Texas Workers Compensation networks working

The Texas Department of Insurance just released their annual report on the state of the Worker’s Compensation heathcare network in Texas.

The 2012 Workers’ Compensation Network Report Card compares health care outcomes across a spectrum of statistics from the twelve network providers with non-network entities. The report is based on telephone surveys of 3,276 injured employees with new lost-time claims, which represents approximately 26 percent of the total lost-time claim population.

And it seems from the results that the system is working efficiently.

Here are some outcomes:

• Overall, 504-Alliance, 504-Others, Travelers, and Zurich injured employees had lower average medical costs than non-network injured employees for the first six months after the injury.
• Regarding lost-time claims, 504-Alliance, 504-Others, Corvel, and Texas Star injured
• employees had lower average medical costs than Non-network injured employees.
• 504-Alliance, 504-Others, and Zurich had lower average professional costs than Non-network.
• Overall, networks tended to have higher utilization of professional and pharmacy services than Non-network.
• Networks tended to have lower utilization of hospital services than Non-network Access to Care and Satisfaction with Care
• Injured employees from seven network entities reported higher levels of agreement with their treating doctors than non-network injured employees (up from zero networks in 2011).
• All twelve network entities reported higher return-to-work rates than Non-network.
• All twelve network entities had lower average numbers of weeks off from work than Non-network.

Information on the Workers Compensation network itself is also on the TDI website.

Surety bonds can help generate trust between you and your clients. Call Statewide Insurance Brokers for more information.

Surety bonds are important to the construction industry because they bring the three key entities into a legally binding contract. These entities include:

•  the principal or contractor who buys surety bonds to guarantee his/her work
• the obligee or project owner/government agency that needs the bonds to protect against financial loss
• the surety or company that issues the bond and serves as a mediator between the principal and the obligee

In the event a contractor doesn’t meet the terms of a bond, the affected parties can then “make a claim on the bond to gain reparation.” The bond issuer will typically require that a contractor “provide reimbursement according to the bond’s indemnity agreement.”

Bonding also ensures that the bidding process is transparent. When a contractor initially bids for a project, he or she will typically offer bid bonds which guarantee that the contractor “will complete a job for the initial bid without raising the cost.” This encourages bidding from financially stable companies while assuring project owners that they can file a claim to recover any losses incurred from potential price gouging.

Most importantly of all, however, construction bonds “reinforce client trust.” When project owners work with a bonded construction professional, they can rest assured that the contractor has a good reputation and that they will be protected against damages. This is because surety bond providers “conduct thorough background checks”  on all  individuals who seek bonding.

Your clients depend on you. That’s why Statewide Insurance offers information about bonding and surety companies when you need it most: we’re the brokers you can rely on to help make your business a safe bet for success.

Using a commercial truck? You'll need commercial truck insurance. Call Statewide Insurance Brokers.

Carrying a commercial truck insurance policy ensures that both the driver and any other motorists are compensated in the event of accidental injury or damage that may occur in a crash. The two major types of truck insurance that exist include general liability and physical damage plans.

General liability typically covers business employees and any independent truck owner/operators you may hire for a specific haul. This type of insurance policy will take care of damage sustained in an accident by the other motorist(s). This type of protection is required by law no matter the circumstances under which a commercial truck is being operated.

Physical damage coverage protects against damage done to your personal property–for example, any trucks you may own and use for your business–regardless of who’s at fault in the accident. A comprehensive insurance policy will cover you in the event of such unforeseen events as theft, fire, flood and earthquakes, all of which are among the many dangers that exist on the road.

When you buy commercial truck insurance, it’s important to make sure that your policy maximums are equivalent to your estimated repair or replacement expenses. Don’t forget to also factor in state and government restrictions when deciding on the level of coverage to purchase. The experts at Statewide Insurance can help you sort out these issues and determine which insurance plan currently on the market best meets your business needs: call or e-mail us today for an estimate.

