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Understanding Your Builders Risk Insurance End Date

Posted by David Ross on Sat, Aug 27, 2022

Knowing when your builders risk insurance ends can be a key to avoiding surprise costs. Get the best rates on all types of contractor insurance, including in Philadelphia, Pittsburgh, Erie, Allentown, Reading, Lancaster, Harrisburg and throughout Pennsylvania.There are many types of Contractors’ Insurance designed to protect your business from unforeseen circumstances. However, one type of insurance that is somewhat unique to the construction industry is Builders Risk Insurance. 

What is Builders Risk Insurance?

Builders’ Risk Insurance - also called Course of Construction Insurance or Inland Marine coverage – is a temporary insurance policy that helps protect a renovation or new building while under construction. It typically covers a building, structure, materials, tools, and equipment on a job site, in transit, or stored elsewhere during construction or renovation. 

The following perils are typically covered under a Builders’ Risk Insurance policy:

  • Theft
  • Vandalism
  • Fire
  • Explosion
  • Vehicle accident 
  • Weather events, such as hail or lightning

Some Builders’ Risk policies also include the following perils:

  • Costs incurred by delayed construction, such as lost rental income or loan interest
  • Removal and disposal of pollutants
  • Damage to temporary structures
  • Changes required to meet environmental standards 

The following perils are typically NOT covered under a Builders’ Risk policy:

  • Wind
  • Earthquake
  • Flood
  • Employee theft
  • Normal wear and tear
  • Mechanical breakdowns
  • Terrorism
  • Faulty work or materials
  • Contractual penalties 

When Does Builders Risk Insurance Coverage End?

Most insurance policies have an insurance policy period that includes an effective and expiration date. Simply stated, those dates indicate when coverage from that policy begins and ends. However, the end date of a Builders’ Risk Insurance policy can be a little more complicated. 

Because the value of a structure being built or renovated increases over time, Builders’ Risk insurance factors this changing value into its pricing. Due to this unique situation, there are times when an expiration date may change. 

  1. The owner of the property takes over

If an owner (such as the original property owner, bank, or purchaser) takes over the project (regardless of how complete the project is), the Builders’ Risk Insurance policy you purchased becomes invalid. 

  1. The Project Is Abandoned

If the contractor walks away from the site with no intention of completing the project, the Builders’ Risk Insurance policy becomes invalid. 

  1. The Property is Being Used for Intended Purpose

If all or part of the property is being used for its intended purpose during construction, the Builders’ Risk Insurance policy becomes invalid. 

  1. The Project has been Completed for 30 Days

Once an occupancy permit or other completion confirmation has been issued, the Builders’ Risk Insurance policy becomes invalid. 

Once the Builders’ Risk Insurance policy has expired, other types of insurance are available to protect the property, which are often less expensive. For example, property insurance can be purchased when the property is being used for its intended purpose or when the project has been completed for thirty days, which is typically less expensive than Builders’ Risk Insurance. On the other hand, if a property has been abandoned, there is more risk for damage such as decay, vandalism, break-ins, and arson. Therefore, insurance to cover the property will be higher than Builders’ Risk Insurance.

Need Help With Builders’ Risk Insurance?

If you have questions about Builders’ Risk Insurance or any type of Contractors Insurance, be sure to speak with one of the experienced agents at American Insuring Group.

Not only do we specialize in Contractors Insurance, but as independent agents, we also compare multiple insurance companies to ensure you pay the lowest premium for the coverage you need.

Call today at (800) 947-1270 or (610) 775-3848, or connect with us online.

Tags: Construction Insurance, Construction Risk Insurance, Contractor Insurance, Commercial Insurance, Business Insurance, Builders Risk Insurance

7 Common Mistakes Restaurants Make When Filing an Insurance Claim

Posted by David Ross on Sat, Aug 20, 2022

Properly filing a restaurant insurance claim can help you save on restaurant insurance in Philadelphia, Reading, Lancaster, Pittsburgh, Erie, Harrisburg, Allentown, PA and elsewhere.Savvy restaurant owners purchase Restaurant Insurance to help protect their business, but insurance policies and claims can be complicated. The experienced agents at American Insuring Group can help you navigate your insurance options, policies, and claims.

However, it’s helpful to understand and avoid the most common errors restaurant owners make when filing an insurance claim:

Not Understanding Your Policy

Your insurance policy states explicitly what “perils” it does and does not cover. It can be extremely frustrating to discover something you thought was covered isn’t when you go to make a claim (not to mention the time wasted making a claim while also trying to recover from the incident).

Therefore, you need to read and understand what your policy does and does not cover, so you can either fill the gap or have a plan in place if an uncovered event occurs. Ask your insurance agent to clarify anything you’re unsure of. 

You should also know your policy’s deductible – the amount you must pay before insurance kicks in on a claim. If you decide to increase your deductible to lower your premiums, make sure you have enough available cash to cover that deductible if you need to make a claim. 

Finally, it’s crucial to understand if your policy values damaged property according to an actual cash value (factors in depreciation and normal wear and tear) or the replacement value (does not factor in depreciation and normal wear and tear). If the damaged property is valued according to actual cash value, you need to be prepared to pay the difference out of pocket. 

Not Filing a Claim Promptly

If someone is injured in your restaurant or your oven is damaged by fire, call your insurance company immediately. Waiting to file the claim can make the process more difficult or even lead to having the claim denied. A good rule of thumb is to file a claim within the first 48 hours of an incident, but the sooner, the better.

Not Working with Insurer

Don’t think of your insurance adjuster as the enemy. Be professional, polite, and cooperative, and promptly provide whatever documentation they request. Failure to cooperate may provide grounds to deny a claim. However, don’t be afraid to ask questions or even appeal an estimate if you have reasonable proof that the lost property is undervalued. 

Not Documenting Damage and Claim

You will need proof of damage to receive a payout, so immediately record the time and date of the incident and take photos and/or videos of the damage. Also, document your communication with your insurer – keep a record of mailed correspondence and emails along with the time, date, and substance of verbal communications. 

Disposing of Damaged Items

You may think photos will be enough when filing a claim, but you should also keep the damaged property as physical evidence until the claim is closed. 

Admitting Fault

Never admit fault if someone is injured in your restaurant. There are too many frivolous lawsuits, and you may not honestly know the cause of an incident until it is investigated. In addition, accepting responsibility will make it difficult for your insurer to defend you if there is a lawsuit. Plus, some policies don’t allow you to assume fault without the insurer’s consent. With these policies, admitting fault can lead to a breach of contract, denial of a claim, or termination of coverage.

 Paying Claims Out of Pocket

You may be tempted to pay the medical costs of someone injured in your restaurant. However, your insurance policy will not reimburse you for payments made out of pocket and could even result in a denied claim. 

Want to Save on Restaurant Insurance Costs?

Work with one of the experienced independent agents at American Insuring Group. We can answer any of your questions, and – as independent agents – we compare pricing and coverage with multiple insurance companies to make sure that you pay the lowest premium for your insurance coverage!

Call us today at (800) 947-1270 or (610) 775-3848, or connect with us online.

Tags: Restaurant Insurance, Commercial Insurance, Business Insurance, Restaurant Insurance Costs

The Key to Lowering Workers’ Comp Costs is Good Communication

Posted by David Ross on Sat, Aug 13, 2022

Good communication can reduce accidents and help you save on Worker's Compensation insurance in Philadelphia, Pittsburgh, Erie, Reading, Lancaster, Harrisburg, Allentown, Lebanon and throughout PA. Contact us today to learn more.Good communication is key to lowering Workers’ Compensation (WC) Insurance costs. Unfortunately, many business owners are under the false impression that communicating with injured employees can cause WC claims and increase the cost of those claims. Nothing could be further from the truth.

Lack of communication and miscommunication in the claims process can cost your business more. For example, injured employees typically hire a lawyer – not to get more money but because of inadequate communication with their employees. For example, one study found that “46% [of injured employees] said they hired attorneys because they felt the claim had been denied when, in fact, it had not yet been accepted into the process.” And the truth is that WC cases that involve attorneys often cost more. 

An injured employee may be worried about their injury, recovery, and how they will continue to support their family. In addition, they may be in pain or facing unfamiliar medical treatments or medication. Plus, WC claims can be complicated. This can result in a scared, stressed, confused, and possibly angry employee. If the injured employee understands that you are concerned about their well-being and are willing to help them through the WC claims process, you become an ally (rather than an adversary). The only way to accomplish that is through good communication before, during, and after a workplace injury. 

Workers’ Compensation Communication

Good communication should be part of the onboarding process of new employees:

  • Foster a Positive Culture of Safety – From the start, you need to create a culture of safety that emphasizes safety as a core value of your business.
  • Foster Ongoing Communication – Employees need to know that it is safe for them to report safety concerns and injuries without fear of retaliation.
  • Provide WC Information – Employers should provide all employees with information about WC, including how to report an injury, what type of injuries are covered, who to contact if they have questions, a list of designated medical providers, etc.
  • Training – All employees should receive ongoing safety training to minimize the risk of injury and to know what to do if an injury occurs. Supervisors should receive training regarding Workers’ Compensation in addition to safety training. CFO advises, “Supervisors are often in the best position to shape workers’ initial expectations about what should happen, post-injury.”

