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Insuring Your Rental Home or Apartment Complex

Joseph Coupal - Tuesday, March 12, 2019
Tristate Business Insurance - VA, MD, DC

Whether you are a landlord of a small one to four family dwelling or a larger apartment complex, there is a very important insurance coverage you should probably consider and it doesn’t even cost that much; its called “Personal Injury Liability". Many insurance agents are not familiar with true landlord exposures and may not even offer this optional coverage to you.  Personal Injury Liability on a landlord or business owner’s insurance policy covers “wrongful acts.” Wrongful acts sounds like a harsh term since most of the potential acts are usually committed in error (not intentionally) or not committed at all, but perceived to be by a tenant. These potential wrongful acts can be one or more of the following:

  • Wrongful eviction
  • Discrimination
  • Slander
  • Libel
  • False arrest
  • Invasion of privacy, etc.

A personal injury liability endorsement on your home insurance policy (here in VA, MD, or DC) will add these coverage definitions to your existing landlord liability, which usually only covers basic scenarios such as trip and fall, or tenant property damage. Some insurance companies limit what is covered under wrongful acts, so be sure to check with your agent for coverage definitions by the insurance carrier you are written with when asking for this important coverage.

You should also try to reduce potential future claims of this sort by performing the following simple tasks:

  • Do not deny a tenant a lease on the basis of race, color, religion, etc.
  • Keep good records of all tenant leases and any interactions you have with them.
  • Make notes of conversations and follow up with a confirmation letter on what was discussed and the date.
  • Know your responsibilities as a landlord. Check the housing and urban development website portal for the State of NY
  • Never enter a leased rental without ample prior notice, unless it is an emergency.
  • Follow all eviction laws and guidelines.

When an eviction is necessary, document the reasoning, every step taken, and all relevant information for your legal protection. We can make this very easy via a simple call into your independent insurance service team here at TriState  Insurance

When to Make the Jump to Small Business Ownership

Darren Kincaid - Thursday, February 28, 2019

You've been thinking about it.  Dreaming about saying goodbye to your thoughtless boss or excessively burdensome system. Dreaming about putting your skill set to work for yourself! How do you know if you'll be able to successfully make the leap from employee to small business owner? Here are a few things you might want to think about and check-off in the affirmative. You might find it interesting that small business insurance is not on this list.  We'll close with the explanation why.

You are REALLY ready to be your own boss:

Transitioning from being employed to being your own boss means losing (for good and bad) established structure and expectations. There is some degree of comfort with known structure even though you find that structure increasingly hard to accept. Be honest about your own work ethic, organizational skills, and discipline level. How self-motivated are you? Your going to work harder as your own boss, have no doubt about it.  

You have savings:

Make sure you have at least six months' savings (the more, the better) before you say goodbye to a consistent income. Give some serious thought to how you will pay the bills if your new venture isn't successful right away or at all.

You can go back:


Are you in good standing with your current and former employers?  If yes, great.  Do not burn bridges on your way out.  Depending on the type of work you do, it may or may not be easy for you to find employment or pick up a job on short notice. But if getting back into your previous job or line of work would be relatively simple, it may not be that risky to pursue your great idea for a while, just to see what happens.

You're ready to sacrifice:

In the beginning, starting your own business might mean adjusting your lifestyle, working more than full time, or doing tasks you really don't enjoy until you're able to hire an employee. If all of that still sounds better than your day job, then you might be ready to pull the plug.

You can't keep up with demand:

A high demand for your service or product may be a strong indicator of your potential success. If your "side" project is slowly taking over your life, that's a good sign.

You have support:

If your spouse, friends and family are saying "go for it," take note. It doesn't necessarily mean that you're bound for success, but, at the very least, it means there's potential. Plus, having a support system means there will be somebody to pick you up and help get you back on your feet if things don't go as planned.

You're not the only breadwinner:

Having a spouse or family member who can help support you while you're pursuing your new venture might minimize the financial risk and make your decision a little easier. But don't take this kind of generosity for granted: have an honest conversation about what's reasonable, and stick to your end of the bargain.

You can't take it any longer:

This is one indicator that could at least partially trump all the rest. If you don't have absolutely everything in place to make quitting your day job a sure bet, but your intuition is telling you "it's time," you might want to pay attention. We're not suggesting that you make a careless decision, but if you're completely miserable at your "real" job, maybe it's time to really find out whether you can make your dream a reality.

