Author name: dshipps

Helpful Health Carrier Links When Dealing With Coronavirus

During this time of uncertainty, our health providers have created web pages to keep you up to date in this ever changing times. Florida Blue https://www.floridablue.com/blog/covid-cases-confirmed-in-florida Aetna: https://www.aetna.com/individuals-families/member-rights-resources/covid19.html UHC https://www.uhc.com/health-and-wellness/health-topics/covid-19 Humana https://www.humana.com/coronavirus Ameritas Group https://my.visme.co/view/ojq8y8q4-covid-employer Ameritas Individual https://my.visme.co/view/ojq8yz91-covid-individual

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Business Interruption Policies and Coronavirus

As the coronavirus (COVID-19) outbreak evolves, businesses face growing uncertainty as to how this pandemic will affect their operations long term. This is especially true when you consider that many organizations—including bars, restaurants, entertainment venues, retailers and manufacturers—have had to close their doors or cease operations as a result of COVID-19. Not only has this severely impacted their ability to serve their customers, but, for some, it has also led to indefinite disruptions—disruptions that could impact their bottom line. As a result of the unprecedented challenges COVID-19 brings, many businesses are turning to insurance, like business interruption insurance, for help. In the event of a loss, business interruption insurance provides coverage for income a business would have earned had it been operating normally. It can also help pay for expenses like employee wages, taxes, rent, loan payments and relocation expenses. However, these policies are complex, and protection for losses stemming from COVID-19 is typically not included. This Coverage Insights highlights characteristics and types of businesses interruption insurance, examining why these policies will likely not cover the outbreak. Designated Perils Under most business interruption insurance policies, coverage is only available if the loss in question stems from a covered peril. In many cases, covered perils include common interruptions like natural disasters, equipment damage and vandalism. This means that, if the insurance policy requires a specific loss (e.g., a fire or earthquake) and the loss in question doesn’t qualify or is not stated explicitly, coverage may not be available. For the vast majority of businesses, COVID-19 will not constitute a designated peril, and business interruption insurance will not respond to losses. Further, business interruption claims may arise from multiple causes, including both covered and uncovered perils. In these instances, the availability of coverage will depend on the policy language and any applicable laws regarding concurrent causes. Once again, coverage for COVID-19-related losses is unlikely. Direct Physical Losses Business interruption insurance is typically triggered by a direct physical loss or damage. Under this interpretation, contagious diseases like COVID-19 would likely not count as a covered loss. This is especially true as it relates to mandatory or voluntary closures stemming from human-to-human transmission of infectious diseases where a business’s physical location is still habitable. However, some argue that COVID-19 can contaminate physical objects like HVAC systems or assembly lines, which in turn would force businesses to cease operations. In these scenarios, business interruption insurance could provide some protection. Still, most policy interpretations will make coverage unavailable. What’s more, most policies exclude coverage for viruses and other health crises altogether. Civil Authority Coverage In some cases, policies may extend business interruption coverage for losses that arise from civil authority orders. This essentially means that, if a business is unable to access its property due to government-mandated closures, coverage may be available. However, in most cases, a direct physical loss to an adjacent or nearby property is required in order for civil authority coverage to kick in. For most insureds, civil authority clauses will not apply for losses stemming from COVID-19. Contingent Business Interruption Insurance Business interruption insurance is a crucial component of risk management programs, but it does not extend to disruptions to a third party. That’s where contingent business interruption insurance (CBI) comes in. Unlike traditional business interruption insurance that compensates the policyholder for a loss resulting from damage to its own property, CBI lets businesses transfer the risk of certain losses to the property of a third party. CBI reimburses policyholders for lost profits and extra expenses resulting from an interruption of business at the premises of a customer, vendor, supplier or other third party. Businesses are increasingly looking to this type of coverage as COVID-19 continues to affect the global economy. This is because, even if a business is not located in an area where COVID-19 has been detected, aspects of their supply chain might be, leading to potential disruptions. However, for the vast majority of cases, CBI will not be available. With CBI, the covered third-party property may be specifically named, or the coverage may simply blanket all customers and suppliers. To secure coverage for COVID-19, insureds will have to review policy language to determine if their suppliers are included in the policy. But even if the third party is explicitly named, CBI includes some of the same caveats as traditional businesses interruption insurance. Specifically, for CBI policies, some form of property damage will need to occur before coverage is triggered. Again, contamination will likely not constitute property damage. Moving Forward As the COVID-19 situation evolves, more organizations are looking to business interruption insurance, hoping it will respond to losses and help them weather the outbreak. However, COVID-19 is uncharted territory, and a number of factors come into play when it comes to insurability. In the vast majority of cases, business interruption policies will not apply to COVID-19 losses. Moving forward, businesses should review their insurance programs to: Ensure the policies they have in place provide sufficient protection. Avoid overlooking unique exposures COVID-19 brings. Determine how COVID-19 could impact their various lines of insurance beyond business interruption coverage. To continue the discussion, contact Pinkerton Insurance Group today.

