Tag Archives: Insurance

Liability insurance for contractors is an essential coverage, but what does it cover?

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However cautious you may be when carrying out your projects, mishaps and accidents can still occur. This is an indeterminate situation that is beyond your control. You can’t always rely on your people and equipment to perform perfectly. If you are legally obligated to cover accident and machine expenses, it will cause delays and income reduction for you as the contractor. Liability insurance for contractors is undoubtedly the safest way to prevent financial ruin. In a nutshell, an insurance policy for contractors covers all third-party claims. Any damages or accidents that occur on your business site can also lead to lawsuits and complaints from clients and other parties. You and employees under your supervision are covered when claims are made against the insurance. A contractor is a business manager and a  contractor. The construction site requires many employees to work. Some of these individuals are also expected to commute and work across multiple job sites. The possibility of these people being involved in an accident or causing one to a passerby is thus high. Typically, contractors have liability insurance to cover Property damage and bodily injury. A person may sue a contractor if he or she suffers an injury or damage to their property. Completing operations and  products and Advertising injuries and personal injuries: Libel, slander, and false claims may result in damages. In addition to other types of insurance coverage, contractor liability insurance is a must-have for any contractor.

To obtain a contractor liability insurance quote, please contact www.safeproins.com

What Is Completed Operations Insurance?

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Your business’ product or completed operations away from the location of your business are covered under the Products-Completed Operations coverage. Your business can be covered if it causes property damage or bodily injury.

General liability policies usually include coverage for completed products operations. Once operations are completed or abandoned, it covers liabilities arising from the insured’s products or business operations that are conducted off-premises.

When a contractor’s contracted operations have ended, completed operations insurance protects him or her from liability for property damage or injuries to third parties. Completion of operations insurance usually applies to construction products as well as goods and medicines made by consumers. Completion operations insurance is most commonly included in general liability insurance. Additional or separate policies may be purchased by contractors and manufacturers for losses and injuries incurred off their properties that exceed their general liability limits.

By purchasing completed operations insurance, contractors and manufacturers transfer their risks to a third party. In addition to completing work, contractors must take precautions to avoid liability expenses.

Contractors and manufacturers can maintain financial stability as they settle claims with completed operations insurance policies. It can defend you against claims of negligence and breach of contract. In the case of damage resulting from the work of the contractor or from their products, the coverage provides reasonable compensation. Punitive damages may be settled through indemnity insurance. In the event of a product recall, complete operations insurance isn’t applicable.

Insurance for Completion Operation Contractors’ insurance covers legal defense and any judgments or settlements resulting from accidents associated with completed work covered by the policy.

OSHA will monitor the whistleblower cases under Antitrust and Money laundering Act: DoL

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(Washington, DC, Economic & Insurance News by Insurance Market 360) –  Department of Labour (DoL), recently notified that, OSHA, shall investigate whistleblower complaints logged under the new Antitrust and Money Laundering provided by the legislation. This decision was taken keeping in view of increase in cases especially in professional safety and health administration in the recent days.

OSHA will probe into all concerns related to the direct and indirect actions of superiors or government exhibiting cause and related actions or support such incidents which are covered under the above two laws.

DoL will administer the registered cases under Wendell H Ford aviation investment and reforms act of twenty first century until OSHA is ready with its provisional final protocols related to both the acts.

DoL prime focus is to safeguard the rights of employees and to protect them from being harassed by supervisors; so as that transparency and credibility are developed leading to good governance in the work places.

The prime objective of the whistle blower retaliation program is to ensure that complainant is legally protected from 20 domains related to workplace safety and health, airline, commercial motor carrier, consumer product, environmental, financial reform, food safety, health insurance reform, motor vehicle safety, nuclear, pipeline, public transportation agency, railroad, maritime, securities, tax, antitrust, anti-money laundering laws, and for engaging in other related protected activities.

More commentary can be obtained from, www.whistleblowers.gov.

