As the page notes, according to the National Weather Service, about 70 percent of injuries during winter storms result from vehicle accidents, and about 25 percent of injuries result from being caught out in the storm.

These seasonal hazards can include, but are not limited to, the following:

• Being struck by falling objects such as icicles, tree limbs, and utility poles;
• Driving accidents due to slippery roadways;
• Carbon monoxide poisoning;
• Dehydration, hypothermia and frostbite;
• Exhaustion from strenuous activity;
• Back injuries or heart attack while removing snow;
• Slips and falls due to slippery walkways;
• Electrocution from downed power lines and downed objects in contact with power lines;
• Burns from fires caused by energized line contact or equipment failure;
• Falls from snow removal on roofs or while working in aerial lifts or on ladders;
• Roof collapse under weight of snow (or melting snow if drains are clogged); and
• Lacerations or amputations from unguarded or improperly operated chain saws and power tools, and improperly attempting to clear jams in snow blowers.

Employers who want to avoid being held liable for injuries sustained from these circumstances should contact an insurance agency with experience in identifying such exposures to loss and helping clients control these loss exposures. With appropriate coverage and steps taken to avoid risks, complying with OSHA’s rules regarding winter storms for your employees can be accomplished smoothly and effectively without costing your company penalties and fines.

If you have any questions about OSHA regulations, contact Clifton Waters at cwaters@siagroup.net  or call (252) 560-8778.

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The government will reduce rebates for Medicare Advantage programs but will provide bonus payments for MA plans judged to be high-quality ones. The overall score for grading the quality of those services will remain as before the ACA became law, with 36 different topics in five categories for plans covering health services, 17 different topics in four categories for plans covering drug services and all 53 topics for plans covering both health and drug services.

Beyond Medicare, other ACA initiatives in effect this year involve the launch of the Consumer Operated and Oriented Plan (CO-OP) Program, which will foster the creation of qualified nonprofit health insurance issuers to offer competitive health plans in the individual and small group markets (businesses with less than 1,000 employees). This new offering is meant to spur more options for health care among these areas. For large employers, there will be more incentives to subsidize medical coverage and requirements to improve insurance plans by eliminating exclusions, as well as new tax reporting obligations on W-2 forms.

An informed insurance provider will assist business owners and operators with updated information on how they can accommodate all of these changes and respond to them in a cost-efficient manner. Although the results of the 2012 election can affect how long these provisions remain in place, they apply to businesses and individuals at present, and compliance is necessary by businesses in order to avoid large fines for violating the terms of the ACA.

If you have any questions about health care reform, contact Lisa Jolly at ljolley@siagroup.net or call (910) 478-3379.

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Contractors should know first the difference between insurance and bonds. Insurance policies are written with the understanding that some claims will be made, while surety bonds are written to prevent fraud and other potential problems in the hope of avoiding claims.

With a bond, you guarantee that your business complies with the terms of its license on file. If the bonded business, known as the principal, cannot do so, then the obligee – the entity requiring the bond – can file a claim to recoup losses incurred. As surety providers (the agencies that issues the bond to the principal) want to make sure they are guaranteeing the work of a reputable contractor to an obligee, they must have as much background information on the principal’s financial condition. This is why credit checks, upfront collateral and payment of issuance fees are part of the bonding process.

Insurance and bonding may sound like an inconvenience at first, but many companies and individuals refuse to hire any contractors lacking them. Contractor insurance will prevent your business from going bankrupt in case of an accident on site by covering the workers and the property involved, and bonding will indicate your business has secured money that is available in case a consumer files a claim against the company. Both are wise preventive measures to take, and are required in most states.

The various levels of contractor insurance and bonding to choose from can be confusing, so consult with an insurance and bonding company that can explain what plans best meet your needs. An experienced agent will be able to provide you with the specific guidance you want about what you will be expected to contribute to approving insurance and bonding for your contracting business.

If you have any questions about bonding, contact Luann Cole at lcole@siagroup.net or call (910) 478-3363. For other insurance questions, contact SIA Group at (910) 455-7576 or (800) 682-7741.

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A regular policy for such buildings means you own the rights to the unit and are typically responsible for handling the contents and improvements. The improvements are typically the interior walls, floor coverings, fixtures and so on. The building itself is owned and insured by the condo owners association thru its master policy, which will cover the structure exterior and common walls along with any common buildings such as pool houses and the common grounds. 

Condo owners should read the HOA bylaws to see how much of the unit the owners association is responsible for and how much they should insure on their own policy. A condo owner must insure the uncovered areas or pay for damages incurred out of pocket.

To remedy this gap, the Federal Housing Administration established new rules in 2009 where lenders now require anyone who has a mortgage on a condo to purchase HO-6 insurance as well. An HO-6 policy provides for coverage on the interior walls and for personal property held within the dwelling, known as coverage C, as well as coverage A, the improvements to the unit which are the responsibility of the owner.  The HO-6 also includes liability coverage much like other HO policies.

Under federal rules, an HO-6 insurance policy must provide coverage for no less than 20 percent of the condominium unit’s appraised value. This can be a sizable amount for any business to pay as part of its purchase of a condo, and at the same time, it may not be sufficient insurance to reimburse all the costs for what equipment and data reside in the condo.

