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What Classifies High Risk?

in General Business Insurance, High-Risk Insurance, News

At Competitive Edge, we specialize in high-risk insurance. We often get the question, “What is high-risk insurance, and how do I know if I need it?”

Well, the answer is, if you’re a small business owner, general contractor, or even car owner, you likely need high-risk insurance. Depending on the industry you’re in, however, it can be difficult to fund coverage or losses.

There are a couple of ways to identify what classifies high-risk insurance.

Risk Class

Investopedia defines risk class as, “A group of individuals or companies that have similar characteristics, which are used to determine the risk associated with underwriting a new policy and the premium that should be charged for coverage.”

There are some main points that are needed to understand the risk that is associated with coverage:

“An insurance risk class is a way for insurers to underwrite policies based on one’s belonging to a particular risk group.
People in each risk group will generally share similar characteristics that help insurers better estimate the chances that the policyholder will file a claim
Riskier risk groups will pay higher premiums—for example, people who are sick, older, or have a poor driving record.”

Once you determine if you qualify for high-risk insurance, there are additional factors that will determine your premium. These might include:

Age
Amount of coverage
Number of years the coverage is guaranteed
Risk class
And more!

Additional Classifications

One example of a scenario of hard-to-place insurance is from our very own founder, Brenda Jo Robyn of Competitive Edge Insurance. Brenda Jo had to pay an extra $15,000 in order to get her directors on board for her project.

If you have had excessive losses, shock loss, or are a startup (tech and service), it can be challenging to get professional liability coverage. There are, in fact, some extreme costs associated with high-risk coverage.

So, even the professionals have dealt with the difficulties and hoops that surround high-risk insurance (trust us, we get how frustrating it can be to navigate). That’s also why we’re here to help!

Contact Us Today!

Competitive Edge Insurance can help you perform a comprehensive review of all your risk exposure.

Reach out today for more information from our experts on high-risk insurance!

BEWARE: Workers’ Comp Insurance for Independent Contractors

in Construction, General Business Insurance, High-Risk Insurance, News, Workers' Compensation

As you may know, most states require employers to have workers’ compensation insurance. These insurance policies can help recover most of your employee’s lost wages while they recover from a work-related injury or illness.

It also helps to cover your employee’s medical expenses as it provides their family with death benefits if they, unfortunately, pass away.

What is Workers’ Compensation Insurance?

Workers’ compensation insurance are policies that provide medical benefits and wage compensation to workers injured on the job, in exchange for eliminating their right to file a lawsuit against their employer’s negligence.

Workers’ compensation benefits are designed to help employees if they are unable to work, cover medical expenses, as well as other expenses and rehabilitation costs associated with disability or illness. As you look to explore workers’ compensation options, it’s important to look for one that provides adequate coverage and compensation for your employees.

When you invest in a properly designed policy, it ensures you and your employees remain financially secure. It’s also important to look at the specific benefits that are offered within your policy. Typical workers’ compensation insurance policies cover medical benefits.

What is Covered with Workers’ Compensation Insurance?

Specific workers’ compensation laws vary depending on your state; however, the most common compensation states that require workplace injury insurance include the following:

Payment for lost wages
Vocational rehabilitation
Permanent disability
Temporary disability
Medical costs and treatment

How to Prepare for Employee Claims

Accidents happen. It’s part of life. It doesn’t matter how safe your business is, there’s always the chance an employee will get sick or injured on the job. For this reason, nearly every state requires business owners to have coverage for their employees. Different states, however, have various regulations.

Ensure you have an expert on your team to help understand what your specific business needs are. For example, if your business is in California, you are required to obtain workers’ compensation insurance even if your business is as small as just one employee. In Florida, however, you need this coverage if you have at least four employees.

Signing up for workers’ compensation depends on the location of your business. Typically, states recommend you purchase workers’ compensation insurance through a private insurance company, while others may require you to buy it through a state-run insurance fund.

It’s also important to understand the cost associated with investing in workers’ compensation insurance. The risk associated with your specific business will determine the cost of your insurance payments. This all sounds pricey, but remember: the costs associated with not having workers’ compensation insurance might be the motivation you need to start considering your options.

Without workers’ compensation insurance, you put yourself and your business at risk of fines, and could even face potential jail time for not complying with regulations. If an employee runs into a problem that would have been covered by workers’ compensation insurance, you may be responsible for covering their expenses, and you may also open yourself up to litigation.

What You Need to Know About Workers’ Compensation as an Independent Contractor

Every contractor needs general liability insurance. While the law does not require it, it is considered best practice to ensure against the kinds of injuries and lawsuits general liability is targeted to.

Large contractors may own commercial buildings that require property insurance, where smaller contractors or those with a specialty may need different coverage.

At Competitive Edge, we don’t claim to know your needs until we talk to you. What’s right for one company may not be a choice that meets your needs. Even if you have suffered a shock loss, large claim, or lawsuit, and find that your options have narrowed, we can work with you.

The first step is to show us under the hood so we can help you find the right carrier and coverage to protect your business today and always. Contact Competitive Edge Insurance today for more information about high-risk coverage today!

