Certificate of Insurance Changes

The most commonly used certificate of insurance form is the ACORD 25 form. Several changes have been made this month, most of which are spelling, grammatical, or the addition of copyright notices.

The biggest change is to the disclaimer on Page 2 of the form.

The "old" language was: "The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon."

The revision is: "This Certificate of Insurance does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon."

The only thing I can see that's different is the removal of the phrase, "on the reverse side of this form." I'm not sure what this change does. Probably is the result of some crazy lawsuit. Such language seems to imply that the disclaimer is not a part of the certificate.

Key point 1: A certificate is not proof of insurance on any day other than the day it was issued. Coverage may have been cancelled.

Key point 2: Nothing on the certificate changes any coverage on the policy.

Key point 3: What is on the certificate does not imply a contract of any kind between the issuer and the certificate holder.

Insurance Issues For Home Based Businesses

Don’t Depend on Your Homeowner’s Insurance to Protect Your Business
Property insurance covers your stuff – desks, chairs, inventory, computers, etc. Liability coverage protects you against a lawsuit if someone is hurt either while visiting you or due to a defect in your product. In general, personal policies just don’t do the job for a business.

Many homeowner policies provide only $2,500 of business personal property coverage at your house and $250 away from your premises. Buildings not attached to your home (a separate garage) that are used in your business are also not covered by most homeowner insurance policies.

Business liability incidents are also excluded by most home policies. Personal umbrella insurance offers no business coverage either.

When I started my consulting practice, I bought a business owner’s policy to cover my home office. You may need to do the same. Talk with your insurance advisor about your options.

Auto Insurance
Many home business owners are adequately covered by a personal auto policy. If you make deliveries or use a pickup or van, you may need to buy a commercial auto policy. Talk with your insurance agent.

Renting Cars
Buy the offered coverage when renting a car from Hertz, Avis, or other short-term rental companies. Their contracts make claims a nightmare, and include obligations not normally covered by standard auto insurance. One option may be using a credit card that provides collision damage waiver coverage as a cardholder benefit. Call the toll-free number on the back of your card to check.

Workers' Compensation
Most states require workers' compensation coverage if you have any employees. You also may be able to buy work comp on yourself as a way to have some protection if you can't find health or disability insurance. Talk with your agent.

Consider Professional Liability Insurance
If you’re a consultant, architect, real estate agent, or other professional giving advice, consider coverage for claims against you for errors or omissions. Professional liability is also known as malpractice insurance. It protects you from suits alleging your advice cost your customer or client money.

Pick Your Agent Well
Find an agent you feel is interested in your business. Get recommendations from your peers and friends. Select your insurance advisor in the same way you would choose an attorney or accountant. Use one agent for all your business and personal insurance. Meet at least once a year to discuss your needs.

126 Questions to Ask Your Insurance Agent

I frequently hear from insurance buyers that they don't understand insurance. "I dont even know what questions to ask!" is a common complaint.

Here's the answer, 126 Questions to Ask Your Insurance Agent provides the questions to ask so you can assure yourself that you have the right business insurance coverage.

Download 126 Questions To Ask Your Insurance Agent

Update Your Employment Handbook

Rick Dacri is an HR consultant. He and I have known each other for some time now. In these times it is even more important to be sure your employment handbook and procedures are in place and up to date. Here are some suggestions from Rick's recent newsletter: ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ There have been a number of changes on the federal level that make immediate changes to your handbooks and policy manuals necessary. These include: ADA: On January 1 changes to the definition of "disability" were enacted. Adopt a policy that makes it clear to employees that they should notify you in the event they require any accommodations. FMLA: The National Defense Authorization Act amended the FMLA to include military caregiver leave and active duty leave. Amend your policies to include these. The Act also expands eligibility to "next of kin." Finally, eligibility notices, rights and responsibilities and designation notices have changed. Retaliation Claims: There have been an increase in retaliation claims. Strengthen your policy against retaliation as part of your sexual harassment and discrimination policy. Consider adding a separate policy on retaliation. Blogs: Make sure your policies on confidentiality and computer use covers personal blogs and what employees can and cannot say about your organization, management, employees and customers. Employee Free Choice Act (EFCA): Though not yet law, you can expect this Act will pass this year giving unions an upper hand in organizing efforts. In anticipation of that, make sure your policies on emails and bulletin boards cover the issue of solicitation. Be sure you have a separate no-solicitation policy. Finally, consider adding a policy stating your organization's position on unions. Amend your handbooks now and communicate the changes to your employees. If you have not reviewed your handbook in years, this may be the time for a complete rewrite. The advice above is for those who want to do it themselves. If you need outside assistance, that's where I come in. I have written many handbooks. I can help you move through this process in a smooth and efficient way to ensure that you are both fully compliant and your handbook communicates what you want to your employees. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ You can contact Rick at 800-892-9828 or email rick@dacri.com.