In the early 1990’s when many states began passing workers compensation insurance acts, there was a prerequisite that any compensable injury had to have a physical impact. That has changed over the years.

Today most states accept that mental injuries can occur and, therefore, can be classified as a compensable injury. Mental injury workers comp claims can be expensive to defend, and expensive if found to be compensable.

3 Types of Mental Injury Cases Affecting Workers Compensation Insurance 

Pennsylvania workers compensation law distinguishes between three (3) types of mental injury cases:

• Mental / Physical
  A work-related mental or emotional experience causes physical consequences. Sometimes a heart attack or cardiac condition can qualify as a compensable event under this standard. In this case, most courts apply a two-part test. The first part is the need for an accumulation of workplace stress beyond the ordinary day-to-day stress employees are exposed to. The second part is the need for legal causation between the stress and the alleged work injury.
  
  
• Physical / Mental
  A physical stimulus causes a mental injury. A good example of a “physical/mental” case involves an amputation or orthopedic injury of sufficient severity to necessitate later psychological counseling or psychiatric treatment for a condition such as depression or PTSD. Although the physical injury need not be the only cause of the mental injury, the element of “contact” is required.
  
  
• Mental / Mental
  A mental or emotional stimulus causes purely emotional sequela (an aftereffect of a disease, condition, or injury).  There is no physical impact or harm. This applies to any employee that is subjected to “abnormal working conditions.” Typically a verbally abusive boss is not sufficient grounds, but a store clerk who has been robbed at gunpoint, is traumatized by the event, and can no longer function normally may be.

The categorization determines the burden of proof.  In physical/mental and mental/physical cases, the claimant needs to provide evidence that establishes that his or her injuries arose in the course and scope of employment.  Mental/mental injuries require a higher burden of proof. The Claimant needs to demonstrate the presence of “abnormal working conditions.”

Proper Handling of Workers Compensation Insurance Claims

In addition to understanding the laws in your state regarding mental injury workers’ compensation claims, you also need to learn how to work with medical experts. Here are three tips when choosing and working with medical experts.

1. Prior to the independent medical/psychological evaluation by your medical expert, provide a complete set of medical records  - including review of all pre- and post- injury medical records related to the employee’s conditions - if you want your expert’s opinions to be accepted.
   
   
2. You never know how a court may respond to a medical expert. It may accept your expert’s opinions based on a rational explanation that the employee’s condition is affecting their recovery or they may be more receptive to the medical expert’s opinion when the report is detailed and supported by deposition testimony. Therefore, provide a detailed and logical explanation for an expert’s opinions to help prove your theory or position.
   
   
3. Accurate and concise reporting is essential when it comes to the acceptance of an expert’s opinions. If your expert makes the slightest error or omission, all of his opinion could be disregarded.

Learn More About Your Workers' Compensation Insurance Options

To learn more about saving on workers’ compensation insurance costs and all your workers comp insurance options,  click here to contact American Insuring Group or call us at (800) 947-1270 or (610) 775-3848.

All businesses are at risk for some type of damage, liability or loss, and need to ensure that they have the right commercial insurance to protect themselves, their business, and their employees from those risks. 

Food service businesses – whether it’s a café, diner, or gourmet restaurant - are no different and actually present some unique risks that need to be addressed.

Often the most cost-effective way to protect a restaurant is with a Business Owners Policy (BOP) that is tailored specifically to the needs of the restaurant business. That's what we mean by  restaurant insurance.

Here are the Three Main Categories of Business Insurance for Your Restaurant

Restaurant Insurance Category #1: Property Insurance

Property insurance protects… well… property. That could include the actual building that your restaurant is located in if you own the property and all of the property within the building (whether you rent or own), such as equipment, dishes, food, and furniture. In the event of a fire, flood or other damaging event, property insurance allows you to replace those items so that you can resume business.

Many BOPs also include Business Interruption Insurance and Business Income Insurance. Interruption insurance helps you recover as quickly as possible by paying extra expenses caused by the interruption in your business —such as rent for temporary quarters.    Business Income Insurance helps pay for ongoing expenses – such as rent - incurred while your business is closed. 

As a food service business, you carry the added risk that your food could cause food poisoning or transmit a communicable disease, which makes a Food Contamination Endorsement Insurance a good idea for many restaurant owners. Typically, this endorsement helps pay for lost income if the business is shut down by a government authority, clean up expenses, food replacement, and additional advertising expenses required to restore your restaurant’s reputation.

