3 Construction Insurance Must-Haves

Whether you’re a subcontractor or a general contractor – whether you build small backyard sheds or giant commercial buildings – whether you’re a one-man remodeling business or a multi-million dollar construction company, there are three types of insurance you need to consider.  In other words, the size of your business and the size of the project make little difference.  If you want to protect your investment, your employees, and even your business, there are three types of commercial insurance to consider: Liability Insurance, Builders Risk Insurance, and Flood Insurance. 

Commercial Liability Insurance (A.k.a. Commercial General Business Liability Insurance)

Commercial Liability Insurance is a critical part of any business’s insurance portfolio and particularly pertinent in the construction industry where accidents and injuries are more common. Commercial Liability Insurance protects you and your company if someone gets hurt on your property or if you or an employee causes property damage or injury on a job site.  This insurance helps cover medical and legal defense costs and settlements if you are sued.  Extended litigation (including attorney fees and court costs) can quickly deplete your cash reserves - even if the claims are found to be unwarranted.  

The amount of liability insurance is proportionate to the cost of the project.  Generally, you should have coverage that is two to three times the amount of the construction project budget.  In addition, businesses with higher risk for damages, such as roofing contractors, may need higher coverage.

Before you begin to build, repair, or remodel any structure – even as a subcontractor - common business standards require that you provide evidence of liability insurance.  Adequate General Liability Insurance safeguards your business – even in today's litigious environment.

Builder’s Risk Insurance (A.k.a. Course of Construction Coverage)

Builder’s Risk Insurance (construction insurance) is property insurance that covers damage to a building during construction.  It may cover just the structure itself, or it can include materials, fixtures, and/or equipment being used in the construction or renovation of the building.  Lending and municipal authorities will often require this insurance, and it can apply to both new construction and remodeling projects.

Most Builder’s Risk Insurance policies cover damage caused by fire, wind, lightning, hail, theft, vandalism, and damages by aircraft and vehicles. Items that generally are not covered include damage due to earthquake, employee theft, water damage, and mechanical breakdown.  Damage resulting from faulty design, planning, workmanship, or materials is rarely covered, and it’s important to note that Builder’s Risk insurance doesn’t cover tools and equipment or the property of others (that’s why it’s important for sub-contractors to have their own insurance).

Flood Insurance

Flood insurance is typically covered by the National Flood Insurance Program and usually has a 30-day waiting period before entering its coverage period.  This is done so the insurance isn’t purchased only when a flood is expected. 

Flood insurance is required in high-risk areas and strongly recommended in moderate-to-low risk areas.  It normally covers damage caused by tidal waves, overflow of inland water, unusual accumulation of runoff water, and water exceeding normal levels. 

For more customized information about your construction insurance or contractor insurance needs, contact American Insuring Group at (800) 947-1270 or (610) 775-3848. We'll help get you the right coverage for your projects at the right price. That's because we're independent agents offering over 25 competing brands of insurance, so we're free to find you the best deal in quality insurance protection. Contact us today.

Is there a non-profit organization near and dear to your heart that you would like to assist financially?  Maybe it’s a religious organization, a pet shelter, or a children’s home.  You aren’t alone. It turns out that we are a very charitable people with more than 95% of American households giving an average of just under $3,000 a year to charity.  But, do you ever wish that you could do more?  There is a way to give more financial support to your favorite charity.

A life insurance policy can provide the opportunity to make a much larger gift to charity than you might otherwise be able to afford. Although the cost to you (your premiums) is relatively small, the amount the charity will receive (the death benefit) can be quite substantial. Yes, that charity may have to wait for the donation, but as long as you continue paying the premiums, the charity is guaranteed to receive the proceeds when you die.  Plus, this method may provide some unexpected advantages.

