Risk Management for Condo Associations

Condo associations are responsible for the physical maintenance of their buildings as well as the financial management of their funds. Condo boards owe their memberships a fiduciary duty of care, so it’s imperative that they do everything reasonably possible to protect themselves and their memberships against risk.

Compliance

Many states have laws that regulate the governance and activities of condo associations. Ensuring compliance with all applicable law is an important part of managing condo risk.

Management

Even if a problem at a condo building is the fault of the management company that the association has hired, the association will ultimately be liable for damage to the property or claims made by its members. It’s essential that condos work with excellent property management companies.

Insurance

Condo associations need property insurance policies that address the full scope of their risk. In addition, they need general liability policies in addition to a directors and officers policy. D&O insurance will help to pay legal costs incurred by board members if an individual or business entity brings a claim against them personally.

Condo associations should work with an insurance company that is experienced in serving condo boards and understands their unique and complex risk exposure. A knowledgeable representative can help boards find the coverage they need from the best carriers in the marketplace.

How Guaranteed Replacement Cost Works in Homeowners Insurance

When you bought a home, you undoubtedly purchased insurance to protect that investment. Most homeowner’s policies are similar in how they calculate coverage amounts, what types of events and damages are covered or excluded, and how they shield owners against liability. However, there are some things you need to watch out for, especially if it has been a while since your purchase. One of those is the use of guaranteed replacement cost in insurance and how it can help you recover after a catastrophic loss.

What Is Guaranteed Replacement Cost?

A homeowner’s policy limits can be based on several factors: The purchase price, market value, mortgage value and replacement cost are common valuation methods. However, if a structure is completely destroyed, the actual cost to rebuild may go beyond those stated limits. Increased demand for supplies and labor after a major disaster are perfect examples of what can drive construction costs up. This may leave you with a gap between what your policy will pay and what it will cost to rebuild. Guaranteed replacement cost enhances a policy to fill that gap.

What Benefits Does It Provide?

In addition to paying above policy limits, there are a few other advantages to guaranteed replacement costs endorsements. For example, it covers updates to bring your home into compliance with building codes that have been enacted since your home was built. It is also generally more affordable than directly increasing coverage limits.

Guaranteed replacement cost is one tool that homeowners can use to protect their investment. Talk to your agent about whether it is a good choice for your policy.

Why You Should Consider Purchasing Yacht Insurance

When you are planning a day on the water with your yacht, the last thing you want to think about is something potentially going wrong.  Unfortunately, incidents do happen and it is really important to be prepared for the worst.  If you own a yacht and you live in California, you should consider CA yacht insurance.

What is Protected Under a Typical Yacht Insurance Policy?

Yacht insurance provides protection that falls under two categories.  The first is physical damage.  This part of the policy covers your boat, its machinery, its sails, and any other equipment on board. If any of these things are damaged by an incident like an accident or a rough storm, this part of the insurance will prevent you from having to cover the damages out of pocket.

The other part of the policy covers liability.  This refers to legal obligations that can occur with third parties.  It applies when you cause damage to someone else’s property with your boat or injure/kill someone with your boat.  For example, let’s say you get into an accident with another boat and you seriously injure someone on that boat.  This person could sue you but the liability part of your yacht insurance will cover the legal costs.

Owning a yacht has many upsides but is not without risk.  Make sure you are protected and purchase yacht insurance today.

What Does Builders Liability Insurance Cover?

Builder’s liability insurance is a unique form of insurance for the construction industry, but it’s not a replacement for your traditional general liability policy. That policy is still needed to protect your workers and equipment while you’re on the job. Instead of replacing that policy, builders liability insurance policy coverages are typically written to provide additional protection only needed by construction businesses.

Protect Temporary Structures and Fixtures

Often, you need to erect temporary sheds and other facilities for your operation on-site to complete a project. That includes additional scaffolding structures to provide worker access to the entire superstructure as it goes up. Your builders liability policy protects you from losses when those structures are damaged and from expenses related to liabilities those structures create. It also covers fixtures and pieces of the building that are prefabricated and later installed in place, like the light fixtures you buy from suppliers.

Long-Term Building Protection

As you work, you also need protection from damage to the building you’re working on, especially when it’s a renovation project and your operations have the potential to cause damage or disruption to the surroundings while you work. It’s also important for new construction, but the risk profile is a little different. To get a policy that fits your project well, you need to work with a carrier that really understands the construction industry.

What Does Warehouse Insurance Cover?

People not familiar with its day-to-day operations often mistakenly think the only function of a warehouse is to store goods. In the same way, some warehouse operators also have a narrow view of what warehouse insurance has to offer them. The truth is that coverage can be just as diverse as the many jobs that happen inside.

Warehouse Contents

Protected under any warehouse insurance policy is the contents of the building, whether owned by you or a client. . Examples of possessions covered include the following:

  • Machinery such as forklifts and golf carts
  • Computers and other electronics
  • Hand trucks
  • Fixtures and equipment
  • Valuable papers and software

Liability

Liability insurance protects you from claims of personal injury or loss of property. This coverage is especially important when housing items that do not belong to you, or when employing multiple workers. It usually covers costs associated with the following claims:

  • Employee dishonesty, including theft and forgery
  • Personal injury by the general public while on the premises
  • Goods transported by third parties
  • Property inside trucks owned by you

Be sure that your warehouse insurance is adequate to protect the many aspects of your business. Your insurance agent can evaluate your existing policy and help you expand it into areas that may need additional coverage.

