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Restaurant Insurance can be complicated, but an insurance agent who specializes in restaurant insurance can help guide you through the process. Now, it is also essential that you understand some of the basics in order to make informed decisions.

3 Things to Consider Before Contacting an Insurance Agent

1 – What are You Insuring?

This may sound like a simple question; however, restaurant insurance covers many types of businesses including sports bars, nightclubs, pizzerias, coffee shops, fast food restaurants, upscale restaurants, delis, caterers, food trucks and more.

Each of those establishments has unique needs. For example, a bar selling alcohol may need liquor liability insurance; whereas, a fast food restaurant may not. A food truck has some unique risks that a brick-and-mortar restaurant does not.

An experienced agent will ask you many questions to determine your insurance needs. Taking some time in advance to think about what you are insuring and what your potential risks are helps you provide more accurate information, so your agent can ensure that you get the right coverage.

2 - What Types of Insurance do You Need?

Every restaurant is unique, but here are five basic types of insurance that most restaurants need:

1. Liability Insurance
2. Property Insurance
3. Special Coverage Insurance
4. Workers’ Compensation Insurance
5. Commercial Automobile Insurance

Liability insurance
Liability insurance helps protect your business if someone – a customer, a vendor, etc. - sues you for bodily injury or property damage. This insurance covers legal fees and legal payouts when needed. In addition to general liability insurance, which is recommended for most businesses, there is also liability insurance that applies to specific needs such as liquor liability and product liability. 

Property insurance
Property insurance helps protect the things you own such as buildings, restaurant equipment, and even the food in your freezers. Property Insurance typically covers damage caused by fire, smoke, wind, hail, lightning, theft and more. If you rent a space or have a mortgage on the property, property insurance is usually required by the lender or the property owner.

Special Coverage Insurance
Special Coverage Insurance helps protect items that are special or unique. Specialty Insurance may cover lost income if your restaurant is forced to shut down, equipment breakdowns, employee theft, forgery, and more.

Workers’ Compensation Insurance
Workers’ Compensation (WC) helps protect both you and your employees if they are injured on the job. It covers the injured employee’s medical expenses and lost wages, and it helps protect the restaurant if the employee sues the restaurant. WC is mandated by the government for most restaurants with employees.

Commercial Vehicle Insurance
Commercial Vehicle Insurance helps protect vehicles – trucks, vans, automobiles - owned, leased, or rented by your restaurant. This includes food trucks, vehicles used to deliver food, etc. Typical coverage under commercial vehicle insurance includes bodily injury and property damage liability, personal injury protection, and physical damage to your vehicle. 

3 - What Affects the Cost of Your Insurance Premiums?

Many factors go into determining the cost of your insurance premiums, and different insurance companies place emphasis on different factors, which is why using an independent insurance agency like American Insuring Group is always the best way to go. We check the cost of your insurance with several different companies.

Here are a few factors insurance companies use to determine the cost of your insurance premiums:

• Type of property
• Loss history
• Years in business
• Type of activities (ID checkers, delivery, alcohol service, entertainment, etc.)
• Hours of operation
• Size (property size, payroll, sales, etc.)

Get the Best Price on the Right Insurance for Your Restaurant

American Insuring Group specializes in restaurant insurance. We have relationships with several insurance companies, so we can compare prices to ensure that your business is protected at the lowest price. Give American Insuring Group a call at (800) 947-1270 or (610) 775-3848 or find us online.

It’s vital that any worker injury and subsequent workers compensation insurance claim is handled with care to ensure the well-being of the worker and the business. When it comes to more severe injuries and catastrophic claims, the stakes are even higher.

A catastrophic workers comp claim that is mishandled could end up costing millions of dollars. Proper handling ensures the best outcome for the injured employee and his or her family, the employer, and the payers.

The employer’s first step is to ensure that the injured employee receives the right treatment as quickly as possible. There should be a plan in place to handle any workplace injury including catastrophic injuries. The welfare of the injured employee should be paramount at this point.

3 Things to Keep in Mind:

1 - Show Compassion and Build Trust

Any injury can be scary for an injured employee and their family, but a catastrophic injury carries with it many additional fears and stress factors. The injured employee will likely have thoughts about whether or not they’ll be able to work again, how they’ll support their family, and how will the injury affect the rest of their life.

Meanwhile, in addition to worrying about their injured loved one, family members are likely thinking about how they’re going to pay the medical bills, take care of the injured person when they get home, and how they are going to juggle everything – work, kids, etc.