Here are some unique advantages to the gift of a life insurance policy:

• Because life insurance is a contract that passes outside the will, it cannot be contested in probate proceedings.
• The payment of a life insurance policy death benefit is private—not a matter of public record.
• Although payment of the life insurance death benefit is deferred, the charity may be able to use the cash value immediately.
• The charity does not pay income or estate tax on the benefit.
• There are no probate delays.
• Assets are preserved for the donor's family.
• Since life insurance proceeds paid to a charity are not subject to income and estate taxes, probate costs, and other expenses, the charity can count on receiving 100 percent of your gift.

How to gift a life insurance policy:

1. You can make a charity the beneficiary of an existing policy.  Maybe you took out the policy when you had children living at home; now all those children are grown and independent.  They don’t need your financial support.  If you name the charity as the beneficiary of the policy, they will receive the policy’s death benefit when you die.  Although there are no current tax benefits with this approach, the value of the policy will be removed from your estate for federal estate tax purposes.  Plus, if the policy is a form of cash value life insurance, you still have access to the cash value of the policy during your lifetime.
    
2. You can make a charity the owner and beneficiary of an existing policy. With this approach, you transfer full ownership of the policy to the charity.  You would make annual tax-deductible gifts to the charity in an amount equal to the premium, and the charity would pay the premium to the insurance company. Upon your death, the charity will receive the policy’s death benefit.  This approach also removes the value of the policy from your estate for federal estate tax purposes and provides you with current federal income tax deduction. To do this, you must assign all rights in the policy to the charity. By doing this, you give up all control of the life insurance policy forever. This strategy provides the full tax advantages of charitable giving because the transfer of ownership is irrevocable.
    
3. You can have a charity purchase a new life insurance policy on your life. With this approach you must arrange to pay the premiums through gifts to the charity, but it also provides federal income tax deductions and the policy proceeds aren’t included in your estate for federal estate tax purposes.
    
4. You can use a life insurance policy in conjunction with a charitable remainder trust.  This approach is pretty complex and requires an attorney to set it up.  However, it provides greater tax advantages than other, simpler methods. 

Learn More About Gifting a Life Insurance Policy

To find out more about giving the gift of a life insurance policy to your favorite charity, contact American Insuring Group at (800) 947-1270 or (610) 775-3848.

Every employer is responsible for insuring a safe working environment for his or her employees. If you’re in construction, workplace safety should move to the top of your priorities because more than 20% of the work-related fatalities in 2013 occurred in the construction industry. 

STEP #1: Identify Construction Safety Hazards

First, you need to identify potential hazards.  OSHA lists the following hazards for individuals in the construction industry:

1. Falls (from heights),
2. Trench collapse,
3. Scaffold collapse,
4. Electric shock and arc flash/arc blast,
5. Failure to use proper personal protective equipment, and
6. Repetitive motion injuries.

STEP #2: Address Construction Hazards

Next, you need to address those hazards.  OSHA has identified the following as some of the most frequently cited hazards:

1. Scaffolding – Approximately 2.3 million construction workers regularly use scaffolds, and it is estimated that 4,500 injuries and 50 fatalities related to the use of scaffolding occur each year.  To help avoid some of these injuries and fatalities, you need to ensure that scaffolding is erected by a competent person using stable supports on solid footing and that it is inspected regularly.  Scaffolding should be sound; located at least 10 feet from electric power lines; equipped with guardrails, midrails, and toeboards; and accessible by ladders or stairways.
    
2. Fall protection – Falls account for the greatest number of fatalities in the construction industry.  They’re caused by unstable work surfaces, failure to use fall protection equipment, and human errors.  Using guardrails, fall arrest systems, safety nets, covers and restraint systems, you can prevent many deaths and injuries caused by falls.
    
3. Ladders – there are approximately 24,882 injuries and 36 fatalities each year due to falls on stairways and ladders used in construction.  To avoid some of those falls, you need to use the right ladder for each task, inspect ladders regularly, ensure that ladders are long enough to safely reach the work area, and never over-load ladders. 
    
4. Head protection – You need to ensure that workers wear hard hats where needed to reduce serious head injuries that can result from blows to the head, from falling objects, or other hazards.
    