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Protecting Your Workers From Coronavirus

The coronavirus (COVID-19) outbreak has impacted a number of businesses across a variety of industries, forcing them to rethink their daily operations to ensure the safety of their employees and the general public. This is no different for construction firms, where multiple contractors and tradespeople on a job site may be working in the same space at any one time. In these instances, just one misstep can lead to the quick spread of COVID-19, jeopardizing the well-being of workers. To help slow the spread of COVID-19 and safeguard your staff, consider the strategies highlighted in this Construction Risk Insights. COVID-19 Safety Tips for Construction Firms When it comes to COVID-19, discouraging sick employees from reporting to work and encouraging social distancing are the two of the most effective methods for protecting your workers: Discouraging sick employees from reporting to work—Above all, any employee who is experiencing symptoms of COVID-19 (e.g., fever, cough, shortness of breath, sore throat, runny nose, body aches, chills or fatigue) should stay home. Individuals experiencing such symptoms should also be instructed to consult guidance from the Centers for Disease Control and Prevention (CDC) on seeking medical care. Encouraging social distancing—Social distancing is the practice of deliberately increasing the physical space between people to avoid spreading illness. In terms of COVID-19, social distancing best practices for construction businesses can include: Avoiding gatherings of 10 or more people Keeping at least 6 feet of distance from other people Hosting meetings virtually when possible Limiting the number of people on the jobs site to essential personnel only Encouraging staff to work from home when possible Discouraging people from shaking hands Beyond these recommendations, there are a number of specific job site and office precautions construction firms should consider. Specifically, to help prevent the spread of COVID-19, businesses should: Communicate key CDC guidance to their workers on how to stay safe from COVID-19. Helpful resources include the following webpages: How to Protect Yourself If You Are Sick or Caring for Someone Frequently Asked Questions Post posters and other signage that encourage workers to stay home when they’re sick and educate them on hygiene best practices to help prevent the spread of COVID-19. Sample posters from the CDC can be found here. Instruct employees to practice good hygiene. Employees should clean their hands often, either with an alcohol-based hand sanitizer or soap and water. Hand sanitizers should contain at least 60%-95% alcohol, and employees should wash their hands with soap for at least 20 seconds. It’s also a good idea to strategically place hand sanitizer and hand-washing stations around the job site. Instruct employees to: Avoid congregating, and keep their distance from other workers where possible. Avoid sharing tools and personal protective equipment (PPE). Clean reusable PPE per the original manufacturer’s recommendation before every use. Used PPE must be disposed of properly. Utilize disposable gloves as appropriate, and wash their hands after they’re done with them. Change their clothes before they get home. Dirty clothes should be washed using hot water and laundry sanitizer. Ensure the work environment is cleaned regularly. This can involve sanitizing doorknobs, keyboards, tools, reusable supplies and equipment. Avoid using a common water cooler. For increased safety, provide employees with disposable plastic water bottles or instruct them to bring their own. Avoid scheduling multiple tradespeople at once. This should help limit the amount of individuals on the job site at once. Sanitize portable toilets frequently. Avoid cleaning techniques that could generate bioaerosols. Continued Safety While the strategies highlighted in this document can help you protect your workers from COVID-19, it’s important to follow CDC guidance at all times. For more information, click here.

