Unreported Changes Can Mean Big Costs, Be Sure to Tell Your Insurer of Any Material Changes

| posted in Blog

One important risk that many policyholders are not aware of is failing to notify their insurer or broker about material changes that could affect their coverage. Various events should trigger you to inform your carriers – for example, if you purchase new equipment, hire new staff, buy a new building, or expand your operations. And depending on the type of change, it could cut across different lines of insurance, like workers’ compensation and employee benefits. Here are a few examples of how these potential changes can affect your policies, both commercial and personal. Workers’ compensation Hiring new employees – While you…
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New Law Tightens Workers’ Comp Exclusion for Officers, Board Members

| posted in Blog

A new law has made changes to the officer exclusion for workers’ compensation in California but it could cause problems for policies that do not incept on Jan. 1. Starting in 2017, an officer can be only excluded from workers’ comp coverage if he or she owns 15% or more of the company’s stock. That’s changed from the current rules that set no ownership levels for officers and directors that want to claim a workers’ comp exclusion, which has created confusion as well as an opportunity for fraud. However, the law is written in such a way that it also…
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