Workers' Compensation Concerns in the Entertainment Industry

Status Quo

Venues, film or recording studios all deal with a similar exposure on a regular basis, yet the exposure is misplaced. We'll use venues for our discussion.

When events are negotiated, Workers' Compensation (Work Comp) requirements in contracts are often "lined out" or removed. Prohibitive costs and exemptions due to independent contractor status are the most common reasons.

Highly creative entrepreneurs are prevalent in the entertainment industry, and several work together for most events. The idea that a business wouldn't sue itself so Work Comp isn't needed is often raised. Work Comp is still very valuable to small businesses and individuals, though many forgo coverage. If coverage is in place, owners, partners, executives and others may be legally excluded by their choice, or the policy may not contemplate all classes (types) of workers. Volunteers (ushers, etc.) are an example-with no payroll or cost to base the premium, and no lost wages, Work Comp is not designed for this class. It should be noted the certificate of insurance may not reflect all exclusions.

Many Work Comp policies bear minimum premiums. Their premium calculations for a small business may be below the insurer's minimum premium. The business or individual is charged more to reach the insurance company's minimum premium to be acceptable to the company. It's similar to a contractor's minimum rate, or venue's minimum fee. All businesses' rates consider operating costs and other factors.

Concerns for Studios and Venues

It can be a make or break issue for an event proposal. Yet some states require a General Contractor to provide Work Comp if their subcontractors don't have it. Laws and interpretations change. Boundaries defining general and independent contractors are easy to overstep. Contractors and related parties such as an apprentice, spouse or child may disagree with definitions of "general" and "independent contractor" when an injury or death occurs. At such times, people will look for coverage somewhere.

When the status of an injured worker is ambiguous, the venue's ability to cover the worker will likely be examined. If coverage isn't available under its Work Comp policy, its General Liability (GL) and Excess or Umbrella insurance may be at risk of a claim.

Vicarious liabilities, whereby one is responsible for the actions of others through a legal duty, may include ensuring that all workers, including self employed, are covered. A venue's standard contract typically has Work Comp requirements, so arguably it's aware of the risks in advance. GL, Excess and Umbrella may be triggered. Claims against the venue's coverage by contractors could result in higher premiums for the venue, even insurability problems. In many cases there will be no coverage, and the venue could be left holding the bag. The best bet for any venue is to insist on coverage for all workers. Expect push back, yet risks to the venue are too great to ignore. However, it's always best to find solutions everyone can live with.

A Solution

An interesting alternative available in most states is Occupational Accident (Occ Acc), especially when paired with Contingent Liability. Policies vary, yet generally Occ Acc covers certain claims arising from a work related injury or death for a covered contractor, for a specified period after the accident. Contingent Liability steps in as Work Comp if an independent contractor is deemed to be an employee of the policyholder.

Largely because of the limited term for claims payment, Occ Acc is usually much more affordable than Work Comp. As Contingent Liability only steps in if a worker is deemed to be an employee of the policyholder, its cost is usually more affordable too. Since there can be significant cost savings and they're designed for independent contractors, the two main objections to coverage are met at once and the venue enjoys a level of protection.

Risk managers are strongly encouraged to contact their agents or brokers about alternatives. Available options can provide levels of protection for the venue's coverage limits, pricing and insurability. And the cost could be reflected in event negotiations-without endangering the success of the event.

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Workers' Compensation Concerns For Public Entities

Cities and counties often lease or give permits for building, street or park space for fairs, parades, marathons, fireworks, conventions, weddings, etc. In addition to permits and leases revenue, events can attract visitors, bringing even more revenue to the city and its businesses. Yet they may lease space without proper coverage. The contract should require proof of Workers' Compensation (Work Comp) coverage. Sometimes this requirement is removed, most commonly due to cost or "exemption."

Many Work Comp policies have high minimum premiums - a valid concern. Though they remain liable, organizations can legally go without coverage in many states. In Florida you may not need to carry Work Comp if you have only 3 employees. In Texas, owners and executives can choose to be excluded - though the certificate may not mention it. A good tip for risk managers is to require that the certificate show whether anyone is excluded.