All of us here at TriState Business Insurance (serving VA, MD, and DC) are your biggest fans.  You'll need to have progressed reasonably far in business plan development in order for us to serve you best.  When it comes time to insure you and your business, the details of your business model and your personal circumstances matter.  Any insurance agent worth his or her salt will spend significant time with you to understand the details.  It is only then that the agent can act on your behalf to secure the very best value for your small business insurance.  Don't let anyone under-insure OR over-insure you. 

Contact us! 

Most Common Risks to the Small Business Owner

Darren Kincaid - Sunday, February 24, 2019
Tristate Business Insurance - VA, MD, DC

As the backbone of our nation’s economy, your small business plays an incredibly important role. When you are a business owner, you want to systematically assess and mitigate your business risk. Keeping your property, goods, and assets insured from loss only makes sound business sense.  A well thought out small business insurance strategy is one of the most valuable components of your business plan.  Let's review some of the more widespread and dangerous risks to the American business owner. 

Fire

Fire is the major cause of property losses by number of claims and value. Of the top 20 reasons for business loss, fire consumes half of the top 20 losses combined.

Storms

The Congressional Budget Office estimates that, on average hurricane damage is $28 billion a year. By 2075, the average annual damage costs will increase to $39 billion.

Flooding

Flooding is one of the major risk trends since many of the world’s largest cities are situated on the coast or beside rivers, exposing them to floods and storms. Natural hazards account for three of the top 10 causes of losses, with flooding ranking in seventh position.

Product Defects

We could almost assume that new items produced are of perfect quality. The truth is that product quality is not always perfect and is directly affected by the reliability of the production process used to produce the products, which we may not always control. Consumers in emerging markets are growing more aware of their rights and are increasingly more likely to seek compensation for faulty products.  

Software Defects

Virtually every business in the United States now depends on software for their development. Software errors are estimated to cost $59.5B annually to the U.S. economy.

Professional Indemnity

Professional indemnity claims are the major cause of losses in the financial lines insurance sector, according to the analyzed portfolio, accounting for 74% of claims by number and 72% by value. 

Bodily Injury

Neglecting to upkeep your premises can be a major risk to your company's bottom line. A bodily injury caused by a defective product can easily turn into a lawsuit just as much an a slip accident due to unsafe conditions at your business, be it an office or a commercial establishment frequented by general public. While employees are typically covered for their injuries by workers compensation, lawsuits filed by visitors who are injured in an accident can be costly.

Machinery Failure

The sectors especially hit by machinery breakdown are energy, marine, property and engineering. In most cases damage to the machinery or complete breakdown is due to crew negligence or heavy weather, e.g. storms. Machinery breakdown is a large driver of commercial property claims in terms of the number generated.

At TriState Business Insurance, our independent insurance agents are highly trained to help you identify the major causes of risk to your business. Trust only independent insurance agents to source the best value for your insurance dollar. Always remember that independent insurance agents serve YOU.  We are not affiliated with any single insurance carrier. That sets us apart from most others. Contact us!

Is Your Tavern or Bar Business Risk Covered?

Darren Kincaid - Sunday, February 17, 2019
Tristate Business Insurance - VA, MD, DC

Spring is almost here. Soon enough, people are going to break from their winter slumber and begin patronizing bars, restaurants, and taverns in increasing numbers.  That's the good news.  The bad news, more customers, more risk.  As families and adults in general get into the “relax state of mind,” part of it is having more time to go out during the night and enjoy days and weekends at your bar, enjoying your signature drinks, and your unique atmosphere. 
This is what your business is built upon.  Now is a good time to consider where you are in terms of business insurance for you Virginia, Maryland, or DC bar or tavern. 

5 liability issues restaurant, bar and tavern owners often deal with:

1. DUI's

The most common type of liability claim come from customers who drink too much while in your bar and then drive themselves away. If your bar is on the water, you need to worry about the exact same risk associated with drunk boaters. To transfer the risk of over-service-related claims, all bar owner need to be protected by a Liquor Liability policy with adequate limits in addition to a General Liability policy.

2. Activity hazards

As a bar-tavern owner you can expect an occasional bar fight and the injuries caused by it.  But expect more people to fall out of your bar stool and injure themselves than get injured in a bar fight. Do you serve flaming drinks?  Those flaming drinks accidentally spilled upon your customer can cause significant bodily injury.  Do you offer outdoor activities like volleyball, corn hole, or any number of other popular outdoor games, mixing drinking and exercise of any form significantly increases the risk of patron bodily injury. Claims arising out of these types of activities may be covered under the premise liability portion of a General Liability policy or the Liquor Liability policy, but more often these type of risks are excluded.

