Workers Compensation
Important Notice of Change in Coverage and Premium
Public Chapter 1041 – Coverage and Premium for Sole Proprietors, Partners and LLC Members in the Construction Industry
Tennessee law requires that individuals engaged in the construction industry carry workers' compensation insurance for their workers. The policy you have and the premium you pay will likely change effective December 31, 2009. On this date, sole proprietors and partners in the construction industry must carry workers' compensation insurance on themselves, even if they are independent contractors.
There is only one limited exception to the law according to the Department of Labor and Workforce Development. A sole proprietor or partner in the construction industry (with no employees) does not have to cover themselves if they are only getting paid directly by the property owner. This exception applies only if the individual is working directly for a property owner. (If he/she works for a commercial entity such as a condominium association or mall, then that individual is required to carry worker’s compensation coverage.) Please note: If you are a sole proprietor or partner doing any work as an intermediate contractor or subcontractor, then this limited exception does not apply.
In all other circumstances, sole proprietors and partners must carry workers' compensation insurance on themselves and on any of their workers who are not otherwise covered by a workers' compensation insurance policy.
In Tennessee, Limited Liability Companies (LLCs) are recognized as partnerships for workers' compensation coverage purposes.
Your current policy will be automatically adjusted to include the newly required coverage, effective on December 31, 2009. This may be accomplished either by an endorsement to the policy or at audit.
Premium
For the construction industry, premium determination for each partner and sole proprietor is based on the actual payroll amount (when qualifying tax forms are supplied), subject to the minimum and maximum payroll amounts for partners and sole proprietors. The minimum and maximum amounts are as follows (effective 3/1/2011):
The minimum annual payroll for sole proprietors and partners is $9,950;
The maximum annual payroll for sole proprietors and partners is $58,500.
Please contact our office to discuss the details of your specific circumstances and the impact this change may have on you and your business.
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Teenage Drivers
Remind your child, driving is a privilege and not a right!
Did you know:
16 year old drivers are in the highest rated category of drivers for insurance purposes…..
Why? Youth and inexperience! According to insurance statistics, if you’ve had your license for 3 years or less, the chance you will be involved in an accident is considerable. DID YOU KNOW? Insurance Companies charge for this statistical data on the front end…. betting teenagers will have an accident.
Some of the most frequent claims due to inexperience include: Pulling the vehicle out in front of someone… Rear ending another vehicle… Hydroplaning in the rain… Parking lot fender benders…
Why? Inexperience, problems judging distance and road conditions, speeding and distraction such as cell phones, the radio and or a passenger. Even if your child volunteers as a sober driver, she or he will also receive an Open Container Violation if another teenager has an open container in the vehicle.
Never drink and drive or let others in your vehicle drink!
Insurance follows the car and not the driver. If you lend your vehicle to a friend who then has an accident in your vehicle, your policy pays out first, to your policy limits. You might also be added into any further judgments as well.
Citation: http://www.travelers.com/personal-insurance/auto-insurance/docs/tips-for-teen-drivers.pdf
Please familiarize yourself with the open container law and talk to your child about this. Also explain the consequences of a DUI. Let them know about the expense of a DUI and what it means to have an SR22 on your record. For more information on this go to:
http://www.tennessee.gov/safety/forms/drunkdrivebroc.pdf
http://www.tennessee.gov/safety/duifacts.htm
The Statistics
- 25% of all teen accidents involve speeding.
- Alcohol is responsible for almost half of all teen motor vehicle deaths…in July 2003 the legal limit went from .10 to .08. Never get in car with someone who has been drinking.
- Half of all teenage traffic fatalities occur between 6:00 P.M. on Friday and 3:00 A.M. on Sunday…. CURFEWS exist for a reason. Remember, this is the time when it is most difficult to see the road and the highest numbers of other drivers who are tired and or intoxicated are on the road.
- In one year, American drivers 19 and under were involved in close to 3,000,000 motor vehicle accidents. Davidson County’s population in a 2002-2003 census is ONLY 569,891!
- Auto accidents are the #1 killer of our nation’s youth.
- Tickets will impact premium…. many companies consider speeds of 16 miles or over a MAJOR violation. Excessive tickets, which can be as few as two per household with certain companies could result in cancellation ….DUI or reckless driving with a youthful…immediate cancellation. Please see the points chart on the final page.
- PARENTS - TALK TO YOUR CHILDREN…. with driving comes a huge responsibility not only to themselves personally, but also to your family…. touch on liability issues and umbrella policies. Also, come up with a DRIVING CONTRACT for your child and review this contract. Give us a call at #383-9061 if you would like to see sample contracts adapted by insurance carriers for their clients.
