Category: Workers Comp

What is a “Separation of Insureds” Clause?

Posted on by butlervetinsurance

Did you know when signing a contract to do business with another entity, you are agreeing to add them as an insured under your Liability insurance? Several months later, an accident may arise from the contracted job, and the other party sues you for damages. Can you file a claim for this suit under the policy that covers both of you? If so, isn’t this like the party suing itself, because the same policy that covers them as an insured is the one under which they’re now attempting to collect damages?

The answer to the first question is “yes, you can file that claim.” A standard Liability policy will cover a suit by one of its insureds against another unless there’s a specific endorsement prohibiting such coverage. Under such a “separation of insureds” clause, all policy provisions apply “separately to each insured against whom a claim is made or suit is brought.” So, from the policy perspective, the key issue is whether an insured is being sued — not who’s bringing the suit. As with any other claim, whether the policy pays for the damages will depend on a determination of liability and applicable coverage limitations and exclusions.

Although the insured party is attempting to collect under a policy that covers them, legally they aren’t suing themselves, but another insured; and the “separation of insureds” clause allows coverage for such situations.

Protection for “insured vs. insured” claims provides a valuable benefit under your liability coverage. However, bear in mind that any damages for such claims will drain your coverage limits. So, be careful about which and how many additional insureds you allow to be covered by — and yet still sue you and collect under — the policy you purchased just to protect yourself!

If you’d like more information, please feel free to get in touch with our Business insurance professionals. We’re here to serve you. 877-994-6787

7 Tips on Classifying Workers as Employees vs. Independent Contractors

Posted on by butlervetinsurance

Small business owners can hire individuals as either employees or independent contractors. Which classification a hired individual falls under is often a confusing process for business owners, but it’s this critical classification that affects what tax documents must be filed; how much you, the business owner, pays in taxes; as well as whether or not you should be withholding from a particular worker’s paycheck or not.

If you own a business and hire people, then you should keep these seven points in mind as you go about hiring workers as either employees or independent contractors:

  1. If you, as an employer, intentionally or otherwise misclassified your workers, then you could suffer significant tax bills and be facing hefty penalties for not filing the appropriate tax forms and not paying employment taxes.
  2. You should know and understand how the Internal Revenue Service (IRS) determines the relationship between a worker and a business. The IRS uses the following three factors in determining this relationship:
    • Type of relationship, which means how both your business and the worker views the relationship.
    • Financial control, which refers to whether or not your business can control or direct the business and monetary aspects of the worker’s job.
    • Behavioral control, which refers to whether or not your business can control or direct how work is done through means like training or instruction.
  3. IRS Form SS-8, which is labeled as the Determination of Worker Status for Purposes of Federal Employment Taxes and Income Tax Withholding, can be filed by employers and/or workers. This form essentially asks the IRS to determine if a specific worker’s status should be classified as an employee or as an independent contractor. IRS form SS-8 can be obtained online at IRS.gov or by calling 1-800-829-3676.
  4. Generally speaking, a worker should most likely be classified as an employee if the employer can direct or control what is being done and how it’s done.
  5. Generally speaking, a worker should most likely be classified as an independent contractor if the employer only directs or controls the result of the work, and not the manner, means, or methods being used to accomplish the end result.
  6. Do ensure that workers are aware of their classification, or worker status. This will not only help them avoid higher tax bills, but also avoid losing any valuable benefits.
  7. Check out the small business tab on the IRS.gov website and IRS publications 15-A, 1779, and 1976 to find out more about determining a worker’s status as either an employee or as an independent contractor.

We hope this article helps. If you have any questions, comments or concerns, please feel free to contact one of our knowledgeable protection coaches today at 877-994-6787, that’s 877-99-INSURE or email us at [email protected]. We are happy to help!

From Our Family to Yours-Happy 4th of July!

Posted on by butlervetinsurance

From our family to yours, we wish each of you a safe and happy 4th of July holiday weekend.

In speaking to many people, typical celebrations will include parades, fireworks, ceremonies, barbecues, family gatherings, attendance at theatre events, concerts and even weddings!