To make sure all activities occurring in the bar are covered, the insured needs to carefully disclose them on the insurance application so the agent can secure appropriate coverage. Your agent can add coverage for these activities by endorsement for additional premium, but the agent first needs to be informed.

3. No exit zone

The risk of a lighted exit sign malfunctioning or an exit door being blocked (or locked) to prevent patrons from entering the bar is common.  This liability vulnerability should not be overlooked or underestimated. If there was ever a fire in a nightclub and patrons were unable to exit, the claims for bodily injuries and property damage might easily exceed the aggregate limits of a standard $2 million dollar policy.

4. Extreme hot food and drinks

Servers can and do accidentally spill hot food and beverages on your patrons. Burns are painful and can cause disfigurement. Damages awarded by juries for pain and suffering can ruin your business and your life if you are not properly protected. 

5. False Id’s

Bar owners should consider investing in ID scanners to help identify false documents because the responsibility for a patron engaging in underage drinking remains with the serving establishment, even after the patron has left the premises. You must realize that this is a very small list of five potential liability risks to you and your bar/tavern operation.  It takes seasoned independent insurance professionals to be able to consult you on all the liability risk considerations for your business.  This is one element of the insurance industry where agents of large insurance companies introduce excess fear in their consults to over-sell coverage at needless cost to you.  Your independent insurance agents like us here at TriState Business Insurance work for YOU, not any single insurance company.  In fact, after close consult with you about your unique business and your unique business risk, we'll research over two of the best rated insurance carriers on your behalf to identify the very best value for you insurance dollar.

Call us!

Risk of Ride Sharing to Beat HOV Minimums

Darren Kincaid - Sunday, February 10, 2019
Tristate Business Insurance - VA, MD, DC

It comes as no surprise to all of us who live in and around the national capital region that car sharing continues to be a growing trend.  Inviting those you don't know into your vehicle to take advantage of high occupancy vehicle (HOV) conveniences offers clear rewards, but it introduces risk as well.  The risks associated with participating in ride-sharing services are multiple but the most glaring risk is associated with the potential for gaps in insurance coverage in the unfortunate event of an accident or injury. Let's discuss the potential effects upon your private auto insurance policy when you ride share in VA, DC, or MD.   

Some auto insurers are considering revising their policies to address car sharing. While every personal auto insurance policy differs, most contain exclusions when a person uses their vehicle for non-personal uses.  Believe it or not, beating beltway traffic by sharing your vehicle may or may not be considered personal use of your vehicle from the insurance industry's perspective. Several insurers have developed products to fill gaps in coverage created by commercial ride-sharing and the common use of livery exclusions in personal auto insurance.

Before you agree to care share, consider this:

1) If you ride share, it is commonly accepted that you carry a minimum of $100,000 in bodily injury, $300,000 per accident, and property damage up to $100,000.  In this sue-happy age that we live in, high net-worth individuals should carry higher limits. 

2)State minimums vary and liability requirements can be as low as $10,000 per injury per person; $20,000 for all injuries and $10,000 for property damage per accident.  Don't fall for that as it is not enough to cover your ride sharing risk. 

3) If you have dropped collision and comprehensive coverage from your policy on an older car to save money, that may or may not add risk to you as a ride sharing driver.  We point that out here to remind you that should you ever rent a car, you'll need to purchase additional insurance coverage when you rent a car to be covered in the event the car is lost or stolen.

4) Parents of teens and young adults who allow them to ride share within your vehicle puts you at unique risk.  Placing the lives of others in the hands of your inexperienced child driver is only asking for trouble. 

We're not advising you to forgo the undeniable conveniences of sharing your vehicle with others.  We do, however, recommend that you be fully informed about the risks involved and to assess whether or not you are adequately protected against the unthinkable.  Your independent insurance agents at TriState Business Insurance can help you assess that.  Give us a call

Independent Contractor Insurance Considerations

Darren Kincaid - Thursday, January 31, 2019
Tristate Business Insurance - VA, MD, DC

As a general rule, employers conducting work in the states of Virginia, Maryland, and DC are required to provide workers’ compensation insurance for their employees. While there are exception based rules that can apply, the specific employer coverage requirements are based on the individual state, type of industry, number of employees and entity organization.  

