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Medicare Vs. Long Term Care Insurance

Posted by David Ross on Mon, Oct 24, 2016

Tips for controlling your long term care health insurance costs throughout Pennsylvania, including Reading, Philadelphia, Lancaster, York, Harrisburg, Allentown, Lehigh Valley, Pottstown, Pittsburgh, Erie, PA and beyond.Most medical statistics that you read or hear about are not designed to brighten your day.

Well, here’s another one: Once you reach the Medicare-eligible age of 65, you have a seven in ten chance of needing long-term care at some future point. A good long term health care insurance policy can provide both peace of mind and valuable protection against the high cost of care. 

Long term care may be provided be at home, in a skilled nursing facility, or in assisted living. It is a surprise to many that the average annual cost of care in a nursing home is a whopping $81,000 for a semi-private room or $90,500 for a private room. Those are national averages, but you can expect similar costs in Philadelphia, Allentown, Reading, Lancaster, Harrisburg, Pittsburgh and elsewhere throughout Pennsylvania.

“Well, so what?” You’re probably thinking. “I might have underestimated the cost of long-term care, but my Medicare will be there to foot the bill.” Well, maybe not

Medicare Falls Short When It Comes to Long-Term Care

It's wise to consider long-term care insurance to supplement Medicare. Here's why: If you are recovering from an acute illness, condition or injury, Medicare will cover the services performed by a skilled medical professional. Your physician must certify to Medicare that these specialized services are necessary and that you are required to be housebound to receive these services. Any custodial care--bathing, eating, dressing, etc.--will be covered by Medicare only if the care accompanies your need for skilled acute care and is concurrent with it.

If you require long-term care in a nursing facility, Medicare will pay at least a portion of your care for up to 100 days, but only after you have satisfied a hospital stay of at least three days and you still need daily medical attention. For instance, physical therapy following a joint replacement or wound care after surgery would qualify.

Note: Medicare will cover 100% of your full costs for the first 20 days only. You are responsible for a co-payment of $157.50 per day on days 21 through 100. If you have Medicare Supplement insurance, it will pick up this co-payment. After 100 days of skilled nursing care, you are on your own for all costs. 

Why the confusion over Medicare?

Much of the misunderstanding arises because Medicare helps to cover certain services at home, but only if these services are medically necessary due to an acute medical need. But Medicare specifically excludes from coverage custodial care from chronic and disabling illnesses. As previously noted, custodial care refers to ongoing assistance with the activities of daily living such as bathing, eating, dressing and toileting. Skilled acute care and custodial care are decidedly different, yet skilled nursing facilities and home care agencies provide each type of care, which just adds to the confusion.

What about Medicaid?

People often do not distinguish between Medicaid and Medicare. Medicaid does cover 100% of long-term care custodial costs within a state licensed and certified Medicaid nursing facility. But Medicaid is a program for individuals and families with low income and insufficient resources to pay for health care. Additional confusion comes from not knowing this distinction.

You are responsible for your health care

Long term care can deplete your assets and shift the burden to your loved ones. You can ease these costs by properly planning for your future long-term care insurance needs. Doing so will help to preserve your savings and assets while providing you with options for the type of care that best meets your needs, whether it’s assisted living or in-home care. 

 

Contact Us for Help in Evaluating Your Long-Term Care Insurance Needs 

Contact us for help in evaluating your long term care insurance needsSeek professional assistance before planning for your long-term care. There are a variety of policies from which to choose, from traditional long-term care insurance to hybrid plans that will return your premium should you not need care. There are also decisions to be made within each policy type that may require expert advice.

To learn more about long-term care insurance, contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848. Call or click today to get started!

Tags: Health Insurance Reading PA, Health Insurance Allentown, Health Insurance Harrisburg, Long Term Care Insurance, Health Insurance, Health Insurance Philadelphia, Health Insurance Lancaster, Commercial Insurance, Business Insurance

12 Ways to Use an Attorney in Workers Compensation Cases

Posted by David Ross on Wed, Oct 19, 2016

Tips for limiting your attorney costs in workers compensation insurance claims in Philadelphia, Reading, Lancaster, Harrisburg, Allentown, PA and beyond.Hiring a competent workers compensation defense attorney is not an exact science, but it is an important first step in the process of defending your business in a contested workers comp claim, which can impact the cost of your workers compensation insurance

Relying on an attorneys' reputation is a good starting point, experts say. But regardless how successful a lawyer is, the candidate must be familiar with the industry in which you operate. Your local bar association may be able to help advise you of an attorney’s field of practice.

