SALT LAKE CITY, UTAH—The Utah Association of Independent Insurance Agents (UAIIA) named Justin Robinson as Young Agent of the Year at their 94^th Annual Convention on May 16.  The award is a prestigious honor given to one young agent each year.

The Young Agent of the Year must have less than ten years of experience in the insurance industry and must be younger than 40, according to Lianna Ostler, who is part of the UAIIA Marketing Association, the group who makes the decision on the award recipient.

“We are so pleased that Justin won this award; we feel that no one deserves it more than he.  Justin is a past President of the Salt Lake Chapter of Independent Agents and is currently on the UAIIA board.  Justin really is invested within the industry and he cares.  He has gone over and above with his service,” said Ostler.

Robinson, who resides in Lehi, Utah, began his career in insurance right out of college, when he was hired by The Buckner Company.   He specializes in commercial insurance.  He particularly enjoys helping his clients with workers’ compensation, property, general liability, auto, and contractor bonds coverage.

“Justin is known in our office and among his clientele for having a passion for doing the right thing.  There is no grey area with him; he is always the one to set an example in being honest and ethical.  I know I will continue to see great things coming from him.  I am grateful for the opportunity to have this talented and hard-working agent as part of my sales force,” said Terry Buckner, President and CEO of The Buckner Company.

Founded in 1936 in Ogden, Utah, The Buckner Company has been serving the insurance needs of the West with honesty, integrity, and superior service for more than 76 years. Today, The Buckner Company, now headquartered in Salt Lake City, stands out from their competition in their expertise and knowledge of the construction, trucking and transportation, employee benefits, surety bonds, and other industries they service.  Occupying four offices throughout the intermountain West, the agency continues to grow and look for acquisition opportunities.  Visit www.Buckner.com for more information.

###

For Immediate Release: 22 May 2013

Contact: Randah Urbina

Director of Corporate Marketing

6550 S. Millrock Drive, Suite 300

Salt Lake City, UT 84121

Phone: 801.937.6700

E-mail: RUrbina@Buckner.com

Web: www.Buckner.com

Configuring all the details to launch a clinical trial is a cumbersome task for most companies.  When it comes to purchasing an insurance policy for a clinical trial, there are many factors that are important to understand.  As is often the case with insurance policies, the details can be daunting.

• Are we better off with blanket coverage, or a limited policy that requires endorsements?

• Is coverage available in the region/country where the clinical trial will take place?

• Can we afford the policy we want?

Insuring a clinical trial properly is a large piece of the puzzle when it comes to future successes.  Finding the right fit for the trial is crucial.  Which type of coverage does your trial need?

Blanket Coverage vs. Coverage by Endorsement

The breadth of clinical trial coverage depends on whether trials are covered on a scheduled or a blanket basis.

Coverage by Endorsement Requires That All Trials Be Identified. Some insurance carriers provide clinical trial coverage by an endorsement to the products liability-completed operations policy.  If a particular trial is not specified and scheduled on the endorsement, it is not covered.   Businesses sometimes are forced to deal with extra red tape as they apply for each individual trial to be covered.

Blanket Coverage Is More Inclusive. In contrast, clinical trial coverage provided on a “blanket” basis means that all trials in progress at the policy inception date and started during the policy period are automatically covered. Trials are not individually scheduled, so no endorsement to the policy is necessary.  This type of coverage often gives companies more peace of mind—knowing that they’re covered on all trials.

Treatment of New Trials

New trials that begin during the policy period are handled differently depending on the coverage provided.

Coverage by Endorsement Means New Trials Are Subject to Underwriting Review.  Insurance policies that require a schedule of clinical trials do not provide coverage of new trials unless the insurer is notified in advance of the trial and agrees to add the specific trial to the policy.

Thus, additional paperwork and data will be required by the insurance company prior to extending coverage. This means there may be some lead time prior to coverage becoming effective, which often results in a delay with the trial start date. Failure to report the new trial under such policies may leave a company without coverage.  Even with notice, the insurance carrier may decline to add coverage for the new trial. Adding the new trial also may have premium implications for the sponsor, adding to insurance costs.

New Trials are Covered Automatically if Done on a Blanket Basis.  Blanket coverage works differently.  New trials that begin mid-term are automatically covered and there are no reporting requirements or additional premium charges imposed by a new trial.

Changes to Protocols

Changes to protocols that occur during the course of the trial also may impact coverage.

Notification of Protocols Changes May Be Required. Some insurance companies require notification of changes to protocols.  If they don not receive such notifications, trials may not be covered if and when a claim arises.  As a result, it is important that the clinical trial sponsor properly notifies its insurance carrier of any protocol changes.

With Blanket Coverage There Are No Reporting Requirements.  Under blanket coverage, it is understood and expected that trial protocols may change.  Any changes to protocols do not add any additional reporting requirements, nor will they jeopardize coverage or premium.