Ways To Reduce Premium
- Purchase an older car (BUT one that is in good working condition) to eliminate the need for comprehensive and collision coverage
- Take driver’s training
- Look into Good Student Credits
- Increase Deductibles
- Some college students can receive a reduced rate if he or she is included as a driver on the parent’s policy but away at school 100 miles or more without a car.
- REVIEW Youthful Driver Questionnaires
Citation: Travelers for teens: http://www.travelers.com/personal-insurance/auto-insurance/docs/tips-for-teen-drivers.pdf
Review Your Cars
Bigger is better, but make sure your child can safely handle the size car he or she drives. The rollover factor with trucks and SUVs is high, so sometimes a large car is a good option. Also, look at the used car rating statistics and vehicle safety reports through the institute for highway safety and www.msn.com car information.
One thing to think about, some parents surprise their child with a car on his or her birthday. Instead try purchasing the car several months in advance and help your child practice driving the vehicle. Also, when driving show your children how to properly navigate tricky intersections, stops and heavy traffic areas. Explain to him or her how some people by mistake or intentionally violate traffic laws and drive recklessly in these areas.
Teach your child that there is no better protection than defensive driving!
For more information on safe cars and other information please go to
Citation: http://www.iihs.org/
What To Do In Case Of Accident
Tell your child to always call the police; young drivers can be intimidated out of this important step. Don’t forget to carry an insurance ID card too. This is the law in Tennessee now and forgetting to carry this card can result in a fine and may be as severe as a license suspension.
Be sure to give your teenager a “what to do in an accident card”. Any agent should have these available to give out to teenage drivers.
Watch out for: Cell phones, CD changers, the radio, eating in the car and friends in the car.
Please talk to your child about not using the cellphone while driving. Unless it is an emergency a call can wait until you have arrived at your destination.
Some parents put the CD changer in the back of the vehicle to avoid changing while driving. The radio is also a hazard. It only takes one second of looking down to cause an accident. At least have an agreement where the radio/ cds are only changed when the car is at a COMPLETE stop.
No eating in the car, the car is not a restaurant.
Citations: http://www.travelers.com/personal-insurance/auto-insurance/docs/tips-for-teen-drivers.pdf
http://www.iii.org
The Graduated License
Highlights of restricted license for 16-year-old driver:
- One passenger in the car for the first year of driving, unless the passenger is 21 years of age or older and or a sibling (sibling can be under 21)
- All siblings from same household may be transported to school only with a permission note
- No driving between 11:00pm and 6:00am unless accompanied by a parent or legal guardian 21 or over with a valid license. You may drive to and from work or for a school function with a valid permission note
- A forged approval note/permission note will result in the driver remaining on learner’s permit status until age 18
- All passengers and the driver must be seat belted
- Driver must maintain a safe driving record with 6 points or less: cannot contribute to an accident, and cannot get a second seat belt violation or a second moving violation in order to move to the next level
- If a driver receives 6 points or more, or a second seat belt violation, they must remain under this restricted program for an additional 90 days
- Involvement in a fatal accident will result in the driver remaining on learner’s permit status until age 18
Citation: http://www.state.tn.us/safety/driverlicense/gdl.htm
MOST IMPORTANTLY…Parents… purchase an Umbrella Policy.
Umbrella Policies are inexpensive for their value and provide you with added protection in the event the event you or your child is found negligent in an accident resulting in damage and or injury.
Think of an Umbrella Policy as Catastrophic Coverage
Umbrella policies come in increments of 1 million dollars
Umbrella policies pay defense costs
Point Charges
6-15 miles over ………. 3 points
16-25 miles over ……... 4 points
26-35 miles over ……... 5 points
36-45 miles over ……... 6 points
46 and over …………... 8 points
Accidents….
Property damage accidents…..3 points
Bodily injury accidents ……... 4 points
Fatality ……………………… 8 points
Citation: http://www.state.tn.us/safety/juvenile.htm
For more information go to:
The Institute for Highway Safety: http://www.iihs.org/
The Insurance Information Institute: http://www.iii.org/
Progressive Insurance: http://www.progressive.com/
Travelers Insurance: http://www.travelers.com/
Graduated Drivers License Info: http://www.state.tn.us/safety/driverlicense/gdl.htm
DUI: http://www.tennessee.gov/safety/duifacts.htm
Road conditions: http://www.tdot.state.tn.us/tdotsmartway/default.htm
Travelers for teens: http://www.travelers.com/personal-insurance/auto-insurance/teen-driver/index.aspx
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Preventative Maintenance
Stop Water Backup Damage Before It Occurs
Each year the backup of sewers and drains causes millions of dollars of losses to homeowners.
