New Address, New Terms of Coverage?

As a business gains traction, achieves success and expands, it can outgrow its original location and facilities, making a move to a new, larger site necessary.

Don’t forget to consult with an insurance professional as part of researching that new location, however. The results can be either advantageous or detrimental to your ongoing financial health.

Any change in how a business operates – including where it positions its facilities, equipment, and personnel – requires an analysis of coverage. Physical location can be impacted – either positively or negatively – by factors including:

  • The likelihood of severe weather, like hurricanes, windstorms, tornadoes, or hail.
  • Does the property sit in a floodplain? Is flooding becoming more common due to the effects of climate change?
  • Whether the area shows a statistical trend regarding crime, vandalism, and theft.
  • The condition of existing infrastructure, such as plumbing, electrical wiring, and HVAC, as these help to determine the chances of causing fire or water damage.

Similarly, a new service or line of products pursued as part of a business’ expansion plans also introduce new variables in terms of number of employees, equipment needed, safety procedures, and much more – all of which need to be incorporated into a package providing the best insurance coverage possible.

“New” in the world of business should mean “better.” To safeguard your investment on the road to improving your overall performance, make sure you have the right insurance protections in place, as well.

Contact the professionals at The Reschini Group for more information.


Copyright 2022 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.

Changes Afoot: Who Is Really Covered on Your Policy?

In life, as in business, education, and any large organization, the only thing that doesn’t change is that everything changes.

New operational subsidiaries are formed, people in key leadership positions leave and arrive, school districts see new clubs and sports teams rise and fall. Nothing wrong with any of this. It’s the natural ebb and flow. It’s how the world works.

The sticky part comes in, however, when you assume the insurance coverage in place extends to any or all of those modifications. Or worse, you don’t think of that question at all.

The old adage about why it’s dangerous to assume certainly applies. A policy is written at a moment in time, under specifications and structures that exist then. Unless provisions have been written into that policy to automatically include new elements to the entity being covered, they may not – and probably will not.

Always err on the side of caution and communication. Check with your insurance provider any time the terms, shape, size, or any other variable impacts your organization. When changes are afoot, make sure you know who and what is covered under your policy – so that any necessary adjustments can be made before costly surprises arise.

Contact the professionals at The Reschini Group for more information.


Copyright 2022 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.

Waiver of Subrogation: Added Protection, Added Costs

Subrogation occurs when an insurer pays their insured for a loss caused by a third- party, and then attempts to recoup their payout by making a claim against the responsible third party.

For instance, if you’re in a car accident and it was the other party’s fault, your insurer pays for repairs to your vehicle and then pursues the other person’s insurance company for the loss. In your insurance policy, which is a contract between you and your insurance carrier, you agreed to allow the carrier to subrogate for any paid loss.

In a typical business contract, one business may ask another business to waive its rights of subrogation because the first business doesn’t want to be held responsible for a loss. When agreed to in such a contract, it prevents the business, and its insurer, who has agreed to waive their right, from seeking a share of the damages paid from the other party, even if they are at fault.

But be aware that when a business gives up its right to recover any losses, it increases the insurer’s risk and transfers responsibility to the insured and its insurer for sometimes uncontrollable losses. This can lead to unnecessary loss history and potentially increased insurance costs.

Conducting regular contractual reviews with your insurer agent can easily point out these exposures and help to you to understand and sometimes negotiate this requirement out of your risk profile.

Contact the professionals at The Reschini Group for more information.

Copyright 2022 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.

Contractual Review: Ensuring that Your Coverage is Enough

Interesting how commitments can accumulate when you’re not looking, isn’t it?

You click on a subscription, you agree to get regular updates from a retailer, you cite a preference for a particular brand. And before you know it, funds have been deducted from your checking account, your email inbox gets choked with nuisance messages, and you can’t seem to escape online ads for something for which you are rapidly losing interest.

What began innocently can end up causing issues that can cost time, money, and patience. The same principle applies to insurance coverage, as a business enters into contracts with partners, suppliers, and vendors.

These agreements are recognized as necessary to conduct, expand, and protect a business’ interests. They make complete sense, and can serve a vital purpose. But caution must be taken when entering these arrangements, to make sure that the business’ insurance policies extend to the terms of any new contracts.

