What Is Workers Compensation?

Workers compensation provides wages and medical care costs for people who are injured on the job. Employers pay for workers comp coverage, and employees don’t contribute to the fund.

A workers compensation is paid if the employer or insurance company confirms that the injury or illness was work-related. If the insurer or employer rejects the workers comp claim, a workers compensation judge decides on the case.

In addition to paying for injuries and rehabilitation, workers compensation may compensate a family after a work-related death.

What Does Workers Comp Insurance Cover?

Here’s a brief look at the benefits that are covered by Workers Compensation Insurance:

Medical expenses including hospital visits, medications and emergency surgeries are all covered by workers compensation.

• Lost wages are partially covered when the employee needs time away from work to recover from a work-related illness or injury.
• Disability benefits are available if the injury caused a partial or permanent disability.
• Ongoing care costs, such as physical therapy, are covered by workers compensation.
• Death benefits typically include funeral costs and survivor benefits for the worker’s family.

Workers comp benefits are paid no matter who was at fault. And workers compensation laws typically prevent employees from suing their employers for a work-related injury or illness.

What Does Workers Compensation Insurance Not Cover?

Employees are covered for workers compensation regardless of the number of hours they work.

However, there are exclusions, which could result in a denied workers comp claim, including:

• Commuting: Traveling to and from work is typically excluded from workers comp coverage. A person may be covered if they’re in a company vehicle or don’t have a physical office, such as a traveling salesperson.
• Intoxication or substance abuse: Many states exclude workers compensation coverage if the injured person was intoxicated and that contributed to the injury.
• Workplace fight: If an injury happens during a fight with a colleague, workers compensation may not cover the injuries. One exception is if the fight was about work.

Where to Buy Workers Compensation Insurance

Need to buy workers compensation insurance for your employees? You’ve got different options depending on your state: You might buy workers comp from private insurance companies or purchase it from a state-run agency—or you might have both options.

Private workers compensation insurance companies set their own prices and approve or reject customers. You may get a better price from a private insurer than from a state fund.

If you are not able to purchase the workers compensation coverage that you want from a private insurer, you may want to check out a state-funded program.

In a competitive, state-funded workers comp program, private insurers and state-funded programs compete for customers.

In monolithic, state-funded workers comp programs, businesses have no choice but to get workers compensation coverage from a state-funded program. Ohio, North Dakota, Washington and Wyoming are examples of states with monolithic state-funded programs for workers compensation.

How Much Does Workers Compensation Cost?

Workers Compensation premiums are based on the job classifications of employees and these classifications reflect the riskiness of the job. For example, a construction worker or electrician would be considered high-risk jobs. Other high-risk jobs include police officers, firefighters, lumberjacks and telecommunications repair workers.

The payroll of the business and any past workers comp claims also impact workers compensation premiums.

Workers Compensation insurance costs an average of $1 for every $100 in payroll, according to The Hartford. This average varies considerably by state.

“If there is confusion about workers comp, it’s usually around how the premium is determined in part by the number of employees on the payroll,” says Andrew Dalton, assistant vice president for The Hartford’s small commercial workers compensation line of business. “Each year, state law typically requires every workers comp insurance company to perform an audit of the premium paid.”

“It’s important to keep in mind that this audit is required and it’s important to be certain that the business owner is accounting for their employees throughout the year,” Dalton says.

The audit looks at the past year’s payroll for the business and determines whether premiums were over- or under-collected, or just right. It also determines what the next year’s premium should be. This audit can result in the business owner getting a refund or credit or owing more on their workers comp premium.

Risk Control for Workers Comp Claims

By working to control your business’s risk of workers comp claims, you can keep control of future premiums.  Training employees on workplace safety is a key approach to minimizing worker injuries and accidents. Many states offer workers compensation insurance discounts if the business implements a workplace safety program.  Morning Star Insurance has a free safety program available to our clients that will help you do just that!

