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What Insurance Do Gig Workers Need? A Complete Guide for Independent Contractors

Fri, 27 Mar 2026 22:53:24 GMT

What Insurance Do Gig Workers Need to Protect Themselves?

Roughly 38% of Americans are gig workers, and this number is continuing to rise . Unlike traditional employees, gig workers are responsible for their own insurance. The type of insurance varies by the nature of the work, but most gig workers face real risks, and those who work through an app may face gaps in coverage.

Most gig workers should consider general liability, professional liability, commercial auto insurance, health insurance, and income protection (such as disability).

Understanding the coverage you need and gaps you face will help protect you, others, and your future. We break this down below.

What is a Gig Worker?

A gig worker is a person who does project-based, temporary, or on-demand jobs. They are paid by the “gig” instead of earning a salary through traditional, full-time employment.

Common examples of gig workers include rideshare and delivery drivers, freelancers (like designers, writers, and consultants), pet sitters, home service providers, photographers, virtual assistants, tutors, and other independent contractors hired for specific projects.

Because gig workers are not employees, they are usually classified as independent contractors. As such, they are not eligible for employee benefits and need to manage their own taxes, schedules, and insurance.

Gig Worker vs. Independent Contractor: What’s the Difference?

Gig workers are independent contractors, which is why the terms are often used interchangeably. However, being a “gig worker” is not how you are classified; it simply defines the type of work arrangement you pursue.

People are often attracted to gig work because it offers the opportunity to control their time, schedule, and how much they work. Gig work also provides an income opportunity for those surviving layoffs, and/or needing to pick up additional income.

The challenge gig workers face is that they are less protected, which is why it’s especially important to talk to an experienced insurance professional who can advise on the best insurance coverage options.

Common Gig Worker Insurance Myths

Myth: gig workers are fully covered by the app they work through, like Uber.
Myth: personal auto insurance covers incidents involving gig work.
Myth: a gig worker is “too small” or can fly under the radar.
Gig workers may underestimate their coverage needs or overestimate current coverage.
Myth: gig workers don’t need workers' comp since they don’t employ anyone.

What Insurance Do Gig Workers Need? (Key Coverage Types Explained)

Now that we’ve dispelled common myths around gig work and insurance, let’s dive into reality.

There are five main insurance categories gig workers should consider:

Commercial Auto or Rideshare Coverage: This can provide liability and vehicle damage coverage when using a personal car on the job. Personal auto insurance typically excludes gig-related driving.

Example: Your personal auto policy denies a delivery accident claim.

Cyber Liability Insurance: Anyone handling client data online should strongly consider purchasing cyber liability insurance. Additionally, adopting cybersecurity best practices is essential (see 9 Common Cybersecurity Mistakes Remote Workers Make) . Remember, a lot of business is conducted online, even for non-tech companies!

Example: Client data is compromised through your email, and you're liable.

General Liability: This insurance covers claims arising from third-party injuries, property damage, or personal and advertising injuries. It may also cover associated legal defense costs.

Example: A client trips over your equipment and gets injured.

Health Insurance: Coverage through the ACA Marketplace or Medicare can help with doctor's visits, prescriptions, lab work, and hospital care.

Example: A single hospital visit generates a bill you wouldn’t be able to pay out of pocket.

Life Insurance: This type of insurance provides financial support for beneficiaries if the gig worker passes away.

Example: If you were to pass away, life insurance could help your family cover costs like your mortgage, rent, or bills.

Professional Liability Insurance : (also known as errors and omissions insurance) protects against claims of negligence or mistakes, specifically addressing financial losses clients may face related to your services.

Example: A mistake costs a client thousands, and you must pay.

Property/Equipment Coverage: Insures tools and equipment against theft or damage, such as a stolen camera or specialized tools.

Example: Your specialized tools are stolen during a job.

Workers' Comp Insurance: This one may be surprising, but it’s worth considering, especially for those working in environments with a higher risk of injury. It’s worth noting that in California, app-based gig workers are usually classified as independent contractors, meaning they are not protected by the app company’s workers' comp policy. Disability insurance is another option gig workers may consider if they can’t work due to injury or illness.

Example: You injure your back on the job and can't work for weeks.

When Does App Insurance Cover Gig Workers, and When Does It Not?

For independent contractors working through apps like DoorDash, Uber, or TaskRabbit, there’s a lot of confusion about when coverage begins and ends. The short answer is that it usually depends on what phase of work you’re in.

“It's important for the gig worker to know where the app/platform liability coverage ends and when theirs begins,” says Chris Jorge, broker at Fusco, Orsini & Associates Insurance Services. “Gig workers should connect with an insurance professional to review all insurance documents closely and to get a clear understanding of their responsibilities and liability.”

How Much Does Gig Worker Insurance Cost?

Premiums vary based on many factors, such as the nature of your work, how much you work, where you work, claims history, policy limits, and more.

Next Steps

If you are a gig worker, it’s time to think about insurance not as a backup plan, but as an active way to protect yourself, others, and your tools and equipment. You’ve already taken the courageous step of “going solo”, but you don’t have to be solo in your insurance journey. We’re here to help! Get started HERE.

Sources:

Zywave: Infographic: Do Gig Workers Need Insurance?

AI Disclosure:

Portions of this content were generated with the assistance of ChatGPT (OpenAI) on March 25, 2026, and reviewed by our insurance team for accuracy.

Disclaimer:

This information is intended for reference only and should not be considered as financial or legal advice. Consult with a qualified professional for personalized guidance.

DOL 2026 Independent Contractor Rule: What SMBs Should Know

Thu, 12 Mar 2026 20:44:18 GMT

What small and mid-sized businesses should do now to prepare for possible classification changes

On Feb. 26, 2026, the U.S. Department of Labor (DOL) announced a proposed rule that could change how businesses classify workers as employees or independent contractors under the Fair Labor Standards Act (FLSA).

The proposal would rescind the DOL’s 2024 independent contractor rule and replace it with an employee classification analysis similar to the framework the department adopted in 2021. The proposed rule was published in the Federal Register on Feb. 27, 2026.

For small and mid-sized businesses that rely on independent contractors , this potential change raises important questions about how worker relationships are evaluated. To better understand the impact, it's useful to look at the possible shift back to an “economic realities” analysis, which considers factors such as:

If a worker is in business for themself, or is an employee economically dependent on an employer for work

Further considered factors are:

a worker’s level of independence and control over their work
a worker’s opportunity for profit or loss based on initiative and/or investment
the amount of skill required for the work
the degree of permanence of the working relationship; and
if the work is part of an integrated unit of production

Given these factors, SMBs that use freelancers, gig workers, or other independent contractors should closely monitor the rulemaking process and review their current worker classification practices in anticipation of potential changes. The DOL is currently accepting public comments through April 28, 2026, before deciding whether to issue a final rule.

So, what practical actions should SMBs take right now in light of the proposed independent contractor rule?

Because the rule is still in the proposal stage, no immediate changes are required. However, auditing contractor relationships and tightening documentation now can reduce compliance risk if the rule is finalized.

Here are 5 practical steps SMBs can take now:

1. Review Your Current Contractor Relationships

Conduct a quick audit of workers currently classified as independent contractors, focusing on:

Degree of control you exercise over their work (schedule, methods, supervision)
If the worker is economically dependent on your business
If the worker serves multiple clients or primarily works for you
Whether the work is core to your business operations

If contractors look more like employees under these factors, they could present risk if the rule is finalized.

2. Document the Business Relationship

Make sure contractor arrangements are clearly documented:

Written independent contractor agreements
Scope of work and project-based deliverables
Payment terms based on projects or outcomes
Statements confirming that the contractor controls how work is performed

Documentation alone won’t determine classification, but it helps demonstrate intent.

3. Reduce Employee-Like Controls Where Possible

SMBs should evaluate operational practices such as:

Setting strict work schedules
Requiring contractors to use company systems or equipment
Managing contractors like staff through performance reviews and related processes

The more control exercised, the greater the risk of employee classification.

4. Consider Structural Alternatives

Some SMBs may start evaluating alternatives such as:

Using project-based contractors
Working through staffing agencies
Converting certain long-term contractors to part-time employees, and clearly ending the contractor relationship and starting a new employment relationship

5. Evaluate Financial Exposure

If contractors are reclassified as employees, SMBs could face liability for:

Back wages and overtime
Payroll taxes
Benefits and leave
Potential penalties

Conduct a classification risk assessment now to avoid surprises. Contact our HR Advisory team for support.

What is a real-life example of an independent contractor vs. employee?

The job itself (electrician, carpenter, graphic designer, VA, etc.) does not determine classification. What matters is how the relationship operates in practice.

Here’s a general example:

If you still have questions after reviewing this example, you're welcome to book an intro call with our HR advisory team HERE .

Sources:

Zywave: Legal Update - DOL Announces Proposed Independent Contractor Rule

AI Disclosure:

Portions of this content were generated with the assistance of ChatGPT (OpenAI) on March 12, 2026, and reviewed by our insurance team for accuracy.

Disclaimer:

This information is intended for reference only and should not be considered as financial or legal advice. Consult with a qualified professional for personalized guidance.

Does General Liability Cover Pollution? Guide for Contractors and Small Businesses

Wed, 25 Feb 2026 17:03:37 GMT

Most general liability policies exclude pollution claims, which means routine jobsite incidents may not be covered.

When SMB owners or contractors hear “environmental exposure,” they often picture a refinery spill. But in reality, most environmental claims come from routine, everyday operations. Here are a few practical examples:

Diesel spill while refueling
Slurry entering a storm drain
VOC fumes entering an adjacent tenant space
Refrigerant release during HVAC service

Environmental liability is not about labeling businesses as “polluters.” It is about protecting your business if materials such as paint, fuel, or debris accidentally end up where they should not.

It is important to supplement your general liability and commercial property insurance with additional environmental liability coverage. Here’s why.

Most general liability policies include a total pollution exclusion . This means they usually do not pay for harm to air, water, or land caused by pollution from your business. Environmental liability policies, also called Pollution Liability or Contractors Pollution Liability, are specialized insurance policies that help cover these risks.

To better understand how these exposures might affect your business, here are more examples of environmental liability:

Environmental liability can arise when pollution occurs during routine operations, such as waste-disposal failures, fuel or chemical spills, emissions, contamination from storage tanks, mold issues, paint overspray, exposures during transportation, and more. Liability can also result from operating or owning contaminated sites, as well as from incidents involving suppliers or subcontractors.

Let’s look at the potential consequences small businesses may face due to environmental exposures:

Clean up and remediation costs
Third-party property damage and associated costs
Regulatory involvement and fines from the Environmental Protection Agency
Legal defense
Operational disruptions or shutdowns

For contractors, these risks carry particular importance:

If you’re a contractor, contracts often place pollution responsibility on you. It’s so important to ensure that your insurance matches your contract requirements. And remember, most claims arise from routine work, not rare events, so having coverage is key!

To proactively manage environmental risks, small businesses and contractors should consider the following:

1. Look at Where Materials are Stored, Moved, Disturbed, and Disposed of:

Where are materials stored?
What fuels, chemicals, dust, or waste does your business generate?
Where could leaks, spills, migration, or runoff occur?
Who is responsible at each step?
Are you conducting workforce training that covers this?

2. Prepare for First Response

Maintain a prompt and controlled emergency response plan and business continuity plan.

3. Review Contracts Carefully

Review your contracts for broad pollution indemnification language, cleanup obligations regardless of fault, and requirements for Contractors' Pollution Liability coverage.

4. Vet Your Subcontractors

You could inherit subcontractor risks, so request and review Certificates of Insurance (COIs) for pollution coverage, waste-handling responsibilities, and documented waste-handling procedures.

5. Review Your Insurance

Review your insurance coverage to make sure you are protected if you cause or face environmental losses. These include accidental pollution and contamination (when unwanted substances enter the environment). Ask your broker about Pollution Liability or Contractors' Pollution Liability insurance, which can help cover costs related to pollution events.

At Fusco Orsini & Associates, we often recommend an Environmental Liability Package , which includes General Liability, Pollution Liability, and (sometimes) Professional Liability for remediation contractors, such as those handling water and mold mitigation.

6. Document Everything

Keep records of disposal manifests (documents tracking waste), training logs, jobsite inspections, and spill response actions. For more on what to do in the 48 hours after a claim, see our guide.

7. Conduct Due Diligence

Conduct due diligence on sites, properties, legacy contamination, and supply chain activities.

8. Know the Law

Routinely review your business’s responsibilities under local, state, and federal environmental regulations (laws and rules about protecting the environment). Also, conduct periodic environmental audits (checks to identify possible environmental problems) to reduce risks.

While this guide doesn’t cover everything, it does outline several steps you can take to prepare your business for potential environmental risks and responsibilities. If you’d like a hand getting ahead of it, please contact our brokers who help SMBs and contractors understand their policies and improve their risk strategies daily.

Sources:

Zywave: Risk Insights - Understanding Environmental Liability Exposures for Businesses

AI Disclosure:

Portions of this content were generated with the assistance of ChatGPT (OpenAI) on February 24, 2026, and reviewed by our insurance team for accuracy.

Disclaimer:

This information is intended for reference only and should not be considered as financial or legal advice. Consult with a qualified professional for personalized guidance.

How to Respond to a General Liability Claim (Small Business Guide)

Fri, 13 Feb 2026 00:10:05 GMT

What to document, who to notify, and how to avoid costly mistakes when a claim arises.

Unexpected incidents can occur in any small business, such as a customer slipping and falling, a subcontractor damaging property, or a client alleging your work caused financial loss.

A general liability claim means you do business in the real world, not that you run a bad business. How you respond determines the claim’s impact.

A delayed or poorly documented response can cost your business:

Raised insurance premiums
Coverage disputes
Legal expenses
Damage to reputation
In severe cases, business closure

In contrast, a prompt, well-documented response provides your insurance carrier and defense team with the information they need to protect your small- or midsize business.

This guide will help you respond confidently.

What is a general liability claim?

A general liability (GL) claim usually involves:

Third-party bodily injury (e.g., slip-and-fall)
Third-party property damage
Personal or advertising injury (e.g., libel, slander)
Damage caused by your operations

If someone alleges your business caused harm or damage, your general liability insurance may respond if you manage the situation appropriately. Next, we will clarify the difference between a potential and an active claim.

What’s the difference between a potential claim and an active claim?

What is a potential claim?

A potential claim arises when an incident occurs, but no formal demand, lawsuit, or written request for compensation has been made. Examples include:

A job site injury occurs, but the person says they’re “fine.”
A client says your work “cost them money.”
A subcontractor suggests they may seek damages.
A customer complains about damage but hasn’t requested payment.

You believe the situation could escalate into a claim.

What is an active claim?

An active claim exists when:

You receive a written demand for money.
A lawsuit is filed.
A demand letter is sent.
An attorney contacts you.
Your insurance carrier formally opens a claim.

At this stage, the claim is active.

How do you respond to a potential general liability claim?

If you believe a claim may arise, act promptly.

1. Secure the area

If the incident involves your premises or operations:

Prevent further injury or property damage.
Call 911 if necessary.
Encourage injured parties to seek medical attention.
Complete a formal incident investigation report.

Establishing an incident response procedure can help protect your business over time.

2. Document the situation immediately

Take photos from multiple angles.
Preserve video footage.
Write down the date, time, weather, and conditions.
Collect witness statements from employees.
Secure contracts and scope of work.
Preserve maintenance logs.

If property damage has occurred, document it thoroughly before making any repairs.

3. Do not admit fault

Avoid statements like:

“This was our fault.”
“We’ll pay for it.”
“Our insurance will handle this.”

Instead say:

“We take this seriously.”
“We’re looking into it.”

Admitting fault or offering payment may jeopardize coverage under many insurance policies.

4. Streamline communication

Designate one person to handle all communication.

Do not discuss details internally beyond what’s necessary.
Do not post anything on social media.
Do not argue or assign blame.
Do not discipline employees publicly in response to the incident.

5. Notify your insurance broker and carrier promptly

Delayed claims are often denied. Even if no lawsuit has been filed, the issue appears minor, or the injured party says they will not pursue it, you should still report it.

Provide your broker with an:

Incident report
Photos
Witness statements
Relevant contracts
Maintenance logs

Then, follow your carrier’s instructions.

Why fast action matters for small businesses

Large corporations have in-house legal and risk teams, while most small businesses do not. Decisions made in the first 48 hours often determine the outcome. For small and midsize businesses, a general liability claim is a reality, not a failure. Your long-term stability depends on your response.

To recap, when an incident happens:

Stay calm and secure the premises.
Document it thoroughly.
Avoid admitting fault.
Control communication.
Notify your broker and carrier immediately.

Having an incident response plan and a reachable insurance advisor can make claims manageable rather than overwhelming.

If you are unsure whether your current coverage or procedures are sufficient, review them now rather than waiting for the next incident. We’d be happy to help you through the process - start here.

Sources:

Zywave: Coverage Insights - Best Practices for Responding to General Liability Claims

AI Disclosure:

Portions of this content were generated with the assistance of ChatGPT (OpenAI) on February 13, 2026, and reviewed by our insurance team for accuracy.

Disclaimer:

This information is intended for reference only and should not be considered as financial or legal advice. Consult with a qualified professional for personalized guidance.

What Happens When Your Small Business Is Underinsured?

Thu, 05 Feb 2026 19:37:41 GMT

Key Signs Your Business May Not Be Fully Protected

For small and midsize business (SMB) owners, there’s an important distinction between having insurance and having enough insurance .

Once a policy is purchased or renewed, it’s easy to check the box and move on to the estimated 30-80 operational, financial, and people-related tasks competing for business owners’ attention each day. But that “check the box” moment can be misleading.

Coverage limits, exclusions, sub-limits, and inflation adjustments are often overlooked, and those details largely determine whether your business can recover from a loss.

Underinsurance isn’t obvious, which is why we’re breaking down the most common reasons SMBs end up underinsured, the red flags to watch for, and what to do next.

What Causes Underinsurance for Small and Midsize Businesses?

1. Your business has grown, but your policy hasn’t

As your business grows, your risk profile changes. Common growth triggers that require coverage updates include:

Hiring additional employees
Purchasing new tools, equipment, or vehicles
Expanding to a new location
Increasing revenue or payroll

Your policy limits should change as your business grows. This also applies to property insurance because replacement costs rise over time, often faster than owners expect.

Next step: Work with your broker to review asset values and exposures at least annually or after major changes.

2. You assume your policy “has you covered” without entirely understanding it

Insurance policies are dense, technical documents, and many SMB owners understandably rely on assumptions rather than a thorough understanding. This often leads to surprises around:

Exclusions
Sub-limits
Waiting periods
Coverage triggers

If you don’t know what scenarios are excluded or capped , you may be underinsured even with seemingly high limits.

Next step: Ask your broker to explain, in plain language, what is covered, what is limited, and where claims are most likely to fall short.

3. Cost becomes the primary decision driver

Running a lean business matters, but insurance is not the place to optimize for price. As our co-founder puts it, “Cheap is something poorly made or built to fail.” And that tradeoff only becomes visible after a loss.

Next step: Prioritize good value and the right coverage over the lowest price.

4. New and emerging risks aren’t accounted for

Owners of small businesses don’t always account for emerging risks, such as:

Cybersecurity threats
Remote and hybrid work exposures
Supply chain breakdowns
Climate-related events

For example, SMBs are targeted nearly four times more often than large organizations in cyber incidents, according to Verizon’s 2025 Data Breach Investigations Report (see more). Yet cyber coverage is not typically included in standard business policies.

Next step: Ask your broker which risks are excluded by default, and which require standalone coverage.

5. “So far, so good” thinking

You know when doctors jokingly say they never want to see you again, suggesting that you’ll stay in good health? Similarly, we hope you’ll never have to call us to file a claim due to a catastrophic event.

But, just as good health today doesn’t guarantee good health tomorrow, past luck doesn’t protect against future losses. Underinsurance often persists because business owners maintain “so far, so good” thinking.

Next step: Ensure your coverage accounts for all scenarios, not just ideal scenarios.

How Do You Know If Your Business Is Underinsured?

The best thing you can do is ask a trusted broker to assess your current policies. It’s also wise to ask for an assessment in response to emerging risks, like new cyber threats, climate-related events, etc.

Other red flags that may suggest your business is underinsured include:

You haven’t reviewed policy limits in the past 12+ months.
Your revenue, payroll, staff size, location, or equipment has changed.
Your property is insured at its purchase price, not the current value/replacement cost.
Your business interruption coverage assumes a faster recovery than is realistic today.
You don’t know your sub-limits. A sub-limit is the maximum an insurer will pay for a specific type of loss, even if your overall policy limit is higher.
You rely on your partners’ or vendors’ Certificates of Insurance (COIs) to understand coverage. COIs show proof of insurance, not the details, like exclusions, sub-limits, or conditions.
You couldn’t comfortably pay all deductibles if a loss occurred tomorrow.

If you caught yourself nodding ‘yes’ as you read through this list, you are not alone. These five considerations show up time and again among the SMB and construction SMB business owners we serve.

What Are the Consequences of Underinsurance?

When your business is underinsured, you may face:

Insurance payouts are far lower than expected
Extended downtime
Cash-flow strain
Broken trust and reputational damage with customers, vendors, lenders, etc.
And more

What Should You Do Next?

The good news is that you can change your approach to insurance starting now. Here’s what to do next:

Ask a trusted broker to assess your current policies.
Request an assessment that considers emerging risks like cyber, climate, supply chain, etc.
Look for high-value, right-fit coverage for your business today (not your business yesterday).

Source:

Zywave: Small Business Insights: The Causes and Consequences of Underinsurance

AI Disclosure:

Portions of this content, including red-flag questions, were generated with the assistance of ChatGPT (OpenAI) on February 3, 2026, and reviewed by our insurance team for accuracy.

Disclaimer:

This information is intended for reference only and should not be considered as financial or legal advice. Consult with a qualified professional for personalized guidance.

What Are My Benefit Limits for 2026 and How Do They Compare to 2025?

Tue, 13 Jan 2026 01:29:05 GMT

Quick Summary: In 2026, contribution limits increased for 401(k)s, HSAs, FSAs, and HDHP out-of-pocket maximums. These changes can impact your tax savings, healthcare costs, and retirement planning.

If you’re asking, “What are my benefit limits for 2026, and how do they compare to last year?” you’re not the only one. Benefit limits change, and understanding these changes can help you and your team make smarter decisions during open enrollment and throughout the year.

Below, we break down the 2026 limits for the most common employee benefits , including 401(k)s, HSAs, HDHPs, and FSAs, and we highlight what has changed from 2025.

401(k)

What is a 401(k)?

A 401(k) is an employer-sponsored retirement savings plan that allows employees to contribute a portion of their paychecks, either pre-tax or Roth, toward retirement, often with employer-matching contributions. Funds can grow tax-advantaged until withdrawal in retirement.

What are the 401(k) contribution limits for 2026?

Employee contributions: $24,500
up $1,000 from 2025
Catch-up contributions (age 50+): $8,000
up $500 from 2025
Catch-up contributions (ages 60 to 63): $11,250
no change from 2025

These limits apply per person , across all 401(k) plans you participate in.

What are the advantages of a 401(k) in 2026?

Contributions are automatically deducted from your paycheck, making savings automatic.
The pre-tax contributions reduce taxable income on every paycheck.
Many employers offer matching contributions, which increase your total retirement savings.

Health Savings Account (HSA)

What is a Health Savings Account (HSA)?

A Health Savings Account (HSA) is a tax-advantaged account used to pay for qualified medical expenses if you’re enrolled in an HSA-eligible High Deductible Health Plan (HDHP). Funds roll over year to year and stay in your hands, even if you change jobs.

What’s new for HSAs in 2026?

According to the IRS , the One Big Beautiful Bill (OBBB) has expanded HSA eligibility:

Telehealth services can be covered before meeting the deductible without affecting HSA eligibility
Bronze and catastrophic plans offered through an Exchange are now considered HSA-compatible, even if they don’t meet the traditional HDHP definition

What are the HSA contribution limits for 2026?

Self-only coverage: $4,400
up $100 from 2025
Family coverage: $8,750
up $200 from 2025
Catch-up contribution (age 55+): $1,000
(no change from 2025)

Note: Contribution limits include both employee and employer contributions combined.

What are the advantages of an HSA in 2026?

Contributions are tax-deductible or pre-tax
Funds roll over and can be invested
Withdrawals for qualified medical expenses are tax-free
HSAs can be used as a long-term healthcare and retirement savings tool

High Deductible Health Plan (HDHP)

What is a High Deductible Health Plan (HDHP)?

A High Deductible Health Plan (HDHP) is a health insurance plan with lower monthly premiums and higher upfront costs. You typically pay 100% of most medical expenses until you meet your deductible, after which costs are shared through coinsurance or copays. HDHP enrollment is required to contribute to an HSA.

What are the HDHP limits for 2026?

Minimum deductibles

Self-only: $1,700
up $50 from 2025
Family: $3,400
up $100 from 2025

Maximum out-of-pocket limits

Self-only: $8,500
up $200 from 2025
Family: $17,000
up $400 from 2025

What are the advantages of an HDHP?

Lower monthly premiums
Eligibility to contribute to an HSA
Annual out-of-pocket maximum protects against worst-case medical costs

Flexible Spending Account (FSA)

What is a Flexible Spending Account (FSA)?

A Flexible Spending Account (FSA) is an employer-sponsored benefit that allows employees to set aside pre-tax dollars to pay for eligible healthcare expenses such as copays, prescriptions, dental, and vision care.

What’s the difference between an FSA and an HSA?

FSAs are employer-owned, which means you can’t take the contributed funds with you if you leave
Most FSAs are use-it-or-lose-it, meaning you have to use and claim funds by the end of the year.
Alternatively HSAs are employee-owned, roll over year to year, and can be invested.

What are the FSA contribution limits for 2026?

Healthcare FSA: $3,400
up $100 from 2025
Dependent Care FSA:
$7,500 (single), up $2,500 from 2025
$3,750 (married couples filing separately), up $1,250 from 2025

Why this matters:

Understanding benefit limits helps you:

Maximize tax savings
Avoid unexpected out-of-pocket costs
Choose the right plans for your health and financial goals

If you have questions about how these limits apply to your specific benefits , our Employee Benefits team is here to help. BOOK TIME WITH AN EXPERT.

 Sources:

Zywave, 2026 Limits to Know

Investopedia, Maximize Your HSA: Tax-Free Growth and Retirement Healthcare Savings

IRS, Treasury, IRS provide guidance on new tax benefits for health savings account participants under the One, Big, Beautiful Bill

AI Disclosure:

Portions of this content, including example benefit-related questions, were generated with the assistance of ChatGPT (OpenAI) on January 12, 2026, and reviewed by our Employee Benefits team for accuracy.

Disclaimer:

This information is intended for reference only and should not be considered as financial or legal advice. Consult with a qualified professional for personalized guidance.

Celebrating 15 Years in Business: How Our Approach Has Evolved and Why It Works

Tue, 16 Dec 2025 20:55:35 GMT

How strategy shifts, new capabilities, and a relationship refame are defining our next chapter

This year, Fusco Orsini & Associates Insurance Services celebrates a significant milestone: 15 years in business!

Many folks are aware that half of businesses fail in their first five years. Recently, we learned that only 37.5 percent of insurance and financial companies survive for more than 10 years. We don't share these stats to "toot our horn," but instead, out of deep curiosity.

Staying operational is one thing, but what does it mean to grow, shift, and evolve to remain relevant and impactful? The answer to this question becomes clear when we take a "before" and "after" snapshot of the business.

Before we dive in, we want to acknowledge that many factors impact a business's longevity, including the recent pandemic, which was both painful and unpredictable. There is no one-size-fits-all approach to business, and we are grateful to continue evolving and serving each year.

Here is a snapshot of how we've evolved over the years, with a focus on strategy shifts, new capabilities, and a relationship reframe.

HOW IT STARTED (2010):

When we started the company in 2010, we were focused on providing insurance to individuals and businesses of all sizes in California.
While we sought not to focus on price, many client conversations were motivated by "price" and "shopping around."
We started with three (hungry and experienced) brokers who truly cared about people and wanted to do things differently.
To us, "differently" meant being ready, responsive, and recommendable.
We took a strong teamwork approach to client partnerships.
We only provided insurance.
We embraced change.
We were more task-oriented.

HOW IT'S GOING (15 Years Later):

We still happily serve individuals, but primarily focus on providing right-sized commercial policies to small and medium-sized businesses (SMBs) across more than 30 states.
We guide conversations away from price and toward value and proper risk mitigation. Insurance is not a commodity; it is risk mitigation, and we work to communicate that.
We have grown our team to about two dozen individuals who bring decades of experience in personal and commercial insurance, employee benefits, HR, compliance, technology, and risk management. We also have fun and support each other's growth.
We still seek to do things "differently," but the definition has expanded. More than ever, we are deeply invested in helping clients build strong, stable businesses. We focus on long-term partnerships over short-term transactions. This stance is reflected in our core values , which we stand behind and revisit often.
Teamwork is still a part of our DNA. We work to ensure that our clients feel supported by our team, and our internal staff feel supported by their colleagues and leadership. We even (literally) created teams , like Team Green and Team Blue, to ensure collaboration, efficiency, and a strong team culture.
We increased our offerings to include insurance, employee benefits, HR, and risk management. Why? Because we've grown right alongside our clients and share in their growing pains. We sought out accessible solutions to help our clients keep going, developing, and fortifying their businesses. These strategic advisory services are a part of our brand, 4C Advising .
We still embrace change. From technology advances like bots and large language models to compliance changes, to weathering unforeseen obstacles like natural disasters, to following the industry trends of our clients, we don't shy away from change. If you want to stay relevant, you just can't. We've learned to embrace change with curiosity.
We are big picture thinkers. Instead of just completing tasks for clients, we think bigger and deeper. How can we help this client improve operational efficiencies? How can we help them be proactive? Do they have any blind spots we can help address?

Looking back on where we were and where we are now, we are incredibly proud of the progress we've made. We didn't do things perfectly, but we kept curious, nimble, and communicative. And above all, we didn't lose sight of the businesses and the human beings we serve.

Curious about what a more strategic insurance partnership could look like? Let's talk .

What’s at Stake Without a Business Continuity Plan? Real Examples Explained

Mon, 10 Nov 2025 18:52:05 GMT

What’s at Stake Without a Business Continuity Plan? Real Examples Explained

What Is a Business Continuity Plan (BCP)?

A business continuity plan (BCP) is a documented strategy that helps organizations turn an unexpected crisis into a manageable disruption. Examples of disruptions include cyberattacks, utility outages, supply chain failures, natural disasters, and service outages like the recent Amazon Web Services (AWS) incident.

Why Business Continuity Planning Matters

A business continuity plan outlines procedures and resources to minimize downtime, recover quickly, and ensure business resilience. Every organization, regardless of size or industry, should have a business continuity plan in place to protect its operations, employees, and customers.

In this blog post, we’ll answer common questions about business continuity plans, provide real-world BCP examples, and show how a BCP can help your business to:

Minimize downtime
Attempt to maintain critical operations, including delivering products and services to customers
Keep employees and others safe from harm
Maintain communication, trust, and reputation
Recover

Real-World Examples of Business Continuity Plans in Action

Business Continuity Plan Example 1: E-Commerce Company

The recent Amazon Web Services (AWS) outage is a perfect example of why a BCP can be so helpful for businesses of all sizes . During the AWS outage, big businesses like Netflix and Venmo were in the headlines for experiencing disruptions. But in reality, more than 1,000 sites and services worldwide were offline ( NBC News ). Imagine just for a moment that your ecommerce business was offline for a few hours or even a whole day. Would you be prepared?

What’s at stake in this scenario? Lost revenue, customer frustration, abandoned carts, data vulnerabilities, fulfillment, reputational damage, and more.

Business Continuity Plan Example 2: Financial Services Company

Imagine you run a financial services company, where trust, compliance, and uninterrupted access are of utmost importance. Suddenly, something unexpected happens such as an outage experienced by your processor, a strike at your call center, or a ransomware attack demanding payment from your customers.

What’s at stake in this scenario? Data loss, transaction delays, service downtime, mistakes, lost trust and reputational damage, and capital losses.

Business Continuity Plan Example 3: Homebuilder

Supply chain disruptions can affect any company. For example, a homebuilder may experience delays due to a lumber mill closure in the middle of wildfire season. Framing comes to a halt, and the material shortage is driving price increases and project delays.

What’s at stake in this scenario? Project delays, cost increases, design adjustments, cash flow disruption, risks to reputation, and customer satisfaction.

We provided a few scenarios of who and what’s at stake, and we only scratched the surface.

What Happens Without a Business Continuity Plan?

Without a BCP, even a short interruption can spiral into major financial losses, data issues, reputational damage, and more. In fact, studies show that 80% of companies without a continuity plan fail within 18 months after a major disruption ( ZipDo, 2024 ) .

No company is immune to the unexpected (and if you still think you’re exempt, check out this post on BCP myths debunked !). While a business continuity plan can’t prevent, control or fix a crisis, it can help organizations manage short- and long-term risk.

For example, in the case of the homebuilder, a BCP could include a list of alternative suppliers, revised project schedules, internal communication chains, external communication strategies, and more. Identifying potential threats and responses in advance can mean faster recovery, protected profits, and continuous operational improvements.

What’s in an Effective Business Continuity Plan?

A BCP typically contains several plans, such as:

Disaster recovery plans
Crisis management plans
Emergency response plans

Every business should have a business continuity plan to position themselves as ready and resilient. Our advisory team is ready to provide you with a free Business Continuity Planning Guide and tailored support.

GET STARTED

P.S. - If you're worried about the process being too technical or you simply feel uncomfortable looking at vulnerabilities face-to-face, we completely understand. Considering worst-case scenarios is never fun, but you can find freedom in having a plan for the future.

Sources:

Zywave, Business Continuity Planning Guide

OpenAI. (2025, November 5). Response to “What's at stake when a homebuilder experiences a supply chain disruption they can't control.” ChatGPT (GPT-5)

OpenAI. (2025, November 5). Response to “What's at stake when an ecommerce site goes down as was the case with aws.” ChatGPT (GPT-5)

OpenAI. (2025, November 5). Response to “ Why should a financial services company have a BCP? what's at stake? .” ChatGPT (GPT-5)

Protecting Your Business: Why Skipping Cyber Liability Insurance Is Risky

Tue, 14 Oct 2025 18:47:22 GMT

Part III: Why Do Many Small Businesses Skip Cyber Liability Insurance?

To close out this three-part blog series for Cybersecurity Awareness Month, we are addressing one final question: does my business really need cyber insurance?

Why Do Many Small Businesses Skip Cyber Liability Insurance?

You might still be thinking you don’t need cyber liability insurance because:

● We’re a small business and can “fly under the radar”

● “We don’t store personal data”

● “We’re not a tech company”

● “Our payment processor is responsible for our customer’s security”

● “We’re a non-for-profit oganzition…why would anyone attack us?”

Sadly, none of these thoughts make you exempt from a cyber incident. Without proper cyber protections in place, your business risks breaches, downtime, financial loss, regulatory fines, reputational damage, and more.

This is one final post (for now!) to encourage you to build your strongest business yet, with the confidence cyber coverage can provide. Let's jump in.

How Does Cyber Insurance Support Risk Management?

Cyber coverage is an important part of your business’s overall risk management strategy.

In addition to helping you explore cyber coverage options, our team can provide you with comprehensive risk management support.

What Are the Benefits of Risk Management for SMBs?

● Minimize Financial Losses: Proactively managing vulnerabilities in your business allows you to implement strategies that reduce financial losses. It helps you understand how to allocate resources best and prioritize where to spend your time and efforts.

● Meet Stakeholder Expectations: Managing risk helps you meet stakeholder expectations. By foreseeing challenges, you can avert crises before they happen, maintaining the trust and confidence you’ve built with your audience.

● Seize Opportunities: Risk management is not just about preventing crises; it’s also about finding opportunities for improvement and growth. You can identify areas for competitive advantage, innovation, and industry-specific opportunities by thinking ahead.

We’ve helped more than 20,000 businesses to date, and we’re ready to help you, too. Let’s build your strongest business yet - start here.

Disclaimer: The information provided in this blog is for general informational purposes only and should not be construed as professional advice. While we strive to keep content accurate and up to date, we make no guarantees of completeness, reliability, or suitability. Any reliance you place on this information is strictly at your own risk. For guidance tailored to your situation, please consult with a qualified professional.

Missed Part I? Read Protecting Small Businesses from Cyber Attacks: FAQs & Insurance Tips

Missed Part II? Read Protecting Your Business: Cyber Liability, Interruption & Continuity

Protecting Your Business: Cyber Liability, Interruption & Continuity

Tue, 07 Oct 2025 16:53:19 GMT

Part II: Protecting Your Business: Cyber Liability, Interruption & Continuity

In Part I of this blog series, you learned about Frequently Asked Questions About Cyber Threats for Small Businesses.

It is estimated that approximately 17% of small businesses have cyber insurance, despite the significant risk. But now that you know what’s at stake, you can change this statistic.

In Part II of this blog series, we are discussing proactive investments you can make to protect your business. These include:

● What is cyber liability insurance and why should you invest?

● What is cyber interruption insurance?

● What is business continuity planning?

● Implementing a training plan for your team

Let’s jump in.

What Is Cyber Liability Insurance and Why Do Small Businesses Need It?

Cyber liability insurance can help SMBs manage the financial risks associated with cyberattacks, data breaches, and other technology-related incidents. It kicks in to cover costs from third-party claims because of a cyber attack. Put another way, it’s like the general liability of the digital world.

What Is Cyber Interruption Insurance and How Does It Differ?

Cyber interruption insurance can help an SMB manage the financial impact on its own business operations , such as compensation for lost income and extra expenses incurred due to a cyber event disrupting normal operations. Recent events that come to mind include airline IT outages, such as the one experienced by Hawaiian Airlines in the summer of 2025.

Key Takeaway:

● Cyber liability insurance = third-party claim coverage

● Cyber interruption insurance = first-party claim coverage

What Does Cyber Insurance Typically Cover?

Cyber coverage can vary widely depending on the insurer and the specific policy, but generally, cyber insurance includes:

● Data Breach Response: Costs related to notifying affected customers, credit monitoring services, and PR efforts to mitigate reputational harm.

● Legal and Regulatory Expenses: Defense costs and settlements arising from lawsuits or regulatory actions triggered by a data breach or privacy violation.

● Business Interruption Losses: Compensation for lost income and extra expenses incurred due to a cyber event disrupting normal operations.

● Cyber Extortion: Coverage for ransom payments and related expenses in the event of ransomware attacks.

● Network Security Liability: Protection against claims resulting from failure to prevent unauthorized access or transmission of malicious software.

Connect with our team to discuss your cyber coverage options.

What Is a Business Continuity Plan (BCP) and Why Is It Critical?

As we explain in this blog post , a business continuity plan (BCP) is your proactive strategy for maintaining business operations in the event of an unexpected disruption. A BCP can address many challenges, ranging from weather events to cyberattacks.

Small businesses often have limited capital, which is one of the biggest reasons they should get a BCP. According to insurance tech company Zywave, “multiple studies found that between 40% and 60% of small businesses fail shortly after experiencing a crisis.” A BCP can help you protect your profits, people, and operations and bounce back when a disruption occurs.

A BCP is a great accompaniment to cyber coverage.

Connect with our team to discuss your BCP options.

How Can Small Businesses Train Employees to Prevent Cyber Threats?

One of the most important things you can do today is talk about cybersecurity with your team. It can be tempting to skip over cybersecurity, especially when employees and business owners alike are dealing with burnout and cyber fatigue , but in this digital world, we must stay diligent and informed! Create a training plan that details best practices and expectations for password management, cloud storage, file-sharing, MFA, software management, device management, and more. You can also take your team through interactive video trainings available by various service providers.

�� We realize this might sound like a heavy lift, but you don’t have to do it all yourself. Our team is ready to help you get cyber protections in place stat!

Let’s get you insured - start here.

Missed Part I? Read Frequently Asked Questions About Cyber Threats for Small Businesses here.

Next up in Part III: Why Many Small Businesses Skip Cyber Liability (and Why That’s Risky).”

Disclaimer: The information provided in this blog is for general informational purposes only and should not be construed as professional advice. While we strive to keep our content accurate and up to date, we make no guarantees regarding its completeness, reliability, or suitability. Any reliance you place on this information is strictly at your own risk. For guidance tailored to your situation, please consult with a qualified professional.

Protecting Small Businesses from Cyber Attacks: FAQs & Insurance Tips

Thu, 25 Sep 2025 22:17:31 GMT

Part I: Frequently Asked Questions About Cyber Threats for Small Businesses

Cyber protections, from best practices to cyber liability insurance, are no longer a nice-to-have, but a must-have. The urgency is underscored by the fact that small- to medium-sized businesses (SMBs) are being targeted nearly four times more than large organizations, per Verizon's 2025 Data Breach Investigations Report. And 46% of all cyber breaches impact businesses with fewer than 1,000 employees , according to StrongDM .

Instead of waiting for a cyber incident to occur, SMBs can take a proactive approach. October, being Cybersecurity Awareness Month , is the perfect time for business owners, employees, and vendors to empower themselves with knowledge and tools to protect their businesses.

In this three-part blog series, we will address:

Part I: Frequently Asked Questions About Cyber Threats for Small Businesses
Part II: Protecting Your Business: Cyber Liability, Interruption & Continuity
Part III: Why Many Small Businesses Skip Cyber Liability (and Why That’s Risky)

OK, let's jump into Part I!

Part I: Frequently Asked Questions About Cyber Threats for Small Businesses

What Are the Most Common Cyber Threats for Small Businesses?

While there are many types of cyberthreats, Connectwise cites the following as major cyberthreats for 2025:

● Ransomware

● Vulnerabilities

● Defense evasion

● Phishing

● Malware

● Distributed denial of service (DDoS)

● Supply chain attacks

● Insider threats

● Business email compromise (BEC)

Read a full explainer piece, here .

What About Social Engineering - What is That?

Social engineering is the psychological manipulation of people into performing an action , sharing confidential information, or providing access. It takes place where human interaction is already happening, such as email or texts.

Here’s an example:

A cybercriminal AKA threat actor got into an email thread between our client and one of their vendors. Yes, you read that right, our client was already in a real conversation with a vendor. A six-figure payment was due, and the threat actor got a hold of the invoice, changed the payment account, and re-sent it to our client. It looked like a normal invoice that they had paid before, so they paid it. Eventually, the real vendor asked for payment again, which is when the client realized the payment went to the threat actor.

How Do Cyber Criminals Use AI?

Here are a few examples:

In March 2024, the FBI warned of cyber criminals using Artificial Intelligence (AI) “to conduct sophisticated phishing/social engineering attacks and voice/video cloning scams.”

According to Verizon’s 2025 Data Breach Investigations Report , “..there is evidence of [Generative artificial intelligence (GenAI)] use by threat actors as reported by the AI platforms themselves.” Verizon also shares that synthetically generated [from AI] text in malicious emails has doubled over the past two years.

In this blog post , Connectwise discusses the various malicious uses of AI – like prompt injection, phishing, deepfakes, data poisoning and maleware development – to look out for. They also share a specific real-life example: “I recently spoke with an MSP who asked ChatGPT for Microsoft’s support phone number, and they were given the number to a threat actor posing as Microsoft support.”

As you can see, threat actors are leveraging AI to fuel their malicious activities.

Why Vendor Partners May Expose Your Network

In this infographic , Verizon reports that breaches involving partners have increased from 15% to 30% over the past year, urging organizations to adopt a “unified cybersecurity posture with partners and suppliers” to reduce vulnerability.

By aligning your cybersecurity practices with those of your partners and suppliers, you can reduce vulnerability and strengthen your overall cybersecurity. Conduct a security assessment of your partners. Auditboard provides tips for a vendor security assessment, with questions like “Are your backups maintained?”, “Do you use MFA?” and many others.

If I skip my software update, will it compromise my security?

Software updates help address new vulnerabilities. By skipping updates, you are potentially leaving “holes in the boat” AKA openings for cybercriminals to exploit outdated software. When software updates pop up, resist the urge to “do it later.”

Regular updates are not just a chore; they can help be a shield against cyber threats. By ensuring your team is following suit, you can significantly enhance your defense against attacks, making your business more secure.

Is Public Wi-Fi Safe to Use?

This question arises often, particularly since many businesses support a remote or hybrid workforce. The bottom line is, public Wi-Fi poses several risks because public networks are usually unsecured. It’s also worth noting that there was a 300% increase in cyberattacks during the pandemic when many people worked remotely.

If you must use public WiFi, also use a VPN (virtual private network) to encrypt your connection. Alternatively, consider using mobile data instead of public WiFi when handling sensitive information.

Do I Really Need to Set Up Multifactor Authentication (MFA)?

Yes, it is strongly recommended for email and when using any software or program that offers MFA.

As we discussed in our blog post, "9 Common Cybersecurity Mistakes Remote Workers Make ," MFA can help reduce the risk of unauthorized access. MFA comes in many forms such as a passkey, a unique code within your authentication app, or a code sent to your mobile device or email inbox.

By now, you might be thinking, 'This is a lot.' Especially if you are an SMB owner who is wearing all the hats. Rest assured, this blog post is not intended to instill fear, but rather to provide you with awareness.

In addition to reviewing the data and suggestions above, we strongly recommend implementing a training program for your team and investing in three key protections: cyber liability insurance, cyber interruption insurance, and business continuity planning . We cover all of this in Part II: Protecting Your Business. Stay tuned!

Open Enrollment Guide for Employees: How to Make Smart Health Insurance Choices

Mon, 08 Sep 2025 20:36:01 GMT

Simplifying open enrollment and navigating workplace benefits with confidence.

Open enrollment for employee health insurance is upon us, giving employees and HR leaders the chance to review workplace benefits and make smart coverage choices. Most companies hold their open enrollment period between October and December , though exact dates vary by employer.

If you oversee HR and benefits, you know this is a busy time of year. To help employees feel informed (and reduce stress for HR teams), we’ve created a clear, shareable guide to navigating open enrollment with confidence .

What Types of Insurance Are Covered During Open Enrollment?

Open enrollment typically includes:

Health insurance
Dental insurance
Vision insurance
Related benefits like Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs)

These selections usually last for the entire plan year, so it’s important to choose carefully.

What Is Open Enrollment For?

Open enrollment is your chance to:

Add or drop dependents
Change your plan or tier
Sign up for supplemental benefits like an HSA or FSA

This is the only time of year (unless you have a qualifying life event) when you can make these changes.

What Is Open Enrollment NOT For?

Open enrollment does not apply to every type of insurance. It’s not for:

Life or disability insurance (often available year-round)
Auto, home, or business insurance (these renew on their own schedules)
Medicaid (enrollment is open year-round for those eligible)
Medicare (has its own enrollment period, separate from employer benefits)

You also don’t need to wait for open enrollment if you experience a qualifying life event , such as getting married, divorced, or having a baby. Those changes fall under a Special Enrollment Period (SEP) .

Is the Most Expensive Health Insurance Plan Always the Best?

Not necessarily. While higher premiums may mean more comprehensive coverage, you could end up paying for benefits you don’t need. Conversely, a plan with low premiums but high deductibles might be a poor fit if you expect significant medical needs.

The best plan depends on your anticipated healthcare usage for the upcoming year.

HSAs vs. FSAs: Which Is Right for You?

Both Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) can save you money on healthcare expenses, but they differ:

HSA: Owned by the individual, funds roll over year to year, and can cover a wide variety of expenses.
FSA: Owned by the employer, funds typically must be used within the plan year, and participation must align with group insurance.

Since you can’t enroll in both, check with your HR team to determine the best fit. P.S. - Check out FSA and HSA updates under the One Big Beautiful Bill Act, here .

Reflection: Questions to Ask Before Choosing a Plan

Many employees stick with the same plan year after year, even if it’s not the best fit. In fact, studies show up to 85% of employees feel confused by their coverage options. ( Ameritus )

Here are 8 reflection questions to guide your decision:

Did I experience coverage gaps last year?
Were my copays manageable?
Did I fully use my HSA or FSA funds?
Did I meet my deductible, or come close?
How often did I or my family visit doctors or need prescriptions?
Were my preferred providers in-network?
Did I avoid care because I didn’t understand my plan?
Do I anticipate major health changes in the next year?

Open Enrollment Tips for Employees and HR Leaders

Start early: Don’t wait until the last day.
Use decision-support tools: Many employers now offer plan comparison charts or online tools.
Ask questions: HR and benefits teams are there to help.
Review annually: Even if your health hasn’t changed, plan options may have.
Get Support: Our Employee Benefits and HR Advisory teams here at Fusco, Orsini & Associates are here to help. Book a call to learn more.

Bottom Line: Open Enrollment Is Your Best Chance to Make Informed Choices

Open enrollment only comes once a year for most employees. Taking the time to reflect on your past choices, understand your options, and ask questions can save money and improve your access to care.

Whether you’re an HR leader guiding your team or an employee reviewing your options , this guide will help you navigate the season with greater confidence.

HR Leaders: book a call today to learn how we can support your business and your team. From choosing the right plan to answering your questions, we’ll help you navigate open enrollment with confidence and ease.

Insurance IQ Quiz: 10 Key Questions for Business Owners

Fri, 29 Aug 2025 16:00:04 GMT

Test Your Insurance IQ: 10 Questions Every Business Owner Should Answer

Think your business is fully protected? Take our quick business insurance pop quiz to find out if your company is protected against today's biggest risks, like liability claims, property damage, cyber attacks, and employee disputes.

Whether you're a small business owner or contractor, understanding your coverage is the first step in protecting your assets and your bottom line. This interactive quiz will test your insurance knowledge, reveal common coverage gaps, and help you learn which policies every business should consider before disaster strikes.

Ready to see if you can ace it? Here are 10 must-know questions to help you expand your insurance knowledge and sharpen your risk management skills.

1.If a customer gets food poisoning from your restaurant, which insurance policy could help cover the claim?

Workers Comp
General Liability
Property Insurance

2. Your business doesn't need to carry workers' comp insurance if your employees work from home.

True
False

Note: Read all about insuring a remote workforce .

3. Cyber insurance is only necessary if you work in tech or healthcare.

True
False

Note: Read more about how a cyber insurance policy can protect your business.

4. If a natural disaster forces you to close your business for repairs, which coverage helps replace lost income?

Property Insurance
Business Interruption Insurance
Workers Comp

5. While driving their personal vehicle to a client meeting, your employee causes an accident. Whose policy applies?

Your company's commercial auto policy
The employee's personal auto policy

Note: Commercial auto insurance is required if vehicles are used for business purposes, regardless of whether the company, an employee, or a contractor owns them. Read about commercial auto insurance here.

6. Umbrella coverage replaces your primary coverage.

True
False

Note: Umbrella coverage extends, but does not replace, your coverage beyond standard limits. For example, if your business is fined more than what your general liability limit covers, umbrella coverage could kick in.

7. Which of these is a strong indicator that a worker is an employee (not an independent contractor)?

They send you a monthly invoice
They use their own tools and determine how work will get done
You determine their work hours

8. If all your workers are correctly classified as independent contractors, which coverage are you typically NOT required to have?

Workers comp
General liability
Professional liability

Note: Read all about contractors versus independent contractors .

9. Which type of insurance helps protect your business in the event of a wrongful termination claim?

Workers Comp
Professional Liability
Employment Practices Liability Insurance (EPLI)

Extra Credit: When's the last time you reviewed your insurance policies with an expert?

In the past 12 months
More than 12 months ago
I don't remember

Quiz Answers: 1. B, 2. B, 3. B, 4. B, 5. A, 6. B, 7. C, 8. A, 9. C, 10. A

If you aced this quiz, please accept our virtual high-five! If you learned something new today, excellent! Either way, our team is ready to help you build your strongest business yet. We can help you strengthen your insurance portfolio, identify and close coverage gaps, and protect your business from unexpected and often “invisible” risks.

Book a Coverage Check HERE .

Sources:

OpenAI. (2025, August 12). Response to “Expand on the angle of "Is Your Business Ready for a Pop Quiz? Test Your Insurance Knowledge” . ChatGPT. https://chat.openai.com

Back-to-School for Business: Is Your Coverage Ready for Fall?

Mon, 25 Aug 2025 19:51:10 GMT

Back-to-School for Business Owners: Is Your Coverage Ready for Fall?

Just like kids start school ready to learn, your business can start fall ready to grow, by taking inventory, setting goals, and closing critical coverage gaps.

If your business had a “first day of school board” just like you see all over social media, what would it say?

Why Back to School is the Perfect Time for a Business Snapshot:

First day of school boards are a popular tradition, noting fun stats and facts like a student’s age, interests, graduating year, and dream career. For business owners, this fall trend is a great time to take a snapshot of your business, and to share this info with your advisors to make sure you’re on track.

What to Include on Your Business’s “First Day of School” Board:

Years in Business: Just like a student’s age tells part of their story, your company’s longevity reflects its experience, stability, and track record. Changes in longevity can impact insurance rates, eligibility, and carrier options.

Number of Employees: Whether you’ve hired more people or reduced headcount, staffing changes can affect workers’ comp, employment practices liability insurance (EPLI), and benefits coverage needs.

Biggest Goal for the Year: Whether it’s launching a new product, opening another location, or expanding online sales, big business moves often require policy updates.

New Assets or Equipment: New machinery, tech equipment, vehicles, and more? Documenting new purchases and informing your insurance broker helps ensure your property or commercial auto coverage is up to date.

Top Industry Trend: From regulatory shifts to tech innovations, staying ahead of your industry’s trends helps you anticipate risks and adjust your coverage.

And Just for Fun…Add These to Your Board:

Favorite Workday Snack: While freeze-dried fruit is a top-trending snack , and crispy orange Goldfish remain popular, what snack is fueling your team?

Team Superpower: Every team has a superpower. What’s the one thing you do best?

Dream Client or Project: Just like a kid notes their dream career, get inspired by listing your company’s dream client or project. Make sure your broker is aware of the types of work your company is aiming for.

Favorite Lunch Spot: Where does your team go for a midday pick-me-up and team connection?

Download our printable back-to-school business insurance board template, fill it out, and bring it to your next coverage review. This board is a great visual snapshot to kick off a new season!

Pro-tip: Review your 2025-2026 goals and gaps with an advisor. Our team can help you strengthen your insurance portfolio, identify and close coverage gaps, and protect your business from unexpected and often “invisible” risks. CONNECT HERE.

Sources:

OpenAI. (2025, August 12). How years in business matter for insurance . ChatGPT [Large language model]. https://chat.openai.com/

How does my property value affect my homeowner’s insurance?

Tue, 19 Aug 2025 00:59:35 GMT

Great question! We offer a replacement cost guarantee of 25% or 50% on most our homeowners policies, which goes above and beyond the dwelling coverage. We do this to protect our customers in the event of inflation or high demand, which would result in a sudden higher cost to rebuild if an incident occurs.

While this could be sufficient in some cases, you may want to increase your liability limits if you are noticing your property’s value increasing. For example, if your home has a market value of $450,000 but your liability is only $100,000, you should increase your liability to cover your assets. This increased liability coverage would protect you from needing to dip into your assets in the event that something unfortunate happens.

When considering the value to insure your dwelling (Coverage A on a homeowners’ policy), remember to exclude the value of land.

Please let us know if you have questions about your current policy limits! You may complete the form below to get in touch with us!

Protect Your Business with a BOP

Tue, 19 Aug 2025 00:58:34 GMT

What is a BOP?

If you are a small to medium business owner, you may find that a BOP is right for you. A BOP, or Business Owners Policy, is an insurance package specifically designed to be an all-encompassing insurance product to suit your needs. Whether you own a restaurant, a nail salon, or a fitness center, your exposure to risk covers a broad spectrum. Rather than finding separate policies to protect you on all fronts, it makes sense to combine your coverages in a Business Owners Policy.

What kind of coverage does a BOP carry?

A Business Owners Policy can cover a multitude of liabilities. Here are a few of the coverages you can find in a BOP: General Liability, Commercial Vehicle, Business Interruption, Property, Casualty and many more. A BOP will have you covered whether you’re dealing with a break-in, a vehicle accident, or a slip and fall on your property.

A great way to save!

Not only does the Business Owners Policy come with the benefit of having all your coverages in one easy to manage policy, but it is also a great way to save money. Instead of paying multiple premiums each month, the BOP is a cost-effective way to handle your insurances. If you would like more information on the Business Owners Policy, visit the Fusco & Orsini Insurance Services website today.

Protecting Your Home: Special Insurance Concerns for Homeowners

Tue, 19 Aug 2025 00:57:19 GMT

Most of us purchase homeowner’s or renter’s insurance directly from an insurance company or through an agent/broker and don’t really think twice about it as long as it meets the minimum requirements of the lender or the landlord; but there are several coverages or endorsements that are important.

Personal Property Replacement Cost Coverage

It is common for a policy be endorsed with this coverage enhancement but if not, the standard policy only pays out Actual Cash Value for your personal property or the stuff that you own. Actual Cash Value payout takes into consideration the depreciated value of the item. If you’ve ever tried to sell a used sofa or kitchen appliance you know that you generally cannot get much for it. The replacement cost endorsement ensures that the policy pays out replacement cost which is the value to replace that used refrigerator or television with a brand-new one rather than its current value.

Coverage A or Dwelling Coverage

Generally, a replacement cost calculation is completed to determine the limit of coverage needed but unless it is a high-value home and a full inspection is ordered by the insurance company, it is still just an estimate. This is where the Extended Replacement Cost endorsement comes into play. Generally available in 25% or 50% limits, this endorsement states the carrier will pay over and above the listed Dwelling coverage to rebuild your home, if necessary. This is important not only because the limit listed is just an estimate, but if there is large scale damage from a wildfire or other natural disasters, the cost of construction increases due the demand. In addition, any time there is a construction project of this size, like building a home, there is a good chance of unforeseen costs. We always include this at 150% on our policies to offer the maximum protection available.

Water Backup

Water damage claims are one of the most common types of claims homeowners face and most types of water damage claims are covered under the standard policy, such as water damage from a broken pipe or appliance. Water backing up from a sewer or drain however is not covered under the standard policy and if some coverage is not added back in via a Water Backup endorsement, your claim would be denied. Flood coverage, on the other hand, is always excluded and in most cases, will only be required by the lender if you live in a designated flood zone. In which case, a separate policy would be required.

Personal Liability Coverage

Personal liability covers you and your family from lawsuits like slip and falls, dog bites, swimming pool accidents, etc. and we always recommend taking more than the minimum $100,000. Increasing the coverage to $300,000 or $500,0000 generally only increases the policy a few dollars a year. We also recommend adding Personal Injury liability. This extends the liability to not only cover actual bodily injury and property damage claims but also mental injury, specifically because of false arrest, wrongful eviction and slander and defamation. In the world we live, with everything being permanently documented online through social media. A nasty tweet or Facebook post from your teenager could result in costly personal injury lawsuit, with this endorsement included you are protecting yourself from the defense costs as well as any potential payout.

These are just a few of the ways your homeowner’s policy can be enhanced for a relatively small increase in cost. If you are doing your own shopping it is important you are comparing apples to apples because the list of endorsements shown on the quote, or not, could drastically change the coverage you have depending on the situation. As always, contacting your local insurance professional to ensure you are getting the coverage you need and the most from your homeowner’s policy is the safest bet.

Check out more of Mike’s articles on iGrad.com!

Protecting Your Well-Being: Health Insurance

Tue, 19 Aug 2025 00:56:37 GMT

Health insurance is a complicated topic and one that most find very personal. After all, no two individuals have the same health needs or consume health services the same way. Many of us want different things from our policies. Here is an overview of the health care marketplace and the many policy choices available, along with related tax implications.

Essential Health Benefits

All health insurance plans offered in both the employer-based market and the individual market must include “essential health benefits” such as:

ambulance and emergency services
hospitalization
pregnancy
maternity and newborn care
mental health and substance abuse services
prescription drug coverage
rehabilitative services and devices (services and devices to help people with injuries, disabilities, or chronic conditions gain or recover mental and physical skills)
lab services
preventative and wellness services
pediatric dental and vision services

Metal Tier Designations

Metal tier designations – bronze, silver, gold and platinum – for health care plans are based on the amount of coverage provided compared to how much the average person will pay in “out of pocket” expenses like deductibles and copays.

A bronze plan on average will cover 60% of an individual or family’s health claims, while silver covers 70%, gold 80% and platinum 90%. How the plans implement this is up to them as long as they can provide actuarial data like past claims history if requested.

So, a bronze plan is the lowest-cost plan but bronze policies have the highest deductibles. A platinum plan is the most expensive plan but it has no deductible and very low-copays for most services, prescriptions, etc. Silver and gold plans fall somewhere in between.

Types of Plans

Health plans are also divided by plan type: HMO, PPO, EPO, and more. The most common types of health plans are your HMO and PPOs, with the latter Preferred Provider Organization (PPO) offering the most flexibility while the Health Maintenance Organization (HMO) is more restrictive but more competitively priced.

A PPO offers a preferred list of providers known as “in-network.” These plans also provide limited “out-of-network” coverage for doctors who are not contracted with the plan. Generally, the out-of-network coverage is subject to a higher deducible and because there are no contracted prices for services between the provider and the carrier, the plan pays only 50% of Usual, Customary and Reasonable (UCR) treatment, which may equal 50% of the actual invoice.

An HMO on the other hand, is a closed-provider network and there is only coverage for those doctors and providers who are contracted with the carrier. HMOs also institute a referral requirement, this means you are required to select a PCP (Primary Care Physician) whom acts as a gatekeeper. He or she must refer you to specialists when needed and they are responsible for managing your care and use of the network. With a PPO, there is no such requirement and you can go see any specialist you choose.

Coverage area differs, too. An HMO generally only provides coverage within your home area, with only emergency care covered throughout the country. With a PPO, you can choose to obtain care from a specialist out of state. An EPO, (Exclusive Provider Organization) operates similarly to a PPO but without the out-of-network coverage that a PPO offers.

Health Savings Accounts

Lastly and certainly not least are the tax implications of health insurance. Health Savings Accounts or HSAs, were signed into law in 2003. These tax-advantaged savings accounts allow you to save money tax-free to pay for your qualified medical expenses. You are required to choose a high-deductible health plan (HDHP), though. These are designated by having HDHP, HSA, or the word “Savings” in the name of the health plan.

The idea behind HSAs is that as a consumer, if you take more control of your health expenditures by paying claims from your own savings rather than via health insurance, you are less likely to burden the system. However, opponents say HSAs may worsen healthcare results rather than improve them overall, because consumers may postpone the care they need that would normally be covered, or they may spend the money unnecessarily to avoid tax penalties. Withdrawals from an HSA for non-medical expenses are treated similarly to early withdrawals from retirement accounts.

Obamacare Tax Subsidies and Credits

Other tax implications lie in the more recent individual mandate and tax subsidies for Obamacare, or the Affordable Care Act. The individual mandate states you and your dependents must have health insurance or pay a penalty for each month that coverage is lacking.

There is a two-month exemption available, so if you are uninsured for no more than two consecutive months, you avoid the penalty for the entire year. The penalty is the higher of 2.5% of household income with a maximum penalty equal to the total yearly premium for the national average price of a bronze plan, or a per person fee of $695 per adult and $347.50 per child with a maximum penalty of $2,085.

In many cases, the penalty is less than the cost of obtaining coverage but you put yourself and your family at risk for catastrophic losses while still having to pay a penalty. Paying for a minimum level of coverage may make more sense when looking at total value provided.

For those at certain income levels who are not offered coverage through an employer, there are tax credits or subsidies available. These begin at 400% of the Federal Poverty Level (FPL), which is $97,000 for a family of four, with the credit increasing as you approach 138% of the FPL, which is $33,465 for a family of four. At income levels below this, there may be free or low-cost coverage provided through the Medicaid program.

Talk to An Expert

Health insurance is very complicated and there are many moving parts. In addition, laws vary from state to state. It is important now, as much as ever, to use your local insurance professionals, brokers, and agents to help successfully navigate the ever-changing health insurance landscape.

Originally published on iGrad.com. For more iGrad articles by Mike Fusco, click here.

How to Qualify for a Workers’ Compensation Experience Modifier in California

Tue, 19 Aug 2025 00:55:39 GMT

Welcome to our Insurance and Advising FAQs. This post will guide you in qualifying for a California workers’ compensation experience modifier. Comprehending these factors is vital for controlling your insurance expenses and guaranteeing your business is properly safeguarded. We will delve into the specifics to assist you in understanding this critical component of workers’ compensation insurance.

A Brief History of Experience Modification Factors in California

Experience Modification Factors (EMODs) were implemented in California to enhance workplace safety and guarantee equitable workers’ compensation premiums. This system rewards companies with fewer-than-anticipated claims with lower premiums, while those with more claims face increased rates. As time has passed, EMODs have advanced to include additional data and complex algorithms, offering a more precise measure of a company’s safety record and associated risks. Comprehending the evolution and objectives of EMODs is crucial for businesses aiming to control their workers’ compensation expenses efficiently.

Impact of Workers’ Compensation Duration on EMOD Qualification

The duration a company has held workers’ compensation insurance is a factor in qualifying for an Experience Modification Factor (EMOD). Generally, a company must maintain continuous workers’ compensation coverage for at least three years. This timeframe is necessary to gather adequate payroll and claims history data, crucial for determining an accurate EMOD. Firms with less than three years of coverage history may not be eligible for an EMOD until sufficient data for an accurate assessment.

Additional Metrics for Qualifying for an Experience Modifier in California

In California, a variety of metrics are considered to determine whether a company is eligible for an Experience Modification Factor (EMOD):

Payroll Size: The company’s total payroll is taken into account. Generally, businesses with larger payrolls are more likely to qualify for an EMOD.
Claim Frequency: The frequency of claims filed within a certain timeframe is evaluated. A higher number of claims can significantly affect the EMOD.
Claim Severity: The gravity and cost of the claims are essential factors. More costly claims can lead to a higher EMOD.
Industry Classifications: The level of risk associated with different industries plays a role in the calculation.
Experience Rating Period: This usually includes examining claims and payroll data from the past three years, not counting the most recent year.

These metrics are instrumental in providing a just and precise assessment of a company’s safety record, affecting workers’ compensation insurance rates.

Conclusion and Call to Action

Understanding how to qualify for a workers’ compensation experience modifier in California is crucial for effectively managing your business’s insurance costs. Staying informed about the metrics and maintaining a consistent workers’ compensation history can help you navigate this complex system better.

If you have more questions or need personalized guidance on managing your EMOD and workers’ compensation insurance, don’t hesitate to reach out. Complete our form to discuss your specific needs and discover how we can help you optimize your insurance strategy and ensure comprehensive protection for your business.

Your Guide to Survive a Ransomware Attack!

Tue, 19 Aug 2025 00:55:08 GMT

Ransomware is any malicious software—also called malware—that infects a victim’s device or server and prevents the technology from working as it should or blocks access to specific data (e.g., confidential files or sensitive information) stored on such technology until the victim pays a ransom.

We care about our clients and prospects, so we offer you a free “Ransomware Survival Guide,” which contains 52 pages of information to protect your business. Complete the form below and we will send you the document!

What Insurance Does My Restaurant Need?

Tue, 19 Aug 2025 00:54:33 GMT

Restaurant insurance can help protect you from losses due to common risks, such as slips and falls, equipment breakdowns, cuts, and kitchen fires. There are 10 different types of insurance coverages to consider, and this blog post gets to the meat of the matter: what insurance does my restaurant actually need? Additionally, we provide real-world scenarios that can further inform you as you shop for, or refine, your policy.

What types of insurance do restaurants need?

Here are the 10 types of insurance coverage considerations for restaurants.

Business interruption insurance
Commercial crime insurance
Commercial property insurance
Cyber liability coverage
Employment practices liability insurance (EPLI)
Equipment breakdown coverage
General liability insurance
Liquor liability coverage
Umbrella and excess coverage
Workers’ compensation coverage

Do you need all 10 of them? It depends on your unique business and its specific risks, which is why it’s important to talk to an advisor experienced in the restaurant industry. We can help you tailor a coverage plan that fits your needs. Get started HERE.

What real-world risks do restaurant owners face?

Restaurant owners face several exposures, meaning several areas of potential for financial loss or damage. According to Zywave, seven key exposures include property, occupational safety, employment practices, employee dishonesty, general liability, food and liquor liability, and cyber risk.

To help explain these exposures, here are real-world scenarios and the insurance that can help protect you in the wake of these scenarios.

Property: If you are running a restaurant, you are likely operating in a commercial space. Properties come with a host of challenges, including busted pipes, mold damage, power outages, and more. Outside forces, such as weather, pests, and vandals, can also cause damage to a property.

Real-world scenarios:

A grease fire breaks out in the kitchen, damaging cooking equipment, walls, and the ceiling.

A thief breaks in and steals POS systems, cash registers, and electronics.

A car crashes into the restaurant’s outdoor patio, destroying furniture and part of the structure.

Protection: A comprehensive commercial property insurance policy for restaurants typically covers building and interior improvements, kitchen equipment and furnishings, refrigerated inventory, signs, menus, and decor, as well as lost income from closures (if you add business interruption coverage).

Occupational Safety: From cuts to slips, trips, and burns, on-the-job injuries and illnesses can happen, and you could be held responsible for your workers’ subsequent hospital bills, treatments, and lost wages. In 2019, 93,800 nonfatal injuries and illnesses were reported among full-service restaurant workers. The incidence rate was 88.3 cases per 10,000 full-time workers. (U.S. Bureau of Labor Statistics)

Real-world scenarios:

A chef develops repetitive strain injury from years of prep work and chopping.

A delivery driver employed by the restaurant is injured in a car accident while on the job.

A kitchen worker is exposed to harsh cleaning chemicals and experiences respiratory issues.

Protection: Proper safety training and PPE should never be overlooked! Nor should workers’ compensation insurance, which is required by most states. Workers’ comp can help cover medical expenses for work-related injuries or illnesses, lost wages during recovery, disability benefits, rehabilitation costs, and even death benefits for families in the case of fatal injuries.

Employment Practices: Employment practices account for the policies, behaviors, and procedures a business uses in managing its employees throughout the entire employment lifecycle, from hiring to employee separation.

Real-world scenarios:

An employee complains on social media about kitchen conditions, then is fired shortly after. They claim retaliation.

A dishwasher is let go during a slow season and alleges it was because of their age.

A former employee claims they were passed over for a promotion due to racial bias and sues after a less-qualified candidate was selected.