If you are concerned about Water Back Up of Sewer and Drain Insurance Coverage please call Wade & Egbert Insurance Agency at 383-9061.
No one ever wants to experience the inconvenience, expense and damage of a water loss. To prevent a loss from occurring, it is important to check your home each year. The following measures are easy safeguards that could save you time and money:
Making Sure Your Drainage System Works Properly
A. Have your gutters and downspouts checked annually or semi-annually. Downspouts should extend several feet or more away from the foundation to prevent shifting and leakage into basement walls. Gutter extensions can be purchased at any local hardware store. Also make sure that gutters are free of leaves and debris. The installation of gutter guards is an excellent measure to prevent backups within the gutter.
B. If gutters connect to storm sewers, make sure to keep drain lines clear.
C. Several different types of anti-backflow devices are available for installation into sewer and /or drain lines in the basement of your home. The costs to install this device depends on the plumbing in your home and the difficulty of installation. A qualified plumber can assist you in determining your specific needs.
D. Installation of a Sump Pump or a Skimmer Pump (for smaller problems) can also prevent basement flooding.
E. Grade your yard so that the earth slopes away from the house.
F. Watch what you put down the drain!
Never pour grease down a drain. It solidifies in either the drain, property owners line or main sewer.
Paper products do not deteriorate quickly and should be disposed of in the garbage.
If it has a rind, it doesn’t go down the disposal. Porous substances, even small chicken bones, can be processed by your disposal. Never put artichokes, lemons, oranges, limes or onions down a disposal though. These food are difficult if not impossible for the disposal to breakdown.
G. Examine tree and shrub roots around sewer lines. Trees and shrubs seeking moisture often make their way into cracked sewer lines. Eventually these roots can grow and break the line causing a backup of debris, but there are ways to prevent this.
Watch where greenery is planted and have roots trimmed if necessary.
A. Old or damaged pipes can be replaced with new plastic pipes, which are not prone to crack. Check with a plumber before purchasing replacement parts yourself. A good plumber has access to better quality pipes and plumbing pipes than those found in most home stores.
B. Copper sulfate products can also be purchased to kill roots, but these products should be used with extreme caution.
What Immediate Action Should You Take in the Event of a Loss?
REMEMBER: In the event of serious damage enlist the help of professionals as soon as possible. It always helps to have the job done correctly as soon as possible.
- Take photos before the clean-up, during the clean-up and after all repairs are complete.
- Itemize any property losses
- Wet-vacuum and /or remove spillage
- Mop the floors and wipe the damaged walls with soap and disinfectant
- Flush out and disinfect plumbing fixtures
- Clean or remove drapes and carpets. Repair or remove wall board or wall covering
- Clean up appliances and ductwork.
For more information, please call (615)383-9061. We will be happy to answer any additional questions.
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Commercial Insurance - Minimize Your Company's Exposure
by Bill Egbert
Commercial insurance plays an important role in the success of any business by insulating the business from risk and protecting its financial position. A sound insurance and risk management program enables businesses to move forward with plans for growth and development in an uncertain world.
When companies review their Commercial Liability Exposure, there are several areas that are overlooked. That can become a serious risk for any business. A Commercial General Liability Policy covers bodily injury and property damage. But what about the intangible risks of neglect, errors and omissions or even discrimination and harassment?
In reviewing your commercial liability policy, be sure and check into Employee Benefits Liability (EBL) and Employment-Related Practices Liability (EPL) coverage to see if it’s something you need to add to reduce your exposure. (Note: coverage may vary by insurance carrier).
EBL is designed to insure your company against negligent acts, errors or omissions committed by you or any person whose acts you are legally responsible for while engaging in the administration of your company’s benefit plans. EBL protects the insured employer against claims by employees or former employees resulting from negligent acts or omissions in the administration of the insured’s employee benefits program.
The term “employee benefits program” is defined to include group life insurance, group accident and/or health insurance, profit sharing plans, employee stock subscription plans, workers’ compensation, unemployment insurance, social security benefits, disability benefits, etc. Coverage is intended to extend to the “administration” of these plans including counseling employees, interpreting employee benefits programs, handling records and enrolling/terminating/canceling employees in specified plans on a timely basis.
An example of EBL coverage would be forgetting to offer an employee COBRA insurance coverage at the time they leave your organization. You could be held liable for this and EBL coverage would apply here.
EPL is designed to protect against lawsuits by employees against employers for wrongful employment practices. Such claims include allegations of wrongful refusal to hire, wrongful termination, sexual harassment or discrimination based on age, race, ethnicity or disability as well as other specified employment related exposures.