But even after retaining an attorney, your risk manager or director of worker’s compensation might still want to consider the relationship as a trial run until the attorney’s responses to various case management guidelines are evaluated. Discuss fees and your expectations with the candidate, and make sure your attorney follows up any agreement with a written confirmation
 

How to Use Your Attorney Effectively in Workers Comp Cases

Remember, all lawyers charge fees and bills by the hour. Once you have retained defense counsel, it is imperative that you limit your attorney’s hours by using his or her services efficiently. Here are some suggestions that could save your business unnecessary legal costs:

#1. Communicate through e-mail whenever you ca
n. Limit messages to only the most necessary information. This method gives you electronic documentation for the claims file and is faster than formal letters sent through regular mail.

#2. Keep all telephone calls short by planning your discussion ahead of time. Gather the information you need and end the call as soon as possible. Be sure to document the conversation for the workers compensation claims file.

#3. Limit your attorney’s time by having your claims manager obtain the defense and claimant statements. Supply any required personnel records as well as all medical examination information. Make sure your attorney receives claim file reports and all investigation information.

#4. Require your attorney to ask your permission before doing any additional research or hiring a private investigator.

#5. Obtain a cost estimate for legal services from your lawyer and follow up on this with any revisions. You can use the estimate as a basis for a workers comensation legal reserve.

#6. Eliminate redundant mailing and copying costs. After the attorney has made an initial assessment and provided a plan of action, it is only necessary to comment on current activities. There should be no need to copy the claim file on subsequent depositions or interrogatories.

#7. Employ more than one attorney, if possible. The competition can generate better results, especially in litigation.

#8. Promptly obtain and provide information that your attorney needs to efficiently handle your workers comp case.

#9. Negotiate agreements and settlements whenever possible. Limit attorney negotiating to pretrial conferences, arbitration, and trial.

#10. When your attorney negotiates, set limits and authorities. And require a telephone request for additions to the first limits and authorities. Serve any subpoenas for the attorney, if possible.

#11. Ask your lawyer to bill you promptly and on a regular basis. Check the invoices carefully for accuracy—everything should conform to your written agreement and coincide with the information in the claim file records. Make sure that paralegal fees have not been submitted as attorney fees. Pay the invoices promptly to avoid late charges.

#12. Manage fee increases. Make it clear that fee increases should happen only after direct negotiation and agreement.

Any time your attorney is working on your workers compensation insurance case, the clock is running. Think about everything that comes under billable time—telephone calls, research, investigations, depositions, trial prep and the trial itself, just to name some of the activities—and you begin to realize the importance of controlling those hours as much as possible.

 

Want to Lower Your Workers Compensation Insurance Cost? 

Limit-Workers-Comp-Insurance-Legal-Costs.jpegTo learn more about controlling your workers compensation insurance cost, contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848.

As a Trusted Choice independent insurance agency, we have the freedom to shop among many competing workers comp insurance providers, so you'll get the right insurance coverage at the right price. Call or click today to get started!

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

Concealed Weapons and General Liability Insurance

Posted by David Ross on Fri, Oct 14, 2016

Don't shoot yourself in the foot - consider your concealed weapons policy!

Tips for forming a concealed weapons policy and commercial liability insurance. Serving Reading, Philadelphia, Allentown, Lehigh Valley, Harrisburg, York, Lancaster, Pittsburgh, Erie, PA and beyond with quality general liability insurance for businesses for over 25 years. Contact us today.As a small business owner who allows customers and visitors on your property, you assume the responsibility of providing a reasonably safe environment for them. This responsibility includes warning them about any concealed dangerous conditions. In states with “concealed carry” laws, you might need to post warnings that your sales clerks are armed.

But what if one of your employees, legally carrying a concealed weapon, negligently (or deliberately) shoots a customer who is on the premises conducting business, and the client subsequently sues you for the injuries? Will your Commercial General Liability Insurance (CGL) policy cover this incident?

Obviously, you would have to be found legally responsible for the injuries for the CGL to pay. And, while your liability might be debatable, you will be brought into any lawsuit by the injured customer. At that point, your insurer will be compelled to defend you unless there is some clear-cut exclusion in the general liability policy that would apply to the shooting occurrence. And that’s not likely.

 

What's the right policy for minimizing risk and protecting employees and customers?

Even though it’s probable that your business liability insurance policy will cover you against such claims, it could be a smart move to minimize this type of risk by being pro-active. For instance, requesting an exemption from the scope of the concealed-weapon law will give you the authority to ban weapons in the workplace. Make it your company’s policy for all present and future employees that guns are not allowed on the premises. That would eliminate the possibility of a lawsuit…wouldn’t it?

What if your employee is attacked?

Think about your employee being attacked and beaten at work after you have forbidden him from carrying a weapon. Looking at this from his perspective, couldn’t that employee file suit claiming that he was unable to defend himself because of your weapons ban? The injured worker could assert that he sustained a bodily injury and that you, as his employer, are legally responsible for those injuries.