Protection: Employment practices liability insurance (EPLI) can assist with defense costs associated with lawsuits related to how you hire, manage, and terminate employees.

Employee Dishonesty: Sadly, dishonest employees may engage in criminal acts for their own gain.

Real-world scenarios:

A manager pockets cash from the register over several months.

A bartender voids drink orders and keeps the cash.

A chef steals kitchen inventory to resell elsewhere.

Protection: Commercial crime insurance can typically help cover losses resulting from the theft of money, inventory, or property by employees, embezzlement, fraud, theft of customer information and more.

General Liability: Restaurant owners could be held liable for losses when third parties (e.g., patrons, suppliers, or passersby) experience injuries at their restaurant.

Real-world scenarios:

A delivery driver trips over an uneven sidewalk while dropping off supplies and files a claim.

A guest claims food poisoning after eating at your restaurant and seeks compensation.

A neighboring business claims smoke damage from your kitchen affected their merchandise.

A competitor sues you for allegedly copying their ad design.

Protection: General liability insurance can protect your business against third-party claims involving bodily injury (like slips and falls), property damage, or personal and advertising injury.

Food and Liquor Liability: From making sure food is free of contaminants to communicating potential allergens and serving alcohol responsibly, restaurants face several health hazards daily.

Real-world scenarios:

A customer gets sick after eating undercooked chicken and sues your restaurant.

Someone has a severe peanut allergy reaction due to incorrect labeling or cross-contamination.

A shard of glass in a salad injures a guest’s mouth.

Protection: Food and Liquor Liability Insurance covers foodborne illnesses, allergic reactions caused by undisclosed ingredients, spoiled or contaminated food served, and injuries caused by foreign objects, like bones, glass, and plastic.

Cyber Risk: Increasingly, restaurants are relying on technology to manage records, process customer payments, make customer reservations, and more. Greater reliance on technology can make restaurants more vulnerable to breaches and digital attacks.

Real-world scenarios:

A phishing email tricks a staff member into clicking a malicious link, giving attackers access to payroll and employee data.

A third-party delivery app that your restaurant partners with is breached, exposing customer addresses and payment information.

Wi-Fi used by guests and staff is not properly secured, allowing hackers to spy on devices connected to the network.

Protection: Cyber liability coverage can help cover your restaurant in the event of a data breach (think IT, legal fees, notification costs, etc.), fraud, ransomware recovery and payments, regulatory fines and penalties, and more.

We hope these scenarios give you a better understanding of some everyday risks restaurants face.

Running a business without insurance and risk management is like putting a pot of water on high heat and walking away. At first, everything is fine, but as the heat builds, pressure rises, and without your attention, it eventually boils over and maybe even burns the kitchen down.

Insurance is like turning down the heat, adding a lid, or setting a timer. It’s not just a task-list item that you buy; it’s a tool to help you recover, protect your assets, and prevent disaster.

Insurance is a tool to keep your legacy going.

Whether you have insurance or not, we’re here to help you make informed decisions about the insurance and risk management you actually need for your restaurant.

Get started HERE.

Sources:

Insurance Considerations for Resturant Owners | Zywave

93,800 nonfatal injuries and illnesses in full-service restaurants in 2019 | U.S. Bureau of Labor and Statistics

OpenAI. (2025, July 2). Response to a question about Real-World Scenarios in the Restaurant Industry using ChatGPT [Large language model]. https://chat.openai.com/

RPA in Action: Enhancing Daily Operations for SMBs

Tue, 19 Aug 2025 00:53:50 GMT

Over the past 18 months, I’ve engaged in insightful conversations with insurance industry colleagues regarding implementing RPA technology in my business. Throughout these interactions, I discovered a common thread in the questions posed by business owners nationwide. To address these shared queries and offer practical insights, I have crafted a post detailing real-life applications of RPA technology. Stay tuned for the upcoming video unveiling as I share firsthand experiences to empower businesses to enhance their efficiency and productivity.

Please note that this post is not solely focused on the financial services sector. RPA technology is used in a wide range of industries, including construction, manufacturing, automotive repair, bars and taverns, restaurants, general business, healthcare, main street commerce, office work, online retail, property management, startups, and technology companies. No matter your industry, you may find RPA technology to be very useful!

Understanding RPA Technology

What is RPA?

Robotic Process Automation (RPA) is a technology that employs software robots, or “bots,” to automate repetitive and routine tasks. These bots are designed to emulate human actions, enabling them to perform various tasks across different applications and systems, including data entry, transaction processing, report generation, and more.

Why is RPA Important for Small Businesses?

For small to medium-sized businesses (SMBs), RPA offers several significant benefits:

Efficiency and Productivity: Automating monotonous and repetitive tasks via Robotic Process Automation (RPA) allows employees to focus on more strategic tasks, thereby boosting overall productivity. Additionally, it enhances employee morale, alleviating the boredom associated with performing the same tasks every day.
Cost Savings: Automation diminishes the necessity for manual work, resulting in cost reductions in staffing and operational expenditures.
Accuracy and Consistency: Bots carry out tasks with high precision and consistency, reducing the risk of human error and ensuring dependable results.
Scalability: RPA can scale rapidly to manage growing workloads without necessitating a corresponding increase in staff.

How Does RPA Work?

RPA software integrates with your existing systems and applications. It can perform tasks such as:

Logging into applications
Moving files and folders
Copying and pasting data
Filling out forms
Extracting structured data from documents
Connecting to APIs and web services

With its capacity to efficiently handle these tasks, RPA technology can greatly improve SMBs’ daily operations, enabling them to compete more effectively in their markets.

Real-Life Example of RPA Technology at Fusco Orsini & Associates

Various deployment methods exist for RPA, including using pre-built or custom bots. Our business necessitated highly specific robot customizations, leading us to construct four bots with assistance from CTG/Eleviant to manage our tasks. We are also contemplating the addition of more bots.

Based on my experience, assigning bots to specific tasks or workflows is most effective, so we utilize four. While I’m not a bot development specialist, I understand that bots have limitations. Additionally, it’s crucial to recognize that if your business employs a CRM, AMS, or other systems, bots will typically need a ‘seat,’ and multiple seats may be needed.

I embarked on my RPA technology journey while aiming to establish a link between my CRM (Customer Relationship Management) and AMS (Agency Management System) to improve efficiency by removing the necessity for duplicate keystrokes. I also sought a bidirectional connection, knowing it would bolster our data integrity.

However, upon investigating the possibilities for developing the connection via an API (Application Programming Interface), it became apparent that the costs exceeded our budget, with a return on investment (ROI) timeline longer than expected.

After listening to my friend Jeff Roy discuss RPA technology at our annual mastermind meeting, I was inspired to investigate how it could be applied to our company. It quickly became apparent that it was an ideal match for our business model. We initiated the development of our first bot, which was designed to process our client renewal list in the AMS and transfer the data by generating records in our CRM. The development process took under three weeks, and soon, we were saving seven minutes per renewal, totaling nearly 3,500 minutes each month. This resulted in significant time savings and boosted employee morale, as the tedious task was no longer necessary.

Next, we introduced bot #2, which scans our new business CRM pipelines and generates a client profile in our AMS. This has been a great success! Once again, we’ve reduced the need for double data entry, improved efficiency, and ensured excellent data integrity. The bot guarantees a perfect match between the information stored in our two systems. After creating the record in our AMS, the bot returns the ‘Account ID’ to the CRM.

Luca Botsi

Our third bot, Luca Botsi, was created to handle client cancellations due to non-payment. Over the years, my team has expressed that their least favorite task is chasing after clients’ overdue payments. Notifying clients about impending cancellations due to non-payment is crucial in our business, as a lapsed policy would leave them unprotected. However, a thorough analysis of our data revealed that most non-payment cancellations are from repeat offenders—the same clients month after month.

Luca is responsible for handling each non-payment cancellation within our AMS. On the following business day, Luca initiates the process of notifying our client about their impending cancellation due to non-payment and, over 10 days, dispatches 3 text messages and 1 email to assist the client in resolving the issue. The messages are highly detailed, offering precise details regarding their account number, the amount due, the payment deadline, and the website or phone details for making a payment. Our clients value the thoroughness and follow-up provided by Luca, and our team does as well.

Onboarding Clients

One of the major frustrations I experienced during the first decade of our business operation was the inconsistency in client onboarding. Our team often sent out information that lacked consistency and omitted specific details for which we had trained. Our 4th bot handles this problem with ease.

With bot #4’s assistance, our team can easily create a task in the AMS, which prompts the bot to initiate client onboarding. This process encompasses generating coverage verification, establishing client portal access, and informing about value-added services, among other tasks. The bot compiles this information, drafts a formal email, and records the activity in the client’s file, ensuring consistent, accurate service without any days off.

Managing Bots for Optimal Performance

While RPA technology offers numerous benefits, it’s important to remember that it’s imperfect and requires human oversight. At our company, we ensure that each of our four robots is monitored daily. These bots generate an Excel spreadsheet every morning detailing the tasks completed the previous day. Our management team reviews these reports to ensure accuracy and address any issues promptly. This daily oversight helps us maintain high standards of efficiency and reliability in our operations.

I hope this post has provided valuable insights into how RPA technology can enhance daily operations. By leveraging RPA, small—to medium-sized businesses can achieve greater efficiency, accuracy, and cost savings. Feel free to contact me on LinkedIn if I can help you further.

5 Ways to Save on Home and Auto Insurance Responsibly

Tue, 19 Aug 2025 00:53:09 GMT

As living costs continue to rise in California, consumers face difficult choices about budgeting for essential expenses, including insurance. Home and auto insurance policies are necessary to protect your most valuable assets, but balancing the costs of these policies with everyday financial responsibilities can feel overwhelming. At Fusco Orsini & Associates, we understand that saving money is essential—but cutting the wrong coverage can expose you to unnecessary risks. We advocate for clever ways to reduce insurance costs without sacrificing critical protection.

In this blog, we’ll cover five practical strategies to help you save on home and auto insurance while keeping the coverage that matters most.

1. Consider Increasing Your Deductibles

Raising your deductible is one of the simplest and most effective ways to lower your home and auto insurance premiums. The deductible is the amount you pay out of pocket before your insurance kicks in when you file a claim. While increasing your deductible will mean paying more in the event of an accident or damage, it also leads to lower premiums over time.

For example, the difference between a $500 deductible and a $1,000 or $2,500 deductible on a homeowners policy can result in significant annual savings. Raising the deductible for comprehensive or collision coverage from $500 to $1,000 or even $2,000 on an auto insurance policy can substantially bring down monthly premiums.

Important Considerations:

Before you opt for a higher deductible, please make sure you can safely cover that amount in case of a claim.
Review your history of filing claims—a higher deductible might make financial sense if you’re a low-claim individual.

*Pro Tip: Request quotes for varying deductible levels. Set your comprehensive (covers ‘Acts of God’) deductible at $100 and your collision deducible at $1,000 (you’re a great driver, right?). See what happens!

2. Bundle Your Policies for Multi-Policy Discounts

Many insurance carriers offer multi-policy or bundling discounts, which can lead to significant savings. Bundling means purchasing multiple policies—such as auto and home insurance—from the same provider. In some cases, discounts of up to 25% or more are available, making it a simple and effective way to save.

For example, you can unlock discounts by purchasing your homeowners and auto insurance from the same company. Not only is bundling convenient—since you’re dealing with one provider for multiple coverages—but it also rewards customer loyalty with lower costs.

Key Benefits of Bundling:

Streamlines your insurance management with one point of contact.
This can lead to substantial discounts on both auto and home policies.
Some providers offer additional loyalty discounts the longer you stay with them.

*Pro Tip: In a challenging insurance market, carriers may not be as willing to ‘bundle’ coverage. So, if you have a carrier providing a bundle, consider staying with them for ease of use and better protection.

3. Look for Special Discounts

Insurance companies offer various discounts, many of which you may already qualify for without realizing it. These can range from discounts for being a safe driver to memberships with certain organizations. For example, at Fusco Orsini & Associates, we recommend clients take advantage of savings through:

Good Driver Discounts: In California, drivers who have maintained a clean driving record for at least three years are eligible for the Good Driver Discount, which can significantly reduce auto insurance premiums.
Costco Membership Discounts: Certain insurers offer discounted rates to Costco members, which can lead to savings on auto and home insurance.
Home Security Discounts: Installing security features such as smoke detectors, burglar alarms, and surveillance systems can reduce your homeowner’s insurance costs. The added safety benefits also bring peace of mind.

By exploring and leveraging these discounts, you can shave off a considerable portion of your premiums without adjusting your coverage.

*Pro Tip: If you have performed updates on your home systems, such as roofing, HVAC, plumbing, and electrical, let your agent know! These updates could help with premiums.

*Pro Tip: Consider wildfire mitigation for your home in areas prone to these disasters. More and more companies are coming to market with promising techniques to protect your home from these horrific wildfires. Click here to learn more!

4. Optimize Auto Insurance for Young Drivers

One of the most expensive additions to an auto insurance policy is a young driver, especially in California, where premiums for youthful operators are notoriously high due to inexperience and a higher perceived risk of accidents. However, there are ways to manage these costs:

Choose Older Vehicles for Young Drivers: Instead of insuring a new or expensive car for a teenager, consider an older, reliable vehicle that doesn’t require comprehensive or collision coverage. This can significantly reduce the cost of adding a young driver to your policy.
Student Discounts: Many insurance companies offer discounts for students who maintain a high GPA, often called “Good Student Discounts.” If your teen meets these criteria, take advantage of this.
Driver Education Courses: Enrolling your child in a recognized driver’s education course may qualify them for a discount. These programs not only teach safer driving but may help lower your premiums.

Also, remember that a young driver in California won’t qualify for the Good Driver Discount until they have been licensed for at least three years and have maintained a clean driving record. Until then, these savings strategies can help reduce the burden of insuring a youthful driver.

*Pro Tip: As a parent, I know we love to make our kids happy. That often leads to a brand-new Ford Mustang GT in the driveway. This purchase WILL NOT help your insurance premiums! Instead, look for a car that a teen would like but is older and doesn’t require physical damage coverage.

5. Review Your Coverage Annually and Avoid Cutting Critical Coverage

As life circumstances change, so do your insurance needs. It’s important to review your home and auto policies annually to ensure that your coverage aligns with your current situation and that you’re not paying for coverage you no longer need. However, avoiding cutting coverage that protects you from significant financial loss is equally important. For example:

Homeowners Policy Coverage A: At Fusco Orsini & Associates, we never recommend reducing Coverage A, which refers to the dwelling coverage on your homeowners policy. This is the part of your policy that protects the structure of your home. Reducing this coverage can leave you exposed if you need to rebuild or repair after damage.
Liability Coverage on Auto Policies: Similarly, lowering your liability limits on your auto policy may seem like an easy way to save money, but it can backfire in a severe accident. If you’re found at fault in an accident and your liability coverage is too low to cover the damages, you could be held personally responsible for the remaining costs. Maintaining adequate liability limits is critical to protecting your finances.

Instead of cutting these essential coverages, focus on savings through the abovementioned strategies: higher deductibles, discounts, bundling, and optimizing coverage for young drivers. You can also work with an independent insurance agency like ours to shop for the best rates across different carriers without sacrificing coverage.

*Pro Tip: Consider adding an umbrella policy, especially if you have assets to protect. I understand you are trying to find ways to SAVE, and I suggest you spend more money. However, personal umbrella coverage is generally inexpensive and can add much-needed protection. Umbrella insurance is a great value!

Conclusion

Saving on home and auto insurance doesn’t have to mean compromising on protection. By taking a proactive approach—such as increasing deductibles, bundling policies, exploring discounts, and optimizing your coverage for young drivers—you can find meaningful savings without taking unnecessary risks. At Fusco Orsini & Associates, we protect what matters most while helping our clients stay within their budgets.

We encourage you to regularly review your insurance policies and speak with an advisor who can help identify new savings opportunities. Responsible financial decisions today can help you avoid costly mistakes in the future.

We’d like to help you strike the perfect balance between affordability and peace of mind.

Significant Claims and Coverage Related Laws

Tue, 19 Aug 2025 00:52:13 GMT

In a recent post, our agency provided resources for those affected by the Los Angeles fires, and many readers were thankful for the section “Significant Claims and Insurance Coverage Related Laws,” released by the California Insurance Commissioner on 1/9/2025.

I thought it would help to provide the section of the resources page in a separate document for those seeking an understanding of the insurance code.

Actual Cash Value Calculation: Under an open policy, the measure of indemnity in fire insurance is the expense to the insured of replacing the thing lost or injured in its condition at the time of the injury, the expense being computed as of the time of the commencement of the fire. Under an open policy that requires payment of actual cash value, the measure of the actual cash value recovery, in whole or partial settlement of the claim, for either a total or partial loss to the structure or its contents, shall be the amount it would cost the insured to repair, rebuild, or replace the thing lost or injured less a fair and reasonable deduction for physical depreciation based upon its condition at the time of the injury or the policy limit, whichever is less. A deduction for physical depreciation shall apply only to components of a structure that are normally subject to repair and replacement during the useful life of that structure (Cal. Ins. Code section 2051).
Replacement Cost Value Calculation: Under an open policy that requires payment of the replacement cost for a loss, the measure of indemnity is the amount that it would cost the insured to repair, rebuild, or replace the thing lost or injured, without a deduction for physical depreciation, or the policy limit, whichever is less (Cal. Ins. Code section 2051.5[a]).
Time Limit to Collect Full Replacement Cost: An insured will have no less than 12 months (from the date that the first payment toward the actual cash value is made) to collect the full replacement cost of the loss, subject to the policy limit. In the event of a loss relating to a “state of emergency,” as defined in California Government Code section 8558, an insured will have no less than 36 months (from the date that the first payment toward the actual cash value is made) in order to collect the full replacement cost of the loss, subject to the policy limit. Additional extensions of six months shall be provided to policyholders for good cause (Cal. Ins. Code sections 2051.5[b][1] and [2]).
Rebuilding in Current Location or Rebuilding or Replacing in a New Location: In the event of a total loss of the insured structure, a policy issued or delivered in this state shall not contain a provision that limits or denies, on the basis that the insured has decided to rebuild at a new location or to purchase an already built home at a new location, payment of the building code upgrade cost or the replacement cost, including any extended replacement cost coverage, to the extent those costs are otherwise covered by the terms of the policy or any policy endorsement. However, the measure of indemnity shall not exceed the replacement cost, including the building code upgrade cost and any extended replacement cost coverage, if applicable, to repair, rebuild, or replace the insured structure at its original location (Cal. Ins. Code section 2051.5[c][1]).
Land Value Deduction: For a residential property insurance policy, the measure of damages available to a policyholder to use to rebuild or replace the insured home at another location shall be the amount that would have been recoverable had the insured dwelling been rebuilt at its original location, and a deduction for the value of land at the new location shall not be permitted from that measure of damages. However, the measure of indemnity shall not exceed the cost, including the building code upgrade cost and any extended replacement cost coverage, if applicable, to rebuild the insured structure at its original location (Cal. Ins. Code section 2051.5[c][2]).
List of Items Covered – Additional Living Expenses (ALE): If requested by the insured, this section requires insurance companies to provide the insured with a list of items that an insurer believes would be covered under the policy (Cal. Ins. Code section 2060[a]).
Time Limit to Collect Additional Living Expenses (ALE): In the event of a covered loss relating to a state of emergency, as defined in California Government Code section 8558, on and after July 1, 2021, coverage for additional living expenses (or loss of use) shall be for at least 24 months from the inception of the loss, but shall be subject to other policy provisions. An insurer shall grant an extension of up to 12 additional months, for a total of 36 months, if an insured acting in good faith and with reasonable diligence encounters a delay or delays in the reconstruction process that are the result of circumstances beyond the control of the insured. Circumstances beyond the control of the insured include, but are not limited to, unavoidable construction permit delays, lack of necessary construction materials, and lack of available contractors to perform the necessary work. Additional extensions of six months shall be provided to policyholders for good cause (Cal. Ins. Code section 2060[b][1]).
Uninhabitable/Reasonable Habitation (ALE): If the insured home is rendered uninhabitable by a covered peril, on and after July 1, 2021, a policy that provides coverage for additional living expenses shall not limit the policyholder’s right to recovery. However, an insurer may, in lieu of making living expense payments required by this subdivision, provide a reasonable alternative remedy that addresses the property condition that precludes reasonable habitation of the insured premises. The additional living expense coverage subject to this section does not include a utility public safety power shut off event, which is the deenergization of a portion of the electrical distribution or transmission system to reduce the risk of wildfire ignition (Cal. Ins. Code section 2060[b][2]).
Restricted Access by Civil Authority (ALE): In the event of a state of emergency, as defined in Gov. Code section 8558, for a loss that is otherwise not subject to Cal. Ins. Code sections 2060(b)(1) and (2) above that is accompanied by an order of civil authority restricting access to the home, related to a covered peril, on and after July 1, 2021, additional living expense coverage shall be provided for at least two weeks. Additional extensions of two weeks shall be provided to a policyholder for good cause, but shall be subject to other policy provisions (Cal. Ins. Code section 2060[c]).
Additional Living Expense (ALE) Advance Payment: In the event of a covered loss relating to a state of emergency, as defined in California Government Code section 8558, the following special provision shall apply under a residential property insurance policy:(1) If an insured has made a claim for additional living expenses related to a total loss, an insurer shall, upon request by an insured, render an advance payment of no less than four months of living expenses. Additional payment for additional living expenses shall be payable upon proper proof following the advance period (Cal. Ins. Code section 2061[a]).
Itemization of Contents: In the event of a covered loss relating to a state of emergency, as defined in California Government Code section 8558, the following special provisions shall apply under a residential property insurance policy:(2) If an insured has made a claim for contents related to a total loss of a primary residence, an insurer shall not require that the insured use a company-specific inventory form if the insured can provide an inventory using a form that contains substantially the same information. This subdivision does not limit the authority of an insurer to seek additional reasonable information from an insured upon receipt of an inventory form submitted by an insured.(3) If an insured has made a claim for contents related to a total loss of a primary residence, an insurer shall accept an inventory that includes groupings of categories of personal property, including clothing, shoes, books, food items, CDs, DVDs, or other categories of items for which it would be impractical to separately list each individual item claimed (Cal. Ins. Code section 2061[a]).
Changing Claims Adjusters: If, within a six-month period, an insurer assigns a third or subsequent adjuster to be primarily responsible for a claim, the insurer shall provide the insured with a written status report. The written status report must include a summary of any decisions or actions that are substantially related to the disposition of a claim, including, but not limited to, the amount of losses to structures or contents, the retention or consultation of design or construction professionals, the amount of coverage for losses to structures or contents, and all items of dispute (Cal. Ins. Code section 2071). Note: In addition to the above, California Insurance Code section 14047 requires that for a claim arising from a state of emergency, if, within a six-month period, an insurer assigns a third or subsequent first-party real or personal property claims adjuster, the insurer shall establish a primary point of contact for the insured and provide the insured one or more direct means of communication with the primary point of contact.
Appraisal: In the event of a government-declared disaster, as defined in the California Government Code, appraisal may be requested by either the insured or the insurance company but shall not be compelled (Cal. Ins. Code section 2071).
Copy of Complete Policy After a Loss: After a covered loss under a policy covered by California Insurance Code section 2071, an insurer shall provide to the insured, free of charge, a complete, current copy of their policy within 30 calendar days of receipt of a request from the insured. The policy must include the full insurance policy, any endorsements, and the declarations page (Cal. Ins. Code section 2084).
Building Code Upgrade Coverage: An open policy of residential property insurance that provides replacement cost coverage shall not be issued or renewed unless it provides additional building code upgrade coverage of no less than 10 percent of the dwelling coverage policy limits. The building code upgrade coverage required by this subdivision shall be additional coverage, and use of this coverage shall not reduce or deplete the dwelling coverage policy limits for the insured property. Insurers may offer building code upgrade coverage of greater than 10 percent of the dwelling coverage policy limits, in addition to providing the minimum coverage of 10 percent of the dwelling coverage policy limits (Cal. Ins. Code section 10103[c]).
Ability to Combine Coverages: In the event of a claim relating to a state of emergency, an insured under a residential property insurance policy shall be permitted to combine payments for claims for losses up to the policy limits for the primary dwelling and other structures, for any of the covered expenses reasonably necessary to rebuild or replace the damaged or destroyed dwelling, if the policy limits for coverage to rebuild or replace the primary dwelling are insufficient (Cal. Ins. Code section 10103.7[a]).
Payment of Contents Without Inventory: In the event of a covered total loss of a primary dwelling under a residential property insurance policy resulting from a state of emergency, if the residence was furnished at the time of the loss:(1) The insurer shall offer a payment under the contents (personal property) coverage in an amount no less than 30 percent of the policy limit applicable to the covered dwelling structure, up to a maximum of two hundred fifty thousand dollars ($250,000), without requiring the insured to file an itemized claim.(2) After receiving the payment described in paragraph (1), the insured may recover additional amounts up to the policy limit for contents coverage by filing a claim pursuant to the terms of the policy for the loss of contents that exceeds the value of the payment provided pursuant to paragraph (1).(3) When an insured files a claim relating to a state of emergency, as defined in California Government Code section 8558, the insurer shall notify the insured of the option to receive payment for loss of contents pursuant to paragraph (1) and of the insured’s option to subsequently file a full itemized claim pursuant to paragraph (2).(4) This subdivision does not affect payment under the policy for scheduled personal property.(5) This section does not prohibit an insurer from restricting payment in cases of suspected fraud (Cal. Ins. Code section 10103.7[b]).

Simplify Payroll and Workers’ Compensation

Tue, 19 Aug 2025 00:51:40 GMT

A New 4C Advising Partnership

At 4C Advising, we’re committed to finding solutions that help businesses thrive. That’s why we’re excited to announce a new partnership that will streamline payroll and workers’ compensation integration. This collaboration, with Fusco Orsini & Associates serving as your trusted broker for workers’ compensation, provides businesses with the tools they need to simplify payroll management and stay on top of workers’ comp premiums, all while gaining valuable, real-time insights.

Why This Partnership?

This new solution offers more than just payroll services; it’s designed to eliminate the headaches associated with managing payroll and workers’ compensation. Here’s why this partnership, in combination with Fusco Orsini & Associates’ expertise, is the perfect fit for businesses looking to enhance efficiency:

Quick Payroll Processing: You can pay your team in less than 30 seconds! Your employees will always get paid quickly and securely with fast direct deposit options.
Integrated Workers’ Comp: The platform seamlessly integrates workers’ compensation, ensuring accurate premium calculations based on real-time payroll data. This eliminates the guesswork and ensures you never overpay or overpay your workers’ comp premiums.
Real-Time Labor Costs: Stay in control with real-time insights into labor costs, broken down by location, task, or employee. This gives business owners unparalleled control over payroll, taxes, and workers’ compensation expenses.
Time Tracking and Job Costing: The built-in time tracking features, including GPS capabilities, allow businesses to accurately record hours worked and generate job costing reports to help manage labor costs.

Comprehensive Payroll and Workers’ Comp Solution

Whether you’re a small business or managing a large workforce, our platform offers flexible solutions designed to make payroll simple:

Unlimited payroll runs each month.
Automated tax payments and filings.
Paperless onboarding and employee document management.

Fusco Orsini & Associates: Your Workers’ Comp Broker

At Fusco Orsini & Associates, we are proud to be your broker for workers’ compensation on this platform. We provide peace of mind by knowing your premiums are accurately calculated and your coverage is aligned with your business needs. Our expert team ensures compliance with state requirements and helps manage workers’ compensation efficiently.

A Streamlined Partnership for Success

With this powerful platform and Fusco Orsini & Associates as your workers’ comp broker , 4C Advising can now offer a fully integrated solution that streamlines payroll, workers’ compensation management, and more. This allows you to focus on what matters: growing your business.

Ready to simplify your payroll and workers’ compensation processes? Contact us today to learn more about this new solution and see how it can positively impact your business.

Get in Touch

Please contact our 4C Advising and Fusco Orsini & Associates team to learn how we can simplify your payroll and workers’ comp management.

Safety Tips to Reduce the Risk of slips, trips and falls in the Workplace

Tue, 19 Aug 2025 00:51:01 GMT

National Safety Month is the perfect time to focus on slips, trips, and falls – a leading cause of workplace injuries. Every year, slips, trips, and falls lead to millions of dollars in lost productivity and medical expenses. In some cases, these accidents can even be fatal. That’s why employers need to take steps to mitigate any risks that could lead to these accidents. This blog post will discuss tips for keeping your workplace safe from slips, trips, and falls.

NATIONAL SAFETY COUNCIL STATISTICS

According to the National Safety Council, slips, trips and falls account for 15% of all workplace injuries. Of these accidents, slips are the most common, followed by trips and then falls. Slips typically occur when there is a change in the walking surface, such as from wet to dry or from smooth to uneven. Trips usually happen when there is an obstruction in the walking path, such as a loose cord or an open drawer. Falls typically occur when there is a change in elevation, such as when going up or down stairs.

SLIPS TRIPS AND FALLS CAN BE FATAL

Slips, trips, and falls are leading causes of workplace injuries and can sometimes be fatal. Employers must take steps to mitigate any risks that could lead to these incidents. Some tips for keeping your workplace safe from slips, trips, and falls include:

– Keeping the floors clean and free of debris

– Ensuring all floor surfaces are in good repair

– Putting up warning signs or barriers around potential hazards

– Encouraging employees to wear appropriate footwear

– Providing training on how to safely work in areas where there is a risk of slips, trips or falls.

By following these tips, you can help create a safer workplace for everyone. Do you have any other tips for preventing slips , trips and falls? Share them with us in the comments below.

CREATE A POLICY and HOLD SAFETY MEETINGS

Employers should also create a policy that requires employees to report any hazards they see. By doing this, you can help to identify potential risks before they lead to an accident.

Another way to prevent slips, trips and falls is to make sure your employees are aware of the dangers these accidents pose. One way to do this is by holding regular safety meetings or training sessions. You can also post safety signs in areas where there is a risk of slips, trips or falls.

REACH OUT TO FUSCO ORSINI & ASSOCIATES FOR HELP!

We hope you enjoyed our June National Safety Month series of videos and BLOGS. If you are a client of our agency, please reach your team of dedicated staff to assist with all of your risk and insurance needs.

If you have interest in partnering with our agency, complete the form below and we will reach out quickly.

Thank you again for visiting!

8 Ways Small and Midsize Businesses Can Save on Insurance

Tue, 19 Aug 2025 00:50:17 GMT

How to save money on business insurance? It’s one of the most common questions we hear from clients. To help you cut costs without cutting corners, we’ve put together a blog post with eight practical ways to reduce your insurance costs while still maintaining the coverage your business needs.

How much of my budget should go to insurance?

The answer to this question is: it depends. Each year, businesses incur various recurring expenses, such as insurance premiums, which on average range from 1 to 15% of a business’s total operating budget. Multiple factors, such as a company’s industry, location, size, exposures, history, regulatory requirements, geographic risks, and others, influence this percentage.

For example, a general contractor might allocate 10% of its total operating budget to insurance to cover workers’ compensation, general liability, builder’s risk, auto, and umbrella policies. In contrast, a graphic design agency may spend 1–2% on basic general liability and cyber coverage.

How can I reduce my insurance premiums?

It’s normal to want to save money on recurring business expenses, as long as you don’t compromise the safety and sustainability of your company. When it comes to saving money on insurance, consider the following strategies:

Bundle your policies. A business owner’s policy (BOP) is an excellent option for small- and midsize businesses. It combines multiple coverages, like general liability, property, and business interruption insurance, into a single policy. BOPs usually yield a lower premium than buying each coverage separately.
Level up your physical and cyber security. From alarms and surveillance cameras to antivirus software and firewalls, improving your security and theft-prevention measures may lead to cost savings.
Make safety a priority. Develop a strong safety program and safety manual, and implement ongoing safety training to reduce risks and prevent injuries. Doing so can help you maintain a strong safety record, which in turn can lead to lower premiums.
Work with a broker. Brokerages can shop among many carriers, comparing price and coverage options. They may also be able to negotiate better rates for you.
Maintain strong credit scores. A strong credit score is associated with a lower perceived risk, which can result in lower premiums.
Choose a higher deductible. Selecting a higher deductible can greatly reduce your premiums. Just be sure your company has the cash flow to cover a high out-of-pocket expense if needed.
Invest in best practices. For example, compliance tracking software and safety manuals show insurance underwriters your commitment to safety and compliance.
Classify your employees correctly. Each year, you should review your payroll and job classifications for accuracy. Proper classifications won’t save you money at the moment, but will help you prevent penalties down the road.

And always remember to ask! Ask your broker if they have any suggestions for ways you can save without compromising coverage. Working with a broker experienced in your industry can help you both find the right coverage and spot unnecessary coverage.

Sources:

Small Business Insights – How Small Businesses Can Reduce Insurance Expenses | Zywave

OpenAI. (2025, July 16). What are ways to lower insurance premiums [Large language model]. ChatGPT (GPT-4). https://chat.openai.com/

Social Engineering

Tue, 19 Aug 2025 00:49:43 GMT

What is social engineering?

Cybercriminals use social engineering to gain access to sensitive data and systems. By preying on key human behaviors, such as respect for authority figures, fear of conflict, and response to incentivization, the criminals deploy these attacks through false messaging, impersonation, malware, and more.

What does this mean for businesses?

Businesses must be vigilant and take measures to prevent these attacks from succeeding. Businesses of all sizes can guarantee they will contend with an attack like this eventually. Employees must know the red flags to look for and the process to report or verify suspicious activity.

Does cyber insurance cover social engineering attacks?

It’s also vital that business owners know that traditional crime and cyber insurance policies do not always cover social engineering attacks. Since employees are deceived into participating in these attacks, they often do not fall under the covered definitions of crimes outlined in these policies.

Businesses should consider purchasing additional, specialized coverage for social engineering incidents. It is also beneficial for businesses to work with the same carrier for their crime and cyber insurance policies to better identify gaps and overlaps between the two policies.

Common social engineering tactics include:

Phishing: Using fraudulent emails to try and get recipients to hand over sensitive information, click links, or open harmful attachments.
Spear phishing involves sending targeted messages to specific individuals and using personalized information based on the target’s online behavior to increase a feeling of legitimacy.
Business email compromise (BEC): This strategy involves cybercriminals posing as business leaders or partners within an organization to gain access to bank accounts or force money transfers.
Baiting and quid pro quo: This strategy encourages targets to share data or download malware by using false advertisements or deceitful promotions.
Pretexting: Cybercriminals pose as coworkers or authority figures and request sensitive information to “confirm their identities” or perform other tasks.
Tailgating: Cybercriminals will physically infiltrate a workplace by following closely behind an employee when they swipe their badge or pass through other security checkpoints.
Scareware: This scam uses scare tactics, such as deceptive messages impersonating law enforcement, virus infection alerts, and other tactics, to force targets to pay a ransom.

Tactics to mitigate social engineering attacks:

Train employees: Teach your team the red flags they should watch for and establish a process for reporting or verifying suspicious activity or communications.
Implement access controls: Only allow access to data necessary for employees to complete their jobs. Ensure all sensitive data is backed up securely.
Use security software: All company devices should be equipped with security software, such as antivirus programs, spam detection, two-factor authentication, email filters, and firewalls. This type of program can be a significant deterrent to cybercriminals.
Ensure safe financial transactions: It is best to Implement verification methods before payments are made or use a “two-person rule” to authorize payment requests before they are completed.
Adopt a cyber response plan: This plan should include possible scenarios and response steps to mitigate damages in the event of an attack.
Obtain cyber insurance: This coverage helps companies recover from cyber attacks and fund mitigation efforts.
Conduct a cyber security audit: Work with a trusted company to identify security gaps and change your systems.

Click HERE to connect with our team and learn more about Cyber Insurance.

Source: Zywave – Cyber Liability – Common Social Engineering Tactics to Watch For

Source: Zywave – Coverage Insights – Coverage for Social Engineering Attacks (Crime vs. Cyber Insurance)

Solar Contractors: Keep Your Team Golden with General Liability Coverage

Tue, 19 Aug 2025 00:49:05 GMT

Sacramento Leaders Pass Law Requiring Solar for New Home Construction

The sun came out for clean energy advocates this year when California state lawmakers determined that beginning in 2020, all new residential buildings up to three stories high must have solar panels.

Already a state known for supporting green technology, this move makes California the leader in energy efficiency. Data shows the Golden State already uses solar for 16 percent of its electricity output, and California even stops production at times to give electricity to other states so the electric grid isn’t overloaded.

Will it benefit new home builders?

For construction companies who want to feel like life is as golden for them as it is for the solar business, there are arguments in both columns. On one hand, they will have to sell or lease a solar-powered system to homebuyers, which raises the average home cost by an estimated $8,000 to $12,000.

The good news? Homebuyers will finance it, especially because they assume they’ll earn back those dollars with the savings on their energy bills. The California Energy Commission estimated that average homeowners in a 30-year loan will likely save $80 a month on heating, cooling and lights.

Liability to construction companies

Another issue with valid arguments in both columns is the liability associated with the new construction mandate. If the challenge thrown at builders isn’t enough, now they must be sure they’re hiring solar contractors who are insured and who will maintain a safe work environment.

Solar contractors face unique challenges when installing solar, such as increased trip/fall hazards. Each time a worker installs a solar panel on a roof, less walking space becomes available. Workers must also be aware of skylights, vents, hatches and other roof openings.

Fusco & Orsini offers a general liability program from an A+++-rated, California-admitted carrier to keep your team protected.

And remember…all that glitters isn’t gold, it’s green!

Still Unsure About Filing a Workers’ Comp Claim? Here’s the Hard Truth

Tue, 19 Aug 2025 00:48:35 GMT

Delaying a workers’ compensation claim is one of the biggest mistakes an employer can make.

Think you’re saving money by waiting it out? Hoping the injury will “resolve itself”? Wrong .

Failing to file a workers’ comp claim on time can cost your business thousands in fines, legal fees, and increased premiums—not to mention potential lawsuits. The law is clear: employers must report workplace injuries. Dragging your feet won’t make the problem disappear. It will make it worse.

The reality? You need to file the claim. And you need to do it now.

In this post, we’re breaking down why delaying a workers’ compensation claim is a serious risk, how it can haunt your business, and what you should do instead. Let’s get into it.

Watch this video

“Do I Have to File a Workers’ Comp Claim?” Yes. Every Time.

We get the same call over and over from employers:

“An employee got hurt, but it’s minor. Do we need to file a workers’ comp claim?”

Every single time, our answer is the same: Yes. File the claim.

Yet employers hesitate. First, they fear their workers’ compensation premiums will increase.

Yes, it’s true—filing a claim can impact your premiums. But here’s what too many businesses fail to consider: the long-term financial and legal consequences of NOT filing can be far worse.

When an employer fails to report an injury, it opens the door to higher legal costs, fraud risks, compliance penalties, and even civil lawsuits. What starts as a “small” injury can escalate into a significant financial burden that could have been avoided simply by following the law.

The reality is that workers’ compensation is part of your Total Cost of Risk (TCOR). It’s not just about premiums—it’s about managing your company’s financial exposure, liability, and long-term stability.

So before you decide to ignore or delay a claim , ask yourself: Is the short-term premium increase worth the much more considerable risk of legal battles, out-of-pocket medical costs, and loss of coverage?

The choice is clear. File the claim—every time.

Your Policy Requires It—And Your Bottom Line Depends on It

Beyond common sense and risk management, there’s a fundamental reason you must file a workers’ compensation claim as soon as you’re aware of the injury: your insurance policy requires it.

Most workers’ compensation policies state that you must report claims immediately or as soon as the employer becomes aware of the injury . The language in the policy isn’t a suggestion—it’s a contractual obligation.

Why? Because the longer a claim sits unreported, the harder it becomes to control the outcome. Workers’ compensation insurance carriers must get ahead of the claim as early as possible. Delays lead to:

✔ Higher medical costs – Delayed treatment often means a worsening injury and more expensive care.

✔ Longer recovery times – Late reporting increases the chance that an employee will be out of work longer than necessary.

✔ Lost ability to investigate – Without an early report, the insurer has less control over the narrative, making it harder to dispute fraudulent or exaggerated claims.

✔ Increased legal exposure – If a claim is denied or mishandled due to late reporting, you risk costly legal disputes.

But here’s the impact many employers overlook —early claim reporting directly benefits your Experience Modification Factor (EMR/Mod Factor).

How Early Claim Reporting Lowers Your Workers’ Comp Costs

Your Experience Modification Factor is critical to your workers’ comp insurance pricing. A higher EMR means higher premiums—but early claim reporting helps keep your EMR under control.

✅ Faster claim closure – The sooner an employer files a claim, the sooner the carrier can work to resolve the claim —open claims that drag on increase claim costs, negatively impacting your EMR.

✅ Lower overall costs —Quick reporting reduces medical expenses, lost wages, and legal fees, which all factor into your EMR calculation.

✅ Stronger claim outcomes – When insurers can intervene early, they control costs better, reduce unnecessary treatments, and limit fraudulent claims.

✅ Improved safety ratings and bidding power —A lower EMR helps businesses qualify for better contracts, lower insurance rates, and maintain compliance.

Carriers don’t require immediate reporting for their benefit—it’s also in your best interest. The sooner you file, the greater the chance of containing the loss, minimizing costs, and controlling the case.

If you’re considering delaying a claim because you “want to see how the injury plays out,” think again. Your policy doesn’t give you that option, nor does the law.

The bottom line? File the claim. Early and every time. Your premiums, your EMR, and your business depend on it.

A Minor Injury Today Could Be a Major Lawsuit Tomorrow

One of the employers’ most significant mistakes is assuming they don’t need to report a minor injury. They think, “It’s just a small cut, a sore back, or a mild strain. We’ll handle it in-house.”

So, instead of filing a workers’ compensation claim , they decide to:

✔ Pay for the medical costs out of pocket.

✔ Cover the employee’s lost time with a few extra PTO days.

✔ Assume the injury is no big deal and move on.

And for a while, everything seems fine until it’s not.

What Happens When That “Minor” Injury Gets Worse?

Fast forward a few months—or even several years —and that same employee is now dealing with a serious medical issue . Maybe that sore back turns into a herniated disc requiring surgery. Perhaps the minor wrist strain becomes carpal tunnel syndrome that requires months of physical therapy.

And here’s the real problem: You’re now fully liable because you didn’t file a workers’ compensation claim when the injury happened .

At this point, the insurance carrier may deny coverage because the claim was never reported. That means your company is now financially responsible for medical bills, lost wages, and possibly even legal damages.

Pay Now or Pay Much More Later

Employers think they’re saving money by paying for minor injuries out of pocket. But in reality, they’re exposing themselves to unlimited liability.

✔ No coverage from your workers’ comp policy – Late claims are often denied, meaning your company foots the bill.

✔ Potential legal action from the injured employee —They can file a lawsuit, arguing that you failed to protect their rights.

✔ Higher long-term medical costs – What starts as a $200 doctor visit could turn into a $200,000 claim if surgery , rehabilitation, and lost wages are involved.

✔ Regulatory penalties for failing to report —In many states, failing to report an injury violates workers’ compensation laws and can result in fines or sanctions.

There’s no way to predict the future. What seems minor today could become a career-altering, high-cost injury. If that happens, and you never filed the claim, you are now responsible for every expense.

The Simple Solution? File the claim—every time.

It’s not worth the risk. Even if the injury seems insignificant, filing a claim protects your business from future liability . The insurance carrier can investigate early, monitor the situation, and contain costs before they spiral out of control.

The safest, wisest decision? File the claim. Protect your company. Avoid a financial disaster.

The Truth Isn’t Always Comfortable—But It’s What You Need to Hear

We don’t tell employers what they want to hear—we tell them what they need to hear.

We are honest. We are consistent. We are straightforward.

When you ask, “Should we file this workers’ comp claim?” Our answer is always the same: Yes—every time.

Not because it’s the easy answer but because it’s the correct answer. Filing on time protects your business, employees, and bottom line. Delaying or avoiding a claim only increases your risk, costs, and liability.

Workers’ compensation laws exist for a reason. Ignoring them will not solve the problem; proper claims handling will.

Need Help Navigating a Workers’ Comp Claim? Let’s Talk.

We’ve guided countless employers through workers’ compensation compliance, claims management, and risk reduction. If you’re unsure about a claim, don’t wait.

�� [Call us today] to discuss your situation.

�� [Schedule a consultation] for expert guidance.

�� [Learn more about workers’ comp best practices] on our Youtube channel.

The choice is yours. Do it right. File the claim.

Streamlining Workers’ Comp Claims with our Concierge Service

Tue, 19 Aug 2025 00:47:47 GMT

Post-Injury Management:

As a business owner, you know that managing workers’ compensation claims can be a complex and time-consuming process. It’s a challenge that requires meticulous attention to detail and a proactive approach to ensure your employees receive the support they need while keeping your business compliant and financially stable. That’s where our partnership with Zenjuries comes in. By leveraging Zenjuries’ innovative platform, we are transforming how workers’ comp claims are managed, offering you a streamlined, efficient solution that takes the hassle out of claims management.

One of Zenjuries’ standout features is the assignment of a dedicated ‘ZenPro’ to each of our clients. Your ZenPro is a human expert who will manage your business’s workers’ comp claims, ensuring personalized and attentive service. Imagine having a seamless process that not only saves you time but also enhances the overall well-being of your workforce. Welcome to a new era of workers’ comp claims management with Zenjuries.

What is Zenjuries?

Zenjuries is a cutting-edge platform designed to simplify and optimize the management of workers’ compensation claims. By automating and streamlining the claims process, Zenjuries helps businesses reduce administrative burdens, minimize costs, and improve outcomes for employers and employees.

Critical Benefits of Zenjuries:

Dedicated ZenPro: Each client is assigned a dedicated ZenPro, a human expert who manages all workers’ comp claims. Your ZenPro ensures that each claim is handled efficiently and with personalized attention, providing a single point of contact for all your claims management needs.
Efficiency and Automation: Zenjuries automates many tedious tasks associated with workers’ comp claims, such as paperwork, follow-ups, and compliance tracking. This frees up your time to focus on other critical aspects of your business.
Improved Communication: The platform facilitates seamless communication between all parties involved in a claim – from employees and employers to insurance carriers and healthcare providers. This ensures everyone stays informed and on the same page, reducing misunderstandings and delays.
Data-Driven Insights: Zenjuries provides detailed analytics and reporting, offering valuable insights into claim trends, costs, and potential areas for improvement. This information lets you make more informed decisions and implement strategies to reduce future claims.
Employee Support: Zenjuries prioritizes the well-being of your employees by providing them with easy access to claim information, status updates, and resources. This not only enhances their experience but also fosters a supportive work environment.

By integrating Zenjuries into your workers’ comp claims management process, you can achieve greater efficiency, reduce costs, and provide better employee support. It’s a win-win for everyone involved.

Real-Life Success Stories with Zenjuries

Implementing Zenjuries has made a significant difference for many businesses. Here are a few success stories that highlight the transformative impact of our partnership:

Case Study 1: A Construction Company

A mid-sized construction company struggled with managing their workers’ compensation claims due to the high-risk nature of their work. By partnering with Zenjuries, they were able to:

Reduce Claim Processing Time by 40%: The ZenPro assigned to their account streamlined the entire claims process, ensuring timely and accurate handling of each claim.
Lower Administrative Costs by 30%: Automating paperwork and follow-ups allowed their HR team to focus on other critical tasks.
Enhance Employee Satisfaction: Employees appreciated the quick resolution of their claims and the easy access to information provided by the Zenjuries platform.

Case Study 2: A Retail Chain

A large retail chain faced challenges managing workers’ comp claims across multiple locations. With Zenjuries, they experienced:

Improved Communication Across Locations: The centralized platform allowed seamless communication between stores, employees, and the main office.
Insightful Data Analytics: Detailed reports and analytics helped identify common causes of workplace injuries, leading to targeted safety training and reduced incidents.
Personalized Support: The dedicated ZenPro provided personalized assistance, ensuring that all claims were handled with care and attention to detail.

Case Study 3: A Healthcare Provider

A healthcare provider with a high volume of claims needed a more efficient solution. Zenjuries helped them achieve:

Streamlined Claims Management: Automation reduced the administrative burden on their staff, allowing them to focus on patient care.
Better Compliance: The platform’s compliance tracking features ensured that all claims met regulatory requirements, reducing the risk of fines and penalties.
Enhanced Employee Trust: ZenPro’s support improved trust and morale among employees, who felt their needs were promptly and efficiently addressed.

These success stories demonstrate the real-world benefits of partnering with Zenjuries. By integrating their platform into your workers’ comp claims management process, you too can experience these advantages and more.

How to Get Started with Zenjuries

We are delighted to deliver Zenjuries free of charge to our VVIP clients.

For others, Zenjuries is available to you! Here is how to get started:

Ready to streamline your workers’ comp claims with Zenjuries? Getting started is straightforward. Here’s a step-by-step guide to help you integrate Zenjuries into your claims management process:

Reach Out to Us: Complete the form below to discuss your needs and how Zenjuries can help. We’ll provide a personalized consultation to understand your business and claims management challenges.
Set Up Your Account: Once you’ve decided to partner with Zenjuries, we’ll help you set up your account.
Meet Your ZenPro: Each client is assigned a dedicated ZenPro, an expert who will manage all your workers’ comp claims. Your ZenPro will introduce themselves and explain how they will support your claims management process.
Training and Onboarding: Our team will provide comprehensive training to ensure you and your staff are comfortable using the Zenjuries platform. We’ll walk you through all the features and functionalities so you can make the most of the system.
Start Managing Claims: With everything set up, you can begin managing your workers’ comp claims more efficiently. Your ZenPro will be there to assist with any questions or issues.
Ongoing Support and Optimization: We offer continuous support to ensure your claims management process runs smoothly. We’ll also provide regular updates and enhancements to the Zenjuries platform to optimize it for your needs.

Why Choose Our Partnership with Zenjuries?

Partnering with Zenjuries and Fusco Orsini & Associates offers unique advantages that distinguish us from other solutions. Here’s why you should consider us for your workers’ comp claims management needs:

Expertise and Experience: With years of experience in the insurance and risk management industry, we deeply understand the challenges businesses face in managing workers’ comp claims. Our expertise ensures you receive top-notch service and advice.
Personalized Service: Our partnership with Zenjuries means you get the best of both worlds – cutting-edge technology and personalized human support. Your dedicated ZenPro will provide tailored assistance and handle your claims carefully.
Comprehensive Solutions: Besides claims management, we offer various services to support your business, including risk management, compliance, and employee care solutions. Our holistic approach helps you address all aspects of workers’ compensation and beyond.
Proven Results: Our clients’ success stories demonstrate the tangible benefits of our partnership with Zenjuries. From reducing administrative costs to improving employee satisfaction, our solutions deliver real-world results that positively impact your business (think Experience Modification Factors)!
Commitment to Your Success: We are dedicated to helping your business succeed. Our team is always available to provide support, answer questions, and ensure your claims management process is as efficient and effective as possible.

Four Ways to Help Your Team Manage Stress in 2025

Tue, 19 Aug 2025 00:47:04 GMT

Managing stress at work isn’t a nice-to-have. It’s a must-have.

In 2025, stress levels in the U.S. are at an all-time high, as nearly 40% of Americans report experiencing peak stress (MSN). From rising global costs to political unrest, health concerns, technology changes, work pressures, and more, it’s no wonder people feel pinched. But do we have to stay this way?

As business leaders and decision-makers, we have the opportunity and responsibility to model stress management from the top down. Managing stress isn’t just about positive thinking. Effective stress management is practical, proactive, and personal. It involves modeling self-care, fostering real connection, and helping employees access the benefits already at their fingertips.

Let’s break down four ways you can help your team, and yourself, manage stress more effectively this year.

Model Self Care From the Top

A “CEO who practices self-care” almost sounds contradictory. We’re accustomed to the idea of an invincible leader who relentlessly works around the clock. There’s no denying that leaders must face enormous challenges, like making high-stakes decisions and financially performing (we see you). These are genuine, important parts of the job. But there must be room for self-care, too.

A Businessolver survey revealed that 55% of CEOs reported experiencing a mental health issue in the past year, a 24-point jump from the previous year. If that’s not a wake-up call for self-care, what is?

The good news is, self-care doesn’t need to be grandiose. It can be a daily journal habit, a weekly walk without your phone, mental health support, or taking a break to reset.

Recently, our CEO Mike Fusco shared how a personal trip provided him with a clarity reset. “It offered me a meaningful family connection and a decisive clarity break, allowing me to reflect deeply on business, life, and leadership.” He added, “It is easy to forget how fortunate we are. The ability to build a business, serve clients, create jobs, and design our future is a privilege not afforded to everyone worldwide.”

His takeaway? Gratitude grows when we pause and look around.

So, ask yourself:

What would it look like to pause and invite support?
Does gratitude feel distant right now?
Am I feeling stressed?
Am I nearing capacity?

Build Social Connections

People need people. As It’s Your Yale puts it, “Camaraderie and a sense of friendship among team members are associated with the highest levels of morale and job satisfaction.”

Where can you facilitate connection through collaboration, shared goals, and safe communication, in order to manage stress? How can you encourage your team to speak up when they are struggling or overwhelmed, and how can you and your supervisors listen better when employee do speak up?

Promote Employee Benefits

Even the most connected teams will face stressors that require more than a good chat or a few days off of work. That’s where employee benefits come in, especially your Employee Assistance Program (EAP).

About 69% of small to mid-sized companies offer an EAP – yay! The problem is that many employees aren’t fully aware of the benefits available to them.

What is an Employee Assistance Program (EAP)?

An EAP gives employees access to services that address personal challenges, such as psychological challenges, grief, stress management, etc. Employers sponsor this program, which provides confidential support that will not negatively impact the employee’s career or reputation.

If your team dosn’t know about your EAP, they aren’t going to use it. Make your EAP and all of your stress-busting benefits known. Talk about them. Normalize them.

Our benefits team is standing by to help you start, strengthen, and promote your EAP and wellness offerings. Click here to connect.

Make Stress Management Real, Relatable, and Accessible

Wellness doesn’t have to break the bank or be over the top.

From mindfulness tools to breaks to EAPs and social connection, many low-cost wellness initiatives make a big impact. But the best investment starts with awareness.

So we’ll leave you with this question: If you asked your employees how your company supports their stress management, what would they say?

If you’re unsure or want to dig in further, we’re here to support you. Start HERE.

Disclaimer: This article is for informational purposes only and is not intended to provide medical or mental health advice. Always consult with a qualified healthcare provider or licensed mental health professional regarding any health-related concerns.

Sources:

Businessolver 2024 Empathy Study: 55% of CEOs Say They’ve Experienced a Mental Health Issue, Up 24 Points | News | Businessolver

We know teamwork is important, but how important? | It’s Your Yale.

America’s 2025 Stress Crisis: Why Nearly 40% Are Hitting Their Limit | MSN

Sub-contractor Forms and Endorsements to Know

Tue, 19 Aug 2025 00:46:26 GMT

If we could give one piece of advice to general contractors, it would be:

Read all forms relating to the use of subcontractors or independent contractors in your general liability policy!

If you hire subcontractors, there will be language in your policy that dictates the steps you must take to ensure protection by your liability insurer.

Here are some examples of this kind of language to look for in your schedule of forms and endorsements:

-Subcontractor Warranty

-Subcontractor and Independent Contractor Conditional Amendment of Deductible

-Independent Contractor/Subcontractor Conditions Precedent

-Uninsured Contractor or Subcontractor Deductible Amount

-Exclusion – Unlicensed Contractors

-Independent Contractors, and

-Subcontractors and Casual Workers of the Insured.

The definitions of these forms vary greatly, and some are far more lenient than others. Most forms aim to ensure that the general contractor collects proper risk transfers from subcontractors, including signed agreements with hold-harmless language and indemnification clauses.

While most of the forms above dictate the steps a general contractor should take to ensure their protection (and the insurer’s best interest), others can state what actions they will take if the general contractor hires an uninsured subcontractor. These actions would take place at the time of an inspection, audit, or claim.

How can our agency help general contractors?

1. We ensure our clients know the policy contract and how to protect themselves best. Again, reading and understanding the language is the first step.

2. We also assist our clients with creating proper subcontractor agreements that are acceptable to the insurance companies.

3. Finally, we offer a done-for-you subcontractor compliance service that tracks contracts, certificates, and additional insureds. Our clients do not need to worry about retaining and renewing these critical documents, thus remaining compliant and protected.

Click HERE to connect with one of our friendly associates.

Subcontractor Agreements & Getting Started

Tue, 19 Aug 2025 00:45:30 GMT

Are you hiring a subcontractor for your business? If so, it is vital to establish a formal relationship between your business and the subcontractor from the very beginning. Doing so lets you set expectations, define roles and responsibilities, and set terms and conditions. These steps can help you reduce risk and disputes moving forward.

There are many things to consider when assembling a subcontractor agreement, which we can help you set up through our 4C Advising partnership. Inquire by completing this form:

In the meantime, here’s an overview of what to consider when setting up a subcontractor relationship and agreement:

Prequalify your subcontractor. Before you begin writing a contract, make sure your subcontractor has the qualifications to do the work you desire. Ensure they have the team to do the job and any necessary certifications, which you can request a copy of.
Ensure that your subcontractor is bonded and insured and request certificates of insurance upon working together. Specifically, they should provide certificates of insurance showing their business name as the named insured on an ACORD 25. The subcontractor’s policy should also name the contractor (your company) as an additional insured with proper endorsements. Insurance policies to look for include workers’ comp, general liability, auto liability, and umbrella coverage. (P.S. – We have a handy tool to help you track all of this.)
Define your scope of work. You’ll want to clearly define the scope of work, including services, roles and responsibilities, and deliverables. According to Zywave, you may also want to define “requirements for quality, including the requirement to allow independent quality inspections of materials and processes.”
Define terms and conditions. In addition to roles and responsibilities, you should clearly define deadlines, expectations, termination conditions, and payment information. Specify the payment terms, including how and when you will pay the subcontractor.
Compliance: You’ll want to ensure that all parties are willing to comply with labor laws, safety standards, environmental regulations, and more.
Dispute resolution should be noted in your agreement, as it outlines how you will work through the dispute using mediation or arbitration.
Confidentiality is essential to note when protecting confidential information and intellectual property.

A subcontractor agreement can vary depending on your business and the type of subcontractor support you are seeking. While this list provides a high-level overview, there are additional items to safeguard your business. You should seek advisory services to customize a subcontractor agreement that meets your needs.

In addition to executing a sound agreement, there are other steps you can take to start your subcontractor relationship on the right foot. One example is pre-work meetings, where you establish worksite safety plans and inspections, emergency plans, workplace violence prevention, and more.

We would be happy to help you establish subcontractor management best practices and execute an up-to-date agreement for your business. Get started by filling out the form above.

What you don’t know can hurt you!

Tue, 19 Aug 2025 00:44:56 GMT

Identifying Risky Exclusions in Subcontractor Insurance

In recent months, I’ve written articles and released videos aimed at general contractors, highlighting how exclusions within general liability policies can significantly impact business protection. I have also emphasized the importance of compliance, especially when hiring subcontractors—to ensure proper coverage and avoid costly, unexpected audits.

My latest discussions focused on action-over and third-party action-over exclusions, which sparked insightful questions from clients and prospects in the general contractor space. Many were concerned and wanted to understand better how they could determine whether a subcontractor’s policy contained exclusions that might leave them exposed. The short answer? A GC wouldn’t necessarily know.

Identifying these exclusions requires extensive knowledge of insurance policies, a deep understanding of the marketplace, and knowing what specific information to request. This is where working with a dedicated risk management partner like 4C Advising becomes invaluable—helping GCs navigate insurance complexities and ensuring they have the protection they need.

My Search for a Better Solution

My commitment to helping general contractors better protect themselves began in 2018 when a valued client was nearing completion of a custom home build on the California coast. This highly diligent general contractor client had always prioritized compliance and took every necessary step to protect his firm. He ensured that all subcontractors provided Certificates of Insurance (COIs) with additional insured endorsements in his firm’s favor. The general liability policies included primary and non-contributory wording, and he had executed a subcontractor agreement with solid indemnification and hold-harmless clauses.

As part of the final preparations, the contractor hired a cleaning company to ensure the home was pristine before the final walk-through. Unfortunately, the company caused irreparable damage during the window-cleaning process, leading to nearly $500,000 in losses.

When the homeowner demanded the windows be replaced, my client followed all proper channels and tendered the loss to the subcontractor responsible for the damage. Due to his diligent documentation and compliance efforts, he expected a smooth claims process.

However, he was shocked when the subcontractor’s Commercial General Liability (CGL) carrier denied the claim. The reason? A hidden exclusion in the policy that barred coverage for work on homes exceeding 5,000 square feet.

This eye-opening experience marked the beginning of my mission to find better solutions for my clients, ensuring they truly understand their risks and have the proper protection in place before an issue arises.

The Hidden Dangers of Policy Exclusions

A general liability policy covers property damage and bodily injury caused by a subcontractor’s work. However, insurance carriers often include exclusions that limit or eliminate coverage for specific claims . Here are a few key exclusions that can significantly impact general contractors:

Subsidence Exclusion: This excludes coverage for claims related to earth movement, such as soil settling, shifting, or sinking. This can be a significant issue in excavation or foundation work.
Action Over Exclusion: Prevents coverage for employee injuries that lead to lawsuits against the general contractor. If a subcontractor’s worker gets injured on-site and sues you, you could be left without coverage.
Residential or Multi-Family Exclusions: Some policies exclude coverage for work on residential or multi-family projects, a significant issue for GCs working in those sectors.
Designated Work Exclusions: These exclusions specify certain types of work that are not covered, meaning a subcontractor could be uninsured for the task they are hired to perform.
Independent Contractor Exclusions: If a subcontractor hires additional independent contractors, some policies exclude coverage for claims related to their work.

These exclusions are often buried deep within the policy language, making them easy to overlook unless you know where to look.

We remain vigilant and stay informed about the evolving exclusions circulating in the marketplace.

How to Identify Risky Exclusions

Understanding what exclusions are in your subcontractors’ policies requires more than just glancing at a COI. A COI provides only a summary of coverage and does not detail policy exclusions. To get the whole picture, you need to:

Request the Full Policy or Endorsement Pages: Always ask subcontractors for their policy’s declarations and endorsements to verify exclusions.
Look for Key Red Flags: If the policy includes any of the abovementioned exclusions, it could leave you vulnerable.
Engage an Expert for Review: Insurance policies can be complex. Work with a risk management professional or compliance service to ensure you are not missing any critical gaps in coverage.

The Role of Subcontractor Compliance & COI Tracking

Ensuring subcontractors have adequate insurance isn’t just about compliance but protecting your business from financial risk. This is where subcontractor compliance programs and COI tracking come into play.

At 4C , we provide general contractors with a streamlined solution for tracking COIs, verifying coverage, and identifying risky exclusions before they become problematic. Our system ensures that all subcontractors maintain proper coverage and flags gaps before they impact your bottom line.

Incorporating technology-driven compliance solutions , such as automated document tracking, verification, and expiration reminders , can make this process significantly more efficient. With instant document data extraction and endorsement analysis , general contractors can gain real-time insights into potential gaps in coverage. These solutions also streamline vendor communication through in-app messaging and automated follow-ups, ensuring compliance efforts remain seamless and proactive.

By leveraging compliance assistance and analytics, contractors can maintain a comprehensive risk management strategy that prevents costly surprises and strengthens overall project security.

Final Thoughts & Call to Action

Insurance exclusions can be a hidden threat that risks your business. Being proactive about subcontractor compliance and insurance tracking can prevent costly surprises. Don’t wait until it’s too late—take control of your risk management strategy today.

If you’re unsure whether your subcontractors’ insurance policies protect you, contact our team at 4C. We can help you establish a robust compliance program that keeps your projects and business secure.

Do you have any questions? Contact us today to discuss how you can safeguard your projects against hidden insurance risks.

From the Gridiron to Your Business: The Super Bowl of Business Coverage

Tue, 19 Aug 2025 00:44:11 GMT

As the NFL playoffs heat up, the excitement of the big game brings to mind the critical roles insurance policies play in protecting businesses. Just like NFL players on a championship run, each policy has a specific role to ensure your team—your business—is ready to tackle any challenge. Let’s huddle up and break down how your coverage lineup measures up to an NFL Super Bowl roster.

1. Quarterback: General Liability Insurance

Every great team starts with a solid quarterback, and General Liability Insurance is the leader your business can’t do without. Just as Patrick Mahomes directs the Chiefs with poise, General Liability ensures your business stays protected from common risks. This coverage takes the pressure off by managing liabilities like injuries and property damage, so you can focus on scoring big with your business goals.

2. Running Back: Workers’ Compensation Insurance

The workhorse of your lineup, Workers’ Compensation Insurance, protects your employees, their families, and your business. It’s like Saquon Barkley’s phenomenal season with the Eagles—reliable, powerful, and always moving forward. Whether it’s a standout performance or a deep rotation like the Bills’ running back group, Workers’ Comp ensures your team keeps going, no matter who’s carrying the load.

3. Wide Receiver: Cyber Insurance

Fast, precise, and ready to make big plays, Cyber Insurance is the wide receiver of your coverage lineup. Much like the dynamic duo of AJ Brown and DeVonta Smith on the Eagles , Cyber Insurance protects your business from game-changing threats like data breaches and ransomware. Whether it’s a deep threat or a quick slant, this policy keeps your digital assets secure when the stakes are highest.

4. Offensive Line: Property Insurance

You can’t win without a strong offensive line, and Property Insurance is the shield that keeps your business standing strong. It’s like the Chiefs’ reliable interior line trio— Joe Thuney, Creed Humphrey, and Trey Smith —providing a foundation for success. Just as a blindside hit can ruin a play, unexpected property damage can disrupt your business. Property Insurance keeps you protected from every angle.

5. Defense: Umbrella Insurance

Defense wins championships, and Umbrella Insurance is your ultimate safety net. Think of the Eagles’ formidable defensive line—deep, efficient, and always ready to step up. Whether it’s the Bills’ Von Miller leading the charge or Chris Jones dominating for the Chiefs, Umbrella Insurance ensures you’re covered when your standard policies max out. It’s the extra layer of protection that keeps your business thriving, even in the toughest matchups.

6. Special Teams: Professional Liability Insurance

Special teams often make or break the game, and Professional Liability Insurance is no different. Just as the Chiefs excel in tight playoff situations with all-around balance, Professional Liability ensures your business is prepared for claims of errors or omissions. It steps up like a clutch field goal, ensuring your business stays in play no matter the circumstances.

7. Coach: Risk Management Services

No great team goes without a brilliant coach, and Risk Management Services is the strategist guiding your business. Like Andy Reid crafting plays for the Chiefs, risk management ensures you’re prepared for every challenge. From training your team to minimizing exposures, it’s the behind-the-scenes genius that sets your business up for victory.

8. MVP: Your Entire Insurance Program

When all the players come together, your insurance program becomes the MVP. Like a Super Bowl champion quarterback, it’s there to lead your business to victory by protecting what matters most. With the right coverage working in harmony, you’re set for long-term success and resilience.

Final Thoughts

The Super Bowl crowns the best team in football, but in the insurance world, the ultimate goal is to create a winning team of coverage that protects your business. As you cheer on the NFL’s top players, remember: having the right policies in place is just as important as having the right players on the field.

We may not have NFL stars on our roster, but we’re proud to be a 5-star team according to our clients. Let us join your business’s lineup and tackle your insurance and risk management needs.

Click here to get started!

Here’s to a championship year for your business and peace of mind all season long!

Surety Bonding and Your Construction Company

Tue, 19 Aug 2025 00:43:33 GMT

For many construction industry professionals, surety bonding presents a challenge. We receive phone calls on a daily basis from clients and prospects alike, many of which have been asked to provide a bond but don’t know where to begin. Although most have experience with license bonds (required to maintain an active license), there is much confusion surrounding surety products. Thus, by writing this article, we hope to provide clarification surrounding the topic. We believe it is extremely important for contractors to understand the basics of surety bonding, and where to turn when help is needed.

First and foremost, it is important to understand the structure of a surety bond, which is a contract among at least three parties, as defined below:

1. The principal – this is the primary party of the contract (in this case the contractor) who will be performing a contractual obligation.

2. The obligee – this is the party who is the recipient of the obligation, and

3. The surety – who ensures that the principal’s obligations will be performed.

If you are a construction professional, there are two categories of bonds that you may come across. The first is a commercial bond (guarantee per the terms of the bond form), such as license/permit and union bonds. As many of you are aware, contractor state license boards across the country require a bond be filed in order to keep an active license. The bond ensures that a construction professional is qualified to do business and will abide by whatever state laws, statutes, ordinances or regulations are required. Further, in states such as California, license bonds are rated primarily on the credit history of the principal. Many question why, but the answer is simple: if the surety pays a claim made against the principal, the principal is required to pay the surety back (think of the bond as collateral). There is no better measure to assess the probability of payback than credit, thus the reason for heavy credit underwriting. If the company entity is a corporation, partnership, or LLC, the owner(s) must personally indemnify the surety, thus taking full responsibility to return monies if a payout is granted.

The second category is a contract surety bond (guarantee a specific contract). These deal with the performance at some or all stages of a construction project. Any federal government construction project that exceeds $100,000 is required to have a performance bond. Such requirements differ between state and local municipalities; in my experience, there are local cities that require contract bonds on projects as low as $20,000.

There are several different types of contract bonds that you should familiarize yourself with prior to entering into a contract. They include:

1. Bid Bonds – A bid bond is due at the time a bid is submitted and provides financial assurance that the bid has been submitted in good faith. In addition, the bid bond ensures that the contractor intends to enter into the contract at the bid price and provide the required performance and payment bonds if awarded the contract. Although the surety may only provide a bid bond at 10% of the amount bid, they underwrite on the total value of the contract, since future performance and payment bonds will be issued if the job is awarded. If the contractor does not proceed at the bid amount, the guarantor (surety) will pay the obligee the difference between the contractor’s bid and the next lowest bidder. Once paid, the surety will recover the payment amount from the contract.

Similar to license bonds, a bid bond is underwritten based upon the principal’s (and owner(s) if a corporation, partnership or LLC) credit, since payments against the bond are recovered. Furthermore, underwriting becomes more complex as contract values (or bid contract values) increase. In many cases, surety companies offer “express”, and “easy” underwriting procedures for contract values equal to or under $300,000. Most max out around $200,000, and some as low as $100,000. Once such levels are met, additional information is needed for bond approval. Such documents include personal and business financial statements (some CPA prepared), complete long length applications, verification of cash on hand, credit line/investment account information, work is progress reports, references, resumes, and even set aside statements / additional collateral. Most sureties do not charge for a bid bond, but it is becoming more frequent that they do.

