Why All Homeowners Should Consider Flood Coverage

| March 3, 2023
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Most flood claims occur in homes located outside designated mapped flood zones. Flash rains and ice damming can cause a flood. The out-of-pocket expense can be staggering — an average of $25,000, according to the National Flood Insurance Program.

You can use this flood cost estimator to see how your costs rise with each inch of standing water in your home. If the expense seems excessive, think about the contents of your basement or first floor (if you don’t have a basement). Then consider how much it would cost to have a professional come in to repair the damage. When the water rushes in, you probably have a lot more to lose than you think.

Everything in your basement adds up

Even if your basement is unfinished and you have nothing valuable stored there, consider what else is probably living below ground level:

  • Washer and dryer
  • Water heater
  • Heating, ventilating and air conditioning unit and boiler
  • Water softener

Replacing and installing these items can easily cost thousands of dollars. In the meantime, you’ll need to act fast to get the water out of your home and dry the area as quickly as possible, before mold sets in. Hiring a professional to assist with cleanup is well worth it.

If you have a finished basement, your flood troubles just got exponentially worse. Make sure to add coverage and set your limits high enough to cover the cost of rebuilding the entire basement — drywall, paint, flooring and furnishings. That cost is in addition to the usual household equipment mentioned above.

Don’t assume you’re safe because you live outside a flood zone

Flooding outside a flood zone can happen. In fact, most flood claims happen outside flood zones. A flash rain, for example, dumps several inches of water in a short amount of time, saturating the ground. Once the ground can no longer absorb the water, it’s going to travel to the lowest possible point. If your home is situated on a low part of your property or the grading runs toward your house, you’re a candidate for a flood.
Any water that enters your home from the outside is normally considered a flood, so you can’t assume that any part of your policy will kick in even if your particular issue doesn’t seem like a classic flooding situation.

Contact your insurance professional

Contact your insurance professional for a rundown of your homeowners coverage, and pay specialattention to the limits and the exclusions. Also ask about what’s covered regarding fl ood cleanup andremediation. Set your limits high enough to protect your valuables and rebuild if it’s a worst-case scenario.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2020 Applied Systems, Inc. All rights reserved.

OneGroup I.T. talks with SCSD High School Students

| February 22, 2023
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Sharing Expertise and Experience

On Friday, February 17, Brad Harris, Vice President, Technology, and System Administrator, Beau LaFlore, spoke with over 100 high school students at the Public Service Leadership Academy (PSLA) at Fowler High School. Meeting with freshman all the way up to the senior class, Brad and Beau discussed their career route, what led them to OneGroup, the new system changes they are implementing, and what their day-to-day looks like. The students were intrigued with Brad and Beau’s career path and what keeps them here at OneGroup.

Brad’s famous advice to all the kids – “Work in a place that values the culture. Whether that’s a place with 5,000 employees or 200, working in a place that culture is valued makes the day more enjoyable!”

Our information technology experts enjoyed their time getting to know the students! Brad and Beau, along with the Syracuse City School District (SCSD), made this a great experience all around. By sharing their career knowledge and experience, Brad and Beau were able to give students insight into what a future in information technology could look like.

Through mentorship opportunities such as this, OneGroup supports the Syracuse City School District’s mission to empower students and their success.

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Beau(left), Brad(right) speaking with students.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

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Why Small Businesses Are Targeted For Cyber-attacks

| February 21, 2023
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And Here’s What They Can Do to Minimize Them

By Dennis Ast, CPCU, CCIC

We hear a lot about cyber-attacks on large organizations like Colonial Pipeline, JBS Food, and CNA, to name a few, in the news. We don’t hear about all of the small businesses that have had a cyber-attack. More than 40% of cyber-attacks happen to small and medium size businesses. There are many reasons that cyber criminals focus on small businesses. The primary reason is that cyber criminals know that many small businesses are not prepared for a cyber–attack. They haven’t focused their resources on increasing their cyber hygiene and resiliency which make them an easy target for not only large cyber-criminal organizations but also for smaller cyber organizations or individual threat factors that are developing their skills and using ransomware kits and other cyber-attack tools that are easily purchased on the dark web. These attacks can come in many forms from a phishing attack, business email compromise, a ransomware attack, and fund transfer fraud. There are also exposures to a cyber event through vendors you do business with, and even the software and applications you use in your business every day. Any type of a cyber-attack can be devastating to a small business. In fact 60% of small businesses fail after a cyber-attack, per the National Cybersecurity Alliance.

