California Employment Practices and Liability Insurance - EPLI

 One of the most known stories in the media today surrounds the sexual abuse allegations of Hollywood producer Harvey Weinstein. These allegations from many women have mobilized the Me Too and Times Up movements to rally against the abuse of power in Hollywood and in the general workplace.  However, the Harvey Weinstein scandal has done much more, even making an impact in the insurance industry. More specifically, it has affected California Employment Practices and Liability Insurance (EPLI) quotes and this impact is now being known as the “Weinstein Effect.”

What is the “Weinstein Effect”?

The “Weinstein Effect” refers to an anticipation of an increase in sexual harassment and discrimination claims in the workplace within the upcoming months, and quite possibly years. As many people gain more knowledge and interest in this matter, as well as confidence to speak out when witnessing misconduct, claims are likely to increase.

What does this mean for California EPLI?

A California EPLI quote specifically covers misconduct and wrongful acts found in the employment process, including acts of sexual harassment or discrimination. EPLI protects you from allegations of current, former, or even potential employees.  Depending on the claims and allegations, not only would EPLI come into play but also other management liability insurance coverages. An increase in claims will, as a result, increase EPLI premiums. The “Weinstein Effect “ will also encourage business owners to either sign up for California EPLI, if they do not have this coverage already, or fortify their current coverage. Such ways of doing so are by increasing limits or changing current coverage to a stand-alone policy instead of including it in a package policy.

How to sign up for an EPLI quote?

With all the many allegations toward Harvey Weinstein and so many others, business owners are seeking protection from any possible claims within their own business. If you do not have EPLI or have questions about it, find a commercial insurance broker for a California EPLI insurance quote today to see if it is right for you! As you may have seen, these claims can be costly in many different ways so EPLI is worth the investment, especially during the times of the “Weinstein Effect,” so you can fully protect yourself and your business!

Is California Business General Liability Mandatory?

Business owners have most likely come across the term “General Liability” at some point while discussing business insurance requirements. But what is this coverage and is it required for all business owners? California law requires only one type of insurance and that is workers compensation insurance for companies with employees. Thus, general liability is not mandatory for state law but can be needed as you continue your business, whether you are applying for a license or trying to meet the requirements of a client. You will come to find out that although not a California requirement, general liability coverage will open up more opportunities for your business while also serving vital protection to your company in the event of a lawsuit. Let’s take a look at what general liability is, why you need it, and how to apply for a general liability quote!

What is Business California General Liability?

General Liability protects you, as the business owner, if you are found liable for any injury or property damage suffered by a third party (such as a customer or guest) as a result of your business activities. This coverage includes defense and investigation costs in the event of a suit or claim against you, as well as any settlement payments.

General Liability insurance not only protects you but also anyone affiliated with your business including executives, stockholders, directors, partners, spouses, employees, volunteers, and any person or organization you have an indemnification contract with.

There are many different coverages included in a general liability policy. Some of the common coverages include:
1. Bodily Injury- covers a third party’s injury or sickness that your business is found legally responsible for by paying their medical bills, loss of income, and payments to their families in the event of their death.
2. Property Damage- pays for the physical damage or loss of use of another’s property that is deemed as a result of your business or your negligence. However, this will not cover  damage of someone’s property that you provide a service to (such as a mechanic working on a client’s vehicle).
3. Products-Completed Operations- covers injuries that resulted from your product or service
4. Personal Liability- protects against claims of non-physical damage to another such as publishing false info and slander.

In addition to these coverages, others can be added to fit the needs of your business better such as hired auto & non-owned auto or liquor liability. Talk to an agent to find out what coverages to include in your general liability quote to meet the needs of your specific business.

Why Do You Need General Liability?

As mentioned before, although general liability is not a state requirement/law, it is still commonly requested by people you work with or who you have to sign a contract with. Thus, general liability quotes can open up opportunities to work with more clients.

