Contact us for all your Insurance needs! (321)725-1620
Bob Lancaster Insurance
Serving Florida since 1964
Monday, March 14, 2016
Bob's Rules of Insurance – Rule 6 – Your Relationship With Your Agent Is Key
The most important part of the insurance transaction is an insurance buyer’s relationship with his insurance agent. It must be based on mutual trust and respect. You should view your agent as a professional, an advisor, a confidant. If trust and respect are at all missing, it’s time to start looking for a new agent.
Wednesday, March 9, 2016
WORK COMP WEDNESDAY - A Contractor's Guide to Workers' Compensation
In Florida, businesses involved in the construction industry are subject to some different rules and regulations when it comes to workers' compensation coverage. As a service to our insureds who are in the construction industry, Bob Lancaster has put together this list of common questions and answers.
What kinds of business are classified as "construction"? The Florida Division of Workers' Compensation publishes the official list of class codes the state considers to be in the construction industry.
What are the workers' comp requirements for a business in the construction industry? If you are in the construction industry, Florida law requires you to have an active workers' comp policy OR a valid exemption from workers' comp. If you have and exemption on yourself as an owner of the company and you have even one employee, you must also have a workers' comp policy to cover those employee(s). Every person working on a construction site in Florida must be covered by a workers' comp policy or have a valid exemption, including individuals you may bring onto the jobsite for a short time "just to help out."
What's an exemption and how does it work? An exemption excludes you as a business owner from having to buy workers' comp insurance for yourself, which means you are not eligible to receive workers' comp benefits if you are hurt on the job. Exemptions are valid only for the person and the company name listed on the exemption. In the construction industry, only individuals who own 10% or more of a corporation or limited liability company are eligible to receive an exemption. Non-owner employees are not eligible for an exemption.
How can I obtain workers' comp or an exemption? To inquire about workers' comp coverage you can contact out office at (321)725-1620. To apply for an exemption from workers' comp coverage, go to the Division of Workers' Compensation's website at MyFloridaCFO.com/division/wc and click on the box that says "Apply for an exemption". Construction-industry exemptions cost $50 and must be renewed every 2 years.
What if I hire a subcontractor? Under Florida law, you are responsible for making sure all of your subs either have their own workers' comp policy or have a valid exemption from worker' comp. If you discover that your sub is out of compliance with workers' comp requirements (i.e., their exemption has expired or their policy has been cancelled by their insurance company), you should insist that they correct the problem before you allow them back on the jobsite. If you allow someone to work on the jobsite without proper coverage or a valid exemption, your insurance company will charge you the premium for them and your insurance may be cancelled. You also expose yourself to potential fines from the Division of Workers' Compensation.
If your company has a workers' comp policy or a valid exemption from workers' comp? If your sub has a workers's comp policy, you should first ask him for a Certificate of Insurance (COI) that will show the name of the insurance company issuing the policy, along with the policy number and the policy period. You should read the COI carefully to make sure it shows workers' comp coverage and not just another line of insurance such as general liability. If your sub has an exemption, you should ask for a copy of his exemption certificate and make sure it's current and has the proper business name on it. It should also list when the exemption is set to expire (exemptions expire every 2 years).
However, you should not rely only on COIs or exemption cards from your subs. Insurance policies can be cancelled mid-year if the premiums aren't paid, and exemptions expire every 2 years. If this happens to one of your subs, you will be at risk.
The best way to protect yourself is to independently verify the information you get from your subs by using two free databases maintained by the State of Florida. The first database is the Proof of Coverage database; it lists all businesses in Florida who have a workers' comp insurance policy, as well as all individuals who have an exemption. You can search by employer name, Federal Employer Identification Number (FEIN), policy number or the exemption holder's social security number. You will be able to see the policy information for your subcontractor, including when the policy expires, and the governing class code being reported for the policy. For your subs with exemptions, you will be able to see proof of their exemption and when it is set to expire.
The second database is the Florida Construction Policy Tracking Database. By entering the information for all your subcontractors, you can track your subs' policies and/or exemptions. If you sign up, the database will send you an email if a policy is cancelled or if an exemption expires, so that you can stop using that sub until they get the proper coverage.
To access these databases, go to MyFloridaCFO.com/division/wc and click on "Databases." Then either click on "Proof of Coverage Database" or "Construction Policy Tracking Database."
Why is it important that I file my company's Annual Report with the State of Florida every year? Corporation and LLC's must file and Annual Report with the State of Florida before May 1st of every year. Companies that do not file their Annual Report are administratively dissolved by the state, and their owners can have their workers' comp exemptions taken away. Go to the Secretary of State's website at Sunbiz.org for more information.