All is not lost! Small businesses can improve their cyber hygiene and resiliency, and make it more challenging for a threat actor to attack their organization. Cybercriminals are looking to monetize their activities so they focus on easy targets. There are many ways a small business can help protect themselves from a cyber-attack.

Employee education is key to a successful cyber security program. The 2022 Verizon DBIR found 82% of data breaches involved human error. In many cases, it is an employee opening a phishing email. Many of the current phishing emails are not as easy to spot as they use to be. The cyber criminals have become smarter and their phishing campaigns have improved significantly. It is not only falling for a phishing email, it could just be an error made by one of your employees. Developing a program to help your employees understand common vulnerabilities and threats to your business will lessen the chances of a successful cyber-attack.

Another key is the use of Multi-Factor Authentication or MFA. Many cyber carriers have identified that as much as 80% of their reported claims were attributable to the lack of MFA. MFA provides an additional layer of security if your employee’s user ID’s and passwords have been stolen or compromised. MFA should be enabled on all email access, remote access as well as on privileged access to your system and sensitive data.

Employee education and MFA are only the beginning to improve your cyber hygiene and resiliency. Businesses should also consider implementing Endpoint Detection and Response or EDR to help detect potentially malicious activities on your endpoints. Businesses should also ensure they encrypt all sensitive data as well as actively and regularly patching all of their applications and software to minimize potential vulnerabilities. Ensure that you are having regular back-ups that are encrypted, air-gaped, and tested. It’s not good having a back-up if you aren’t able to restore from it. Finally, you should develop and practice a cyber-incident response plan. If a cyber-event does occur, having a plan in place will help you to minimize the impact it can have on your organization.

By being proactive and implementing the best practices outlined above you can help protect you organization and minimize the impact that a cyber-attack can have on your business.

For more information please contact Dennis Ast, Senior Account Executive Cyber Risk Specialist at or DAst@Onegroup.com

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Workers’ Compensation 101: What Can You Do to Control Your Costs?

| February 17, 2023
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This month, OneGroup hosted another 101 Series Webinar. President, Chris Mason spoke about the sometimes-confusing world of workers’ compensation, gave tips on claims, and how to control your costs.  

Typical workers’ compensation claims cover lost wages from time off work and medical benefits associated with the injury. Workers’ compensation can sometimes be described as having a “long-tail”, this is because some injuries can have a lifetime of implications and the claim stretches over a long period of time. 

Although workers’ compensation protects both the employee and the employer, the employer is the most influential stakeholder in a workers’ compensation claim. The way that the employer handles the situation and workers’ compensation claim can have a large impact on the outcome of the claim. 

How Can You Control Your Costs? 

Invest in safety programs. Train employees and managers in workplace safety. Both in the office and in the work environment from home. With our world rapidly changing in the technology sphere, work from home employees, and an increase in independent contractors, workers’ compensation claims can get tricky. Work from home employees are not exempt from worker’s compensation claims simply because they do not work in an office. For example, if an individual is working from home and gets up to answer the phone, trips over their cat and injures themselves, that may be a workers’ compensation claim. 

Engage your team. Include company workers’ compensation reports in management meetings. Implement supervisor training on how to report and prevent claims. Implement an injury reporting system. This will encourage employees to become comfortable reporting claims. Encourage open conversations with your employees about workers’ compensation and what you can do to prevent injuries.  

Encourage prompt reporting. Prompt reporting can reduce claims costs dramatically. Many employees injured on the job who are not aware of the importance of prompt reporting hire workers’ compensation attorneys. This can increase your total costs by 51% (2015 study by National Council on Compensation Insurance).  

Encourage prompt reporting not only with employees but with supervisors as well. 

The use of Contractual Risk Transfer. In some workers’ compensation cases where a third party is involved, workers’ compensation costs can be mitigated significantly. When third parties provide services for your company (i.e. snow plowing, parking lot work, landscaping, etc.), contractual risk transfer can be used to have risk transferred to that third party in the presence of a workers’ compensation claim.  

Best Practices for Employers Facing a Workers’ Compensation Claim  

Understand what you as the employer need to do to get the injured employee back to work. Accommodate the employees process to return to work. Make it clear that you as their employer will make the process as smooth as possible. If the employee can return to work within 7 days – there is no lost time paid by the employer. If the injured employee can return to work with light-duty work, do so. Some light-duty work can include taking inventories, performing office tasks, as well as supervising and reporting on job sites.  

Stay connected with the injured employee. Reach out and see how they are doing, send them and their family a card, offer to be a part of the claims process – as an employer, you are allowed to attend hearings. Most importantly, treat the injured worker with dignity and respect.

