California Insurance Blog - Time and Money Saving Tips for Insurance

INSURANCE FOR CALIFORNIA CANNABIS / MARIJUANA RELATED BUSINESSES!

March 13th, 2017
From small dispensaries and smoke shops, to growers and manufacturers, we’ve got you covered! We have access to insurance programs that can be packaged to offer you better coverage at lower premiums for General Liability, Products Liability, Property, Crops, and Professional Liability. Simple general liability policies start at a minimum annual premium of $500. Options offer coverage for:  Cultivation (Indoor, Outdoor and Greenhouses)  3rd Party Processors / Harvesters  Manufacturers  Wholesale/Distributors  Retail  Management offices  Landlords  Smoke Shops  Garden / Hydroponics stores Email me at mluckner@orrandassociates.com or call 1-877-257-1652 to obtain the appropriate application(s) for the coverages you need. Once completed, we’ll get your applications to underwriting for review and quote. Most quotes available in less than 2 business days from receipt of completed applications.

PRIVACY LIABILITY AKA CYBER LIABILITY OR DATA SECURITY

January 28th, 2014
Privacy liability is an evolving exposure for any business which handles, transmits, stores, or processes “personally identifiable information”. Regulations and litigation trends over the past 10 years have created an environment with strict requirements for an organization’s behavior in the event of a data breach. The potential for financial damages, reputational harm, lost business income and regulatory action is now an everyday risk for most business entities across all industries.

WHAT KINDS OF BUSINESSES NEED PRIVACY COVERAGE?

All industries that use electronic information have a data security exposure. In the event of a breach your business may be required to provide notification to affected individuals, alert regulatory agencies, provide credit restoration or credit monitoring services to affected individuals, etc. In addition, your business will be tasked with public relations communications to protect your reputation, and IT expenses to conduct forensic examination of the breach source and determine what information was compromised. The 3rd party exposure includes regulatory fines and penalties, class action suits, cyber extortion, restitution to individuals after identity theft, expenses to remedy credit card industry standards, and defense from suits from clients or competitors.

Relying on a general liability policy to offer indemnification may result in your uninsured or under-insured loss as these types of claims are most likely not covered by a standard commercial general liability policy.

Not all carriers offer the same coverage, and depending on your industry, coverage would be tailored to your needs.

Cyber Liability 1 page quick indication appl

Need Payroll Services with your Workers Comp?

November 15th, 2013
Our agency has been working in conjunction with a great payroll services company. They are able to work with just about every workers comp insurance carrier we can quote your business with, AND they offer pay as you go services with many carriers. They offer many services free that other payroll services charge for. Often they can offer no down payment, which of course will help any business with improved cash flow. They even have a mobile app where you can access your payroll information on the go! No more checks to write and with pay as you go, you’re not surprised with year end audit premiums. In addition to all the standard services that all payroll service companies can offer, there are 3 advantages that distinguish them from the rest: * one payroll specialist assigned to your account * 2 hour call back guarantee or the next payroll is free * a three-year price lock. Let me provide you with your workers comp proposal and we’ll also provide you with a simple, easy-to-understand payroll services quote as well! Call me with your business info, FEIN, officer names to be excluded and their ownership percentage, estimated payroll for the next 12 months, employee job duties or class codes, and prior carrier information and we’ll get the process started!

California Workers Comp with Payroll Services

February 22nd, 2013

NEED PAYROLL SERVICES???

WE ARE NOW AFFILIATED WITH A PAYROLL SERVICE CALLED OVATION PAYROLL. THEY ARE COMPETITIVE WITH PAYCHEX AND ADP, ARE NATIONWIDE, AND OFFER MANY SERVICES FREE THAT THE OTHERS CHARGE FOR. EXAMPLE, AN EMPLOYER WOULD HAVE ACCESS TO:

Program Advantages:

  • No down payment
  • Improved cash flow
  • No checks to write
  • Premium calculated on actual payroll
  • Minimized year end audits

Ovation Payroll Includes:

  • Complete tax service and direct deposit
  • Access to our HR Service site (a FREE portal with access to employee handbooks, compliance requirements in your state and other resources). Others charge for this.
  • An optional additional service offered is to access an HR Generalist, a specialist who can help with the legalities of Human Resource issues for $20 a month, and no commitment for ongoing service. If you prefer to do the HR duties yourself, the Free HR portal is substantial.
  • Assigned award winning account managers
  • 42 types of reports such as “job costing” and more
  • 24/7 access to reports and employee information

While our relationship with Ovation is new, we have reviewed many testimonials and have many satisfied clients with them. It’s a terrific and affordable option that we can now offer our clients.