Good communication is also crucial when an injury occurs:

  • Seek Appropriate Medical Attention – When an injury occurs, your first priority should be to ensure that the injured employee receives appropriate medical attention.
  • Thorough Investigation – Every time an injury occurs, a thorough investigation of the incident should occur. The investigation should include interviews with the injured employee and any co-workers who witnessed the incident.
  • Documentation – Every incident should be well-documented while everything is still fresh in everyone’s mind. 

Ongoing communication during the claims process is critical for a timely resolution:

  • Designate one employee to be the primary contact point for injured employees. That employee should be patient, kind, understanding, and familiar with the WC claims process.
  • Provide written and verbal information about the claims process, what the injured employee should expect, etc.
  • Regular communication (at least every other week) throughout the recovery process allows employers to monitor the recovery process, update the injured employee on the progress of the claim, and answer any questions or concerns the injured employee may have.
  • Communicate Genuine Empathy and Trust. Regular informal phone and in-person conversations and get-well cards show the employee that you are concerned about their well-being.
  • Discuss Return-to-Work Assignments. Communicate to injured employees that you are concerned about their well-being and that you are looking forward to them returning to work when it is medically safe to do so. Discuss the possibility of light-duty or transitional duty opportunities with medical providers and the injured employee. 

The Key to Lowering Workers’ Compensation Costs

Good communication should begin with your insurance provider. The independent agents at American Insuring Group listen carefully to better understand your needs, so we can ensure that you get the right workers' compensation insurance coverage at a great price!

Get started today by calling (800) 947-1270 or (610) 775-3848, or connect with us online.

Tags: Workers Compensation Insurance, PA Workers Compensation Insurance, workers comp costs, Commercial Insurance, Business Insurance

11 Types of Commercial Insurance for SMBs

Posted by David Ross on Sat, Jan 08, 2022

Commercial Insurance for Small Business in Philadelphia and throughout PAOwning a small business can be an extremely rewarding experience, but it also comes with its share of risks that can impact the success of your business – employee injuries, fires, lawsuits, thefts, and the list goes on.

The good news is that there is insurance to help your business recover from just about any catastrophe. Unfortunately, research shows that many U.S. businesses are completely uninsured, and 75% of U.S. businesses are underinsured by 40% or more.

Whether you're opening a new business or have been in business for years, it's important that you understand the potential risks your business may face, what insurance policies are required (by law, contracts, landlords, etc.), how financially prepared you are in the event of an unexpected incident, and what types of commercial insurance are available to you. Only then can you make an educated decision about which insurance policies are right for your business.

11 Types of Commercial Insurance to Protect Your Business 

  1. Commercial General Liability (CGL) Insurance – CGL is relevant to any business and helps protect your business from financial loss that results in property damage, bodily injury, libel, slander, lawsuits, and settlements or judgments.

  2. Commercial Property Insurance – If your business has property or physical assets, property insurance helps protect them against loss or damage due to events such as fire, hail storms, civil disobedience, and vandalism.

  3. Workers' Compensation (WC) InsuranceIn Pennsylvania (and most other states), WC is mandated for nearly every business with employees. If an employee is injured on the job, WC helps pay lost wages, disability payments, death benefits, and medical costs and helps protect your business against employee lawsuits.

  4. Business Owner's Policy (BOP) – BOP is relevant to most small business owners – especially home-based businesses. It combines all of the typical insurance coverage – General Liability, Commercial Property, and Business Income Insurance - into one, simplifying the process and often saving you money.

  5. Business Income Coverage/ Business Interruption – If you are forced to shut down your business after experiencing covered property damage (such as fires, storms, etc.), Business Income coverage can help replace lost income.

  6. Cyber Insurance -Small or medium-sized businesses are involved in 43% of all data breaches, and 61% of all small and medium-sized businesses report experiencing at least one cyber-attack in the previous year. Cyber Insurance helps cover your business' liability for data breaches that involve sensitive customer information, such as credit card numbers, driver's license numbers, and health records.

  7. Commercial Vehicle Insurance – If you use a vehicle for any business – such as delivering food or transporting products – Commercial Vehicle Insurance helps cover bodily injury or property damage claims if the vehicle is involved in an accident.

  8. Product Liability Insurance – If your business manufactures, wholesales, distributes, or retails a product, Product Liability Insurance can protect you against financial loss resulting in malpractice, errors, and negligence.

  9. Gap Insurance – Often overlooked, Gap Insurance helps cover the cost difference to pay off a lease balance when the vehicle's value is less than the leasing company's payoff in a total loss accident.

  10. Commercial Umbrella Insurance – Insurance liability policies include a limit (the maximum amount an insurer will pay if a claim is filed). Commercial Umbrella Insurance helps cover the difference if a claim exceeds a policy's limit.