We’d love to hear what you are doing, if you have a moment, please scroll down, click comment and let us know 🙂

Wishing you and your all the best,

The Stromsoe Insurance Agency Total Protection Team

PS Here’s a little 4th of July history –  “Independence Day, commonly known as July 4th or the Fourth of July, commemorates the Continental Congress’ adoption of the Declaration of Independence on July 4, 1776. The document, primarily written by Thomas Jefferson, served as a formal announcement that the 13 American colonies were no longer part of the British Empire and would henceforth be free and independent states. Regarded as the birthday of the United States of America.

Do You Keep An Open Dialogue With Your Doctor?

Posted on by butlervetinsurance

The Commonwealth Fund’s International Health Policy Survey reported that in the U.S.:

• 38% of study participants left the doctor’s office without getting important questions answered.

• Only 53% said their doctor involved them in treatment option decisions.

• 41% said their doctor had not reviewed their list of medications in more than two years.

Each of the above problems can bring about serious health consequences. How do you compare with these statistics? Is there a potential drug interaction crisis looming, with the potential to create an outlier cost for you to bear? Below are a few tips to help you keep an open and detailed communication with your doctors.

1.  Write down the names and the dosage of all the medications you take. Although you might feel that you have your medications memorized, it is not uncommon to confuse bits of data when you’re trying to pass the information along to your doctor. It is better to hand the doctor a written list so that he can quickly extract the data he needs.

2.  Before you visit the doctor, think about topics you would like to discuss during this visit. For example, if you were diagnosed previously with high blood pressure, your doctor might have asked you to reduce salt intake, exercise more, quit smoking, and take an anti-hypertensive medication. Since he will be curious about your progress, make notes of what you plan to tell him.

3.  Make a list of questions you would like to ask the doctor. You will be more able to think clearly about questions in the comfort of your home, than when you are sitting on an exam table and wearing a paper gown.

4.  Arrive on time for your appointment. If you are anxious because you’re late, and the doctor is aggravated that he is running behind schedule, the lines of communication might not be open.

5.  Be aware that your doctor is neither a miracle worker with a perfect solution to every problem; nor is he an adversary purposely ignoring your needs. He is a highly trained professional using his best judgment to guide you in both treatment options and preventive care. If you feel he is veering off course, speak up and be involved in guiding the conversation.

6.  Don’t be discouraged if the doctor refers you to a nurse or physician’s assistant. These professionals are also highly trained and will often spend significant time explaining medical information to you.

7.  Jot down new instructions as well as answers to your questions. It can be difficult to remember all that is said during an office visit, especially if you received unexpected news or information.

8.  If you get home and realize you are confused about the doctor’s instructions, don’t hesitate to call the office. It is far better to get the information straight in your mind, than to make errors in your care or medication routine.

9.  Pay your doctor bills. A medical office is a business, and if you fail to pay your bills, your relationship with your doctor can suffer.

Overall, remember to be an active partner with your doctors as they pursue both medical treatments and preventive healthcare.

Please call anyone on our total protection team if we can help answer any questions-877-994-6787

The Economic Climate is Not The ONLY Great Unknown in 2010

Posted on by butlervetinsurance

The latest stats about your potential risk in the event you are sued in 2010, unfortunately, are not in your favor.

Proper insurance not only indemnifies you, it defends you too.

The Facts >>>>>>>>>  http://bit.ly/d3OCbS

Here’s 4 easy ways to reach us if you have any questions:

1. Phone 877.994.6787

2. Fax 951.677.6265

3. Email – [email protected]

4. www.SIAonline.com

Rolling, Unoccupied Cars In Parking Lots

Posted on by butlervetinsurance

I was at the store when a frantic crowd gathered. Someone had neglected  to set their car in park and/or set their emergency brake. The car rolled back into another car.

What should you do no matter what?

1. Take photos immediately, including the license plate number of the other vehicle

2. Document all possible phases of the incident, including names, phone numbers etc of all witnesses.

3. Record a video form any and all witnesses

4. If the damage is substantial enough, call you agent for further advice

If we can ever help answer any other questions, pleae contact our protection coaches at 877-994-6787 or agency.thebutlerweb.com/contact.asp

Running A Home-Based Business – Do You Need A Small Business Policy?