It's easy to see why the issue isn't pushed. Will a town ask its citizen to provide Work Comp for his family reunion? While this may not historically be the case, he isn't very different from any other tenant of commercial property. Under a long term lease he'd need to furnish proof of coverage. He may not think he's performing "work", yet may arrange catering, entertainment, decorating or other work for his event - he may become a General Contractor.

Some states require General Contractors to provide Work Comp for uninsured subcontractors, or remain liable. Contractors and their helpers, spouses or kids may disagree with a definition of "independent contractor" in an injury or death. Then, people look for coverage somewhere. Laws change, and it's easy to overstep boundaries separating employees and contractors. Sometimes telling workers what time to be there and what to put where may be enough to blur the line.

When the status isn't clear, people may look to the city for coverage. Liability can tend to go up the ladder until someone can pay, so improper coverage is a real concern for cities. Those who believe legislative immunity would absolutely protect them might ask if and why they provide Work Comp for their employees. If coverage is not available under the city's Work Comp policy, another likely place to seek coverage is its General Liability (GL) and Umbrella insurance.

Vicarious liabilities are the coverage "trigger" of concern for GL and Umbrella. These liabilities come from responsibility for the actions of others through a legal duty. They may include ensuring that all workers are covered. City contracts usually require Work Comp, so we could argue they're aware of the risk in advance. Claims against the city's coverage for short-term tenants and contractors without coverage could mean higher premiums for the city, even insurability problems. There could be no coverage, but the city could be liable. And insurance companies sometimes audit and charge additional premium for this risk.

The best bet for any public entity is to insist on coverage for all tenants and workers. Expect resistance, but the city's risks are too great to ignore. However, it's best to work with your community to find solutions everyone can live with.

An alternative in most states is Occupational Accident paired with Contingent Liability. Though policies vary, generally they're designed to cover certain claims from a work-related injury or death for a certain period. Contingent Liability steps in to perform similar to Work Comp if a contractor's deemed to be an employee of the policyholder. Cities and counties should be named as Additional Insured and receive a copy of the endorsement with the certificate.

Because of the limited benefit period, Occupational Accident is usually more affordable than Work Comp, and because Contingent Liability only steps in if a worker's deemed to be an employee, its cost is usually lower too. Some insurers offer these on a short term basis, which means even more savings for the citizen holding an event on city property.

Because there can be significant savings and they're designed for non-employees, the two main objections to coverage are met at once.

Contact your agent or broker about alternatives in protecting the city's own coverage limits, pricing and insurability. Especially in a tight economy, being able to accept lower priced options from your citizens can help everyone, meaning more revenue and successful events in its facilities.

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Cheap Car Insurance for Young Drivers

Young drivers are viewed as being inexperienced drivers by car insurance companies; therefore, car insurance companies peg young drivers as being a high risk for them to insure. This doesn’t mean that car insurance companies won’t insurance young drivers, but it does mean that many car insurance companies will offer young drivers much higher premiums than the premiums often offered to older, more experienced drivers.

While it will probably be several years before young drivers see the lower premiums older drivers see now, there are still a few measures young drivers can take to get cheap car insurance. If you’re a young driver searching for cheap car insurance, take these tips into consideration.

Stay on your parents’ car insurance policy. Being on your parents’ car insurance policy is always cheaper than purchasing your own car insurance policy, even if it does bump their payments up a bit. Plus, if you have your own car, your parents’ will save money by adding the additional vehicle to their existing car insurance policy.

Take a driver education or defensive driving course. Most states require young drivers to take a driver education course in high school. Regardless of whether or not you’re required to take a driver education or defensive driving course as a part of your curriculum, you should take one, or both, of the courses. Many car insurance companies offer discounts to all drivers, including young drivers, for going the extra mile and learning safe and proper driving techniques.

Make sure your car is safe. Whether you have your own car insurance policy, or you’re on your parents’ car insurance policy, most car insurance companies will offer you a discount if you’ve taken the steps to make sure your car is safe. Install a safety alarm system and an anti-theft device on your steering wheel. Always keep your car locked and park it somewhere safe at night or whenever you’re not driving.

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Gap Vehicle Insurance Frequently Asked Questions

1. What is Gap Vehicle Insurance? Insurance that ensures the owner for the difference between what is owned on the vehicle and what the insurance company determines that the automobile is worth.