The workers’ compensation exclusion and the employers’ liability exclusion in the general liability policy would need to be considered, but if the injury to the employee is not work-related - in other words, not arising out of and in the course of employment - the exclusions won’t apply. In that case, your general liability policy would respond with a defense since there is no exclusion in the policy to prevent such a response. But, of course, the duty to pay the claim would depend on your liability being established in a court of law.

Suppose you don’t ban weapons and one employee shoots another?

If one of your staff carries a concealed weapon to work and shoots a fellow employee, and it results in a claim against you, will an insurance policy provide coverage? Once again, the first thing to consider is workers compensation. CGL does not apply to any of your obligations under a workers’ comp law, or to bodily injury to one of your employees arising “out of and in the course of employment.”

If the shooting injury did not arise out of the employment, the general liability policy would respond to a claim against you, but if the injury arose out of the employment, you could look to workers’ compensation for coverage. But what exactly is "out of and in the course of employment"? State workers’ comp laws have yet to define this. It may have to fall to the courts to make this determination.

Properly screen employees during the hiring process

The list of potential problems that concealed weapon laws pose for you as an employer is quite long. Good risk management calls for preemptive actions. Banning weapons from your premises is a good start. And instituting hiring practices (pre-employment screenings, etc.) that yield levelheaded employees who won’t resort to violence to settle disputes is also necessary. All business owners can learn to live with concealed weapons laws, but none can afford to ignore them.

Contact Us for Your Commerical Liability Insurance Needs

Contact us about commecial liability insurance and your concealed carry policy.To learn more about Commercial General Liability Insurance, contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848. As an independent insurance agency, we'll compare pricing and coverage among many competing carriers to get you the right commercial insurance at the right price. Contact us today!

 

Tags: Business Insurance Reading PA, Business Insurance Berks, Business Insurance Philadelphia Pa, Commercial Liability Insurance, Commercial Insurance, Business Insurance Allentown PA, Business Insurance, Pennsylvania Business Insurance

Workers Comp Claims and Functional Capacity Evaluations

Posted by David Ross on Sat, Oct 08, 2016

Tips for when to use functional capacity evaluations (FCE's) in a workers compensation insurance claim. We serve Philadelpnhia, Reading, Lancaster, Allentown, Lehigh Valley, Harrisburg, York, Camp Hill, Pittsburgh, Erie, PA and beyond with high quality, afforcable workers comp insurance.Employers and insurance companies have been using functional capacity evaluations (FCE) for over thirty years. In workers compensation insurance cases, the FCE is used to evaluate an employee's ability to perform activities related to his or her employment.

The FCE process compares the individual's health status, body functions, and structures to the demands of the job and the work environment.

 

What is the purpose of an FCE in workers’ comp?

An FCE's primary objective in workers’ comp insurance cases is to evaluate objectively an injured employee’s ability to return to work. By identifying functional restrictions and determining the degree of disability, the test is designed to increase the likelihood that an injured worker can safely return to work. The test can also uncover “symptom magnifications,” which, in layman terms, are exaggerated claims of incapacity and pain.

How does the FCE test work?

Experts with a background in industrial rehabilitation and social work administer the physical and cognitive tests. The tests measure the worker’s resilience and endurance. If the employee is unable to perform his pre-injury job, the testers attempt to determine if there are skills that are transferable to another line of work. The results of the testing, used in combination with opinions and other findings, are used to decide if the employee can return to work.

The FCE provides objective information in the following areas:

  • When to allow the employee to return to work
  • If the employee can return to the same job
  • The employee’s functional abilities on the job
  • The employee’s functional abilities away from work
  • A disability evaluation
  • A rehabilitation plan
  • The need for other medical treatments

There are two types of FCE

The Job Specific FCE evaluates an injured worker’s ability to work in a particular job. The test can be performed at a clinic or on the actual job site. The therapist will determine if the worker can safely perform the tasks of the job he held before the injury or if modifications of the required work will be needed.

The General Purpose FCE is used if the employee no longer has a job to which he can return or if the job functions have not been determined. The results of this test will be used to find out the worker’s ability to work at specific jobs that may become available in the future.

When should you use an FCE?

It probably goes without saying that you won’t need to use a functional capacity evaluation in every one of your workers’ comp cases. But the tests should be utilized in any case in which the injured worker’s functional ability is at issue. You would certainly consider using the evaluations when the employee claims not to be able to return to work because of restrictions, education, or non-transferable skills. If the worker is requesting retraining benefits or looking for permanent total disability, an FCE would be warranted.

Choose the right time to seek an FCE

If your employee is currently at a point in the healing process where additional medical care will be needed, the FCE will not help the defense of the workers comp insurance claim. But if you suspect that your employee is malingering, the tests may help to detect the symptom magnification mentioned above. The report from the tests could lead to a quick settlement or bring about an advantageous result in litigation.

