Sackrison Insurance Agency | Napa

This past year has been one of vast extremes for business owners. Depending on the industry, it seemed that 2020 was either an unexpected boon, or a total disaster for the majority of businesses.

For those whose companies experienced severe interruption, whether voluntarily or due to state mandates, questions quickly arose about whether their business interruption insurance coverage would step up to provide relief.

Unfortunately, most business owners ended up disappointed as they discovered how this type of coverage works. In today’s article, we will take a look at what type of interruptions are typically covered, and how to possibly be better prepared with appropriate coverage for the future.

If you own a business, you probably are familiar with commercial insurance. There are optional coverages available to choose from depending on the types of perils your specific business faces. Your agent/broker has likely discussed how to customize your commercial policy.

One type of coverage available to business owners is comprehensive multi-peril commercial coverage. Business interruption insurance is one of the options you have to choose from within this type of policy.

So, how exactly does business interruption insurance work?

Your policy only kicks if your business sustains physical damage that is caused by a covered peril. So if your policy covers water damage, theft, fire, vandalism, and similar perils, the insurance will cover loss of income and/or rental costs while your place of business is being restored.

Most policies, however, have exclusions for losses due to contamination caused by viruses and bacteria. These exclusions stemmed from the SARS outbreak in 2003, after which most insurance providers made a standard exclusion for viral pandemics, requiring evidence of physical damage when a claim is made.

Some insurance companies may plan to offer business interruption insurance that will include optional coverage for pandemics such as Covid-19.

However, you cannot expect that coverage to protect you from our current situation. If you are worried about the possibility of facing similar interruptions in the future due to another pandemic, you will want to be watching for a provider who offers this type of coverage.

There have been many lawsuits across the country involving businesses and their insurance providers concerning business interruption. In the vast majority of cases, the insurance provider comes out on top, thanks to the exclusions in the wording of the policies.

There is no doubt that 2020 was an exponentially tough year for insurance providers as well as business owners.

Between the California wildfires and the Coronavirus, countless businesses and homeowners were affected. This, of course, puts a strain on the insurance companies as they struggle to pay out what is due without going broke themselves. This is where it is important for you, as a customer, to know the integrity of your provider.

​If you have questions about the topics we discussed today, give me a call. I’d love to assist you as you seek to become more informed about these issues.

With the rise in unemployment rates and a great number of people working from home, workers’ compensation claims have gone down this past year. Not only are there fewer workers getting hurt on the job, but some employees are apprehensive to make a claim if their job prospects are uncertain.

Though the number of workers’ compensation claims have gone down in general, there has been a change in the types of claims being made.

On May 6, Governor Newsom’s executive order, N-62-20, came into effect.

This order presumed that workers who contracted Covid-19 between March 19 and July 5, under certain circumstances, had contracted it while on the job.

These workers would then be considered eligible for workers’ compensation benefits. The order expired on July 5, but on September 17 California legislature passed Senate Bill 1159. This bill protects workers who may have contracted the virus while on the job after July 6, and remains in effect until January 1, 2023.

According to the bill, certain employees who test positive within 14 days of working on the job site can stay home while benefiting from workers’ compensation, hopefully reducing the spread of the virus.

This, of course, only applies to those whose job site is not at their own residence. The bill covers not only first responders and medical workers, but also those who do deliveries, grocery store employees, warehouse workers, and more.

Despite the new laws being made regarding Covid-19, not all of the claims are meeting requirements. Up to a third of the claims made are being denied for various reasons, such as lack of positive tests, refusal to be tested, or workers contracting the virus while working from home.

One interesting note to consider would be the varying costs due to claims from Covid-19 patients. The vast majority are fairly inexpensive, covering loss of wages for the 14 days that a worker stays home on quarantine.

A much smaller percentage, though, can cost employers up to hundreds of thousands of dollars. There are some patients, especially those with pre-existing conditions, who have required extended hospital stays and time in the ICU.

There is so little known about the long-term effects of Covid-19 for some, which could possibly turn into long-term care and higher costs for employers.

So what are some measures you can make as an employer right now?

● Prepare a written plan of how you are working to prevent the spread of Covid-19 in your workplace.

● Train employees and supervisors on how they can keep their workspace clean and safe from exposure to viruses.

​● Make sure your employees know what measures you are taking to protect them in the workplace.

● Remind employees of the common symptoms of Covid-19 and encourage them to seek medical help if they are experiencing those symptoms.
As always, feel free to call me with any questions you may have about insurance topics.

