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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

Worker's Compensation Insurance Costs

According to a recent U.S. Bureau of Labor report, Workers’ Compensation accounts for 2.8 percent of the total cost of a production, transportation, or material moving employee’s compensation and 3 percent for construction and maintenance employee’s compensation.  Businesses interested in reducing those percentages do what they can to improve workplace safety; thereby, reducing the number of workers’ compensation claims and providing a safer and healthier environment for employees.  It’s a win-win situation.

Like Games? Try OSHA’s New Tool to Help Identify Hazards within the Workplace

One of the first steps to creating a safer workplace is to identify potential hazards; if you don’t know a hazard exists, how can it be properly mitigated?  The Occupational Safety and Health Administration (OSHA) has created an interactive, online, game-based training tool to help small businesses effectively identify hazards within the workplace.  This tool, with both an owner and worker mode, is designed to help both company leaders and workers to not only identify hazards, but also learn how to abate and control those hazards. 

Currently, the user can choose between three different scenarios:

• OSHA Visual Inspection Training
• Manufacturing Facility
• Construction

OSHA Visual Inspection Training

The "OSHA Visual Inspection Training" scenario, which contains a saw, industrial chemical mixer, scaffolding and fall protection for inspection, shows users how to identify hazards on items found in the workplace; become familiar with typical hazard categories; and understand common relationships of hazards to equipment components and operations.  It offers the user an opportunity to practice a visual inspection and find hazards. In this scenario, the user can view equipment from 360° to look for hazards. The user can also talk to the employee and observe the employee at work to identify additional hazards.

Manufacturing Facility & Construction

The Manufacturing and Construction scenarios, which focus on the principal skills needed to effectively identify hazards in the workplace and reinforce the key components in the hazard identification process, allow participants to experience the entire workplace. The manufacturing scenario allows the user to be a part of the safety committee in a hovercraft parts manufacturing facility.  In the construction scenario, the user must identify and mitigate hazards to maintain a safe workplace throughout three phases of a construction project.

5 Key Components in the Hazard Identification Process

This tool helps owners and workers understand the five process components in identifying hazards:

1. Collect information: Review all information (manuals, safety data sheets, OSHA data, etc.) you may already have available to find hazards that have already been identified by others.
   
   
2. Inspect workplace: The most basic (yet important) component of inspection is the simple visual inspection. Inspecting the equipment and the surrounding work areas allows the user to look over the equipment without any obstructions that might exist while the equipment is being operated. Certain hazards might only be recognizable when the machine is not in operation.
   
   
3. Observe the operation: Another good way to identify hazards during an inspection is to observe the equipment in operation. Watch the operator and note any hazardous situations. Observing an operation gives the viewer an opportunity to see how the task is actually completed. This can provide insight on additional hazards that would not be recognizable otherwise (positioning of controls relative to the worker, noise and dust levels, by-passing or improper use of safety functions). This can only be done when workers are present and production is underway.
   
   
4. Involve employees: A great way to gain insight into workplace hazards is to talk to the equipment operators. Often, they are aware of issues that may not be apparent during an inspection. Talk to the workers and listen to their feedback.
   
   
5. Investigate incidents: Whenever an incident occurs, use that as an opportunity to learn about hazards that may have been overlooked.

To find out more about this new tool, check out https://www.osha.gov/hazfinder/. 

Lower Your Workers' Compensation Insurance Costs

Let American Insuring Group help you control your workers’ compensation premiums. We're an independent agency representing multiple competing brands of workers' comp insurance, so we can help you find quality insurance at a great price! 

Contact us at (800) 947-1270 or (610) 775-3848. Serving Philadelphia, Reading, Lancaster, Allentown, Harrisburg, Pittsburgh, Erie and beyond.

Ideally, when you retire you are financially stable enough that your death will not leave your spouse or a loved one struggling to make ends meet.  So, the question becomes, “Do I really need to keep paying on my life insurance policy after I retire?”  Life insurance is not really intended to insure your life; nothing can truly replace your life.  Life insurance is intended protect your surviving loved ones from financial loss upon your death.   

It’s interesting to note that some people have a hard time letting go of their life insurance policy.  They think, “I’ve paid on this life insurance policy since I was 25.  I can’t just cancel it.  I didn’t get anything out of it.”  Those same people rarely say that about other types of insurance.  For example: Let’s say you have insurance on a motorcycle you own, and you decide to sell the bike.  Would you continue paying the insurance premiums for that bike?  No, of-course not, and you’d probably be glad you never needed to make a claim and relieved not to have to pay the premiums anymore. 