As an independent contractor, one of the joys of being independent is the general ability to conduct business your way.  On the other hand, working independently means that you will be completely responsible for any accident or injuries, property damage and even liability lawsuits. There exists a wide variety of contractor insurance options. Here are the most common types of coverage.

Bodily injury and property damage: This coverage is for contractors who work with heavy machinery and need to be prepared for accidents due to power tools and other hazards.

Professional liability: For contractors who provide consulting and advice, this coverage can protect you from liability risks due to losses a client may experience. Business liability insurance protects your business’s finances if a client accuses you of errors, whether due to mistake or negligence.

Commercial vehicles: Any vehicles owned by your business must adhere to state auto insurance laws. You can also protect your vehicles from various damages. Commercial auto insurance coverage protects not only the 1099 contractor but also the hiring entity in the event an accident occurs while the contractor is driving as part of the job he was hired to do.

Builder’s risk insurance: This one covers property and raw materials while construction is underway. This type of policy is often written per project.

Workers compensation insurance: Independent contractors may or may not need workers compensation. If you have employees, you’ll need workers compensation insurance in place in case they experience injury or illness on the job. This coverage compensates employees for medical expenses and lost wages after an on-the-job injury.

Disability Insurance:Disability insurance is a prudent insurance type for 1099 contractors to purchase. It is insurance that will pay a pre-established weekly benefit to the contractor in the event the contractor is unable to work due to a disability. It is not only the contractor engaged in potentially dangerous work who needs disability insurance. For example, a freelance graphic artist or writer due to an accident while in the parking lot or any other physical incident. The disability insurance typically requires a waiting period following the event that causes the disability before the policy begins to pay. The premiums fluctuate depending on the chosen waiting period length, the percentage of salary that will be paid each week and the general riskiness of the contractor's chosen occupation.

Performance Bond: Performance bond insurance guarantees the work will be done according to expectations, if not,  the bond money could be released to repair or complete the agreed project. This coverage is especially helpful when a contractor become disabled and not be able to finish the project. Rather than risk being sued personally and having assets seized to pay for damages, a cash performance bond protects everyone involved by guaranteeing the project completion within the agreed upon deadlines.

Your too busy taking care of business to learn all the regulations and nuances of these things.  Insurance agents who work directly for insurance companies will likely try to sell you all of these coverage options and likely at far higher maximums than you really need.  The path to value-based small business insurance acquisition is via your independent insurance agents like all of us here at TriState Business Insurance.  We serve all of Virginia, Maryland, and DC and can put you on an affordable path to the protecting you, your business, and your family at the most valued pricing being offered by the vast insurance markets today.  

Call us!

Data Privacy Regulations and Your Small Business

Darren Kincaid - Thursday, January 24, 2019
Tristate Business Insurance - VA, MD, DC

Greetings from your friends at TriState Business Insurance serving all of Virginia, Maryland, and DC.  Today we're going to discuss one of the singular biggest risk to small business owners: Data Privacy Regulations. 

Are you and your small business read into the nation's new data privacy laws and are you compliant?  Large enterprises with IT staffs in large part are.  But it is the small business owners across the country who in large measure are not read in and compliant.  This subjects you and your business to potentially significant business risk. with the right combination of privacy protection insurance coverage and common sense data privacy policy enactment within your company, you and your company can rest easy. Here are a few pointers on minimizing risks and limiting the costs of events like breaches, hacks, and cyberextortion.

The State of U.S. Data Privacy Regulations

Even with widespread public adoption of data technology, the U.S. lacks a comprehensive federal privacy framework. This doesn't mean, however, that your growing enterprise can play things fast and loose when it comes to safeguarding personal information. In the absence of one universal law, firms are instead subject to a host of different statutes. Your compliance burdens are partially dependent on what field you specialize in. For example, the Health Insurance Portability and Accountability Act, or HIPAA, includes strict rules regarding the storage, transmission, sharing, and handling of patient data. HIPAA impacts everyone from private practices and clinics to the insurers and medical records software providers they do business with.

The Children's Online Privacy Protection Act, or COPPA, covers activities that involve collecting data from kids under the age of 13. This means it can impact a large number of companies whose users include minors. The FTC hasn't been shy about fining businesses that fail to follow COPPA rules, such as ensuring that children have parental consent before using websites and posting age-specific privacy policies.

Thanks to the Judicial Redress Act of 2015, citizens of certain covered foreign nations have the right to bring lawsuits against U.S. companies that don't protect their information as specified by the Privacy Act of 1974. This law might affect you if you do business with partners from overseas or want to expand your product sales to new territories.

