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Worker's compensation insurance, job classifications, job risks and insurance premiums are all related. Job classifications, which are based on specific ratings and descriptions for all types of jobs, are determined by the National Council on Compensation Insurance (NCCI), the insurance industry’s ratings bureau.  There are more than 600 different job classifications, and more are being added all the time, so it isn’t surprising that 30-35 percent of businesses have classification errors. But have you considered the potential impact on your business insurance costs that an erroneous job classification can bring?

Workers' Compensation Insurance and Risk-Based Job Classifications

Why should you care?  These ratings, based on an estimated level of risk, help determine how much Workers’ Compensation premiums you will pay for each job classification.  The following misclassifications are examples of mistakes that can significantly increase your Workers’ Compensation premiums:

• An administrative assistant who sits at her desk all day is classified at the same job risk level as a tree trimmer who spends most of her day swinging through the trees.
• A dispatcher who spends most of his time on the phone is classified at the same job risk level as a driver who spends most of his time behind the wheel of a tractor trailer full of flammable materials. 

How can you avoid misclassifications?

• Review your NCCI Classifications
• Don’t use the same classification for everyone in your company.  Classify each worker individually.
• Ask your insurance agent how jobs are being classified.
• Read your policy.
• Don’t let the insurance agent copy from an old policy from year to year. Things change; your business changes. 

Don’t wait for your workman's compensation insurance premiums to skyrocket to discover something is off kilter.  For more information about job classifications and controlling workers’ compensation premiums, contact American Insuring Group at (800) 947-1270 or (610) 775-3848.

Most people don’t want to think about life insurance; it’s something they pay for and hope they never use. But, let’s face it - you just never know when life is going to throw you a curveball.  It’s what makes life so incredibly exciting sometimes and so very scary at other times. 

Insurance can help you and your family field many of life’s curveballs, but too many people don’t think about insurance until it’s too late.   Here are three curveballs that the right insurance can help you and your family handle.

Early Death

Benjamin Franklin said, “In this world nothing can be said to be certain, except death and taxes.” We are all going to die; fortunately, the odds of dying at a young age are pretty slim.  In fact, the odds of a 25-year-old American dying is about 1 in 3,000; for a 33-year-old, it’s 1 in 1,500; and for a 42-year-old, it’s 1 in 750.  Comforting, right?

What if you have the misfortune of being one of the “1 in”?  If you haven’t planned for this curveball, the financial consequences can be devastating to those you leave behind.  Younger individuals often have additional debt, such as student loans and mortgages.  Many have young children who still have a lifetime of expenses ahead of them.  Life insurance can financially protect your loved ones. 

Long Life

On the flip side of an early death, is living well into your 90’s or 100’s.  Medical advances are allowing people to live longer, healthier lives.  According to data compiled by the Social Security Administration:

• A man reaching age 65 today can expect to live, on average, until age 84.
• A woman turning age 65 today can expect to live, on average, until age 86.

And those are just averages. About one out of every four 65-year-olds today will live past age 90, and one out of 10 will live past age 95. Traditionally, most people expected about 15 years of retirement.  Today, it can be 20, 30, or even longer.   This is awesome, right? 

Absolutely - if you’ve prepared for this particular curveball.   A permanent life insurance policy can provide much-needed funds to help supplement your retirement income.  You can also get a long-term care rider on permanent life insurance that can help cover long-term care costs.

Becoming Disabled

Your chances of becoming disabled are probably higher than you think.  According to the Council for Disability awareness:

• Just over 1 in 4 of today's 20 year-olds will become disabled before they retire.
• One in eight workers will be disabled for five years or more during their working careers.

Are you prepared this curveball? Probably not.

•       The average group long-term disability claim lasts 34.6 months.

•       5% of working Americans say they could not cover normal living expenses even for a year if their employment income was lost; 38% could not pay their bills for more than 3 months.

The Case for Disability Insurance

Disability insurance is important to help you make ends meet until you’re able to go back to work.  Plus, many life insurance policies allow you to add a disability waiver to cover certain expenses if you become disabled, and some permanent life insurance policies have a premium waiver in the event you become disabled.

