Lowering My “MOD”

Lowering My “MOD”



Do you know what your “mod” is and why it’s important for determining how much you pay for workers’ compensation insurance?

You should, because that knowledge can help you reduce your cost of work comp — or at least understand why your cost went up.

In work comp, each insured business gets its own experience modification rating, more commonly known as the “mod.” This rating, usually expressed in a number either less than, equal to or greater than 1, provides either a discount from or an addition to the rate an average business of that class of business would get.

The standard insurance rate for your type of business is multiplied by the mod to determine your actual premium. So you can see that the lower your mod, the lower your insurance premium. When it comes to your mod, lower is always better.

The complex formula for determining your mod is set by the Michigan Rating and Inspection Bureau. It takes into account various rating factors, especially your claims experience, payroll and premium. Generally speaking, the more payroll you have and the fewer claims, the lower your mod.

The most important thing to remember is that your mod is based on the cost and safety record of your business and is, therefore, under the control of your business.

One of the most important things you can do to reduce your mod from year to year is to improve workplace safety and reduce claims. The severity and frequency of your claims directly impact whether your mod rises or falls from year to year.

Some analysts believe that a history of small, recurring claims can have a greater negative impact on your mod than one large claim. Why? Because it suggests that a continuing problem exists at your business. Which is why you need to pay special attention to repeat accidents.

Taking every reasonable step to improve the safety environment of your workplace can pay off in a lower mod and the resulting lower work comp premium.

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Let Me Protect Your Business Against Data Breach

With the trend toward paperless data filing, nearly all companies and healthcare practices that handle or store any personally identifiable information, customer and patient OR employee data are at risk for a data breach. The possibility is especially high for businesses that routinely deal with credit cards, online orders, patient medical records, Social Security numbers and other sensitive information. 

Interesting Facts About Data Breach

• Data Breach is the fastest growing crime in America
• The average cost to mitigate damages is approximately $120-$300 per compromised record!
• Public relations costs to help in recovery from this type of crime are rarely considered until after the fact
• Customers and employees may require ongoing credit monitoring as peace of mind that they are safe
• A notification mailing will be required
• A breach can cause an interruption in business, the requirement to assess liability, obtain legal defense, potential monetary settlements, and a need for crisis management
• Because data breach occurrences are becoming more common, there are now regulatory requirements that need to be satisfied when a breach occurs. The cost to satisfy these requirements can be significant to any business owner. The Hartford feels so strongly about the small business owner’s responsibility to their employees and customers, that they have developed data breach coverage like no other I have seen so far. For those business owners who take their employee and customer relationships seriously, you may be interested in the coverage that The Hartford offers. If your line of business is within The Hartford’s underwriting appetite, with their Data Breach coverage you could have: • The peace of mind of knowing you have the insurance coverage needed to help pay for certain response expenses necessary to comply with notification regulations and to help avoid potential lawsuits that might be brought against you as the result of a breach; and • The confidence that services are available to help mitigate any damage to your business’ reputation and help quickly restore any loss of customer, patient or employee trust.

Should you be thinking about Data Breach coverage for your business? If you store employee’s and/or customer’s personal information the answer is YES!

Data breach takes toll on Target profit...

http://usat.ly/1fqFjRF

Tough as the holiday season was for many retailers, Wednesday's fourth-quarter earnings report proves that few had it tougher than Target, which was bedeviled during the peak shopping season by one of the largest-ever retail data breaches
That breach cost the company $61 million in the fourth quarter — $17 million in net expenses, and counting a $44 million insurance receivable. That includes paying the card networks to cover losses and expenses related to reissuing cards, lawsuits, government investigations and enforcement proceedings.
Target says it doesn't yet have an estimate of the full cost of the breach. Avivah Litan, a security analyst at technology firm Gartner, puts the costs of the breach between $400 million and $450 million.
The rest of the company's long-awaited fourth-quarter results tell a tale of woe: Net income fell 46% to $520 million, or 81 cents a share, from $961 million, or $1.47, a year earlier, the Minneapolis-based company reported.
At the same time, the discount retailer said that sales fell 5.3%, as many customers were leery about shopping after the breach. Revenue at stores open at least a year fell 2.5%.

New Cards, New Look, New Year!

 

Homeowners insurance risk warnings for Halloween celebrations issued

As property owners add their decorations and prepare for parties this weekend, there are certain cautions from the industry.

As Halloween approaches, people have started to decorate their homes in preparation for trick or treaters and for parties that will be held this upcoming weekend (the last one before the holiday), but the industry is warning that there are certain risks involved and that homeowners insurance should be properly checked and understood before proceeding.