Finding the right evaluator

Choosing an expert comes down to looking at a few vital factors:

  • Professional reputation
  • Education and background
  • Ability to write a plausible FCE report
  • Capability to provide trustworthy testimony
Don't Overpay for Workers Comp Insurance - Contact us Today!

Contact us for help in acquiring the right workers comp insurance, and to learn more about FCE claims.To learn more about workers compensation insurance, contact American Insuring Group online, or call us at (800) 947-1270 or (610) 775-3848. We're independent agents who with access to many competing providers.

We'll match up your needs with the companies who can provide reliable workers compensation insurance at a competitive price. Call or click today to get started!

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

Homeowners Insurance Tips When Sharing Your Home

Posted by David Ross on Sun, Oct 02, 2016

Homeowners Insurance Tips to Consider When Sharing Your Home. Serving Philadelphia, Reading, Allentown, Lehigh Valley, Lancaster, Harrisburg, Pittsburgh, Erie, PA and beyond.On the surface, home sharing looks like a simple idea. You, the homeowner, offer accommodations to a guest--a home sharer--in exchange for an agreed-upon fee and, in some cases, help with household tasks.

There are even companies—Airbnb and HomeAway to name just two—that will list and advertise your home to potential renters. Each of these firms claims over one million listings, attesting to the growing popularity of home sharing.

But have you considered whether your house insurance policy covers the additional risks associated with sharing your home? Is your current homeowner's insurance sufficient?

Before you log on to one of these websites and join the ranks of home sharers who cover about 190 countries, you need to ensure that you are not exposing yourself to unnecessary financial risk with insufficient homeowner’s insurance coverage. HomeAway’s Bill Furlong warns that most hosts “probably don’t think through the fact that they’re beginning to engage in a commercial venture (and) they have to think about the tax part of the equation and they have to make sure the insurance is covered.”

Is Your Home Sharing Done For Profit? Watch Out for These Traps!

As with most homeowners, your insurance offers broad coverage for your property. The problem arises when you rent out your home since these policies almost always exclude a business pursuit. If you’re renting out your property for income, that is a commercial transaction. And there may be traps and gaps in your coverage that could be devastating

Traps and Gaps

  • A guest is injured or dies, resulting in a personal injury lawsuit
  • A guest files a property damage lawsuit against you
  • You lose income because of significant damage to your home by one of your guests

Your standard homeowner’s policy does not cover these home-sharing activities. You have now changed your exposure from that of a residential homeowner to a business vacation rental. And as soon as you create a business exposure in your home, your carrier can refuse coverage for a claim and, in some cases, discontinue liability and property coverages—sometimes at renewal, maybe in mid-term.

Landlord policies may not be the answer

Up until recently, those who rented out their houses, or just a few rooms, had the option to buy a landlord’s policy to cover the home, structures, liability, and lost rental income. The problem with these policies is that they are designed for people who rent out their property full time. These landlords live elsewhere and have tenants who have signed contracts to live in the rental property for a longer term.

Home sharing presents a unique exposure that demands more options in coverage. Retired couples who bought a second home at the beach or the mountains are now discovering that they are not spending as much time there as they thought they would. Renting out these properties for short periods (perhaps 6-8 weeks each year) helps to offset set some of the expenses of ownership. The same goes for those who wish to have guests while they take a vacation or an extended business trip. They need a policy that offers risk protection for these shorter terms.

Policies that address the needs of the host are available

Some insurers are responding to this new market with insurance that can be added to an existing policy. These add-ons provide extra protection in cases where, for instance, your guest steals or damages your expensive flat-screen TV. Some home-sharing companies like Airbnb and HomeAway advertise coverage options for their hosts. Keep in mind, however, that these plans also have gaps—like not paying for intentional damages to your property. 

Don't Risk It - Contact Us About Your Homeowners Insurance

Contact us about homeowners insurance coverage when sharing your home.Before you commit to becoming a host, check with American Insuring Group to understand what your existing homeowner’s policy covers and what exclusions might apply. Then you can purchase a policy that closes all of the gaps.

To learn more about homeowner’s insurance and the available add-ons, contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848.

Tags: Homeowners Insurance Philadelphia Pa, House Insurance, Homeowners Insurance, Homeowners Insurance Allentown Pa, Homeowners Insurance Reading Pa, Home Sharing Insurance

Contractor Insurance and Mold Remediation Services

Posted by David Ross on Tue, Sep 27, 2016

Contact us to add mold remediation coverage to your Contractor Insurance policy. Serving Reading, Philadelphia, Lancaster, Allentown, Lehigh Valley, Harrisburg, Pittsburgh, Erie, PA and beyond with reliable business insurance for over 25 years.Attention: restoration contractors! You may have lucrative opportunities from an unlikely source—mold. Yes, the fungus that grows in moisture-laden areas of many old homes has created a demand for professional mold remediation services.  Done right, you can grow your mold remediation business while controlling your contractors insurance rates. 

