Kidnap, Ransom & Extortion Insurance: A Board-Recruitment Advantage for Nonprofit

Author, Jack Marrs, Account Executive, Rancho Mesa Insurance Services, Inc.

High-caliber directors—retired Fortune 500 leaders, public figures with reputational exposure do not join boards on faith. They review bylaws and audited financials, D&O policies and look for a solid approach to managing risk. Then they ask a practical question: “If I am targeted because of my role or if I travel on the organization’s behalf, how will you protect me and my family?” Having Kidnap, Ransom & Extortion insurance answers that question. It shows your organization has thought ahead and lined up real help if something goes sideways—not after the fact. And if you are trying to bring on seasoned, well-connected board members, that goes a long way.

What Does KR&E Provide?

KR&E solves two problems at once. First, it provides immediate access to specialist crisis-response consultants, 24/7, who help manage live incidents such as kidnapping, extortion (including threats), wrongful detention, hijacking, disappearance, and hostage events. Second, it reimburses costs such as crisis-consultant fees, security and medical expenses, travel and accommodations, and ransom/extortion payments. AIG’s CrisiSolution is a representative market offering with broad peril definitions, global reach, and round-the-clock support designed for organizations with people on the move.

A nonprofit with an AIG KR&E policy is not improvising translators, legal contacts, or tactics in an unfamiliar country. It comes with worldwide coverage and a 24/7 crisis-response team, people who speak the language, know local laws, and give directors confidence before they agree to joining your board.

Why Do Top Board Candidates Care about KR&E?

Seasoned directors evaluate mission and risk together. They want to see robust D&O, travel-risk protocol, and KR&E where international work may create exposure. When you can say, “Yes, here is our KR&E, our 24/7 number, and how it integrates with our travel policy,” you make it easier for the people whose time and networks you value to say yes. When you are recruiting, KR&E is a dead-giveaway that you take director safety seriously. If it is missing and your mission carries obvious risk, you are essentially asking directors to take on significant personal exposure without the right tools. The best candidates will not accept that risk.

Where Do Non-Profits Feel the Most Risk?

• International site visits and program launches. Work in parts of Latin America, East Africa, the Middle East, or Southeast Asia can increase the exposure

• High-profile Board and advisory members. Public figures and major donors can be targeted for their wealth or their influence.

• Fundraising travel and donor trips. These are exactly the kinds of situations KR&E is built for and it brings two things you need fast, people on the ground who know exactly what to do, and money to cover the costs so things do not spiral.

How To Present KR&E During Board Recruitment

1. Be upfront that Board service can involve travel and being in the spotlight. Your nonprofit has invested in protection to support directors and their families if something goes wrong.

2. Be specific about resources. Share the 24/7 hotline and what the response team actually does in the first hours—coordinating with authorities, retaining local counsel, managing secure communications, and arranging logistics.

3. Walk through pre-trip risk reviews, itinerary controls and emergency contacts.

Bottom line

KR&E alone will not close the deal, but it clears a major hurdle for top candidates who want straight answers and solid safeguards. If you want proven leaders on your board, make KR&E non-negotiable. Tighten up your travel-risk plan, give Rancho Mesa a call to learn more about AIG’s CrisiSolution. That alone can flip a hesitant maybe to a solid yes.

To learn more about how Rancho Mesa can support your organization’s needs, contact me at (619) 486-6569 or jmarrs@ranchomesa.com.

Protecting the Organization and Employees When Offering Retirement Plans

Author, Sam Brown, Vice President, Human Services Group, Rancho Mesa Insurance Services, Inc.

In this competitive labor market, employers may offer ERISA (Employee Retirement Income Security Act of 1974) compliant retirement plans to draw and retain a talented workforce. It makes sense; data shows that retirement benefits reduce turnover, build employee trust, and offer predictable retirement savings.

Exposure to Liability

While an ERISA plan offers many benefits to an organization, savvy leaders understand U.S. labor code exposes employers to significant liabilities. This liability is due to the strict fiduciary duties the law requires of plan sponsors and fiduciaries. Under ERISA, a plan fiduciary is any person:

1. Exercising discretionary control or authority over plan management or administration,

2. Exercising any authority or control over the management or disposition of plan assets,

3. Rendering investment advice for a fee or other compensation.

According to the U.S. Department of Labor (DOL), within a leadership framework, fiduciaries may include plan trustees, plan administrators, members of an investment committee, investment managers, and corporate officers with plan oversight.

In addition, fiduciaries who do not follow established principles of conduct may be personally liable to restore any losses to the plan following a breach of fiduciary duty.

A complaint of a breach of fiduciary duty may allege imprudent investment choices, excessive fees, lack of investment diversity, poorly selected service providers, or failure to follow plan documents.

Addressing Exposures

Critical to the ERISA plan discussion is securing insurance to protect the organization, plan assets, and individual fiduciaries in the event of a claim or lawsuit from plan participants. An employer can accomplish this with two lines of insurance coverage.

To protect the ERISA plan’s assets and employee investments, crime insurance policies typically offer ERISA fidelity coverage. This will pay the insured for direct loss of money and securities belonging to an employee benefit plan caused by theft or forgery committed by a fiduciary. Minimum required limits are generally 10% of the plan assets with a $500,000 maximum. Limits can exceed $500,000 with underwriting approval. Additional information on ERISA bonds can be found on the DOL website.  

To protect the organization and individual fiduciaries against actual or alleged breach of responsibilities, employers would be wise to secure fiduciary liability insurance coverage. In the event of a claim, lawsuit, or government investigation the policy will pay on behalf of the insured all costs of defense and damages up to the limit of liability. It is important to remember the policy will not protect against intentional wrongdoing and does not cover claims against outside service providers.

As employers strive to attract and retain talent, ERISA plans may give organizational leadership a competitive edge in a tight labor market. In doing so, employers should understand and address exposures to liability. An experienced insurance professional will offer guidance and education when seeking the proper protections.

Please contact me at sbrown@ranchomesa.com to discuss these and other risk transfer solutions.

The Value of Safety Committees in Human Services Organizations

Author, Jack Marrs, Associate Account Executive, Rancho Mesa Insurance Services, Inc.

Human services organizations operate in challenging environments. Staff regularly work in close contact with individuals who may have physical, cognitive, or behavioral needs. This can involve lifting and transferring clients, managing unpredictable situations, or navigating unfamiliar environments. National data from the Bureau of Labor Statistics (BLS) shows that these situations elevate the risk of workplace injuries.

