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Guarding Health and Workplace Safety

Workplace safety and health are such critical issues that the Government has a whole department and numerous laws devoted specifically to the subject. And, although it legal terms it makes a difference whether you’re the employer or employee, in practical terms both groups share a responsibility to safeguard their wellbeing in the factory, the office, the farm, the field, of wherever they work.

The main legislation covering these workplace safety issues is the Occupational Safety & Health Act (OSHA). It’s been around for decades – since 1970 in fact – but still forms the backbone of rules that govern a safe working environment and conditions. It’s worth taking the time to get to know it; fortunately, there’s a summary that you’ll find at http://tinyurl.com/OccSafety.

OSHA also stands for the Government’s Occupational Safety & Health Administration, of which most states also have their own divisional offices. In addition, state Attorney General offices and Departments of Business Affairs (or similar names) also have information and responsibilities connected with workplace safety.

Even without the benefit of laws, a number of commonsense guidelines can make a big difference to everyone’s workplace safety. That should start with having a written health and safety code or policy, which is publicly posted and given to every employee.

Let’s review some of the workplace safety guidelines 

Cleanliness And Tidiness: 

Many workplace accidents are caused by falls and trips over misplaced or neglected objects. People just leave stuff lying around, without thinking – until someone falls over it. Make it a policy to return these objects to their “home” even if you weren’t the person who left it out in the first place. Dangerous materials, of course, should always be stored securely. Similarly, poor hygiene in workplace bathrooms and kitchens are a key source of contagious infection. Washing hands and/or using anti-bacterial wipes, and keeping sinks and other work surfaces clean will eliminate much of the risk.

Heating And Ventilation: 

A comfortable temperature and a supply of good, fresh air, not only makes for a pleasant work environment but also contributes significantly to productivity. People work better when they feel right. Obviously, certain types of jobs – such as working in a furnace area or refrigerated plant – operate in extremes of temperature, in which clothing and hydration are key considerations. For the rest of us, temperatures in the 68 to 76 degree range, and humidity of 20 to 60%, are best.

First Aid Skills And Equipment: 

A first aid kit is an essential component of any workplace. So too should be fire extinguishers (regularly checked and serviced) and alarms. A safety-conscious work environment might also have a portable defibrillator for emergency resuscitations, a first aid room, and trained first-aiders, of whom there should be at least one in every workplace. Whether employer or employee, make it your business to know who your first aiders are. If there isn’t one, get one or become one.

Wearing The Right Clothes & Using Equipment Correctly: 

Certain jobs demand the use of special safety equipment – steel-capped shoes, hard hats, protective suiting, ear-muffs and protective eyewear for example. There’s a reason for each one, so make sure you wear the right clothes for you job. Naturally, you should not wear loose clothes when operating machinery. Treat workplace equipment with respect – whether it’s a robot or a stapling machine and you’re less likely to be injured or cause injury to others.

Emergency Plans & Drills: 

Everyone should know what to do in case of emergency. Companies should have an emergency plan – OSHA requires it in some cases – mainly to deal with evacuation, responding to a catastrophe or dealing with specific risks associated with the nature of the business. As an employee, make it your priority to find out about and read these plans. If there isn’t one, request it and be prepared to help put it together. Emergency plans need to be put to the test regularly – there’s no substitute for practice, except the real thing.

One of the best sources for information about disaster planning is the National Safety Council (www.nsc.org) offers members a huge library of resources including a template you can download and follow that covers all the planning essentials.

Stress In The Workplace 

If you suffer frequent headaches, sleep disturbances, difficulty with concentrating, short temper, poor digestion and feel low in spirits, you may be experiencing the symptoms of stress. Naturally, if this happens, you should see a physician. But there are things you and your employer can do to prevent it from happening in the first place. For instance:

• Finding a job that you enjoy that’s in line with your skills and experience. If you find yourself struggling, you need to alert your supervisor and seek either a change or appropriate training.
• Poor time management is a key contributor to a feeling of generally being out of control. If you can’t get formal training at work, consider a college class or even a good training manual, of which there are plenty.
• Make sure you clearly understand what is expected of you. Employers are responsible for clearly defining roles and responsibilities.
• If you feel you are being victimized or bullied, sometimes by your own colleagues – a not uncommon problem these days – take action: speak to your supervisor and/or seek a transfer.
• Be comfortable with your work schedule and work within it. Take the breaks, days owing and vacations you’re entitled to. And if you’re sick, take sick leave – you help others as well as yourself if you have something contagious.
• Outside of the workplace, try to exercise regularly and have a hobby or pastime that takes your mind away from job-related issues. Looking after yourself with the correct diet and right amount of sleep also helps.

