Anybody who is becoming a bit older must always go through the fact that health insurance will likely be crucial in protecting them against any kind of financial impediment that they will face if they ended up to need to handle his or her health related expenses and upkeep.
The money necessary for Medicare can be extremely substantial and if you're to aren't able to get hold of appropriate insurance protection then you may find that you are in a whole lot of trouble financially. As a result, it's very important that you turn to acquire a Medicare plan, nonetheless typically this tends to not actually be enough. In cases like this, you may also consider the thought of acquiring Medigap Insurance that will fill in the gaps inside your Medicare health insurance policy. If you have been to contemplate 'why must i have Medicare supplement insurance', it is obvious to state this will certainly be essential in helping you to avert monetary problems related to protecting specific medical costs.
If you were to get Medigap Insurance Florida then you could truly feel entirely safe and sound knowing that the costs that are related to a person's Health-related will be covered by insurance companies.
This will as a result permit you to have a particular satisfaction that whenever one does encounter any sort of problem, every little thing are going to be covered by either your Medicare health insurance or an individual's Medicare supplement insurance coverage. Having merely Medicare insurance you might have experienced gaps to fill, and this is the reason why Medicare supplement insurance protection becomes so important.
Needless to say, it is vital that you be familiar with all of the different plans that might be accessible to you while looking to obtain Medicare supplement insurance. You can get Ten distinctive plans in the current market, and all of these are typically offered by several insurance providers throughout The united states.
You need to, therefore, examine each plan separately and work out which one will most likely be the best option in your case. You will find various added benefits related to various plans, and thus there are different costs that might be attached to them alongside this.
While the policies which are marketed from all of these various providers will have consistent coverage, the different fees that will be billed are not the same. As such, in the event you spend some sort ofchunk of time period looking through some different providers that you are capable of find cheaper coverage from many different providers.
To sum up, it is important that you just fill the gaps in your health insurance to provide your self serenity and free yourself from your virtual impediment of certain medical costs that you could possibly run across.
Tuesday, May 3, 2011
Monday, April 18, 2011
How Can an Insurance Claims Specialist Help?
Generally, most people have a misconception about their insurance agent. They believe that because they have been paying their annual premiums that the agent is concerned about doing what is right for them. While that may be true for a small number of agents, most agents on the other hand know their loyalty is to the insurance company for which they work.
When the adjuster comes out to examine your damage, he or she wants to save the boss as much money as possible. And that means they will do whatever it takes to minimize the value of your claims.
Of course, you won't be thinking about all of these issues at the time. You will be worried and stressed because of the accident, the fire, the storm, or whatever may be the cause of your claim. And that is why it is important for you to use an insurance claims specialist.
What Does an Insurance Claims Specialist Do?
Insurance claims specialists work with people like you who need assistance in filing their claims and in handling all of the other responsibilities that may entail. The specialist can come into the picture and help you answer questions from the insurance company and deal with all of the other professionals who will be involved in making you whole again. You won't have to deal with the phone calls, emails and letters from the insurance company, the contractors, or anyone else. All of that will be handled by your claims specialist. You just work on getting your life back together.
Another important service is that an insurance claims specialist can help you interpret the fine print of your policy. Most of us don't understand the jargon insurance companies use to explain our coverage, the policy exceptions and other elements. They can step in and help you make sense of all the details so you will be armed with knowledge.
Specific Services from Insurance Claims Specialist
As soon as you need to make an insurance claim, you should call in your specialist. Because you will need to make sure your story is coherent, you can work with the specialist before you start answering questions from your agent. Additionally, if you need a temporary place to live or a rental car or even cash to hold you over until you can begin receiving funds from your policy, your insurance claims specialist can take care of all of these areas for you.
Once your basic needs are taken care of, your specialist will start assessing your damages. He or she will be able to provide a true estimate of what you have lost as a result of the accident, fire, or other destructive event. They can also examine your policy and decide what you can expect to receive based on those damages.
After the wheels of the claims process are set in motion, your representative will work with the professionals on your behalf and will help to negotiate the type of settlement you desire and for the amount you deserve. Remember they will be working for your interest not the insurance company's.
When the adjuster comes out to examine your damage, he or she wants to save the boss as much money as possible. And that means they will do whatever it takes to minimize the value of your claims.
Of course, you won't be thinking about all of these issues at the time. You will be worried and stressed because of the accident, the fire, the storm, or whatever may be the cause of your claim. And that is why it is important for you to use an insurance claims specialist.
What Does an Insurance Claims Specialist Do?