As an employee in California, what kind of coverage can you expect to receive from the workman’s compensation? Most workers know their medical bills will be paid if they are injured while on the job, but let’s take a look at some of the other ways this type of insurance protects you.

Temporary Disability

If you are injured or become ill on the job to the extent that you cannot return to work within three days of your injury/illness, worker’s comp can help partially replace your lost wages. A physician will need to verify that your injury or illness happened while on-the-job before your benefits are payable.

Permanent Disability

Should you become permanently impaired due to a work-related injury/illness, you may be eligible to receive permanent disability. The amount you receive depends on many factors including your age, the extent of your disability, what line of work you were in, and when the incident occurred. You will likely need an attorney as you pursue permanent disability benefits.

Supplemental Job Replacement Benefit

If you are permanently impaired due to a work related injury/illness and have not received an offer from your employer for alternative/modified work, you may qualify for this benefit. Supplemental Job Replacement helps pay for training skills, tuition, books, and other supplies as you seek another line of work.

Death Benefits

​If you die while on the job due to a work related injury/illness, not only will burial expenses be covered to a certain amount, but your dependents could receive support payments for a time. These payments usually are similar to what you would have received for temporary disability.

Not every work related injury/illness is covered, which we will discover in the following scenario:

Bert and Ernie both worked for Rubber Ducky Inc. Together they operated a machine that filled molds with hot rubber as a conveyor belt carried away cooled down duckies. Bert carelessly pushed several wrong buttons, causing the machine to malfunction, spraying hot rubber across the room, as cooled duckies flew in all directions. Both Bert and Ernie were severely burned, needing extensive medical care including skin grafts.

Both men had lab work done while they were hospitalized. Bert’s labs showed that he was under the influence of an illegal substance. His actions while at work had been careless due to the narcotics he had been taking.

Ernie’s labs, however, were clean. Burt spent three weeks recovering from his burns, after which time he was fired from his job at Rubber Ducky Inc.

Ernie received temporary disability payments during his weeks of recovery, before being welcomed back to his job.

If you have any questions regarding worker’s compensation insurance, and how it works for you as an employee, feel free to give me a call. It is important to know what your rights are as an employee in California, and what you should expect if you become injured or ill due to an incident while at work.

The main purpose of workers’ compensation is to cover the cost of medical bills and loss of wages should an employee get injured while on the job.

There are times, though, when heart disease, stroke, cancer, or other illnesses are contracted due to the work environment.

California’s workers’ comp system requires employers to provide benefits such as medical care and disability to employees who have suffered some of these illnesses due to occupational hazards.

The year of 2020 has demanded change from all of us, in both home life and the workplace.

Many who used to spend part of the day commuting are now set up to work in their own homes.

Yet there are still large numbers of folks who fit into the category of essential workers. These essential workers include a wide variety of laborers including first responders, police, and medical personnel, as well as people like the grocery store clerk, or your bus driver.

So, how does the coronavirus fit into the picture when it comes to perils in the workforce? If you are infected while on the job, will you be able to receive any benefits from workers’ comp?

Governor Gavin Newsom has recently signed a bill that will make it easier for some employees to receive help if they test positive with COVID-19.

Instead of putting the responsibility on the employee to prove the virus was contracted while on the job, the burden of proof falls on the insurance company or place of employment to prove that it was not.

The new rules apply if an employee tests positive with the virus within 14 days of performing at their workplace. The employer then has 30 days to rebut the claim.

This all sounds great for the essential workers, but most employers are not as thrilled.

The new rules were passed as an emergency bill, bypassing the typical starting date of Jan. 1, going into effect immediately. Employers now face rising costs of workers’ compensation insurance rates as claims are made.

This is happening during a critical time when California business owners are already struggling to keep people employed.

Both employers and employees are wondering if these changes are even necessary since the government has already put relief plans in place to compensate for lost wages due to the virus.

​If you have any questions about this topic, feel free to contact me. Whether you are a business owner or an employee, we can discuss how these changes are affecting the California workforce, and if the new bill is beneficial for you.

If you are in the process of starting your own business, purchasing worker’s compensation insurance is an important first step to take.

By law, Californian employers need to provide this type of liability insurance for their employees.

Let’s take a look at some facts concerning this type of insurance that are helpful to understand as an employer:

Do you plan to be the sole proprietor?