 A Safer, Cleaner Environment 

Thankfully, smoking is now banned in most workplaces and in the vicinity of entrances. If you must smoke, please think of those who don’t and stay well clear of them while you indulge your habit.

Another key element in workplace safety is what specialists these days refer to as “ergonomics”. This is about having a physically comfortable working environment. Most commonly it refers to seating and desk arrangement in offices but we can broaden that to embrace the whole of your workspace. You spend probably around 8 hours a day in this location so you need to ensure it meets reasonable standards of comfort and usability.

Whether you’re an employee or an employer, you should also be aware of other potential environmental hazards in today’s workplaces. These include asbestos (mainly in older buildings), which has to be removed by a specialist and lead found in paint, dust, food, water and even in the air.

Allergies seem to be an increasing issue. Many people suffer seasonal allergies – rhinitis or “hay fever” as it’s sometimes called. It used to be that pollen was regarded as the main cause but these days we also recognize dust as a culprit – and that’s inescapable, especially at work. Talk to your specialist physician about non-drowsy antihistamines and long term inoculations.

Of course, if you do take a medication that causes drowsiness, you shouldn’t operate machinery and you should certainly tell your employer. It’s worth noting that pollen filters for air conditioning systems are relatively inexpensive and it might be possible to install one in the workplace.

Other personal issues that might impinge on your ability to work might include latex allergy, fear of confined spaces or other phobia. You need to be upfront about this with your employer and your colleagues, thereby reducing the likelihood of an incident.

Tackling Issues 

As an employee, it’s not the easiest thing in the world to complain to your boss or supervisor about some element of the job you’re unhappy with.

You worry about being seen as a whiner or even about the security of your job. The way to go about this is to seek a meeting, prepare carefully (and in writing) in advance, maintain your calm and an aura of reasonableness during a meeting, supporting your claims with hard facts.

If your request is reasonable and you don’t get what you want, you’re working in the wrong place!

Huff Insurance is Here to Help 

If you’d like to discuss insurance issues connected with this or any other area of activity, we’re only an email or phone call away.   Proper workplace safety protocols can reduce workers compensation insurance claims.  Call us at 410-647-1111

 

Things to know when insuring a condo

Insuring a condo is simple right?  Well, it may not be as simple as you may thing.

The first thing to understand is that condominiums can take on many shapes and sizes.  Below are photos of 4 types of condo buildings.

 

 

 

 

 

 

 

 

 

 

 

 

So the question arises; How do you insure a condo?

When someone buys a condo, they go to their insurance agent to get what they think is a “standard” condo insurance policy.  They’ll Get $25,000 building coverage, $50,000 contents coverage and $300,000 liability coverage and think that they are OK.  But to let you in on a secret.  When insuring a condo, there is no such thing as a standard condominium insurance policy.

The building coverage limit needs can vary in a wide range depending on the condo association’s master condo policy declarations.

Here are some terms that a condo owner needs to understand in order to get the right condo insurance policy for their unit.

4 real property definitions apply to a condo property:

• • Common Elements: Property owned by and/or benefiting ALL members of the association.  These could be playground equipment, clubhouse, property fencing, etc.
  • Limited Common Elements: Property elements beneficial to more than one, but less than all unit owners.  These could include building stairwells, building laundry rooms, etc.
  • Unit Property: Property elements that benefit none but the unit owner.  These could include unit plumbing fixtures, unit cabinetry, unit light fixtures, etc.
  • Unit Improvements and betterments: These are the alterations or changes to the real property defined as unit property that increases the value of that property within an individual unit.  These would include things that the unit owner added or changed inside of the condo unit.  Examples include: New cabinets and countertops, new light fixtures, new hardwood flooring, etc.

What is the condo unit responsible for when insuring a condo?

Condo Insurance responsibility is defined in one of 3 ways:

1. “All in” or All Inclusive”: When the association specifies this type of coverage, the association is responsible for all 4 types of real property.  The unit owner only has to insure their personal property.  Standard condo insurance policies (HO6) usually has $1,000 automatic building coverage which would be sufficient for All In.
2. “Bare Walls”: This is the opposite of all in.  The association is only responsible for insuring the common elements and limited common elements.  The unit owner is responsible for unit property and any unit betterments and improvements.  The standard building coverage on the HO6 would not be enough for the unit owner.
3. “Original Specifications”: This is the middle ground between the two above.  The association is responsible for the common elements, limited common elements and “original” unit property (what the builder put in at time of construction).  The unit owner is responsible for unit betterments and improvements (upgrades to counters, cabinets, fixtures, etc.) or any additions to the unit (enclosed porch).  Again, the automatic HO6 coverage will not likely be enough for this type.  It is also important to know what the original specifications are for the condo unit.  This can be tricky if the condo has been sold one or more times over the years.  But this information should be available from the condo association or property managers.