Insurance Protection for Those Curveballs!

American Insuring Group can help protect you and your family from life’s unexpected curveballs.  Contact us by email or give us a call at (800) 947-1270 or (610) 775-3848.

A Leading Cause of Workplace Injury

OSHA reports, “Lifting heavy items is one of the leading causes of injury in the workplace.”  This is particularly true in the healthcare industry.  Improper lifting can cause back sprains, muscle pulls, wrist injuries, elbow injuries, spinal injuries, etc. 

Sharing the following smart lifting practices with your employees will not only help improve the health of your employees, but also help reduce the number and cost of lifting-related workers’ compensation insurance claims.

There are several factors that contribute to lifting injuries:

• Weight of Objects
• Awkward Postures
• High-Frequency and Long-Duration Lifting
• Inadequate Handholds
• Environmental Factors

Avoid Workers Comp Injuries - Follow These Safe Lifting Tips.

Here are some tips from OSHA to help your employees avoid injury from lifting:

• Limit the weight you lift to no more than 50 pounds.  When lifting heavier loads, use two or more people to lift the load.
• Use ramps or lift gates to load items into trucks rather than lifting them by hand.
• Use your legs instead of your back when lifting an item from a low location.
• Avoid twisting, especially when bending forward while lifting.  Turn by moving the feet rather than twisting the torso.
• Keep your elbows close to your body and keep the load as close to your body as possible.
• Break down loads into smaller units and carry one in each hand to equalize loads.
• Rotate tasks so employees are not exposed to the same activity for too long.
• Take regular breaks and split tasks into shorter segments.
• Move materials from containers with poor or no handholds into containers with good handholds.
• Wear proper personal protective equipment to avoid finger injuries and contact stress.
• Adjust work schedules to minimize exposure to extreme temperatures.
• Drink lots of water to avoid dehydration in excessive heat.

More Safe Lifting Tips

For more information about safe lifting techniques, go to https://www.osha.gov/SLTC/etools/electricalcontractors/materials/heavy.html#awkward

Be Prepared for the Unexepected with Quality Workers' Comp Insurance

Following these tips will help ensure the safety of your employees and reduce workers’ comp claims; however, injuries may still happen. 

The right workers' compensation insurance will protect your business from these unforeseen incidents. 

Contact American Insuring Group at (800) 947-1270 or (610) 775-3848.  We can help with all of your business-related insurance needs, including workers’ compensation.

Picture this: a pizza delivery guy, a shuttle driver (sole-proprietor of the business), and an independent landscaping contractor collide into each other at the intersection of First and Main.

As they all get out of their vehicles to examine the damage, the delivery man asks, “Do you guys have commercial vehicle insurance?”   Both drivers shake their heads no.  “Do you?” asks the shuttle driver.  The delivery man looks down at his feet, and says, “No, but I’ve been meaning to talk to my insurance agent about it.” 

Insurance Claim Denied

In this scenario, chances are that all three would hear the same answer from their insurance agent, “Sorry, but your personal vehicle insurance won’t cover this accident.”  

If you own a fleet of vehicles and hire many drivers, you probably know you need commercial vehicle insurance.  But what if you just use your personal vehicle for business occasionally, or it’s just you driving your truck from job to job?   Won’t personal car insurance cover you in the event of an accident?  It depends. 

Like personal vehicle insurance, commercial vehicle insurance covers things such as liability, collision, comprehensive, medical payments, and uninsured motorist coverage. However, there may be a difference in eligibility, definitions, coverage, exclusions, and limits. Certain business usage and vehicle types can be excluded from personal policies. Some businesses need coverage only found in commercial car and truck insurance. 

Commercial Vehicle Insurance Benefits

Commercial vehicle insurance generally includes higher liability coverage.  Sometimes commercial insurance also insures the items (such as work equipment) within your vehicle; it may include rental reimbursement to help cover the cost to temporarily replace a commercial vehicle; and it may offer single-deductible options, which allow you to extend coverage to trailers or other specialized equipment you haul. 