Other property insurance coverages you may want to consider as a food service business owner include…

• Spoilage
• Mechanical Breakdown
• Outdoor Signs
• Burglary and Robbery
• Employee Dishonesty

Restaurant Insurance Category #2: Business Liability Insurance  

Commercial liability insurance helps protect your business against lawsuits – from someone breaking their leg walking up your steps to claims of libel or slander. We live in a very litigious society, and you never know what your restaurant could be liable for. Remember the woman who sued and won the lawsuit against McDonalds because she spilled hot coffee on herself? Even if you win the lawsuit, the cost of defending yourself can seriously affect your bottom line. Liability insurance helps protect you and your business.

If your restaurant has a liquor license, you should also include a Liquor Liability Endorsement to help cover the cost of your defense in the event of a lawsuit and any damages awarded if you are found liable.

Restaurant Insurance Category #3: Workers Compensation Insurance

Worker’s 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 an employee lost wages and medical expenses incurred due to a work-related accident, while also protecting the employer against accident-related lawsuits. 

Need Better Restaurant Insurance?
We Can Help! 

Whether you own a sandwich shop or an elegant restaurant, the independent insurance agents at American Insuring Group can help find the right insurance at the right price for your food service business. Because we're independent, we're free to shop around for the best deal among many competing providers of restaurant insurance based on your particular needs.

So give us a call at (800) 947-1270 or (610) 775-3848, or click here to Contact Us today.

While business insurance is your safety net for financial loss from theft, it's better to minimize the chance of your business becoming a victim of theft in the first place.

Unfortunately, most businesses become victims of theft at some point.  In fact, the most serious thefts can drive them out of existence.

Business owners and their managers need to first acknowledge that it can happen and then take the necessary steps to prevent it…or at least to minimize the loss.

Insuring Against Four Types of Theft

There are four types of theft: burglary, robbery, theft by employees, and identity theft. Each of these has its own set of challenges and preventive measures. Check with your independent insurance agent to be sure your commercial insurance coverage adequately protects you against each of these categories of business theft.

#1. Insuring Against Burglary:
Unlawful Entry with Intent to Steal

Burglars enter your business when no one is there. They mainly target your cash, merchandise and equipment, but they may also commit a host of other felonies.

Thieves like to work in the dark, so visibility is your first line of defense here. Bright interior lights deter illegal entry, especially if your building can be seen from the street. Exterior lights, protected with metal cages, may discourage them from approaching at all. This is a good start, but there are other equally important steps you can take to prevent a break-in:

• An alarm system with motion detectors
• Steel doors with dead bolt locks
• A see-through fence (i.e., chain link)
• Windows with safety glass and locks
• Padlocks on overhead doors

#2. Insuring Against Robbery:
Taking Cash or Valuables from a Person

If your business deals in cash or smaller valuables, you are susceptible to being robbed. This could happen either by force or the threat of force. To keep it from happening at all, there are things you can look for and actions you should take:

• Keep cash to a minimum
• Post signs indicating the maximum amount of cash on the premises
• Be alert – look for signs of danger
• Recognize potential hiding places near your business
• Provide bright lights and good visibility to deter robbers

Being robbed will be traumatic. Your managers and employees need to be trained to react properly if all preventive measures fail. Here are some guidelines to remember during and immediately after a robbery:

• Cooperate with the robber
• Obey orders quickly
• Don’t argue or fight
• Don’t use a weapon
• Don’t chase or follow the robber
• Call the police

#3. Insuring Against Employee Theft:
An Insidious Crime

Business owners don’t want to believe that a trusted employee is stealing from them. As a result, most of this theft goes undetected. It is estimated that businesses may be losing as much as forty billion dollars each year to this crime. It is crucial that you work with your accountants regularly to spot the following signs:

• Changes in sales and inventory without a corresponding increase in profits or cash flow
• Shipping records that are not consistent with inventory
• Unauthorized changes in paperwork or established procedures

As a business owner, you need to be aware that loyal employees may steal, as do well-paid executives and workers who have been with you for many years. Encourage all employees to report their suspicions and concerns. Tell them what to report and how to do it. Work diligently with your accounting staff to catch inconsistencies early.