Auditing Requirements

Increasing the number of participants may impact both coverage and premium if the policy is subject to audit.

Additional Audit Premium May Be Assessed at the End of the Policy Period.  As part of the insurance application process, a clinical trial sponsor must provide an estimate of the number of participants that will take part in each clinical trial to be covered.  Many insurers use the sponsor’s estimate to set a “per participant” charge and to calculate a deposit premium.  This type of policy is termed an “auditable” policy, which means the final premium to be charged will be determined by an audit at the end of the policy period.  An auditable policy has several downsides. First, at the end of the policy period, the sponsor must submit updated data regarding the trials conducted during the period. Collecting and assembling the data can be a time-consuming process, especially when there are multiple clinical trials being conducted at different sites.  Audits also can be burdensome, as the insurer may require the data to be broken down by study, phase, site, and participant population, etc.  Lastly, any increase in the actual number of participants, in comparison with the original estimate, generally means an additional, unexpected, and unbudgeted premium charge.

Non-Auditable Policies Translate into Predictable Insurance Costs.  In contrast, non-auditable policies are not rated based on the number of participants.  Although the number of participants does factors into the premium charged, the initial premium charged is not subject to change.  Since insurance costs are known at the outset, additional, unforeseen charges are avoided.

Several insurance carriers offer blanket coverage in their standard policies, while others will require coverage via endorsement.  When selecting a policy type for clinical trial insurance coverage, it is crucial to know and understand the options. Making the wrong choice may result in unnecessary and charges at the end of the trial.

 By Joshua Creer

The Buckner Company

Life Science Practice Team

801-937-6757

jcreer@buckner.com

I started blogging about workers’ comp because let’s face facts, insurance is complicated and…can be a little boring. I know employers are not as passionate about work comp as I am! I hope that by sending you these weekly articles I have given you valuable and useful information. With handling work comp insurance there is a certain symmetry and finesse that needs to be implemented. Everyone (Employer’s) think that they are fine and functioning properly. Nothing hurts right now so…Why bother? Take for example the smart phone. You were “fine” before the smart phone, you did business as usual. But then, your eyes meet across the room. The screen glinted under the store lights and you thought of all the things you could do with it! You met and fell in love with this new technology and now you will never part with it again.

Imagine how lost you feel when your smart phone is not functioning properly. Your company could use new technology too! I have developed a software that will take your workers’ comp claims management into the future.

Your future could look like this:

• To use as little time and resources as possible.
• Timely reporting of the First Report of injury to me (your agent), your carrier and everyone in your company who needs a copy.
• To know what to do when claims occur. (The software guides you through the claims process from start to close)
• To have better communication with injured employees.
• To have an agent as your advocate who fights for you. (who’s watching out for your interests?)
• To get your injured employees back to work ASAP.
• To have transparent communication with Doctors and Physical therapists involved in the claim.
• To recognize the signs to prevent fraud.
• For your employees to be treated fairly and cost efficiently.

Technology and communication is the only way to keep a company (business) functioning like a well oiled machine. Companies need to make money as well as maintaining a happy and loyal employee base. The only way to achieve this is to efficiently handle your work comp claims by using best practices, that includes a  software that guides you through every step.

When was the last time you had someone review your work comp policy? I know that you may feel loyal to your current agent (who could be your brother, uncle, sister or friend) but it’s always good to get a second opinion with something this important. Contact me for a free analysis and to see what the software can do for your business.

Sincerely,

 Red Hollingsworth PWCA, CRM, CIC 801-631-5202

Professional Workers’ Compensation Specialist / Risk Manager

 By Béat Koszinowski

Certified Insurance Counselor & Community Insurance Risk Management Specialist

The Buckner Company

HOA Property Flood Issues and Claims

Spring is just around the corner and every year many property owners and managers dealing with Home Owners and Condo Associations face damages to their property due to flooding caused by water runoff from all sorts of sources.

Unless you have purchased a flood insurance policy or flood insurance endorsement rider you are not protected under your standard HOA or condo property insurance policy. This is also the case for the individual unit owner’s insurance policy. They all exclude flood and surface water claims.  Flood insurance is generally expensive and has a $ 25,000 deductible.

How do you protect yourself and your investment?

Problem- Irrigation system floods;

• Broken pipes, leaks and breaks that occur during the first few weeks of operation
• Malfunctioning or incorrect setting of the system causing over-watering
• General overwatering of certain areas or watering while the ground is still frozen (this can also cause slip and fall liability claims)
• Runoff due to changes in landscaping etc.

Solution:  Check the entire irrigation system thoroughly and inspect all areas where the sprinkler system operates at the start of the season and on a regular basis.  Do not activate the system without checking it and making sure it operates properly. The average amount of this type of claim is between $ 15,000 and $25,000 and preventing this type of issue is a good investment in your property.