Clients commonly require general liability from companies they hire because it means that if you are sued, you will still have financial protection against that suit to stay in business and finish the job you agreed to do. It also means that you have the finances to pay for damages or an injury that you may have caused toward your client. They see that you are not as much of a risk to work with and they have the peace of mind that you will take care of any incident that should arise because you are properly covered by your general liability policy and no liabilities will be directed their way.

How to Apply for Business General Liability?

Most business owners apply for general liability coverage shortly after they start their company as it is usually required for applying for professional licenses and signing a lease for an office space.
When applying, business insurance companies will first look at your business’ history of insurance claims and what type of work your business does to assess how big of a risk it is to insure you. If you are in a high risk line of work or have a history of being sued, you may have fewer options for insurance as many insurance carriers may decline to work with you. Fortunately, there are still quote options for high risk businesses so make sure you discuss these with a business insurance agent.

California General Liability is not a one-size-fits-all policy and so the coverage you include on your policy should be tailored to meet your business’ specific risks. For example, some companies like a toy manufacture should make sure to have product liability coverage should a child get hurt from one of their toys while other companies could afford to skip this. Provide details into the operations of your business to an expert business insurance broker who will be able to help you in customizing your general liability policy.
While applying, you also may want to consider if you would like an individual policy for general liability coverage or if you want to include this coverage in a business owner policy or BOP. A BOP is a business insurance package that offers common insurance coverages for small business owners including general liability. Talk to a broker today to discuss which is better for your business.

Getting Started!

By filling out an application, providing information on your business, and working closely with an insurance broker, you are sure to have great general liability insurance quote options for your business in no time. Contact a broker today to obtain quotes and compare the costs to find the best rate and fullest coverage that you and your business deserve!

California Home Health Care and how you can protect yourself!

When you are a business owner, particularly of an in-home health care company, your life is constantly about dedication and commitment. You dedicate every effort into running your business so that it may dedicate its success to taking care of the local senior community. With so much devotion you put into your business, you owe it to yourself to protect it at every possible angle. As the in-home health care business continues to grow with most patients preferring treatment and care in the comfort of their own homes, you will continue to see your business and its risks grow within your business. However, a proper and thorough insurance plan will make sure to defend you against those risks, both the common and the industry-specific. Here is what you need to fully insure your California home health care business and why this is essential!

What You Need

There are many different types of coverage that would be helpful for any California home health care business. Here are three types of California business insurance quotes that are essential for your specific business and a great place to start when shopping for coverage:

• Professional Liability: Also known as Errors & Omissions or Medical Malpractice for the medical industry, this business insurance quote is a must. As the name suggests, this insurance coverage will protect your business from lawsuits claiming malpractice, misconduct, or negligence. This not only covers you but also the claims made against your employees. Since a patient’s condition could suddenly change without warning, even the most careful medical practitioners can find themselves in situations where the patients could file a claim against you and your employees, even if you are not to blame. Thus, it is important to be prepared for such scenarios with medical malpractice coverage. Another reason is due to the terribly inevitable: we are all humans and we all make mistakes. You or an employee can make an honest mistake while treating a client which can result in a lawsuit that could threaten your entire business. Fortunately medical malpractice will cover such mistakes. Lastly, it is especially important for business owners within your industry to have this coverage because of the nature of your business operations. Since you will not be there supervising your employee while he or she is treating your patient, you will be less knowledgeable about how that employee is working. Because of this, misconduct will usually be discovered by your client before it is discovered by you, increasing your chances of a lawsuit or claim by a dissatisfied patient.
• Workers Compensation: This is a California state law for every business. Although this is a common insurance quote to have for any business, it will cover the unique working environments your employees will face. Since your employees will be spending their time in patients’ homes, under which the conditions may not be as safe as you would have them if your employees were working in a facility, workers comp becomes extremely important. The unpredictable nature of where your workers are working and what type of people they are encountering, workers comp will play a large role in insuring your company and your employees’ safety while working for you.
• General Liability: This coverage will protect you against the non-medical risks that your business is still exposed to. The liability insurance quote includes any bodily injury or property damage lawsuit against your business as well as onsite coverage if you have a separate company office.