5. Hazard communication – In order to avoid chemical burns, respiratory problems, fires and explosions caused by not recognizing the hazards associated with chemicals, you should maintain a Material Safety Data Sheet (MSDS) and make the information accessible to employees.  Plus, you need train employees on how to read those MSDS and provide personal protective equipment, a written spill control plan, and spill clean-up kits.
    
6. Electrical – Electric shock, electrocution, fires, and explosions can be serious workplace hazards in the construction industry.  To avoid these hazards in your workplace, ensure that all electrical tools are properly grounded and extension cords have grounding prongs, locate and identify all overhead electrical power lines and inspect and ensure that equipment and materials never come within ten feet of those lines,  and maintain all electrical tools and equipment.

Ensuring the safety of your employees is important to the health and safety of your employees and the health and safety of your business.  Neglecting the safety of your employees can cause lawsuits, higher health insurance premiums, higher construction insurance premiums, and higher workers compensation premiums and related costs. 

Get the Right Construction Insurance

To learn more about reducing your construction insurance costs while acquiring quality insurance protection, contact an American Insuring Group agent at (800) 947-1270 or (610) 775-3848. We're Independent Insurance Agents, so we're free to shop among many competing insurance carriers to find the right insurance at the best price, including construction insurance, worker's compensation insurance, and every other type of insurance your business may need. Contact us today. 

On average, thirteen Americans are killed on the job every single day of the year and nearly 4 million workers are seriously injured on the job each year.  Under the Occupational Safety and Health (OSH) Act, employers are responsible for providing a safe working environment.  Furthermore, employers “MUST provide their workers with a workplace that doesn’t have serious hazards and must follow all OSHA safety and health standards.”  

Good for Employees and Good for Workers Compensation Insurance Rates

Obviously, this is the right thing to do, but the fact is that providing a safe work environment also helps the employer by providing more healthy, happy, and prosperous employees; lower absenteeism; and lower workers’ compensation costs. 

Safety Training Applies to Every Job

Safety is probably top of mind in industries such as construction where more than 20% of the fatalities in 2013 occurred.  But working in an office also comes with its share of hazards, such as slipping and falling, misusing equipment, stacking and lifting, and poor lighting.  Whether your employees sit behind a desk inputing data all day or climb 100 foot poles to work on electrical wires, all employees should receive workplace safety training appropriate to the type of job they perform. 

Here are 10 Training Guidelines for Safer Employees and Lower WC Costs:

1. Educate new employees about company safety and health policies and emergency procedures.
    
2. All employees should be trained on the specific hazards of their jobs.
    
3. Retrain employees when equipment or processes change and when employees change jobs or return from a long absence.
    
4. Adapt training to your audience.  Different people learn in different ways, so use a variety of teaching methods, such as hands-on, lecture, discussion, videos, etc.
    
5. Consider reaching out to local organizations, such as fire departments or medical facilities to help you with training.
    
6. Educate management about key workers’ compensation concepts and how workers’ compensation expenses impact the business.   
    
7. Arrange small-group employee training events to allow for discussions.
    
8. Include information about who a worker should contact in the event of a work-related injury and what their responsibilities are if they see an injury occur.
    
9. Ensure that workers sign off on an in-service acknowledgement showing they have received training.
    
10. Check out OSHA’s website - https://www.osha.gov/dte/index.html - for training courses, educational programs and training materials.  OSHA offers a wide selection of training courses and educational programs to help broaden worker and employer knowledge on the recognition, avoidance, and prevention of safety and health hazards in the workplace.

Get the Right Workers Compensation Insurance Protection

To further protect your company and your employees, contact Amerian Insuring Group at (800) 947-1270 or (610) 775-3848 to learn more about business insurance options, including worker's compensation insurance and more.

So You Have Life Insurance? Good for You, But ...