Mold is one problem that homeowners cannot just ignore. Not only does it look disgusting, but it can also weaken the walls, ceilings, floor, and foundation of a house. And it presents a substantial risk to the health and safety of its inhabitants. 

Income vs. Risk

But along with the possibility of additional income, mold has created new risks for businesses that work on water damage restoration, mold removal, or construction. By implementing a mold risk management strategy, however, contractors can participate in these business openings without endangering their company with uninsured liability.

A recent history of mold and insurance

Around 2001, the number of insurance claims for mold damages soared, as did the income for restoration contractors. Unfortunately, the insurance industry had not expected this rush of claims, and they had not priced them into their policies. In response, insurance companies were compelled to begin issuing mold exclusions and limitations. While these exclusions are not standardized, almost every type of property and liability insurance policy has them.

Liability exposure increases for contractors

Without contractors insurance to help resolve their mold problems, some property owners tackled the mold themselves (bad idea!) or sought out mold remediation experts. But these experts are not the only contractors who come up against mold on a regular basis. Restoration contractors, plumbers, and electricians also encounter mold on their job sites. Even though they have not been hired to eliminate a mold issue, these contractors should always inform the property owner when they discover mold. So, why should this put any contractor at risk?

Disgruntled homeowners often blame their contractor

In an ironic twist, many homeowners began filing lawsuits against the contractors who pointed out the mold to them. This shoot-the-messenger mentality put contractors at risk of liability. The Commercial General Liability Insurance (CGL) policy, usually a protective tool for a contractor, has the same pollution exclusion clause as the homeowner’s policy. This exclusion states that the insurance does not cover any bodily or property harm caused by the escape, dispersal, or release of pollutants.

Is mold a pollutant? There is no universal agreement on this from the courts. Some have found the policies to be vague in their definition of pollution, while other courts have defined mold as an airborne pollutant.

Contractors are advised not to expose their business to chance

Contractors need to protect themselves against potentially devastating lawsuits. There are now insurance policies that specifically cover mold and pollutants. Contractors Pollution Liability (CPL) can be added to your CGL to cover liability for these pollutants and provide an unambiguous definition that includes mold or fungi.

CPL is probably the best available policy for contractors wanting to avoid liability when they discover mold on a job site. And there are other methods contractors can use to manage their mold risks.

Reduce Your Risk With an Arsenal of Protection

  • Choose your customers wisely: If your client is aware of a mold problem and knows the insurance company won’t cover it, you may want to walk away from this job.
  • Document your work: Leave nothing to chance. Use photos, notes, and witnesses to corroborate your findings.
  • Treat your customer with empathy: Approach your client with a plan of action that shows you understand his problem and will work with him to solve it.
  • Protect yourself: Adding CPL to your contractors insurance will complete an arsenal that will mitigate your mold risks.

Get Help For All Your Business Insurance Needs 

Contact us for all your mold remediation, contractor insurance, and business insurance needs in Philadelphia, Reading, PA and beyond.To learn more about Commercial General Liability and Contractors Pollution Liability insurance, or for any business insurance need, contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848. We offer insurance from over 25 competing carriers, so we're sure to find you the right insurance at the right price. Call or click today!

Tags: Contractor Insurance, Commercial Insurance Allentown PA, Commercial Liability Insurance, Commercial Insurance, Commercial Insurance Reading PA, Business Insurance, Commercial Insurance Philadelphia PA, Mold Remediation Insurance

Protect Your Construction Investment with Builder’s Risk Insurance

Posted by David Ross on Tue, Aug 30, 2016

Builders risk insurance is a form of contractor insurance. Be sure to know what is covered and not covered. We serve Philadelphia, Reading, Lancaster, Harrisburg, Allentown, the Lehigh Valley, Erie, Pittsburgh, PA and beyond.Having a freshly constructed building for your business is exciting. It’s the culmination of an undertaking that involved the acquisition of land, working with an architect, hiring a construction company, and picking out the furnishings. After you have completed the project, you will have added a significant investment that you will undoubtedly protect with a well-designed insurance program.

But what about the risks that the project will be exposed to while construction is underway? Many of the risks to your finished building--fire, theft, vandalism, and other hazards--are the same threats that can haunt the construction phase of the project. Damage to work that’s in progress or to the construction equipment, for instance, can make it impossible to stay within budget or to remain on schedule.