Items to think about for condo insurance

• • The standard HO6 condo insurance is a named peril insurance policy.  This means that only the perils (causes of loss) listed in the policy will be covered should there be a loss on the condo.
  • There is a broadening endorsement available when insuring a condo on an HO6 insurance policy.  This endorsement will change the policy from a named peril policy, to an open peril policy.  This means that all perils are covered UNLESS they are specifically excluded on the policy.  Huff Insurance recommends this broadening endorsement for all of our HO6 insurance policies.
  • Is the building coverage on the condo insurance (coverage A)  enough?  We find the answer is no when we review most competitor’s policies.  Most have $10K, $25K or $50K in coverage a because that is what considered industry standard.   With walls in or original specifications as defined above, these building  limits can be exhausted quickly.
  • If the bylaws or declarations do not specify the coverage responsibility above, state laws dictate the responsibilities.

Things the insurance agent needs know to properly insure a condo:

1. What is the coverage responsibility per the association bylaws or declarations?
2. What is the replacement cost for each structural item that the unit owner is responsible for? – If the responsibility is original specifications, make sure the unit owner has a copy of the original specifications so they can identify any betterments and improvements that they need to insure.  This gets tougher as the condo get sold multiple times.
3. How much personal property does the unit owner going to have?
4. What is the loss assessment limits set in the master policy or by laws?

Things the condo unit owner needs to understand, besides previous agent items:

• • Regardless of what you may hear, there is no “standard” condo insurance policy (HO6).   Cookie cutter policies with pre set limits should not exist.
  • Some lenders may not require an HO6 as a condition of the loan.  Especially if the master policy is an “All In” form.  But that does not mean that the unit owner does not “Need” an HO6.  There are other very important insurance coverages – like liability insurance , personal property insurance, loss of use insurance, etc.
  • If the unit owner is renting out the condo, they still may be able to get an HO6 with a rented to others endorsement.  Which is different than other homeowners products where they would need to get a dwelling fire insurance policy.
  • Short term rentals may be ineligible for certain companies.  For example, weekly vacation rentals, VRBO, or Airbnb.  So if the use changes from owner occupied or long term rental to short term rental, the unit owner needs to talk to their insurance agent.

Insuring a condo is not as easy as some people think.  So you need to have an insurance professional on your side to make sure that you are properly covered.  Unless there is a claim, most unit owners do not know that they are improperly covered.  Finding out after a claim is not how someone wants to find out that they are vastly under insured.

Call Huff Insurance at 410-647-1111 to talk about your condo insurance needs.

COVID-19 vaccination scams are on the rise

As coronavirus vaccines are being rolled out, COVID-19 vaccination scams are unfortunately emerging alongside them.

These scams are just the latest in a series of fraudulent schemes circulating right now. Check our our other blog titled:

Don’t fall victim to one of today’s scams

One of the most common Covid-19 vaccine scams is shown in the picture here.  Someone will send a text that states that you are now eligible to get the vaccine.  Or they will send you an email from what looks like a legitimate government email address.  They will even provide a convenient link for you to make your appointment.

This covid-19 vaccine scam can go a couple of ways:

• They will ask for your personal information to set the appointment, then proceed to steal your identity or sell your information.
• They will ask for a payment to secure your appointment.
• They tell you that you can purchase your vaccine to get quicker access.
• They will ask you for your insurance or Medicare information, then proceed to commit Medicare fraud.
• They will ask for your personal information, insurance information, and a payment of some form.

Scammers often go to great lengths, even creating fake websites that look almost identical to legitimate appointment sites.

Former Maryland Governor Larry Hogan even held a press conference when in office to talk about these scams.

He pointed out several things to keep in mind when setting up your vaccine appointment

• COVID-19 vaccines are free.  You cannot buy a vaccine at this point in time.
• You will not have to give your social security number to get the vaccine.
• No insurance information or verification is needed to get the vaccine.

Unfortunately, scams like these often target vulnerable seniors, preying on their fears. Scammers create a sense of urgency and then offer a quick, easy solution to ease those fears, ultimately stealing their money or identity.

If you know someone trying to get the COVID-19 vaccine, make sure to discuss these scams with them. You don’t want a family member or friend falling victim to a vaccination scam.