What to Know About Public Liability Insurance

Public liability is a vital form of insurance for many businesses. Companies that interact with the public are exposed to potential hazards that a general liability policy will not cover. Here are the important facts about public liability insurance to help you determine if it is a necessary policy for your business.

Customer-Facing Coverage

Public liability is important for any business that deals with customers in person. It is also crucial for a company that has foot traffic moving through business-owned or contracted property. A PLI policy should be purchased if your business includes one of the following professions:

  • Hairdressers
  • Retailers
  • Builders
  • Manufacturers

If you conduct business similar to one of these professions, or you specialize in an industry that interacts with a third party, contact an insurance provider to find the right PLI policy for you.

Customer and Third-Party Protection

A PLI policy is vital since it covers liability with parties that are not employed by the business. Some of the main protection provided by a PLI policy can include:

  • Cost of repairs
  • Legal expenses
  • Medical fees

PLI is essential for any business that exposes non-employees to damage or injury. Investing in a public liability insurance policy is the best way to protect your business along with the general public.

How to Determine Your Boat Dealer Insurance Coverage Needs

When you own and operate your own business, there is always a level of risk involved. Owning a boat dealership is no different. Some risks often associated with selling a variety of marine products include theft, damage, equipment malfunctions, and injury. However, when you meet the proper boat dealer insurance requirements, you can help mitigate potential risks. Before you commit to a policy or provider, it’s essential to know and understand what’s available to you as a dealer first.

Common Coverage Options

Since there is a wide range of coverage options within the industry, it’s always good to educate yourself on potential possibilities before entering into a contract or writing any checks. Some of the most common coverage options include:

  • Property Liability Coverage – This insurance plan provides financial protection from risks that involve property damage or loss.
  • General Liability Coverage – This coverage is broad by nature because it’s intended to ensure businesses with a wide range of exposures.
  • Truth in Lending Coverage – Provides boat dealers potential protection if they fail to adhere to the Credit Protection Act or Truth in Lending Act.
  • Errors & Omissions Coverages – If records or paperwork are managed poorly and result in legal claims, this coverage offers potential payments to resolve the issue.

Peace of Mind

There are risks associated with running any business. This is why obtaining the proper insurance coverage for your boat dealership is vital. When you have the necessary coverage, you will be less likely to get caught in a sticky financial situation.

The Fiduciary Responsibility of Staffing Firms

According to the experts at World Wide, any individual or individuals that design, manage, or administer benefit plans to employees are subject to fiduciary liabilities. Individuals and/or employers that are authorized to administer any aspect of a plan, whether health and welfare, pension programs, profit-sharing, savings, or otherwise, can be held liable when a breach of duty is suspected or alleged.

The Challenge for Staffing Firms

Those working for a staffing agency find themselves in a unique employment situation. While an employee may be filling a specific role with one company, the individual is solely employed by the staffing agency. As a result, the administrative team at the staffing agency is responsible for overseeing the benefits to which an employee is entitled. Due to the Affordable Care Act, staffing firms have a potential requirement to extend certain healthcare benefits to their employees.

The Potential for Litigation

Staffing agencies must follow a mandate to both offer minimum coverage and make it affordable, either using fully or partially self-funded plans. These employers must keep up with coverage offerings, premium differentials, auto-enrollment, wellness incentives, W2 reporting, and more. All employees must receive timely communications concerning plan options and alternatives as well as the ongoing administration of their benefits. Any error or oversight, no matter how small, presents a fiduciary liability.

Risk management in this area includes using automated processing to help reduce human error, as well as carrying an insurance plan that addresses fiduciary duties.

Paying the Price for Someone Else’s Mistake

As a business owner, you are responsible for everything that goes on in your business, even if it means an employee or a contractor you hired created a disaster. Contingent liabilities are the incidents that occur outside your scope of direct control but yet you and the business are financially responsible for. No matter what kind of safety policies you put in place or how thoroughly you stress care and quality in daily operation, you can still find yourself being sued for someone’s mistake.

Same Coverage, Different Name

Contingent liability insurance is a way to protect your company from the financial fallout of dealing with employee, contractor, or agent error. It might also be referred to as vicarious liability or indirect liability. Regardless of what name it goes by, the premise of liability means you are legally responsible for another person’s poor work or wrongdoing according to the workings of legal relationships. Employees are generally the biggest risk with vicarious liability, and whether or not they were abiding by company policies, their actions are pinned on the company.

Should a customer decide to sue your company, you could be looking at thousands and upwards of million dollars in legal fees, lost productivity, settlement costs, and reputation management efforts. An insurance plan addressing vicarious liability helps offset these costs, keeping your business from going under.

What Is a Segregated Cell Captive?

Segregated cell captives can be used by businesses that wish to separate and protect their assets individually to prevent unnecessary risks. Unlike traditional insurance options, this allows businesses to own their insurance, thus providing added security and control over their assets.

Advantages of Segregated Cell Captives

The main advantage of a segregated cell captive program is that it separates the risks of one cell from another. If one cell, assets owned by a single individual, comes under fire, another cell owned by a different individual cannot be used to pay off the first cell’s liabilities. Therefore, each individual’s assets are protected within their own bubble.

Reasons to Set up a Cell Captive

Segregated cell captives are not costly to create or to maintain once they are up and running. They offer flexibility and are easier to leave than traditional insurance options. The owner can take charge of cells to monitor risk more closely as well.

Many businesses can benefit from setting up a segregated cell captive. Whether a company is small or simply doesn’t want to join with larger cell captives, these individually-owned cells can provide that necessary flexibility while still maintaining a strong security factor. Consider looking into a segregated cell captive program to protect your business’s assets.