Someone from the company should visit the injured employee in the hospital. This provides a chance to express concern, get and give information, ensure the employee and family understand the process, get a feel for the employee’s attitude, and discover the extent of the injury and the prognosis.

Try to put yourself in their shoes and understand what they might be going through. It’s essential that you show that you care and that you try to build trust with the employee and his or her family. If you want to have the best outcome and help prevent litigation, show them that you are not the enemy, but that you are working with them toward the same goals.

2 - Determine the Cause of the Accident

It’s always vital to determine the cause of an injury, especially in a severe injury. Did a machine malfunction? Was it a lack of training? Is it a guarding issue? The answer to this question will help determine how the claim is handled.

For example, if the injury was caused by a machine malfunctioning, the employer may seek money through subrogation – pursuing a third-party that caused an insurance loss.

3 - Thoroughly Investigate the Injury

The only way to determine a cause is with a thorough investigation that determines what happened, how, when, where, and why. That includes talking to the injured employee, taking witness statements, reviewing video, and examining the site where the injury occurred.

In the case of a catastrophic workers compensation insurance claim, it’s a good idea to think of the site of the injury as a crime scene. Although crime may not have been committed, it’s essential to preserve the scene to help determine the cause.

All evidence surrounding the accident should be preserved until the investigation is complete. That means roping off the area and keeping employees away. Also, regardless of how gruesome the scene may be, do not attempt to clean it up until the claims adjusters and any other professionals have a chance to examine the area.

The claims adjuster will need to bring in additional experts such as a nurse case manager, medical advisor(s), safety experts, and home health experts.

Bottom Line

Mishandling of any workers’ compensation claim is a problem, and those problems are magnified when it comes to catastrophic claims.

 

Do You Have the Right Workers Comp Insurance Protection?

To learn more about workers compensation insurance, and to make sure you are properly covered, give the experienced independent agents at the American Insuring Group a call at (800) 947-1270 or (610) 775-3848 or find us online. We’ll make sure you’re properly covered, AND we’ll help you get a great price too!

As a business owner, you wear many hats, and sometimes all of the responsibilities can seem overwhelming.

The good news is that you don’t have to be an expert on everything – accounting, marketing, insurance, etc. Finding a trusted professional in many of these areas helps ensure the success of your business… not to mention your sanity.

Your commercial insurance protection is one of those areas. It’s something you need to protect your assets, your employees, and your business, and a good insurance agent can guide you through the process.

 

Here are 8 practical insurance tips for small business owners from the experienced agents at American Insuring Group:

1 - Consider What Assets You Need to Protect

Sit down and make a list of all the assets you want to protect. The obvious assets are buildings, computers, vehicles, furniture, and inventory that you own. But other things to consider are things you lease and customer goods that are in your care.

2 - Don’t Forget Intangibles

Sometimes you need to protect things that are less tangible than buildings and furniture such as your income, your reputation, your customers, and your employees. This is where insurances such as workers’ compensation, key person life insurance, and business interruption come into play 

Then there is the area of liability that has the potential to destroy your business if you don’t protect it adequately. We live in a very litigious society, and your liability can be unlimited, so taking the highest limit you can afford is often the best approach.

The risk is different for every business, but here are some types of liability insurance:

• General liability
• Builders Risk Insurance for contractors
• Inland Marine Insurance
• Errors and Omissions or Professional Liability Insurance
• Liquor Liability Insurance

3 - Identify your Insurance Responsibilities

Sometimes a third party – such as a client, lender, or landlord - may require that you have certain types of insurance. Ask for any insurance requirements from these individuals in writing.

4 - Understand the Difference between Actual Cash Value (ACV) and Replacement Value

On paper, assets depreciate, but often the value of an asset to a business doesn’t change, so you need to understand the difference between actual cash value and replacement value.

For example, let’s say you bought a truck for $50,000 to deliver your product. Each year, the value of that truck will depreciate. After five or ten years, that truck would be worth a lot less than $50,000. 

However, if that truck is totaled in an accident five or ten years later, you are going to need to replace it, so you can continue to deliver your product. If you’ve insured the vehicle at the depreciated value, you may not be able to replace it. The value of that truck to your business (getting the product to your customers) is much higher than the depreciated value of the truck.

To avoid this problem, insure your assets for what it would cost you to replace it – replacement cost.