Depending on your specific business needs and operations, you may want to look into other insurance policies to accompany the ones mentioned make sure you have all the coverage that you need. Also, please keep in mind the common exclusions that the above insurance policies will not cover, such as any acts outside of the business operations, intentional and/or criminal actions.

Why You Need Home Healthcare Insurance

The above-mentioned policies are important to you as an home healthcare company business because of the unique and specific risks that you face. As mentioned, taking care of patients can be unpredictable because you can never fully prepare for their individual response to treatment as well as the mishaps that can occur while working in the patients’ home as opposed to a medical facility whose environment is more regulated, equipped, and occupied with other medical clinicians. That heightens the risk to your clients as well as your employees. A common claim that is made in the home healthcare industry is negligence which, unfortunately can find you liable whether you or an employee were negligent or not because, regardless, the patient can claim to perceive negligence. With all the extra risks you face as well as the common risks any small business is exposed to, the right coverages are not only important but some would deem necessary to keep your business fully protected and running smoothly and successfully.

How to Get Home Healthcare Insurance

After everything discussed, the risks may seem overwhelming but the right insurance coverage will alleviate your worries about these risks as you will feel confident that your business will be protected so you can focus on the valuable care that you bring to your senior community and the successful business you intend to build. Talk to an insurance broker with the full knowledge and expertise of this industry so they can provide business insurance quotes that meet all your insurance needs. With all the dedication you give to your business and your community, you deserve the same dedication with regard to your California business insurance.

Insurance needs for your California Catering Business

During those special celebratory events, guests want to be able to enjoy themselves and the company of their loved ones. As the caterer for these special celebrations, you want to make sure the event is running smoothly so your guests can do just that. The last thing anyone wants to be concerned with is what can go wrong. Unfortunately, given the many risks in the catering industry, accidents and mishaps can occur. However, if your catering business is fully insured with the right insurance broker, you can feel confident that any claim that should arise will get resolved promptly and thoroughly. Let’s take a look at what it means to be properly insured and what kind of insurance quotes you will need.

What every California Catering Business Needs
All catering companies experience many risks that are unique to your business. That’s why these common California business insurance policies/quotes for catering companies are necessary in responding to these risks:

• General Liability – Protects you if someone gets hurt at your location or event or from your business operations/equipment
• Professional Liability- Provides coverage for the professional food service your company supplies
• Business Property- Covers any damage to your office or any other structure you use for your business from fire or theft.
• Commercial Auto- Protects any delivery vans or vehicles used to transport food and employees
• Workers Compensation- Provides coverage for any employee that gets injured on their job duties

What All California Catering Businesses Should Consider

For those catering companies that serve alcohol or want as much coverage as possible, it is important to consider adding the following to their California business insurance quote:

Liquor Liability- Covers you against lawsuits claiming your business overserved, served underage customers, and/or served alcohol to someone who later harmed another person; even if the harm was done off the premise of your business

Food Spoilage- Helps business who have large amounts of stored food as this covers losses due to food and inventory that spoiled because of equipment malfunctioning

Cyber- If your company has an internet presence, this is helpful as it protects from Internet-related risks such as data breaches

Assault & Battery-  Can be included as part of General Liability or Liquor Liability, this provides coverage against claims involving physical and/or verbal altercations deemed threatening or harmful when at one of your business events or business premises

In order to obtain the best California business insurance quotes for your catering company, it is crucial to find the right broker who understands your general industry needs as well as your specific needs as an individual business. Call a business insurance broker today so they can get started on providing you with quotes and working hard for you so you can have peace of mind for your business and focus on serving your clients.