Source: www.dol.gov

Reference: https://www.dol.gov/newsroom/releases/osha/osha20210219

https://www.insurancemarket360.com/insurance-news/osha-will-monitor-the-whistleblower-cases-under-antitrust-and-money-laundering-act-dol

 

Research reveals 22% growth in Global commercial segment of Q4, 2020 FY

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(Economic & Insurance News by Insurance Market 360) – Investigation done in commercial insurance sector across various regions and the globe in both private and public domains for the fourth quarter of 2020 with the support of Marsh, the lion share holder, indicate an aggregate of 22% increase which is 3% more than Q3, 2020.Global market insurance index was initiated in 2012 to study the trends across countries and continents which is a good resource and reference for various stake holders in insurance sector.

The major emphasis was laid on property insurance pricing, finance and professional lines, causality and composite ranking across regions and the nations. Analysis reported a sharp hike in finance and professional domains from 40% in Q3 to 47% in Q4.Property pricing decreased by 1%, whereas composite pricing has been increasing consistently for the last 9 years.

Though the overall increase is found in the fourth quarter, there is no significant change witnessed in certain regions other than UK and Pacific. Property insurance and Directors and officers reported moderate results. Region wise outputs reported Continental Europe, Asia, and LAC had moderate levels of price increases for three quarters of the financial year 2020.

Reports at national level reveal that Latin America, Pacific and US exhibited a positive growth of 9%, 35% and 44% respectively in Q4.Public sector Company D & O on an average reported medium results they had very good progress in US & Australia and exhibited an increase in the range of 25% to 50% in other countries of the world.

Source: www.marsh.com

Reference: https://www.marsh.com/us/insights/research/global-insurance-market-index-q4-2020.html

https://www.insurancemarket360.com/insurance-news/research-reveals-22-growth-in-global-commercial-segment-of-q4-2020-fy

VERMONT is now a licensing authority to state based systems: NAIC

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(Washington, Economic & Insurance News by Insurance Market 360) – National Association of Insurance Commissioners, NAIC, on 29 January 2021 announced the inclusion of Vermont department of financial regulation to licence state based systems, SBS a 33rd in its latest count.

Michael Pieciak, Vermont Department of Financial Regulation Commissioner, expressed that, “SBS provides us with the opportunity to streamline our processes and improve our services and I am pleased to have licensed SBS and look forward to completing the implementation process.” He added that, “this is an exciting opportunity in our SBS implementation that we expect will result in across the board improvements to the services we provide our consumers, licensees and insurers.”

Electronic system will not help in rendering timely and quality services related to licences, complaints management, enforcement with fewer amounts of efforts and also to work on par with the national standards and protocols in Insurance sector.

Vermont as a licensing agency to SBS is expected to offer a variety of product services in the domains of facilitating licences to producers and companies, design and conduct capacity building programs and monitoring them, consumer related services, enforcement of the statutory norms, fraud reporting and support systems, exam tracking and revenue management.

For more details and list of the 32 licensed organizations and for other details you may look into the official portal of NAIC, www.naic.org

Source: www.naic.org

Reference: https://content.naic.org/article/news_release_vermont_becomes_33rd_naic_member_license_state_based_systems.htm

https://www.insurancemarket360.com/insurance-news/vermont-is-now-a-licensing-authority-to-state-based-systems-naic

Private Insurance organizations to face EPLI Challenges: RPS

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(Rolling Meadows, IL, Economic & Insurance News by Insurance Market 360) – Covid_19 affected Employment Practices Liability Insurance (EPLI) pricing and it is expected to continue in 2021 according to a report by Risk Placement Services.

Manny Cho RPS EVP, Executive Lines, opined that, “in order to obtain and maintain profitability, carriers are not only looking for rate adequacy but also, limiting their exposure through reductions in capacity”.

California, Illinois (Chicago) and New York are experiencing a jump in prices due to Covid. Other industries like hotels, restaurants and travel are deeply affected with EPLI rates. Sensitive analysis is done on EPLI Underwriting especially on private insurers regarding the impact of Covid, financial health of the organization, health and safety of employees and stability of the company.