Scammers are always finding new ways to separate you from your hard-earned money. Take steps to protect yourself and your loved ones.

If you have any questions about your insurance, call Huff Insurance at 410-647-1111. We’re here to help!

Why is shopping your insurance every year is not always in your best interest?

Insurance rates, along with everything else in my life, are increasing every year.  So, it’s only natural to think about shopping your insurance rates.

A good rule of thumb is to shop your insurance at a 3- or 5-year time.  But not every year.

Why?

Well there are renewal discounts that you lose out on by shopping every year.  Those discounts are generally not seen till the 3^rd or 5^th renewal.

When you are shopping for the new carrier, you’ll be rated based on the length of time that you were with your previous carrier.   So being with your previous carrier for 5 years or longer will allow you to get a better rate from the carriers you are shopping with then if you had only been with them a year or less.

In addition, there maybe something that you qualify for such as accident forgiveness or diminished deductible.  These are not available when you have a new policy but they are earned the longer the policy is in effect.

For commercial accounts, a lot of the pricing is determined by the underwriter.  Therefore, when they are reviewing an account and that account has been submitted to them for numerous years but never written with them, they tend not to give their best rate or any rate on the account.

Also, by shopping your insurance annually, the carrier is afraid that if they write the account they will only keep it 1 year.  So they would not be able to make a profit on the account in that time.    There is a cost to the carrier to pull the consumer reports, underwrite the policy, prepare proposals and to mail and issue the policies.  They do not want to spend the money to do that work knowing that there is a good probability they will only keep the account for a year.

How do you know if you have a fair insurance rate?

By working with an independent insurance agent like Huff Insurance.   W work with several different carriers.  So this let’s us get a handle on the marketplace.

We can tell if a rate is out of line.  Or if the carrier is on the front end or the back end of  rate increases. We will share what we are seeing in the marketplace.

Sometimes insurance carriers have filed for rate changes, but they are not in effect yet.  So we might know that shopping your insurance may save you 5% now.  But if they have filed for a 25% rate increase, your renewal will be much more than where you are now.

You need to have a relationship with an agent that you trust.   An agent that you feel is looking out for you best interest.   No two policies are identical. So, moving from company to company you may lose a little and gain a little.

Remember the true cost of the insurance is not just the premium you pay but also the cost of deductibles and uncovered losses.  Shopping your insurance every year may reduce the price. But you may have increased the cost of insurance.  So keep an eye on your coverage and deductibles.

If you are looking for this type of relationship with your agent.  Then give us a call.  We will be happy to discuss the insurance program for your business or personal insurance needs.

What is meant by “Total Cost Of Insurance?”

When most people think of insurance cost, they think of just the premiums being paid.  Very rarely does anyone truly think about the real total cost of insurance.

I have never heard- “That premium seems fair; the insurance company is getting adequate premium to cover its exposure and I’m getting the protection I need.”

But I have heard, more times than I can count, “I can’t believe I have to pay all this money.  The insurance company is killing me.  Can’t we get this premium down?”

Everywhere you look, insurance carriers are offering low, low rates.  This leads the consumer to believe that insurance is all the same, the only difference is the cost I pay.

However, the premium (the price) is only part and sometimes the smallest part of your “Total Cost of Risk”

The true cost of risk is 6 items:

1. Deductibles or Self-Insured Retention
2. The cost of uninsured or self-insured losses (intentional or unintentional)
3. Legal Costs
4. Loss control and safety courses
5. Claims management cost
6. Opportunity cost

Let’s talk about the deductible

Premium savings can be accomplished by increasing the deductible.  However, you need to compare the premium savings to the total cost of insurance.

Let me illustrate       

Decuctible	$1,000	$5,000
Premium	$20,000	$18,000
Property Loss	$65,000	$65,000
Amount Paid By Carrier	$64,000	$60,000
Total Cost Of Insurance
(Premium +Deductible)	$21,000	$23,000

This examply is for a single claim.  Just imagine if there are multiple claims that happen during the year?

Premium savings can be eaten away by the cost of deductibles.

The cost of uninsured or self-insured losses

Now let us say in a way to reduce the premium you decide to not have coverage for a particular cause of loss.   Depending on the frequency, how often the loss occurs, or the severity, how expensive is the loss, this could be a huge out of-pocket expense related to the self-insurance cost of risk.

Internal Claims Management costs are mostly associated with claims that are under the deductible or a re not covered.  These losses and claims must be managed by someone, this someone may be an internal employee or a third party.

Legal Costs flow out of claims management 

Defending uninsured or claims under your deductible can be expensive.   The cost of defense counsel at $400-800 an hour will devour any premium savings that you enjoyed.

