Obesity Classified As A Disease – This Presents New Problems For All Employers

The American Medical Association (AMA) has recently chosen to classify obesity as a disease instead of a medical condition.  This new classification may have implications for all employers.  Now carrying the label of disease, obesity suddenly becomes a major risk liability for employers on many different fronts.  Employers now must better understand what this means vis-à-vis the ADA Amendment,  federal disability law and the Equal Opportunity Employment Commission (EEOC)law suits.  And keep in mind that since one third of all Americans are considered obese, with another one third considered overweight, this dramatically increases the number of people that can now be recognized as disabled with rights under the 2008 amendments to the Americans with Disabilities Act. 

In defense of this new classification, the AMA says that recognizing obesity as a disease will likely help change the way the medical community tackles this very complex medical issue.  And this could offer hope to those that suffer from this disease.  And while the AMA’s new definition does not carry the force of law, it might make it easier for an obese employee to argue that he or she is disabled.  Disability law says that an impairment is something that affects a major life function.  This could include walking or sitting.   Next up is the EEOC.  Will they change their definition of disability to include limitations caused by obesity?   Currently their definition of disability due to obesity is limited to the category of morbidly obese. 

One more area of concern for employers is the federal disability law.  Under this law, employers’ actions in dealing with an obese employee could come back to haunt them.  An employee who isn’t morbidly obese and who isn’t limited in any major life functions might still qualify as disabled if the employer treats him or her as impaired.  A worker who is passed over for promotions or hiring because of obesity, may be able to show that he was denied work because the employer acted in a way that indicated that the employer considered him impaired.

So what should a business owner do to protect the company from the risk of lawsuits and disability claims due to obesity?  Start by getting a clear understanding of whether or not your company falls under the rules of the ADA amendment.  If so, then keep in mind that by their definitions, you may have a disabled person working for you and you may need to modify the work environment to accommodate them.  Next, remember that if you don’t treat the person as disabled in terms of the work that you give them or the promotions that they receive, then you will have made a step in the right direction in terms of making it harder for them to prove that they are disabled because of the way that they are treated in your company.  And if you don’t carry workers compensation insurance, then get that taken care of immediately.   Last of all, make sure that you have purchased and have in force, an Employment Practices Liability Insurance(EPLI)  policy and be sure that your protection provided by this insurance policy will extend to discrimination against obesity.  Treat all of your employees fairly in all hiring, firing and promotions, without regard to physical attributes and you will have gone a long way toward protecting your business.  But bear in mind that you must stay on top of changes to rules and definitions like this or you may suffer damages for ignoring them.

At Clinard Insurance Group, located in Winston Salem, NC, we insure thousands of businesses all across North Carolina, South Carolina, Georgia, Tennessee and Virginia.  We want all insurance buyers to be educated and informed consumers.  If you would like to discuss an Employment Practices Liability Insurance (EPLI) policy, or any other insurance need for your business, please give us a call.  We will take as much time as you need to help you understand your risks and your options for insurance protection.  You can reach us, toll free, at 877-687-7557.

Painting Contractor’s Insurance – Don’t Forget The Workers Compensation Policy

NC Painter’s insurance plans can be found in many different forms. One coverage that every painting company with employees should have is workers compensation. In North Carolina, the law states that if you have fewer than 3 employees you don’t have to purchase workers compensation insurance. But what this rule doesn’t tell you is that not buying a policy could wipe you out.

In NC, the workers compensation rules and regulations are controlled by the NC Rate Bureau. And the rules do give you an out when it comes to buying a workers compensation insurance policy if you have less than 3 employees. In fact, there are no real teeth in the law that will catch and find employers who have 3 or more employees who also don’t purchase a workers compensation insurance policy. So, yeah, you could go years without purchasing a workers compensation policy for your painting business. But that would be a very dangerous choice. Here’s why:

Although the law may not require that you actually purchase a workers compensation insurance policy, it will require that you pay all of the claims yourself just as if you were the insurance company. Workers compensation benefits in North Carolina are statutory and claims are governed by the NC Industrial Commission. That means that exactly how much gets paid for each type of illness or injury has already been determined by state law. Therefore, if you are paying out of your own pocket for a claim, you will not have the opportunity to determine how much you are going to pay. And in the case of a long term disability the amount you might have to pay out is staggering.

So, using the loophole in the law to avoid buying a workers compensation policy only gets you out of paying the policy premium. In fact, it puts you in the unenviable position of being the insurance company and on the hook for all claims. And these claim costs can be enormous. Imagine coming up with $100,000 to pay for injuries that resulted in permanent disability, then paying disability payments for years after that for one of your employees. Pretty scary huh? So even if work comp insurance seems expensive, you should realize that purchasing it is a no brainer because going bare means you are pretending to have the assets of an insurance company. For most painters, that just isn’t the case.

At Clinard Insurance Group in Winston Salem, NC, we specialize in helping painters with their insurance needs. If you have any questions about your general liability insurance, your workers compensation insurance, your business auto insurance or any other insurance policies, please call us toll free at 877-687-7557 or visit us on the web at www.LowRatesForPainters.com.

The source information for this blog can be found in articles located at the blog found at www.InsuranceAnswerGuy.com.