In conclusion, the best way to be certain you’ve got the right insurance for your business, including workers comp, is to speak with one of our licensed & experienced agents here at Morning Star Insurance.  Give us a call toll-free at 1-866-546-5598- we have many Carriers that we work with and we’ll be able to find the best and most cost-effective coverage for your business!

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On January 17, 1994, a magnitude 6.7 earthquake struck the San Fernando Valley region of Los Angeles, killing 57 people & causing billions of dollars in damage. It’s easy for us to forget the devastation of a catastrophic event, but the 25th Anniversary of the Northridge Earthquake is a perfect reminder of the importance of being fully prepared by having an adequate Earthquake insurance policy. Click here to see photos of the devastation.

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Research indicates that millions of U.S. households own insurance policies that are seriously out-of-date. As a result, the following questions should be asked. If the answer to one or more of these questions is yes, then you should contact your insurance agent as soon as possible so your insurance policies can be appropriately updated.

• Has your house undergone major renovations or improvements? If so, your home may be underinsured.

• Has your marital status changed? If you have married, for example, you may now qualify for a multi-car discount on your auto insurance.

• Have you purchased new valuables or collectibles? If so, you may be seriously underinsured for these items. Specialty policies or endorsements can properly cover them.

• Are you now participating in a carpool? If so, your exposure to injuring passengers has grown and your liability limits may need to be increased.

• Are you now retired? If so, your auto insurance premium will likely drop since your annual mileage should decrease.

• Have you added a burglar alarm with central station reporting for your home? If so, you could qualify for a homeowner’s premium discount.

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A 4-QUESTION QUIZ.

1. Does my company rely on any digital critical infrastructure to function and/or make money?

Think email, internal systems, network machines, dispatch systems, etc. If your company relies on any piece of technology described above and would be unable to generate revenue if this infrastructure was compromised – then cyber insurance can help put you at ease.

2. Does my company keep any records of customers or employees? How many?

Records consist of email lists, mailing lists, any password information including security questions, driver’s license numbers, passport or other ID information, and miscellaneous data that could identify a client, customer, or employee. As a general rule of thumb – multiply that number by $200-$400 per unit. That’s about what it would cost (at a minimum) to notify and remediate any breach costs to customers or employees. This doesn’t include costs associated with litigation, or any fines or penalties for not precisely following the letter of various state and international laws, PR expenses to save your brand and help your customers, etc.

3. Do my employees use computers, phones, tablets?

One of the largest risks to your company are employee mistakes. Opening a bad email attachment, clicking on the wrong link, or accidentally giving out personal information can all lead to large cyber breach incidents. In such a case, malware is instantly installed on your system, allowing outside access to your data infrastructure, which can result in shutdowns, data breaches, or even falling victim to socially engineered attacks.

4. If I was notified of a data breach today, would I know the first thing to do?

Dealing with a cyber breach is never a simple task. But if your company is insured, you can take a step back and relax. Good cyber insurance comes with breach coaches, data specialists, and legal experts to assist you around the clock. In the case of a data breach, it’s their job to keep your business compliant, keep all costs to a minimum, and get you back to working order as soon as possible.

For a quick cyber insurance quote, please complete the information in the Quick Quote box at the top of this page, or give us a call at Morning Star Agency Insurance Services at (949) 833-2030 and speak with one of our licensed & experienced agents!

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Teens eager to drive often have parents equally concerned about keeping their new drivers safe. In fact, the rate of fatal crashes per mile driven for teen drivers is 3X that of drivers over age 20.¹ The reality is that novice drivers can take years to develop real-world experience behind the wheel.

Until then, parents can set expectations for safe driving behaviors, provide opportunities to practice in a safe environment and stay involved, even after their teen earns a driver’s license. Help teen drivers stay safe behind the wheel by preparing them for risks on the road with this teen driver timeline.

One Year in Advance: Set a Good Example

Starting long before your teen receives his or her driver’s license, demonstrate the kind of safe driving behaviors you will expect from your teen, including never driving while distracted by technology. It should be an easier conversation when it comes to setting expectations when your teen gets behind the wheel if those expectations reflect your own behavior.