An investment will return with an individual claim. And matters will occur. That is an inescapable reality. It takes an elementary error or slip and matters go from sound to awful in a moment. Without coverage, a business could go under rather rapidly.

Obtaining commercial contractors’ insurance quotes are rather easy with the web. Like most additional indemnity types, business has quickened since brokers went online. They can get data rapidly and make informed determinations without departing their desk. That gives the contractor tractability and choices that weren’t available earlier. Acquiring a beneficial relationship with a broker is crucial. However, the broker doesn’t need to be next door these days.

Commercial contractors’ insurance quotes are useful instruments for both the commencing contractor and those that have been in business for a long time. For the commencing contractor, quotes afford them choices for discovering the right insurance policy at the proper cost. They also get perceptiveness into the brokers and underwriters that service their region.

For a lot of beginners, it is a beneficial thought to confer with others in the craft they would like to enter. This will afford them the names of brokers and companies that furnish insurance coverage for that type of commercial enterprise. It can also afford them names of those to avoid due to inadequate claims service or exorbitant pricing. All of that affords new contractors an effective beginning.

For experienced contractors, commercial contractors’ insurance quotes afford them ammo when considering their current insurance policy. A lot of times their broker will assume they would like to renew with their current underwriter and won’t do any legwork to discover the best cost at other companies. It’s up to the contractor to make the first motion to commence quotes.

A couple of weeks ahead of the renewal date, a contractor need to get hold of their broker and call for them to research other suppliers and other deductions. This gives the broker time to do the legwork. It also affords the customer time to see the alternatives and make informed determinations. It is a tool for the broker to utilize with the current underwriter to cut down the quoted renewal rate.

Contact Statewide Insurance Brokers for your commercial contractors insurance. We will get you a fast, free quote! Call 888-258-0272

1. Assess Your Risks. Insurance companies determine the level of risk they’ll accept when issuing policies. This process is called underwriting. The insurance company reviews your application and determines whether it will provide all or a portion of the coverage being requested. Each underwritten policy carries a premium and a deductible. A premium is the price you pay for insurance. Premiums vary widely among insurance companies, and depend on a number of risk factors, including your business location, building type, local fire protection services, and the amount of insurance you purchase. A deductible is the amount of money you agree to pay when making a claim. Generally, the higher deductible you agree to pay, the lower your premium will be. However, when you agree to take on a high deductible you are taking on some financial risk. So, it’s important to assess your own risks before you go shopping.

2. Shop Around. The National Federation of Independent Businesses provides information for choosing insurance to help you assess your risks and to make sure you’ve insured every aspect of your business. The extent and costs of coverage vary from company to company. Some brokers specialize in insuring specific types of business, while others can connect you with policies specific to your business activities. For example, if you operate a tow truck service, you’ll want to find an agent that can help find policies that specifically cover automotive service businesses. Often specialist brokers can get you the best coverage and the best rates.

3. Consider a Business Owner’s Policy. Insurance can be purchased separately or in a package called a business owners’ policy (BOP). Purchasing separate policies from different insurers can result in higher total premiums. A BOP combines typical coverage options into a standard package, and is offered at a premium that is less than if each type of coverage was purchased separately. Typically, BOPs consist of covering property, general liability, vehicles, business interruption and other types of coverage common to most types of businesses. BOPs simplify the insurance buying process and can save you money. However, make sure you understand the extent of coverage in any BOP you are considering. Not every type of insurance is included in a BOP. If your business has unique risks, you may require additional coverage.

4. Find a Reputable, Licensed Agent. Commercial insurance brokers can help you find policies that match your business needs. Brokers receive commissions from insurance companies when they sell policies, so it’s important you find a broker that is reputable and is interested in your needs as much as his own. Make sure your broker understands all the risks associated with your business.

Finding a good insurance agent is as important as finding a good lawyer or accountant. You should always look for one that has a license. State governments regulate the insurance industry and license insurance brokers. Many states provide a directory of licensed agents.