2. Performance Bonds – Once a project is awarded (in many cases to the low bidder), a performance bond is issued. These bonds protect the owner (obligee) from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions. By issuing a bid bond, a surety is generally guaranteeing that the principal (contractor) can secure a performance bond, as long as the bid amount is close in value as initially underwritten. At this stage of the process, a premium is due and may range from .5% (higher valued contracts) to 4% (smaller contracts). In order to issue the performance bond, along with the payment bond (described below), the surety will ask for bid results and a copy of the final contract.

3. Payment Bonds – This bond comes together with the performance bond, and in some cases is referred to as a labor and material bond. The payment bond guarantees that the contractor will pay certain subcontractors, laborers, and material suppliers associated with the project. The premium for such bonds is included in the cost of the performance bond; there is not a separate price associated with payment bonds.

4. Maintenance Bonds – Maintenance bonds are not as commonly required but normally guarantee against defective workmanship or materials for a specified period.

5. Subdivision Bonds – A subdivision bond guarantees that a developer, builder and/or individual landowner will complete improvements made to a subdivision property. This bond, required by cities, counties or states, usually guarantees that improvements will be made at the expense of the developer and principal of the bond. Such improvements include streets, sidewalks, curbs, gutters, sewers and drainage systems.

Although you may come across other types of bonds, those explained above are most prevalent within the construction industry. As economic conditions continue to change, I have witnessed many construction companies shift into bidding new types of projects. For these companies, and many others, surety bonding will impact growth and overall success. It is important that you look into bonding before you decide to bid projects, as you may spend valuable time and resources before knowing your bonding capacity.

License bonds are, in most cases, a quick and easy underwriting process. Within a few minutes, we are able to offer multiple options, with various years and payment plans. You may even find it convenient to price your license bond here. If the premium seems out-of-line, give us a call, as we are happy to seek additional options.

Contract bonds, on the other hand, can be more complicated. Call us in advance, before you bid projects. By doing so, we will determine what contract values are realistic targets for your company, and will customize a bonding program to meet your needs. Depending upon your credit, experience, and levels of assets your bonding capacity could be much different than anticipated.

When Policy Ignores Reality: The Real Cost of Tariffs for Small Product-Based Businesses

Tue, 19 Aug 2025 00:42:25 GMT

From Mike’s Desk

Every day, I hear real stories from small business owners doing their best to stay resilient in a challenging and unpredictable world. This series brings those stories forward, highlights their challenges, and offers a perspective that often gets overlooked. Today, I want to talk about something I heard on my morning commute that stuck with me. It revealed how disconnected some policy conversations can be from the day-to-day reality of running a small business.

On my way to work this morning, I listened to a popular business channel on Sirius XM. The topic was tariffs and how they are affecting American businesses. The guest was a government official, and his response to a very real and pressing issue caught me off guard.

The host raised concerns from small business owners relying on imported products. One example was a business facing a tariff increase from 17 percent to 27 percent . The owner worried this could lead to layoffs or even closing their doors.

The official responded by saying not to panic. He suggested finding new suppliers in other countries and simply raising prices because consumers would understand.

As someone who works with small and midsize businesses daily, especially those in manufacturing and e-commerce, I can tell you that thinking misses the mark. These are not easy fixes. For many business owners, they are not even options.

Why a 10% Tariff Hike Hits Harder Than It Sounds

A 10 percent tariff increase might not seem like a deal breaker. However, 10 percent is more than a statistic for a small business importing raw materials or finished goods. It can be the difference between staying in business and shutting down.

Many small manufacturers and e-commerce sellers already operate with tight margins. They are juggling rising costs, including shipping, labor, insurance, marketing, and the technology they need to stay competitive. When a new 10 percent cost is added to their core products, the impact is immediate and real. It is not always possible to absorb that cost, and raising prices is not always an option.

Switching to suppliers in other countries is not a quick fix either. It is not just about finding a cheaper alternative. It requires managing new relationships, ensuring product quality, understanding import regulations, and adjusting timelines. This shift is often unrealistic for businesses with lean teams and limited resources.

Pricing can make or break a business in online selling, especially on platforms like Amazon, Shopify, or Etsy. Raise your prices too much, and your products will become less visible. You lose placement in search results, more carts get abandoned, and you start losing to competitors. The effects go beyond just this month’s sales.

These are not abstract concerns. They are the daily decisions and challenges that small business owners face.

A Real-World Example from a Client Conversation

I spoke with a client who runs a small but fast-growing e-commerce brand not long ago. They import specialized products manufactured overseas. Their business was doing well. They had loyal customers, a solid fulfillment process, and a steady growth plan.

Then, tariffs increased.

Suddenly, their landed cost per unit jumped by several dollars. It doesn’t sound like much at first glance, but those few dollars matter greatly when moving thousands of units a month and working within a carefully balanced margin. Their options? Raise prices and risk losing their competitive edge, or eat the cost and risk operating at a loss.

Neither option was sustainable. They tried to negotiate with their supplier, adjusted their marketing budget, and even considered outsourcing customer service to cut expenses. But every move came with trade-offs. Growth slowed. Hiring plans were put on hold. And the stress of trying to keep everything afloat grew heavier.

This is what a 10 percent increase looks like. It’s not just a number on a spreadsheet. It’s a turning point in someone’s business journey.

Risk, Insurance, and Compliance: The Overlooked Side of Tariff Impact

When tariffs increase, the impact extends far beyond product pricing and sourcing. It can trigger a chain reaction that affects risk exposure, insurance coverage, and compliance in ways many small business owners do not anticipate.

Rising costs often lead to quick decisions for manufacturers and e-commerce sellers. You may shift suppliers, adjust shipping routes, or reduce spending in quality control and warehousing areas. These changes can increase risk. Whether you are working with unfamiliar partners, importing from new regions, or renegotiating terms, every move carries potential consequences.

Increased financial pressure may also push businesses to take on more risk without reviewing or updating their insurance plans. That can lead to gaps in coverage, particularly in areas like general liability, product liability, or cyber protection. Fast growth without proper planning can also leave online sellers vulnerable to claims or regulatory fines.

Here are a few steps that can help you stay protected:

Review your insurance policies often. Confirm that your coverage reflects current operations, including new suppliers, changes in product origin, or higher sales volumes (remember, tariffs may increase your top-line revenue).
Check your contracts and compliance processes. When working with new vendors or shifting logistics, ensure your agreements offer clear protection and align with regulations.
Create a plan for supply chain risk. Identify alternative vendors, outline backup sourcing options, and ensure you have a strategy to maintain product quality during transitions.
Work with advisors who understand your space. The right insurance and compliance partners will help you evaluate your exposure and prepare for the unexpected.

Tariffs are just one pressure point in a larger web of business risk. The way you respond can make the difference between resilience and vulnerability.

Final Thoughts: Staying Resilient in a Shifting Landscape

If you are a small business owner in manufacturing or e-commerce, you already know how fast the ground can shift beneath your feet. Tariff hikes, policy changes, and supply chain disruptions are not just headlines. They are real challenges affecting your bottom line and peace of mind.

I hope this message reinforces that you are not alone in these pressures. You deserve a seat at the table when decisions are made, and you deserve support from people who understand the realities of your business.

At Fusco Orsini and Associates and 4C Advising, we help you stay protected, compliant, and positioned to grow. Whether that means reviewing your insurance, strengthening your risk strategy, or just discussing what is next, we are ready to walk that path with you.

Let’s keep pushing forward together. Contact us to review your insurance and risk strategy!

When Trade Wars Hit Home: The Real Cost to Insurers and Insureds

Tue, 19 Aug 2025 00:41:49 GMT

Tariffs are often discussed in the context of politics and global trade, but their impact reaches far beyond headlines and policy debates. One of the most significant and overlooked consequences is their effect on insurance rates and the long-term health of the insurance industry.

We witnessed a similar scenario in the aftermath of COVID-19. Supply chain disruptions, labor shortages, and inflationary pressures caused claims volatility and widespread premium increases. Today, a new challenge is emerging. As tariffs are imposed on imported auto parts, construction materials, and consumer goods, insurers face mounting repair and replacement costs. This expense surge places upward pressure on premiums and introduces uncertainty that threatens the affordability and accessibility of coverage for individuals and businesses alike.

For policyholders, this is more than a short-term rate adjustment. It shows how quickly economic policy can affect insurance costs and availability. Understanding the broader context can help you make informed decisions, protect your assets, and stay ahead of rising risks in an unpredictable market.

The Tariff Effect: Breaking Down the Impact by Insurance Type

Auto Insurance: Rising Repair Costs Drive Premium Hikes

Auto insurance is one of the first lines of business to feel the pressure of tariffs. Many vehicles in the U.S. market are either imported or assembled with many foreign-made components. When tariffs increase the price of these parts, insurers see a direct rise in the cost of repairs and replacements. This leads to higher claims severity, which insurers offset through premium increases. For policyholders, primarily commercial auto fleets, this can mean substantial annual cost increases that strain operating budgets.

Commercial Insurance: Supply Chain Strain and Cost Volatility

Tariffs disrupt global supply chains and create cost volatility that particularly hits commercial clients. Construction, manufacturing, and logistics businesses face increased material costs, project delays, and operational risks due to higher prices on imported goods. These disruptions elevate the frequency and severity of insurance claims, from property and inland marine to general liability and business interruption. As insurers absorb more risk and unpredictability, underwriters tighten terms and pricing adjustments to reflect the elevated exposure. For business owners, this can result in premium hikes, reduced coverage limits, or difficulty finding carriers willing to write certain risk classes.

Homeowners Insurance: Construction Inflation Drives Rate Pressure

Tariffs on steel, aluminum, and lumber have made building and repairing homes more expensive. These costs increase the amount insurers pay on claims, particularly after storms, fires, or other large-loss events. This can lead to withdrawing insurance capacity or significant premium hikes in disaster-prone areas. The situation mirrors post-COVID trends where material scarcity and price hikes caused widespread market instability.

Health Insurance: Indirect Inflation Adds Up

Though not immediately impacted, health insurance also feels the downstream effects of tariffs. Many essential items in the healthcare supply chain—like imaging equipment, surgical tools, and prescription drugs—are imported. Tariffs on these items raise costs across the healthcare ecosystem. Insurers, in turn, adjust premiums to match these increased care costs. Over time, this contributes to the broader affordability challenge in the health insurance market.

What This Means for You: Staying Ahead in a Shifting Market

As a policyholder—whether you’re a business owner managing risk across multiple locations or a homeowner safeguarding your most significant investment—these changes may already affect your bottom line. And if they haven’t yet, they likely will in the months ahead.

Here’s what you can do to stay prepared:

1. Be Proactive About Your Policy Reviews

Now is the time to examine your coverage closely. Rising labor, materials, and equipment costs may make replacement values outdated. Underinsurance can become a real problem when claims are filed. Ensure your coverage reflects today’s rebuilding or replacement costs, not last year’s estimates.

2. Expect Rate Fluctuations and Plan Accordingly

Premiums will likely continue trending upward, especially in commercial property, auto, and specific homeowners policies. Build flexibility into your budget and talk with your broker about upcoming renewals. We can help you anticipate rate changes and explore ways to offset them without sacrificing protection.

3. Take Advantage of Risk Management Services

Mitigating risk is more important than ever. Whether improving your vehicle safety programs, reviewing contracts, or tightening site security, even small operational changes can reduce your exposure—and your premiums. Our team can work with you on customized strategies for your industry and risk profile.

4. Bundle and Consolidate When It Makes Sense

In many cases, bundling policies or consolidating coverage with a single carrier can yield savings and streamline coverage. This isn’t a one-size-fits-all strategy but worth exploring during your next policy review.

5. Stay Informed—and Stay Connected

Trade wars are a rapidly evolving issue. Policy shifts, international trade decisions, and economic trends influence premiums and coverage availability. As your advisor, we stay ahead of these developments, so you don’t have to. If anything changes, you’ll hear from us first—with options.

From Mike’s Desk: A Closing Thought

The insurance industry is no stranger to change, but today’s environment demands more than just reaction—it calls for foresight. Tariffs may seem like distant policy moves, but they have very real consequences for insurers and insureds. The ripple effects, which include rising premiums and shifting market capacity, are already in motion.

Our goal is to ensure that you’re aware of these changes and equipped to navigate them confidently. That’s what we’re here for—not just to place policies but to serve as a long-term partner in risk strategy and financial stability.

If you have questions about how these economic shifts could impact your coverage or want to explore options to protect your budget, don’t hesitate to reach out. Let’s have a conversation before the next renewal arrives at your doorstep.

A Thanksgiving Table of Business Success: Lessons in Risk, Compliance, and Teamwork

Tue, 19 Aug 2025 00:41:16 GMT

Thanksgiving isn’t just about the food—it’s about the whole experience: a perfectly roasted turkey, classic sides, a few family debates, and football! Running a business is like hosting Thanksgiving —it takes planning, teamwork, and a great playbook . Whether it’s Fusco Orsini & Associates handling your insurance or 4C Advising managing risk, compliance, HR, and employee care, you’ve got a championship team helping you score big.

Turkey = Liability Insurance

The turkey is the MVP of the table, just like liability insurance is for any business. Fusco Orsini & Associates ensures your liability coverage is well-prepped, ensuring you’re ready for whatever risks get ‘tossed your way.’ Liability insurance isn’t as flashy as a touchdown pass, but it’s the solid foundation your business needs to win.

There are several types of liability insurance that businesses should consider, depending on their needs and risks:

General Liability Insurance (GL): Covers third-party claims for bodily injury, property damage, and personal or advertising injury. Almost every business needs to protect against common risks.
Professional Liability Insurance (Errors & Omissions): Protects service providers, consultants, and professionals from negligence claims or failure to deliver promised results.
Product Liability Insurance: Crucial for businesses that manufacture, distribute, or sell products, covering claims related to defects that cause injury or damage.
Employment Practices Liability Insurance (EPLI): Shields businesses from claims related to employment issues such as wrongful termination, discrimination, harassment, and more.
Directors and Officers Liability Insurance (D&O): Protects executives and board members from personal liability for decisions made in their roles.
Cyber Liability Insurance: Covers financial losses related to data breaches, cyberattacks, and other technology-related risks.
Liquor Liability Insurance: A must-have for businesses serving or selling alcohol, covering risks associated with intoxicated patrons.
Umbrella and Excess Liability Insurance: Provides an additional layer of protection by covering claims that exceed the limits of your primary liability policies.

Regardless of your business type, liability insurance acts as the centerpiece of your protection strategy. Just like a turkey at Thanksgiving, it’s something you can’t afford to leave off the table.

Stuffing = Employee Care and Benefits

Stuffing is the ultimate side—hearty and essential, just like employee care and benefits. Fusco Orsini & Associates designs benefits packages that satisfy your employees, while 4C Advising ensures your team feels supported with strategic employee care initiatives. Think of them as your team captains, keeping morale high and the roster strong.

A well-rounded employee benefits package includes various options to meet your team’s diverse needs. Here are some popular products and services available to employers:

Health Insurance Plans: Comprehensive medical insurance is the cornerstone of any benefits program. Options like HMO, PPO, and HDHP plans ensure your employees have access to care when needed.
Dental and Vision Insurance: These supplemental plans cover essential dental care and routine vision needs, making your benefits package more attractive.
Group Life Insurance: A group life insurance policy provides financial security for employees’ families, offering peace of mind at an affordable cost.
Short-Term and Long-Term Disability Insurance: Protects employees’ income in the event of illness or injury, ensuring they feel supported during challenging times.
Employee Assistance Programs (EAPs): These programs offer mental health resources, counseling, and work-life balance support, helping employees navigate personal and professional challenges.
Wellness Programs: From gym memberships and wellness stipends to mental health days, wellness programs encourage healthier lifestyles and improve employee satisfaction.
401(k) Retirement Plans: Help employees plan for their future with retirement savings options that may include employer-matching contributions.
Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs): These accounts enable employees to set aside pre-tax dollars for healthcare or dependent care expenses, giving them more control over their finances.
Voluntary Benefits: Products like accident insurance, critical illness insurance, and pet insurance provide additional protection and flexibility for employees.
Paid Time Off (PTO) and Leave Policies: Generous vacation, sick leave, and parental leave policies ensure employees can recharge and care for their personal lives.

With Fusco Orsini & Associates crafting comprehensive benefits packages and 4C Advising supporting employee care initiatives, your business can build a culture of care and appreciation. Like stuffing at Thanksgiving, these offerings improve everything and leave your team feeling fulfilled and valued.

Cranberry Sauce = Compliance

Compliance is the underdog, like that reliable field goal kicker who clinches the game when it matters most. 4C Advising ensures your compliance strategies—workplace safety, new laws, or wage and hour policies—keep you in the game. Skipping compliance is like skipping cranberry sauce; it might seem optional, but you’ll regret it later.

At 4C Advising , we offer a comprehensive suite of compliance services to help your business navigate the complex regulatory landscape:

Employee Handbook Creation: We create comprehensive employee handbooks that clearly outline company policies, procedures, and expectations, fostering transparency and consistency.
Mock OSHA Inspections: To prepare you for official inspections, we conduct mock OSHA inspections, identifying potential issues and providing corrective action plans.
Abuse Prevention Plans: We help develop and implement abuse prevention plans, which are increasingly required by insurance companies as a prerequisite for Abuse and Molestation insurance coverage.
Loss Control Audits: Our team performs loss control audits to evaluate and reduce risks that might lead to potential losses, improving your bottom line.
Insurance Premium Audit Support: We offer support during insurance premium audits to ensure that the premiums charged to your business accurately reflect the level of risk and exposure during the policy period.
Certificate of Insurance Tracking Automation: We enhance certificate of insurance tracking through automation, transforming risk management and ensuring compliance with contractual requirements.

By partnering with 4C Advising, you can confidently navigate the complexities of compliance, allowing you to focus on what you do best—running your business.

Green Bean Casserole = Risk Management

Risk management is your offensive line—often overlooked but crucial. 4C Advising helps you build a risk management strategy that keeps the competition (and potential risks) at bay. With their playbook, your business stays protected from fumbles and surprises.

At 4C Advising, we offer a comprehensive suite of risk management services to safeguard your business:

Automated Certificate of Insurance (COI) Tracking: We streamline collecting and verifying third-party COIs, ensuring continuous compliance and reducing manual errors.
Mock OSHA Inspections: Our team conducts simulated OSHA inspections to identify potential safety hazards and compliance issues, allowing you to address them proactively.
Loss Control Audits: We perform thorough evaluations of your operations to identify risks that could lead to losses, providing actionable recommendations to mitigate these risks.
Cybersecurity Risk Assessments: In today’s digital age, protecting your business from cyber threats is paramount. We assess your current cybersecurity measures and implement strategies to strengthen your defenses.
Return-to-Work Programs: We assist in developing programs that facilitate employees’ return to work after injury or illness, reducing downtime and workers’ compensation costs.
Insurance Premium Audit Support: Navigating insurance premium audits can be complex. We provide support to ensure accurate classifications and exposures, helping you avoid unexpected premium increases.
Abuse Prevention Plans: We help develop and implement comprehensive abuse prevention plans, which insurance companies increasingly require as a prerequisite for Abuse and Molestation insurance coverage.

Risk management services such as these will help you proactively manage risks, ensuring your business remains resilient and prepared for any challenges.

Pumpkin Pie = HR

HR is the pumpkin pie of your organization—a sweet way to finish the day. 4C Advising supports your HR needs with everything from onboarding to conflict resolution, ensuring your employees leave every interaction feeling valued. They’re like the coach who inspires the team to go the extra mile.

With our soon-to-launch in-house HR services , powered by a team currently undergoing SHRM-CP and HRCI PHR certification training , 4C Advising is preparing to deliver expert HR guidance tailored to your business. Here’s a taste of what we offer:

Onboarding and Offboarding Support: Smooth onboarding processes ensure your new hires feel welcomed and equipped from day one. We handle offboarding professionally for employees transitioning out of your company, maintaining a positive employer brand.
Performance Management Systems: We assist in developing performance review processes that encourage growth and accountability, helping managers and employees stay aligned on goals and expectations.
Conflict Resolution and Mediation: Workplace conflicts happen, but how they’re handled can make all the difference. Our team provides conflict-resolution strategies that foster healthy communication and teamwork.
Policy Creation and Compliance Oversight: We help draft and update HR policies to align with evolving legal requirements and best practices, minimizing risk and promoting consistency.
Employee Engagement Programs: Engage and retain your talent with initiatives prioritizing employee satisfaction, from wellness programs to recognition systems.
Training and Development: We offer customized training programs to upskill your workforce, covering topics like leadership development, diversity and inclusion, and workplace safety.
HR Audits and Gap Analysis: A thorough review of your HR practices helps identify areas for improvement, ensuring your processes align with your goals and compliance standards.

HR becomes more than just a function—it’s the key to creating a thriving workplace where employees feel supported and inspired. Like pumpkin pie at Thanksgiving, it’s the perfect way to leave a lasting, positive impression.

Mashed Potatoes = Team Cohesion and Culture

Mashed potatoes are the ultimate comfort food—smooth, versatile, and loved by everyone. In the workplace, they represent team cohesion and company culture . They bring people together, balance out the meal (or business operations), and make everything else on the plate taste better.

At 4C Advising, we understand the importance of fostering a cohesive team and building a company culture that supports growth and collaboration. Here’s how we can help you create an environment where your employees thrive:

Employee Engagement Initiatives
Engaged employees are productive employees. We assist with strategies to enhance engagement, such as recognition programs, surveys, and events that celebrate achievements.
Conflict Resolution Support
Disagreements are inevitable, but we provide tools and mediation services to resolve conflicts constructively, preserving team harmony.
Leadership Development Training
Strong leaders build strong teams. We offer training to help your managers develop communication, conflict management, and team-building skills.
Diversity, Equity, and Inclusion (DEI) Programs
A diverse and inclusive workplace fosters innovation and satisfaction. We help you implement DEI initiatives that reflect your company’s values and goals.
Team-Building Workshops
Fun and productive team-building activities enhance collaboration and trust. We can design workshops tailored to your company’s needs.
Employee Recognition Programs
Celebrating employee milestones and contributions reinforces a positive culture. We help you create recognition systems that are meaningful and effective.
Onboarding Programs that Inspire
First impressions matter. We craft onboarding experiences that set the tone for a welcoming and supportive workplace, ensuring new hires feel connected from day one.
Work-Life Balance Initiatives
Supporting employees in balancing work and personal life leads to happier, more loyal teams. Flexible schedules, remote work options, and mental health days are just a few examples of how you can show you care.
Communication Tools and Strategies
Clear, open communication is the cornerstone of a strong team. We recommend tools and best practices for keeping everyone on the same page, no matter the size of your workforce.

Just like mashed potatoes bring together the flavors of Thanksgiving dinner, a strong company culture ties together all aspects of your business. We help you build a workplace where everyone feels they belong and can contribute to the team’s success.

Football = Team Strategy and Success

What’s Thanksgiving without football? Business success is a lot like a great game plan. With Fusco Orsini & Associates protecting your business and 4C Advising coaching your compliance, HR, risk management, and employee care, you’re set to make every drive count. Whether running a blitz against workplace risks or throwing a Hail Mary with new growth strategies, you’ve got the support to score

Let’s Game Plan Together!

This Thanksgiving, as you enjoy the turkey, tackle your sides, and cheer for touchdowns, remember to give thanks for the structures that keep your business running smoothly. Like a great football team, we’re here to support you every step of the way. And remember—just like Thanksgiving leftovers, a vital insurance and risk management strategy keeps delivering long after the main event.

Complete the form below to connect with one of our 5-star team members. We promise; we won’t come up short!

Support for Those Affected by the Los Angeles Fires: Free Services from TELUS Health

Tue, 19 Aug 2025 00:40:42 GMT

Our hearts go out to everyone impacted by the devastating Los Angeles fires. In times like these, accessing emotional support and resources can make a world of difference.

TELUS Health, the EAP partner of Fusco Orsini & Associates and 4C Advising, offers free services to anyone affected by the LA fires . This includes:

Counseling and emotional support: Speak with trained professionals who can help you navigate this challenging time.
Resource connection: Get assistance finding local resources, shelters, and recovery services.

These services are available to help you and your loved ones recover, process, and rebuild.

To access this support, contact TELUS Health directly at 1-877-757-7587. TELUS Health created this emergency community line, open to anyone in need, regardless of whether your company subscribes to its EAP.

At Fusco Orsini & Associates, we support you through recovery. If you have questions about your coverage or resources available, don’t hesitate to contact our team.

Please stay safe and take care of yourself.

The Benefits of Employee Benefits

Tue, 19 Aug 2025 00:40:05 GMT

Benefits packages are a cost-effective way for you to bring value to your employees and boost productivity and retention.

Unemployment is at an all-time low and there are more jobs available than candidates to fill them. You’re under pressure to hire quickly, even though you should give yourself adequate lead time to properly review candidates. To make matters more difficult, just when you find the right person, they may decide to take a position with a company that has a more competitive benefits package.

If you’re a small business owner, you may be feeling even more pressure. Many small- and medium-sized businesses don’t have the team or resources to skillfully hire.

We can relate. We, too, started as a small locally-owned team. Over the years, we grew our company and our expertise in employee benefits so that we could help other HR teams feel confident about their employee recruiting and onboarding process.

That brings us to benefits.

Sure, ping pong tables and bean bag chairs look cool in an office, but are they really benefits? Here’s a quick overview of what keeps employees around: competitive benefits packages.

Benefits packages are a cost-effective way for you to bring value to your employees and boost productivity and retention. Here are a few things to consider when offering employee benefits as part of your compensation package:

Create customizable benefits packages: If you tailor a package to meet an employee’s needs, it’ll carry more weight than just monetary value. As such, a bigger salary but weaker benefits package offered by another company won’t be as attractive.

Include health and wellness: If you include health insurance and dental and vision coverage, you will have employees who are equipped to take a proactive role in managing their health. Plus, a healthy employee means a reduction in absenteeism due to illness. Healthy employees are more likely to be productive employees, too.

Additional benefits to you as the employer:

Benefits will cost you some money upfront but are likely to save you long-term.

Group rates and lower payroll taxes: The value you present to employees with benefits, especially health insurance plans, can be monetarily equal to a raise in salary for them while costing you less due to group rates and lower payroll taxes.

Salary savings: Offering tailored, valuable benefits packages can help lower top employees’ expectations for salary. Many employees are willing to accept good benefits in lieu of a slightly higher salary.

In summary, benefits packages are a cost-effective way for you to bring value to your current and prospective employees and boost productivity and retention.

Our team is ready to help you develop a strategic benefits package that meets your budget and presents attractive options to your employees. We can also give you educational materials that you can share with your employees as you launch your new or improved benefits package.

Contact us at 858-384-1506 or schedule a meeting with our employee benefits specialist, Ray. Ray has 18 years of employee benefits insurance consulting and account management experience – so he’s your guy!

Construction Budgets & Insurance: A Contractor’s Guide to Getting Covered

Tue, 19 Aug 2025 00:39:16 GMT

Budgets are crucial in ensuring a project stays on track financially. Yet, despite their deep industry experience, many contractors may not be entirely familiar with how construction budgets work, especially when securing insurance policies like builder’s risk insurance . Whether you’re a seasoned professional or new to the industry, understanding construction budgets can help streamline insurance underwriting and set your projects up for success.

What Is a Construction Budget?

A construction budget is a detailed financial plan outlining the estimated costs of a building project. It includes everything from labor and materials to permits and contingency funds. Lenders, investors, and insurers often require a well-prepared budget before approving financing or underwriting insurance policies.

Why Are Construction Budgets Important?

Insurance Underwriting – Insurers use construction budgets to assess risk and determine coverage amounts for project-specific policies, such as builder’s risk insurance.
Project Planning – A well-structured budget helps prevent cost overruns and ensures financial feasibility.
Client and Lender Confidence – Demonstrating a thorough budget reassures stakeholders that the project is well-planned and managed.
Compliance & Legal Requirements – Many jurisdictions require budgets as part of permitting and regulatory processes.

Key Components of a Construction Budget

A comprehensive construction budget typically includes the following elements:

1. Hard Costs

These are the tangible, physical costs associated with the construction project.

Materials (lumber, concrete, steel, etc.)
Labor (wages, benefits, subcontractor fees)
Equipment (rental or purchase of machinery)
Site Work (excavation, grading, foundation, framing)

2. Soft Costs

These indirect costs support the project but do not involve physical construction.

Architectural and Engineering Fees
Permit and Inspection Fees
Legal and Administrative Costs
Insurance (Builder’s Risk, General Liability, Workers’ Compensation)

3. Contingency Fund

Unforeseen circumstances can arise, from material price increases to unexpected site conditions. A contingency fund, typically 5-10% of the total budget, provides a financial buffer.

4. Financing Costs

Loan origination fees
Interest payments
Bonding costs (if applicable)

5. Overhead & Profit

To ensure financial sustainability, contractors must factor in their overhead expenses (office rent, utilities, administrative costs) and profit margins .

Example of a Simple Construction Budget

Below is an example of a basic construction budget for a residential project:

How This Helps with Insurance Coverage

Underwriters use construction budgets to determine the total insured value (TIV) when applying for builder’s risk insurance. The TIV is based on the project’s total cost, excluding land value. Submitting a clear and detailed budget helps insurers accurately assess coverage needs, minimizing delays and ensuring adequate protection.

Final Thoughts

A solid grasp of construction budgets is essential for securing insurance, maintaining financial control, and ensuring project success. If you need assistance with builder’s risk insurance or project-specific policies, our team is here to help. Reach out today to learn how we can support your construction projects with tailored coverage solutions!

The cost of employment practices liability insurance (EPLI) in California!

Tue, 19 Aug 2025 00:38:46 GMT

California business owners worry about protecting themselves and their businesses from employee lawsuits and employment liability. Under the large umbrella of management liability insurance products falls employment practices liability insurance, commonly referred to as EPLI. In today’s video, Mike Fusco speaks about the costs of EPLI in California. Mike also talks about the EPLI marketplace and the factors driving EPLI premium increases.

EMPLOYMENT PRACTICE TRENDS IN CALIFORNIA

It’s essential to understand the landscape of employment practice trends in California before speaking about EPLI costs. First, California is a litigious state. Employment attorneys are prevalent, and labor laws favor the employee versus the employer. Also, consider workforce reductions and layoffs as part of the COVID19 pandemic, which has added liability for insurance carriers. These trends and several others have caused a hardening EPLI market in California, and we expect additional difficulties in the years to come.

THE 2021 MARKETPLACE FOR EMPLOYMENT PRACTICES INSURANCE IN CALIFORNIA

2020 was a challenging year for EPLI carriers and policyholders, but 2021 has proven worse. We are realizing premium increases of 20%-25% for most EPLI clients and expect a further uptick to come. It’s also crucial to know while policy costs are increasing, so are self-insured retentions. In years past, we were successful in securing SIRs in the $1,000-$5,000 range. Now, those retentions start at $10,000, and it’s not uncommon to find retentions of $75,000 and above! And the hardening market doesn’t stop with higher premiums and retention. We also see lower sub-limits and more exclusions than ever before.

HOW TO SECURE PROPER PROTECTION

If you’re concerned with liability arising from wrongful termination, sexual harassment, and other employee lawsuits, it may be time to look at employment practices liability insurance. However, you must hire an agency that knows the EPLI market, especially in California. Many agents or brokers will not advise you correctly with all of the forms and exclusions to consider.

HOW TO WORK WITH FOA

The associates at Fusco Orsini have many years of experience placing EPLI in California for businesses of all sizes. If you are a client of FOA and have an interest in EPLI, don’t hesitate to get in touch with your broker or account manager for assistance. If FOA does not service your insurance and risk needs currently, please complete the form below. We will ensure that an associate reaches out quickly to help. Thank you for visiting us!

General liability insurance costs for general contractors, Part 2

Tue, 19 Aug 2025 00:37:30 GMT

In yesterday’s video, I briefly introduced the cost of general liability insurance for general contractors. I gave some ideas of pricing for small to medium size general contractors and provided some information about the factors that determine the price of a general liability premium. In today’s video, I want to expand a little more and talk about items that will factor into your general liability policy price if you’re a general contractor. The first is the general liability marketplace, supply, and demand. The second is some forms to look at on your policy or keep in mind, deductibles also. And the third is the minimum premium that could come into play on your policy.

THE GENERAL LIABILITY INSURANCE MARKETPLACE

Like all other markets, the insurance marketplace changes pricing based on supply and demand and based on the competition from carriers. So when more carriers are available and more carriers are offering a specific product, in this case, general contractors’ general liability, the pricing will become softer, and it will be more of a buyer’s market. However, if carriers suffer loss development or poor loss history and leave the marketplace, we tend to see prices go up and pricing become harder.

UNDERSTANDING INSURANCE POLICY FORMS, DEDUCTIBLES, AND LIMITS

The second is policy forms. I spoke about some conditions yesterday, but I was hoping you could look at your policy and understand these forms. The subcontractor warranty endorsement is significant for general contractors to ensure that your carrier covers you if a subcontractor causes a loss on your project. Some carriers have more favorable subcontractor warranties than others. Sometimes when pricing is less expensive, that means that there’s a more restrictive endorsement on your policy, and you need to pay attention to that. Also, the deductible in the policy, is it a per claim or per occurrence deductible? And what is the deductible amount? Some general contractors may decide to have a higher deductible because they can absorb more of the risk, and they could pay up to a certain amount if a claim were to happen. Others would rather have a lower deductible and not take on any out-of-pocket risk. Therefore, that will dictate or change the price of the policy and the limits of your coverage.

In most cases, it doesn’t cost much to increase the aggregate limit from, let’s say, one million to two million. Still, it could cost an additional premium to increase the occurrence limit or the products and completed operations limit. So these are items that you should keep in mind.

HOW DO MINIMUM PREMIUMS AFFECT YOUR INSURANCE PRICING?

The third thing I want to speak about that determines the cost of general liability insurance for general contractors is minimum premiums. Specific programs or certain levels of coverage have minimum premiums. So, for example, if you’re a home builder and you’re building multi-unit homes, or you’re building townhomes or condos, most times, insurance policies will not go below a certain amount of premium. Now there are different levels of minimum premiums. Some programs have a $2,500 minimum premium, some have a $5,000, $7,500, 10,000. It could go all the way up to $50,000 or $75,000 minimum premiums. The minimum premium will determine the price of your policy regardless of the rating factors such as gross sales, payroll, or subcontractor costs.

RATING BASIS AND HOW TO SECURE A LOWER RATE ON YOUR GENERAL LIABILITY

Finally, before I end this video, keep this in mind. Many people don’t understand that, in many cases, the higher your rating basis, the lower your rate. For example, if your sales are 20 million versus 10 million, your net rate, meaning the rate that you charged for every thousand dollars of gross sales on your policy, goes down. We see this in other insurance products as well, specifically, work comp. The more payroll you have, the less you’re going to pay for every hundred dollars of payroll. The same goes for certain general liability products.

Suppose your insurance carrier priced your policy on gross sales, and you’re in that medium to larger general contractor size. In that case, you’re going to see your net rate for every thousand dollars of gross sales decrease as your gross receipts increase, making you more competitive, and you can job cost and lower that expense for your insurance policy.

IN CONCLUSION

I hope this helps expand a little more on what I spoke about yesterday. Again it isn’t straightforward to price general liability for general contractors without having information about the company. There are a lot of moving parts, and these factors become a big part of it.

To properly underwrite and help our clients, we need to understand the work they’re performing to make sure the forms match the coverage they need, for example, whether we want to rate on gross sales or gross payroll. If subcontractor costs become a factor, subcontractor warranties and all the exclusions I spoke about all determine the price of a general liability policy for a general contractor. Remember, if you have questions, you can fill out the form below. One of our agents will get in touch with you. You can also call me directly at my direct line, (858) 384-1507, and my email is mike@foagency.com. Thank you again for your time, and we hope to see you soon. Take care.

Unlocking Growth: Private Equity Infrastructure Opportunities for SMBs

Tue, 19 Aug 2025 00:37:21 GMT

A New Era of Infrastructure Investment

As the CEO of an insurance agency and advisory firm that works exclusively with small to medium-sized businesses , I am always excited to discover opportunities that can improve our clients’ futures. With a focus on supporting firms in construction, manufacturing, technology, hospitality, health care, and office professions, I believe the future holds great potential for all of these industries—especially after watching a recent interview on infrastructure investment with BlackRock’s CEO, Larry Fink.

Private equity is increasingly critical in reshaping infrastructure development and opening doors for industries across the board—especially in construction, technology, and manufacturing. This shift presents an unprecedented growth opportunity for small and medium-sized businesses (SMBs) operating in these sectors.

As governments struggle to finance large-scale infrastructure projects independently, private equity firms are bridging the gap, bringing capital, expertise, and long-term vision. Understanding the scale and dynamics of this investment trend is crucial for SMBs looking to position themselves for success.

The Rising Role of Private Equity in Infrastructure

In recent years, the infrastructure landscape has undergone a significant transformation. Traditionally financed by public funds, projects are increasingly backed by private capital, with global private equity firms identifying infrastructure as a stable and profitable long-term investment.

Substantial investment is being made in transportation, renewable energy, digital infrastructure, and urban development in the U.S. and other major markets. According to industry reports, private equity firms manage billions of dollars in infrastructure assets, focusing on projects ranging from highways and bridges to data centers and renewable power grids. This influx of private capital isn’t just limited to mega-projects. It trickles down to smaller contractors, suppliers, and service providers vital in executing and supporting these developments.

SMBs at the Forefront—Why They Matter in Infrastructure Expansion

Small to medium-sized businesses are uniquely positioned to benefit from this surge in infrastructure investment. Their agility, specialized expertise, and ability to adapt to project-specific needs make them invaluable partners to larger firms and investors.

Construction:

Specialized subcontracting roles, such as electrical, plumbing, and structural work, are in high demand.
Many SMBs provide advanced materials and innovative building techniques that improve project efficiency and sustainability.

Technology:

The digitization of infrastructure projects, including smart buildings and IoT-enabled systems, requires tech-driven SMBs to provide software, automation, and cybersecurity solutions.
Expanding 5G networks and digital infrastructure creates opportunities for startups offering cutting-edge connectivity solutions.

Manufacturing:

Precision manufacturing, custom machinery, and component production are critical in delivering infrastructure projects on time.
Small manufacturers are often tapped to provide bespoke equipment and tools for specialized construction projects.

Key Opportunities Emerging from Private Investment

1. Construction Subcontracting and Specialized Services

Private equity-backed infrastructure projects require a wide range of subcontractors, from those offering essential services like excavation to firms providing highly specialized capabilities in green construction or modular building systems.

2. Tech-Enabled Infrastructure

The drive for smart infrastructure is creating opportunities for tech-focused SMBs to develop solutions in areas such as:

Smart grid technology
Building automation systems
Predictive maintenance through AI

As infrastructure projects become more complex and interconnected, the need for seamless digital solutions will grow, creating additional market opportunities.

3. Manufacturing Innovation

Manufacturers supplying construction equipment, prefabricated components, and sustainable building materials will benefit from the surge in demand. Additionally, manufacturers integrating automation and robotics into their production processes will have a competitive edge in meeting tight deadlines and ensuring high-quality outputs.

Indirect Benefits for Businesses in Our Network

Beyond the immediate opportunities for construction, technology, and manufacturing firms, the infrastructure boom will also have ripple effects that benefit many other businesses.

General Contractors, Artisan Contractors, and Service/Repair Providers:

These businesses will see increased demand as infrastructure projects require ongoing maintenance, renovations, and specialty services. Subcontracting and repair work will be critical to ensuring long-term project success.

Property Owners:

With new developments and urban expansion, property owners will benefit from increased construction activity and new housing developments.

Restaurants and Main Street Businesses:

Infrastructure upgrades, such as improved roads, bridges, and transit systems, can increase foot traffic and customer volume for restaurants and retail businesses.

Health Care Professionals and Office Professionals:

Better transportation and innovative city developments can enhance accessibility to healthcare facilities and office spaces, benefiting professionals in these industries by expanding their service reach.

Auto Repair Services and Online Sellers:

Enhanced transportation infrastructure will result in smoother supply chains, improved delivery logistics, and better market access, directly benefitting auto repair shops and online sellers relying on efficient distribution networks.

The Role of Insurance in Supporting Infrastructure Growth

As SMBs engage with private equity-funded infrastructure projects, they face various risks affecting their operations and financial stability. Insurance solutions are critical in protecting businesses and ensuring long-term success in this high-growth environment.

Key Insurance Coverage to Consider:

Bonding and Surety Bonds protect project owners and stakeholders by guaranteeing that the contracted work will be completed according to agreed-upon terms. Bonding is crucial for contractors bidding on large infrastructure projects.
General Liability Insurance: Protects businesses from claims of bodily injury, property damage, and legal liabilities during construction and project execution.
OCIP or WRAP Insurance: Also known as Owner-Controlled Insurance Programs, this coverage consolidates general liability, workers’ compensation, and other key policies into one comprehensive plan for all contractors on a project. It’s ideal for large-scale infrastructure developments to streamline risk management and ensure comprehensive protection.
Professional Liability Insurance: This is especially important for technology firms offering software and automation services to infrastructure projects.
Builder’s Risk Insurance covers damage or loss to buildings under construction, including protection against fire, theft, and weather damage, ensuring projects stay on track.
Cyber Liability Insurance: As smart infrastructure relies heavily on digital systems, technology firms should consider policies to protect against data breaches and cyberattacks.
Commercial Property Insurance protects business-owned buildings, equipment, and assets from risks like fire, vandalism, and natural disasters, ensuring continuity and recovery.

By securing tailored coverage, SMBs can mitigate risks, safeguard their investments, and focus on growth opportunities.

Challenges and What SMBs Need to Prepare For

Despite the promising opportunities, SMBs must also be aware of potential challenges. The competition for contracts, cash flow constraints, and the need to meet stringent project requirements can create obstacles. Here are some key areas to focus on:

Competition: Private equity projects often attract bids from larger firms, so SMBs must differentiate themselves by showcasing unique expertise and proven results.
Scaling Capacity: Many infrastructure projects require firms to scale operations quickly. To enhance their capacity, SMBs should explore partnerships or joint ventures.
Cash Flow Management: Since payments in large infrastructure projects may be delayed, SMBs must maintain healthy cash reserves or access short-term financing.

Action Steps for SMBs

To successfully navigate the evolving infrastructure landscape, SMBs should consider the following strategies:

Enhance Visibility in Private Equity-Funded Projects:
Build relationships with general contractors and private equity investors.
Utilize online marketplaces and bid platforms to identify new opportunities.
Align with Sustainability and Smart Tech Initiatives:
Private equity firms increasingly prioritize environmentally sustainable and technology-driven projects. SMBs that can deliver in these areas will have a competitive edge.
Strengthen Networks:
Participate in industry events, trade shows, and networking forums to connect with key stakeholders.
Explore collaborations with larger firms and public-private partnerships to increase exposure.

Conclusion: Seizing the Infrastructure Wave

The surge in private equity-driven infrastructure investment is reshaping industries and creating immense opportunities for small and medium-sized businesses in construction, technology, and manufacturing. However, to capitalize on this trend, SMBs must be proactive, adaptable, and strategic.

By enhancing their visibility, forming strategic alliances, aligning their offerings with emerging trends, and securing comprehensive insurance coverage, SMBs can position themselves as essential players in the evolving infrastructure ecosystem. Now is the time to act—to innovate, scale, and seize opportunities that could define the next decade of growth.

We love working with SMBs and are always available to support small businesses’ insurance and advisory needs. Fill out the form below to connect with our team. We look forward to discussing how we can support your growth.

The impact of imported products on your product liability exposure

Tue, 19 Aug 2025 00:36:32 GMT

The manufacturing industry has a unique set of insurance needs beyond those of the typical business, whether it’s investment capital to purchase machinery or lease warehouse space, a transportation fleet to deliver materials or products, or insurance to protect against theft or damage to your property. As a manufacturer, you will also need product liability insurance to protect yourself against claims that your products caused harm to people or property.

The insurance needs of a manufacturer have become even more complex now that we live in a global economy with multi-national supply chains. What happens when you have a complex global supply chain and use products manufactured in another country? When something goes awry, who is to blame?

Now, let’s imagine that you use good ole’ widgets in your manufacturing process and you get them from a factory in Scotland. The widget could have a design defect (i.e., the design of the widget was flawed/unsafe) or there could be a flaw in the manufacturing process or production of widgets in the Scottish factory that makes the widgets unsafe. Or imagine that the Scottish factory purchases a small part from an Irish distribution center and that small part has a design flaw which makes the widget unsafe.

It can be a serious challenge for a manufacturer in America to seek damages from a foreign company as the cost of obtaining a judgment in another country may be prohibitive, or, even if you were to get a judgment, it may not be enforceable. For these reasons, the burden of a product liability claim will likely fall on you because you incorporated the small piece that was part of the widget into your manufactured product and you may have no practical means of being compensated by your supplier.

Such claims can not only be damaging to your reputation but they can put a huge dent in your bottom line. In addition to mitigating risk in your supply chain through quality assurance, you can purchase broad form product liability insurance

Fusco & Orsini can help you sort through all of your manufacturing insurance needs and create a plan that fits your business. You can schedule a call with one of our insurance agents to discuss product liability exposure or any other manufacturing insurance topic.

The Importance of Employee Benefits for Recruitment and Retention

Tue, 19 Aug 2025 00:35:46 GMT

Why are Employee Benefits so Important

With unemployment rates near 20-year lows in San Diego and across most parts of California, employers are taking a hard look at incentives that can help retain their best employees and find good, new hires.

For many, that means scrutinizing benefits packages to see how they size up against competitors – and to look for ways of adding to those packages without significantly increasing costs.

What Are Employee Benefits?

Employee benefits are defined as forms of indirect, non-wage compensation provided for employees in addition to their pay. They might also be referred to as perks or fringe benefits.

Some benefits are mandatory – such as unemployment insurance, workers’ compensation, disability insurance and, for some businesses, health/medical coverage, and leave under the Family Medical Leave Act.

Other benefits are entirely discretionary.

The Most Popular Employee Benefits

The reason why group health insurance is important is simply that in one survey after another, they come out top among benefits ranked by employees.

Of course, providing group health coverage is also important for Affordable Care Act compliance (for organizations with more than 50 employees), although, increasingly, organizations are requiring employees to contribute to the cost.

But programs that extend coverage beyond ACA compliance requirements, for example adding dental or vision care, offering health screening, or providing health coverage even where it’s not mandatory, only strengthen its position as the Number 1 employee benefit.

Other popular benefits include:

Vacation/paid time off.
Paid sick leave.
Flexibility of working hours and opportunity to work from home.
Retirement plans such as a 401k or company pension program.
Paid parental leave.
Stock options.
Help with tuition costs.
Discounts on company products and services.
Paid time off for volunteering.

Advantages of Employee Benefits

In a tight labor market like the one we’re experiencing right now, job applicants can be a rare item in some sectors, notably software developers, health professionals, retail salespeople, education, leisure and hospitality.

The good ones are looking for a strong pay and benefits package, and working for a reputable organization with a good reputation and career prospects.

Research by online jobs agency Glassdoor found that almost two thirds of people say benefits and perks are a major factor when deciding on a job offer.

The same goes for employees already on your payroll: if they’re ambitious, they’re checking the jobs and packages your competitors offer.

So, the number one advantage of a good employee benefits program is the contribution it’ll make to retaining the good guys and finding the best among the job hunters outside.

But that’s not all there is to it. A well-thought-out rewards management plan may also give you:

Reduced operating costs. It sounds like a contradiction but a happier, healthier, team will likely offset benefit costs with higher productivity.
Tax incentives with employee benefits, through deductions you can apply to your contributions for health coverage and many other costs.
An enhanced reputation among your rival and peer employers and in the communities where you’re located.

Trends in Employee Benefits

The tech sector has led the way in devising innovative benefits for employees.

For instance, everyone has heard about the range of “extras” that search giant Google offers – from free chef-prepared meals three times a day to massages and yoga classes.

Yes, they may seem like gimmicks but they’re effective in strengthening relationships between employee and employer.

And they’re also raising the bar in terms of what job-seekers are looking for.

In particular, employees and new hires welcome benefits that directly contribute to their wellbeing.

Many forward-looking organizations, for instance, now either operate in-house gyms or, more commonly, contribute towards or pay entirely for gym memberships. It’s usually possible for employers to negotiate significant discounts for bulk memberships.

Another popular perk is a sabbatical break – a period of paid or unpaid leave that allows employees to pursue a topic of personal or professional interest.

Other benefits fit into a more imaginative category. For example, Goldman Sachs has offered coverage for gender reassignment surgery for the past 10 years.

Scripps Health offers pet insurance to employees, clothing retailer Gap pays for free museum access, Amazon has a program called Ramp Back that allows new mothers to ease themselves back into the work environment, Genentech provides car washes and haircuts for employees, and airline Southwest pays for counseling and legal consultations.

One of the biggest and most controversial programs is the introduction of unlimited vacations – a concept that rates highly in many employee surveys.

Contrary to what you might expect, firms that have pioneered unlimited vacations have found that employees generally don’t take off much more time than they would with a conventional vacation program.

They’re influenced by the behavior of their peers and don’t want to be seen to be acting irresponsibly.

From the employer perspective, the removal of fixed term vacations means that employees can’t accrue days owed, for which they would otherwise have to be paid.

Research so far suggests companies can save an average $1,898 per employee!

California Employee Benefits

Many of the organizations mentioned in the previous sections are either based in or have operations to California. But how does the state stack up against other parts of the US in terms of employee benefits?

According to research by the Society for Human Resource Management (SHRM), California is ahead of the nation is providing HMO health coverage and in extending coverage to domestic partners.

But the state lags behind US averages for providing other health and wellness benefits including provision of risk assessments, stop-smoking programs, and general health screening.

The state also mandates a number of benefits that may not be available elsewhere in the US, such as temporary disability insurance, job-protected leave under the California Family Rights Act (CFRA) and leave for victims of domestic violence.

For more details on attendance and leave rules in California, check out this comprehensive online guide: https://tinyurl.com/CA-leave

What to Do Next

Don’t underestimate the importance of employee benefits. They are likely to play an increasingly important role in HR policies in the coming years. You can’t ignore the issue, so, here’s a plan for your next steps.

Review your own organization’s existing benefits for effectiveness and cost.
Identify packages currently being offered by competitors and companies with similar skillset requirements.
Conduct an in-house survey to establish employee benefit likes and dislikes. But beware! Avoid raising expectations.
Brainstorm ideas for a new benefits program.
Consult an employee benefits expert. A good starting point is your group insurance agent. Here at Fusco & Orsini, we have relevant experience and expertise on California group health insurance and many other benefits programs. Feel free to get in touch for a no-cost discussion.
Develop a costed and timetabled plan to implement a new benefits program, piloting your most promising plans. Don’t do everything at once.

Starting down the road to improved employee benefits doesn’t have to be a big or costly exercise. Even free snacks or free coffee are highly rated by employees. Whatever you do, your employees and job applicants will recognize your initiative.

Preventing Theft and Vandalism on Construction Worksites

Tue, 19 Aug 2025 00:35:40 GMT

When working on a new construction project, there are plenty of things to worry about, including cost overruns, meeting all state deadlines, finding high-quality sub-contractors, making sure all the equipment arrives on time and in good shape, etc… Unfortunately, you also need to worry about theft and vandalism, which is all too common on construction sites in Southern California. Construction site theft eats away at your profit and could even cause an operating loss on a job. The best way to deal with theft is to try and prevent it with reasonable safety measures.

Below is a short list of steps you can take to convince thieves that your site isn’t worth the effort and risk of plundering.

Create a job-site security plan and make sure all your site managers are familiar with it
Encourage all employees to be security conscious when on the worksite
If possible, enclose the job site with a strong security fence
Make sure the security fence is closed and locked each night
Limit access to the site as much as possible, even during the day
Consider putting up cameras or motion-activated lights and posting big warning signs
Consider hiring security guards to patrol the premise at night
Keep tools in a secure area and lock them up at night
Mark all tools and equipment for easy identification
Stamp ID numbers conspicuously on all large equipment and keep records of the ID numbers
Require all workers to sign tools in and out to better track them
Require all keys to be signed in and out and limit the people on the site who are able to sign out keys
When possible, immobilize equipment at the end of each work day (ex. Take the gas cap out of each vehicle)
Keep all building materials in a secure and locked storage area
Keep an inventory of all tools, equipment and anything of value kept on the worksite
Remove equipment, tools and other materials from the worksite as soon as they are no longer needed
Make sure all incidents of theft or vandalism are reported promptly by workers
Contact local authorities immediately if a theft or vandalism has occurred
Maintain complete records of all incidents of theft or vandalism
Reach out to adjoining properties or local neighborhood watch groups and ask them to report any suspicious activity that they see on the worksite

With all or most of these security measures in place, the chances of theft and vandalism to your worksite will be drastically reduced, allowing you to worry about all the other important responsibilities that come with managing a construction project. If you’d like to protect against the financial loss of worksite theft or vandalism, consider purchasing inland marine insurance.

The Indirect Costs of a Workplace Accident

Tue, 19 Aug 2025 00:35:15 GMT

Workers’ compensation insurance helps insulate a company from the direct costs of an employee injury. For example, the company’s workers’ compensation policy will pay for medical care and will cover partial wages while the worker or workers recover.

While direct costs of workplace injuries may result in higher workers’ compensation rates, companies must also consider the indirect costs associated with employee injuries and workplace accidents. Research indicates that the indirect costs of a workplace accident can be up to 20 times greater than the direct costs, and in certain specialized industries, these indirect costs can soar to 50 times the direct costs.

What are some hidden costs of an employee injury or workplace accident?

Decreased labor and productivity: If you have one or several injured employees who can no longer work, this could create critical shortages that could slow production or bring certain departments to a standstill.
Lower employee morale: A bad work injury can be distressing and traumatic, even to employees who are not injured. This could lower morale or cause distractions that lower productivity.
Less production: If your injured employee or employees were responsible for the production of products, you may have to deal with decreased inventory or longer wait times to sell products and collect payment
Damaged equipment: Damaged equipment from a workplace accident must be repaired or replaced. Not only will the repair or new equipment cost money, but every minute the equipment is not functioning could also cost the company’s productivity.
Disrupted schedules: Having to cover the responsibilities of an injured co-worker or try to work around a damaged piece of equipment can disrupt your employees’ schedules, leading to stress and a loss of productivity.
Loss of customer and public goodwill: If a customer becomes aware of a workplace accident or if their product or property was damaged, this could drastically undercut their confidence in your company. Not only is there a chance that they could fire you from the job, but in this world of Yelp and other highly public customer satisfaction websites, a negative review can hurt your chances of closing prospects
Hiring and training new workers: If your injured employee or employees will be out for an extended period, you might have to consider hiring a temp or bringing on a new employee or new employee. You and your management team will require time to interview, hire, and train new employees. You’ll also have to absorb lower productivity until your new employees become proficient.
Cleanup: If a workplace accident causes widespread damage, you or your employees may have to spend significant time cleaning up the damage, which will cost your company time and labor.

Just because your company has workers’ compensation insurance doesn’t mean you are insulated from the costs of a workplace accident or injury. The hidden costs of an injury are severe. The best way to avoid absorbing all the indirect costs of a workplace injury or accident is to try and prevent accidents as much as possible by implementing a strict workplace safety program.

Call to Action:

Minimize the impact of workplace accidents with effective loss control strategies. Complete our 4C Advising form to discuss how we can help protect your business and ensure a safer work environment. Partner with us today to enhance your risk management efforts and safeguard your company’s future.

Insurance Haus: Sharp Leaders Discuss COVID19, Access to Care & What’s Next

Tue, 19 Aug 2025 00:34:42 GMT

We’re pleased to announce the launch of The Insurance Segment with Mike and Ray, a new educational video series focused on dispelling myths and providing information related to wellness and insurance decisions. During our first segment, we had the honor of hosting Sharp, a not-for-profit health organization that delivers patient care and health insurance within San Diego and Riverside Counties.

Here’s an outline of our discussion, which you can reference while you watch the video. We certainly hope this helps you understand how to choose and utilize the best health plan for your business.

The panelists included:

Sharp Rees Stealy Medical Group:

Dr. Abisola Olulade, MD – Sharp Rees-Stealy Downtown

Frances Schnall – Director of Marketing and Communications

Marlene Mead – Occupational Health Account Manager

Sharp Community Medical Group:

Joann Siudara – Marketing and Medicare Specialist

Dr. Gregg Garner, DO, SCMG Regional Medical Director

Sharp Health Plan:

Cheryl Cote – Sales Executive

Judy Schaller – Senior Sales Executive

During the one-hour conversation, Sharp representatives dispelled misconceptions about COVID-19 and shared what they are doing to innovate and build upon the Sharp Experience.

First, what is the Sharp Experience?

It’s an atmosphere and culture of support and positivity that extends beyond patient care to employees. The Sharp Experience starts at enrollment and extends to patient care.

As noted on the Sharp website, “The Sharp Experience is not one thing we do, it’s everything we do. It’s our care philosophy — treating people, not patients, and transforming the health care experience for our entire community.”

As you move through the video discussion above, you’ll uncover how the Sharp Experience is being applied to patient care during this unusual time.

OK, let’s discuss COVID-19.

Dr. Gregg Garner shared that consistency is key.

“What I think would be most helpful to the public at large is to keep the message short and consistent with what we’re hearing from experts in the field…frequent hand washing or hand sanitizer, wearing a mask when you’re out in public among other people, and physical distancing. If you do those three things and keep that message consistent then I think that helps the public at large.”

Dr. Abisola Olulade emphasized the three Ws:

“Wear a mask, watch your distance and wash your hands,” she said.

OK, now let’s look at COVID-19 myths:

Myth: I’m not at risk of getting infected.

“Everyone is at risk and everyone has to continue to follow these measures consistently,” said Dr. Olulade.

Myth: I can get COVID-19 from my Amazon package that was shipped from China.

“There is really no concern about receiving boxes from Amazon that have come from China. Just the trip alone…there’s no way the virus would stay viable during that kind of trip,” said Dr. Garner.

Myth: The virus was manufactured

“As far as the origin of the virus, people that have sequenced the virus and looked at the arrangement of the individual parts that make up the DNA or RNA of the virus…they’ve determined that this is something that occurred naturally. This wasn’t a manufactured virus,” said Dr. Garner.

Myth: COVID-19 is just like the flu or a cold-like illness

Even if you or someone you know got over COVID-19 quickly, you must consider how COVID-19 can affect someone that is high-risk, like grandparents or someone who is immune-suppressed. We are living in an era of multigenerational families.

“This virus is much more infectious and spreadable than say seasonal flu, but probably at least ten-fold, in fact, so it’s much easier to get than the flu,” added Dr. Garner. “It’s also a novel virus, it’s new, we don’t know what the long-term ramifications are yet.”

If you consider a 1% fatality rate spread amongst millions of people, that 1% is a significant number.

Myth: There are lots of ways to treat COVID-19

On the outpatient side, there isn’t a specific treatment for COVID-19 other than isolation at home, fluids, and plenty of rest. Once a person gets sick enough to be in the hospital and they have a drop in their oxygen level, then they institute steroids, etc. There are still studies going on, around the world, to find ways to treat COVID.

Myth: It’s totally safe to travel now

Travel increases the risk of spreading COVID-19 and contracting COVID-19. If you must travel, here are a few things to consider:

Pay attention to state and local guidelines
Look at the COVID rates in the place you’re traveling to
Find out if you must quarantine when you arrive
When you are traveling, take all the same precautions you would at home (3 Ws noted above)
Many airplanes now have HEPA filters installed, so being on the plane itself might be less risky than the actual contact you make in the airport

Now that we’ve dispelled a few myths, let’s talk about what Sharp is doing every day to help its members.

If you are visiting a Sharp facility during the pandemic, what can you expect?

At the clinics, thorough screenings of staff and patients are performed before entry
When COVID-19 hit, Sharp Health Care moved about 70% of its visits to virtual
In the patient care areas, all staff members wear masks
In the spaces where there are aerosol procedures, extra precautions are taken
One of the primary ways healthcare workers get exposed is when they take off their protective equipment, so Sharp has observers watching to make sure staff members are taking off their gear in the proper sequence
Cashless payments are available
Sharp’s Highly Infectious Disease committee is activated during times like this
House calls are being rolled out

What is Sharp doing to stay on the leading edge?

As noted by Dr. Olulade and shared in a recent news release, Sharp Healthcare is the first to deploy Amazon’s new wearable health monitoring product, the Amazon Halo Band

When it comes to health plan innovation, Sharp Health Plan is committed to utilizing technology for good. Sharp Health Plan is integrated with Sharp Healthcare and partners with Sharp Rees-Stealy and Sharp Community Medical Group. No matter which option a member has (Sharp Rees-Stealy or Sharp Community Medical Group), they will gain access to technological advancements like telehealth, which has become increasingly important during the pandemic, as well as top-notch member portals.

Sharp Rees Steely offers telehealth appointments for COVID-19 and non-COVID-19-related calls. There is a $0 copay for members.

Sharp Community Medical Group also offers telehealth appointments for COVID-19 and non-COVID-19-related calls for a $0 and $20 copay, respectively. Sharp Community Medical Group, an independent provider organization, has 120+ primary care sites. “I don’t think any of the other health plans can match us with access,” said Dr. Garner.

Further, Sharp Health Plan recognizes that mental health is more important than ever, which is why it has expanded its mental health network.

Other services include a partnership with Heal.com, the Nurse Connection Line offered in multiple languages, CVS Minute Clinic access in San Diego County, and the peace of mind that comes with knowing that the people who answer members’ calls are also San Diegans who live and work here.

Why else should you consider Sharp Health Plan?

For the employer, whether it be a large group employer or small group employer, it’s really all about affordable cost without skimping on care.
Sharp Health Plan has an award-winning network to choose from.
Sharp Health Plan is a not-for-profit.
Sharp Health Plan has medical employee benefits for large group or small group employers, and an individual line and a Medicare line.
Sharp Health Plan is committed to affordable, sustainable and predictable pricing with exceptional care.
Home visits are on the horizon, but the staff also wants members to know it’s safe to come in for care. During a home doctor call, the physician can still order x-rays, prescriptions, etc. An LVN may accompany the doctor for a home visit to meet the patient’s comfort level.
Sharp is a local organization, so everybody is in-house, which means they can make a difference when enrolling a member.

“We have a vested interest in the community, being a regional carrier,” said Judy Schaller, Senior Sales Executive at Sharp Health Plan.

If you’d like to know more about how Sharp Health Plan can be customized for your company’s employee needs, please contact Ray on our team at (858) 384-1506 . Ray has years of experience in employee benefits and can help you determine if Sharp – or another plan – is best for your business. You can also get started right now by requesting an employee benefits quote here. Or, scroll down to book time on Ray’s calendar!

How does personal property apply on a homeowner’s policy?

Tue, 19 Aug 2025 00:34:41 GMT

When you purchase homeowners insurance, did you know that you are buying coverage not only to replace the cost of damage to your home, but also damage to personal property within your home? Homeowners insurance can also offer liability coverage to any injuries that occur at your property. Let’s explore homeowners insurance: what it covers, what it doesn’t cover, and whether it makes sense to tack an endorsement (add-on) to your policy.

What’s covered and what’s not?

No matter how well you plan, lots of things could happen to your home that are out of your control. The bright side is that many of these incidents, listed below, are generally covered on homeowner’s policy:

Fire
Theft
Vandalism
Wind
Hail
Smoke
Vehicles/aircrafts

Unfortunately, not all perils are covered under homeowners insurance. Here are a few that aren’t typically covered, but the good news is you can get special insurance for some of these events if you’re in an area that’s exceptionally vulnerable.

Flood
Earthquake
Power failure
War
Nuclear damage
Damages from poor maintenance
General wear and tear

What do I need to know about personal property coverage?

First, when your valuables are damaged in an event that is covered on your policy, the typical contents coverage limit (for your personal property), is set at 70% of the value of the dwelling where the contents reside.

Second, most homeowners policies pay for the replacement cost of the item as opposed to actual cash value (which deducts depreciation).

Third, there are some items you may consider to be your personal property that aren’t covered under your homeowners policy in the eyes of your insurance company. These items may include:

Money, gold, silver
Jewelry
Items you use for a business purpose
Silverware
Firearms
Animals
Motor vehicles and aircrafts
Property of tenants in a space you are renting out

If you own personal property that many others don’t, like a valuable art collection, connect with a broker to discuss adding scheduled personal property protection to your homeowners policy to protect your valuable property.

OSHA’s Top 10 Violations for 2024: What Employers Need to Know

Tue, 19 Aug 2025 00:33:04 GMT

Workplace safety is non-negotiable, and the Occupational Safety and Health Administration (OSHA) ensures that employers uphold critical safety standards. OSHA releases its list of the most frequently cited workplace violations each year. This report is a crucial resource for businesses looking to improve safety, avoid costly fines, and protect their workforce.

Fall protection—general requirements topped the list for the 14th consecutive year, highlighting the ongoing challenge of preventing workplace falls. However, there have also been shifts in the rankings, such as respiratory protection moving up and scaffolding violations dropping.

Below, we summarize the top 10 most frequently cited OSHA violations in 2024 and what they mean for employers.

Top 10 OSHA Violations of 2024

OSHA Penalties for Violations in 2025

Employers who violate OSHA standards face significant penalties, which increase annually to adjust for inflation. As of 2025, here’s what businesses can expect:

Penalty Breakdown

OSHA citations must be posted near the violation site until corrected, and failure to address violations can lead to escalated penalties.

What This Means for Employers

Understanding these common violations helps businesses proactively address safety hazards. Here’s how employers can stay ahead:

Review OSHA Standards – Ensure compliance with regulations specific to your industry.
Provide Regular Training – Many violations stem from a lack of employee awareness.
Conduct Routine Safety Audits – Regular inspections can identify and fix issues before OSHA does.
Invest in Protective Equipment – PPE and safety gear are essential in many categories.
Implement Strong Safety Policies – A culture of safety reduces risks and violations.

PRO TIP! Click here to learn about Mock OSHA inspection services!

Final Thoughts

OSHA’s data isn’t just about fines—it’s a roadmap to safer workplaces. By understanding the most common violations, employers can implement better safety measures, reduce workplace injuries, and maintain compliance.

Let’s make workplace safety a priority in 2025! Complete this form to connect with one of our consultants!

OSHA INCREASES Civil Penalty Amounts for 2019

Tue, 19 Aug 2025 00:32:11 GMT

As if OSHA penalties weren’t already drastic, the Occupational Safety and Health Administration published a final rule on 1/23/2019 that increases maximum penalty amounts for 2019. The numbers are staggering; for most violations, the new maximum penalty amount is $13,260. For willful or repeated violations, the updated maximum penalty amount is $132,598.

Normally, Federal law requires OSHA to increase penalty amounts by January 15 every year. However, the federal government shutdown delayed the process in 2019.

OSHA RELEASES NEW MAXIMUM PENALTIES FOR 2019

Staggering Penalties for OSHA Violations

ACTION STEPS

First and foremost, employers should become familiar with OSHA’s new penalty amounts and review their workplace policies and procedures to ensure OSHA compliance.

Fusco & Orsini Insurance Services offers a wide range of risk management and compliance resources. Contact Ray Ramirez for assistance with the implementation of workplace policies to avoid large OSHA penalties.

Off-Site Coverage and OCIP Insurance Projects: When Enough Is Enough

Tue, 19 Aug 2025 00:31:16 GMT

Subcontractors working under OCIP Insurance are already familiar with the process. You enroll in the WRAP, provide a bid credit to account for insurance you’re no longer supplying, and proceed knowing your work under the WRAP is covered.

But that standard is starting to shift.

More and more WRAP administrators now demand coverage far beyond the job site. They require liability protection for off-site work , even when it falls outside the scope of the WRAP project. They also ask subcontractors to name them as additional insureds on their liability policies for work performed away from the project. Sometimes, they insist on specific ISO endorsement forms and completed operations language as part of that coverage.

These requirements are not just burdensome. They are becoming unreasonable.

The Purpose Behind OCIP (WRAP) Insurance Policies

WRAPs were originally designed to simplify the insurance process for large construction projects. They consolidate general liability, excess liability, and sometimes workers’ compensation coverage into a single program. When subcontractors are brought under the WRAP, they remove the cost of their own coverage from their bid and rely on the WRAP for protection. Standard liability policies include WRAP exclusions that remove coverage for work already insured by the WRAP. Sometimes, these exclusions apply even when the subcontractor does not enroll (read your policy)!

This system avoids overlapping policies, simplifies claims handling, and gives project owners peace of mind.

The Problem with Expanding WRAP Demands

Recently, WRAP administrators have begun to require subcontractors to extend coverage for work performed away from the WRAP-covered site. They request additional insured endorsements on subcontractors’ own policies for these off-site tasks, even if the administrators have no direct insurable interest in that work.

These demands often include:

Liability coverage for off-site work tied to the project.
Additional insured status for the WRAP administrator or project sponsor.
Specific ISO form editions, some of which are outdated or rarely used.
Completed operations language included in the endorsement.

These requests go beyond the original intent of WRAP programs and, in many cases, contradict how those programs are supposed to function.

Carrier Concerns Are Justified

Insurers are not ignoring this trend. They are being asked to extend protection (often broadened) to parties without insurable interest in the project, which is a serious concern.

When a WRAP exclusion applies, it is there to keep the risk with the WRAP. Adding back coverage for off-site work related to the project creates confusion about who is responsible. On top of that, when administrators demand older ISO endorsement forms that are no longer in circulation, carriers may not be able to comply.

The Subcontractor’s Dilemma

Subcontractors are forced to comply with these unrealistic insurance requirements to secure jobs. They face demands that are either unavailable or unaffordable. Many absorb extra costs or chase workaround solutions that only partially meet what is being asked.

This situation places subcontractors in a difficult and unfair position.

What Subcontractors Can Do

There are steps subcontractors can take to protect themselves:

Understand that not every contract requirement is achievable or enforceable in the current insurance market.
Review contracts early and raise questions when unusual demands are included.
Work with a broker who knows construction, understands WRAP complexities, and can help document compliance efforts, including insurer declinations.

Having a knowledgeable advocate on your side makes a big difference.

