Wednesday, January 19, 2011
http://www.matthewdavisinsurance.com/FAST_FACTS_FAX_-_NIS.pdf
http://www.matthewdavisinsurance.com/FAST_FACTS_FAX_-_NIS.pdf
Friday, June 4, 2010
Recommendations When Purchasing Business Insurance for Rental Companies
Recommendations When Purchasing Business Insurance for Rental Companies
General Liability
This is protection for your business in the event your business operations cause injuries and/or damage to other people and their property. It is vitally important in this day and age that a rental operation have at least a 1 Million per Occurrence and a 2 Million Aggregate General Liability Policy. Most insurance companies will not issue a general liability policy with a lesser limit of coverage.
Building Coverage
We highly recommend that one insure their building to its Full Value using 100% Replacement Cost as its valuation. Some policies use an 80% co-insurance clause with their building valuation. This could cause some problems if a major claim arises. When one insures their building at 100% Replacement Cost, the claims process functions better in the event of a loss.
Business Personal Property (Contents)
BPP should include the following and also be insured at a 100% Replacement Cost evaluation: furniture and fixtures, computer hardware and software, sales inventory, tools (not rental inventory), machinery not held for rental and improvements & betterments.
Business Income Coverage
Business Income coverage will protect the rental operation for the actual loss of one’s net profits plus continuing expenses, including loss of rents that results from the necessary suspension of one’s operations during the period of restoration caused by direct physical damage to property at one’s location. The basic rule of thumb is whatever one’s total gross annual income is, take 30% to 40% of that gross annual income, and that can be used for a basis on Business Income Coverage. Be sure the policy has no coinsurance or monthly limitations.
Business Auto Coverage
This coverage provides protection against claims arising out of the operation, maintenance or use of owned, non-owned or hired autos including trailers (above 10,000 gross vehicle weight). One should have their automobile liability limit set a 1 Million along with the Uninsured and Underinsured Motorist coverage. Depending on the state where the business is located, one should have at least $5,000 in Medical Payments Coverage or Personal Injury Protection. Some rental operators have their personal vehicles insured under their business policy. If this is the case, one must have Driver of Other Car Coverage in place on their business auto policy.
Inland Marine
This policy covers the rental inventory and should be listed on a Replacement Cost basis. We strongly encourage our clients to utilize the following formula to come up with a good solid value for their rental equipment on a Replacement Cost basis to be properly insured. One should take the cost of their rental inventory listed on their balance sheet, find out what the average age of their equipment is, and multiply 3% per year on the average age of their equipment. For example, if one’s cost of rental equipment is $250,000 and the average age of their inventory is 4 years, one would then do the following:
$250,000 x 3% = $257,500
$257,500 x 3% = $265,225
$265,225 x 3% = $273,182
$273,182 x 3% = $281,377
This formula is a good standard for figuring out the Replacement Cost of one’s rental inventory.
Workers’ Compensation
Many policies in the insurance market place today write the standard Employer’s Liability limit at a minimum. The minimum limit is $100,000 Each Accident / $500,000 Disease -Policy Limit / $100,000 Disease-Each Employee. To better protect the insured, we strongly recommend that the Employer’s Liability Limit be raised to $500,000 Each Accident / $500,000 Disease-Policy Limit / $50,000 Disease-Each Employee. The cost for this higher limit of coverage is only about 1.5% higher than the lesser limit of coverage.
Umbrella Policies
Depending on the size of one’s rental operation or assets of the rental operation, one may want to consider an umbrella policy. An umbrella policy is additional protection that basically can be placed over the general liability policy, automobile liability policy and in some cases the Workers’ Compensation Policy. The basic umbrella policy affords an additional 1 Million Dollars in coverage. Larger rental operations may want to have a higher limit of protection.
Certificates of Insurance
Most rental operations are beginning to request certificates of insurance from their contractors and business accounts. We highly recommend our clients request certificates of insurance with the Additional Insured endorsement on their customer’s general liability policy. Secondly, we suggest our clients request certificates of insurance with the Loss Payee clause for “equipment rented” on their customer’s policy. Both of these certificates of insurance help protect our clients, their insurance company, and assists in lower premiums.