How a California EPLI (Employment Practices Liability) Insurance policy can help your business!

A strong relationship between an employer and employee can be key to a successful business and is an important goal for many business owners. When both are working together as a team, your company runs more smoothly and solid camaraderie can develop. However, when an employer and employee are at odds, that relationship can grow bitter rather quickly.  As the employer, you never know how things will transpire with an employee so it is important to be prepared and protected if an argument with one of your workers escalates into a lawsuit, as a lawsuit can potentially affect the well-being of your company. California Employment Practices Liability Insurance (EPLI) can help. It provides protection for your business for such incidents between you and your employee (s). Although unpleasant to discuss, the risk of an employee going after you and your company for a variety of reasons is always present and needs to be planned for, thus your business must be properly covered. Let’s go over how a California EPLI quote can help and protect you.

From Whoever

Not only can current employees file suit against you but also former employees and even potential new hires. This is important to be aware of and understand that regardless of how responsible you are at conducting your business and keeping immaculate records, anyone involved in your company’s employment process can sue you. However, a California EPLI coverage quote defends against suits made from any type of employee so you can feel secure knowing those potential risks will be protected against.

For Any Reason

Wrongful acts (or claims of wrongful acts) can arise from essentially any part of the employment relationship.  Such reasons for a suit from an employee include:
-failure to promote
-whistleblower retaliation
-breach of employment contract
-wrongful termination
-violation of civil rights laws
-discrimination or harassment
-wage and hour (sometimes excluded and can be added as endorsement)

For Anyone

Regardless of your business size (whether a small, local business or a national corporation), your company is still at risk and could result in bankruptcy from one employee lawsuit if EPLI coverage is not in place. Since allegations and altercations can occur whether you have one employee or 1,000 employees, all types of businesses can benefit from California EPLI quotes and the security it provides.

As you can see, a California EPLI quote is a vital part of any business to ensure you are protected from within. Reach out to an insurance broker about receiving a quote and adding EPLI coverage to your business so you can start enjoying the process of building a solid work team knowing you have the coverage and peace of mind to do so.

Do I need California Professional Liability Insurance? What exactly does it cover?

No one is perfect and, we can all admit that at one point or another, we have made a mistake while at work. Whether it was forgetting to relay that phone message to a coworker or writing down a customer’s dinner order incorrectly; mistakes happen. However, for professional occupations, even the smallest mistakes can result in serious consequences, such as lawsuits and/or a ruined business reputation. Since mistakes are inevitable, protect against them with a Professional Liability insurance quote. Such a quote will instill coverage that one may need when the unpredictable or the imperfect occurs at the job site, protecting business owners in the event that a client sues for negligence, inaccuracies, or oversights. Professional Liability, also known as Errors & Omissions, covers defense costs for these lawsuits, which is sometimes not covered by other types of insurance in California and thus is truly significant in providing full coverage.

Most California business owners ask their insurance agents for a General Liability quote however, as essential and important as this coverage may be, it does not protect against the errors that may occur during a professional service. General Liability protects against advertising slander, injuries and damage that can occur during a job or by a business, including the medical and defense fees. Professional Liability, on the other hand, protects against claims and lawsuits of inaccurate professional services and/or advice. In other words, General Liability provides cover for damage by a trade business while Professional Liability provides coverage for damage by a business consisting of licensed professionals. If you are accused of negligence in a field you are licensed in, Professional Liability comes to your defense.

As the name suggests, professionals can most optimally benefit from a California Professional Liability quote. Business owners who are licensed or certified to provide a professional service to clients are at risk of getting sued for negligence during a service, which is not covered by standard General Liability coverage. Professionals include doctors, consultants, contractors, attorneys, engineers, photographs, beauticians, trainers, and accountants to name a few. Being a licensed professional is an incredible accomplishment and is worth adequate protection. California business owners’ deserve professional coverage that can only be provided by a Professional Liability / Errors & Omissions policy.

Workers Compensation Insurance in California

Safety and security for employees is the spirit of the workers' compensation laws in California and JVRC Business insurance has been helping business in California for over a decade.

Of course it is difficult to find cost effective workers' comp insurance especially in California.

If you need California Workers Compensation Insurance, visit our website and fill out the "Free Insurance Quote" form on the right side of the page linked above.

If you have any questions, please feel free to contact us using the information on the right side of this blog.

Thank you,
Ryan Clark

Tips to Avoid Work-Place Injuries

Depending on what industry you work in, you will be worried about different types of work-place injuries. For example, if you primarily do clerical work then you are probably worried more about ergonomics or back strain from lifting office supplies; if you work as a nurse you might be worried about getting pricked by a needle; and if you work as a construction worker you may be worried about falling from a roof, scaffolding, or type of machinery.  

In addition to the tips below, your broker or workers’ compensation insurance carrier would also be able to provide you with industry-specific safety pamphlets and tips to hand out to your employees.

Tips for Employees (http://www.workers-comp-news.com/preventing.php)

• While working at a computer, sit with your knees at a 90- to 120-degree angle. Using an angled foot rest can help reduce back strain.
• Make sure your chair fits correctly and is ergonomically designed.
• When lifting heavy or awkward items, life with your knees not with your back. Always bend your hips and knees and squat to pick a heavy object while keeping your back straight and holding the object close to your body.
• Don't twist your body while lifting.
• If you must sit for long periods, take frequent breaks to stretch.
• Exercise regularly, focusing on strength and flexibility.
• Change tools and/or equipment. For example, use tools with extension handles that let you stand up rather than stooping.
• To reduce the amount of overhead work you must do, use a lift to raise yourself so you are closer to the work.
• When you pick up or set down a load, don't reach more than 10 inches away from your body.
• Lift any load using a solid two-handed grip
• Use ergonomically designed tools that are designed to fit the hand and body and the job.
• Avoid overexertion. Many injuries at work occur when employees are tired or strained. Don't overdo it because you could suffer an injury. Instead, give your body and your mind time to rest and recover.
• Report any unsafe conditions immediately to a supervisor. If your employer doesn't do anything to fix the hazardous condition, take your concerns to the Occupational Safety and Health Administration (OSHA) or another government agency.

Tips for Employers (http://www.workers-comp-news.com/preventing.php)

• Adopt and enforce safety procedures. OSHA requires employers to follow certain safety procedures, but companies should also develop additional safety rules for their workplaces and their employees.
• Provide adequate safety training for workers and review safety policies with employees on a regular basis.
• Ensure that spills and other potential hazards are cleaned up immediately.
• Do not allow employees to continue working if they are tired or in danger of overexertion because this is a clear recipe for accidents and injuries.
• Ensure that anyone who is operating power equipment or handling hazardous materials has received adequate training on how to use these tools and materials. It's also important that employees know what to do in an emergency.
• Involve employees in the creation of health and safety policies. In addition, listen to workers concerns about unsafe conditions and potentially hazardous processes.
• Correct employees and supervisors who are not following safety procedures
• Create a safety checklist that includes all potential hazards in your workplace.
• Understand the role that ergonomics can play in preventing workplace injuries and reducing repetitive motion disorders.

What if I am not able to pay my insurance premium in full?

Many business owners want to protect their company by carrying the necessary insurance policies, whether it be General Liability, Commercial Auto, Property Insurance, Inland Marine Insurance, or Workers Compensation Insurance. For start-up or small business owners, it can be overwhelming to have to pay the premium in full.

Some business owners may not know that finance companies are available to help lessen the financial burden. Finance companies work the same way as credit cards; they will pay the entire premium up-front and you will pay the finance company a down payment, as well as monthly payments with an interest rate that depends on the size of the loan. You can pay off the entirety of the loan at any point in time without having to pay the interest that would have accrued later in the year. For renewed policies, the interest rate or down payment may increase depending on your previous payment history.

An insurance broker can help set you up with the finance company and finance agreement that will best fit your needs.

What is a certificate of insurance (COI) and why am I being asked to provide one?

A certificate of insurance is a document issued by an insurance company/broker that is used to verify the existence of insurance coverage under specific conditions granted to listed individuals. More specifically, the document lists the effective date of the policy, the type of insurance coverage purchased, and the types and dollar amount of applicable liability (Definition from Investopedia).

If you are being contracted to perform a job (i.e. construction, plumbing, etc.) you may be asked to provide a certificate of insurance. This will prove to your client that you are covered in the event of an incident or claim. Depending on the type of job you are providing, the client will ask for proof of various policies. The two most common policies that are required are General Liability Insurance and Workers’ Compensation Insurance. Proof of General Liability will show that you are insured in case any damages arise from the work you provided to the client. The client is interested in Workers’ Compensation insurance in case any of your employees are hurt on the job on their property.

In addition to a certificate of insurance, you may also be asked for various endorsements including Additional Insured (AI), Waiver of Subrogation, Loss Payee, just to name a few. Additional Insured endorsements are the most common; a client may ask to be “named as additional insured”. This means that the company you are working for will be covered in the event of a claim occurring from your work. Insurance carriers can either provide a Blanket Additional Insured endorsement, which covers any client noted on a certificate of insurance, or a Specific Additional Insured endorsement, which will name the specific company on the endorsement itself.

Reasons to Use an Insurance Broker

CONNECTIONS: Brokers have access to many different insurance carriers and they can shop around for the lowest price. Carriers know that brokers are shopping around with many other carriers so they try to offer the most competitive quotes. Insurance carriers will offer brokers lower rates so they will refer more business.
 
KNOWLEDGE: Brokers are licensed professionals who know and understand the insurance industry 100%. They know the pros and cons of each policy and exactly what policies and coverage you need to protect your company. 

SERVICE: Brokers work to understand your specific needs and can help you decide which policies are best for your company. If you are unhappy with your insurance carrier, your policies can be easily moved since the broker is not dedicated to any specific carrier.

PRIORITIES: Big insurance companies can be hard to get a hold of, insurance brokers are dedicated to customer service and client relations. You are a broker’s top priority.

Are PEO’s Financially Beneficial for Small and Mid-sized Businesses?

In today’s economy everyone is focused on price vs. value and getting the most of their money; A decade ago, PEO’s were more focused on their HR services than the pricing. PEO’s have had to adapt to this change and have found a way to make programs much more affordable.

Here is an explanation of what a PEO actually is and what it can offer:

A PEO offers a bundled program that may include payroll processing, workers compensation insurance, complete HR services, payroll tax collecting and reporting, group health insurance, risk management, and comprehensive legal compliance. To utilize a PEO program, the PEO must process your payroll and provide your workers compensation insurance, all other services (as listed above) can be used at your discretion.  

You are probably thinking to yourself, how can a PEO be competitive in today’s market with all of these extra services provided? That is a great question because traditionally a business is only going to endure costs for what is required or necessary. Surprisingly enough, PEO’s can provide a wide variety of these combined services for less or equal to the premium you pay for workers compensation alone. These programs come in handy for mid-sized companies who have employees who are focused on processing payroll and providing HR services when they can be utilized in other departments that may be more vital to your business.

Another great perk you get with a PEO program is you have NO AUDITS at the end of the year. Since you are processing your payroll with the same company that is providing you your workers compensation insurance, you are paying as you go so there is no need for an audit. This takes away the added stress of owing more money at the end of the year. PEO’s generally do not charge down payments or deposit as well! A PEO program stands by the fact that they can truly allow the client/business to focus on what they do best which is the trade they specialize in and allows the PEO to take care of the rest.

