From Newsletter

Temporary/Permanent Modified Duty

When you just cannot create a temporary modified duty job within your organization for your injured worker, you may consider having your employee do charity work outside of your company. The benefit of a reduced experience modification rate (EMR) still exists, since no Temporary Total Disability (TTD) benefits will be paid on the claim, and your employee will remain active and engaged in meaningful modified work. You also get a charitable deduction for the donated labor cost.

Workers’ Compensation – First Aid

As you know, workers’ compensation costs and your Experience Modification Rate (EMR) are two key components of any competitive bid. Multiple small claims (below $7,001) can, and often do, adversely affect your EMR more than one very large claim.

Accordingly, when thinking about how to reduce your premiums and EMR, one of the primary goals should be to legally keep First Aid claims off of your claims history. Here is a road map to help you succeed in reducing your premiums and EMR through the use of a first aid strategy.

Employment Practices Liability Insurance Lawsuits on the Rise

Daily news reports continue to highlight the need for Employment Practices Liability Insurance (EPLI). The recent high profile case of Ellen Pao v. Kleiner Perkins received daily media attention. Greg Bauman, the editor in chief of the Silicon Valley Business Journal, reported on April 2, 2-15 that “Even though the verdict rejected Pao’s claims…the damage had been done in the court of public opinion. Kleiner Perkins suffered public shaming, burdensome legal bills and a future handicap in recruiting talented women…”

The Narrowing of Coverage from Additional Insured Endorsements

The Insurance Service Office (ISO) provides standard insurance coverage forms used by most insurance companies. As updated forms are released, the older forms are taken out of publication and are generally no longer used by admitted insurance companies, as a result of their licensing agreements with ISO.

In April of 2013, ISO issued several new additional insured endorsement updates that were crated in response to recent anti-indemnity legislation that has occurred in many states including California. The April 2013 endorsements add three new limitations as follows:

Umbrella Limits


Umbrella coverage is your best line of defense for general and auto liability catastrophes.

When most businesses consider an umbrella insurance policy, they think about the premium cost and the possible benefits of the coverage. Some business owners may reach the immediate conclusion that they will never see a catastrophic loss, so there is no purpose to incur the cost. “I am not at risk. My business doesn’t fit the profile for a significant loss. Why invest in umbrella coverage when I don’t need it?”

When evaluating the need for umbrella coverage, consider these three questions: