MBS Insurance - Malpractice & Liability Insurance

uto insurance can be confusing. If you’ve actually read your insurance policy (which everyone should do, but few actually do) you know what I’m talking about.

While your policy explains what the insurance company will – and, more importantly, will not – pay for, it does not explain how prices are determined. And we get lots of questions on this topic.

Perceived Risk Determines Price

In practice, insurance rating is quite complex; handled by actuaries who compile and analyze mountains of data. But the foundation of this whole pricing process is really quite simple …

Insurance companies are concerned about risk – the risk that an event they’ll have to pay for is likely to occur. High risk equals high price. Low risk equals low price. Simple.

The question is, therefore, how do insurance companies determine the level of risk a driver and his/her vehicle represents? Because that’s going to determine the price he or she pays.

Driver risk assessment involves many factors, which explains why insurance agents ask so many darn questions. And keep in mind it’s all statistical because nobody can look at an individual and predict his or her future. But based on a number of statistically proven risk factors, insurance companies price their insurance accordingly.

Here are some of those risk factors that affect you and your auto insurance …

Previous Accidents and Claims – Many people believe that drivers with no accidents “are due.” They’ve been lucky so far, but they’re destined for an accident.

Statistically speaking that’s incorrect. The statistical truth is drivers with previous accidents and claims are more likely to have additional accidents. The driver with no claims is likely to continue that way.

Age – When it comes to driving there are high risk and low risk age groups. For example, drivers age 16 to 24 are among the highest risk drivers on the road. It’s statistically proven. That’s why their rates are so much higher.

Where You Live – Insurance rating is all about statistics. In some places accident rates are much higher than in others. Accident severity also varies from location to location.

Population density, traffic congestion, speed limits, dangerous traffic patterns … these and other factors affect the general safeness of a particular area. If you live in a statistically high accident area, your auto insurance rates will reflect that.

And as the population explodes in certain areas insurance rates won’t be too far behind. It’s inevitable that rising population density leads to increased car accidents and, therefore, higher insurance rates.

Vehicle Usage – How you use your car is a big factor, too. For example, the driver who commutes 1 mile to work is much less likely to be involved in accidents than the driver who commutes 30 miles. The risk they represent is different and so are their rates. Other such usage factors affect rates, too.

Type Of Car – Cars that are more expensive to fix or replace represent higher risk to the insurance company. So, the price for insurance is higher for those cars.

Your Driving Record – Drivers who drive unsafely represent greater risk of accidents. Speeding tickets and other violations tell the company a driver indulges in unsafe driving habits.

Taking these – and other factors – into consideration, an insurance company essentially categorizes drivers by risk level and charges them according to the level of risk they represent.

This is not done individually. Rather, the insurance company has filed its rates with the state Insurance Department. Whichever filed rate level the individual falls into, those are the rates he or she gets.

Hopefully, that helps clear some of the confusion about why auto insurance rates vary so much from person to person and from place to place.

Make no mistake about this ... If you rent your residence, your landlord’s insurance does NOT protect you or your stuff…period! It doesn’t matter if the “landlord” is your parent, child, other relation or total stranger.

If someone breaks in and steals your computer…your TV, VCR and DVD player...your stereo system…your jewelry…no matter what it is nobody is going to give you any money to replace it. If there’s a fire and some – or all – of your stuff is destroyed, you’ll get nothing from your landlord’s insurance company.

If your dog bites the neighbor kid or knocks over the old lady next door. If a visitor slips and falls at your place. When you’re sued you’re on your own! Your landlord’s insurance company will not pay to defend you, and they will not pay any judgment against you.

There’s only one way to protect yourself and your stuff as a renter … your own Renter’s policy. And it’s cheap! As low as $10 a month. Plus, you may get a discount on your auto insurance when you buy the Renter’s policy. You could save as much as – or even more – than the cost of the Renter’s policy…making it virtually free!

If you rent, living without a renter’s policy is risky business. Being safe is smart, easy and cheap. Protect yourself and your stuff with a Renter’s policy.

eeling safe. It’s a basic human need, and it’s needed in the workplace, too.

As an employer you want your employees to be physically safe. Of course. But there’s much more to the story than common decency and caring for others’ well being.

Employee injuries are VERY costly to your operations – more than you probably realize. Plus, you can be held liable for injuries to workers – even beyond your insurance protection!

The REAL Cost of Work Injuries

A worker gets injured and a workers comp claim is paid. Too many of those and you can count on higher insurance premiums next year. But that’s nothing compared to what work accidents really cost you.