  11. Professional Liability/Indemnity Insurance (Aka Errors and Omissions Insurance)– If your business is sued due to a mistake made in a professional service your company provides, Professional Liability helps cover legal costs.

There are also insurance policies specific to unique risks in certain industries, such as Liquor Liability Insurance for restaurants and bars that serve alcohol, Builders Risk Insurance for contractors, and Bobtail Insurance for truckers.

We Offer The Best Insurance For Your Business

Every business is unique, which is why working with an experienced independent insurance agent is the key to obtaining the right insurance for your business.

So give one of the professional agents at American Insuring Group a call today at (800) 947-1270 or (610) 775-3848, or connect with us online.  

As independent agents, we will also compare the cost of your coverage with multiple insurance companies to ensure you pay the lowest price for the right coverage.

Tags: Commercial Liability Insurance, commercial vehicle insuarance, Commercial Insurance, commercial property insurance

8 Tips to Lower Your Commercial Insurance Costs

Posted by David Ross on Sat, Aug 14, 2021

Save on Commercial Insurance in Pennsylvania: Philadelphia, Allentown, Pittsburgh, Erie, Reading, Lancaster and elsewhere.Commercial Insurance is an excellent investment for any small to medium-sized business. Liability insurance, workers' compensation, or any other type of commercial insurance is designed to help protect your business. But that doesn't mean you should pay more than you have to for that coverage.

Here are some tips to help you lower your Commercial Insurance costs:

Create a Safer Work Environment

Whether you run your business out of an office or a Jobsite, creating a safe work environment is your responsibility. And it's in your best interest as fewer workplace injuries mean lower expenses, including lower Workers' Compensation and Commercial Liability premiums.

There are several measures every business can take to create a safer work environment:

  • Create a culture of safety
  • Use signs to alert employees about potential hazards
  • Provide PPE when appropriate
  • Keep things clean
  • Maintain equipment
  • Implement safety protocols, etc.

Develop Safer Employees

Safety training should be a part of any employee training – especially in higher-risk occupations, such as restaurant, trucking, and construction. But even an office presents certain hazards, such as ergonomic injuries, eye strain, and fires.

The Occupational and Safety Health Administration (OSHA) offers various safety and health training and articles based on hazards, industries, etc.

Minimize the Risk of Theft or Damage

Prevent employee theft by doing background checks on potential employees and hiring employees who don't have a criminal background. Have a written policy on employee theft and make sure all employees understand those policies. Divide payroll and billing responsibilities, restrict access, keep track of inventory, etc.

Protect your business assets from theft and vandalism by installing solid doors and good locks and ensure that your exterior building entrances are well lit. In addition, consider installing security systems – cameras and alarms.

Protect your information from being stolen through cyber-attacks by training employees on security principles, providing firewall security for your internet connection, ensuring proper passwords and authentication is used, etc.

Combine Your Insurance

Many insurance companies offer a discount when you combine or "bundle" different types of insurance – such as commercial auto and commercial property insurance. And did you know that depending on your business structure, you may even be able to bundle business and personal policies to save even more on insurance premiums?

Maintain Good Credit

Often, insurance companies will look at a new business owner's personal credit history before providing an insurance quote, and typically the better your credit history, the lower your premiums. Establishing good credit under your business name – especially if your personal credit is less than stellar – could also help lower your insurance premiums.

Increase Deductibles

The deductible is the amount that you pay out of pocket when you make a claim. The higher you set your deductible, the lower your insurance premiums should be. However, before selecting a high deductible to lower your insurance premiums, make sure you will be able to cover that deductible if you have to make a claim.

Review Your Insurance Policies Annually

In business, as in life, things change. For example, this past year, you may have purchased or sold a company vehicle, made improvements on your property, added or eliminated an employee. Any of these changes can affect your insurance premiums and the amount of coverage you need, so it's essential that you review your policy each year.

Work with an Independent Insurance Agent

The agents at American Insuring are independent agents, which means we aren't restricted to working with one insurance company, unlike most of our competitors. Instead, our agents will check with multiple insurance companies to ensure that you get the lowest rate possible on your insurance needs.

For a free quote, give us a call today at (800) 947-1270 or (610) 775-3848, or connect with us online.

Tags: Workers Compensation Insurance, Commercial Insurance

How to Protect Your Business From Construction Defects

Posted by David Ross on Sat, Jul 31, 2021

How to Protect Your Business From Construction Defects while saving on contractor and construction insurance in the greater Philadelphia, Harrisburg, Allentown, Lancaster, Reading, Pittsburgh, Erie regions and throughout PA.Let's face it – no one is perfect. Not even contractors. Construction defects occur, and contractors can be held liable for those defects.