The Bottom Line

WRAP policies were created to centralize coverage and simplify risk management. When administrators begin demanding coverage far beyond the project site, it creates unnecessary complications and costs. Subcontractors deserve a clear path forward with insurance requirements that reflect reality and respect the structure of WRAP programs.

If you are being asked to provide off-site coverage that does not make sense, you are not alone. There is a smarter way to navigate this, and it starts with understanding your rights and the realities of the insurance market.

Contact our agency today to connect with an experienced team member who understands these complexities and can help.

Using A Nurse Triage Membership to Protect Your Employees

Tue, 19 Aug 2025 00:30:38 GMT

Accidents on the job can happen no matter your level of preparation. As an employer, you want to provide your employees with the best safety resources to protect them and prevent the need for workers’ compensation claims.

One of these safety resources that we find business owners sometimes overlook is a Nurse Triage Membership.

What is it? A Nurse Triage Membership is a workers’ compensation tool that provides you access to healthcare advice instantly. If an accident occurs, your injured employee can call in and speak with a nurse to assess their symptoms.

How does it work? The designated telehealth nurse allows individuals to immediately report injuries and describe their current situation and status. Should the nurse see a need for treatment, the individual can be directed to their covered options.

Will it help my employees? The nurse’s priority is the injured individual, and they do not have any power to make workers’ compensation award decisions. Their expertise is impartial, and they seek to serve with the best care possible.

This service helps to address some of the biggest challenges that might arise for workers’ compensation and injuries on the job.

Determining whether to seek care for a non-emergency condition can be challenging. However, addressing certain situations or injuries right away can help prevent further complications and the need for long-term treatment.
Accidents can also occur at any time of day. This service offers advice 24/7, so reports and the opportunity to seek care never slip through the cracks.
Finally, this service helps employees feel more comfortable reporting their injuries. It gives them an educated medical professional to speak to, rather than having to disclose information to someone within their organization.

We hope this summary helps you better understand this valuable tool for business owners. If you want to learn more about how this service can help your business, complete the form at the top of this post. Someone from our team will contact you soon.

Note to contractors and subs: Get more eyes to review subcontracting agreements

Tue, 19 Aug 2025 00:29:55 GMT

Avoiding Delays, Disputes and Damage

Note to contractors and subs: Get more eyes to review subcontracting agreements

Everything from lien rights to project expectations are included in contracts for your jobs. But all you need is a faulty or incomplete insurance document to end up buried under the weight of a collapsing project. Having your subcontractor agreement reviewed by an insurance professional is a means to mitigate the chance of a liability setback.

A subcontractor agreement sets out the terms and conditions between a contractor and a subcontractor for the provision of services, including such elements as:

Client’s identity
Details about subcontractor
Scope of responsibility of the subcontractor
Indemnity possibility by subcontractor
Agreed upon limit of liability

More insurance carriers are adopting language on policies that makes sure you have proper avenues to collect against a subcontractors’ insurance if there is a case of bodily injury or property damage on the job, says Mike Fusco of Fusco & Orsini Insurance Services. For added security, you can obtain a subcontractor warranty endorsement from Fusco’s agency.

“If you’re a general contractor or a subcontractor and you don’t have a proper subagreement in place, we can send one to you,” he says. “You can send it to your attorney to make sure there’s nothing they want to add, and we’re happy to send it to your insurance company to make sure that they approve of it, so we know that if a loss were to occur you’re not going to have any issues because of your subagreement.”

An additional advantage to a general liability company asking for this information up front is that the underwriter will scrutinize it and tell the company if the language is acceptable or not.

“It offers another set of eyes on the document to make sure we have everything is in order,” Fusco adds.

An article in the Lumber/Building Materials Journal agrees that general contractors need a comprehensive subcontractor agreement in place.

For maximum coverage, the article suggests looking for such clauses as:

Scope of work
Review of plans and site conditions
Payment terms
Change orders
Termination for convenience
List of sub vendors
Correction of work/warranty
OSHA compliance
Liquidated damages
Dispute resolution

The time to nail down the details of your contract is not after an unforeseen injury or property damage occurs – it’s before the job begins.

For help, please call or text us at: (858) 384-1506.

Tips For General Contractors Navigating Gaps in Coverage

Tue, 19 Aug 2025 00:29:44 GMT

Construction can be a risky business! That’s why it’s important for contractors to obtain insurance coverage and also understand the parameters of their policy. Like most other insurance policies, Contractor’s Insurance does include some exclusions or limitations, so policy holders need to know how to handle those potential gaps in coverage.

When your business has the proper coverage you can focus on doing your job and creating the best possible things for your clients.

Here are five steps we recommend to mitigate your risk and fill in those gaps:

1. Start with a good understanding of your insurance needs – To know all the types of coverage you need, you must examine your operations in-depth. For example, if your business operates commercial vehicles, that is an additional category on top of general liability insurance. We can help you with this.

2. Partner with an experienced insurance broker who can advise you – The ideal broker should have a great understanding of construction industry needs so they can recommend a policy that mitigates as much of your exposure as possible. Work with them to understand the exclusions and limitations of your policy. Ask questions such as “What gaps might there be in this coverage?” or “Based on my industry or business activities do you recommend any additional coverage?”

3. Thoroughly review your policies each year – A lot can change for your business in a year! As you grow, establish new locations, obtain new equipment, add employees, expand your offerings and make changes, gaps in coverage can form. You want to protect all your new assets and ensure that you can continue on your growth trajectory with proper, adjusted policies.

4. Always verify that subcontractors have their own insurance coverage – Ask for certificates of insurance to prove adequate coverage. You want to protect yourself from liability for their actions or accidents that may arise.

5. Consider additional policy modifications or types of coverage, such as:

Endorsements or Additional Riders – These are modifications or add-ons to an insurance policy that alter its terms, conditions, or coverage in some way. They are used to customize a standard insurance policy to the needs or preferences of the policyholder.
Workers’ Compensation – This is separate from general liability coverage and covers injuries that employees may sustain on the job.
Claims-Made Tail Coverage – If you are switching or canceling your policy, this can provide coverage for claims made after its expiration.
Umbrella – This type of policy provides additional liability coverage beyond the limits of your primary policies and can help fill gaps in your coverage.
Removal of exclusions:
Action Over: An “action over” exclusion in a general contractor’s insurance policy refers to a provision that eliminates coverage for claims arising when an injured employee, whose workers’ compensation claim is barred due to state laws, seeks to hold a third party liable, and that third party then pursues the contractor for reimbursement. This exclusion is significant because it can leave contractors exposed to potentially costly legal claims from third parties seeking damages for injuries to an employee, despite workers’ compensation systems typically preventing direct employee lawsuits against employers.
Subsidence Exclusion: A subsidence exclusion in a general contractor’s insurance policy specifies that any damage caused by the sinking, settling, cracking, shrinking, or expansion of the earth underneath a structure is not covered. This type of exclusion is particularly crucial for contractors to be aware of, as it can leave them financially vulnerable for substantial repair costs if the ground movement leads to property damage or structural failure.
Environmental Liability Insurance – If construction projects involve environmental risks, such as soil contamination or hazardous material removal, this additional policy can protect against liabilities that may arise.
Builder’s Risk Insurance – This policy covers property damage or loss to a project under construction. It typically includes materials, equipment, and structures during construction.
Professional Liability Insurance or Errors and Omissions Insurance – This coverage is essential for general contractors who provide design or professional services as part of their construction projects. It protects against claims related to errors, omissions, or professional negligence.
And more! Ask your trusted insurance broker about other additional options.

To learn more about Contractor Insurance, we invite you to connect with our friendly associates by calling or texting (858) 384-1506. Our team has extensive experience working with contractors and can recommend a customized policy.

We are ready to dive into your business and ask the right questions so we can help mitigate your risk!

Reference list: OpenAI. (2023, November). [How can contractors protect themselves from gaps in insurance coverage]. Retrieved from [ChatGPT.com].

Protect Your Residence: Tips for Homeowners and Renters

Tue, 19 Aug 2025 00:28:59 GMT

Whether you are a homeowner or a renter, getting the right kind of insurance for your situation should be a priority. Here are some of the important things to remember and misconceptions we find clients have about both of these types of insurance.

Homeower’s Insurance

First of all, when shopping for a new property, homebuyers should check: prior claims history, the age of the roof and the type of plumbing, heating and electrical.

They also should look out for if the house is in an area prone to wildfires, or in a location where insurance is harder to obtain. This might be the case if it is located somewhere with hurricanes, wind, fire or other natural elements of this kind.

One of the most common mistakes we find when purchasing this kind of insurance is that homeowners can sometimes focus too heavily on the premium and not the protection. Too many agents and homeowners are all about the cost of the policy. They might under-insure on Coverage A to save premium, and find their home is underinsured at the time of a loss.

They also may not pay enough attention or ask enough questions about policy endorsements and restrictive language. We recommend asking questions such as: What exclusions apply? What endorsements are on the policy? Which perils are not covered?

One of the easiest ways homeowners can save money when shopping for insurance is hiring a quality independent agent who knows the market and can compare several options simultaneously.

To figure out exactly the kind of coverage they need, homeowners should be honest and forthcoming with their insurance agent about the features and upgrades in the house. They must take the time to communicate with and advise them to double-check that all features are clearly understood.

Homeowners should also ensure their home is in quality condition, protective safeguards are in place and attractive nuisances are eliminated. If they’re thinking of making home updates, it is vital to seek expert advice, especially with roofing, plumbing, and electrical systems.

Always make sure to review the proposals carefully to make sure coverage is adequate!

Renter’s Insurance

Even though renters insurance is extremely affordable, we often find that renters don’t think they need to purchase it. In our experience, clients might believe the landlord will pay for their losses.

Renter’s Insurance is extremely important to have and it also includes some hidden perks. These perks include personal liability insurance and coverage for property within the rental. It can help cover costs for claims of bodily injury or property damage if they are brought against the policy holder.

Renters should keep in mind that the landlord’s policy will not provide coverage for contents if damaged in a loss.

Contact our team today if you need further guidance on either of these types of insurance!

Top 5 Tips for Avoiding Workers’ Compensation Claims

Tue, 19 Aug 2025 00:28:23 GMT

Over the years, I’ve seen how workers’ compensation claims can significantly impact a company’s bottom line , particularly in industries like construction, manufacturing, or any field involving physical labor. A single claim can lead to higher insurance premiums and influence your experience modification factor (MOD), which is crucial for calculating insurance expenses. The higher your MOD, the greater your workers’ compensation insurance costs. Reducing these claims is essential for maintaining a safer workplace and managing costs effectively. Here are the top five strategies I recommend to help you prevent workers’ compensation claims and manage your MOD.

1. Implement a Comprehensive Safety Program

In my experience, a strong safety program is the bedrock of preventing workplace injuries. It is vital to document your safety program clearly and communicate it effectively to all employees. Keep your safety protocols up to date and conduct regular training sessions. Encouraging a culture where safety is paramount and employees feel safe reporting potential hazards without fear of retaliation is crucial. This proactive approach can help reduce the frequency and severity of workplace accidents.

At 4C Advising , we specialize in helping businesses like yours develop comprehensive safety programs. If you’re ready to enhance workplace safety, I encourage you to complete this form.

2. Conduct Regular Safety Audits and Inspections

Regular safety audits and inspections are another critical element in identifying potential hazards before they turn into costly accidents. I always advise developing a thorough checklist that covers all workplace areas and involves employees in the inspection process. Being proactive in risk management can prevent incidents leading to workers’ compensation claims.

Many workers’ compensation insurance providers offer free safety audits and inspections as part of their policy services. While some might see these services as intrusive, I encourage you to view them as valuable tools for maintaining workplace safety. Trust me, similar services can be expensive on the open market. If you’re looking for a better workers’ compensation partner, we’re here to help.

4C Advising has partnered with firms that provide safety audits and inspections at competitive prices. Contact us to learn more about these services.

3. Foster an Open Communication Culture

Throughout my career, I’ve found that fostering an open communication culture is key to avoiding costly claims. When employees feel ignored, especially after an injury, claims are more likely to be prolonged and complicated. Encouraging open dialogue between management and staff about safety issues can prevent this.

I recommend holding regular safety meetings where employees can raise concerns about potential hazards or discuss near-miss incidents. Creating a transparency and openness culture allows businesses to proactively address safety issues before they escalate.

If you haven’t already, check out my latest video, “California Workers Comp Experience Rating Form EXPLAINED [Avoid Costly Mistakes].” It explains how indemnity claims can impact a company’s MOD.

4. Provide Proper Training and Personal Protective Equipment (PPE)

I can’t emphasize enough how crucial proper training and the use of personal protective equipment (PPE) are. Employees must be fully trained for their specific role and know how to use PPE correctly. This isn’t just a check-the-box exercise—it’s the first line of defense against workplace accidents and injuries. Additionally, it’s essential to regularly check that all PPE is in good condition and replace any worn-out equipment. These small details make a huge difference in maintaining a safe work environment.

If you’re having trouble enforcing PPE policies, don’t hesitate to ask for support. We’re here to help you create a safer workplace.

5. Have a Strong Return-to-Work Program

From my perspective, having a robust return-to-work program is essential. A well-structured program is one of the most effective ways to manage the costs associated with workers’ compensation claims. I’ve seen firsthand how helping injured employees return to work in a modified or limited capacity can significantly reduce downtime and lessen the financial impact on your business.

But it’s about more than just the numbers—it’s about demonstrating to your employees that they are valued and supported, leading to quicker recovery and a more positive workplace culture. Investing in a strong return-to-work program is one of the smartest moves to protect your team and bottom line.

If you want to learn more, click here to check out our latest blog and Return to Work Programs video.

Conclusion

Implementing these five strategies has been crucial in my work to create safer workplaces and reduce workers’ compensation claims. I’ve seen the difference it makes in lowering insurance costs and protecting your bottom line. Being proactive and committed to preventing accidents before they happen is vital—not just for the safety and well-being of your employees but also for safeguarding your business’s financial health. Keeping your MOD low is possible with the right focus on workplace safety and risk management.

Please reach out if you’re looking for a dedicated insurance and risk management partner. You can get started easily by completing the form below. Thank you for reading!

Top Insurance Coverage Predictions for Businesses in 2025

Tue, 19 Aug 2025 00:27:40 GMT

Article a glance:

We’ve been experiencing a hard insurance market that is beginning to soften, which means coverage may become broader and preimums could lower
The market will still have its challenges, due to forces like natural disasters, geopolitical conflicts, the economy, inflation, AI and cyber security
Shifts in your business, like hybrid work, AI, staff changes and more, can impact your premiums
Stay a step ahead by having us check your coverage for 2025

Will my business insurance premiums change in 2025?

Chances are, you are on a mission to build your strongest business yet! In doing so, it’s important to strengthen and protect what matters most: your people and your property. Strengthening your business can be easier than you think, especially as we anticipate a softening of the insurance market. A softening means conditions are more favorable toward the buyer – that’s you! Let me break it down quickly…

Will we have a soft insurance market in 2025?

According to Zywave’s 2025 Commercial Insurance Market Outlook , the insurance market is softening, meaning there’s potential for stable or reduced premiums, broader coverage, higher available limits of liability, and more.

This softening is a shift from a hard market in recent years marked by “…rising claim frequency and severity, social inflation, evolving cyber risks, and continued losses from catastrophic natural disasters—all contributing to a prolonged hard market.”

As you probably experienced as a business owner in recent years, underwriting standards became more strict, and premiums increased, making it harder and pricier to get appropriate coverage. As the market softens, the outlook benefits policyholders, especially those with low-risk profiles.

Here are some positive things we expect to see (this is true for California, too, as large insurers look to resume serving new policyholders):

Reinsurance capacity – AKA the number of businesses that can be re-insured – will remain stable and may even increase
We may be able to offer lower premiums and broader coverage

Where does your business stand in all of this?

Whether you’ve experienced small or large shifts in your business over the past year, checking in on your coverage is smart. Here are shifts (big and small) that can impact your premiums:

Remote work and a hybrid workforce
The size of your workforce
Property modifications and property location
The strength of your risk management process – and your management team – which can lead to fewer claims
AI Developments

Lots of shifts to consider, right? Make it easier on yourself by working with us! We will ask the right questions to ensure you have appropriate coverage in 2025. Inquire HERE.

What are the potential insurance market challenges for 2025?

While we are optimistic about the insurance market in 2025, we must acknowledge the challenges, too. These include:

Recent natural disasters like hurricanes in Florida and wildfires in California caused billions of dollars worth of damage, which has the potential to impact pricing
Geopolitical conflicts could impact supply chains, which in turn can affect insurance rates
The overall economy and state of prolonged inflation
Growing cyber risks, navigating AI, etc., could challenge the market.

I know we just told you the market could be softening, and then we threw in a wrench. Our goal is to overcommunicate and stay a step ahead on your behalf so you know the opportunities and challenges that lie ahead for your business. After all, you want to build your strongest business yet, right?

Make it easier on yourself by working with us! Get started HERE.

Source: Zywave, 2025 Commercial Insurance Market Outlook

Understanding Total Cost of Risk (TCOR): A Guide for Business Owners

Tue, 19 Aug 2025 00:26:47 GMT

As a business owner, you make daily decisions that impact your bottom line. You review expenses, manage payroll, and negotiate contracts—but have you ever stopped to think about the total cost of risk (TCOR) in your business?

In many of my blogs and videos , I discuss ‘ Total Cost of Risk (TCOR). ’ However, I recently realized through incoming questions that I have failed to explain TCOR fully. So, I thought it was best to take a step back and provide a clear, straightforward breakdown.

Many business owners focus solely on insurance premiums when assessing risk-related expenses. However, the actual cost of risk goes far beyond what you pay for coverage. Hidden costs like deductibles, administrative fees, lost productivity, and uninsured losses can quietly drain your resources and reduce profitability.

So, what exactly is TCOR , and why should it matter to you? Simply put, TCOR represents the total cost a business incurs to manage and mitigate direct and indirect risks. Understanding this number can help you make smarter financial decisions, reduce unnecessary expenses, and ultimately protect your business’s long-term success.

In this article, I’ll explain what TCOR is, why many business owners overlook it, and how you can start managing it effectively. Knowing your TCOR can give you a competitive advantage and greater financial control, whether you’re a small business owner or running a large organization.

Let’s dive in.

What is Total Cost of Risk (TCOR)?

Many business owners assume that insurance premiums are the only cost of managing risk. However, TCOR is a much broader calculation that includes all expenses associated with risk—both direct and indirect.

At its core, Total Cost of Risk (TCOR) is the sum of all costs a business incurs to manage risk and mitigate potential losses. These costs fall into four key categories:

1. Insurance Premiums (Direct Cost)

This is the most visible and commonly recognized cost of risk. It includes what you pay for various types of insurance, such as:

General Liability Insurance
Workers’ Compensation
Property Insurance
Cyber Liability Coverage
Auto & Fleet Insurance

While premiums are essential to risk management, they only represent a portion of your business’s total risk-related expenses.

2. Retained Losses (Deductibles, Uninsured Losses, and Self-Insurance)

Retained losses are the costs your business must pay out of pocket before insurance kicks in—or in cases where there’s no coverage. These include:

Deductibles paid on claims
Uninsured claims or self-insured risks
Legal expenses related to claims or lawsuits

For example, suppose your company has a self-insured retention of $50,000 on an EPLI policy. In that case, you may be responsible for thousands of dollars in losses before your policy even starts covering costs.

3. Administrative Costs (Internal Risk Management & Compliance)

These are the costs associated with managing risk within your organization. They may include:

Salaries of employees handling safety, compliance, or risk management
Claims management expenses
Legal and regulatory compliance costs
Time spent negotiating policies, handling claims, and reviewing contracts

Many businesses overlook these hidden costs , yet they can add up quickly—especially for companies with high claims frequency or complex risk exposures. Smaller companies can scale these costs using partner consultants, such as 4C Advising.

4. Indirect Costs (Hidden Financial Impacts of Risk)

Indirect costs are often the most underestimated part of TCOR. These include:

Lost Productivity: When an employee is injured, their absence affects operations.
Reputation Damage: A lawsuit or safety violation can erode customer trust.
Operational Disruptions: Downtime from equipment failures, cyberattacks, or legal issues.

In many cases, indirect costs exceed the direct cost of an incident. For example, a workplace injury may cost $10,000 in medical expenses , but the total financial impact, including lost work time and training a replacement—could reach $50,000 or more.

Why Understanding TCOR Matters

By recognizing all components of TCOR, business owners can make smarter risk management decisions instead of simply focusing on lowering insurance premiums. Reducing the total cost of risk means increasing profitability, improving operational efficiency, and protecting the business’s long-term stability.

In the next section, we’ll discuss why business owners often overlook TCOR and how you can start identifying hidden costs in your business.

Why Business Owners Often Overlook TCOR

If TCOR is critical to managing risk and protecting profitability, why do many business owners overlook it? The answer is simple: most companies focus only on insurance premiums because they are the most visible cost.

For years, the standard approach to risk management has been centered around getting the best insurance rate. While securing a competitive premium is important, it doesn’t tell the whole story. Hidden costs—deductibles, administrative expenses, lost productivity, and uninsured claims—can add up quickly and have a much more significant financial impact than the premium itself.

Common Reasons TCOR is Overlooked

The Focus is on Premiums, Not the Full Picture

Most business owners review their insurance costs annually but don’t always take the time to assess how much they’re spending on retained losses, compliance, or risk management programs. If a company only evaluates its insurance spend without considering claims expenses or downtime from incidents, it’s leaving a significant gap in its financial strategy.

Indirect Costs Are Hard to Measure

Unlike an insurance premium or deductible, lost productivity, reputational damage, and operational disruptions don’t come with a bill attached —but they still affect the bottom line. Business owners often underestimate the financial impact of workplace injuries, lawsuits, or cyberattacks because these costs are spread out over time, making them difficult to track.

Risk Management is Often Reactive, Not Proactive

Many companies wait until an incident happens before assessing their true cost of risk. For example, a business might only realize the true impact of workplace injuries after multiple claims drive up workers’ compensation costs. By the time they address the issue, they’ve already lost thousands in claims, productivity, and operational setbacks.

Lack of Internal Resources or Expertise

Smaller businesses may not have a dedicated risk management department tracking these expenses. Many rely on their insurance broker or advisor to provide insight, but not all brokers take a holistic approach to TCOR. That’s why partnering with the right advisors, like 4C Advising or similar risk management consultants, can be a game-changer.

How to Start Identifying Hidden Costs in Your Business

If you’re unsure about the total cost of risk in your business, you’re not alone. The good news is that you can start making informed decisions today by:

✅ Tracking ALL risk-related expenses, not just insurance premiums.

✅ Reviewing past claims to understand trends in losses and hidden costs.

✅ Evaluating safety programs and internal risk management efforts to identify potential savings.

✅ Partnering with risk management professionals who take a proactive approach to TCOR.

By shifting the mindset from “How can I lower my insurance premium?” to “How can I reduce my overall risk exposure?” business owners can increase profitability, improve operational efficiency, and create a stronger, more resilient company.

Up Next: How to Calculate and Reduce Your TCOR

Now that we’ve covered why TCOR is often overlooked, the next step is to understand how to calculate it and, more importantly, lower it for long-term savings.

How to Calculate and Reduce Your TCOR

Now that you understand what Total Cost of Risk (TCOR) is and why business owners often overlook it, the next step is learning to calculate it and, more importantly, reduce it.

Step 1: Calculate Your TCOR

To get an accurate picture of your total cost of risk , you need to gather data from multiple sources within your business. TCOR is usually expressed as a percentage of total revenue or operating costs , making it easier to compare year-over-year.

*Pro-TIp: ask us about our TCOR calculator!

Here’s a simple formula to start calculating your TCOR:

�� TCOR = Insurance Costs + Retained Losses + Administrative Costs + Indirect Costs

Breaking It Down:

✔ Insurance Costs → Your total premium for liability, workers’ comp, property, auto, cyber, etc.

✔ Retained Losses → Deductibles, self-insured risks, and any out-of-pocket claim expenses.

✔ Administrative Costs → Salaries for risk management, compliance, claims handling, and legal fees.

✔ Indirect Costs → Lost productivity, business interruptions, reputation damage, and long-term impacts of claims.

If you’re unsure about certain indirect costs, review past claims and estimate the additional financial impact beyond the insurance payout . You may be surprised at how much risk costs your business.

Step 2: Identify High-Cost Areas

Once you have a baseline TCOR calculation, look at your losses and expenses trends . Common high-cost areas include:

�� Frequent Claims → If you have repeat claims in a specific area (e.g., workplace injuries, auto accidents), this is a red flag that preventable risks drive up costs.

�� High Deductibles with Frequent Losses → A high deductible may lower your premiums, but if you’re constantly paying out-of-pocket for losses, your total TCOR may still be high.

�� Operational Disruptions → If downtime from incidents (e.g., cyberattacks, equipment failure) is eating into productivity, it’s time to reassess risk controls.

�� Legal & Compliance Issues → If regulatory fines, legal fees, or compliance failures contribute to risk costs, investing in proactive solutions can be more cost-effective.

Step 3: Strategies to Reduce TCOR

Reducing TCOR isn’t just about finding a cheaper insurance policy —it’s about actively managing and preventing risks. Here are practical strategies to help lower your total cost of risk:

✅ Invest in Safety & Loss Prevention

Implement employee training programs to reduce workplace injuries.
Improve fleet safety policies to lower auto-related claims.
Strengthen cybersecurity measures to prevent costly breaches.

✅ Optimize Your Insurance Program

Consider higher deductibles if your business can comfortably absorb those costs.
Explore alternative risk financing, such as captives or self-insurance, for better long-term savings.
Regularly review coverage to ensure you’re not overpaying for unnecessary policies.

✅ Enhance Claims Management

Work with proactive claims advocates to settle claims efficiently.
Track loss trends and implement corrective actions to prevent recurring incidents.
Ensure proper documentation to avoid unnecessary disputes or delays in claims processing.

✅ Utilize Risk Management Partners

If you don’t have an in-house risk management team, consider working with risk consultants like 4C Advising , which specializes in lowering TCOR.
Leverage technology-driven risk assessment tools to identify gaps and optimize strategies.

The Key Takeaway

By taking a proactive approach to risk management, business owners can gain more control over their TCOR —which translates into lower costs, improved profitability, and a more resilient organization.

The final step? Regularly monitor your TCOR and adjust your risk strategy as your business evolves. What works today may not be the best solution next year, so continuously evaluating and refining your risk management approach is key to long-term success.

Final Thoughts: The Power of Understanding TCOR

Many businesses lose money because they don’t fully understand their total cost of risk . Companies can achieve significant savings and excellent financial stability by shifting the focus from insurance premiums to a broader risk management strategy.

�� Want to discuss your business’s TCOR? Let’s connect! I’m always happy to help business owners uncover hidden costs and create strategies for better protection, lower expenses, and long-term success.

Transform Your Workplace with Professional HR Guidance

Tue, 19 Aug 2025 00:26:11 GMT

Introducing Monthly HR Advising Services by 4C Advising

Doing human resources (HR) solo can be a lonely experience, even though HR is at the heart of organizational culture and employee well-being. While trying to support everyone else, you may be overwhelmed by compliance requirements, struggling to retain employees and boost engagement, and worried about making costly HR mistakes.

If this is you, we hear and understand you because we’ve been in your shoes. Early in our business, we didn’t have the resources to hire a C-suite or expensive consultants, but we knew we needed deeper expertise in HR to strengthen and grow our business.

After working with over 20,000 clients and witnessing many of them reach the same crossroads, we knew there had to be a better way for small businesses to access affordable and high-impact HR services and support. That’s why we have launched HR Advisory Services by 4C Advising.

Here’s why an HR advisor may be the exact solution you’re looking for.

HR director or HR advisor?

The average cost for an HR Director in California in 2025 is about $200,000. An HR director is an essential role businesses should aspire to fill. But if your business isn’t in the ballpark yet, it doesn’t mean you should wait to take HR seriously.

Starting at just $250/month, our HR Advisory Services allow small businesses to take action. Plans are tailored to the needs of small businesses and include monthly advisory support with us – real people!

What are the risks of putting off HR tasks?

We are determined to make high-impact HR services affordable for your small business. Here’s why you shouldn’t put HR off:

Legal risks and lawsuits: Laws and regulations constantly change, and keeping up is hard! It is important to stay up-to-date to remain compliant and reduce your risk of employee-related lawsuits. Some examples include changes to wages and classifications, data privacy, and FMLA.

Morale: Forbes reports that productivity can increase by as much as 20% for happy employees compared to unhappy employees. Oftentimes, productivity leads to greater profit because more output is produced with fewer resources. Plus, who doesn’t want to work among happy coworkers?

Operational Inefficiencies: Are you consistently onboarding, offboarding, and performing evaluations? Or are you winging it as you go? Operational inefficiencies can drain time and money and create a poor employee experience.

Conflict & Image: When HR policies are not valued or enforced, it can lead to conflict between coworkers, employees, and the employer, which may also prompt employees to talk poorly about your company.

You Staying Stuck: Did you know that demonstrating confident leadership can lead to 15-20% higher employee satisfaction and retention rates, according to Gallup? Working with an HR advisor can boost your confidence so you can be more effective in your role. Don’t stay stuck at a crossroad – work with an advisor to transform your role.

For these reasons and more, it is increasingly important to prioritize consistent HR policies and practices. You are building your team and business for a reason, and neglecting HR jeopardizes your business’s potential.

Who are HR advisory services for?

We encourage you to hire an HR Director and/or support staff if possible. However, small businesses often need to get creative to obtain the support they need.

If you’re a small business with more than one employee or an entrepreneur newly navigating the hiring process , an HR Advisor is an excellent resource for you.

If you are an HR Director or HR Manager who needs additional support, such as monthly newsletters that can be written and sent to your team, or a monthly hour of advising, an HR Advisor is an excellent resource for you.

Getting started with an HR advisor

Our goal is to help you build your strongest business yet, with a firm foundation in HR. If you wish you had an HR advisor who could help you feel more confident in your role, please schedule a call with our five-star-rated team HERE.

We look forward to partnering with you!

BOOK AN HR ADVISORY SESSION

Triple Net Leases and Commercial Insurance Strategies: Structuring Policies for Landlords and Tenants

Tue, 19 Aug 2025 00:24:07 GMT

Over the course of my career, it’s become common practice to work with business owners who decide to purchase commercial real estate to house their operations. In many cases, the owner forms a unique and separate entity when taking ownership of the commercial property. They then lease the space back to their business, creating a lessor-lessee relationship between two entities with shared or common ownership.

When considering and devising these contracts in commercial real estate and business operations, a Triple Net (NNN) lease can offer significant strategic advantages but also introduces unique challenges for designing an effective insurance program. Often, a property owner (landlord) and a business operator (tenant) share common ownership but operate under separate legal entities. While this separation can reduce risk and streamline operations, it requires a nuanced approach to insurance coverage to protect each entity’s distinct interests. This post explores how Triple Net leases impact insurance strategies, offering insight into how landlords and tenants, even when commonly owned, can protect their interests with tailored coverage solutions.

Understanding the Distinct Insurance Needs of Landlords and Tenants

In a Triple Net (NNN) lease arrangement, the responsibilities and risks for landlords and tenants are delineated. However, the insurance needs of each party can vary widely, especially when the landlord and tenant are different entities under common ownership. This interest distinction often requires a well-structured and nuanced approach to ensure comprehensive protection.

For Landlords (Property Owners)

Landlords’ primary concerns revolve around protecting the physical structure of the property and maintaining liability coverage for incidents related to property ownership. Standard insurance policies for landlords typically include property insurance, which covers damages to the building caused by events such as fires, storms, or vandalism and loss of rental income due to covered perils. Liability coverage may also extend to injuries that occur on the premises.

Landlords must also consider their financial interests if the tenant defaults or the property becomes uninhabitable. In these cases, appropriate loss-of-rent coverage and other protective clauses may be necessary.

For Tenants (Business Operators)

Tenants in Triple Net lease arrangements are generally responsible for the cost of property taxes, insurance , and maintenance, placing more responsibility—and risk—on their shoulders. Their insurance needs to extend beyond basic liability and typically include coverage for the building (on behalf of the landlord), business personal property, tenant improvements, operational liabilities, and specialized coverages, depending on the nature of their business.

To safeguard the landlord’s interests, the lease may require them to maintain coverage that protects the building, even if they do not own it. This arrangement ensures that the building is covered under a policy the tenant manages, leading to efficiency but also necessitating careful consideration of limits, exclusions, and named insured arrangements.

When Common Ownership Exists

When the landlord and tenant entities share common ownership, the need for distinct coverage persists, but there are opportunities to streamline policies and reduce gaps. In these scenarios, it may be possible to design a policy that satisfies the obligations of both parties while maintaining clarity on who is protected and for what exposures. For example, adding the landlord as an additional insured or structuring the policy with a loss payable clause can help balance interests without duplicating coverage.

By recognizing these distinct needs, landlords and tenants can protect their investments, limit potential liabilities, and maintain compliance with lease requirements—all while minimizing the risk of insurance gaps or overlaps.

Leveraging the Business Owners Policy (BOP) Form for Triple Net Lease Scenarios

For landlords and tenants involved in a Triple Net (NNN) lease, particularly those with common ownership but separate operating entities, the Business Owners Policy (BOP) form can provide an effective and efficient insurance solution. With its bundled approach to covering property and liability risks, a BOP offers comprehensive protection, often at a more competitive price than standalone policies. Drawing from extensive experience utilizing BOPs in these arrangements, let’s explore their unique advantages.

What is a Business Owners Policy (BOP)?

A BOP is designed for small to medium-sized businesses and combines essential coverages into one policy. Typically, a BOP includes property insurance for buildings and contents, general liability coverage, and often offers options for business interruption insurance. This makes it a versatile solution for many commercial enterprises, particularly those operating within leased properties.

Advantages for Landlords

For property owners, a BOP can provide the necessary property coverage to protect the building against covered perils, including fire, vandalism, and certain natural disasters. Additionally, it extends liability coverage for incidents occurring on the premises, ensuring the landlord’s interests are safeguarded.

When the landlord entity is separate but shares common ownership with the tenant, a BOP can be further tailored to reflect the landlord’s risk exposure without complicating the overall insurance structure. For example, landlords can be added as additional insureds and loss payees on the tenant’s policy to ensure their liability is covered within the bounds of the tenant’s operations.

Advantages for Tenants

From the tenant’s perspective, a BOP provides robust protection for business operations, including general liability and property coverage for business personal property, inventory, and equipment. A well-structured BOP can address these obligations seamlessly in a Triple Net lease, where the tenant typically assumes responsibility for property insurance. By maintaining a single BOP, tenants can protect their business operations while fulfilling lease requirements to insure the landlord’s property interests.

Streamlining Coverage for Common Ownership

When landlords and tenants share common ownership, leveraging a BOP allows for strategic simplification and cost savings. Instead of maintaining separate policies with overlapping or redundant coverage, a BOP can unify critical protections while ensuring compliance with lease terms. This structure minimizes the risk of gaps and inconsistencies, particularly if the landlord entity is added as an additional insured or covered via a loss payable clause.

Customizable to Fit Unique Needs

BOPs are highly customizable, enabling both parties to tailor coverage limits, endorsements, and additional coverages based on their needs. Whether addressing potential liability exposures unique to business operations or enhancing property protections, a BOP’s flexibility ensures that interests on both leases are fully protected.

When a Triple Net (NNN) Lease May Not Be Ideal for Insurance Purposes

While Triple Net (NNN) leases offer a streamlined approach to managing property and operational responsibilities, they are not always the best fit for every insurance scenario. Certain circumstances and business arrangements may complicate coverage, create unexpected liabilities, or lead to gaps in protection. Here are some cases where a Triple Net lease arrangement may pose challenges from an insurance perspective:

1. Complex Property Risks

A Triple Net lease may complicate insurance placement if a property has specialized risks—such as those associated with hazardous materials, extensive renovations, or unique structural features. In such scenarios, the tenant’s responsibility to insure the property could leave gaps in coverage if their policy does not adequately address these complexities. Landlords may need to maintain a separate policy to ensure complete protection, creating potential redundancies or gaps.

2. High-traffic or Public-Facing Properties

Properties with high foot traffic or public access, such as retail spaces or entertainment venues, introduce significant liability exposures. While a Triple Net lease typically shifts responsibility to the tenant, a vital incident or liability claim could impact the landlord’s financial interests if the tenant’s coverage is inadequate. Ensuring the tenant maintains sufficient liability limits and coverage terms becomes critical but may introduce complications and heightened scrutiny.

3. Financial Stability of the Tenant

A tenant’s financial stability plays a crucial role in the success of a Triple Net lease arrangement. The property owner may be unprotected if a tenant faces financial difficulties or defaults on their insurance obligations. Landlords must carefully assess the tenant’s ability to meet insurance requirements over the long term and may need to secure separate coverage as a safeguard.

4. Highly Specialized Businesses

For highly specialized or niche businesses, such as those involving heavy manufacturing, healthcare services, or specific professional practices, the insurance needs may be complex and challenging to transfer to a tenant under a Triple Net lease fully. The nature of these operations might necessitate coverage beyond typical property and liability protections, potentially requiring the landlord’s involvement in securing adequate policies.

5. Lease Terms and Coverage Gaps

Poorly drafted lease terms or ambiguity around insurance responsibilities can create significant issues. If lease terms do not clearly specify the type and amount of insurance required or fail to account for key exclusions, the landlord and tenant could face coverage disputes or uncovered claims. Triple Net leases demand precise language and well-defined insurance responsibilities to avoid such pitfalls.

6. Multiple Tenants in Shared Buildings

Managing a Triple Net lease arrangement in properties with multiple tenants can become more complex from an insurance standpoint. The shared responsibilities for common areas, building maintenance, and liability coverage may be difficult to delineate. In such cases, landlords may prefer to maintain a master policy for the entire property while requiring tenants to carry separate policies for their specific operations.

7. Unexpected Catastrophic Events

While tenants are typically responsible for insuring the property under a Triple Net lease, large-scale catastrophic events (e.g., earthquakes, hurricanes, or flooding) may require additional coverage beyond a standard policy. If the tenant’s policy falls short or coverage is excluded, the landlord’s interests could be at risk. A separate landlord policy or additional protection clauses may be necessary in regions prone to such events.

By recognizing scenarios where Triple Net leases might not be optimal for insurance purposes, landlords and tenants can better evaluate their options and implement tailored coverage strategies that mitigate risk effectively.

Best Practices for Structuring Insurance in Triple Net Lease Arrangements

Effectively managing insurance under a Triple Net (NNN) lease arrangement requires careful planning, clear communication, and tailored policies that address the unique needs of both landlords and tenants. Here are some best practices to ensure comprehensive coverage while minimizing risk:

1. Clearly Define Insurance Responsibilities in the Lease

A well-crafted lease agreement is essential for avoiding ambiguity and ensuring all parties understand their insurance responsibilities. The lease should specify who is responsible for property insurance, liability coverage, maintenance costs, and additional endorsements or requirements. This clarity minimizes the risk of coverage disputes and ensures both parties are protected.

2. Regularly Review and Update Insurance Policies

Landlords and tenants should periodically review their insurance policies to align with current business operations, property values, and risk changes. Adjustments may be necessary to reflect new building improvements, tenant operations changes, or local regulatory requirements shifts. Regular reviews help to identify and close coverage gaps before they become problematic.

3. Work with an Experienced Insurance Broker

Navigating the complexities of insurance in a Triple Net lease arrangement can be challenging without professional guidance. Working with an experienced insurance broker ensures that all coverage needs are adequately assessed, policies are tailored to the unique arrangement, and emerging risks are addressed. Brokers can help craft policies with endorsements, additional insured clauses, and other coverage enhancements that best suit the interests of landlords and tenants.

4. Customize Policies with Endorsements and Additional Insured Clauses

Customizing policies is critical to effective risk management in Triple Net leases. For example, landlords can be added as additional insureds on a tenant’s liability policy, ensuring their interests are protected in case of claims arising from the tenant’s operations. Similarly, loss payable clauses can protect the landlord’s financial interests if there is damage to the insured property.

5. Assess Tenant Financial Stability and Risk Management Practices

Before entering into a lease agreement, landlords should assess a tenant’s financial stability and risk management practices. A tenant with solid financials and robust safety protocols is less likely to default on insurance obligations, reducing overall risk. Ongoing monitoring and open communication help to ensure continued compliance with insurance requirements.

6. Consider Specialized Coverage as Needed

Depending on the nature of the property and business operations, specialized coverage may be necessary. This could include earthquake insurance, flood coverage, or business interruption insurance tailored to meet the unique needs of the arrangement. Customizing coverage ensures that landlords and tenants are adequately protected against specific risks.

7. Maintain Open Communication

Maintaining open lines of communication between landlords and tenants is critical for keeping up with insurance responsibilities and changes in coverage needs. Regular check-ins and collaborative policy reviews can prevent misunderstandings, strengthen compliance, and promote mutual trust.

Following these best practices, landlords and tenants involved in Triple Net leases can work together to structure effective insurance programs that minimize risk, ensure compliance, and protect their interests.

Closing Thoughts: Protecting Interests with a Proactive Insurance Strategy

Triple-net (NNN) leases offer significant advantages for landlords and tenants, but they also come with unique insurance complexities. By understanding each party’s distinct needs, customizing policies to close potential gaps, and maintaining clear lease terms, landlords and tenants can protect their interests and minimize risk. Whether the arrangement involves common ownership or distinct entities, a well-structured insurance program is essential for peace of mind and long-term success.

Ready to Optimize Your Insurance Strategy?

If you’re navigating a Triple Net lease or exploring how to protect your business and property interests best, our experienced team is here to help. Contact us today to learn how we can tailor an insurance solution to your needs.

June is National Safety Month: Be Safe, Be Aware, Be Prepared!

Tue, 19 Aug 2025 00:23:52 GMT

June is National Safety Month, and we are delivering on our mission to help our clients reduce the likelihood of workplace injuries.

During June, Fusco Orsini & Associates will provide resources to raise awareness of workplace safety. We will provide safety tips and safety resources and bring experts in workplace safety and loss control to help.

As leaders in insurance and risk management for businesses across the nation, we will also spotlight clients that have a proven safety culture at their firms. Here are some of the questions we have asked:

What is the most crucial element that promotes a safety culture at your company?
How do you ensure ongoing safety for your employees?
Do you think your excellent safety history has contributed to the firm’s success?

We will highlight the following safety topics each week of June:

Week 1: Musculoskeletal Disorders
Week 2: Workplace Impairment
Week 3: Injury Prevention
Week 4: Slips, Trips, and Falls

Please remember to subscribe to our Youtube channel to receive alerts when new videos are published.

https://www.youtube.com/c/Foagency

You may also visit and bookmark our BLOG page to keep up with National Safety Month. https://foagency.com/blog/

Thank you again for visiting!

It’s Time to Understand Business Property Coinsurance and Secure Your Bottom Line!

Tue, 19 Aug 2025 00:23:17 GMT

As business owners, you’ve heard the term “coinsurance”, but if someone asked you to define it, you wouldn’t know how to answer. If this sounds like you, click the video link below and watch as Mike Fusco explains coinsurance, and the confusion surrounding coinsurance clauses. Mike uses the example of a building, which in many cases, is a business owner’s greatest asset.

If you have questions, or if you would like to discuss further, feel free to contact Mike using his scheduling tool below:

Musculoskeletal Disorders: The Leading Cause of Injury in the Workplace

Tue, 19 Aug 2025 00:23:08 GMT

Did you know that Musculoskeletal Disorders are the leading cause of injury in the workplace? They account for nearly 33% of all workplace injuries. That’s why preventing sprains and strains from happening in the first place is essential. In this blog post, we’ll discuss what Musculoskeletal Disorders are and how you can help your employees stay safe on the job. We’ll also provide some tips on employee safety training, so you can be sure that everyone is aware of the risks associated with Musculoskeletal Disorders. Thanks for reading!

WHAT ARE MUSCULOSKELETAL DISORDERS (MSDs)?

Musculoskeletal Disorders (MSDs) are a broad category of disorders that affect the body’s musculoskeletal system. The system includes the bones, joints, muscles, tendons, and ligaments. Repetitive motions, awkward positions, forceful exertions, and vibration can cause MSDs. They are often the result of cumulative trauma over time rather than a single event.

HOW DO I PREVENT MSDs FROM OCCURRING AT MY WORKPLACE?

There are many ways to prevent MSDs from occurring in your workplace. First and foremost, it’s essential to provide employees with safety training on the risks associated with MSDs. Employees should be aware of the symptoms of MSDs so they can seek treatment early on. Employees should also know how to lift, carry, and move objects properly to avoid strain injuries. Finally, having an excellent ergonomic set up in your workplace is crucial. Proper ergonomics means that employees can access adjustable chairs and desks, which can help them maintain appropriate good posture while working.

AVOID WORKERS’ COMPENSATION CLAIMS!

MSDs are costly for employers regarding workers’ compensation claims and employee productivity. Musculoskeletal Disorders can lead to absenteeism, presenteeism (when employees work but not at their total capacity due to pain or discomfort), and job turnover. All of these factors can have a significant impact on your bottom line.

HOW DO I SECURE ADDITIONAL INFORMATION ON MSDs?

We are here to help! As mentioned in our video, we are happy to provide you with a copy of our ‘Wellness Toolkit – Musculoskeletal Disorders.” Check out the National Safety Council’s website for more information on Musculoskeletal Disorders. You can also find helpful resources on the Occupational Safety and Health Administration’s (OSHA) website. Thanks for reading! I hope this blog post has helped you learn more about Musculoskeletal Disorders and how you can prevent them in your workplace. Thank you for visiting!

Understand your insurance audit in less than 6 minutes!

Tue, 19 Aug 2025 00:22:45 GMT

You own a business and carry general liability insurance. You renewed the insurance policy, and shortly after, you received a request to conduct a general liability audit from the insurance company. You are unfamiliar with the audit process and are unsure what to expect.

At Fusco Orsini & Associates, we understand the pain and frustration caused by insurance audits. Whether it be a general liability audit, a workers’ compensation audit, or an audit on other policy types, most business owners are unprepared. They don’t understand the reason for the audit. Watch and read today’s video and blog with our very own Mike Fusco.

Mike will help you understand your insurance audit in less than 6 minutes.

Why do insurance carriers audit general liability policies?

Insurance companies issue policies based on the estimated activity of the policyholders. For example, carriers provide general liability policies and price the policies on projected exposures, such as gross sales, gross payroll, gross sub-costs, and several other factors. Most policies are effective for 12 months. Once a policy ends, insurance carriers must audit to charge the correct premium for the exposure. It is essential to remember that although the policy expired, the business and insurance company’s liability did not.

Why do insurance carriers audit workers’ compensation policies?

The same holds for workers’ compensation policies. Insurance companies rely on projected employee counts, remuneration, and business operations to issue a workers’ compensation policy. In many cases, the estimates differ from those at the end of the policy year. Insurance companies audit the policies to collect the appropriate premium for the exposure presented.

What happens if my estimates are higher than the actual numbers?

After an insurance audit, the policyholder doesn’t always owe an additional premium. Workers’ compensation carriers, for example, will refund the money but will not refund beyond the minimum premium. Minimum premiums range, so you must understand yours. Most insurance policies include language that allows for the return of premium, but keep in mind that non-admitted carriers do not refund money.

What happens if I do not comply with my audit?

If you fail to comply with your insurance audit, you will suffer adverse consequences. Carriers can legally charge you up to three times your annual premium for a non-compliant audit. If you don’t perform your workers’ compensation audit, it will negatively impact your experience modification factor. A higher EMOD will leave you paying higher premiums for years to come.

How does Fusco Orsini & Associates help with insurance audits?

Our team understands that the audit process is confusing and time-consuming. We get involved in helping you work with the auditor. Furthermore, we provide tips throughout the year on preparing for an audit. And no business owner likes surprises, so we perform mid-term policy checks to ensure your estimates align with business activity.

Let’s face it – you DO NOT want to pay more premium at the end of the year due to an oversight. In cases where you cannot comply with an audit and receive a non-compliant bill, we assist in reopening and complying with the process. And finally, if you disagree with your audit results, we help with the dispute process.

How can I connect with the pros at Fusco & Orsini?

It’s easy! Complete the form below, and a member of our staff will contact you! Thank you again for visiting, and we look forward to speaking soon!

Modern Day Insurance Underwriting and How it May Impact Your Company

Tue, 19 Aug 2025 00:22:24 GMT

Almost all companies utilize the Internet to promote their business. Online tools include customized websites, Facebook, Yelp and Twitter, among many others. For small businesses, the Internet provides valuable resources to improve visibility and credibility. However, although there are many positives associated with advertising online, there are also negatives. When it comes to modern-day insurance underwriting, a company’s online presence may cause an increase in premium, or may even hinder their ability to secure coverage.

First, the image a business creates on a company website may drastically alter the underwriting process. For example, many small construction companies upload images of larger scale projects on their page. In many cases, they do so to seem larger and more established; however, an insurance underwriter may view this as increased risk and exposure. Other examples include restaurants with pictures of crowded dance floors, or mechanics with information on their website regarding a towing service. When creating your company website, please remember that an insurance underwriter WILL review it before offering a policy.

Next, social media has become a major component of advertising for many businesses. Facebook is used to promote events or products. At times, your business may be perceived differently than what you intended based on social media promotions.

Finally, Yelp must be monitored, and any inaccuracies should be disputed. Although you may not be able to control all posts, it is important to keep track. An insurance underwriter will search for Yelp reviews, and in some cases, may use such reviews to assess risk.

We’ve witnessed many recent examples of businesses that have been declined coverage due to information posted online. In other cases, we’ve worked with businesses that received increased premiums, and changes to their rating basis, because of websites, Facebook pages, and Yelp reviews. It is common that the information is not accurate, but to an insurance underwriter, the Internet is a third-party resource that the business helps create.

In summary, make certain that the image created online for your business is accurate. This includes images, reviews, product offerings, services provided, and even experience of the business owners and employees. If you have questions surrounding this topic, feel free to contact us.

An Introduction to Bonding for Contractors: Understanding Surety Bonds and Indemnification

Tue, 19 Aug 2025 00:22:14 GMT

In 2024, I had the privilege of helping contractors secure over $12 million in surety bonds, allowing them to take on significant projects, earn profits, and grow their businesses. Many of these clients were new to bonding and unsure where to begin. Guiding them through securing their first payment and performance bonds was rewarding and a reminder of how necessary bonding is to the success of contractors in the construction industry.

Through this journey, I’ve noticed that one of the most significant areas of confusion for contractors revolves around indemnification, particularly the general indemnity agreements required by surety companies and the necessity for personal indemnification. In this blog, I want to demystify bonding and address these key concerns to help more contractors understand how bonds work and how they can benefit their businesses.

What Are Surety Bonds and Why Do Contractors Need Them?

Surety bonds play a critical role in the construction industry. They guarantee that contractors will fulfill their contractual obligations. They assure project owners (obligee) that the contractor (principal) has the financial backing and expertise to complete a project as agreed.

The Three Parties Involved

Every surety bond involves three key parties:

Principal: The contractor purchasing the bond and performing the work.
Obligee: The project owner or entity requiring the bond, often a government agency or private developer.
Surety: The company issuing the bond, which guarantees the principal’s performance and payment obligations.

Types of Surety Bonds

Bid Bonds: Guarantee that a contractor will honor their bid and provide the required performance and payment bonds if awarded the contract.
Performance Bonds: Ensure the contractor completes the project according to the agreed terms.
Payment Bonds: Protect subcontractors and suppliers by guaranteeing they’ll be paid for their work and materials.
Maintenance Bonds: Cover defects or repairs after project completion

Why Are Surety Bonds Essential?

Surety bonds are often required for public and large private construction projects. They demonstrate a contractor’s credibility, financial stability, and commitment to fulfilling contractual obligations. Contractors may miss lucrative opportunities without bonding, as many project owners won’t even consider bids from unbonded companies.

By investing in bonding, contractors protect their clients and enhance their reputations, paving the way for business growth and stability. In the next section, I’ll walk you through what contractors can expect during the bonding process, especially if it’s their first time securing a bond.

The First-Time Bonding Process: What to Expect

Securing a surety bond for the first time can feel daunting, especially for contractors unfamiliar with the process. However, with the proper guidance and preparation, obtaining a bond is straightforward and can unlock significant growth opportunities for your business.

Prequalification: Laying the Groundwork

Before issuing a bond, surety companies require a thorough evaluation of your business to determine your financial stability and ability to complete the project. Here’s what they’ll look for:

Financial Statements: Audited or reviewed financials that show your company’s profitability, liquidity, and net worth.
Work History: A track record of successful projects, including references and details about your experience.
Creditworthiness: Both business and personal credit scores may be reviewed to assess reliability.
Business Plan: A clear plan for how your company operates and manages risks.

Pro Tip : If you’re a smaller contractor or new to bonding, ask about express bonding programs. These programs simplify the underwriting process and often allow contractors to secure bonds within a specific limit without extensive financial documentation. They’re a great way to start quickly while building your bonding history. As of 1/1/2025, our favorite express bonding program raised their single job and aggregate limit to $1,000,000! Once approved, our agency has power of attorney privilege to issue final bonds from our office.

The Application Process

Choose a Surety Agent or Broker: To navigate the process, work with a trusted bonding professional (like our team).
Submit Required Documents: Provide financial statements, proof of project history, and any other requested paperwork.
Surety Underwriting: The surety evaluates your submission and determines your bonding capacity—how much work you can handle and the size of bonds you qualify for. Pro Tip: Look into express bonding programs if you’re starting or need a quicker option. These programs often allow smaller contractors to secure bonds up to a set limit with minimal documentation, making it easier to start while establishing your bonding history.
Approval and Issuance: Once approved, the surety issues the bond, and you’re ready to proceed with your project.

Tips for Contractors New to Bonding

Be Transparent: Honesty about your business’s strengths and challenges builds trust with surety.
Stay Organized: Keep financial records, project histories, and other documentation current and easily accessible.
Plan for Growth: View bonding as an investment in your company’s future, allowing you to take on larger, more profitable projects.
Explore Express Bonding Programs: For contractors new to bonding, these streamlined programs can be a great way to secure bonds quickly while building your bonding track record.

First-time bonding may take extra effort but sets the stage for long-term success. With proper preparation and support, you can secure the bonds you need to build your business and strengthen your reputation. In the next section, I’ll address indemnification, one of the most misunderstood bonding aspects.

The Role of Indemnification in Surety Bonds

One of the most misunderstood aspects of bonding is indemnification. When a surety issues a bond, they take on a financial risk on behalf of the contractor. Indemnification is the mechanism that protects the surety company if a claim is made against the bond. Understanding this concept is crucial for contractors, especially those new to bonding.

What is a General Indemnity Agreement (GIA)?

A General Indemnity Agreement (GIA) is a legal contract between the contractor (and possibly other indemnitors) and the surety company. By signing a GIA, the contractor agrees to:

Reimburse the Surety: Cover any costs the surety incurs if they must pay a claim or defend against one.
Provide Collateral: Offer financial support to the surety if a claim appears likely or imminent.
Authorize Surety’s Actions: Grant the surety the right to settle claims or take action to mitigate losses.

The GIA ensures that the surety will not bear financial losses for claims caused by the contractor’s failure to meet contractual obligations.

Why is Personal Indemnification Required?

Personal indemnification is often a sticking point for contractors, but it’s a necessary part of the bonding process, especially for smaller businesses or new contractors. Here’s why:

Shared Accountability: If the contractor’s business cannot fulfill its obligations, the personal assets of the business owner(s) provide a safety net for the surety.
Trust Building: Personal indemnification demonstrates commitment and accountability, reassuring the surety of the contractor’s dedication to completing projects responsibly.
Mitigating Risk: Sureties must protect themselves from financial exposure, and personal indemnification reduces their risk when working with less established businesses.

Note: If the contractor firm is owned by another entity, the surety may require indemnification from the parent company instead of—or in addition to—individual owners. This ensures the surety still has a reliable source of financial backing if claims arise. The exact requirement will depend on the structure and financial standing of the parent entity.

Common Misconceptions About Indemnification

“The Surety Will Cover All Losses”: A surety bond is not insurance; it’s a guarantee. The contractor is ultimately responsible for any claims paid by the surety.
“Personal Indemnification is Overkill”: Personal indemnification is standard industry practice, especially for privately-owned businesses or contractors without significant bonding history.

How to Navigate Indemnification Requirements

Understand the Terms: Review the GIA carefully and seek clarification on any points you don’t understand.
Communicate Openly with Your Surety Agent: Discuss your concerns and work together to find solutions that protect both parties.
Strengthen Your Business Financially: Demonstrating solid financial health can help reduce the need for extensive personal indemnification over time.

Indemnification is a cornerstone of the bonding process, ensuring the surety can confidently back your projects. By embracing it, contractors can access opportunities that might otherwise be out of reach. In the next section, we’ll explore the broader benefits of bonding and how it can help your business grow.

Benefits of Bonding for Your Business

Securing surety bonds is more than just meeting a requirement—an investment in your business that can yield significant advantages. Whether you’re a small contractor starting or an established company looking to scale, bonding offers a range of benefits that can elevate your reputation and open new opportunities.

1. Increased Credibility and Trust: Surety bonds demonstrate to project owners that you are financially stable, reliable, and committed to completing projects as agreed. This credibility can set you apart from unbonded competitors and build stronger client relationships.
2. Access to Larger Projects: Many public works projects and more significant private developments require bonded contractors. Without bonding, you may be excluded from bidding on these lucrative opportunities. A solid bonding history expands your eligibility for more extensive and profitable projects.
3. Protection for Clients and Partners: Surety bonds assure project owners, subcontractors, and suppliers will be protected if contractual obligations are not met. This safety net fosters trust and reduces risk for everyone involved.
4. Strengthened Financial Management: The bonding process often involves a detailed review of your business’s financial health and operational practices. Meeting these standards can help you identify areas for improvement and strengthen your overall business operations.
5. Competitive Advantage: Being bonded can serve as a selling point in a competitive market. It signals professionalism and accountability, qualities many project owners prioritize when selecting contractors.
6. Long-Term Business Growth: As you complete bonded projects successfully, you build a track record of reliability. This can lead to increased bonding capacity, allowing you to take on even larger projects in the future. Over time, bonding becomes a catalyst for sustained growth.

By leveraging bonding’s benefits, contractors can position their businesses for success while providing peace of mind to their clients. In the final section, I’ll explain how my team can help contractors navigate the bonding process and address any challenges they may face.

How Fusco Orsini & Associates Can Help

Navigating the bonding process can feel overwhelming, especially if you’re new to it or dealing with complex requirements like indemnification. That’s where Fusco Orsini & Associates comes in. With years of experience helping contractors secure surety bonds, we provide the expertise and personalized support you need to succeed.

Here’s how we can assist you:

Guidance for First-Time Bonding: We’ll walk you through every step, from prequalification to issuance, ensuring you understand the process and requirements.
Customized Bonding Solutions: Whether you need a bid bond, performance bond, or payment bond, we tailor our approach to meet your specific needs.
Expertise in Indemnification: We’ll help you navigate indemnity agreements, answer your questions, and ensure you’re confident in your commitments.
Support for Growth: As your bonding history and capacity grow, we’ll help you secure larger bonds and access bigger opportunities.
Preapproval and Bonding Capacity: We can work with you to secure preapproval from sureties, giving you confidence when bidding on projects. Additionally, we’ll help establish your bonding capacity, so you’re prepared to take on larger contracts as your business grows.

Call to Action

Ready to explore the benefits of bonding for your business? Complete our form today to discuss your needs and get started. Whether you’re new to bonding or looking to expand your capabilities, we’re here to help. Thank you for visiting!

What is a Mock OSHA Inspection and How Can It Benefit Your Business?

Tue, 19 Aug 2025 00:21:43 GMT

The Occupational Health and Safety Act (OSHA) ensures employers provide employees with a safe work environment. This law sets standards for workplace safety, compliance, and best practices.

Why conduct a mock OSHA inspection?

Businesses might choose to conduct their own mock OSHA inspection for various reasons. A mock inspection can help prepare an organization for an upcoming accurate inspection. It allows them to make changes in a lower-stakes environment. An organization might also choose to conduct a mock inspection to improve its safety practices and understand improvements that the firm can make. Additionally, a mock inspection can help a business avoid citations for noncompliance by finding and addressing issues in advance.

How can a business prepare for an OSHA inspection?

In most cases, businesses will not know when an inspection will occur.

OSHA inspections are either programmed or unprogrammed.

A programmed inspection is scheduled and based on objective criteria. High-risk industries or businesses that work with dangerous substances rarely perform programmed inspections.

Reports of hazards usually trigger an unprogrammed inspection. The priority of order for these incidents is imminent dangers, fatalities or catastrophes, and employee complaints/referrals. An additional unprogrammed inspection often follows these inspections to check that the business fixed any violations.

What does an average OSHA inspection include?

Inspector Arrival – The compliance officer will arrive at the organization during regular business hours and provide their credentials. The inspector must have the employer’s consent or a warrant to enter the premises.

Opening Conference – The inspector, employer, and employee representatives gather to discuss the following:

The purpose of the inspection
Complaints against the employer
The scope of the inspection and the plan
Rights of all involved parties, including the inspector, employer, and employees

Walk-around – Employers and designated employee representatives can accompany the inspector as they walk around the workplace. The compliance officers will observe and document any violations they see.

Closing Conference – The parties will discuss the inspector’s findings, including the strengths and weaknesses, violations, and any plans for follow-up discussions.

How can a business use the results of a mock inspection to make improvements?

Predicting when OSHA inspectors might visit your business is challenging. That’s why being proactive with a mock inspection can be so helpful. Staying ahead of issues will help ensure your organization is within compliance benchmarks, protect you from citations, and protect your employees from accidents.

Are you interested in conducting a mock OSHA inspection? Contact our team HERE, or complete the above form, and someone will contact you to discuss this further.

Source: Zywave “OSHA Inspections”

Video: California Contractors – 5 Things You Should Know Before You Get Audited

Tue, 19 Aug 2025 00:21:37 GMT

We wouldn’t have gone into business if it weren’t for California Contractors. We started and built our business around helping these folks cover their bases when it comes to insurance and prepping for audit season. Watch the video and scroll through these for tips to learn more.

1. Ensure you have proper time cards including:

Employees name
Hourly wage
The trade they’re performing
The time they started and ended work
Lunch out and lunch in times

Tip: If using an app, make sure you also print out those records for your auditor.

2. To avoid getting charged for a subcontractor’s worker’s compensation insurance:

Make sure you have proof of their workers comp insurance. *If exempt, print a copy of their license showing they’re exempt at cslb.ca.gov.

3. Avoid $50,700 charges

In 2017, the exclusion rules changed. Be sure you have the proper exclusions on file because if you don’t and you get audited, expect a minimum $50,700 charge for payroll against your work comp premium for each member that’s no longer excluded, eek!

Today, here’s what you need to be/have in order to be excluded:

Corporation officers must own 15% or more, with a valid waiver form on file with a workers comp carrier
If an LLC, you need to be a managing member
If a partnership, you must be a qualifying partner

4. Be aware of these class codes you can’t split:

In other words, if an office staff person works 90 percent in the office and just 10 percent on a construction site, they will be reclassified to a construction trade and you will be charged a difference on the premium. These class codes are:

a. 8742, outside salespeople

b. 8810, clerical office staff

These team members cannot visit job sites, deliver materials to job sites, etc. or they will be reclassified.

Fusco & Orsini is here to help CA Contractors. We keep you posted and prepared in advance of audits with email reminders and we’re always just an email or phone call away.

Mimosas: Not Just for Breakfast Anymore

Tue, 19 Aug 2025 00:20:59 GMT

If you thought a mimosa was just a half-OJ, half-champagne combo to accompany brunch, you probably limited its importance to Easter, Mother’s Day, and bridal showers.

But, believe it or not, this tangerine-tinted aureate laureate owns a day on the calendar – May 16th – National Mimosa Day.

Defining the idea that “simple is elegant,” a mimosa can be as straightforward as equal parts orange juice and champagne, possibly how it’s become such a go-to cocktail for labor-intensive occasions.

Want something more colorful? Use blood oranges, a fruit originating in Sicily and Spain, and chill the prosecco!

Recipe for Blood Orange Mimosa

from The Food Network

1 bottle Prosecco

1 ½ Cups fresh blood orange juice

1 Tablespoon super-fine granulated sugar

2 Tablespoons Grand Marnier orange liqueur

Chill the Prosecco. Combine fresh blood orange juice with sugar and orange liqueur and stir. Cover and refrigerate until chilled. To serve, pour into the bottom of champagne glasses and slowly top off with ice-cold Prosecco.

If you own a bar or restaurant, National Mimosa Day allows you to pour it on for your customers with some of your own impressive combos. It has all the ingredients of a party day, but keep in mind – there’s no bigger party pooper than finding out – when it’s too late – that your booming bar business is underinsured.

Fusco & Orsini offers bar and restaurant coverage for the unforeseen, from a natural disaster to a customer relations accident. There are tremendous liabilities involved when you’re in the food and beverage business and need appropriate insurance coverage.

By letting Fusco & Orsini handle damage control, you can focus on wine tasting, meal planning, and supervising servers while we handle mishaps involving equipment, legal issues, or property damage. Email/text Mike on our team at mike@foagency.com or 858-384-1506 to get started!

There’s no better time to make it a brunch to remember, and here’s to your customers sipping citrus on National Mimosa Day when the only thing bubbling over is the champagne.

Want To Lower Workers’ Compensation Rates? Implement A Construction Safety Program

Tue, 19 Aug 2025 00:20:59 GMT

Companies throughout California are struggling with sticker shock as workers’ compensation insurance rates continue to skyrocket. Workers’ comp rates can be a particularly large burden to companies with a high risk of injury, like construction and manufacturing companies.

Wouldn’t you like to decrease the cost of your workers’ comp insurance? Then consider implementing a strict safety program. If safety programs were adopted in high-risk industries on a larger scale, more carriers would be willing to ensure more companies. This increase in competition would help push workers’ comp rates down. Additionally, companies following a strict safety program would experience fewer workplace injuries. Fewer injuries mean fewer claims and fewer payouts, which would allow insurance companies to lower their worker’s comp rates.

So, what would a good safety program look like?

Commitment

Most importantly, the company’s management team needs to fully commit to implementing its safety program. It doesn’t matter if your company comes up with the very best, air-tight safety program if management isn’t willing to implement it and hold themselves accountable to it.

Safety Manual

Develop a comprehensive safety manual that lays out all aspects of the safety program in a clear manner. The safety manual should include all safety rules, policies, and procedures. Distributing the manual to employees is an important step, but it’s not enough. You need to make sure the manuals aren’t just collecting dust in a desk drawer. Make sure your employees read the manual, understand it, and are committed to the objectives of the manual.

Safety Committee

A safety program has a much higher chance of working if someone or a small group is put in charge of implementing and maintaining the safety program. This is your safety committee. Depending on the size of your company, you may pick one individual or a handful of employees and task them with upholding the safety program. These individuals will be in charge of training new employees on the safety program, providing yearly refresher courses, monitoring safety throughout the business, investigating injuries or reports of unsafe conditions and making sure that the program is being followed.

First Aid Procedures

Keep first aid materials on site, including first aid kits and an AED device. We also encourage you to offer first aid training to employees or reimburse them for first aid and CPR training classes.

Accident Investigation

Accidents are inevitable in any business. When one does occur, you’ll want your safety committee to perform a full investigation to determine the causes and to make specific recommendations on how to prevent similar accidents in the future. Learning from the accidents today is the best way to prevent them from happening again tomorrow.

Keeping Records

Records are critical in determining whether or not the overall safety of your company is improving. Employees need to record safety checks and document any safety concerns or issues that they find. If an accident does occur, these records will help your safety committee figure out what happened, why it happened and how it can be prevented.

Visibility and Accountability

We recommend posting safety rules and policies in highly visible places throughout the company and to provide regular reminders and refresher training so employees keep safety needs top of mind. You might also want to implement accountability measures to help incentivize employees to follow the policies. This could include rewards when no injuries are reported for a specific length of time or strict punishments if an employee is caught ignoring the safety rules, policies, and procedures.

Fewer injuries are not only good for employees and business owners, but it could also lower expensive workers’ comp premiums if businesses throughout California commit to a safety program in the workplace.

How to Have a Happy and Safe Fourth of July

Tue, 19 Aug 2025 00:20:09 GMT

Did you know that 280 people go to the emergency room with fireworks-related injuries every day during the month surrounding the 4th of July? The US Consumer Products Safety Commission publishes an annual report detailing the previous year’s firework-related deaths, injuries, and law enforcement activities.

But during this celebratory time, we must watch out for more than fireworks. We must also be careful while grilling outdoors, participating in summer sporting activities, swimming at a friend’s house, and mowing the lawn before a big backyard BBQ.

So what do we have to learn from all of this? There’s a lot of fun to be had during the holiday weekend, but also the potential for injury, even participating in commonplace activities that we might enjoy any weekend during the summer. That’s why we’ve compiled a list of 10 tips for staying safe while having fun.

Keep the drinking to a minimum – and be sure alcohol is out of the hands of teens. In past years, teen boys’ alcohol-related trips to the ER doubled on this holiday.
Stretch appropriately before any outdoor recreation and wear protective gear – even if it makes you feel silly.
Sparklers can burn at 2,000°F, so please supervise your young ones and use the activity as an opportunity to teach fire safety.
Keep a bucket of water on hand in case of a fire mishap.
Use sunscreen liberally and often.
Stay hydrated. If you’re hosting your shindig, try “spiking” your water with cut-up fruit or herbs.

Lastly, take it easy. Holidays can be stressful, especially if you are trying to host your own celebration (and thank goodness for homeowners insurance for keeping our household assets protected!). Remember that it’s all about family and friends and celebrating the spirit of independence. Enjoy!

Loss Run Reports: What are they and what do they mean for your business insurance

Tue, 19 Aug 2025 00:19:48 GMT

Loss Run Reports: What are they and what do they mean for your business insurance?

A loss run report is a document that summarizes the insurance losses of a policyholder. The insurance company compiles the report and usually sends it to the policyholder or agent. It contains information such as the date, type of loss, amount of each loss, and other pertinent details. Loss run reports are essential because they provide an overview of a company’s claims history. This information helps insurance professionals and underwriters determine if a company is eligible for certain types of coverage, how much premiums should be, and whether or not to renew a policy.

WHAT IS A VALUATION DATE ON LOSS RUN REPORTS?