#4. Insuring Against Identity Theft:
Not Just a Consumer Problem

Business identity theft is growing, and the consequences are enormous. It affects your entire business, including employees, customers, and suppliers. Identity thieves can tap into your credit lines, change your contact information, then order supplies or obtain credit cards. They can also go after your customers. Defend against them by doing the following:

• Securely lock up any paper data and shred it when it’s outdated
• Make sure networks are password protected and have a firewall
• Install security software on any mobile devices that contain confidential company data

Protect Your Business From Theft - Get the Right Commercial Insurance

If, in spite of all these measures, your business is still a victim of theft, the right business insurance can help.

Don't wait until your business takes a hit. Be proactive: Call American Insuring Group at (800) 947-1270 or (610) 775-3848, or click here to contact us.

If you own a child care business, you’re probably familiar with the specific rules you must follow and specific certifications you must obtain in order to legally operate your business. In Pennsylvania, child care and early learning providers operating a program for four or more unrelated children must be certified by the Pennsylvania Department of Human Services.

There are three types of child care facilities:

Child Care Center: A child care facility in which seven or more children who are not related to the operator receive child care. A child care center must have a certificate of compliance ("license") from the Department of Human Services (DHS) in order to legally operate.
 
Group Child Care Home: A child care facility in which seven through 12 children of various ages or in which seven through 15 children from 4th grade through 15 years of age who are not related to the operator receive child care. A group child care home must have a certificate of compliance ("license") from DHS in order to legally operate.
 
Family Child Care Home: A child care facility located in a home in which four, five, or six children who are not related to the caregiver receive child care. A family child care home must have a certificate of registration from DHS in order to legally operate.

But what if your business doesn’t fall under one of these facilities, but you still work with or around children under the age of 18?

Maybe you tutor children or teach gymnastics. Maybe you sell a product or service that attracts children, such as toys, games, or even ice-cream to your place of business. Although you are not required to follow the same rules as a day care business, you are still responsible for the safety of those children when they are within your care or facility. Ensuring that safety also helps to protect your business.

Here are three ways to ensure the safety of minors:

#1) Be certain your insurance plan adequately protects your business and your customers
There are a variety of commercial liability insurance options to protect your business, including general liability insurance, product liability insurance, professional liability (professional indemnity) insurance, error and omission insurance, and more.

#3) Create a safe environment
First, ensure that your facilities meet your state and local safety regulations for zoning, fire codes, and sanitation and understand any safety requirements unique to your business. Consider drafting a liability waiver that the children’s parents or guardians can sign. Even if you aren’t required to do so, training your staff in first aid and CPR and developing a contingency plan for accidents, illnesses, and emergency procedures are always good ideas.   

Protect Your Business with Commercial Liability Insurance

To learn more about protecting your business and your customers (both big and small) with the proper commercial liability insurance, give us a call at (800) 947-1270 or (610) 775-3848 or click here to contact us. 

Bill is 50-year-old department manager for a mid-sized manufacturer. Even though he has never been seriously ill and has a clean family health history, he was recently told that he has cancer.

While the treatment will be long and difficult, Bill can take comfort in knowing that his employer-sponsored health insurance will pay most of his hospital and physician costs.

But Bill is about to be blindsided for a second time when he realizes that he will have no income to help support his family as he recovers from the difficult medical treatments.

Disability Insurance Myths - An Employee’s Perspective

During the working years, an employee is over three times more likely to be disabled than to die. At Bill’s age, the odds are still 1.8 to 1 in favor of a disability. In fact, thanks to advances in medical treatments over the last twenty years, deaths from the major illnesses (cancer, stroke, and heart disease) are down nearly one third, while disabilities from these same diseases are up by over 50%!

Yet Bill, like many workers, is only protected against the lesser risk.

Based on these statistics, you would think that every employee would ensure that he has disability insurance coverage. Unfortunately, many of today’s workers do not see the necessity for this insurance because, like Bill, they have been lulled into a false sense of security by a lifetime‘s worth of good health or the naive belief that unforeseen illnesses and accidents happen only to the unlucky few.

Disability Insurance Considerations From an Employer’s Perspective

Unlike the readily understandable benefits like paid vacation or health and dental insurance, disability income insurance can be more difficult to use as an incentive for workers to remain loyal, yet in time of need it will be the most appreciated part of the benefit package. Workers of all ages (yes, even those young employees who believe they are invincible) need protection from those surprises that can neither be predicted nor prevented. Disability Insurance is a benefit that a caring employer can provide, even if it is never needed, and it will engender a sense of loyalty when it is established with a thorough explanation.