5. Assess Your Insurance Coverage on an Annual Basis. As your business grows, so do your liabilities. You don’t want to be caught underinsured should disaster strike. If you have purchased or replaced equipment or expanded operations, you should contact your insurance broker to discuss changes in your business and how they affect your coverage.

Statewide Insurance is your reputable agent. We are here to help you assess what coverage you need to give you the best protection. We operate in many fields and are licensed to provide coverage in Texas, California, Oregon, Minnesota, Virginia and Nevada. We are here for you and your business.

In the case Garza v. Zachry Construction Corp., 2012 WL 1864350 (Tex. Ct. App. May 23, 2012), an employee of DuPont at its Ingleside, Texas plant was injured in a rail accident and received worker’s comp benefits from DuPont. However, he also attempted to sue a subcontractor and several of its employees who were responsible for the accident. DuPont had them covered under a different worker’s compensation insurance plan. The subcontractor argued that because DuPont provided the coverage, they were also “deemed employees” of DuPont so could not be sued under Texas labor statutes.

The plaintiff argued basically that because employees of DuPont and the subcontractor were not covered under the same policies, that the bar against filing suit for injury did not come into play. And they further argued that even if the bar did obtain, it violated the Texas constitution guarantee of open courts – that a common-law cause of action will not be hindered from access to the courts.

The Court of Appeal agreed with the argument of the defendants.

So as long as your worker’s compensation policies are in force, contractors and their subcontractors are protected from suit by employees.

Photo credit: FreeDigitalPhotos.net

Since January 2011, California law has required that a broker of construction trucking services post a surety bond to ensure payment to a dump truck operator whose services were brokered. The driver is also required to provide certification of his operator’s permit to the broker.

The brokers must secure a surety bond of at least $15,000 to ensure payment for the operators and the failure to do so is a misdemeanor and could result in up to a $5,000 fine.

The new legislation before the Senate Transportation and Housing Committee would require construction trucking brokers to disclose a copy of their surety bond.

Sen. Kevin de Leon, D-Los Angeles, told panel members that the change that would improve transparency in notification requirements.

“There still are very unscrupulous brokers out there that continue to dodge their bonding responsibilities under the law by either never attaining a bond or refusing to provide access to the bond to subhaulers,” de Leon testified. He noted as well that existing law does not include the requirement that brokers notify others of the bond information.

The result will be that if the work has been completed and the broker has not made payment, the dump truck operator can easily access the bond information to file a claim.

Are contractors required to purchase liability insurance?
Oregon law requires building contractors to carry general liability insurance, which includes products and completed operations coverage. The state Construction Contractors Board (CCB) will not issue or renew a contractor license without proof of insurance. Coverage limit requirements vary depending on the license category. Many contractors carry coverage in excess of CCB’s requirements.

What does general liability insurance cover?
General liability insurance covers property damage and bodily injury losses caused by the contractor that occur as a result of his or her work. It does not provide coverage for poor workmanship or construction defects. Limitations on these insurance contracts vary from insurer to insurer. Exclusions in a policy for specific exposures such as multi-family dwellings, tract home projects, condominium construction, and exterior insulation finishing systems are common. Every policy is different, so it is especially important for the policyholder to understand his or her coverage.

General liability can be written on an occurrence or a claims-made basis:

Occurrence policies provide coverage for liability that occurs while the policy is in force, regardless of when the claim is reported. Occurrence policies can also be issued with a manifestation trigger, providing coverage only when the first manifestation of bodily injury or property damage occurs during the policy period. Under current Oregon law a claim can be brought for up to 10 years after completion of a project.

Claims-made policies provide coverage for claims that are reported while the policy is in force. Often the claims-made coverage is subject to a “retroactive date” and will not cover claims that are made while the policy is in force that are due to occurrences that were before the retroactive date. Claims reported after the policy is cancelled or replaced are not covered unless the contractor purchases an “extended reporting” option, sometimes known as “tail coverage.” Policies for contractors written on or after January 1, 2008 must include products and completed operations coverage “according to the terms of the policy and subject to applicable policy exclusions.” The certificate of insurance or electronic proof of coverage provided to the CCB is required to document that the products and completed operations coverage is included.