The BLS data confirms the healthcare and social assistance sector has some of the highest injury rates across all industries, with 4.5 nonfatal cases per 100 full-time workers in 2022. While some risk is unavoidable in this field, many of the most common injuries are preventable and that’s where safety committees can make a powerful impact.

Role of a Safety Committee

Safety committees are internal teams that meet regularly to discuss hazards, evaluate recent injuries and near misses, and implement steps to prevent injuries from happening in the first place. They often bring together staff and management from different departments to proactively create a formal structure for addressing workplace safety.

Organizations with engaged safety committees experience fewer claims, lower insurance costs, and stronger relationships with their employees. Safety committees are not just about checking a box, they help create a safe work environment in a way that becomes part of the organization’s culture.

Benefits of an Active Safety Committee

Having an active safety committee comes with several benefits that support both the organization and its employees. Some examples are:

• Fewer workplace injuries. One of the most significant benefits of having a safety committee is a reduction in workplace injuries. Over time, committees will begin to identify trends, like repeated lifting injuries or slips in common areas, and respond by recommending lifting trainings or suggest that employees need to wear nonslip shoes. When these improvements are implemented and reinforced, injury rates often decline significantly.

• Insurance savings. Insurance carriers pay close attention to how seriously an organization takes safety. An active safety committee that documents meetings, follows through on recommendations, and tracks results can improve underwriting outcomes when presented by the broker.

• Improved staff morale and retention. Employees like to feel heard. When staff see leadership taking action on safety issues they have raised, whether it is adding nonslip shoes, improving lighting, or increasing trainings, it fosters trust. And, in a field where burnout and turnover are high, trust matters.

• Regulatory compliance. Under OSHA’s General Duty Clause, employers are responsible for maintaining a workplace free from recognized hazards. A safety committee helps fulfill this obligation and can serve as documentation of due diligence during audits or inspections. In California and several other states, safety committees may also play a role in meeting state-specific requirements related to workers' compensation or injury prevention plans.

Best Practices for Human Services Settings

To be effective, a safety committee needs more than just good intentions. The most successful ones follow key practices:

• Balanced membership. Include management and frontline workers. Direct support staff often have the insight into daily risk and often have ideas to prevent injuries.

• Consistent meetings. Monthly or quarterly meetings keeps safety on the forefront of your mind. Sporadic meetings will not lead to lasting results.

• Review of incidents and near misses. Analyze both what went wrong and what almost went wrong. These near misses are also important to document and put steps in place so an injury does not occur in the future.

• Site walkthroughs. Physically inspecting locations can uncover hazards that are not easily visible on paper.

• Clear documentation. Keep meeting minutes, assign follow-ups, and track progress. This level of detail not only improves accountability, it can also support insurance or OSHA documentation if needed.

If you are just starting out, OSHA has a resources for effective health and safety committees along with many other state and national safety organizations.

For human services organizations, safety is more than checking a box, it is essential to long-term stability. Fewer injuries mean fewer claims, which leads to less disruption, and a stronger team. A well-run safety committee is a low-cost strategy that leads to a safer work environment and a cost savings outcome.

To learn more about how Rancho Mesa can support your safety committee’s efforts, contact me at (619) 486-6569 or jmarrs@ranchomesa.com.

Ensure Pricing Accuracy and Validity of Insurance Coverage

Author, Sam Brown, Vice President, Human Services Group, Rancho Mesa Insurance Services, Inc.

As the insurance market for nonprofit and human service agencies continues to harden, with fewer and fewer insurance companies willing to insure valuable community programs, careful completion and review of the insurance applications will ensure proper pricing and coverage following an insurance claim.

Failure to ensure an application’s accuracy can lead to voided coverage, insufficient coverage, or overpaying of insurance premiums.

A best practice approach is to avoid all of the above by reviewing areas of concern that commonly lead to underwriter confusion and mistakes on insurance policies.

Statement of Values

Carefully review the broker’s Statement of Values (SOV), which lists each location and its underwriting characteristics. Each characteristic aids the underwriter in pricing and rating for the exposure to risk. The SOV will include:

• Location usage - is the location used for office space, a resale shop, a residential recovery center, or all three?

• Square footage - this is easy to overlook, but impacts property and general liability insurance premium.

• Building construction – what is the building date, construction type, and safeguards like non-sprinklered wood frame or sprinklered steel/concrete construction? Inquiring underwriters (and their supervisors) want to know.

• Are all non-owned locations listed? Leased space is often omitted. List the addresses of all operations to ensure coverage.

Vehicle Values

Is the list of vehicles accurate and does the replacement cost of each vehicle include modifications such as wheelchair lifts? Non-standard vehicles are often underinsured if the agent assumes it is just a standard Dodge Caravan without modifications.

Complete the Full Insurance Application

Renewal applications often do not contain space to update existing program details. So, share the details of new programs or ask about recent incidents that could result in a claim. Worse yet, a competing underwriter may offer a quote without firm and bindable terms, meaning the work product is incomplete and does not consider all exposures.

List Employed and Contracted Professionals

Professional liability is often rated on the number of employed professionals. A review of this section will ensure pricing accuracy and highlight professions requiring separate coverage, such as medical malpractice insurance.

Business Interruption Worksheet

Rancho Mesa clients understand the importance of business interruption coverage, so a thorough review of the worksheet’s definitions, the information contained therein, and hypothetical claim scenarios will help leadership make informed decisions. Without the proper limit, a seemingly insignificant property claim can result in critical lost revenue and extra expense. 

Right-sized Deductibles

Why pay for a smaller deductible if the organization only reports claims of financial significance? To ensure insurance premiums match leadership’s risk tolerance, the policyholder and broker should carefully review auto, property, and liability deductibles. Organizations accepting risk in the form of a higher deductible will realize premium savings.

In 2025’s hardening market, insurance underwriters need accurate and updated information to provide competitive and comprehensive quotes. Fortunately, it is easy to avoid a potentially uninsured claim or inaccurate insurance premium with a well planned and executed pre-renewal insurance review with an experienced insurance broker. Use these items detailed above to ensure the organization, its mission, and their employees are protected.

To ensure your nonprofit or human service agency has accurate coverage, contact me at (619) 937-175 sbrown@ranchomesa.com.

Avoid Surprise Premium Increases by Collecting Subcontractor Insurance Certificates

Author, Jack Marrs, Associate Account Executive, Rancho Mesa Insurance Services, Inc.