Builder’s risk insurance provides valuable protection

Builder’s risk insurance, a form of contractors insurance, offers specialized coverage that protects your insurable interests in the construction or renovation of a building or structure if those items should sustain physical loss or damage from a covered cause.

But the term “builder” can be misleading since insureds can include the ultimate owner or a lending institution in addition to the contractor who is doing the construction work.

Understand your policy’s provisions

The various options available under builder’s risk coverage depend on the policy’s provisions. These provisions will include the causes of any loss and risks against which you are being insured. The wording should be studied before the construction contract is signed to avoid any coverage problems during construction.

Many builder’s risk policies take a broad approach to the property to be covered, indicating that the coverage applies to all property intended to become a permanent part of the construction, installation or erection of the project. Other policies may refer to covered property as “buildings or structures in the course of construction, erection or fabrication.” If this is the policy’s wording, you need to remember that although a building is a structure, not all structures are buildings. Since a building is usually considered to be an occupied structure, if the construction project involves a structure, identify it as such, and confirm the insurer writes the provisions of the policy with the structure in mind. 

Know which losses are covered by your builder's risk insurance

It’s common for a builder’s risk policy to provide coverage for certain items. The list includes:

  • Scaffolding
  • Temporary structures
  • Construction forms
  • Cribbing

Some insurers cover these automatically, and some will subject them to a limit. Others may require you to add their values to the policy limit. In most cases, the contractor’s equipment—ditch diggers, bulldozers, etc.--is not covered. For these items, an equipment floater is recommended.

Know which risks are not insured

Insurance companies write most policies on an all-perils basis. In other words, coverage applies to physical loss or damage from any cause of loss, unless the loss is limited or results from an explicitly excluded peril. The “non-fortuitous” loss is excluded even though it might not be expressly stated. This is a loss that is expected to happen or has been caused intentionally. It is not accidental and therefore not a loss that will likely be covered by insurance.

Commonly excluded are losses brought about by the following:

  • Ordinance or law
  • Nuclear hazard
  • Earth movement
  • Flood
  • Civil authority
  • Contamination

Also generally excluded are losses from criminal, fraudulent, dishonest or illegal acts; mechanical breakdown; loss of use and consequential losses; wear and tear; pollution and steam boiler explosion, which can be covered by a separate breakdown policy.

Keep in mind that you must tailor builder’s risk insurance coverage to the specific risks associated with your project and to the expectations of all project stakeholders.

Get the Right Builder's Risk Insurance Policy

Contact us for help in selecting the best builder's risk contractor insurance for your businesss.We can help you create a policy that meets the needs of your construction project. As independent insurance agents, we're free to shop among competing providers to help you obtain the best insurance solution at the right price.

To learn more about builder’s risk insurance, contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848.

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

Reduce Risk with Product Liability Insurance

Posted by David Ross on Sat, Aug 20, 2016

The McDonald's hot coffee lawsuit is a powerful reminder of the need for businesses to have proper product liability insurance. We provide product liability business insurance to Philadelphia, Reading, Lancaster, Harrisburg, Lehigh Valley, Allentown, Pittsburgh, Erie, PA and beyond. Call us today.In 1992, 79-year old Stella Liebeck filed a lawsuit against McDonald’s for serving coffee that was too hot. In a product liability case that became known as the “McDonald’s Coffee Case,” the Albuquerque woman sued for injuries she had received after spilling coffee on herself. The basis of the lawsuit centered on insufficient warnings on the cups. After a trial and appeals, the parties settled out of court for an amount of less than $600,000.

This serves as a powerful reminder that having the right commercial insurance in the form of product liability insurance can help cover unpredictable claims.

The damages awarded in this claim, and others like it, include medical costs, compensatory damages, economic damages, and, in some instances, attorneys' fees, costs and punitive damages. While a large company like McDonald’s was in no danger of being financially damaged by the lawsuit, product liability claims can and do put smaller companies out of business.

Product liability is not difficult to understand. Simply put, your small business is responsible for the safety of the goods it provides. And that can be true even if you’re not the manufacturer. No matter where you are in the supply chain, you can be at least partially responsible for consumer safety.

If you are responsible for any of the following, you could be held liable:

  • Design
  • Distribution
  • Retail
  • Wholesale

Be aware of the claims your company could face

There are three types of products "claims" a company may encounter:

  • Manufacturing or Production Flaws: Some part of the production process created an unsafe defect in the product. Included here are dangerous chemicals found in goods imported from China.

  • Design Defect: The design of the product is inherently unsafe. Remember the Pinto owners’ lawsuits against Ford in the 1970's?

  • Defective Warnings or Instructions: The product was not properly labeled or had insufficient warnings for the consumer to understand the risk. The McDonald's coffee case is an example.