Insurance Company – A Final Note
We all remember when we were in school and at the end of a grading period; the teacher would assign grades for one’s work. (A, B, C, etc.) If you were like me, you didn’t see too many of those “A” grades. All insurance companies receive a rating from either AM Best or Standard & Poor. In our ever changing world, the final strength of an insurance company is paramount. The “rating” given to an insurance company depicts the financial strength and claims paying ability of that insurance company. We strongly recommend utilizing an insurance company that not only specializes in insuring the rental industry, but also has at least an “A” rating within the insurance industry. We at National Insurance Specialists only utilize insurance companies whose ratings are at least an “A” with a financial strength of “VII” or better.
The information contained here is to be used as a “guide”. Each rental operation, though similar, is unique and many coverages will need to be “tailored” to meet their needs. This is why it is important to be insured with an insurance agency that knows and understands the needs of the rental industry. The insurance agents of National Insurance Specialists, average 15 years of experience assisting rental dealers with their business insurance needs.
General Liability
This is protection for your business in the event your business operations cause injuries and/or damage to other people and their property. It is vitally important in this day and age that a rental operation have at least a 1 Million per Occurrence and a 2 Million Aggregate General Liability Policy. Most insurance companies will not issue a general liability policy with a lesser limit of coverage.
Building Coverage
We highly recommend that one insure their building to its Full Value using 100% Replacement Cost as its valuation. Some policies use an 80% co-insurance clause with their building valuation. This could cause some problems if a major claim arises. When one insures their building at 100% Replacement Cost, the claims process functions better in the event of a loss.
Business Personal Property (Contents)
BPP should include the following and also be insured at a 100% Replacement Cost evaluation: furniture and fixtures, computer hardware and software, sales inventory, tools (not rental inventory), machinery not held for rental and improvements & betterments.
Business Income Coverage
Business Income coverage will protect the rental operation for the actual loss of one’s net profits plus continuing expenses, including loss of rents that results from the necessary suspension of one’s operations during the period of restoration caused by direct physical damage to property at one’s location. The basic rule of thumb is whatever one’s total gross annual income is, take 30% to 40% of that gross annual income, and that can be used for a basis on Business Income Coverage. Be sure the policy has no coinsurance or monthly limitations.
Business Auto Coverage
This coverage provides protection against claims arising out of the operation, maintenance or use of owned, non-owned or hired autos including trailers (above 10,000 gross vehicle weight). One should have their automobile liability limit set a 1 Million along with the Uninsured and Underinsured Motorist coverage. Depending on the state where the business is located, one should have at least $5,000 in Medical Payments Coverage or Personal Injury Protection. Some rental operators have their personal vehicles insured under their business policy. If this is the case, one must have Driver of Other Car Coverage in place on their business auto policy.
Inland Marine
This policy covers the rental inventory and should be listed on a Replacement Cost basis. We strongly encourage our clients to utilize the following formula to come up with a good solid value for their rental equipment on a Replacement Cost basis to be properly insured. One should take the cost of their rental inventory listed on their balance sheet, find out what the average age of their equipment is, and multiply 3% per year on the average age of their equipment. For example, if one’s cost of rental equipment is $250,000 and the average age of their inventory is 4 years, one would then do the following:
$250,000 x 3% = $257,500
$257,500 x 3% = $265,225
$265,225 x 3% = $273,182
$273,182 x 3% = $281,377
This formula is a good standard for figuring out the Replacement Cost of one’s rental inventory.
Workers’ Compensation
Many policies in the insurance market place today write the standard Employer’s Liability limit at a minimum. The minimum limit is $100,000 Each Accident / $500,000 Disease -Policy Limit / $100,000 Disease-Each Employee. To better protect the insured, we strongly recommend that the Employer’s Liability Limit be raised to $500,000 Each Accident / $500,000 Disease-Policy Limit / $50,000 Disease-Each Employee. The cost for this higher limit of coverage is only about 1.5% higher than the lesser limit of coverage.