In the nonprofit world, every dollar matters. Whether you are running community programs, providing housing, or supporting individuals with disabilities, it is important to keep operating costs predictable and under control.

There is one area where we are seeing many nonprofits get blindsided during workers’ compensation audits and it often leads to unexpected premium increases.

If your organization pays independent contractors or subcontractors like drivers, program instructors, consultants, and maintenance workers and you do not collect certificates of insurance (COI) showing they have active workers’ compensation coverage, your insurance carrier may treat them like your employees during the annual audit.

The consequences of not collecting proof of workers’ compensation coverage means:

• The amounts you paid those individuals will be added to your payroll,

• Your final premium could increase significantly,

• You will be paying more for coverage you did not intend to buy.

We have recently seen multiple nonprofits hit with unexpected audit bills, not because they did anything wrong, but because they were not aware of this requirement.

Examples:

• A nonprofit that hired a part-time yoga instructor for their afterschool program did not request a COI. At audit, the instructor’s pay was included as payroll, adding over $3,000 to the final premium.

• Another organization paid an IT consultant $15,000 for a short-term project. The organization assumed since the consultant was not an employee, they didn’t need to worry about workers’ compensation. At audit, the amount paid to the consultant was included in the payroll calculation and the organization had to pay an extra $2,500 in premium.

Carriers are tightening their audit practices. If you cannot provide proper documentation that a subcontractor had their own workers’ compensation coverage, the carrier assumes your organization will be responsible if they get injured. Even if you never intended to cover them, they will count that payment towards your audited payroll and charge you accordingly.

To prevent an unexpected increase in premium at audit, always collect and keep on file a valid COI for any subcontractor or independent contractor you pay. The COI must show active workers’ compensation coverage for the time they performed work for you. If someone says they are exempt or does not have coverage, demand that they provide some form of documentation showing proof they do not need it. When in doubt, consult with your insurance broker and/or your workers’ compensation auditor to understand the potential issues.

If your organization is paying subcontractors or independent contractors, do not risk a surprise audit bill. Collect and retain COIs that prove they are covered. It is a small administrative step that protects your mission and your budget.

For questions about avoiding surprise workers’ compensation increases at audit, contact me at (619) 486-6569 or jmarrs@ranchomesa.com.

A Hardening Insurance Market for Non-Profits-Steps to Prepare for the 2025 Renewal Process

Author, Sam Brown, Vice President, Human Services Group, Rancho Mesa Insurance Services, Inc.

Non-profit and human services leaders started experiencing a hardening property and casualty insurance market in 2024 illustrated by reduced limits of liability, higher deductibles, and increased premiums. And, the market shift still may not have been enough to right the ship.

According to Insurancebusinessmag.com, reinsurers are seeking double digit increases in 2025 due to rising claim costs. Behind these rising claims costs are social inflation, emerging risks (i.e., opioid and synthetic chemicals), reserve increases, litigation funding and no promising tort reform. Reinsurers also argue that 2024 rate hikes were insufficient. As a result, these companies are reducing exposure to the US casualty market.

When reinsurers sneeze, the insurance market and its insurers catch a cold. In 2025, expect more signs of the hardening market. However, there are steps non-profit leaders can do to prepare for the renewal process in 2025.

Anticipate Premium Increases

Consider the organization’s growth in all rating factors, whether it be revenue, employee count, vehicles, or beds. Premium will increase accordingly before rate increases.

Complete Full Insurance Applications

An experienced insurance agent will ask clients to update applications in hard copy, using electronic documents, or via an online portal. If this is not happening, ask why. If it is happening, then complete the full version rather than truncated renewal applications. Creating competition in the marketplace means providing underwriters a full scope and understanding of operations. Very few underwriters will quote using another carrier’s renewal updates.

Review Contract Insurance Requirements

Many carriers are reducing limits of liability for abuse/molestation and professional liability. Others will no longer quote umbrella or excess liability. Stacking quotes from various carriers to achieve once readily attainable limits is possible, but this strategy comes with a significant premium cost. So, before stacking policies, review contracts with counties, regional centers, and funders to understand the required insurance coverage.

Engage with Partners Now

Communicate to organization partners the cost to maintain required insurance limits. Take a hard look at current programs to determine if outcomes (i.e., revenue and impact) warrant the increased insurance costs. Some programs may need to sunset.

A continuing hardening insurance market in 2025 will force non-profit and human services leaders to approach the renewal process with care and new focus. The recommended steps listed above will help organization leaders develop a renewal strategy while helping underwriters’ analysis prior to releasing quotes.

For more information about the hardening market, contact me at sbrown@ranchomesa.com or (619) 937-0175.

Market Update: Sexual Misconduct Liability in Healthcare Organizations

Author, Sam Brown, Vice President, Human Services Group, Rancho Mesa Insurance Services, Inc.

Rancho Mesa’s insurance brokers specializing in healthcare, education and non-profit organizations continue to navigate the hardening insurance marketplace, characterized by tighter underwriting guidelines, reduced limits of liability, increased deductibles, and higher policy premiums.

One of the sectors most impacted by the hardening market is healthcare and its ability to attain adequate insurance protection, specifically sexual misconduct liability insurance. Continued claim activity, social inflation, third-party litigation financing, and the increased cost of litigation all contribute to the hardening market conditions.

Consider the following data points in order to understand why the market is hardening. Several states have recently removed barriers to reporting abuse. Only five states maintain a criminal statute of limitations on claims of abuse. Nineteen states have eliminated statutes of limitations on civil claims. And, 30 states have enacted laws allowing victims more flexibility to revive claims of sexual abuse.

Additionally, according to the Institute for Legal Reform, from 2016 to 2020 the tort system’s direct economic costs grew 6% every year, exceeding both the inflation rate and GDP. That means more and more cases are litigated each year.

Not only are the number of cases increasing, but a 2023 report titled “Medical Malpractice Claims-Made Social Inflation and Loss Development Report” indicates that claims exceeding $1,000,000 continue to grow in frequency. So, the number of claims are increasing as the cost of claims are increasing.

An increase in third-party litigation financing, the practice of investors funding lawsuits in exchange for a portion of the settlement and return on the investment, can discourage prompt and reasonable settlements. This practice also reduces an attorney’s accountability to good faith standards and produces more lawsuits.