Landscaping, gutter and roof water runoff;

• Settling, sinking, expanding or shifting of the ground or landscaping features
• Ground cover or other landscaping features that are causing water to accumulate near the home and or penetrate the building envelope via the surface or below the ground.
• Water runoff near buildings that is not properly channeled away

Solution: Check the entire HOA grounds for problem areas and or hire a skilled contractor to check your landscaping, building envelope and other important areas.  This helps to ensure your property and investment is protected.

TIP; Board members or unit owner should notify the manager or maintenance crew if they notice areas of concern. Don’t assume they know. It is important to understand that most insurance companies will not pay for damages that cause a claim due to wear and tear, rot, mold, latent defect, rust and corrosion, faulty workmanship, faulty design and inherent vice. Inherent vice means losses caused by a quality in a property that causes it to damage itself or destroy itself.

To contact Béat Koszinowski, pleae call The Buckner Company at 801.937.6700.

This article provides general coverage of its subject area. It is provided free, with the understanding that the author, publisher and/or publication does not intend this article to be viewed as rendering legal advice or service. If legal or professional advice is sought or required, the services of a competent professional should be sought. The publisher shall not be responsible for any damages resulting from any error, inaccuracy or omission contained in this publication.

By Randy Emery

Construction contract documents are more frequently stipulating $2 million single occurrence, $4 million aggregate general liability policy limits verses the more common $1 million single, $2 million aggregate limits held by the vast majority of contractors. While the higher limits provide more coverage than a traditional policy, it’s important to also consider an umbrella or excess liability policy. The general consensus in the insurance industry is a $1 million/$2 million policy with the appropriate endorsements and a supporting excess liability policy can provide equivalent coverage to a $2 million/$4 million policy.

Let’s suppose a project owner or general contractor requests a $2 million/$4 million underlining general liability policy, plus a $5 million excess liability policy—ultimately providing coverage for any single occurrence of up to $7 million, and $9 million in the aggregate. The equivalent in a traditional insurance program would provide even better coverage with a $1 million single occurrence, $2 million general aggregate and an $8 million excess liability policy. Under this structure, there would be $7 million of coverage for a single occurrence and $10 million in the aggregate.

The problem with the $2 million/$4 million limit is few insurance carriers actually have filings to offer such a policy, yet they can offer excess liability policies to go over the top of the traditional general liability policy.

Occasionally, requests also are made for $2 million limits on the employers liability section of workers’ compensation insurance policies. Again, the dilemma is that few carriers have filings to even offer such policy limits. However, the desired $2 million limit can be reached with an excess liability policy over the top of the employer’s liability coverage.

It’s unclear why such non-traditional limits are being requested. Insurance carriers consistently request more restraint on the part of contract authors, as well as ask them to consult insurance industry executives on what actually exists in the marketplace. When the subject is drilled down to the various risk managers and attorneys authoring such policy requirements, they almost universally agree the traditional structure with an appropriate excess liability policy is sufficient.

The problem still exists because boilerplate contract language is not getting changed. In addition to risk managers and attorneys correcting the insurance specifications in their construction documents, it would be beneficial to communicate the technical reasoning behind policy limits to staff members responsible for reviewing and accepting insurance certificates, as well as give them the authority to accept a more traditional insurance structure with the appropriate umbrella limits.

Randy Emery is vice president and surety division manager at The Buckner Company, Salt Lake City, Utah. For more information, call (801) 937-6700 or visit buckner.com.

By Béat Koszinowski, CIC, CIRMS

No insurance resource would be complete without a comprehensive glossary of terms. We’ve compiled a list of terms and their definitions to better help you navigate the sometimes confusing world of insurance.

Advertising Injury-This coverage pays for damages done in the course of oral or written advertisement that disparages libels or slanders a persons or organizations goods, products or services. Coverage for these offences is provided under advertising injury coverage only if they occur during the course of advertising the named insured’s own goods, products or services. Also see Personal Injury.

Actual Cash Value – Cost of replacing damaged or destroyed property with comparable new property, minus depreciation and obsolescence. For example, a 10-year-old sofa will not be replaced at current full value because of a decade of depreciation.

Actuary – A specialist in the mathematics of insurance who calculates rates, reserves, dividends and other statistics. (Americanism: In most other countries the individual is known as “mathematician.”)

Adjuster – A representative of the insurer who seeks to determine the extent of the insurer’s liability for loss when a claim is submitted.

Agent -individual who sells and services insurance policies in either of two classifications:

Independent agent represents at least two insurance companies and (at least in theory) services clients by searching the market for the most advantageous price for the most coverage.

Direct or career agent represents only one company and sells only its policies.

Aggregate Limit or General Aggregate Limit- Usually refers to liability insurance and indicates the amount of coverage that the insured has under the contract for a specific period of time, usually the contract period, no matter how many separate accidents might occur.