So, how do you know if you need commercial vehicle insurance or if personal vehicle insurance is enough? It depends on the nature of your business, how you use your vehicle, and your insurance company’s policies.  Here are a few questions you need to consider - if you answer yes to any of them, you may need commercial car insurance.

·       Is your vehicle used to transport goods or people for a fee?

·       Is your vehicle owned or leased by a partnership or corporation?

·       Is your vehicle registered or titled to a business, corporation, partnership, or DBA?

·       Do employees operate your vehicle?

·       Is your vehicle a pickup, van, or utility vehicle with a gross weight exceeding 10,000 pounds or does it have a rated load capacity over 2,000 pounds?

·       Is your vehicle equipped with snowplow equipment, cooking or catering equipment, bathrooms, altered suspensions, hydraulic lifts, or racing equipment?

·       Is your vehicle equipped with a ladder rack or permanent toolbox that is used for your business?

Don't Take Chances on Insurance for Your Commercial Vehicle - Contact Us Today

Personal vehicle insurance provides enough coverage for some businesses; however, there are times when commercial vehicle insurance is required.  If you don’t want to be like the pizza delivery driver, the shuttle driver, or the independent landscaping contractor in our story, contact us for advice in making the right insurance decision at (800) 947-1270 or (610)775-3848.  We'll help you obtain the right type and level of vehicle insurance for your business. 

What a Tragedy Taught us About Fire Safety & Commercial Insurance

On March 25, 1911, the US witnessed one of the deadliest industrial disasters in American history – the Triangle Shirtwaist Factory Fire in New York City.  The fire resulted in the deaths of 146 garment workers – 123 women and 23 men – who were working on the eighth, ninth, and tenth floors.  Some died from the fire, but many were killed by smoke inhalation or falling or jumping to their deaths.   

This horrible tragedy led to legislation that improved worker safety standards, including better building access and egress, fireproofing, fire extinguishers, alarm systems, and automatic sprinklers.  More than one hundred years later, the lessons learned from this tragedy still apply. 

Here are some reminders on how to avoid workplace fires and injuries, thereby reducing the long-term cost of your commercial and workers comp insurance by minimizing both the number and severity of your insurance claims.

6 Tips to Avoid Workplace Fires & Injuries

Give them a way out. If the doors to the stairwells and freight elevators in the Triangle Factory weren’t locked to prevent theft, many of the 146 workers who perished would have survived.

Enforce smoking bans. Although smoking was banned on the Triangle Factory floor, it was common knowledge that workers often snuck cigarettes in.  The suspected cause of the Triangle fire was a discarded match or cigarette.

Quickly get rid of scrap material. Two months’ worth of highly flammable fabric cuttings (hundreds of pounds) were in the scrap bins in the Triangle Factory.

Keep them separated. Fabric hanging close to the scrap bins helped the fire spread more quickly.

Make it easy to spread the word. There were no working telephones on the ninth floor of the Triangle Factory, so workers there didn’t know about the fire until it had reached their floor.  Working, audible fire alarms and emergency communication systems could have made all the difference.

Regularly inspect your fire escapes. Twenty people died when the flimsy fire escape at the Triangle Factory collapsed.

Be Prepared with the Right Commercial Insurance

Contact an American Insuring Group agent at (800) 947-1270 or (610) 775-3848 to ensure that you have the proper workers compensation insurance and commercial insurance to protect both your employees and your business. As independent agents we offer insurance solutions from over 25 competing insurance companies to give you the best options at the best price. Serving Philadelphia, Reading, Lancaster, Allentown, York, PA and far beyond. Call today.

But how do you know what types of commercial insurance are best for your business?  Or how much coverage you need?  As a business owner, you probably wear many hats, but an insurance expert hat is probably not in your wardrobe!