Impact to Sexual Misconduct Coverage and Healthcare Providers

Insurance companies are now reducing their financial risk for abuse exposures. This means medical professional liability underwriters may need additional underwriting information to quote limits in excess of $100,000. Additional underwriting measures may include issuing non-renewals, considering jurisdictional challenges, careful consideration of policies covering young patients, excluding all trafficking allegations, and adding a per victim or perpetrator deductible.

Risk Management Strategies for Healthcare Providers

Healthcare organizations can help mitigate some of the risk by:

• Using chaperones to reassure patients of a procedure’s professional nature. The chaperone provides a witness to support the practitioner’s actions.

• Performing examinations for a minor in the presence of a parent, guardian, or chaperone.

• Educating the patient about the exam and its necessity prior to the patient’s appointment.

• Documenting the exam’s medical necessity, the education provided to the patient, and the chaperone’s identity.

• Maintaining boundaries by establishing proper practitioner-patient relationships.

• Educating staff on proper patient interactions, professional boundaries and reporting of misconduct.

• Ensuring familiarity with your state’s reporting obligations related to sexual misconduct and include the requirements in your policies and procedures.

The legal environment and claim trends add financial exposure for both healthcare providers and insurance companies. Rancho Mesa will continue to monitor these trends to better educate and advocate for clients. Please contact me at (619) 937-0175 or sbrown@ranchomesa.com to discuss possible insurance solutions.

Umbrella vs. Excess Liability: The Key Differences Contractors Need to Know

Author, Sam Clayton, Vice President, Construction Group, Rancho Mesa Insurance Services, Inc.

When reviewing insurance requirements that contractors receive from municipalities and/or general contractors, two lines of coverage that are often misunderstood are umbrella and excess liability. These terms are commonly interchangeable in the contract, but have subtle differences. In addition, the limits required by contracts are increasing significantly.

Excess vs. Umbrella

An excess liability policy has two primary functions: it provides excess limits above the underlying liability insurance limits and replaces underlying insurance limits as aggregate limits are exhausted; the excess policy will be subject to the same coverage terms, conditions and exclusions as the underlying policies. This is what is called follow-form.

A commercial umbrella liability policy has three primary functions: it provides excess limits above the underlying liability insurance limits; replaces underlying insurance limits as aggregate limits are exhausted; and offers broader coverage than primary policies for certain losses which would be subject to an SIR or self-insured retention.

Why are they important?

A commercial umbrella or a properly structured excess policy will sit above a contractor’s existing policy’s general liability, auto liability and employers’ liability limit. This protects contractors from large unexpected losses that can have devastating financial impact on the company.

With the dramatic rise in costs of insurance claims the last few years, either from social inflation or third-party litigation funding, multi-million dollar settlements are becoming more frequent. For example, if one of your employees is in an auto accident that causes severe bodily injury to multiple people, the legal and medical costs incurred could very easily exhaust your primary auto liability limit very quickly. Umbrella or excess policy limits would be available cover those losses.

So, when reviewing a contract, pay close attention to the umbrella or excess insurance requirements, and ensure that you understand the subtle differences of how they can impact your bottom line if there is a claim.    

To learn more about these specific coverages and how they can be incorporated into your current insurance program, reach out via email to sclayton@ranchomesa.com or (619) 937-0167.

How Healthcare Staffing Agencies Can Prevent Claims

Author, Jack Marrs, Associate Account Executive, Rancho Mesa Insurance Services, Inc.

Healthcare staffing agencies play a vital role in maintaining patient care standards. That is why it is critical for staffing agencies’ employees to be properly vetted, kept informed, and trained prior to being placed to reduce the likelihood of claims. Preventing such claims requires a collaboration between the healthcare staffing agency and the facility where employees are being placed. Healthcare staffing agencies can take steps to prevent claims and protect their operations.

Employee Screening

A best practice for preventing claims is to ensure that the healthcare professionals being placed are highly qualified and have the required credentials. Proper vetting includes verifying licenses, certifications, and prior work experience. If the potential employee is not properly screened and is hired, it not only is putting the patients in danger but it can result in malpractice claims.

Collective Intelligence, a professional screening service, states that “up to 30% of job applications contain false statements.” The company notes that “by using a healthcare professional screening service, you can rest assured that you are mitigating the risks associated with theft, negligent hiring lawsuits, poor employee retention and fees associated with non-compliance.”

Properly screening potential employees can reduce the risk of unintentionally bringing on unqualified people who could put the organization at risk.

Clear Communication of Job Roles and Responsibilities

Miscommunication or misunderstanding of job roles can lead to situations where healthcare professionals make decisions outside of their job roles. This not only puts the patient at risk but can also expose the agency to liability claims. To prevent this, the agency must clearly outline the roles, responsibilities, and limitations of the healthcare professionals that are being placed in the facility. Healthcare staffing agencies and the healthcare provider that hires them need to make sure that everyone involved knows exactly what the healthcare professional is responsible for at the facility. 

Effective Safety Training

The healthcare industry is physically demanding, and healthcare professionals are prone to injuries, whether from lifting patients, long shifts, or a slip and fall. Healthcare staffing agencies are also prone to high turnover which can lead to workers being less familiar with their workplace and safety protocols, thus increasing the risk of accidents.

Healthcare staffing agencies must protect themselves from workers’ compensation, general liability, and medical malpractice claims. One way to do this is by partnering with the facilities where the employees are placed and formally agree to share responsibility for training and safety.

While staffing agencies should provide proper training, client facilities should also offer site-specific training related to their own operations and protocols. Clear agreements between the agency and the client facility regarding training responsibilities will help minimize the risk of claims.

Preventing claims in the healthcare staffing industry is an ongoing process that requires attention to detail, ongoing training, and partnerships with healthcare facilities. By taking these steps, agencies can protect themselves from the financial damage associated with claims and the general safety of their employees.

To learn more about how your healthcare staffing agency can reduce risk, contact me at jmarrs@ranchomesa.com or (619) 486-6569.

Three Industry Benchmarks all Landscape Companies Should Track

Author, Greg Garcia, Account Executive, Rancho Mesa Insurance Services, Inc.

There are three major benchmarks that all landscape companies should consider when looking at how well they manage risk.  The three benchmarks are your:

• Average Claim Cost

• Claim Indemnity Rate

• Claim Frequency Rate

Knowing the importance of this, we designed a key performance indicator (KPI) dashboard that highlights these industry benchmarks, as well as compares them against other landscape companies in their geographic area.