2. Who Needs Gap Vehicle Insurance? Gap Vehicle Insurance is usually needed if you owe more on the automobile than it is actually worth-ie: if you have negative equity in the vehicle.

3. Is Gap Vehicle Insurance Required? Most lending institutions don't require the insurance. However, if you are leasing an automobile it might be required.

4. Can I Get It On a Used Automobile? Depending upon the insurance provider, you might be able to get Gap Vehicle Insurance on an older model automobile.

5. Where Can I Get It? Gap Vehicle Insurance can be purchased at the dealership at the time of the transaction. It can also be purchased from local insurance providers or through providers on the internet.

6. What Does It Cover? Most policies only cover accidents and theft.

7. Do I need Gap Vehicle Insurance and Traditional Insurance? Traditional insurance covers you for vehicle damage and any resulting injuries. Gap insurance only covers you for the difference between what is owed on the automobile and what the insurance company determines the automobile is worth.

8. How Much Does It Cost? The average cost of a Gap Vehicle Insurance policy is between $300-$700.

9. Do I Have To Purchase Gap Vehicle Insurance When I Purchase My Automobile? No. Most insurance companies will allow you to purchase it after the transaction has been completed.

10. Is Gap Vehicle Insurance Available In All States? Most every state offers some type of gap insurance. Check with your state's insurance commission for a list of providers.

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Life Insurance Brokers

A life insurance broker deals with numerous insurance companies and will search for the best company and policy for you. You supply your broker with the provisions you are looking for, and the broker will search for the best policy to suit your requirements. When you hire a life insurance broker, you can expect to be provided with as many as twenty life insurance quotes. A broker will submit your information to different insurance companies and when the quotes come in, will discuss the pros and cons with you to help you make a decision about what policy is best for you.

Looking for a good life insurance policy online can be a bit of a challenge because of the large number of insurance companies who advertise online. However, the search for a good insurance policy can be easy with the help of a life insurance broker. A broker will do the legwork in finding the best possible insurance for a client and will offer sound advice on how to decide and pick an insurance policy.
Life Insurance provides detailed information on Life Insurance, Life Insurance Quotes, Term Life Insurance, Whole Life Insurance and more. Life Insurance is affiliated with Life Insurance Policy Rates.

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How blog advertising works?

Advertising is one of the media effectively to promote the product. With the increase in the no. internet users, the company has started to target consumers by displaying their products in the world via the web. Has become an effective marketing strategy adopted by many companies in the world. As a result the money through blogs have become very common today. There are many forums that have acted bridge the gap between bloggers and adertisers. One of this program is paying post.

You can add up to 10 blogs in PayingPost, after your blog is approved you can start to find the opportunities and you have 6 hours to do the job that you have taken. Ooooo before I forget about this one thing, you have to put their code to your blog’s meta head.
Besides the same thing with other types of paid review programs, there are different things too. There are two ways to write a review:
Free way, this way is the ordinary way to write a review. The advertiser gives us information about how the way to write their job and we just have to write as their request.

Press Release Opportunity, press release material has been well prepared by the advertiser and we just have to post this in our blog. If we joined this, they will give us $25 to our paypal account for the best article.


If you are good writer, you can submit your articles to those web site. The registration is very simple, you just read and follow the instruction carefully. Once you have submitted your blog URL, they will review your blog site.

Once your blog site is approved, the opportunities will come. You then can start writing reviews for advertisers' web sites, products or services. Remember you need to put some efforts and the outcome is income.

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A Look at Life Insurance

Every year, billions of dollars is spent on life insurance. In today’s world, families are buying more life insurance that ever before. The demand for insurance has really made the cost for insurance to skyrocket. Since life insurance is needed by almost every family, the demand for life insurance will continue to increase.

Obviously, to some individuals, live insurance is a priority over other insurance like auto insurance, property insurance, etc. But what surprises me most is that the average insurance holder is not aware of how the insurance policy works. Probably, because insurance policies uses terms that are not familiar to the average person who needs insurance.

This not withstanding, millions of people keep on buying insurance. Many are aware of the importance of life insurance. We all need life insurance because of the uncertainty of life. We can not really predict what will happen in the next moment.