Terms and conditions of insurance coverages are written to specific situations – situations that may take on new wrinkles and specifics under new contractual agreements. The last thing any business owner needs or wants is to discover down the road that a partnership or other agreement under contract with another entity means an existing policy does not offer sufficient coverage.

Working with your insurance provider to conduct a contractual review represents an easy way to safeguard against getting caught in such a scenario.

Contracts and agreements accumulate over time. That’s smart business, typically. Benign, even. Just make sure that your insurance coverage keeps up with the terms of any new situation, to avoid costing you time, money, and patience.

Contact the professionals at The Reschini Group for more information.


Copyright 2022 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.

Heed the Warnings: Surfside Condo and Pittsburgh Bridge

On June 24, 2021, at approximately 1:22 a.m., a 12-story beachfront condominium in the Miami suburb of Surfside, Florida, partially collapsed, killing 98 people and injuring 11.

The main contributing factor was identified as long-term degradation of concrete structural support in the ground-level parking garage under the housing units, due to water penetration and corrosion of the reinforcing steel. The problems had been reported in 2018 and noted as “much worse” in April 2021. A $15 million program of remedial works had been approved before the collapse, although no main structural work had been undertaken.

On Friday, Jan. 28, 2022, at approximately 6:40 a.m., the Fern Hollow Bridge – which carried roughly 14,000 vehicles a day, connecting major areas of Pittsburgh, Pennsylvania – collapsed about 100 feet into a ravine.  Miraculously, no one was killed but about 10 people received injuries.  The bridge had received “poor” ratings for the past 10 years from inspectors, and was included in plans to be rehabilitated, but not for another five to seven years.

As the shock wears off, the impact on victims and families processed, and the physical work of cleanup and reclamation begins, next come the questions about liability and who is responsible for the costs involved in the aftermath.

In the case of the Surfside collapse, there may be issues surrounding the property insurance and the possibility of Director & Officer claims directed at the Condo board.  Regarding the Fern Hollow Bridge, various municipal bodies and agencies may face insurance investigations and subsequent litigation.  In each instance, warnings about potential failures of the respective structures had been issued, and corrective plans made, but none had been performed in time to prevent a collapse.

One thing may be more certain than anything else, however – claims of this scope will trigger enhanced underwriting by the marketplace.

Your organization may not necessarily face the same level of disaster as Surfside or Fern Hollow, but there may be identifiable risks in play nonetheless.  Once they have been identified and a plan to alleviate them has been developed, it is wise to implement those plans sooner than later, as much as practically and financially possible.

For more information on these matters and how to properly prepare, contact the professionals at The Reschini Group today.


Copyright 2022 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.

How Safe is Safe?: The Impact of COVID on Employer Practices Liability

In addition to the multiple and myriad changes already introduced to the business community by COVID-19, employers may now add possible increased liability and costs, perhaps ironically due to policies instituted to help stem the spread of the virus.

According to a 2021 report conducted in part by the Insurance Information Institute, employers need to be aware of the impact of the pandemic, particularly a shift in the burden of proof onto the employer for certain types of claimants and the changing exposure from people working from home.

Workers compensation saw five consecutive years through 2019 where that line of business posted an underwriting gain, but the institute-sponsored study said that trend could change with COVID-19.  Employer practices liability insurance (EPLI) – separate from workers compensation – has the potential to feel an impact from the pandemic, as well.

Mask-wearing mandates, vaccination or regular COVID testing requirements, increased flexibility and the associated variables of home-based work, plus similar pandemic safeguards, may fall prey to varying levels of adherence.

This lack of clarity has the potential for coverage-related issues, should employees become infected and require ongoing treatment for the virus.  Similarly, this uncertainty feeds into the increased premium costs for employers to adequately protect their businesses.

As new variants of the COVID virus develop and spread – even as vaccines become more refined and effective – the pandemic will continue to have wide, deep, and continuous ripple effects on all aspects of business, including EPLI and workers compensation insurance.

For more information on these matters and how to properly prepare, contact the professionals at The Reschini Group today.


Copyright 2022 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.

Source: https://www.iii.org/press-release/recession-pandemic-to-affect-p-c-underwriting-results-new-triple-i-milliman-report-shows-081320