Insurance claims specialists work with people like you who need assistance in filing their claims and in handling all of the other responsibilities that may entail. The specialist can come into the picture and help you answer questions from the insurance company and deal with all of the other professionals who will be involved in making you whole again. You won't have to deal with the phone calls, emails and letters from the insurance company, the contractors, or anyone else. All of that will be handled by your claims specialist. You just work on getting your life back together.
Another important service is that an insurance claims specialist can help you interpret the fine print of your policy. Most of us don't understand the jargon insurance companies use to explain our coverage, the policy exceptions and other elements. They can step in and help you make sense of all the details so you will be armed with knowledge.
Specific Services from Insurance Claims Specialist
As soon as you need to make an insurance claim, you should call in your specialist. Because you will need to make sure your story is coherent, you can work with the specialist before you start answering questions from your agent. Additionally, if you need a temporary place to live or a rental car or even cash to hold you over until you can begin receiving funds from your policy, your insurance claims specialist can take care of all of these areas for you.
Once your basic needs are taken care of, your specialist will start assessing your damages. He or she will be able to provide a true estimate of what you have lost as a result of the accident, fire, or other destructive event. They can also examine your policy and decide what you can expect to receive based on those damages.
After the wheels of the claims process are set in motion, your representative will work with the professionals on your behalf and will help to negotiate the type of settlement you desire and for the amount you deserve. Remember they will be working for your interest not the insurance company's.
Derek Rogers is a freelance writer who represents a number of UK businesses. For Loss Assessor Consultants and Insurance Claim Specialists, he recommends Morgan Clark. Article Source: http://ezinearticles.com/?expert=Derek_A_Rogers |
Making House Fire Insurance Claims
Are You Prepared if the Worst Should Happen?
The recent house fire at the Buckinghamshire home of broadcaster Sir Terry Wogan highlights the risks we all face of an outbreak of fire in our home. Even when every precaution is made to avoid such a disaster, house fires can still be unavoidable. Will your insurance cover you if your home and possessions are destroyed by fire? Making a house fire insurance claim may not be as straightforward as you expected.
Sir Terry Wogan's house fire was caused by a faulty tumble dryer in a utility room. Fortunately there were smoke alarms throughout the building, alerting residents to the blaze very quickly. All internal doors in the house were closed which prevented the fire from spreading to any other rooms of the house. It still took two firefighters in breathing apparatus two hours to contain the fire. Sir Terry praised the firefighters on his radio show.
Claiming House Fire Insurance
While the damage to Sir Terry's home could have been a lot worse if the fire prevention measures had not been so good, it's certain there will still be a claim to make on home and contents insurance. It's likely there was a great deal of smoke damage to some of the contents of the house, and of course the tumble dryer and possibly some of the other equipment in the utility room has been damaged.
If you were to fall victim to a house fire, would you be able to make an insurance claim? Fire does not just cause damage to replaceable property and possessions . A serious house fire could destroy personal belongings which cannot be replaced. What price can you put on these items? Whatever value you give them, your insurance company may not agree.
Getting the Right Settlement in Your House Fire Insurance Claim
Your insurance company are in the business of making a profit, and they don't do this by giving out vast sums of money to their claimants. Insurance companies employ experts, known as loss adjusters, to review the details of insurance claims and make sure the insurance company pay out as little as possible. An insurance loss assessor will visit the property, taking photographs and making notes on the damage the fire has caused, and will present a report to the insurance company suggesting the lowest possible settlement to cover the cost of fire damage.
You may find that this amount does not adequately cover the loss that you have suffered in a house fire. Unfortunately, most people making insurance claims are not experts and don't have the time, knowledge or experience to put forward a good case. But expert help is available to those making house fire insurance claims.
An insurance loss assessor works in much the same way as an insurance adjuster, compiling detailed evidence of the damage the fire has caused and assessing what the insurance settlement should be. The difference is that loss assessors work for the claimant, not the insurance company. A loss assessor will make a fair and honest appraisal of the damage and present the strongest case for you when making your insurance claim for a house fire. The cost of using such an insurance expert is more than covered by the final settlement they are able to get you.
How to Make a Successful House Fire Insurance Claim
The most important thing to do, as soon as the fire has been taken care of, is to contact an insurance loss assessor as quickly as possible. The sooner they can visit your home and assess the damage, the better the chance they have of getting you a fair and appropriate settlement from your insurance company.
Of course, before any of this happens, you should take every step to avoid the risk of a fire in your home. But if the worst does occur, make sure you use an insurance loss assessor to avoid a disappointing payout from your insurance company.
