Insurance commissioner, Dave Jones, approved an overall rate decrease of 12.31% in loss cost rates for policies renewing 1/1/18 or later. For the 69 construction classifications on page 2, rates are down an average of 6.6% from 1/1/17 loss cost rates.
The insurance commissioner approved an average rate decrease of 7.8% to be effective 7/1/17 for all new and renewing policies after this date. Several insurers have filed lower rates as of 7/1/17, and will continue to take clients’ loss history into consideration when determining final net rates.
First Party Property losses such as stolen construction tools and equipment, should be a straight forward claim. You send in documents to support the value of your claim, and then you expect to be paid by your property insurer. Typically, the claim is paid but sometimes things get derailed. Your property insurer may dispute the value of your claim or disagree with some other issue regarding the facts of the loss or insurance coverage. It becomes an endless circle of move and counter move, similar to playing a chess game, where you are hoping for an immediate victory but knowing you are up against a powerful player (your property insurer).
A safe job is a profitable job—especially when you add up the direct and indirect costs of an accident! For example, a $25,000 sprain/lost time injury might take between $500,000 and $2,500,000 of additional company sales to pay for the cost of the injury.
California auto insurance rates are going up due to the escalating cost of claims. On average, insurers are paying out $1.14 for every $1.00 of premium they collect. Increased traffic on roadways, distracted drivers, escalating medical costs, rising repair costs, and finally, economic damages from severe auto injuries, are the reasons for these increased claim costs.
Insurance Commissioner, Dave Jones, has requested additional rate decreases for new and renewal policies starting January 1, 2017. The schedule in this article shows the requested pure premium rate changes to be effective January 1, 2017. We expect slightly lower rates to be approved in early December 2016.
1. Capital City Real Estate LLC v. Certain Underwriters at Lloyd’s, London – U.S. Court of Appeals for Fourth Circuit, June 10, 2015 788 F.3d 375 (4th Cir. 2015)
Importance of Case: The case addresses a common issue presented by additional insured claims – whether extrinsic evidence can be utilized to determine an insurer’s duty to defend as opposed to simply the allegations contained in the “four corners” of the complaint. The Fourth Circuit decided to allow extrinsic evidence in evaluating an insurer’s duty to defend.
There are hundreds of thousands of active workers’ compensation claims in California. During the fiscal year 2013-2014, the California Fraud Division identified 5,729 suspected fraud cases. Of those, only 248 cases were sent to prosecuting authorities (County District Attorneys). For those convicted at trial or who entered a plea bargain, what were the penalties? Not as harsh as you would think.
Claim reserving is an art form coupled with an educated guess of the most probable outcome for any given claim. Reserves are set by insurance adjusters. For large and more complex claims, a claims manager or vice president will approve the final reserve.
Owners have been prequalifying general contractors and, in turn, general contractors have been prequalifying subcontractors for expertise, performance, safety, and innovative ideas for years. You should do the same with your insurance and surety broker.