This policy also responds to claims by employees for retaliation against workers for participating in legally protected activity. EPL does not cover bodily injury or property damage, but responds to employees’ economic losses as well as mental anguish. EPL is gaining in popularity both within and outside the U.S. Third Party EPL and Punitive Damages Coverage are also important to consider with this coverage. (State Specific).
Many people don’t fully understand specific insurance issues. That’s why in a world of insurance red tape, consider us your scissors.
Bill Egbert is executive vice president at Wade & Egbert Insurance Partners.
He can be reached at billegbert@wade-egbert.com.
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Umbrella & Excess Policies: How Much Do You Have To Risk?
by DeeDee Wade
You don't have to be a millionaire to be sued like one. The fact is; a single lawsuit - even if you win - can end up costing hundreds of thousands of dollars. And the greater your assets, the more you potentially have at risk. Think about some of these possible scenarios.
As you turn a corner in your car, you accidentally injure a successful entrepreneur in the crosswalk. Medical costs, lost earnings and damages amount to millions. You are responsible.
A guest at your son's pool party — a 16-year-old boy — dives unknowingly (and unwarned) into the shallow end of your pool, and suffers devastating paralysis and injuries. You are responsible.
You're having a wide-screen television delivered to your home, and one of deliverymen slips and falls on your icy steps and breaks his leg. You are responsible.
You volunteer on the board of directors of your condominium association. The board installs a playground with a faulty swing and a fellow association members’ child is injured. You are sued as a board member.
All of these situations could result in a judgment greater than your underlying personal liability limits and this is where your personal umbrella or excess liability policy comes into play. So first of all, what is the difference between a personal umbrella policy and an excess liability policy?
In theory, an "Excess Liability" policy is distinguished from an "Umbrella" policy in that the umbrella policy affords excess liability coverage and applies to certain areas that are not covered by underlying policies. Generally, excess liability coverage is not broader than the underlying primary coverage. That said, both policies serve a purpose and the excess policy may be just as good as the umbrella policy if your insurance carrier has broad underlying limits. This is a situation where it is important to check with your agent and make sure you have all the necessary liability coverage.
Here are some important points to consider when purchasing a personal Umbrella policy:
Does the policy cover you for personal injury coverage? This coverage can apply if you are responsible for someone being injured on your property, and if you are sued for libel, slander or negligent infliction of emotional distress.
If you serve on a board does the policy cover not-for-profit directors and officers coverage? This coverage can respond if you are sued for personal injury or property damage resulting from your volunteer service on the board of a not-for-profit corporation or organization.
Is Uninsured/Underinsured motorist protection available under this policy? If you are injured by an uninsured or underinsured motorist in the U.S. or Canada - or if you suffer property damage from an uninsured driver - this optional coverage could apply. It is always a good idea to ask your agent if this coverage is available for you.
If you travel outside the U.S., is worldwide automobile rental something you would need? Rent a car on vacation or business - anywhere in the world - and some carriers will automatically cover you for personal injury or property damage for up to 90 days.
Does your policy cover defense costs? If the circumstances of a lawsuit are covered, see if your policy covers you for legal defense costs and provides access to legal counsel.
Many people don’t fully understand specific insurance issues. That’s why in a world of insurance red tape, consider us your scissors.
DeeDee Wade is vice president at Wade & Egbert Insurance Partners.
She can be reached at deedeewade@wade-egbert.com.
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Identity Theft Restoration Insurance
by DeeDee Wade
Have you received your letter yet from the Davidson County Election Commission notifying you that there was a breach of security in the Election Commission and that your personal information “is reasonably believed” to have been acquired by an unauthorized person? If you’re a registered voter in Davidson County, you’ve likely received this alarming news.
So, what do you do now? At Wade & Egbert, we have been fielding phone calls from our insurance clients asking just that. A simple and inexpensive addition of Identity Theft Restoration Insurance to your personal insurance policy can provide you with coverage. Some carriers such as Chubb and Firemans Fund automatically provide this coverage at no cost, in most states. We suggest you check with your homeowners insurance carrier to see if this coverage is included.
Carriers also partner with various Identify Theft restoration organizations to assist clients. If your security information has been breached, people often cannot begin the road to recovery without valid identification and other personal records.