If you look closely at your loss run report, you will notice a ‘valuation date’ listed on the document. The valuation date is crucial because underwriters require valued loss runs within 60-120 days of the policy effective date.

IRMI defines a loss runs valuation date as follows:

the cutoff date for adjustments made to paid claims and reserve estimates in a loss report. For example, a workers compensation loss report for the 2013 policy year that has a 2015 valuation date includes all claim payments and changes in loss reserves made prior to the 2015 valuation date.

WHY ARE VALUATION DATES IMPORTANT FOR LOSS RUNS?

As claims develop, loss run reports change. Further, insurance carriers often pick up losses and open claims after the policy expiration.

Each year before policy renewal, it’s important for your agent to review loss runs for any changes to claims activity. For example, a loss report for a general liability policy effective 1/1/2021 to 1/1/2022 and valued on 11/1/2021 may show different activity when printed on 11/1/2022. Even if the loss runs were clean in the past, that does not mean claims didn’t occur after the policy expiration date. Loss runs will also show when open claims are closed and final payouts and losses incurred.

HOW DOES FOA HANDLE LOSS RUN REPORTS

Customers of FOA do not need to worry about ordering their loss run reports. When necessary, our staff will request and file the reports accordingly. We will also provide them to underwriters when requesting proposals and researching the market.

Sometimes, we advise an insured if we believe they may be unaware of a claim. We also warn clients if we think their loss history will adversely affect their insurance options.

Loss runs are a vital document utilized day-in and day-out at Fusco Orsini & Associates.

HOW CAN WE HELP?

We hope you found this information helpful and that we answered the question:

Loss Run Reports: What are they and what do they mean for your business insurance?

If you are looking to make a change and hire a new agency, FOA has software available to secure loss runs without the intervention of your current insurance representative.

You may reach us at 858-384-1506, at hello@foagency.com, or by completing the form below.

Thanks again for visiting us!

What are the Differences Between a Commercial Package Policy and a BOP?

Tue, 19 Aug 2025 00:19:08 GMT

Business owners have many decisions to make when running their businesses, from inventory management and human resources to insurance and risk management. It can be challenging to know what kinds of insurance coverages are the best to purchase for your small business.

You may have heard of two main types of package policies – the Commercial Package Policy and the Business Owners Policy. But what are the differences between these two types of packages, and which is best for your small business?

Read on to learn more about these commercial policies, which are best suited for your business, then reach out to the experts at Fusco, Orsini & Associates for more help.

Both the Commercial Package Policy and the Business Owners Policy offer certain benefits for small business owners. Each policy type is best suited for different types and sizes of businesses.

Commercial Package Policy

The Commercial Package Policy (CPP) allows business owners to package several commercial policies into one Commercial Package Policy. For larger or growing companies, or for companies with specialized risks, the CPP may be the better choice when compared with the Business Owners Policy.

What Coverage Types Does the CPP Bundle?

The CPP form allows for the bundling of several policy types. Policyholders can determine which coverages they need based on their risks and exposures and package the relevant policies together.

Property insurance and commercial general liability are the two essential policies that usually form the CPP base as most businesses need these coverages. From there, insurance professionals add additional coverage as required:

Business interruption
Building
Business Personal Property
Cyber and Privacy
Equipment breakdown – also known as Boiler and Machinery
Employment practices liability
Garagekeepers
Hired & Non-Owned Automobile Liability
Liquor Liability
Professional Liability
Tenant Improvements and Betterments
Other specialized coverages as required by the type of business

What Coverage Types Does the CPP Not Include?

While the CPP includes many different coverage types, there are four insurance types that a CPP never comprises. If you need these coverages, talk to your agent about purchasing them separately.

Directors & Officers Liability
Workers’ Compensation
Life Insurance
Health and Disability Insurance

What are the Benefits of the CPP?

The CPP is a good choice for businesses with complex needs or those with unusual risks. Growing companies may find the CPP’s flexibility helpful as they expand into new markets or different products, which introduces unknown risks.

The CPP offers the ability to bundle many more types of policies than the BOP, making it attractive to policyholders who need these various coverages. The CPP is more complex than the BOP; however, if your business does not require additional coverages, the CPP may not offer any other advantages over the BOP.

Business Owners Policy

A Business Owners Policy (BOP) is a popular package policy that includes various commercial coverages like general liability, property damage, and business interruption (business income). Insurance companies designed the BOP for small businesses, so if your business is too large, a BOP would not be the right choice. The BOP also covers fewer risks than the CPP and is better suited for companies with less specialized risks. Many business owners find the BOP sufficient for their insurance needs.

What can be Bundled Together in the BOP?

The BOP consists of three policies bundled together:

Commercial General Liability – covers if someone is injured at your business or from the use of your products or services
Property Damage – this is designed to cover damage to property such as your buildings, fences, inventory, equipment, and more
Business Interruption – Business interruption or business income insurance replaces your business income if a covered loss causes you to close or relocate your operations. Business interruption cover has been in the news lately due to pandemic restrictions on this coverage, but it remains essential coverage to have.

What Does the BOP not Include?

The BOP does not include several essential coverages that you may need as a business owner, including professional liability, commercial auto, Workers’’ Compensation, crime, equipment breakdown, and other specialty coverages.

What are the Benefits of the BOP?

The BOP is an excellent choice for customers who have smaller businesses and have simple insurance needs that align with other companies of their same type. Because the BOP design meets many general commercial needs, it appeals to many standard businesses with similar risk profiles.

The BOP may provide sufficient cover for the lifetime of your business, or it may be an intelligent way to secure necessary coverage when just starting. Once your business grows and increases in complexity, switching to the CPP to take advantage of the additional coverages you can bundle may be a savvy business move. Still, for many business owners, the BOP will continue to meet their needs.

You may also find the BOP meets your needs with the additional purchase of one or two key policies, such as Workers’’ Compensation and Commercial Auto. You do not need to purchase a CPP to add these different policies; instead, they can be added separately as necessary while retaining the BOP for your general liability, property damage, and business interruption coverage.

Final Thoughts

Business Owners’ policies and commercial package policies both afford protection to business owners. Which package policy you select depends on your business’s size, complexity, and unique risks.

Both types of package policies simplify your coverage by bundling different policies together, streamlining the insurance experience for you as the customer. If you have simple risks and a smaller business, the BOP may suit your needs and is an efficient and effective solution for many small business owners. The BOP is an approachable way to seek coverage for your business and fits many small business owners’ needs throughout their companies’ lives.

If you find you have unique risks that set your business apart from others, or if your business is large and growing, the CPP may be a better package policy for your business. It offers more flexibility to customize the coverages you purchase better, reflecting some businesses’ varied nature. As your needs change, the CPP can change with you by adding various coverages and removing others.

With both types of package policy, there will be some coverages you may need that are not part of the package. In those cases, you will need to purchase those policies separately. Workers’ Compensation and health insurance are examples of coverages that cannot be bundled into either the BOP or CPP and would require separate policies if the cover is needed.

Because the nuances may be slight between the BOP and CPP depending on your business needs, contact your insurance agent to discuss options.

How do I Learn More?

Now that you know more about commercial package policies and Business Owners’ policies, you can contact Fusco, Orsini & Associates for more information. Our licensed professionals will be happy to answer any questions you have.

External Links:

https://www.iii.org/article/understanding-commercial-package-policies

https://www.irmi.com/term/insurance-definitions/businessowners-policy

https://www.iii.org/article/what-does-businessowners-policy-bop-cover

How Can Loss Control Audits Improve Your Bottom Line?

Tue, 19 Aug 2025 00:18:08 GMT

What is a Loss Control Audit?

A Loss Control Audit is a process that organizations and insurers can use to evaluate and reduce risks that might lead to potential losses. Risk management professionals carry out these audits and advise on hazards or safety protocols that may need to be improved.

Why might an organization conduct a Loss Control Audit?

1. Your insurance company requires it! When conducting loss control audits for insurance purposes, the auditor assesses the policyholder’s operations and risk management practices to determine appropriate insurance coverage and premiums. A robust risk management program can often lower your organization’s premiums.

2. You want to prevent accidents before they happen. Accidents and injuries can cost you time, money, and resources. Strong safety practices, such as well-developed safety programs, protective footwear, signage indicating risks, safety nets, safety checks, and reports, can help protect your employees and reduce the likelihood of accidents.

3. You have been experiencing an increase in preventable accidents. These accidents can sometimes occur with no apparent cause. A third-party expert can provide an outside perspective to help you identify the source of accidents and solve the problem.

4. You want to ensure that your company meets all compliance requirements. Compliance standards are ever-evolving. When you meet all regulations, you can lower your risk of regulatory penalties, lawsuits, or damage to your reputation.

What happens during a Loss Control Audit?

1. Preparation – This step usually includes scheduling the audit and providing documentation, such as safety procedures, training records or loss history that the audit team will review.

2. Inspection – This takes place on-site at the organization and reviews operations, equipment and potential hazards

3. Risk Assessment – Based on potential hazards identified in the inspection, the audit team assesses the overall effectiveness of their risk management strategies. The team also may conduct interviews with team members.

4. Findings and Recommendations – The audit team will compile their findings and recommendations into a detailed report with suggestions to improve risk management efforts.

5. Plan of Action – Using the audit team’s findings, the organization can develop a plan and a timeline to address the recommendations.

Want to understand better how a loss control audit will work for your organization? Or are you hoping to improve your risk management practices? Contact our team HERE, or complete the below form, and someone will contact you to discuss this further.

What is the Private Passenger Automobile Giveback Program?

Tue, 19 Aug 2025 00:17:41 GMT

Good morning,

I hope this update finds you and your family in good health.

As we continue to move through these unprecedented times, our job as your insurance agents continues to evolve as well. Please know that, like you, this is new to us. Before we share information, I want to make sure my team and I have a complete understanding so we may answer your questions accordingly.

Beginning this week, our agency received guidance from a few of our carrier partners about private passenger automobile giveback programs. In short, some insurance companies communicated that they would be refunding their clients a percentage of policy premiums due to lower usage of autos – and rightfully so. From the releases I’ve read thus far, the refunds are a percentage of one or two month’s premiums, and the insurance companies will send them directly to the policyholder.

Last evening, I started to build a webpage detailing each carrier’s plans. I intend to complete the initial page by tomorrow and will share the link with you once it’s ready. Please note, the webpage will evolve as we receive additional information from carriers about their giveback programs. As to not burden you with an email each time I update the page, I ask you to please bookmark the page and revisit it often.

Please expect one additional email from me this week once I complete the webpage. If you are not on our email list, we encourage you to like our Facebook page and adjust the settings to “see first” for ongoing updates.

Step 1:

Step 2:

Thank you for your time and patience as we work diligently to support you and communicate real-time updates. Don’t hesitate to reach me with your questions or comments.

All the best,

Mike

Los Angeles Fire Resources

Tue, 19 Aug 2025 00:17:21 GMT

UPDATED AS OF 1/30/2025 @05:57 PM PST

Our thoughts are with everyone affected by the devastating fires in Los Angeles County.

We hope you all stay safe and follow the evacuation orders issued by authorities to avoid danger.

The team at Fusco Orsini & Associates is here to help. Please don’t hesitate to reach out if you need help with a claim or have any questions. We’re happy to assist, even if your inquiries concern a policy we do not service.

Please feel free to get in touch.

CALIFORNIA DEPARTMENT OF INSURANCE

Once a state of emergency has been declared and a property is determined be a total loss, existing California insurance law requires certain advance payments to claimants which include:

Payment of Contents Without Inventory: Existing law requires insurance companies to advance funds for replacing personal property or contents in an amount that is 30 percent of the policy’s dwelling limit, up to $250,000, without requiring the policyholder to file an itemized claim. Insurers are required to automatically notify policyholders of this option upfront. After receiving the advance payment for contents, the policyholder can recover the full value of their destroyed personal property, up to their policy limits, by complying with documentation requirements.
Additional Living Expense (ALE) Advance Payment: Existing law requires insurers to provide their policyholders with an advance payment of no less than four months of living expenses. This also applies to California FAIR Plan policies, which use the term “FAIR Rental Value” instead of ALE
Commissioner Lara advises wildfire survivors of County debris removal program: As Los Angeles County announced the start of cleanup from the recent devastating wildfires, Insurance Commissioner Ricardo Lara today informed wildfire survivors that the program will not impose out-of-pocket costs on policyholders over and above any insurance proceeds provided to the property owner for debris removal. The California Department of Insurance worked closely with local, state, and federal leaders to ensure that the program’s costs are not deducted from a policyholder’s primary insurance benefits needed to rebuild. Commissioner Lara has issued a Consumer Alert and Notice detailing how the program will interact with insurance — a benefit available to all eligible property owners who choose to participate in the 2025 Los Angeles Wildfires Debris Removal Program.
Commissioner Lara creates first-ever public claims tracker to monitor claim amounts, payments, and provide transparency: Insurance Commissioner Ricardo Lara today announced the creation of a public consumer claims tracking system designed to provide essential data for consumers and the public, revealing that more than $4.2 billion has been paid out to wildfire survivors due to advance payment laws that he championed after previous wildfire catastrophes. Insurance company payouts are immediately helping people find housing and replace personal items. The amounts will grow as people begin the claims process, which includes rebuilding and debris removal.

FEDERAL

The Small Business Administration (SBA) is offering Disaster Loans for Los Angeles County victims of the wind and wildfire events. Home Disaster Loans, Business Disaster Loans, and Economic Injury Disaster Loans are all available programs through the SBA.
FEMA Disaster Assistance: Information on grants, loans, and recovery services.

INSURANCE COMPANIES

California Fair Plan Claims Information: Claims FAQs
Report Online here. Requires policy number and MAILING zip code.
Available 24/7
On the phone by calling 1(800)339-4099, option 2
Available:
M-F, 8AM-5PM
Saturday, 1/18, 10AM-5PM
Sunday, 1/19, 10AM-1PM
It is expected that the FAIR PLAN will expand hours.
Safeco Insurance Mobile Response Unit: The MCRV will be onsite starting Sun., 1/12 at the following location for the Palisades/Eaton Fire:
Pasadena, CA: Kelley Jiggins Insurance, 455 El Molino
Sherman Oaks, CA: Momentous Insurance, 5990 Sepulveda Blvd Suite 550
Culver City, CA: HUB International, 600 Corporate Pointe Suite 600
Philadelphia Insurance Companies: PHLY has a comprehensive list of Emergency Mitigation Service contractors for your reference when damage and associated repairs are required. These contractors have worked with PHLY in the past and also come recommended by our policyholders.
It is not mandatory that PHLY policyholders choose a vendor from this list. We recommend these contractors to provide superior service and work that is performed properly, with a sense of urgency.
Reporting a Claim: PHLY’s Claim Center is available 24 hours a day to serve all customers reporting a claim. Please call us at 800-765-9749 and select option # 3 or report your loss using one of the following methods:
Online : Report a Claim
Fax : 800.685.9238
Email : claimsreport@phly.com
Hanover Insurance Group: Information to file a claim with Hanover.
Online
By phone
Claims service: 800-628-0250
Platinum claims: 800-799-6977
Prestige claims: 877-922-2774
By fax
Workers’ compensation: 800-762-7788
All others: 800-399-4734
By email
Workers’ compensation: wcnewlosses@hanover.com
All others: firstreport@hanover.com
Travelers: Emergency Response Webpage
Mobile Claims Offices
Personal Insurance: 1‑800‑CLAIM33 (1‑800‑252‑4633)
Business Insurance: 1‑800‑238‑6225
HUB Agency: 600 Corporate Pointe Dr. Culver City, CA 90230
Tuesday, January 14, 2025 10:00 a.m. – 3:00 p.m. PST
Pasadena City College: 1570 East Colorado Blvd Pasadena, CA 91106
Saturday, January 25, 2025 10:00 a.m. – 5:00 p.m. PST
Sunday, January 26, 2025 10:00 a.m. – 1:00 p.m. PST
Santa Monica College, Performing Arts Center East Wing: 1310 11th St
Santa Monica, CA 90401
Saturday, January 25, 2025 10:00 a.m. – 5:00 p.m. PST
Sunday, January 26, 2025 10:00 a.m. – 1:00 p.m. PST
If you have been evacuated or displaced, you can call us or visit one of our deployment locations to inquire about possible additional living expense reimbursement. In addition, Travelers has relationships with vendors countrywide that may be able to assist with hotel and temporary housing accommodations:
ALE Solutions – 1.866.885.9785
CRS Temporary Housing – 1.800.968.0848
We also wanted you to know that earlier today we announced a $1 million contribution to support the relief and recovery efforts in the L.A. area. We’re partnering with tested organizations that are already undertaking effective response and recovery efforts on the ground. You can read more in our press release.
CHUBB: Claims Website
Reporting a Claim
Trusted Service Network
HARTFORD: Catastrophe Claims Mobile Response Vehicle
Home Depot at 500 S. Marengo Drive, Alhambra, CA
10 a.m. – 5 p.m. on January 14
8 a.m. – 5 p.m. starting on January 15
Claims Reporting:
Online
Call: 1-800-243-5860
Claims professionals available 24/7
MERCURY: Los Angeles County Emergency Info
Report Personal Lines Claims
Call 1-800-503-3724 to report claims.
To further support homeowners and landlord policyholders affected by the wildfires, Mercury has implemented the following relief measures:
60-day grace period for premium payments on residential property insurance policies in the affected areas.
One-year moratorium on non-renewals or cancellations within the fire perimeter.
Policy renewals for two annual periods following a total loss.
Six-month rescission of pending non-renewals and cancellations.
ATLAS: GoSafe (online safety resources)
Claims Updates
MPN Kaiser Locations: All Kaiser offices and clinics are open and servicing appointments.
MPN Concentra Locations: While some clinics were temporarily closed due to smoke and power outages, all are now open. Concentra is proactively rescheduling missed appointments.
Pharmacy Program: Early refill controls have been temporarily lifted to help injured workers manage their prescription medications.
Home Healthcare: Injured workers receiving active home healthcare in the affected areas are being contacted to verify relocations and ensure continuity of care.
Provider Updates: Sedgwick is actively reaching out to MPN providers in the affected areas and arranging alternative care solutions as needed.
HISCOX
Online Claims Center
JEWELERS MUTUAL
Disaster Relief Page
GUARD
Our thoughts go out to all the lives disrupted by the severe wildfires in California. Our claims personnel and catastrophe team stand ready to assist our policyholders in their time of need. Claims should be reported to us via our toll-free number, 1-888-NEW-CLMS, at www.guard.com, or from our Policyholder Service Center.
California Wildfire Claims FAQs.
PROGRESSIVE
Beginning Monday, January 20, daily from 8:00 a.m. to 7:00 p.m. PT, we’ll be onsite in Burbank. Members of our Catastrophe Services Team will be onsite and available to answer any specific claims questions about any of our products at the following location:
Lowe’s: 2000 W. Empire Avenue Burbank, CA 91504
Personal Auto | Recreational Lines | Commercial Lines

Report online

Use the Progressive app

Call 800-274-4499

Home and Property

Report online

Call 866-960-6925 (general claims)

Call 866-511-0793 (flood claims)

REBUILDING AND RECOVERY

California Department of Insurance: Guidance on claims for fire damage. View Resources
The Salvation Army: provides grants to those displaced by fires and financial assistance for the immediate and long-term needs of fire victims. It also operates shelters and provides emergency housing for those fleeing fires.
Rebuilding Together Greater Los Angeles: Volunteer-based repair and rebuilding services. Support or Apply
Compiled List of Some Insurance Company Claims’ Departments: Click to access.

EMERGENCY SHELTERS, HOUSING

211 LA is partnering with Airbnb to offer free temporary shelter for people displaced from their homes by fire. Start by filling out this form.
Red Cross Los Angeles: Find a Shelter
Santa Monica Hotels: The Santa Monica hotels offering special rates for evacuated area residents are Fairmont Miramar Hotel & Bungalows, Gateway Hotel, Hilton Santa Monica, The Pierside Santa Monica, Regent Santa Monica Beach, Sandbourne Santa Monica, Shore Hotel, Shutters on the Beach, Viceroy Santa Monica and more. (Note: As conditions surrounding the Palisades Fire evolve, some areas of Santa Monica may be included in evacuation orders. It’s recommended to check the latest evacuation notices before booking hotels in this area.)
Coachella Valley Hotels: Several properties in the Coachella Valley area are offering discounted rates to fire evacuees, including Infusion Beach Club in Palm Springs, Agua Caliente Casino Rancho Mirage and Holiday Inn Express Palm Desert.
Alisal Ranch in Solvang is offering discounted rates to locals affected by mandatory evacuation orders. Household pets are also welcome. Those in need can call the front desk to make a reservation at 800-425-4725.
Mariners Village Apartment Homes (Marina del Rey) is offering temporary housing for those affected. For more details or to inquire about availability, please contact us at (310) 821-4916.
YMCA of Metropolitan Los Angeles is opening its locations that aren’t affected by the fires for temporary shelter, showers, basic amenities, and mental health support. They have also teamed up with L.A. Unified School District to provide childcare services for essential workers and affected families until schools reopen. Register on their website.
Planet Fitness locations in L.A. are offering anyone affected by the fires, including first responders, free access to their facilities, including showers, massage chairs, locker rooms, and WiFi. Contact the club near you for more information and hours.

DONATIONS

Gaspar Insurance is organizing community donations at their location in Woodland Hills .
California Fire Foundation Wildfire & Disaster Relief Fund: The California Fire Foundation works with local fire agencies and community-based organizations to provide ongoing, mid- and long-term support to California communities affected by natural disasters like wildfires. The organization, which provides direct support to victims, is beginning to support those impacted by the Palisades Fire.
American Red Cross: Donate to the Wildfire Relief Fund at the American Red Cross. If you’re located in the Los Angeles area and can offer temporary foster care to dogs displaced by the wildfires, sign up at the Canine Rescue Club. Los Angeles Emergency Management Department
The California Community Fund has a recovery fund dedicated to helping victims of wildfires. You can donate here .
Direct Relief: Donate to Direct Relief’s California Fire Relief , which provides N-95 masks, medicine, and resources to health-care agencies and first responders in areas affected by wildfires.
Friends in Deed: Donate to Friends in Deed, a nonprofit providing services for the homeless, as it opens its Bad Weather Shelter amid the fires. Friends in Deed donation website
World Central Kitchen , the nonprofit global food relief organization founded by celebrity chef José Andrés, is already on the ground in Southern California to aid first responders and evacuees.
Donation page
CAL FIRE Benevolent Foundation: CAL FIRE Benevolent Foundation provides financial aid to firefighters and their families in case of injury or loss of life. The organization also helps support burn victims and their families, along with research focused on firefighter health and safety.
https://calfire.foundation/donations/
California Fire Foundation: The California Fire Foundation, a 501(c)(3) non-profit organization, provides critical support to surviving families of fallen firefighters, firefighters, and the communities they serve. Your tax-deductible donation will help them provide aid to victims of wildfires or other natural disasters through their Wildfire & Disaster Relief programs.
Dream Center: This L.A.-based charitable organization is offering emergency shelter to those evacuated in the Palisades and Eaton Canyon Fires.
Dream Center donation for fires website.
Baby2Baby is accepting donations to support children impacted by the wildfires.
The Los Angeles Fire Department Foundation is actively seeking funds to equip LAFD members battling wildfires with equipment and supplies such as emergency fire shelters, hydration backpacks, wildland brush tools.
SPCALA’s Disaster Animal Response Team is seeking donations to provide aid, care, and shelter to animals in the wake of disaster.
The Los Angeles Regional Food Bank is accepting financial donations and food donations at two distribution centers from 8 a.m. to 5 p.m., Monday through Friday, and 8 a.m. to 3 p.m. on Saturday, located at 1734 East 41st Street in Los Angeles, CA, and 2300 Pellissier Place in Industry, CA.
Project Angel Food is seeking donations and volunteers to help deliver and make meals for wildfire victims.

TRANSPORTATION

Uber and Lyft are offering free rides to shelters and evacuation sites:
Lyft: Two free rides up to $25 each. Use code: CAFIRERELIEF25.
Uber: Two free rides up to $40 each. Use code: WILDFIRE25.
Metro: Metro fares are free all day today.

COMMUNICATION

AT&T is offering people in fire-affected areas unlimited talk, text and data through Feb. 6 (if you don’t already have an unlimited plan).
T-Mobile is also offering unlimited talk, text and data to customers in cities affected by the fires through Feb. 15.

FOOD

World Central Kitchen: Provides meals to first responders and families impacted by wildfires in the Los Angeles area.
Calico Fish House : The chef at Calico Fish House in Sunset Beach in Orange County is offering to feed evacuees and let them camp out in the restaurant’s parking lot.
Address: 16600 Pacific Coast Highway, Huntington Beach, CA 92649
Phone: (562) 357-4012
Sweet Greens will provide meals to first responders, victims, and displaced residents. DM them through social media or call directly. https://www.instagram.com/sweetgreen/
Culver City Phone number: 310-660-7471
Other Locations: https://www.sweetgreen.com/locations
Restaurants Across LA County: There is a list of restaurants across LA County offering shelter, food, and support for first responders and evacuees. This includes SPA 6’s South LA Cafe, which is currently keeping three of its five locations (including Jefferson and Kaiser) open to provide shelter to evacuees and anyone in need. At their Western location (1700 Browning Blvd, Los Angeles, CA 90062), they are offering free groceries, water, and masks from 12 to 4 p.m.

HEALTH AND MEDICAL CARE

Teladoc Health is offering free, 24/7 virtual medical care to Southern California residents, first responders and others impacted by the raging fires burning in Los Angeles. Individuals displaced by fires or those who are unable to access traditional medical care can consult licensed healthcare professionals for non-emergency illnesses by calling 855-225-5032. Services include treatment for conditions such as respiratory infections, allergies, sinus problems and cold or flu symptoms, company officials said. Additionally, Teladoc Health is providing assistance with prescription refills for non-narcotic medications.
https://www.teladochealth.com/info/disaster-hotline
Humana Partnership with EyeMed:
Through our EyeMed Cares program, our Customer Care Center representatives are ready to provide the following services for affected members via an emergency toll-free line (1.866.652.0018):
Temporary Adjustable Glasses: If immediate materials are needed, a call center representative can expedite shipping these adjustable glasses to members—at no cost. These glasses enable individuals to adjust for different distances and switch focus for reading, computer and distance. For members displaced with no immediate address, we can work with them to determine a location where they can be picked up.
Free shipping for glasses and contacts: Whether the member wears glasses or contact lenses, we’ll ensure your replacement eyewear arrives as soon as possible with free expedited shipping.
Additional disaster response information:
Network: Impacted providers are updating their hours of operation and notifying EyeMed that their office is completely closed and cannot service members.
Compliance: EyeMed will comply with any additional mandates required through state or local insurance compliance bulletins issued regarding the specific disaster.
Assistance for employees experiencing financial hardship: Whether members or not, employees in affected areas who need financial assistance to obtain eyewear can reach out to the OneSight EssilorLuxottica Foundation at engage@onesight.org to learn more. The OneSight EssilorLuxottica Foundation is EssilorLuxottica’s global Foundation working to eliminate uncorrected poor vision in a generation.
Choice Administrators:
If your clients have been affected by the fires and need assistance, please encourage them to reach out to our Customer Service teams.
CaliforniaChoice Customer Service: 800.558.8003
ChoiceBuilder Customer Service: 866.412.9276

ANIMAL EVACUATION CENTERS

River Way Ranch Camp: For those of you who have been affected, please know we are offering accommodations and meals at no cost to families who have been displaced by the fires. Additionally, for those with horses or larger animals requiring temporary boarding, we may be able to provide space as well. You may contact us directly – Ashley Oken at (800) 821-2801 to arrange accommodations. https://www.riverwayranchcamp.com/
Los Angeles Equestrian Center
480 W Riverside Dr, Burbank, CA 91506
https://thelaec.com/
Pierce College Equestrian Center
7100 El Rancho Drive, Woodland Hills
818-710-3308
Rose Bowl Stadium
1001 Rose Bowl Dr, Pasadena, CA 91103
626-577-3100
https://www.rosebowlstadium.com/
Agoura Animal Care Center
29525 Agoura Rd, Agoura Hills, CA 91301
https://animalcare.lacounty.gov/
Pasadena Humane Society
361 S Raymond Ave, Pasadena, CA 91105
626-792-7151
https://pasadenahumane.org/

PET RESOURCES

Wildfires can displace animals, leaving them in urgent need of help. Pets may also get lost or left behind during such an emergency.

American Society for the Prevention of Cruelty to Animals (ASPCA)
aspca.org
The ASPCA’s National Field Response team provides emergency sheltering, rescue and relocation services for animals affected by wildfires. It also assists with evacuations and offers resources for pet owners to prepare for emergencies.
Humane Society of the United States
humanesociety.org
The Emergency Animal Relief Fund helps animals impacted by disasters. The Humane Society also works to reunite pets with their owners and provide care for displaced animals.

MENTAL HEALTH AND EMOTIONAL SUPPORT

Crisis Text Line: Text HOME to 741741 for free, confidential support.
California Hope: Offers crisis counseling for disaster survivors. Call (833) 317-HOPE or visit CalHope.org
The Wellness Center at LAC+USC: Free emotional support resources. Learn More
Fusco Orsini & Associates EAP Partner: TELUS Health’s emergency community line is open for anyone who is in need, including anyone who doesn’t have the TELUS Health EAP. The emergency community line is 1-877-757-7587.
How TELUS can help:
24/7 Support Line: Reach out to our confidential support line at 1-833-919-3252.
Counseling Services: Access professional counseling to help manage stress, anxiety, and emotional well-being.
Resources and Guidance: Connect with specialists for assistance in finding temporary housing, legal advice, or navigating insurance claims.
Local resources to stay safe and informed:
Emergency Updates: Visit Cal Fire for the latest wildfire information.
Evacuation Centers: Locate nearby shelters through the American Red Cross Shelter Finder.
Air Quality Information: Check air quality levels and safety tips at AirNow.gov.
Los Angeles County Emergency Alerts: Sign up for notifications at Ready LA County.
Support Hotline: Dial 211 for community services and disaster-related assistance.
Take care of yourself:
Follow evacuation orders promptly and have an emergency kit ready.
Limit outdoor exposure and use air purifiers or N95 masks to protect against smoke.
Stay connected with loved ones and communicate your safety plans.

SAN DIEGO ASSISTANCE

Fill the Truck- Rock Church Donation Drive
The Rock Church is holding a donation drive at its San Diego and San Marcos locations from Jan. 1 through Jan. 15. They are looking for items for victims and first responders including protein bars, energy drinks and baby wipes. These donated items will be going to a partner church in LA, where they will distribute them to those in need.
Rock Church Point Loma – 2277 Rosecrans St. San Diego, CA 92106
Rock Church San Marcos – 1370 W San Marcos Blvd. San Marcos, CA 92078
GoFundMe
GoFundMe also offers various campaigns people can donate to victims. The donated money directly goes to families on GoFundMe’s page of verified fundraisers. Find the link here.
San Diego Blood Bank
People can donate blood through the San Diego Blood Bank, which also serves hospitals in LA.
San Diego Humane Society
The San Diego Humane Society is taking animals from shelters in Pasadena. Those interested can help by adopting or fostering.
San Diego Food Bank
The San Diego Food Bank is taking donated food up to the LA Regional Food Bank.

SIGNIFICANT CLAIMS AND INSURANCE COVERAGE RELATED LAWS

Actual Cash Value Calculation: Under an open policy, the measure of indemnity in fire insurance is the expense to the insured of replacing the thing lost or injured in its condition at the time of the injury, the expense being computed as of the time of the commencement of the fire.
Under an open policy that requires payment of actual cash value, the measure of the actual cash value recovery, in whole or partial settlement of the claim, for either a total or partial loss to the structure or its contents, shall be the amount it would cost the insured to repair, rebuild, or replace the thing lost or injured less a fair and reasonable deduction for physical depreciation based upon its condition at the time of the injury or the policy limit, whichever is less. A deduction for physical depreciation shall apply only to components of a structure that are normally subject to repair and replacement during the useful life of that structure (Cal. Ins. Code section 2051).
Replacement Cost Value Calculation: Under an open policy that requires payment of the replacement cost for a loss, the measure of indemnity is the amount that it would cost the insured to repair, rebuild, or replace the thing lost or injured, without a deduction for physical depreciation, or the policy limit, whichever is less (Cal. Ins. Code section 2051.5[a]).
Time Limit to Collect Full Replacement Cost: An insured will have no less than 12 months (from the date that the first payment toward the actual cash value is made) to collect the full replacement cost of the loss, subject to the policy limit. In the event of a loss relating to a “state of emergency,” as defined in California Government Code section 8558, an insured will have no less than 36 months (from the date that the first payment toward the actual cash value is made) in order to collect the full replacement cost of the loss, subject to the policy limit. Additional extensions of six months shall be provided to policyholders for good cause (Cal. Ins. Code sections 2051.5[b][1] and [2]).
Rebuilding in Current Location or Rebuilding or Replacing in a New Location: In the event of a total loss of the insured structure, a policy issued or delivered in this state shall not contain a provision that limits or denies, on the basis that the insured has decided to rebuild at a new location or to purchase an already built home at a new location, payment of the building code upgrade cost or the replacement cost, including any extended replacement cost coverage, to the extent those costs are otherwise covered by the terms of the policy or any policy endorsement. However, the measure of indemnity shall not exceed the replacement cost, including the building code upgrade cost and any extended replacement cost coverage, if applicable, to repair, rebuild, or replace the insured structure at its original location (Cal. Ins. Code section 2051.5[c][1]).
Land Value Deduction: For a residential property insurance policy, the measure of damages available to a policyholder to use to rebuild or replace the insured home at another location shall be the amount that would have been recoverable had the insured dwelling been rebuilt at its original location, and a deduction for the value of land at the new location shall not be permitted from that measure of damages. However, the measure of indemnity shall not exceed the cost, including the building code upgrade cost and any extended replacement cost coverage, if applicable, to rebuild the insured structure at its original location (Cal. Ins. Code section 2051.5[c][2]).
List of Items Covered – Additional Living Expenses (ALE): If requested by the insured, this section requires insurance companies to provide the insured with a list of items that an insurer believes would be covered under the policy (Cal. Ins. Code section 2060[a]).
Time Limit to Collect Additional Living Expenses (ALE): In the event of a covered loss relating to a state of emergency, as defined in California Government Code section 8558, on and after July 1, 2021, coverage for additional living expenses (or loss of use) shall be for at least 24 months from the inception of the loss, but shall be subject to other policy provisions. An insurer shall grant an extension of up to 12 additional months, for a total of 36 months, if an insured acting in good faith and with reasonable diligence encounters a delay or delays in the reconstruction process that are the result of circumstances beyond the control of the insured. Circumstances beyond the control of the insured include, but are not limited to, unavoidable construction permit delays, lack of necessary construction materials, and lack of available contractors to perform the necessary work. Additional extensions of six months shall be provided to policyholders for good cause (Cal. Ins. Code section 2060[b][1]).
Uninhabitable/Reasonable Habitation (ALE): If the insured home is rendered uninhabitable by a covered peril, on and after July 1, 2021, a policy that provides coverage for additional living expenses shall not limit the policyholder’s right to recovery. However, an insurer may, in lieu of making living expense payments required by this subdivision, provide a reasonable alternative remedy that addresses the property condition that precludes reasonable habitation of the insured premises. The additional living expense coverage subject to this section does not include a utility public safety power shut off event, which is the deenergization of a portion of the electrical distribution or transmission system to reduce the risk of wildfire ignition (Cal. Ins. Code section 2060[b][2]).
Restricted Access by Civil Authority (ALE): In the event of a state of emergency, as defined in Gov. Code section 8558, for a loss that is otherwise not subject to Cal. Ins. Code sections 2060(b)(1) and (2) above that is accompanied by an order of civil authority restricting access to the home, related to a covered peril, on and after July 1, 2021, additional living expense coverage shall be provided for at least two weeks. Additional extensions of two weeks shall be provided to a policyholder for good cause, but shall be subject to other policy provisions (Cal. Ins. Code section 2060[c]).
Additional Living Expense (ALE) Advance Payment: In the event of a covered loss relating to a state of emergency, as defined in California Government Code section 8558, the following special provision shall apply under a residential property insurance policy:
(1) If an insured has made a claim for additional living expenses related to a total loss, an insurer shall, upon request by an insured, render an advance payment of no less than four months of living expenses. Additional payment for additional living expenses shall be payable upon proper proof following the advance period (Cal. Ins. Code section 2061[a]).
Itemization of Contents: In the event of a covered loss relating to a state of emergency, as defined in California Government Code section 8558, the following special provisions shall apply under a residential property insurance policy:
(2) If an insured has made a claim for contents related to a total loss of a primary residence, an insurer shall not require that the insured use a company-specific inventory form if the insured can provide an inventory using a form that contains substantially the same information. This subdivision does not limit the authority of an insurer to seek additional reasonable information from an insured upon receipt of an inventory form submitted by an insured.
(3) If an insured has made a claim for contents related to a total loss of a primary residence, an insurer shall accept an inventory that includes groupings of categories of personal property, including clothing, shoes, books, food items, CDs, DVDs, or other categories of items for which it would be impractical to separately list each individual item claimed (Cal. Ins. Code section 2061[a]).
Changing Claims Adjusters: If, within a six-month period, an insurer assigns a third or subsequent adjuster to be primarily responsible for a claim, the insurer shall provide the insured with a written status report. The written status report must include a summary of any decisions or actions that are substantially related to the disposition of a claim, including, but not limited to, the amount of losses to structures or contents, the retention or consultation of design or construction professionals, the amount of coverage for losses to structures or contents, and all items of dispute (Cal. Ins. Code section 2071).
Note: In addition to the above, California Insurance Code section 14047 requires that for a claim arising from a state of emergency, if, within a six-month period, an insurer assigns a third or subsequent first-party real or personal property claims adjuster, the insurer shall establish a primary point of contact for the insured and provide the insured one or more direct means of communication with the primary point of contact.
Appraisal: In the event of a government-declared disaster, as defined in the California Government Code, appraisal may be requested by either the insured or the insurance company but shall not be compelled (Cal. Ins. Code section 2071).
Copy of Complete Policy After a Loss: After a covered loss under a policy covered by California Insurance Code section 2071, an insurer shall provide to the insured, free of charge, a complete, current copy of their policy within 30 calendar days of receipt of a request from the insured. The policy must include the full insurance policy, any endorsements, and the declarations page (Cal. Ins. Code section 2084).
Building Code Upgrade Coverage: An open policy of residential property insurance that provides replacement cost coverage shall not be issued or renewed unless it provides additional building code upgrade coverage of no less than 10 percent of the dwelling coverage policy limits. The building code upgrade coverage required by this subdivision shall be additional coverage, and use of this coverage shall not reduce or deplete the dwelling coverage policy limits for the insured property. Insurers may offer building code upgrade coverage of greater than 10 percent of the dwelling coverage policy limits, in addition to providing the minimum coverage of 10 percent of the dwelling coverage policy limits (Cal. Ins. Code section 10103[c]).
Ability to Combine Coverages: In the event of a claim relating to a state of emergency, an insured under a residential property insurance policy shall be permitted to combine payments for claims for losses up to the policy limits for the primary dwelling and other structures, for any of the covered expenses reasonably necessary to rebuild or replace the damaged or destroyed dwelling, if the policy limits for coverage to rebuild or replace the primary dwelling are insufficient (Cal. Ins. Code section 10103.7[a]).
Payment of Contents Without Inventory: In the event of a covered total loss of a primary dwelling under a residential property insurance policy resulting from a state of emergency, if the residence was furnished at the time of the loss:
(1) The insurer shall offer a payment under the contents (personal property) coverage in an amount no less than 30 percent of the policy limit applicable to the covered dwelling structure, up to a maximum of two hundred fifty thousand dollars ($250,000), without requiring the insured to file an itemized claim.
(2) After receiving the payment described in paragraph (1), the insured may recover additional amounts up to the policy limit for contents coverage by filing a claim pursuant to the terms of the policy for the loss of contents that exceeds the value of the payment provided pursuant to paragraph (1).
(3) When an insured files a claim relating to a state of emergency, as defined in California Government Code section 8558, the insurer shall notify the insured of the option to receive payment for loss of contents pursuant to paragraph (1) and of the insured’s option to subsequently file a full itemized claim pursuant to paragraph (2).
(4) This subdivision does not affect payment under the policy for scheduled personal property.
(5) This section does not prohibit an insurer from restricting payment in cases of suspected fraud (Cal. Ins. Code section 10103.7[b]).

Liberty Mutual Insurance® Recognizes Fusco Orsini & Associates!

Tue, 19 Aug 2025 00:16:28 GMT

INEWS RELEASE

SAN DIEGO (May 12, 2021) – Liberty Mutual Insurance has recognized Fusco Orsini & Associates Risk and Insurance Services as a Liberty Mutual Elite Agent based upon outstanding performance and partnership. Fewer than 10 percent of independent insurance agencies countrywide that sell Liberty Mutual commercial lines products receive this distinguished honor.

Achieving status as a Liberty Mutual Elite Agent is a reflection of an agency’s success and its commitment to serve customers as a trusted advisor.

“Our priority as an insurance brokerage is to make sure our clients are seen, heard and matched with a policy that meets their needs, and for years we’ve been proud to include Liberty Mutual Insurance among our offerings,” said Michael Fusco, president of Fusco Orsini & Associates. “We are honored to be selected as a Liberty Mutual Elite Agent and we take pride in our strong working relationship and shared commitment to helping our customers protect what matters most to them.”

Five-star rated Fusco Orsini & Associates was founded with client service in mind and this designation stands as a renewed commitment. For more information about the locally-owned insurance company, please visit foagency.com or call 858-384-1506.

About Fusco Orsini & Associates Risk and Insurance Services

Founded in 2010, Fusco Orsini & Associates Risk and Insurance Services is a San Diego-based independent insurance agency that provides individuals and successful business owners with hand-selected polices and unmatched customer service. The organization serves a variety of industries including general business, contractors, food, beverage and bars, manufacturers, professional service providers, property owners, health care professionals, sports and fitness businesses, auto repair shops and tech firms. For more information, please visit foagency.com.

About Liberty Mutual Insurance

In business since 1912, and headquartered in Boston, Mass., Liberty Mutual Insurance is a leading global insurer with operations in 30 countries around the world. Liberty Mutual is the third largest property and casualty insurer in the U.S. based on 2019 direct written premium data as reported by the National Association of Insurance Commissioners. The Company also ranks 77th on the Fortune 100 list of largest corporations in the U.S. based on 2019 revenue. As of December 31, 2019, it had $43.2 billion in annual consolidated revenue.

For more information about Liberty Mutual Insurance, go to www.Liberty Mutual.com.

Lessons for SMBs from the CrowdStrike Incident and the Importance of Cyber Insurance

Tue, 19 Aug 2025 00:15:25 GMT

In today’s digital landscape, the threat of cyberattacks is ever-present, and no business, regardless of size , is immune. Despite this, many small and medium-sized enterprises (SMBs) believe they are unlikely targets for cybercriminals. This misconception can have devastating consequences . According to a recent report, 43% of all cyberattacks target SMBs (Astra Security) (Small Business Trends). Furthermore, 61% of SMBs experienced a cyberattack in 2021 alone (StrongDM). These statistics highlight the urgent need for SMBs to bolster their cybersecurity measures and ensure they are adequately insured.

A recent event highlighting this need is the CrowdStrike outage. CrowdStrike, a leading cybersecurity firm, suffered a substantial service interruption, causing widespread disruption for businesses dependent on their services. This occurrence emphasizes that vulnerabilities in third-party services can have severe consequences, even if your business is not the direct target of an attack. The news coverage of the incident has focused mainly on major corporations like Delta Airlines. Yet, statistics reveal that small and medium-sized businesses (SMBs) are equally vulnerable to these threats.

Using CrowdStrike as an Example

The CrowdStrike incident illustrates businesses’ dependence on third-party services for cybersecurity. When these services fail, the fallout can be widespread and damaging. The impact can be particularly severe for SMBs, which often lack the extensive resources of larger enterprises to manage and mitigate such risks internally.

This is where cyber insurance comes into play. Cyber insurance can help SMBs recover from such incidents by covering various costs associated with cyber disruptions, including business interruption, data restoration, and even public relations efforts to manage reputational damage.

In the following sections, we’ll explore the CrowdStrike incident in more detail, discuss the role of cyber insurance in mitigating such risks, and provide actionable steps SMBs can take to protect themselves against future cyber threats.

Background of the CrowdStrike Incident

The prominent cybersecurity firm recently experienced a significant service disruption that had widespread effects on businesses relying on their Falcon platform for threat detection and response. The outage, caused by a failure in one of CrowdStrike’s critical infrastructure components, lasted several hours and left many businesses temporarily vulnerable without their primary cybersecurity tool.

The financial repercussions of this outage were considerable. Many businesses reported substantial operational disruptions, leading to significant economic losses . According to Moody’s, the losses due to business interruption were particularly severe.

Parametrix has estimated $5.4 billion in economic losses from the event, with insured losses likely to be no more than 10% to 20% of financial losses ($540 million to $1.08 billion).
CyberCube’s initial estimate of insured losses for the standalone cyber insurance market ranges from $400 million to $1.5 billion.

This incident underscores the risks associated with reliance on third-party cybersecurity providers and highlights the importance of having robust cyber insurance coverage to mitigate such impacts.

For small and medium-sized businesses (SMBs), this incident is a stark reminder of the necessity for comprehensive cyber insurance. Cyber insurance can provide a crucial safety net, covering financial losses and helping businesses recover more quickly from such disruptions. By understanding and preparing for these risks, SMBs can better protect themselves against the growing threat of cyber incidents.

You can read the full article on the CrowdStrike incident and its implications on cyber insurance here.

Risk Management and Loss Control

The 7/19/2024 incident highlights the critical need for robust risk management and loss control strategies. Effective measures can significantly reduce the impact of cyber incidents on your business. For detailed guidance on implementing these strategies, including a comprehensive cyber incident response plan, employee training, and more, please refer to our latest blog by 4C Advising: Strengthening Your Cyber Defenses: Essential Risk Management and Loss Controls for SMBs.

Enhancing your cybersecurity posture can better protect your business from potential threats and ensure a quicker recovery during an incident.

The Role of Cyber Insurance

Cyber insurance is a vital component of a comprehensive risk management strategy. It provides financial protection and support to help businesses recover from cyber incidents. Coverage typically includes costs related to data breaches, business interruption, legal fees, and even public relations efforts to manage reputational damage.

With the right cyber insurance policy, SMBs can mitigate the financial impact of incidents like the CrowdStrike outage and ensure they have the resources to restore normal operations quickly.

Understanding Third-Party and First-Party Cyber Coverages

Cyber insurance policies typically include two main types of coverage: third-party and first-party . Understanding the difference between these coverages is essential for ensuring comprehensive protection for your business.

Third-Party Coverage Third-party cyber insurance covers claims against your business by external parties. This coverage is crucial for protecting your business from the financial impact of lawsuits, regulatory fines, and other liabilities arising from data breaches or cyber incidents that affect customers, partners, or other third parties. Critical components of third-party coverage include:

Data Breach Liability: Covers legal fees, settlements, and judgments related to lawsuits from affected parties whose data was compromised.
Regulatory Fines and Penalties: This policy section covers fines and penalties imposed by regulatory bodies for non-compliance with data protection laws.
Media Liability: Protects against claims related to defamation, copyright infringement, and other media-related liabilities resulting from a cyber incident.

First-Party Coverage First-party cyber insurance covers losses that directly affect your business. This type of coverage helps your business recover from the immediate financial impact of a cyber incident. Critical components of first-party coverage include:

Business Interruption: Covers lost income and operating expenses incurred during the downtime caused by a cyber incident.
Data Restoration and Recovery: Provides coverage for restoring and recovering lost or compromised data.
Cyber Extortion and Ransomware: Covers expenses related to responding to extortion demands and negotiating with cybercriminals, including ransom payments if necessary.
Crisis Management and Public Relations: Helps cover the costs of managing the reputational impact of a cyber incident, including public relations efforts and customer notification expenses.

By combining third-party and first-party coverages, businesses can ensure comprehensive protection against the wide range of financial risks associated with cyber incidents. It’s important to review your policy with an insurance advisor to tailor the coverage to your specific needs and ensure that all potential risks are adequately addressed.

The Current State of the Cyber Insurance Marketplace

The cyber insurance marketplace has evolved significantly in recent years, driven by the increasing frequency and severity of cyber incidents. As cyber threats continue to grow, so does the demand for comprehensive cyber insurance coverage. Here’s a brief overview of the current state of the market:

1. Increasing Demand

Rising Cyber Threats: With cyberattacks becoming more frequent and sophisticated, businesses of all sizes recognize the need for robust cyber insurance. High-profile incidents, like the Crowdstrike outage, have underscored the importance of being prepared.
Regulatory Requirements: New data protection regulations, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), have made cyber insurance a critical component for compliance and risk management.

2. Premiums and Coverage Limits

Rising Premiums: Insurers have been increasing premiums due to the surge in cyber claims. The average cost of cyber insurance has risen significantly as insurers adjust to the growing risk landscape.
Coverage Limits: While premiums have increased, some insurers are also tightening coverage limits and adding more exclusions to policies. Therefore, it is essential for businesses to review their policies and ensure adequate coverage.

3. Evolving Policy Offerings

Tailored Policies: Insurers are developing more tailored policies to meet the specific needs of different industries. This includes customized coverage options for healthcare, finance, and retail sectors facing unique cyber risks.

Risk Management Services: Many insurers now offer additional services, such as risk assessments, cybersecurity training, and incident response planning, as part of their policies. These services help businesses mitigate risks and enhance their overall cybersecurity posture.

4. Claims and Payouts

Increased Claims Frequency: The frequency of cyber insurance claims has increased, with more businesses experiencing incidents like ransomware attacks, data breaches, and business interruptions.
Claims Handling: Insurers are improving their claims handling processes to provide quicker payouts and better support for policyholders. This includes dedicated cyber incident response teams and streamlined claims procedures.

5. Market Challenges

Underwriting Complexity: As the cyber threat landscape evolves, underwriting cyber risks has become more complex. Insurers must continually update their models and risk assessments to keep pace with emerging threats.
Capacity Constraints: Some insurers limit their exposure to cyber risks, leading to capacity constraints in the market. This can make it challenging for businesses to find adequate coverage at a reasonable price.

Conclusion The cyber insurance marketplace is dynamic and rapidly evolving. Businesses must stay informed about market trends and work closely with insurance advisors to secure the proper coverage. By understanding the current state of the market and proactively managing their cyber risks, businesses can better protect themselves against the financial impact of cyber incidents.

Call to Action

The CrowdStrike incident is a powerful reminder of the ever-present cyber threats that can disrupt businesses of all sizes. Protecting your business from these threats requires a comprehensive approach that includes robust cybersecurity measures and the right cyber insurance coverage.

At Fusco Orsini & Associates, we specialize in helping SMBs navigate the complexities of cyber insurance. Our team of experts is here to guide you in selecting the right coverage to safeguard your business against the financial impact of cyber incidents.

Take the next step to protect your business:

Consult with Our Experts: Complete our cyber-quick form below to schedule a consultation with one of our insurance advisors. The advisor will review your current cyber insurance policy and identify any gaps in coverage.
Access Comprehensive Resources: Visit our 4C Advising Blog to explore detailed risk management and loss control guides, including our Cyber Incident Response Plan and Employee Cybersecurity Training Program.

Don’t wait until a cyber incident impacts your business. Contact us today to ensure you have the protection and peace of mind that comes with being prepared. Together, we can build a resilient and secure future for your business.

I wrote this BLOG with a little help from my friends at OpenAI.

OpenAI. (2024). ChatGPT (4o) [Large language model].

Business Insurance & Wildfires

Tue, 19 Aug 2025 00:14:23 GMT

Wildfires can occur at any time throughout the year, though they are most common between April and October. The western and southern regions of the United States typically have the greatest risk of experiencing the effects of wildfires.

According to the National Interagency Fire Center, 42,077 fires have burned 7,840,400 acres so far this year. Wildland fire activity is currently present in nine states, where 27 large active wildfires have burned 1,183.610 acres.

Fire risk is elevated by several factors, including hot and dry weather conditions, high fuel amounts, types of vegetation, human activities like fireworks or unsafe campfires, electrical hazards, and climate change.

Wildfire insurance is a vital tool for businesses and individuals in fire-prone areas. If you think your business is in a high-risk area, assessing and obtaining appropriat coverage is important!

Here are a few tips to protect yourself, your business, and your property during wildfire season:

Assess your property for potential risk —Do this first so you can find areas where you can improve. Your insurance agent can check your level of risk based on your location and how prone it is to fires. Also, check to see if you are in an area with a high concentration of fire fuel or vegetation.
Protect your property with fuel gaps and fire-resistant landscaping – Once you have identified potential risk areas, take steps to mitigate them. Create cleared zones around your property that will stop embers from jumping from one fuel source to another. According to PG&E, California law requires 100 feet of defensible space around your home or to the property line. Consider planting fire-resistant plants and keeping trees and shrubs pruned. Always make sure to remove any dead vegetation as well.
Create an Emergency Plan
You may already have procedures for fire or other emergencies, but creating a plan specifically tailored to wildfires is helpful. Don’t forget to include contact information for the appropriate local authorities, evacuation routes, meeting points and locations for emergency supply kits. If you are a business owner, distribute your plan to employees and ensure they feel confident and able to follow it.
CalFire also has a helpful plan called the “6 P’s of Evacuation,” which includes people and pets; papers, phone numbers, and documents; prescriptions, vitamins, and eyeglasses; pictures and irreplaceable memorabilia; personal computers, hard drives, and disks; and “plastic” (ATM cards, cash).
Review your insurance coverage – There are quite a few types of commercial insurance that can help protect businesses against wildfires, including:
Commercial Property Insurance: Property insurance covers damage or loss to your building, equipment, inventory, and other physical assets due to fire or other effects of the fire, such as smoke damage. It can also provide coverage for business interruption, helping compensate for lost income when your business cannot operate due to a covered event.
Workers’ Compensation Insurance: Workers’ compensation insurance covers employees who suffer work-related injuries or illnesses. It helps cover medical expenses, disability benefits, and lost wages for employees who are injured on the job. It is typically required by law.
General Liability Insurance: This provides coverage for third-party claims related to bodily injury, property damage, or personal injury that may occur on business premises. It can help protect against lawsuits and medical expenses resulting from accidents or involving customers, suppliers, or other individuals entering the space.
Environmental Liability Insurance: In some cases, businesses may need supplemental insurance to ensure they’re covered against environmental events such as wildfires. This can help businesses in areas highly prone to these disasters ensure the security they need.

Our team is ready to partner to protect your business from wildfire risk.

Inquire HERE to get connected and start getting your questions about risk and wildfire insurance answered.

References:

Learn How to Create Defensible Space Around Your Home – PG&E Safety Action Center.

OpenAI. (2023, July). [Tips for preparing your business for wildfire season]. Retrieved from [ChatGPT.com].

Is a Professional Employer Organization (PEO) My Best Option?

Tue, 19 Aug 2025 00:13:28 GMT

If your business is changing and you are deciding between growing an in-house HR team, utilizing a PEO, or blending in-house tasks with select service providers, this blog is for you.

To PEO or not PEO – that is the question we’ll guide you through today!

First, what is a Professional Employer Organization (PEO)?

A Professional Employer Organization (PEO) is a company that provides human resources services. They can manage tasks such as payroll, healthcare and employee benefits, tax compliance, employee onboarding and offboarding, oversee workers compensation, verify workers’ employment, drug testing, and more.

The time might be right to utilize a PEO if your company is growing and adding team members and/or if your exposure to risk is increasing and you don’t have a team to handle it all.

One of the biggest draws of a PEO is risk management. According to Business News Daily, “…many PEO agreements have built-in risk management features that flag and fix potential issues ahead of time, warding off problems before they begin.” This can provide peace of mind to the business owners using PEOs. Another benefit is that your small- to medium-sized business can provide “large company-style benefits” to attract talent, shares CBIZ.

Are there any drawbacks to utilizing a PEO service?

When you hire a PEO, you enter a co-employment agreement. According to NAPEO, “In a co-employment agreement, a PEO client’s employees (also called worksite employees) are employed by two separate entities, the client company and the PEO.” The client company (you) generally maintains business and operations decisions while the PEO focuses on employment-related matters.

It’s important to note, however, that you’re still on the hook. “Yet, even when outsourcing HR to a PEO, the employer still bears ultimate responsibility if a libelous issue arises with an employee,” says CBIZ.

Other potential challenges in hiring a PEO may include limited customization, changing costs, less access to data, not getting to hand-pick vendors, and infrequent communication since PEOs have multiple clients.

Is a PEO right for my business?

Now that you know some of the pros and cons of working with a PEO, you may be wondering what the best option is for your business.

The answer is: it depends. Let us explain…

Here at Fusco Orsini & Associates and 4C Advising, we partner with our clients to make the best, most objective recommendation possible. Sometimes that means referring you to a PEO and other times that means unbundling your PEO services and moving tasks in-house and/or to other service providers.

How can I leave my PEO?

If leaving your PEO is the best option, please know that it is possible to unbundle your PEO services. Reasons you may want to do this include a desire for more customization, choice, communication, and access.

The process of unbundling requires some effort, but rest assured, we are prepared to step in to help! In fact, partnering with Fusco Orsini & Associates to unbundle your PEO is easier than ever. We make the process of unbundling as seamless as possible. How? We work directly with several quality vendors to obtain the services that a PEO typically provides. Because we have access to several vendors, you benefit by:

Choosing from a variety of vendors based on your specific needs
With us, you’re not locked into any one vendor or option. If a solution doesn’t fit your needs, you can move that piece to a different vendor. It’s all about giving you flexibility.
Retaining your workers

GET STARTED HERE.

What are the types of PEO services Fusco Orsini & Associates can help you with?

Human Resources
Payroll Administration
Administration of Employee Benefits (handled in-house by our team)
Risk Management (handled in-house by our team)

Are you ready to clarify the best solution for your business (PEO or no PEO)? Get started HERE in under 3 minutes, and then a member of our five-star rated team will reach out promptly.

We are excited to partner with you every step of the way as you transform the way you do business!

P.S. – In the meantime, download our free guide “How to Unbundle PEO Services” HERE .

References:

Business News Daily, PEOs and Risk Management

Small Business.Chron, Human Resource Policies & Organizational Cultures

CBIZ, The Pros and Cons of a PEO

Zywave Client Portal: A One-Stop-Shop for Risk Management & Compliance

Tue, 19 Aug 2025 00:13:18 GMT

As a business owner, it’s common to wear many (or sometimes…all) of the hats. You probably got into business to provide a product or service, and then you quickly realized there are so many more things involved in growing your company the right way.

One day you need to write an employee handbook and the next day you need to do a performance review. No matter your level of experience with these areas AND MORE, our Zywave Client Portal offers a massive variety of tools for your business all in one place.

And the real value is: less Googling for answers and more ready-to-go solutions at your fingertips!

The Zywave Client Portal it’s not just a platform; it’s a comprehensive suite of resources, tools, and insights tailored to meet the dynamic needs of business owners or operators. With intuitive dashboards, a rich library of training materials, real-time communication channels, and a complete view of your operations, you can stay compliant, informed and ready to adapt.

Need to build a job description for recruitment purposes? Just browse the portal library to create your own.

Want to expand your business knowledge? Take an HR training course, read up on risk management and safety practices, or access details on employee benefits and state requirements.

Need compliance direction? Build benefits documents and access our ACA Reporting tool.

Ready to take a look for yourself?

Connect with our team HERE:

P.S. – Here’s a complete list of the tools you can look forward to accessing:

HR APPS

Custom Job Description Builder
Employee Cost Calculator
Enrollment Booklet Builder
HR Self-Assessment Tool
In-person Interview Question Builder
Performance Review Builder
Phone Interview Question Builder
Salary Benchmarking
Sample Job Descriptions
Total Compensation Statement Builder

CONTENT LIBRARY

Discipline & Termination
Employee Benefits
Forms & Policies
Health Care Reform
HR Videos
Human Resources
Recruitment & Hiring
ReferenceCenter
Risk Management
Safety
State Laws
Wellness

COMPLIANCE APPS

ACA Reporting
Benefit Document Builder
Compliance Poster Builder
Federal Poster Advisor
FMLA Advisor
Multi-State Laws Comparison Tool
Web Accessibility Tool

NOTICES

COBRA Notices Generator
ComplianceNoticeBuilder
HealthPlanComplianceCalendar

HANDBOOKS

Employee Handbook Builder

This tool can help you build and manage your employee handbooks.

OSHA LOG

Get in touch!

To learn more about the Zywave Client Portal, connect with our team HERE. We also offer a done-for-you version of many of the documents listed above, so if that’s more your style, please reach out.

Expanding the Horizon: How Our Partnership with Zenjuries Claim Concierge Simplifies Claims Management for VIP Clients

Tue, 19 Aug 2025 00:12:38 GMT

Exciting news! Zenjuries Claims Concierge has expanded their handling of commercial insurance claims for our clients!

Managing claims can be a daunting task for businesses, especially when juggling multiple types of insurance. That’s why we’ve partnered with Zenjuries Claim Concierge, a trusted leader in claims management, to provide our VIP clients with a seamless and comprehensive solution— free of charge . Recently, Zenjuries Claim Concierge expanded its services from handling workers’ compensation claims to managing all types of claims for our clients. This exciting development means greater efficiency, support, and peace of mind for our valued clients. Let’s dive into how this partnership is transforming the claims experience.

Comprehensive Claims Support: Policies Covered by Zenjuries Claim Concierge

Exciting news!

Zenjuries Claim Concierge has expanded its services to manage a comprehensive range of commercial insurance claims, including:

Workers’ Compensation: Ensuring prompt and efficient handling of employee injury claims to facilitate swift recoveries and minimize disruptions.
General Liability: Addressing third-party bodily injury or property damage claims, safeguarding your business from potential legal and financial repercussions.
Commercial Auto: Managing claims arising from vehicular incidents involving company-owned vehicles, ensuring timely repairs and liability resolutions.
Trucking: Specializing in claims pertinent to the trucking industry, including cargo damage and transportation liabilities.
Cyber Liability: Navigating the complexities of data breaches and cyber-attacks, mitigating financial losses and reputational harm.
Umbrella Policies: Overseeing claims exceeding standard liability policies’ limits, providing an extra layer of protection.
Errors & Omissions (E&O): Handling claims related to professional negligence or mistakes, protecting your business’s integrity and financial standing.
Property Insurance: Managing claims for physical asset damages due to fire, theft, or natural disasters, ensuring business continuity.

By encompassing these diverse policy types, our partnership offers a unified platform for all your claims management needs, streamlining processes and enhancing efficiency across your organization.

Seamless Collaboration: How FOA and Zenjuries Claim Concierge Work Together for You

We are committed to delivering exceptional service and support to our clients. Our partnership with Zenjuries Claim Concierge is a testament to that commitment, providing a streamlined and effective claims management process tailored to your needs. Here’s how this collaboration works for you:

1. Exclusive Access for VIP Clients

When you become one of FOA’s VIP clients, you gain complimentary access to Zenjuries Claim Concierge’s comprehensive claims management services. This value-added benefit ensures your claims are handled efficiently without additional cost.

2. Integrated Onboarding Process

We work closely with Zenjuries Claim Concierge to integrate their services into your insurance program. Their team becomes an extension of ours, seamlessly handling claims across your covered policies.

3. Personalized Claim Concierge Service

Zenjuries Claim Concierge assigns a dedicated account manager to oversee your claims. This personalized touch ensures clear communication, swift resolutions, and minimal disruption to your business operations.

4. Advanced Technology and Real-Time Updates

Using state-of-the-art claims management technology, Zenjuries Claim Concierge provides real-time updates on the status of your claims. This transparency lets you stay informed and reduces the time spent on follow-ups.

5. Proactive Claims Mitigation

Our partnership goes beyond simply reacting to claims. Together, we focus on proactive strategies to mitigate potential risks, reduce the likelihood of future claims, and help control your insurance costs.

6. Streamlined Communication

You’ll experience seamless coordination between FOA and Zenjuries Claim Concierge, ensuring your claims are handled quickly and efficiently. With both teams aligned, you can trust that your business is in good hands.

We aim to extend this exceptional service to all our clients, as we believe every business can benefit from expert claims management. However, we’ve found that our VIP clients often face more complex demands or a greater volume of claims, making this service particularly beneficial for them. Rest assured, whether you’re a VIP client, we are committed to providing personalized support and solutions tailored to meet your business’s unique needs.

Partnering for Your Peace of Mind

We continually seek out innovative solutions and partnerships, like our collaboration with Zenjuries Claim Concierge , to enhance the experience and protection we offer our clients. Whether you’re navigating a complex claim or looking to manage risks proactively, our goal is to make the process as seamless and stress-free as possible.

If you’re ready to experience the difference that expert claims management and personalized service can make, contact us today. Let us show you how our partnership with Zenjuries Claim Concierge can help safeguard your business and provide the peace of mind you deserve. Contact us now to learn more!

IRS Raises Mileage Rates for Second Half of 2022

Tue, 19 Aug 2025 00:12:09 GMT

For the first time since 2011, the IRS has made a midyear adjustment to the optional mileage rate used to calculate the deductible costs of operating an automobile for business and other specific purposes. The agency said the change is in recognition of recent gasoline price increases.

Rate Increase

In Announcement 2022-13, released June 9, 2022, the IRS increased the standard mileage rate for the final six months of 2022, starting July 1. During that period, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at the start of the year. The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of 2022. The rate for charitable organizations is set by statute and will remain unchanged at 14 cents per mile.

Background

The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. It is based on the fixed and variable costs of operating an automobile, such as fuel, depreciation and insurance. The federal government and businesses also use the rate as a benchmark to reimburse their employees for mileage. Taxpayers always have the option of calculating the actual costs of using their vehicle instead of using the standard mileage rates.

Standard Rates as of July 1

Business Use

The standard rate for business travel has been increased to 62.5 cents per mile.

Moving (Armed Forces Only) or Medical Care

The standard rate has been increased to 22 cents per mile.

Charitable Purpose

The standard mileage rate remains 14 cents per mile.

The Experience Modification Factor (EMF) Explained + How to Keep Your EMF Low

Tue, 19 Aug 2025 00:11:58 GMT

If you want to lower your workers compensation premium while prioritizing employee safety – this one’s for you!

As you probably know, workers’ compensation insurance is crucial in protecting employees in the event of workplace injuries or illnesses. And, an important piece of workers compensation insurance is called the Experience Modification Factor (EMF).

What is the Experience Modification Factor (EMF)? The EMF is a number that insurance companies use to adjust workers’ compensation insurance premiums.

And here’s the thing …businesses that really understand the EMF and use it to help reduce their risk can have a competitive advantage. Why? Knowing your EMF can help your company manage its costs effectively and correctly budget for insurance premiums. It can also help you better understand insurance premiums while prioritizing safety for your business and employees. As a bonus, it encourages better partnerships for insurers and more informed discussions about risk management.

Ready to improve your EMF? Connect with one of our team here:

How does the EMF affect insurance premiums? Businesses with a lower EMF (below 1.0) are usually awarded lower premiums. Those with a higher EMF (above 1.0) can expect to pay more.

Why is it used? The EMF helps promote workplace safety and encourages companies to prioritize employee safety. It incentivizes businesses to educate their employees, implement safety measures, and deploy risk management strategies.

How is the EMF calculated? The EMF is based on a formula set by the National Council on Compensation Insurance (NCCI) or state-specific rating bureaus. The calculation is based on the business’s past claims history. It compares the severity, frequency and cost of a business’s compensation claims to similar-sized companies in the same industry. It usually looks at the number of claims over a specified period.

The formula written out looks like (Actual Losses/Expected Losses) = EMF

The EMF is also affected by several other factors, including payroll size, industry classification for risk, and claims history.

How is it written? You can write the EMF as a ratio, where 1.0 is the average experience. If a company has fewer or less severe claims than expected, that number dips below 1.0. If they have more, it rises above 1.0.

Can a business’s EMF change over time? Yes! It is essential to review claims history and other factors for accuracy and to see where businesses can improve safety and risk management processes. Insurance providers will provide EMF information to clients for review.

The EMF is usually reviewed yearly and updated using the three most recent years of claims data. The most recent year is given the most weight. Industry changes, payroll changes, mergers and acquisitions are other factors contributing to a company’s changing EMF.

How do I keep my EMF low?

Identify and mitigate workplace risks
Implement a safety and training curriculum
Promote a culture of safety and update policies regularly
Ensure employees have proper tools, equipment, and protective gear
Identify trends in claims data and take steps to address them
Check that loss and payroll information is correct
Consider a return-to-work program
Work with insurance professionals and independent auditors to analyze your company’s needs

What Clients Say:

“First time I ever had a reduction in my workers comp insurance!!!” – Mark

“Mr. Daniel Morton, was very knowledgeable and respectful. He helped me find the best and most cost efficient workers comp and general liability insurance policies for my start up. He answered the questions that I had concerns about and took the time to explain the process to me. I also received a swift response via text, email and phone conversations. I will definitely spread the good news about the character of Fusco & Orsini and a job well done!” – Cortez

Our team is ready to partner with you to analyze your EMF and work to find solutions to keep it low!

You can connect with our team by completing THIS FORM.

Sources:

Zywave (Small Business Insights – What is an Experience Modification Factor?)

Reference list: OpenAI. (2023, July). [What are the most common questions and answers about the experience modification factor]. Retrieved from [ChatGPT.com].

Click. Search. Deny? How the Internet Shapes Your Insurance Rates

Tue, 19 Aug 2025 00:11:10 GMT

Imagine this: You’ve filled out all the applications, handed over years of loss runs, and spent hours with your insurance advisor putting together the perfect application. You’re expecting a fair proposal— maybe even a competitive one.

But when the numbers return, the price is sky-high. Or worse, you’re flat-out denied coverage.

What happened?

You didn’t change your operations. You didn’t file new claims. But here’s what did change:

An underwriter Googled your business—and they didn’t like what they saw.

The Truth Bomb: Your Risk Profile Starts Online

In today’s underwriting world, the internet is no longer just a place to market your business—it’s a key tool insurers use to evaluate your risk. And not just in cyber policies. I’m talking about every line of commercial insurance.

Underwriters—people sitting behind desks—are Googling your business before they dive into your application. They’re reviewing your website, checking your online reviews, scanning your social media, and analyzing any public data they can find.