This way, it can help to avoid possible problems and misunderstandings with insurers.

It can also help homeowners insurance customers to better understand potential liabilities associated with these celebrations. Even hanging decorations outside your property that are designed to give visitors an amusing fright should be done with caution, say experts. The reason is that there are many risks that are often not considered and that grow into preventable problems.

There are a number of homeowners insurance risks connected with Halloween decorations and celebrations.

The homeowners insurance industry is warning about everything from hanging decorations to handing out candy. The reason that handing out candy can be associated with a risk – regardless of whether you’re doing it yourself or leaving it out for trick or treaters to help themselves – is that there can be liability issues associated with having people on your property, particularly if they should slip, trip, fall, or otherwise hurt themselves.
An unsuspecting person celebrating Halloween and handing out candy could easily find themselves the victim of a lawsuit if a person claims that they hurt themselves on your property because it was too dark, because the pathway was uneven, or for other reasons. Typically, in those cases, homeowners insurance coverage will actually pay for a policyholder’s defense – which many people don’t actually know.
However, it is important for home insurance customers to read and understand their policies because there is typically a limit to the amount of coverage that will be paid out. A small “no fault medical” claim may not be a problem, but for larger injuries or extensive lawsuits, even a large sum, such as $100,000 in coverage, may not be enough.
http://www.liveinsurancenews.com/homeowners-insurance-risk-warnings-halloween-celebrations-issued/8530206/

Protect Yourself: Professional Liability Insurance

 

Whatever your profession, protecting yourself with professional liability insurance is not just a smart thing to do, but a necessity in today's litigious society. You have worked hard and put in years of education and work to get where you are in your career. Without the right coverage for potential negligence suits, you could lose everything you have worked so hard to achieve.

What It Covers

General liability insurance can protect you from a wide variety of claims against you and your business, but will not protect you from the type of lawsuit that can result from the simple errors we are all capable of making. Nor will it protect you from claims made against you that are unfounded. Remember that even if there is no truth to the accusations against you, you can still find yourself in court defending yourself and your professional reputation against them at a very high cost to you.

Those who provide a service or advice, or in any other way use their knowledge and experience to help others are in need of professional liability insurance. This includes things like errors and omissions insurance and malpractice insurance, both of which are types of professional liability. The similarity is that the types of lawsuits brought against professionals are usually based on actions, advice, or services that may not have caused property damage or direct injury but nonetheless can in some way be shown to be a result of the negligence of the professional.

Don't Take Chances

You do your best to provide good advice, to make sure that everything you do and offer to your clients is as accurate and helpful as possible, but everyone makes mistakes. And even when you didn't make a mistake, all it takes is someone who is unhappy with the outcome to turn on you and put the blame at your feet. These lawsuits can cost professionals incredible amounts of money, even if you win. Having to pay out on such a lawsuit can easily bankrupt even the most well off professional.

Professional liability insurance provides you with the means to defend your good name in court against accusations as well as to pay out on settlements when you are found to be negligent. Without it, you could find yourself not only out a lot of money, but your reputation could be on the line because you are unable to fight an unfounded lawsuit. Don't take chances; protect everything you have worked so hard for with the right professional liability policy for your industry. Your insurance agent can help you to ensure you have the coverage you need to have complete peace of mind.

INDEPENDENCE DAY, JULY 4TH, 2013

INDEPENDENCE DAY, JULY 4TH, 2013

It's the middle of summer, and that makes this holiday the perfect time for a long, relaxing day of fun and frolic, topped off by a night of fireworks to commemorate the rocket's red glare back when our forefathers were fighting for their independence.

In the spirit of the day, I did a little checking about the history of Independence Day. Guess what? They didn't tell us the whole story in grade school! In case you're interested, read on to find out what I discovered:

The original resolution (to cut the apron strings from Mother Britain) was introduced to the Continental Congress on June 17, 1776.

Then Thomas Jefferson and a willing committee put their heads together to polish up a formal writing for the grand announcement.

The actual resolution was approved on July 2 but the Declaration of Independence (a separate document) was adopted on July 4, 1776.

It took days, weeks, and in one case, years before all the signatures on the Declaration were in place. Thomas McKean didn't get his signature on the page until 1781!

Exactly one year after the Declaration was approved, Philadelphia held a huge birthday party for the infant republic. But the first official (by legislative act) celebration was held in 1781 in Massachusetts.

OK, friends, class is over. Eat, drink, and be merry! Independence is worth celebrating!