Understand where and when your claims are occurring. Use data from your carrier or broker to understand where the claims are occurring, the types of claims that are occurring (i.e. slip, trip, fall, etc.), and the category and tenure of the employees getting injured. This will help you identify trends and institute better safety measures and prevention training.   

Additional Thoughts Regarding Workers’ Compensation 

You are statutorily required to have workers’ compensation insurance if your organization is larger than one employee. 

When it comes to calculating your Experience Modification, frequency of claims and having lots of small claims will weigh heavier than severity of injury and having few large claims.  

All workers’ compensation claims are on a case-by-case basis. Please reach out to an expert with any questions regarding workers’ compensation and risk management. 

If you have questions regarding the webinar or workers’ compensation, please email CMason@OneGroup.com or submit a quote form here to be connected to one of our experts. Another great resource Chris mentioned for trends and information on workers’ compensation is the New York Compensation Insurance Rating Board. 

OneGroup is looking forward to the next 101 Series Webinar, Personal Insurance 101, on August 7, 2024 from 9:30AM-10:30AM EST. Personal insurance experts Kimberly Hendrick and David Weaver will discuss the value and importance of an umbrella policy, personal insurance claims, and how to save money on insurance – the smart way. Register for OneGroup’s next webinar here. 

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Four Steps To Help You Avoid Costly FMLA Errors

| February 14, 2023
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The average cost for defending an FMLA lawsuit is around $80,000 – win or lose. When employees win the case, their awards can often be hundreds of thousands of dollars, and sometimes even millions. 

The price of those lawsuits can add up quickly.

The Family and Medical Leave Act (FMLA), which allows eligible employees to take unpaid, job-protected leave for certain medical and family purposes, will mark its 30th year in 2023. And yet, three decades later, FMLA is still leading to confusion, frustration and sometimes even lawsuits.

The following four steps can help you avoid errors that commonly lead to trouble with FMLA. 

1. Implement a simple, accessible process

A sure way to remove some of the confusion around FMLA is to create clear processes. Share required forms and information in paper and electronic formats. Make sure they’re easily accessible for HR professionals, managers and employees throughout your organization.

Include FMLA information in your employee handbook. Regularly communicate eligibility requirements and how to request leave. 

Highlight important eligibility information like:

  • To be eligible for FMLA leave, your employees must be with your company for at least one year and have worked a minimum of 1,250 hours in the 12 months leading up to the leave. 
  • FMLA leave isn’t available for every medical need. However, both physical and mental health challenges can give rise to FMLA leave. In your materials, list qualifying medical conditions. 
  • Employees must be able to provide medical certifications documenting their or an eligible family member’s qualifying condition. Be clear about required certifications, and make it easy for employees to submit this information.

The Society for Human Resource Management (SHRM) recommends using plain language to explain how employees should report an absence or any type of leave. Include emails and phone numbers for all relevant points of contact.

A common trap is processes that are too restrictive. Make sure your FMLA processes can accommodate varying needs, including leave that is continuous, intermittent, planned or unplanned. 

FMLA allows eligible employees to take up to 12 weeks of continuous leave. But it also allows for up to 12 weeks of intermittent leave, which could include a reduced schedule such as five-hour days or three-day workweeks for a period of time. Intermittent leave can sometimes be planned. But it can also take the form of unplanned absences due to ongoing symptoms. Your processes should be flexible enough to accommodate the varying needs of your employees.

2. Stay on top of legislation

FMLA is federal law. However, a common error is looking solely at federal law. 

States and localities are allowed to provide leave rights beyond those guaranteed by FMLA, and new legislation relating to both paid and unpaid leave is being passed all the time. Accordingly, you need to pay close attention to the legislative landscape and how it affects your FMLA obligations. 

Eleven states and the District of Columbia offer paid family and medical leave as of 2022, according to the National Conference of State Legislatures. There are also various state and local laws related to sick leave and parental leave, among others. 

It’s vital to stay on top of different types of leave, when they apply, and whether they run concurrently with FMLA or separately.

This can be a complicated undertaking, particularly if you operate (and/or have employees who reside) in multiple geographic areas. Don’t hesitate to consult with your benefits adviser and legal counsel as needed.

3. Maintain employee privacy

Employees can choose to share a medical condition with colleagues, but your HR team and supervisors should never reveal this information. FMLA medical information must be kept confidential, with these rare exceptions: 

  • Safety personnel can be alerted to the potential need for medical interventions.
  • Government agencies can receive medical information related to an FMLA compliance investigation.
  • Supervisors can be given information related to workplace accommodations or restrictions upon an employee’s return to work. This information should be limited to the intervention. For example, you could tell a manager that an employee needs access to a quiet space twice a day for the next three months. But you would not reveal an anxiety disorder without the employee’s consent because it is not a business necessity for a manager to know. 