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Like most new home-based business owners, you might believe that your Homeowners or Renters insurance coverage offers sufficient protection. That is unfortunate, because in most instances these policies offer little to no coverage for business-related losses.  Homeowners policies are not designed to cover business losses. Most offer a small amount of business property coverage, meant to cover incidental items, such as a computer used for office work.

Take a look at the following list. If one or more of the items below apply, you might want to consider a Business policy for your business:

  • 1. Business Property, Stock or Equipment greater than $10,000 in value. A Business policy will allow you to insure your office contents, equipment, and stock. A Homeowners policy will likely have little, if any, coverage for business-related items.

 

  • 2. Clients visit your office/use your product/depend on your service. Liability insurance can help cover your exposure to lawsuits resulting from slip and falls, product liability claims, personal injury claims, etc. Perhaps even more importantly, it will provide defense costs for such actions. Homeowners policies do not have coverage for business liability. In a few instances, you might be able to purchase an endorsement to allow coverage for slip and falls due to customer visits, depending on your type of business.

 

  • 3. Damage to your office/workspace would require you to relocate/find a temporary substitute. Extra Expense coverage in a Business policy will provide funds for a temporary office/workspace or cost of a mobile trailer near your damaged office site.

 

  • 4. An Error or Omission could result in a lawsuit that would need to be defended/could seriously damage your business. Errors and Omissions coverage will protect you from judgments and defense costs resulting from past mistakes.

 

  • 5. Damage to your workplace could cause you to lose business, perhaps even lose some customers permanently. Business Interruption coverage will help pay for expenses until your property is repaired or sales return to normal (depending on the policy form).

 

  • 6. Your employees use their vehicles to make deliveries or run errands for your business. Non-Owned Automobile Liability will protect your business in the event that your employee has a serious accident during the course of running an errand for your business.

 

Contact our office today for more information about your home-based business insurance needs!  Here are 4 easy ways to reach us:

1. Phone  877-994-6787  
2.  Fax  951-677-6265  
3.  Email – [email protected]  
4.  Visit www.SIAonline.com

Home Worker Injuries – Are You Safe From Lawsuits?

Posted on by butlervetinsurance

As the housekeeper is vacuuming your living room, she trips over one of your daughter’s toys and seriously injures her back. While your neighbor’s teenage son is mowing your front lawn, he steps in a large hole and sprains his ankle. Will your Homeowners insurance cover you if one of these workers decides to file a lawsuit? Many homeowners do not realize that they could be held financially liable if a maid, landscaper, nanny, or another house worker were to suffer from an injury on their property. Here are some things you should keep in mind before you hire a home worker.

Is that worker an employee or a contractor? When you hire someone to help out around the house, you should figure out whether he or she is an employee or a contractor. This is one of the factors that determines whether or not you are liable for a worker’s injury. So, how do you know if the worker is considered your employee or a contractor? It all comes down to how much control you have over the worker.

Let’s say you hire a nanny named Lisa to take care of your children and do some light cleaning in your home. Lisa follows your instructions about how to care for your kids and how to complete certain household tasks. You provide Lisa with the supplies and tools she needs to do her job. Because you have control over how Lisa works, she is most likely considered your employee.

On the other hand, let’s say you hire a professional landscaper named Bob to fertilize and mow your grass, trim the hedges, and plant flowers in your yard. Bob uses his own lawn mower and yard tools and he does yard work for other homeowners, as well. Bob also has a team of workers who help him with his business, and he pays these workers. In this case, Bob probably would be considered an independent contractor.

Of course, these are two fairly simple examples. If you are uncertain about whether a worker in your home is considered a contractor or an employee, consult a lawyer or tax professional.

Understanding Workers Comp insurance. Some states require homeowners who have house worker “employees” to carry Workers Compensation insurance coverage for them. However, even if your state does not require this, you should still consider purchasing this insurance for your employees. Why? Because if one of your employees is injured on your property, you might have to pay for their medical bills and other expenses out of your own pocket. However, with Workers Compensation coverage, the insurance company will cover the costs.