We have pulled data from all landscape companies using the 0042 class code and have come up with some industry averages.  For the sake of this example, we will use California landscape contractors only. 

In California, the average claim cost for landscape contractors is $50,300 per 1 million dollars of landscape payroll.  In other words, on average for every 1 million dollars a landscape company has in the 0042 class code they should incur about $50,300 in claim cost. That number would rise to $100,600 in claim cost if a landscape company had 2 million dollars in 0042 class code. 

The next major category to consider would be indemnity rate.  Indemnity rate, or claims that result in lost time and temporary disability, the industry average is 0.7 claims per 1 million dollars of 0042 payrolls. 

Finally, the last category we consider is frequency rate.  In California for every 1 million dollars allocated to the 0042 class code on average that company will have 1.5 claims.

Knowing the data will not only give your team a good indication of how safe your company is, but these categories also play a significant role in determining work comp premiums.  There are several underwriting metrics a worker compensation underwriter takes into consideration when looking at a prospective business.  The Experience MOD, loss history, and of course safety protocols and procedures to name a few. 

The other major metric that underwriters are looking at are these three benchmarks: , average claim cost, indemnity rate, and frequency rate.  Simply put, the better a landscape company scores in these critical metrics, the better chance that an underwriter will add schedule credits to lower the worker’s compensation premium.

Now is a great time to see how well your landscape company stacks up against your peers, and consider any internal options to improve your metrics in any of these three major categories.

Digitalizing Risk Management: A Step-by-Step Guide for Getting Started

Author, Alyssa Burley, Partner, Media Communications & Client Services Group, Rancho Mesa Insurance Services, Inc.

Imagine you are working in a highly productive organization. Over many years of trial and error, the team has streamlined their operations to the point of a well-oiled machine using good ol’ paper and spreadsheets. Then, your insurance broker offers a digital risk management solution and you are faced with the prospect of transitioning your manual processes to a digital platform. This is the scenario that many Rancho Mesa clients have faced and successfully overcome.

Mobile applications have become an integral part of daily life by streamlining everything from banking to finding a ride in the city. Manual tasks can now be completed easily from a mobile device. So, why haven’t most businesses implemented this mobile technology into their daily operations?

Planning & Support

Transitioning a manual process, like the administration and documentation of toolbox talks, safety trainings, jobsite inspections, and other risk management activities, to a digital platform does not have to be a daunting task, though it may seem that way at first. With proper planning and support from those who have helped others digitalize their manual processes, you can significantly increase the chances for success. Utilize resources like Rancho Mesa’s client services team to provide best practices for each manual process that will be replaced by a digital platform.

Where to Start

Once an organization has decided they are ready to make the move to a digital platform, they often ask how they should begin. It is a best practice to start digitalizing a process that has few barriers to implementation, yet will still have a significant impact on operations. Therefore, utilizing digital toolbox talks (e.g., tailgate talks, safety meetings, and the like) is typically the best process to tackle first.

Next, review your existing toolbox talk process and document the steps. It may be helpful to ask the following questions:

• Who decides which topics will be used each week?

• Where is the content sourced?

• How is the topic content distributed?

• Who administers the toolbox talk (e.g., tailgate talk, safety meeting, etc.)?

• Where are the toolbox talks performed?

• How are employees tracked who participated in the toolbox talk?

• Where is the documentation stored?

The answers to these questions will help you identify who will need access to the toolbox talks in the digital platform, whether through an administrator website or a mobile application.

Then, identify one to three people in the organization who are excited about being an early adopter of the new technology. They should be excited at the prospect of streamlining the manual process of getting the toolbox talk content each week, performing the safety meeting, passing around the sign-in sheet, and making sure the signed paper makes it back to the office and in the correct file cabinet. These early adopters could be an administrator, foreman, supervisor, or safety manger, depending on who is responsible for performing portions of this task.

The early adopters will function as the organization’s initial testers, cheerleaders, and then coaches for the rest of the team. They will test the digital process by accessing toolbox talk content and documenting the meeting attendance with both pictures and signatures from their mobile devices. They will report back to their organization’s leadership on how the new process is working. This gives the organization a chance to work with their insurance broker’s client services team to offer suggestions for minor adjustments to the new digital process. Meanwhile, the early adopters will naturally promote the new technology to their co-workers and get others excited for the launch of the new process.  

Once the new digital toolbox talk process is tested and adjusted as needed, it is ready to be released to the rest of the organization. There will be a learning curve, but the early adopters will be familiar with how the streamlined digital process works and will act as informal coaches for new users of the platform. 

Benefits

Changing a well-established process can cause some people within the organization to question why the change is needed in the first place. So, be prepared to explain the reasoning behind the transition. Explain the benefits that will be felt by both the employee and the organization.

Employees will spend less time on paperwork, so they can get back to their other job responsibilities. No longer will a supervisor have to worry about where the sign-in sheet went from yesterday’s safety meeting. All the documentation is digitally uploaded to the cloud and instantly accessible to those who need it.

The organization can ensure compliance with the Occupational Safety and Health Administration’s (OSHA) safety meeting requirements and eliminate lost paperwork. No longer do organizations need file folders full of sign-in sheets with, unfortunately, illegible signatures. Digital records are easily accessible and filtered by date, project, topic, etc. in order to streamline the process of retrieving data.

All of these things save time, effort, and increases compliance, which ultimately translates to reduced costs.

If your organization is ready to make the transition from paper to digital, contact your Client Technology Coordinator for more information about Rancho Mesa’s proprietary SafetyOne™ mobile app and website.

Don’t Wait Until It’s Too Late: Notify Your Insurer of a Claim Right Away

Author, Sam Brown, Vice President, Human Services Group, Rancho Mesa Insurance Services, Inc.

Rancho Mesa’s commercial clients purchase insurance to transfer financial risk to a third party and protect their business against claims of liability. These clients rightfully expect their respective insurers to fulfill the obligation found in black and white on the Insurance Service Office (ISO) general liability form that reads “We will pay those sums that the insured becomes legally obligated to pay as damages because of bodily injury or property damage to which this insurance applies.” So, what must a policyholder do to ensure this obligation is fulfilled?

Most importantly, following a known event, policyholders should not wait until served a lawsuit. Per the policy conditions, the policyholder must notify the insurer “as soon as practicable” of an “occurrence or an offense” which may result in a claim. Failure to do so can result in a breach of duty and forfeiture of coverage for that claim.