The recent house fire at the Buckinghamshire home of broadcaster Sir Terry Wogan highlights the risks we all face of an outbreak of fire in our home. Even when every precaution is made to avoid such a disaster, house fires can still be unavoidable. Will your insurance cover you if your home and possessions are destroyed by fire? Making a house fire insurance claim may not be as straightforward as you expected.
Sir Terry Wogan's house fire was caused by a faulty tumble dryer in a utility room. Fortunately there were smoke alarms throughout the building, alerting residents to the blaze very quickly. All internal doors in the house were closed which prevented the fire from spreading to any other rooms of the house. It still took two firefighters in breathing apparatus two hours to contain the fire. Sir Terry praised the firefighters on his radio show.
Claiming House Fire Insurance
While the damage to Sir Terry's home could have been a lot worse if the fire prevention measures had not been so good, it's certain there will still be a claim to make on home and contents insurance. It's likely there was a great deal of smoke damage to some of the contents of the house, and of course the tumble dryer and possibly some of the other equipment in the utility room has been damaged.
If you were to fall victim to a house fire, would you be able to make an insurance claim? Fire does not just cause damage to replaceable property and possessions . A serious house fire could destroy personal belongings which cannot be replaced. What price can you put on these items? Whatever value you give them, your insurance company may not agree.
Getting the Right Settlement in Your House Fire Insurance Claim
Your insurance company are in the business of making a profit, and they don't do this by giving out vast sums of money to their claimants. Insurance companies employ experts, known as loss adjusters, to review the details of insurance claims and make sure the insurance company pay out as little as possible. An insurance loss assessor will visit the property, taking photographs and making notes on the damage the fire has caused, and will present a report to the insurance company suggesting the lowest possible settlement to cover the cost of fire damage.
You may find that this amount does not adequately cover the loss that you have suffered in a house fire. Unfortunately, most people making insurance claims are not experts and don't have the time, knowledge or experience to put forward a good case. But expert help is available to those making house fire insurance claims.
An insurance loss assessor works in much the same way as an insurance adjuster, compiling detailed evidence of the damage the fire has caused and assessing what the insurance settlement should be. The difference is that loss assessors work for the claimant, not the insurance company. A loss assessor will make a fair and honest appraisal of the damage and present the strongest case for you when making your insurance claim for a house fire. The cost of using such an insurance expert is more than covered by the final settlement they are able to get you.
How to Make a Successful House Fire Insurance Claim
The most important thing to do, as soon as the fire has been taken care of, is to contact an insurance loss assessor as quickly as possible. The sooner they can visit your home and assess the damage, the better the chance they have of getting you a fair and appropriate settlement from your insurance company.
Of course, before any of this happens, you should take every step to avoid the risk of a fire in your home. But if the worst does occur, make sure you use an insurance loss assessor to avoid a disappointing payout from your insurance company.
Truman Associates is a firm of insurance loss assessors in the UK. If you need to make a house fire insurance claim, they can get you a settlement that fairly reflects the loss and damage you've suffered. Article Source: http://ezinearticles.com/?expert=Robin_Fry |
Tuesday, March 22, 2011
Theft of Heating Oil
The cost of heating oil has increased significantly recently, resulting in more thefts of oil from both domestic and commercial properties.
What you can do to prevent losses?
Monitor the level of oil in your tank regularly.
course of action, as thieves may smash the valve
completely, but it can deter a less determined thief.
Conceal the location of the tank by using hedging,
fencing or walling.
Ensure any gates are locked at night, to make it more
difficult for a thief to escape with oil.
Securely lock doors at all times if the tank is situated
within a building.
Install an alarm device which creates an alert if the oil
level suddenly drops or if the lock is attacked.
Consider installing security lighting to cover the tank,
if it is overlooked by nearby buildings.
Consider closed circuit television.
Ask nearby residents to be vigilant and report any
suspicious activity to the police.
Contact your Insurance Broker for further advice.
For further advice relating to this article or any other aspect of your business insurance requirements please contact David Wilson ACII on 07970 304169 or david@nevillejones.com for a free, no obligation consultation.
Wednesday, September 22, 2010
The Credit Insurance Market for Businesses
The continuing fallout from the Credit Crunchhas had serious implications for millions of businesses when dealing with other trading partners and has raised the profile of the desirability of Credit Inisurance to protect your business from default on debts owed to you.