One significant lawsuit has the potential to put you out of business, which is why it's imperative that you understand potential construction defects, how to prevent those defects and potential lawsuits, and how to protect your business with the right Contractors Insurance.

What is a Construction Defect?

Modern Contractor Solutions magazine defines a construction defect as "a defect in the design, the workmanship, and/or in the materials or systems used on a project that results in a failure of a component part of a building or structure and causes damage to person or property, usually resulting in financial harm to the owner." Construction defects can lower a home's value and can even cause bodily injury or property damage.

Construction defects come in many forms. A defect can be as simple as an improperly painted room or as complicated as a foundation that affects the structural integrity of the building.

Some of the most common and most costly construction defects include the following:

  • Structural Integrity
  • Mechanical
  • Electrical
  • Doors, windows, and glass
  • Finishes

According to FindLaw, courts typically categorize construction defects into four categories:

  • Design Deficiencies, which typically relate to "building outside of a specified code." For example, a poorly designed roof can cause water penetration, poor drainage, etc.
  • Material Deficiencies are the use of inferior building materials. For example, using cheap windows that – even when properly installed – leak.
  • Construction Deficiencies is poor quality workmanship that can lead to several issues, such as water infiltration, cracks, plumbing leaks, pest infestation, etc.
  • Subsurface Deficiencies are the lack of a solid foundation. For example, subsurface conditions that are not properly compacted and prepared for adequate drainage can lead to a structure moving or shifting, flooding, etc.

And there are two types of defects – patent and latent. A patent defect is an obvious flaw that can be easily seen, such as a crack in the foundation or flaking stucco. In contrast, latent defects are hidden issues that aren't as easy to identify, such as plumbing that is improperly installed that causes leaks and damage. These defects may not be evident until well after a project has been completed.

Anyone who works on a project – contractors, subcontractors, developers, suppliers, architects, and engineers - can be held liable for construction defects. Laws regarding construction defects are complicated and vary by state.

Currently, in Pennsylvania, the statute of limitations on construction defects is two years from discovery, and the statute of repose is 12 years after completion of construction. Lawyers.com explains, "A statute of limitations sets a lawsuit-filing time limit based on when the potential plaintiff suffered harm, a statute of repose sets a deadline based on the mere passage of time or the occurrence of a certain event that doesn't itself cause harm or give rise to a potential lawsuit."

How to Limit Liability

"An ounce of prevention is worth a pound of cure" is a well-known proverb that certainly applies when it comes to liability. Your first goal should always be to prevent liability by taking the following measures:

  • Draft well-crafted contracts that set expectations
  • Fulfill the terms of the contract
  • Keep schedules realistic
  • Provide quality workmanship
  • Hire reliable and competent subcontractors
  • Perform and document periodic inspections
  • Keep communication professional and reasonable
  • Ensure everyone working on the project is adequately insured

How to Protect Your Business

Sometimes, despite all of your best efforts, errors do occur, which is why the right insurance is crucial to any construction company's success. The following types of insurance can help protect your business from construction defects:

  • General Liability Insurance – covers injuries (other than employees), property damage, libel, and slander
  • Completed Operations Liability Insurance – covers a completed job or service
  • Professional Liability Insurance – covers lawsuits related to failure to deliver services, negligence, and errors and oversights
  • Builder's Risk Insurance (sometimes called Course of Construction Insurance or Inland Marine coverage) – covers damage that occurs while a building is under construction

Get the Right Contractors Insurance and Start Saving

The independent insurance agents at American Insuring Group specialize in Contractors Insurance, so they can 1) ensure you have the right coverage and 2) ensure you pay the lowest price for that coverage by shopping the market extensively for you.

Give us a call today at (800) 947-1270 or (610) 775-3848, or connect with us online for a free estimate.

Tags: Construction Insurance, Contractor Insurance, Commercial Insurance, Contractor Safety Management

5 Tips to Improve Your Workers' Compensation Plan

Posted by David Ross on Sun, Apr 11, 2021

Workers Compensation Insurance protection in Philadelphia, Reading, Allentown, Lancaster, York, Harrisburg, Pittsburgh and everywhere in PA.No Workers' Compensation Insurance program is perfect; however, if you want to improve your company's bottom line, it's imperative that you continually look for ways to improve your WC program.

Here are five tips to help any business improve its Workers' Compensation Plan. 

 

1. Get Started

This may sound like common sense, but sometimes the most challenging thing with any project is just getting started. Here are five areas that you should focus on to see the most significant impact. Pick one and get started!