Financially, the “I haven’t gotten anything out of it yet” scenario isn’t a good reason to continue paying on a life insurance policy; however, there are a few scenarios in which keeping an insurance policy after retirement may make sense.

6 Reasons Why Life Insurance after Retirement May be Right for You

Inadequate pension:

If your family relies on a spouse’s monthly pension payment, and that spouse chooses the higher payments of a plan that is based solely on his/her life expectancy, rather than the lower payments of a “joint and survivor” benefit option or if only a low percentage of the pension is paid to the surviving spouse, you may want to consider keeping your life insurance policy to avoid a financial hardship for the surviving spouse or family members.

Non-adult children:

Many couples are choosing to have children later in life.  If you retire and still have children who rely on you for their financial security, a life insurance policy can help.

Inheritance:

For some parents, it’s important to leave their children (even financially-secure, grown children) an inheritance.  A life insurance policy can provide your children extra financial security for years to come.

Legacy:

Naming your favorite non-profit organization as your primary beneficiary is a great way to pay a little each month and leave a substantial amount to a charitable cause.

Estate Taxes:

If you’re leaving behind a large, illiquid estate, the taxes your beneficiaries will need to pay can be significant.  A life insurance policy can help maintain your estate without affecting their personal assets.

Business Owners:

If you are a business owner or partner of a company with illiquid assets, you may want to consider keeping your life insurance policy.  Illiquid assets are subject to both taxation and market flux.  A life insurance policy can ensure that your business won’t have to liquidate corporate assets.

Temporary or Permanent Life Isurance Policy?

If you decide that you still need a life insurance policy after retirement, you probably don’t need as much or as long of a term, which is good since your rates will increase as you age.  Rather than renewing a term (or temporary) policy, it may be wise to take out a permanent policy (such as a universal or whole life plan). Although permanent policies are generally more expensive, they usually provide higher benefits and you’re guaranteed to “get something out of them.”

Learn More About Life Insurance - Contact Us!

Life insurance can be a difficult topic to discuss. There is no one-size-fits-all approach to retirement or to life insurance. At Amerian Insuring Group we can help you determine your best course of action regarding life insurance after retirement; please contact us at (800) 947-1270 or (610) 775-3848.

The Cost of Substance Abuse in the Workplace

The National Council on Alcoholism and Drug Dependence (NCADD) estimates that drug abuse in the workplace costs business owners $81 billion annually.  

Studies show that substance abusers miss work more often, use more sick leave, and arrive late more frequently than their coworkers.  Substance abusers are more likely to injure themselves or others and file more workers compensation insurance claims. 

Double the Worker's Compensation Insurance Cost

It’s estimated that substance abusers cost employers twice as much in medical and workers compensation claims as their drug-free counterparts.  And finally, substance abusers are considerably less productive than their drug-free co-workers. 

Although Pennsylvania does not have a state law that regulates, requires, or prohibits drug testing or any drug-free workplace programs, companies that implement a drug-free workplace initiative can improve their bottom line, increase productivity, and develop healthier employees.  A program may include supervisor training, employee education, drug testing, and/or an Employee Assistance Program (EAP). 

The Cost of a Drug-Free Workplace Initiative

The cost of a drug-free workplace will vary depending on the size of your initiative, your response level, and available community, state, and federal resources.   Costs may include policy development, employee education, management training, employee assistance, and drug testing. 

However, a study of the economic impact of a drug-free workplace initiative in Ohio found significant improvements in job-related performance:

• A 91 percent decrease in absenteeism
• An 88 percent decrease in problems with supervisors
• A 93 percent decrease in mistakes in work
• A 97 percent decrease in on-the-job injuries

Risks of NOT Implementing a Drug-Free Workplace Initiative

The cost of implementing a drug-free workplace program should be weighed against the cost of not implementing a program.  For many small businesses, one serious accident or one troubled employee can cost hundreds of thousands of dollars and jeopardize the future of that company. 

How to Create a Drug-Free Workplace Initiative

• Drug-free workplace policy - Establish written policies and procedures that prohibit the abuse of alcohol or illegal use of drugs. Ensure that all employees and potential applicants read and understand the policy and that compliance with the policy is a condition of employment.  The US Department of Labor has a “Drug-Free Workplace Policy Builder” at http://www.dol.gov/elaws/asp/drugfree/drugs/screen1.asp.
  