Even when employees choose to disclose their medical conditions, supervisors and HR should refrain from spreading the word to others. It’s not just a matter of avoiding gossip or maintaining professionalism. Revealing employee medical conditions can damage trust, harm your culture and lead to lawsuits.

4. Respect the need for leave and recovery

In addition to maintaining privacy, respect employees’ need for leave and recovery. SHRM points out three common things to avoid before, during and after FMLA leave:

  • Before: Don’t attempt to fire an employee because they requested FMLA leave. Even if they have underperformed or have other personnel issues, you must grant a legitimate request for FMLA leave.
  • During: Don’t contact an employee unnecessarily while they are away from work. It isn’t a violation to ask an occasional question that requires their expertise or specific working knowledge, especially if it’s for urgent business reasons. However, you should not ask employees to regularly perform work or repeatedly contact them while they are on FMLA leave.
  • After: Don’t look for reasons to terminate an employee once their leave ends. FMLA promises up to 12 weeks of job-protected leave. Not all employees will be ready to return to work after 12 weeks. However, some may be eligible for additional leave under the Americans with Disabilities Act. Rather than looking for reasons to terminate them, SHRM recommends first working with the employee on a return-to-work plan. This could prevent unnecessary turnover and unlawful termination suits.

Continue to adapt your FMLA practices

FMLA may have been around for three decades, but compliance is a moving target. Leave legislation continues to change. Awareness and diagnoses of qualifying mental and physical health conditions are evolving. Employee health challenges can be unpredictable.

If you have questions, reach out to your benefits adviser or legal counsel. They can provide guidance and experience to keep you in compliance with FMLA and related leave.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2022 Applied Systems, Inc. All rights reserved.

What Is Commercial General Liability Insurance

| February 14, 2023
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Protect your business from lawsuits.

One essential protection for employers, both large and small, is commercial general liability (CGL) insurance. CGL covers the cost of claims when a business is sued by someone for bodily injury, property damage or advertising injury.

Unfortunately, lawsuits against employers for negligence are on the rise. A report from Deloitte recently gave the Canadian commercial insurance general liability market a negative outlook, citing several trends that are driving up claims costs. Indeed, since 2019, the Canadian commercial insurance market became a “hard market”, meaning that “the market entered a period of higher rates and reduced underwriting capacity for certain lines of business and/or geographies.”

According to Willis Towers Watson’s 2021 Insurance Marketplace Realities report, several factors are accentuating this hard market. An important trigger includes more frequent and severe lawsuits (known as “social inflation”). It is a key reason why CGL carriers are under pressure to increase rates and tighten policy terms and conditions.

The upshot is that it’s more important than ever for businesses to have CGL insurance and to work with an insurance brokers who can help them find the best coverage at the best rates.

What Commercial General Liability covers

CGL covers many of the liability situations most companies encounter during the course of their normal business activities. Coverage includes medical, property, legal, compensatory and punitive damages you must pay if you are found legally responsible for:

  • Bodily injury and property damage, including emotional distress and mental trauma. CGL covers injury and damages that occur on your business premises, as a result of your operations, or from work done by an employee off-site. For example, if an electrician you employ causes a short in a customer’s wiring and there is a fire, a CGL policy would cover the claim.
  • Personal and advertising injury. CGL policies also cover copyright infringement, libel and slander, invasion of privacy, wrongful eviction, false arrest, use of another company’s intellectual property, and misleading advertising claims.

Commercial General Liability limitations and what’s not covered

CGL policies provide some product liability coverage, too. However, if you manufacture or sell products, it may be best to purchase product liability insurance that covers product recalls. These policies cover claims associated with product defects, malicious tampering, contamination, mislabeling and deceptive marketing.

CGL doesn’t cover professional liability claims. For that, you would need a separate professional liability, or errors and omissions, policy that covers negligent professional acts.

In addition, CGL doesn’t cover workers’ compensation, directors and officers liability, pollution liability or commercial auto liability. These are covered by other types of liability insurance.

CGL policies have limits on what they will pay. Most have an occurrence limit and an aggregate limit. For example, a policy may be written as a $1 million/$2 million policy, meaning it will pay up to $1 million for a single claim and up to $2 million during the term of the policy.

If a claim exceeds the policy’s limits, you must pay the excess amount yourself. Excess insurance and commercial umbrella insurance are two ways to inexpensively add additional coverage to your underlying CGL policy. Your insurance broker can advise you on limits and the best way to increase them, if needed.