Your company’s survival depends on getting your products into the hands of consumers. But you must manage your product liability risk while you’re doing that. What’s the answer?

 

Product liability insurance protects your business

If your company offers any products to the consuming public, then you need product liability coverage. In many cases, some form of this coverage will be present in the standard commercial general liability or business owners' policy. You will need to confirm this with your insurance professional. Having a clear understanding of your business insurance coverage is essential.

Here are some things to know about your coverage options:

  • General Liability Insurance can help pay your defense costs if a customer sues you because of bodily harm or property damage that your product causes.

  • Product Liability Insurance covers the manufacturer's or seller's liability for losses or injuries to a buyer, user or bystander caused by a defect or malfunction of the product, and, in some instances, a defective design or a failure to warn. You can add this coverage as part of a commercial general liability policy.

  • Recall Insurance helps cover the costs of a recall. Some business owners add it as a rider to their general liability or product liability insurance. It can contribute to paying for client notifications, product disposals, and other costs associated with a recall.

Take steps to mitigate your risk

In addition to being adequately insured, here are some ways to minimize your risks:

  • Inspect any retail stock for defects
  • Make sure warning labels are easy to read
  • Clean and inspect your equipment often
  • Review product instructions for accuracy
  • Have a system in place to track products from the factory to the store

 

Contact us to get the best product liability insurance to protect your businessGet the Right Product Liability Insurance 

Product lawsuits and recalls can drain your company’s bank account. Talk to us about protecting your business with a Product Liability Insurance policy that will help you manage your risks. We're independent insurance agents who are free to shop among many competing insurance providers to get you the absolute best deal on quality insurance coverage.

Contact American Insuring Group online today, or call us at (800) 947-1270 or (610) 775-3848.

Tags: Commercial Liability Insurance, Commercial Insurance, Business Insurance, Product Liability Insurance

6 Things to Know About Your Homeowners Insurance

Posted by David Ross on Wed, Aug 10, 2016

6 helpful Homeowners insurance tips you should know. Serving Philadelphia, Reading, Allentown, Harrisburg, Erie, Pittsburgh, State College, PA and beyond.Like most homeowners, you’ve spent thousands (possibly hundreds of thousands) of dollars to purchase your home, most likely making it the largest purchase you will ever make. In order to protect your investment, you (hopefully) bought a homeowner’s insurance policy that will provide funds to replace your house if it is destroyed or to repair it if it is damaged.

But are you aware of everything that is covered and not covered (exclusions)? Are you confident that the amount that your homeowners insurance will pay out in the event of a claim is sufficient to cover all damage or loss?

Few consumers actually know what their policies cover or the limits of that coverage. Avoid costly homeowners insurance surprises with these 6 tips:

 

 

#1. Know what your homeowners policy covers and
what is excluded

A policy generally will pay for damage to your property and your possessions in the event of fire, storms, theft or vandalism. It also provides liability coverage if someone gets hurt on your property. Homeowner’s insurance also covers shelter costs for you and your family while your house is being repaired or rebuilt. It can protect belongings outside the home, too. For instance, items stolen from your car or lost on an airline would be replaced by your homeowner’s coverage.

There are some typical exclusions:

  • Earth movements, like earthquakes and landslides
  • Power failure
  • War
  • Faulty zoning
  • Poor workmanship
  • Flooding
  • Some water damage

#2. Take preventive measures to reduce your premiums

Installing a burglar alarm system could reduce your premiums by 15-20%. Even something as simple as a deadbolt installation could save you 5%. If you have a pool, surrounding it with a fence and using a pool cover can substantially reduce your liability risk. Remember, insurance companies establish your premium based on how much risk they anticipate. You will reduce your premium by reducing your liability risk with some preventive measures.

#3. If you have a homeowners insurance claim, file it promptly

Homeowner’s policies might come with time limits for reporting a claim. Be sure to ask about time limits when buying your policy, and then abide by them. If you wait too long, you may not be eligible for benefits—especially if the problem becomes worse while you delay. For example, if you fail to submit a timely claim for water damage and it turns into a mold problem, your insurer could refuse to pay.

#4. Keep good records

Don’t allow a valid insurance claim to be denied because your recordkeeping is shoddy. Writing everything down that occurs during a loss may feel like an inconvenience, but it will help to mitigate your losses with documentation. Receipts, appraisals, and contracts are a good starting point, but you should also write down any conversations, to whom you spoke, and when. Keep your documents in a safe place or save digital copies on a program like Dropbox.

#5. Understand how jewelry is covered under your insurance policy

Save yourself an expensive surprise by checking the limits that your homeowner’s policy places on jewelry. Items like engagement and wedding rings will probably not be covered under the basic limits of your policy, and you could end up with a $3000 check from your insurer for a lost ring worth twice that amount. Best advice: Stop by a jeweler and get your pieces appraised. Then, talk to your insurer about purchasing a supplemental policy to cover your expensive items.