When reviewing policy coverage and terms in proposal meetings with their broker, clients often voice concerns about what types of occurrence require notice, how a notice to an insurer will impact future coverage and premiums, and how quickly is “as soon as practicable.”

Per the ISO general liability form, “occurrence” means an accident, including continuous or repeated exposure to substantially the same general harmful conditions.

Various court cases and legal precedent do not provide a clear reporting timeline. It is safe to say policyholders do not want to find out how late is too late to report a claim. Report the incident without delay.

Having some apprehension in reporting the incident due to potential rate increases is common and understandable, but should not come into play at the expense of triggering coverage. It is also true that most insurers do not weigh reported incidents or notice only items when underwriting the risk. In contrast, claims, or matters where a third party actually alleges the policyholder is responsible for damages, will have significance to the underwriter. When determining how or when to properly provide notice to the insurer, your Rancho Mesa service team can educate and advise on how best to proceed.

For more information on a policyholder’s obligation to report an incident or to ask questions about your current policy, please contact me at (619) 937-0175 or sbrown@ranchomesa.com.

Understanding Why Your Building’s Leaky Roof Claim Might Be Denied

Author, Jack Marrs, Associate Account Executive, Rancho Mesa Insurance Services, Inc.

Leaky roofs can be a major headache for commercial property owners, often leading to significant damage and costly repairs. Understanding how insurance policies respond to these situations is crucial in navigating the claims process.

When is a Leaky Roof Covered?

Insurance policies typically cover leaky roofs under certain conditions. The key factor is whether the leak resulted from an unexpected and accidental event, such as a storm causing direct damage to the roof. For instance, if a storm creates a hole or crack in your roof, allowing water to penetrate and cause damage, your insurance policy will likely cover the repairs.

When is a Leaky Roof Not Covered?

On the other hand, if the leak is due to a lack of maintenance or general wear and tear over time, the insurance carrier will typically deny the claim. Routine maintenance and upkeep are the property owner's responsibility, and insurance policies are not designed to cover damages resulting from negligence or normal wear and tear. Also, the age of the roof can determine if the claim will not be covered.

According to the Raizner Slania lawfirm, “In most cases, roof damage on a roof that is 20 years old or older, which accounts for the lifespan of most shingle roofs, will not be covered. A roof on a commercial property can also be deemed too old if one of the lower layers is 20 years old and a new layer was simply added to it rather than the whole roof being replaced.”

Ensuring That Your Claim is Covered

To ensure that your insurance claim for a leaky roof is covered, it is important to document the cause of the damage. If a storm has caused the damage, take photos of the roof and any other affected areas. These photos can serve as evidence when you file your claim. Additionally, maintaining your roof regularly and addressing minor issues before they worsen can help you avoid the claim being denied. Keep records of any maintenance work and inspections conducted on your roof as these documents will be helpful if you need to prove that the damage was not due to lack of upkeep/maintenance.

Remember, if a storm directly causes the damage that leads to a leak, your insurance policy will likely cover the repairs. However, if the leak is due to poor maintenance or normal wear and tear, your insurance policy will most likely deny the claim. By staying up to date with roof maintenance and documenting any storm related damage, you can feel confident your claim will be covered.

To discuss your organization’s potential exposure to property claims, contact me at (619) 486-6569 or jmarrs@ranchomesa.com.

Updates to California Healthcare Minimum Wage Policies for 2024

Author, Megan Lockhart, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

This year has seen several changes to minimum wage in the State of California. On January 1, 2024, the California general minimum wage increased to $16 per hour, regardless of tips. However, as of July, several individual industries across the State, including healthcare, saw minimum wage increases. 

While the federal minimum wage rate still stands at $7.25 as per the Fair Labor Standards Act (FLSA), individual states and certain cities may have their own minimums like California. So, be sure to check the updates in the RM365 HRAdvantage™ portal for your specific industry and jurisdiction to ensure your company’s payroll is compliant.

California Healthcare Minimum Wage Rate Changes

Jurisdiction	Industry	Coverage	Minimum Wage as of July 1, 2024
Statewide	General		$16.00
Statewide	Healthcare	Hospitals	$18.00 (delayed, effective date TBD)
Statewide	Healthcare	Clinics and all other healthcare facilities	$21.00 (delayed, effective date TBD)
Statewide	Healthcare	Large employers and integrated healthcare systems	$23.00 (delayed, effective date TBD)

Clients can login to the RM365 HRAdvantage™ portal to review the full minimum and tipped wages for all states under the 2024 State and Local Minimum and Tipped Wage Rates.

Understanding the Importance of Your Workers’ Compensation Unit Stat Filing Date

Author, Greg Garcia, Account Executive, Rancho Mesa Insurance Services, Inc.

Imagine you are a landscaping company owner and your workers’ compensation policy just renewed January 1st. You are probably thinking, now what? Well, the next date that should be on your radar is June 30th, your unit stat date. Each unit stat date varies and with the actual filing taking place approximately 180 days from when the workers’ compensation policy was placed. The unit stat date is when all workers’ compensation claim activity is frozen, along with audited payroll information, and sent to the rating bureau so the experience modification (XMOD) can be calculated.  

As a reminder, your XMOD is determined by comparing your loss experience and historical payroll to others with similar class codes. The XMOD is derived from three years of audited payroll and losses suffered over those years.

If a particular claim is closed after your unit stat date, that claim will impact your next XMOD at the total incurred value before the unit stat date. Therefore, if you have a claim that can either be closed or reserves reduced, it is critical that this is done ahead of the unit stat date. Staying up to date with your claims adjuster and insurance professional ahead of the filing can quite literally save you points on your XMOD, which in turn can help to reduce your worker’s compensation annual premium.

Using one of the metrics on our proprietary KPI Dashboard, our clients are able to track the number of days until their unit stat date. Combining this KPI tool with our dedicated workers’ compensation claim advocate services at prescheduled claims reviews throughout the policy year helps to close the claims or mitigate claim costs in advance of the filing. This strategy can dramatically lower overall insurance costs.

If you have any questions about the unit stat or would like me to put together a custom KPI dashboard for your team, you can contact me at ggarcia@ranchomesa.com.

Beyond Insurance: Employer Strategies to Prevent Wage and Hour Claims

Author, Sam Brown, Vice President, Human Services Group, Rancho Mesa Insurance Services, Inc.

It was June, 86 years ago, when Congress and President Franklin D. Roosevelt (FDR) signed into law the Fair Labor Standards Act of 1938 (FLSA). In the words of FDR, the FLSA ensured “a fair day’s pay for a fair day’s work.”