Alternatively, if you hire a house contractor, such as a landscaper, carpenter or plumber, they should be covered by their own Workers Compensation insurance.  It’s important to ensure they are covered for worker injuries, property damage, and uninstalled materials. Don’t just take their word for it. Ask for written proof that they have a contractor’s license, Workers Compensation insurance for themselves and any subcontractors, and General Liability coverage. If the contractor doesn’t have enough coverage, you might be held financially liable. However, depending on the circumstances, you might be able to file a lawsuit against the contractor, as they are required by law to have sufficient Workers Compensation coverage.

Know what your Homeowners insurance covers. When it comes to coverage for home workers, every Homeowners insurance policy is different. Depending on your home state, your policy might include a provision that provides limited coverage for minor workers performing lawn mowing or other tasks that require the use of power tools on your property. On the other hand, your policy might specifically exclude domestic workers such as nannies or maids. Your policy might cover the injuries of household employees, but only after a lawsuit is filed against you. Because Homeowners policies vary widely, it’s important to read through your contract and talk to one of our insurance agents before you hire a home worker.

Consider an Umbrella policy. If you discover that your Homeowners policy offers limited or no liability coverage for workers, you might consider purchasing additional Liability insurance. Although you might have some personal liability coverage through your Homeowners policy, it’s probably not nearly enough to cover a major lawsuit from a home worker. If someone were to file a lawsuit against you, you could end up losing hundreds of thousands of dollars or more-even if you win.

Check with the Better Business Bureau. Before you hire a home worker, you should contact the Better Business Bureau for more information. They can tell you if any consumers have filed complaints against the worker. Visit the bureau’s Web site at www.bbb.org.

If our total protection team can help you make the right decision, give us a call at 877-994-6787 , 877-99insure.

Teen Employees-Rights & Responsibilities In The Workplace

Posted on by butlervetinsurance

Every year, millions of teenagers join the workplace for the first time. A first job can be a positive experience for many, teaching them discipline and responsibility in addition to giving them some extra money. However, some teens find themselves working in hostile environments. Their supervisors might treat them unfairly because of their sex or race, harass them, hassle them about reasonable work accommodations, and retaliate against them if they complain to upper management about these conditions. Employers who tolerate mistreatment of employees, including teens, could find themselves in trouble with the law.

The federal Equal Employment Opportunity Commission described several examples of harassment of teens on its www.YouthAtWork.com Web site:

** In Pennsylvania, a 19 year-old shift supervisor at a Mexican restaurant sexually assaulted a 16 year-old female employee. His manager accused the girl of making it up, but after the supervisor confessed to the police, the EEOC sued the restaurant, which paid $150,000 in restitution to the employee and a fine to the EEOC.

**A store manager at a fast food place in Kansas harassed and sexually assaulted a 14 year-old girl. He eventually went to prison, but because the company had permitted him to harass at least four female employees, it paid restitution, wrote letters of apology, and was required to implement mandatory sexual harassment training for employees.

**Several women, both teen-aged and older, were sexually harassed by a store manager at a California bagel shop. Their complaints to management did not improve the situation, and eventually some of them quit. The EEOC sued the shop, the offending manager lost his job, and the owners of the shop paid a steep penalty.

The EEOC’s Web site lists several rights and responsibilities of teen-aged workers, including:1. The right to work free of discrimination.
2. The responsibility to treat other employees without discrimination.
3. The right to work free of harassment.
4.  The right to complain about job discrimination without punishment, and the responsibility to inform management of discrimination.
5.  The right and responsibility to request workplace changes for the worker’s religion or disability.
6. The right to keep medical information private.

To avoid harassment claims from any employees, young or old, employers should:* Adopt, promote, and enforce a formal policy against sexual harassment.
* Take reports of harassment seriously. Investigate all reports and take appropriate action, if required.
* Emphasize to supervisors and managers that they are not to retaliate against employees who complain of harassment.
* Provide training for managers on how to recognize sexual harassment and how to receive complaints.
* Train new employees on how to recognize harassment and how to make complaints.

Employers should also carry Employment Practices Liability insurance (EPLI) to protect themselves against the financial consequences of claims that do occur. EPLI policies cover the employer’s liability for discrimination, wrongful termination of employment, sexual harassment, rights violations, and other harmful acts committed by company managers. One of our professional insurance agents can give advice on the different policies available and their cost.