What are the requirements for out-of-state construction businesses doing work in Florida? An out-of-state construction business doing work in Florida must either obtain either a Florida workers' comp policy or a Florida endorsement to their out-of-state policy to cover their operations in Florida. Out-of-state companies cannot legally work in Florida without paying Florida workers' comp rates.
What kinds of business are classified as "construction"? The Florida Division of Workers' Compensation publishes the official list of class codes the state considers to be in the construction industry.
What are the workers' comp requirements for a business in the construction industry? If you are in the construction industry, Florida law requires you to have an active workers' comp policy OR a valid exemption from workers' comp. If you have and exemption on yourself as an owner of the company and you have even one employee, you must also have a workers' comp policy to cover those employee(s). Every person working on a construction site in Florida must be covered by a workers' comp policy or have a valid exemption, including individuals you may bring onto the jobsite for a short time "just to help out."
What's an exemption and how does it work? An exemption excludes you as a business owner from having to buy workers' comp insurance for yourself, which means you are not eligible to receive workers' comp benefits if you are hurt on the job. Exemptions are valid only for the person and the company name listed on the exemption. In the construction industry, only individuals who own 10% or more of a corporation or limited liability company are eligible to receive an exemption. Non-owner employees are not eligible for an exemption.
How can I obtain workers' comp or an exemption? To inquire about workers' comp coverage you can contact out office at (321)725-1620. To apply for an exemption from workers' comp coverage, go to the Division of Workers' Compensation's website at MyFloridaCFO.com/division/wc and click on the box that says "Apply for an exemption". Construction-industry exemptions cost $50 and must be renewed every 2 years.
What if I hire a subcontractor? Under Florida law, you are responsible for making sure all of your subs either have their own workers' comp policy or have a valid exemption from worker' comp. If you discover that your sub is out of compliance with workers' comp requirements (i.e., their exemption has expired or their policy has been cancelled by their insurance company), you should insist that they correct the problem before you allow them back on the jobsite. If you allow someone to work on the jobsite without proper coverage or a valid exemption, your insurance company will charge you the premium for them and your insurance may be cancelled. You also expose yourself to potential fines from the Division of Workers' Compensation.
If your company has a workers' comp policy or a valid exemption from workers' comp? If your sub has a workers's comp policy, you should first ask him for a Certificate of Insurance (COI) that will show the name of the insurance company issuing the policy, along with the policy number and the policy period. You should read the COI carefully to make sure it shows workers' comp coverage and not just another line of insurance such as general liability. If your sub has an exemption, you should ask for a copy of his exemption certificate and make sure it's current and has the proper business name on it. It should also list when the exemption is set to expire (exemptions expire every 2 years).
However, you should not rely only on COIs or exemption cards from your subs. Insurance policies can be cancelled mid-year if the premiums aren't paid, and exemptions expire every 2 years. If this happens to one of your subs, you will be at risk.
The best way to protect yourself is to independently verify the information you get from your subs by using two free databases maintained by the State of Florida. The first database is the Proof of Coverage database; it lists all businesses in Florida who have a workers' comp insurance policy, as well as all individuals who have an exemption. You can search by employer name, Federal Employer Identification Number (FEIN), policy number or the exemption holder's social security number. You will be able to see the policy information for your subcontractor, including when the policy expires, and the governing class code being reported for the policy. For your subs with exemptions, you will be able to see proof of their exemption and when it is set to expire.
The second database is the Florida Construction Policy Tracking Database. By entering the information for all your subcontractors, you can track your subs' policies and/or exemptions. If you sign up, the database will send you an email if a policy is cancelled or if an exemption expires, so that you can stop using that sub until they get the proper coverage.
To access these databases, go to MyFloridaCFO.com/division/wc and click on "Databases." Then either click on "Proof of Coverage Database" or "Construction Policy Tracking Database."
Why is it important that I file my company's Annual Report with the State of Florida every year? Corporation and LLC's must file and Annual Report with the State of Florida before May 1st of every year. Companies that do not file their Annual Report are administratively dissolved by the state, and their owners can have their workers' comp exemptions taken away. Go to the Secretary of State's website at Sunbiz.org for more information.
What are the requirements for out-of-state construction businesses doing work in Florida? An out-of-state construction business doing work in Florida must either obtain either a Florida workers' comp policy or a Florida endorsement to their out-of-state policy to cover their operations in Florida. Out-of-state companies cannot legally work in Florida without paying Florida workers' comp rates.
