According to The Insurance Journal, dated December 4th, 2019, fifteen states have revised their laws in the past two years extending or suspending statute of limitations to allow child sex abuse claims stretching back decades, unleashing potentially thousands of new lawsuits against the U.S. Roman Catholic Church.
Click here for the full story.
Because insurance carriers are experiencing higher than expected losses, a hardening insurance market is rearing its ugly head. A hardening market means increased premiums and tighter underwriting requirements for many lines of coverage, including; commercial property, E&O, D&O, Auto and EPL. The 2017 hurricane season and the 2018 California wildfires resulted in a combined insured loss of more than 212 billion dollars and are major contributors in this turn.
One area being hit particularly hard is the adoption & foster care sector. Due to increased litigation, settlements and judgments, some carriers are now reluctant to offer broad coverage with high limits. Some carriers are even exiting these markets all together, making it much harder for some brokers to have access to carriers that are willing to write these risks, let alone even to provide a quote.
In a hardening market, there are three things that can help you ride out the storm:
- Specialty Broker:Having a broker that specializes in your line of business and knows your unique risks and exposures is imperative in positively representing your best interest to the insurance carriers. Their specialty allows them stronger relationships with underwriters, greater negotiating power to lower premiums and access to more carriers than that of a generalist broker. Remember, an insurance broker (vs. an agent) works for YOU, not the insurance carrier.
- Risk Management:A clean loss history is always more favorable than a poor loss history. A poor loss history tells the carrier that you are a bad risk. This can result in even higher premiums or worse yet a non-renewal notice. By designing and implementing a strong risk management plan, your broker can paint a positive picture to the insurance carrier and show that you are proactive in helping to eliminate or reduce your risk.
- Don’t Hop Around:Believe it or not, jumping from carrier to carrier every year looking for the lowest price can cost you more in the long run. Carriers have been known not to quote simply for the fact that the insured is not loyal to any one carrier. Showing stability and loyalty (even if you have a loss and premiums increase) is a positive indicator in the eyes of the carrier.
Even in this hardening market, Hawley & Associates continues to exclusively serve the nonprofit and social service community. Our specialty allows us broad access specialty markets & programs, including programs for hard-to-place risks, such as adoption & foster care. Let our mission empower your mission!
Veteran’s Day was November 11th, so I am a little late in writing this post. But, we didn’t want the day to go by without honoring all the men and women who have served in the United States Armed Forces. We are forever grateful for your service and sacrifice.
The Wayne Hawley Giving Grant is exclusive to Hawley & Associates’ clients, and has help support programs, projects and organizations whose focus is to benefit children, families, and our communities.
We would like to thank everyone who applied for the grant in 2019. We had a record number of applicants and it was so difficult to make our selection! Everyone was so deserving! Thank you to all our clients for the amazing things they are doing to help make the world a better place for so many.
Please click here for information on this year’s recipients.
Welcome to Fall!
Please enjoy Hawley & Associates’ 3rd Quarter Newsletter. If you would like to subscribe to our quarterly newsletter, please email us at firstname.lastname@example.org.
The Wayne Hawley Giving Grant is exclusive to H&A clients who serve the social service and nonprofit community.
The grant is named in loving memory of Phil Hawley’s father, Wayne Hawley, who was instrumental in the formation of Hawley & Associates, and a guiding force in making our agency the strong, dedicated and caring company it is today.
The grant is comprised of two individual grants in the amount of $5,000.00 each.
Deadline for applications is September 30, 2019!
As of April 22nd, 2019, Arizona became the 48th state to ban texting while driving. According to a study by the National Highway Transportation Safety Administration (NHTSA), 3,450 people were killed in distracted driving-related vehicle accidents in 2016, meaning 9% of all the fatal crashes this year involved distracted driving; and 14% of these crashes involved a fatality.
What is distracted driving?
Distracted driving is anything that diverts your attention away from driving. A few examples are:
- Eating or drinking
- Talking or texting on a cellphone
- Fiddling with a stereo, navigation or entertainment system
- Talking with someone in the vehicle
- Putting on make-up
- Grabbing something off the floor or backseat
The same study found that texting and driving is six times more dangerous than driving intoxicated. Sending or reading a text takes your eyes off the road for 5 seconds. At 55 mph, that’s like driving the length of an entire football field with your eyes closed.
What can we do?
Parents: Lead by example; talk with children about distracted driving and the consequences; sign a family pledge not to drive distracted.
Teens: Speak up when they see a friend or peer driving distracted; have friends sign a pledge; share message on social media.
Educators: Remind students about the dangers of distracted driving. Post posters and hand out materials relating to distracted driving.
Employers: Institute a company policy restricting texting, eating or any other form of distracted driving while operating company vehicles or while using their own vehicle for company business.
Employment Practice Liability Insurance (EPL) covers allegations from employees against other employees and/or the employers itself based on discrimination, harassment, wrongful termination, retaliation and other specified “Wrongful Acts”. This is what is commonly known as “First Party” EPL coverage, the first party being the employee as the claimant.
So, what is a “Third Party” EPL claim? Allegations of specifically discrimination or harassment against the employees and/or the employer from “Third Parties” with whom the employees come in contact while conducting business on behalf of the organization.
Third Parties can include:
➢ Independent contractors on the organization’s premises, like cleaning people.
Classes of business with Third Party EPL exposure include:
➢ Artisan contractors (plumbers, landscapers, etc.)
➢ Business services (accountants, consultants, etc.)
➢ Commercial daycare centers and summer camps
➢ Fast food restaurants
➢ Fitness Centers
➢ Hotels and motels
➢ Retail stores, including convenience stores and supermarkets
Many employers do not realize that they have a gap in their insurance coverage that leaves them open and vulnerable to lawsuits from customers, clients, vendors and suppliers.
Contact Hawley & Associates today for more information on Third Party EPL insurance for your organization.