Approved or Not Disapproved for Surplus Lines – Indicates the company is approved (or not disapproved) to write excess or surplus lines in this state.

Building Coverage – The scope of protection provided under an insurance policy. In property insurance, coverage lists perils insured against, properties covered, locations covered, individuals insured, and the limits of indemnification. In life insurance, living and death benefits are listed.

Casualty – Liability or loss resulting from an accident.

Catastrophic Insurance-Earth Quake and Flood Insurance- These are commonly excluded under a standard policy and have to be purchased via a separate endorsement or policy.

Casualty Insurance – That type of insurance that is primarily concerned with losses caused by injuries to persons and legal liability imposed upon the insured for such injury or for damage to property of others.  Also see General Liability Insurance.

CIC - Certified Insurance Counselors  - A Prestigious Designation and the Most Practical Continuing Education The Certified Insurance Counselors (CIC) Program has been the insurance industry’s premier, proven source for practical, real-world education since 1969.

CIRMS- Community Insurance and Risk Management Specialist- The CIRMS designation recognizes a demonstrated high level of competency within the risk management profession. The CIRMS designation specifically addresses the needs of community associations risk management and insurance needs.

Claim – A demand made by the insured, or the insured’s beneficiary, for payment of the benefits as provided by the policy.

Coinsurance – For homeowners and other property insurance clients it requires the policyholder to carry insurance equal to a specified percentage of the value of property to receive full payment on a loss. At the time of loss if the value of the property is below the stated coinsurance penalty the insurance company has the right to reduce the claim amount payable  as determined by the penalty clause. In most cases this is not permitted as stipulated in the governing documents, lender insurance requirements and the SB167.

Community Owned Property- Community owned property such as clubhouse furnishings, gym equipment, pool furniture etc.

Coverage Basis- Typically this is the Replacement Cost for the damaged property with like kind materials and work. Also refer to Guaranteed Replacement Cost.

Crime Insurance-This protects the homeowners association from theft or embezzlement of HOA income or reserve funds by a trustee, employee or manager.

Damage to Rented Premises or Fire Damage Limit-The fire damage limit provides coverage for fire damage caused by negligence on the part of the insured to premises rented to the named insured. If a fire occurs because of negligence of the insured and causes damage to property not rented to the insured, coverage would be provided under the occurrence limit.

Deductible – Amount of loss that the insured pays before the insurance kicks in.

D&O Insurance- Directors and Officers Insurance- This is legal protection for defense expenses or certain monetary damages due to board member or trustee negligence or omissions.  Also go to Non-Monetary Damages.

Each Occurrence- See Occurrence

Earned Premium – The amount of the premium that has been paid for in advance that has been “earned” by virtue of the fact that time has passed without claim. A three-year policy that has been paid in advance and is one year old would have only partly earned the premium.

Employers Liability Insurance – Coverage against common law liability of an employer for accidents to employees, as distinguished from liability imposed by a workers’ compensation law. Even if you do not have employees you could be subject to this.

Environmental Impairment or Pollution Cleanup and Removal Coverage -This is an aggregate first party coverage that applies to your expense in extracting pollutants from land or water at your location, if the release of the pollutants is caused by or results from a covered loss.

Exclusions – Items or conditions that are not covered by the general insurance contract.

Exposure – Measure of vulnerability to loss, usually expressed in dollars or units.

Extended Replacement Cost – This option extends replacement cost loss settlement to personal property and to outdoor antennas, carpeting, domestic appliances, cloth awnings, and outdoor equipment, subject to limitations on certain kinds of personal property; includes inflation protection coverage.

Flood Insurance- Flood is considered any water above or below the ground entering a structure and causing damage to contents or a structure including causing mold. This is a common exclusion under most if not all property forms. A  Flood Insurance Policy can provide some level of protection for this. However most flood policies have high deductibles such as $ 25,000.

Fidelity Bond- Go to Crime Insurance

General Liability Insurance -Insurance designed to protect homeowners associations, business owners and operators from a wide variety of liability exposures. Exposures could include liability arising from accidents resulting from the insured’s premises or operations, products sold by the insured, operations completed by the insured, and contractual liability.

Guaranteed Renewable – A policy provision which guarantees the homeowner association the right to renew coverage at every policy anniversary date. The company does not have the right to cancel coverage except for nonpayment of premiums by the policy owner.

Guaranteed Replacement Cost- Guarantees the replacement of the damaged property with like kind of materials and work regardless of any policy limit stated.

Hazard – A circumstance that increases the likelihood or probable severity of a loss. For example, the fence around the pool needs to be replaced due to old age.

Hired Auto-Coverage is provided only for autos owned, leased, hired, rented or borrowed for use in the named insured’s business. Non-Owned Autos-Coverage is provided only for autos not owned, leased, hired, or borrowed by the named insured. Coverage includes autos owned by the insured’s employees or members of their households, but only while used in the named insured’s business or personal affairs.

