Who’s Who: Subsidiaries Covered Under Policies

When in the course of building, expanding, and simply conducting business through the years, changes occur in staffing, locations, even terms of ownership as partners join, percentages of proceeds shift, and other variables ebb and flow.

That’s completely natural and justified. But what happens when an insurance claim enters the picture? Are the lines of demarcation as clear to an outside agent as they might be to those inside the enterprise?

Every insurance policy states “Who is insured.” The importance of knowing who that pertains to specifically swiftly moves into high relief, however, when terms of that policy need to be carefully examined on the way to determining payment of damages.

Subtle differences may exist, so be sure to understand the specifics in your unique structure. A good organizational chart, kept up to date and checked for complete accuracy, must be there for a third-party agent to use. If that chart is out of date or in any way inaccurate, it can be a significant challenge to say it should not be used.

When your coverage comes into play for any reason, make sure all of your documentation paints the most current and accurate picture of how your business is structured, including ownership percentages, how those owners are invested and compensated, and any other pertinent terms. Also, make sure all affected parties inside the organization have reviewed and agree to what those documents show.

It’s critical to know who’s who when it comes to how a business is owned and operated. Contact the professionals at The Reschini Group to learn more.


Copyright 2020 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

Report Card: Filing the Form 5500 Annual Return

Data drives decisions.  Data reveals trends.  Data is the lifeblood of business and government.  And data provides the underpinning of one of an employer’s most important documents each year – the Form 5500 Annual Return/Report of Employee Benefits Plan.

This annual report filed by employee benefit plan administrators is used by the U.S. Department of Labor (DOL), Internal Revenue Service (IRS) and the Pension Benefit Guaranty Corporation (PBGC) to consolidate the main annual reporting requirements for employee benefit plans.  The Form 5500 series is intended to protect the rights and benefits of plan participants and beneficiaries by assuring that:

  • Employee benefit plans are operated and managed in accordance with certain prescribed standards
  • Employee benefit plan participants and beneficiaries are provided with or have access to sufficient plan information

In addition, the Form 5500 series is an important compliance, research and disclosure tool for the DOL. It is also a source of information and data for use by other federal agencies, Congress and the private sector in assessing employee benefit, tax and economic trends and policies.

Small welfare benefit plans that are unfunded or fully insured (or a combination of unfunded and insured) are exempt from the Form 5500 filing requirement. A small welfare benefit plan is one that has fewer than 100 participants at the beginning of the plan year.

A welfare benefit plan is unfunded if benefits are paid as needed directly from the general assets of the employer. Plans that use a trust or separately maintained fund to pay benefits are not considered unfunded. A plan is insured if benefits are paid through insurance policies. If premiums are paid by employees, the employer must forward the employee contributions no later than three months after receipt.

The Form 5500 series must be administered completely and carefully.  Contact the Benefits team at The Reschini Group to learn more and to set up a meeting.


Copyright 2020 The Reschini Group

The Reschini Group provides these updates for information only, and does not provide legal advice.  To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.