Contact us for all your Insurance needs! (321)725-1620
Bob Lancaster Insurance
Serving Florida since 1964
Monday, March 7, 2016
Bob's Rules of Insurance – Rule 5 – To Get Great Rates You Must Be Attractive To Insurers
Getting good rates, in part, depends on you. Put your best face forward to your insurance company (current and potential). Show them you are a quality risk by having policies and procedures in place to control losses and manage claims.
Ask your agent what issues are worrisome to insurers? Find out what you can do to minimize those concerns.
Ask your agent what issues are worrisome to insurers? Find out what you can do to minimize those concerns.
Contact us for all your Insurance needs! (321)725-1620
Bob Lancaster Insurance
Serving Florida since 1964
Monday, February 29, 2016
Bob's Rules of Insurance – Rule 4 – Insurance Is A Process, Not An Event
Rule 4 – Insurance is a process, not an event.
Managing your insurance is not just about your policy renewals. As your business changes, your insurance must change.
Your insurance is determined by your exposures.
Certainly the renewal process is important. However, there needs to be a regular chance to review and update coverage during the policy year.
You buy insurance as a part of a plan to manage risks – insurance does not create risk – insurance is a tool to mitigate the impact of risk. For example, you have the exposure of employees causing an accident while driving their personal car on company business. You transfer that risk to your insurer when you buy non-owned auto insurance.
As your exposures evolve, your insurance should evolve.
Open claims should be reviewed at least quarterly. Halfway through your workers’ comp year, you need to push adjusters to reduce open claim reserves.
Monthly walk-throughs help to identify hazards that have developed.
If nothing else, talk with your insurance advisor a few times a year to update him on changes you have made to your operation. You’ll also hear of emerging insurance issues – if your advisor is any good. You can get help with budgeting for the future.
Managing your insurance is not just about your policy renewals. As your business changes, your insurance must change.
Your insurance is determined by your exposures.
Certainly the renewal process is important. However, there needs to be a regular chance to review and update coverage during the policy year.
You buy insurance as a part of a plan to manage risks – insurance does not create risk – insurance is a tool to mitigate the impact of risk. For example, you have the exposure of employees causing an accident while driving their personal car on company business. You transfer that risk to your insurer when you buy non-owned auto insurance.
As your exposures evolve, your insurance should evolve.
Open claims should be reviewed at least quarterly. Halfway through your workers’ comp year, you need to push adjusters to reduce open claim reserves.
Monthly walk-throughs help to identify hazards that have developed.
If nothing else, talk with your insurance advisor a few times a year to update him on changes you have made to your operation. You’ll also hear of emerging insurance issues – if your advisor is any good. You can get help with budgeting for the future.
Contact us for all your Insurance needs! (321)725-1620
Bob Lancaster Insurance
Serving Florida since 1964
Monday, February 22, 2016
Bob's Rules of Insurance – Rule 3 – Preventing A Loss Is Better Than Being Insured
Rule 3 – Preventing a loss is better than being insured. Limiting a loss is the next best thing to preventing it.
I consider any loss as a failure in some system. Build operations and procedures to prevent and limit loss. Place backups. Create stop-gaps and fail-safes.
Inspect your electrical systems annually. Install water-usage alarms to notify you of a burst pipe. Test your evacuation plan. Install a security system. Build a video surveillance system. Perform regular inspections of your facilities. Look for unsafe conditions, hazards, maintenance issues.
In a heavy rain, inspect for water flow around your property. Where is water collecting? What could prevent water from draining away from your buildings?
Consider “what if” scenarios. What if our computer crashed? What if our main supplier shut down? What if we lost power for 5 days? What if our best customer cancelled?
Redundancy is an often overlooked tool. I have a home phone, cell phone, and Skype subscription so I am sure to be able to get and make calls. I backup my computers on-line to a server. I also backup my computers on a separate harddrive. Much of my work is online so I can work from almost anywhere.
Build a communications plan. Have an accessible, updated list of customers, employees, suppliers, and service providers.
Any disruption is expensive. Plan to prevent disruptions and to limit them.
I consider any loss as a failure in some system. Build operations and procedures to prevent and limit loss. Place backups. Create stop-gaps and fail-safes.
Inspect your electrical systems annually. Install water-usage alarms to notify you of a burst pipe. Test your evacuation plan. Install a security system. Build a video surveillance system. Perform regular inspections of your facilities. Look for unsafe conditions, hazards, maintenance issues.