2 Types of Disability Insurance

There are two basic types of disability insurance: short term (STD) and long term (LTD), neither of which should put an undo strain on a company’s budget. Employers have the option of adjusting the waiting period (the interval from the injury or illness to the start of payments) and the benefit period (the maximum amount of time for which the worker will receive payments).

In the case of STD the waiting period is generally up to two weeks, while the benefit period can be as little as thirteen weeks or as much as two years. With LTD the waiting period ranges from six months to two years, and the benefit period would last from a few years to a lifetime.

Employers also have the flexibility to require employees to contribute a portion of the premium, or they may choose to pay the entire amount themselves. There are a variety of paths that an employer can take to establishing a plan that fits the company’s budget and, at the same time, addresses the potential needs of the workers.

Disability Insurance - Putting it all Together

There is little doubt that disability insurance has advantages for both your employees and your company. Consider these:

• Group rates are lower than individual rates and, with the option of employee contributions, a plan can be established at a reasonable cost
• There are no medical exams, so all of your employees are automatically covered regardless of medical history
• Those valued employees who become temporarily disabled return to the company with a sense of loyalty and gratitude
• Waiting and benefit periods can be adjusted, which gives your business flexibility in designing a plan
• Hiring managers can use this benefit as a recruiting tool for inducing new talent to the company

Get the Right Disability Insurance Coverage

To learn more about your disability insurance options, give us a call at (800) 947-1270 or (610) 775-3848, or click here to contact us. We offer health and disability insurance protection from multiple competing insurance providers, so unlike single-brand companies, we're free to shop around to find the best deal on quality insurance protection. Contact us today to get started.

Do you live under a rock?  No?  Then it’s pretty safe to say that you’ve heard about the Affordable Care Act (ACA) – Also known as Obamacare - that was signed into law in March 2010. 

It may also be safe to say that you don’t completely understand it and the implications it imposes on your small business, including health insurance requirements for your employees.  We would like to simplify it for you.

What is Affordable Care Act?

The Patient Protection and Affordable Care Act (Affordable Care Act or ACA) created several health insurance reforms that were designed to ensure that all Americans have access to quality, affordable health insurance. 

What are the Health Insurance Impliccations for Small Business Owners?

The ACA requires that all employers with 50 full-time equivalent (FTE) employees or more must offer health insurance to full-time workers or pay a penalty.  If you have less than 50 FTE employees, you are not required to provide health insurance.

Although it’s important to understand its implications, you may be surprised to learn that ACA doesn’t affect as many businesses as you might think.  According to obamacarefacts.com,

• 90% of US firms have less than 20 full-time employees
• About 96% of firms have fewer than 50 full-time employees.
• Less than 0.2 percent of all firms (about 10,000 out of 6 million) face employer responsibility requirements.
• More than 96 percent of firms with 50 or more employees already offer health insurance to their workers.

Here are three provisions of ACA specific to health insurance for small businesses: 

The SHOP Marketplace - an online health insurance exchange - is open to employers of 50 full-time employees or less. Insurance plans in the Marketplace are offered by private companies and cover the same essential health benefits. No plan can turn you away or charge you more because you or your employees have an illness or medical condition. The idea is that pooling insurance risks will increase small business purchasing power, provide more choices for them, and simplify the paperwork.

Insurance plans in SHOP are available through insurance brokers – like American Insuring Group - at no additional cost to you.

ACA offers incentives to small businesses that employ less than 25 full-time low- and moderate-income workers.  Credits may be worth up to 50 percent of an employer's insurance premium costs – helping to offset the cost of providing health insurance coverage for employees.

To qualify for the tax credit…

• you must have fewer than 25 full-time equivalent (FTE) employees,
• your average employee salary must be $50,000 per year or less,
• you must pay at least 50% of your full-time employees' premium costs, and
• you must offer coverage to your full-time employees through the SHOP Marketplace.

3)  Reporting and Notifications

The IRS has implemented new ACA-reporting requirements that small business must follow.  Some businesses…

• may be required to report the value of the health insurance provided to each employee on W-2 forms
• may need to officially notify their employees in writing about the new health insurance Marketplace.