While distracted driving is dangerous for all drivers, Dr. Charlie Klauer, who studies teen risk and injury prevention at the Virginia Tech Transportation Institute, has found that the risks are much higher for novice drivers who engage in manual-visual tasks, such as texting while driving.²

Less Than a Year in Advance: Discuss Dangerous Behaviors

Parents can help teens understand how certain behaviors behind the wheel may increase the risk of a crash. These behaviors include speeding, tailgating, drowsy driving or driving under the influence of alcohol or while distracted. Engaging in two or more of these behaviors at the same time may greatly increase the risk of crashes, according to Dr. Klauer.³ Parents should discuss the importance of safe speeds, a safe following distance and being aware of potentially dangerous conditions.

Six Months in Advance: Set Specific Expectations

Talk with your teen about his or her plans for driving. If your teen plans to drive, does he or she plan to drive every day? Does he or she plan on owning a car? Discuss the potential risks of driving, including legal and financial responsibilities, which can include insurance premiums, repair costs and fines for unsafe driving.

Establish the rules of the house, including when and where your teen is allowed to drive, so he or she knows your expectations. For example:

• Do you want them to turn off their smartphone so they will not be distracted while driving?
• Do you want them to reach a certain number of hours or miles driven before they can have passengers other than adult family members?
• Do you want to set specific rules about driving at night or during inclement weather?

There are also teen driver apps that can monitor driving behavior, including speeding.

Four Months in Advance: Know the Rules of the Road

Many states have extensive learner’s permits and graduated driver’s license laws. It is important to learn the rules and guidelines for your state. Strive not to just meet the minimum requirements, such as hours driven with supervision, but to exceed them. Most state departments of motor vehicles (DMVs) offer a driver’s handbook, which may also be available online.

• Take any necessary classroom instruction to prepare your teen for getting a license.
• Practice, practice, practice. It takes a long time to learn how to drive well. The more a new driver gains experience, the better. New drivers can practice in empty parking lots and other low-traffic areas to develop their skills.
• Know the car. Have your teen get familiar with the vehicle and all of the controls, such as how to turn on the windshield wipers, headlamps, hazard lights and set the emergency brake.

Three Months in Advance: Plan for the Unexpected

Talk with teens about what to do if they are in a car accident. Do not assume new drivers instinctively know the basics, such as getting the other driver’s insurance and contact information, calling the police, taking pictures, completing an accident report and notifying your insurance company as soon as possible.

Help them pack an emergency kit for the car and discuss what they will do if their car breaks down on the road, including getting the car to a safe place before they get out. Make sure they have the number for roadside assistance, if you have a service that they can call.

Road Test Day and Beyond: Continue the Conversation

Stay involved with your teen driver even after he or she gets a driver’s license. Let him or her know it’s okay to ask you for help or for more practice. Encourage your teen to only drive in conditions where he or she feels safe. Continually review the safety guidelines, including prohibition of use of portable electronic devices while driving, which you discussed before they earned their license, so it remains top-of-mind.

Remember, even after a new driver takes the keys, continuing to talk about your expectations for safe behavior can help reinforce good decisions.

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6 HOME RENOVATIONS THAT CAN AFFECT YOUR INSURANCE

If you’re planning a home renovation, you may want to call your insurance agent first because this decision can impact your homeowners insurance. Some home renovations will change the amount of coverage you need, while others could even help you qualify for a discount. We cover six common scenarios that could affect your insurance, so you can plan ahead.

1. Building a New Addition

When you expand and improve your home, you could likely increase its replacement value. This is the cost to repair or rebuild your home. Some additions that could increase your replacement value include: adding a second-story bedroom, expanding the living room or building a new garage.

After building a new addition, or making updates or other improvements, you may need to increase your coverage because the value of your home, and the cost to rebuild it will likely have increased. Most insurance companies require your Coverage A or dwelling coverage limit be at least 80 percent of the replacement value of your home.

Your insurance agent can recalculate your home value to determine whether you’ll need more coverage because of the addition or improvement.