  
• Supervisor Training – Supervisors closest to the workforce should be trained on your drug free workplace initiative and their role in its implementation.   They should also be taught the signs, symptoms, behavior changes, and performance problems associated with drug or alcohol abuse and what to do when they see those signs.
  
  
• Employee Education - An employee education session should describe the impact that alcohol abuse and drug use has on the workplace, provide information about addiction and the major drugs of abuse, and include your company’s drug and alcohol policies.
  
  
• EAP – An Employee Assistance Program is a worksite-focused program designed to identify and resolve productivity problems associated with personal problems, such as alcohol and/or drug abuse, which often includes counseling and referral programs.
  
  
• Drug Testing – A drug and/or alcohol testing program may detect or deter drug and/or alcohol use or abuse.  Drug testing works best when used in conjunction with the other initiatives listed above.

Additional Resources:

Centers for Disease Control and Prevention- http://www.cdc.gov/workplacehealthpromotion/implementation/topics/substance-abuse.html

National Institute on Alcohol Abuse and Alcoholism - http://www.niaaa.nih.gov

National Institute on Drug Abuse – www.drugabuse.gov

Contact Us to Improve Your Bottom Line

A drug-free workplace initiative can create a healthier workforce and improve your company’s bottom line, including lowering your workers compensation insurance claims and costs. 

For more information about controlling your workers’ compensation insurance costs, contact us at (800) 947-1270 or (610) 775-3848.

Workers' Compensation Insurance

Workers' Compensation Insurance is a type of small business insurance that is mandatory in most states, and covers employees for work-related injuries. A typical "workers comp" insurance policy pays lost wages and medical expenses incurred due to a work-related accident or injury, while also protecting the employer against accident-related lawsuits. 

What About Dishonest Worker's Comp Claims?

Unfortunately, there are dishonest people in this world, and there are times when a Workers’ Compensation claim should be denied, such as when the employee isn’t hurt on the job or it’s an old injury. 

As many states begin taking a closer look at denials of workers’ compensation claims, now is a good time to evaluate how your company is handling workers’ compensation claims.

Workers' Compensation Claims Processing Tips

While state laws vary, there are some important best practices to follow:

• Keep detailed written documentation about the incident.
• Understand the claim forms, timelines, and the correct state agency to send the paperwork to.
• Ensure that all information on those forms is accurate.
• List a specific legal reason explaining why the claim is being denied and the basis for that denial.
• Provide instructions to the employee about steps he or she can take if they disagree with the denial.

Here are some practices to avoid:

• Don’t simply state, “The injury did not take place. Denied.”
• Don’t disclose Protected Health Information (PHI) without written permission to do so or if required by law.

No One is Perfect. If a mistake is made, here are some best practices to follow:

• Don’t ignore the mistake. Correct it.
• Cooperate with state agencies. 
• Provide complete and detailed responses.
• Continue to keep detailed written documentation.
• Pay close attention to timelines.
• If you aren’t sure about something, consult an attorney.

No business wants to pay penalties for Workers’ Compensation claim denials, so following these best practices can help your business avoid or minimize those penalties.   

How to Get a Great Deal on Worker's Comp Insurance 

American Insuring Group, Ltd. offers cost-effective worker's compensation insurance from a great variety of competing insurance companies, enabling you to get a great deal on high-quality WC insurance. 

For more information about Workers’ Compensation insurance, claims, or denials, contact American Insuring Group at (800)947-1270 or (610) 775-3848. 

Whether your company owns one commercial vehicle or an entire fleet of vehicles, regular vehicle maintenance is one of the best things you can do to protect your employees, your property, and your business.

As a bonus, any time you reduce risk you reduce the chance of incurring an insurance claim, which ultimately can help lower your commercial vehicle insurance and other business insurance rates.

Here's How:

• Regular maintenance can help prolong the life of your vehicle and allow it to operate more efficiently. 
   
• Regular maintenance also helps ensure the safety of your employees and can help cut down on insurance claims.
   
• Many state and U.S. regulations require a preventive vehicle maintenance program, including a structured record-keeping system.  Non-compliance of these regulations can lead to strict penalties, including hefty fines. 