Loss control and safety control

To avoid or reduce loss, you may invest in an alarm system or safety equipment.   Some of these systems maybe required by regulation.  There are some that are needed due the inherent risk of the operation.  These loss and safety controls are considered in the total cost of risk

Opportunity Costs

Opportunity costs are subjective in the total cost of risk.  In order to manage a non-traditional insurance program requires resources to be used from somewhere else.  Payroll and time costs are factored in the total cost of risk

Ask yourself again, is the Price too high? Or is the the Total Cost Of Insurance too high?

You can always find a lower price, but at what cost.   Understanding the total cost of risk is important.

You should contact us at Huff Insurance to discuss your coverage. 

We will work with you to make sure that you fully understand the coverage that you have in place.   We will discuss the price is what it is and what you may give up to find a lower price.  After discussing the total cost of insurance, we will find a plan that works for you.

Negligent Security Lawsuits are a relatively new legal trend. 

We are seeing more lawsuits claiming negligent security practices by business owners.

Property owners, and businesses that are tenants are being sued because someone was injured on their premises.   I’m not talking about slipping and failing incidents.

I am talking about you as the property owner or the tenant being sued because you were negligent with the lack of security you provided on the property.

Here is the scary truth.

Your business could be closed and someone pulls into your parking lot after hours and is assaulted.  As the property owner or business owner, you may be sued for negligent security.  The attorney will bring up all of the other times 911 was called to your location.  Then they will site the lighting, the fact that the parking lot was not closed, etc. in the lawsuit and you need to defend.

The largest negligent security claim to date is Barrack vs Report Investment Corporation.  In this case, the plaintiff parked next door in a parking lot known to be used by customers and the verdict is $102 million.

Why are we seeing negligent security cases?

1. Courts admit all types of incidents to establish foreseeability
2. Dramatic increase in crime across the nation
3. Increase in the victims’ right movement
4. Courts allowing juries to consider the impact prevention has on the criminal’s decision to commit crime at that location
5. Highly publicized cases involving multimillion-dollar awards
6. Catastrophic physical and long-term psychological injuries
7. Increased sophistication of trial lawyers

What types of businesses are seeing negligent security lawsuits?

1. Multi-residential unit residential properties
2. Hotels and Motels
3. Retail Establishments
4. Restaurants, Bars and Casinos
5. Condominium and Homeowners associations
6. Single-family homes
7. Parking lots
8. Construction Projects

What are some of the legal standards to impose liability against owners and businesses?

• Liability is determined on whether the crime was foreseeable
• Key test is the “Existence of Prior Similar Incidents”
• The idea of “similar” is becoming obsolete.  Courts are looking at any crime under the theory that a prior trespass or vandalism is admissible because such crimes can escalate into a deadly assault, murder or rape

What can you do to minimize the risk and exposure of a negligent security lawsuit?

Source: Source: Rajan, Anandhi, Haider, Dania, and Hearn, Anthony S., GUNS, SHOOTOUTS, AND LIABILITY, What’s a Shopkeeper to Do Now? 57 No. 2 DRI For Def. 54 (2015).

• Become familiar with the premises liability laws in your state
• Implement corporate policies and procedures governing security
• Maintain Policies and practices that maximize detection, deterrence, and prosecution from criminal acts at your location
• Work together with local business owners, competitor, and local law enforcement to develop and sharpen own safety practices for customers
• Ensure onsite personnel is trained to identify suspicious behavior

What type of Security Measures should I implement to reduce Negligent Security Lawsuits?

1. Installation and Maintenance of CCTV
   1. Never install false cameras this gives people a false sense of security
   2. Fake cameras will hurt you more in a lawsuit then to not have cameras at all
2. Hire unarmed security personnel or a third-party security vendor
   1. Make sure that you get proof of their license and insurance
   2. Use indemnity and additional inured clauses for risk transfer
3. Implement stricter standards with employees to discourage violent behavior
4. Ensure parking facilities are illuminated and patrolled
5. Maintain adequate and function lighting fixtures
6. Maintain landscaping and foliage to prevent areas for criminals to hide out of sight

Complete a Security Assessment Checklist- with a team of employees

Your Security Assessment Checklist should include the following:

1. Security Vulnerability Assessment
   1. Team
   2. Threat Assessment
   3. Threat Vulnerability analysis
   4. Security countermeasures
   5. Assess risk reduction
   6. Document findings and track implementation
2. Access control Procedures
   1. Access badges
   2. Post Orders- details as to implementation
   3. Record Keeping- retention, records of crimes discovered, frequency of patrol
3. Security Plan
   1. Procedures for employees, visitor, and vendor safety
   2. Include threat assessment and risk
   3. Incident response procedures- emergency contact info, resources to execute to response, procedures, and checklist for a response.
4. Equipment
   1. Policies on weapons and equipment
   2. Training and license
   3. Exterior Perimeter- fence, walls, roofs, key control
   4. Environmental Design Crime Control- lighting should be lumen efficient, lighting at doors, vehicular entrances, pedestrian walkways, parking areas
   5. Landscaping reduced around perimeter fences to allow surveillance of the property any areas of concealment should be lighted

What is the Key information that should be part of the security assessment?