2. Building a Pool

If you’re looking to add a pool, you will want to contact your insurance agent to review coverage for changes to your property’s value, as well as any increase in risk. When people are swimming and running around the pool, there’s the chance for an accident. If someone gets hurt, they could try to hold you responsible for damages. This can apply even if the accident isn’t your fault.

Check with your agent to see whether your existing policy covers a pool and if you need to increase your liability coverage. This coverage can help pay damages to injured persons and provide for a defense if you are sued as a result of their injuries.

You should also ask your agent what steps you can take to keep your pool safe so you can avoid accidents. Adding a fence with a lock is a smart move. You could also add lights with motion sensors or a pool alarm to discourage trespassers. Consider skipping the diving board, because this increases the chance of an accident and your insurance cost.

3. Adding a Deck

A new deck is another improvement that can add value but also risk, especially if the deck is attached to a second story or higher. You should let your agent know that you’ve added a deck, so he or she can adjust your policy as necessary.

4. Renovating the Kitchen

Upgrading the kitchen can significantly increase the value of your home, especially if you switch to higher-quality counter tops, appliances and new flooring. You should contact your agent to see if you need to increase your insurance coverage.

If your contractor upgrades the plumbing or electrical wiring as part of the renovation, ask your homeowners insurance agent if you qualify for a discount or if your coverage needs to be adjusted. These upgrades can reduce the chance of flooding water damage and fire, so check if your insurance company has discounts that can help to reduce your premium.

5. Finishing the Basement

Finishing your basement can also increase the value of your home. That means, yet again, you may need more homeowners coverage. Flooding can be a concern, especially for the lowest floor in your house. It is important to note that most homeowners’ insurance policies do not cover damage caused by floods. Ask your agent to review your coverage and look to see if there are steps you can take to help prevent future damage, like installing a sump pump.

6. Redoing the Roof

Before you redo your roof, ask your insurance agent whether this could qualify for a discount. Some companies offer a discount when you reinforce the roof or use stronger roofing materials that are wind, hail and leak-resistant. Your agent can explain how to qualify. At the same time, redoing the roof could increase your property value, which means you might need more coverage.

It is a good idea to contact your agent when you’re considering making home renovations.  Give us a call here at Morning Star Agency Insurance Services at 949-833-2030 or email us at service@morningstarinsurance.com.  Our knowledge and expertise can help you get the most out of your discounts while making sure your home is adequately insured!

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Top 5 Reasons Why Consumers Should Use an Insurance Broker

Consumers generally think they benefit when they buy insurance direct, but is it true?

To find out, one group of researchers asked people what matters to them when buying insurance, and in turn the research panel used those criteria to evaluate the differences between buying insurance via a broker and buying direct online.

Why do consumers hate the middle man?

Primarily, customers perceive any middle man as an unnecessary third party, and conventional wisdom dictates that this means additional cost and possibly mistakes. Advertising by many insurers to ‘go direct’ has compounded this feeling.

What is important to consumers?

In order of importance, these are the things people said matter to them:

1. Cost
2. Ease
3. Speed
4. Peace of mind that everything is covered.
5. Security of personal data.

So let’s now analyze these items and let the research panel judge how each performs when insurance is bought directly or when through a broker.

1. Cost

Contrary to popular consumer belief the panel found that broker pricing was actually better than direct insurance pricing.

The reason for this seems to be principally due to insurers providing different rates to brokers, in order that premiums are lower. Why would insurers provide special broker pricing? Simple: because the risk is lower for the insurer. Brokers are professionally trained to choose the right policy for their customers, and not to under insure, therefore avoiding unnecessary claims while maintaining the correct premium income.

‘Cutting out the middle man’ it seems, does not save money this time. On the contrary!

2. Ease

Many of the consumers in the research panel’s test case were surprised here. At least half began their test with the impression that buying policies direct from the Carrier would be the easiest option for them. After trying both, almost all had changed their mind.