Pricing and other considerations

Ask your insurance broker about pricing a CGL policy that’s tailored to your industry and risk exposure. Your premiums will be based on the size and type of your business, annual revenue, location, number of employees, claims experience and the condition of your property. Your policy’s limits and the size of your deductible will also affect your cost. Adjusting these can save you money.

In addition, you may have the choice between a claims-made and an occurrence policy. With a claims-made policy, the loss must occur and you must file a claim within the reporting period of the policy. If the policy is no longer in force, the claim won’t be paid. Purchasing an extended reporting period (ERP) option can protect against future claims if you cancel the policy.

With an occurrence policy, you can file a claim at any time, as long as the loss occurred when the policy was in force. So, if a customer files a lawsuit a year after an accident occurred on your property, it would be covered if it happened during the policy period. Often, occurrence policies cost more than claims-made policies because there is no time limit on filing claims.

Besides adjusting the limits and deductibles, there are several other ways you can save money on a CGL policy. You might consider a business owners policy (BOP) or commercial package policy (CPP), which combine into one policy many of the protections a business needs. By bundling the insurance, the overall cost is lower than if you purchased each of the policies separately. Your broker can help you decide what coverage you might need in a BOP or CPP, including commercial property and business income insurance.

You can also reduce your costs by minimizing your risk exposure. Creating employee training and awareness programs, reducing workplace hazards, being safety conscious and improving security are several ways to help lower your liability insurance costs.

Commercial General Liability is a key coverage, and it may be required

A CGL policy is one of several key coverages you need to protect your business. Some would argue it’s the most important commercial coverage, since businesses are so often sued and one lawsuit could bankrupt your operation.

There are instances where you may be required to have CGL insurance. These include when you are signing a lease for office space, signing a contract to do work for a client or another company, or applying for a license. For example, if your business is providing services to others or you are leasing space to operate your business, you may be asked to provide additional insured coverage to the owner of that business you are performing services for or the owner of the building you are leasing. This should be required of you in a written agreement with this other party. You should review that written agreement with your insurance professional.

CGL not only makes sense from a liability protection standpoint; it also demonstrates to your customers, business partners and creditors that you have insurance and are financially secure.

Today, the rise in extreme weather events, steep legal fees, and huge jury awards are causing significant tightening in the CGL market. Carriers have raised rates and toughened their terms and conditions, making it more difficult for businesses to find affordable coverage.

These developments make it imperative that you consult an insurance broker who has expertise in business liability coverage. You want the confidence that your business is adequately covered but isn’t paying more than it has to for this essential insurance protection.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2021 Applied Systems, Inc. All rights reserved.

Insurance for Valuables

| February 13, 2023
Diamonds Are a Girls Best Friend Insurance for Valuables

Whether a Rolex watch, an engagement ring or grandma’s authentic art deco earrings, it’s important to have insurance to protect your jewelry’s value.

Jewelry is one of the world’s oldest archaeological artifacts, having been used for centuries across cultures to mark social status, store wealth and symbolize personal meaning.

In the 21st century, it’s common to own designer jewelry collections, engagement and wedding rings, and antique heirlooms. Whether a Rolex watch, an engagement ring or grandma’s authentic art deco earrings, it’s important to have insurance to protect your jewelry’s value.

Why insure jewelry?

Jewelry is covered under most homeowners and renters insurance policies, but many have exclusions and coverage limits. A basic policy may have limits as low as $1,500. While theft is typically a covered peril, damage or accidental loss may not be.

A jewelry rider (floater) or specialty jewelry insurance policy can offer added protection. Coverage is more comprehensive and normally insures the replacement value. This may involve an appraisal.

Additionally, jewelry insurance often offers coverage for “disappearances,” or losses where the timeline cannot be reconstructed, as well as worldwide travel coverage for loss or damage. That means if you lose your diamond earring while swimming in the ocean in Bora Bora, a specialty jewelry policy will keep you from ugly-crying over the loss.

How to protect jewelry

Even with a jewelry policy in place, it’s important to keep your items safe.