Inflation Protection – An optional property coverage endorsement offered by some insurers that increases the policy’s limits of insurance during the policy term to keep pace with inflation.

Insurable Interest – Interest in property such that loss or destruction of the property could cause a financial loss.

Insurance Adjuster – A representative of the insurer who seeks to determine the extent of the insurer’s liability for loss when a claim is submitted. Independent insurance adjusters are hired by insurance companies on an “as needed” basis and might work for several insurance companies at the same time. Independent adjusters charge insurance companies both by the hour and by miles traveled. Public adjusters work for the insured in the settlement of claims and receive a percentage of the claim as their fee.

Liability – Broadly, any legally enforceable obligation. The term is most commonly used in a pecuniary sense.

Lloyds Organizations – These organizations are voluntary unincorporated associations of individuals. Each individual assumes a specified portion of the liability under each policy issued. The underwriters operate through a common attorney-in-fact appointed for this purpose by the underwriters. The laws of most states contain some provisions governing the formation and operation of such organizations, but these laws don’t generally provide as strict supervision and control as the laws dealing with incorporated stock and mutual insurance companies. In most cases you only see this insurance in catastrophic types of insurance such as earth quake or flood or if the property is a high risk operation due to losses or exposure.

Loss Control – All methods taken to reduce the frequency and/or severity of losses including exposure avoidance, loss prevention, loss reduction, segregation of exposure units and noninsurance transfer of risk. A combination of risk control techniques with risk financing techniques forms the nucleus of a risk management program. The use of appropriate insurance, avoidance of risk, loss control, risk retention, self insuring, and other techniques that minimize the risks of a business, individual, or organization.

Loss Reserve – The estimated liability, as it would appear in an insurer’s financial statement, for unpaid insurance claims or losses that have occurred as of a given evaluation date. Usually includes losses incurred but not reported (IBNR), losses due but not yet paid, and amounts not yet due. For individual claims, the loss reserve is the estimate of what will ultimately be paid out on that claim.

Losses Incurred (Pure Losses) – Net paid losses during the current year plus the change in loss reserves since the prior year end.

Medical Expenses or Medical Payments Coverage-The insuring agreement states that the insurer will pay all reasonable and necessary medical and funeral expenses incurred by an insured because of bodily injury caused by an accident. The insured is the named insured, the insured’s employees and guests, and any other person occupying a covered auto. These payments are made without regard to fault.

Named Perils – Perils specifically covered on insured property. Not used very often and in most cases it is not permissible to use this due to SB167 and the governing documents.

Non-Monetary Damage Claim-This refers to a Directors and Officers Policy claim and accounts for over 70% of a nonprofit HOA D&O claims. This could be for items such as breach of contract, failure to govern according to the CC&R’s or applicable law, improper HOA elections,  violation of zoning laws, wrongful or incorrect enforcement of rules, discrimination, harassment or personal injury.

Non Compensated Officers Included- This a specific endorsement added to your crime policy or fidelity bond that protects you from theft of funds by a non compensated officer or trustee.

Non Profit WCF- This is Workers Compensation Insurance for non-compensated officers, trustees or community volunteers.

Occurrence – An event that results in an insured loss. In some lines of business, such as liability, an occurrence is distinguished from accident in that the loss doesn’t have to be sudden and fortuitous and can result from continuous or repeated exposure which results in bodily injury or property damage neither expected not intended by the insured.

Ordinance or Law Coverage -In many jurisdictions, once a building or structure has been substantially damaged or destroyed, even if the cause of loss is covered by a property insurance policy, significant additional expenses may be incurred by the insured as a result of local ordinances or laws.  If you the governing documents require 100% replacement cost or if you are subject to SB167 you need to carefully evaluate the potential exposure for expense.

An unendorsed property policy does not protect the insured for those additional costs required by law and for which the insured has no option but to comply with if he/she wishes to remain in operation at that location. Coverage may be obtained for losses that result from the enforcement of laws or ordinances which do not permit restoring property to the same condition as existed prior to damage. The endorsement available is titled: Ordinance or Law Coverage. These types of losses may result from:

Loss of value of an undamaged portion of the existing property that must be destroyed (not directly from a covered cause of loss) from the operation of building or zoning laws.

Costs of demolition of the undamaged portion of the property; AND

Increased expenses to:

Replace the property so as to comply with current building, zoning or land use laws or ordinances.

Repair the undamaged property so that it complies with current building, zoning or land use laws or ordinances.

Personal Injury- Personal Injury means injury other than bodily injury. Coverage is provided for injury resulting from offenses such as false arrest, malicious prosecution, detention or imprisonment, the wrongful entry into, wrongful eviction from and other acts of invasion, or rights of private occupancy of a room. Coverage for libel and slander is also provided in the policy.

