How to be a good

How to be a good
consumer of Insurance
Presented By: DC Insurance
Collin Kostiha
K
Jeff Kostiha
Advocates before Agents
g
Why
y are we here today?
y
N
New
Legislature
L i l t
passed
d by
b
the House of
f
Representatives:
Bill #CS/HB 7165
Changes announced at
Children’ss Week
Children
Why the New Changes?
To standardize insurance limits state
p
wide on all child care providers,
therefore protecting the children and
y of each Coalition.
the liability
What are the new
changes?
H us Bill CS/HB 7165
House
• Requires Continuous General Liability
Limits
•
•
•
•
– Formal & Informal Providers
“Additional Insured”
N i of
Notice
f Cancellation
C
ll i
Transportation
Workers Compensation
Mandated Limits
L
Limits
of
f General
G
l Liability
L bl
:
– $100,000 per Occurrence
– $300,000 per Aggregate
Transportation
p
Coverage
g ((if p
provided))
Workers Compensation (if required)
What if I have no
children?
• D
Do I still
ill need
d to carry a General
G
l Liability
Li bili
Policy? YES
• “The General Liability insurance required
must remain in full force and effect for
the entire period of the provider’s
contract with the coalition
coalition”
Why
y do I need
continuous coverage?
Letting your policy expire and causing a
Lapse in Coverage
Coverage” could jeopardize
“Lapse
your contract with the ELC.
How will
w ll the coal
coalition
t on know
if I cancel my policy?
The insurance company sends
immediate cancellation notices
directly to those listed as an
additional insured.
insured ”
“additional
Today’s Topics
•
•
•
•
•
•
What is the average policy cost?
What type of policy should I look for?
What should my policy cover?
What is an additional insured?
Do I need workers comp?
Do I need a commercial auto policy?
What is the average
g
ANNUAL cost?
For General Liability:
Commerciall Child
h ld Care Centers:
Starting From: $970 (Average:$1350)
In Home Child Cares:
Starting From: $283 (Average:$309)
**Cost of Endorsing the Coalition as an ADDITIONAL INSURED**
What Type of Policy Should I Look
For?
11. R
Rider
d P
Policy
l
vs. Surplus
l Lines
L
2. How long
g is the application?
pp
3. Does the Agent give you a quote on
the spot?
4. How long until the policy goes into
effect?
What Type
yp of Policy
y Should I
Look For?
General Liability vs. Professional Liability
Wh Type
What
T
of
f Policy
P l
Should
h ld I
Look For?
Claims Made vs.
vs Occurrence
What Should My Policy Cover?
Does the Policy Cover: Professional
Liability (Negligent Supervision)?
a.) Am I, My employees and volunteers all
i
insured?
d?
b.) Are residents of my household who are
not employed in my business insured?
What Should My Policy Cover?
Does the Policy Cover: Child Abuse?
• a.) Does the definition of “Abuse” include sexual,
physical
h i l and
d mental
t l abuse?
b
?
• b.) Am I, my employees and volunteers all
insured?
• c.)) Are residents
d
of
f my h
household
h ld who
h are not
employed in my business insured?
• d.) If an insured under the policy is accused of
child
hild abuse
b
and
df
found
d guilty,
ilt what
h t iis th
the mostt you
will pay for damages?
What Should My Policy Cover?
Does the company provide an attorney to represent
the Provider at a Regulators Administrative
hearing resulting from an allegation related to
Child Abuse?
a.) If not, will the company pay for an attorney to
represent me?
b.) What, if any, is the limit the company will pay for
legal representation?
Limits within policy limits vs. outside policy limits
What Should My Policy Cover?
Are ALL Claims Expenses,
Expenses including
Attorney fees and investigative
costs paid for all claims (including
costs,
abuse)?
What Should My Policy Cover?
• If
f coverage is under
d a master policy,
l
does the policy and aggregate limit
apply
l to each
h certificate
f
h
holder?
ld
***Additional Insured***
What Should My Policy Cover?
Is Non-OWNED
N
WNED Auto Coverage
C
available as an optional coverage?
Example Asking a parent to transport
Example:
children on a field trip
What Should My
y Policy
y
Cover?
If children
hild
are transported,
t
t d d
does th
the
company offer optional coverage?
*Coverage of physical vehicle vs. the
medical bills of those injured in an
accident
id t
What Should My
y Policy
y
Cover?
D
Does
my policy
l
cover animall bites?
b
What Should My
y Policy
y
Cover?
Does my policy
D
l
cover Dispensing
D
Medication?
What Should My
y Policy
y
Cover?
D
Does
my policy
l
cover Food
F d Preparation?
P
What Should My
y Policy
y
Cover?
D
Does
my policy
l
cover Field
F ld Trips?
What Should My
y Policy
y
Cover?
Does my policy
D
l
cover the
h liability
l bl
of
f
infants (at no minimum age)?
What Should My
y Policy
y
Cover?
D
Does
my policy
l
cover Libel,
L b l Slander?
l d
What Should My
y Policy
y
Cover?
If
f my child
h ld care is open after
f
normall
hours, will I still be covered?
What Should My
y Policy
y
Cover?
D
Does
my policy
l
cover Swimming Pools?
P l
What about Field Trips to Swimming
Pools?
What Should My
y Policy
y
Cover?
Does the policy include ACCIDENT MEDICAL COVERAGE?
a.) Is the accident coverage “Primary” and does it pay in
addition to other coverage?
paid for accident medical expenses
p
for
b.)) How much could be p
each injured child?
c.) What is the total that could be paid if 3 children were
injured in the same accident?
d ) Will the policy pay accident medical bills if a child is injured
d.)
on field trips?
e.) Will the policy pay accident medical bills if a child is injured
while riding in an Insured’s car?
What Should My
y Policy
y
Cover?
How much is my deductible for
for:
Liability Policy?
A id nt Policy?
Accident
P li ?
**There
**
h
are policies
l
with
h NO
N
DEDUCTIBLES**
WARNING:
If
f you use affidavits
ff d
and
d a Cl
Claim or a
Law Suit is filed against you, you will
h
have
to hire
h
your own attorney and
d
pay all expenses and any judgments!
What is an “Additional Insured”
A person or organization not
automatically included as an insured
under
d an insurance policy
l
of
f another
h
but for whom the named insured
d i
desires
or iis required
i d to provide
id a
certain degree of protection under
i iinsurance policy.
its
li
Why is it important?
• The
h coalition
l
can be
b h
held
ld liable
l bl &
sued if a child is placed in an unsafe
environment.
• Protect the organization
g
that helps
p
you.
What should a Certificate
of Insurance look Like?
(See Example Handout)
Do I Need Transportation
ransportat on
Coverage?
Coverage for
C
f the
h transportation of
f
children is required if participating in
the
h School
h l Readiness
R d
Program.
P
Endorsement vs. Commercial Auto Policy
Do I Need Workers
Compensation?
• St
State
t mandated
d t df
for companies
i with
ith 3
or more workers
– (owner
(
can b
be excluded)
l d d)
• Premium
Pr mium c
calculated
lcul t d b
by p
payroll
r ll
– Rate: $1.46 per $100 of payroll
– Class Code:8869
C de:8869
Extremely hard to find for
smaller
ll Centers!
C
!
Handout:
Best Practices for FFC
Providers
For More Information:
Contact C
C
Collin
ll Kostiha
K
h
DC Insurance Services
Phone: 800-359-4300
Website: www.dcins.com
www dcins com