Employers have a responsibility to provide a safe working environment for all employees, but that responsibility is magnified when it comes to teenage employees. Keeping your workplace harassment-free will ensure a happy, productive workforce and keep your attention where it should be — on growing your business.  If you have any questions or need assistance with your protection coverages, please contact any of our Total Protection Team at 877-994-6787 or email us – [email protected].

What are you doing to manage risk is some of the areas described above?

Independent Contractors – Evaluate Your Business Contracts Closely

Posted on by butlervetinsurance

In the U.S. today, one result of corporate downsizing, is that there are many independent contractors in the marketplace. After picking themselves up off the ground and dusting off their overcoats, many former members of “Corporate America” have struck out on their own. With that shift comes freedom, but also new anxieties, and, perhaps, new found insurance issues. One such issue is that of the business contract.

Detailed business contracts with explicit and often confusing legalese have become a common document for independent contractors to evaluate. The contractor must often either acquiesce to unfavorable terms dictated by corporate legal departments, or forego the contract. Below are some suggestions on how to resolve the contractual dilemma of whether or not to sign on the dotted line.

1. Speak with your attorney. Although it might not be practical to have a lawyer review every contract offered to you prior to signing, it is usually better than the alternative. It is probably better to limit the legal review to advice rather than negotiations, though there are some contract negotiations for which it would be appropriate to have a lawyer or a representative agent present. However, for a typical small contract where you are being asked to sign boilerplate language, it might send the wrong signal to your client.

2. Consult with our insurance agents. Contracts generally contain clauses that might impact your insurance coverage. They might require either indemnification, certificates of insurance, and/or additional insured status for the client (on your Professional Liability, General Liability, and/or Workers Compensation policies to name a few). Each of these provisions could impact your insurance as follows

  • Indemnifications – a typical indemnification provision looks something like this: “Consultant (or contractor or subcontractor)” shall indemnify, defend, and hold harmless Client against any and all claims, liabilities, losses and expenses arising out of or in connection with Consultant’s performance of the Services hereunder … ” This is considered a unilateral indemnification. It is the least favorable to the contractor and you would do well to request a mutual indemnification provision where both parties agree to indemnify the other for liability arising out of their respective negligence. The worst that can happen is your suggestion being rejected.
  • Certificates of Insurance – it is quite common for certificates of insurance to be requested by your client. This documentation of your insured status serves as a confirmation to the existence of your coverage. With the request often comes a provision for notice to the client if coverage lapses. Check with your insurer to see if he will agree to this provision. Many insurers don’t have a mechanism for notifying certificate holders of the imminent lapse of a policy and will not agree to, though some will compromise with less onerous “endeavor to” wording, such as, “we will endeavor to notify you within 30 days of the termination of the policy … ”
  • Additional Insured – additional insured status for your client can provide an acknowledgement of the liability that you have taken on in the contract and effectively transfers the liability to the insurer, subject to all the terms and conditions of the policy. Check with our agents to see if there is any cost for adding on additional insureds. If there is any charge at all, it is usually nominal.

 

3. Review your Liability insurance contracts for exclusions. Many liability contracts exclude contractual liability, with the exception of liability that would attach to you in the absence of the contract. An example of a contractual liability that might be excluded would be a penalty for failing to meet a deadline. On the other hand, indemnifications are often considered a liability you would incur regardless of the contractual provision. For instance, if a suit is brought against you and your client, and it is clear that it was your work that was being questioned, your insurer might offer to defend your client to avoid the potential for a hostile witness.

4. Create your own engagement letter. It is always a good idea to spell out your thoughts regarding payment terms, work expectations, limitations of liability, and other aspects of the work you will perform. In lieu of or in addition to a client’s contract, this letter could help to prevent future misunderstandings.

I hope this article is of help to you, leave any question or comments you may have below.  If you are in need further assist you in any way please contact us – here are 4 easy ways to reach us:

  1. Free Call 877-994-6787
  2. Fax 951-677-6265
  3. Visit www.SIAonline.com – 24/7
  4. Email us – [email protected]

 

Please let us know about your experiences and how we can help you!