Industry News
Changes in the 2019 Experience Modification Formula – Are You Ready? (Part 2)
Author, David J. Garcia, A.A.I, CRIS, President, Rancho Mesa Insurance Services, Inc.
As we approach 2019, there will be several changes in the experience modification formula that directly affects the calculation of an employer's 2019 Experience Modification Rate (EMR).
Part 1 of this article describes the Primary Threshold and Expected Loss Rate. Read Part 1 of this article. Part 2 provides an overview of the changes to the EMR calculation.
Contractor Strategies to Maximize Your Bank Line of Credit
Author, Matt Gaynor, Director of Surety, Rancho Mesa Insurance Services, Inc.
Some of my most successful bond clients opened their construction business with a good amount of working experience on their resume, but only a minimal amount of cash and capital. Unfortunately, bond companies like to see a strong amount of cash and capital. Therefore, my goal, as their bond agent, is to work with what they have at the present time to explain why they are a “good risk” now for bid, performance, and payment bonds - along with ideas on how to overcome the initial cash and capital constraints.
Changes in the 2019 Experience Modification Formula – Are You Ready? (Part 1)
Author, David J. Garcia, A.A.I, CRIS, President, Rancho Mesa Insurance Services, Inc.
As we approach 2019, there will be several changes in the experience modification formula that directly affects the calculation of an employer's 2019 Experience Modification Rate (EMR). Sadly, most businesses are both unaware and unprepared.
Understanding Waivers of Subrogation for Contractors
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
In an era where general contractors commonly require a Waiver of Subrogation from its sub-contractors before they are allowed to step foot on the jobsite, it is important to understand how a Waiver of Subrogation functions. Most companies simply tell their agent they need the waiver added to their contract, but what does this mean? How does it affect the policy?
Differentiating Solar Industry Class Codes
Author, Kevin Howard, Account Executive, Rancho Mesa Insurance Services, Inc.
Research conducted by the Solar Energy Industry Association (SEIA) shows that California benefits from roughly 3,000 solar contractors conducting business in the state. Panels are being installed at a rapid rate. In fact, statistics show that as of January 2018, over 5 million California homes have “gone solar” and that number continues to grow. There are other benefits to using solar panels to harvest energy besides just generating electricity. They can also be used to heat water in pools, spas, storage tanks and other plumbing systems using hot water solar panels.
Three Reasons to Read Subcontractor Warranty Endorsements
Author, Sam Clayton, Vice President, Construction Group, Rancho Mesa Insurance Services, Inc.
Contractors General Liability Policies provide coverage for bodily injury and property damage for which the Named Insured is legally liable. This legal liability can result from the company’s direct operations or from other subcontractors hired by the Named Insured.
Six Reasons a Company’s Experience Modification Could be Recalculated
Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.
Workers’ Compensation costs continue to be one of the most costly expenses for business owners in California. With recent reform, California has maintained steady rate decreases in the workers’ compensation marketplace. Unfortunately California still maintains some of the highest rates in the country, often times two to three times the nations average.
Six Proactive Steps to Prevent Heat Illness During a Scorching Summer
Author, Dave Garcia, President, Rancho Mesa Insurance Services, Inc.
The National Weather Service has issued heat warnings for many parts of California starting today, and excessive heat warnings for some other areas. Temperatures are expected to rise to 110ºF in some parts of the Sacramento Valley, for instance. In the desert areas of Imperial and San Diego counties, they will soar as high as 114ºF.
Independent Contractor Classification Changes Expected to Impact Construction Industry
Author, David J. Garcia, AAI, CRIS, President, Rancho Mesa Insurance Services, Inc.
With the recent ruling by the California Supreme Court concerning how 1099 employees (independent contractors) are defined, the construction industry's approach to utilizing these workers has changed significantly. The Court adopted a new test to determine whether the worker should be classified as an employee or independent contractor. The previous test to determine if a worker was an employee or independent contractor was whether the employer had the right to direct the manner and means by which the worker performed the services.
Key Steps to Take Before, During, and After an OSHA Inspection
Author, Sam Clayton, Vice President, Construction Group, Rancho Mesa Insurance Services, Inc.