Get Help - Find the Right Health Insurance for Your Small Business

Contact American Insuring Group at (800) 947-1270 or (610) 775-3848.  We can help you:

• Determine if your business has 50 or fewer employees and is eligible for SHOP
• Apply for health insurance for your employees
• Review and compare price, coverage, quality, and other important features of available SHOP plans
• Enroll in the SHOP plan you choose
• Help you understand eligibility for the Small Business Health Care Tax Credit
• Answer your questions and guide you through the process
• Help you after you’re enrolled

Every small business should conduct a risk management assessment prior to reassessing their business insurance needs – preferably before they even open their doors.  Basically, this means imagining the “What ifs” and thinking about worst-case scenarios.  Think about any event that could lead to a loss for your business, estimate the cost of that loss, and determine how to best address each risk.  These losses may include material losses, liability, business interruption, or injury to employees.  

There are several factors that will determine the list of risks to your business.  The risks to a company that produces large machinery will be very different from a service business.  A caterer who rarely if ever has customers coming to their location will have very similar and – at the same time - very different risks and insurance needs than a restaurant that has customers coming and going all the time.  Each business is unique.

Here are 7 types of risk/loss to consider before purchasing or changing your commercial insurance coverage:

1. Loss of physical assets due to accidents (fires) and nature (floods)
2. Loss of Intellectual Data
3. Theft of physical assets
4. Business liability – customers or employees getting injured on your premises
5. Business product liability – A product that you manufacture/sell causes injury
6. Advertising slander or personal injury
7. Loss of income

How to Deal with business risks and help lower your commercial insurance costs:

Some business risks can be minimized or eliminated with specific actions; many risks are best managed by purchasing commercial insurance.  For example, if you’re concerned about damage to your property, you could lease the property instead of purchasing it - or you could purchase insurance.  If you’re concerned about theft, you could install an alarm system to minimize loss, but you would probably want to purchase insurance as well (the alarm system may afford you a discount).

Business insurance can reduce, mitigate or compensate for exposure to business risks. An insurance agency will do a risk assessment to determine how much insurance you need and what you need to cover, and they’ll do it at no cost.  This assessment might include visiting your business, talking to you about the business or service you provide, reviewing your inventory, and reviewing any procedures to determine all the risks your business could be exposed to. By conducting your own assessment, you can combine your knowledge of your business with your insurance agent’s knowledge of insurance to create the best insurance policy to protect your business. 

Growth is Good, But ..

As your business grows, so do your liabilities!  If you purchase or replace equipment or expanded operations, you should contact your insurance broker to discuss changes in your business and how they can affect your need for expanded insurance coverage. Should disaster strike, you don't want to be caught underinsured.

Getting the Right Business Insurance is Key

For more help creating a risk management assessment and aligning your business insurance needs with your risk, contact American Insuring Group at (800) 947-1270 or (610) 775-3848.

Every home-based business should be protected by commercial insurance. But the growth of the internet and other technological advancements –such as social collaboration tools and communication apps -  have changed the way many of us do business today and significantly influenced the number of small businesses  nationwide.  In addition, the low start-up costs; the reduction in the cost of commuting, meals, and other expenses; the flexibility; and the savings realized from not maintaining a “storefront” are creating more home-based businesses. Sometimes home-based business owners forget that their homeowner's policy is unlikely to cover them for liabilities that can occur in their business.

In 2014, there were 28 million small businesses in operation.  Approximately half of the small businesses today are home-based businesses.   The SBA reports that most of these home-based businesses are operating as sole proprietorships; others are s-corporations and partnerships, and the majority of them are service oriented.

But a home-based business is still a business.  Owners need to understand the financial risks and responsibilities associated with this type of business, including how to protect that enterprise with the right business insurance for businesses run out of the home.  It’s important to understand the differences between personal and commercial insurance liabilities and not assume that your personal insurance policies will always cover your home-based business insurance needs. 

Here are five things every home-based business owner needs to consider protecting with the right business insurance.

1. Home and Property Insurance – Most home owners’ or renters’ insurance policies only cover up to $2,500 for business property losses or damages.  They also tend to exclude business-related liability claims and provide no provisions for any downtime associated with a property loss.  Therefore, if you run your business from home, you may want to consider a business owner’s insurance policy, general liability insurance, business property insurance, and business interruption/continuation insurance.  You may qualify for a homeowners' policy endorsement that modifies your standard policy.
    
