Here are 11 keys to prevent overcharges from robbing your financial statement:
1. Check your Experience Mod work sheet to confirm it’s 100% correct.
2. Establish relationships with medical providers that understand the Workers’ Comp system.
3. Delete the words “Hospital emergency room.” Only send injured employees to an ER as a last resort.
4. Take injured workers to the doctor/medical providers. Show your worker and the med provider how much you care.
5. Know the importance of proper payroll reporting. Report and pay premiums only on payroll that is necessary. You may have been overcharged for a considerable period. Even reporting lower payrolls may result in higher costs because of how the system operates.
6. Demonstrate a zero injury tolerance. Continually stress and educate your team in the disastrous effects of on-the-job injuries.
7. Check to see that you are receiving all the forms and information you are entitled to from the insurance company so you can monitor progress toward a minimum Experience Modification Factor.
8. When your insurance company pays for medical treatment and lost wages to an injured employee due to an injury resulting from a third-party’s negligence, make certain you have a process to follow up with your insurance company for recovering money spent so you are not penalized.
9. For “first-aid” type injuries, treat them yourself. Typically, claims of $500 or less carry substantial penalties. Payments of $500 or less, penalize you. We’re not suggesting you pay them, but review with your insurance company to see if there’s a better process for reducing your costs caused by smaller payments by the insurance company.
10. If you have employees in other states, different rules may apply. Check them out.
11. If you are a 24 hour business or multiple location/state business, do you have standard processes to cope with after hour or multiple state differences?
Source: Institute of WorkComp Professionals and the HAUSER group
Thursday, January 19, 2012
Friday, January 6, 2012
Captive Insurance - Worth a Look
As your company competes in this challenging economy it is always important to look for ways to be become more efficient and increase profit marigins. One avenue for this is to consider looking into captive insurance. It has a multitude of tax advantages along with ways to take "total control" of your company's insurance program(s)
This article was put together by our good friends at Dinsmore & Shohl.
Here is a link to Dinsmore's article: Captive Insurance
This article was put together by our good friends at Dinsmore & Shohl.
Here is a link to Dinsmore's article: Captive Insurance
Thursday, January 5, 2012
Thursday, November 10, 2011
Tuesday, October 19, 2010
Informational Theft: On the Rise
For the first time in history a recent study conducted by Kroll Annual Global Fraud Report, revealed that theft of informational and electronic data has surpassed physical (intrinsic valued) theft. The study released the following statistics:
The findings reveal that theft of information or assets was reported by 27.3% of companies over the past 12 months, up from 18% in 2009. In contrast, reported incidences of theft of physical assets or stock declined slightly from 28% in 2009 to 27.2% in 2010. ("Kroll")
One of the main factors influencing this rise is that informational data is becoming more and more mobile and few companies have the proper controls in place. How many of your employees have a mobile device, a computer, or access to shared files over your computer network? Companies need to regularly evaluate how they are controlling access to information within their organization to ensure they are keeping pace with technological advancement.
According to the Kroll Annual Global Fraud Report, fraud is becoming more prevalent among inside employees. The companies analyzed in the report show that junior employees and senior management were the most likely perpetrators at 22% each, followed by agents or other intermediaries at 11%. The proportion of fraud carried out by these employees ranged from 50% to 60% in North America. ("Kroll")
Now the question arises: I thought I had coverage under my corporate crime policy?
Unfortunately, most carriers are going to deny coverage pointing first to the employee theft insuring agreement. This agreement refers to covered property as "money", "securities", and "other property". The term "other property" is defined as tangible property other than money and securities having intrinsic value. If the data is printed out then it would be considered tangible, but not if it is located on a flash drive, mobile device, or an electronic file.
There are some cases where the crime policy may respond depending upon the claim scenario and the endorsements included on your crime policy. An example where coverage may be available is if one of your employees is working at a client's facility and your employee steals electronic data that causes a financial loss to your client. It is still uncertain rather or not a carrier will pay the insured who can turn around and indemnify their client, even if electronic data is considered a covered property. The "Clients' Property Endorsement" must be included on the policy for the possibility of a claim payout. The endorsement states "that the insurer will pay for loss of money, securities or other property sustained by the named insured's client resulting from theft committed by an identified employee acting alone or in collusion." ("Malecki")
Recommended Risk Management Procedures:
1. Control Access
2. Conduct Due Diligence of partners, vendors, and employees
3. Be relentless in attacking Intellectual Property Piracy
4. Record Trademarks with the US Customs & Border Protection Agency
5. Purchasing a Cyber Liability Policy
Now is the time to ensure that your company is properly protected from informational and data theft.
References:
Kroll. Information Theft At Global Companies Surpasses All Other Forms of Fraud for First Time. 18 October 2010. http://www.kroll.com/news/releases/index.aspx?id=23082
Malecki, Donald. Rough Notes. November 1, 2002.
The findings reveal that theft of information or assets was reported by 27.3% of companies over the past 12 months, up from 18% in 2009. In contrast, reported incidences of theft of physical assets or stock declined slightly from 28% in 2009 to 27.2% in 2010. ("Kroll")
One of the main factors influencing this rise is that informational data is becoming more and more mobile and few companies have the proper controls in place. How many of your employees have a mobile device, a computer, or access to shared files over your computer network? Companies need to regularly evaluate how they are controlling access to information within their organization to ensure they are keeping pace with technological advancement.
According to the Kroll Annual Global Fraud Report, fraud is becoming more prevalent among inside employees. The companies analyzed in the report show that junior employees and senior management were the most likely perpetrators at 22% each, followed by agents or other intermediaries at 11%. The proportion of fraud carried out by these employees ranged from 50% to 60% in North America. ("Kroll")
Now the question arises: I thought I had coverage under my corporate crime policy?