An OSHA officer can show up to your facility or worksite for any number of reasons: employee complaints, accidents, programmed inspections, sweeps, follow-up or a drive-by observation. In order to ensure a smooth inspection, we suggest you prepare before OSHA appears at your door. Here are some key steps to take before, during and after an OSHA inspection.
How a Bank Line of Credit Can Affect Your Surety Bonding
Author, Andy Roberts, Account Executive, Surety, Rancho Mesa Insurance Services, Inc.
When a surety carrier is evaluating a bonding program for a contractor, they use many different underwriting factors to determine an acceptable amount of bond capacity. They will consider a contractor’s working capital, net worth and work in progress schedules, to name a few. Another important factor that can help increase a contractor's bonding capacity is a bank line of credit.
Why Painting Contractors Need Pollution Liability Insurance
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
At first glance, most painting contractors don’t think they need pollution coverage. One might think that if they're not pouring sludge into a lake or toxic gasses into the atmosphere, then it wouldn’t apply to their company. Everyone sees the oil spills and thinks that this is what pollution coverage is for, but how does it apply to your smaller business? How can one event jeopardize your company’s success?
CIGA is “Back in Black” - Employers will receive 2% savings on 2019 workers' comp premium
Author, Sam Clayton, Vice President, Construction Group, Rancho Mesa Insurance Services, Inc.
For the first time in 20 years, the California Insurance Guarantee Association (CIGA) will not collect its annual assessment. As a result, California employers in the guaranteed cost workers' compensation insurance market will save 2% on their premium in 2019.
Three Question to Ask Before Enrolling in an OCIP/CCIP or Wrap Program
Author, Daniel Frazee, Executive Vice President, Rancho Mesa Insurance Services, Inc.
Subcontractors in California regularly enroll in OCIP/CCIP or wrap programs. These programs are insurance policies that cover many of the participants in a construction project, including the owner/developer, general contractor and subcontractors. As many contractors learn the hard way, they do not control the program or the coverage terms, leaving the possibility of significant gaps that can impact the contractor in the future.
Case Study: First-Time Bonding for Landscape Professional
Author, Matt Gaynor, Director of Surety, Rancho Mesa Insurance Services, Inc.
I recently had the opportunity to work with a new client who is a landscape professional. He wanted to bid on a maintenance project for a local municipality and wasn’t sure if he would qualify for the required performance bond.
Employers Beware! Ten Red Flags You May Have a Fraudulent Workers’ Comp Claim
Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.
Workers’ Compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue their employer for the tort of negligence.
Risk Management Center Streamlines Electronic OSHA Reporting
Author, Alyssa Burley, Client Services Coordinator, Rancho Mesa Insurance Services, Inc.
The Occupational Health and Safety Administration (OSHA) now require certain employers to electronically submit their completed 2016 Form 300A. OSHA has created a website that allows employers to manually complete the information or upload a formatted CSV (comma-separated values) file
Federal OSHA Asserts Electronic Data Reporting Requirement Applies to Employers Across All States
Author, Alyssa Burley, Client Services Coordinator, Rancho Mesa Insurance Services, Inc.
The federal Occupational Safety and Health Administration (OSHA) announced Monday, April 30, 2018 it has “taken action to correct an error that was made with regard to implementing the final rule” which required some employers to electronically submit their injuring and illness reports via the Injury Tracking Application (ITA) online.
The Changing Definition of Employee: What you need to know about SB 189
Author, Yvonne Gallagher, Landscape Division Account Manager, Rancho Mesa Insurance Services, Inc.
California State Capital Building.
State Bill 189 (SB 189) (Bradford) was recently enacted by the California State Legislature. It is intended to correct issues resulting from the passage of Assembly Bill 2883 (AB 2883) (Daly et. al) in 2017, which changed the requirements for business owners to exclude themselves from workers' compensation coverage.
Workplace Violence Insurance Surges in Aftermath of Shootings
Author, Sam Brown, Vice President, Human Services Group, Rancho Mesa Insurance Services, Inc.
In response to the hundreds of mass shootings taking place each year, the insurance marketplace has produced new workplace violence products to help employers and employees recover from a crisis.