1. Crime Grids of the property address
2. Crime grids one-mile radius
3. Prior reports for similar crimes on property
4. Assess coverage for surveillance and retention
5. Review security and safety protocols
6. Establish liaison with policy agency
7. Photograph and videotape security device placement (lighting, cameras, signage)

These measures may not prevent you from being sued,.  But if you show that you are doing to take security seriously, it is going to put you in the best light in front of a judge or  jury if there is a lawsuit.

Contact Huff Insurance today to review your business liability insurance plan.

 

*This blog is for informational purposes only.  It does not offer legal advice.  Please note that insurance coverage varies by state and by company.  Please contact your specific insurance agent or carrier to discuss your specific coverage. Negligence laws also vary by state and jurisdiction.  

Can the small business surety bond guarantee program help your business?

Huff Insurance is proud to announce that we have bonding companies that have agreements with the Small business administration (SBA) to allow small contractors to qualify for surety bonds on projects for a total cost of up to $6.5 million.  The program is referred to as the small business surety bond guarantee program.

The SBA program is funding for minority owned business and making sure that credit is available for contractors that would otherwise not qualify for bonds in standard surety markets.

This small business surety program is a great alternative to non -standard contract programs that can include collateral or fund control.

This is a great way for contractors to be able to provide bid bonds and performance bonds.

In 1935 congress passed the Miller Act that requires to obtain performance and payment bonds on qualified federal public work projects that exceed $100,000.

The SBA surety program helps to encourage bonding companies to extend bonds to businesses that would not otherwise qualify, and it reduces the risk to the Surety.  The SBG program is available for contracts up to $6.5 million in size.

For newer contractors with little or no bonded project experience, the SBA Quick program allows contractors with challenging credit to qualify for jobs up to $400,000 in value.   For larger bonds, most surety companies will require a CPA reviewed or audited financial statement and certain standards for working capital.  The Small Business Administration program helps to reduce the underwriting standards allowing contractors to bid projects while providing the surety companies with financial background.

Do you qualify for the surety bond guarantee program?

It was used to help small contractors complete for more government contracts.   It is only available if you are not able to obtain a bond without the SBA program.

The SBA will review the following information:

• Partial Subcontract- the contractor must be fully responsible for the oversight and management of the subcontractors and needs to perform at least 15% of the work in house.
• Debarment- all owners with 20% ownership interest in the contracting company must prove that they are not currently debarred, suspended, proposed for debarment or voluntarily excluded from transactions with any Federal agency. Debarment is the state of being excluded from enjoying certain possessions, rights, privileges or practices and the act of prevention by legal means.
• Size- general contractors must have $39.5 million or less in revenue and trade contractors must have $16.5 million or less in revenue.
• Moral Character- must prove that they are of strong moral character. They will examine criminal history of bond claims.
• Capacity- contractor must demonstrate they are able to successfully complete the project that the bond is being requested for.

To qualify for the bonds on contracts up to $400,000

• No open bankruptcies
• No criminal convictions or pending charges
• No past due child support
• No maintenance clauses greater than 2 years
• No liquidated damages clause greater than $5000 per day
• Applicants must preform 20% of the work
• Work can not be more than 50% completed at the time of the application
• No asbestos, remediation, pool contractors, demolition or software development
• Bid spread can not be greater than 20%

Bond premiums are generally 2.5% for the first $100,000 and .6% SBA Fee.

Huff Insurance is happy to be an agent that is authorized to offer this bonding program.  Please give us a call today to help with your bonding needs.

Today’s scams are very sophisticated

Today’s scams are very different than those of the past.  Over the past few weeks, we have seen first hand what todays fraudsters are trying to do.

Here are some of the scams we have seen first hand, or have heard about recently.

MVA or MDDOT real ID phishing Scam

Maryland DOT and MVA have recently released warning of email and text scams.  These fraudsters send a text that looks like it is from the MD DOT or MD MVA.  The text mentions that you need to update information to validate your real ID and provides a link.  DO NOT click the link.  It may put damaging spyware onto your device and any information you provide will be feeding todays scammers.