  • Store them securely. Keeping jewelry in a home safe may feel more secure than shoving it in the bottom of the sock drawer, but many retail safes can be just as insecure. Thieves can easily lift a lightweight safe and chuck it down the stairs or out the window and make a run with it. Instead, use a heavy, well-made safe bolted into the wall or floor in a hidden area on a lower level of the home. The investment in a high-quality safe can be worth its weight in all your gold for the protection it offers.
  • Take precautions when traveling. Speaking of safes, when traveling, assess the hotel room safe before putting items in it. While the safest place for jewelry when you’re traveling is to keep it at home, if the room safe doesn’t seem up to snuff, try asking hotel staff to keep items in the hotel’s master safe.
  • Regular upkeep is key. Of course, jewelry isn’t much fun when it’s always locked away and out of sight. It is meant to be worn after all, but before you sport it out and about, inspect pieces to ensure clasps work and prongs are keeping stones in place. Make sure jewelry can’t break easily or fall off before heading out the door. This is especially important for older, antique pieces or heirlooms that have passed through many hands.
  • Don’t flaunt it. Not everyone can tell if your Tiffany & Co. piece is designer or not — and that’s a good thing. When traveling with jewelry, avoid transporting items in branded containers (like that iconic blue box). When having a piece repaired or altered, try bringing it to the jeweler it was purchased from to limit how many people know about the piece.
  • Keep appraisals up to date. The only thing worse than a jewelry loss might be not receiving proper compensation for it. Specialty insurers typically cover jewelry for up to 150% of the value. Have jewelry appraised to ensure it’s covered for the right amount.
  • Stay on top of jewelry inflation. To account for jewelry inflation, appraisals should be updated at least every three to five years. Appraisals should be conducted and verified by a professional. Documentation verifying authenticity, photos and any related receipts should also be saved to ensure proper valuation.
  • Jewelry insurance isn’t one and done. It’s important to reevaluate your jewelry insurance policy. Every year, take an inventory of all your jewelry. Then contact your agent for a policy review.

Jewelry should be worn and stored in the safest ways possible. Talk to your insurance agent about your best options for loss protection. Full replacement of your jewelry set in the event of a loss will keep you looking like a million!

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2021 Applied Systems, Inc. All rights reserved.

Construction Risk

| February 8, 2023
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Identifying Your Business Risk Liabilities

Construction is a high-risk business, from the types of work being done to the financial uncertainty of payments and potential for lawsuits. Insurers and surety companies view risk in terms of exposure to possible losses. Some losses have a higher probability of occurring than others, and some will have greater consequences for your business.

What are the risk categories to consider?

When identifying and analyzing risk, it’s helpful to see how risks fit into categories. Here are some you should consider as you begin to identify your own project risks. Use this checklist to look at your construction business through a risk liability lens.

  • Technical risks — poor design, insufficient site investigation, inadequate specifications or unavailability of materials
  • Logistical risks — lack of equipment, spare parts, fuel, labor or transportation
  • Construction risks — uncertainty of supplies, worksite injuries and accidents, negligence, construction defects, and weather and seasonal uncertainty
  • Contractual risks — legal and regulatory issues, and contract and labor disputes
  • Financial risks — cost escalation, delays in payment, rising interest rates, lack of sales or unmanaged growth
  • Project risks — improper management, inadequate allocation of resources, and unrealistic schedules or schedule changes
  • Political risks — zoning disputes, lack of funding for public projects or political unrest
  • Competitive risks — pressure to underbid a competitor, lack of profitability or being overextended
  • Ethical risks — pressure to engage in political games or win bids using questionable tactics that could put current and future contract engagements at risk

Categories and sub-categories of risk

Now that you’ve made notes on the categories of risk for your construction business, take the next step. Write down your risk areas and organize them. This checklist will help you identify specific liabilities.

  • Write a description of each risk.
  • What’s the likelihood that the risk will occur (low, medium, high)?
  • What’s the potential impact on your business (low, medium, high)?
  • How would the risk affect your workers or subcontractors?
  • How would it affect scheduling?
  • How would it affect the quality of materials?
  • What about the safety of the job site?
  • What actions can be taken to mitigate the risk (options to correct or transfer the risk elsewhere)?
  • What are the early warning signs of liability (several recurring accidents, invoices rarely go out on time, contracts are incorrect)?
  • What methods would be used to communicate the risk, once recognized?
  • Who owns the risk category and what methods are used to handle risks previously reported to the owner?
  • What contingency plans or written guides are in place?
  • How are the steps of the written plan communicated (formal training)?

Consider how critical each of these areas is to the success of the job. You may and it helpful to create a table that lists each project area and its relative importance (low, medium, high).

Sample risk exposure and business impact assessment

Risk areaLiability exposureBusiness impactEasy to correct?Action plan
No formal employee trainingWorkplace injury resulting in higher workers’ compensation premiums or risk pools  HighYes — employee training is controllableEstablish training program
Tornadoes at certain worksitesTornadoes are seasonal — we have protocols in place and commercial property insurance coverage LowNo — weather is uncontrollableTransfer risk to insurance

Once you’ve figured out the risks, liabilities, and potential business impact, move on to assembling a risk management team to figure out the details of your risk management plan. Use a risk management team checklist to help you and your team develop your plan. For more information on OneGroup’s risk management capabilities, click here.