  1. Improve safety
  2. Reduce costs
  3. Reduce litigation
  4. Build relationships with medical providers
  5. Get injured employees back to work 

2. Create a Culture of Safety

The Bureau of Labor Statistics reported that in 2019 there were 5,333 fatal work injuries recorded and 2,814,000 non-fatal work injuries that resulted in 888,200 cases with days away from work. The median number of days away from work was eight. These work-related fatalities, injuries, and illnesses are costing U.S. businesses billions of dollars every year, which is why workplace safety should be a top priority at any company. 

Creating a business culture that focuses on safety will have one of the most significant impacts on reducing your organization's number of injuries. That culture must be embraced by all employees at every level of the organizational chart. 

Here are three tips to help create a culture of safety:

  1. Create a safety program with a set of controls designed to help protect employees from potential harm within the workplace.
  2. Ongoing training should be a big part of any safety program. According to the National Safety Council, "Investing in workplace training is money well spent. Employers with effective safety and health training programs benefit from fewer workplace injuries and claims, better employee morale, and lower insurance premiums."
  3. Employees should be recognized and/or rewarded for committing to workplace safety practices. 

3. Set Program Goals

Bill Copeland said, "The trouble with not having a goal is that you can spend your life running up and down the field and never score." Research shows that setting measurable and attainable goals boosts performance because it motivates and challenges employees to increase their effort, allows them to focus better, and helps them prioritize. 

Goals you may want to consider are reducing the number of injuries, reducing the time it takes to get an injured employee back to work or reducing the number of litigation claims. 

Once you have specific goals in place, create a plan of action and consider recognizing or rewarding employees for helping accomplish those goals. 

4. Avoid Common Mistakes

There are certain mistakes that many employers make. Knowing those mistakes is the first step to correcting them. Here are seven common Workers' Compensation mistakes to watch for:

  1. Not having a safety plan in place or not enforcing it
  2. Not having a return-to-work program
  3. Underestimating the projected annual payroll
  4. Not assigning the correct classification codes or not changing those classifications when business operations change
  5. Listing an employee as a subcontractor – on purpose or by mistake.
  6. Poor claims management
  7. Working with inexperienced insurance agents 

5. Work With an Experienced Independent Workers' Compensation Insurance Agent

The agents at American Insuring Group specialize in Workers' Compensation Insurance. We have a clear understanding of the WC process and a proven track record of providing exceptional service to businesses – both big and small. 

The American Insuring Group's independent agents can help ensure that you get the best coverage at the lowest cost on all of your business insurance needs because, as independent agents, they are free to shop and compare among competing insurance carriers. Give us a call at (800) 947-1270 or (610) 775-3848 or connect with us online today!

Tags: Workers Compensation Insurance, workers comp, workers comp insurance, workers comp costs, Commercial Insurance

Opening a New Restaurant? Hope for the Best, Prepare for the Worst

Posted by David Ross on Sat, Feb 06, 2021

Protect Your Restaurant with the right Restaurant Insurance in Philadelphia, Pittsburgh, Erie, Harrisburg, Allentown, Lancaster and all of Pennsylvania.You know what they say, “Hope for the best but prepare for the worst and make sure you have the right Restaurant Insurance!” Okay, we made that last part up, but it is true. 

One accident has been known to put restaurants out of business. So, before all of your hopes are dashed, think about how you can prepare for the worst. Thinking ahead will help you minimize the “worst” scenarios – such as fires, food spoilage, and accidents - and help ensure that you have the right insurance coverage if the “worst” does happen. 

Here are five things to consider to help you prepare for the worst. 

1. Employee Training

Yes, employee turnover rates in the restaurant industry are high. According to the National Restaurant Association, the restaurants-and-accommodations sectors' turnover rate was 74.9 percent in 2018. 

But it is also true that employees are your greatest asset and some of your highest risk. While we’re talking cliches… Your business is only as strong as your weakest link. Employees should be regularly trained on safety procedures, customer service, and - if your restaurant serves alcohol - alcohol service. 

Safety Procedures:

  1. Help avoid employee injuries by teaching proper lifting techniques, using equipment properly, appropriate personal protective equipment, etc.
  2. Keep your customers safe by training employees how to handle, prepare, and store food properly and what to do in the case of a fire, robbery, etc. 

Customer Service 

Help minimize litigation issues by providing customer service training to employees who interact with customers.

Alcohol Service

In Pennsylvania, it is against the law to serve alcohol to a "visibly intoxicated person," and your restaurant could be held legally responsible for injuries and damages caused by an intoxicated person you served. Any employee serving alcohol should know how to recognize and prevent intoxication and how and when to refuse service. 

One of the best ways to prepare for the worst is to have a comprehensive and on-going training program appropriate for each of your employees. 

2. Maintain Equipment

You rely on kitchen equipment to run your restaurant. If a refrigerator malfunctions, food could spoil, causing food loss or worse - foodborne illnesses. If your stove malfunctions, you won’t be able to cook food for your customers, or worse – it could cause a fire. The best way to avoid equipment breakdown is with proper maintenance. 

