So I Sent My Child Off to Daycare....

My daughter turned one in June.  We knew we were going to have to transition her from having Aunty watch her nearly every day to a traditional daycare setting soon.  Panic ensued.  Anxiety was my friend at night. How was my daughter going to be OK if she couldn't even talk to me and tell me how her day went?

Let's talk childcare insurance.  You see, I come from a different perspective.  I come from a side where I see the most horrific claims come through as one of my specialties is in the childcare insurance industry. 

It's pretty astounding to me that some, not all, but some childcare owners are ignorant in that claim scenarios "would never happen at their daycare".  I hear "Our staff is extremely professional and well trained.  Something like that would never happen here."  Fortunately, they're usually right.  But it's not necessarily the staff, parents or visitors that the school or daycare needs to look out for.  It's other children. 

I would say, and this is a rough estimate so don't quote me on this, that approximately 50% of the claims I have seen aren't teacher, instructor or caregiver driven.  It's child vs. child.  Whether that is a hit, a slap, a push or something more inappropriate, children who can't properly express their emotions through words, sometimes turn to violence out of frustration.  I see little bouts of this every day in my daughter.  She tries to communicate with us what she would like.  She points at things, gives us signs.  But at times, we have no idea what she is trying to tell us.  She gets frustrated...and understandably so. 

It turns out that we found an excellent daycare that's right for my daughter and our family.  But, when I did visit other daycares, I not only paid attention to the facility, the employees, the surroundings, but to the other children that were attending.  My daughter would be attending this facility every day with this group of children.  And I needed to feel comfortable with that.

Now I could go on and on about the different types of insurance that is needed for childcare organizations, but here are a few that I believe are overlooked but pertinent to schools, daycare centers and childcare organizations of any kind:

• Failure to Educate - especially here in Silicon Valley, we've seen a major uptick in failure to education claims coming from Pre-K or Kindergarten school settings.  Facilities that make any sort of promise of "curriculum" or learning ability are under fire.  Make sure a failure to educate limit is included in your insurance.
• Incidental Medical Malpractice - this affords coverage for an act, error or omission in providing or failing to provide "incidental medical services", first aid or "good Samaritan" services to a person.  Think of school nurses who accidentally mix up Tylenol and Benadryl or even worse, another child's medication.  Enough said.
• Defense Wording - Some insurance carriers have the right not to defend an accusation or claim.  It's important to have a carrier that has defense wording language that will continue to defend the organization until guilt is admitted or a guilty verdict is determined. 
• Abuse and Molestation - This is a touchy topic and an obvious one.  Many insurance carriers do not provide a separate limit for A&M.  They include a sub-limit for this coverage and it depletes your overall insurance limit for the year.  Find a carrier that will give you a stand alone limit for A&M.  They don't happen often.  But when they do, they are very, very large.  Your organization will need the separate limit.  Trust me. 

As my daughter grows up, I will get to know the child care industry from a more personal level.  Don't skimp out on insurance coverage's for your organization.  Here at The Liberty Company we have an exclusive childcare insurance program that offers the above and many more important insurance coverage's.  Feel free to email me if you'd like some additional information.

Tis the Season for Oktoberfest

Tis the season for leaves changing colors, cool brisk evenings, scary costumes, pumpkin carving contests and OKTOBERFEST!  I have to admit, I'm not a beer drinker.  But, many, many of you out there are.  And judging from how many people attended Campbell's Oktoberfest festival this year, there are NO shortage of people drinking and loving their beer. 


Let's say you are one of the vendor's at an Oktoberfest festival or event.  How do protect your business from the typical mishaps that occur at a festival?  Can't think of any examples on how your business would be at risk for a pesky two day festival?  Here are a few of the top claims that occur from these events:

1.) WEATHER - We can't control it and sometimes, it doesn't cooperate.  You can control this financial risk by getting weather insurance for an event.  Whether it's snow, rain, adverse weather, wind, event cancellation, these types of perils are all insurable.  If you were a food vendor and purchased thousands of sausages for an Oktoberfest event only to find out that the event was cancelled....how would you recoup your cost?  Because let's be honest, where else are you going to need thousands of sausages?

2.) LIQUOR CLAIMS - The vendors serving beer can control how much a festival attendee drinks on site.  But the unfortunate thing is, most eager festival attendees pre-party.  And vendors that are serving alcohol typically don't know how much they've had prior to coming to the event.  If a person at the event gets in a fight, breaks a stores window, or drives off and gets in an accident, the person who served the patron could be sued for the damages.  Make sure that your business is covered by purchasing Liquor Liability if you are in the business of serving alcohol to event goers.  If you are not a bar, tavern, liquor store, etc., you still have an exposure if liquor is being served on your site.  In order to properly protect your business, purchase host liquor liability, a type of policy tailored to someone who is not in the business of alcohol sales, production, or service, but who needs liability coverage for hosting the event.  Liquor liability is normally excluded on all general liability policies unless requested to be included by your agent.

3.) SLIP AND FALLS - This is one of the most typical claim that pops up at events.  Someone trips over uneven payment or a curb...or an extension cord that is helping power one of the vendors stands.  If you are hosting the event, make sure a solid safety procedure is in place for events such as Oktoberfest.  All vendors should be required to sign off on a safety manual prior to setting up shop.  Everything from security, to sanitation, to crowd management, to first aid protocol should be covered in this document.  Whether you have EMS services on stand-by, have a standing first aid station, or both, make sure vendors know who to call or what to do if someone trips and falls or an unfortunate emergency occurs.

4.) VANDALISM - Anyone remember an old cheer?  Let's get a little bit rowdy, R-O-W-D-Y!  This is exactly what happens when you cram a bunch of people drinking alcoholic beverages into a roped off concrete street.   Sounds like fun, right?!  Not if you're a local store that gets it's window broken by a few rowdy festival goers.  If you're a local business owner and know a festival is coming up in the near future, it may be smart to double check your insurance policy to confirm what your glass deductible is let alone your property/general liability deductible.  Secondly, look around the store, do a quick estimated value total for all property in the store and check that against what your business personal property limit is on your current policy.  Most business owners don't have time to update their policies every year so making sure that limit is adequate saves a lot of headaches down the road. 

In short, it pays to be prepared.  Don't gamble on a two day festival by not protecting your business properly.  If your current general liability policies doesn't cover specific events, such as an Oktoberfest, secure event insurance.  It's cheap, easy to obtain and protects against most, if not all of the perils, listed above!  Happy Oktoberfest month!

The Rising Cost of Insurance and How to Cope

There is no denying that insurance costs across the board are beginning to rise.  For the past five years insurance costs kept on diving and diving, dipping lower and lower than I have ever seen before in the marketplace.  Insurance carriers were writing risks at alarmingly low rates that I knew would not be able to be sustained.  One of my previous bosses used to call those carriers "the flavor of the month".  And boy was he right.



Now fast forward to this year.  Carriers are beginning to tighten up their reigns and become more
strict on what they will accept and what they will decline.  Minimum premiums are beginning to rise again and you most likely are seeing more carrier declination's from your broker than quotes.  Some carriers that flourished during these tough times are at "capacity" and not writing any new business.  Ahhhh, the flavor of the month.   In turn, some of my clients are having to now scramble, move carriers yet again and take a substantial premium increase due to choosing those insurance carriers.

A few things to note during these times.

1. It pays to stick with an insurance company that is established and not premature to the marketplace.  Your premiums may be a bit higher than the "flavor of the month" insurance carrier.  But if you can afford the few extra dollars, stick with the more secure, proven carrier.  You will save money in the long run.
   
   
2. Check up on your insurance carrier.  Go to AMBest and look at your insurance carrier's rating, if it is not on your quote that the insurance broker provided.  Typically, anything under A- VII you should avoid as their financial situation may be a little shaky.
   
   
3. Don't be afraid to ask your broker to market your insurance renewal out.  This is their job!  Specifically request a marketing summary of insurance carriers and their responses upon renewal.  This not only helps avoid assumptions that your broker didn't do his or her job, but it also keeps you in tune with what the insurance marketplace is doing.  Are insurance carriers quoting high premiums or are they even quoting at all?  Or are there only a few carriers that will entertain your type of business?  Market, market, market your insurance renewal.  Knowledge is power.
   
   
4. In 2013 and 2014 I would suggest paying close attention to your workers compensation and professional liability lines of insurance.  These are the two lines of insurance that I have seen get hit the hardest in the past year.  Workers compensation rates are rising rapidly and professional liability premiums and deductibles are fluctuating swiftly from carrier to carrier.

The good news is that the even though the flavor of the month's are beginning to be plucked from the pack, the insurance carriers that are remaining will continue to be reliable and successful which should be of comfort to you and your company.  Knowing that your insurance carrier will be there through tough claim situations is what you really want and need.  

If times are hard and you can't afford to stick with Mr. Reliable Insurance Carrier and are forced to go with the Flavor of the Month Insurance Carrier...it's OK.  But just try and get back to that reliable carrier as soon as you're able to.  Your pocketbook will thank you!

Building Trust With Clients Amidst Insurance Scams

Yesterday I had an appointment with a client that has been with me for years.  Halfway through our annual renewal meeting, the CEO told me a horror story about how after twenty years with his personal lines broker, he decided to shop around.  He received a mailer from what seemed to be a legit operation.  He even went to the insurance broker's office.  Everything seemed to check out just fine.

My client did all the right things.  He even consulted with his current agent on the quote the other agent had provided.
His agent of twenty years couldn't come close to the other agents rates and my client ended up going with the new, unknown agent.  Now fast forward three months.  My client could no longer get a hold of the agent and hadn't received his policies.  My client knew something was wrong, filed a complaint with the Department of Insurance and found out that this guy had been scamming many people in the same area.  The twenty year veteran agent took my client back with open arms.  In my meeting with my client he vowed never to leave his personal lines agent because you can't put a price on "trust and honesty".  

And then it hit me, how do I continue to build trust among my clients and prospects when our industry is riddled with scams?  It's always disheartening knowing that opportunists and criminals step up their scamming games after a natural disaster or catastrophe.  They kick people when they're down and in turn, the legitimate, hard working, trustworthy brokers and agents end up getting rolled into this bad wrap.   

A few disciplined practices have given me a leg up on fraudulent insurance brokers.  Here are a few that I find are most important to my clients:

1. BE RESPONSIVE.  Put yourself in your clients shoes.  If you didn't receive a call back from a trusted advisor or consultant within 24-48 hours, would your trust begin to waiver?  Even if I don't have an answer for one of my clients, I still respond and acknowledge I received their message.  Once I look into the issue for my client, I always try and give them a timeline of when this should be resolved by or when we should be receiving the answer.
2. BE PREPARED.  When a client calls for a meeting or asks if you have time to chat in the afternoon, be inquisitive.  Finding out a little more information goes a long way.  It shows my clients that I care about their needs when I prepare ahead of time and answer most if not all of their questions.
3. BE DEPENDABLE.  In short, do what you say you're going to do.  If you say you will call or get an issue taken care of, do it.  Your client will rest easier and build up rapport with you much faster this way.  

My client was right.  You can't put a price on trust and honesty.  

Happy New Year! 2013 Here We Come!

Wishing all of my readers a very happy and safe New Year's!  

Which Workers Comp Wage Thresholds are Increasing for 2013???

Many of us don't agree with the wage threshold hikes, but we're just the messenger for the Workers Compensation Bureau & Insurance Commissioner.  Brokers in our office have had to make difficult phone calls in the past few weeks to our clients and explain the wage threshold increases.  And believe me, no one is happy about the changes.

Here are the workers compensation class codes that will see an increase in wage threshold effective January 1, 2013:

5403 & 5432 - Carpentry $26 per hour to $29 per hour

5467 & 5470 - Glaziers $26 per hour to $29 per hour

5027 & 5028 - Masonry $24 per hour to $27 per hour

5632 & 5633 - Steel Framing $26 per hour to $29 per hour

5446 & 5447 - Wallboard $26 per hour to $31 per hour

Electrical, plumbing, sheet metal and refrigeration class codes were all proposed to be increased but were not approved by the insurance commissioner.   

Also, for California, S.B. 863 was signed into law this past September and effective January 1, 2013.  It's overall goal is to reduce costs within the workers' comp system by addressing critical cost-drivers: minimizing delays in medical treatment, improving access to MPN care and increasing permanent disability benefits.  For more information on new insurance laws coming into effect in 2013 across the nation, check out this Insurance Journal Article HERE.  

Many of our clients are having to reevaluate their books for 2013 and beyond.  We hope that even due to these wage threshold increases that everyone has a prosperous and healthy new year!