If you have any questions, please feel free to reach out at your convenience.

For more information please contact Brett Findlay, Vice President Business Risk Specialist at (315) 280-6376 or BFindlay@OneGroup.com

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2020 Applied Systems, Inc. All rights reserved.

What Is Contractual Risk Transfer?

| February 8, 2023
CRT Blog Post pic

Insurance aims to transfer risk from one party to another, typically from a business or individual to an insurance company.

Risk can be anything from a fire destroying your property to the death of a business partner. Insurance aims to transfer risk from one party to another, typically from a business or individual to an insurance company.

While any business requires a degree of risk-taking, the real question is whether you can afford to take on the liability of specific risks. A risk that is outside your experience wheelhouse, or could cause a catastrophic loss, poses a higher probability of financial ruin to your business.

Some activities, events or services can put you at a greater risk for financial loss. These include:

  • Construction projects
  • Manufacturing operations
  • Lease agreements
  • Real estate managers
  • Professional services
  • Third-party service providers and subcontractors
  • Venture capitalists and investments
  • Business startups
  • Mergers and acquisitions
  • Suppliers
  • Vendors
  • Technology

What is a CRT?

Contractual Risk Transfer is a legally binding way to transfer risk from one party to another. CRTs identify problematic business risks and transfer those risks from one business to another using a written agreement. Usually, the business most qualified to handle or control the risk assumes the financial and legal risk of liability associated with the operation or exposure.

CRTs can help offset insurance costs and create a trust bond between the companies doing business. CRTs put known risk on the table and divide it in a way that makes both businesses feel comfortable.

What is the function of a contractual risk agreement?

It is intended to legally transfer the risk of financial loss, bodily injury or property damage to the responsible party. This helps your business avoid paying to the negligence of others that may cause a lawsuit against your business.

Insurance companies tend to shy away from operations and exposures to you or your business that you cannot always control. These typically include services and activities mentioned above such as leasing properties you own, hiring contractors, hiring service providers, working with vendors and suppliers, etc. These activities create hazards/risks to your operations that the insurance carrier may not want to insure or if they are willing to insure, may result in higher premiums due to the increase in exposure to loss. Having a written agreement with these parties to contractually transfer the risk of loss to these other parties will make your business more favorable to your insurance carrier.

Walkway injury: a CRT example

An assisted living residential facility houses elderly residents in a sizeable apartment-style building. The facility hires a third-party maintenance service to handle its landscaping, including walkway and driveway maintenance. The housing staff can’t oversee or inspect the daily landscaping and walkway maintenance. They won’t know if there are immediate hazards on the property, leaving them open to liability.

The facility and the maintenance service enter into a contractual risk agreement that transfers the outdoor maintenance liability from the facility to the maintenance company. The maintenance service promises a specific standard of care and holds the facility harmless if there is a lawsuit. More importantly, they agree to provide defense and indemnification to the facility if the facility is sued for the acts, omissions or negligence of the maintenance service in performing these services.

Later in the year, one of the residents slips and falls on the sidewalk during a visit. The family sues the facility for poor walkway maintenance. The facility’s liability passes to the third-party maintenance service, leaving them with less risk to defend against.

An experienced lawyer specializing in business contracts and risk mitigation can help you draft a CRT agreement like the one in this example.

Who needs CRT protection?

A CRT can be an invaluable tool for most businesses, especially in high-risk operations or when there’s a reliance on third-party service providers. Making sure you’re not responsible for oversights or errors made by a service provider (like in the maintenance service example) can help protect your company from liability outside of your control.

A contract that clearly defines the scope of work and which party is responsible for the hazards associated with the work, could save your business time and expenses in litigation. It could even save your working relationship with that vendor or provider. Being upfront and clear about who’s willing to take on specific risks before they are part of a lawsuit makes the path to a settlement much more manageable.

CRTs are prevalent in the high-risk construction industry. But as insurance markets harden and nuclear verdicts become more commonplace, CRTs are becoming more important in other industry sectors.

What’s in a CRT?

An average risk transfer agreement usually includes the following:

  • A hold harmless agreement or indemnification clause outlining each party’s responsibilities, including a duty to defend in court if negligence, personal injury or a property damage lawsuit arises
  • An insurance procurement clause that specifies who is responsible for obtaining insurance, including the policy types, limits and duration
  • A waiver of subrogation clause stating that if the other party’s insurance policy pays a claim related to your business liability, their insurance company waives the right to sue you to recoup damages, even if you were partially responsible
  • An additional insured clause stating the other party’s liability insurance policy will name you as an additional insured on a primary and non-contributing basis for that “other party’s” negligence. Being listed on their policy offers some benefits, like a duty to defend clause in a lawsuit.