While the online experience usually proved more pleasant than the phone, most brokers offered an online service, and were far, far more pro-active after they received the initial quote request from the consumer, often answering queries by personal email or call and helping to reassure customers with a human service. Furthermore, most direct services completely fell down when queries or changes were required that were less common, particularly later in the policy life cycle. Brokers really shone through here.

3. Speed

The results here were quite evenly balanced. In the case of the time taken to generate initial quotation figures, direct services (online) were consistently very quick, while some brokers answered quote requests by personal follow up.

The difference however was somewhat reversed when it came to mid-term changes, documentation requests, and unique or difficult questions. The direct services often fell back to large call centers whose staff had little or no real insurance knowledge. In these areas brokers were more efficient, making suggestions the consumers found highly useful, saving them lots of time.

On balance, the speed at which quotes were produced by the direct services was not significant to the consumers when compared to the speed and efficiency with which brokers generally managed their policies throughout the policy life cycle.

4. Peace of mind that everything is covered

The research panel saw few surprises here. Brokers were largely far more efficient at cross checking policies than consumers, and also very good at educating their customers, explaining what types of coverage were available and answering questions.

Direct processes were better than in the past but put too much focus on the consumer to do this work himself/herself to be able to compete with the level of service provided by brokers.

The really good direct services centered on only covering the low risk policies, and leaving any consumer with non-standard requirements high and dry.

5. Security of personal data

This was a difficult one to test, and fell largely to the panel’s technical team. They did however take into account how consumers felt about their data security after using the various services.

In the case of Internet-based services, the direct services tended to follow security guidelines marginally better than broker services, mainly due to the size of the organizations involved and lack of good software on the part of some brokers

On the phone however, the researchers saw a different story. Brokers, being far better equipped to deal with specific insurance questions and used to a human discussion, gave people a stronger feeling that they were in safe hands. The process of securing personal data was much the same as with direct, but the trust conveyed by brokers was better.

As a side note, here at Morning Star Insurance Agency Insurance Services, we are dedicated to keeping your personal data secure by using the most sophisticated and up-to-date management information systems, so you can rest be assured your information is safe with us.

Summary of Results

So who won?  Broker or Direct?

1. [Broker]
2. [Broker!]
3. [Broker, though people admitted they were heavily biased due to point 2.]
4. Peace of mind that everything is covered. [Broker]
5. Security of personal data. [Broker]

Conclusion

We set out in this article to discuss the general perception by consumers that ‘going direct is better’, for the benefit of consumers and brokers on the whole.

While the research panel didn’t test every website and every class of insurance, the results with their test users were conclusive.

Conventional wisdom usually dictates that the middle man offers little to the discussion and always has his price.  But in the complex world of insurance, perhaps things are not so simple, and after seeing the results of the research panel, we are now more certain than ever that using an insurance broker today is more important than ever.

Our recommendation to you would be to trust us, Morning Star Agency Insurance Services, as your broker and let us shop for you, and find you the best possible coverage at the lowest price.  For a quick quote, please complete the information in the Quick Quote box at the top of the page, or give us a call at (949) 833-2030.  We’ll be more than happy to discuss your insurance needs and get you covered!

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If you are ever sued, your standard homeowners or auto policy will provide you with some liability coverage, paying for judgements against you and your attorney’s fees, up to a limit set in the policy. However, in our litigious society, you may want to have an extra layer of liability protection. That’s what a personal umbrella liability policy provides.

An umbrella policy kicks in when you reach the limit on the underlying liability coverage in a homeowners, renters, condo or auto policy. It will also cover you for things such as libel and slander.

Depending on which carrier you choose, for about $300.00 to $500.00 per year you can buy a $1 million personal umbrella liability policy. The next million will cost about $125.00 to $150.00, and approximately $100.00 to $125.00 for every million after that.

Because the personal umbrella policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. Most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your homeowners policy before selling you an umbrella liability policy for $1 million of additional coverage.

For a free instant quote, please complete the information in the Quick Quote box at the top of this page, or to speak to one of our licensed & experienced agents, give us a call at 949-833-2030.  We’ll be happy to find you the coverage that best fits your needs!

