Today I would like to discuss Workers Compensation Insurance:
In the State of North Carolina, Workers Compensation Law states that any employer with at least 3 employees is required to carry Workers Compensation Insurance for their employees The rule of 3 would include owners, family members, etc. Any employer with less than 3 employees is not required by North Carolina Law to carry Workers Compensation Insurance, however that does not exempt an employer from being legally responsible in the event of an employee injury. Failure to purchase Workers Compensation Insurance coverage’s if required by North Carolina Workers Compensation Law could result in heavy fines by the North Carolina Industrial Commission.
Sole Proprietors/Partnerships/LLC’s are all handled as follows:
– Owners are automatically EXCLUDED from Workers Compensation Insurance coverage’s and must ELECT coverage to be included if so desired.
* Effective April 2013 – Payroll to be used for Sole Proprietor, Partner or Member of an LLC that is to be included in Workers Compensation Insurance Coverage = $40,800
Corporations are all handled as follows:
– Officers are automatically INCLUDED in Workers Compensation Insurance coverage’s and must REJECT coverage to be excluded if so desired.
* Effective April 2013:
Minimum Payroll used for Each Corporate Officer that is to be included in Workers Compensation Insurance Coverage – $41,600
Maximum Payroll used for Each Corporate Officer that is to be included in Workers Compensation Insurance Coverage – $83,200
Should I purchase Direct Primary coverage or Legal Liability coverage when buying Garagekeepers Liability insurance?
That’s a great question and often one that is frequently misunderstood. The simple answer is, it depends, but let’s look at the how and why for each option.
A Garage Keeper’s Legal Liability policy is intended to cover damage to an auto held in their care, custody, or control while it is on consignment for sale or you are servicing, repairing, parking, or installing equipment into the vehicle. Direct Primary Coverage provides coverage even if the loss is not the insured’s fault and is not legally liable. On the surface this seems relatively easy to understand.
Suppose I have a customer’s locked vehicle in my fenced and locked yard. There is adequate lighting in the yard and the vehicle alarm is armed. The electronics are ripped from the vehicle and there is $25,000 in lost equipment and damage. Although I am clearly not negligent – and not legally liable – the claim is submitted to my insurance carrier.
With Direct Primary Coverage my customer – the owner of the vehicle – gets paid no matter whose fault it was. I have a happy customer again and my insurance paid for everything. That’s why I bought insurance, right? What could be better than this?
If you had purchased Legal Liability Coverage, the owner of the vehicle would have had to submit the claim to his own insurance company. Your insurance company would not pay anything on the claim – after all, it wasn’t your fault, you were not legally responsible for the damage.
Which is better? Like I said, it depends. If you service high-end autos or have repeat customers that represent a significant part of your business, than Direct Primary Coverage may be the best choice. But if you do business with thousands of different people and have no significant relationship with them, then Legal Liability Coverage may better suit you. In rural North and South Carolina, my personal opinion is to go with Direct Primary, I know that wherever I take my own vehicle to be repaired, that’s the coverage I want them to have.
** For thought **
When my car is parked at my home, whatever might happen to it, I understand that I am responsible for. However if I take my vehicle to a shop for service and leave it in their “care, custody and control”, for hours or overnight then I expect them to be responsible for returning the vehicle to me in no worse condition than it was when I left it with them.
AARP Auto and Home Insurance Program
Whether you’re already an AARP member or willing to consider membership in order to take advantage of this great opportunity, talk to Rachel Leviner or Althea Swinnie in our office at 870 Rockingham Road, Rockingham NC, 28379 or call (910) 997-2211, to see if you qualify for the additional benefits and savings associated with this program.
Some of the key features that The Hartford has designed especially for AARP members include:
- A commitment to renew insured members’ policies each year with our Lifetime Renewability benefit
- Outstanding customer service that is tailored to the needs of our policyholders
- Affordable rates that reward AARP members for their driving experience
- Innovative policy features designed to keep our customers’ lives moving uninterrupted, including 12-month rate protection and our unique RecoverCare service
As an AARP member, you can save even more by bundling your homeowners, condo or renters insurance with your car insurance policy.
Authorized to Offer
What It Means to be Authorized to Offer the AARP Auto and Home Insurance Program from The Hartford
Because the AARP Auto and Home Insurance Program is no ordinary insurance plan, it’s not available from just any insurance agent.
To be an independent agent Authorized to Offer the AARP Auto and Home Insurance Program from The Hartford, we have been through a rigorous screening process, including a background and credit check, and comprehensive AARP Auto and Home Insurance Program training from The Hartford. We are well versed in the Program’s many features and benefits, and we are confident we can provide the high quality of service you deserve as an AARP member.