Cho added, “At the onset of COVID, underwriting questions were related to a business’s reopening plans and the safety protocols in place to ensure employee safety”. Further scrutiny is also done on the operations, expansion plans and recruitment policy of the company to gauze their business stability and risk management.

In December 2020, the U.S. Equal Employment Opportunity Commission (EEOC) released short document pertaining to vaccine administration, disability factors and religious beliefs to private insurers in addition to risk mitigation, work environment with safety measures.

It’s important for agents to help clients facilitate a decent insurance opportunity by deeply understanding the personal, professional and financial status of a client.

Insurers are exploring opportunities in financial services and technology in spite of all odds. Situations might have affected the underwriting procedures, but there is always scope to expand and explore.

Source: www. rpsins.com

Reference: https://www.rpsins.com/knowledge-center/items/epli-for-private-companies/

https://www.insurancemarket360.com/insurance-news/private-insurance-organizations-to-face-epli-challenges-rps

US Insurers need to be extra cautious in administering fraud payments: OFAC

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(Economic & Insurance News by Insurance Market 360) -The US Treasury Department’s Office of Foreign Assets Control (OFAC) on 1 October 2020 released an official reminder reminding about the fraud payments and reimbursement and their consequences to the economy and the insurance organizations.

Though, the statutory body did not make any alterations in the existing law, the reminder note publication is of great importance in the current pandemic and vulnerability wherein the probability of manipulations’ are increasing with the use of high end technology and strategies; due to which anti-social activities can increase and adversely affect the economy. It also suggested all the insurance service providers to be extremely keen and aware about the list of “specially designated Nationals and blocked persons” while executing any financial related settlements.

The funds raised from the insurance products by illegal acts can be used to strengthen the criminal, terrorist or cyber attack activities which can create huge damage to the infrastructure, people and the economy in major. In case if anyone is found guilty, agency will ban such entities and process with legal initiations as per the US Law.

In this regard, MARSH has developed strategies’ to address the issues with thorough investigation, recheck and reconfirm before the final settlement is done. Company is also open to do the required facilitation with regard to risk management, precautionary steps to avoid the negative consequences and provide professional way forward services so that insurance providers can play the game safe and secure so as not to fall down and get legally punished!

Source: www.marsh.com

Reference:https://www.marsh.com/us/insights/research/ofac-ransomware-advisory-for-us-companies.html

https://www.insurancemarket360.com/insurance-news/us-insurers-need-to-be-extra-cautious-in-administering-fraud-payments-ofac

A global initiative by Lloyds’ to address risk in Insurance sector

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March 10, 2021

(London, Economic & Insurance News by Insurance Market 360) -Lloyds’ in February 2021 initiated FUTURESET to resolve both ongoing and projected concerns of the Insurance industry by filling the gaps in knowledge, understanding and addressing risk management. This Model was developed by Chartered Insurance Institution (CII) and Lloyds’ market Association (LMA).

John Neal, CEO of Lloyd’s, opined that, ”The launch of Futureset sets in concrete our commitment to be a catalyst for action, and in doing so empowering innovation, economic growth and human progress around the world.”

The six part system of Risk Masterclass is expected to integrate and facilitate service providers, government and consumers for best possible solutions of interconnected challenges and concerns due to Covid-19 pandemic and environment challenges by coordinating with industry experts, academia specialists, government and other interested parties for the larger benefit of the customers and the economy as a whole.

A panel discussion in this context was administered by the CEO of Lloyds with John Doyle, President and CEO of Marsh, Paula Jarzabkowski, Professor of Strategic Management at the University of London’s Business School, Patrick Sterling, RIMS Vice President & Senior Director of Legendary People and Risk, at Texas Roadhouse.

Further, AN EXPERT TAKE a video series was launched by Anne McElvoy from The Economist. These episodes will bring in experts to share their knowledge and guide the stake holders. Robert Hannigan, a leading authority on cyber security and former director of GCHQ, Ann Pettifor, political economist and author of ‘The Case for the Green New Deal are to be the part of future virtual sessions.

Source: Lloyds.com

Reference:https://www.lloyds.com/about-lloyds/media-centre/press-releases/lloyds-launches-futureset.