Product Liability Insurance- Provides coverage for claims arising after a product is sold.  The coverage is known as Completed Operations Liability Insurance for contractors, a wide variety of businesses including community associations and provides insurance for claims resulting after a construction project is completed.  Manufacturers are sued years after selling a product. Distributors are named as defendants simply because a product passed through their warehouse. An HOA could be held liable for their involvement in commissioning a contractor that caused injury long after a project has been completed.  Contractors have been held liable decades after they have “Completed

Operations “on construction projects.

Property Form-Blanket or Scheduled- The method of insuring HOA property under the insurance policy by either listing each building or getting a blanket amount for the entire project. It is advisable to use a blanket amount.

Reinsurance – In effect, insurance that an insurance company buys for its own protection. The risk of loss is spread so a disproportionately large loss under a single policy doesn’t fall on one company. Reinsurance enables an insurance company to expand its capacity; stabilize its underwriting results; finance its expanding volume; secure catastrophe protection against shock losses; withdraw from a line of business or a geographical area within a specified time period.

Renewal - The automatic re-establishment of in-force status affected by the payment of another premium.

Replacement Cost - The dollar amount needed to replace damaged personal property or dwelling property without deducting for depreciation but limited by the maximum dollar amount shown on the declarations page of the policy.

Reserve – An amount representing actual or potential liabilities kept by an insurer to cover debts to policyholders. A reserve is usually treated as a liability.

Risk Class – Risk class, in insurance underwriting, is a grouping of insured’s with a similar level of risk.

Risk Management – Management of the pure risks to which a company might be subject. It involves analyzing all exposures to the possibility of loss and determining how to handle these exposures through practices such as avoiding the risk, retaining the risk, reducing the risk, or transferring the risk, usually by insurance.

SB167- This bill applies to certain home owners associations in Utah with insurance renewals after 7/1/2011. The bill requires the HOA master insurance policy to provide 100% replacement cost for all buildings and any unit/s including any permanent installed fixtures to the unit or common are by the unit owner/s. This could be wall covering, floor covering, cabinets, countertops, plumbing or electrical fixtures etc.

Special From Coverage- This type of insurance policy intents to cover all risk of damage or loss. The forms intention is to provide the broadest possible coverage, however the exclusion must be considered. No insurance policy offers coverage for everything.

Subrogation – The right of an insurer who has taken over another’s loss also to take over the other person’s right to pursue remedies against a third party.

Third Party Coverage-This a specific endorsement added to your crime policy or fidelity bond that protects you from theft of funds by a third party such as the manager.

Tort – A private wrong, independent of contract and committed against an individual, which gives rise to a legal liability and is adjudicated in a civil court. A tort can be either intentional or unintentional, and liability insurance is mainly purchased to cover unintentional torts.

Total Loss - A loss of sufficient size that it can be said no value is left. The complete destruction of the property. The term also is used to mean a loss requiring the maximum amount a policy will pay.

UCCAI Membership-The Utah Chapter of the Community Association Institute is part of Community Association Institute the nation’s largest trade organization for people living in or dealing with community associations. They provide valuable resources, education and community advocacy services. For more info go to www.uccai.com and become a member or sign up for one of their educational events.

Underwriter – The individual trained in evaluating risks and determining rates and coverage’s for them. This can also refer to an insurer or insurance company.

Underwriting – The process of selecting risks for insurance and classifying them according to their degrees of insurability so that the appropriate rates may be assigned. The process also includes rejection of those risks that do not qualify.

Underwriting Guide – Details the underwriting practices of an insurance company and provides specific guidance as to how underwriters should analyze all of the various types of applicants they might encounter.  Also called an underwriting manual, underwriting guidelines, or manual of underwriting policy.

Umbrella Policy-In most cases this actually an excess policy and provides additional liability limits above the current policy limits of the policy. It could also include employer’s lialbity, commercial auto liability, and D&O insurance.
This article and the attachment provide general coverage of its subject area. It is provided free, with the understanding that the author, publisher and/or publication do not intend this article to be viewed as rendering legal advice or service. This article does not guarantee any insurance coverage or limits. The actual policy will prevail. If legal or professional advice is sought or required, the services of a competent professional should be sought. The publisher shall not be responsible for any damages resulting from any error, inaccuracy or omission contained in this publication.

While they may be one of the last things on your mind at the office, there are potential safety hazards all around you. To prevent injury and promote office safety, incorporate the following precautions into your everyday routine.

Traffic Cautions

• Immediately clean up spills, melting snow and rain water from your shoes when entering the building to avoid tracking in a slippery mess.
• If you notice a spill, alert maintenance staff and place a wet floor sign in the area. Remove the sign as soon as the floor is dry.
• Never run in hallways or aisles.
• Clear clutter such as wastebaskets from hallways and aisles.
• Never run a cord so that it crosses a walkway. Find an alternate way of attaching it.
• Always use handrails as you walk down stairs.
• Use the elevator if you must carry a heavy box to another floor.
• Open doors slowly to avoid hitting someone on the other side.