We’ll be glad to provide you with a fast, free, no-obligation quote and answer any questions you may have.
Click this link for more information about the AARP Program through Dawkins & Associates, Insurors, Inc. http://agents.thehartford.com/agencypages/agency/22270694/ap/1276014482228
When accidents happen on construction sites, the result usually involves property damage. Faulty wires cause fires, which burn the walls. Collisions often put dents in expensive equipment, and paint may be inadvertently sprayed onto nearby cars. If such incidents occur, the contractor must look to his or her general liability policy to compensate for damages. Although the CGL policy covers several types of incidents, not every situation is covered.
In order for a situation to be covered, three requirements must be met. First, there must be a legal obligation for the contractor to pay the damages. The contractor’s tort liability is covered by insurance, so most negligent acts are covered. However, if the contractor fails to complete the work he or she agrees to, there is no coverage.
The second requirement is that the damage must happen out of an occurrence, which the policy defines. In a CGL policy, an occurrence is an accident that includes repeated or continuous exposure to the same harmful conditions. In order to qualify for coverage, the damage must be accidental. The insurance company will decide if the incident was accidental.
The third requirement is that an accident must result in damage to the property. Such damage is defined as a physical injury to the property. This may include loss of use of the damaged property and loss of use of any other accompanying property that the incident affects. Since computer data is not tangible property, it is one of the exclusions in this type of coverage.
Unfortunately, if a contractor is legally liable for a damage claim, the policy may not cover it if the claim is categorized as faulty workmanship. If damage results from work performed by the contractor or a hired subcontractor to “the particular part” of property being fixed, the damage may not be covered. For example, assume a contractor is fixing a wiring system for an old light fixture. If the fixture falls and damages the floor during the process, the fixture itself would not be covered. This is because the fixture was the particular part of property that the contractor was working on. However, the contractor was not working on the floor, so the damaged flooring would be covered.
In some cases “that particular part” may be difficult to define. For example, if a contractor accidentally starts a fire and burns a multi-level roof, only a portion of the roof may be covered. The language in the policy is not clear enough for a definite answer to such a situation, so outcomes may vary. However, one provision in the policy is very clear. It states that coverage does not apply to any particular part that must be repaired because of incorrect work performed by the contractor. In the previous scenario, if the light fixture did not work after the contractor repaired it, the policy would not cover a replacement.
Inland marine policies may help for some types of losses that a regular policy does not cover. There are also other types of losses that contractors must pay for upfront. However, it is important to know what to expect before entering the job site, so discuss coverage options with an agent.
When a tree falls on a house, the first thing most homeowners wonder is whether their insurance will cover the damage. Fortunately, they do, and the coverage inclusions are clear. If a tree falls on a home or other insured property structure, a homeowners insurance policy provides coverage for the structure itself and the items inside of it. This type of coverage includes trees that fall due to hail, lightning or wind.
The fallen tree does not have to be owned by the policyholder for a claim to be approved. For example, if a tree owned by a neighbor falls over the property line onto a policyholder’s home, the affected homeowner’s policy will cover the damage. The affected homeowner must simply file a claim with his or her insurance company. Trees, branches and shrubbery have a tendency to become hazardous objects during storms, and insurance companies are aware of this fact. This is why they do not conduct extensive investigations to figure out exactly where the offending tree or shrub came from. Their duty is to assess the damage, figure out the reimbursement cost and issue a check.
In some cases, the insurance company may try to collect money from a neighbor’s insurer. This process is called subrogation, and it is usually initiated when the insurer feels that the offending tree was not kept well. However, this is the insurance company’s job. If the company is successful in proving the tree was poorly maintained, the policyholder affected by the damage may receive a reimbursement for his or her deductible amount.
If a tree falls on a home or insured structure, there is also coverage for the cost to remove the tree. This amount is usually between $500 and $1,000. Reimbursement numbers may vary from one insurance company to another. The amount also varies depending on the type of policy chosen. However, if a tree does not affect a home or structure, there is usually no reimbursement for damage or removal. Some insurance companies may extend special coverage for trees blocking driveways or handicapped ramps.
In addition to the previous coverage inclusions, standard homeowners insurance policies allow protection for tree damage due to theft, explosion, fire, lightning, vandalism, malicious mischief and vehicles owned by others. However, coverage is usually limited to a small percentage of the amount of insurance on the home or other property structures. As a rule, most insurers place a limit of $500 for any shrub, plant or tree. Shrubbery and trees grown for business purposes require special business insurance policies. To learn more about this type of coverage, discuss the options with an agent from Dawkins and Associates today.
Althea Swinnie – Voice – (910) 997-2211 – firstname.lastname@example.org
Rachel Leviner – Voice – (910) 997-2211 – email@example.com