Here are three basic things to consider when buying business insurance for your company:

1. Determine Your Risks – The insurance company will determine the level of risk it’s willing to accept when issuing a policy and may decide to provide all or just a portion of the coverage you request.  Your broker will then offer a policy that includes a premium and a deductible.  Premiums depend on a number of risk factors, such as your location, proximity of fire protection services, and your type of building structure, in addition to the amount of coverage you want to purchase.  A higher deductible will probably lower your premiums, but it will also increase your financial risk. It’s important to determine the level of risk you’re willing to take.
   
   
2. Keep it Simple: Consider a Business Owner’s Policy (BOP) – You can purchase insurance separately or as a package called a Business Owner’s Policy.  A BOP usually covers property, general liability, vehicles, business interruption, and other types of coverage common to most types of businesses.  BOPs simplify the insurance buying process and typically save you money.  But, it’s important that you understand what is and isn’t covered by a BOP.  Unique risks may require additional coverage. Your independent insurance agent can help clarify your options and help you identify your needs.
   
   
3. Review Your Insurance Coverage Annually – As your business grows, so do your liabilities.  As you purchase or replace new equipment or expand operations, you may need more coverage.

The Small Business Administration (SBA) says, “Finding a good insurance agent is as important as finding a good lawyer or accountant.”   At American Insuring Group we're interested in your needs, we understand the risks associated with your business, and we can help you get the right commercial insurance for your business needs. 

So give us a call at (800)947-1270 or (610)775-3848 or use our online quote system to get a free business insurance quote.

Electrically-Related Worker's Comp Injuries

Electrical hazards cause more than 200 electrocutions (death by electric shock) and 4,000 workplace injuries each year, costing businesses millions of dollars in Workers’ Comp claims, fines, medical costs, litigation, lost business and equipment cost.  “While electrical hazards are not the leading cause of on-the-job injuries, accidents, and fatalities, they are disproportionately fatal and costly,” according to the Electrical Safety Foundation International (ESFI). 

The good news is that most electrically-related injuries and the resulting workers’ compensation and fire-related rebuilding costs can be avoided with a comprehensive electrical safety program. That's good news for electrical contractors and other businesses whose employees perform electrical maintenance and installation services.

12 Ways to Avoid Electrical Injuries and Reduce Worker's Compensation Insurance Claims

Whether you’re in an office, a warehouse, or a manufacturing facility, there are things you can do to avoid electrical injuries and costly worker's comp claims:

• Avoid using electrical equipment in unsuitable conditions, such as a wet or dusty workplace.
• Ensure electrical panel doors are freely accessible and unblocked by furniture or clutter.
• Tuck cables and cords away so they don’t create tripping or slipping hazards.
• Place electric cords where there is air circulating to prevent overheating.
• Keep electrical cords away from heat sources, such as radiators and space heaters.
• Ensure that the electrical load of equipment such as computers, printers, scanners, faxes, shredders, and telephones is spread over several circuits.
• If you are using extension cords as a permanent source of power, consider having additional circuits installed.
• Plug office electronics into a surge protector.
• Ensure grounded (3-prong) appliances and equipment are plugged into grounded outlets.
• Avoid spilling beverages on electronics, and if it happens, be careful, as electrically powered devices may become live to the touch if they become wet.
• Pull on the plug, not the cord, when unplugging equipment.
• Get rid of old, unsafe or poorly maintained equipment, such as old coffee makers, radios, lamps, and space heaters.

Improve Electrical Safety in your Workplace

ESFI offers the following steps:

Step 1: Awareness

What does electrical safety mean to you?  The How Do You Know? video modules demonstrate how safe electrical practices are vital to everyone in your business.

Step 2: Assessment

Are you confident that your company's electrical safety program is up-to-date and comprehensive?  Evaluate your program with ESFI's Electrical Safety Self Assessment. It's an easy to use tool that will help you review and analyze your company's electrical safety practices related to facilities, personnel, and procedures.

Step 3: Improvement

Once you identify areas that need to be addressed, what's the next step?  ESFI has compiled a library of safety resources and links to help you find the information you need.

Worker's Compensation Insurance - Do You Have the Right Coverage?

Following these suggestions will help ensure the safety of your employees, reduce workers comp claims, and avoid fire-related business costs. 

However, even the best laid plans sometimes fail.  When that happens you need to have the right insurance to protect your business from those unforeseen incidents.  Contact American Insuring Group at (800) 947-1270 or (610) 775-3848 for help in obtaining the right worker's comp insurance to properly cover your business from loss.  We can help you with all your business-related insurance needs.

Working in the food service industry often means hard work and long hours.  You also face many unique challenges, including the responsibility of ensuring that the food you serve to your customers is safe.  As any restaurant owner knows, a foodborne-illness can cause the loss of thousands of dollars and, in some cases, your entire business. 

The National Restaurant Association estimates the average cost of a foodborne illness outbreak at more than $75,000.  This doesn’t even take into account the human cost. Does your restuarant have the proper insurance to handle such an occurence?

Millions of people become sick each year and thousands die after eating contaminated or mishandled foods. The Centers for Disease Control and Prevention (CDC) estimated in 2011 that contaminated food caused 47.8 million illnesses a year in the United States (that includes food eaten at home and other places besides restaurants).

Ten Factors That Often Cause Food-borne Illnesses, According to the CDC:

1. Improper cooling of foods — the leading cause of foodborne illness outbreaks.
2. Advance preparation of food (with a 12-hour or more delay before service).
3. Infected employees who practice poor personal hygiene.
4. Failure to reheat cooked foods to temperatures that kill bacteria.
5. Improper hot holding temperatures.
6. Adding raw, contaminated ingredients to food that receives no further cooking.
7. Foods from unsafe sources.
8. Cross contamination of cooked food by raw food.
9. Improper use of leftovers.
10. Failure to heat or cook food thoroughly.

Here are five steps you can take to minimize foodborne illnesses in your restaurant and decrease the risk of an insurance claim:

1. Wash your hands.
2. Thoroughly wash all produce, since it is often served uncooked.
3. Maintain a temperature at or below 40°F in your refrigerators to minimize bacterial growth.
4. In order to kill any bacteria present, cook foods to the minimum recommended internal temperature and sustain that temperature for at least 15 seconds.
5. Clean and sanitize all food contact surfaces, such as countertops, cutting boards, utensils, pots, and pans.

Have the Right Restaurant Insurance When All Else Fails

If, in spite of all your efforts to keep your food safe, your restaurant does experience an outbreak of a foodborne illness, there’s only one thing that can save you – the right insurance.  One option you may want to consider adding to your basic policy is business interruption insurance to help your business stay afloat if you’re forced to shut down for any length of time.  Another good option is food contamination coverage, which covers your restaurant from financial loss and helps rebuild your restaurant’s reputation.

Don't Leave it to Chance: Contact us Today

You’ve worked hard to establish your restaurant business. Don't leave things to chance. Be sure you can survive any potential issues with a comprehensive restaurant insurance policy tailored specifically to your business.  The agents at American Insuring Group understand your unique challenges. Contact us at (800) 947-1270 or (610) 775-3848.   

How Will the Affordable Care Act Affect Small Business Health Insurance Costs?

You would have to be living on a desert island or under a rock not to have heard of the Affordable Care Act (a.k.a. Obamacare).  But with all the partisan arguments about how wonderful or – conversely - how awful this new law is, it’s hard to separate the wheat from the chaff.  So, as Sgt. Joe Friday said, we’ll try to stick with "just the facts, ma'am."

Affordable Care Act Facts:

FACT: The Affordable Care Act (ACA) was passed by Congress and then signed into law by President Obama on March 23, 2010. 

FACT: On June 28, 2012 the Supreme Court rendered a final decision to uphold the health care law.

FACT: Open enrollment in the Health Insurance Marketplace began October 1, 2013 and ended March 31, 2014

That’s probably where the “facts” end.  The stated intent of the ACA was to offer affordable health insurance to every American.  According to the U.S. Department of Health and Human Services website, the ACA “puts consumers back in charge of their health care. Under the law, a new ‘Patient’s Bill of Rights’ gives the American people the stability and flexibility they need to make informed choices about their health.”  Few would argue with the value of the law’s stated goals, which are summarized as follows on the HHS website: “All together, these reforms mean that millions of people who were previously uninsured will gain coverage, thanks to the Affordable Care Act.”

