Industry News
Author, Sam Clayton, Vice President, Construction Group, Rancho Mesa Insurance Services, Inc.
Adding frustration to the growing concerns for businesses dealing with COVID-19, the Workers’ Compensation Insurance Rating Bureau (WCIRB) has recommended California employers pay a COVID-19 surcharge on their 2021 workers’ compensation policies.
Author, Andy Roberts, Account Executive, Surety Department, Rancho Mesa Insurance Services, Inc.
The COVID-19 pandemic will have many long and short term effects on the surety industry. While the long term effects might not be known for years, some short term changes are already occurring. Early on, we have witnessed bond companies start to tighten their underwriting guidelines, and now we are seeing an increase in General Contractors (GC) requiring performance and payment bonds from their subcontractors.
Author, Sam Brown, Vice President of the Human Services Group, Rancho Mesa Insurance Services Inc.
On September 17th, 2020 Governor Gavin Newsom signed into law Senate Bill 1159 (SB 1159) and Assembly Bill 685 (AB 685), both COVID-19 related bills. Both pieces of legislation will impact how employers respond to incidents of COVID-19 infections. This article will help business owners understand AB 685’s heightened occupational health and safety rules. Employers also need to understand how AB 685 grants California’s Occupational Safety and Health Administration (Cal/OSHA) greater enforcement powers.
Author, Drew Garcia, Vice President, Landscape Group, Rancho Mesa Insurance Services, Inc.
Even prior to the COVID-19 pandemic, many construction companies were utilizing some form of cloud-based systems to effectively streamline business operations and increase accessibility of information. While hosting sensitive data in the cloud has many benefits like shared access to data, applications and storage, there are some risks contractors should take into account before relinquishing their data to the cloud.
Author, Dave Garcia, President, Rancho Mesa Insurance Services, Inc.
As expected, California Governor Newsom signed Senate Bill 1159 (SB 1159) into law Thursday, September 17, 2020 and it will have several impacts on workers’ compensation and the presumption of the claim. Below is an outline of some of the more important elements of SB 1159. In simple terms, just remember three numbers, 4/4/14 - I’ll explain, later.
Author, Sam Clayton, Vice President of the Construction Group, Rancho Mesa Insurance Services, Inc.
As if the 2020 business landscape has not already been challenging enough, a hard market for excess/umbrella is occurring at a concerning rate, resulting in rising premiums, limited capacity and a restriction in terms and conditions.
Author, Matt Gaynor, Director of Surety, Rancho Mesa Insurance Services, Inc.
When the bond company approves a performance and payment bond for our contractor clients, they want to keep track of the project until completion - at which time the liability for the bond is no longer on their books. One tool they use to track a construction project is the Work In Progress Report (WIP) which the bonding company analyzes on a quarterly or six-month basis to track the profitability of the project on a percentage of completion basis. When the bond company sees that a project is 100% complete on the WIP or Completed Contract Report, they will mark the bond file as “closed,” once the warranty period has expired.
Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.
While the effects of COVID-19 on the workers’ compensation marketplace vary among the different business sectors, the Workers’ Compensation Insurance Rating Bureau (WCIRB) has approved a filing that will increase the 2021 pure premium advisory rates by 2.6%. With impending rate increases on the horizon, it’s more important now than ever to be proactive when it comes to your company’s risk management program. Carriers are already tightening up their underwriting guidelines and limiting schedule credits. In order to earn the most competitive pricing possible, a business must differentiate itself from other businesses. Below are three strategies you can use to strengthen your risk profile during COVID-19.
Author, Chase Hixson, Account Executive, Rancho Mesa Insurance Services, Inc.
The COVID-19 pandemic has brought a slew of unknowns to employers across the country, especially as it relates to human resources questions and Employment Practices Liability (EPLI). Rancho Mesa’s RM365 HRAdvantage™ Portal has been a favorite of our clients ever since its release in 2019. The portal continues to grow in popularity as employers face new challenges as workplace standards and employee interaction changes, almost daily.