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Understanding Non-Owned and Hired Automobile Liability Coverage

Does your business have potential automobile loss exposures that you are not aware of? You’ve taken all of the necessary steps to ensure that your own fleet operation is properly covered in the event of an accident. But what about the potential loss that arises from individual employees who operate their own personal vehicles for company business? There are many situations that present a potential for you to be held accountable for the actions of your employees while they are driving their own vehicles: Do administrative employees use their own vehicles to go to the post office or bank on your company’s behalf? Do you occasionally send an employee to pick up a visiting client at the airport? Have you sent employees to pick up lunch, drop off mail or pick up office supplies? Have you ever rented a vehicle while on a business trip? Do you have a sales force to which you provide a car allowance for business use of their personal vehicles? If an employee has an accident under any of these situations, your business can be held accountable and sued for damages. Basic business automobile policies only cover employees while they operate company-owned vehicles to perform company business. Your best protection: non-owned and hired automobile liability coverage. This type of coverage will kick in if there is an accident and your company is found legally liable. Typically, an employee’s personal automobile insurance will provide primary insurance to both the employee and the business if the employee is using their own vehicle on company business. However, there is the chance that charges will exceed the employee’s policy limit and would then be passed on to the company. Without non-owned and hired automobile liability coverage you may be vulnerable to a potentially costly exposure. Non-owned and hired automobile liability insurance covers bodily injury and property damage caused by a vehicle you hire (including rented or borrowed vehicles) or caused by non-owned vehicles (vehicles owned by others, including vehicles owned by your employees). This coverage is typically added to your business automobile policy; however, it can be added to your general liability policy if you do not have a business automobile policy. It protects your company if it is found legally liable as a result of an automobile accident that you or your employee has in a hired or non-owned vehicle while on company business. Hired automobile coverage replaces or augments the liability coverage offered by automobile rental agencies. Non-owned and Hired Automobile Coverage: The Basics Here are the first things you need to know about non-owned and hired automobile coverage: Who needs non-owned and hired automobile coverage? If you or your employees ever drive vehicles not owned by your business for business purposes, then you need non-owned and hired automobile coverage. What is non-owned automobile coverage? Non-owned automobile insurance provides liability protection when an employee occasionally has to drive his or her personally owned vehicle for business purposes. It assumes that the vehicle is not owned, registered or contracted in your name or on your behalf. What is hired automobile coverage? Hired automobile insurance provides liability protection when you or an employee is driving a rented, hired or borrowed vehicle. Next Steps If you do not already have this type of coverage and your employees occasionally use their own vehicles for business purposes—even quick errands—consider adding it to your business insurance package today.  Consult with Pinkerton Insurance Group to review your business automobile and general liability policies to ensure you have adequate coverage and liability limits for non-owned and hired automobiles. Any type of loss exposure, no matter how small, is too big to ignore. Call us today at 941-584-8606 to ensure that your automobile coverage meets your needs.

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New Coronavirus Relief Laws Require Paid Employee Leave