Currently, 95 million Americans live without life insurance and only one-third of consumers are covered by individually-owned life insurance policies. So, if you’ve taken any time to think about life insurance and how to best protect your loved ones in the event of your death (which, let’s face it, is inevitable), you’re probably patting yourself on the back, telling your family how lucky they are to have such a responsible person in their lives, and never gave that policy another thought.

Well….  Yes, they are lucky to have you, but the fact is there are times when you should re-evaluate your policy.    One survey found that nearly eight out of 10 people have never changed or even thought about changing their life insurance policies.  The circumstance of your life can change, and your life insurance needs may change with them.

Here are four circumstances when you should take a look at your life insurance policy to ensure that you have the right coverage:

The size of your family changes.
If you get married, have children, get a divorce, or watch a grown child leave the nest, you may want to change the amount of life insurance coverage on your policy.  If your spouse relies on your income to maintain his or her current lifestyle, you may want to increase your coverage to pay off certain debt in the event of your death. 

If your family grows with the addition of children, you may want to make sure there’s enough money to pay for expenses such as a college education or a wedding in the event of your death.  When (hopefully not if) your children grow up, get their own place, and become financially independent, you may want to reduce the amount of your policy.

Plus, you may want to change the beneficiaries on your policy.  Imagine having a life insurance policy with your ex-wife or a deceased parent as the beneficiary.  You may also want to add your children as backup beneficiaries in the event that something happens to both you and your spouse at the same time.

The amount of your debt changes.
In the event of your death, your debt can become your family’s burden.  If you’ve taken on any significant debt, such as a mortgage or student loan, since purchasing your life insurance policy, you may want to increase your coverage.  Then again, if you pay off a mortgage or student loan, you may be able to reduce the amount of coverage or even cancel certain life insurance policies.  Look at your entire financial picture to see if there are other needs for life insurance.  If not, cancel the policy or reduce the benefit amount and enjoy the savings on your premiums. 

Your child becomes disabled.
You may have purchased a term life insurance policy with the assumption that your children will eventually become self-sufficient and no longer need your financial support.  If one of your children becomes disabled, they may need your financial support for a longer period of time.  In this case, you may want to consider taking out a permanent policy that will provide for the child no matter when you pass away.  

You purchased your life insurance policy prior to 2009.
This may seem odd, but 2009 is the year that insurance companies were required to switch to the 2001 mortality tables (the previous table was from 1980), which shows that people are living longer, paying into their insurance premiums longer, and delaying when the policy is paid out.

As a result, your monthly premiums may be lower.  Although you can’t renegotiate your existing policy, you can ask your independent insurance agent to shop around for a lower quote on the same policy.  You may end up with a lower premium. 

If you’ve experienced any of these changes, since you purchased your original life insurance policy, contact the independent insurance agents at American Insuring Group at (800) 947-1270 or (610) 775-3848.  

We offer coverage from competing insurance carriers, so we can find the best deal in terms of quality and coverage, so go ahead and take the challenge. We can take a look at your policy to make sure you have the right coverage for your current circumstances, and then you can pat yourself on the back again!

Is a Pet-Friendly Workplace Right for Your Business? Understand the Benefits, Risks, and Business Insurance Needs.

Thirty-nine percent of households have dogs, so it’s no surprise that more companies – including Google, Etsy, and Build-A-Bear Workshop – are allowing employees to bring their dogs to work.  After all, Congress has been dog friendly since the 19^th century.  And, according to a survey conducted by the American Pet Products Manufacturers, 17 percent of Americans work at pet-friendly companies. What are the benefits? What are the risks? Does your business insurance adequately cover the risks? You should know the answers to these questions before implementing a pet-friently workplace policy.

Pet-Friendly Workplace Benefits

Offering a “bring your pet to work” policy can definitely have its advantages.  It has been shown to lower employees’ stress levels and absenteeism; boost morale and create a more positive work environment; improve job satisfaction, which improves retention; encourage people to work longer hours; attract new employees by standing out among the competition; and offer opportunities for exercise and non-work-related interaction among employees. The Centers for Disease Control and Prevention cites dozens of animal experts who report that pets can decrease blood pressure and cholesterol levels as well as increase opportunities for exercise and socialization.