5 - Look for Ways to Save Money without Affecting Coverage

One of the simplest ways to save money on insurance is to increase your deductibles. Just make sure that you have the available cash to pay the higher deductible if you have to make a claim.

Check if you qualify for a business-owners policy, which offers discounts and often includes additional coverage. Ask about an umbrella policy if you think you need higher liability limits.

Work with an independent agent who can check the rates with several different insurance companies rather than being locked into just one. 

6 - Find an Experienced, Professional Insurance Agent

Find an agent that specializes in your industry – such as commercial insurance, truck insurance, and contractors insurance. Look for agents that are willing to talk to you about your concerns and answer your questions.  Look for professional credentials such as CPCU, CIC, or CLU.

7 - Get Everything in Writing

When looking for the best insurance coverage for your business, ask for a written proposal and consider alternatives. Take the time to carefully read your insurance policy looking at conditions, exclusions, and limitations of your policy to ensure that there aren’t any gaps, and ask your agent questions.

8 - Review Your Policy Annually

Things change – you buy a new truck, you sell an asset, etc., so it’s vital that you review your policy regularly to ensure that you continue to have the right coverage at the best price.

 

The Best Tip of All – Let Us Help You Get Properly Covered!

As a business owner or manager, you have enough to worry about – employees, sales, and the list goes on.

Turn to the experienced independent agents at American Insuring Group to help you navigate the process. We'll work with you to ensure that you have the right coverage at the best price because as independents we’re free to shop competing providers (unlike those single-brand competitors of ours!).

So call us at (800) 947-1270 or (610) 775-3848 or find us online.

Have you checked your restaurant insurance policy to see if your signage is covered?

What is one of the things almost every restaurant needs to attract new customers – besides great food and friendly service? The answer: a sign! You need to let people know where you are so that they can find you. Signage can even help someone discover your existence when driving by.

But what happens if that sign is damaged? What if a truck knocks it over, it gets vandalized, or it’s struck by lightning? You will need to repair or replace the sign if you want to continue attracting customers. Will your insurance cover the cost of repairing or replacing that sign? The answer: maybe.

You have a lot of things on your plate as a restaurant owner – menus, pricing, advertising, and the list goes on – so it’s easy to forget about some of the seemingly small things. An experienced insurance agent – one who specializes in restaurant insurance – can help make sure you don’t miss any of those “small” things!

Covered or Not?

Getting back to our question and the resulting ambiguous answer – “maybe.” You need to know the definitive answer to that question – “Will your insurance cover the cost of repairing or replacing that sign?” - BEFORE something happens to it.

Each policy is different, and rules can vary from state to state, but generally speaking, if your sign is permanently attached to a building that you own, you can add the value of the sign to the building coverage on your Business Owner’s Policy (BOP).

However, a large number of restaurant owners lease the building for their restaurant rather than own the building. Those business owners need to look at other options.

Tenant’s Betterment and Improvements Insurance

The International Risk Management Institute (IRMI) defines tenant’s betterment and improvements as “permanent additions or changes made to a building by a lessee at his or her own expense that may not legally be removed.” This includes additions or modifications the lessee makes that increase the value of the structure such as upgraded cabling for computers or TVs, lighting fixtures, wall-to-wall carpeting, and signs that are attached to the building.

If these improvements were to be damaged or destroyed and are no longer useable, it would be detrimental to your restaurant.

There is insurance available to cover betterments and improvements. Sometimes the property owner will add it to their commercial property insurance; however, they can also ask that it is excluded from their policy. Therefore, it’s vital that you carefully review your lease to determine who is responsible for covering any damage to the improvements you make.

You may find an insurance company that wants to add your improvements and betterments coverage to your contents coverage. Keep in mind the rate for building coverage is usually lower than it is for content coverage and often broader in the scope of what is covered. 

Insurance for Freestanding Signs 

What if you have a sign for your restaurant that is not attached to the building? In that case, you will need specific protection added to your BOP to cover any damage to the sign. And if you have more than one free-standing sign, each one needs to be listed on your policy along with a specific limit of coverage for each.

We’ll Make Sure You’re Covered for the Big and Little Things!

Sometimes it’s the “little” things that end up costing your restaurant a lot of money. As restaurant insurance specialists, American Insuring Group’s independent agents can make sure you don’t miss any of the “little” things, not to mention the big things as well! We’ll help you get great coverage at a surprisingly affordable rate.

Give us a call at (800) 947-1270 or (610) 775-3848 or contact us online.