The basic truth about life insurance is that it can not insure a person against death but it can protect dependents of a death person against some economic losses resulting from the death of a bread winner in a family. Life insurance will ensure that the dependents of a dead person don’t suffer much loss. The term life insurance doesn’t warrant that the insurance will cover one for a life time. Life insurance is similar to car insurance. The usual term policy can be five or ten years or more depending on the choice of an individual.

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How to Fast Start Your Insurance Business?

If you are a newbie in insurance business, welcome aboard. It is important for you to position your business in the fast lane so that you can grab whatever opportunity that comes along to further build your business.

How should newbies begin insurance business?

(a) Have dreams and goals

First and foremost, you need to define the purpose in your life and how this business can help realize your dreams and goals because you believe no other careers offer such opportunities.

Your dreams are like a light house that helps you navigate the direction in the dark and turbulent stormy ocean. Your goals give you the energy you need to do your best. The life without any dream or goal is not worth living.

(b) Formulate a marketing plan

Insurance sales business is just like any other forms of business where you are required to think and plan like a business person. You need to write down your business goals in your marketing plan. Goals set must be clear, realistic, achievable, measurable and with deadlines.

Perform a self analysis to identify your own strengths and weaknesses. Formulate marketing strategies based on your strengths. A well thought marketing plan is your blueprint for success.

(c) Plan for your monthly, weekly and daily activities

As an insurance agent, it is important for you to see the people. However, seeing people is not the only business activity you have. Typically, an insurance agent needs to spend time setting appointment, attending meeting or training, handling paperwork etc.

In managing such a wide array of activities, you may apply time boxing strategy. You can divide a day into 3 time slots: morning, afternoon and evening. If you decide to work 5 1/2 day a week, you may have 16 time slots in a week to carry out all your business activities.

For example, you may decide to set appointments say on Monday afternoon and Thursday morning and then meet with customers on other days. You may also allocate appropriate nonprime hours or time slots to handle paperwork.

Being an insurance agent, your most valuable capital is time. Manage your time and you manage your wealth.

(d) Focus on your market

You can start with your natural market or people in your network. The advantage of working with your natural market is that you can connect with your natural market on a personal level and you can easily build rapport with them.

The second strategy is to look for people who have common background, demographic, network or needs. Study their demographics and identify their needs in common and plan your sales approach.

(e) Focus on one or two products

You can't be master of all trades in short period of time. Be a specialist in only one or two products. Ask yourself which products are you comfortable with. If you do not believe in the products you are going to sell, you can't convince your customers to buy.

You can choose property and casualty to start your business and over time build up a large clientele. Alternatively, you can go for traditional life insurance if you are disciplined and willing to work hard.

If you have a lot of business contacts or network, you can consider group health insurance. If you are very comfortable with senior market, you may focus on Medicare products and final expense.

Once you do well in any one of these products, you can move on to branch out into other product lines.

(f) Focus on your prospecting method

There are a number of prospecting methods such as personal observation, seminar, cold calling, direct mail, getting referrals, networking, centers of influence, internet leads etc.

Some prospecting methods such as direct mails or internet leads may incur substantial amount of cost. Unless you are very sure such prospecting methods can bring you the results you want, you may like to start with personal observation or getting referrals etc.

(g) Be competent

Learn all you need to know about selling. Master all sorts of skill sets from telephone skills to fact find skills, from presentation skills to closing skills. Practice and practice till selling becomes your second nature. Follow the sales system. You can never learn too much.

(h) Winning attitude

Everybody can learn how to play tennis, but not everybody can win the game. It requires perseverance, confidence, courage, determination and all other winner's qualities to excel in your sales business.

To sum it all, insurance business requires careful planning and execution. Once you set your action in motion, do not let distractions stand in your way but go all way out to achieve your dreams and goals in life.

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Beware the Small Insurance Print

'Beware the small print' is a common phrase used by people when talking generally about Insurance - but why then do we ignore this age-old adage when buying insurance online?

In this dot.com comparison site age, how many realize until it is too late that the policy they purchased, does not provide the cover expected. Unfortunately, when bought on-line, the full policy wording may only be available after purchase.

We are being conditioned by advertising to think that 'cheaper is better' these days - but to get a lower price, insurers make assumptions about you (one size fits all). A reduced number of questions are asked in an online quote form, because the Insurer wants to keep your attention, and many assume that because a certain question has not been asked, it does not matter - but this is not the case.

