You are here: Home / Archives for Statewide

Why You Need Commercial Vehicle Insurance

December 16, 2011 By

statewide commercial vehicle insuranceIf you are a business owner who routinely uses vehicles to visit your clients and/or deliver goods and services, then you need commercial vehicle insurance. This is because if a car you/an employee uses for commercial purposes is ever involved in an accident, you could suffer huge losses that could cause irreparable harm to your business.

Much like a standard auto policy, a commercial one will typically cover repair and replacement costs in a vehicle that has been damaged in an accident. It will also takes care of the costs of any claims filed against the driver for injuries or any harm done to property. Where it differs is in the forms it takes: coverage for commercial vehicle insurance is classified into three kinds.

The first is for business owners who only need their vehicles for intermittent commercial use. This is good for individuals whose autos aren’t explicitly registered for business purposes and don’t play a major role in generating income for the enterprise. Such insurance also covers private use.

The second kind of commercial auto insurance also covers both personal and business use: in this case however, the vehicle(s) insured are customarily employed for commercial purposes and driven by a designated driver.

The third type of insurance is for designated drivers whose vehicles play a major part in the day-to-day business activities of a particular firm. If your employees use their personal vehicles for work purposes, you would also be advised to look into non-owned auto policies. This kind of coverage applies to all vehicles not registered to a company.

When you’re ready to purchase commercial vehicle insurance, be sure to have the drivers license numbers of all designated drivers in your company as well as copies of their driving records. Also have a list of the the vehicle identification numbers (VINs), makes and models of all cars you plan to insure.

Statewide Insurance Brokers can help you decide what works best for your specific needs and get you the best value for your money: contact us today for a free quote. Call 888-258-0272.
Filed Under: Commercial Vehicle Insurance Tagged With: ,

Changes to Texas Certificate of Insurance Law

December 7, 2011 By

texas capitol certificate of insurance change

Find out how recent legislative changes affect Texas certificates of insurance.

If you are a contractor in Texas, you need to be aware that the law regarding certificates of insurance (COIs) has changed. Property Insurance Coverage Law.com reports that the Texas Legislature passed a bill this past legislative term that adds “a new chapter to the Texas Insurance Code.”

Senate Bill 425, which took effect on September 1st of this year, will formally apply to all certificates of insurance issued on or after January 1, 2012.  The new law states that “the Texas Department of Insurance (TDI) [must] approve certificates of insurance in connection with casualty and property policies.”

Because differences often existed between certificates of insurance and actual insurance policies, the TDI did not approve certificates of insurance prior to the passage of Senate Bill 425. Unfortunately, this situation gave rise to costly litigation. Court cases have since held that “certificates of insurance are issued for informational purposes alone and cannot alter the terms of coverage provided by an insurance policy.”

According to the new law, a certificate of insurance:

  • cannot convey a contractual rights under any circumstances
  • does not “amend, extend or alter the coverage afforded under a policy”
  • confers no  “new or additional rights beyond the policy”

A COI form “must now be filed and approved by the Texas Department of Insurance.” The penalties for noncompliance are stiff: anyone found to have broken the law can be fined $1000 for each infraction. Moreover, “an insurer or agent who violates this chapter will be subject to cease and desist orders, injunctive relief, civil penalties, or any combination of those punishments.”

Knowledge is power: the more you know, the better off you’ll be in the long run, especially if you own and run your own business. Addressing any Texas COI concerns you may have with the specialists at Statewide Insurance will give you the peace of mind you deserve.

 

 

Filed Under: Texas Certificates of Insurance Tagged With: ,

About Certificates of Insurance

November 21, 2011 By

certificates of insurance statewide insurance brokers

Certificates of insurance are available via statewide insurance brokers.

As a contractor, you know how important it is to carry liability insurance.  You should also have certificates of insurance (COIs) as well, since you never know when a client may request information about specific insurance policies you carry in the event  your company incurs losses on a specific job.

According to the website Mondaq.com, a COI will have a record of the following information:

  • the issuer of the COI (this is usually the insurance agent)
  • the name of the person covered by the policy
  • the name of the insurer or insurers
  • the type of insurance
  • the policy number, policy effective date and policy expiration date
  • the limits of coverage
  • any operations, locations, vehicles and/or exclusions added by endorsement
  • the name of the party to whom the certificate is issued
  • cancellation

No standard COI form exists. However, “the predominant form is one of dozens designed and copywritten by the ACORD Corporation, [which] designs forms for specific insurance risks and files them with state insurance departments.” Since ACORD periodically revises its forms, you should take care when requesting a specific one as it may be out of date.

Be aware that “even though you are listed as a certificate holder, you may not be covered by the policy: you must be added as an additional insured to the policy by rider or amendment.” ACORD has created “numerous forms for specific industries and risks [so] it is important to review the specific form as it often contains policy exclusions or other coverage limitations.”

COI forms can be be confusing: consult with your risk manager or insurance agent if you have any questions. Remember that if any COI you have is not issued in accordance with your contractual obligations, questions could be raised regarding liability, which could result in claims and costs you hadn’t anticipated.

For Certificates of Insurance, contact Statewide Insurance Brokers at 888-258-0272.
Filed Under: Certificates of Insurance Tagged With: ,

California Independent Contractor Classification Law

November 14, 2011 By

Do you operate a business in California that retains independent contractors? If so, you need to be aware of a new state law that, according to the Monterey Herald.com, “penalizes businesses that ‘willfully misclassify’ employees as independent contractors.”