If you do NOT wish to know more, that’s just fine, I understand.

However, if you do wish to know more about the payroll services option, please call me at 877-257-1652 or email mluckner@orrandassociates.com

Faulty Workmanship Construction Claims and General Liability (GL) Insurance

December 19th, 2012
It amazes me to this day the number of contractors who believe that their general liability insurance will cover them for a faulty workmanship claim. Until recently (I’ll get to that), insurance carriers specifically exclude faulty workmanship. When contractors take short cuts in order to save time and money, it often results in a faulty workmanship claim. Why would an insurance company cover that? They wouldn’t, just like they wouldn’t cover any other type of negligence. Remember, the PRODUCTS/COMPLETED OPERATIONS AGGREGATE limit on your General Liability (GL) policy is the maximum that the policy will pay within that policy period for the total of all "products/completed operations hazard" occurrences. When this limit is exhausted by payment of such claims during a specific policy period, coverage ceases. It covers losses arising out of a manufacturer, merchant, or distributor’s liability due to injury or damage to a third party resulting from the use of a covered product. Also covers contractors for damage or injury to third parties resulting from something the contractor made, repaired or installed. The loss of damage resulting from the service would be covered, not the contractor’s actual finished product. As a licensed contractor, you are expected to know how to perform your job safely, accurately, to your state codes, and with great care. So, in the past the only way a homeowner might receive some type of compensation was to either go after your business (bypassing an insurance claim), or go after your Contractor’s License Bond which is $12,500 in the State of California. $12,500 is not much in comparison to the total monetary loss stated in many construction claims, especially those that involve framing (if framing is bad, then everything can be bad), foundations, roofing etc. Well, there’s some shocking good news here in California. Our agency now has access to an exclusive program that provides you with the option to purchase faulty workmanship coverage. Why this carrier is offering it, beats me! This coverage could keep a contractor from having to file bankruptcy in the event of a large faulty workmanship claim. What does the faulty workmanship endorsement do? A normal GL policy excludes your product, your work, and the particular part of property you are working on. This endorsement provides up to $10,000 of coverage for faulty workmanship after a $500 deductible for a minimal additional premium. This is not a standalone product, it is an endorsement to a general liability policy offered by one of our premium carriers. No other product in the marketplace is providing this. If you are interested in obtaining a quote for your general liability insurance, including faulty workmanship coverage, please contact me at 1-877-257-1652 or mluckner@orrandassociates.com for your no obligation quote.

WHAT IS WORKERS COMPENSATION?

September 20th, 2012
Workers compensation insurance covers your employee when they become ill or injured while on the job. Bodily injury by disease must be caused or aggravated by the conditions of their employment.

California state law requires an employer to purchase workers compensation even if you only have one part time employee. “Do you need to purchase workers comp when someone works as an independent contractor?” you ask? Determining employee status can be difficult, but California courts, state agencies and insurance carriers use a series of “tests” or questions to be asked in order to determine employee status. You can find a list at http://www.statefundca.com/news/FeatureArticles2010/070210-ContractorVsEE.asp

Ok, so you have an employee and they get hurt on the job. You’d send your employee to the doctors approved by the insurance carrier and file a report. When this happens, there might be investigation by a claims representative in order to confirm that the illness or injury was caused by their employment. Once the case is opened, a claims representative would follow the active case until closed. There are two parts to every claim, the medical costs (doctors visits, ambulance ride etc), and the loss of wages during the period of time an employee is unable to return to work. The case isn’t closed until both parts are complete.

It is important to insurance companies that their business owners maintain safe work places and follow a written safety program (safe practices for your line of work) in order to avoid potential claims.

If you’re considering hiring employees, feel free to contact me for your workers compensation quote at 877-257-1652 or email me at mluckner@orrandassociates.com

What is Data Breach Coverage?