For example, when buying Home Insurance or Landlord Insurance it will state somewhere in the statement of fact that you accept the property is not near a river or watercourse, cliff or harbour. You may not realize the question has been answered NO, because it is one of many questions that default to NO and is automatically accepted when agreeing to the quote. If you don't read the full 'Statement of Facts' before buying you won't know - and what if this should be answered yes in your case? - you potentially have an invalid policy.

Alternatively get professional advice, as this is still the safest way to buy insurance. A Professional Insurance Broker will ascertain your demands and needs and ask the appropriate questions, avoiding the pitfalls of online question sets with defaults. I'll finish with the other wise adage 'you get what you pay for'.

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General Insurance Issues For the REI

If one of your single-families caught fire last night, are you certain it is insured properly? If a spring storm blew the roof off of your 12-unit apartment building, would you have coverage for your loss-of-rents? Is your subject-to exposure protected? When it comes to insuring your investment properties, it is best to know what protection you have, or don't have, before a claim! It is always nice to save a few dollars to add to your net income, but make sure you are aware, and more importantly, comfortable with your coverage levels and options.

ACV vs. Replacement Cost:

Make sure that you understand the difference between the two options. Also understand what a coinsurance penalty is, and how it may apply to your units. Every property, and property owner, for that matter, is different. Your comfort with how these options affect your coverage is vital for you to make an educated decision on which option to carry per property. ACV may be "cheaper", but could cost you when depreciation is applied to a claim.

Liability Limits:

Always carry as much liability protection as you can afford. As a minimum, you should carry $1,000,000 per occurrence. The larger your portfolio, the more liability protection you should have. Surprisingly, there is a minimal premium charge in most cases to double your protection. An umbrella policy is a method to provide liability coverage beyond the standard $1,000,000 or $2,000,000 limits. An umbrella is usually more cost-effective when you have more than one type of liability exposure.

Other Structures and Personal Property Coverages:

Don't forget to protect against loss of detached structures, such as garages, sheds, and outbuildings. Some policies automatically include limits for these. Also remember to protect items in the units such as refrigerators, stoves, and window air conditioning units. Again, some policies may automatically provide built-in protection for these items.

Ordinance and Law Coverage:

This provides protection for additional costs you may occur in order to bring your damaged property "back to code", as it is repaired from a loss. As time passes and building code changes, most properties are "grand-fathered". However, the repairs that are inspected by the governing municipality are required to be to current code. Hard-wired smoke detectors and handicapped accessibility are two such examples. Without the Ordinance and Law endorsement, such work is typically not covered under your policy. Older properties and multi-unit properties are more at risk for this situation.

Loss-of-rents, or Business Income Coverage:

This provides coverage for your lack of rental income, if your tenants are forced out of your property due to a covered loss. Some policies have built-in coverage to a certain time limit, such as 12 months. Other policies may have an endorsement you must purchase at specific levels of coverage. Either way, this is protection all property owners should have.

Deductibles:

Simply stated, the higher your deductible, the lower your premium. If you are a multi-property owner, and your units are insured under separate policies, your deductible will apply, per location, if you are on what is typically referred to as a "package" or "blanket" policy, your deductible usually applies per occurrence. This could be a big difference, out-of-pocket, in the event of a local catastrophe such as a tornado.

Earthquake, Water Backup and Flood Coverage:

Most policies have exclusions for such losses. You can buy these coverages back through endorsements. Make sure you understand how each coverage may apply, respective of your chosen insurance carrier. This will ensure you can make an educated decision on whether you should have any or all of these coverages.

Insuring the Proper Entity: Make sure you protect YOUR (or your entity's) interests. It is not worth sacrificing the proper protection to avoid the dreaded "due-on-sale" clause. The entity that owns the property should be the first-named insured. The first-named insured is the primary recipient of policy benefits. Additional insured and loss-payee endorsements may suffice in certain situations. However, as a general rule always aim to be the first-named on the insurance contract.

Always work with an Agent you can trust, regardless if they are "captive", or "independent". An Agent that is familiar with our business and willing to take the time and explain your protection needs for your situation, even if they can't offer the policy themselves. We all like to save money, but you purchase insurance for protection. Make sure you understand how it works, before you need it!

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