Umbrella Policies
Depending on the size of one’s rental operation or assets of the rental operation, one may want to consider an umbrella policy. An umbrella policy is additional protection that basically can be placed over the general liability policy, automobile liability policy and in some cases the Workers’ Compensation Policy. The basic umbrella policy affords an additional 1 Million Dollars in coverage. Larger rental operations may want to have a higher limit of protection.
Certificates of Insurance
Most rental operations are beginning to request certificates of insurance from their contractors and business accounts. We highly recommend our clients request certificates of insurance with the Additional Insured endorsement on their customer’s general liability policy. Secondly, we suggest our clients request certificates of insurance with the Loss Payee clause for “equipment rented” on their customer’s policy. Both of these certificates of insurance help protect our clients, their insurance company, and assists in lower premiums.
Insurance Company – A Final Note
We all remember when we were in school and at the end of a grading period; the teacher would assign grades for one’s work. (A, B, C, etc.) If you were like me, you didn’t see too many of those “A” grades. All insurance companies receive a rating from either AM Best or Standard & Poor. In our ever changing world, the final strength of an insurance company is paramount. The “rating” given to an insurance company depicts the financial strength and claims paying ability of that insurance company. We strongly recommend utilizing an insurance company that not only specializes in insuring the rental industry, but also has at least an “A” rating within the insurance industry. We at National Insurance Specialists only utilize insurance companies whose ratings are at least an “A” with a financial strength of “VII” or better.
The information contained here is to be used as a “guide”. Each rental operation, though similar, is unique and many coverages will need to be “tailored” to meet their needs. This is why it is important to be insured with an insurance agency that knows and understands the needs of the rental industry. The insurance agents of National Insurance Specialists, average 15 years of experience assisting rental dealers with their business insurance needs.
Thursday, February 4, 2010
Wednesday, February 3, 2010
Tuesday, January 12, 2010
Scaffolds
A scaffold is any temporary elevated platform and its supporting structure
used for supporting people, or materials, or both. Scaffolds provide access
to elevated work areas in a way that cannot be done safely by other
means. Scaffolding is used in a variety of applications in new construction,
renovation, maintenance, painting, etc. Scaffolds provide a safe and more
comfortable work alternative than hanging from the top or working from
ladders. Properly erected and maintained, scaffolding provides safe access
to work locations, level working platforms, and temporary storage for tools
and materials.
According to a recent study done by West Virginia University, accidents
involving scaffolding are caused mainly by equipment failure, incorrect
operating procedures, and environmental conditions; which cause both
people and material to fall. The primary factors in accidents include failure
of attachment points, parts failure, inadequate fall protection, and adverse
climate conditions (such as high winds). Eighty percent of all scaffold
injuries are related to falls; of those injured, 60% involve skilled trades,
and 24% are laborers.
Since most scaffold accidents are related to equipment and operations, it’s
important that the people who use scaffolds receive training in their proper
erection, inspection, maintenance, and use. The competent persons should
receive additional training in scaffold selection, site conditions, hazard
recognition, and protection of ground employees and the general public.
Fall protection should be required for employees when they erect, dismantle,
or make alterations to scaffold systems. Many serious falls occur during these
operations because the scaffolds are incomplete (and therefore, unstable).
Standard rails are required on all scaffold platforms. Be sure that guard rails
are removed only during on- or off-loading of materials, and be sure they are
replaced immediately. Ensure that people who are working on the scaffold(s)
during the time the guard rails have been removed wear fall protection.
Inspect scaffolds prior to erection, noting condition and any defects. Reject
any defective parts from use until they have been properly repaired. Once a
scaffold is erected, be sure to inspect it before each work shift, after any
modifications are made, and especially after any change in weather conditions.
After each inspection, note the time, date and the competent person’s
name into the job’s daily work log. Provide overhead protection for people
who are exposed to overhead hazards while they are working on scaffold(s).
