Industry News
Property Insurance in California Continues to be a Ticking Time Bomb
Author, Jeremy Hoolihan, Partner, Rancho Mesa Insurance Services, Inc.
Insurance industry experts and legislators continue to work with Insurance Commissioner Ricardo Lara and the California Department of Insurance (CDI) to address the overwhelming crisis in the insurance property market. On March 26th, 2024, there was a public hearing to address the crisis.
Rising Reconstruction Costs and the Impact on Building Owners
Author, Kevin Howard, Account Executive, Rancho Mesa Insurance Services, Inc.
The continuing trend of catastrophic claim activity over the last several years, rising number of nuclear settlements due to increased litigation funding, and hyperinflation are impacting all economic sectors. One of those sectors is the commercial property insurance market and the rapid increase in reconstruction costs.
Distracted Driving Awareness Month: Prevent Fleet Accidents Through Training
Author, Megan Lockhart, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.
April is Distracted Driving Awareness Month across the nation. The month is dedicated to preventing distractions while driving as well as spreading awareness of these dangers on the road.
Navigating Contractor Challenges in 2024: Insights from the Surety Association of San Diego
Author, Andy Roberts, Surety Account Executive, Rancho Mesa Insurance Services, Inc.
In a recent special StudioOne™ Podcast episode, I’m joined by my three fellow board members of the Surety Association of San Diego as we explore some of the biggest challenges facing contractors in 2024 and beyond.
Empower Your Crew: The Importance of Heat Illness Training and Preparedness
Author, Greg Garcia, Account Executive, Rancho Mesa Insurance Services, Inc.
As the calendar turns to April and warmer weather into spring time, now is a great time to take a look at your current Heat Illness Prevention Plan (HIPP), as well as make sure all crew members are up to date on their heat illness training.
SafetyOne™ Updates Company News: New Recipient Role Added for Users
Author, Megan Lockhart, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.
Recently, SafetyOne™ released new updates to the Company News feature of the platform. These updates include a new company news recipient user and added email notifications for all users.
California Enacts Strict Updates to Lead Exposure Regulations
Author, Megan Lockhart, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.
Recently, the Cal/OSHA Standards board approved stricter standards for occupational lead exposure in both the construction industry and general industry.
Dual Wage Thresholds Set to Increase Again
Author, Matt Gorham, Account executive, Rancho Mesa Insurance Services, Inc.
In an effort to keep up with wage inflation, California’s Workers’ Compensation Insurance Rating Bureau (WCIRB) has recommended increases to all 16 construction dual wage thresholds, which, if approved, would impact policies beginning on September 1, 2024 and could drive up insurance premiums for those unaware.
California Updates Required Employment Pamphlets
Author, Megan Lockhart, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.
Recently, the State of California has made several important updates to labor pamphlets that must be provided to employees.
Avoid Audit Nightmares with Properly Classified Tree Care Industry Equipment and Vehicle Maintenance Operations
Author, Rory Anderson, Account Executive, Rancho Mesa Insurance Services, Inc.
Tree care companies use specialized vehicles and equipment to perform their work. These assets are vital to the success of the company. To maintain their effectiveness, the machines need routine maintenance and upkeep. Issues arise when they break down, so it’s important to repair them immediately to limit business interruptions such as decreased productivity and profitability. The maintenance of the machinery can be a full time job, and some tree care businesses are lucky enough to have an employee, or a team of employees, dedicated to shop maintenance.
Getting to Know Our Trade Associations – Meet Andy Berg, Executive Director of NECA San Diego
Author, Anne Wright, Surety Relationship Executive, Rancho Mesa Insurance Services, Inc.
As we have shared with our clients and viewers in the past, Rancho Mesa finds a tremendous amount of value in memberships of various trade associations. Becoming involved in these associations by attending events, and participating in committees, ultimately at board level, has allowed for a deeper understanding of the construction industry that we bond. I have found value in following legislation changes that affects the industry, as well as learning about the issues and processes available for contractors to run safer jobs, be more competitive in the industry, and manage contracts and financial reporting. It has made me better at what I do as a surety agent.
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.
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.
Performance Bonds for Private Equity Contractors
Author, Matt Gaynor, Director of Surety, Rancho Mesa Insurance Services, Inc.
We have entertained several recent submissions from our construction division prospects looking for bonding support of their companies that are majority owned by a private equity firm. The traditional surety market will push back on private equity submissions pointing out the goodwill and large amount of debt listed on the balance sheet. Throw in the limited indemnity package offered in support of the bond program and we have created a perfect storm for the account to be declined without any actual underwriting taking place. But there is hope!
How to Strategically Grow Your Construction Company
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
One of the biggest ongoing challenges in the construction industry today is hiring and retaining quality employees that can help build on a company’s foundation. Growing a construction company in a sustainable way through internal promotions while also integrating new hires can separate one company from its competitors.
OSHA Form Submission Time: A Refresh
Author, Megan Lockhart, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.
It's that time of the year again, when employers review their work-related injuries and illnesses from the past year and fill out their OSHA 300A Form. Companies in designated industries must electronically submit the 300A Form to OSHA by March 2nd, 2024. As this deadline swiftly approaches, let’s review further details of these requirements.
Top 5 OSHA Violation Trends and Solutions
Author, Sam Clayton, Vice President, Construction Group, Rancho Mesa Insurance Services, Inc.
Every year, Federal OSHA conducts thousands of inspections and issues costly citations to companies. So, it is imperative for business owners and safety managers to be aware of the most common citations and how to avoid them through effective safety programs.
Best Practice Tips for Lowering Your Commercial Auto Rates
Author, Jeremy Hoolihan, Partner, Rancho Mesa Insurance Services, Inc.
For the last several years, the insurance industry has seen a significant increase in auto rates. In 2023, the top ten auto carriers in the US all saw double digit rate increases. This, in addition to the rate increases we’ve seen since 2018, equates to rates anywhere from 20-50% higher than we had just a few years ago. According to US auto insurers, these rate increases are still not keeping up with the skyrocketing claim frequency and severity. Therefore, we are likely to continue to see auto rates increase before things level off.
Unlocking Working Capital in Construction: Options for Reducing or Releasing Retention
Author, Andy Roberts, Surety Account Executive, Rancho Mesa Insurance Services, Inc.
Retention is a very common practice within the construction industry that typically involves 5-10% of each payment to the subcontractor being withheld until the project has been completed. The purpose behind this is simple, it is designed to make sure that subcontractors satisfy their contractual agreements before they receive their last payment for the work they have done. While this practice serves a real purpose, it can cause significant issues for subcontractors if the payments are delayed.
Navigating the Construction Labor Shortage: Factors and Strategies for Success
Author, Kevin Howard, Account Executive, Rancho Mesa Insurance Services, Inc.
Construction companies nationwide are grappling with a shared challenge: a labor shortage propelled by various factors. In this article, we will explore these factors and highlight key areas that can contribute to managing bottom lines effectively.