Property managers and others involved with owning condos for professional use should check with an expert advisor about what coverage they need to be insured and should expect to receive from their HO-6 policies. A prudent investment in this area can prevent a business from taking a huge financial hit should its condos sustain damages. 

If you have any questions about insuring condominiums, contact Chip Summerlin at csummerlin@siagroup.net or call (910) 478-3351.

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The NLRB requires that it must appear in a conspicuous place, where other notifications of workplace rights and employer rules and policies are posted, and be linked to an internal or external website if other personnel policies or workplace notices are posted there as well.

The biggest change employers will notice is that the new rules will reduce the time that they have to respond to union organization petitions by nearly half from the current 42 days to 24 days or less. This already has prompted concerns from one group, hoteliers, about a lack of time to engage employees in open, two-way dialogue about the impact of a unionization vote.

The best defense to this new invitation for disgruntled employees to take advantage and organize opposition to their working conditions is to have good personnel practices in place and help available when you need it. A more favorable work environment will limit such talk from occurring.

A top employee benefit and human resources management consulting firm will work with clients to anticipate the implications of changes in federal regulations for employers and how to adapt to them accordingly. The advisors will thoroughly analyze all the risks an employer faces, whether they are hazard-based, financial-based, operations-based, or strategic-based, identify vulnerabilities and establish a “blueprint” to protect his or her corporate and personal assets. 

Assessing personnel practices is one of the wisest ways for an employer to lower the total cost of risk. This review should occur as soon as possible with professionals experienced in mitigating difficulties faced with complying with new rules, particularly when they can adversely affect a business if not addressed properly and quickly.

If you have any questions about the employee rights notices, contact Bradley Carroll at bcarroll@siagroup.net or Cliff Patterson at cpatterson@siagroup.net or call toll free to 1-800-682-7741.

Photo Credit: Flickr User Batle Group: Mar Hotels, Majestic-Resorts & Lively

The Experience Rating Plan from NCCI is a method for tailoring the cost of insurance to the characteristics of an employer for risk. An experience rating provides added incentive for employers to develop loss prevention, as well as incentives to have the injured employees return to work as soon as reasonably possible. In this way, an experience rating benefits employers by promoting occupational health and safety. It is mandatory for all employers that meet a state’s premium eligibility requirements to participate in the plan.

NCCI prepares workers’ compensation insurance rate recommendations for states such as North Carolina whose insurance departments have designated NCCI as the licensed rating and statistical organization. While the North Carolina Rate Bureau acts independently in determining the state’s insurance rates, it typically follows the NCCI model fairly closely. With that in mind, here are details on the proposed formula revisions to NCCI’s Experience Rating Plan that may be adopted.

Currently, the split of actual incurred losses used in the experience rating calculation is applied as follows:

• The amount of the loss up to $5,000 is known as the primary loss, which reflects frequency.
• The amount of the loss in excess of $5,000 is known as the excess loss, which reflects severity.

The primary loss is included in the formula at 100 percent, while the excess loss is calculated at a reduced amount dependant on a company’s size. However, NCCI notes, since the last split point update occurred two decades ago, the average cost of a claim has tripled. This failure to adjust for this experience rating split point has made the Experience Rating Plan less responsive to actual claim costs.

To correct this trend, under the new NCCI Experience Rating Plan, primary losses will increase as follows:

• Effective Jan. 1, 2013, the first $10,000 would be primary or counted at 100 percent.
• For the start of 2014, the first $15,000 would be primary or counted at 100 percent.
• The primary amount would be indexed for inflation each subsequent year starting in 2015 from the first $15,000.

NCCI reports that the impact of these changes to individual employers will vary according to how many claims they have that exceed $5,000. If no claims exceed $5,000, they will generally see a decrease in their experience rating modification. This is because no additional actual losses will flow into their modification under the higher split point, and they will get the benefit of less expected excess losses in their modification calculation.

If you are concerned about how your company will be affected should the revised Experience Rating Plan be implemented, please contact your SIA Group professional for a full explanation of what will be involved. There are many factors involved in anticipating the experience rating modifications, but we are here to assist and advise you on what adjustments would be prudent to take for your own company’s situation.

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As 2011 winds down to a close, we wish you a safe holiday season and happy New Year as we thank all of our clients and readers of this blog who have shown us their support over these last 12 months. We hope our assistance has provided you with the guidance and insight you needed for your questions about business insurance, personal insurance, risk management consultation, loss control, surety bonds programs, marine insurance, and employee benefit solutions for businesses and individuals.

For some of you, we realize that this has been a difficult year, having to face business woes that have included workforce downsizing and business closings. While we cannot guarantee better news in 2012, there are several positive indicators that improvements in the business sector will take place, such as a surprising recent upswing in the U.S. economy. The impact of healthcare reform laws and the possibility of it being repealed, as well as the question of what party will be leading our country after the November elections, will play a major role in determining what changes in insurance rates and other financial matters will occur next year, but it appears unlikely a double-dip recession will materialize, which is the most encouraging prediction for us all.