Imagine trying to complete a major construction project without the use of heavy equipment like cranes and backhoes. You probably can’t. Almost every construction site includes at least a few pieces of heavy equipment to help complete the job.

Heavy equipment is one of the biggest hazards for construction workers and it causes hundreds of injuries and deaths every year, thereby increasing contractor insurance costs and affecting employee productivity and morale.

A Leading Cause of Fatalities

According to the Work Safe Center, “machine-related injuries ranked second after motor vehicle-related injuries among the leading causes of occupational injury fatalities.” Construction workers and heavy equipment operators accounted for 63% of heavy equipment and truck-related deaths. Half the deaths involved backhoes and trucks.

Rollovers accounted for the most deaths for heavy equipment operators. The most significant cause of death for workers on foot and maintenance workers is being struck by heavy equipment or trucks. Being caught in or between was also a common cause of injuries for people working on or near heavy equipment.

3 Tips to Help You Focus on Safety

A focus on worksite safety can help protect your employees, your business, and your bottom line. Here are three heavy equipment safety tips to decrease injuries and deaths and decrease insurance costs.

1 - Training

OSHA requires that anyone operating heavy equipment be thoroughly trained on how to properly and safely operate heavy equipment. This training should be a combination of hands-on and classroom instruction and should include how to identify hazards, safety features on the equipment, load capacity, how to get in and out of equipment safely, and how to safely maneuver the equipment.

And training should be ongoing.

2 - Awareness

Unfortunately, the very prevalence of heavy equipment on job sites often causes workers to become complacent, but it’s crucial that anyone operating or working around heavy equipment be mindful of what is going on around them. That includes overhead power lines (which should be deenergized if possible) and underground sewer, water, gas, and electric.

Heavy equipment operators should be aware of the swing radius of the equipment they’re operating to avoid hitting people and other equipment, especially when working in tight spaces.

Whenever possible, the area where heavy equipment is being used should be cordoned off, and workers should always try to stay away from areas where heavy equipment is being operated. If that isn’t possible, use a spotter and a radio to keep blind spots clear.

3 - Use Equipment Properly

Before operating any heavy equipment, workers should visually inspect the equipment to make sure it is in good operating condition including tires and tracks, fluid levels, hydraulic hoses, buckets, booms, and any attachments. Make sure lights, gauges, horns, and alarms are working, and that arms, buckets, shovels, etc. can fully extend. If the cab rotates, make sure it does so correctly in all directions. Workers should never use equipment that doesn’t operate correctly or appears to be damaged.

Equipment should only be used for the task it was designed for, and operators should be aware of the payload and lift capacity of the equipment and not overwork it.

Workers should know how to enter and exit equipment. Similar to climbing a ladder, operators should not carry anything as they climb onto equipment and should maintain three points of contact. Before entering or exiting equipment, make sure it is completely shut off, the parking brake is engaged, and pressure is released from hydraulic controls. Workers should never enter or exit equipment while it is in operation or while it is moving.

And finally, there is a reason the equipment is equipped with a seatbelt. If a piece of heavy equipment tips or rolls over, the seatbelt could save a life. One of the worst things a worker can do if the equipment begins to tip or rollover is to jump out of it even though that may be their first instinct. Staying inside with your seatbelt on is your safest option.

The Right Insurance – Your Last Line of Defense

Preventing workplace injuries and deaths should always be your first line of defense. Unfortunately, sometimes despite all of your efforts, accidents do happen. That’s where the right insurance can help protect you and your employees!

Give American Insuring Group a call at (800) 947-1270 or (610) 775-3848 or find us online.

We’re experts in contractor insurance. We know the risks you face and offer affordable rates on contractor insurance by analyzing the plans and comparing insurance costs from many competing insurance carriers!

The result? You get quality contactor insurance at the best rate possible. Contact us today to learn more!

Open flames, cooking oils, cleaning chemicals, and paper products are the perfect ingredients for a fire, and all are found in most restaurants. So, it’s no surprise that fire companies respond to more than 8,000 structure fires at restaurants and bars each year, according to the National Fire Protection Association.

A fire in your restaurant can cause lost revenues, injuries, death, higher restaurant insurance premiums, lawsuits, and even the end of your business, which is why it’s essential that you and your staff understand fire risks and do everything possible to prevent fires.

The right insurance can help pay for damages caused by a fire, but preventing fires should always be your first line of defense.

