                                                    12. Customer Service – You will always be able to get us on the phone within seconds.  You can do your own certificates or we can do them for you.  Either way certificate turnaround is usually minutes.  Whatever you need you never have to wait for help!                                                                       13. Payroll Processing – We can process your payroll including: File NYS-45’s File 941’s Pay your payroll taxes Direct deposit Issue certified payroll reports Do employee background checks Comply with all OSHA paperwork requirements Help you with employee drug screening Our program was designed for contractors                                                            To Speak With Us Call 914-806-5853, click here to email or click here to visit our website. Contractor Liability Programs  How We Can Help You:  1)    Make sure you have “The Right Coverage” by analyzing your needs then coverage.  There are a lot of exclusions in policies.  DO NOT wait for a claim before learning you have the wrong coverage.  For FREE, have your needs analyzed by a team of “TOP NOTCH EXPERTS!”                                                                                                                                                                2)    There are a lot of insurance companies on “Black Lists.”  Typically these companies have exclusions that are not acceptable and prevent you from working with new customers.  Our companies are NOT blacklisted.    3)    We have a network of fifty (50), quality, N.Y., N.J., C.T. construction insurance companies.  Depending on what you do, we will market your account to these companies and get you “The Right or Better Coverage” at “The Best Rates” these companies offer.  We can help you better your situation.                                                                                                              4)    Help screen customer contracts so you are in compliance with their insurance requirements.  A lot of your customers have risk advisers that screen their contractor insurance policies.  We can help you deal with them.                                                                                                                                                          5)    Have a written safety manual?  We can help put one together for you.                                  6)    Are you screening your subcontractor’s coverage?  A lot of liability policies have strict subcontractor insurance requirements.  If there’s a claim, and your subs have the wrong insurance, you will have NO  coverage.  We can help you screen your subs insurance.                               7)    Using a good subcontractor hold harmless and insurance agreement?  This is very important because when marketing your account insurance companies want to see proper risk transfer mechanisms in place.  We can help you put one together.                                8)    We can help you with OSHA compliance, employee background screening, stewardship reports, coordinated loss control survey and inspections, claims management services and disaster recovery.                               9)    Deal with a broker who has 38 years experience.  Who when you call answers their phone.  Who when you email emails you right back.  Who when you text texts you right back.  Who when you have a problem is within seconds there to help you.  We are old school.  Offer boutique service.  Every day we deal with contractors, their issues, solving their issues.  We represent “The Top” construction insurance  programs in the tri-state area.  Have a great reputation.  We are NOT insurance generalists.  We are construction EXPERTS.  If you are unhappy with what have contact us today!  914-806-5853  Email: Click here.                                                                                       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, Funding for the Construction Industry, Worker’s Compensation, N.Y.S. Disability, Group Health, Life insurance and Personal lines.    BGES Group are Worker’s Compensation Specialists (NY, NJ, CT) helping contractors, limousine services, auto service, local truckers, manufacturers, real estate companies and staffing agencies (we can help any business).  Workers Compensation issues we address:  1) Lowering rates – our specialty programs have been able to save businesses up to 40%; 2) Unhappy with your company’s service, are they difficult to work with?  3) Being non-renewed? 4) Audit disputes; 5) Lowering high experience modifications factors; 6) Misclassification of payrolls; 7) Lowering or eliminating renewal deposits; 8) Getting coverage when you’ve been without for months; 9) Covering multiple states under one policy; 10) Eliminating 10% service or policy fees; 11) Timely issuance of certificates; 12) Always being able to get someone on the phone or by email when you need to.  Special Contractor Insurance Programs (NY, NJ, CT) – We we have 50 insurance companies to market your general liability, umbrella liability, business auto, workers compensation, bid & performance bonds and group health coverage’s.  We help contractors set up proper risk transfer mechanisms.  If you’re a contractor we offer extensive information about insurance markets, coverage’s, risk transfer mechanisms, subcontractor screening, ways to lower your insurance costs that lower them.     New Jersey and Connecticut Contractors:  We have a fiercely competitively priced (savings up to 50%)  General Liability, Umbrella Liability, Business Auto, Workers Compensation program.  Want to lower these costs?  Get a quote today!      To Speak With Us Call 914-806-5853, click here to email or click here to visit our website.   http://www.bgesgroup.com or http://www.workerscomp.storeCompany:  BGES Group, 216A Larchmont Acres West, Larchmont, NY  10538e-mail: bgesgroup@gmail.com  (C) – Copyright – BGES Group

1. Rates too high?  We have a program for contractors whose rates are fiercely competitive,program offers THE RIGHT PROTECTION (state plans do not) if you operate out of state for weeks at a time. If you are a New York, New Jersey, Connecticut contractor and work in different states, this plan is THE ONE YOU NEED! 

2. In the middle of an audit dispute?  Being told pay or be cancelled?  Company charging you for uninsured subcontractors when they shouldn’t?  We can help you with an audit dispute as well as give you a back-up plan just in case you need one.

3. Now without coverage?  We can help you get worker’s compensation even if you’ve been without coverage for months.

4. Classified Incorrectly? – In a higher rated class code and your company wont budge? There are some companies that if your i’s are not dotted and t’s crossed will take all your payroll and throw it into the highest rated category. They have no interest in showing you what to do. They want you to pay as much as possible. With us, our program from the start, lets you classify payrolls, so you don’t overpay.