Pet-Friendly Workplace Risks

If you’re considering opening the doggie door on your business, there are a few things you should consider.

• If you lease your workspace, make sure the landlord allows pets.

• If any part of your business involves the handling of food or beverages or offering personal care services, such as day care or elder care, check licensing bureau regulations.

• An animal allergy may be considered a disability under the Americans with Disabilities Act (ADA) of 1990. If you ignore or don’t make reasonable accommodations for an employee who is allergic to animals, you could open your business to potential ADA liability.

• People who are afraid or uncomfortable around pets can also create possible ADA liability. A former mail room clerk from Foodarama Supermarkets in New Jersey brought an ADA claim in which she alleged that her former supervisor occasionally brought his house cats to the office, despite the fact that the employee had previously informed him of her condition as an ailurophobe (a person who is afraid cats).  Although courts are reluctant to find liability under strict liability statutes or under ADA accommodation laws, an employer could still face the expense of defending such a suit if they allow pets in the office.
• A pet can bite another employee, customer, or delivery person.

• A pet can damage or destroy property, such as carpets, computers, and other office equipment and furniture, or even “eat your presentation."

Business Insurance and Other Ways to Keep Your Business Out of the Doghouse

• Have open discussions with your employees about concerns, such as allergies, accidents, etc., and how you will accommodate them.

• Create and enforce a comprehensive written pet policy.

• Require that employees prove that their pets will respond to basic commands, such as “sit” and “stay.”

• Limit the number of pets allowed in the workplace at one time.

• Enforce a zero tolerance for aggressive pets that growl, bark, chase, or bite.

• Establish pet-free zones.

• Require that pet owners show that vaccinations are up to date and that pets are licensed and free of parasites and insects.

• Require proof, in writing, that pet owners have sufficient home owners’ or renters’ insurance to cover damage caused by their pet and carefully check exclusions.  Some policies have a business-pursuit policy exception and some exclude certain breeds, such as Pit Bulls and Rottweilers. 

• Consider indemnification in case your business gets sued.

• Ensure that your business insurance will cover any liability associated with pets in the office. 

Contact Us for the Right Business Insurance Protection to Support a Pet-Friendly Workplace

A pet-friendly workplace isn’t right for every business, but if you decide that it could be a good fit for your company, your first step should be contacting the independent insurance agents at American Insuring Group at (800) 947-1270 or (610) 775-3848. We offer business insurance protection from competing insurance providers. We'll help you find the right policy at the right price. Contact us today.

Will Your Restaurant be Held Liable for Accidents? How Much Can Restaurant Insurance Help?

Let’s say you own a restaurant.  One night, a group of friends enjoy dinner and a few drinks at your restaurant.  They decide to go to a club where they dance and consume more alcohol.  Then, they go to a corner pub to wind down with a few more drinks.  On the way home, one of those friends causes an accident that injures or – God forbid – kills someone in the process.

Who is responsible?  You and your restaurant?  The club?  The pub?  That depends on which state your restaurant is located.  If it’s in Nevada, none of the establishments will be held responsible for injuries caused by intoxicated patrons; all of the responsibility lies with the person directly causing the injury.   However, many other states place the responsibility elsewhere.

Pennsylvania’s Dram Shop Statute

In Pennsylvania, all of the establishments could be held responsible – even your restaurant.  Under Pennsylvania’s Dram Shop Statute, a licensed drinking establishment can be held liable for injuries caused by intoxication if the establishment served alcohol to a visibly intoxicated individual or to a minor.

Not only could you face administrative and criminal fines and penalties, but you could also be sued in civil court for damages that person might cause after leaving your establishment.  You could lose your liquor license. If you serve alcohol to a minor, the establishment's owner, operator, or the server could face a term of imprisonment of three months to one year, a fine of up to $5,000, or both.