The Most Common Small Business violation of U.S. Data Privacy Regulations -- Credit Card Processing Violations

If you and your business process credit card transactions on line, you must secure the transaction via secure socket layer protection (or SSL).  This is the easiest breach of data privacy law to identify by the federal government.  You simply can't afford to allow this vulnerability within your business model.  Smart consumers today can easily spot this vulnerability with damning consequence upon your professional reputation.  Plus, it is just not right.  You would not want your financial data placed at risk at the hands of others.  We insure IT management small business owners across Maryland, Virginia, and DC.  Between us (your independent insurance agents) and our network that we can reach out to on your behalf, your path to full and confident data privacy regulation compliance is just a phone call away.  Contact us!




The Cost Saving Benefits of Multi-Line Insurance Policies

Joseph Coupal - Thursday, January 17, 2019

Why You Should Turn Your Personal Lines into a Multi-Line Insurance Policy?

No one wants to over-invest in insurance, and we get that. Teaming with an independent insurance agency (like us here at TriState) is the path to ensure that you NEVER over-invest in insurance.  Insurance agents who work directly for the insurance carriers may or may not discuss the concept of "multi-line insurance policies" that can not only increase the amount of insurance coverage but can also save you money in the process.  

What is multi-line insurance? A “line” of insurance is the type or category that your coverage falls under. Lines are then broken into the specific types of coverage that you may have, like home and auto. In the state of Ohio, there are six major lines.

Multi-line insurance is when you bring together the different risks you have coverage for into one comprehensive policy. Personal lines policies is an example where you might have several types of coverage, like homeowners, flood, and car insurance. Instead of having three or more different insurance bills to pay, multi-line insurance allows you to receive one bill with a combined cost of all your policies.

What’s the benefit for you, your business, and your family? You save money! If you’re looking for an affordable option for insurance, this is one way you can cut down on the cost you pay to insure the things that matter most to you. Most insurance carriers will provide you with a discount for combining all of your policies because it’s easier for everyone, and it helps them gain more of your business. While the amount you save depends on the policies you combine, you’ll often find insurance companies will offer as much as a 20 percent discount… some offer even more.

Multi-line insurance can also help you in regards to managing your deductible. If you have home insurance and car insurance with two different insurance companies, you have two deductibles. This means that if you sustain damage to both at the same time, you’ll be forced to pay the deductible on both policies before you get help from either carrier. With multi-line insurance, however, you might only have one deductible for all your policies. So you’ll actually end up paying less because you’ll only have to pay one amount for your house and your car before you get financial help.

Saving money isn’t the only benefit you’ll receive from combining your policies, either. Having all your insurance needs under one roof only makes things easier for you and your family when it comes to understanding and getting the most out of your coverage.

Having Multiple Insurance Agencies can be Wasteful and  Counterproductive. Use Multi-Line Insurance to Cut Through Red Tape.

Think about it this way — when have things ever been easier when they’re spread out in more than one place? Ever had to go to multiple grocery stores just to get what you need for the week? Chances are, this left you thinking to yourself how nice it would be if you could just get everything you need from the same store.

This goes for insurance too. If you have your car insurance from one agency, and your home insurance from another, not only are you receiving two bills, but you’re also receiving two entirely different policies. You also have two agents, and their knowledge of your risks and needs likely won’t match up with your reality. If you have an agent who knows you well, you’re going to get better coverage.

This doesn’t necessarily mean you’ll receive cheaper coverage, (although that’s certainly not out of the question) but more in the sense that you’ll have all-encompassing coverage that won’t fall short when you need it most. Having one agent for all your policies means they’ll know all the risks you’re facing, and be able to double check that your coverage is going to protect your home when a tree falls through the window because you live in an area that deals with frequent high winds.

With multi-line insurance, you’re almost guaranteed better insurance because you’ll have one person who understands what you need inside and out. Plus, they’ll be able to help you find the best deal for your policies without having to worry about severe financial damage in the future. Working with an independent insurance agent doubles the benefits you receive because you’ll also be able to pick and choose the coverage that fits you best from more than one carrier. Rather than being locked into one option, an independent insurance agency can have numerous different insurance companies they work with so their clients can get the best coverage option for their specific needs, all within their budget.

If you’re thinking about multi-line insurance, there’s no better time than right now. Don’t wait until that tree falls through your window to rethink your insurance coverage! Affordable coverage doesn’t have to mean that you lose important protection either. With multi-line insurance, you can receive the right protection without sacrificing your savings. Call us to learn more!