What Impact Will the Affordable Care Act Have on Small Business Insurance Costs?

The full repercussions of the ACA on small businesses and their health insurance costs – and whether it’s truly “wonderful” or actually “awful” - won’t be known for several years; however, the Center for Medicare and Medicaid Services (CMS), which spearheaded the implementation of the law, presented a report to congress with a few predictions.  In the interest of “sticking with the facts,” CMS’s report states, “There is a rather large degree of uncertainty associated with this estimate. The impact could vary significantly depending on the mix of firms that decide to offer health insurance coverage.”

CMS: 2/3 of Small Businesses to See Increased Costs

A recent Small Business Association poll found that 96 percent of small businesses said their health insurance premiums have significantly increased over the past five years, with average monthly insurance costs increasing from $590 per employee in 2009 to $1,121 in 2014.  CMS’s research indicates those rates will continue to rise.  The CMS report states that the new rules, such as requiring that insurers offer guaranteed health coverage and insurance renewal options to small employers and preventing insurance companies from varying their rates based on a company’s industry or the age of its employees, will most likely drive up the price of insurance for many small businesses. 

The report estimates that 65 percent of small businesses are expected to experience increases in their premium rates, while only 35 percent will see a reduction. Businesses with exceptionally sick or at-risk workers will benefit most from the new provisions.  The effect on large employers is expected to be negligible, since many larger companies run their health insurance programs in house. 

What Can You Do to Control Your Business’s Health Insurance Costs?

American Insuring Group can help you navigate through the complexities of the new ACA rules and ensure that you get the best health insurance premiums available.  Contact an agent at (800) 947-1270 or (610) 775-3848 for more information about health insurance and the Affordable Care Act.

Want to learn more? Download our free report: 10 Things You Should Know About Health Insurance Under the Affordable Care Act

2013 was a good year for the real estate industry.  The price of homes increased by more than 20% in certain hotspots, and experts predict that home prices will continue to rise in 2014 – albeit, at a more moderate rate of 3-5%.  This is great news if you’re a realtor or if you’re trying to sell your home.  But you might be asking yourself, “Does this mean I need to reevaluate the insurance coverage on my home?  Does this mean I have to pay higher house insurance premiums?”

Market Value vs. Replacement Cost Value

Before we answer this question, you need to understand the difference between “market value” and “replacement cost value.”  Market value is how much you should be able to get for your home if you were to sell it.  This value is based on location, the value of the land, and other real estate trends. On the other hand, replacement cost is what it would cost to replace your home if it was completely destroyed – if you had to rebuild it from the ground up. 

Why Did You Purchase Homeowner’s Insurance?

Now think about why you purchased your homeowner’s insurance.  Wasn’t it to protect you and your family against unforeseen disasters?  If a storm rips the roof off your home, you want to be able to replace it.  If your house is completely destroyed by a fire, you need to have the resources to rebuild it, so you and your family have a place to live.  Plus, most disasters that can affect your home don’t affect the land itself.  If a tornado blows through your home or a tree lands on your roof, the value of the land your home rests on isn’t affected. 

Therefore, you should insure your home for what it would cost to repair or replace it, not what someone else would pay for it.  So, if the market value of your house increases because of the real estate market, there’s no need to re-evaluate your homeowner’s insurance.  Plus, most homeowner’s insurance policies have an inflation guard that automatically increases the value of the property by 3-5%.

When Considering Insurance on Your Home, Remember the Upgrades!

Now, if you make improvements to your home, such as an addition or a major renovation, it can affect both the market value and the replacement cost.  In that case you should contact your insurance agent, so you can make sure that your entire investment is protected in the event of a disaster. 

If you’d like to take a look at your homeowner’s insurance to be certain your home has sufficient protection, contact American Insuring Group at (800) 947-1270 or (610) 775-3848. We'll help you get the right level of quality insurance at the right price, quoting several competing insurance providers in the process.