A Credit Insurance policy can provide your business with protectioon against non-payment for goods or services due to the failure of a customer to pay their bills. Credit Insurance can minimise bad debts and allow your business to expand your sales, safe in the knowldge that you will be paid. By identifying exactly which of your current and potential customers are sound credit risks you can concentrate your sales effort on customers who offer the best prospects for growth. The advanced credit checking facilities provided by credit insurers can therefore be used as a proactive tool to grow your business.
For most companies over 40% of current assets are made up of money owed for goods and services provided on credit terms. If this is not insured, then there is the potential for a disastrous loss in the future.
Generally speaking, Credit insurance falls under the following broad cover options:
(1) Domestic Credit or Whole of Turnover Domestic credit insurance
This provides cover within the business' local domestic market against bad debt losses caused by insolvency and/or protracted default for a single purchaser or the entire portfolio of receivables (whole turnover). Policies are usually structured with a first loss of �500 to �1,000.
(2) Export Credit Insurance or Whole Turnover Export Credit Insurance
This provides cover for international export sales for a variety of risks including insolvency, protracxted default and political event in the foreign country. Cover is available for a single overseas buyer or for an entire portfolio of foreign receivables (whole turnover).
(3) Combined Domestic & Export Credit Insurance
This is available for businesses trading in both the domestic and export market.
(4) Pre-Delivery Coverage
This is designed for situations where the goods are made to order. It protects against the insolvency of the buyer and/or political default or political frustration.
(5) Specific Account Credit Insurance
This covers receivables for a single specified customer, normally the largest account the business has if they are heavily dependent upon one company. Cover is often provided for insolvency only.
(6) Key Account Credit Insurance
This offers cover against business insolvency and protracted default for a selection of companies of between 2 and 20 of the largest customers. These policies usually carry an excess.
(7) Catastrophe Credit Insurance
This is for companies with an annual turnover in excess of �10 million and with established and effective credit control procedures in place. The insurers set an annual aggregate deductible in excess of which claims are paid. The deductible is set at a level of anywhere between �25,000 and �100,000 for the year.
(8) Global Credit Insurance
This is designed for multi-nationals to cover all of the divisions on a Whole Turnover or Catastrophe basis
85% of the Credit Insurance market is catered for by 3 companies, namely Euler Hermes, Atradius and COFACE. The remainder of the market is catered for by companies such as Ace Europe, Chartis, CIFS, HCC International insurance company Plc, QBE and Zurich.
Creidt Insurance could prevent your company being drawn into major debt difficulties in the event of the failure of a major company and the knock on effect that that entails. It can also be used as a tool to target your sales towards companies that are more likely to grow and thereby improve your own company's sales performance moving forward.
If this is an aspect of your own company's overall insurance portfolio that would be of interest to you please contact me.
A Credit Insurance policy can provide your business with protectioon against non-payment for goods or services due to the failure of a customer to pay their bills. Credit Insurance can minimise bad debts and allow your business to expand your sales, safe in the knowldge that you will be paid. By identifying exactly which of your current and potential customers are sound credit risks you can concentrate your sales effort on customers who offer the best prospects for growth. The advanced credit checking facilities provided by credit insurers can therefore be used as a proactive tool to grow your business.
For most companies over 40% of current assets are made up of money owed for goods and services provided on credit terms. If this is not insured, then there is the potential for a disastrous loss in the future.
Generally speaking, Credit insurance falls under the following broad cover options:
(1) Domestic Credit or Whole of Turnover Domestic credit insurance
This provides cover within the business' local domestic market against bad debt losses caused by insolvency and/or protracted default for a single purchaser or the entire portfolio of receivables (whole turnover). Policies are usually structured with a first loss of �500 to �1,000.
(2) Export Credit Insurance or Whole Turnover Export Credit Insurance
This provides cover for international export sales for a variety of risks including insolvency, protracxted default and political event in the foreign country. Cover is available for a single overseas buyer or for an entire portfolio of foreign receivables (whole turnover).
(3) Combined Domestic & Export Credit Insurance
This is available for businesses trading in both the domestic and export market.
(4) Pre-Delivery Coverage
This is designed for situations where the goods are made to order. It protects against the insolvency of the buyer and/or political default or political frustration.
(5) Specific Account Credit Insurance
This covers receivables for a single specified customer, normally the largest account the business has if they are heavily dependent upon one company. Cover is often provided for insolvency only.
(6) Key Account Credit Insurance
This offers cover against business insolvency and protracted default for a selection of companies of between 2 and 20 of the largest customers. These policies usually carry an excess.
