Insurance Resolutions

May 13, 2019

Is it too late to talk about New Year’s resolutions?Maybe now is a good time, if all of your other resolutions have gone by the wayside. One suggestion to give those who struggle with budgeting, regardless of their means, is the importance of paying their premiums on time. Late payments, cancellations, and reinstatements often create excessive costs for insurance companies. If an insured has some misfortune when it comes to claims, a good payment history could literally influence a carrier’s willingness to renew a policy.

Although accidents can be unavoidable, people can still establish a good foundation to help ensure the future continuation of their coverage. One of the best examples of that is the statement we often hear that someone was canceled after having one accident, but the truth is that unless someone is guilty of insurance fraud, or has a serious violation, such as DUI, in conjunction with claim, by law you cannot be canceled after one accident. Often times after an accident, it’s the carrier’s refusal to offer any future reinstatements that cause the final cancellation. For someone looking for a suggestion for other types of insurance, a tip that might be helpful would be to practice good loss prevention strategies in your home, as well as refraining from submitting small claims, and reserving the policy for when you really need it. One basic loss prevention method would be making sure your alarms in your house are active and in place. A little ounce of prevention method can go a long way. Another thing to consider will a smart home sensor. Erie Insurance is offering a free smart leak and freeze detector to any household that would like one, and you don’t even have to be a policyholder.

Let’s talk about a resolution for the business owners, especially for contractors. That industry has more than their share of challenges and cost efficiency can be a top priority for any artisan. This is to say that carrying Workers Compensation is very important and cannot be emphasized enough. The Workers Compensation Act of PA, which has been in force since 1915, mandates coverage as soon as the first employee is hired, with very few exceptions. In 2011, the Department of Labor passed the Workers Compensation Missclassification Act, which established parameters for defining a true independent contractor, and put in place hefty penalties for non-compliance.Also, keep in mind that the Workers Compensation is protection for both the employer and employee. It’s considered Sole Remedy insurance and prevents the employee from suing for injuries in the Commonwealth. Take Workers Compensation out of the picture and all bets are off. And you can’t fall back on General Liability coverage, because that excludes injuries to employees.

Lastly, if you are a business owner and you haven’t spoken to your agent lately, ask to do a coverage review. It never hurts to include your lawyer and accountant as well. Coverage needs can change, as well as the law. It will be a wrong time to find out that your coverage isn’t adequate after a claim is made.

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