The Main Fire Risks in Restaurants

Cooking

It’s no surprise that cooking is the leading cause of restaurant fires, accounting for 64 percent of all restaurant fires according to the US Fire Administration (USFA). When flames get into the kitchen’s ductwork, exhaust systems, vents, and fans – all of which are prone to grease buildup – fire can quickly spread.

Heating and Electrical Malfunction

The deadliest restaurant fire in US history was at the MGM Grand Hotel and Casino in Nevada in 1980. A result of an electrical ground fault, the fire killed 85 people. According to the USFA, seven percent of all restaurant fires are caused by heating and electrical malfunctions.

Unsafe wiring, switches, plugs, or sockets projecting heat onto a flammable or combustible material cause these fires. Often, outdated wiring is not able to handle the voltage used by today’s appliances. Commercial kitchen equipment is certified by NSF International; however, most smaller equipment purchased at retail stores is not certified and can be a hazard when used in commercial kitchens.

Gas leaks and the resulting explosions are often the most devastating fires. Thankfully, this type of occurrence is uncommon but can occur when older or neglected equipment isn’t able to support the flow of gas. Gas is released into the air and can be ignited by turning on an electrical device or lighting a match.

Other Fire Risks

Other causes of restaurant fires include unintentional, careless actions (4 percent), appliances (4 percent), other heat (3 percent), and several other categories, according to the USFA reports.

4 Restaurant Fire Prevention Tips

1 - Employee Training

• Your workers should be trained in fire prevention methods and the importance of proper cleaning.

• Workers should know not to use water to try to put out a grease fire because it can cause the grease to splatter and spread the fire.
• Employees should be trained on how to use a fire extinguisher. The National Restaurant Association suggests using the acronym PAST – pull out the Pin, Aim at the base, make a Sweeping motion, and be Ten feet away.
• Employees should know how to properly store flammable liquids – kept in original containers or puncture-resistant tightly sealed containers stored in well-ventilated areas.

2 - Regular Maintenance

• Fire-suppression systems should be professionally inspected twice a year.
• The pressure gauge on portable fire extinguishers should be checked monthly to be sure that the extinguisher is holding pressure and inspected and certified annually.
• Electrical equipment should have regular maintenance and regularly checked for frayed cords and cracked or broken switch plates.
• Exhaust systems should be inspected for grease buildup. In high-volume operations, the NFPA requires quarterly inspections and semi-annual inspections for moderate-volume operations.

3 - Installation of an Automatic Fire-Suppression System

Fire-suppression systems, which are built into stoves or oven hoods, have sensors that can detect a fire and automatically release a chemical to put out a fire and shut down the fuel or electric supply to cooking equipment. Installing a fire suppression system can sometimes lower your insurance premiums.

4 - Portable Fire Extinguishers

You should also keep portable fire extinguishers handy as a backup. Class K extinguishers are used for kitchen fires that involve grease, fats, and oils that burn at a high temperature. Class ABC extinguishers can be used on all other fires such as paper, wood, electrical, etc.

Benjamin Franklin said, “An ounce of prevention is worth a pound of cure.” Understanding fire risks in your restaurant and taking steps to prevent them will help keep your employees, your customers, and your business safe.

Get the Right Insurance for Your Restaurant, Bar or Nightclub

If these measures fail, having the right insurance can help repair the damage.

But don’t overpay for restaurant insurance. Give the independent agents at American Insuring Group a call at (800) 947-1270 or (610) 775-3848 or contact us online. We’ll search competing insurance companies to find affordable restaurant insurance that will properly protect your business.

Don’t delay – call the experts at American Insuring Group today!

When you ride the Tube (aka the subway) in London, you’ll probably hear “mind the gap!” as you board your train.

“Mind the gap” is a warning to rail passengers to be careful when crossing the gap between the station platform and the train door. If you don’t “mind the gap,” you could fall between the train and the platform and cause serious injury.

“Mind the gap” is also good advice when discussing insurance for contractors! There are lots of moving parts with every construction project – from multiple subcontractors to heavy equipment and power tools. Each of those parts pose different types of risk, and if you don’t have the right insurance to protect you from those risks, you’ll have gaps in coverage that could cause serious injury to your bottom line.

Here are 3 coverages that often create insurance gaps for uninformed contractors:

#1 - Aggregate Coverage

There are two types of aggregate endorsements a contractor can purchase: a per policy and a per project aggregate. A per policy aggregate sets the total amount an insurer will pay for all of your claims during your policy’s term whether you have ten projects or 100 projects during that time.