CRT considerations

Involve a seasoned contract attorney familiar with your state laws and industry risks. They’ll answer your questions and help protect your business interests before you enter into any signed agreements.

  • Avoid overly broad agreements.
  • Specify the scope of work and each party’s responsibilities.
  • Verify that your contract language complies with your state laws. (A local court could void improper contract language, leaving you responsible. This is especially important when businesses are located in different states.)
  • Confirm your state laws regarding negligence and fault. (Some states do not allow you to transfer losses that are partly your fault.)

Ask your insurance agent to review the other company’s insurance policy to ensure adequate coverage. It doesn’t help to be named as an additional insured on an insurance policy that doesn’t afford proper protection.

Call for advice — before you sign

CRTs don’t replace insurance; they supplement insurance programs and help solve some of your trickier risks. If you think a CRT might be a solution for your business, contact the risk trio: your insurance agent, lawyer and accountant. They can offer a comprehensive view of how a CRT could affect your financial, tax and legal liability.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2023 Applied Systems, Inc. All rights reserved.

Snowmobile Insurance for Winter Enthusiasts

| January 31, 2023
Snowmobile Insurance for Winter Enthusiasts

One of the joys of winter for many people is the thrill of snowmobile adventures.

But accidents can happen to even the most careful sled drivers. Make sure you have adequate insurance to cover the costs of any potential damage or injuries.

Snowmobiling can be an exhilarating but risky winter sport. Today’s high-powered machines can weigh as much as 600 pounds, reach speeds as high as 200 miles per hour and cost well over $10,000. Property damage and injuries from snowmobiling accidents can be severe.

Snowmobiles aren’t usually included under your homeowners or auto insurance policy, so you will likely need separate coverage.

Policies can provide coverage for damages to the machine and personal injury, as well as your legal liability if you’re responsible for another person’s injuries or property damage.

Liability coverage

Some states require you to have liability insurance for your snowmobile, which helps cover costs if you damage someone else’s property or injure someone else in an accident. Even if your state doesn’t require this coverage, it’s a good idea to have it.

The amount of coverage depends on the limits you set when you buy your policy. Minimum liability coverage may be sufficient if an accident doesn’t involve serious injuries or extensive property damage.

But if the costs of the accident exceed your coverage limits, you’ll be responsible for paying the rest out of your own pocket. An umbrella policy can provide additional coverage beyond the limits of your existing policies.  

Collision coverage

Collision coverage helps pay for the cost of repairs if you damage your snowmobile in an accident, whether you hit a rock or collide with another snowmobile on the trail.

Comprehensive coverage

Comprehensive coverage can help pay for repairs or replacement if your sled is stolen or damaged by something other than a collision. Covered risks may include sinking through the ice on a frozen lake or river, along with:

  • Fire
  • Hail
  • Hitting an animal
  • Smoke
  • Theft
  • Vandalism
  • Damage from a falling object

Additional optional coverages

You may want to consider several additional kinds of insurance for your snowmobile, including but not limited to the following:

  • Accessories and custom parts/equipment. Accessory coverage is for items or extra equipment installed on the snowmobile that weren’t factory installed, like windshields, special paint, engine performance equipment, skid plates, storage bags or GPS, and safety apparel like helmets.
  • Medical payments. Medical coverage pays for hospital bills, regardless of fault, if you, your passengers, or anyone involved in a snowmobile accident is injured.
  • Roadside assistance. If you get stranded on the trail due to a dead battery, mechanical problem or other issue, roadside assistance coverage lets you call for help and hitch a ride to the nearest repair facility, at no cost to you.
  • Transport trailer. If the trailer you use to haul your snowmobile is damaged, stolen or totaled, repairing it or buying a new one could set you back financially. Investing in trailer insurance can protect you from this expense.
  • Uninsured/underinsured motorist bodily injury and/or property damage. This type of coverage protects you or someone riding your snowmobile for bodily injury, property damage and financial loss resulting from some other snowmobiler who hits you and has no insurance or liability limits less than your own policy.

Cost

The cost of insurance for your snowmobile varies depending on the coverage you buy and the type of machine you drive, as well as where you live and ride and some other factors.

Reach out to your insurance professional for more information about your snowmobile insurance options so you can be sure to get the right type and level of coverage.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.

Written content in blog post: Copyright © 2020 Applied Systems, Inc. All rights reserved.