You may purchase workers’ comp for yourself, though it usually works best to just make sure you have your own health, life, and disability insurance policies. Discuss these options with your insurance provider to weigh what type of policy best fits your needs.

If you do plan to hire employees, you will need to search for a carrier who offers workers’ compensation insurance with good rates, coverage, and ease of access to claims adjusters.

It can be helpful to find a provider that is familiar with your type of business, as well. Finding a local broker can be a huge asset as you search for the best carrier.

They do the work of researching which agencies would work well with your type of business, and have the lowest rates with the best coverage. Workers’ compensation insurance rates are not regulated by the state, unlike some other types of insurance.

This makes it even more important that you shop around for a good carrier to fit your business’s specific needs.

Once you purchase the coverage, your next step will be to post that information in a very noticeable place. You will need a large and conspicuous poster with information showing what coverage you have for workers’ compensation, and where to receive medical care for work related injuries.

If you do not have this information posted, you could face a fine of up to $7,000. As you hire new employees, you are also required to give them a workers’ compensation pamphlet with information about their rights.

Providing this type of coverage for your employees is legally your responsibility, therefore, you can not ask your employees to help pay for it. This insurance does not come out of their wages.

What you pay for your premium will depend on what type of business you run, and your past safety record. Obviously, if you own a mechanic shop, the risks of work related injury will be much higher than if you run a shop that sells musical instruments.

If you have a past history which includes claims for work related injuries, that will cause your premium to be higher than if you have a clean safety record.

If you have any questions regarding the state requirements for employers, or any other thoughts on this topic, please give me a call.

​Providing workers’ compensation insurance is an important responsibility for employers, and I’d love to help you find the coverage your business needs.

Herman and Lilly’s security company had been up and running for several years before the need arose for hiring an employee.

Lilly took on the project of interviewing applicants, hoping to find someone with experience. The first few prospects were quickly dismissed, but when Eddie Truman stepped into the small office, Lilly was charmed.

Clean-cut, well built, with an air of self-confidence, Eddie had an impressive resume of experience with electronics and installation. Lilly hired him on the spot. Even Herman took to the young man, pleasantly surprised with how competent he was with the tasks assigned to him.

All was going swimmingly… until the day Eddie was given the job of installing surveillance cameras in a large home on Mocking Bird Lane.

The owner let Eddie in before leaving briefly to grab something at his office. Eddie got to work with wiring and cameras, moving from room to room, setting up equipment for installation.

Stepping into the master bedroom, Eddie noticed a handsome, gold watch atop a dresser. He looked closely, noting the expensive brand. There was a bracelet near the watch that looked valuable, as well.

The temptation was too strong. Eddie slipped the watch and bracelet into his pocket before continuing his job.

The following day, Lilly received a call from Dr. Dudley. He went into great detail, explaining how he was certain that the person who installed his security system had stolen a very valuable watch and piece of jewelry from his home in the short time Dr. Dudley had stepped out.

He distinctly remembered placing his watch on top of the dresser next to his wife’s bracelet before changing out of his work clothes, previous to letting Eddie into the house.

When he went to retrieve his watch the following morning, both it and the bracelet were gone. Mrs. Dudley was out of town, and no other person had entered his home since Eddie had been there.

Lilly was sure there had to be a plausible explanation. She called both Herman and Eddie into the office to inquire about the situation. As soon as she mentioned the watch, Eddie’s eyes narrowed and he ran from the office, never to be seen again.

The watch had been a custom-made Swiss watch, bought as an anniversary gift, worth $10,000. The bracelet had been a family heirloom estimated to be worth $4,000.

Herman and Lilly realized their mistake in trusting too quickly. Their current insurance policy did not cover the property of clients. Herman and Lilly paid out of pocket to cover their customer’s losses.

​Have you considered Commercial Crime Insurance? There are many coverages available including these few choices:

• Employee dishonesty
• Forgery or alteration
• Computer fraud
• Money orders and counterfeit money
• Property of clients

​If you think your business could use protection from these types of crimes, a custom Commercial Crime Insurance policy is what you need. Give me a call today to discuss the types of coverages available for your business.

The majority of the population has been affected by identity theft in some way.

Most of us, if we haven’t directly had our own identity stolen, know of someone who has. You’ve probably received emails from a company you had previously done business with, notifying you of compromise due to cybercrime.

Your personal information may have been stolen, and you have no idea if or when someone will use that information against you.