Whatever happens, we at SIA Group are committed to adapting to whatever changes that lie ahead in upcoming months and ready to advise you on how to handle them as well.  As we have done in the past, we pledge to help educate and navigate our clients through the challenges we all will face in 2012, which has resulted in SIA Group being one of North Carolina’s fastest growing insurance organizations.

If you have questions about what insurance-related advice we can provide to you, contact me at ljolley@siagroup.net or call (910) 478-3351.

Photo credit: Flickr User riptheskull

The theft or loss of valuable items during the holiday season is a serious concern. Police are seeing an increase in stolen packages left at people’s doors, and there are many reports of thieves breaking into homes, cars and even churches to take away presents this year.

The cost of replacing some high-ticket items can exceed the limit set by the homeowner’s insurance. And for a new car, the expense of auto insurance must be considered in the purchase as a factor to be considered as well. If not properly insured at the outset, these Christmas gifts can end up being more of a hassle than an expression of love for the purchasers as they either absorb the losses or pay out more money than anticipated to make up the difference.

Don’t let a Grinch destroy your investment in high-quality goods. Look for a quality insurance consulting service that can advise you on covering your personal lines adequately so that you are fully compensated for your losses for any stolen or missing gift. Such coverage will bring you peace of mind for any time of the year, not just the holiday season, and make your Christmas a truly merry one knowing that you are ready in case any emergency strikes your higher-end presents.

If you have questions about insuring your holiday purchases or other gifts, contact Chip Summerlin at csummerlin@siagroup.net or call (910) 478-3351.

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Contractors are dependent on projects to keep them afloat with a positive cash flow. However, the downturn of development over the past four years, coupled with situations where money is invested in the project but cannot be recovered in a timely fashion, changes in work orders and lack of adequate tools or equipment, have all created financial costs so insurmountable that many contractors have had to shut their doors.

These expenses must be addressed as soon as possible in order to produce positive cash flow for a contractor. This must occur to be financially stable at the present, and to have the ability to obtain a surety bond – a strong indicator to the industry that you are handling the challenges of the economy and are ready for more work.

A surety bond will indicate to companies and organizations soliciting bids that you and your firm have the ability, resources and tenacity required to complete their building projects under the budget you provide. With a surety bond, they are assured that you have adequate money, personnel, equipment, capital and management expertise to accomplish what you promise to do, because an established firm has investigated and will guarantee your claims.

Your options in meeting the terms of the bonds while under financial stress can be daunting, of course. Do you cut overhead? Expand into new forms of project delivery? All of these changes have pluses and minuses that must be measured carefully to evaluate their impact on your business.

A trusted bonding firm will know its contractors’ status in terms of financial responsibility, corporate planning and objectives for the future, and it will make efforts to assist those clients with staying solvent as best as possible with recommendations for bonding and insurance options. By being upfront about your obstacles and needs, your underwriter can help you in establishing a conservative, realistic course of action that will allow your business to survive the current economic climate and eventually prosper in the long term.

If you have questions about insurance during tough business times, contact Luann Cole at lcole@siagroup.net or call (910) 478-3351.

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There has been particular concern about the rise of bed bug incidents in many American hotels, including upscale ones. Since bed bugs can arrive on the clothing or in the suitcases of guests from infested homes or other hotels harboring the pests, hotels can be an easy target for bed bug infestations. The difficulty of removing bed bugs at hotels have spurred a number of lawsuits by guests, including one where the plaintiff, a New York opera singer, is suing a Phoenix hotel for $6 million after she woke up with multiple bed bug bites.

The potential threat of such suits alleging negligence and fraud against an establishment, among other charges, is that they can result in bad publicity as well as monetary damages incurred for lawyers and other defense activities. To prevent such situations, anyone operating a hospitality business should have an emergency plan in place to address them. These plans should include:

• A bed bug monitoring strategy – Conduct proactive inspection measures, ideally daily inspections for guestrooms by attendants, monthly detailed inspections by the operations staff and quarterly inspections by a licensed pest control company.
• A method of recording any reports of bed bug bites by guests, including taking pictures of the alleged wounds
• Steps to take to prove to customers that appropriate action has been taken to keep them from bringing the problem home with them

It is important to contact a responsible insurance group that offers an emergency plan with these elements and others for handling bed bug incidents. Otherwise, they face potentially catastrophic legal action that appears more likely every day as the bed bug situation remains a nagging irritant for the industry at every level, despite efforts to eradicate it.

In addition to offering hospitality operations general liability and umbrella insurance coverage, SIA Group can help clients make a plan for covering pest control operator costs, as well as costs incurred from negative online reviews. Since SIA Group represents more than 50 percent of the pest control operators in North Carolina, agents can give hotels access to qualified, specialized pest control operators to solve bedbug issues. If you would like to inquire about insurance coverage and bedbug plans for your hospitality operation, contact Cliff Patterson at cpatterson@siagroup.net or Bradley Carroll at bcarroll@siagroup.net or call 910-478-3312.

Photo Credit: Flickr user Gilles San Martin