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Invest in Security Cameras

Authorities say a central New York convenience store’s surveillance cameras caught a man purposely pouring soda on the floor and then faking a fall so he could file an insurance claim against the business. Insurance fraud investigators say the store’s security videotape shows Barnes pouring soda on the floor. Officials say “injured” filed a claim with the stores insurer and later withdrew the claim. Paperless Comment: all business owners, are encouraged to install security cameras, and it doesn’t cost much these days. Those cameras can be setup to record only when there is movement detected. With development of technology, 24/7 access via internet… Read More »Invest in Security Cameras

California Worker’s Compensation Medical Provider Network (MPN) New Requirements Effective October, 2010

In an effort to streamline the notification process and reduce the burden on employers, the Administrative Director of the California Division of Worker’s Compensation (DWC) recently amended regulation relating to MPN’s. The DWC regulates how an employer implements a MPN, requiring them to provide specific notification to their California employees. The purpose of this letter is to alert you to the new requirements and advise you of the steps being taken to inform our customers. The amended regulation becomes effective on October 8, 2010. By that date employers must: Post the updated form DWC-7, Notice to Employees –Injuries Caused by Work… Read More »California Worker’s Compensation Medical Provider Network (MPN) New Requirements Effective October, 2010

Facebook rules again

In the past, we were astonished by several messages, coming from different sources, on how Facebook helps to adhere the law. There was beer case and mafia boss and numerous arrests have been made… Today we have learned about a New York state woman whose own Facebook posting revealed workers compensation fraud has received probation and been ordered to pay restitution, the New York State Insurance Department said. Alexis M. pleaded guilty to stealing $8,975 in workers comp benefits, the state agency said Monday. Investigators said they discovered a Facebook posting in which Ms. Muniz boasted about her salary as an… Read More »Facebook rules again

Understanding the Cost of Your Workers Compensation Policy

Workers’ compensation premium is calculated differently from other types of insurance. Your cost depends on the type of business you operate, your payroll size, and other factors. You make premium payments throughout the policy term, but your exact final premium is configured after the policy term ends. Let’s look at the components that go into determining your premium. Classification system. The California workers’ comp system groups occupations and industries into about 500 distinct classifications. Insurance providers charge a rate for each classification based on the projected claims costs for that industry.  The higher the expected claims are for classification, the… Read More »Understanding the Cost of Your Workers Compensation Policy

Product Liability Insurance Exposures – Check you Operating and Assembly Manual

Even if you’re importing sourced or someone’s else product, as soon as you attach your label on the product, you become responsible for claims associated with the use of the product. Some of the claims can be avoided if operating manual is well written and easy to follow. How much, do you think, IKEA incurred in losses, because people assembling its products couldn’t figure out how to build that piece of furniture. Although, I have to admit, IKEA has made a great progress in writing its manuals. And their manuals are written without using any single word in any language. Simple. Easy to follow.… Read More »Product Liability Insurance Exposures – Check you Operating and Assembly Manual

Small Business Large Expense – US Tort Claims

A new study from the U.S. Chamber of Commerce shows that small businesses paid $105.4B in 2008 for tort costs, with a third of it ( more than $33 BILLION, that is $33,000,000,000 !) out of their own pockets. According to the report, small businesses paid 81% of business tort liability costs but took in only 22% of revenue. The study, Tort Liability Costs for Small Businesses, also found that small businesses ($10M or less in annual revenue) paid, collectively, $35.6B of these costs out-of-pocket rather than through insurance. The study was conducted for the Chamber’s Institute for Legal Reform… Read More »Small Business Large Expense – US Tort Claims

Insurance Regulators Protect You

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New York regulators have fined five units of The Travelers Cos. Inc. a combined $50,000 for paying commissions to an unlicensed insurance agency in New York. The fines were paid as part of a legal stipulation signed last month, and covers violations of insurance law that took place between January 2006 and April 2007. The commissions in question were for approximately 110 insurance policies.  In legal documents, Travelers said the payments were an oversight and the company vowed to take “all steps necessary” to ensure similar violations did not occur in the future. The name of the agency was not disclosed. The… Read More »Insurance Regulators Protect You