If people will be passing or working under the scaffold, provide them with
adequate protection against falling objects.Scaffolds are a cost-effective and safe method for providing
temporary elevated work areas if they are in good repair,
properly erected, properly maintained, and used within their
design limits. Education and training will minimize many of
the problems associated with scaffolds.
used for supporting people, or materials, or both. Scaffolds provide access
to elevated work areas in a way that cannot be done safely by other
means. Scaffolding is used in a variety of applications in new construction,
renovation, maintenance, painting, etc. Scaffolds provide a safe and more
comfortable work alternative than hanging from the top or working from
ladders. Properly erected and maintained, scaffolding provides safe access
to work locations, level working platforms, and temporary storage for tools
and materials.
According to a recent study done by West Virginia University, accidents
involving scaffolding are caused mainly by equipment failure, incorrect
operating procedures, and environmental conditions; which cause both
people and material to fall. The primary factors in accidents include failure
of attachment points, parts failure, inadequate fall protection, and adverse
climate conditions (such as high winds). Eighty percent of all scaffold
injuries are related to falls; of those injured, 60% involve skilled trades,
and 24% are laborers.
Since most scaffold accidents are related to equipment and operations, it’s
important that the people who use scaffolds receive training in their proper
erection, inspection, maintenance, and use. The competent persons should
receive additional training in scaffold selection, site conditions, hazard
recognition, and protection of ground employees and the general public.
Fall protection should be required for employees when they erect, dismantle,
or make alterations to scaffold systems. Many serious falls occur during these
operations because the scaffolds are incomplete (and therefore, unstable).
Standard rails are required on all scaffold platforms. Be sure that guard rails
are removed only during on- or off-loading of materials, and be sure they are
replaced immediately. Ensure that people who are working on the scaffold(s)
during the time the guard rails have been removed wear fall protection.
Inspect scaffolds prior to erection, noting condition and any defects. Reject
any defective parts from use until they have been properly repaired. Once a
scaffold is erected, be sure to inspect it before each work shift, after any
modifications are made, and especially after any change in weather conditions.
After each inspection, note the time, date and the competent person’s
name into the job’s daily work log. Provide overhead protection for people
who are exposed to overhead hazards while they are working on scaffold(s).
If people will be passing or working under the scaffold, provide them with
adequate protection against falling objects.Scaffolds are a cost-effective and safe method for providing
temporary elevated work areas if they are in good repair,
properly erected, properly maintained, and used within their
design limits. Education and training will minimize many of
the problems associated with scaffolds.
Scissor Lifts
Scissors lifts are an efficient and safe method of providing a temporary
elevated work platform for many constructions operations. However, if these
lifts are not maintained or used properly, accidents can occur. Every year in
the United States, about 190 people become construction fatalities due to
improper use of scaffolds. Falls, electrocution, and overturns of scissors lifts
are the leading causes of these senseless accidents.
All of these accidents are preventable. Always apply good judgment and
common sense when using these scaffolds. Check these common sense items
before you use that scissors lift.
Serious Scissors Lift Hazards
• Operating on rough ground, holes, improper set-up, overturn.
• Operating too close to energized overhead lines or parts.
• Overloading the lift.
• Climbing on the rails; falling from the platform.
• Using the lift as a crane
General Guidelines for Using Scissors Lift
• Train workers adequately before they use the scissors lift.
• Ensure that workers understand all the unique characteristics of a
scissors lift.
• Use lifts only under proper supervision.
• Before each use, inspect the scissors lift to be sure it is serviceable.
• Check to be sure that the lift is free of defective or damaged parts.
• Be sure that people have and use the access points to the lift.
• Be sure that the platform and working surfaces are free of debris, ice,
mud, etc.
• Be sure that the operating area is level, with no holes or depressions.
• Make sure that the guardrails, midrails, and toeboards are installed and
the entry gates are latched.
• Ensure that workers are tied off to the lift with a full body harness.