A per project aggregate ensures that you have equal coverage on a per project or per location basis, which could significantly increase the amount the policy could pay.

Some insurance companies automatically add a per project endorsement to a contractors’ commercial liability policy, but some don’t. If you don’t clarify this from the start, you may not be comparing apples to apples thinking one insurance quote is a real deal when in fact it could leave you with a gap in your insurance. 

#2 - Professional Liability Coverage

There are two basic types of liability coverage contractors may need- general liability and professional liability. Commercial General Liability (CGL) insurance usually covers liability claims for property damage and bodily injury. It helps cover legal fees in the event of a lawsuit against your company and is required by most banks and clients.

However, not every insurance claim is the result of an accident or injury. As projects continue to get more complicated and the line between the design firm and contractor become more blurred, contractors may find unexpected gaps in their liability coverage. A contractor who finds himself in a lawsuit claiming negligence, misrepresentation, defective materials, or faulty recommendations may not be covered by CGL.

Professional liability coverage (aka errors and omissions) goes beyond standard liability and covers liability for professional services such as engineering, design, and construction management operations.

#3 - Subcontractor Coverage

Many contractors work with subcontractors. If you’re one of them, you need to ensure that you have two documents from every subcontractor you work with upfront to protect your business from damage caused by those third parties: a certificate of insurance that lists you as an “additional insured” and a signed “hold harmless” agreement.

You will need to list all subcontractors that you work with and document third-party certificates with your insurance carrier, and if that carrier finds a subcontractor that is not insured, you could end up paying a much higher rate, open you up to workers’ compensation costs, and force you to take responsibility for claims that aren’t your fault.

 

Avoid the Gaps – Get the Right Construction and Contractor Insurance!

An insurance company that specializes in contractor and construction insurance– like American Insuring Group –we’ll work to eliminate the gaps in your coverage. We know what questions to ask you and what gaps “to mind.” 

So, give us a call at (800) 947-1270 or (610) 775-3848 or check us out online. Our experienced independent agents will not only help you mind the gaps but also help ensure you get the best prices because we search, compare and analyze policies and pricing among many competing providers.

Call or click today to start saving!

The majority of employees are honest, and the majority of workers compensation insurance claims are legitimate.

Unfortunately, there is a small group of people who commit workers compensation fraud, and they cost companies billions of dollars every year in rising insurance premiums, production delays, and training costs. 

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What is EMPLOYEE Workers Comp Insurance Fraud?

Workers Compensation fraud occurs when a WC claim is filed that is not entirely truthful to get money or extended time off. Fraudulent claims include faking or exaggerating an injury, claiming an injury that occurred off the job, or claiming an old injury that didn’t heal.

Workers comp fraud is a serious crime, and one of the fastest growing types of insurance fraud in the U.S. Estimates place the cost of WC fraud to companies at $6 to $7 billion every year.

The good news is that there are steps you can take to minimize WC fraud by both employees and providers.

One of the first steps is to recognize common warning signs.

 

13 Warning Signs of EMPLOYEE Workers Comp Fraud

Protect your business from WC insurance fraud by recognizing the warning signs of fraudulent claims:

1. No witnesses
2. An injured employee refusing treatment
3. Delayed reporting of injury
4. Conflicting or inconsistent report of the incident
5. An employee with a history of making WC claims
6. An employee with a history of frequently changing addresses, jobs, or physicians
7. Suspicious medical providers or legal consultants
8. An injury that occurs just before or after a weekend or holiday
9. An injury that occurs right before or after job termination, layoff, end of seasonal work, a strike, or the end of a project
10. An injured employee working a side job
11. An injured employee doing activities that would not be possible with the claimed injury
12. An injured employee who is difficult to get in touch with
13. An injured employee who hires an attorney and tries to get a quick settlement

Never accuse an employee of fraud. If you see two or more of these warning signs, notify your insurance company immediately, but remember these are just potential signs that there could be an issue. It doesn’t mean that every workplace injury that occurs with no witnesses is fraudulent or that every injured employee who is hard to get in touch with is lying. They are just indicators that there may be a problem. 

How to Minimize Employee WC Fraud

• Follow a screening process for all new employees by conducting thorough background checks of all applicants, contacting references, and watching for red flags such as a spotty work record or a criminal record
• Create clear WC policies and establish a zero-tolerance policy on WC fraud
• Clearly communicate these policies with new hires and provide WC fraud training
• Create a culture of safety to reduce opportunities for fraudulent claims
• Install video surveillance
• Consider establishing ways that employees can report suspicious or fraudulent claims anonymously
• If you suspect fraud, notify your insurance carrier immediately and provide supporting documentation.