Workstation Safety

• When you are not using desk and file drawers, close them.
• Do not place file cabinets near doors or in high traffic areas of the office.
• Place heavy loads only on the bottom shelves of file cabinets and open one drawer at a time when retrieving items.
• Be cautious when using sharp items such as letter openers, staplers, box cutters, etc., and store them safely in drawers when not in use.
• Open drawers only with the handle to avoid getting your fingers stuck.
• Avoid paper cuts by handling documents carefully and slowly. Use a rubber thimble if you will be handling large quantities of paper.
• If you need to reach something on a tall shelf, find a stepladder. Do not stand on a chair or desk.
• Avoid eating or drinking near your computer to avoid spilling on it.

Make it a Priority

Your safety is our priority at . If you are unsure about any safety procedure, do not hesitate to ask your supervisor.

Download this article in a PDF format here:

Office Safety Tips

1. Have a Fast Response Time.  How quickly you respond to an injury will have a huge impact on the outcome of your claim.  To achieve the best results, the proper actions and procedures in the post-accident response must be followed!
2. Usually Occurs (so don’t do this!).  What usually happens is to drive the injured employee to the doctor, then send in the first report of injury to the TPA or insurance carrier. This causes its fair share of negative outcomes.
3. Procedure and More Procedure  You need to have a defined role and established procedures for the employee, employee’s supervisor, and the work comp coordinator. I don’t need to tell you that training to follow a set of procedure is so important to a post-accident response. (THINK FIRE DRILL!)
4. Everyone’s Role.  In life we all want to know what our various roles are.  In business it is essential!  To insure uniformity in the application and effectiveness of accident procedures, everyone must follow a written format you have provided to them.  This will result in education for all involved to achieve immediate post-accident response. Better cost containment will be a very pleasant surprise!
5. Before the Accident.  Have all the appropriate forms available. You need more than just the first report of injury. Here are the extra reports needed: :Employee Report of Accident, Supervisor Report of Accident,Witness Report Form, and Transitional Assignment Form and Work Ability Form.
6. Supervisor Responsibility Did you know that the best response for time is for the supervisor to accompany the employee to the medical provide? The supervisor is the person to supply the work ability form to the doctor/medical facility. I think this is the best option for communication between the supervisor and employee. This form is essential for the doctor to list the employee’s work restrictions.
7. Work Ability form and where it should return to.  The employee returns this to the supervisor. The oversee of this form gives the supervisor the terms on whether there are work restrictions, or if the employee can proceed to return to work. If there are job restrictions then you can arrange for a transitional duty job.
8. Severe injury.  No one wants any employee to be severely injured.  If the employee cannot return to work, the ability form should be faxed to the work comp coordinator. They will then review injury restrictions with follow up on how long the injured employee will be unable to work.
9. Transition Duty Job.  If your injured employee is on work restriction you then work closely with the case manager and employee to implement a transitional duty job. This keeps your employee involved in the workplace in some form until he is able to resume his normal job.
10. Keep Communication Open.  If the injured employee cannot return to work with full duty or a transitional duty job this is the time for open communication with the employee, doctor/nurse, case manager, and supervisor. It is always important to help the injured employee to know that the company they work for cares about their well-being.  Then, when applicable, a transition to a modified duty job will go smoothly.

I hope this has been helpful and informative for you.  It is always a goal for me to impart more knowledge and information to help you achieve better results and outcomes.  Part of getting better results is having the proper tools.  There is a new solution available that you are probably not even aware of.  Buckner now submits, tracks and monitors your workers’ compensation claims from our website. This reduces the amount of paperwork and provides your supervisors with reminders to follow up on claims and the well-being of the injured employee.  An additional benefit of using the software is that you can receive a 5% discount form your insurance carrier! Now that I’ve captured your interest give me a call for a free demo.  I’m the only agent where you can actually see what my service looks like before you buy.  You can use the service I provide before you decide I’m the agent for you.

Bob “Red” Hollingsworth PWCA, CRM, CIC 801-631-5202

Professional Workers’ Compensation Manager / Risk Manager

SALT LAKE CITY, UTAH—The Buckner Company is pleased to announce the hiring of Frank Lancaster as their new Vice President and Corporate Controller.  Lancaster joins the insurance firm as a seasoned accounting professional who has spent most of his career in the insurance industry.

“There are many new faces in our offices lately.  This isn’t due to high turnover, but to growth.  As our firm continues to expand, we are able to add more experienced and high caliber people to our ranks.  It’s a very exciting time for our company and we’re thrilled with the opportunity we have to work with Frank.  He comes highly recommended and we know we’ve found an asset in him,” said Terry Buckner, President and CEO of The Buckner Company.

Since January, 2012, The Buckner Company has increased their employee count by ten percent.  Utah’s job market is one of the best in the nation.  According to the U.S. Bureau of Labor Statistics, Utah’s unemployment rate currently sits at 5.8 percent, compared to the United States unemployment rate of 8.2 percent.  Utah has added more than 27,000 new jobs in the past year.

The Buckner Company, headquartered in Salt Lake City, Utah, occupies four offices in two states.  Despite the instability of the current economic state, the firm continues to grow and look for acquisition opportunities throughout the West.  Diversification of the niche markets they cater to has allowed The Buckner Company to continue to successfully expand its operations in recent months.

Founded in 1936 in Ogden, Utah, The Buckner Company has been serving the insurance needs of the West with honesty, integrity, and superior service for more than 75 years. Today, The Buckner Company stands out from their competition in their expertise and knowledge of the construction, agriculture, and commercial businesses they service. In addition to providing expertise in these fields, The Buckner Company also offers specialty niche market services, including personal homeowner and auto insurance, employee benefits, trucking and transportation insurance, and surety bonding.  Visit www.buckner.com for more information or follow their blog at http://blog.buckner.com.

Insurance and exciting are usually not mentioned in the same conversation or document.

In the past, owners of homeowner’s association projects seeking answers about insurance coverage were only met with a lot of confusion and misinformation. The main issue was that insurance coverage was not determined by a broad insurance policy, but in most cases, was in fact, dictated by the governing documents. A standard did not exist for governing documents when it came to common insurance requirements. This created ambiguity, coverage gaps, or duplication of coverage at the expense of owners and the associations. It was at the time of a claim that unit owners faced the real consequences of this flawed process.

Many lenders required unit owners to insure the entire amount of the loan to guarantee sufficient insurance coverage was in place. In most cases the insurance was already provided by the homeowner association’s master policy.  Unfortunately, the governing documents did not clearly support this. This resulted in a lot of wasted time and more importantly, money.

SB167 brings excitement and certainty for HOA unit owners, managers, and boards.  The bill clarifies what the insurance policy has to provide under both unit owner’s individual policy and the HOA’s master policy.  The bill also determines how claims are handled and who is responsible for the deductible.

SB167 took effect on July 1, 2011. Any association subject to the new bill must comply with the insurance section at the time of their insurance policy renewal date. Associations also have the right to opt in sooner if they choose.

The bill mandates that the homeowner’s association maintain property insurance on the physical structures of the project, including the units, for an amount not less than 100% of the full replacement cost of the insured property at the time of purchase and at renewal.  This includes improvements and betterments installed by unit owners to an individual unit or to a limited common area including floor coverings, cabinets, light fixtures, electrical fixtures, heating or plumbing fixtures, paint, wall coverings, windows and any other item that is permanently part of or affixed to a unit or to a common unit. Each unit owner is an insured person under the association property insurance policy.

The association’s master policy provides primary insurance coverage. The unit owner’s individual policy commonly known as an HO6 policy applies to and covers the policy deductible for the HOA’s master policy.  In the event of a loss, when multiple units sustain damage, the association’s master policy deductible is shared by the affected unit owners in a proportionate amount based on the extent of damage sustained to each unit.  This will eliminate arguments as to who is at fault and ensures that the claims process will be fair, consistent and equitable.

It is highly recommended that unit owner purchase an HO6 type policy with building property coverage commonly known as “Coverage A” and “Loss Assessment” equal to the amount of the master policy deductible. They should also discuss a higher limit of “Loss Assessment” with their personal insurance agent to determine the right limit for you. Loss assessment provides valuable protection for the unit owner for certain insurance claims but could also pay for other assessments that the HOA has to pass due to unforeseen events.  The HO6 policy also  protects the unit owner from loss of use of the unit, loss of rents, personal liability, the personal belongings and other specialty items such jewelry, art, money etc.

In the event the damage does not amount to the association’s deductible, the unit owners HO6 policy would be primary coverage.

If the unit the owner fails to pay the share of the deductible amount of the association master policy within 30 days of substantial completion of the repairs to the unit, the association may levy an assessment against the unit owner for that amount and can subsequently lien to enforce payment.

The HOA must give reasonable notice to unit owners in the event of any changes to the master association deductible.  Failure to do so could leave an association responsible for the amount of increase in a deductible amount.

Do not assume your homeowner’s association is subject to SB167 without consulting your attorney or property manager.

Béat Koszinowski, CIC, CIRMS

A Certified Insurance Counselor and Community Insurance & Risk Management Specialist at The Buckner Company in Salt Lake City.  His expertise is to advise homeowners associations, mangers and attorneys of their insurance and risk managements needs. The Buckner Company has been providing specialized insurance and risk management programs for 75 years.