(7) Catastrophe Credit Insurance
This is for companies with an annual turnover in excess of �10 million and with established and effective credit control procedures in place. The insurers set an annual aggregate deductible in excess of which claims are paid. The deductible is set at a level of anywhere between �25,000 and �100,000 for the year.
(8) Global Credit Insurance
This is designed for multi-nationals to cover all of the divisions on a Whole Turnover or Catastrophe basis
85% of the Credit Insurance market is catered for by 3 companies, namely Euler Hermes, Atradius and COFACE. The remainder of the market is catered for by companies such as Ace Europe, Chartis, CIFS, HCC International insurance company Plc, QBE and Zurich.
Creidt Insurance could prevent your company being drawn into major debt difficulties in the event of the failure of a major company and the knock on effect that that entails. It can also be used as a tool to target your sales towards companies that are more likely to grow and thereby improve your own company's sales performance moving forward.
If this is an aspect of your own company's overall insurance portfolio that would be of interest to you please contact me.
Thursday, September 9, 2010
The difference between a bona fide and a labour only sub-contractor
In my previous blogs we discussed the compulsory nature of the Employers Liability (Compulsory Insurance) Act 1969 and whether it was necessary for a business to take out Employers Liability Insuranceif the only employee was a spouse or a close relative. Many businesses also employ the services of sub-contractors to assist them with part or all of their operations. There are two distinct types of sub-contractor and it is important that your business is able to distinguish between these different types of sub-contractor. The nature of the contract and your working relationship with the sub-contractor (whether they be a bona fide sub-contractor or a labour only sub-contractor) will have ramifications for the responsibilities you will be assuming and consequently the type of Liability Insurance you require to cover your potential liability.
The following should help you to determine between the different types of sub-contractor and whether Employers Liability Insurance is required.
Labour Only Sub-Contractors
Labour only sub-contractors generally work under the direction of the employer and they do not provide their own materials or tools or than small hand tools. They would be considered as employees for the purposes of an |Employers Liability Insurance policy.
Bona Fide Sub-Contractors
Bona fide sub-contractors generally work under their own direction and provide their own materials and tools. They should also take out their own Public Liability Insurance. Provided they are not working under your direction, have their own legal liabilities which they insure themselves, there is no need to include these in the count of employees.
In the event of an accident caused by the the sub-contractor in the course of executing their contract with you, the injured third party could take legal action against both the bona fide sub-contractor for causing the accident and you as the main contractor. The bona fide sub-contractor's own Public Liability insurance policy would cover them for their own legal liability, and your own Public Liability insurance would cover you in the event that you were found to be legally liable. Please note that your Public Liability policy would only cover you for your own legal liability arising from the incident. It would not cover the bona fide sub-contractor's liability, (hence the need for the bona fide sub-contractor to have their own insurance in force). If, for whatever reason, the bona fide sub-contractor's policy is inoperative or has insufficient cover then the liklihood of the claim being directed against you is greatly increased. (From the third party's perspective their would be little point in suing the bona fide sub-contractor in those circumstances because the chances of them having sufficient funds to pay any significant compensation would be slim. Those with the insurance in force, and therefore the deepest pockets, would be drawn in to any action). It is for this reason that most Public Liability insurers make it a condition of their cover that whenever you enter in to a contract with a bona fide sub-contractor you must check that they have Public Liability insurance in force with cover up to an indemnity limit at least equivalent to the limit provided under your own policy.
It is therefore imperative that whenever you enter in to a contract with a bona fide sub-contractor, you must check that they have Public Liability cover in force for the type of activities they will be undertaking for you and that it will be in force for the duration of the period for which they will be undertaking the work. You must also check that the indemnity limit provided under their policy is at least as much as the limit provided under your own policy. If you do not do this, your own policy would be invalidated and you would therefore have to meet your own legal liability and associated legal costs out of your own coffers.
How to distinguish between a Bona Fide Sub-Contractor and a Labour Only Sub-Contractor
There are a number of factors to take into account when determining the status of a sub-contractor.