California workers comp

Knowing California independent contractor laws includes acquiring the proper liability insurance and workman's comp insurance if needed.

Under current law, businesses that engage in this kind of misclassification “are subject to consequences, including liability for payroll taxes, unpaid unemployment insurance contributions and penalties for failure to secure workers’ compensation coverage.” Moreover, “because the misclassified individuals have not been paid pursuant to wage and hour laws,” they are often entitled to overtime pay as well as compensation for “missed meal and rest periods.”

Many business owners believe that if they have an independent contractor agreement with the worker, they are in compliance with law. However, such an agreement alone does not necessarily determine whether a worker is an independent contractor. As the Monterey Herald.com further reports, “the most important factor is whether the business has control or the right to control worker as to the work done and the manner and means in which it is performed.”

Under Senate Bill 459, which will go into effect on January 1, businesses will be subject to hefty fines ranging from $5000 to $25,000 per violation if they:

  • willfully misclassify a worker as an independent contractor or
  • charge a person who has been “willfully misclassified as an independent contractor a fee or make any deductions for compensation.”

This new law interprets “willful misclassification” as “voluntarily and knowingly misclassifying” an individual as an independent contractor.

The message behind Senate Bill 459 is simple. If your California business uses independent contractors, be careful how your categorize them in your records: misclassification could cost you a bundle.

If you have independent contractors or operate a business yourself, be sure you are in compliance and secure the proper general liability insurance or workers compensation as needed. Call Statewide Insurance Brokers at 888-258-0272 for a fast, free quote!
Filed Under: California General Liability Insurance, California Workers Compensation Insurance Tagged With: , ,

What Limited Liability Really Means

November 4, 2011 By

When a business owner operates through the structures known as an LLC, it is usually to gain what is called “limited liability.” As Journal-News.net states, “limited liability means that an owner or investor cannot lose more money than the amount [he or she has] invested or personally guaranteed.”

pen and paper

What role does limited liability really play in protecting a business owner?

But what role does limited liability really play in protecting that business owner?

To begin, there’s no foolproof way “individuals can completely shelter themselves from all liability that may arise with the company.” However, if the organization is structured carefully and well, it “can protect the personal assets of members and participants from liability arising out of the acts or omissions of the organization” or “of other members or participants.”

This means that all bylaws and operating agreements and articles should be carefully drawn up to assure that “proper indemnities are provided by the company.” Ensuring that a business entity is properly insured and in good financial health are also important “to limiting the liability of members and participants.”

Getting limited liability could be as easy as filling out a form. However, maintaining it “may require following some administrative formalities” that many business owners dislike but are still very necessary. Some of these may include:

  • Creating and maintaining operating agreements
  • Keeping “separate and accurate accounting records for the business”
  • Disallowing the co-mingling of “money, other assets, income or expenses of the business and its owners”
  • Holding “regular, documented owner/board meetings”
  • Putting all “agreements and policy decisions in writing,” even when they are “between the business and its single owner.”

For small business owners in particular, these formalities may seem excessive. But proper structuring–which is best done with the assistance of good attorney–will go a long way towards ensuring the best protections possible.

Obtaining the proper insurance is the best way to avoid complications arising from the day-to-day actions of doing business. Call Statewide Insurance Brokers at 888-258-0272 today.
Filed Under: General Liability Insurance Tagged With: , ,

Is Faulty Workmanship an “Occurrence”?

October 29, 2011 By

When it comes to determining whether faulty workmanship is an occurrence, inconsistency is the watchword.  No way currently exists to accurately predict when–or even if–a contractor is entitled to coverage from an insurer.

hardhat

Contractors must think strategically and be proactive

Insurance Journal.com offers the following example to illustrate a situation that’s all too familiar to construction contractors: A developer hires you to construct a building.  You then hire a subcontractor to do a portion of the work (say, a façade) which, upon completion, collapses. The developer then tells you to repair the work and you in turn seek coverage from your liability insurer because the property owners do not submit the claim to their own insurer.

Ultimately, your insurer denies the claim and says “there was no occurrence [because] there was really nothing accidental about what happened.”  The work was defective and the ‘your work’ exclusion doesn’t cover defective workmanship. Besides which, your policy has a collapse exclusion.

Insurance Journal.com observes that “the law on these issues varies from state to state.” In some states, faulty workmanship is indeed an occurrence: but in others, it is not. Still others are undecided on the matter while some “say faulty workmanship is not an occurrence but the resulting damage is.”

In the midst of all this confusion, the contractor needs to keep a clear head.  As the website points out that “defective construction is something that’s created over time.” This may offer contractors and their attorneys an effective way to dispute a claim.

The contractor should also stay aware of:

  1. the state in which a policy was issued and,
  2. whether or not there are parties involved in a matter from different states. This is because plaintiffs will often try to “forum shop”–that is, locate a state (associated with the policy or the parties) that is friendly to their claims.

If you are a contractor who finds yourself in this situation, the best advice is to think strategically and be proactive. In other words: “think about what’s being brought [forward] and why and understand “that the insurer is strategizing about the same thing.”  Doing so will help you protect your rights and maximize the possibility that insurers will honor your claim.

Statewide Insurance Brokers offers contractors a safe bet: great insurance quotes from up to 40 insurance providers. Talk to us and know you’re getting a great deal.
Filed Under: General Liability Insurance Tagged With: , , ,