Jim Freyer of Haylor Freyer & Coon is pleased to announce the availability of Employment Practices Liability Insurance (EPLI) for the manufactured housing retailer or community owner with fewer than 50 employees. Up until now, this type of insurance was available for large employers (100+ employees) and had very high deductibles and substantial premiums.
Because these are litigious times it is more important today to take steps that limit your Employment Practices Liability exposure. Employees are increasingly seeking legal action for real or perceived workplace injustices – the most common being sexual harassment, job discrimination or wrongful termination.
All businesses regardless of size have employment practices liability exposures and should consider these shocking statistics:
Employment related lawsuits now comprise one out of every 12 federal court cases.
More than 50% of employment related claims are brought against companies with fewer than 100 employees.
Approximately 75% of employment related claims are found to be groundless, but only after the employer has gone through significant defense dollars to prove it.
81% of claims settled in arbitration or in administrative hearings cost employers $22,000 - $40,000 on average.
Jim Freyer states “This has been an exposure of the small employer that really had no easy insurance solution for because of the high deductibles and minimum premiums of over $1,500. There is now an EPLI insurance product that is affordable and available for the typical manufactured housing retailer and community owner. There is the availability to also offer Third Party Liability coverage endorsement which responds to claims brought by non-employee customers or vendors.”
We have the availability to add this coverage to your package renewal policy, so please contact our office to request and learn more about the coverage.
Wednesday, October 14, 2009
Pollution & Environmental Concerns with Fuel Tanks
There has been rising concern about the exposure that underground / above storage tanks present for the community owners.
These tanks usually have a capacity of 275 gallons of fuel oil to heat an individual home. In the majority of the communities where these tanks exist, many are over ten years old. What problem does this present for the community owner?
From an insurance standpoint, it is important to note that pollutants of any kind are excluded coverage on all underlying commercial, general liability coverage forms. This applies to bodily injury or property damage arising out of the actual alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants. In short, there is no coverage for the clean-up or disposal of any pollutants including heating oil.
Who can be held responsible for a resident’s tank rupturing? If a resident’s oil tank ruptures, the cost of the clean-up could be born by both the resident as the owner of the tank and the landlord as the owner of the property. However, you as the property owner is ultimately responsible for all pollutants on or migrating from your property. If a spill or leak occurs, the environmental agencies overseeing the clean-up would most likely place the financial responsibility on a landowner because he has the better ability to pay.
Can you buy pollution insurance to cover this situation? Yes, however this would depend upon the safeguards, age and size of each tank. Some communities would not qualify for pollution insurance because older homeowner oil tanks do not meet the safety or construction requirements of the insurance company. The insurance company would require the tanks be updated and many times it is less expensive to change to propane or gas and just eliminate the oil situation.
If you should have any additional questions, please call Jim Freyer, Jr. at 1-800-289-1501.
These tanks usually have a capacity of 275 gallons of fuel oil to heat an individual home. In the majority of the communities where these tanks exist, many are over ten years old. What problem does this present for the community owner?
From an insurance standpoint, it is important to note that pollutants of any kind are excluded coverage on all underlying commercial, general liability coverage forms. This applies to bodily injury or property damage arising out of the actual alleged or threatened discharge, dispersal, seepage, migration, release or escape of pollutants. In short, there is no coverage for the clean-up or disposal of any pollutants including heating oil.
Who can be held responsible for a resident’s tank rupturing? If a resident’s oil tank ruptures, the cost of the clean-up could be born by both the resident as the owner of the tank and the landlord as the owner of the property. However, you as the property owner is ultimately responsible for all pollutants on or migrating from your property. If a spill or leak occurs, the environmental agencies overseeing the clean-up would most likely place the financial responsibility on a landowner because he has the better ability to pay.
Can you buy pollution insurance to cover this situation? Yes, however this would depend upon the safeguards, age and size of each tank. Some communities would not qualify for pollution insurance because older homeowner oil tanks do not meet the safety or construction requirements of the insurance company. The insurance company would require the tanks be updated and many times it is less expensive to change to propane or gas and just eliminate the oil situation.
If you should have any additional questions, please call Jim Freyer, Jr. at 1-800-289-1501.
Water Damage to MH Inventory
Our industry has experienced many losses recently that had to do with new manufactured homes leaking due to the protective plastic being installed incorrectly or damaged.
The protective plastic that is installed at the factory does not protect the home from the elements indefinitely. As we all know, even a small amount of water entering the home can cause severe mold damage if it is not fixed immediately.
We are recommending that the home is inspected carefully when arriving from the factory and that includes the roofline of the home. This is extremely important when you have a hinged roof and the plastic does not fully cover the surface area.
This inspection should occur daily for leaks until which time the home is delivered and set either as a model or at the customer’s site. It is also recommended that additional tarps be applied to the home if it is not going to be set within 10 days. The plastic can rip or small pinholes can develop with any type of wind or wear and tear. Mold only requires water and a short amount of time to possibly total the home.
If you should have any comments or ideas that you have used to address this situation please feel free to contact us.
Thank you.
The protective plastic that is installed at the factory does not protect the home from the elements indefinitely. As we all know, even a small amount of water entering the home can cause severe mold damage if it is not fixed immediately.
We are recommending that the home is inspected carefully when arriving from the factory and that includes the roofline of the home. This is extremely important when you have a hinged roof and the plastic does not fully cover the surface area.