A worker would be regarded as a Labour Only Sub-Contractor (and would need to be covered for Employers Liability Insurance) they meet the following criteria
(1) They are paid by the hour, week or month
(2) They are entitled to receive overtime pay or a bonus payment
(3) They only supply their own small hand tools
(4) They always have to do the work themselves
(5) The main contractor can tell them at any time what to do, where to carry out the work or when and how to do it
(6) They work a set amount of hours
(7) The main contractor can move them from task to task
A worker would be regarded as a bona fide sub-contractor if they meet the following criteria
(1) They undertake a job for a fixed price regardless of how long the job may take
(2)They have a contract for the provision of services as opposed to a contract of employment
(3) Within an overall deaddline, they are able to decide what work to do, how and when to do the work and where to provide the services
(4) They regularly work for a number of different people other than the main contractor
(5) They have to correct unsatisfactory work in their own time and at their own expense
(6) They hold their own Public Liability insurance in their own name. (Public Liability insurance is not a statutory compulsory form of insurance so it is possible that a sub-contractor may not have this form of insurance)
(7) They pay the cost of all materials or supplies required for the work without being reimbursed
(8) They are free to hire someone else to do the work or engage helpers at their own expense
(9) They risk their own money
(10) They provide or hire in the main items of equipment they need to do their job, not just the small tools that many employees provide for themselves.
Depending upon the size of the business, Liability Insurers, calculate the premium they will charge for the business in one of two ways:
Small Business (generally up to 10 employees) - Per Capita basis (i.e. on the number of principals/directors/employees in the company)
Larger Businesses - Wageroll and Turnover basis (i.e. they charge a rate per cent to the wageroll of the company, the rate charged being determined by the nature of the activities being undertaken by the company).
For the larger businesses rated on wageroll and turnover, the wageroll/earnings are split into various categories based on the earnings of the director/principal/sole trader, the wageroll of the employees and payments made to labour only and bona fide sub-contractors. If it is a limited company the director's earnings will be included under the Employers Liability section for rating purposes. Partners' or sole traders' earnings are not included in the calculation of the Employers Liability premium. Under the Employers Liability Section payments to labour only sub-contractors are included, but payments to bona fide sub-contrators are not.
Under the public Liability Section payments to all of the categories are included for rating purposes (although they only charge a much smaller rate for payments made to bone fide sub-contractors. Payments made to labour only sub-contrators are charged the same rate as if they were direct employees because the policyholder is directly responsible for their actions and has greater control over their supervision. Tthe various categories are therefore as follows:
Employers Liability
Limited companies:
Directors
Employees
Labour Only Sub-Contractors
Partnerships or sole-traders:
Employees
Labour Only Sub-Contractors
Public Liability
Limited Companies:
Directors
Employees
Labour Only Sub-Contractors
Bona Fide Sub-Contractors
Partnerships or Sole traders:
Partners (or Sole Trader)
Employee
Labour Only Sub-Contractors
Bona Fide Sub-Contractors
Further distinctions are then made to the calculation of the premium rate being charged depending on the nature of the work being undertaken. For example, clerical/sales, manual work depending upon the trade, work at height, work at depth, work involving the application of heat etc.
Further factors can be taken into account to fine tune the rating of the policy to take into account their comapny's claims history, attitude to risk, what health and safety procedures are in place to name but a few.
If you have any queries regarding this article or would like advice regarding any aspect of your own company's Liability Insurance requirements please do not hesitate to contact me for a free, impartial and independent review.
david.wilson65@hotmail.com
07970 304169
The following should help you to determine between the different types of sub-contractor and whether Employers Liability Insurance is required.
Labour Only Sub-Contractors
Labour only sub-contractors generally work under the direction of the employer and they do not provide their own materials or tools or than small hand tools. They would be considered as employees for the purposes of an |Employers Liability Insurance policy.
Bona Fide Sub-Contractors
Bona fide sub-contractors generally work under their own direction and provide their own materials and tools. They should also take out their own Public Liability Insurance. Provided they are not working under your direction, have their own legal liabilities which they insure themselves, there is no need to include these in the count of employees.
In the event of an accident caused by the the sub-contractor in the course of executing their contract with you, the injured third party could take legal action against both the bona fide sub-contractor for causing the accident and you as the main contractor. The bona fide sub-contractor's own Public Liability insurance policy would cover them for their own legal liability, and your own Public Liability insurance would cover you in the event that you were found to be legally liable. Please note that your Public Liability policy would only cover you for your own legal liability arising from the incident. It would not cover the bona fide sub-contractor's liability, (hence the need for the bona fide sub-contractor to have their own insurance in force). If, for whatever reason, the bona fide sub-contractor's policy is inoperative or has insufficient cover then the liklihood of the claim being directed against you is greatly increased. (From the third party's perspective their would be little point in suing the bona fide sub-contractor in those circumstances because the chances of them having sufficient funds to pay any significant compensation would be slim. Those with the insurance in force, and therefore the deepest pockets, would be drawn in to any action). It is for this reason that most Public Liability insurers make it a condition of their cover that whenever you enter in to a contract with a bona fide sub-contractor you must check that they have Public Liability insurance in force with cover up to an indemnity limit at least equivalent to the limit provided under your own policy.