Never Make These Three Business Insurance Gambles

Joseph Coupal - Thursday, January 10, 2019
Tristate Business Insurance - VA, MD, DC

Hello again from your independent insurance agent friends here at TriState Business Insurance serving Virginia, Maryland, and DC. Business owner’s always execute risk management, but they should not recklessly gamble. Business risk is something you must take seriously. Before you buy an insurance policy, make sure you’re covering all of your bases.

Insurance mistakes cost you money. So, don’t take a gamble. Grow your business. And before you buy intricate policy add-ons, make sure you’re not putting your eggs in the wrong basket.

Here are the three business insurance gambles to avoid. Are you making them?

Gamble #1: Considering A One-Size-Fits-All Liability Policy

While some in-depth plans with add-ons aren’t ideal, don’t pick a basic coverage plan either. A surprising number of businesses play it by ear. In other words, they pick one-size-fits-all policies which don’t cover them specifically. Let's take a look at an example of this. Some businesses rely on their personal liability insurance policy. Liability insurance might provide a good foundation. However, it might not protect you beyond personal injuries and property damage. Between employee mistakes, disasters and property losses, there’s a lot to worry about. You need a business liability insurance policy that caters expressly to your needs.

Some start-up experts are also shying away from one-size-fits-all policies because they lack support sales territory planning. As your business grows, you’ll need to breathe. Make sure your plan isn’t suffocating your livelihood.

Gamble #2: Not Having Business Interruption Insurance

If you’re new to the game, you might’ve forgone add-on policies, such as business interruption insurance. This coverage is important. Many businesses wouldn’t be able to open again if a disaster damages their assets. Bad weather, theft and even employee mistakes can cause a lot of damage — both to your premises and your time.

What’s your time worth? Well, it’s worth your stock, machinery, computers and sales. The longer you’re down and out, the more money you’re losing. Even if you’re running a small business, tiny interruptions add up. Therefore, let this coverage step in to cover those losses.

Gamble #3: Considering You’re Safe

Your coverage might be good, but is it enough? Always plan for an update. If you grow, experience change or take on new workers, consider an upgrade. You might be safe now—but you won’t always be. Buy new coverage if you’re:

  • Moving to a new location
  • Investing in commercial real estate
  • Investing in expensive equipment
  • Offering new services
  • Hiring new employees

Even small changes impact your commercial small business insurance coverage. Don’t worry. Remember that independent insurance agents are YOUR agent and always work in your best interests. We can amend your policy when necessary. If you’re growing, we’ll help you scale. It’s our job to make sure your business insurance is effective.

Call us to learn more!

The ABC’s of Contractual Risk Transfer

Joseph Coupal - Thursday, December 27, 2018
TriState Business Insurance - Virginia, Maryland, and DC

Contractual risk transfer is a business strategy designed to reduce the cost of risk by transferring certain risks to another entity's risk program. This transfer takes many forms. It is most commonly employed when a hiring company engages a sub-contractor. It is also employed when an entity rents or leases property to another and wants the lessee (renter) to be responsible for renter’s insurance while they have use and control of the asset. We'll address a few of the more common ones here.

A common insurance requirement is the Additional Insured. A hiring company will often ask the subcontractor to name the hiring company as an additional insured, so if something goes wrong, the sub contractor's insurance program will take care of the claim. By off-loading these from the hiring company's risk program, they transfer the cost also.

Landlords will often ask tenants to name them as additional insureds, so that if a guest of the tenant is injured, the tenant's insurance takes care of the claim. Again, the cost has been transferred.

Another is "waiver of subrogation." Subrogation is the process whereby insurance companies go after each other based on who was ultimately responsible for a loss. A simple example is when my fleet insurance company pays a collision claim, then goes after the company of the driver that actually caused the accident. Agreeing to waiver of subrogation means that the subcontractor's insurance cannot go after a hiring contractor's insurance, even if they are responsible for whatever happened. If an electrician's employee is hurt at an unsafe contractor's work site, the claim still goes on the electrician's experience, not the responsible contractor's.

Many B2B contracts include "hold harmless" and "agree to indemnify" language, which are corollaries to the insurance provisions described above. This can be a very complicated business management challenge and we stand ready to consult you on this subject and any business insurance need. With that said, we’ll likely advise that before pen is put to paper that you consult with your business’ attorney as well.

For questions regarding contractual risk transfer for business residing within Virginia, Maryland, and DC, contact us today!