Insurance Incorporated

The Department of Industrial Relations (DIR) declared Mainstay Business Solutions to be in default for failing to pay its self insured workers comp claims.  The (DIR) has revoked Mainstay Business Solutions Certificate to Self Insure effective April 18th.  The permissably, self insured professional employer organization (PEO) was essentially shut down by the Employment Development Department earlier this month in a dispute over employment taxes.  The dispute revolves around $16.4 million that EDD claims Mainstay owes for unemployment taxes, interest and penalties. Mainstay disputed that amount, but admitted earlier through its outside public relations counsel that it does owe the state millions.

All assets and liabilities of Mainstay Business Solutions have been ordered to be turned over to the Self-Insurer’s Security Fund who will begin paying claims by no later thant 30 days.

Employers that rely upon Mainstay may find themselves scrambling to replace workers compensation coverage and revise their employment and payroll structure. Employers should be cautious when selecting a Workers Compensation carrier and verify the financial status of the carrier or PEO prior to choosing a policy or plan.

Insurance Incorporated recently added Metlife to our portfolio of carriers. Giving their auto, home and life insurance customers more carriers to choose from. This allows Insurance Incorported to provide their clients with some of the lowest rates for insurance while providing them with the broadest choice of coverage. We save our customers time by shopping their insurance with over 15 different carriers assuring they are paying the most competitive rates.  Why not give us a try! Log onto www.insuranceinc.com

Insurance Incorporated is pleased to announce it’s newest location in the city of Fillmore , CA. The new office will be located at 421 Central Ave Fillmore, CA 93015. Phone number is 877-893-3236. Ask for Bill Steiger

When applying for business insurance of any type it is extremely important that you provide not only the legal name of your business, but any d.b.a.’s (Doing Business As). Why you ask? Because if  a lawsuit is filed against a name that is not listed on the policy you may find yourself without coverage. This includes sole proprietorships and partnerships. Make sure all parties on a sole proprietorship (spouses) or, partnership are listed on the policy. The cost to include the extra names is usually nothing as long as the names do not pertain to a different set of operations.

According to the Insurance Services Office and Insurance Informaton Institute, 3 states make up a 1/3 of the sum of all catatrophic losses since 1980! Check out this chart for a visual conception:

Maybe more can be done directed towards these THREE states? These losses are driven mainly by hurricanes. However, with the amount of earthquake activity in California, these numbers may soon change.

Its already covered.

Even the best homeowners policy may be limited in the protection of your valuables.  Generally homeowners policies have limits of $1,000 – $2,000 maximum on jewelry and coverage is limited.  A personal articles or jewelry policy provides broader coverage for theft, mysterious disapperance or damaged and offer higher limits of insurance.

It’s too expensive

Standard coverage for jewelry worn regularly costs one to two percent of the items appraised value. If you typically keep it in a bank vault the rates are considerably less, about one third the cost.  You are only charged the higher rate when you take your jewelry out of the vault.

It’s too much work

The prospect of obtaining appraisals for all your jewelry can seem daunting. Some carriers only require appraisals on items valued at $50,000 or more. A good description  and estimated value may suffice.

My Jewelry isn’t vulnerable.

Perhaps you have taken extra efforts to protect your jewelry, including the installation of a home security system and periodic maintenance with a professional jeweler. But there is still risk. Every year, nearly $1 Billion of jewelry disappears in the United States, according to the U.S. Dept. of Justice. By itemizing your jewelry with a personal articles policy you don’t have to worry about an accidental loss, chipped or stolen item since a personal articles policy covers these perils. A Homeowners policy may not cover mysterious disappearance or damage.

For more information or a quote on jewelry, fine arts, musical instruments or stamp and coin collection contact our office at 877-898-9333 or log into www.insuranceinc.com for more information

Having a safer workplace can have a siginicant impact on your employee productivity, but most importantly, your costs. When practicing a safe work environment, it could help control the cost of workers comepensation. When there are fewer losses and claims, it ultimately leads to a lower experience modifcation, or ex-mod, which could save you a ton of money! For example, another business in the same category, or class code, as you could be paying more or less depending on the ex-mod. It could be either a credit or a debit (Ex. 1.20 or .80) which is multiplied by the total premium on the policy.

Here are some tips for you to help create a safe work environment:

1. Define Measureable Program Objectives

Align all executives with key program metrics such as frequency and severity reduction, while requiring unilateral commitment to the safety program.

2. Provide Appropriate Employee Training

Initiate formal training at the top of the organization before filtering it down to the front line employee level.

3. Determine Roles & Responsibilities

While training remains on-going, assign specific safety enforcement tasks to each level of management including senior executives, managers and supervisors.

4. Enforce and Reward Program Performance

Require constant and consistent enforcement of safety rules, while incorporating performance of these tasks into formal reviews and reward programs.

5. Establish Loss Control Plans

Following a loss, help employees feel productive as quickly as possible through formal Return to Work programs, while establishing an open and honest dialogue with the injured worker and claims examiner. This is important!

