Insurance Insights: The Cleary Insurance Blog
The Cleary Insurance blog covers insurance, risk management, and financial planning for New England businesses and individuals. Our team of licensed advisors and specialists publishes regular articles on commercial and personal coverage, employee benefits, life and financial planning, and insurance compliance. Browse recent articles below, or use the category filters to find topics relevant to your business or personal situation.
Interest Rates and Their Effect on Investing
As a result of the prolonged Federal Reserve’s involvement in stimulating the economy, interest rates are and have been at extreme lows. Over the course of the next five to ten years, the Fed is expected to pull back its control in a way which will allow rates to increase, having an inevitable effect on the markets as a whole. As a result, portfolios heavy in bonds may experience poor performance in the market during periods of rising interest rates. When rates in the open market are offering higher credited rates to lenders, investors tend to sell their existing debt, resulting in falling prices. Longer term debt is particularly more sensitive to interest rate risk, and this, as well as debt quality, will all want to be considerations when discussing with clients and/or prospective clients
Likewise, rising rates can have a negative effect on the Consumer Cyclical sector, as the fact that the general public will tend to have less discretionary spending money due to more expensive borrowing and potential price hikes. However, investing in bank equities can be attractive in anticipation of these times, as they are able to finance out at more profitable margins.
New OSHA Incident Reporting Rules
Effective January 1, 2017; certain employers are required to electronically submit injury and illness data that they already record on paper and retain onsite. Electronic date will enable OSHA to quickly analyze injury data and use its enforcement and assistance resources more efficiently. The data will also be available to the public. OSHA believes that allowing for public disclosure on incident reporting will encourage employers to improve on workplace safety and provide invaluable information for job seekers, customers and the general public.
The reporting requirement will be phased in over two years. The timeline depends on the number of employees, but generally speaking employers must submit information from 2016 on form 300A by July 1, 2017. The same employers will need to submit Information from 2017 using forms 300A, 300, and 301 by July 1, 2018. Beginning in 2019 and thereafter all information must be submitted by March 2.
You can view which establishments are effected by the new reporting rule by clicking here.
Understanding the Commercial General Liability Coverage Form (CGL)
The CGL (Commercial General Liability) covers companies from third party liability due to negligent acts, actual or alleged, committed by the insured or by someone working on their behalf.
There are 3 coverage sections under the Commercial General Liability policy:
Coverage A: Bodily Injury and Property Damage Liability
Coverage A provides protection against losses from the legal liability of insured’s for bodily injury or property damage to others arising out of non-professional negligent acts or for liability arising out of their premises or business operations. Mental injuries and emotional distress can be considered bodily injuries, even in the absence of physical bodily harm.
Depending on the size and nature of the company different endorsements should be included that are not typically covered under a standard CGL policy. Workers compensation and employment practices liability insurance are excluded but can be purchased as separate policies. Liquor liability, professional liability and other risks may also be excluded.
Consult an insurance professional to determine which coverages are right for your type of business.
Coverage B: Personal and Advertising Injury
Personal and advertising injury liability protects an insured against liability arising out of certain offenses, such as:
- Libel
- Slander
- False arrest
- Copyright infringement
- Malicious prosecution
- Use of another’s advertising idea
- Wrongful eviction, entry or invasion of privacy
Coverage C: Medical Payments
Limited coverage for medical payments includes payments for injuries sustained by a non-employee caused by an accident that takes place on the insured’s premises or when exposed to the insured’s business operations. Medical payments coverage can be triggered without legal action. This provides for prompt settlement of smaller medical claims without litigation. It is included in the CGL policy and pays for all necessary and reasonable medical, surgical, ambulance, hospital, professional nursing and funeral expenses for a person injured or killed in an accident taking place at the insured’s premises or arising from business operations. There is no defense or legal liability coverage—as there is with bodily injury and property damage (Coverage A) and personal and advertising liability (Coverage B), since coverage is provided on a no-fault basis.