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What is PROVIDER Workers Comp Insurance Fraud?

Unfortunately, it isn’t just employees who commit WC fraud; providers of WC benefits such as medical and legal professionals sometimes take advantage of WC programs with unnecessary billing, fake clinics, kickback schemes, and inflated worker injuries or service costs

8 Warning Signs of Provider WC Fraud

1. Billing for services never received
2. Billing for equipment never used
3. Billing for treatment that was never performed
4. Duplicate billing
5. Higher than usual bills for services performed
6. Billing for procedures that don’t make sense for the reported injury
7. Increasing visits
8. Ongoing medical services that don’t improve injury

WC fraud can cause a ripple effect that touches everyone. Fraudulent claims create additional costs for insurance companies, which can turn into higher insurance premiums for employers. Increasing business costs can cause an increase in prices customers pay, a decrease in employee benefits, or even job cuts.

 

How to Get a Great Deal on Workers Comp Insurance

To learn more about preventing and recognizing WC Fraud and ways to save on Workers’ Compensation Insurance, contact the WC specialists at American Insuring Group at (800) 947-1270 or (610) 775-3848 or find us online.

Our Trusted Choice independent agents will work hard to analyze and compare plans from competing WC insurance carriers, so you’ll get the best price on quality protection.

Call or click today to get started!

A few weeks ago we began discussing the Occupational Safety and Health Administration’s (OSHA) Fatal Four. These are four safety hazards that account for the majority of all construction worker deaths.

Understanding how to recognize and prevent these hazards can save lives, improve employee morale, and help reduce your contractor insurance costs 

Again, the Fatal Four include the following hazards (statistics are from 2016).

• Falls accounted for 38.7% of deaths
• Being struck by an object accounted for 9.4%
• Electrocutions accounted for 8.3%
• Caught-in/between accounted for 7.3%

We covered caught-in/between hazardsand electrical hazardsin previous blogs. Today our focus is on the second highest cause of fatalities (9.4%) among construction workers – struck-by hazards.

What are Struck-By Hazards?

There are a lot of moving parts at a construction site and many hazards that can cause struck-by injuries. When a worker comes into forcible contact with an object that is flying, falling, swinging, or rolling, a struck-by injury can occur.

The four most common causes of struck-by hazards in the construction industry are flying objects, falling objects, swinging objects, and rolling objects.

Prevention:

Your first line of defense against this type of injury is being aware of your surroundings and using hard hats and personal protective equipment (PPE).

Hard hats should be worn on job sites at all times. They should be properly adjusted to sit firmly and securely on the head, and they should be inspected regularly for cracks, gouges, dents, and other damage. Exposure to sunlight and cleaning solvents can damage or weaken a hard hat, so they should be cleaned with mild soap and stored out of direct sunlight. 

If a hard hat is damaged or worn out, replace it immediately. It’s much cheaper to replace a hard hat than it is an employee.

Employees should also be equipped with additional PPE where appropriate. PPE that can protect against struck-by injuries may include safety glasses, face shields, and steel-toed boots. All PPE should meet American National Standards Institute standards, and all should be inspected regularly and replaced when damaged or worn out.

Here are preventative measures for each of the most common types of struck-by hazards.

Stuck-by Hazard 1: Flying Objects

Nail gun discharge accidents are the most common cause of flying-object injuries. However, thrown debris or tools, a tip flying off a saw blade, or any other object that is flying around the work site can also cause injuries.

Prevention:

Employees should stay clear of the line of sight when a nail gun is being used. And because nail guns create enough force to penetrate plywood and sheetrock, employees should also be aware if a nail gun is being used in an adjacent room. Check out “Nail gun Safety and Workers Compensation” for more information about nail gun safety.

Additional safety measures include regular inspection of all power tools, the use of protective guards, and wearing safety glasses, face shields, or goggles when working with power tools.

Stuck-by Hazard 2: Falling Objects

This type of injury can be caused by falling tools or materials falling off edges or suspended from a crane.

Prevention:

Areas, where work is being performed overhead, should be cordoned off, so employees avoid those areas. Employees who are working overhead should use toeboards, screens, debris nets, and catch platforms to keep tools and materials from falling 

Employees should also be aware of suspended loads and never walk or position themselves under those loads.