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If you are in the market for a new or used auto, it is almost always a good idea to check into the cost of insurance before finalizing your purchase. Generally speaking, expensive cars are also more costly to insure. Moreover, every vehicle has a safety rating that may affect the cost of your premium.

Factory-installed safety features often qualify for premium discounts. For example, air bags, anti-lock brakes and anti-theft systems are the most common features that may earn you discounts on your insurance policy. Anti-lock brakes, in particular, often head the list of auto safety features. Certain states—such as Florida, New Jersey and New York give a discount for this feature. Daytime running lights may also qualify for a discount, as well as automatic seat belts.

After-market installations of automatic seat belts, car alarms and anti-theft devices may also qualify for car safety discounts.

In some states, a Vehicle Identification Number (VIN) window etching qualifies for a discount. After-market window etching, in particular, tends to be fairly inexpensive and is occasionally offered through local police departments as part of local vehicle theft prevention initiatives.

To save the most on your auto insurance,  please complete the information in the Quick Quote box at the top of this page or give us a call at 949-833-2030.  We work with many different carriers and we know to find you the best coverage at the lowest price!

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Business insurance is one of those gray areas.  Do you need it or don’t you, and, if so, what kind?  For certain businesses – for example, amusement parks and healthcare related industries – it’s an absolute necessity from the get-go, but what if you run a freelance business or engage in low-risk work?  Is business insurance a requirement?

While it may not seem so from the outset, as your business grows and takes on additional risk, business insurance quickly becomes a must.  The problem is that many smaller businesses ignore the issue of insurance until it’s too late.

One reason for this is that many small businesses often assume that by forming a Limited Liability Company (LLC), they’ll be afforded protection in the event of a lawsuit.  However, while this structure can protect you from personal liability for business decisions or actions of the LLC, the liability protection is limited.

For example, if you inadvertently break intellectual property laws or are sued by an employee, you could face a lawsuit and potential losses that being an LLC cannot protect you against.

Of course, LLCs aren’t the only business structure that can benefit from business insurance. Sole proprietors, partnerships, S-Corps and Corporations all need insurance.

But what kind of insurance do you need? Here are four forms of coverage that you should consider over and above healthcare insurance and any usual employer insurance obligations:

General Liability Insurance –This is the silver bullet for protecting you, your business and your employees from any damages incurred as the result of bodily injury, property damage, medical expenses, libel, slander, the cost of defending lawsuits, and settlement bonds or judgments required during an appeal procedure.

General liability insurance is often sold as a catch-all and includes numerous add-ons that you can tailor to your business and its degree of risk.  For example, if non-paying clients are a concern, you can add accounts receivable protection to your policy. Inland marine coverage is another option that can protect against loss or damage to business property when it’s not on your premises.

It’s also worth noting that oftentimes a client will request evidence of your certificate of general liability before doing business with you – another good reason to secure a policy before it holds up any potential new work.

Property Insurance – Whether you own commercial real estate or run a home-based business, protect your assets and the equipment, fixtures and furniture inside of it.  Property insurance is often rolled into general liability insurance– check with your broker to be sure. Home business owners should also be aware that home insurance doesn’t always cover home-based business losses.  You may need to add additional riders to your home insurance policy or get other insurance to cover additional risk.

Professional Liability Insurance – Also known as errors and omissions insurance, this insurance protects against errors, malpractice and negligence in the provision of services to your customers.  This is often recommended to businesses who provide services such as tax or financial advice, as well as physicians (who are often required by state law to carry this insurance).

Product Insurance – This protects businesses that manufacture, distribute and retail products against any financial loss incurred because of a defective product that causes harm or injury.  Product insurance can also be tagged on to a general business liability insurance policy.

The Bottom Line

Insurance can be a confusing business.  We can help de-mystify this process and review your current policies and make sure you have the coverage you need.  For a quick quote, please complete the information in the Quick Quote box at the top of this page, or give us a call here at Morning Star Agency Insurance Services at (949) 833-2030.  We look forward to hearing from you!

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