5. Working in multiple states?  If you’ are with a company that can only cover your home state (usually state or assigned risks plans) yet you work in other states, you may have a big uncovered financial exposure. Our programs can cover you in multiple states.

6. Poor loss experience? – Had some bad luck lately? We’ve helped client’s with two claims totaling $500,000 obtain coverage. These days we are seeing more questionable claims. If you need help, give us a call.

7. Is your agency’s service poor? Can you get someone on the phone when you need to? Do you speak to a different person every time you call? When you send an email does it take days before you hear back? Is your agency charging you a 10% service fee yet doing nothing? With us you’ll speak to one person who will immediately answer your call. We do not charge service fees.

8. Looking for a Plan That Offers Long Term Coverage Stability – Ours is designed for contractors. Ours can do so.

9. High Experience Modification Factor? – Let us do an analysis and try to lower it.  Won’t cost you anything. Maybe we can get you money back, thousands, tens of thousands.  

10. Whatever your issue we can help. Even though we have not mentioned the issue of concern know we can help.   For 38 years we have specialized at Worker’s Compensation. Helping you is our #1 priority. We are frugal when it comes to YOUR money. We do not charge service fees (unless the insurance company we use does not pay us a commission). We want to understand your needs, your issues, and work together to help.  

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, Funding for the Construction Industry, Worker’s Compensation, New York State Disability, Group Health, Life insurance and Personal lines.  

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

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

New Jersey and Connecticut Contractors:  We have a fiercely competitively priced (savings up to 50%)  General Liability, Umbrella Liability, Business Auto, Workers Compensation program. Want to lower these costs? Get a quote today!   

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

e-mail: bgesgroup@gmail.com

© – Copyright – BGES Group

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.

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A recent appeals decision denied coverage to a company on its directors and officers (D&O) liability insurance policies for taking too long to file the claim. 

In this case, the 5thU.S. Circuit Court of Appeals in New Orleans sided with an insurer that had denied a claim a company had made after being sued for failing to pay overtime wages to nonexempt employees.

The insurance company had denied the claim because the first employees’ claim was made in August 2014, but the company failed to inform the insurer of that and subsequent claims until September 2015. 

This case illustrates the importance of filing claims in a timely manner. 

When the employer actually got around to filing the claim it had an in-force D&O policy with the insurer, although there was an earlier policy in force when it had received the first claim of failing to pay overtime.

Under the policy in force at the time of the first claim, the insurer would have been obligated to pay all claims made against the company under the policy.

“That earlier policy would have provided coverage except that the insured failed to comply in 2014 with a notice provision. We conclude the district court was correct to rely on this difference,” the three-judge panel in the appellate court wrote in an opinion that upheld a lower court’s ruling.

Timeliness

One of the critical obligations of an insured is the duty to timely report claims or circumstances that may give rise to a claim. Failure to report a claim in accordance with the policy requirements can result in a claim being denied, or worse, having the entire policy voided.

D&O policies are “claims made” policies, meaning that coverage exists only for claims made during the time period the policy is in effect. Claims made while no policy or extended reporting period are in effect are not covered.

Claims-made policies also have retroactive dates. Ideally, the retroactive date is the day the insured started business, but it can also be the day that it first purchased professional liability coverage.

Assuming the retroactive date has not been advanced, the policy in force when a claim is made is the policy that will respond, regardless of when the negligent act, error or omission took place.

However, there is one important qualifier. This insurance applies to claims that took place after the retroactive date, but prior to the end of the policy period, provided that the insured had no knowledge of the claims prior to the effective date shown in the declarations.

In other words, if you knew of a claim prior to the time you renewed your claims-made policy but did not report it, and if a claim is subsequently made, the insurance company can deny coverage. It doesn’t matter whether or not it’s been continuously renewed by one insurance company, the policy excludes it. 

This underscores the importance of timely reporting of all claims prior to renewal each year.

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, Funding for the Construction Industry, Worker’s Compensation, New York State Disability, Group Health, Life insurance and Personal lines.  

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

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

New Jersey and Connecticut Contractors:  We have a fiercely competitively priced (savings up to 50%)  General Liability, Umbrella Liability, Business Auto, Workers Compensation program.  Want to lower these costs?  Get a quote today!   

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.

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

e-mail: bgesgroup@gmail.com

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

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

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

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

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

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

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

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

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

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

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

Special Contractor Insurance Programs (NY, NJ, CT) – We we have 40 insurance companies to market your general liability, umbrella liability, business auto, workers compensation, bid & performance bonds and group health coverages.  We help contractors set up proper risk transfer mechanisms.  If you’re a contractor we offer extensive information about insurance markets, coverages, risk transfer mechanisms, subcontractor screening, ways to lower your insurance costs that lower them.    

ALERT NEW JERSEY & CONNECTICUT CONTRACTORS:  We have an extremely competitively priced (savings up to 50%)  General Liability, Umbrella Liability,  Business Auto, Workers Compensation program.  Want to lower these costs?  Get a quote today!   

For Help Contact Gary Wallach Call 914-806-5853 or click here to email or click here to visit our website.

Home

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

e-mail: bgesgroup@gmail.com