Unfortunately, most carriers are going to deny coverage pointing first to the employee theft insuring agreement. This agreement refers to covered property as "money", "securities", and "other property". The term "other property" is defined as tangible property other than money and securities having intrinsic value. If the data is printed out then it would be considered tangible, but not if it is located on a flash drive, mobile device, or an electronic file.
There are some cases where the crime policy may respond depending upon the claim scenario and the endorsements included on your crime policy. An example where coverage may be available is if one of your employees is working at a client's facility and your employee steals electronic data that causes a financial loss to your client. It is still uncertain rather or not a carrier will pay the insured who can turn around and indemnify their client, even if electronic data is considered a covered property. The "Clients' Property Endorsement" must be included on the policy for the possibility of a claim payout. The endorsement states "that the insurer will pay for loss of money, securities or other property sustained by the named insured's client resulting from theft committed by an identified employee acting alone or in collusion." ("Malecki")
Recommended Risk Management Procedures:
1. Control Access
2. Conduct Due Diligence of partners, vendors, and employees
3. Be relentless in attacking Intellectual Property Piracy
4. Record Trademarks with the US Customs & Border Protection Agency
5. Purchasing a Cyber Liability Policy
Now is the time to ensure that your company is properly protected from informational and data theft.
References:
Kroll. Information Theft At Global Companies Surpasses All Other Forms of Fraud for First Time. 18 October 2010. http://www.kroll.com/news/releases/index.aspx?id=23082
Malecki, Donald. Rough Notes. November 1, 2002.
Monday, October 11, 2010
Law Banning Texting while Driving
You may have already heard, but I wanted to give you a heads up that Cincinnati has now implemented a ban on texting and accessing the internet on your mobile device while driving. Furthermore, Kentucky implemented a similar law back in July.
As a corporate entity it is imperative that your employees do not text or access the internet while driving on company business. If your employees are using their mobile devices while driving they are not only opening the company (and themselves) up to fines, but are also increasing the risk of auto accidents and negligent entrustment law suits. Have you reviewed your motor safety program recently? Have you implemented the proper procedures?
A few statistics to share:
- 80% of auto accidents are caused by driver distraction within 3 seconds of the event.
- 65% of near accidents are caused by driver distraction.
- Estimates show that 57% of drivers text while operating a motor vehicle.
- A study done by the American Automobile Association found that 46% of teenaged drivers text while driving and that 37% say that texting is extremely or very distracting.
http://news.cincinnati.com/article/20101008/NEWS0108/10090319/Chief-Look-for-texting-drivers
As a corporate entity it is imperative that your employees do not text or access the internet while driving on company business. If your employees are using their mobile devices while driving they are not only opening the company (and themselves) up to fines, but are also increasing the risk of auto accidents and negligent entrustment law suits. Have you reviewed your motor safety program recently? Have you implemented the proper procedures?
A few statistics to share:
- 80% of auto accidents are caused by driver distraction within 3 seconds of the event.
- 65% of near accidents are caused by driver distraction.
- Estimates show that 57% of drivers text while operating a motor vehicle.
- A study done by the American Automobile Association found that 46% of teenaged drivers text while driving and that 37% say that texting is extremely or very distracting.
http://news.cincinnati.com/article/20101008/NEWS0108/10090319/Chief-Look-for-texting-drivers
Thursday, July 22, 2010
Joint Ventures: Possible Coverage Gap?
Due to the economy and other contractual issues, there has been a rise in the use of joint ventures (JV). This has allowed contractors to expand their traditional markets and preserve bonding capacity for other projects. In most cases the joint venture will have its own insurance program in place, but if the limits are inadequate the JV's participants are responsible for additional liabilities. Usually the contractor with the deeper pockets will be called upon to foot the bill (claim).
The standard commercial general liability (CGL) policy provides no coverage with respect to joint ventures that are not listed on the policy; therefore, JV participants will have no coverage under their own policies for liabilities arising out of the JV unless they take proactive steps to include all current and past joint ventures as insureds on the policy. To avoid the possibility of oversights that can produce coverage gaps, contractors can request a blanket joint venture coverage endorsement that provides coverage on an excess basis over policies written specifically for the joint venture. In this way, the contractor receives the full benefit of the coverage provided by the joint venture and also has protection under its own policy after the JV's coverage expires or is exhausted by claims.
Note that the coverage granted by this endorsement applies only to the named insured contractor; neither the joint venture itself nor other participants have coverage under the named insured contractor's policy. However, to reduce the possibility that this policy becomes the sole source of recovery for a claim, the JV agreement should require the other participants to also arrange joint venture coverage on their CGL policies.
The standard commercial general liability (CGL) policy provides no coverage with respect to joint ventures that are not listed on the policy; therefore, JV participants will have no coverage under their own policies for liabilities arising out of the JV unless they take proactive steps to include all current and past joint ventures as insureds on the policy. To avoid the possibility of oversights that can produce coverage gaps, contractors can request a blanket joint venture coverage endorsement that provides coverage on an excess basis over policies written specifically for the joint venture. In this way, the contractor receives the full benefit of the coverage provided by the joint venture and also has protection under its own policy after the JV's coverage expires or is exhausted by claims.
Note that the coverage granted by this endorsement applies only to the named insured contractor; neither the joint venture itself nor other participants have coverage under the named insured contractor's policy. However, to reduce the possibility that this policy becomes the sole source of recovery for a claim, the JV agreement should require the other participants to also arrange joint venture coverage on their CGL policies.
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