It is therefore imperative that whenever you enter in to a contract with a bona fide sub-contractor, you must check that they have Public Liability cover in force for the type of activities they will be undertaking for you and that it will be in force for the duration of the period for which they will be undertaking the work. You must also check that the indemnity limit provided under their policy is at least as much as the limit provided under your own policy. If you do not do this, your own policy would be invalidated and you would therefore have to meet your own legal liability and associated legal costs out of your own coffers.
How to distinguish between a Bona Fide Sub-Contractor and a Labour Only Sub-Contractor
There are a number of factors to take into account when determining the status of a sub-contractor.
A worker would be regarded as a Labour Only Sub-Contractor (and would need to be covered for Employers Liability Insurance) they meet the following criteria
(1) They are paid by the hour, week or month
(2) They are entitled to receive overtime pay or a bonus payment
(3) They only supply their own small hand tools
(4) They always have to do the work themselves
(5) The main contractor can tell them at any time what to do, where to carry out the work or when and how to do it
(6) They work a set amount of hours
(7) The main contractor can move them from task to task
A worker would be regarded as a bona fide sub-contractor if they meet the following criteria
(1) They undertake a job for a fixed price regardless of how long the job may take
(2)They have a contract for the provision of services as opposed to a contract of employment
(3) Within an overall deaddline, they are able to decide what work to do, how and when to do the work and where to provide the services
(4) They regularly work for a number of different people other than the main contractor
(5) They have to correct unsatisfactory work in their own time and at their own expense
(6) They hold their own Public Liability insurance in their own name. (Public Liability insurance is not a statutory compulsory form of insurance so it is possible that a sub-contractor may not have this form of insurance)
(7) They pay the cost of all materials or supplies required for the work without being reimbursed
(8) They are free to hire someone else to do the work or engage helpers at their own expense
(9) They risk their own money
(10) They provide or hire in the main items of equipment they need to do their job, not just the small tools that many employees provide for themselves.
Depending upon the size of the business, Liability Insurers, calculate the premium they will charge for the business in one of two ways:
Small Business (generally up to 10 employees) - Per Capita basis (i.e. on the number of principals/directors/employees in the company)
Larger Businesses - Wageroll and Turnover basis (i.e. they charge a rate per cent to the wageroll of the company, the rate charged being determined by the nature of the activities being undertaken by the company).
For the larger businesses rated on wageroll and turnover, the wageroll/earnings are split into various categories based on the earnings of the director/principal/sole trader, the wageroll of the employees and payments made to labour only and bona fide sub-contractors. If it is a limited company the director's earnings will be included under the Employers Liability section for rating purposes. Partners' or sole traders' earnings are not included in the calculation of the Employers Liability premium. Under the Employers Liability Section payments to labour only sub-contractors are included, but payments to bona fide sub-contrators are not.
Under the public Liability Section payments to all of the categories are included for rating purposes (although they only charge a much smaller rate for payments made to bone fide sub-contractors. Payments made to labour only sub-contrators are charged the same rate as if they were direct employees because the policyholder is directly responsible for their actions and has greater control over their supervision. Tthe various categories are therefore as follows:
Employers Liability
Limited companies:
Directors
Employees
Labour Only Sub-Contractors
Partnerships or sole-traders:
Employees
Labour Only Sub-Contractors
Public Liability
Limited Companies:
Directors
Employees
Labour Only Sub-Contractors
Bona Fide Sub-Contractors
Partnerships or Sole traders:
Partners (or Sole Trader)
Employee
Labour Only Sub-Contractors
Bona Fide Sub-Contractors
Further distinctions are then made to the calculation of the premium rate being charged depending on the nature of the work being undertaken. For example, clerical/sales, manual work depending upon the trade, work at height, work at depth, work involving the application of heat etc.
Further factors can be taken into account to fine tune the rating of the policy to take into account their comapny's claims history, attitude to risk, what health and safety procedures are in place to name but a few.
If you have any queries regarding this article or would like advice regarding any aspect of your own company's Liability Insurance requirements please do not hesitate to contact me for a free, impartial and independent review.
david.wilson65@hotmail.com
07970 304169
Wednesday, September 1, 2010
Employers Liability Insurance - Do I need to tell my Employees that I have Employer's Liability Insurance
Further to my previous blog regarding Emplyers Liability Insurance, once you have taken out Employers Liability Insurance the Insurance company will issue (in addition to the Insurance policy and Schedule) an Employers Liability Certificate. This Certificate will confirm that the policy meets the minimum level of statutory cover as required under the Employers Liability (Compulsory Insurance) Act 1969 and that the policy has been issued by an insurer authorised to do so.