January 25th, 2012
With the trend toward paperless data filing, nearly all companies and healthcare practices that handle or store any personally identifiable information, customer and patient OR employee data are at risk for a data breach. The possibility is especially high for businesses that routinely deal with credit cards, patient medical records, Social Security numbers and other sensitive information  Interesting Facts About Data Breach
  • Data Breach is the fastest growing crime in America
  • The average cost to mitigate damages is approximately $120-$300 per compromised record!
  • Public relations costs to help in recovery from this type of crime are rarely considered until after the fact
  • Customers and employees may require ongoing credit monitoring as peace of mind that they are safe
  • A notification mailing will be required
  • A breach can cause an interruption in business, the requirement to assess liability, obtain legal defense, potential monetary settlements, and a need for crisis management
  • Because data breach occurrences are becoming more common, there are now regulatory requirements that need to be satisfied when a breach occurs. The cost to satisfy these requirements can be significant to any business owner. The Hartford feels so strongly about the small business owner’s responsibility to their employees and customers, that they have developed data breach coverage like no other I have seen so far. For those business owners who take their employee and customer relationships seriously, you may be interested in the coverage that The Hartford offers. If your line of business is within The Hartford’s underwriting appetite, with their Data Breach coverage you could have: • The peace of mind of knowing you have the insurance coverage needed to help pay for certain response expenses necessary to comply with notification regulations and to help avoid potential lawsuits that might be brought against you as the result of a breach; and • The confidence that services are available to help mitigate any damage to your business’ reputation and help quickly restore any loss of customer, patient or employee trust.
Should you be thinking about Data Breach coverage for your business? If you store employee’s and/or customer’s personal information the answer is YES!

THE HARTFORD DATA BREACH COVERAGE OFFERS COVERAGE FOR:

First Party Response expenses including but not limited to:

Legal & Forensic Services

Crisis Management/Public Relations

Notification Expenses

Good Faith Advertising Expenses

 

Third Party Defense & Liability expenses (including defense costs)

In addition, with The Hartford’s Data Breach coverage, you will have access to a proprietary breach preparedness web site. This site, powered by Identity Theft 911®, a leader in identity management and theft resolution services, offers a host of pre and post-breach services and resources.

To purchase insurance with data breach coverage, contact me at 877-257-1652 OR mluckner@orrandassociates.com to discuss. To learn more about data breach and the importance for insurance coverage, here are some valuable links:  About identity theft and data breaches  http://www.privacyrights.org/Identity-Theft-Data-Breaches  Identity theft info for The Hartford policy holders  http://www.idt911.com/ The Hartford’s video link http://hartford.http.internapcdn.net/hartford_vitalstream_com/OHC%20Video/ohc_3.html

Contractor License Bonds California

March 14th, 2011

Did Your Bond Renewal Price Go Up This Year?

Yes, that’s what we’re hearing from so many of our contractor clients. Many contractors are taking jobs just to stay “alive and working” and are not necessarily making money on the job. For those of you in the contracting business for some time, you know that maintaining a good credit history is crucial to maintaining a great bond price. Because the bond is a requirement of the Contractors State License Board in order to operate as a contractor, you aren’t left with a choice on whether to be bonded like some other business types. Unless you have an extra $12,500 you can tie up for years and years in an account specifically for the purpose of surety bonding, you will need to purchase a bond.

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Insurance for Caterers

March 4th, 2011

Most caterers start out with a dream ….a dream born from the love of cooking and baking, and their desire to share their delicious dishes with more than just friends and family. Ultimately many have eventual intensions of opening a restaurant, but some are happiest operating a catering service or lunch truck.

Caterers liability insurance(s) can be simple or complicated.

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How Does Commercial General Liability Work?

February 9th, 2011

What do the business insurance coverages mean?

Well, obviously entire textbooks are devoted to these very questions, but in order to give you a better (and quicker) understanding I’ve put together some basic information that I think will be of help. As mentioned in other posts, it’s nearly impossible to compare a policy apples to apples based on coverage limits and price alone since every carrier imposes their own limitations and exclusions. Some carriers use ISO (International Standards Organization) coverage forms, others use their own proprietary coverage forms.

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