The 2020 Atlantic hurricane season has begun (June 1st to November 30th, 2020). Now is the time to create or update a disaster plan in preparation for severe storms and hurricanes. The following links include various resources from government agencies, our advice for protecting life and property, and additional insurance related advice for the hurricane season.

FEMA hurricane season guides for everyone and for businesses

• For individuals: How to Prepare for a Hurricane (13 MB)
• For businesses: Hurricane Toolkit (6 MB)

Getting ready, forming a hurricane plan, and what to do in the event of a storm

Below are links to articles which I’ve written that provide further guidance for the storm season.

• A Plan for Before & After the Storm (also contains a list of insurance carrier claims phone numbers)
• Preparing Property for a Storm
• Should I Stay or Should I Go?

Ready.gov/hurricanes

More resources provided by Ready, a National public service campaign, can all be found at https://www.ready.gov/hurricanes which has been updated with additional helpful information due to the Coronavirus.

At its heart insurance is simply the transfer of risk for a premium.

An insurance policy is a contract of indemnity which means an obligation by a person (indemnitor) to provide compensation for a particular loss suffered by another person (indemnitee). Indemnities form the basis of many insurance contracts; for example, a car owner may purchase different kinds of insurance as an indemnity for various kinds of loss arising from operation of the car, such as damage to the car itself or medical expenses following an accident. In an agency context, a principal may be obligated to indemnify their agent for liabilities incurred while carrying out responsibilities under the relationship. While the events giving rise to an indemnity may be specified by contract, the actions that must be taken to compensate the injured party are largely unpredictable and the maximum compensation is often expressly limited. The question is, how does the academic definition of insurance translate into the real world?

The true essence of insurance is claims handling.

One of the common covered perils under a property policy, such as homeowners insurance, is theft. A theft is evidenced by forcible signs of entry or exit from the location in which the loss occurred. This evidence can include things such as a broken window, a pried open door, or scratches or marks on a window or door frame where a thief attempted either entry or exit from a location. If these physical signs are not present then a loss may be categorized as mysterious disappearance.

Where a property policy typically provides coverage for theft it does not insure against mysterious disappearance.

Personal inland marine as well as commercial inland marine type policies which specifically schedule or provide blanket coverage to objects generally do grant coverage for mysterious disappearance. Property which is scheduled on a personal inland marine floater generally include jewelry, fine arts, silverware, furs and other items which usually increase in value over time. The mechanism by which an insured or insurer agree to the value of these objects is an appraisal which typically must be updated every two to three years. Commercial inland marine policies which are designed for items that are in motion such as contractor’s equipment, tools and other mobile machinery are scheduled and a value assigned so that a loss may be properly covered.

These are the types of nuances in coverage that we at Rolfs Insurance Services strive to explain and educate our clients to be sensitive to.

Open communications and conversations where we get to know our clients’ needs are key to developing a proper plan of insurance in order to provide correct coverage. Please do not hesitate to give us a call or send an email with respect to this or any other issue where you may have a question. If you have any family, friends or other acquaintances that may need assistance with any insurance question we would be happy to provide assistance.

The application for insurance is a transfer of information from a prospective insured to an insurance carrier. The representations made by the person seeking insurance are considered by the insurer in determining whether or not an offer of coverage will be extended and if it is, what premium will be assessed. The information contained on the application document forms the basis of the policy/contract which comes into play at the time of a loss. Essentially, the application paints the picture of a risk which is reviewed by an insurance company which offers coverage and charges premium for the exposure revealed in the document.

An application is divided into several sections.

General information is requested such as the name of the insured as well as mailing and physical address of the risk along with contact information including phone number, email address and alternative contact numbers. The real meat and potatoes of the underwriting begins with the description of the risk wherein it is classified in terms of acceptability to an insurer. Typically, the next section of questions deals with the rating basis wherein the level of exposure for the risk is determined. For instance, service businesses are typically rated based on payroll whereas manufacturing or distribution businesses are typically rated based on gross annual revenues.

The role of the agent is to assist the applicant in completing the application.

Often times the agent will ask the questions of the prospective insured and fill in the answers based on the responses. Applications for certain lines of insurance, such as professional liability, are commonly completed by the applicant themselves as the questions are nuanced and germane to that individual’s specific field of expertise. The bottom line is that the person signing the application bears the responsibility of reading the document thoroughly and making sure that all of the information disclosed is accurate. At Rolfs Insurance Services we try to make this process as fluid as possible. Reviewing the questions and discussing their significance with our clients allows for the development of a relationship and understanding which creates the foundation for a trusting relationship.

Workers Compensation Costs Can Be Managed by Following These Simple Rules

Every employer can take these 8 simple steps to help control their costs related to workers’ compensation insurance.

1. Hire the best person for the job

Take time to find the right employee for your workplace. Use tools like employment applications, reference checks, drug screens, motor vehicle records checks and background checks.

2. Establish a safety program

Develop policies, procedures and rules. Provide your employees with the necessary training, proper tools and personal protective equipment to do their job safely.

3. Enforce safety rules

It is not enough to train employees and provide them with the proper tools. Routinely remind employees to work safely through the use of workplace audits, safety meetings, toolbox talks, annual training, etc.

4. Provide immediate medical care

Have pre-arranged medical facilities for your employees to go to in the event of a workplace injury. Be prepared to provide transportation for non-emergency injuries. For emergencies call 911. Always require a post-accident drug test to be administered.

5. Report all injuries immediately

All injuries should be reported to FCBI within 24 hours of the occurrence. Ongoing communications with your injured employee and the claims adjuster is extremely important.

6. Investigate all accidents and near misses

Review the accident to find out what happened and take necessary steps to make sure it does not occur again.

7. Provide Light Duty employment

Once an employee is released to return to work, regardless of what capacity, be prepared to offer light duty.

8. Certificates of insurance

Never allow another company to work for you unless they have provided you with a valid certification for Workers’ Compensation insurance.

Get a quote for workers compensation insurance, or contact us for more information regarding workers compensation insurance and the associated insurance costs pertaining to specific business operations.