Keep in mind, in the State of California, failing to have workers’ compensation coverage is a criminal offense. According to Section 3700.5 of the California Labor Code makes it a misdemeanor punishable by either a fine of up to $10,000 or imprisonment in the county jail for up to one year, or both.

Here at Insurance Incorporated, we want to help promote a safe work environment for you and your employees. Visit our website for more details or give us a call at our office today!

There have been substantial amount of cases dealing with unlicensed contractors. It has been such an issue that lists have been compiled containing unlicensed contractors. It is illegal to hire unlicensed contractors in California. It often could result to your arrest if you are caught doing so, but most importantly, when you hire an unlicensed contractor, it usually means they are uninsured and also, you have no coverage from your homeowner’s insurance if any damages have incurred to the contractor, you, or your property. It’s important to be prepared when you decide to hire a contractor to work on your home.

All contractors need to have:

• At least 4 years of experience/education in the field, must be fingerprinted, have an FBI background check, and be bonded.
• A contractor’s state license from CSLB if anyone is performing construction work in California that totals $500 or more in labor and materials.
• Insurance for the employees performing construction work
• A contractor’s bond that must be in the amount of $12,500 written by a licensed surety company to maintain the active license

The last one is very important. If you hire an unlicensed contractor, they automatically become your employees, which means, you are the one who may be sued for the injured worker. If you deal with a licensed contractor, the contractor is responsible for any of its employees’ injuries.

To make sure the contractor is confirmed licensed, you can:

1. Go to the California State Contractor’s License Board and verify that they are licensed. You can enter by the contractor’s license number or the name of the company.
2. After your search, you will be able to acquire whether or not they have up-to-date insurance and bonds.
3. Call the telephone number provided by the CSLB and confirm that the person you are dealing with is a legitimate employee of that company
4. Obtain copies of their contractor’s bond and workers’ compensation insurance so you have it on file.

As a homeowner, you MUST DEMAND that the contractor can prove to you:

• Bona Fide Employee or Owner: the person you are dealing with is truly an employee or owner or authorized agent of the contractor.
• Documentation: be sure that the contractor has all the proper insurance and bonding documents

      If the contractor refuses or cannot satisfy these demands, chances are they are an unlicensed contractor.

GET IT IN WRITING. Obtain a firm WRITTEN quote from the contractor detailing the exact work to be performed, the exact cost for the work, the date the work will begin, and the time it will take to complete the work.

GET AN EXACT PRICE QUOTATION. DO NOT sign any contracts or agree to pay a contractor based on “open time and materials” needed to perform the work. GET AN EXACT PRICE. Time and materials is vague and unclear as to how much it will cost, and the contractor has no incentive to finish quickly or efficiently.

GET ALL CHANGES IN WRITING. Just as with the original contract, DO NOT approve changes in the price or scope of work verbally. Insist that all changes in price or scope of work be in writing signed by both the contractor and the homeowner.

YOUR RIGHT TO RESCIND. DO NOT waive (give up) you 3 day right to rescind the contract unless the work you need done is truly an emergency that cannot wait to be started for 3 days. DO NOT fall for “getting the work done at a discount because the contractor just happens to be in the area”. This is an old trick that the homeowner falls for thinking he will be getting a price break.

DOWN PAYMENT. By law, the contractor cannot ask for more than 10% of the entire contract price or $1000.00 (which ever is less) for a down payment before any work is done. DO NOT allow anyone to talk you into deviating from this.

ADVANCE PAYMENTS. By law, the contractor cannot ask for payments for any work that has NOT YET BEEN DONE. DO NOT prepay for materials not yet delivered either. As a requirement for getting a contractors license, the CSLB requires that all contractors have enough money or credit (at least $2500) to be able to fund the project at the beginning. Also, any legitimate contractor will have credit terms with suppliers, usually 30 days before they have to pay the invocies. It is possible to pay for materials directly, which should be a bargaining point since you are now financing the contractors project.

WAIVERs AND RELEASES. DEMAND that your contractor provide an “Unconditional waiver and release” from all their material suppliers and subcontractors used by the contractor for the work you have already paid for BEFORE you pay for any more work. Even if your contractor gives their own written guarantee that its suppliers and subcontractors have been paid, those suppliers and subcontractors may still record a “Mechanics Lien ” against your property if your contractor fails to pay them. This is very important, DO NOT let the contractor talk you out of these. It is for your protection.

PAYMENT and PERFORMANCE BONDS. If the work to be done is significant, the homeowner should consider requiring the contractor to obtain a payment and performance bond This is above and beyond the $12,500 bond required by the CSLB for all licensed contractors. The principal cost of the bonds may have to be paid by the homeowner (which is a percentage of the value of the work to be performed taking into consideration specific factors relating to the contractor). However, it is a red warning flag if the contractor has trouble qualifying for the payment and performance bonds, or if the premium required is higher than the average premium.

Knowing all this could really help protect you in a financial loss. This is your property, this is your home, and a stranger is working on your home. Now, that may sound alarming, but knowing they are licensed and have all the necessary insurance and bonds, it provides a better sense of security, not just for your property, but yourself as well.

Sources: Scholefield – Construction Attorneys