As part of sweeping legislation signed into law by President Trump on March 18, 2020, two laws were enacted that provide workers with paid leave for reasons related to the coronavirus (COVID-19) pandemic. One of the new leave provisions, the “Emergency Family and Medical Leave Expansion Act,” allows 12 weeks of partially compensated FMLA leave to care for a child whose school or child care facility has been closed due to COVID-19. The leave applies only to workers who have been employed by their current employer for 30 days. The other new law providing employee leave, the “Emergency Paid Sick Leave Act,” requires employers to provide 80 hours of paid sick time to employees in specified circumstances, including: A quarantine or isolation order for the employee or someone the employee is caring for, or medical advice to self-quarantine; When the employee has symptoms of COVID-19; or When the employee’s child’s school or child care facility is closed. Employers with 500 employees or more are exempt from the laws, and employers may exclude employees who are health care providers and emergency responders. The legislation also allows for future regulations exempting businesses with fewer than 50 employees from providing leave for child care reasons if the leave would jeopardize the viability of the business. The laws take effect within 15 days of passage; the leave benefits will expire on Dec. 31, 2020. Highlights Coronavirus relief legislation requires employers with fewer than 500 employees to provide 12 weeks of FMLA leave for child care reasons related to COVID-19. The new FMLA leave must be compensated after the first 10 days, at two-thirds of an employee’s wage, up to $200 per day. Employers must also provide 80 hours of paid sick time for specified reasons related to COVID-19. Important Dates March 18, 2020 – President Trump signed coronavirus relief legislation into law. Dec. 31, 2020 – New leave laws sunset. Overview In response to the coronavirus (COVID-19) pandemic, Congress enacted a bill providing various forms of relief, including two separate laws mandating that employers give employees paid leave for specified purposes related to COVID-19. The two leave laws are the “Emergency Family and Medical Leave Expansion Act,” and the “Emergency Paid Sick Leave Act.” The leave mandates take effect no later than 15 days after passage (April 2, 2020) and sunset on Dec. 31, 2020. The Emergency Family and Medical Leave Expansion Act In general, the Emergency Family and Medical Leave Expansion Act amends the federal Family and Medical Leave Act (FMLA) to allow employees to take leave for certain child care purposes related to COVID-19. It requires employers to partially compensate that leave after the first 10 days. Covered Employers The expanded FMLA requirements apply to private employers with fewer than 500 employees, and all government employers. Thus, small employers that are not subject to the FMLA’s regular leave provisions are subject to the new FMLA leave rules that allow employees to take leave for specified child care purposes related to COVID-19. The law allows for future regulations to exempt businesses with fewer than 50 employees if the leave would jeopardize the viability of the business. The law states that employers with fewer than 50 employees will not be subject to civil damages in an employee action brought under the FMLA for violation of the new provisions. Covered Employees All employees who have worked for their current employer for 30 calendar days are eligible for the new FMLA leave; however, employers are permitted to deny leave to employees who are health care providers or emergency responders. Using Leave Eligible employees of covered employers may take up to 12 weeks of FMLA leave if they are unable to work (or telework) because they must care for a son or daughter under 18 years of age. The need for leave must be caused by the closing of the child’s elementary or high school or place of care, or the unavailability of the child’s child care provider, due to a declared COVID-19 public health emergency. “Child care provider” means a provider who receives compensation for providing child care services on a regular basis. Where the need for leave is foreseeable, employees should provide their employers with as much notice of leave as is practicable. Compensation Employers are not required to pay employees for the first 10 days of the new FMLA leave, but employees may substitute any accrued vacation leave, personal leave, or medical or sick leave for this unpaid leave. Thereafter, the employer must compensate FMLA leave taken under the new provision at a rate of at least two-thirds of the employee’s regular rate of pay, based on the number of hours the employee would otherwise normally be scheduled to work, up to a maximum of $200 per day, or $10,000 total.  Special calculation rules apply for employees with variable schedules. Special rules apply to multi-employer collective bargaining agreements. Job Protection While FMLA leave is usually job-protected, meaning employees who take leave must be restored to their position (or an equivalent) when they return to work, the new law provides a limited exception to this requirement. Employers with fewer than 25 employees are not subject to the job restoration requirement, if: The employee took FMLA leave under the new COVID-19 expansion of the law; The employee’s position no longer exists due to economic conditions or changes in operating conditions of the employer that affect employment and are caused by a public health emergency; The employer makes reasonable efforts to restore the employee to an equivalent position; and If these efforts fail, the employer makes reasonable efforts to contact the employee if an equivalent position becomes available. The contact period is for one year, beginning on the earlier of: The date on which the employee’s need for leave ends Twelve weeks after the employee’s leave begins Tax Credit Employers are entitled to a credit against the tax imposed by section 3111(a) or 3221(a) of the IRS Code for each calendar quarter of an amount equal

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One of the best deterrents of the coronavirus is washing your hands.