Did you know that you can purchase an endorsement for your homeowners or renters insurance that will help cover some expenses in case of identity theft?

This is a topic you will definitely want to consider and discuss with your agent/broker.

Helmer Boyde was a regular guy who lived in a middle-class neighborhood. He was an essential worker, putting in 9-hour days, six-days-a-week. When Helmer finally settled into his recliner after dinner each evening, he browsed the local sales pages for antique tools.

He liked collecting the old, hand-forged axes and hatchets, vintage saws, and similar handcrafted contraptions.

One evening Helmer found a sale he just couldn’t pass up. It was several states away, but the seller offered to send the tool if Helmer signed up for a specific payment method.

He typed in the typical personal information required for such transactions, and a password that he used for all of his accounts. Helmer never did receive that tool he thought he had purchased.

Instead, he began to receive calls from creditors he didn’t know he had, and bills for things he hadn’t purchased. Things went downhill so quickly, it took Helmer by complete surprise.

He remembered that when he had purchased his homeowners insurance, his agent had talked him into an identity theft endorsement.

His agent had dealt with so many customers who encountered some type of identity theft, it was something he strongly encouraged everyone to add to their renters and homeowners policies.

Helmer contacted his agent and quickly received helpful advice on how to proceed. The insurance didn’t cover the actual purchases that happened as a result of identity theft, but it did pay for a fraud specialist who worked on getting to the root of the problem.

It also took care of replacing government-issued IDs, the cost of any criminal charges or lawsuits up to the policy’s limits, attorney’s fees, etc.

Helmer spent many hours trying to recover most of the money he had lost by calling the creditors and explaining his dilemma. The insurance coverage helped with much of the extra costs involved, for which he was grateful.

If you haven’t considered the importance of this type of insurance, I encourage you to check with your provider to see if it is offered as a part of your basic homeowners/renters policy.

​If not, check to see how much an endorsement would cost to add on as a rider. Identity theft can happen to anyone. As always, be prepared.

Herman and Lilly’s security company had been up and running for several years before the need arose for hiring an employee.

Lilly took on the project of interviewing applicants, hoping to find someone with experience. The first few prospects were quickly dismissed, but when Eddie Truman stepped into the small office, Lilly was charmed.

Clean-cut, well built, with an air of self-confidence, Eddie had an impressive resume of experience with electronics and installation. Lilly hired him on the spot. Even Herman took to the young man, pleasantly surprised with how competent he was with the tasks assigned to him.

All was going swimmingly… until the day Eddie was given the job of installing surveillance cameras in a large home on Mocking Bird Lane.

The owner let Eddie in before leaving briefly to grab something at his office. Eddie got to work with wiring and cameras, moving from room to room, setting up equipment for installation.

Stepping into the master bedroom, Eddie noticed a handsome, gold watch atop a dresser. He looked closely, noting the expensive brand. There was a bracelet near the watch that looked valuable, as well.

The temptation was too strong. Eddie slipped the watch and bracelet into his pocket before continuing his job.

The following day, Lilly received a call from Dr. Dudley. He went into great detail, explaining how he was certain that the person who installed his security system had stolen a very valuable watch and piece of jewelry from his home in the short time Dr. Dudley had stepped out.

He distinctly remembered placing his watch on top of the dresser next to his wife’s bracelet before changing out of his work clothes, previous to letting Eddie into the house.

When he went to retrieve his watch the following morning, both it and the bracelet were gone. Mrs. Dudley was out of town, and no other person had entered his home since Eddie had been there.

Lilly was sure there had to be a plausible explanation. She called both Herman and Eddie into the office to inquire about the situation. As soon as she mentioned the watch, Eddie’s eyes narrowed and he ran from the office, never to be seen again.

The watch had been a custom-made Swiss watch, bought as an anniversary gift, worth $10,000. The bracelet had been a family heirloom estimated to be worth $4,000.

Herman and Lilly realized their mistake in trusting too quickly. Their current insurance policy did not cover the property of clients. Herman and Lilly paid out of pocket to cover their customer’s losses.

Have you considered Commercial Crime Insurance? There are many coverages available including these few choices:

• Employee dishonesty
• Forgery or alteration
• Computer fraud
• Money orders and counterfeit money
• Property of clients

​If you think your business could use protection from these types of crimes, a custom Commercial Crime Insurance policy is what you need. Give me a call today to discuss the types of coverages available for your business.