Most policies in the UK will have an indemnity limit of �10,000,000 which is the industry norm. However, the certificate will only confirm that the limit is at least �5,000,000 (to comply with the above legislation. To check the actual amount of cover provided under the policy you should refer to the insurance Schedule and not the certificate.
The certificate will also show the names of the companies covered by the policy, the period of insurance and the identity of the insurer.
A copy of your insurance certificate must displayed where your employees can easily read it. If you trade from more than one premises, a copy must be displayed at each location. These regulations changed slightly on 1st October 2008, when employers were allowed to display their certificates electronically, provided the employer ensures that their employees know how and where to find the certificate and have reasonable access to it. Factors to consider include the availability of the chosen format and ensuring employees understand how to use it.
With regard to offshore installations or associated structures, employers do not need to provide a copy of the certificate on every installation, although if an employee asks to see a copy of the certificate, he is entitled to to be provided with a copy as soon as possible and in any case within 10 working days of their request.
Since 1st October 2008, the previous requirement for employers to retain a copy of their Employers Liability certificates for a minimum of 40 years was overturned. Since that date there has been no legal requirement for employers to keep copies of out-of-date certificates. However, while it is no longer a legal requirement to keep these records, it is still prudent for an employer to continue to keep records of their Employers Liability insurers for some considerable time after the cover with a particular iinsurer has expired.
A claim can occur on an Employers Liabilty policy many years after an employee's period of employment ( for example, an industrial disease such as Asbestosis may not manifest itself until many years after a person's period of employment has ended). If the employer has not kept adequate records and cannot identify the insurer concerned for the period of the employee's employment, any claim for compensation will be directly against the employer. With conditions such as Asbestosis and the like, any such compensation claim could be extremely expensive and potentially ruin the company. The need to retain accurate details of your Employers Liability insurers (ideally for up to 40 years) is therefore vital to safeguard the company.
These are just a few of the responsibilities imposed upon employers when taking out Employers Liability insurance.
If anyone is unclear or would like clarification on their responsibilities with regard to Employers Liability insurance please do not hesitate to contact me for assistance.
Most policies in the UK will have an indemnity limit of �10,000,000 which is the industry norm. However, the certificate will only confirm that the limit is at least �5,000,000 (to comply with the above legislation. To check the actual amount of cover provided under the policy you should refer to the insurance Schedule and not the certificate.
The certificate will also show the names of the companies covered by the policy, the period of insurance and the identity of the insurer.
A copy of your insurance certificate must displayed where your employees can easily read it. If you trade from more than one premises, a copy must be displayed at each location. These regulations changed slightly on 1st October 2008, when employers were allowed to display their certificates electronically, provided the employer ensures that their employees know how and where to find the certificate and have reasonable access to it. Factors to consider include the availability of the chosen format and ensuring employees understand how to use it.
With regard to offshore installations or associated structures, employers do not need to provide a copy of the certificate on every installation, although if an employee asks to see a copy of the certificate, he is entitled to to be provided with a copy as soon as possible and in any case within 10 working days of their request.
Since 1st October 2008, the previous requirement for employers to retain a copy of their Employers Liability certificates for a minimum of 40 years was overturned. Since that date there has been no legal requirement for employers to keep copies of out-of-date certificates. However, while it is no longer a legal requirement to keep these records, it is still prudent for an employer to continue to keep records of their Employers Liability insurers for some considerable time after the cover with a particular iinsurer has expired.
A claim can occur on an Employers Liabilty policy many years after an employee's period of employment ( for example, an industrial disease such as Asbestosis may not manifest itself until many years after a person's period of employment has ended). If the employer has not kept adequate records and cannot identify the insurer concerned for the period of the employee's employment, any claim for compensation will be directly against the employer. With conditions such as Asbestosis and the like, any such compensation claim could be extremely expensive and potentially ruin the company. The need to retain accurate details of your Employers Liability insurers (ideally for up to 40 years) is therefore vital to safeguard the company.
These are just a few of the responsibilities imposed upon employers when taking out Employers Liability insurance.
If anyone is unclear or would like clarification on their responsibilities with regard to Employers Liability insurance please do not hesitate to contact me for assistance.
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