Commercial Vehicle Compliance

Before initiating an internal vehicle maintenance plan, you should understand federal commercial vehicle requirements. Every year, the Commercial Safety Vehicle Alliance (CSVA) conducts approximately four million commercial motor vehicle inspections throughout North America.  These inspections focus on vehicle mechanical safety, traffic enforcement, cargo securement and regional rules and regulations.  Any vehicle with a gross vehicle weight rating of more than 10,000 pounds, including the weight of a trailer, may be subject to these random road checks. http://www.cvsa.org/programs/nas.php

Developing a Better Commercial Vehicle Preventive Maintenance Program

In addition to complying with federal regulations, it’s also a good idea to create a formal preventive maintenance program that includes a daily pre- and post-drive checklist.  This helps insure that drivers share some of the vehicle maintenance responsibility and that the day-to-day safety requirements are met. 

Where to Begin

A good place to start is the Federal Motor Carrier Safety Administration (FMCSA) website.  http://www.fmcsa.dot.gov/ FMCSA’s “A Motor Carrier’s Guide to IMPROVING HIGHWAY SAFETY” is a great resource.  It includes lots of information and record-keeping forms. http://www.fmcsa.dot.gov/sites/fmcsa.dot.gov/files/docs/ETA-Final-508c-s.pdf.

With a preventive maintenance plan in place and knowledge of federal and state regulations, your one commercial vehicle or your entire fleet will be ready for the road. 

Reduce Risk & Save Money with the Right Commercial Vehicle Insurance

American Insuring Group’s independence and high standards allow us to provide the best commercial vehicle insurance rates and high-quality insurance protection for your commercially used car, van, truck, or fleet.  Contact us at (800) 947-1270 or (610) 775-3848 to learn more.

With the current sluggish economy, more and more companies are turning to business consultants to help cut spending, maximize productivity, and develop more cost-efficient practices.  Business consulting services come in a variety of shapes – from sales and marketing consulting to technology consulting – and sizes - from working out of a home office to working in a large consulting agency. 

Subjectivity, Risk and Professional Liability Insurance

If you’re one of the estimated 400,000 consultants in the US, it doesn’t matter what your specialty is, where you work, or your level of expertise - the advice you provide usually contains an element of subjectivity, which is open to allegations of negligent acts, errors, or omissions.  In the event of a lawsuit, legal fees and damages paid – whether a consultant is at fault or not – can quickly add up, so it’s important that you protect you and your business from potentially catastrophic litigation with Professional Liability Insurance (PLI), sometimes referred to as Professional Indemnity Insurance, which is a sub-category within Commercial Insurance. 

What is Professional Liability Insurance?

PLI is a type of commercial insurance that provides protection for Error and Omission exposure, sometimes referred to as errors and omissions insurance. It protects you from negligence claims arising from an alleged act or failure to act that caused harm to another party.  This type of claim is not covered by more general liability insurance policies. 

Why Isn't General Liability Insurance Enough?

General liability insurance policies only cover bodily injury, property damage, or personal injury. Some forms of insurance cover employers, public or product liability. Professional Liability insurance covers legal claims that cause harm that isn’t covered by these other general policies, such as negligence, misrepresentation, violation of good faith and fair dealing, and inaccurate advice.

Professional Liability Insurance and Larger Consulting Contracts

If you decide to work with a larger corporation, PLI may be required to secure a contract. By acquiring this type of coverage in advance may be viewed as being prepared and better qualified to operate in the big leagues where the more lucrative consulting engagements are typically found.

Learn More About Professional Liability Insurance

For more information about professional liability insurance and other forms of commercial insurance, contact American Insuring Group at (800) 947-1270 or (610)775-3848.

Workers’ Compensation claims cost American employers $77.1 billion in 2011. Traditionally, one of the only ways for employers to decrease workers’ compensation costs was to offer proactive safety measures to reduce the number of claims.  This is still an important practice, but for years, many insurance agents have suspected that an employer offering voluntary accident or disability insurance will see a decrease in the frequency and expense of workers’ compensation claims.   

Accident Insurance - Survey Says…

A survey conducted in November 2013 by Lieberman Research Worldwide has confirmed those suspicions.  The survey of 600 U.S. Employers found that more than 42% of all businesses offering their employees access to voluntary accident insurance noted a decline in their workers’ compensation claims.  The survey found that 55 percent of large companies and 34 percent of small and medium sized companies reported declines.  The results were nearly identical for those employers offering voluntary disability insurance.

What are Accident and Disability Insurance?

Accident insurance helps pay out-of-pocket expenses that aren’t covered by major medical insurance.  These expenses can add up quickly after an accidental injury.  The money can be used for medical expenses, such as medical examinations, or it can be used for other expenses, such as transportation. 

