What is included in the definition of remuneration or payroll for purposes of workers' compensation?
The definition of remuneration or payroll varies by state. Within California the following definition has been established by the Workers Compensation Industrial Review Board. "Remuneration includes gross wages; salaries; commissions; bonuses; vacation; holiday and sick pay; overtime payments; the market value of gifts; and all substitutes for money earned during the policy period by employees and officers of the employer and any other persons for whom voluntary coverage is provided under the policy.". There are several limitations and exceptions that cover items such as executive compensation and overtime. <a href="http://www.wcirbonline.org/index2.asp?section=11&subsection=0&content=advmanualplan/pub_index.asp" target="_blank" class="hyperlink1">Click here</a> to access the Workers Compensation Insurance Rating Bureau of California website for the complete definition. After you reach the website, follow these steps:<br> 1) Under California Regulatory Publications choose the Uniform Statistical Reporting Plan for 2003<br> 2) Scroll down to Part 3 - Standard Classification System<br> 3) Scroll further down to section V - Payroll -Remuneration and click on the link. This will take you to the complete text of the definition.<br><br>Consult your insurance representative or the compensation board for the states that you are operating in for additional information. |
What is a Surety Bond and how do we get one?
Surety Bonds can guarantee a wide variety of financial obligations to interested third parties. Bonds typically fall into 3 broad categories: Contractual, Subdivision, and Commercial. For more information on the various types of Surety Bonds, including the basic information requirements, please go our Surety section in our Expertise and Specialty Focus area. |
My workers' compensation costs keep going up. What can I do about this?
The two main factors in managing your workers' compensation costs are loss control and claims management. Premiums you pay are generally closely correlated to the amount of money paid out in claims. Depending upon your company size, you may be able to purchase an insurance policy with a deductible that allows your payments to be even more responsive to your loss history. Your insurance broker can help to identify common causes of loss and can make suggestions on how to manage your exposure and your claims. |
What is the difference between an agent and a broker?
Agents work for the benefit of the insurance company they represent. Brokers represent the client. |
The owner of my company has a private plane that he flies on company business. Do I need special insurance for the company?
If the plane is owned by the individual, rather than the company, then you do not need "owned aircraft coverage". However, you should consider the purchase of non-owned aircraft coverage in case the plane is flown on company business and the company is sued. Your broker should be able to help you analyze the requirement and provide loss control ideas such as a travel policy that restricts flights on company business. |
How do brokers get paid?
Brokers typically receive a commission for the placement of insurance. Your broker should be willing to discuss their compensation and the services that you receive in exchange for this payment. Large clients may able to arrange to pay based on a fee rather than commission. This is especially helpful if you decide to outsource some of the risk management activity that you would otherwise have to provide internally. In this event you can have a good discussion about the level of resources required relative to the compensation earned. |
My broker is recommending that I purchase special insurance for my web site. Do I need this type of coverage?
Numerous insurance companies have begun to offer specialized "cyber insurance" to meet the new exposures that were not anticipated when most insurance policies were first written. For example, there are legal questions about whether data is considered property under a traditional property insurance policy. Business interruption may occur as a result of a virus or an attack by a "hacker" and this type of loss might not be covered under your typical policy. Your broker should work with you to explain what risks are not covered in your existing policies and should identify alternatives that help you to finance your losses. As an extra benefit, some of these policies also provide security assessments that will help you to understand your current state of readiness. |
The Board of Directors has asked me to create a disaster recovery plan for my company. Where do I start?
The first step in developing a disaster recovery plan is to determine which areas of the company would create the largest loss if they sustained damage. For example, if you have two plants making the same product and are only running at 50% capacity then a loss may not be significant. However, if you have only computer system running your entire company the loss of that system may be catastrophic. The preparation of this analysis is called a business impact analysis. Some insurance brokers, and other outside companies, can help you to prepare a business impact analysis and to develop a systematic approach to managing the wide variety of activities involved in a disaster recovery plan. You can also find good information at http://www.contingencyplanning.com. |
I'm being asked to review a variety of contracts including leases, sales contracts and manufacturing agreements. What should I be looking for?
Insurance requirements are generally detailed as part of the contract. You should determine what limits you are required to purchase and what limits your partner must carry. In some cases you may want to request to be named as an additional insured on the policies of your partners. Your broker can help you determine common insurance requirements. You and your attorney should also review the indemnification and warranty sections to ensure that you are not assuming unanticipated liabilities. |
How does Enterprise Risk Management differ from what I am doing now?
In most companies responsibility for identifying risk is spread throughout the company resulting in some areas that do not receive enough attention and potential duplication. |
What is Enterprise Risk Management?
There are many definitions of enterprise-wide risk management (ERM). Our definition is:<BR>ERM is the process of bringing together all parts of a company to enable comprehensive identification, prioritization, mitigation, financing and monitoring of risk. |
What is the difference between insurance management and risk management?
Insurance management involves selecting the best mix of insurance limits and deductibles to handle traditional exposures such as damage to property, lawsuits and employee injury. Risk management is a process where risks are evaluated based on potential frequency and severity before selecting from a variety of loss control and loss financing alternatives. |