What are the current issues surrounding contractor liability insurance?
Premium rates for contractor liability insurance have increased in recent years. At the same time insurers’ criteria for issuing policies are tighter. Many contractors find that they either face premium hikes, or their policies are canceled or non-renewed. It may be difficult to obtain new coverage. Contractors who work on the envelope of the structure, such as residential builders, framers, siders, roofers, and window and door installers, have been particularly hard-hit. In some cases contractors find that while they may be able to obtain or renew coverage, the contract is more limited than it was previously. This leaves the contractor with increased exposure to uninsured liability risk.

How much has the cost of this insurance increased?
The rating bureau loss costs which insurers use to determine their final premiums for contractor classes have increased an average of 18 percent for products and completed operations liability coverage. Changes in payroll or gross sales are other factors that affect contractor liability premiums. Often the more dramatic rate changes experienced by individual contractors stem less from rate
increases by their existing carrier than from situations where their coverage is cancelled and they are unable to find a new policy at a similar price. Upon moving to a new insurer, the premium is typically higher. The new coverage may also be less extensive.

Why have costs increased so sharply?
The insurance industry and others frequently cite a variety of factors that contribute to increased premiums and tighter underwriting standards, including:

• ƒ Increased claims and losses stemming from the introduction of new building products or construction methods that result in water damage, mold, and other problems,
• ƒ Increased litigation stemming from contractor performance issues, and
• ƒ Lower than expected investment returns due to changes in the interest rate environment.

Photo credit: mrpuen

Fleet insurance has pretty much the same legal requirements as personal auto insurance. However there are exceptions because states do have different rules. Statewide can help you with this.  It is especially important  if your vehicles operate across state lines.

If you have trailers, liability insurance isn’t needed for them because they are not vehicles. Generally, the liability insurance of the vehicle towing also covers the trailer. It is important to note that comprehensive and collision coverage for the trailers generally need to be written separately though.

Here are some other important points:

• make sure all drivers are listed under the fleet policy. If a driver is not listed, there is no coverage if they get into an accident;
• most fleet policies will not cover drivers under the age of 25;
• the drivers must be properly trained and licensed on the vehicle they are driving; and,
• the drivers must have good driving records.
• that your equipment and goods inside the vehicles must have separate coverage for theft and vandalism and this is usually covered by “inland marine” coverage which is a separate policy.

Statewide Insurance will help you find the right insurance coverage for you and your vehicles. Whether you have a large fleet or a small one, we have the experience and knowledge to help you get the coverage you need at the price you can afford.

As of 2010, in a survey conducted by the Texas Department of Insurance, fifteen percent of Texas businesses with more than 500 employees do not carry state workers’ compensation coverage.

Daniel Morales, a spokesman for Wal-Mart, said the company is “sort of late to the game” in switching to its own program.

The Texas Tribune reported that under Wal-Mart’s in-house plan, total medical coverage is capped at $300,000 for individual injuries, compared with lifetime coverage for the injury under state workers’ compensation. The Wal-Mart plan provides 90 percent of lost wages for injured employees for up to 120 weeks, compared with 70 percent of lost wages for up to 401 weeks under the state system. That is a maximum of $54,000 in lost wages provided under Wal-Mart’s policy, and $140,350 under state workers’ compensation.

Industry watchers are wondering how this will all play out. The AFL-CIO is now lobbying the state to make the state-run worker’s compensation program mandatory. The current opt-out option, they say, is endangering the system for injured workers and not providing as good benefits. Businesses obviously wish to keep their costs lower and some analysts speculate that enforcing the state-run system may bankrupt some who can’t afford it. Also whether increased litigation exposure on injured worker claims will eventually make the private plans nonviable.

Photo credit: David Castillo Dominici