This inspection should occur daily for leaks until which time the home is delivered and set either as a model or at the customer’s site. It is also recommended that additional tarps be applied to the home if it is not going to be set within 10 days. The plastic can rip or small pinholes can develop with any type of wind or wear and tear. Mold only requires water and a short amount of time to possibly total the home.
If you should have any comments or ideas that you have used to address this situation please feel free to contact us.
Thank you.
Tuesday, October 6, 2009
Winter Storage of Vehicles & Equipment
IMPORTANT NOTICE
Winter brings with it special concerns regarding vehicle/equipment storage and premises maintenance.
Should you store vehicles and/or equipment on your premises during the winter months, be sure to drain the fuel tanks and secure the items to prevent unauthorized access.
Ice and snow covered roads and walkways increase the possibility of slip/fall incidences. Keeping these areas clear by shoveling, plowing and sanding will reduce the likelihood of such occurrences, but cannot eliminate the possibility of an accident.
Should a slip/fall incident occur, despite your best efforts, the extent of your negligence may hinge on whether you took reasonable steps to keep roads and walkways clear. A written log that documents your ice/snow removal activities can be an important component of your defense against a negligence claim.
The log can be very simple. It should give a brief description of the work completed and the date and time it was performed. A handy place to keep the log is in your plow truck. If you use sub contractors for snow removal, request a monthly statement that will itemize their work on your premises including the date and time of the work. A sample log is enclosed for your convenience.
Pay careful attention to the use of wood stoves, fireplaces and space heaters. It is critical that items be installed safely with proper clearance to combustible materials. Careful operation is crucial and items should never be left unattended. Of course, items should always be properly cleaned and maintained.
We appreciate your attention. Call us toll free with any questions.
MANUFACTURED HOUSING DIVISION
1-800-289.1501, Ext. 6555
Winter brings with it special concerns regarding vehicle/equipment storage and premises maintenance.
Should you store vehicles and/or equipment on your premises during the winter months, be sure to drain the fuel tanks and secure the items to prevent unauthorized access.
Ice and snow covered roads and walkways increase the possibility of slip/fall incidences. Keeping these areas clear by shoveling, plowing and sanding will reduce the likelihood of such occurrences, but cannot eliminate the possibility of an accident.
Should a slip/fall incident occur, despite your best efforts, the extent of your negligence may hinge on whether you took reasonable steps to keep roads and walkways clear. A written log that documents your ice/snow removal activities can be an important component of your defense against a negligence claim.
The log can be very simple. It should give a brief description of the work completed and the date and time it was performed. A handy place to keep the log is in your plow truck. If you use sub contractors for snow removal, request a monthly statement that will itemize their work on your premises including the date and time of the work. A sample log is enclosed for your convenience.
Pay careful attention to the use of wood stoves, fireplaces and space heaters. It is critical that items be installed safely with proper clearance to combustible materials. Careful operation is crucial and items should never be left unattended. Of course, items should always be properly cleaned and maintained.
We appreciate your attention. Call us toll free with any questions.
MANUFACTURED HOUSING DIVISION
1-800-289.1501, Ext. 6555
Performance Agreement with Sub-Contractors
Effective risk management techniques can reduce your exposure to the financial risk from lawsuits whenever a transaction creates an exposure to liability you expect another organization to bear.
One significant method of risk management is to contractually transfer risk to the responsible party. In your business, the most common situation where this technique would be appropriate is in your relationship with independent contractors.
Click here for an Indemnification Agreement you can use, which in short states that the contractor is solely responsible for their work, will hold you harmless and provide that you are an additional insured. This will most likely provide an additional amount of insurance protection under the contractor’s policy.
Example: LAWSUIT-------CONTRACTOR----Then----RETAILER
You as the retailer would be afforded coverage as additional insured under the Contractor’s insurance and after those limits had been exhausted your own policy would then provide coverage. You have now been able to financially transfer the risk to the contractor and will be afforded their limits of protection first.
After completion of the Indemnification Agreement you should receive the following from the Contractor:
CERTIFICATE OF INSURANCE HAVING THE FOLLOWING COVERAGE:
· Minimum General Liability limit of $1,000,000
· Your Business Named as Additional Insured
· Worker’s Compensation
As always, we encourage you to contact our office, if we can be of further assistance.
One significant method of risk management is to contractually transfer risk to the responsible party. In your business, the most common situation where this technique would be appropriate is in your relationship with independent contractors.
Click here for an Indemnification Agreement you can use, which in short states that the contractor is solely responsible for their work, will hold you harmless and provide that you are an additional insured. This will most likely provide an additional amount of insurance protection under the contractor’s policy.
Example: LAWSUIT-------CONTRACTOR----Then----RETAILER
You as the retailer would be afforded coverage as additional insured under the Contractor’s insurance and after those limits had been exhausted your own policy would then provide coverage. You have now been able to financially transfer the risk to the contractor and will be afforded their limits of protection first.
After completion of the Indemnification Agreement you should receive the following from the Contractor:
CERTIFICATE OF INSURANCE HAVING THE FOLLOWING COVERAGE:
· Minimum General Liability limit of $1,000,000
· Your Business Named as Additional Insured
· Worker’s Compensation
As always, we encourage you to contact our office, if we can be of further assistance.
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