California Long Term Care Insurance Task Force

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While announcing the six appointments to the new Long Term Care Insurance Task Force, Insurance Commissioner Ricardo Luna said, “Our new Long Term Care Insurance Task Force will explore greater options for Californians to help them age with dignity and security. With their deep experience in insurance, culturally competent care and services, and the health needs of older Californians, these Task Force members are ready for the challenge of envisioning a statewide insurance program that is sustainable and meets the needs of our growing diverse population. The health disparities exposed by the current pandemic on our aging population and the services and supports they will need in coming years make this Task Force even more critical today.”

Luna has been a strong supporter of the legislation that has resulted in the Long Term Care Insurance Task Force being established within the California Department of Insurance. He believes this will help address the need of older Californians for long-term care services and insurance.

Exploring the design and implementation possibilities for an insurance care program that would provide choices to people across the state interested in insuring themselves for a future where they might need long-term care and support in the event of a cognitive or functional disability, would be the goal for the Task Force, created by Governor Gavin Newsom signing AB 567 (Calderon, Chapter 746, Statutes of 2019).

Chaired by the Insurance Commissioner, the 15-member Task Force also includes:

  • the Director of the California Department of Health Care Services (DHCS) or his designee,
  • the Director of the California Department of Aging or her designee,
  • six individuals appointed by the Commissioner,
  • four individuals appointed by the Governor,
  • one appointment made by the Speaker of the Assembly,
  • and one appointment made by the Senate Committee on Rules.

Supporting the formation of the Task Force, DHCS Director Will Lightbourne said, “The lack of affordable long-term care is a serious threat to the well-being of many Californians, and yet another symptom of the systemic inequities in our health and social support systems. I’m pleased to join this task force and work on solutions that will increase access to long-term care and help provide healthy and dignified lives for our aging populations.”

California Department of Aging Director Kim McCoy Wade added in support, “Affording the care we need as we age, so we can live where we choose in the community, is a top priority for the thousands of Californians we heard from in developing the Governor’s Master Plan for Aging, released in January. Innovative public-private leadership and partnership, such as this new Task Force provides, are essential to developing effective and equitable solutions. I’m eager to work with Commissioner Lara and members of the Task Force to move this important work forward.”

With an inaugural meeting in early spring 2021, the Task Force hopes to submit a feasibility report for the Commissioner, the Governor, and the Legislature by January 1, 2023 which will be analyzed by an actuarial team to ensure both a program that is solvent and that delivers adequate benefit. The target date for submission of the actuarial feasibility report is January 1, 2024

More details available at: http://www.insurance.ca.gov/0500-about-us/03-appointments/ltcitf.cfm.

California Insurance Commissioner Lara Fills Advisory Boards and Committees

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January 14, 2021.

(Los Angeles, CA, Economic & Insurance News by Insurance Market 360 ) – On April 24, new appointments to multiple advisory boards and committees in order to protect policyholders in the state.

New members joined the California Automotive Assigned Risk Plan Advisory Board (CAARP), the California Insurance Guarantee Association (CIGA) Board of Governors, and the Workers’ Compensation Insurance Rating Bureau (WCIRB) Governing Committee. CAARP advises Commissioner Lara on the operation of programs like the California Low Cost Auto Program and others; the CIGA Board oversees the operations and management of the guarantee association to protect policy holders, and the WCIRB Governing committee oversees issues related to pure premium rates, classifications, rating plans, rating systems and manual rules and policy, as well as endorsement forms. It is a private organization.

“I am very pleased to announce these appointments to the CAARP Advisory Committee, the CIGA Board of Governors, and the WCIRB Governing Committee,” said Insurance Commissioner Ricardo Lara. “These committees and boards’ primary goal is to protect California consumers and these members will help us meet that goal.”

The next meeting of the CAARP Advisory Committee is Wednesday, May 20, 2020. The CIGA Board of Governors will meet on May 6, 2020, and the WCIRB Governing Committee will meet on June 10, 2020.

Source: California Department of Insurance.