You should have daily, weekly, monthly, quarterly, and yearly maintenance checklists that employees understand and follow, such as temperature checks on refrigerators and ice machines, cleaning schedules, inspection schedules, etc. Not only will this help your equipment last longer, but it will also help minimize unexpected breakdowns and potential disasters. 

3. Maintain Your Restaurant

Minimize the risk of property damage and injuries to customers and employees by maintaining your restaurant. Keep your kitchen – countertops, floors, equipment, etc. - clean to avoid grease fires, food contamination, and employee injuries. Keep aisles and exits clear of clutter. Address any tripping hazards, such as loose tile or worn carpets. Make sure outside walkways and parking lots are safe and promptly remove snow and ice following a storm. 

4. Follow Health and Safety Regulations

Every restaurant has a set of health and safety regulations issued by local, state, and federal entities they must follow. As a restaurant owner, you should be familiar with and understand those regulations or risk fines, a loss of reputation, or even possible closure. 

Standard regulations include employee hygiene, food storage, and equipment safety. Remember, those regulations are designed to keep everyone safe, so following them will also help ensure your employees' and customers' safety and the success of your business. 

5. Technology

Use technology to your advantage but also protect yourself from potential risks associated with technology. 

For example, security cameras can help protect your property from thieves and vandals and fraudulent Workers’ Compensation Insurance claims. A computer or point-of-sale device can save you time, allow you to accept credit cards, and store customer information that can be used for marketing purposes. But, in the wrong hands, that information can create problems for your restaurant, your employees, and your customers, so take steps to keep that information safe and secure. 

Be Prepared With the Right Restaurant Insurance!

Sometimes, despite your best-efforts, accidents do happen, so you need to be prepared. Insurance can help protect your business if you’re sued, experiences property damage, etc., so you can get back to business. 

American Insuring Group can help you prepare and, as experienced independent agents, help you obtain the lowest price for the right restaurant insurance coverage. We're independent, so we're free to shop among many competing insurance carriers, resulting in a lower price than you're likely to receive from single-brand agencies. Contact us today at (800) 947-1270 or (610) 775-3848 or connect with us online.

Tags: Restaurant Insurance, Commercial Insurance, Restaurant Insurance Costs

Lower Contractors Insurance Costs by Lowering Your Experience Rating

Posted by David Ross on Sat, Dec 19, 2020

Here's How to Lower Your Contractors Insurance Costs in Philadelphia, Reading, Erie, Pittsburgh, Lancaster and Throughout Pennsylvania.Want to lower your Contractors Insurance Costs? Lower Your Experience Rating.

Your construction company’s experience rating helps determine your Workers’ Compensation Insurance costs and is based on your company’s WC claim history compared to other companies similar to yours.

You can think of a lower experience rating as a reward for having a safer work environment or perhaps as an incentive to create a safer work environment. The bottom line is that a lower experience rating results in a lower insurance premium.

The Experience Rating

The Pennsylvania Compensation Rating Bureau (PCRB) describes your experience rating as “a systematic, mathematical method of modifying future premiums.” It is based on past claims and helps determine your experience modifier, which is an adjustment of your annual premiums based on the likelihood that you will file a claim.

You qualify for an experience rating if your audited payroll or other exposures over a three-year period, multiplied by the current PCRB lost costs by classification, add up to $10,000 or more.

The experience rating is continually being updated based on a sliding three-year experience period, which according to PCRB, “assures a stable historical record for the individual employer, while also using the most recent available loss experience of the employer.” This means improving workplace safety and minimizing claims can change your experience rating and the premiums you pay.

What if your insurance premiums are less than $10,000? The merit rating plan enables businesses to receive a 5% discount or surcharge depending on their loss history, which provides financial incentives for small businesses to operate safer workplaces.

The following factors affect your experience rating, which determines your experience modifier:

  • Number of Claims
  • Cost of Claims
  • Frequency of Claims
  • Severity of Claims
  • Closed vs. Open Claims
  • Claims History of other businesses in your industry
  • Years in business
  • Number of employees
  • State minimums

The following formula then determines your WC premiums:

WC Premium = Class Code Rate X Experience Modifier X payroll/$100

So, you can see how a lower experience modifier can lower your WC costs.

NOTE: The experience rating formula places more emphasis on loss frequency than it does on loss severity. Therefore, a business with many small losses can end up with a higher experience modifier than a company with fewer, but more severe, losses.

Tips to Lower Your Experience Rating

It comes as no surprise that the number one tip to lower your experience rating is to reduce the number of accidents in your workplace. How do you do that?