NC building and construction contractors – Here’s just what those uninsured subcontractors will do to you and how you can prepare yourself to minimize

It is a fact of life in the construction business. Almost all construction contractors, from the general contractor all the way to the landscape contractor will occasionally have to hire an uninsured subcontractor. There are hidden costs to this arrangement but knowing them in advance can help you prepare for the costs and minimize the damages to your insurance program.

It’s helpful to understand, from the beginning, that insurance companies don’t like for their clients to hire uninsured subcontractors. The reason is that they feel that your control over a subcontractor is much reduced and therefore losses are more likely. If they are uninsured, then the exposure for those losses is pushed on to your insurance company. And that makes you a less attractive risk for your insurance company.

So hiring uninsured subs causes two big problems that can generate increased insurance costs for you. Both are things you can prepare for if you do your homework in advance. And by taking the steps I will outline below, you can possibly reduce the cost to zero for each of these problems. And remember, if you use a subcontractor that is insured, be sure to take the appropriate steps to obtain a valid certificate of insurance. To read more about what you need to know about insurance certificates, please click here.

The first problem that uninsured subs will cause for you is increased insurance premiums on your general liability insurance policy and your workers compensation insurance policy. This is a stealth increase because if you don’t take steps in advance to protect yourself, then by the time you find out how much your subcontractor costs you, the sub may be long gone and your chances or wringing it out of the him or her will be nil. If you are unable to produce a valid certificate of insurance on a subcontractor, then when your policy is audited by the insurance company at the end of the policy term, they will include as payroll, the full amount of cost that you paid to the uninsured subcontractor.

You can defend against this problem by withholding from the amount you pay the uninsured subcontractor an amount equal to or greater than the amount you will be charged by the insurance company at audit. To understand how much to charge, you should contact your agent and find out the rate per $1000 of payroll for the subcontractor’s classification on both workers compensation and general liability insurance. I would suggest that you add an amount over the rates you face to cover your administrative expenses of handling this transaction.

The second problem caused by uninsured contractors has to do with the insurance company’s reaction to finding out you have used them. As I mentioned earlier, insurance companies do not like for their clients to utilize uninsured contractors but their appetite for them will vary. Check with your agent first and find out just what percent of payroll or gross sales paid out to uninsured subs will be tolerated by your insurance company. Some may not tolerate any and still others may be willing to let you go as high as 50%.

It is important to know in advance how high you can go so that you don’t break your insurance company’s rules unknowingly. If they find out on audit that you have been using more uninsured subs than their underwriting guides allow, they may cancel your policy or take away discounts that will result in much higher rates for you. In this case it is better to ask permission first then to ask for forgiveness later.

Remember, when you deal with an uninsured subcontractor you are now allowing them to use your insurance for their risks. Over the long term this is not advisable because they could cause a loss that is so catastrophic it might destroy your ability to get insurance at all, or it may create a high experience modification factor on your workers compensation policy that might cost you a lot of money for the next 3 years. It is always best to deal with subcontractors that have their own insurance.

Clinard Insurance Group, in Winston Salem, NC specializes in helping small contractors of all types all across North Carolina. If you would like a second opinion on your business insurance or if you need help with your general liability policy or your North Carolina workers compensation policy, please feel free to call us, toll free at 877-687-7557 or visit us on the web at http://www.thecontractorshelper.com/.

NC Used Car Dealers – Don’t Forget About Workers Compensation Insurance

At Clinard Insurance Group, in Winston Salem, NC, we specialize in helping used car dealers with their dealers insurance policies. And 95% of the time, when a dealer calls us for insurance, the only policy on his mind is the NC garage insurance policy. But there is another, very important policy that all dealers must consider. And leaving this one out can do a lot more than just ruin your day. It could wipe out your business.

Why so few used car dealers remember to purchase workers compensation insurance is a mystery to me. It probably stems from the nature of their employees since many hire their salespeople as independent contractors. But while hiring them as independent contractors may change how taxes are paid, it will not allow the dealer/owner to avoid paying the losses under North Carolina Workers Compensation law.

In NC, purchasing workers compensation insurance is voluntary if you have 3 or fewer employees. And you don’t have to count your independent contractors as employees either. But here’s the rub. Just because you don’t purchase the insurance, doesn’t mean you are safe from the losses. In fact, not purchasing the insurance policy means you are putting your own assets on the line to pay all claims required by the NC workers compensation statutes. So, if your employee is injured or killed on the job, then your business will have to pay the statutory benefits required by law. Essentially, you have chosen to put yourself in the position of the insurance company for all losses. And a big loss could put most small used car dealers out of business.

Insurance is a good deal for the consumer any time that the consumer can trade a small, affordable, known loss – in this case the workers compensation premium, for a larger, unknown and possibly catastrophic loss. If you own a used car dealership and you have anyone besides yourself working for you in any capacity at all, you owe it to yourself to get a price on a workers compensation policy. You may be surprised at how affordable it is. In this case, going bare is a huge risk. If you are going to go without insurance, please recognize that you have only chosen to shift the risk of loss to yourself in exchange for not paying an annual workers compensation premium that is probably very affordable for you.

At Clinard Insurance Group in Winston Salem, NC, we want all insurance consumers to be educated consumers. If you would like help with your dealers insurance, or if you want a workers compensation quote, please call our office, toll free at 877-687-7557 or visit us online at www.clinardinsurance.com.

The source information for this article was taken from data found at www.insuranceanswerguy.com.