You’ve been to a bad site and we have a secret video of you

In this scam, the fraudster send you an email or text to try to extort money from you.  They state that they know you’ve been to a bad site.  They then go on to say they’ve downloaded spyware onto your device and have videos of you in compromising positions.  If you do not wire them a few hundred bucks in a few hours, they claim that they will release the video to all of your contacts.

Credit card verification phone calls

In this one, the criminals call you from what looks like the phone number on the back of your credit card.  They then want you to verify your information and provide your verbal PIN.  If they are questioned, the ask you to compare the caller ID to the number on the back of your card.  Of course they will match.  for a few dollars, anyone can get an app for their cell phone that can spoof a caller ID for almost any phone number.  I can actually call you from what appears to be your own phone number.  DO NOT give them any information or even entertain their calls.

Today’s scams are not much different than yesterday’s scams.  They just are using better technology.

Financial Institution Emails

I get hundreds of emails every month from various financial institutions that I deal with personally and for our business.  Undoubtedly, every one of them provides an easy link to click to log in and verify information, retrieve a document,  or view a secure message.  A a lot of these are in fact FAKE.  They will build a website that looks just like the real one and when you enter your login information, they have it.  I never log into a financial institution website via any email link.  Even it it is real, I will bypass the link and go directly to the website and retrieve the information they are providing.

IRS Scams

Tis the season for todays annual IRS scams.  Remember, the IRS will not ask you to verify any information over the phone. If you get a call asking you to verify any tax information or social security numbers, just hang up.  Sometimes, they say that are with the ORS collections and have a warrant for your arrest.  And that they will be at your door within the our to arrest you if you do not comply.  Whatever scare tactics they use, do not cave in.  Hang up and move on and the fraudster will move on to their next mark.

Unemployment Fraud

This is on of today’s scams that we have seen first hand in the past week.  I received a separation of employment request form from Maryland Unemployment.  I reviewed the form and was shocked to see that someone claiming to be Nancy was attempting to file for and collect unemployment benefits.  My first thought was that this must be the same genius that tried to file unemployment as Larry Hogan last summer.  I immediately responded to the request indicating that it was fraud and Nancy, who is the owner of our business, did not file for unemployment.

If you are a business owner, make sure you are paying attention to who is filing for benefits.  Some of your employees may be unknowingly falling victim to this scam.

These are just a few of today’s scams that are going around.  There are probably hundreds more that are similar to the one I have talked about here.  And all of them have one thing in common.

They want to separate you from your hard earned money!

Do your part to make sure they do not succeed.  be diligent about who you give your information to.  Be diligent about what websites you visit and what links you click in email and text messages.

As hard as we try, sometimes the criminals will win.  In these cases there are protections you can afford yourself.  You can sign up for services that will monitor your credit reports.  they will also monitor the “dark web” for activities associated with you and your social security number.  I have this as part of my homeowners insurance plan with Huff Insurance.

You can also add identity theft insurance coverage to cover the expenses and legal fees.  Identity theft can be a costly venture.  Legal fees and the cost of credit repair and add up fast.  Identity theft insurance may be able to be added to either your auto insurance or home insurance.  Check with your insurance agent to see the availability.

I’ll finish up with this:

DO NOT FALL FOR TODAY’S SCAMS!

 

One of the most undersold commercial property coverages: Leasehold Interest

Have you ever heard of Leasehold Interest Coverage?   Most likely not.  In fact, many insurance agents do not know about this coverage either.

There are a lot commercial properties becoming available after COVID 19.  Since employees of  businesses are able to work remotely, many commercial properties are becoming unoccupied or vacant.  Because of this, many landlords are willing to accept lease terms that are very favorable to their tenants.

Let’s say you are able to negotiate a favorable lease.   A lease where the rate is substantially less than the normal comparable rates available in the local commercial real estate market.  Regardless the reason that you were able to negotiate these terms, you may have a lease rate that can not be replicated in the local real estate market.

Losing the favorable lease can result in an unplanned increase in operational expenses for may years following the actual damage and the business’ return to operation.

Assume market prices in the area are $15 a square foot and your rate is $10 a square foot.  You have a 5 year lease.  But the end of year 1, there was a fire that severely damages the building, resulting in your lease being cancelled.   Your lease was for 20,000 square feet.  Your lease now jumps from $20,000 to $30,000.  The monthly rent difference translates into an additional $120,000 in operating costs annually due solely to increased lease payments.   Even if you only had 2,000 square feet that is still an annual expense of $12,000.

