Number Covered By Workers’ Comp Makes Big Decline

December 16, 2011

A new report from the National Academy of Social Insurance found that the number of workers covered by workers’ compensation dropped by 4.4 percent in 2009. That’s the biggest decline in two decades. Employer costs for benefits fell by 7.6 percent to $73.9 billion, which is due to the overall decline in jobs.

The main reason for this drop is the decline in employment, according to officials. “As one might expect, when the Great Recession hit, employers paid less in workers’ compensation costs because there were fewer workers to cover,” said John F. Burton, Jr., chair of the panel that oversees the report. “Although

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Why Professional Indemnity Insurance is a must have for Consultants and Advisers

December 14, 2011

As redundancies increase and work becomes harder to come by many people will consider the option of starting their own business as a means of insuring their future is in their own hands.

Recession has a habit of throwing up new genres in the service sector, encouraging budding entrepreneurs to gain the credentials required to take up a new challenge often in a consultancy capacity to other businesses and the public.

Past recessions saw a whole market grow out of nothing as ISO Accreditation became the latest must have for any business that intended to go places, and previous to that there was a huge growth in the number of Financial Advisers offering their services.

With the right credentials it is possible to start up a new business relatively cheaply by working from home and keeping overheads to a minimum.

However, one thing that should not be overlooked by anyone intending to offer advice and service on a consultancy basis is a good Professional Indemnity Insurance.

This is an essential insurance product for anyone offering advice and consultancy as it protects your business from potential financially crippling and possibly reputation damaging claims from dissatisfied clients.

While no-one in their right mind would go out of their way to set up a business that makes false claims, mistakes can and do happen and Professional Indemnity Insurance will give you peace of mind by protecting your business in a number of ways.

  • It will cover you if you make a mistake in the professional services you have provided that leads to a dispute with a client.
  • The Indemnity insurance policy will also cover the cost of fixing any mistake on your part, thus avoiding a larger claim being made.
  • You are also protected if you lose or damage any clients documents in your care or if one of your employees are involved in the theft of a clients money.
  • Intellectual property: unintentionally infringing on others copyrights, trademarks, broadcasting rights, any act of passing off
  • Loss of documents/data: damaged, lost or stolen data and documents belonging to your clients
  • Dishonesty: liability arising from the theft of your clients money
  • Negligence: or breach of duty of care

These are just some of the benefits of , but packages are tailored to suit individual businesses, professions and occupations.

Whatever you do, be wary of offering advice or consultancy without the relevant insurance in place.

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Farmers Settles Class-Action Lawsuit over Medical Payments

December 13, 2011

An Oklahoma court has approved a settlement in a nationwide class action lawsuit filed by Farmers Insurance auto policyholders who claim the company shortchanged them on claims for medical expenses filed in the wake of auto crashes.

Under the terms of the settlement, approved earlier this week by the District Court of Canadian County, the insurer has agreed to pay four named plaintiffs $7,500 each for representing the class and to cover $6.5 million in attorney fees and other costs, but does not admit any wrongdoing.

The plaintiffs had alleged that Farmers improperly failed to pay reasonable medical expenses because of the company’s use of “certain systems and procedures” for claims adjustment in payment of medical benefits.

“We are pleased to have been able to resolve this matter with plaintiffs,” Jerry Davies, a Farmers spokesman in Los Angeles, said in an email Friday. Davies wo

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Thankfully, Kroener May Not Be the Last Word on Late Notice Insurance Claims

December 8, 2011

Is there a specific period of time in which insurance claims must be made before they are barred as a matter of law? In , Shaun Marker focused on one sentence fragment from the recent Florida case of , 63 So. 3d 914 (Fla. 4th DCA 2011), which appears to have turned the issue of notice of Florida insurance claims on its ear. That sentence says:

[A]s a matter of law, notice to the insurer of a claim of loss more than two years and two months after the loss occurred was not prompt notice; the untimely reporting of the loss violated the insurance policy and was sufficient to bar the claim.

It is no surprise that insurance defense attorneys and even some judges have latched on to this sentence fragment.

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Know when to submit a claim to your auto insurance company

December 5, 2011

When you are involved in a car accident or your car is damaged in some way, your first instinct might be to contact your insurance company to report a claim. After all, this is what you pay insurance premiums for, right? Not necessarily. You may want to reconsider before you pick up the phone to report a potential claim.

Insurance companies report all claim payments to a national database known as the Comprehensive Loss Underwriting Exchange, or C.L.U.E. In turn, the same system is used by insurers to review the loss history of a prospective client.

Whether the insurance company paid one dollar or one million dollars, it will show on the C.L.U.E.

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