Author, Daniel Frazee, Executive Vice President, Rancho Mesa Insurance Services, Inc.
While business owners spend thousands of hours becoming experts in their own field, most know very little about the intricacies of purchasing commercial insurance. Consider exploring these topics further as you prepare for your upcoming renewal cycle.
Author, Kevin Howard, C.R.I.S., Account Executive, Rancho Mesa Insurance Services, Inc.
COVID-19 has created a multitude of challenges for California business owners in the first half of 2020. A concerning trend is the potential combination of lower payrolls and the California Workers’ Compensation Insurance Rating Bureau’s (WCIRB) recommendation to lower expected loss rates, creating what very likely could be significant Experience Modification Rate (XMOD) increases for numerous California businesses.
Author, Andy Roberts, Account Executive, Surety Department, Rancho Mesa Insurance Services, Inc.
Contractors often ask us what bond companies are looking for when they are reviewing balance sheets and income statements. The answer isn’t a simple one, because there are many items that underwriters look at when determining if they will write a bond for a contractor. Typically, the first thing an underwriter will do is calculate a contractor’s working capital.
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
Injuries, accidents, and mistakes happen. When a work-related injury occurs, a common reaction from many business owners is an instinct to NOT report the injury to their workers’ compensation carrier for fear of increasing their company’s Experience Modification (EMR). However, they couldn’t be more wrong. Timely reporting of all claims is the first step in controlling claim costs and lowering their EMR.
Author, Emily Marasso, Media Communications Assistant, Rancho Mesa Insurance Services, Inc.
On June 11th, 2020, the D.C. Circuit Court denied the American Federation of Labor and Congress of Industrial Organizations’ (AFL-CIO) lawsuit against the Occupational Safety and Health Administration (OSHA) for not issuing an emergency temporary worker safety standard due to COVID-19.
Author, Matt Gaynor, Director of Surety, Rancho Mesa Insurance Services, Inc.
I received an email from a large Subcontractor client last week requesting performance and payment bonds in the amounts of $87,000 and $133,000, respectively. This client has completed projects in excess of $5,000,000 in the past and was surprised that the general contractor they were working with was requiring such a small amount to be bonded back.
Author, Alyssa Burley, Media Communications and Client Services Manager, Rancho Mesa Insurance Services, Inc.
With California Insurance Commissioner Lara’s recent approval of a special regulatory filing introduced to alleviate the burden COVID-19 workers’ compensation (WC) claims threaten to have on California employers, we reached out to several prominent carrier executives to share their thoughts.
Author, Alyssa Burley, Media Communications and Client Services Manager, Rancho Mesa Insurance Services, Inc.
As businesses begin to reopen across the country, employers are now faced with the real possibility that one or more of their employees may be diagnosed with COVID-19. Those who are familiar with the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) recording requirements may be wondering how to handle an employee COVID-19 case on their OSHA logs.
Author, Dave Garcia, President, Rancho Mesa Insurance Services, Inc.
California Insurance Commissioner Lara has approved, as filed, the proposed special regulatory filing submitted by the Workers’ Compensation Insurance Rating Bureau (WCIRB) concerning proposed amendments addressing the Coronavirus Disease (COVID-19). The special regulatory filing is effective July 1, 2020 and will apply retroactively starting March 19, 2020, the day California Governor Newsom issued the Stay-at-Home Executive Order N-33-20. Those amendments are as follow…
Author, Lauren Stumpf, Media Communications Coordinator, Rancho Mesa Insurance Services, Inc.
As states begin to lift COVID-19 restrictions and move into later phases of reopening plans, and companies begin to bring back their employees, it is important to take the necessary health and safety precautions in the workplace. Your staff should be well informed about safety precautions and resources to keep one another safe. When choosing a COVID-19 employee training, make sure it is comprehensive and includes all the necessary topics recommended by local, state and federal agencies.
Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.
As businesses re-open across the country, it is important that we all do our part in preventing and slowing the spread of COVID-19. For many companies in construction and those in the service industry, employees often work in close proximity with others. Keeping your workforce and the public safe should be priority number one.
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