In a heavy rain, inspect for water flow around your property. Where is water collecting? What could prevent water from draining away from your buildings?
Consider “what if” scenarios. What if our computer crashed? What if our main supplier shut down? What if we lost power for 5 days? What if our best customer cancelled?
Redundancy is an often overlooked tool. I have a home phone, cell phone, and Skype subscription so I am sure to be able to get and make calls. I backup my computers on-line to a server. I also backup my computers on a separate harddrive. Much of my work is online so I can work from almost anywhere.
Build a communications plan. Have an accessible, updated list of customers, employees, suppliers, and service providers.
Any disruption is expensive. Plan to prevent disruptions and to limit them.
Contact us for all your Insurance needs! (321)725-1620
Bob Lancaster Insurance
Serving Florida since 1964
Monday, February 15, 2016
Bob's Rules of Insurance – Rule 2 – Insurance Is For The Big Stuff
Rule 2 – Insurance is for the big stuff – you take care of small stuff.
Stuff happens. Life and commerce include ups and downs. Bumps in the road should be paid for out of your own pocket. Catastrophes is where insurance comes in.
Use deductibles to limit the involvement of the insurance company in minor losses.
Look to the other side of a loss – the total amount. Use deductibles to decrease premium and put that premium towards higher limits of coverage and broader perils. Consider adding coverage for events that are normally excluded, like flood and earthquake, that could be catastrophic.
Stuff happens. Life and commerce include ups and downs. Bumps in the road should be paid for out of your own pocket. Catastrophes is where insurance comes in.
Use deductibles to limit the involvement of the insurance company in minor losses.
Look to the other side of a loss – the total amount. Use deductibles to decrease premium and put that premium towards higher limits of coverage and broader perils. Consider adding coverage for events that are normally excluded, like flood and earthquake, that could be catastrophic.
Contact us for all your Insurance needs! (321)725-1620
Bob Lancaster Insurance
Serving Florida since 1964
Sunday, February 14, 2016
Jewelry Insurance Tips
Happy Valentines Day!
I was in a jewelry store the other day. The place was hopping! If you gave or got jewelry or just have questions about jewelry insurance, here are some tips.
-Most homeowners’ insurance policies include coverage for jewelry.
-Most home insurance limits coverage for jewelry to the limited perils – fire lightning, wind, hail, smoke, vandalism, vehicles, aircraft…
-Theft of jewelry is usually limited to $1,000 of coverage.
-Your standard deductible applies to jewelry claims.
-No coverage for breakage under most home insurance policies.
-Coverage can be expanded by listing the jewelry on a special “floater” policy.
-Specific jewelry insurance on a jewelry floater usually gives additional perils such as breakage – this usually included accidents like loss of the stone.
-Jewelry floaters usually have no deductible.
-Watches can be included in a jewelry floater.
-You must set the value of the item. If you say the value of the ring is $5,000 and, after a loss it is determined that the ring was actually $7,000, you only get the $5,000. Conversely, if the ring was worth $3,000, you only get the $3,000. Regular appraisals can avoid these problems.
-Antiques, fine arts, silverware, etc. can also be insured on a floater policy.
-CALL US to see how your policy works and what is available from your insurance company.
I was in a jewelry store the other day. The place was hopping! If you gave or got jewelry or just have questions about jewelry insurance, here are some tips.
-Most homeowners’ insurance policies include coverage for jewelry.
-Most home insurance limits coverage for jewelry to the limited perils – fire lightning, wind, hail, smoke, vandalism, vehicles, aircraft…
-Theft of jewelry is usually limited to $1,000 of coverage.
-Your standard deductible applies to jewelry claims.
-No coverage for breakage under most home insurance policies.
-Coverage can be expanded by listing the jewelry on a special “floater” policy.
-Specific jewelry insurance on a jewelry floater usually gives additional perils such as breakage – this usually included accidents like loss of the stone.
-Jewelry floaters usually have no deductible.
-Watches can be included in a jewelry floater.
-You must set the value of the item. If you say the value of the ring is $5,000 and, after a loss it is determined that the ring was actually $7,000, you only get the $5,000. Conversely, if the ring was worth $3,000, you only get the $3,000. Regular appraisals can avoid these problems.
-Antiques, fine arts, silverware, etc. can also be insured on a floater policy.
-CALL US to see how your policy works and what is available from your insurance company.
Contact us for all your Insurance needs! (321)725-1620
Bob Lancaster Insurance
Serving Florida since 1964
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