Coronaviruses and the Workplace

Coronaviruses are fairly common and don’t typically affect humans. When they do, their effects are usually mild, as in the case of the common cold. However, deadlier variations of these coronaviruses have cropped up in recent years. Two examples of these evolved strains are the SARS virus of 2003 and the novel coronavirus, which was first seen in 2019. In both instances, the viruses ravaged the populations they infected, illustrating why employers must stay alert to developing outbreaks. It’s the responsibility of every employer to protect employees from these and other illnesses in the workplace. Taking even small precautions could save an organization countless hours of lost productivity. Identifying Coronavirus Symptoms Common coronaviruses typically cause mild to moderate upper-respiratory tract illnesses, and those affected exhibit cold-like symptoms. The most common symptoms include: Headache Cough Fever Sore throat Runny nose Some cases of coronavirus can be more severe, and individuals experience more serious lower-respiratory tract illnesses like bronchitis and pneumonia. For the elderly, infants and those with weakened immune systems, a coronavirus can be deadly. Diagnosing a Coronavirus More dangerous coronavirus strains elicit similar symptoms to the cold or flu, so identifying the virus can be difficult. If employees are suffering from flu-like symptoms—especially if they recently traveled to a country experiencing a coronavirus outbreak—they should call their doctors immediately. Doctors typically request initial phone calls, rather than visits, to properly prepare for a coronavirus patient. Precautions for the Workplace Employers should protect against coronaviruses much like they protect against the flu: Offer on-site flu shots, stock cleaning wipes and hand sanitizer, and educate employees on prevention methods. According to the Centers for Disease Control and Prevention, individuals should take the following precautions to avoid person-to-person spreading of a coronavirus: Avoid touching your eyes, nose or mouth with unwashed hands. Avoid contact with those who are sick. Wash your hands often with soap and water. Unfortunately, there is no known vaccine for a human-contracted coronavirus, making precaution that much more critical. Avoiding Potential Discrimination As with any workplace policy, employers should be wary of inadvertent discrimination when it comes to a coronavirus prevention policy (e.g., ordering employees home when they seem sick). Just because an employee recently traveled to China and coughed in the elevator doesn’t mean an employer can send them home. Whatever policy a company decides to pursue, it must be equally enforced. Discriminating against employees—or asking illegal health-related questions—can introduce a host of legal concerns. Summary Employee education is one of the best lines of defense for a workplace. General preventive health practices, like washing hands, can safeguard workers even when they’re at home. Remind employees to keep up their hygiene and share their knowledge of coronavirus symptoms so they know what to look out for. Together, you and your employees can stay safe, healthy and productive. Speak with Pinkerton Insurance Group for more information on staying healthy in the workplace.

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The History of Workers’ Compensation Insurance

Background of Workers’ Compensation Insurance During the 19th century, the number of individuals joining the workforce grew exponentially. As a result, the number of workplace accidents grew as well. At that time, the only way that injured workers could obtain compensation for their injuries was to sue the employer. Many legislative proposals emerged early in the 20th century, focusing on compensating injured workers for their medical care and lost wages. By 1949, all states had a system in place to provide compensation for injured employees. Under these systems, the employer was responsible for providing compensation for the cost of medical care and wages lost, and consequently, the employee gave up his or her right to sue the employer for injuries. Currently, Texas is the only state where workers’ compensation is not mandated for all employers. As part of the insurance package, the injured worker’s medical, rehabilitation and lost wages are paid for by the state or insurance carrier. If the injury leaves the employee disabled, the insurance carrier will pay the claim based on the extent of the injuries and based on its permanence. The disability will fall into one the following categories: temporary total, temporary partial, permanent partial or permanent total disability. Workers’ compensation rates and programs are managed by private insurers, state funds or the National Council on Compensation Insurance (NCCI). Pinkerton Insurance Group can provide more information about how your state handles these programs.

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