2. Auto Insurance – If you own or lease a vehicle almost exclusively used for business – whether it’s a small 10-year-old sedan or a large customized van complete with everything needed to groom a giant Greyhound - make sure your business name is listed as the principal insured. If your business involves transporting people, you should consider commercial vehicle insurance for the higher liability limits and special provisions that are available.
    
3. Life Insurance – If your home-based business is a partnership, you may want to consider Key Person life insurance to ensure the organization’s future.  If one partner dies the other partner (s) can use the life insurance payout to buy out the partner’s heirs, pay off outstanding loans, and continue operations. When considering key person life insurance, be sure to think about staff beyond the business owner. This type of coverage typically focuses on any person without whom the business would cease to exist.
    
4. Health Insurance – Without health insurance, one extended stay in the hospital could mean the end of your business.  Today, it’s much easier for small businesses to acquire health insurance – HMOs, PPOs, EPOs and other group plans.  With the new Affordable Care Act, you may even qualify for a tax credit or subsidy if you purchase coverage through the new healthcare marketplace and failure to purchase health insurance could result in a tax penalty. 
    
5. Income Insurance – Worker’s Compensation insurance and disability insurance isn’t reserved for large companies.  If you have just one employee, many states require that you purchase workers’ compensation insurance to protect your business from claims relating to work-related injuries and to protect the employee’s income.  If your family relies on your income to survive, you should also consider Workers’ Compensation and/or disability for yourself, to ensure that you continue to see an income even if you are injured or become ill and can’t work. 

Getting the Right Business Insurance for Your Home Business

There are also insurance “packages” available -known as Business Owners Policies (BOP) - that usually include property, business interruption, and liability insurance. 

The agents at American Insuring Group can help you determine the best commercial insurance for your home business. Contact us or give us a call at (800) 947-1270 or (610) 775-3848. As independent insurance agents, we're free to shop among many competing insurance companies, so we can find you the best deal on quality business insurance protection. Call or email today to learn more!

Workers Compensation Premium Audits - a necessary evil (some would say) for any employer - determines the final cost of your workers compensation insurance premiums. Sometimes the results of these audits can significantly change your premium compared to the estimated insurance premium originally used in the policy – and not always in a positive way. These audits can be stressful, disruptive and time-consuming for you.

Don’t wait until you receive a notice that you are about to be audited to begin collecting data.  Sometimes you only know a few weeks ahead of time, and you don’t want to scramble around for information, which can cause incorrect, missing or inadequate information. 

Here are a few tips to make a workers comp insurance audit as painless as possible:

Before the Workers Comp Audit:

• Review your original workers compensation insurance policy to see how the initial estimated premium was determined – including classification codes, rates, and payrolls.
• Look at your last audit report to see what information was required and what errors were made.  If this is your first workers comp audit, ask the auditor for a list of documents and information that they will be requesting.
• Review all job descriptions and ensure that the correct NCCI class code descriptions are applied to each job.
• Review all of your payroll records and check that employees are on the correct corporate payroll.  Make sure that any outside contract employees are kept separate from corporate employees and have copies of other insurance provisions for these contracted employees, such as hold harmless agreements or insurance certificates that show the employer as also insured on the contracted employees’ insurance policy.
• If there are unusual situations, such as an unexpected project that required additional over-time, make sure that you understand and are able to explain the situation.
• Place documents and physical evidence in chronological order.
• Ensure that information on your website or any other places a workers compensation insurance auditor would have access to is up-to-date, correct and not misleading
• Secure a private and comfortable room for the auditor(s) and ensure that internet is available in that space.

During the Workers Compensation Insurance Audit:

• Be professional and friendly
• Make sure that the workers comp insurance auditor is comfortable and knows where everything is (coffee, restrooms, photocopiers, etc.)
• Assign a primary contact person from senior management who will act as a liaison between the company and the auditor.   This person should be very familiar with all the work done within each department and by each employee, audit procedures, and the materials prepared for the audit.
• Do not lose your temper.  Be cooperative and answer all questions accurately and to the best of your abilitiy.  Keep your answers short, direct, and to the point.
• Do not invite auditors to lunch or dinner or offer any other items that could be interpreted as a bribe.
• You should have the opportunity to meet with the workers compensation insurance auditor(s) before they leave the premises to go over his or her findings and make corrections if needed.   This wrap-up meeting should be held in a private location.