Why? Because it gives them something your application doesn’t: a raw, unfiltered view of who you are.

To an underwriter, your digital footprint is more than a marketing tool—it’s a risk indicator. If you haven’t updated your site in years, your reviews talk about unsafe practices, or LinkedIn says you have 50 employees, but your application says 10, that’s a red flag.

The internet has become underwriting’s fastest and most accessible source of truth. The kicker? They rarely ask you to clarify what they find; they just make decisions based on it.

How Underwriters Use the Internet to Assess Your Risk

Today, underwriters are expected to do more than assess paperwork. Insurance companies expect their underwriters to make judgment calls quickly, efficiently, and with as much context as possible (and their results matter). That’s where the internet steps in.

Here’s precisely what they’re looking at:

1. Your Website

Your website is often the first stop. Underwriters are scanning for:

Services offered (Do they match what you stated on your application?)
Industries served (Are you operating in high-risk sectors you didn’t mention?)
Safety protocols (Is there any visible commitment to employee or customer safety?)
Outdated or inconsistent content (Is your site abandoned or inaccurate?)

A contractor who lists “roofing” services online but leaves them off the app? Red flag. A restaurant that does not mention alcohol service but has customer reviews that say otherwise? That matters.

2. Online Reviews and Reputation

Yelp, Google Reviews, Glassdoor—you name it, they’re looking.

If reviews mention:

Unsafe conditions

Accidents or injuries

Poor employee treatment

Unreliable service

…those comments don’t just impact your reputation. They shape the perceived risk of insuring your business.

3. Social Media Activity

Photos of team events, videos of job sites, and posts from employees all paint a picture. Sometimes, it is very different from what you submitted.

An underwriter might spot:

Machinery being used unsafely in a photo

Events suggesting high-liability exposure

Comments or posts that contradict your operational claims

4. Third-Party Data & News

They’re also pulling:

News articles about lawsuits or incidents

OSHA violations or citations

Public financial filings

Licenses and certifications

You might never know if there’s a gap between your application and what’s online—because they may just decline or rate you up without explanation.

Real-World Examples: What Underwriters Are Finding

At Fusco Orsini & Associates, we work with a wide range of small—to medium-sized businesses—contractors, hospitality companies, tech firms, nonprofits, and more. Across every industry, we’ve seen how overlooked digital footprints impact underwriting outcomes.

Here are a few eye-opening examples from the real world:

Construction Contractor – The “Invisible” Roofer

A mid-sized GC submitted an application that excluded roofing exposure—typically a high-risk activity. But their website? It proudly showcased drone shots of past roofing projects.

Result: The underwriter flagged this as a material misrepresentation. The quote returned with a roofing exclusion and a 20% rate hike.

Lesson: Your website is speaking on your behalf. Make sure it’s telling the right story.

Restaurant Group – The Hidden Liquor Risk

A trendy bistro in Southern California applied for liability coverage, listing itself as a “family dining” concept. But the underwriter found dozens of Instagram posts showing cocktail menus, bar events, and drink specials.

Result: The carrier added a liquor liability surcharge and assault and battery sub-limits to the general liability and liquor liability policies.

Lesson: If you’re serving alcohol, even occasionally, make sure it’s adequately disclosed—because your social media already did.

Tech Startup – Employee Count Discrepancy

A growing SaaS firm listed 12 full-time employees on their EPLI application. However, their LinkedIn company page (and public job board) showed 35+ team members across three offices.

Result: The underwriter adjusted payroll estimates, applied a higher seld-insured retention, and required updated financials before issuing a quote.

Lesson: Inconsistent headcount online signals potential dishonesty—even unintentional.

Nonprofit Organization – The Safety Oversight

A nonprofit that hosted youth sports events did not mention safety protocols on its website. Its event photos showed kids playing without supervision, helmets, or signage.

Result: The underwriter applied exclusions related to participant injury and refused to offer abuse/molestation coverage, a standard for youth-serving organizations.

Lesson: Lack of visible risk controls online can lead to denied or restricted coverage, even when protocols exist in real life.

The Risk Is Real: How Your Digital Footprint Impacts Coverage and Cost

Most business owners assume underwriting is driven purely by what they submit—claims history, applications, safety manuals. But when your online presence tells a different story, the underwriter doesn’t call to clarify —they just make assumptions.

Here’s how that plays out in practice:

1. Higher Premiums

If your digital footprint suggests you’re riskier than you appear on paper—more employees, more services, higher exposure—you’ll pay for it. Carriers build that uncertainty right into the rate.

And the frustrating part? You may never know why your quote was 20% higher than expected.

2. Coverage Restrictions

When underwriters see potential liability that isn’t addressed in your application, they act defensively:

Add exclusions (e.g., no roofing, no liquor, no abuse/molestation)

Limit sub-limits (e.g., reduce cyber, crime, or EPLI limits)

Require additional endorsements or umbrellas

It’s not personal—it’s risk mitigation.

3. Flat-Out Denials

A mismatched online presence can sometimes cause the whole deal to fall apart. If underwriters don’t trust the story they’re seeing, they may decline to quote altogether.

One missed detail—a public safety complaint, a misleading service description, or an old accident report still floating online—can kill your application before you can explain.

4. Damaged Credibility

Even if the underwriter still moves forward, conflicting digital signals damage your credibility. That affects:

Renewal pricing

Claims handling

Negotiating power in challenging markets

You don’t get a second chance to make a first impression—and in underwriting, that first impression is often made through Google.

What You Can Do: Audit Your Online Presence Like an Underwriter

Here’s the good news: If underwriters can find it, so can you. And once you know what they’re looking for, you can take back control.

Here’s where to start:

1. Google Your Business Like You’ve Never Heard of It

Search your company name, services, leadership team, and past incidents. What comes up? Would a stranger trust you based on what they see?

2. Review Your Website with a Risk Lens

Is your site up to date?

Are your services clearly and accurately defined?

Are there any outdated blogs or photos that might raise red flags?

This isn’t just a marketing audit—it’s a liability review.

3. Clean Up Your Social Media

Review posts, photos, and tagged content. Make sure nothing contradicts your operations, safety standards, or values. And if your employees post publicly from the job site, coach them on what’s appropriate.

4. Align All Your Public Profiles

Your headcount, services, and leadership team should align with LinkedIn, Glassdoor, and industry directories. Inconsistencies make underwriters uneasy.

5. Ask an Advisor to Pre-Audit You

We do this all the time for clients. Before you submit that application, let us scan your digital footprint the way an underwriter will. That’s how we prevent surprises—and help you tell the most accurate, insurable story.

Mike’s Take: Use the Internet to Your Advantage

Look, this isn’t about playing games or hiding things. It’s about ensuring your digital identity reflects your business identity. In today’s insurance world, perception and reality better match, or you’ll pay the price.

Underwriters aren’t just looking at what you say. They’re looking at what the internet says about you. And if you’re not managing that narrative, someone else is.

Click. Search. Deny?

Not on our watch.

Let’s Talk

Not sure where to start? Let’s do a digital risk audit together. I’ll show you what underwriters see—before they ever quote you. Click here to connect with us today!

Your Commercial Liability Insurance May Cover You For The Present, But What About The Past?

Tue, 19 Aug 2025 00:10:49 GMT

Prior Works Exclusion Explained

If you own a construction company, you already know how critical it is to have comprehensive general liability insurance. This insurance will protect your company if any damages or injuries occur due to your work.

Not fun stuff to think about, we know.

Still, it’s important.

Your insurance coverage could save your business, or, better yet, you could lose it if you’re not properly covered and are served with an expensive lawsuit.

That’s why it’s essential to ensure you’re covered for the work your company is doing today and the work you’ve done in the past . There’s an exclusion that more and more insurance companies are adding to their general liability insurance policies that restricts their coverage of past works.

A “prior works exclusion” is an endorsement sometimes attached to a contractor’s general liability policies. The exclusion eliminates coverage for injury or damage resulting from the insured’s work completed before a stated date.

For example, a remodeling company, Pretty Good Remodelers, remodeled a deck in 2010 while Acme Insurance covered them. Acme’s policy expired in 2011, and Pretty Good Remodelers bought a new policy through XYZ Insurance. Later, in 2011, the deck failed and caused damage to the home.

Due to the prior work exclusion in the general liability insurance policy that Pretty Good Remodelers got from XYZ Insurance, their new insurance company won’t cover the damage. Further, if the policy is written on an occurrence form basis, the prior carrier (ACME Insurance) is not responsible for covering the damage. Therefore, Pretty Good Remodelers may be 100% liable for all damages.

In some cases, an insurance company automatically includes prior work exclusions, especially if the client had gaps in insurance coverage in the past. However, the prior work exclusion can often be removed, especially if the broker requests it.

We remove the prior works exclusion whenever possible. If you want to know if your general liability insurance policy includes a prior works exclusion, we’d be happy to review it and let you know. Contact us by completing this form.

Rethinking Insurance Sensitivity: Business versus Personal

Tue, 19 Aug 2025 00:10:33 GMT

As an agency principal who works closely with business owners on both sides of their insurance portfolios, I’ve noticed an interesting pattern that says a lot about how we perceive risk, value, and cost. Here’s my take on a surprising contrast I see almost every day.

Over the years, as an independent insurance agency principal, I’ve worked with many clients who trust us to protect their businesses and their personal assets. In doing so, I’ve noticed something that gets me thinking.

Regarding business insurance, most clients seem relatively comfortable paying significant premiums. In some cases, they spend tens of thousands of dollars annually. There is usually very little resistance, even when rates increase.

However, when those same clients receive a renewal for their homeowner’s insurance with a two-hundred-dollar increase, it often prompts a call or email.

Business Insurance: Viewed as an Investment

Business owners tend to see commercial insurance as part of their operations. It is protection, yes, but also a financial tool that supports business continuity.

Why the comfort with higher costs?

Risk in business is often easier to quantify. A lawsuit, property loss, or data breach can quickly affect revenue.
Contracts, leases, or legal regulations require many commercial coverages.
Premiums are typically paid through business funds, which can feel separate from personal finances.

From that perspective, commercial coverage feels like a business asset rather than a burdensome expense.

Personal Insurance: A Different Mindset

On the personal side, even small premium increases tend to draw more attention. Clients often ask why their homeowners’ insurance went up and whether their agent can shop around.

This reaction is understandable.

These personal dollars come straight out of the client’s household budget.
Homes and cars are emotionally significant. Clients tend to feel more protective about them.
Insurance companies have historically marketed personal insurance as a commodity. Price has become the dominant narrative, often overshadowing value.

When rates rise, the instinctive response is often frustration, even if the cause is external or out of the client’s control.

What This Says About Risk Perception

This pattern reveals something important. Even when financial risk is just as high at home as it is in business, people’s responses to insurance costs can be very different.

At work, business owners tend to think logically and strategically about risk.

At home, they often respond emotionally, shaped by habits and perceptions.

The same person is making the decisions in two different roles, yet their reactions vary dramatically.

Advice for Dual-Policy Clients

If you have both business and personal insurance, primarily through the same agency, here are a few things to consider:

Evaluate coverage based on risk exposure, not just price. Ask yourself what you stand to lose without the proper protection.
Be aware of the current insurance landscape. Homeowners and auto markets are experiencing shifts due to inflation, catastrophe frequency, and reinsurance pressure.
Work with someone who understands your complete picture. An agency managing your business and personal insurance can align your coverage for greater efficiency and value.

Final Thought

When your next insurance renewal arrives, whether for your home or your company, take a moment to consider your response.

Are you thinking like a business owner or a consumer?

Understanding how we view insurance in different settings is not just interesting. It can lead to better, more consistent decisions that reflect the actual value of protection.

Let’s talk about your complete coverage picture.

Your business auto insurance policy does not cover your tools and equipment!

Tue, 19 Aug 2025 00:10:14 GMT

One of the most significant points of misinformation in commercial lines insurance relates to the business auto policy and coverage for tools and equipment.

Did you know that, in most cases, the business automobile insurance policy DOES NOT pay for losses to your tools and equipment?

You read that right.

In a survey of our team at Fusco Orsini & Associates, a question that we receive repeatedly relates to tool and equipment coverage.

Read on or watch our video for more!

First and foremost, you must advise your agent of additional tools and equipment attached to your vehicle.

YOUR BUSINESS AUTO POLICY MAY PAY FOR LOSSES TO PERMANENTLY ATTACHED EQUIPMENT

Think about service bodies, toolboxes, welders, sound systems, navigation systems, etc.

But if your agent is unaware of these additional items, they cannot correctly notify the insurance company.

Thus, the insurance company will not know, and the policy structure and rating are incorrect.

If you have permanently attached equipment to your vehicle, your business auto policy will pay for its losses, but they must know the items.

YOU NEED INLAND MARINE INSURANCE FOR ITEMS UNATTACHED TO YOUR AUTO

If you transport unattached tools and equipment in your vehicle, you need inland marine insurance to protect the items.

The inland marine policy is robust and has many insuring sections available.

Think about your construction tools and equipment, laptops, electronics, machinery, inventory, ladders, and anything valuable and at risk of loss while in your vehicle.

You will want to insure these items on an inland marine policy in the event of theft, fire, vandalism, and several other perils.

WHAT IS THE COST OF INLAND MARINE INSURANCE?

We answer this question in a previous BLOG/VLOG, which you can find here.

Although we direct the BLOG to contractors, most businesses can use the information as a reference.

HOW CAN FOA HELP ME OUT?

Our team at FOA has several years of experience protecting business owners and correctly placing business auto and inland marine insurance. Call us at 858-384-1506 or complete the form at the bottom of our BLOG to connect. Thanks again for visiting!

Mid-Year Insurance Review Checklist for Business Owners

Tue, 19 Aug 2025 00:09:47 GMT

Insurance reviews or “checkups” for your business might not be the first thing on your summer to-do list. But summer is actually an ideal time to step back, review your current coverage, and identify any gaps, before the busy fall and year-end seasons take over.

Why do an insurance checkup?

The goal of an insurance checkup is simple: To make sure your business isn’t over- or underinsured.

Here’s one way to think about it:

Have you upgraded your home recently…say, a major kitchen remodel? If so, you probably know it’s important to update your homeowners insurance to reflect those improvements. Otherwise, you risk being underinsured in the event of a loss.

The same principle applies to your business.

As your business grows, evolves, and invests in upgrades, your insurance coverage needs to keep pace. After all, you’ve worked hard to build something stronger. Why leave its protection to chance?

Why Summer Is the Perfect Time for a Coverage Review

For many industries, summer offers a natural mid-year breather. That makes it a great time to step back, assess your current insurance policies, and identify gaps before the busy fall and year-end seasons roll around.

If you haven’t looked closely at your coverage since your last renewal, now is the time. A quick review could reveal gaps or inefficiencies that put your operations at risk or cost you more than necessary.

What to Review During Your Mid-Year Insurance Checkup

According to Zywave, here are key areas to assess:

Property and Equipment Values: Renovations, upgrades, or equipment purchases can impact your coverage needs.
Revenue and Income Levels: Significant changes may require updates to business interruption or liability coverage.
Business Interruption & Liability Limits: Make sure your current limits are adequate and not leaving you over- or underinsured.
Policy Exclusions: Know what’s not covered. Exclusions are easy to miss, but they can create major coverage gaps.
Employee Count and Payroll: Changes here can impact your workers’ comp obligations and coverage levels.
Vehicles and Drivers: Ensure all drivers and company vehicles are listed and correctly insured under your commercial auto policy.
Contracts, Leases, or Business Structure Changes: These often introduce new liabilities or insurance requirements.
Cybersecurity Coverage: If your team is remote or traveling this summer, cyber risks typically go up. Make sure you’re protected.
Regulatory Changes: Stay ahead of changing insurance-related regulations that may apply to your industry.
Seasonal Risks: From summer wildfires and heat-related job site hazards to slip-and-falls and fire hazards in the fall, seasonal shifts require proactive coverage.

Ready to Get Started?

A mid-year checkup isn’t about selling you more insurance…it’s about making sure the policy you do have is still protecting the business you’re working hard to grow.

Connect with one of our experienced insurance brokers to:

Review your current policies

Uncover gaps or outdated limits

Ensure compliance with evolving requirements

Tailor your coverage to your current season of business

Let’s talk. Click here to inquire about your mid-year checkup.

Sources: Small Business Insights, Why Small Businesses Need an Annual Insurance Checkup | Zywave

You have several options when hiring an insurance company

Tue, 19 Aug 2025 00:09:38 GMT

Hi, this is Mike with Fusco Orsini and Associates. At FOA, we provide struggle-free insurance and risk management services for busy people.

Now, I want to, first of all, thank you for the opportunity to earn your business and, more importantly, to earn your trust. Now, we know that you have many options in today’s world of purchasing insurance. You can use a captive insurance company such as State Farm, and State Farm agents only represent their own company. You can use direct writers such as Geico. You can use digital insurance companies online, the new wave of insurance technology, or you can choose an independent insurance agent such as Fusco Orsini and Associates. Now, I want to explain to you some of the differences between these models and how I think, or our staff thinks, that we can best serve you as an independent insurance agency.

CAPTIVE INSURANCE EXPLAINED

First of all, as I mentioned before, a captive insurance company you may have heard of is State Farm, Farmers, Allstate, AAA. Their agents only represent their company. Also, captive insurance companies don’t contract with independent insurance agencies such as us. So if you want to seek a proposal or advice from one of the captive insurance companies, you need to contact one of their agents directly.

DIRECT WRITERS

The second is direct writers, Geico, for example. Now, Geico has agents in call centers, some local agents, but mostly they’re in call centers. You call them on a 1-800 number in most cases. If you purchase your policy after the fact, you’re typically going to wind up in a service center. Again, this company does a great job, but they only represent their insurance products and have their insurance agents.

INSURTECH

Nowadays, the new third is insurtechs, technology-based online insurance programs that you can purchase directly from your desktop or even an app. Again, great forward-thinking companies. Insurtechs deliver an excellent client experience, significant backing, and robust technology. And we do represent many of the insurtechs because FOA is at the forefront of insurance technology. Also, we believe a lot in this distribution method. But again, if you purchase directly from an insurtech, you’re more than likely going to be dealing with them through an online chat platform, or you’re not going to get the same agent every time you call.

WHY FUSCO ORSINI & ASSOCIATES?

Now, at Fusco Orsini and Associates, we emphasize our people and represent you, the client. We do not represent one insurance company. Instead, FOA represents several hundred insurance companies and insurance programs. And when you call, you’re going to get your agent, you’re going to get an account manager, and you’re going to know your service people. So these are all value adds and reasons that we feel the independent agent channel is the best way to hire an insurance professional.

WHAT IS A FREE CLIENT PACKAGE?

Couple of the things I want to mention that make FOA a little bit different. We offer client packages for every one of our business clients. Be sure to ask your agent or your broker about our client packages. Client packages include several free risk management, compliance, loss prevention programs, and products that we provide to you to run your business best and manage your risk. Again, Fusco Orsini and Associates is an independent insurance agency. We represent you, the client, and represent several hundred insurance products and programs that we’re happy to offer you and be a resource for you.

IN CONCLUSION

If you have any questions for me directly, you can feel free to reach me at (858) 384-1507 . You’re more than likely watching this video because you received an email or text from your agent. Feel free to ask your agent or broker any questions. Again, we are keen on education. We’re keeping ourselves always up to date on the marketplace and have a strong understanding of what types of products are available for you. Thanks again for your time.

We look forward to serving you. We appreciate the opportunity. If you are interested in speaking with us about how an independent insurance agency can help you best, please complete the form below.

Partner with 4C Advising on Your Insurance Premium Audit Support

Tue, 19 Aug 2025 00:09:08 GMT

Insurance premium audits are an essential part of commercial insurance. Insurance companies conduct audits to ensure that the premiums charged to a business accurately reflect the level of risk and exposure during the policy period. This process takes place after the end of a policy term and can apply to different insurance policies, including workers’ compensation, general liability, and automobile insurance. Although the process of insurance premium audits is critical, it is often misunderstood.

The concept behind an insurance premium audit is quite simple. Insurance companies determine business insurance premiums based on risk factors, such as payroll, sales figures, or the number of employees. However, the actual figures may differ from these projections. An audit enables the insurer to adjust the premium to match the risk exposure accurately. Depending on the initial estimates, an audit may result in a refund for the policyholder if the estimates are too high (with some exceptions, as explained by Mike here.) or an additional premium charge if the estimates are too low.

The audit process can appear overwhelming to many business owners since it requires a thorough examination of financial and operational records, and the outcome can significantly affect a company’s finances. This is where services like those provided by 4C Advising come in. By assisting clients through the insurance premium audit process, 4C Advising aims to simplify the experience, guaranteeing that businesses are well-prepared, compliant, and ideally positioned to avoid unexpected additional premiums. With expert guidance, enterprises can navigate the audit process smoothly, ensuring that their insurance coverage accurately reflects their actual operations and mitigating any surprises in their insurance costs.

DOCUMENTS AND INFORMATION

During an insurance premium audit, businesses must provide various documents and information to accurately assess their operations and risk exposure. This documentation typically falls into several categories:

Financial records, such as general ledgers, tax returns, and income statements, provide a complete view of the business’s financial health and activities.
Payroll journals, federal and state tax reports, and individual earnings records are essential for verifying the amounts paid to employees. This is particularly crucial for workers’ compensation and some liability insurance audits.
For certain types of insurance, auditors may require documentation related to sales and revenue, such as sales tax returns and income statements.
Certificates of Insurance are essential for subcontracted work to provide proof of insurance coverage. This affects the liability of the hiring business and workers’ compensation premium calculations.
Proper classification codes and premium calculation require employee records that include the number of employees, job classifications, duties, and hours worked.
Operational documents such as contracts, service agreements, and business operation descriptions are crucial in helping auditors understand the business’s activities and associated risks.
Additional specific documents such as detailed project descriptions, inventory records, or business activity summaries may be required based on the business type and insurance policy.

CHALLENGES FACED BY BUSINESSES

Businesses often face obstacles when dealing with insurance premium audits, such as:

Gathering and presenting detailed financial and operational documents can be overwhelming, especially for small businesses without dedicated accounting departments.
The audit process can be time-consuming and require significant effort from business owners or staff to collect documentation and information, which can detract from day-to-day business operations.
Understanding insurance classification codes is crucial to ensure correct premium calculations, but it can be challenging due to their complexity. Verifying the accurate use of these codes is also essential to avoid inaccuracies in classifying employees or business activities.
Differences between estimated and actual exposures can result in disputes over audit findings, particularly if the audit significantly increases premiums. Resolving these disputes requires an in-depth understanding of audit processes and insurance principles.
The audit involves sharing sensitive financial and operational information with the insurance company, raising concerns about data security and privacy.
The frequency and timing of audits can be disruptive for businesses undergoing regular audits, particularly if they are not scheduled conveniently or occur during peak business periods.
Many businesses fear that undergoing an audit will increase premiums, especially if there has been significant growth or changes in payroll or operations. This can cause anxiety and reluctance to engage in the audit process fully.
Insufficient insurance expertise may make it hard for businesses to understand audit processes and advocate for their interests.

These challenges underscore the importance of having knowledgeable support, such as that provided by 4C Advising , to help navigate the audit process, ensure compliance, and potentially mitigate the impact of additional premium adjustments.

HOW CAN 4C ASSIST YOU DURING AN INSURANCE PREMIUM AUDIT?

4C Advising offers various services to assist businesses with insurance premium audits. These services simplify the process, improve accuracy, and reduce potential financial impact. Here’s a brief overview of how 4C Advising can help:

4C Advising assists businesses in preparing for audits by reviewing necessary documentation and ensuring that all records are accurate and complete. They help classify employees correctly, organize financial records, and ensure all relevant information is readily available for the auditor during pre-audit preparation.
At 4C Advising, we thoroughly comprehend insurance policies and audit procedures. We provide expert guidance on all aspects of the audit process, including interpreting complex insurance terminologies, helping businesses understand their policies, and giving insights into how audits are conducted.
At 4C Advising, we offer audit representation services to help businesses during the audit process. As part of this service, we act as a liaison between the business and the insurance company, representing the business’s interests. Our team attends meetings, responds to auditor inquiries, and explains and justifies various business operations and classifications. We work to ensure that the audit process is fair and that the business is adequately represented.
If there are any discrepancies or disputes regarding the audit findings, 4C Advising can assist the business in resolving the issue by negotiating with the insurance company on their behalf. This involves challenging incorrect classifications, disputing erroneous charges, and ensuring that all adjustments are fair and justified.
At 4C Advising, we go beyond the audit process and offer risk management consulting services to assist businesses in adopting practices that can result in better audit outcomes in the future. Our consultation services include advice on record-keeping practices, employee classification, and operational changes that can minimize risk and lower insurance premiums.
At 4C Advising, we provide education and training to business owners and staff to help them better understand the audit process, insurance requirements, and how to maintain compliance. This will empower businesses to be well-prepared for future audits and better understand their insurance policies.
4C Advising offers ongoing support to businesses even after the completion of their audit. This includes monitoring for any potential issues with future audits, advising on policy renewals, and keeping them informed about any changes in insurance regulations that could affect their business.

Businesses can confidently navigate the insurance premium audit process with 4C Advising, ensuring compliance and effective cost management.

To learn more about our insurance premium audit support services, please get in touch with Mike Fusco via email at mike@4cadvising.com or by phone at 858-384-1507. Alternatively, you can fill out the form at the top of this post.

How to Keep Your Workplace Safe and Employees Thriving This National Safety Month

Tue, 19 Aug 2025 00:08:58 GMT

Workplace safety takes center stage every June during National Safety Month, a campaign led by the National Safety Council.

The goal of National Safety Month is to raise awareness about the leading causes of preventable injury and death, and to “help keep each other safe from the workplace to anyplace.”

This month is an excellent time for your organization to refocus on safety initiatives and reinforce a safety-first culture from the top down. It’s not just a time to talk about safety, it’s a time to ensure you’re building a strong company that is improving, serving, growing, and thriving.

To help guide you, National Safety Month highlights a different topic each week. Here are the 2025 topics:

Week 1: Continuous Improvement

Employers should review their safety policies and provide training refreshers to prevent workplace injuries. Examples of workplace injuries may include overexertion, machine entanglement, repetitive motion injuries, car accidents, exposure to harmful materials, workplace violence, and slips, trips, and falls. (We recently talked about fall prevention and have a free fall prevention training tooklit here.)

This is also a good time to conduct audits to identify areas for improvement and benchmark your company’s safety practices against industry standards. Employers may also choose to conduct drills, such as fire or spill drills, to prepare their team for such emergencies and update safety procedures as needed.

Finally, as employers reexamine their risks, they may seek the guidance of a risk management professional who can help develop a strategy for the future (we are standing by).

Week 2: Employee Engagement

If you expect your team to adopt workplace safety best practices, they must be engaged! A few ways to do this are by forming a safety committee, empowering employees at different levels to contribute safety input and help make safety decisions, and encouraging team members to report safety hazards or near-misses without fear of getting in trouble. Employers can also offer safety incentives, such as rewarding consistent safety practices, injury prevention, and celebrating safety milestones.

Week 3: Roadway Safety

In 2023, transportation incidents were the most frequent cause of fatal occupational injuries, resulting in 1,942 deaths (36.8 percent of all work-related fatalities), according to the Bureau of Labor Statistics. Roadway safety is a topic all employees should be discussing with their team, particularly around the risks of distracted driving (e.g., texting, eating), fatigue, speeding, driving under the influence, driving in unusual weather conditions, and not maintaining vehicles.

Employers should also understand the importance of commercial auto insurance, also known as business auto insurance. A good way to determine if you need commercial auto insurance is to ask yourself this question: aside from commuting to and from work, do I regularly need my vehicle to operate my business? We talk more about commercial auto insurance vs. personal auto insurance here.

Week 4: Wellbeing

According to the World Health Organization, 83% of workers in the United States suffer from work-related stress. There are many ways employers can take a proactive stance on employee wellbeing. In addition to establishing safe working conditions and workplace practices, employers should work to normalize discussions around mental health, social connection, and a healthy relationship with work.

Fortunately, there are various wellness solutions for small and medium-sized businesses today. Supplemental programs like a Nurse Triage Membership or Employee Assistance Program (EAP) are similar to having a wellness professional on staff who provides confidential support to employees facing physical or mental challenges before they become too overwhelming to manage.

At Fusco Orsini & Associates and 4C Advising, we believe you can build your strongest business yet! A big part of strengthening your business comes from prioritizing your people, fostering their wellbeing, and creating a safe and proactive workplace for them to thrive.

If you are ready to assess your risk and explore HR and wellness solutions for your small or medium-sized business, we are ready to help! Partner with us HERE.

Sources:

June is National Safety Month | National Safety Council

Three reasons why you should never allow your insurance policy to cancel!

Tue, 19 Aug 2025 00:08:26 GMT

Most insurance policyholders understand the importance of insurance protection at the time of a loss. Whether the loss is an auto accident, a structure fire, a theft, or even a lawsuit, people know that an in-force insurance policy may provide coverage if properly written and maintained.

But it’s also essential to understand how an insurance cancellation can create negative consequences for yourself or your business.

I want to speak to you about maintaining your coverage and protection. In my video, I speak about three reasons to never allow your insurance policy to cancel. Since then, I have added two additional reasons because of the hardening insurance marketplace. I hope this BLOG helps!

POLICY EXCLUSIONS THAT CREATE GAPS IN COVERAGE

Policy rewrites contain prior work exclusions after a lapse, especially in industries such as construction. A prior work exclusion will create a coverage gap and leave a business unprotected for work performed before the policy effective date.

THE LOSS OF YOUR RETROACTIVE DATE

If you have a claims-made policy, you may lose your retroactive date if your policy lapses. We explain retroactive dates in videos on our YouTube channel. Consider claims-made retroactive dates if you hold a professional or management liability policy.

YOU MAY LOSE DISCOUNTS AND PAY HIGHER PREMIUMS

Insurance companies provide discounts to customers that remain consistent. It costs an insurance company lots of money to send customers cancelation notices, payment reminders, and policy termination endorsements. It’s also costly to rewrite a policy. If you cancel, your discounts will erode.

REASON #4

Your policy may cancel, and you may not know it. We keep customers informed, but that doesn’t always guarantee message delivery. We recommend automated payments to ensure continuous coverage and protection for accidents and catastrophes.

REASON #5

You may find yourself having difficulty securing a new policy! As the insurance market hardens, carriers are pulling back on writing business by tightening their underwriting requirements. Often, a coverage lapse will cause an insurance underwriter to decline your application, leaving you without protection.

FUSCO ORSINI & ASSOCIATES KEEPS CLIENTS INFORMED

You came to the right place if you don’t have an insurance representative who assists with policy cancellations.

At FOA, we built systems to help 93% of our policyholders maintain their coverage during the policy term.

Do not hesitate to contact our agency at 858-384-1506 if you require assistance with your insurance needs. You may also complete the form below.

We’ll talk to you soon!

Workplace Impairment: How to Address Substance Abuse, Mental Health, Fatigue, and Stress

Tue, 19 Aug 2025 00:08:23 GMT

Workplace impairment can take many forms, from substance abuse to mental health issues like fatigue and stress. In this blog post, we’ll be taking a closer look at workplace impairment and how to address it. Fatigue and stress are two of the most common forms of workplace impairment, and they can seriously impact employee productivity and safety. Employers must be aware of the signs of workplace impairment and take steps to address them.

ADDRESSING WORKPLACE IMPAIRMENT

There are a few key things to remember when addressing workplace impairment. First, it’s essential to recognize that not all workplace impairments are created equal. Some impairments, like substance abuse, can directly and immediately impact employee safety and productivity. Others, like stress and fatigue, can be more subtle but can still lead to severe problems down the road. As such, it’s essential to tailor your approach to each situation.

TAKE A HOLISTIC APPROACH

Second, it’s essential to take a holistic approach to addressing workplace impairment. This means looking at the whole person – not just their job performance. Often, underlying issues like stress or mental health problems can be at the root of workplace impairment. By addressing these underlying issues, you can help prevent workplace impairment before it even starts.

WORKPLACE IMPAIRMENT AFFECTS EVERYONE

Finally, workplace impairment is an issue that affects everyone in the workplace – not just those who are impaired. Involving as many people as possible in the conversation is essential. This includes managers, HR professionals, and even employees themselves. By working together, we can help create a safer and more productive workplace for everyone.

REACH OUT TO US!

Do you have any experience with workplace impairment? How do you think employers should address it? Share your thoughts in the comments below!

Please reach out for a copy of our Impaired Driving presentation and other valuable resources to assist your company with Workplace Impairment. Thank you for visiting!

What is a Workers’ Compensation Premium Audit?

Tue, 19 Aug 2025 00:07:50 GMT

What is a Premium Audit?

A routine part of Workers’ Compensation Policy

Because you rely on your insurance broker to be thorough, informed, and detail-oriented, you can expect that terms and regulations on your policies will be adhered to – as stated and on time.

One of those features is the Premium Audit, an important part of your Workers’ Compensation Policy. Each time your policy expires, the audit is completed by your insurance carrier.

For much the same reason you carry workers’ comp – to protect you if an employee gets hurt in the workplace – a final audit is a form of protection. That closer look can confirm that your company is paying the appropriate totals for your insurance, which is set up based on estimates you provide at the time of application. The premium audit holds the policy up to actual numbers, including operations and payroll costs.

What to expect

The format for conducting a premium audit is up to your insurance carrier, who will determine your company’s size and classification. You can provide the necessary information through several platforms:

In-person

An auditor may come to your site to see operations firsthand, making it easier to create job classifications.

By telephone

After you return a form to the insurance carrier, an auditor calls you for an interview to finalize the audit.

By mail

You fill out a detailed form and send it to the insurance carrier.

What is my part?

First of all, you can speed up the process by getting the appropriate records organized in advance. An important part of the auditor’s responsibility is job classification, confirming that it is properly classified.

Those forms include:

Forms 941 and 943 from your Quarterly Federal Tax Return
Forms 1099, W2, and W3 from your Federal Taxes
State Quarterly Unemployment Insurance Tax Reports
Records from a contractor(s)
Payroll journals
Overtime paid
Clerical workers

Non-compliance

When you purchase Workers’ Compensation insurance, you agree to the Premium Audit on the back end. Sometimes there are penalties for non-compliance, meaning a lack of participation in the audit. Or you could have your insurance policy canceled, which would remove the security you get from having a Workers’ Compensation policy in the first place.

To build on your success, you need coverage for the unexpected, but you also want to be sure you’re paying the proper rate for the number of employees your company has on its team. And if the process sounds interminable – it actually takes just about 90 days, a pace that the better organization on your part quickens.

For more information, please call or text: (858) 384-1506 or email hello@foagency.com.

Thank you for reading, and we wish you the best.

Employers: STOP IGNORING INJURY PREVENTION! It Could Save Your Business!

Tue, 19 Aug 2025 00:07:12 GMT

If you’re an employer, it’s time to start paying attention to injury prevention. Too often, businesses focus on the bottom line and ignore the potential for injuries in their workplace. This can be a costly mistake – not only in terms of medical bills and workers’ compensation claims but also in terms of lost productivity and damage to your company’s reputation. In this blog post, we’ll discuss some of the most common safety hazards in the workplace and how you can prevent injuries from happening.

TAKE THE FIRST STEP

One of the first steps in injury prevention is conducting a risk assessment. This helps you identify potential hazards in your workplace and determine the best way to mitigate them. For example, if you’re a construction company, you’ll want to assess the risks associated with working at heights, using power tools, and dealing with hazardous materials. Once you’ve identified the risks, you can take steps to reduce them. This might include providing safety equipment like fall protection gear or implementing new safety procedures.

EDUCATE YOUR EMPLOYEES

Another important aspect of injury prevention is educating your employees about safety hazards. This can be done through regular safety meetings, training videos, and written materials. Ensure your employees know how to identify potential risks and what to do if they encounter them. By educating your employees, you can help create a culture of safety in your workplace.

COMMUNICATION IS KEY

Finally, it’s essential to have a sound communication system in place in case of an accident. This includes having emergency numbers posted in conspicuous places, readily available first-aid kits, and ensuring your employees know the procedures for reporting an accident. Being prepared can help ensure that any accidents are dealt with quickly and effectively.

HOW CAN FUSCO ORSINI & ASSOCIATES HELP?

Injury prevention is an essential issue for all employers. By taking steps to assess risks, educate employees, and be prepared for accidents, you can help create a safe workplace and avoid costly injuries. For more information on injury prevention, check out our blog or contact us today. Thanks for reading!

Please feel free to share this blog post with your network. Injury prevention is essential for everyone!

3 ways to ace your workers’ compensation final audit!

Tue, 19 Aug 2025 00:07:03 GMT

I think it’s safe to say that business owners, CFOs, accountants, controllers, or even bookkeepers cringe at a workers’ compensation final audit. Most business audits are painful; they take time and resources and sometimes create unexpected financial consequences, such as additional premiums or tax bills.

I can’t speak to IRS audits, but I can say that workers’ compensation final audits are not as painful if adequately prepared. At Fusco Orsini & Associates, we keep our clients updated throughout the year, so there are no surprises at the final audit. We believe that any quality insurance agency should do the same.

Two weeks before workers’ compensation expiration, we send all clients an email labeled ‘DO NOT Miss Your Chance to Ace Your Workers Compensation Audit!”

In this BLOG and VLOG, I will provide three tips on acing your workers’ compensation audit. There are several others, but I think these three will get you off to a great start. Don’t hesitate to reach me directly at 858-384-1507 with questions. You may also follow our agency for more helpful tips by visiting our social media links below.

TIP # 1 – COMPLY!

I know everyone is busy and overworked. I feel the same at times. But it’s essential to designate resources to ensure your workers’ compensation final audit is completed! If you do not have time to work with the auditor or complete the paperwork, please delegate it to a colleague or partner. A timely response is essential to avoid a non-compliant audit.

The nasty letters and bills arrive once an audit is returned as non-compliant. This sets everyone off on the wrong foot; nobody appreciates the letters or bills, but keep in mind that the insurance code in most states allow carriers to bill for estimated premium if the audit isn’t handled.

Also, a non-compliant audit may negatively affect your experience modification factor. An increase in your experience modification factor will cause you to pay higher rates than peers in your industry.

Finally, it takes lots of time to unravel a non-cooperative audit. If you don’t wish to spend extra time dealing with an activity that many consider a timewaster, it’s essential to comply with your audit!

TIP #2 – ORGANIZE YOUR RECORDS!

Any quality business has adequate and organized records. Let’s face it – poor recordkeeping causes friction when trying to grow a company, nevertheless, manage one effectively. The person or organization handling the process must receive records that make sense with any audit. And the same goes for your final work comp audit.

Two weeks before policy expiration, we email our clients with a list of the documentation to prepare for the audit. Here are some items to have in mind:

Tax Information

W2 forms

1099 forms

Form 941 and 944

Payroll Records

Accounting ledger

Payroll journal

Overtime payroll records

Material and labor payments

TIP # 3 – COLLECT INSURANCE CERTIFICATES

If you hire subcontractors or independent contractors, you must collect certificates of insurance and provide them to the audit.

Certificates from subcontractor

Certificates from independent contractors

Please remember that if you do not supply certificates of insurance for your subcontractors and independent contractors, you may have to provide coverage for them and pay premiums.

We find that clients receive additional premium bills at the final workers’ compensation audits because they often fail to provide certificates of insurance. Although we can often dispute the audit and supply certificates for a revised audit, it takes time and resources to get it done.

TIP # 4 – HIRE AN AGENCY THAT KEEPS YOU IN LINE FOR THE FINAL AUDIT

If you’re having issues with your final workers; compensation audit, you need to find an agency that understands and will keep you in line for success.

Our team at FOA helps our clients prepare for their final audits, and we are happy to do the same for you. You may call us at 858-384-1506 to connect with an agent or complete the form below to connect with us. Thank you again for visiting!

Info on Controlled Insurance Programs That Every Contractor Should Know

Tue, 19 Aug 2025 00:06:23 GMT

One of the most misunderstood or overlooked insurance products for construction industry professionals is Controlled Insurance Programs (CIPs).

It’s essential for contractors to understand CIPs, whether an OCIP (Owned-Controlled Insurance Program) or CCIP (Contractor-Controlled Insurance Program).

Mike Fusco explains CIPs and provides info that every contractor should know in this video.

You should take the time to watch if you believe the procurement of a CIP is suitable for your project or if you’re looking at a project that involves a CIP.

WHAT IS A CONTROLLED-INSURANCE PROGRAM?

One party may decide to procure a centralized insurance program on behalf of all (or most) parties performing work on a construction project or a specific site.

Once procured, the party ‘wraps’ all parties into the program, including developers, general contractors, and sub-contractors.

When secured by the contractor, we refer to the CIP as a CCIP.

When secured by the owner, we name the CIP an OCIP.

In either case, the premise of the coverage remains the same.

WHY AN OCIP OR CCIP?

There are several reasons why one party may decide to purchase an OCIP or CCIP, including, but not limited to the following:

The type of project may present coverage issues for many of the parties involved in the project. For example, it is common for general liability policies to exclude new condominium projects. So, the project owner purchases an OCIP to provide the proper coverage.
The CIP designates policy limits to one project. Thus, losses on other projects or sites will not exhaust limits.
It allows the owner to control the insurance costs for the project.
It eliminates the burden on the owner or contractor to collect certificates and additional named insured endorsements on subcontractors’ renewals (think occurrence form).
CIPs allow for the sharing of costs and deductibles in the event of a claim against multiple contractors.

As you notice, CIPs may create lots of flexibility for project owners or leaders. In addition to the information listed above, there are other reasons construction professionals will look into CIPs for protection.

WHAT YOU NEED TO KNOW ABOUT PROJECTS WITH CIPs

If you are actively bidding on projects, you must understand the availability of a CCIP or OCIP.

There are many reasons why this is important, but here are three that are most critical:

In most cases, you will contribute to the cost of a CIP by providing a bid credit. The cost of your practice policy will usually determine your contribution to the CIP, which holds for general liability, employers’ liability, and excess liability.
If the project is multi-unit, securing insurance without a CIP is difficult and costly. Most general liability policies exclude new multi-unit construction.
If a CIP is available on a project, BUT you will not enroll, your policy may exclude coverage. Your insurance company may even exclude coverage if your policy protects new multi-unit projects simply because of the placement of the CIP.

Once you gain experience with CIPs, you will realize the importance of reading your bid invitation and contracts.

HOW CAN FUSCO ORSINI & ASSOCIATES SUPPORT MY CIP NEEDS?

The team at FOA can help in many ways.

First, if you require assistance enrolling in a CIP, we have lots of experience with the process.

Second, if you believe a CCIP or OCIP will help meet your protection needs for your project, we have 50+ years of combined experience placing Controlled Insurance Programs and the services required to maintain them.

And finally, we are happy to answer all of your questions regarding CIPS, whether large or small. So complete our form below, and we will reach out! Thanks again for visiting!

Understanding Workers’ Compensation Audits: Navigating the Uniform Statistical Reporting Plan in California

Tue, 19 Aug 2025 00:06:20 GMT

Navigating workers’ compensation audits in California, especially concerning the Uniform Statistical Reporting Plan (USRP), can be intricate. Over the years, many policyholders have found it challenging to comprehend which compensations should be included in the remuneration for workers’ compensation premiums. The following is a concise guide to assist you in preparing for your upcoming audit.

What is the Uniform Statistical Reporting Plan?

The USRP is a set of guidelines established by the Workers’ Compensation Insurance Rating Bureau of California (WCIRB). It outlines how policyholders should report payroll and other compensations to ensure accurate Workers’ Compensation premiums.

What compensation to include as payroll?

The following are typically included as payroll under the USRP:

Wages and Salaries: Regular and overtime pay.
Bonuses and Commissions: All additional earnings.
Paid Time Off: Vacation, sick leave, and holiday pay.
Allowances: Value of meals, lodging, and other allowances.
Piecework and Shift Differentials: Extra pay for shifts and piece-rate work.

Tips for a Smooth Audit

Maintain Accurate Records: Keep detailed payroll records, including all forms of compensation.
Classify Employees Correctly: Ensure employees are correctly classified according to their job duties.
Review USRP Guidelines: Familiarize yourself with the latest guidelines to avoid common pitfalls.
Consult a Professional: If in doubt, seek advice from an insurance or audit professional.

Interested in a Better Experience?

Ready to partner with an agency that keeps clients informed and updated?

Fill out the form below to connect with our team and explore solutions for your insurance program.

In exchange, we’ll provide you with a customized document from our agency summarizing wages subject to Workers’ Compensation premiums in California. This document will save you hours compared to navigating the 384-page USRP!

We look forward to connecting with you soon!

Implementing Effective Abuse Prevention Plans

Tue, 19 Aug 2025 00:05:36 GMT

In today’s risk management landscape, having a comprehensive Abuse Prevention Plan is not just a best practice—it’s often a requirement. Insurance companies are increasingly mandating these plans as a prerequisite for Abuse and Molestation insurance coverage. At 4C Advising, we specialize in developing tailored Abuse Prevention Plans to help you meet these requirements and protect those you serve.

Why Abuse Prevention Plans Are Essential

Understanding the Importance

Abuse Prevention Plans are critical components of a robust risk management strategy. They serve multiple purposes, from protecting vulnerable individuals to safeguarding your organization’s reputation and financial stability. Here’s why these plans are essential:

Regulatory Compliance: Many jurisdictions and industry standards require organizations to implement abuse prevention measures. Failure to comply can result in legal penalties and loss of credibility.
Insurance Requirements: Insurance providers progressively require Abuse Prevention Plans as a prerequisite for offering Abuse and Molestation coverage. Without a plan, securing this essential insurance can prove difficult and expensive.
Risk Mitigation: A well-crafted Abuse Prevention Plan helps identify potential risks and implement strategies to mitigate them, reducing the likelihood of incidents.
Protecting Stakeholders: These plans ensure the safety and well-being of individuals interacting with your organization, including clients, employees, and volunteers.
Enhancing Trust: Demonstrating a proactive approach to abuse prevention fosters trust among stakeholders, including clients, partners, and the community.

Key Components of an Effective Abuse Prevention Plan

Breaking Down the Essentials

Creating an Abuse Prevention Plan can seem daunting, but understanding its key components can simplify the process. Here are the fundamental elements that make up an effective plan:

Policy Statement: A clear and concise policy statement sets the tone for your organization’s commitment to preventing abuse. This statement should outline the plan’s purpose, scope, and importance.
Screening and Hiring Practices: Implementing thorough background checks and screening procedures helps ensure that individuals with a history of abusive behavior are not employed or allowed to volunteer in your organization.
Training and Education: Consistent training sessions are crucial for staff and volunteers. These sessions must cover recognizing abuse indicators, correct reporting protocols, and creating a secure environment for everyone.
Code of Conduct: Creating a code of conduct sets forth guidelines for acceptable behavior within an organization. It should be clearly articulated and readily available to all members, delineating the expected standards for interactions and boundaries.
Reporting Procedures: A well-defined process for reporting suspected abuse is essential. The instructions should include clear guidelines on how to report and whom to contact, guaranteeing confidentiality and protection for whistleblowers.
Response Plan: In the unfortunate event of an abuse incident, having a response plan ensures that your organization can act swiftly and effectively. This plan should detail immediate steps, including notifying authorities and supporting victims.
Monitoring and Evaluation: To ensure the effectiveness of your Abuse Prevention Plan, it is crucial to conduct regular reviews and updates. This process should include monitoring adherence, assessing the plan’s effectiveness, and implementing required modifications.

Take the Next Step Towards Safety and Compliance

Get Started with Your Customized Abuse Prevention Plan

Ensuring the safety and well-being of those in your care is a top priority, and a comprehensive Abuse Prevention Plan is crucial to that commitment. At 4C Advising, we specialize in crafting tailored plans that meet insurance requirements and enhance your organization’s safety protocols.

If you’re ready to take the next step in safeguarding your organization and complying with insurance mandates, we’re here to help. Complete our form below to start developing your customized Abuse Prevention Plan. Our team of experts will work closely with you to understand your specific needs and create a plan that fits seamlessly into your operations.

Don’t wait until it’s too late—ensure your stakeholders’ protection and your organization’s integrity today. Click the link below to complete our form and begin securing your customized Abuse Prevention Plan with 4C Advising.

Is Workers’ Comp Required for Remote Employees? Explained

Tue, 19 Aug 2025 00:04:46 GMT

If you have remote or hybrid employees, you may be wondering: do I still need workers’ compensation insurance? In most cases, the answer is yes. Here’s why.

Firstly, most states require workers’ compensation insurance, and having a remote workforce does not exempt you from the law. Whether your team is working from your office, a job site, home office, or local café, work-related injuries and illnesses can still occur.

As an employer, it can be challenging to monitor your employees’ work-from-home environment and working habits to prevent accidents and claims. While working from home can be a perk, it also poses occupational safety risks.

Here are examples of common injuries experienced by a remote workforce:

Ergonomics: Working from a hammock may be a popular, romanticized GIF, but a non-ergonomic setup like this can lead to musculoskeletal problems associated with workers’ compensation claims. Back pain, neck strain, and carpal tunnel syndrome are a few examples of conditions caused by non-ergonomic setups like poor/non-adjustable desks and chairs.

For instance, an employee working from home opts to work on their laptop on the couch for months, leading to a repetitive strain injury (RSI).

Mental health. Working alone can be isolating, and an employee may further blur the lines between their personal and professional lives, which can lead to stress and burnout.

For example, a worker has digital access at their fingertips and starts taking on additional work after-hours, blurring work-life boundaries and increasing their stress levels.

Burns and electrical injuries . From overloaded outlets to a malfunctioning space heater or spilled drink, burns can happen, causing injuries to work-from-home staff.

For example, a worker spills hot coffee on themselves and their laptop during a virtual meeting, resulting in a leg burn (and damaged property).

Trips and falls. Sprains, fractures, and injuries can be the result of trips and falls.

For example, a worker trips over power cords while heading to their desk, resulting in an ankle sprain.

Headaches and eye strain. Screen glare, eye strain, poor posture, and stress can all contribute to headaches. Additionally, prolonged exposure to screens without adequate social or physical breaks can lead to burnout or fatigue.

For example, a worker’s home office has a bright window creating constant glare on their monitor. The worker begins experiencing frequent migraines, blurry vision, and light sensitivity.

—

Although this list isn’t exhaustive, it outlines common workplace injuries among remote workers.

In 2025, approximately 28–30% of U.S. workers work from home at least part of the time, according to multiple sources including the U.S. Bureau of Labor Statistics and Gallup. Additionally, remote and hybrid roles attract 60% of all job applications, yet account for only 20% of job postings (LinkedIn, April 2025). Needless to say, remote work is no longer a trend, it’s a shift in how we work.

If your small business supports a remote or hybrid workforce, it’s important to consider adding workers’ compensation insurance to your insurance portfolio. Not only is it a common requirement, it’s also a smart way for you to protect your business from potential medical fees, lost wages, or penalties. Furthermore, it conveys to your team that you value their well-being.

Ready to get a workers’ comp quote for your remote or hybrid team? Get in touch with our team HERE – we’d be happy to walk you through coverage options that meet the needs of your team.

Sources:

Work Comp Insights – Preventing Workers Compensation Claims from Remote Work | Zywave

Remote & Hybrid Work Trends 2025 | Aura

OpenAI. (2025, July 16). What are the most common work-from-home workers comp hazards? [Large language model]. ChatGPT (GPT-4). https://chat.openai.com/

Implement a Cyber Incident Response Plan

Tue, 19 Aug 2025 00:04:30 GMT

Available to Customers that Subscribe to our Zywave Portal

All businesses should be concerned with data protection and plan for cyber attacks. It’s a known fact that regardless of size, all companies are at risk of a data breach.

Implementing a Cyber Incident Response Plan is crucial, but many business owners need help knowing where to begin. 4C Advising clients who subscribe to the Zywave Portal annually have access to our “Cyber Incident Response Plan Creation and Implementation Toolkit.” The Toolkit, which is 47 pages long and provides a step-by-step guide to plan creation, may be downloaded and customized to each business’s specific needs.

How Do I Subscribe to Zywave Portal?

You may contact us by completing the form below, and we will reach out with a proposal and additional information.

What You Need to Know About Work Comp Coverage for Remote Employees

Tue, 19 Aug 2025 00:03:40 GMT

You may be interested in hiring workers based in other states as business owners. Hiring in other states can be a great way to expand your business and reach new markets. However, you must be aware of those states’ workers’ compensation laws. If you are not, you could find yourself facing expensive legal penalties. In this blog post, we will discuss how workers’ compensation laws apply to remote employees and what steps you need to take to ensure that you comply with the law.

WORKERS’ COMPENSATION LAWS VARY

Workers’ compensation and employers’ liability laws vary from state to state. As an employer, you are responsible for knowing the workers’ compensation laws of the states where you have employees. If you have remote employees, you must ensure that your workers’ compensation policy covers them if they are injured while working. You should also check with your insurance company to ensure that your employers’ liability coverage extends to remote employees.

GENERAL PRINCIPLES OF WORK COMP

While workers’ compensation law may vary from state to state, there are some general principles that all business owners should be aware of.

First, as an employer, you are responsible for providing workers’ compensation coverage for your employees. This includes employees who work remotely. You will be responsible for their medical expenses if an employee is injured while working.

Second, it is important to check with your workers’ compensation insurer to make sure that your policy covers remote employees. You should also check with your insurance company to ensure that your employers’ liability coverage extends to remote employees.

Third, if you fail to comply with workers’ compensation laws, you could be subject to significant penalties, including fines and jail time. In some cases, you may also be required to pay for the medical expenses of any injured employee. To avoid these penalties, it is crucial that you take the time to learn about workers’ compensation laws and make sure that you are compliant.

WE CAN HELP

Don’t let workers’ compensation compliance be an afterthought in your business. By being proactive and educating yourself on the law, you can protect your business and your employees. Workers’ compensation should not be taken lightly – it is a legal requirement for all companies, no matter how big or small. If you have any questions about workers’ compensation, please contact our agency; we can help you navigate these complex laws. With the help of a knowledgeable broker, you can ensure that you comply with workers’ compensation laws and avoid costly penalties. Thanks for reading!

I’m moving out of my parents’ house – what insurance do I need?

Tue, 19 Aug 2025 00:03:36 GMT

By: Jo Ann Schnabl Broker, Fusco & Orsini Insurance Services

Want to know the secret to adulting? It’s asking for guidance. The team at Fusco & Orsini is happy to help you assess your insurance needs.

When moving out, here are some policies you should take over or consider.

Renters insurance: Renters insurance aims to protect your personal property. You want a policy that will help you buy new things in case the worst happens. For example, if you have a small apartment fire and your laptop is destroyed, the renters’ insurance policy will also provide liability protection. For example, if you left a candle burning, which started the fire, you’ll want a policy that will help you buy new things.
Car insurance: If you’re moving into your own place, you can usually get discounts for combining your car insurance with your renters/homeowners insurance. You may also qualify for better discounts on your own, based on being a good student, based on your occupation or because of your membership in a professional group. Do your parents proud and take over your car insurance policy.

Ready to discover your options? Please complete the form below to get started.

Everything plumbers need to know about workers’ compensation costs

Tue, 19 Aug 2025 00:02:54 GMT

You have a plumbing company; or, you are starting a plumbing business. You realize you can’t service all of your clients alone as you grow.

Naturally, you begin to consider hiring, whether it’s your first employee or adding to the team.

Regardless, with staff comes higher overhead, and one of your primary concerns is the cost of workers’ compensation.

You visited the right place because Fusco Orsini & Associates is an independent insurance agency specializing in plumbing contractors’ workers’ compensation insurance. We understand what it takes to secure better work comp rates.

California Workers’ Compensation for Plumbers

California is different than other states because of its dual wage classification system.

Are you familiar with how California’s dual wage classification workers? If not, we recommend you call us for help.

-Class Code 5183 – Plumbing under $28.00 / hr.

-Class Code 5187 – Plumbing equal to or greater than $28.00 / hr.

Mike Fusco (in the video) surveyed his policyholders and found that California workers’ compensation rates in class code 5183 range from $4.36 per $100 to $8.58 per $100 at the time of this video. Ranges for class code 5187 are $2.38 to $3.81 per $100 of payroll.

Workers’ Compensation for Plumbers Outside of California

Dual wage classifications do not apply in all other states. In a survey of random accounts, Mike found that workers’ compensation rates for plumbing contractors range from $3.01 per $100 to $4.51 per $100. Of course, rates fluctuate by state and by specific characteristics of each plumbing company.

Why do work comp rates fluctuate for plumbers?

Read on to understand more! You may notice that Mike provides a wide range of workers’ compensation, which will help you plan but not generate firm calculations.

We are happy to provide you with a detailed proposal from our extensive network of insurance companies, so please connect with us to begin the underwriting process.

Rates fluctuate due to several factors, such as company history, claims history, geographical location, experience modification rating, and business operations.

How to get better work comp rates

It’s time you take action on the next stage of your plumbing business. You may do so with these three easy options.

1 – Call Mike at (858) 384-1507.

2- Text Mike at (858) 384-1507.

3 – Complete the form below (WE NEVER SHARE YOUR DATA).

How to Reduce Claims for your Commercial Auto Insurance Policy

Tue, 19 Aug 2025 00:02:37 GMT

If you have a Commercial Auto Insurance Policy for your business, it’s important to understand how it works and how to keep your claims low. Commercial Auto Insurance is essential for any business that uses vehicles in their operations. A few examples of these types of businesses include delivery services, trucks for hauling equipment, taxi and rideshare services, construction, truck and freight companies and more!

Your policy provides liability protection, property damage coverage and employee protection in the case of a covered accident. Commercial Auto Insurance is also generally a legal requirement for businesses that own and operate vehicles, so a policy may be needed to keep you in compliance with legal requirements in your jurisdiction.

Reducing business auto insurance claims is crucial for maintaining a safe, smooth and cost-effective operation. Fewer claims can help keep your insurance premiums lower and minimize possible disruptions to your business.

These are a few of the strategies we recommend to help businesses reduce their auto insurance claims:

Promote and enforce safe driving habits among your employees. Provide your employees with training programs and offer them ongoing education. These programs should teach defensive driving techniques, the importance of following traffic laws, and warn against the dangers of distracted driving.

Conduct thorough background checks and driving record checks. When hiring employees who will be driving company vehicles have a set process for screening and selection. Only hire qualified and responsible drivers to operate your business vehicles.

Implement a strict maintenance schedule for all company vehicles. Regular inspection and maintenance can prevent mechanical failures which can cause accidents. They also help you to ensure vehicles are in good working condition.

Invest in vehicles with advanced safety features. These features may include collision avoidance systems, lane departure warning, and backup cameras. These are all tools that can help prevent accidents among your drivers and keep them safe. They can also help to reduce the severity of collisions.

Install GPS tracking devices and telematics systems in company vehicles. These tools can monitor driver behavior, track vehicle location, and provide valuable data to identify risky driving habits and areas for improvement.

Implement a thorough accident reporting and investigation process. When you quickly document and examine accidents, it can help you identify the root causes of accidents and develop strategies for prevention. This data can also be used to improve safety measures.

Encourage employees to attend defensive driving courses regularly. These courses help them improve their driving skills and make them more aware of potential risks they may encounter on the road.

Set Realistic Schedules. Do not pressure drivers to meet unrealistic delivery or service schedules. Allowing plenty of time for their tasks can prevent them from feeling the need to speed or drive recklessly.

If you have any questions about how to choose Commercial Auto Insurance or want to find out if it’s right for your business, connect with one of our friendly associates! Call or text (858) 384-1506 to get started with a quote or just learn a little bit more about what you might need.

Reference list: OpenAI. (2023, August). [How can businesses reduce business auto insurance claims]. Retrieved from [ChatGPT.com].

How to File an Insurance Claim After Your Property Was Lost or Damaged in LA Wildfires

Tue, 19 Aug 2025 00:01:43 GMT

The devastating wildfires in Los Angeles have left many homeowners and business owners grappling with significant property damage and loss. If you’ve been affected, filing an insurance claim can feel overwhelming, especially during such an emotional and stressful time. That’s why we’ve created a comprehensive guide to help you navigate the claims process with confidence.

In this blog, we’ll walk you through the key steps to filing an insurance claim, provide tips to streamline the process, and share our [YouTube video: How to File an Insurance Claim After Your Property Was Lost or Damaged in LA Wildfires [Full Guide]], where we explain everything you need to know. Whether you’re filing for your home, business, or personal belongings, we’re here to ensure you have the tools and knowledge to recover as smoothly as possible.

1. Ensure Safety First

Before addressing property concerns, prioritize your safety and your loved ones. Only return to your property when local authorities have declared it safe.

2. Contact Your Insurance Company Promptly

Initiate the claims process by contacting your insurance provider as soon as possible. Many insurers offer mobile apps or online portals for filing claims. Be prepared to provide your policy number and detailed information about the damage.

3. Document the Damage Thoroughly

Once it’s safe to access your property, meticulously document all damages:

Photographs and Videos: Capture clear images and footage of all affected areas, including structural damage, personal belongings, and other pertinent details.
Inventory of Losses: Create a comprehensive list of damaged or lost items, noting their approximate value and any available receipts or proof of purchase.

This documentation will be crucial when substantiating your claim.

4. Understand Your Policy Coverage

Review your insurance policy to comprehend the extent of your coverage:

Dwelling Coverage: Covers repairs or rebuilding costs for structural damage.
Personal Property Coverage: Addresses the replacement of personal belongings.
Additional Living Expenses (ALE): Reimburses costs incurred if you’re displaced from your home, such as temporary housing and meals.

If you don’t have a copy of the policy, request one from your agent or insurer.

5. Mitigate Further Damage

Take reasonable steps to prevent additional damage to your property, such as covering broken windows or tarping exposed areas. However, avoid making permanent repairs until after the insurance adjuster’s assessment, as premature repairs might affect your claim.

6. Keep Detailed Records

Maintain a log of all communications with your insurance company, including dates, times, and summaries of conversations. Retain copies of all correspondence and receipts for expenses related to the damage or displacement.

7. Be Cautious of Scams

Unfortunately, disasters can attract fraudulent contractors or scam artists. Always verify the credentials of anyone offering services, avoid paying hefty sums up front, and consult your insurance company before signing any contracts.

By following these steps and utilizing the resources provided in our video, you can navigate the insurance claims process more effectively and work towards restoring your property and peace of mind.

Recovering from the aftermath of the Los Angeles wildfires is a challenging journey, but taking the proper steps can help ensure a smoother path to rebuilding. Filing an insurance claim may seem daunting, but with the appropriate preparation and knowledge, you can maximize your coverage and receive the support you need.

We hope this guide, along with our YouTube video , provides you with the clarity and confidence to navigate the claims process successfully. If you have any questions or need further assistance, our team is here to help.

Stay safe, and remember—you’re not alone in this process.

The 4 Best Workers’ Compensation Programs for California General Contractors

Tue, 19 Aug 2025 00:01:41 GMT

Workers compensation insurance for contractors is essential to protecting your business, meeting legal requirements, and ensuring injured workers get the care they need.

If you’re a California general contractor, you understand the challenge associated with workers’ compensation insurance.

Fusco Orsini & Associates (FOA) provides workers’ compensation programs to general contractors in California.

Our vast experience lets us connect clients with the best options to suit their needs.

Watch our video and read it for valuable information regarding the best workers’ compensation programs for California general contractors! https://foagency.com/work-comp-for-general-contractors/

COMPSTAR INSURANCE SERVICES

Compstar Insurance Services offers their work comp program on Benchmark Insurance Company paper.

We can’t say enough great things about Compstar and their clients’ service.

If you want personalized service, work comp classifications, and a monthly self-reporting schedule, ask your agent to connect you with Compstar Insurance Services.

ATLAS GENERAL INSURANCE SERVICES

Like Compstar, Atlas General provides a schedule of class codes and allows their policyholders to self-report their monthly payrolls.

Atlas General (Falls Lakes Fire and Casualty Company) provides highly competitive work comp rates in the current marketplace.

General contractors also appreciate low deposit payments when starting a policy with little cost.

ARROWHEAD GENERAL INSURANCE SERVICES

Arrowhead General has successfully managed their Everest Insurance Company work comp program for several years.

Currently writing on Everest Premier Insurance Company paper, Arrowhead does an excellent job underwriting policies and providing stable terms to their clients.

Everest Premium received an A+ XV rating from AM Best during this blog, proving Arrowhead’s commitment to quality products and services.

STATE COMPENSATION INSURANCE FUND

State Fund is a long-time partner of FOA and one we hold in high regard.

You should no longer consider the insurer as a last resort.

The company significantly improved its services, rates, and deposit requirements over the past 3-5 years.

We rely on State Fund to help our general contractors with their work comp needs and provide extraordinary claims and loss prevention services.

I NEED HELP WITH MY WORK COMP PROGRAM

We are here to assist! You may complete this form, and we will connect you with one of our 5-star-rated brokers.

Thanks again for visiting

Changes to work comp dual wage classification thresholds!

Tue, 19 Aug 2025 00:00:58 GMT

The change to work comp dual wage classification thresholds takes effect on 9/1/2022 for all new and renewed policies.

The Workers’ Compensation Insurance Rating Bureau (WCIRB) of California changed dual wage classification thresholds for the first time since 1/1/2020. Please read for more information, and don’t forget to review our video on timecard requirements for dual wage classifications by clicking here. We also suggest our BLOG on final workers’ compensation audits since dual wage thresholds are a significant factor in premium costs.

NEW work comp dual wage classification thresholds by CLASS CODE

Below is a link to a document with a table of changes to each class code by year.

HOW WILL THESE CHANGES IMPACT YOUR BUSINESS?

Of course, if you paid employees => the threshold and classify them in the high-wage code, the changes will increase your costs. Either your workers’ compensation costs or your payroll costs will increase. Regardless, this change is not good news for businesses in an already inflated environment.

It would help if you considered a few strategies while planning for the change.

If an employee is paid close to the new threshold, you may want to consider giving them a raise. By doing so, you are investing in your employee rather than paying workers’ compensation premiums. You will need to crunch the numbers and calculate the differences in costs by factoring in payroll, payroll taxes, and other payroll-related fees.

However, if the raise is significant, for example, increasing pay from $35 per hour to $39 per hour, it may cost you less to classify the employee in the lower wage threshold. Again, you should calculate the numbers and decide which option makes more sense for your business.

HOW CAN I SAVE ON WORKERS’ COMPENSATION COSTS?

The increase in dual wage classification thresholds is out of your control. So, let’s focus on ways to save on costs within your control.

First and foremost, safety is paramount. Please read our BLOG on implementing a construction safety program. You will gain insight into safety programs and how they can affect your work comp rates.

An active safety culture correlates to better Experience Modification Factors (EMOD). If you are not familiar with EMODs, you MUST educate yourself. Experience Modification Factors have a tremendous impact on construction companies’ compensation rates and costs. We have videos on EMODs to help you better understand.

Everything you need to know about California Experience Modification Factors (EMOD)
If your experience modification factor is out-of-control, we have the solution to fix it.

HERE ARE SOLUTIONS THAT WE PROVIDE OUR CLIENTS

If you are a client of Fusco Orsini & Associates, you know that we stay ahead of trends in all lines of insurance to ensure you receive cost-effective programs. But, aside from the insurance itself, we can help you position your company for success!

We can help you strategize on your employee pay to plan for dual wage threshold changes.

More importantly, we help implement risk management and safety programs to place you in the best position for aggressive underwriting. Now is the time to set goals for long-term and short-term risk management objectives and to work to meet them.

The increase in dual wage classification thresholds is just the beginning. We forecast the hard-market workers’ compensation cycle to begin in 2023, which means carriers will tighten their program guidelines, increasing rates.

Reach out to your agent to plan for these changes before it’s too late. Thank you again for visiting!

How Your Credit Score Impacts Insurance Premiums (and How to Improve It)

Tue, 19 Aug 2025 00:00:15 GMT

Your credit score is crucial in many financial aspects—from securing loans to determining interest rates. But did you know it can also affect your insurance premiums? Many insurance companies use credit-based insurance scores to assess risk and calculate policy rates. If you have a strong credit score, you could benefit from lower premiums, whereas a lower score may result in higher costs.

In this guide, we’ll break down how your credit rating influences insurance rates, why insurers consider it, and how you can take control of your credit to lower your premiums.

Why Do Insurance Companies Consider Credit Scores?

Insurance companies use a credit-based insurance score metric to help determine policyholders’ risk levels. Unlike a traditional credit score, which is used by lenders to assess loan repayment potential, an insurance score is specifically designed to predict the likelihood of an individual filing an insurance claim.

Key Factors in a Credit-Based Insurance Score

The following factors influence your insurance credit score:

Payment History: Consistently making payments on time helps demonstrate financial responsibility.
Debt Utilization: High credit card balances relative to your limits may negatively impact your score.
Length of Credit History: A longer credit history is generally considered a sign of stability.
Credit Mix: A healthy mix of credit types (e.g., credit cards, loans, mortgages) can be beneficial.
New Credit Inquiries: Frequent applications for new credit can lower your score in the short term.

How Credit Scores Influence Insurance Rates

Studies show a correlation between lower credit scores and a higher likelihood of filing insurance claims. As a result, many insurers use credit-based insurance scores to adjust policy pricing.

How It Works:

High Credit Scores (700+) generally lead to lower premiums, as insurers see you as a low-risk policyholder.
Average Credit Score (600-699): This may result in moderate insurance rates, with some potential for higher premiums.
Low Credit Score (Below 600): Likely to result in significantly higher insurance premiums due to perceived risk.

Some states, like California, Hawaii, and Massachusetts, restrict or prohibit using credit scores in insurance pricing. However, in most states, your credit rating can substantially impact your rates.

Ways to Improve Your Credit Score (and Lower Your Insurance Premiums)

If your credit score is less than ideal, improving it can lead to more affordable insurance rates. Here are key steps to boost your credit score:

1. Pay Bills on Time

Your payment history accounts for a significant portion of your credit score. Set up automatic payments or reminders to avoid late payments.

2. Reduce Credit Card Balances

Keeping your credit utilization ratio below 30% of your total credit limit can positively impact your score. Pay down balances and avoid maxing out credit cards.

3. Check Your Credit Report Regularly

Mistakes on your credit report can harm your score. Obtain a free copy of your credit report from AnnualCreditReport.com and dispute any errors.

4. Avoid Opening Too Many New Accounts

Each time you apply for new credit, a hard inquiry is added to your report, which can temporarily lower your score. Only apply for new credit when necessary.