Replacement Cost (RC) vs. Actual Cash Value (ACV) for Commercial Property

Replacement Cost and Actual Cash Value are coverage options that refer to different ways your Property Insurance Policy will cover your building and/or the contents within the building in case they are damaged or lost in a covered risk. Your building and most of your belongings will decrease in value over overtime, so consider these elements when purchasing coverage to protect your business property!

Actual Cash Value is considered basic coverage on Commercial Property policies where your building and contents are replaced with items of like kind and value minus depreciation. In other words your property would be covered for what you might expect to get if you sold it at an online auction, garage sale, or other sales event. 

• For example, if your building was damaged in a covered peril, your property insurance policy would then pay the actual cash value of your building before the loss. This would work the same way for your building’s contents. If you had a 6 year old refrigerator that was worth $1,100 when you bought it, but only worth $300 at the time of the loss, then your policy would replace it with a refrigerator that is worth $300 at that time, or give you the $300 in actual cash. This coverage generally costs much less then the Replacement Cost Coverage option.

Replacement Cost Coverage is more common than Actual Cash Value. If your building and/or building contents are damaged or lost, then your policy will pay to replace your property or repair damages with materials of similar kind and quality without deducting for depreciation. This type of coverage is key for business owners who want their property replaced or repaired to its original state. 

• For example, if your 6 year old refrigerator was damaged and needed replacement, your policy would then provide you with a new fridge of equal quality with out depreciation.

Keep in mind that depending on the real estate market at the time of loss, Replacement Cost might be worth less then Actual Cash Value for your building. Although depreciation has occurred, sometimes the increase in property values can create a situation where actual cash value of your building may exceed the cost of replacing the building with similar kind and quality.

Employee vs. Independent Contractor

Do I have to pay Workers Comp if they are properly classified as a 1099?

As most business owners know, they can hire people in two ways, either as an independent contractor (otherwise known as a 1099) or as an employee.

Employers oftentimes improperly classify their employees as independent contractors for financial benefits such as dodging payroll taxes, avoiding minimum wage requirements, overtime, or rest break rules, and by avoiding reimbursing expenses for performing certain jobs. One of the most common reasons employers label a worker as an Independent Contractor instead of an employee is to avoid covering an employee under “workers’ compensation insurance”. How a worker is classified determines the employer’s responsibility under the Fair Labor Standards Act. Due to the rising misuse of classifying workers as independent contractors, the IRS has stepped up the enforcement of the Fair Labor Standards Act and have developed a 20 point test to determine an employment relationship vs. an independent contractor relationship. Follow this link to review the 20 factors on how to evaluate your worker and their classification.

There is no set definition of the term “independent contractor” but here are some points that might help you distinguish what type of worker you have:

-       Independent Contractors are considered to be self-employed and subject to “self employment taxes.”

-       Independent Contractors control the manner and means by which contracted services, products, or results are achieved. The more control a company has over an employee and how their work is performed, the more likely the workers are employees, not independent contractors.

Here are some factors to consider when comparing a 1099 to an employee (given from the Department of Industrial Relations):

1. Whether the person performing services is engaged in an occupation or business distinct from that of the principal

2. Whether or not the work is a part of the regular business of the principal/alleged employer

3. Whether the principal or the worker supplies the instrumentality, tools, and the work space

4. The alleged employee’s investment in the equipment or materials required by his or her task or his or her employment of helpers

5. Whether the service rendered requires a special skill

6. The kind of occupation, with reference to whether, in the locality, the work is usually done under the direction of the principal or by a specialist without supervision

7. The alleged employee’s opportunity for profit or loss depending on his or her managerial skill

8. The length of time for which the services are to be performed

9. The degree of permanence of the working relationship
10. The method of payment, whether by time or by the job
 

Do I owe workers compensation premium on independent contractors?

This question can be answered on a case by case basis; it depends on the situation of the worker’s employment and the job that is being performed.