Determining whether a server should have realized the extent of a patron's intoxication is fuzzy.   How the alcohol affects a person is what matters, not how many drinks were consumed. 

When is a Driver Considered Legally Drunk in Pennsylvania?

• Non-commercial drivers age 21+ are considered legally drunk when their blood alcohol level is .08 or more.
• Drivers of commercial vehicles are legally drunk when their blood alcohol concentration is .04 percent or greater.
• School bus drivers are legally drunk when their blood alcohol level is .02 or more.
• Drivers under 21 are legally drunk when their blood alcohol concentration is .02 or more.

How to Protect Yourself, Your Employees, and Your Business

If your establishment serves alcohol, all of your servers and managers should undergo some type of training in alcohol service, such as the National Hospitality Institute’s Techniques of Alcohol Management or Pennsylvania’s Responsible Alcohol Management Training Program (RAMP).

RAMP, created by the Pennsylvania Liquor Control Board, helps licensees – such as restaurants, hotels, clubs, and distributors - and their employees serve alcohol more responsibly.  RAMP certification offers practical advice on detecting fake IDs, using the FEAR method of carding, and identifying a “visibly intoxicated patron.”

But, what if that person was not intoxicated when he or she left your restaurant and is of a legal drinking age?  You could still be held responsible.  If an incident does occur, your best defense is a written policy and documentation that you adhere to that policy.  Review the policy with your employees regularly. 

Liquor Liability Insurance - Important Restaurant Insurance Protection

Liquor liability insurance can be an invaluable form of restaurant insurance protection. It can help protect your restaurant business from highly damaging lawsuits into the millions of dollars resulting from property damage and injury caused by intoxicated customers who purchased alchohol in your establishment.

These policies may differ significantly by insurance provider in terms of costs and coverage details. This is why you should consult the independent insurance professionals at American Insuring Group. We offer policies from competing insurance companies. We'll help you find the right restaurant insurance policy at the right price. 

Contact an American insuring Group agent at (800) 947-1270 or (610) 775-3848 to find more ways to protect your business with the right restaurant insurance.

Protecting Your Baby - Business Insurance and Beyond

Business insurance is important because if you’re a small business owner, chances are good that you have a lot of heart, sweat, and maybe even a few tears invested in your business. Sometimes, your business becomes your “baby” – something that you want to protect from danger, just like you protect your family.  Aside from getting good commercial insurance coverage, how do you go about protecting “your baby” from outside threats, such as fire, flood, or theft? 

Preparation is the key.  It determines if and how quickly a business can recover from a set-back.  Unfortunately, many small businesses don’t prepare and don’t have a plan to protect their business from outside threats.  Start your plan NOW with these four tips:

1. Keep Your Eyes Open
You should monitor your place of business for suspicious activity 24/7. Security cameras can be used for two purposes: investigation and deterrence. Surveillance cameras are a cost-effective way to keep an eye on your business even when you aren’t there.  Some security cameras have DVR or remote monitoring capabilities, which allow you to watch, record and/or play back video.

Types of security cameras include…

Infrared (IR) security cameras

Dome cameras

Pro box cameras

Pan tilt zoom cameras

Hidden cameras

Click here for security camera basics.

2.  Be Armed with Alarms
Many commercial codes regulate smoke and carbon monoxide (CO) protection. Depending on the size and layout of your business, consider upgrading or adding smoke and CO detectors to ensure that you and your employees are properly alerted in case of an emergency. If your business is home-based, remember that the National Fire Protection Association a smoke alarm in every bedroom, outside each sleeping area and on every level of the home, including the basement. 

3. Protect Your Company Files
The loss of certain data could force your business – particularly if it is a small business – out of business. All essential paper documents, such as employee files, leases, insurance and tax documents should be kept in a fire-resistant and waterproof safe.  No safe is foolproof; however, they do give a degree of protection to your paper documents.  Here are some tips about buying a safe from SentrySafe, the nation's largest safe manufacturer.