The Key Differences between General Contractors and Construction Managers

in Construction, High-Risk Insurance, News

Hard to place insurance is not impossible to place.

Although being a General Contractor (GC) and Construction Manager (CM) may sound like the same type of position, the difference is often overlooked in the industry. The difference between positions equates to a difference between the type of construction insurance needed.

General Contractor

A General Contractor “agrees to build the entire project—they’re the party ultimately responsible for the timely and proper performance of the work for a set price.”

The general contractor isn’t doing the manual labor at the job site, but instead managing the subcontractors who do.

In terms of insurance as a general contractor, general liability insurance is the type of high-risk coverage you should be looking toward. With construction coverage, there are specific risks to be made aware of, including:

Canceled or non-renewed insurance coverage
Repeated rejection from multiple carriers within a short time period
Shock losses
The high volume of small claims
High risk of property damage, illness, injury, or death

Construction Manager

On the other hand, a Construction Manager, “is a consultant hired by a developer or property owner to manage and oversee the performance of contractors that they’ve hired. The developer, owner, etc. hire each of these contractors directly.”

When you’re a construction manager, the type of insurance that will give you the best coverage is professional liability insurance.

The main difference between a GC and CM is the legality behind their hiring process, including coverage. The CM is hired, for lack of a better word, as a consultant whereas a GC is given a distinct payment with the job fully in their hands. The construction business needs to be protected with high-risk coverage, and Competitive Edge specialized in construction coverage.

At Competitive Edge Insurance, we work with insurance carriers across the country to place all types of business coverage. We are always seeking out new insurance companies to write hard-to-place and high-risk business insurance.

Don’t let cancellation dissuade you from finding comprehensive coverage. We can help! Learn more by connecting with Competitive Edge Insurance today.

Multifamily Property Owners, What’s Next?

in News

In 2020, the multifamily real estate industry hit more than a few challenges—including rental applications dropping 10% overall. During this time, multifamily property owners needed to think creatively about ways to transform these numbers.

Today, the multifamily property industry is thriving. It’s a great place to deploy capital for those looking for stable returns and a hedge against inflation. Moreover, CBRE reports that multifamily construction will remain elevated as well as high occupancy levels.

So, what should multifamily property owners do to maintain this thriving atmosphere? Let’s discuss.

FOCUS ON RETENTION

Currently, there is an excess of demand for highly skilled employees, as there is a surplus of multifamily opportunities. A highly skilled team of employees is essential to providing greater success for your property.

To attract and retain these employees, you need to offer a few things, including:

Competitive salaries
Training, education, support, and
Other creative employee engagement activities (like appreciation days, flexible work hours, and other fun office events!)

When you have a capable and professional team managing your tenants, it leads to greater resident satisfaction and long-term resident retention.

DON’T SHY AWAY FROM DIGITAL COMMUNICATION

Although many of us have had it with Zoom, don’t completely write digital communication off of your list!

Increased information and communication are especially essential to your success. It has become easier than ever to transition to digital forms of communication.

Get information to your tenants promptly by using tools like:

Apps
Emails, and
Texts

(See, it doesn’t only need to be Zoom!)

If you haven’t already, you might also consider implementing a web portal.

Web portals allow residents to:

Make payments
Submit maintenance requests
Review upcoming events, and
Participate in resident discussion boards

Self-guided and virtual tours will also live in your web portal and are essential to providing options for potential prospects to view properties.

SERVICE SHOULD BE AT THE FOREFRONT OF EVERYTHING YOU DO

The ongoing global pandemic has caused customer service to be at the forefront of all property manager’s minds. Good service will help demonstrate value and increase satisfaction within your property.

Timely and efficient communication is key. To ensure your residents remain happy, you should also consider accelerating response times and prioritizing maintenance requests. It has never been more important to go the extra mile for your residents and provide the best possible management experience!

THE NEEDS OF RESIDENTS ARE TRANSFORMING

Over the past two years, residents’ apartments have become one-stop-shops: Offices, gyms, and sleeping quarters all in one. This need for multi-purpose space has caused residents’ immediate needs to change.

Property management teams need to consider new ways to create space for their tenants that fit their needs.

This may mean providing access to better high-speed internet, offering reservation-based conference rooms, or establishing outdoor wellness spaces.

Ensure you remain adaptive and listen to your residents. After all, resident feedback provides great insight on how to improve experiences, which can result in increased retention and satisfaction.

ECONOMIC UNCERTAINTY REMAINS

Over the past two years, recent changes in income and employment status have brought economic uncertainty for many residents; delinquency remains top-of-mind for commercial property owners.

This considered, it’s important to prepare for the risk of increased delinquencies.

As multifamily property owners look to the future, it’s important to understand what may come. There are a few ways you can remain proactive in your approach to the coming year. It’s also extremely important to ensure you remain risk-free.

Interested in learning more? Read on for our article “Property Investors: Risk Guide.”

Cyber Liability Coverage for the New Era of Ransomware

in Cyber Insurance, General Business Insurance, News

With cybercrimes on the rise, it’s time to look not only at your practices but also your cyber liability coverage.

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