#6. Bundle your homeowners insurance policy with other policies

Another way to save money is to bundle your homeowners insurance with other policies that you already own. It makes financial sense to have your car and homeowners policies with the same company because they’ll usually offer you some kind of discount. But don’t go buying insurance because the agent says you’ll save money on other policies. After all, if you’re spending money on something that you don’t need, what are you actually saving?

 

Get Ready to Save on the Best Homeowners Insurance! 

Contact us for tips and savings on homeowners insurance in Philadelphia, PA and beyond.Want to save on homeowners insurance? As independent agents, we're well qualified to find you the best homeowners insurance at the right price because we represent MANY competing insurance carriers.

Why settle for a single insurance brand when we can shop and compare for you? Contact American Insuring Group online or call us at (800) 947-1270 or (610) 775-3848. You'll be glad you did!

Tags: Homeowners Insurance Philadelphia Pa, House Insurance, Homeowners Insurance, Homeowners Insurance Reading Pa, Homeowners Insurance Berks County

Improve Your Odds in a Professional Liability Lawsuit

Posted by David Ross on Thu, Jul 28, 2016

Tips for defeding your business against a professional liability lawsuit. Serving Philadelphia, Reading, Lancaster, Allentown, Lehigh Valley, York, Harrisburg, Pittsburgh, Erie, PA and beyond.Litigation is like lightening; it can never be accurately predicted. So, the best defense against both is to avoid them altogether. While it’s possible to seek shelter and stay out of harm’s way during a storm, avoiding a professional liability lawsuit can be much more complicated.

Being diligent in all areas of your business could be an asset if you face a professional liability lawsuit, even if you have professional liability insurance, but it can’t always prevent one.

If you own a small-business and you’re being threatened with a lawsuit, your best defense is preparation. Assume that a lawsuit could be coming at any time and you may be ready if it actually does.

Here are 3 key strategies to maximize your odds of successfully defending your business against a professional liability lawsuit:

#1. Document all communications with your clients

During the course of a lawsuit, your lawyer may ask you for a particular document or certain facts relating to an important incident. If you’re working from memory alone, you’re going to have trouble presenting a cohesive defense. You will have much easier access to information about your lawsuit if you have left a thorough paper trail. Depending on your type of business, that trail might include:

  • Written contracts
  • Work documents
  • Invoices and receipts
  • Confirming emails sent after meetings and phone calls
  • Changes to contracts and proposals

Just keep in mind that overly-complicated documents may hurt your case. If a mediator or jury can’t follow the information in a key document, they could easily assume that your client couldn’t either. 

 

#2. Work with your lawyer

The relationship between lawyer and client can come under considerable strain during the course of a lawsuit. A good working relationship can increase the odds of a positive outcome and reduce your anxiety considerably. You and your attorney are a team. Here are some teambuilding hints to improve your odds of winning:

  • Keep your lawyer informed by disclosing everything that might pertain to the dispute. Don’t hold back. Lawyers are trained to sift through information and determine what is useful and what is not.

  • Prepare summaries, timelines, and other materials. Be as accurate as possible. Your lawyer will base your claims and defenses on this information.

  • Respond promptly to all requests. Your lawyer may have to work under a very tight deadline. The more time you give your lawyer to digest the material you provide, the better job your lawyer can do of using that material to prepare important legal papers.

  • Keep your lawyer apprised of your schedule. You will need to be present at certain events in a lawsuit. Most of these events can be postponed or moved up to accommodate your schedule, but your lawyer must have enough advance warning that you won't be available.

Assess the professional liability lawsuit honestly

Your first instinct after being hit with a lawsuit might be to fight the claim with all available means. After the initial emotions have subsided, however, and you can approach the dispute objectively, you might discover that it makes sense to settle. An honest assessment might make you realize that that you were in error to some extent, or you may come to the conclusion that a sustained legal battle would drain your financial resources.

You should realize that most lawsuits settle, and that the court system is designed to put pressure on both parties to settle. You continually need to reassess whether defending the lawsuit makes economic sense. If you see yourself spending a large amount on legal fees, settling the lawsuit is probably a good move. Remember that your time is worth something. So is your peace of mind.

 

Protection starts with the right business insurance - call today!

Tips-to-defend-professional-liability-lawsuit.jpgTo learn more about Professional Liability Insurance, which helps you pay for the cost of lawsuits and other expenses for which you are legally responsible, and for all your Business Insurance needs contact American Insuring Group online or call us at (800) 947-1270 or (610)775-3848.

Tags: Professional Liability Insurance, Commercial Liability Insurance, Professional Liability Lawsuit