  1. Institute a Workplace Safety Program
  2. Engage management and employees in safety protocols
  3. Properly train employees and management on safety
  4. Identify and mitigate hazards
  5. Provide employees with proper PPE
  6. Have adequate staff levels
  7. Inspect and maintain all equipment

The Insurance Information Institute offers this advice, “Review, respond, and improve. Promoting workplace safety is an ongoing process. You should review and improve your program—especially in response to accidents or ‘near misses.’ Employees should always be encouraged to report newly identified hazards or workplace incidents so that you can respond appropriately.”

The other thing you can do is get injured workers back to work as quickly and safely as possible with a Return-to-Work program.

Here's How to Save on All Your Commercial Insurance Needs

American Insuring Group specializes in Contractors Insurance and in all types of commercial insurance. Our independent agents will compare the cost of your coverage among many insurance companies to help you get the best rate on all your Contractor Insurance needs.

Call today at (800) 947-1270 or (610) 775-3848 or connect with us online.

Tags: Workers Compensation Insurance, Construction Insurance, Contractor Insurance, workers comp costs, Commercial Insurance, Contractor Safety Management

Is a Workers Comp Insurance Loss-Sensitive Plan Right for You?

Posted by David Ross on Sat, Apr 18, 2020

save_workers_comp_insuranceMore and more employers are moving away from the traditional guaranteed Workers’ Compensation Insurance plans into loss-sensitive plans. Loss-sensitive plans can help some businesses save money, but for others, a loss-sensitive plan can cost a company more than a guaranteed plan.

How do you know which type of Workers’ Compensation plan will yield the highest return for your business? Here are three tips to help.

Understand the Different Types of Loss-Sensitive Plans Available.

Retrospective Rating Plans

The Insurance Journal defines a retrospective rating plan as a plan “in which the final premium is based on the insured’s actual loss experience during the policy term, subject to a minimum and maximum premium, with the final premium determined by a formula which is guaranteed in the insurance contract.”

With a retrospective rating plan, an employer pays a standard premium - a combination of a basic premium and a loss projection - at the beginning of the policy year. After eighteen months, the insurer uses the employer’s actual losses to calculate a retro premium. If the retro premium is lower than the standard premium, the employer receives a premium from the insurer for the difference. If the retro premium is higher than the standard premium, the employer has to pay an additional premium.

Typically, there is a cap on the additional premium (usually 1.20 times the standard premium) an employer must pay.

Large Deductible Plan

A large-deductible plan is basically a guaranteed WC plan that includes the employer self-insuring part of its compensation losses with a large deductible. With this type of plan, the employer pays a lower premium but is then required to set up an escrow fund and reimburse the insurance company for claims up to a certain dollar amount.

Captives

The Insurance Journal defines captives as “any insurance company that is owned by one or more organizations, and that insures only the owners of the company.” There are typically two types of captives used for WC. One is a single owner, where the company that is insured has complete control over everything, including investments, operations, etc. The other type is a rent-a-captive, which is owned and run by an organization other than the insured, such as a broker, a fronting insurance carrier, etc.

Understand Your Risk Tolerance

The advantage of a guaranteed Workers’ Compensation Insurance plan is that your premiums are very predictable. You can put it into your budget and not worry about it. The cost of loss-sensitive plans can vary significantly. You can include an estimate in your budget, but the actual cost can vary, along with the frequency and timing of payments.

IF your company has a low tolerance for risk, a guaranteed plan may be a better choice. However, if you’ve created an effective safety program, provided all of your employees with appropriate safety training, have a robust return-to-work program, and have minimized workplace injuries, your loss projections should be reasonably accurate. Therefore, you may want to consider taking on more risk with a loss-sensitive plan. You’ve reduced risk within your organization, and a loss-sensitive plan could provide a higher return on your investment.

Consider the Financial Impact of Each Type of Plan

You should understand the impact each type of plan will have on your cash flow and the tax implications of each. A guaranteed cost plan may cost you more; however, it provides consistent payments, and you know how much you’re going to pay. You can put the cost of your premiums into the budget and not worry about it.

However, a loss-sensitive program can offer cash flow advantages because you’re paying for claims as they occur rather than paying an insurance company upfront for expenses that may not occur for months or even years.

Need More Help Lowering Workers’ Compensation Costs?

American Insuring Group is committed to providing the best insurance coverage at the best price. First, we offer blogs for a variety of industries to help improve workplace safety, which will help lower WC costs.

Plus, we are independent agents who specialize in Workers’ Compensation Insurance. Give us a call today at (800) 947-1270 or (610) 775-3848 or connect with us online.

Tags: Workers Compensation Insurance, PA Workers Compensation Insurance, workers comp costs, Commercial Insurance, Return-To-Work Programs