Remember those numbers are annual, so if you still had 4 years on your lease now you are talking $500,000 or $50,000 respectfully.

So, what does leasehold interest coverage do?

Leasehold interest coverage protects against the financial consequences of an indirect loss arising out of a direct loss.

Three conditions must apply to leasehold interest protection

1. There must be direct property damage
2. The damage must result from a covered cause of loss
3. The loss leads directly to the cancellation of the favorable lease

Four exposures can be covered by leasehold interest coverage form

1. Tenants lease interest
2. Bonus payments
3. Tenants improvements and betterments
4. Prepaid rent

Tenants lease interest– is the difference between the rent/lease the tenant pays and the market value applicable to the premises.   It is not the amount of coverage purchased, the net TLI is a function of the time value of money

Bonus Payment– A bonus payment is nonrefundable money paid by the tenant to acquire the reduced lease.    For example, the owner, is aware that they are charging lower rent, but they are willing to do so if an additional fee (not the security deposit) is paid up front.

Tenants Improvements and Betterments are additions or upgrades made by the tenant to the building.   Once these are made part of the building, they can not be removed and those become the property of the building owner.  The coverage protects the tenant from its loss of use interest in the property.   If the tenant’s betterments and improvements are separate and specifically insured then they would not be part of this coverage.

Prepaid Rent, rent paid by the tenant in advance, that is not returned, even if the lease is cancelled.

When you have leasehold interest coverage it should be reviewed at least every 2 years, because the market value of property fluctuates over time.    So, therefore the lease may be even better 2 years later, or not as good.   Having an annual conversation with your agent to go over this coverage is recommended.    That is why we ask for annual reviews with our customers to discuss their coverage and what has changed.

Call Huff Insurance Today

Call us at 410-647-1111 to discuss your commercial insurance needs.  We will work with you to come up with the best insurance plan to protect your business.

Huff Insurance is a Trusted choice independent insurance agency.  As an independent insurance broker, we can work with several companies to find the best insurance plan for your business.

**Insurance coverage varies by state and by company.  Please verify your actual insurance coverage availability with your insurance agent and/or insurance company.

What is OEM insurance coverage?

Original equipment manufacturer insurance is commonly abbreviated as OEM insurance.  This endorsement to your auto insurance allows you to have new manufacture parts used to repair your vehicle for a covered claim.

Your vehicle is involved in an accident, are you going to want original manufacturer parts to put on the vehicle?  Or are you OK with using aftermarket parts?

We know most of our clients are OK with the aftermarket parts.  But some are very brand aware and only want original manufacturer parts for their cars.

For example, owners of a BMW, Mercedes and Lexus usually want original parts put back on the vehicle.

The same with Dodge, Jeep and Chrysler owners.  They are proud of their MOPAR branded parts as well.

If you want to be sure that the insurance carrier replaces the parts with the original parts and not aftermarket parts, then there is an OEM insurance endorsement you need to purchase on your auto policy.

The Original Parts Replacement commonly referred in the industry as OEM (original equipment manufacturer) is an endorsement that allows you to have original equipment replaced if there is a covered claim.

Not all vehicles qualify for OEM insurance coverage. Most carriers require the following

1. You carry both comprehensive and collision coverage on the vehicle
2. The coverage is available for an auto, pickup or van. The OEM insurance coverage is not typically available for antique/classic autos, restored autos, motorhomes or trailers
3. Vehicle must be 10 years or newer. Vehicle age is measured by the current calendar year minus the vehicle model year.  OEM insurance coverage is usually not available after the 10^th year. OEM coverage is usually automatically removed at the renewal of the policy at this point.

The auto insurance carrier does not want to offer OEM insurance on vehicles older than 10 years.  After 10 years,  original parts may no longer available for the vehicles.  So, the only way that they could repair the vehicle would be to use aftermarket parts or used parts.

Just because the insurance company is using used parts or parts that were manufactured by someone other than the original manufacturer, does not mean that they are not of equal quality.

If it is important to you that the body shop use original parts on the repair, then the only way to ensure that happens is to purchase this additional OEM insurance coverage on your vehicle.

Otherwise, the insurance company will generally use parts that are equal to the parts that were damaged, to make you whole again.   If they can obtain similar parts that are manufactured by someone other than the original manufacturer that are less expensive, they have the right to use them unless you have this OEM endorsement on your policy.

Contact Huff Insurance Today!

Call Huff Insurance at 410-647-1111 to see if your vehicle would qualify for this coverage.   We can advise you of cost to add this Original Equipment Endorsement to your policy.