According to a study by the American Engineering Council, a workplace injury costs the employer – on average – 4 times the cost of the workers compensation claim. That means a $1,000 workers comp claim costs you $4,000 in un-reimbursed, un-insured expenses! Things like …

§ Lost productivity due to work stoppage – the injured worker(s), of course, AND everybody else who stops working because of the accident.

§ Administrative time following up on accidents, investigations, claim paperwork, etc.

§ Lost productivity related to new employee learning curves and accommodation of injured employees.

§ Replacement and maintenance costs of damaged material, machinery and property.

§ And much more.

These costs are largely “hidden” but add to up to very real – and very large – expenses for you.

You’re Responsible, You’re Liable!

Seems like everybody loves to sue these days. As an employer, you’re a target.

Two areas you must be especially careful about are workplace safety and workplace violence. It’s not enough to be well insured. If you fail to fix known problems in your workplace and something happens to one of your employees, it’s a good bet an attorney’s coming after you.

Dealing with Workplace Violence

Workplace violence is a serious issue. Violence among co-workers, former employees and worker acquaintances/relatives grows every year.

Naturally, you want to take all precautions to prevent workplace violence. But it’s also important to understand that an employer who does not report violence to the police – and doesn’t take disciplinary action – may face liability exposures if more incidents occur.

Some tips for dealing with workplace violence include:

§ Conduct pre-employment background and reference checks.

§ Be aware of employees who are experiencing high levels of stress or emotional difficulties – traits that can trigger violent behavior.

§ Institute and/or promote benefits programs designed to help employees manage their stress and balance their personal and professional lives.

Workplace Safety Tips

Here are just a few tips to maintain a safe work environment:

1. Promote a safety-conscious culture. Talk about it frequently…in meetings, in general conversation. Post safety signs throughout your workplace.

2. “Slip-and-fall” is the most common accident. Install slip-resistant rugs and mats. Use no-skid floor surfaces such as rubber treading. Paint with grit or no-skid waxes. Require slip-resistant shoes or non-slip shoe covers, if necessary.

3. Keep passageways and walkways free of clutter and crowding. Obstacles in walkways cause a majority of office and factory accidents.

4. Ensure projections, including mechanical equipment, don’t intrude into walkways. Consider the needs of people of various heights. Boxes, open file drawers and electrical cords can trip someone who is in a hurry.

5. Make sure there’s access to all exits. People must be able to get out quickly. When there’s a fire there’s no time to move that pile of boxes!

6. Do you have an emergency plan in case of fire or other type of crisis? Do you and your staff know where the closest fire extinguisher is, how to use it and the quickest way to get out of the building?

7. Young workers are not as prepared and experienced as older adults when it comes to workplace safety. Make sure they – and all your staff – receive all the safety training needed.

Remove workers with unsafe habits. An employee with unsafe habits poses a threat to everyone. If he/she doesn’t respond to warnings and training, remove him/her. Personal safety and liability lawsuits are at stake. Remember … you are responsible.

Computer viruses. What a pain! Viruses continue to spread because of computers that are not equipped with virus scanning software and the latest virus definitions (the code that identifies old and new viruses).

Modern viruses automatically re-send themselves via e-mail from an infected computer. And they forge the e-mail’s “from” address. This way the recipient thinks the infected e-mail came from someone else. Devious.

To stop the spread of computer viruses, here are 3 simple – and absolutely critical – steps everyone must take according to Internet guru Lucas Jans:

1. Purchase and install a virus scanner. I recommend Norton Anti-Virus, but there are a number of good products.

2. Set your Virus scanner to automatically update the virus definitions. This should be done every night at a minimum.

3. Sometimes virus scanners aren't enough. A little skepticism goes a long way. Use this fail-proof method … Never open an e-mail attachment unless you’re expecting it. If you aren't sure, e-mail the sender back and check with them. It takes only seconds, but could save you from major headaches cleaning up your computer if it gets infected.

"What lies behind us and what lies before us are tiny matters compared to what lies within us."
William Morrow

Referrals are the lifeblood of any business, and there's no better source than you, our clients. This month, we honor

who spread the word of our agency and brought us new clients. For this referral, we present Dr. Kupferman with a gift certificate for $25.00. Thank you, Dr. Kupferman!

Next month's referral business prize winner could be you. Just mention MBS Insurance Services, Inc. to a friend, relative, colleague, whomever. Thank you in advance.

Workplace Safety And Violence – Serious Issues For Any Employer