5. Maintain Older Credit Accounts

The length of your credit history matters. Keep older accounts open to maintain a strong credit profile.

Can You Get Insurance Without a Credit Check?

Some insurers offer policies that don’t factor in credit scores. However, these policies may have higher premiums to offset the potential risk. Additionally, certain states have regulations preventing credit scores from being used in determining insurance rates.

If you’re concerned about how your credit affects your insurance, consider shopping for insurers that prioritize other factors, such as driving history, claims history, and coverage needs.

Final Thoughts: Take Control of Your Credit and Insurance Costs

Your credit score is more than just a number—it can impact your financial well-being, including your insurance costs. By improving your credit score, you can secure better insurance rates and enhance your overall financial health.

If you want to lower your premiums, start by reviewing your credit report, paying off debt, and making timely payments. These small changes can lead to significant savings in the long run.

Explore our latest blog posts or contact us today for more insights on personal finance and insurance.

How To Conduct An Accident Investigation In The Workplace

Mon, 18 Aug 2025 23:59:43 GMT

Workplace accidents are a big liability to businesses. Not only is it a terrible tragedy whenever an employee is injured while performing their job, but it can also have big financial consequences for your company as well. Losing a valuable employee for any length of time is expensive, and workplace accidents will also raise workers’ compensation premiums, which can cut deeply into a business’s overhead.

Unfortunately, accidents are sometimes unavoidable, especially in high-risk industries like construction and manufacturing. In our previous blog post, we encouraged all businesses to implement a strict safety program to try and prevent accidents. As part of that safety program, we advised companies to perform thorough investigations into every employee accident.

An accident investigation should not be conducted to place blame, but rather to understand the underlying causes of the accident in order to prevent similar accidents from occurring in the future.

Here are the steps you need to take to conduct a comprehensive accident investigation once an accident has occurred in the workplace:

Appoint an individual to be in charge of the investigation. Depending on the size of the company and the nature of the accident, you may want to allow this individual to assemble a small investigation team.
Define the scope of the investigation. The lead investigator should make clear exactly what information he or she is looking for and what the goal of the investigation is.
Create a preliminary brief. The investigation team should put together an initial review of the incident, which includes a description of the accident, damage estimate, normal operating procedures, location of the accident, witness list and a description of relevant events before and after the accident.
Visit and inspect the accident site. The investigation team should spend time at the accident site, looking for details that might have been missed in the preliminary brief. They should also make sure the area is secured so that nothing is disturbed while the investigation is ongoing.
Interview victim(s) and witnesses. The investigation team should sit down and discuss the accident with the victim(s) and any witnesses to the accident. They will also want to interview other relevant individuals, such as those who regularly work in the accident area or who had contact with the victim before the accident. It’s useful to use a tape recorder to capture these interviews.
Look for abnormal circumstances. If your company has a comprehensive safety program in place, then it is likely that the program was not being followed in its entirety when the accident occurred. When reviewing the data collected about the accident, the investigation team should be on the lookout for odd circumstances before the accident, which could have contributed to it.
Determine the sequence of events. Using their notes, observation, and interviews, the investigation team should be able to determine a sequence of events and the likely cause or causes of the accident.
Prepare a summary report. The investigation team should put together a report that includes all of the collected data, the sequence of events, the presumed causes of the accident and recommendations for preventing future accidents.
Conduct a post-investigation briefing. The investigation team should provide the accident report to management as well as a briefing to review the report findings. The most important discussion topics will likely be the causes of the accident and prevention recommendations, which the management team can then approve for implementation.

While every accident investigation is unique, these steps will provide some basic guidance on learning how and why a workplace accident occurred so you can make your company a safer place to work in the future.

Will an Insurance Audit UP My Premium? [Expert Advice]

Mon, 18 Aug 2025 23:59:08 GMT

Most business owners dislike insurance audits, especially when they result in costing them more money.

Nobody appreciates an unexpected bill, especially in an environment with increasing expenses and shrinking profits.

But does an insurance audit mean that your insurance premium will increase?

Not so fast! Here are a few essential facts to keep in mind when discussing insurance audits and the potential for increased premiums.

First, what is an insurance audit?

When you hear the word “audit,” you likely think of tax and IRS audits. The premise of an insurance audit is similar, but they are not as intricate.

An insurance premium audit is an audit of the exposure basis for an insurance policy after the end of a policy period. It is used to determine actual (audited) risk exposure to make a final calculation of the premium and premium taxes. Exposures often include your business’ payroll and sales.

The more commonly audited policy types include general liability (even within a business owner’s policy or commercial package) and workers’ compensation. This information will focus on general liability and workers’ compensation.

Let’s clarify minimum premiums.

A minimum premium is the least amount of premium to be charged for providing a particular insurance coverage. The minimum premium may apply in many ways, such as location, type of coverage, or policy.

It’s crucial to keep minimum premiums in mind because, when it comes to general liability or workers’ compensation audits, the cost of the policy cannot drop below the minimum premium.

What are admitted and non-admitted carriers?

An admitted company is licensed or authorized to sell insurance state-by-state. On the other hand, surplus lines insurers are permitted to sell insurance in a state on a non-admitted basis.

Why is this important?

Unless agreed upon and negotiated with an underwriter, most surplus lines carriers WILL NOT refund premiums based on the findings of an audit because of the 100% minimum and deposit clause added to policies.

In some cases, your broker can negotiate a 90% minimum and deposit, meaning you can receive a refund of up to 10% if your audit uncovers a lower exposure than initially estimated. You can receive a refund from admitted carriers due to the audit but within the minimum premium.

Now that we have some background, let’s discuss the costs associated with a premium audit.

The insurance company uses exposures such as sales and payroll to generate premiums. General liability insurers use sales, payrolls, or a combination of both to determine premiums, and workers’ compensation insurers use payroll.

When you start an insurance policy, your broker will request estimates of your business activity, such as sales and payrolls, to propose your policies and provide costs.

If you look at your proposals, you will notice the “rating basis,” which will show the rate used in the premium determination. For example, a rate is applied to every $1,000 of gross sales for general liability and every $100 of payroll for each workers’ compensation class code.

At the start of the policy, the truth is that the premiums are an estimate, just like the sales and payrolls.

When the policy ends, the insurance company must charge the exposure’s correct premium and premium taxes. It doesn’t necessarily mean that the policyholder will owe MORE money.

In fact, since almost all workers’ compensation policies are issued by admitted insurers, it’s not uncommon that policyholders will receive a refund if they over-estimated their payrolls at the start of the term. But, of course, that refund cannot exceed the minimum premium.

If you have an upcoming insurance audit, it’s likely you are wondering what will cause you to pay more premiums after the audit.

A few items that could cause you to pay more premiums after the audit are:

1. Underestimating sales and payrolls

It isn’t always easy to estimate in some industries but look at trends and get as close as possible. Do not purposely undercut to save money. You will cost yourself at the audit because your rate is higher when you estimate lower sales and payrolls. The rate does not change at the final audit, but your premium will once the company uncovers higher sales and payrolls.

2. Class codes

Your insurance company can change classification codes at the final audit if they believe it aligns better with your business. If the change in class codes carries a higher rate, your premium will increase.

3. Employee counts

Employee counts can play a role in costs associated with the BOP, commercial package, or workers’ compensation policies.

4. Incomplete or non-compliant audits.

If you disregard an audit or have incomplete records, you can expect a non-compliant audit increase. State departments allow carriers to charge a certain percentage above the annual term if they cannot verify the exposure generated by a policyholder. Be aware of non-compliant audits.

Wildfire Preparation – Arm Yourself With Knowledge

Mon, 18 Aug 2025 23:58:25 GMT

This week, 14-year-old Sophia Righthouse was praised for identifying a structure fire and jumping to action to warn residents. This particular 14-year-old was a Girl Scout and a Young Marines youth service member who had also completed FEMA certification training…which means that she was probably more prepared to jump to action than many of you reading this post.

Below in the video, Mike Fusco shares 3 tips for preparing before a wildfire event.

Whether you’re a landlord or a homeowner, make sure you’re financially prepared in case of fire and please reach out to us with any questions about insurance coverage in the case of wildfire.

Here are additional resources to help you prepare your home in the event of a wildfire, how to evacuate, and what to do after the fire, including the document from FEMA which Mike references:

FEMA

Ready San Diego – Wildfire

Red Cross – Prepare San Diego

Fire Safe Council of San Diego County

You can also read this KPBS article about preparing for the next wildfire.

How Small Businesses Can Avoid Insurance Gaps

Mon, 18 Aug 2025 23:58:19 GMT

Most business owners know that getting insurance coverage is an essential layer of protection. But do you know what your insurance covers, and have you accounted for all potential situations?

We sometimes find that small business owners, in particular, can find themselves in situations where costly “gaps” in coverage lead to losses. This can happen when they are not aware of the exclusions and limits of their policies.

Let’s explore some common causes of insurance gaps and how to prevent them:

Common Causes

Not Clearly Understanding Policy Exclusions – If a business owner does not take the time to read their policy in full or ask questions of their broker, they may not be aware of what it does not cover.
Not Regularly Reviewing and Updating Policies – As businesses grow, coverage must as well. New locations, more employees, increased inventory, new services and more are all reasons to examine the policy and determine if higher limits are warranted.
Hoping Personal Insurance Will Cover Business Activities – Personal insurance policies usually exclude any business activities, meaning that incidents that would be covered under normal circumstances will not be. This goes for Homeowners’ Insurance, Auto Insurance, etc.

How to Find Gaps

Do a Risk Assessment – This should include a complete review of all business practices, safety practices, training, assets and potential liabilities.
Update Policies Regularly – This should be done annually at the very least, but creating a system to review these even more often is better.
Partner With an Experienced Agent – Our FOA team has decades of experience partnering with small- and medium-sized businesses like yours to ensure you have the appropriate coverage.
Understand Exclusions and Endorsements – Business owners should read their policies thoroughly to understand what they cover and what they don’t. This can help them decide if separate policies or endorsements need to be added.
Check For Proper Limits and Deductibles – Work with a trusted agent to find a balance between a reasonable and attainable deductible for a business and adequate coverage for a significant loss.

Types of Coverage That Fill Gaps

Business Interruption Insurance – If a business needs to close due to a covered event, this helps cover the lost income.
Cyber Liability Insurance – This type of coverage is becoming increasingly popular and more important as cyber attacks have become more common. It helps with recovery costs after a cybersecurity incident.
Errors and Omissions Insurance – Also known as Professional Liability Insurance, this covers service-based businesses.
Employment Practices Liability Insurance – This covers claims of wrongful actions during employment.
Commercial Umbrella Insurance – This helps extend liability limits and provides additional protection.

The good news is, you don’t have to do this alone! We are happy to work alongside you to examine your policies and see where you can add additional protection, if it is needed. If you’re looking for a partner to help guide you through an audit or refresh your coverage, contact our team HERE.

Download Guide Now

Source: Zywave Small Business Insights, “How to Avoid Insurance Gaps”

Why is prompt incident reporting important for your business?

Mon, 18 Aug 2025 23:57:15 GMT

Accidents happen! From little slips and falls to data breaches or technical meltdowns, unfortunately, this is reality for business owners or managers. You can have a top-notch safety program, educate your employees and train them on best practices and still experience unfortunate luck, so it’s important to know how you can mitigate damage when accidents do happen.

One of the best ways to protect your business is to establish a program for prompt incident reporting that you and your employees can stick to.

Here are some of the ways prompt incident reporting can help your business:

1. It helps mitigate risk: Reporting incidents helps your business take immediate action to avoid further harm. Some of the ways this might happen include addressing safety concerns, fixing technical issues or implementing security measures.

2. It keeps your business compliant: In many industries, regulatory requirements mandate incident reporting. Failing to report incidents promptly can result in legal trouble, fines, and damage to your company’s reputation.

3. You can legally protect yourself : By documenting incidents as soon as they occur, businesses can have a record of what happened, who was involved, and what actions were taken, which can be valuable, should you find yourself involved in legal proceedings.

4. It improves your operations: Incident reports can provide valuable insights into weaknesses or vulnerabilities in a business’s operations, systems, or processes. Analyzing incident data can help identify areas for improvement and lead to more robust risk management strategies.

5. Trust and accountability is essential: Timely incident reporting demonstrates transparency and a commitment to accountability. This can help protect your business’s reputation by showing customers, partners, and stakeholders you take incidents seriously and are actively working to resolve them.

6. You foster internal accountability: Employees are more likely to take their roles seriously and follow established protocols when they know that incidents are taken seriously and reported promptly.

7. Preventing repeat incidents: Timely reporting allows businesses to investigate the root causes of incidents and take actions to prevent similar incidents from happening in the future.

8. It minimizes financial impact to your company: Delayed incident reporting can lead to increased costs for your business. The longer an incident goes unreported, the more damage and associated expenses can grow.

9. Reports may be required for insurance claims: In some cases, insurance policies require prompt incident reporting to initiate a claim. Failing to report an incident in a timely manner could lead to the insurance company denying coverage, leaving the business responsible for financial losses.

Whether you use an app, custom reporting software or another form of documentation, proper documentation is an asset to your business. In the event something does go wrong, you will certainly be grateful to have put proper systems in place.

Here are a few of the ways our advisors can assist you:

On-Demand Risk-Management, Safety, and Compliance Pros: On-demand service for safety management, OSHA mock audits, OSHA 10/30 Training, loss control, program development, and more.
Zenjuries: A tool that enables you to streamline your workers’ compensation process and improve access for both employees and employers.
Risk Management & Compliance Portal: Get daily updates from our risk management and compliance portal. This Client Portal delivers thousands of valuable tools to enhance and grow your business.

If you need assistance developing an incident reporting plan for your business, please connect with our advising team by calling or texting (858) 384-1506.

Reference list: OpenAI. (2023, October). [Why is prompt incident reporting important for businesses]. Retrieved from [ChatGPT.com].

How much is a Business Owner’s Insurance Policy?

Mon, 18 Aug 2025 23:57:07 GMT

A business owner’s insurance policy (BOP) is a bundled package of individual insurance products meant to provide comprehensive insurance coverage to small- and medium-sized business owners. (See our previous blog post all about BOP).

BOPs vary in their structure but most commonly include: property insurance, business interruption insurance, liability insurance, and crime insurance.

Business owner’s insurance policies are tailored to the needs of a particular business, which is why it is nearly impossible to provide even an approximate price quote for a BOP.

For instance, a nail salon and a fitness gym will have very different BOPs. Even if their BOPs contain the same types of insurance, the cost of each individual insurance product will be different. You can bet that property insurance for a large fitness gym filled with expensive equipment will be more expensive than a small nail salon. Liability insurance is also likely to be much higher for the gym than the nail salon.

There are a large number of factors that go into putting together and pricing a business owner’s policy. An insurance broker will first need to determine what types of coverage a particular business owner needs.

The price of each insurance product within the overall BOP will be determined based on the unique characteristics of your business (ex. Projected gross sales, projected payroll, number of employees, size of the location, the value of equipment/contents, etc.)

Building a BOP is an easy process, and we think it is well worth it for small- and medium-sized business owners in Southern California. Bundling all of your major insurances together into a BOP not only simplifies your life and helps you fully protect your business, but it can also result in substantial cost savings.

At Fusco & Orsini Insurance Services, we excel at assessing the needs of our clients and putting together cost-effective BOPs that will keep their business fully protected from the most common disasters.

The best way to learn how much a business owner’s insurance policy will cost for you is to contact an insurance brokerage and schedule a consultation with a broker. We at Fusco & Orsini would be glad to assess your business, help you determine what your particular BOP might look like, and provide estimates on how much a BOP policy would cost for you.

To schedule a free consultation, call or text us at (858) 384-1506 or contact us through ourwebsite.

Why Do Employers Need Employee Practices Liability Insurance?

Mon, 18 Aug 2025 23:56:14 GMT

We all hear the common stories in the news and from friends and other business owners of employees suing their employers for a variety of reasons, including harassment, discrimination, sexual harassment, wrongful termination, and much more.

All too often, however, business owners don’t think that this could happen to them. They “know” that their employees are well-trained and would never harass or discriminate against each other. They also “know” none of their employees would ever file a claim.

Unfortunately, these same business owners are often blindsided when they do get slapped with a lawsuit. All it takes is one mean-spirited joke in the warehouse, a little too much alcohol at the Christmas party, or a job candidate who feels wronged for not getting hired – and a company could be facing an expensive liability claim.

According to the U.S. Equal Employment Opportunity Commission, 99,947 discrimination suits were filed in 2011 against employers. This includes over 35,000 claims of race discrimination, over 28,000 claims of sex discrimination, over 23,000 claims of age discrimination, and over 25,000 claims of disability discrimination (the number of individual claims adds up to more than the overall suits filed because discrimination suits often include multiple claims). The EEOC also documented over 11,000 sexual harassment suits filed in the U.S. in 2011.

These are big numbers folks, and they seem to rise every year. Just over the last ten years, the total amount of discrimination suits has risen by almost 20% (80,840 suits filed in 2001 vs. 99,947 filed in 2011).

Every business is at risk. That’s why every business with employees should invest in employee practices liability insurance (also called employment practices liability insurance), which covers and protects companies from these types of lawsuits.

There are a variety of EPLI policies available, and most will cover the cost of defending against a liability claim and any required settlement or claim payouts up to the policy’s limit.

A majority of EPLI policies cover the following types of claims:

Discrimination (race, sex, age, religion, disability, sexual orientation)
Harassment/sexual harassment
Wrongful termination
Invasion of privacy
Defamation
Emotional distress
Breach of contract

If you take anything away from this article, it should be that no company is immune. A liability lawsuit against your company could destroy your profits or your business. Make the smart move and call Fusco & Orsini Insurance Services to learn about employee practices liability insurance (employer practices liability insurance). Contact us at (858) 384-1506 or simply complete the form below.

How Do I Shift My Contracting Business During Coronavirus?

Mon, 18 Aug 2025 23:56:12 GMT

Are you a handyman, electrician, plumber, painter, remodeler, carpenter, designer or provider of another household service? During these unchartered times, we’re doing our best to provide you with ideas to support your business.

First, it is important to take care of your health and the health of your team members and your family. Know your financials, your inventory and the status of your supply chain.

Next, pivot as needed. If you typically provide services in person, as many of you do, it’s time to rethink your sales strategy.

Have you considered going online?

If you are a contractor who provides household support, then it’s time to start thinking about ways to offer tutorials or one-on-one video consultations with your clients. Here are a few examples:

Are you a plumber who fixes dishwashers?

Allow your clients to purchase a Facetime session with you, during which time you walk them through fixing the issue themselves. Perhaps you can charge a reasonable fee that is lower than your in-person fee. Tools like Calendly are good for scheduling appointments like this.

Are you a handyman who’s good with crafts?

There are hundreds of thousands of kids at home for the next few weeks. Can you offer an online tutorial for a build-your-own garden box, sandbox or birdhouse?
Can you sell DIY kits with all the materials they need – then drop off the materials or have designated pick-up times?
Include a link to a step-by-step video that you prerecord, then post it on social media, OR, offer a live virtual training at designated times.

Are you a craftsman who installs closets?

People are sheltering in place, which means they have more time to focus on spring cleaning and organization. Can you provide a tutorial for closet organization? Perhaps you start with a free tutorial, then offer a one-on-one service for purchase.

Here are a few places to get started with virtual calls:

Zoom (free and paid versions)
Google Hangouts

Now’s the time to look at how you can benefit your customers and ease their concerns. Ask them what they need and how you can be helpful during this time.

Finally, leverage social media to communicate with your audience.

We hope this brief guide gets you thinking about ways to pivot your business. If you have any ideas, please feel free to share them in the comments section.

Why Contractors in California Need Workers’ Compensation Insurance

Mon, 18 Aug 2025 23:55:33 GMT

There’s one overriding reason why contractors in California need to provide workers’ compensation insurance to their employees – it’s the law.

California, along with almost every other state in the union, requires all employers, regardless of industry or number of employees, to carry workers’ compensation insurance (also known as workman’s compensation insurance and employer’s liability insurance).

For contractors, workers’ comp is even more critical due to the physical and risky nature of the business.

Workers’ compensation not only protects the employer and employee but also protects the party that the contractor is working with or for. For example, if a contractor is working directly for a homeowner, workers’ compensation coverage PROTECTS the homeowners in case the contractor’s employee is injured on their property. In the contracting industry, injuries are commonplace and the potential for serious injuries is much higher than in, say, an office environment.

If an employee does get seriously injured, the employer’s workers’ compensation will kick in to cover that employee’s medical costs so that the employer doesn’t have to. The insurance policy will also help replace a portion of the employee’s wages for a certain amount of time so that they are able to earn compensation while out of work.

Many of our contracting clients like the fact that their employees are protected in this manner, but there’s an even bigger reason to appreciate workman’s comp. It prevents employees from suing their employer for damages related to their injuries. This is a HUGE benefit for employers.

Imagine that one of your employees fell off a roof, broke his back and then sued you for five million dollars claiming lost wages, negligence and pain and suffering. Could your company easily recover if you lost that lawsuit or if you had to pay a high-priced lawyer to go to court to defend you?

We believe that workers’ compensation insurance is a small price to pay to protect your employees, yourself, and even your customers.

Also, workman’s comp doesn’t have to be as expensive as you think. Even though prices tend to be higher for contractors (due to the high-risk nature of their industry), we are able to offer our clients very competitive pricing on work comp. Specializing in the contracting industry has allowed us to make important connections and build solid relationships with insurers that allow us to get better pricing than the average insurance broker.

At Fusco & Orsini Insurance Services, we specialize in providing insurance solutions to contractors. Since we insure so many contractors and have created a niche in the industry, we are able to represent almost all workers’ compensation companies providing construction industry work comp in California. How does this help you as the contractor? We are able to provide options, and also very competitive rates.

We can also save our clients significant money by bundling insurance products. Almost all of our contracting clients also need general liability insurance and commercial auto insurance. Combining these and other necessary insurance products can result in big savings.

Even if you already have workers’ compensation insurance, we’d be happy to review your policy and see if we can get you a better option. It never hurts to see what’s available on the market.

Ready to talk workers’ comp with an independent insurance expert? Give Fusco & Orsini Insurance Services a call at (858) 384-1506 or complete the form below.

Why Are Workers Comp Rates Increasing In California?

Mon, 18 Aug 2025 23:54:53 GMT

Why Are Workers’ Comp Rates Increasing in California? (2025 Update)

Workers’ compensation insurance is a non-negotiable part of doing business in California. It protects employees who suffer workplace injuries or illnesses while shielding employers from potential financial devastation. However, many California businesses feel the pinch as workers’ compensation rates continue to climb. Why is this happening, and how can you manage these rising costs? Let’s dive into the key factors and strategies for 2024.

Why Are Rates Increasing in California?

Several factors contribute to rising workers’ compensation rates, making California one of the most expensive states for employers. These include:

Rising Medical Costs: Medical care costs continue to soar, directly impacting the payouts for workers’ compensation claims. Treatments, surgeries, and rehabilitation services are becoming more expensive, increasing insurance rates.
Claims Frequency and Severity: While workplace safety initiatives have reduced overall injury rates in many industries, the severity of claims has increased. For example, catastrophic injuries or long-term disability claims result in higher payouts, significantly influencing rates.
Regulatory Requirements: California’s strict labor and safety regulations, while beneficial for employees, can drive up administrative and compliance costs for businesses. The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) often adjusts rates to reflect these realities.
Inflation and Wage Growth: As wages increase across the state, so does the cost of workers’ compensation insurance. Higher wages mean higher benefits for injured employees, which are factored into premium calculations.
Fraudulent Claims: Fraud continues to be a concern in California. Even a small percentage of fraudulent claims can significantly impact overall costs, driving up rates for all employers.

What Drives Workers’ Compensation Costs?

Let’s break down the specific factors that influence your workers’ compensation premiums:

Medical Costs: Includes hospital stays, outpatient care, and prescription medications.
Indemnity Benefits: Payments to employees for lost wages due to workplace injuries.
Administrative Costs: Legal and claims management expenses.
Experience Modification Factor (MOD): A calculation based on your claims history compared to industry averages.

Strategies to Manage Rising Costs

While you can’t control all the factors driving up workers’ compensation rates, there are proactive steps you can take to mitigate the impact:

Strengthen Workplace Safety Programs: Preventing injuries is the most effective way to keep costs down. Invest in employee training, safety equipment, and regular inspections to identify and mitigate hazards.
Implement Post-Injury Management: Efficient claims handling can prevent minor injuries from escalating into significant costs. Tools like Zenjuries Claim Concierge provide a streamlined approach to managing workers’ compensation claims, reducing delays and unnecessary expenses.
Focus on Your Experience Modification Factor (MOD): Your MOD is a key factor in determining your workers’ compensation premium. Maintaining a claims-free year or managing claims effectively can help lower this factor over time.
Explore Discounts and Credits: Many insurance providers offer credits for safety measures, drug-free workplace programs, or return-to-work initiatives. Ensure you’re taking advantage of every opportunity to lower your rates.
Review Your Policy Annually: Partner with an experienced insurance broker to regularly review your coverage and ensure you’re not overpaying. A fresh perspective can uncover cost-saving opportunities or gaps in protection.

How Fusco Orsini & Associates Can Help

At Fusco Orsini & Associates, we specialize in workers’ compensation insurance and risk management strategies for California businesses. Our tailored approach ensures your company has the right coverage at the best possible rates. We leverage tools like Zenjuries and other innovative solutions to help clients reduce claims frequency, improve MOD scores, and save money.

Call-to-Action: Take Control of Your Workers’ Compensation Costs

If rising workers’ compensation rates impact your business, it’s time to act. Our team is ready to help you design a cost-effective program prioritizing safety and compliance.

Contact us today to request a workers’ compensation policy review.

See If We’re a Fit by completing the form below, or call us at (858)384-1506 to learn more!

How Do I Reopen My Restaurant During the Next Phase of COVID-19?

Mon, 18 Aug 2025 23:54:27 GMT

COVID-19 Reopening Considerations for Restaurants

San Diego County officials were notified last night that dining at restaurants and in-store shopping can begin.

In recent months, the COVID-19 pandemic has forced restaurants and foodservice businesses to either close or shift to carry-out or delivery service only. As restaurants swiftly prepare to open their dining rooms, there are several factors to consider to preserve the health and safety of employees and guests.

Below are general recommendations we’ve gathered. Depending on the location of your business, you may need to account for additional state and local requirements or restrictions.

Employee Health and Safety

It’s important to check that employees are healthy as they report back to work. It doesn’t matter if the employee works in the front or back of the house—per the Centers for Disease Control and Prevention (CDC) guidance, any employee who is sick should stay home. Similarly, if an employee becomes ill or shows symptoms during a prework screening, they should be sent home.

Make sure your policies clearly indicate when ill employees can return to work. At a minimum, you should follow CDC guidelines and have employees self-quarantine for seven days from the onset of their symptoms.

It should be noted that the CDC has not mandated taking employees’ temperatures. If your establishment chooses to do so, it’s best to adopt policies that align with proper procedures and consult local health officials if you have questions. To further protect your employees’ health and safety, consider the following measures:

Provide clear instruction and guidance so employees know what is expected during opening, prep, service and closing procedures.
Train all employees on the importance of frequent hand-washing, the use of hand sanitizers and avoiding touching their hands to face.
Require employees to wear a mask or face covering. Provide all personal protective equipment required for employees to do their jobs, including masks and gloves.
Limit the number of employees allowed simultaneously in break rooms or other communal areas.

Policies may need to evolve as local regulations change, so frequent and transparent communication with employees is critical. Be transparent about employee expectations and consequences, and continue to document protocols and procedures.

Cleaning and Sanitizing

Familiarize yourself with requirements from your local health department and make sure you adhere to them. It’s important to train employees on cleaning and disinfecting procedures and protective measures per the CDC and Food and Drug Administration. Additionally, consider these measures:

Sanitize and deep-clean your entire facility, especially if it’s been closed due to the COVID-19 pandemic. Don’t overlook seldom-touched surfaces.
Utilize appropriate cleaning chemicals in food preparation and contact areas.
Sanitize high-contact areas in the front and back of the house (e.g., touch screens, doorknobs, buttons, cooler doors and checkout counters) every two hours or after each guest leaves the area.
Clean and sanitize table condiments, digital-ordering devices, check presenters, self-service areas and tabletops between guests. Additionally, consider providing condiments by request or offering single-use, disposable containers.
Sanitize restrooms frequently. Sinks in restrooms should have running water and be stocked with hand soap, disposable paper towels and a plastic-lined waste container.
Clean and sanitize reusable menus after each use. If using paper menus, discard them after each use.
Do not use disinfecting wipes to clean more than one surface. Use one wipe per item or area, and discard them after each use or when they are visibly soiled.
Provide hand sanitizers at entrances, exits, service counters, and any other guest touchpoints. Consider touchless solutions as well.

Food Safety

Food safety has always been a priority for the restaurant industry. Follow and maintain food-safety practices carefully as you consider new COVID-19 safety protocols. Specifically, keep in mind the following measures:

Change, wash and sanitize utensils frequently. Use rolled silverware and napkins stored in sealed bags.
Employees should roll silverware in designated sanitary areas and should not pre-set tables.
Use single-use gloves or deli tissue when handling food, if appropriate.
Discard all out-of-date food items.
Wrap food containers to prevent cross-contamination.
Stock coolers at minimum levels if providing grab-and-go service.
Close all self-service food and drink stations (e.g., coffee carafes, fountain soda machines, salad bars and buffets).
Ensure the person in charge of foodservice operations is ServSafe certified and that their certification is up to date.
Provide a food handling training refresher to all employees upon reopening. Ongoing education protects your business, employees and guests.

Social Distancing

Guests and employees should practice social distancing to reduce the spread of COVID-19. Consider the following to protect those who walk through your doors:

Consider separate entrances and exits to limit customer contact with other patrons.
Post signage at the entrance stating that no one with a fever or symptoms of COVID-19 can enter the restaurant.
Base social distancing measures on square footage in both service and guest areas.
Update floor plans and seating arrangements as follows:
Maintain 6 feet of separation between tables.
Leave two bar stools empty between guests who are not in the same party.
Apply similar rules to outdoor patio areas.
Limit party sizes based on recommendations provided by your local and state government.
Monitor the number of guests on your premises.
Limit contact between wait staff and guests.
Consider a reservations-only or call-ahead-seating process to better space guests and control party sizes.
Ensure that guests stay separated while waiting for seating and don’t congregate in waiting or bar areas. For example, you could create floor markings or have guests wait outside—6 feet apart—or in their vehicles.
Ensure employees and guests adhere to social distancing guidelines when using the restroom.
Install physical barriers where practical (e.g., booth seating or partitions).
Use technology to reduce person-to-person interactions (e.g., cashless payments, mobile ordering, menu tablets, contactless payment and mobile texting for waiting and seating updates).
Remind outside partners or suppliers about internal distancing requirements.

Delivery and Carryout

During the COVID-19 pandemic, many restaurants focused on being able to provide carryout and delivery service. As dining rooms open, you can continue offering online sales, pickup and delivery to reduce the number of guests coming inside to limit face-to-face interaction. You may also consider allowing guests to preorder dine-in meals to reduce guests’ time on site. If you’re offering carryout options:
Establish a designated pickup zone.
Provide guides (e.g., tape on floor) or signage to inform customers of food pickup protocols.
Offer curbside pickup.
Practice social distancing by offering to place orders in trunks of vehicles.
Remind third-party delivery drivers about internal distancing requirements when they are picking up orders. If you’re offering delivery options:
Encourage no-touch deliveries.
Provide order updates via text messages or phone calls.
Ensure coolers and other transport containers are cleaned and sanitized.
Maintain time and temperature controls.
Avoid cross-contamination (e.g., wrap food during transport).
Carry hand sanitizer or wipes to clean hands often.

For additional reopening resources and guidance as your business moves into COVID-19 recovery mode, please contact Fusco & Orsini Insurance Services at:

Call or Text: (858) 384-1506

EMAIL: hello@foagency.com

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Who Needs Inland Marine Insurance?

Mon, 18 Aug 2025 23:54:12 GMT

Inland marine insurance is one of the most confusing types of commercial insurance available, and many business owners aren’t sure exactly what it is or if they need it.

In a nutshell, inland marine insurance was initially created to protect goods as they traveled overseas, hence its name. Over time, however, the insurance evolved to cover goods that travel over dry land and even valuable items that don’t travel at all, like computer data and accounts receivable.

So, does your business need inland marine insurance?

If you regularly transport expensive goods or equipment that are not insured, then inland marine insurance may be a good idea. For example, contractors bring lots of expensive equipment and tools to worksites. In most cases, these items aren’t insured even though they represent assets for the company. A contractor could lose much hard-earned money if such tools and equipment are stolen.

The same goes for companies regularly transporting merchandise from a warehouse to a storefront or equipment to multiple locations or a work site. Much can go wrong when you’re on the road or hauling big, bulky items from one place to another.

Businesses building a store, warehouse, or other facility should consider insuring it under marine inland insurance (also known as builders’ risk or course of construction). Again, the chance of an accident or damage during the building process is real and could result in expensive losses and time delays.

Business owners are often surprised to learn that marine inland insurance can also protect their electronic data and accounts receivables. While we strongly recommend that businesses use a professional file backup system, marine inland insurance may be a good idea as an extra safety net. I’ve seen many companies that don’t back up correctly and then lose their crucial electronic files. It’s usually a devastating financial blow.

Inland marine insurance can benefit most businesses in most industries, especially those that regularly transport expensive equipment and tools.

To learn if inland marine insurance is right for you, contact Fusco & Orsini Insurance Services by completing this form.

Thanks for visiting!

When Do You Need Commercial Auto Insurance?

Mon, 18 Aug 2025 23:53:28 GMT

If you regularly use your truck in the conduct of your business or have purchased vehicles specifically for your business, then personal auto insurance is not the correct coverage. You’ll need to purchase commercial auto insurance (also known as business auto insurance).

Personal auto insurance is meant to cover your every day, non-business driving. When you use your car or truck regularly for business, that requires commercial auto insurance, which is calculated differently than personal auto insurance.

Commercial auto insurance and personal auto insurance have a lot in common. They tend to offer similar types of coverages, though commercial auto insurance policies may provide higher coverage limits. Common commercial auto insurance coverages include:

Bodily injury
Property damage
Combined single limit (both bodily injury and property damage)
Medical payments
Uninsured motorist coverage
Comprehensive physical damage
Collision coverage
Hired Auto (very important)
Non-Owned Auto (very important)
Symbol 1 liability when needed by contract

So, how do you tell when you need commercial auto insurance vs. personal auto insurance? That can be a tricky question, especially if you use a single vehicle for both personal and commercial use.

If you purchase a vehicle specifically for use at your business – such as a delivery truck, a truck used to travel to job sites, or a vehicle used to transport clients – then this should definitely be covered under a commercial auto insurance policy. Commercial auto insurance is also required when you use your vehicle to regularly transport goods or people for a fee, conduct service (ex. you have a mobile pet cleaning van), or to haul special tools or a trailer that is used to conduct business. You should also purchase commercial auto insurance if employees drive the vehicle as part of the business, OR if they drive their own vehicles as part of your business. Further, if you rent or lease vehicles for business use, then a commercial auto policy is a necessity.

One instance where you do not need to purchase commercial auto insurance is if you primarily use your vehicle to commute to and from your place of business, such as a single office location.

A good way to figure out if you need commercial auto insurance is to ask yourself this question – aside from commuting to and from work, do I regularly need my vehicle to operate my business? If the answer is yes, you should probably sit down with an insurance agent to discuss commercial auto insurance options.

At Fusco & Orsini Insurance Services, we’d be glad to help you determine if you need commercial auto insurance and what type of policy coverages would be best for your budget and your situation. To learn more about commercial auto insurance (aka business auto insurance) call us at (858) 384-1506 orcontact us through our website.

How do I know if my subcontractors are insured?

Mon, 18 Aug 2025 23:53:08 GMT

Trucking company owner and operator Raymond, 37, of Encino, appeared in court in January 2024 on 30 felony counts of unauthorized use of personal identifying information and forgery. A Department investigation found he allegedly created and distributed fraudulent insurance documentation to the businesses that employed him.

We see this situation time and time again. So does the California Department of Insurance, which is why it is urging business owners to verify the insurance coverage for any subcontractor or vendor they do business with. Why? It will protect your business from uninsured losses.

We know that documentation is not fun, but it’s a vital step in protecting your business. When you collect proof of insurance coverage from any contractor we recommend looking for red flags such as fraudulent company names, inconsistencies in numbers, missing endorsements or poor-quality images of the documents.

All of these extra steps can add hours to your week…and…are your 100% sure you’ve validated each certificate? We don’t blame you for not wanting to add “investigator” and “red flag referee” to your job description.

The good news is, there is a better way to request and verify documentation.

You can utilize state-of-the-art software to request and verify documentation. And we can set you up with this software ASAP. Plus, you can access this software at our group rate, which is a heck of lot of cheaper than sourcing it on your own.

Fraud is a serious threat to your business. But, you can get ahead of it.

BOOK A CALL to learn more about compliance software that can help you request and verify documentation, understand requirements, follow up and track expirations with ease.

What’s Your Score? Cyber Risk Exposure Scorecard

Mon, 18 Aug 2025 23:52:12 GMT

Do your employees use their company-issued computers indefinitely without updating the password? Does your organization use cloud-based storage? If so, tune in!

In recent years, cyber-attacks have emerged as one of the most significant threats facing organizations of all sizes. The Internet and other network operations have created risks unheard of less than a decade ago. When cyber attacks, such as data breaches and hacks, occur, they can result in devastating damage, such as:

Business disruptions
Revenue loss
Legal fees
Forensic analysis
Customer or employee notifications

It is important to remember that no organization is immune to the impact of cybercrime. As a result, cyber liability insurance has become an essential component of any risk management program.

We’d like to encourage you to download our 20-question cyber risk exposure scorecard to understand your level of risk. If you need help completing the scorecard or have any questions, please don’t hesitate to call or text Ray on our team at (858) 384-1506.

How can a cyber insurance policy protect your business?

Mon, 18 Aug 2025 23:52:00 GMT

Mike Fusco reviews Evolve MGA’s best-in-class cyber insurance policy.

Hi, everyone. I hope you’re doing well. We’ve been talking a lot about cyber insurance; whether you’re an agent internally here at the office or a consumer of our agency, we’ve been providing lots of information about cyber exposures and cyber coverage. I’ve researched a few different policy forms offered out there. Evolve and Evolve MGA does an excellent job of providing coverage and educating the consumer and the agent to understand the insurance protection in their policy.

EVO 4.0 Wording

Instead of a 100-page policy that you have to read through and decipher all the tricky language, Evolve MGA provides the document shared in my video: their EVO 4.0 wording and 4.0 is their most recent up-to-date policy form. And if you read through, it breaks down what their coverage is in layman’s terms. Whether you’re an agent reading to educate yourself on the cyber policy or if you’re a consumer of our agency, the EVO 4.0 Wording document makes sense. I’ve had cases where I’ve sent the EVO 4.0 Wording document to a customer after giving them a quote. In response, I have heard statements such as; “Oh wow, I see what it’s covering.” It makes it understandable, and I like that.

Watch Mike’s YouTube video for the EVO 4.0 Wording document.

I’m reviewing the document as part of this video. You may also download a copy of the “EVO 4.0 Wording’; please look out for a popup below to download the document. Now I want you also to understand not all insuring clauses come with each quote. Depending on the operation, Evolve MGA may not extend some of the insuring provisions to the policyholder. It is essential to review the quote closely.

Examples of some insuring clauses in EVO 4.0

Insuring clause two is crucial, which is your cybercrime coverage. As an example; It covers your funds’ transfer frauds, your theft of funds, and extortion, which is ransomware, to name a few. Although Evolve MGA usually includes section D of insuring clause two, I have seen A, B, C, E, F, G, and H with no coverage. Still, I go back and ask the underwriter what we need to do to provide that coverage, and they might ask for some supplemental information to see what controls the client has in place to eliminate some of these threats, a big one funding transfer fraud.

Insuring clause six – Technology E&O

Okay, so you can go back and ask, “do we have an opportunity to add all sections of insuring clause two on the policy?” Another big one that you’ll notice is insuring clause six, which is Tech E&O. They’re not going to provide Tech E&O unless the customer or the business is in the tech industry because if you’re in educational services, you don’t need Tech E&O, so keep that in mind.

Definitions in EVO 4.0 Wording – a great resource

If you don’t know the definition of language in the policy, you will find all definitions towards the end of the document. I was reading section A, incident response costs, and what the policy will pay for it, and then it says here, “As a direct result of a cyber event first discovered by ‘you.’ Well, what does ‘you,’ mean? Does that mean there’s only one person in the organization that can discover the event?

Read the definitions section.

What you want to do is scroll down to the definitions section, and you will read the definition of ‘you.’ ‘You/your’ means the company, employees, and senior executive officers, so only acting in the normal course of the company’s business operations. So it’s not just you meaning one person; it could be any person in the organization that fits this role with this definition. Again, all the definitions are listed and also organized alphabetically.

A quick pass through EVO 4.0 Insuring Agreements

Evolve’s policy is comprehensive; Insuring Clause one has, as you can see, several sections of insurance. Insuring clause two has all these sections, and it’ll tell you exactly what they pay for under each paragraph. Keep in mind that some of these insuring clauses protect third-party claims, and others are first-party coverage, such as insuring clause three, system damage, and business interruption. That’s direct coverage for the business that suffers the breach or the cybercrime. Okay? I mean, it has income loss as system damage. There’s reputational harm coverage in here, so here it is right here reputational harm. Excellent stuff. Hardware replacement costs. So read through it, I think you’ll get a good understanding. You’ll also start to realize that some of these insuring clauses will show up with other carriers’ coverage policies, but not with all.

Evolve will provide a side-by-side comparison.

Another thing Evolve MGA will do for you, and I found this very helpful, is provide a side-by-side comparison with a competitor. For example, I recently had a customer get a quote from Tech Rug, I never heard of them, but Evolve has all of their forms and all of the other carrier’s forms on file. They know what coverage they offer, so they’ll give you a side-by-side comparison breakdown for your customer to show you what their protection provides and what the competitor is providing, which is fantastic. And in some cases, the competitor may give a couple of better line items of insurance, or maybe a different deductible level, and Evolve MGA will point that out and say, “Hey, this is what your client needs to consider. These are the reasons why we think we’re better, but they will also highlight the benefits of the other insurance policy.”

In closing

Would you please let me know if you have any questions? Would you mind reading through the documents I hyperlinked in addition to watching the video? I’m also going to provide two other documents here. One document is six free cybersecurity risk management services that every customer gets with an Evolve policy, and the other is their product highlights. I will put that at the bottom, too, so let me know if you have questions. I think once you read this, you’re going to get a better understanding of how cyber coverage can help. Take care.

What’s Covered in a Workers Compensation Policy?

Mon, 18 Aug 2025 23:51:17 GMT

If you own a construction company and have a California-based business, this post is for you. Workers compensation is critically important when it comes to the construction industry because of the physical risk inherent in the profession. You (or your employees) are lifting things. There may be strain on the muscles and ligaments. There could be an accident. You know you need it and it’s required by law. But what’s covered in a workers compensation policy?

Workers compensation is an insurance policy that helps to protect your assets in the event that one of your employees is hurt on the job.

What’s covered in a workers comp policy?

When your employee is injured on the job, the policy provides them with financial support to cover medical expenses and lost wages.

Medical coverage + wage replacement =”indemnity”

Only injuries that arise out of and in the normal course of business are reimbursed. Medical coverage may include physician visits, prescription medications, surgeries, etc. The amount to cover lost wages is based on the employee’s weekly wage as determined by California law.

What’s not covered?

The key to workers compensation is that the injury must be work-related. If an employee gets hurt offsite on their lunch break, that typically doesn’t fall under their coverage. If you are commuting to your regular workplace, an injury is likely not covered but if you’re traveling to another job site during work hours, then it usually would be. Employees may also be denied coverage for self-inflicted injuries or if the employee was committing a crime.

Protect yourself from unexpected financial burdens by setting up your business with workers comp insurance. If you’re interested in getting a quote on a policy or if you have any lingering questions about what is or is not covered, schedule a call with us.

How Better Ergonomics Equals Better Economics for Business Owners

Mon, 18 Aug 2025 23:51:10 GMT

Climate change in the office can minimize injuries and costs

When you own a company, you are uniquely positioned to make decisions that benefit your profit margin, and at the same time, your employees. But it’s actually their position – literally – that may be challenging the balance of your bottom line.

Experts say that an ergonomically designed workplace minimizes injuries and mitigates resulting business expenses such as a workers’ comp claim or absenteeism.

The basic principle is that office furniture and equipment should be designed and arranged so that staff members have a safe, efficient space in which to work. And employers who design their businesses with ergonomics in mind are providing an office that’s, in effect, customized to the comfort and needs of the employees.

The result is a benefit to the business owner in four ways:

Minimizes workers’ compensation claims
Saves money through a reduction in injuries and absenteeism
Increases corporate morale and staff productivity
Improves employees’ long-term health and welfare

According to labor statistics, musculoskeletal disorders, or MSDs, cost employers more than $20 billion a year due to employee absences, insurance claims and medical costs. Patients may develop conditions over time which can affect muscles, tendons, ligaments, joints and nerves.

But when you dismiss the potential for problems you can suffer greater losses, even indirectly, when you have unexpected hiring expenses due to employee absence and the loss of productivity when a worker gets injured.

Examples of proper ergonomics include eye-level placement of computers to reduce neck strain and the use of office furniture with support for the lumbar region of the back. Some of the factors cited by risk management experts are room temperature, movement repetition and posture, which can each be addressed.

The first symptoms commonly experienced by patients with MSD are pain, fatigue and discomfort. You’re wise to assess the physical abilities of your workers to become aware of people’s limitations and unique characteristics of different employees as well.

Threats to the health and well-being of your employees can also threaten the health of your company; ergo, it pays to recognize the importance of staff wellness.

If it’s time for some climate change, the office politics will likely support it. Because who doesn’t like upgraded workstations and new furniture?

What You Need To Know About Getting A Performance Bond

Mon, 18 Aug 2025 23:50:33 GMT

Performance Bonds can help your construction company grow with confidence.

If your construction company is expected to provide a performance bond as part of a project, that’s good. It means you have won a bid and are preparing to start a job.

When your company starts bidding on projects for cities, states, municipalities, or even general contractors, you’ll be expected to guarantee that your company can meet the obligations detailed in the contract. Not only does the performance bond guarantee your ‘performance’ on the job, but also that your company can pay for losses if you deviate from the contract.

This assurance comes in the form of surety bonds. Basically, a surety company guarantees the contractor’s performance.

(Fun Fact: any federal government construction project that exceeds $100,000 is required to have a performance bond. Such requirements differ between state and local municipalities. We’ve known local cities that require contract bonds on projects as low as $20,000).

Allow us to get a little technical momentarily (we apologize, but it helps us know the terminology). In this arrangement, the contractor is known as the “principal,” the “obligee” is the client (the one who receives the obligation), and the “surety” is the organization that ensures the principal’s obligation.

Surety companies have the assets necessary to pay the obligee if the principal can’t fulfill the contract’s obligations. You may have heard of some of the top surety companies, such as Developers Surety and Indemnity Company, Old Republic Surety, Suretec, American Contractors Indemnity Company, etc… Don’t worry if these names are unfamiliar. You won’t be dealing with these guys anyway. Surety companies don’t work directly with contractors. Instead, they partner with brokerages or insurance agencies, like Fusco & Orsini.

The obligees typically require several kinds of bonds from companies bidding on large-scale projects. These bonds include Bid Bonds, Performance Bonds, Payment Bonds, Maintenance Bonds, and Subdivision Bonds, all of which fall under the ‘contract bonding’ category. Some bonds are required at different stages of a contract; for example, bid bonds are due at the time of bidding, and performance/payments bonds are due when the project begins.

These bonds go hand in hand. If a government agency is looking for one of these bonds from its bidders, it’s probably looking for most of the others, too.

Let’s look a little closer at performance bonds.

A performance bond guarantees that the contractor performs the services described in the contract. If, for instance, the contractor wins a bid to build a new public library, the performance bond would ensure that the library appears on schedule and meets the promised specifications.

If the contractor doesn’t complete the performance or the work is not up to the promised quality, the client (obligee) can claim against the surety company that issued the bond. The surety company will investigate, and if they find that the contractor did fail to perform, they will award damages to the obligee commiserate with the cost of the contractor’s failure.

Of course, the contractor doesn’t get off scot-free. They will then have to pay the surety company back in full.

The cost of a performance bond depends on various factors, including the scope of the contract and the principal’s creditworthiness (the surety company wants to ensure that the principal can pay back the bond amount if necessary).

To get a performance bond, contractors usually pay a premium on the bond amount and interest on the bond. Again, the price will depend on the bond’s cost and the principal’s risk (creditworthiness).

In most cases, you must obtain a bid bond before bidding on a project. Only after winning the project will you need to pick up a performance bond.

Even though all this may sound complicated, surety bonds, including performance bonds, are not too difficult to get. At Fusco & Orsini, we’d happily answer any questions about surety bonds and walk you through the application process.

Thanks for visiting us!

How are workers’ compensation waivers of subrogation endorsements billed?

Mon, 18 Aug 2025 23:50:12 GMT

In a recent post, we talked about dual wage classifications for California workers compensation within the construction industry. Today, we’re continuing our chat about workers comp and what the construction industry needs to know. We’ll delve into waiver of subrogation endorsements and how they’re billed. But first, what do those words mean? Waiver. Subrogation. Endorsements. Did we just stumble into a law office?

Let’s break it down…

As a quick refresher, workers compensation insurance is insurance for an employee who has been injured as a result of their job duties. Medical costs, rehabilitation costs, and lost wages are covered under workers comp insurance, and in most states, workers comp is required by law.

An endorsement is an addendum or add-on to an existing insurance policy. A waiver of subrogation is a type of endorsement that can be added on to your workers comp insurance policy. It can be a blanket waiver for all companies or it can be for a specific company. Sometimes when you’re contracting your employees out to another construction company, they may require a waiver of subrogation for their company.

A waiver is a surrender of a right or a claim. In the context of this article, we’re talking about waiving rights to subrogation. Subrogation is basically getting reimbursed for losses. For example, say you buy your friend a coffee because they forgot their wallet at home. They swing by the house and grab the wallet and now you want to be paid back for the coffee. If you waive subrogation, you’re waiving your right to be paid back.

It’s the same when it comes to workers comp insurance. By getting workers comp insurance, it’s basically a waiver of subrogation that you won’t go and sue your company for losses due to an on-the-job injury. It works the same for insurance companies. If your insurance company pays for your medical expenses when you are injured on another company’s job site, your insurance company may want to subrogate and get back that money from that job site’s insurance company. But, if you’ve waived subrogation, your insurance company can’t get that money back.

What are the implications for you as the owner of a construction company?

Just be sure to keep track of the wages of all employees you send to the jobsites for which you have a waiver of subrogation because you will need to report this to your insurance company. Since laws came into effect in 2008, insurers are now required to perform audits to make it easier to identify which classification(s) employees fall into.

What’s the premium charge for my workers compensation when I have a waiver of subrogation?

Insurance companies are now required to audit all new policies, so you can either proactively report your waiver of subrogation payroll for the affected employees or keep records and wait for the audit. If you choose the former, for each class code that the waiver applies to, here’s the formula you use to figure out the additional premium charge:

Premium x waiver percentage = additional premium charge

In a previous article, we explained how to calculate your premium: (total wages / 100) x billing rate. For example…if your total wages for the employees affected by the waiver of subrogation is $1,000 and the billing rate is $5 for every $100 of payroll, and the waiver rate is 2%, you’d calculate the premium as: Premium = (1,000/100) x 5 = $50.

From there, you can calculate the additional premium charge: 50 x .02 = 1

In this scenario, the additional premium charge would be $1, so the total premium would be $51.

So, when another company asks for a waiver of subrogation, now you know what the term means and what the implications are; i.e. you’ll be paying a higher premium on your workers compensation insurance. If you know the approximate payroll of the employees you’re contracting out, you’ll even be able to estimate out your additional premium payment. If you have any questions about workers compensation insurance and waivers of subrogation, don’t hesitate to call or text us at (858) 384-1506 .

What to Know: Employment Practices Liability Insurance

Mon, 18 Aug 2025 23:49:43 GMT

Considering purchasing EPLI (Employment Practices Liability Insurance)?

Let’s review the history and pros and cons of the current EPLI landscape to determine if EPL insurance is right for your business.

History of EPLI

EPLI was originally developed in 1990, following the rise in employment-related lawsuits that emerged after the passage of the Americans with Disabilities Act of 1990 and the Civil Rights Act of 1991.

In 2017, the purchase of EPLI dramatically increased, due to the MeToo movement and a surge in high-profile sexual harassment lawsuits.

EPLI Since March 2020

According to Travelers Insurance, increased layoffs following government orders to shut down businesses in March 2020 resulted in increased EPLI claims.

And, because of social inflation resulting in increased jury awards, the median EPLI award in 2020 reached $173,960.

Now, in 2021, the COVID-19 pandemic has created challenges for the EPLI market. On the heels of the global pandemic, a correction is taking place in the broader insurance marketplace, with EPLI proving to be one of the more affected lines of insurance.

Due to these circumstances, insurance companies have seriously restricted the EPLI insurance available on their package policies. For example, for most classes, GUARD now provides a maximum limit of $10,000 for EPLI limits on their Business Owner’s Policy (BOP) or commercial package. We have witnessed similar restrictions from Hartford, Liberty Mutual, and Travelers.

When it comes to GUARD, for example, we had success in the past, providing businesses of all types with $500,000 EPLI limits and a $500 deductible. Of course, like all EPLI, exclusions applied; but the limits and deductibles were excellent.

Now, at $10,000 limits, we need to look elsewhere. And for most businesses, that means the excess and surplus lines marketplace.

The Excess and Surplus Line Marketplace

The excess and surplus (E&S) lines marketplace, or the ‘non-admitted’ market, as referred to by many, can provide essential coverage when it is unavailable in the standard market.

When considering E&S, you must be aware of the policy forms and coverage provided. Unlike admitted programs, E&S carriers can form policies based on market conditions without the State Department of Insurance approval. So, you need to remain in tune with the offering and hire a broker who understands the marketplace.

Self-insured Retention (SIR)

If you do purchase EPLI from the E&S marketplace, your policy will most likely contain self-insured retention rather than a deductible.

A SIR is a dollar amount specified in a liability insurance policy that the insured must pay before the insurance policy responds to a loss. The SIR applies to both defense and indemnity. Check out our YouTube channel for additional information about self-insured retention.

We find that self-insured retention ranges from $10,000 to $100,000, depending on the industry and prior history.

When consulting with clients, I advise them to consider a SIR as a ‘stop-loss’, meaning you know the most you can lose in any one EPLI claim.

Considering the SIR, is EPLI right for you?

In most cases, businesses can settle employment-related suits under the SIR. Some companies may even fare better without the coverage when considering the price of settlements in addition to the premium cost.

Sub-limits

It is also important to understand that sub-limits may apply to specific sections of the EPLI policy. A sub-limit is a fixed coverage amount available to cover a certain kind of loss.

One example of this is wage and hour coverage. According to Advisen, wage and hour laws violations are one of the largest employment practice risks employers will face.

The law requires employers to pay employees for all time worked, including any activity that is part of the job before or after they clock out.

Examples include:

· Travel time between jobs

· Booting up computers

· Time spent working during a meal or rest break

The rapid evolution of wage and hour exposure makes underwriting and pricing complex for insurance companies. Most EPLI policies contain sub-limits on wage and hour coverage to limit their exposure.

This means the provider will limit wage and hour claims to $100,000, $150,000, or $250,000 versus the $1,000,000 policy limit and the SIR will still apply.

I have read policies with a $100,000 wage, hour sub-limit, and $50,000 self-insured retention. In other cases, I’ve seen policies with $250,000 sub-limits and a $25,000 SIR.

It goes without saying that in these examples, one policy will contain far more value than the other.

Other sections of the EPLI policy that may have sub-limits include Crisis Event Expenses, Illegal Immigrant Investigative Defense Costs, and Workplace Violence Expenses.

Understand your options before making a choice and purchasing insurance.

Exclusions

Finally, you need to review and understand the exclusions on your EPLI proposal before purchasing coverage.

Exclusions will definitely apply. There is no such thing as an EPLI policy without exclusions.

Some standard exclusions include prior notice, intellectual property, ERISA, abuse, and a hostile work environment.

But here’s the kicker – Most policies contain a “no duty to defend” clause. In other words, if your insurance company will not defend you in a lawsuit for an excluded offense.

Now, you are burdened with the expense of retaining legal counsel and a possible judgment if you lose the case.

Understand your coverage so that you can best protect yourself and your business.

So what do we think about EPLI?

We still believe that businesses must consider an EPLI policy.

Being in my position for several years, I have witnessed many clients’ businesses saved by the protection provided by an EPLI policy.

Keep in mind that data shows the average cost to DEFEND an EPLI suit is $200,000 per claim.

And the average jury award is $250,000

If a case settles, the judgment averages $75,000.

These are big numbers that equate to significant losses for most businesses.

Consider how EPLI can protect yours.

Homeowners insurance products have many components. Read on to learn more (Q&A).

Mon, 18 Aug 2025 23:48:47 GMT

Homeowners Insurance products have many components. Read on to learn more.

How can Comparing Quotes Help Homeowners Save Money on Expensive Endorsements Like Flood or Earthquake Insurance?

For many people, their home is the biggest purchase they will ever make. It is critically important, then, to protect this investment with proper insurance coverage. But homeowners coverage can get expensive quickly, especially as you start to add more coverage through endorsements.

A homeowner can add endorsements, such as earthquake and flood, to their policy for an additional charge. Depending on where you live, your mortgage or finance company may require these coverages. In other cases, they may be a best practice that your agent or realtor recommends. Be sure you understand what is covered by these endorsements to make an informed decision to compare rates and carriers. Some insurance companies may have more exclusions that make it harder to use your coverage, for example.

Since these endorsements can quickly grow your premium, it is essential to shop around and compare quotes from different insurance companies. You may find a significant difference in rates from carrier to carrier. There are several reasons for this discrepancy – you may fit a particular carrier’s risk profile better than another, or one carrier may wish to grow their policies in force in your area, making the rate more attractive. But if you do not compare quotes, you will never know.

2. Is it Possible and Wise for a Homeowner to Compare Insurance Companies Based on More Than Just Cost, Such as the Percentage of Denied Claims?

It is a good idea to compare insurance companies based on more than just the lowest cost provider. The low-cost option may end up being more expensive over time if you have a claim and your carrier does not cover as much as you expected. AM Best rates insurance companies to show their financial strength – this may be important if you file a claim. Knowing your carrier is solvent and has the financial backing to pay your claim can be an essential consideration.

You may also be interested in the percentage of claims paid versus denied by the carrier. A carrier that has a higher rate of denied claims may also deny yours. You want to ensure that it will be easy and fair to do business with your insurance company should you need to file a claim.

Many times, the way an insurance company handles claims is a differentiator. Some carriers rank higher on customer satisfaction surveys, for example. Customer satisfaction surveys may indicate a company that will be pleasant and easy to work with if you file a claim. While insurance is often commoditized, the lowest priced option is not always the best choice.

3. What Advice Would you Give for First-Time Buyers Looking for Homeowners Insurance?

Do not be afraid to ask questions and compare your options. Shop around and take your time to understand your needs and coverage options. You do not need to go with the first offer you receive from an insurance company.

Insurance is a very specialized product with many nuances. It is highly regulated, which means governing agencies design rules to protect your rights as an insurance buyer. Talking to the experts at Fusco & Orsini Insurance Services can help you understand your rights.

In California, Homeowners Insurance can be especially challenging to navigate. Catastrophic wildfires in recent years have caused some carriers to stop writing coverage in the state. Other insurance companies have kept their policies in force, but their rates have significantly increased. Higher premiums can make securing affordable homeowners coverage difficult for first-time homebuyers.

Your new home and your situation will determine the right Homeowners Insurance coverage purchase. The right policy depends on your home location, whether it is one family or multi-family, and the construction type.

Working with an experienced insurance agent is a best practice for first-time home buyers.

4. How do a State’s Regulations and Laws Impact the Amount or Type of Coverage a Homeowner Should buy?

Knowing how much coverage or what kind of coverage to purchase can be challenging. There are many considerations and decisions to make while deciding on a coverage. State laws and regulations may affect your choices, too.

In some areas, flood or earthquake coverage is mandatory. Regulatory agencies also want to ensure homeowners are protected if they file a claim, so you may be required to maintain a certain amount of insurance coverage compared to your home’s value. Some mortgage companies will require you to carry a certain amount of coverage and may dictate your deductible, too. They want to protect their investment in your home.

If your home is a multi-family home with rental units, you will have different insurance needs than a single-family homeowner. Buying a condo also brings new insurance considerations. State regulations will help guide how much coverage and type to purchase, and your agent will help you understand these regulations.

Regulations and laws change frequently, and it can be challenging to keep up with changing trends. Talking with insurance experts can help protect your home investment and save you time deciding how much and what type of homeowner coverage to purchase.

How do I Learn More?

Now that you know more about Homeowners Insurance, you can contact Fusco & Orsini Insurance Services experts for more information. Our licensed professionals will be happy to answer any questions you have.

External Links:

https://www.iii.org/press-release/californias-seismic-risks-remain-50-years-after-sylmar-quake-020821
http://www3.ambest.com/pc/
http://www.insurance.ca.gov/01-consumers/105-type/5-residential/index.cfm

What to Do if Your Policy Increases

Mon, 18 Aug 2025 23:48:47 GMT

Insurance policies are SKYROCKETING! Here’s what to do if your insurance policy increases

Most businesses battled increased costs in 2022. Inflation of goods and services contributed to rising prices and was the culprit of a squeeze on the bottom line for many businesses.

As an insurance agency servicing businesses across the country, we warn our clients to expect increased insurance costs in 2023.

Increasing insurance premiums cannot only be attributed to the inflation of goods and services. Let’s discuss some other factors that may also influence this.

The Harsh Truth

We expect insurance costs to increase across most markets in 2023.

In 2022, we witnessed increases in some lines of coverage, such as property insurance, automobile insurance, and certain liability products. However, in 2023, we think premiums will rise in all products, and none will be insulated from the pressures of macro-level economic conditions.

Of course, the simplest explanation is that insurance companies had to increase rates to keep up with their costs to repair and replace damaged property. And insurers had to act quickly because of the rapid momentum of these increased costs.

However, this is not the only factor to consider.

Social Inflation

Another lesser-known trend driving insurance premiums up revolves around social inflation.

As an insurance buyer, you may have heard the term ‘social inflation’ used by your insurance representative. It refers to trends that impact insurance costs, including increased litigation, plaintiff-friendly legal decisions, more significant jury awards, and broad insurance policy interpretation.

These are a few of the factors driving social inflation.

Litigation Funding

Business owners should remain informed about litigation funding, which occurs when a third party provides resources to attorneys to finance a lawsuit. In exchange, the third party receives a portion of the settlement.

Litigation funding can be equated to investing in a legal matter. It increases the cost of litigation because plaintiffs can take cases further and pursue larger settlements.

Tort Reform

Laws designed to reduce litigation can be referred to as tort reform. Its purpose is to prevent frivolous lawsuits and preserve laws that prevent abuse against businesses.

Many states have enacted tort reforms over the last several decades, leading to fewer claims and punitive damage caps. However, in recent years, opponents have challenged tort reforms believing that they lower settlements to the point where attorneys take on fewer new cases.

If tort reform continues to erode, there could be fewer restrictions on punitive and noneconomic damages, which drive up the costs of claims.

Plaintiff-friendly Legal Decisions and Large Jury Rewards

Anti-corporate culture is more prevalent than ever due to increasing distrust caused by highly publicized issues related to privacy and data mishandling.

Such issues impact the perception of businesses by a jury in court. Juries are likelier to sympathize with plaintiffs, and the plaintiff’s counsel plays to a jury’s emotions.

This leads to higher jury awards and nuclear verdicts, which have become the new norm.

So how can you protect your business and prepare for rising costs?

Insurance is a cyclical market. We constantly remind our clients to take advantage of the soft market periods because challenging periods always follow.

In my 20 years in this business, I can’t say I’ve witnessed this many forces pressuring insurers at one time.

Here are a few tips to protect your business and prepare for rising costs:

Do not trade coverage for the cost

I’ve said it many times, but no two insurance policies are identical. Remember that you could give up important protection when presented with savings.

Also, I do not recommend decreasing insurance limits or removing essential coverage items to lower premiums. That said, if you’re more adverse to risk and understand the ramifications of higher deductibles or self-insured retention, that is a strategy you can discuss with your agent.

However, lowering limits or reducing coverage could prove detrimental to your business.

Consider an Umbrella Policy

Rather than reduce your coverage, consider increasing it. I am telling you to buy more insurance when businesses want to cut costs.

An umbrella policy provides financial protection above the limits of your organization’s other policies. An umbrella can provide additional protection for various concerns such as vehicle accidents, third-party property damage, product liability, libel, customer injuries, and employee injuries.

Protect yourself from employment practices claims

Given social inflation trends, employment practices claims are common and devastating to a business. For more information, check out our recent video about employment practices liability insurance (EPLI), which you should consider purchasing. However, you must also deploy proper human resource practices, such as regular employee handbooks and workplace policy reviews.

Partner with a reputable independent agent

Independent insurance agencies contract with several insurance companies, not just one. In challenging market conditions, an independent agent has the knowledge and resources to help you navigate many policy options. An independent agent will also strategize with you to determine the best course of action when building your insurance portfolio.

What can FOA do for you?

Our team is experienced and has the knowledge to help businesses in a complex market. Several of our teammates have endured the challenging markets of the early 2000s, 2008-2010, and COVID. We are ready for the new challenges upon us.

Get started by texting us at (858) 348-1506. Let’s talk.

What is the price of business auto insurance for contractors?

Mon, 18 Aug 2025 23:48:01 GMT

One of the questions we receive every week at Fusco Orsini & Associates is the price of business auto insurance for contractors. In this video, Mike Fusco provides business insurance advice by giving the state of the business auto marketplace and information on insurance providers’ price business auto premium.

RISING BUSINESS AUTO PREMIUMS

We are in a difficult market for business auto insurance. The rising costs of business auto insurance come as a surprise to contractors, especially in populous states like California, Texas, Florida, and New York. Considering less dense roadways in 2020 because of the COVID19 pandemic. However, did you know that fatalities due to auto accidents increased by 7% in 2020? Experts relate this increase to distracted driving and higher speeds. Several insurance companies stopped offering business auto insurance in 2019 and 2020, and the trend continued in 2021. Fewer options mean a more challenging market and increased pricing from the carriers that remain. We believe that costs will eventually level off, and once new programs come to market, we will find prices to soften.

LOWER PROFIT MARGINS DUE TO COSTLIER CLAIMS

Let’s face it – insurance companies are in business to make a profit. Do not confuse this with the mantra that insurance companies are in business to deny claims. We track the results of every claim filed on behalf of our customers, and at the time of this article, FOA’s 12 week claims acceptance average stands at 72%. Insurance companies have realized losses on their business auto insurance book of business due to higher liability losses, the increased cost to fix newer autos, and overall trends in accidents caused by distracted drivers. New automobiles, such as pickup trucks, cost more to repair because of newer technologies. Several insurance companies, such as Liberty Mutual, Hartford, Travelers, and Amtrust, have halted their standalone business auto offering in California alone. Others, such as Mercury and GUARD, charge higher premiums than in the past. On average, we FOA has realized an increase from $700-$800 per automobile to $1,200-1,500 per auto.

THE FACTORS YOU SHOULD CONSIDER WHEN PRICING BUSINESS AUTO

If you are considering a new automobile insurance policy, here are some factors:

1 – What type of vehicle are you driving? Heavier vehicles cost more for liability, and you will pay more on the physical damage coverage for newer, more valuable cars.

2 – How is your driving record? How about the driving record for your employees? An insurance company will charge more premium with activity on your record versus a clean driving history.

3 – What are your requirements? Do your clients require symbol 1 (any auto) to drive on their job site or property? Do you need additional named insured endorsements with a waiver of subrogation and primary wording?

4 – Do you need hired and non-owned auto liability? PERSONAL AUTO POLICIES will not provide this crucial coverage!

TIPS TO SECURE MORE COMPETITIVE PRICING

Similar to other forms of insurance, such as general liability and workers’ compensation, insurance companies emphasize safety programs when offering business automobile insurance. Safety programs such as distracted driving training, MVR pull programs, and vehicle maintenance programs. What type of safety programs do you have in place?

IN CONCLUSION

We are happy to help you put together a great business auto program. At FOA, we don’t rely strictly on the business auto insurance policy. Instead, we will help you formulate a safety program and provide recommendations to give you an upper hand when pricing business auto insurance. Please complete the form below, and we will connect you with a Fusco & Orsini associate. Thank you for watching!

Here’s Lookin’ at You, Sun

Mon, 18 Aug 2025 23:47:59 GMT

Tips to beat the heat this summer

You don’t have to be a detective to see the sun is packing heat. And that means some potential for danger … unless you get clued in and put in place some protective measures this summer.

There are approximately 330 heat-related deaths each year, according to the Centers for Disease Control and Prevention. Add to that the numerous illnesses and injuries – from heat stroke to sunburns – and it can change the tone of your summer vacation.

There are steps you can take to minimize the possibility of injuries, including:

Wear light colors and be sure your clothing is loose-fitting to keep your body temperature down.
Cover your head if you work outdoors or plan to attend a ball game or other activity in the summer sun. Avoid putting your face or neck in direct sunlight.
Drink more water than at any other time of year. Medical professionals recommend 8 ounces every half hour.

Once you’re aware of the effects of spending time in the sunshine, you can meet the threats out there with a healthy measure of prevention. That means your plans for working outdoors or catching some waves will turn out just fine – as predicted. It’s best to keep the mysteries where they belong – in your summer reading material.

Heat Illness Prevention: How to Avoid a Meltdown

Mon, 18 Aug 2025 23:47:06 GMT

If you’ve ever been soaking in the sun playing Words with Friends, you’ve probably seen the warning pop up – a forced shutdown on your phone due to overheating. While smartphones and tablets can take temperatures up to about 113 degrees Fahrenheit, there are limits to what the human machine can tolerate as well.