Today, it’s simple and inexpensive to back up electronic files, so that you can access them even if your entire office building was under water or engulfed in flames.  Electronic files should be backed up daily to an external hard-drive, a CD, a DVD, and/or a USB Flash drive that is stored somewhere outside your business, or - better yet - backed up online.  This way your files are still accessible if one of your computers is damaged or stolen.  There are several online backup services that will automatically backup your data on a regular basis without your lifting a finger. 

4.  Safeguard your Computers
Cyber security isn’t only a concern for big corporations, like Target and Home Depot.  Small businesses can be just as vulnerable, so you need to keep operating systems, web browsers and anti-virus packages up-to-date. Don’t put off those update reminders that pop up on your screen; it’s important to update them regularly to prevent malicious software attacks on your computer and network.  Cyber threats are becoming increasingly sophisticated and can’t be ignored.

Implementing these four safety measures can help provide peace of mind that your “baby” is safe and allow you to focus on your business and your customers. 

The right business insurance can also help provide peace of mind (you might even sleep as sound as a baby!), so contact American Insuring Group at (800) 947-1270 or (610) 775-3848 to find out how insurance can provide additional protection for your “baby.”

The Birth of Managed Care for Controlling Health Insurance Costs

Managed health care started to become commonplace in the US after the enactment of the Health Maintenance Organization Act of 1973, which was created in an attempt to control health care medical insurance costs by stimulating greater competition within health care markets.  It marked a significant shift in the US health care industry by introducing the concept of for-profit health care to an industry that was traditionally not-for-profit. 

Many believe that managed care helped control medical cost inflation in the late 1980s.  On the other hand, many believe that these cost-control efforts also caused the health care industry to become more interested in saving money than in providing quality health care.  Whatever you believe, the fact is that managed health care has become ubiquitous in the US, with 90 percent of insured Americans enrolled in plans with some form of managed care, according to America's Health Insurance Plans.

So What is Managed Health Care?

Managed health care plans are a type of health insurance. Managed Care Organizations (MCOs) establish contracts with doctors, hospitals, clinics, and other health care providers such as pharmacies, labs, x-ray centers, and medical equipment vendors at a reduced cost.  These health care providers and medical facilities are known as the plan’s “network.”  Managed care health insurance plans typically cover a wide range of health services – from preventative care to diagnosis and treatment of illnesses. 

There are Two Basic Types of Managed Care Health Insurance Plans:

• Health Maintenance Organizations (HMO) – HMOs require you to use their "network" of hospitals and doctors only. Coverage is usually broader, with less out-of-pocket expense, but is more restrictive than a PPO. "Out of network" medical expenses are not covered under an HMO medical insurance plan.

• Preferred Provider Organizations (PPO) – PPOs give you an incentive to use their "in network" hospitals and doctors. You can choose to go "out of network," which gives you freedom of choice, but usually with a higher deductible and co-insurance out-of-pocket expense than other forms of medical insurance.

Health Insurance and Worker’s Compensation Insurance Objectives

General health insurance and worker’s compensation have two slightly different objectives.

Health insurance (including managed health care) is "coverage that provides for the payments of benefits as a result of sickness or injury,” according to the Health Insurance Association of America.  It provides coverage for medications, visits to the doctor or emergency room, hospital stays and other medical expenses. 

Worker’s Compensation Insurance covers employees for work-related injuries, including not only medical expenses, but also lost wages incurred due to a work-related accident or injury.  Keep in mind that while Worker’s Compensation only accounts for about three percent of a company’s total health care costs (about $111 billion), more than half of that $111 billion is paid in lost wages.  Therefore, in addition to providing health care for employees, another objective of Worker’s Compensation Insurance is to get employee’s back to work.

How Can Managed Care Help Reduce Workers Compensation Insuance Costs?

By using some of the techniques used in managed care, companies can provide quality medical services to injured workers and get employee’s back to work. 