"America has been the ideal country for creative, independent entrepreneurs.

If you are playing around with the idea of starting your own business using skills such as roofing, painting, plumbing, piano tuning, landscaping, or something completely unique to you, this is the type of insurance you will need.

Too many enthusiastic entrepreneurs begin their dream job only to realize too late that an artisan contractors insurance policy is one of the first things that should be purchased before launching their business.

Brock had always known that he wanted to be his own boss. He loved the flexibility of planning his schedule as he built up a lawn care business as a young teen.

After Brock graduated from high school, he purchased a pick-up truck, trailer, and added to his supply of landscaping equipment.

He had the minimum auto insurance policy that was required by the state, of course, and planned to get his tax ID number, business insurance, and whatever else he needed in the near future. After all, he had never run into any problems during his past three years of mowing and weed-whipping as an after-school job.

Accidents don’t wait to happen, though, and the first time he took his new truck and trailer out with all his equipment, it happened.

Brock was pulling into his customer’s uphill driveway when the trailer came loose, barreling back down into a retaining wall and snapping off a tree.

Thankfully, nobody was hurt, but Brock quickly realized that it doesn’t take much going wrong to cause a business to go under.

He paid out of pocket to replace the tree, have the retaining wall repaired, and fix his trailer. Though the cost set him back a few thousand dollars, he was able to recover and thrive in his new endeavor.

Brock’s insurance agent introduced him to artisan contractors insurance before anything else could go wrong.

If your dream job sounds like it fits into the artisan contractor category, here are some of the coverages you can use to customize your policy:

General Liability protects you in case you cause bodily injury or property damage while doing your job. Lawsuits aren’t fun to face without this coverage, and Brock could certainly have put it to use after his accident.

Business Property Insurance covers everything from your tools to the building you run your business out of. Perils such as theft, vandalism, fire, etc. are covered under this part of your policy.

Commercial Auto Insurance is an option if you use a vehicle while running your business.

Workers Compensation is a must if you have other people under your employ in case they happen to be injured while on the job.

​Your agent/broker can give you more options to fit the needs of your particular business. If you don’t have a local insurance provider, give me a call. I can help you customize a policy to protect your business.

You’ve already got all of the required insurance policies such as homeowners, auto, and health insurance. Maybe you even have a life insurance policy.

But have you ever really considered whether long-term care insurance would be beneficial to you?

I’m going to go over some statistics that just might make you ponder how prepared you and your family are for the later years of life.

Whether you are thinking about your personal needs or those of your parents, here are some facts to consider as you navigate life after middle age.

As difficult as is it to accept, most of us will end up needing help with daily tasks as we age. Things like bathing, using the toilet, getting dressed, feeding ourselves, getting in and out of bed or chairs become difficult or impossible without help.

According to the National Health Care Data, these are the top 10 reasons that bring about the need for long-term care:

• Broken bones
• Recovery from an illness, injury, or surgery
• Rehabilitation after a hospital stay
• Dementia/Alzheimer’s disease
• Multiple sclerosis
• Parkinson’s disease
• Heart disease
• Strokes
• Head injury, often from a fall
• Obesity or chronic/terminal medical condition

The average age of a care recipient is 69.4 years. It is recommended that you look into purchasing a long-term care policy after your 60th birthday.

Chances of you needing long-term care before you turn 60 are very slim, but by the time you turn 65, your odds greatly increase. An estimated 70% of people over 65 will need some type of long-term care.

Many people mistakenly expect that the government will take care of their needs as they age. If you are depending on Medicare or Medicaid, be prepared for disappointment.

Medicare is not set up to help with long-term care, and Medicaid only chips in once your assets have been sufficiently diminished. (Which won’t take long, if you are not prepared!)

The average annual costs for long term care options in the state of California in 2019 looked like this:

• Homemaker services $64,000
• Home health aide $64,000
• Assisted living $54,000
• Nursing home, semi-private room $105,000
• Nursing home, private room $127,000

It doesn’t take long for a savings account to go from a hefty nest egg to an empty nest, then houses and properties get sold to pay for the extra expenses.

These are a lot of facts to take in, and they are not the most pleasant to think about. It doesn’t need to be such a burden.

With a long-term care policy, you can rest at ease that your life’s work won’t get depleted should you require personal care in the future.

The investment you make now in a good policy may make all the difference in providing future financial security for you and your loved ones.

​I can help you find a good provider. Call me to discuss long-term care insurance.