Stuck-by Hazard 3: Swinging Objects

Sometimes materials that are being mechanically lifted can begin to sway and can strike a nearby worker.

Prevention:

Employees should be aware when a load is being moved and avoid the swing radius of that load. Workers should also make sure they aren’t in a blind-spot of the heavy equipment operator.

Stuck-by Hazard 4: Rolling Objects

Moving vehicles or heavy equipment usually causes this type of injury, but it can also be caused by objects that roll, move, or slide into an employee.

Prevention:     

First, heavy equipment operators should be adequately trained in how to operate the machinery safely. Second, other employees should be aware of where heavy equipment is being operated and understand where the operators have limited or no visibility.

Contact Us and Get Ready to Save on Contractor Insurance!

These preventative measures can significantly reduce worksite injuries and death, which can lead to lower contractors’ insurance premiums. Another way to lower your contractor insurance costs is to contact American Insuring Group at (800) 947-1270 or (610) 775-3848 or connect with us online. 

As independent agents, we always compare the cost of your construction insurance among competing insurance companies to make sure that you’re getting the right coverage at the very best price!

In Pennsylvania, most employers are required by law to have Workers Compensation (WC) insurance. According to the Department of Labor & Industry, “Employers who do not have workers' compensation coverage may be subject to lawsuits by employees and to criminal prosecution by the Commonwealth.”

Workers compensation insurance is designed to protect both employees and employers. If an employee is injured on the job, WC helps pay for medical costs and lost wages. If an injured employee sues their employer, WC helps pay for legal fees and any resulting financial settlements.

The good news is that there are steps you can take to lower your WC premiums without losing the protection that it provides. 

How is Your Workers Comp Insurance Premium Calculated?

There is a simple formula that determines how much you pay for WC. You can control some things within that formula, and others you can’t, so it’s important to understand the formula before you can understand how to lower your premium costs. Let’s take a look at the formula and break it down.

RATE X (PAYROLL/100) X EXPERIENCE MODIFIER = Premium

RATE

This is one of the parts of the formula that you have little control over. The RATE for each employee is based on his or her classification code. An employee’s WC classification is determined by what duties the employee performs or “the scope of work performed” and how dangerous his or her job is along with what state they work in. There are over 700 different classification codes.

If an employee is a tree trimmer, their classification code is 106 with a rate of $22.91 in Pennsylvania. An employee with a job that isn’t as hazardous and where he is less likely to incur an injury, such as a clerical office employee (classification code 8810) has a rate of $.34 in Pennsylvania. If you plug each of those numbers into the formula, you can see how different your premium rate will be.

The only thing you can do about the classification code is to make sure that every employee is classified correctly, so, for example, make sure that a clerical worker isn’t accidentally given a tree trimmer classification code. On the other hand, if you assign a clerical classification code to a tree trimmer, you could face a sizable additional premium at your year-end audit.

Assigning the correct classification code isn’t as easy as it sounds, and it’s where an experienced insurance agent who specializes in workers compensation is crucial.

PAYROLL

Your payroll is what it is, and there isn’t anything you can do about it in the WC premium calculation except to make sure that the projected payroll used in the formula is accurate. If you think it’s too high, don’t wait for an audit. Ask your insurer to adjust your payroll number.

EXPERIENCE MODIFIER

This is where you can really make a difference in your workers’ compensation insurance premiums. The experience modifier is a score your individual company receives based on your company’s loss history compared to the average for your industry.

A score of 1.00 is assigned if your loss history is average. If you’ve had a lot more injuries and WC claims than your industry average, your experience modifier will be higher than 1.00. If you have fewer injuries and claims, your score will be lower. 

Try plugging different numbers into that formula, and again, you can see just how much your experience modifier score can affect the cost of your premium. If you can lower your modifier, you can reduce your premiums. The best way to do that is to create a safer working environment for your employees, so there are fewer injuries and fewer claims. This is the reason that we focus so much on safety in this blog.

 

We Specialize in Workers Comp Insurance, so Contact Us for Help

American Insuring Group specializes in Workers’ Compensation insurance, and our independent agents will make sure that you get the best possible price on quality workers comp insurance.

How? We diligently compare competing rates among many insurance carriers, and then come back to you with the best deal on the insurance that meets the unique needs of your business.

So call us today at (800) 947-1270 or (610) 775-3848 or connect with us online.