Disability insurance helps protect an employee’s paycheck in the event of an accident.  Those benefits can be used for any purpose, including rent, food, or car payments – living expenses that continue to come even when the paycheck doesn’t. 

Interested in Reducing Workers Compensation Claims?

This same survey found that 58 percent of employers do not currently offer voluntary accident insurance and 50 percent do not offer voluntary disability insurance. 

If you’re interested in offering your employees a more comprehensive benefits package and possibly reducing the frequency and expense of workers’ compensation claims, contact American Insuring Group at (800) 947-1270 or (610) 775-3848 to learn more.

Life Insurance and Murder Mysteries

A 25-year-old wife falls to her death while hiking with her husband.  The woman’s mother, convinced that her son-in-law pushed her daughter over the edge, goes on a relentless hunt to prove his guilt.  The authorities, dismissing the accusations as the rantings of a grief-stricken mother, ignore her claims.  That is until they discover that the husband secretly took out a million dollar life insurance policy on his wife just days before her death.

Is this just a plot for a classic film noir masterpiece or could it really happen?  Could someone buy a secret life insurance policy on someone else – maybe even you?

You can rest easy; this life insurance collection plot is extremely unlikely.  Here’s Why:

• Most life insurance policies require a medical exam of the person being insured.

• Most policies require you to sign an acknowledgement letter that will allow the insurer to access your medical information.

• Even policies that don’t require a medical exam will require the signature of the insured.

• It has become standard practice for most insurers to make a follow-up phone call to the person being insured to verify the information on the application.

• Insurance companies make sure that the person buying the policy has an "insurable interest" in the insured, based on marriage, blood, or business relationships.

What About Secret Employer-Based Life Insurance Policies?

Up until 2007, employers could purchase life insurance policies on their employees without their employees’ knowledge or consent.  In the event of an employee’s death, the employer would receive the benefits of that policy. These were known as “dead peasant” policies (lovely, right?).

The bottom line on secret life insurance policies

If you want to go hiking with your spouse, go ahead.  The chances that he or she has taken out a “secret” life insurance policy on you are slim to none. 

To learn more about obtaining the best life insurance protection, contact us at (800) 947-1270 or (610) 775-3848.

As independent Trusted Choice insurance agents, we offer life insurance policies from competing carriers, so unlike single-brand agencies, we are equipped to find you the best deal that truly meets your insurance needs. Call today.

Let's Get Honest About Disability Insurance

Ah, disability insurance. You’ve probably heard that you’re supposed to have enough savings to pay your living expenses for six months.  Can you honestly say you have that much saved?   According to a 2013 Bankrate survey, less than one in four Americans do.  Approximately three-quarters of Americans are living paycheck-to-paycheck, with little to no emergency savings. 

So, what happens if those paychecks stop coming in due to an injury or an illness that prevents you from working? 

This is where disability insurance kicks in – it helps protect your paycheck. If you can’t work due to an injury or illness, disability insurance will pay a portion of your salary until you can return to work.  This can be a life-saver (or at least a "financial life" saver!).  So, why is it that only 49 percent of U.S. workers have short-term disability insurance and only 44 percent have long-term disability insurance? 

Here are the three misguided reasons why many individuals believe they don’t need disability insurance:

MISGUIDED REASON #1: I’m young and healthy.  Disability insurance is for older people.

THE TRUTH: The Social Security Administration estimates that the average 20-year-old worker faces a 3 in 10 chance of being disabled at some point before they retire.

MISGUIDED REASON #2: The government will take care of me.

THE TRUTH:  Most long-term disabilities are a result of an injury or illness that is not work-related, which means it wouldn’t be covered by Workers’ Compensation. If you’re relying on Social Security disability benefits, you should know the average monthly payment is just $1,100, which is lower than the United States Department of Health and Human Services (HHS) poverty level for a family of two.

MISGUIDED REASON #3: My employer will take care of me.

THE TRUTH: According to the US Department of Labor, seventy percent of private employers don’t offer long-term disability insurance. 

The Bottom Line on Disability Insurance

The average long-term disability claim is 34.6 months (just shy of 3 years!).  If you rely on your paycheck (and who doesn't?) you should have disability insurance. 

American Insuring Group can help you determine if you have enough disability insurance coverage or if you need an individual disability insurance policy to fill any gaps in the event of an injury or illness.  Contact us at (800) 947-1270 or (610)775-3848.