After the Workers Comp Audit:

If you do not reach an agreement on the published report at the wrap up meeting, immediately prepare a written document along with all the necessary documents to support your position and request that any adverse premium changes be held until the challenge is resolved.  Legal assistance may be required.

Premium audits are a part of being an employer.  In order to see the best results, be prepared and cooperative, and be ready to provide any information the auditor requires. 

Get the Right Workers Compensation Insurance

For more information about premium audits or how to get the best deal on workers compensation insurance, contact an American Insuring Group independent agent at (800) 947-1270 or (610) 775-3848. As independent agents, we're free to find you the best insurance at the best price, selecting from among competing insurance carriers. We serve Phildelphia, Lancaster, Harrisburg, Allentown, Reading, Pittsburgh, Erie, PA and beyond. Call today.

You’re about to become an employer.  Maybe you’ve been in business for a while, but now you’re ready to hire your first employee.  You’re excited; this means your business is growing.  Or, maybe you’re just starting a business and you need employees to help run that business. 

Either way, being an employer comes with many responsibilities, including ensuring that you purchase the right business insurance.  You may be asking yourself, “What insurance is required by law and what is optional?  What’s in the best interest of both my business and my employees?” 

There are four primary types of insurance every employer should take a look at – Workers Compensation Insurance, Unemployment Insurance Tax, Disability Insurance, and Health Insurance.

Workers’ Compensation Insurance

Workers Compensation Insurance coverage ensures medical and wage-loss benefits to employees who are injured on the job. Plus, it helps protect employers against lawsuits filed by injured workers. Worker’s Comp insurance requirements vary by state.  In Pennsylvania, if you employ one or more employees - whether they’re part-time or full-time (including family members) workers’ compensation insurance coverage is mandatory.

If you are a sole proprietor, Workers' compensation insurance is not required by law, which can save you money; however, if you’re ever injured on the job, workers’ compensation insurance can help pay medical bills and supplement lost wages until you’re able to go back to work.

Click here for information about workers compensation insurance requirements in other states.

Unemployment Insurance Tax

Unemployment Insurance (UI) is a joint state and federal program financed through federal and state employer payroll taxes. It provides temporary payments to individuals who are unemployed through no fault of their own.  Each state has its own unemployment insurance program, which includes additional eligibility requirements, but they all follow guidelines established by the federal government.

Most employers must pay federal employer payroll taxes if they pay employee wages of $1,500, or more, in a quarter or if they have at least one employee during 20 weeks in a calendar year.  Most employers are also required to pay state unemployment taxes. In Pennsylvania, all employers providing employment to one or more workers must register Form PA-100 with the Office of UC Tax Services.

Employment that is not covered under the UC law includes the following:

• An individual employed by his or her son, daughter or spouse
• A child under the age of 18 who is employed by his or her parent
• A student in the employ of an organized camp that did not operate more than seven months in the preceding calendar year

Disability Insurance

Some states require that employers provide partial wage replacement insurance coverage to their eligible employees for non-work related sickness or injury. Currently, if your employees are located in any of the following states, you are required to purchase disability insurance:

• California
• Hawaii
• New Jersey
• New York
• Puerto Rico
• Rhode Island

In Pennsylvania, there are two types of disability insurance available if you decide to purchase it for your employees: short-term and long-term.

Again, if you are a sole proprietor, Disability Insurance is not required in Pennsylvania; however, if your family relies on your income, you may want to consider disability insurance for yourself to help pay medical bills and supplement lost wages if you become sick or injured.

Health Insurance

If you have more than 50 employees you are required to provide health insurance benefits to your full-time employees.  If you have more than 50 employees and don’t offer health benefits, you may be subject to a penalty call the shared responsibility payment.  96% of employers in Pennsylvania are exempt from the shared responsibility requirement. 

Contact Us for All Your Business Insurance Needs

If you’re an employer, contact American Insuring Group at (800) 947-1270 or (610) 775-3848 for more information about required and recommended business insurance, including health insurance, disability insurance, workers compensation insurance, or any other insurance your business may need. We've been helping businesses like yours acquire affordable, high-quality insurance for over 25 years.