While the FLSA immediately raised wages for hundreds of thousands of workers and improved working conditions, it has also given rise to a specific type of costly allegation, wage and hour claims.

Wage and hour claims arise when non-salaried or non-exempt employees make a formal complaint stating they were unfairly compensated for work performed.

In 2021, about 19,000 California workers filed unpaid wage claims for a total of more than $330 million, according to Cal Matters.

Wage and Hour Liability Allegations include:

• Underpayment of overtime

• Miscalculation of wages

• Refusal to allow employee breaks

• Expecting off-the-clock work

• Not paying employees regularly

• Refusal to pay exempt employees for absences

• Not paying for time required to put on or remove protective gear or clothing

• Adhering to federal minimum pay guidelines when state guidelines warrant higher pay

Prevention is always the best line of defense against wage and hour claims. Beyond purchasing insurance, which will typically provide $100,000 to $200,000 of defense costs, employers can mitigate risk by:

• Assessing the risk within the company, starting with the State and Local Government Self-Assessment Tool available from the U.S. Department of Labor’s Wage and Hour Division.

• Review employee classification as to “exempt” and “non-exempt” status to ensure compliance with guidelines under the FLSA and applicable state laws.

• Consult with an attorney or consultant regarding job descriptions and how overtime is calculated.

• Review and confirm proper classification for independent contractors.

• Keep payroll records for all employees and establish a mechanism for tracking non-exempt employees’ hours.

• Review practices and procedures to ensure compliance with meal and rest periods as applicable to state law.

• Allow an outside HR firm to conduct an external audit of the employer’s wage and hour practices.

• Enacting policies that prohibit off-the-clock work

Navigating employment law and the FLSA will help employers earn good favor among workers and help to avoid costly wage and hour lawsuits. Understanding common wage and hour allegations is a critical step in this process, but may not be enough.

If you have questions about how insurance policies may supplement your existing risk management plan, contact me at sbrown@ranchomesa.com or (619) 937-0175.

Building an Effective Renewal Submission in a Hard Market

Author, Jack Marrs, Associate Account Executive, Rancho Mesa Insurance Services, Inc.

Insurance renewals can be challenging for nonprofits, especially in the hard market of 2024, characterized by higher premiums, stricter underwriting, and reduced coverage from insurance carriers. Leaning on your insurance broker as the quarterback, a well-prepared submission can significantly impact the outcome of your insurance renewal, potentially leading to better terms and lower premiums. Nonprofits can work effectively with their insurance broker to build a comprehensive submission using the following strategies.

Pre-Renewal Meeting

Begin the pre-renewal process well in advance by meeting with your insurance broker at least 90 days before your renewal date to update expiring applications and discuss any changes in operations, such as new programs, major grants, changes in leadership, turnover percentage, and employee count, etc. Rancho Mesa meets with clients 120 days prior to the renewal date. This provides plenty of time to gather the necessary documentation, address potential issues, discuss a renewal strategy, and explore alternative options if needed.

Highlight Risk Management Efforts

Insurance carriers are going to favor organizations that proactively manage risk. Demonstrating your commitment to risk management can position your nonprofit as a lower-risk organization, potentially leading to more favorable insurance terms. Risk Management Strategies:

• Safety Training
  Regularly train staff and volunteers on safety procedures and document these sessions. Rancho Mesa clients have access to our proprietary SafetyOne™ Desktop & Mobile App, which allows you to manage your workplace safety program from anywhere, access important documents, and share job-specific and employee safety data as needed. The SafetyOne platform also includes tailored trainings to ensure proactive risk management.

• Large Claim Summary
  For organizations that have experienced any number of large claims, it is best practice to provide a detailed summary of each claim. This should include exactly what happened and the procedures your organization has put into place to mitigate similar claims from happening in the future. Charity First recommends this approach because it demonstrates to insurance carriers that your organization is proactive about risk management.

Description of Operations

Providing a detailed description of your operations is crucial. This includes explaining how your nonprofit executes its mission, the specific activities and programs you run, and how these activities align with your organizational goals. A comprehensive description helps insurance carriers understand the nature and scope of your work, assess the associated risks accurately, and provide appropriate coverage.

Broker Expertise

Your insurance broker is a valuable resource and should have a deep knowledge of your organization’s insurance market and the specific needs of nonprofits. The broker should be ensuring that the submission is as strong as possible. The broker should be leading you throughout this entire process, informing you exactly what is needed and educating you on what is happening in the marketplace. The broker's role is not only to provide nonprofits with adequate coverage but also to ensure clients feel well-informed about what to expect for their renewal.

Importance for 2024 Renewals in a Hard Market

The insurance market in 2024 is particularly challenging for nonprofits due to an uptick in frequency and severity of claims across all lines of insurance. A hard market typically translates into insurance carriers engaging in more conservative underwriting, more restrictive coverage, elevated retentions/deductibles, and higher premiums. This makes it even more critical for nonprofits to present a strong, well-documented submission.

Building a strong submission for your insurance renewal in 2024 requires a proactive and collaborative approach. By starting early, maintaining open communication with your broker, compiling comprehensive documentation, highlighting risk management efforts, leveraging your broker’s expertise, and exploring alternative options, your nonprofit can secure the best possible terms for its insurance coverage. This strategic approach not only helps in managing costs but also ensures that your organization is properly insured.

To discuss your organization’s insurance renewal, contact me at (619)486-6569 or jmarrs@ranchomesa.com.

Litigation Funding Contributes to Higher Claim Amounts and Premiums

Author, Sam Brown, Vice President, Human Services Group, Rancho Mesa Insurance Services, Inc.

The first quarter of 2024 is in full swing and the insurance industry is already feeling the rising cost of insurance claims, often referred to as social inflation. Commonly discussed reasons for social inflation include socioeconomic, legal, and behavioral trends that produce costly lawsuits, according to research conducted by The Institutes. In addition to these familiar observations, a relatively new factor is now playing a role in large lawsuits: third-party litigation financing.

Litigation financing refers to the practice of private equity companies, hedge funds, and other investors taking a calculated risk to invest in lawsuits, according to The State Bar of California Standing Committee on Professional Responsibility and Conduct. The Insurance Information Institute estimates that $30 billion will be invested in litigation financing by 2028.