Most carriers will ask for proof of workers compensation from the independent contractor. If the 1099 does not have any employees then they are not required to have workers compensation insurance. In that case the carrier will ask for proof of payment or paycheck stubs from two or more other sources of income.  If you have provided proper documentation and both the IRS and your insurance carrier deems your worker as an independent contractor then that worker does not need to be included on your workers compensation coverage.

Be sure to check with an insurance broker on how your current workers compensation carrier classifies independent contractors. If your carrier deems your 1099 as an employee, they will bill you premium on every cent you paid to the worker for the length the policy was active.

Here is another web site to help guide you in the right direction.

http://www.irs.gov/newsroom/article/0,,id=173423,00.html

Or if you have any further questions and would like to speak with someone directly, contact us at (818) 735-7600.

Professional Liability vs. General Liability

It is common knowledge that having proper insurance coverage is very important to help businesses avoid risks and financial devastation; what is not so obvious is deciding which policies are appropriate for your specific company. 

There are different types of Liability Insurance that can protect your business as well as the people with whom your business interacts. You may have heard the terms "General Liability" and "Professional Liability" but not know or understand exactly what they are.

“General Liability” typically covers claims of bodily injury and/or property damage. General Liability can be referenced as: 

1. Exposure as work performed physically with your hands or,
2. Performing an act on a physical object. 

For example, if a plumber is repairing a pipe inside of a home and fails to properly tighten the pipes together, resulting in a leak that causes damage to the home, then General Liability would typically cover the damages.

“Professional Liability” also covers bodily injury and property damage that is caused from a non-tangible occurrence. Businesses who carry professional liability coverage’s are paid to perform a certain non-tangible task. If the task if not performed correctly, then that business can be responsible for the damage done. 

For example, An engineer provides a set of blue prints to a home owner to build their pool. The blue prints provided contained errors and flaws affecting the integrity of the structure. If structural damages arise from the design of the blue prints, professional liability would most likely cover this exposure.

Fake and Fraudulent PEO's: Part I

Currently, 60% of all Professional Employer Organizations (PEOs) in business in the state of California are not legitimate. This bad majority likes to call them selves “Staffing Companies”. These organizations pose and operate like a PEO on the outside to their customers, but inside they pose as a Temporary Staffing Company to their insurance company. 

You are probably wondering, "Why would this affect me?". Working with these types of staffing companies can put your business at risk by leaving you responsible for a claim because of their insufficient insurance coverage. Most staffing companies are not educated with the insurance industry and don’t understand the potential danger that they expose their customers to. 

Before considering a quote from a PEO, make sure to contact an experienced PEO insurance broker first who can refer you to a reliable PEO or do research on a PEO you may already have in mind.

Workers Comp Audits and 1099’s

Workers Compensation insurance companies are always out to collect premium on your 1099’s. Make sure to keep an eye out on a few key things, listed below. 

• 1099 Independent Contractors must have at least two sources of income other than your business. 
• 1099’s should have their own General Liability Insurance Policy.
• They also must carrying their own license to perform the service (if applicable). 

If you can prove that all three of the above items are applicable to each of your 1099 independent contractors during the annual audit, it will be a breeze. 

If have any questions regarding an audit or if you need assistance with your business insurance workers compensation audit, please feel free to contact us at 818-735-7600

California Payroll Services

Having your California Payroll Services performed by an experienced and local company is extremely important. Every state has different Human Resources (HR) and tax laws. To keep up-to-date with the requirements, hiring an experienced and certified company to run your payroll is a must.
To get a quote for the most experienced and competitive payroll companies in the state, contact PEO-Options Insurance Services.

Westlake Commercial Insurance

JVRC Insurance is local commercial insurance brokerage located in Westlake Village, California. We are here to help the local business in the Ventura and Los Angeles Counties save money on their business insurance. If you need an insurance broker who is local, call today. 818-735-7600