There are recognized patterns of higher risk. For example, Hurricanes and earthquakes do catastrophic damage to a specific geographic area. These natural disasters pose unique risks to insurance companies as a result of that history. If an insurance company insures at lot of this type of risk, it can face massive losses and have its financial stability threatened. For this reason, insurance companies try to avoid insuring too many homes or businesses (for this example) in an at risk area for hurricane or earthquake damage. While this helps keep insurance companies financially sound, it can make coverage harder to obtain for those who need it most.
Pollution coverage in commercial automobile coverage can be a tricky subject. The standard commercial automobile policy excludes coverage for pollution events unless the pollution stems from a substance necessary to the operation of the vehicle; this means substances like gasoline or brake fluid. There are three ways companies get around this exclusion – through the MCS-90, through transportation pollution liability coverage through a stand-alone policy or as part of a contractor’s pollution liability policy, or through the CA-9948 endorsement.
The problem of Social Engineering techniques called Phishing, Whaling, Spear Phishing, Pharming, or Impersonation Fraud has become significant and widespread in recent years. The insurance industry has made efforts to keep these risks in mind for cyber liability policies. Sometimes there is language added that will protect a company, but sometimes communication is added to a basic policy that would not protect a business against these specific risks.
Workers compensation systems exist to take workplace injuries out of the courtroom and resolve those claims in a more cost effective way without worrying about fault. Many employers purchase their workers compensation policies simply as a matter of necessity. But these policies cover more than just the statutory workers compensation scheme.
The Federal Motor Carrier Safety Administration uses Compliance Safety and Accountability scores to assess the safety of trucking companies and target the most at-risk companies for additional interventions. CSA scores are composed of seven BASICs (Behavior Analysis and Safety Improvement Category) which attempt to use data available to the FMCSA to pinpoint trucking companies with inadequate safety procedures. While most BASIC information is available to the public, the FMCSA does not make the crash indicator BASIC available to the public. However, the information is available to the trucking company itself and enforcement personnel.
Retirement plans are an excellent way for employers to attract and retain key employees by offering non-salary compensation. Most employers in the modern era offer some form of 401(k) or other retirement offering to their employees. These plans, though, come with many risks and regulations that employers need to pay attention to, or they could wind up costing themselves big money.
On April 1, 2019, the Department of Labor proposed a new regulation, and it wasn’t an April Fool’s joke. The new regulation would seek to update the Department’s sixty year old test for determining joint employer relationships under the Fair Labor Standards Act. It is worth noting that this is different from the long running dispute over the joint employer test decided by the National Labor Relations Board as a part of its 2013 Browning-Ferris decision. This new rule would apply to allegations that employers had failed to pay their workers legally obligated wages under the Fair Labor Standards Act. Joint employers would be jointly and severely liable for any ordered back pay.
What duties does your business owe to the employee of a customer or vendor? This may not be a question many companies have considered. They have contractual relationships with their customers and vendors that spell out the duties each owes to the other. Furthermore, that contract may require that each party obtain workers compensation insurance specifically to recompense any employee injured on the job.
The Federal Motor Carrier Safety Administration uses Compliance Safety and Accountability scores to assess the safety of trucking companies and target the most at-risk companies for additional interventions. The CSA scores are composed of seven BASICs (Behavior Analysis and Safety Improvement Category) which attempt to use data available to the FMCSA to pinpoint trucking companies with inadequate safety procedures.
More and more companies are purchasing cyber insurance as the risks to the company’s businesses from the breach of their networks expand. More companies are also requiring that their vendors and contractors obtain cyber insurance to protect themselves from breaches caused by third parties. As the cyber insurance market place grows, it’s important for companies to know what they get with their cyber insurance policies to maximize the advantage of their purchase.