A simple example that typifies the arrangement is an investor paying for legal expenses in exchange for a portion of the settlement. A plaintiff may agree to this in hopes of increased damage awards.

The downsides to litigation financing include prolonged litigation, litigants receiving only a fraction of the award, litigants demanding higher settlements to cover the cost of the investments, and funding agreements impacting an attorney’s judgement when representing a client. The ultimate downside occurs when underwriters charge higher policy premiums or reduce appetite, making coverage very difficult or impossible to obtain.  

As the practice of third party litigation financing grows more common, legislation and regulation must catch up and may need to implement guidelines to better protect the interests of both policyholders and insurers.

If you have questions regarding social inflation and the impact on your policy premiums, please contact me at 619-937-0175 or sbrown@ranchomesa.com.

The Critical Importance of Nonprofit Executive Transition Planning

Author, Jack Marrs, Associate Account Executive, Rancho Mesa Insurance Services, Inc.

In the world of nonprofit management, the departure of an executive director can cause a time of uncertainty. This kind of challenge is why all nonprofits need a well-crafted executive transition plan. This plan is not just a roadmap for navigating the change in leadership but a tool for sustaining and growing the nonprofit's mission. In this article, we will dive into the importance of having an executive transition plan, the key components that make up an effective plan, and the benefits it brings to the nonprofit sector.

Understanding the Role of the Executive Director

The executive director's role is crucial in shaping the nonprofit's direction, culture, and public image. These leaders have many roles from strategic planning and fundraising to staff morale and community engagement. Therefore, the departure of an executive can leave a void that is difficult to fill without a transition plan in place.

A well thought out executive transition plan begins with a deep understanding of the executive director role within their nonprofit. It involves evaluating the organization's current needs, future plans, and the specific qualities in a new leader that will allow them to successfully fulfil the nonprofit’s mission moving forward.

Alignment and Visioning

The next step is to make sure that the organization’s future plans align with the board’s vision. In order for the organization to continue to be successful, everyone needs to be on the same page and have a deep understanding of the organization’s goals.

Developing a transition plan that is prepared for different types of departures like planned, unplanned, or strategic, shows your level of preparedness. Whether the transition is expected or sudden, having a clear plan in place minimizes disruptions and allows the organization to focus on its mission.

Cultivating Internal Leadership

One of the plan's key components is the focus on internal leadership development. By identifying and training potential future executives within the organization, this will create qualified employees ready to step into a leadership role when needed. Also, internal employees bring a deeper understanding of the nonprofit’s culture and operations, making the transition period much smoother than hiring from outside the organization.

The Search for New Leadership

Finding the right executive to guide the nonprofit through its next phase is the most important part of the transition plan. This process involves setting clear criteria for the ideal candidate, conducting a thorough search, and the selection process itself. The plan should outline the steps for advertising the position, screening candidates, and holding interviews, while keeping the organization’s mission on the forefront.

Also, finalizing the transition does not simply involve the selection of a new executive director but also ensures that they are fully integrated into the organization. This would involve a detailed onboarding process where the new leader is introduced to the team and understands the nonprofit's operations.

The importance of having a comprehensive executive transition plan cannot be overstated for nonprofits. By thoroughly understanding the role of the executive director, aligning the transition with the nonprofit's vision, cultivating internal leaders, selecting and integrating a new leader, nonprofit organizations can successfully navigate the executive transition with confidence and ease. This approach not only protects the organization's mission during times of change but also sets it up for future success.

With a strong presence representing the insurance needs of nonprofits throughout California, Rancho Mesa prides itself on understanding both the risk management and operational components within this important space. For questions on this article or to learn more about how Rancho Mesa can help your organization, contact me at jmarrs@ranchomesa.com or (619) 486-6569.

Resources

https://alysterling.com/nonprofit-executive-director-transition/
https://www.philanthropy.com/article/the-great-nonprofit-leadership-turnover
https://boardsource.org/fundamental-topics-of-nonprofit-board-service/executive-transition/
https://buildingmovement.org/reports/the-leadership-in-leaving/

Protecting Non-Profit Operations with Business Interruption Insurance

Author, Sam Brown, Vice President, Human Services Group, Rancho Mesa Insurance Services, Inc.

A non-profit organization’s culture and positive impact often flows through its strategically placed locations in the communities it serves. These locations, whether they be offices, group homes, childcare centers, or shelters all further the mission and may drive revenue. The cost to the organization if one of these locations becomes inoperable due to a property damage claim can often add undue stress to the finances and leadership. This article will address how business interruption insurance (BII) can address these costs.

Following a covered property loss, a business or non-profit organization may suspend a location’s operations while repairs are made. This is known as the period of restoration. If such a suspension occurs, operations may be impacted in several ways.

 First, revenues may decline. Examples include a health clinic treating a reduced number of patients, a Boys & Girls Club losing members and monthly dues, or donations decrease.

Second, at the risk of losing staff, the organization may need to keep key employees on the payroll who cannot work their shifts during the repairs.

Third, the organization may continue to incur fixed costs at the location such as mortgage, rent, insurance, taxes, professional services and utilities.

Lastly, the non-profit may incur extra expenses to maintain operations or services at an alternative location. These extra expenses may include the cost of an extended stay hotel for clients or increased rent for an alternative worksite, and the cost of moving expenses.

The Challenge

How does a non-profit leader arrive at the most appropriate limit of insurance to indemnify the organization during a loss?

A Best Practice approach would involve the, use of a business interruption worksheet. This document will guide a policyholder and its insurance broker by asking for different line items to be insured.

These items will include:

• Annual net income

• Annual compensation for key people to be retained during the suspension of operations

• Annual employee benefits, pension costs and payroll taxes for key people

• Continuing fixed expenses

• Extra expense

The sum of these figures will provide the limit needed for a 12-month period of restoration. If 12 months does not seem long enough, then the policyholder and broker should discuss a realistic length of time operations would be suspended following severe property damage.

If operations may not resume in full capacity following completion of the repairs, then the policyholder and insurance broker should consider an extended period of restoration.  This may allow a business 180 to 365 days of extended coverage once the period of restoration ends.

Business interruption insurance coverage continues to confuse employers and many insurance brokers who do not have experience working with non-profit organizations. Rancho Mesa encourages decision makers to discuss this coverage and possible disaster plans at length with their insurance broker. It may help avoid a costly financial loss following property damage.

For more information or to ask questions about business interruption coverage, please contact me at sbrown@ranchomesa.com or (619) 937-0175.