Before you use that scissors lift, take the time to think it out. Use good
judgment and common sense. Do not become a statistic simply because you
did not think!
elevated work platform for many constructions operations. However, if these
lifts are not maintained or used properly, accidents can occur. Every year in
the United States, about 190 people become construction fatalities due to
improper use of scaffolds. Falls, electrocution, and overturns of scissors lifts
are the leading causes of these senseless accidents.
All of these accidents are preventable. Always apply good judgment and
common sense when using these scaffolds. Check these common sense items
before you use that scissors lift.
Serious Scissors Lift Hazards
• Operating on rough ground, holes, improper set-up, overturn.
• Operating too close to energized overhead lines or parts.
• Overloading the lift.
• Climbing on the rails; falling from the platform.
• Using the lift as a crane
General Guidelines for Using Scissors Lift
• Train workers adequately before they use the scissors lift.
• Ensure that workers understand all the unique characteristics of a
scissors lift.
• Use lifts only under proper supervision.
• Before each use, inspect the scissors lift to be sure it is serviceable.
• Check to be sure that the lift is free of defective or damaged parts.
• Be sure that people have and use the access points to the lift.
• Be sure that the platform and working surfaces are free of debris, ice,
mud, etc.
• Be sure that the operating area is level, with no holes or depressions.
• Make sure that the guardrails, midrails, and toeboards are installed and
the entry gates are latched.
• Ensure that workers are tied off to the lift with a full body harness.
Before you use that scissors lift, take the time to think it out. Use good
judgment and common sense. Do not become a statistic simply because you
did not think!
Falls
Falls from construction equipment cause serious injuries to operators and
service people. The larger the equipment, the greater the fall distance, and the
more severe the injuries.
Many falls occur because of poor house-keeping. Oil, mud, and grease accumulate
on the equipment. Also, in cold weather, frost, ice and snow can build
up on the equipment to create slippery surfaces.
Steps, ladders, and grab bars are installed on most new equipment. They are
to be used for mounting or for dismounting the equipment, and are there for
your safety.
Checking the engine and other servicing locations can be difficult. The job
can be done more quickly and more safely using a stepladder. Take the time
to locate and use a safe stepladder.
Points to remember:
• When climbing on the equipment, use the hand and step holds.
• Avoid doing the “split” to make long reaches.
• Avoid carrying packages or tools when mounting or dismounting.
• Wear appropriate footwear.
• Never jump from the equipment.
• Report any damaged handholds or footholds so they can be repaired.
• Advise the master mechanic if the machine needs additional rails or steps.
• Keep your machine free of leaks; clean off mud, ice, snow, grease and oil
that can make surfaces slippery.
We want you to be safe on the job. Please do your part to protect yourself!!
For more information, contact your local Hartford agent or your Hartford
Loss Control Consultant. Visit The Hartford’s Loss Control web site at
http://www.thehartford.com/corporate/losscontrol/
service people. The larger the equipment, the greater the fall distance, and the
more severe the injuries.
Many falls occur because of poor house-keeping. Oil, mud, and grease accumulate
on the equipment. Also, in cold weather, frost, ice and snow can build
up on the equipment to create slippery surfaces.
Steps, ladders, and grab bars are installed on most new equipment. They are
to be used for mounting or for dismounting the equipment, and are there for
your safety.
Checking the engine and other servicing locations can be difficult. The job
can be done more quickly and more safely using a stepladder. Take the time
to locate and use a safe stepladder.
Points to remember:
• When climbing on the equipment, use the hand and step holds.
• Avoid doing the “split” to make long reaches.
• Avoid carrying packages or tools when mounting or dismounting.
• Wear appropriate footwear.
• Never jump from the equipment.
• Report any damaged handholds or footholds so they can be repaired.
• Advise the master mechanic if the machine needs additional rails or steps.
• Keep your machine free of leaks; clean off mud, ice, snow, grease and oil
that can make surfaces slippery.
We want you to be safe on the job. Please do your part to protect yourself!!
For more information, contact your local Hartford agent or your Hartford
Loss Control Consultant. Visit The Hartford’s Loss Control web site at
http://www.thehartford.com/corporate/losscontrol/
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