Some of these techniques include:

• Medical Case Management
• Provider Network
• Precertification
• Record Analysis
• Utilization Review
• Fee Schedule Compliance
• Independent Medical Evaluations

Managed Care Worker's Comp Insurance Savings Example

John is an employee for XYZ Manufacturing.  His normal job is lifting 50-lb bags onto a truck.  One day, while he’s lifting one of those bags, he twists his back, which causes a lower back injury.  The physician advises John not to lift anything over 20 pounds.  Using managed care techniques, John could go back to work on light duty rather than missing work completely, saving XYZ Manufacturing the cost of lost wages for John.

How to Save on Quality Health & Worker's Compensation Insurance

For more information about MCOs and Worker’s Compensation Insurance and to find the right insurance for your business, please contact American Insuring Group at (800) 947-1270 or (610) 775-3848. 

We have been supplying affordable, high-quality worker's compensation insurance and health insurance for over 25 years. And, as a Trusted Choice independent insurance agent we specialize in offering multiple insurance offerings from competing insurance brands. We'll help you get the right coverage at the the right price. Call today.

What is Builder's Risk Insurance?

Builder’s Risk Insurance (a.k.a. Course of Construction Coverage) is property insurance that covers damage to a building during construction.  It may cover just the structure itself, or it can include materials, fixtures, and/or equipment being used in the construction or renovation of the building.  

Why Builders and General Contractors Need It

Builder’s Risk Insurance is often required by lending and municipal authorities. It can be required as a condition of many contracts, and it can apply to both new project construction and remodeling projects.  It protects the custom builder or general contractor from financial loss due to damage.  Builder’s Risk Insurance is sometimes purchased by the ultimate owner of the property, the lending institution, or others.

What Does it Cover and How Much Insurance is Needed?

Most Builder’s Risk Insurance policies cover damage caused by fire, explosions, lightning, hail, theft, vandalism, and damages by aircraft and vehicles. The amount of coverage should represent the total value of the structure, including labor costs and the cost of raw materials; however, the cost of the land value should not be included.  The construction budget is a good way to determine the amount of coverage needed.

It is normally taken for a period of three, six, or twelve months, but can be extended if the duration of the construction exceeds the duration of the policy, but only one extension at a time is possible.  Builder’s Risk insurance is intended to cover unforeseen damage during the construction period only.  Coverage should be effective prior to when the materials are delivered to the job site.

Once the work has been completed and the property is ready for use or occupancy, the policy terminates.  Once the Builder’s Risk coverage has expired, the new owner should take out permanent property insurance, such as a home owner’s insurance policy or a commercial property insurance policy.

What Doesn’t it Cover?

Generally, Builder’s Risk Insurance does not cover damages caused by earthquakes, employee theft, water damage, contract penalty, flood, wind, war, government intervention, damage to property left in the open, or machinery breakdown.  It also doesn’t cover damages that occur as the result of inferior quality materials, inefficient design or planning, or faulty workmanship. 

Tools and equipment are not covered.  Builder’s Risk Insurance doesn’t cover for liability or accidents that occur at the site.  It’s also important to note that Builder’s Risk insurance doesn’t cover property belonging to other people, such as sub-contractors. 

Coverage Extensions for Builder's Risk Construction Insurance

Sometimes coverage extensions are needed or recommended, such as… 

• Property in transit to worksite
• Scaffolding while located at the insured location and pertaining to the insured company
• Property in temporary storage that will be used or installed in the insured location and pertaining to the insured company
• Debris removal that’s a result of damage caused by a covered incident
• Valuable papers, such as site plans or blue prints.

Get the Right Construction Insurance

Whether you need general contracting insurance, contractor workers’ comp, builder’s risk insurance, or any other type of insurance, we have you covered.  We’ll take a close look at your business; recommend the right insurance for you, then (after shopping many competing insurance brands) offer you the best insurance protection at the best price.

To get started with the right contractor insurance for your business please contact us at (610) 775-3848 or (800) 947-1270