These services will help you resolve credit and other problems in the event of identity theft or fraud. Firms assign a personal advocate to guide a victim through the complicated process. This advocate can assist with the completion of a Federal Trade Commission affidavit; place calls to police departments, creditors and credit rating agencies; and set up a case file for insurance claims and law enforcement investigations. In addition, victims will receive a full-year of credit and fraud monitoring. In certain states, they may be able to prevent further credit damage by freezing credit files. Generally, the coverage reimburses identity theft victims up to a certain amount of the following:
1. Lost wages as a result of time taken off work to deal with fraud.
2. Notary and certified mail charges for completing and delivering fraud affidavits.
3. Fees to re-apply for loans that were denied as a result of the theft.
4. Long distance telephone charges for calling merchants, law enforcement agencies or credit grantors to discuss the theft.
5. Attorney fees incurred, with your carrier’s prior consent, for: Defending suits brought incorrectly by merchants or collection agencies.
6. Removing criminal or civil judgments wrongly entered against the victim.
7. Challenging information in a credit report.
8. Additional coverage for spouse, family, a lost wages enhancement of up to a certain amount depending on the carrier.
9. Through the Identity Theft Recovery Unity, Intersections perform the following to assist the victim:
- Obtains a 3-in-1 credit report
- Documents event and history with the victim
- Assists in placing fraud alerts with major credit reporting agencies
- Provides contact information for future calls
- Completes dispute letters on the victim’s behalf
- Enrolls the victim in 6-months of daily credit monitoring
- Provides a Fraud First Aid Kit which includes tips, credit reporting agency information and history tracking template
- Pre-populated letters to creditors.
Many people don’t fully understand specific insurance issues. That’s why in a world of insurance red tape, consider us your scissors. DeeDee Wade is vice president at Wade & Egbert Insurance Partners.
She can be reached at deedeewade@wade-egbert.com.
We would like to thank Chubb, Travelers and Firemans Fund for providing data and information on this topic.
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Your Christmas List For Protecting Valuable Gifts
by DeeDee Wade
It’s the holiday season and time to think about gift giving. Protecting newly purchased valuables, especially fragile and expensive works of art, antiques or collectibles, can be particularly challenging. Here are some tips that may help ensure that when you ship or store valuables they will remain intact and you avoid an insurance claim.
If sending a large item and it must be shipped, hire expert movers. Most people check references and ask if their mover has experience in packing and moving specific types of objects. Unfortunate people often fail to inquire if their mover will transport their possessions on climate-controlled trucks with air-ride shock absorbers that minimize road vibration. Depending on the type of valuable you are moving, these factors may be very important.
Make sure the shipper packs the item. In most cases, moving companies are liable only for items they pack.
If you purchase art and furniture, check all objects for damage and repair them prior to shipping or storing.
Handle object carefully. Small or light objects may be moved around your home in a padded tray or basket.
Lift larger items or furniture by the base or body, never by handles, limbs or legs. Framed artwork should be moved in a vertical position by handling a secure area of the frame. Take special precautions to avoid touching the front or back surfaces of a painting or drawing.
Determine appropriate shipping containers. Many valuable items should not be packed in cardboard cartons. Museum-quality crates should be specifically constructed for each item. These crates are shock-absorbent, water-resistant and tamperproof.
Select appropriate packing materials. Wrap small objects and sculptures in acid-free paper, not newsprint. Tape the wrapping closed so it doesn’t ravel. Fill in the crate or carton with packing material to prevent damage during shipping. You can find these at local packaging stores.
If you store a valuable item, keep it in a safe place. Like your movers, the warehouse you select should specialize in antique and fine arts storage. The facility needs to offer a high level of security, fire protection and water protection and should be well maintained. A musty warehouse may indicate mold, mildew or fungus. Make sure that loading dock doors are protected and motion sensors are installed. In addition, guests should be required to sign in and out and should have a computerized inventory system.
Check insurance coverage. The liability of movers is often quite limited. Find out what type of insurance they carry by requesting a certificate of insurance. Prior to your move, check with your agent and broker to find out if your homeowners or other insurance policies cover “goods in transit.”
While in your possession, you may want to specifically schedule this item with your insurance carrier for peace of mind. With this agreed-value approach, you receive the itemized amount with no deductible or depreciation in the event of a total covered loss up to the amount of itemized coverage for that category of valuable articles. Depending on the carrier, you may receive worldwide coverage on these items and will receive mysterious disappearance protection.
Finally, the best way to ensure the safe arrival of valuable art antiques and jewelry, you should always use a specialty shipper such as FedEx White Glove Service and AIT Worldwide.
Many people don’t fully understand specific insurance issues. That’s why in a world of insurance red tape, consider us your scissors.
DeeDee Wade is vice president at Wade & Egbert Insurance Partners.
She can be reached at deedeewade@wade-egbert.com.
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