Summer heat can cause serious illness when individuals are not aware of its effects. Humans are designed with countermeasures such as perspiration to offset high temperatures, but there are limits to their efficacy and the hazards include a risk of injury or death.

Physical Experience

You can remember times when it’s clear you’ve been in the sun or the sauna too long. But there are several factors related to your body’s reaction to heat, including:

Temperature
Humidity
Clothing
Airflow
Personal health risks

When exposed to a hot environment, your blood flow rises and sends heat to your skin, which then transfers to the surrounding air, which is called convection. Sweat is a natural response to overheating, as it cools the body from the skin surface, but there are conditions that limit its ability to work. There are medications and some skin conditions that cause individuals to sweat less effectively. If you aren’t accustomed to the level of heat you’re subjected to, you may be victimized by exposure to extreme temperatures. And your level of hydration is imperative to provide enough water for your body to secrete.

Illnesses that may result from too much exposure to extreme temperatures include: heat rash; heat cramps; heat exhaustion; and heatstroke. Symptoms can range from blurry vision and nausea to vomiting and loss of consciousness.

Heat exhaustion, which occurs when the body’s regulating system is overworked, is one of the most serious illnesses caused by extreme temperatures. Symptoms of heat exhaustion may include:

Fatigue
Dizziness
Headache
Hyperventilation
Loss of appetite
Nausea
Anxiety
Loss of coordination
Weak, rapid pulse

Heatstroke eclipses heat exhaustion as a life-threatening condition. A victim of heatstroke may move through lesser phases of heat-related illness before suffering from symptoms that resemble a heart attack. When your body’s core temperature is in the danger zone and you are out of both water and salt, you experience heatstroke. Symptoms may include:

Seizures
Rapid pulse
Difficulty breathing
Bizarre behavior
Vomiting
Headache
Constricted pupils

Heat-Related Illness and the Workplace

Regulated through the Occupational Safety and Health Administration (OSHA), the safety of staff members needs to be a prime concern for business owners. Companies are responsible to mitigate circumstances that can result in serious harm or death for the safety of their employees. The hazards of heat exposure is among the concerns that have to be addressed.

The types of regulations governing your company depend on your industry. In addition to establishing appropriate policies and procedures, employees need training so they can follow safety practices that diminish the risks.

Guidance offered by experts includes personal factors that contribute to the risks imposed by exposure to heat:

Obesity/lack of physical fitness
Insufficient heat tolerance
Age over 40
Certain medications
Pre-existing medical conditions
Previous bout with heatstroke

Your body is a machine, and like all forms of automation it needs maintenance. Reducing your time in a heat-inducing environment is ideal, but when it cannot be avoided you should pay attention to your physical responses. Checking in advance for any pre-existing conditions that set you up for a negative reaction to extreme temperatures is possibly the best way to avoid an unnecessary shutdown.

What Is A Payment Bond For Contractors?

Mon, 18 Aug 2025 23:46:45 GMT

Payment bonds can help your construction firm succeed!

Construction professionals appreciate getting paid for their work, but employers rarely have to take out a special type of bond just to guarantee that they’ll pay their employees, subcontractors, and suppliers.

Unfortunately, construction companies are the exception to the rule, at least if they want to win government contract bids or any other projects requiring a “payment bond” is needed.

A payment bond is one of the types of surety bonds that most government projects require of all the contractors who bid on their projects. Surety bonds are also becoming more popular on commercial projects and include bid bonds, performance bonds, and payment bonds (also referred to as labor & material bonds).

A payment bond simply guarantees that a construction company will pay its employees , subcontractors, and suppliers throughout a construction project. The project owner or person hiring the contractor will indemnify themselves through this type of surety bond in case they become liable for unpaid employees, subcontractors, or suppliers.

For large-scale projects, a construction company will have to invest significant money to purchase materials and pay subcontractors for their work. Sometimes, projects can last years, draining a construction company of funds. If they become unable to afford materials or pay their subcontractors in the middle of the project, the supplies could dry up, and the subcontractors could walk away, leaving the client in a bind.

These negative consequences are why payment bonds go hand in hand with performance bonds, guaranteeing that the construction company will perform the work according to its bid. Once the contractor wins a project bid, the project owner expects the winning construction company to post a payment and a performance bond. A surety company issues the bond.

A surety bond, including a payment bond, has many similarities with a loan. Before being approved by their surety company, a construction company must prove that it has the financial means to cover the bond. If the client makes a claim against the bond, the insurance surety will pay the cost and then collect the money from the construction company.

In other words, as long as you have a clear means to pay your employees, subcontractors, and suppliers, you should qualify for a payment bond, allowing you to bid on a much wider range of construction projects.

As Fusco & Orsini Insurance Services, we specialize in helping our clients apply and qualify for surety bonds at the best rates possible. If you’d like to explore the possibility of getting a bond (most construction companies start with smaller bond amounts), we’d be glad to help. We can also answer any questions you have about the process.

Happy New Year! Here’s what we’re doing to improve your client experience!

Mon, 18 Aug 2025 23:46:07 GMT

Can you believe it’s 2022? Mike Fusco and his team at Fusco Orsini & Associates wish you and yours a HAPPY and HEALTHY NEW YEAR.

I’m sure you have big plans for 2022, both personally and professionally. We have big projects in motion, and most of our goals revolve around improving our relationship with you; we want to deliver the best customer experience possible!

Without further ado, Mike explains improvements coming to you, as well as some reminders about features to take advantage of now.

SMALLER TEAM FOR MORE PERSONALIZATION

We made changes at the end of 2021 to improve your customer experience right away. We broke the agency into teams, with each broker (Mike, Valeri, Daniel, Brent, Melanie, and Ray) leading account managers and customer service representatives. The smaller groups allow each to know you better, know your account, and understand your needs.

You can find all of the teams’ contact information by visiting the brokers’ page below.

Team Fusco: https://foagency.com/meet-michael-fusco/

Team Orsini: https://foagency.com/meet-valeri-orsini/

Team Morton: https://foagency.com/meet-daniel-morton/

Team Cherniss: https://foagency.com/meet-brent-cherniss/

Team McCann: https://foagency.com/meet-melanie-mccann/

Team Ramirez: https://foagency.com/meet-ray-ramirez/

AN IMPROVED CERTIFICATE OF INSURANCE PROCESS

We understand that requesting and tracking your insurance certificate is burdensome. And the challenge of managing insurance certs becomes incredibly challenging for contractors’ insurance, especially when it comes to general liability additional insured endorsements. We don’t want you to struggle with certificates or spend money on hiring a person to handle your certificate issuance.

*Remember to ask about our certificate compliance and tracking service.

Instead, we provide each client with a free CSR24 client portal, where all certificates are loaded and retained. We will improve the portal by creating a custom form to load your information to save you from duplicate input. We also plan to show you all certificates previously issued, so you can quickly request a reissue. We plan to complete this project by the end of Q1, 2022.

A CHATBOT FOR OUR WEBSITE AND PORTAL

We understand that not all chatbots provide an enhanced client experience, hence building our own. The chatbot will reside on our website and client portal and gather information from your file.

Our goal is to deliver items quickly and painlessly, such as ID cards, certificates, and billing information. But don’t worry – our team will remain available to assist through the chat function whenever you need us!

MORE OF THE SAME GREAT PRODUCTS AND SERVICES

We will continue to allow our customers to communicate with us in any format. Our award-winning text lines provide real-time access to our broker teams, and they are easily remembered by sharing the landline number. You may continue to call and email, and we are ready to assist.

We plan to contract with new insurance companies in 2022 to continue delivering the best products in the marketplace. Our partnership with two companies will commence soon. Rest assured that we constantly develop new offerings if we believe they will best serve our clients.

REMEMBER OUR REFERRAL PROGRAM

We mailed out hundreds of Amazon gift cards for your referrals in 2021, and we want to do the same in 2022. Please remember that for every referral to which we earn their business, you will receive a $25.00 Amazon gift card in the mail. I placed the referral form below!

WHAT’S NEXT?

We want to hear from you! What are we doing well? Where do we need improvement? Please call Mike Fusco to discuss at (858) 384-1507! Thanks again for visiting us!

Fusco & Orsini President Speaks at Insurance Association Conference

Mon, 18 Aug 2025 23:45:10 GMT

Michael Fusco, president and co-founder of Fusco & Orsini Insurance Services, was invited to speak at a conference of the Insurance Agency Owners Alliance, or IAOA, on January 24, 2020. The annual event drew more than 800 owners and 100 vendors and insurance companies to the Sheraton San Diego Hotel and Marina.

“The theme of my interview was to share and collaborate on ideas to help improve our sector,” says Fusco, who the meeting coordinator chose for his experience building a successful agency. “There were a lot of newbies in the audience. I shared mistakes I learned from – and expanded upon training and finding the right people.”

The interview-style session was a first for the IAOA Conference, which Fusco says evolves with each event.

“This year it was in San Diego. Next year, it’ll be in Tampa,” he says. “The group has been incredible; I’ve learned so much from interacting with fellow agency owners from around the country.”

Founded by Nick Ayers and Dave Jackson in 2015, the Insurance Agency Owners Alliance is a fast-growing association of independent insurance agency owners in the country. They aim for selfless innovation and collaboration with fellow agents by banding together for events, webinars, videos, podcasts, luncheons, and more.

“The intention is to bring independent folks together, to collaborate, to share ideas,” Fusco explains.

In addition to rubbing shoulders with other independent insurance agents, some of his strategies revolve around maintaining flexibility and continuing to make changes when necessary.

“The industry’s ever-changing, and you have to be on top of it. The technology is changing rapidly; you have to know what’s out there and stay ahead of it,” Fusco says. “Technology is everything. Automation, marketing, CRM – it’s all about tech.”

Fusco coaches fellow agents to plow through the tough parts of the business and keep learning.

“Subscribe to as many different industry-related publications as you can,” he says, suggesting reading material such as Rough Notes, Insurance Journal, and Coverager. “Learn from people who have been there and done it.”

What is the cost of a general liability policy for a general contractor?

Mon, 18 Aug 2025 23:45:07 GMT

Hi, this is Mike from Fusco Orsini & Associates. Here’s a question we get all the time.

How much does a general liability policy cost for a general contractor?

That’s a tricky question to answer without knowing more specifics about the general construction company, but here are some tips to keep in mind.

FACTORS THAT DETERMINE THE COST OF YOUR POLICY

Suppose you’re a smaller contractor (let’s say you’re a single owner) and employ one or two workers, and you subcontract about 50% or less of your gross sales. In that case, your policy may cost $1,200 to $3,500 per year, depending on the type of operations you perform, your geographical location, and the exclusions and endorsements included.

Let me explain further. Suppose your operations include room additions, structural remodels, roofing, foundation work, or standalone door and window installation. In that case, you’re going to pay more than the contractor that’s performing interior kitchens and bathroom models, some finished carpentry work, and that type of operation.

Exclusions are an essential factor when it comes to the cost of the policy. At our agency, we like to ensure that our customers don’t have subsidence exclusions, action over exclusions on their policy, or prior work exclusions. We want to ensure that they have appropriate endorsements, especially additional named insured endorsements if they need them to get on a project.

THE PRICING MODEL DIFFERS FOR LARGER CONTRACTORS

If you’re a larger general contractor, the cost is typically always determined by gross sales. So, let’s say you’re two million to three million dollars in gross sales. If you’re focused on commercial work, you’re looking at three to four dollars per thousand of sales on your rate. If you’re in residential, you’re looking more like five to six dollars. And if you’re performing new residential, such as custom homes, tract homes, condominiums, and townhomes, you’re going to have a more expensive policy than most. All of these factors determine the price of your general liability policy.

ADDITIONAL OPTIONS TO CONTACT US

If you’re a general contractor and you’d like to speak a little more, understand more about what I’m talking about, you can call us at (858) 384-1506 . You can also reach me directly at mike@foagency.com. We have several years of experience ensuring contractors. It’s a lot of what we do here every day at our agency, and we’re happy to help you out and get you the right policy at the correct cost. Thanks for watching, and we’ll see you soon.

COMPLETE THE FOLLOWING FORM TO SPEAK TO AN AGENT

Fusco & Orsini Participates in “Promotions That Give Back” benefitting Susan G. Komen® San Diego

Mon, 18 Aug 2025 23:41:53 GMT

As National Breast Cancer Awareness Month approaches, we proudly announce our participation in “Promotions That Give Back” benefitting Susan G. Komen San Diego. Komen San Diego is the only organization that studies San Diego County to identify the gaps in breast cancer care and the barriers to health access. Komen San Diego then provides the community with breast health services to fill the gaps and increase access to early detection and quality treatment.

Komen San Diego saves lives by supporting:

Free mammograms
Free diagnostic services for women who are uninsured or underinsured
Help with life expenses, medical expenses, rent, food, child care and transportation
Public awareness and education about breast cancer issues
Support for women diagnosed with cancer who are enrolled in treatment programs
Public Policy and Advocacy to translate the Komen promise to end breast cancer forever into action at all levels of government
Research to discover and deliver cures

To support the cause, we’re donating $5 to Susan G. Komen® San Diego for each new or renewed insurance contract between Oct. 1 and Oct. 31, 2018. To get started, please call or text (858) 384-1506 or email mycoverageteam@foagency.com.

Thank you for joining us in supporting this vital cause.

What is the cost of a cyber insurance policy? Watch to learn more.

Mon, 18 Aug 2025 23:41:07 GMT

We hear about cybercrimes constantly. Ransomware attacks, cyberextortion, identity fraud, phishing scams, malware; are all around us. With the increase of cyber activity in 2020 and 2021, cyber insurance, such as cyber liability, has become more critical.

CYBER LIABILITY INSURANCE EXPLAINED

You will find several resources on your YouTube channel regarding cyber insurance. I invite you to search under our ‘Cyber Risk” playlist, to find excellent videos and information about cyber exposures.

WHAT IS THE COST OF A CYBER INSURANCE POLICY

Cyber insurance policies were once very inexpensive. However, with the surge of cybercrime and resulting losses to insurance companies, prices are increasing. In some cases, we have witnessed increases of 20-25% at the policy renewal. And with the hardening market comes more difficult underwriting. In the past, an insurance company would happily provide a cyber insurance policy quote with a simple one to two-page application. In the current environment, the cyber insurance application expanded to four and five pages. And not only did the application become more expansive, but the questions, far more technical. In most cases, you will need involvement from your IT professional to complete the questions. On average, we find cyber insurance premiums to range from $1,700-$4,500 per year.

THE NEXT STEPS TO CYBER PROTECTION

Fusco Orsini & Associates represent the best group of cyber insurance companies in the marketplace. By filling out the form below, we will approach several cyber insurance programs on your behalf. Thank you for visiting us!

Fusco Orsini & Associates Helping Warriors and their Families Thrive

Mon, 18 Aug 2025 23:40:40 GMT

Fusco Orsini & Associates has become a Wounded Warriors Corporate Champion, taking an active step in commemorating Armed Forces Day on May 15, 2021. This partnership delivers life-changing programs to military members. As a corporate champion, the firm contributes to the work of the Wounded Warrior Project, a nonprofit serving more than 100,000 soldiers suffering from traumatic brain injury, post-traumatic stress disorder (PTSD), or the loss of an arm or leg. The program supports injured warriors, their families, and caregivers.

“We choose to support the Wounded Warriors Project because we are based in the military community of San Diego, and many of us have spouses, family, and friends in the military who we want to honor,” said Daniel Morton, director of sales for Fusco Orsini & Associates. “We have personally seen the hardships that military members endure after injuries, and we believe in supporting an organization that supports those who sacrificed for our country.”

Through the support of companies like Fusco Orsini & Associates, warriors can connect, overcome mental health challenges, lead active and healthy lives, and find rewarding civilian careers. These programs and services are free to the warriors and their loved ones, so Fusco Orsini & Associates values its partnership with the nonprofit organization.

The insurance brokerage is announcing its partnership today, leading up to Armed Forces Day, a national holiday that unites Americans to celebrate the patriotic service of our heroes.

Armed Forces Day commemorates all six branches of the United States military, including:

Army
Marine Corps
Navy
Air Force
Space Force
Coast Guard

President Harry S. Truman established the third Saturday in May to honor the men and women of the military. The first Armed Forces Day in 1950 drew more than 10,000 veterans and troops to Washington, D.C., and 30,000 individuals to parades held in New York City. President John F. Kennedy declared Armed Forces Day a national holiday in 1961 so that residents of the United States from coast to coast could become better educated through parades, receptions, and exercises celebrating the strength of the military.

While Veterans Day honors members of the military who served our nation at war and Memorial Day remembers those who died in service, Armed Forces Day recognizes men and women who are currently serving, in addition to those who served and sacrificed to defend our country. Perhaps its most significant purpose is to raise awareness among the public about our military members’ role in serving the community.

For more information about the Wounded Warrior Project, visit woundedwarriorproject.org.

What is a Manifestation Clause, and Does Your General Liability Policy Include One?

Mon, 18 Aug 2025 23:39:38 GMT

Let’s just get this out into the open – INSURANCE IS CONFUSING.

There are forms. Many forms. Forms filled with fine print, limitations, and clauses you’ve never heard of before. Typically speaking, most consumers do not enjoy reading their insurance policy and reviewing all of the provisions of the coverage. Even if they did, the language would be too confusing. Further, since the policyholder rarely has a copy of the policy prior to purchasing the insurance, it is the broker’s job to explain and essentially summarize the key forms that are included.

Those provisions and clauses are important. A perfect example of this is a manifestation clause, which can leave you high and dry if it’s in your insurance policy.

A manifestation clause most often appears in the general liability insurance policy of construction companies, remodelers, builders and the like. To understand what a manifestation clause is, let me first explain what it isn’t. A general liability policy without a manifestation clause provides defense and indemnity for covered losses regardless of when the bodily injury or property damage first manifests. Thus, if the policy contains a manifestation clause, the insurance only applies when bodily injury and/or property damage first manifests during the policy period.

It is also important to point out that there is no standard wording for a manifestation clause, which makes figuring out if your policy has a manifestation clause even more confusing.

Here’s an example of a manifestation clause in action:

Let’s say you had a policy which contained a manifestation clause, and it expired 4/1/08. You then switched to a different carrier, and the new policy became effective on 4/1/08. In the meantime, a claim ‘occurred’ (unknown to you or anyone else) sometime during or after a job that was completed in February of 2008.

In June of 2008, the owner of the home where you recently completed the project notices a strange smell coming from a seldom used room of his house. When he enters the room, he notices stains on the ceiling and walls (drywall), damaged flooring and damaged furniture. Once investigated, it is discovered that a small hole in a pipe has been leaking for months.

Unfortunately, because the claim ‘manifested’ itself, or was first noticed in June of 2008, the policy which expired on 4/1/08 will not cover the damage, because it contained a ‘manifestation clause’. Thus, the owner of the construction company could be in big trouble, as he /she is facing a possible uncovered loss.

Not all is lost at this point. Reference back to my blog post on “prior works exclusions”. If the new policy does not contain a prior works exclusion, the loss may be covered under the new term, and the owner of the business could be saved.

However, it takes a commercial insurance broker with extensive knowledge of the coverage being offered to properly protect the consumer.

Many business owners, including construction company owners, don’t even know that their liability insurance policy carries a manifestation clause. Your company, the jobs of your employees and everything you’ve worked hard to achieve in your life could be at risk if you have a manifestation clause in your insurance policy.

At Fusco & Orsini Insurance Services, we almost always make sure the manifestation clause is taken out of the policies we offer our clients. The only exception is if a client cannot afford a manifestation-free policy (adding a manifestation clause to the policy lowers its price).

To find out if your current general liability insurance includes a manifestation clause, you can always call us at Fusco & Orsini. We’ll carefully review your policy for you and let you know exactly how protected your company is. If you have any additional questions about manifestation clauses, don’t hesitate to contact us.

2018 Finalist in San Diego’s Best Union Tribune Readers Poll!

Mon, 18 Aug 2025 23:39:04 GMT

San Diego’s Best Readers Poll Recognition

In 2018, Fusco Orsini & Associates was recognized as a finalist in the San Diego’s Best Readers Poll presented by the San Diego Union-Tribune. This acknowledgment reflected the strength of our client relationships and the quality of our service within the San Diego community.

About the San Diego’s Best Readers Poll

The San Diego’s Best Readers Poll is an annual recognition program hosted by the San Diego Union-Tribune. Readers across the county are invited to vote for their preferred local businesses across various industries, including professional services, dining, retail, healthcare, and more.

Finalists and winners are selected based on the number of votes received from the public. The results are published in a special edition of the Union-Tribune and remain a valuable indicator of trusted and respected businesses in the region.

Why This Recognition Matters

Being named a finalist in this poll is a meaningful endorsement from our community. It reflects our commitment to delivering dependable, personalized insurance services to individuals and businesses throughout San Diego and beyond. Recognition from clients and peers inspires us to maintain high standards in everything we do.

Ongoing Dedication to Service

Since 2018, we have continued to grow and evolve while remaining focused on what matters most—providing responsive, expert guidance and building long-term relationships. Our team is proud of this honor and looks forward to serving the community for many years.

What is a Flexible Spending Account (FSA)?

Mon, 18 Aug 2025 23:38:17 GMT

A Flexible Spending Account allows employees to set aside pre-tax money for certain healthcare expenses. Employees can put money directly into this account for out-of-pocket costs. Employees who incur a qualifying expense can submit proof and receive a reimbursement.

Employers can contribute to their employees’ FSAs but are not required.

What expenses are eligible for reimbursement?

Examples of eligible medical expenses:

Insurance copayments and deductibles
Qualified prescription medications
Some over-the-counter medications with a prescription
Insulin
Medical devices
Medical equipment such as bandages, crutches, or blood sugar test kits
Eye exams
Glasses or contact lenses

What is the “use it or lose it” rule?

Upon enrollment, employees select the amount they would like to contribute to the account each year. At the end of the year, employees forfeit unused funds. Ideally, the amount in the account will cover the employee’s medical expenses for the year without a surplus at the end.

Employees cannot modify the contribution amount during the year.

Employers may offer a grace period for employees to use funds or dictate a certain balance they can sometimes carry over. However, the employer must choose to opt into this provision.

What are the types of FSAs?

There are two types of FSAs, and employees may have either or both simultaneously. However, these accounts are kept separate.

Health Care Accounts

This type of account allows employees to receive reimbursement for medical costs up to the amount they choose to contribute for the year.

Section 213(d) of the Tax Code dictates covered items. It defines “medical care” as funds paid “for the diagnosis, cure, mitigation, treatment or prevention of disease, or to affect any structure or function of the body.”

Employees can contribute up to $3,200 to this account in 2024.

Dependent Care Accounts

Employees can use this second type of account to fund care for dependent children under 13. Participants can also use these funds to care for a dependent who is a disabled spouse, parent, or child if they are over the age of 12. Reimbursements to account holders are for incurred dependent care expenses only.

Dependent Care Account funds are similarly not eligible for use after the end of the policy year.

For 2024, most people can contribute up to $5,000 to this account.

Ready to provide your employees with their own FSA options? Contact our team HERE , and we can provide you with more information.

Source: Zywave “Flexible Spending Accounts (FSA)”

Fourth of July Safety Setbacks

Mon, 18 Aug 2025 23:37:20 GMT

How to Celebrate Safely

If childhood memories of 4th of July festivities include such harmless fun as swimming holes and homemade ice cream, feel free to revive those traditions this year. But if you intend to “have a blast” (literally) until dawn’s early light, you’d be wise to take a few things into consideration.

Burn in the U.S.A.

The “rocket’s red glare” is a patriotic concept, but not when it’s the red glare of police lights because of illegal rockets you’re setting off in the backyard. If your city regulations forbid personal fireworks – heed the law.

But if you live in an area that allows you to buy, sell and use fireworks, have fun – but be cautious. You don’t want to be responsible for starting a blaze. Keep a water bucket or garden hose nearby while igniting and watching them light the sky. Don’t place fireworks in your pockets and be sure to dispose of them properly. Soak the fireworks and their packaging in water before discarding them in the trash.

Freedom isn’t Accident-Free

If your neighborhood residents are allowed to set off personal fireworks which means you’ll be lighting up a Roman candle, a box of sparklers or a Piccolo Pete, be extremely careful. Remember that there’s a risk of burns, blindness and other possible injuries when you handle fireworks.

A couple of the worst offenders are bottle rockets and the seemingly tame sparklers. You can injure your fingers while twirling the long wands in the air because they burn at high temperatures. Plus, unfortunately, we tend to let kids handle sparklers when they’re too young to heed safety precautions.

There are several effective ways to minimize the possibility of a 4th of July emergency:

Point fireworks away from people, houses and vegetation.
Don’t try to relight a dud, which is a firework that doesn’t ignite the first time.
Never handle fireworks if you’ve been drinking alcohol.
Wear safety goggles.

Stars & Scrapes

Celebrating outdoors with friends can mean fun in the sun. But sometimes mishaps turn a great day into a disaster. Consider the following rules:

Hire or assign a lifeguard if swimming is a part of the party. Drownings often occur during group events, as no one assumes responsibility to keep a watchful eye.
Use insect repellant to prevent insect bites and cover your skin with sunblock to minimize burning.
Monitor grills at all times to keep little ones from burning fingers. Keep individuals at least 3 feet away from the barbecue.

In all likelihood, it will be an incredible nation’s birthday as always. But taking the time to go over details can make doubly sure it’s a safe holiday and leaves you with only memories of a good time.

After all, remembering the 4th of July should include signing the Declaration of Independence, not signing an incident report!

Attention! Business owners, Focus on your insurance RATE, not your insurance PREMIUM.

Mon, 18 Aug 2025 23:35:59 GMT

Here is a question for all of the business owners watching this video. What is more important when reviewing your business insurance costs?

1) The insurance PREMIUM, or

2) The insurance RATE

If you answered 2), the insurance RATE, you are correct (in our opinion, at least).

Watch our video and visit our blog to learn more about your business insurance and the difference between rate and premium.

https://foagency.com/focus-on-the-rate/

THE PREMIUM DOESN’T MATTER!

Well, we won’t take that too far.

We understand all business owners must keep their costs down and expenses in check.

But, a more informed business owner makes a more effective business owner.

And understanding your RATES and how they factor into your PREMIUM is essential for all business owners.

You will gain more insight into your insurance COSTS by focusing on the rates, such as your workers’ compensation rates and your general liability rates.

DON’T LET YOUR WORKERS’ COMPENSATION PREMIUM FOOL YOU

Most business owners focus on the policy premium and don’t understand the basis to generate the premium.

Workers’ compensation is a crystal clear formula.

The insurer assigns a rate to every $100 of payroll, and the insurance company generates the total premium based on the rate and total payrolls.

Let’s say you have two work comp proposals waiting for your review.

One of the policies is $6,000 per year, and the other is $5,000.

Upon initial review, you lean towards accepting the $5,000 policy, Because saving money is great.

You’re about to sign and receive a phone call from Fusco Orsini & Associates agent.

The agent advises you that although the $5,000 policy is less expensive, the policy lists $50,000 of payroll for the rating basis versus $100,000 of payroll on the more expensive policy.

Here is the breakdown:

$5,000 policy

$50,000 of payroll at a net rate of $10.00 per $100

$6,000 policy

$100,000 of payroll at a net rate of $6.00 per $100

So which is better for your business?

Is it advisable to spend 67% more on the policy RATE to save on the policy PREMIUM?

We don’t believe so, and you shouldn’t either.

You should also consider the repercussions of the final audit in our example above.

Once the carrier performs the final audit and finds your payroll was $100,000, the $5,000 policy now costs you $10,000, or 67% more than your other option!

THE SAME HOLDS FOR GENERAL LIABILITY

Like workers’ compensation premiums, general liability premiums generate from the rating basis.

Rating basis may include gross sales, gross payroll, sub-contractor costs, area, or other measures.

We believe it’s vital for business owners to know and understand their rating basis.

At the end of the day, the rating basis determines their actual costs and can help budgeting, planning, and making critical financial decisions.

MY INSURANCE ADVISOR ISN’T TRULY AN ADVISOR.

You visited the right place! At FOA, we believe that your insurance representative should behave as a business advisor and help you make sound financial and protection decisions. Please fill out the form below to connect with one of our agents today! Thanks again for visiting!

Five business insurance myths that are not true.

Mon, 18 Aug 2025 23:34:20 GMT

I work daily to assist businesses with their insurance and risk management needs. And each day, I take notice of the myths that exist and circulate in the business insurance industry. Clients and prospects seem confused about similar topics, which I’d like to clear up in today’s video.

I think it’s safe to say that we can all agree about the widespread nature of misinformation in the insurance world. Like most sectors within financial services, consumers are conditioned to understand only the basics of the marketplace, led mainly by mainstream marketing and advertising campaigns. At our agency, we strongly emphasize educating our clients because most of what you are led to believe doesn’t touch the surface of where your focus should lie.

That said, let’s count down the five business insurance myths that we work hard to debunk.

I SHOULD INSURE MY BUSINESS USE AUTO ON A PERSONAL POLICY

Number five on the list is a misconception we often hear: business owners believe they can safely insure their commercial autos on a personal auto policy. Owners may decide to do so to save money or simply because they don’t see the need for a business auto policy. But hard-working businesspeople don’t realize that this mistake could harm your business.

First, it’s not necessarily true that personal auto coverage is less expensive than business auto insurance. Then, when considering the expense to the business, business auto may save many companies compared to the cost of personal auto protection.

But, more importantly, business auto insurance provides levels of protection you cannot achieve through a personal auto policy. Here are some of those protections to keep in mind:

Automobile liability options that extend beyond symbol 7 or scheduled autos only. Usually, the business auto form allows policyholders broader form coverage, such as symbols 1 or 2.
Furthermore, two critical coverage items that all companies with automobile liability exposure must consider include symbol 8, Hired Auto Liability, and symbol 9, Non-Owned Auto Liability. These coverage symbols are attainable at reasonable costs and make all the difference in the event of an auto-related loss.
Most businesses that use autos to operate must provide additional named insured endorsements to their clients when acceding their property with their vehicle. A personal auto policy will not offer these critical endorsements and could cost the business a contract or relationship.

Check out my video on YouTube named 3 Reasons Your Business Must Have a Business Auto Insurance Policy for further details.

INSURANCE COMPANIES DENY CLAIMS MORE OFTEN THAN THEY PAY CLAIMS

Fourth on the list is the fallacy that insurance companies deny more claims than they pay. In my experience, a good insurance company looks for language in the policy that dictates they pay the claims versus the opposite. But it becomes even more important that, as a business owner and policyholder, you understand your protection and the language in the policy. The policy is a contract, and the agreement determines coverage application during a loss.

The percentage of claims that insurance companies pay on business insurance policies can vary widely depending on the type of policy, the specific circumstances of the claim, and the insurer’s policies and procedures. Generally, insurance companies aim to pay as many claims as possible, but they also must investigate claims thoroughly and ensure that they are valid before paying.

Here is some data to disprove this myth:

The percentage of workers’ compensation paid nationwide in 2019, the most recent year of data I can find from the NCCI, was 60%.
California is governed by the WCIRB (Workers’ Compensation Insurance Rating Bureau of California) and not the NCCI. According to the WCIRB, insurers paid 81% of workers’ compensation claims in 2020.
According to a report from the Insurance Information Institute, 79% of liability claims in the United States were paid by insurers.
The National Association of Insurance Commissioners (NAIC) published a report that states that insurance companies paid approximately 57% of all commercial property claims in 2019.
The NAIC’s data shows 61% of all business auto liability claims nationwide were paid in 2019.
And here is the most shocking of all. EPLI is included in the Insurance Information Institutes data on liability claims payouts, meaning the 79% pay rate in 2019 includes Employment Practices Liability Insurance.

I recently released a video on my YouTube channel regarding the rightened marketplace for EPLI, so I expect the number of claims paid within the EPLI product to decrease. But as you can see, according to the data, insurance companies do not deny more claims than they pay.

RED CARS COST MORE PREMIUM THAN OTHER COLORS

Next, let’s talk about how red cars cause premiums to increase more than other colors. I am kidding; let’s not discuss this myth.

ALL GENERAL LIABILITY POLICIES ARE THE SAME

Third, the top five countdowns of the most significant business insurance misconceptions revolve around the ever-important commercial general liability policy. Many business owners believe that the coverage provided by all CGL policies is the same. And I am not referring to the limits of insurance or the deductible; we all know those can differ. I am talking about the coverage provided, limited, or excluded by the policy forms and endorsements. I am talking about the ‘guts’ of the policy.

If you placed two CGL policies side by side, they would look very similar. But looks are deceiving, so I urge all policyholders to read their policies.

I recently wrote a blog and released a video — General Liability Explained in 10 Minutes — where I go into far more detail about the CGL policy than I will discuss in this video. Here are a few points to keep in mind when purchasing or reviewing the protections granted by your CGL policy:

Price should NOT impact your decision. Of course, price is essential, and the policy should fit within your budget. But, like price, you should weigh your options as it relates to the forms in the policy.
Pay close attention to the endorsements. CGL policies look similar from the Declarations page through the Definitions. But the endorsements that carriers add behind these sections make all the difference.
If you are a contractor, read the exclusions and endorsements. We have seen it all, from CGL programs for plumbers with water damage exclusions to exclusions for projects performed on homes or commercial buildings over specific square footage. It’s one thing if you know these exclusions exist and make an informed decision, but don’t assume all options are created equal.
Several CGL carriers adopt proprietary or manuscript policies and forms, meaning they are custom designed for a particular insured. Read and understand the extent of your protection.

I CAN SAVE MONEY ON MY INSURANCE BY UNDERCUTTING MY EXPOSURES

Second, on the top-five countdown of business insurance myths is the age-old legend that business owners can cut their insurance costs by underestimating their exposures. Think again!

The opposite is true! Why? Because insurance companies AUDIT their policyholders after each policy year. The audits are prevalent in workers’ compensation, general liability, commercial packages, business owners’ policies, and even business auto. In the rare case where the insurance company does not audit the exposures at the end of the term, you can almost guarantee that they will inspect your business at the policy’s inception. If adjustments are necessary, they will do so by premium-generating endorsements.

You may say that you will take your chances because if they do an audit, you will pay the same as you would have paid at the start of the term.

Think again!

Insurance companies provide a lower rating basis for businesses with higher exposures. This is especially true regarding workers’ compensation ‘net’ rates.

However, the rate applied at the start of the policy continues if an additional premium comes due because of a final audit. So don’t cost yourself more money by underestimating.

Nobody knows your business better than you do, so looking at historical trends and estimating your exposures to the best of your ability is essential. Such disclosures may include gross sales, gross payrolls, the number of employees, or the number of units sold.

Also, remember that material misrepresentation can result in policy cancellation, claims denials, or, even worse, insurance fraud. So be careful not to fall for this dangerous myth.

THE INSURANCE COMPANIES NEVER REFUND PREMIUMS

The number one misbelief we hear from business clients constantly is that insurance companies never refund premiums due to a policy cancellation, endorsement, or final audit. This cannot be further from the truth.

State regulation requires that insurance companies return unearned premiums, particularly for carriers filed with the state and licensed to transact.

I believe the confusion surrounds our industry because of ‘minimum premiums (MP)’ or ‘minimum and deposit premiums (M&D).’ Minimum premiums apply to most business insurance policies, and minimum and deposit premiums to most surplus lines policies, but not all. Here are definitions of both minimum premiums and minimum earned premiums:

The minimum premium is the least amount of premium to be charged for providing a particular insurance coverage.
Minimum and deposit premium is a premium that is fully earned by the insurer at the inception of the policy and is nonrefundable if the policy is canceled.

It is crucial for business owners to understand the impacts of both when purchasing a business insurance policy because they will have implications on refunds in the event of a policy cancelation, endorsement, or final audit.

Now, let’s talk about the final audit.

Premium refunds are available due to the final audit if the carrier is ‘admitted.’ As a reminder, an admitted company is one licensed or authorized to sell insurance to the general public. Return premiums resulting from a final audit are typical of workers’ compensation policies. However, the refund cannot exceed the minimum premium, and most workers’ compensation policies carry an MP.

Regarding other products or lines of coverage, the availability of refunds at the final audit may come down to the strategy and knowledge implemented by your broker. For example, as I referenced previously, most general liability policies set this M&D at 100% when considering the minimum and deposit premiums. However, it is possible to negotiate the M&D on higher premium policies at 90%. This means that 10% of the annual premium is refundable due to the final audit or downward endorsement. This is an example of why a strong relationship with your broker and hiring a broker that understands your business is essential.

WHAT CAN FUSCO ORSINI & ASSOCIATES DO FOR YOU

I hope you found value in my video about the five business insurance myths that are not true. Remember to like this video, comment below, and subscribe to my channel. I appreciate your support.

Our agency places a significant emphasis on educating our clients and prospects. I am confident that most of our clients understand that the five misconceptions I discuss in this video are just myths.

Call us if you’re looking for an agency partner that cares more about you than simply selling an insurance policy. Our number is 858-384-1506 and our email is hello@foagency.com. Talk soon!

Welcome to 4C Advising: Build Your Strongest Business

Mon, 18 Aug 2025 23:33:49 GMT

By Mike Fusco

You may have noticed some changes around here, so please allow us to introduce you to 4C Advising, your partner for risk management, compliance, HR, and employee care solutions. We created 4C Advising as a complementary brand to Fusco Orsini & Associates because we know we can do more for our clients. 4C encompasses what I needed and wished I had as a co-founder myself.

Three years into starting Fusco Orsini & Associates (FOA), I realized that we had to spend money to grow our business. What’s that age-old saying…it costs money to make money?

I noticed we were missing support in key business areas, including HR, employee care, and compliance. Our larger competitors had the means to hire support in these areas, but we didn’t have the funds to do so. 10 years later (we are now going into our 14th year), it STILL makes sense for FOA to outsource many of these services, especially in risk management and compliance.

I was frustrated and couldn’t yet hire a full C-suite or an expensive roster of consultants, so I looked at solutions that allowed us to scale the business without breaking the bank.

Talking to my clients daily, I know I am not alone with these challenges. Most businesses, especially small-to-medium businesses, face risk management, compliance, HR, and employee care issues.

Enter 4C Advising.

When we work with clients (and I can’t believe we’ve worked with more than 20,000 of them to date!), we don’t just address surface-level needs but instead look into the nitty gritty details. Why? Because we truly want our clients to succeed. There’s no reason not to want to support good people doing good work. But, over the past couple of years, I was starting to feel like our ability to help people was limited because our identity was limited to insurance.

4C was waiting…asking to be born. Its solutions go hand-in-hand with everything we do at FOA. And it is a new way for us to support our clients’ success—clients who are going through the same growing pains we’ve gone through.

If you’re feeling understaffed or under-resourced and aren’t able to pay for a full c-suite or roster of expensive consultants, you’re not alone. 75% of businesses are understaffed. The good news is we can help. And we want to help.

So, how does this all work?

After you share your most pressing needs via the below intake form, you will meet 1:1 with a 4C advisor who will build custom recommendations for your business. You can then select the services that will help you safeguard your assets today. We will check in regularly to ensure everything is running smoothly and keep business resources at your fingertips in your client portal.

We’ve witnessed how detrimental it can be to “table” these solutions in your business for later (again, I wish I had implemented some of these solutions sooner in my company). And we’re glad to have found a way to come alongside clients as their highly communicative right-hand advisors.

Let’s foresee your vulnerabilities, safeguard your assets, and ensure your growth together. I’m ready to go all in, are you?

-Mike

P.S. – Here’s our official press release announcement if you want to look.

Help Your Office Fight Fall Allergies

Mon, 18 Aug 2025 23:32:39 GMT

Fall allergies are upon us. Here are a few suggestions to keep your team from sniffling and sneezing this season:

Wear a mask while raking leaves or working with mulch or hay.
Use a dehumidifier in your home to avoid mold—and clean it regularly!
Wash bathroom tiles and shower curtains with mold-killing products.
Discuss your child’s allergies or asthma with his or her school nurse and teacher.
While cool fall temperatures are ideal for planting flowers and trees, try to plant things that produce little pollen, such as fir, pine, dogwood, azaleas, tulips, irises and pansies, to avoid irritating allergies.

What causes eye-itching irritants in the first place?

Late summer allergies and lingering warm weather.
Raking leaves or mowing the lawn, which can stir pollen and mold in the air.
Classroom irritants and allergy triggers like chalk, classroom pets and food items in the cafeteria.

Sources: Zywave, American College of Allergy, Asthma and Immunology

EMPOWER YOUR TEAM: Free Toolkit for Safety Stand-down to Prevent Falls in Construction

Mon, 18 Aug 2025 23:31:40 GMT

Fall prevention training is critical to maintaining the safety of your construction company.

Did you know that fatalities caused by falls from elevation continue to be the leading cause of death for construction employees?

Falls comprise about 16% of all workers’ compensation claims and account for about 25% of the total costs associated with workers’ compensation claims.

The good news is that your company does not have to be part of this statistic. As an employer, especially in the construction industry, you can cultivate a culture of safety for your employees.

While accidents happen and you cannot control every aspect of a construction site, you can significantly reduce the likelihood of accidents, especially falls. It starts with conducting a successful safety stand-down, which involves all employees, contractors, and subcontractors.

This May 5-9, 2025, is OSHA’s National Safety Stand-Down to Prevent Falls in Construction. This event is voluntary; anyone can participate (not just construction companies), and you don’t need to register to participate. It is a great time to revisit or implement new safety measures for your team, large or small. Plus, participating employers who give feedback about their Stand-Down may be able to download a Certificate of Participation (English and Spanish) following the event. Psst…if your business already received a Certificate of Participation in the past, it’s a good idea to participate again. In doing so, you are communicating a top-level commitment to safety to your employees.

Here’s more guidance about safety stand-downs, plus a free toolkit to get you started:

What is a safety stand-down?

A safety stand-down is a workplace event during which all team members voluntarily pause operations to discuss specific safety topics, such as fall prevention, hazard recognition, and protective measures. Employers can share OSHA standards and real-world applications during a stand-down to motivate team members to adopt safety standards and promptly inform the leadership of any hazards or issues. As OSHA notes, it can also be an opportunity for employees to talk to management about falls and other job hazards they see.

What is the purpose of a safety stand-down?

The purpose of a safety stand-down is simple: to reduce workplace injuries and fatalities.

How can employers start implementing a safety stand-down?

There are a few ways to approach a safety stand-down, from providing a 15-minute toolbox talk to a weeklong training.

In our National Safety Stand-down Toolkit (grab your free copy here!) , we provide:

A Construction Industry Fall Protection Safety Program
Safety Stand-down FAQs
Ways to Prepare for a Successful Stand-down
Information about the National Safety Stand-down
Toolbox talks to help prevent falls
Posters to help bring awareness to the stand-down and more

This free toolkit is a valuable resource that will help you further a culture of safety within your organization. In the meantime, please get in touch with us with any questions about risk management, workplace safety and wellness, workers’ compensation, and more. We are here for your business.

-Team FOA

Protect Your Business with Customized Equipment Lease Contracts

Mon, 18 Aug 2025 23:30:32 GMT

Leasing equipment plays a critical role in keeping your business running smoothly. Whether you work in construction, manufacturing, event planning, or another industry that relies on tools and machinery, a solid lease contract protects your operations and assets.

Creating that contract can feel overwhelming . Many businesses settle for generic templates or invest too much time drafting contracts that miss key legal details.

4C Advising makes it easy with the Done For You Equipment Lease Contract Service. This solution delivers customized contracts that fit your equipment, business, and risk profile.

Why Every Business Needs a Strong Equipment Lease Contract

A lease contract does more than outline who gets what. It sets expectations, defines responsibilities, and safeguards your business when challenges arise. Without a clear contract, you could face:

Disputes about damages or repairs
Confusion over payment terms
Liability for accidents or misuse
Compliance risks that vary by state or industry

Many equipment contracts fall short. They either lack essential protections or include confusing legal language that does not align with your operations. You deserve better.

More About Our Equipment Lease Contract Service

Our team works directly with you to understand your business, equipment, and specific needs. We then customize a lease contract tailored to your operations, covering critical areas like payment terms, liability, maintenance responsibilities, and legal compliance.

Once finalized, we deliver this customized contract template to you. You can reuse this contract for future leasing arrangements, giving you a reliable framework that protects your business whenever you lease equipment.

This approach ensures a repeatable, compliant, easy-to-implement contract that aligns with your unique situation.

Who Benefits From This Service

Any business that leases equipment benefits from a well-crafted contract, including:

Construction companies renting heavy machinery
Event production firms supplying lighting, staging, or audiovisual gear
Manufacturing businesses leasing specialized tools
Technology providers offering hardware rentals

If you lease equipment, you need a contract that protects your interests. This service makes it easy to get one.

Why Partner With 4C Advising

Risk management, compliance, HR, and employee care form the foundation of what we do. Backed by the experience of Fusco Orsini and Associates, 4C Advising delivers practical solutions that protect businesses and keep operations running smoothly.

The Done For You Equipment Lease Contract Service offers:

Fast turnaround and efficient service
Contracts that reduce risk and protect your assets
Flexible management options based on your needs

This service helps businesses stay protected while focusing on what they do best.

Frequently Asked Questions About Equipment Lease Contracts

What should an equipment lease contract include?

A strong lease contract includes clear terms for payment, usage, maintenance, liability, and return conditions. It also defines responsibilities for both the lessor and lessee.

How do I create a rental contract for equipment?

Start by outlining the key details: the equipment, the rental period, payment terms, and liability clauses. You can also simplify the process by using our Done For You Equipment Lease Contract Service , which ensures your contract is customized and compliant.

Is there a difference between a lease agreement and a lease contract?

Both terms often mean the same thing. However, some industries prefer “contracts” to emphasize legal enforceability. Our service uses both terms interchangeably but always focuses on creating a solid legal document.

Can I customize the lease contract for different types of equipment?

Yes, every contract we provide is customizable based on the type of equipment and your business needs. The ability to customize ensures your assets and operations are always protected.

Take the Next Step

Protect your equipment. Simplify your leasing process. Choose a solution that keeps your business secure and compliant.

Contact 4C Advising today to learn more about the Done For You Equipment Lease Contract Service. We will help you select the right option and get your contracts drafted quickly.

The Importance of Employment Practices Liability Insurance (EPLI) for CA Business Owners

Mon, 18 Aug 2025 23:27:22 GMT

Employment Practices Liability Insurance (EPLI) covers such issues as wrongful termination and sexual harassment.

If you own a company in the state of California, you may feel like staying abreast of the constant change in employment laws is like nailing Jell-O to the wall. It’s easy to get behind and because you haven’t made the necessary shifts in your insurance policies, find yourself without the protection you need.

The representatives at Fusco & Orsini Insurance Services in San Diego have found that the types of claims most business owners are unprepared for are those specific to their own workers. Many companies have little to NO coverage for issues brought by employees, such as wrongful termination, discrimination, sexual harassment and wage & hour. These issues are typically referred to as employment practice claims or lawsuits.

By including Employment Practices Liability Insurance (EPLI) in their portfolio of business insurance coverage, management has a larger umbrella of protection to address such claims, in the event they occur. The actions filed most frequently by employees that are covered under EPLI include: sexual harassment, retaliation, discrimination and wrongful termination.

Business insurance that includes EPLI may also cover such inappropriate workplace conduct as employment-related: defamation, invasion of privacy, failure to promote, deprivation of a career opportunity, and negligent evaluation. These policies typically cover directors and officers, management personnel, and employees as insureds. The types of claims that are commonly excluded are: bodily injury (BI), property damage (PD), and intentional/dishonest acts.

A business owner may choose EPLI as stand-alone coverage, but it is frequently sold as part of a package policy. While a company’s policies may include more common coverage types, such as general liability and commercial property, there are many business owners neglecting the potential substantial losses from employee-related suits.

EPLI can cover the costs incurred to defend a company from an employee lawsuit, including legal fees charged by a law firm. EPLI can cover independent contractors and volunteers, as well as full-time workers, and may also cover damages awarded to an employee. If a legal settlement is awarded, EPLI may cover the settlement payment.

The following questions can help determine if you have a need for EPLI:

Do you hire employees? Is your workforce growing?
Do you have a written policy and procedures manual? Is the manual updated periodically? Does the manual include human resources policies?
Do your hire independent contractors or work with volunteers?
Do your employees come into contact or communicate with your customers (i.e. third parties)?
Has your attorney discussed employment practices liability with you?
Have other firms in your industry experienced employment practices litigation?

If you determine that employment practices liability insurance may be a need for you, our professional staff can discuss your firm’s specific needs and generate an insurance quote for you. Request a free quote.

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See also Defamation; Discrimination; Directors and officers (D&O) liability insurance; Errors and omissions (E&O) insurance; Fiduciary liability; Management liability insurance; Personal injury (PI); Retaliation claims; Shrinking limits defense provision.” ( source: http://www.irmi.com/online/insurance-glossary/terms/e/employment-practices-liability-insurance-epli.aspx)

Navigating Employee Benefits and Staying Compliant During Employee Separations

Mon, 18 Aug 2025 23:26:10 GMT

Employee separation, whether voluntary or involuntary, involves many tasks that must be completed quickly. Some of these tasks include finalizing payroll, obtaining company property, transferring job responsibilities, and addressing employee benefits. Download our complete checklist HERE .

Do employee benefits end when workers leave?

Yes, regardless of the reason for the separation, employee benefits end when workers separate from employment. Here’s a closer look:

Health Insurance:

Health coverage typically ends on the day of termination or the last day of the month in which the employee works, depending on the plan. However, health coverage may be continued under COBRA or a similar state continuation coverage law, if applicable. In the U.S., if the employer has 20+ employees, the employees are usually eligible for COBRA, which allows them to continue their group health coverage at their own cost.

According to Zywave, unused balances in health flexible spending accounts (FSAs), dependent care FSAs and health reimbursement arrangements (HRAs) are typically forfeited, subject to a run-out period for submitting claims.

Group Life Insurance:

Group life insurance may be subject to conversion rights, meaning a departing employee has the legal right to convert their group life insurance coverage into an individual life insurance policy. You must notify employees about any conversion rights under group insurance policies.

Retirement Plans:

Employees can keep any vested portion of their retirement accounts, while unvested funds are usually forfeited upon separation, depending on the plan. Outgoing employees may be able to roll over funds into an IRA. Employers should consult with their retirement plan service provider to identify the available options and ensure the employee receives the required plan notices.

Paid Time Off (PTO):

Some states like California require employers to pay out unused PTO; others do not (see state list). It also depends on company policy. Sick leave is usually not paid out, but this varies by jurisdiction.

Who do you have to notify during an employee separation?

In addition to being in communication with your outgoing employee, it is your responsibility to notify your insurance carriers and third-party administrators when an employee separates from employment.

Tip : Throughout the process, keep copies of all correspondence sent to the departing employee regarding benefits termination, continuation coverage and conversion rights.

Book a call with our team for assistance establishing group health insurance and employee benefits.

Sourc es:

PTO Payout Laws by State in 2025 | Paycor

Continuation of Health Coverage (COBRA) | U.S. Dept. of Labor

COBRA Continuation Coverage | U.S. Dept. of Labor

How Do I Know if My Worker is an Employee or Independent Contractor?

Mon, 18 Aug 2025 23:23:56 GMT

A new law makes it easier for you to determine whether you have an employee or an independent contractor on your hands. It’s called the “ABC Test,” and it’s used in many states.

The way courts look at it; it’s the hirer’s burden to show that a worker is an independent contractor. You, the hirer, prove this by showing all three things below:

(A) show that the worker is free from your control and direction in connection with performing the work, both under the contract for the work performed and in fact.

(B) show that the worker performs work outside the usual course of your organization’s business/scope.

(C) show that the worker is engaged in an independently established trade, occupation, or business of the same nature as the work performed.

So now you know why it’s called the A-B-C test. But, what does this mean for you as a hiring entity? Here are the next steps you should take:

Please go through the ABC test with any new hire you’re planning to hire as an independent contractor to make sure you’re classifying them correctly.
Take an inventory of all your current independent contractors and perform the ABC test on them.
If any independent contractors don’t meet all three A-B-C criteria, reclassify them as employees, so you’re aligned with the new law (this helps you avoid future headaches).

Now, you may be asking “Do I need workers’ compensation?”

Workers’ compensation coverage covers lost wages and medical treatment resulting from an employee’s work-related injury or illness, including services that help an employee recover and return to work. If you are switching someone from independent contractor status to employee status, then yes, you will need to get the workers’ compensation coverage.

Have any questions about the new law? Fusco & Orsini team members can help you alter your course and make sure you’re compliant. Give us a call or texttoday at (858) 384-1506 .

Thank you for reading!

Employee or Independent Contractor Status When Enforcing the FLSA

Mon, 18 Aug 2025 23:23:02 GMT

Independent contractor status under the Fair Labor Standards Act (FLSA) is a confusing topic business owners often ask us about.

It’s one thing to agree with a worker that they are an independent contractor and even have an agreement stating this, but it’s another to carry out an independent contractor working relationship…herein lies the root of much of the confusion!

This blog post aims to help you:

See the differences between an independent contractor and an employee
Determine independent contractor or employer status when enforcing the Fair Labor Standards Act (FLSA)
Understand working status versus working relationship

Please note: This blog post is intended to raise awareness of independent contractor misclassifications. It is not legal advice. Laws and modifications could occur at any time, and you should always review the latest updates directly from the Department of Labor.

Okay, let’s get started!

What are the consequences of misclassifying an employee as an independent contractor?

The misclassification of employees as independent contractors can lead to major consequences, such as financial penalties for violating labor and workers’ compensation laws, not to mention the cost of back wages and back taxes including payroll taxes, plus penalties and interest. Also, misclassification can lead to damaged relationships, and further inequities often experienced by marginalized workers.

How do you know if someone is an employee or independent contractor?

The U.S. Department of Labor (DOL) breaks down the differences between employees and independent contractors on its website HERE. Here’s a summary:

An independent contractor is in business for themselves, whereas an employee works for someone else’s business.
To earn more money, an employee usually must work more hours, while an independent contractor can increase its profit through business decisions.
An independent contractor will typically supply its own tools and equipment, while an employee uses those provided by their employer.
An independent contractor may engage clients temporarily until a project concludes, while an employee will continue an indefinite relationship with their employer.
An independent contractor typically works with multiple clients, whereas an employee typically works for one company.
An employer determines when and how an employee’s work is done, while an independent contractor can decide when and how they will perform their work.
An employer assigns its employees work, while an independent contractor can select which projects it will take on.

But wait, there’s more to consider…

The list above may seem straightforward, but another layer to consider is the “economic reality” of the worker’s relationship with the employer. The DOL says, “The employer-employee relationship under the FLSA is tested by “economic reality” rather than “technical concepts.”

According to Fact Sheet #13: Employment Relationship Under the Fair Labor Standards Act (FLSA), among the factors which the U.S. Supreme Court has considered significant are:

1) The extent to which the services rendered are an integral part of the principal’s business.

2) The permanency of the relationship.

3) The amount of the alleged contractor’s investment in facilities and equipment.

4) The nature and degree of control by the principal.

5) The alleged contractor’s opportunities for profit and loss.

6) The amount of initiative, judgment, or foresight in open market competition

with others required for the success of the claimed independent contractor.

7) The degree of independent business organization and operation

Misclassification Mistakes

When evaluating the nature of a working relationship, here are a few common questions: Do they work from home? Do they work at multiple job sites? What if they have their own tools? Just because these circumstances exist does not necessarily mean a worker is an independent contractor. That’s why it’s important to answer every question on the lists above, when determining one’s working status. Seek your HR advisor or legal counsel if you need more help determining employee status.

What is the Fair Labor Standards Act (FLSA)?

The Fair Labor Standards Act (FLSA) “applies whenever there is an employment relationship between an employee and an employer.” Employers are responsible for determining if a worker is an employee under the Fair Labor Standards Act FLSA.

The FLSA “establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments,” says the DOL, which also states that “a worker is entitled to minimum wage and overtime pay protections under the FLSA when there is an employment relationship between the worker and an employer and there is coverage under the FLSA.”

Are all employees under FLSA?

According to the DOL, for a worker to be protected by the minimum wage and overtime pay requirements of the FLSA, the worker must be an “employee” of the employer.

Some employees are “non-covered” employees, while other “exempt employees” may be covered by the act, but exempted from certain provisions. See exemptions here. Seek your HR advisor or legal counsel if you need help determining exemptions.

Do independent contractors have the protections of the FLSA?

No, independent contractors do not have the protections of the FLSA because they are in business for themselves.

When does misclassification occur?

Misclassification occurs when an employer treats a worker who is an employee under the FLSA as an independent contractor.

What’s new?

On May 1, 2025, the DOL issued Field Assistance Bulletin (FAB) 2025-1 on how to determine employee or independent contractor status when enforcing the Fair Labor Standards Act (FLSA).

In the FAB, it states, “…WHD will no longer apply the 2024 Rule’s analysis when determining employee versus independent contractor status in FLSA investigations. WHD will enforce the FLSA in accordance with Fact Sheet #13 (July 2008)*, and as further informed by Opinion Letter FLSA 2019-6 with respect to any matters for which no payment has been made, directly to individuals or to DOL, for back wages and/ or civil money penalties as of May 1, 2025.”

Employers should continue to monitor the situation for updates.

P.S. – If you are navigating the complexities of maintaining or growing a team, please reach out to our HR Advisory team for support. Book your own 20-minute info call here.

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Sources:

Field Assistance Bulletin No. 2025-1 | U.S. Department of Labor Wage and Hour Division

Fact Sheet #13: Employment Relationship Under the Fair Labor Standards Act (FLSA) and summary | U.S. Department of Labor Wage and Hour Division

Wages and the Fair Labor Standards Act | U.S. Department of Labor Wage and Hour Division

Misclassification of Employees as Independent Contractors Under the Fair Labor Standards Act | U.S. Department of Labor.

DOL Issues Guidance on Independent Contractor Misclassification Enforcement | Zywave

An Interactive and Easy Guide to Employee Handbooks

Mon, 18 Aug 2025 23:22:20 GMT

Employee handbooks are powerful tools that communicate your business’s policies, best practices, benefits, team culture, and more. They clearly state your organization’s expectations and foster a positive and vibrant work environment. We strongly recommend that our clients have an employee handbook written and ready to deploy, as it can significantly enhance their business operations and employee relations.

Learn about our done-for-you employee handbook builder.

What are the benefits of employee handbooks?

The most significant benefit of employee handbooks is that they consolidate important information in one place, making it easy for leaders and team members to find answers to their questions. This can help you to mitigate misunderstandings down the road.

Moreover, employee handbooks serve as a crucial tool in protecting your business from potential claims, demonstrating the importance of this document in safeguarding your business interests.

Finally, the handbooks will facilitate fair and equal treatment of your employees and help new employees become familiar with how things work.

Does the law require employee handbooks?

Check with your state, as requirements vary. For example, according to the California Chamber, California does not require employees to have a handbook; however, they are encouraged to have one, and if you do create one, certain policies must be included.

According to Zywave, employee handbooks should account for federal, state, and local laws and regulations and the policies and procedures you have developed as a company.

You should also create multiple handbooks for exempt, non-exempt, unionized, or employees who speak another language.

What goes in the handbook?

In an outline provided by Zywave, sections you may wish to include in your employee handbook include:

Welcome
General Information
Antidiscrimination Policies
Compensation
Computers and Technology
Employee Benefits
Essential Provisions
Leave Policies
Safety and Security
Standards of Conduct
Work Schedules

How do I get started?

Before you know it, creating an in-depth employee handbook may feel daunting! And that’s the last thing we want you to feel. Therefore, we offer our clients and prospects a done-for-you employee handbook builder. This tool can save you money and time while ensuring compliance. Employees who understand company processes will likely be happier and more effective.

To start, complete the builder below. Once we receive it, we will invoice you. You will receive your finished employee handbook within 48 business hours of paying the invoice.

Employee Handbook Pricing Table

Employee Benefits Changes Under the One Big Beautiful Bill Act

Mon, 18 Aug 2025 23:21:40 GMT

Employee benefits are undergoing changes under the One Big Beautiful Bill Act (OBBBA), which was signed into law on July 4, 2025. Here are five significant updates to consider:

Expansion of Health Savings Accounts (HSAs)

The OBBBA expands the availability of health savings accounts (HSAs) for individuals who are eligible for an HSA.

The key components include:

The OBBBA treats DPC fees as a medical care expense that can be paid for using HSA funds.
The OBBBA categorizes as High-Deductible Health Plans (HDHPs) all bronze plans and catastrophic plans that are available through an Affordable Care Act (ACA) Exchange.

Let’s break it down.

DCP

Effective January 1, 2026, the OBBBA will allow individuals with direct primary care (DPC) arrangements to make HSA contributions if their monthly fees are $150 or less ($300 or less for family coverage).

What is a DPC arrangement?

According to the American Academy of Family Physicians, “The Direct Primary Care (DPC) model is a practice and payment model where patients/consumers pay their physician or practice directly in the form of periodic payments for a defined set of primary care services. “

Bronze plans and catastrophic plans

According to Zywave, the OBBBA categorizes as HDHPs all Bronze plans and Catastrophic plans that are available through an Affordable Care Act (ACA) Exchange.
This change takes effect on January 1, 2026.
Bronze plans have the highest deductibles and lowest premiums among the four categories of individual plans, while catastrophic plans have lower premiums than bronze plans and very high deductibles.
This shift means that it is easier for those who purchase coverage through an exchange to obtain an HSA eligible plan.

Extends telehealth exceptions under high deductible health plans (HDHPs)

Employer-sponsored health plans can include covered telehealth services before employees meet their deductibles without jeopardizing HSA eligibility.

Examples of telehealth services include video calls between a patient and a healthcare provider, audio-only calls when a video visit is not feasible, and secure text messaging to address patient questions.

Before the COVID-19 pandemic, telehealth services were subject to the plan deductible on HDHPs, and employees would have to pay the total cash cost for these services. Following the COVID-19 pandemic, telehealth was no longer excluded, and members were no longer required to meet the deductible. This exception has been extended under the OBBBA.

Increases the annual maximum limit for dependent flexible spending accounts (FSAs)

A Dependent Care FSA (DCFSA) is a pre-tax savings account that can be used to pay for eligible dependent care services for your child, disabled spouse, or elderly parent, such as preschool, before or after school programs, summer day camp, and child or adult daycare, so that you can work.

Starting in 2026, the maximum amount employees can contribute to DCFSAs will increase from $5,000 to $7,500 per year for single individuals and married couples filing jointly, and $2,500 to $3,750 for married individuals filing separately. Employees contribute to these accounts with pre-tax dollars.

Employers can continue helping to pay for employees’ student loans beyond 2025

The option to use educational assistance programs for student loans was set to expire on December 31, 2025, but the OBBBA extends this.

Employers can provide their employees with tax-free compensation up to $5,250 per year under a section 127 educational assistance program.

According to Zywave, “educational assistance programs can pay for employees’ books, equipment, supplies, tuition, and other fees. Also, these programs can pay principal and interest on employees’ student loans.”

Starting on July 4, 2026, employers can contribute up to $2,500 per year into a new tax-advantaged savings plan for kids, called “Trump Accounts.”

As of July 4, 2026, employers can contribute up to $2,500 tax-free (indexed) per year into the “Trump Accounts” of their employees’ dependents who are under the age of 18.

“Parents, relatives, other taxable entities and nonprofit and government entities may all contribute,” according to ADP. The total annual contribution limit is $5,000 per year (indexed), including employee contributions. Tax-deferred Trump Account funds can be accessed by dependents at age 18.

According to Whitehouse.gov, Trump Accounts for newborns will be seeded with a one-time government contribution of $1,000. This is for U.S. citizen children born between 2025 and 2028. According to the website, large companies like Dell, Goldman Sachs, and Uber have indicated interest in the initiative.

For help navigating these changes and managing employee benefits with ease, book a call with our Employee Benefits team HERE.

This blog post is not intended to provide advice, nor is it a substitute for advice from a qualified expert. The information may not be accurate or complete and should not be relied on as such.

Sources:

H.R.1, the One Big Beautiful Bill Act, Enacted July 4, 2025 | ADP

Trump Accounts Will Chart the Path to Prosperity for a Generation of American Kids | WhiteHouse.gov

Frequently Asked Questions about Educational Assistance Programs | IRS

Dependent Care | FSA Feds

Getting Started with Telehealth | Telehealth.hhs.gov

Direct Primary Care | American Academy of Family Physicians

Transform Your Culture with an Employee Assistance Program

Mon, 18 Aug 2025 23:20:48 GMT

When outside stresses plague employees, performing their work responsibilities to the best of their ability can be challenging. When their overall health suffers, their productivity also suffers. To combat these types of issues, an Employee Assistance Program (EAP) can help.

“I had the opportunity to utilize the Employee Assistance Program (EAP) offered at my workplace during a particularly challenging period, and it was an invaluable resource. When I felt overwhelmed by personal issues, which inevitably began to affect my professional performance, the EAP provided not just a lifeline but a supportive, confidential environment where I could address my concerns.

What stood out to me was the program’s holistic approach; it wasn’t just about addressing immediate crises but also about equipping me with strategies for better managing stress and work-life balance in the long term. Moreover, the flexibility and accessibility of the services offered—from in-person sessions to telehealth options—ensured that getting help was never an additional stressor.

I recommend an EAP to any firm looking to improve employee wellness and care. It’s a resource designed to support you, offering a path to confront and overcome the challenges you may be facing. In my experience, the decision to reach out was not just beneficial—it was transformative.”

– Anonymous EAP user

What is an EAP?

An EAP gives employees access to services that address personal challenges affecting their well-being. Employers sponsor this program, which provides confidential support that will not negatively impact the employee’s career or reputation.

What issues can an EAP address?

Employers may include or omit elements depending on what is most important to their team. EAPs have different structures, and these services can be education, counseling, referrals, hotlines, or evaluation.

Some of the issues that an EAP can address are:

Psychological problems
Substance abuse
Financial challenges
Stress management
Grief
Family challenges
Other matters affecting employee well-being or mental health

Why offer an EAP?

Distracted employees are absent more often and need help to focus at work. The goal of an EAP is to help address issues before they escalate and help employees be healthier, happier, and more productive.

How can this investment benefit employers?

Over time, an EAP can also save employers money. Employees in stressful personal situations may experience health challenges that can lead to higher medical costs over time. It can also be costly for employers to replace employees who decide to leave their positions due to personal challenges.

What are the liability considerations of an EAP?

Employers should secure liability insurance that covers all aspects of their EAP program. Insurance minimizes the risk of certain legal liability situations for actions taken by EAP counselors or outside vendors.

How can you communicate EAP benefits to employees?

A good EAP includes a policy statement summarizing the services employees can access. It should also outline how the program will not jeopardize their job and the parameters of the confidentiality agreement. Employers should also run an internal communication campaign, ensuring all employees know the program.

Are you interested in investing in an EAP for your organization? Contact our team HERE, and we can help you get started!

Source: Zywave Employee Assistance Programs (EAPs)

Don’t overpay for your $100,000 LLC/Employee Worker Bond in California!

Mon, 18 Aug 2025 23:19:57 GMT

Introduction to California’s $100,000 LLC/Employee Worker Bond

Hi, this is Mike with Fusco Orsini & Associates. We offer a lot of help with companies’ bonding programs. Now, in California, if you are a California contractor, you understand the need to post a $25,000 contractor bond with the CSLB to keep your license active and remain in good standing. But did you know that if you’re an LLC and have an entity filed with the CSLB, you must carry an additional $100,000 LLC employee worker bond?

Why do I need a $100,000 bond?

California contractors are used to buying and posting their $25,000 CSLB bond. It typically ranges from one to five years in length. The premiums are relatively inexpensive. It takes a simple credit check, and the bond company provides quick approval and manageable costs. But suppose you have an LLC or consider filing an LLC and contracting in the state of California. In that case, you must also post an additional $100,000 LLC employee worker bond with the CSLB. Now, the purpose of the bond is to protect the LLC’s employees or workers for unpaid wages, interest on wages, fringe benefits, or other contributions. And this bond requires additional underwriting. It’s not as simple as a credit check. The premiums are typically much higher than the $25,000 contractor license bond.

Here is how to save money!

Now, we get lots of prospects and referrals that call us who are paying relatively expensive premiums on these bonds, and we’ve been able to help them, in many cases, save up to 50% on their $100,000 LLC employee worker bond. So, if you’re considering filing for an LLC in California, or if you already are paying more premium than you think is reasonable for your $100,000 LLC worker bond, call us at the agency. Our phone number is 858-384-1506. You can also email me directly at mike@foagency.com. We have a unique offering with a bond company that writes a lot about LLC employee worker bonds and does so at a much better cost than I’ve seen. So give us a call or complete the form below. We’re happy to help.

DOL Updates Q&As on COVID-19 and the FMLA

Mon, 18 Aug 2025 23:19:11 GMT

The U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) has updated its “COVID-19 and the Family and Medical Leave Act Questions and Answers” web page, initially published in 2020. As before, the Q&As explain that—under the FMLA—covered employers must provide eligible employees with job-protected, unpaid leave for specified family and medical reasons. Additionally, employees on FMLA leave are entitled to the continuation of group health insurance coverage under the same terms that were in effect before they took leave.

The updates reorient the Q&As toward employees (rather than employers), add information about employee leave under the Families First Coronavirus Response Act (FFCRA), and remove a question about preventing employee abuse of Family and Medical Leave Act (FMLA) leave.

The Q&A revisions also:

Alert readers to state or federal leave requirements that might apply even when the FMLA does not;
Update language explaining how telemedicine visits can establish a serious health condition under the FMLA and
Affirm the employer’s ability to request a physician’s note to certify the need for FMLA.

In addition, the Q&As also expand the discussion of nondiscrimination laws employers must avoid violating during layoffs.

This Compliance Bulletin contains DOL’s Q&As.

Digging deep into the cost of work comp insurance for general contractors!

Mon, 18 Aug 2025 23:18:20 GMT

Work comp insurance is expensive, particularly for general contractors. At Fusco Orsini & Associates, we field questions daily about the cost of work comp insurance for general contractors. Although there is no straightforward answer to the exact price of a workers’ compensation policy, we wanted to give you some suggestions about how insurance companies price policies. Several factors determine the cost of a work comp policy for general contractors. Mike discusses them in his video and writes about each element below.

COMPANY HISTORY

If you are a general contractor, your company history will affect your worker’s compensation rates. Company history includes the number of years in business, workers’ compensation claims history, and your experience modification factor (EMOD). If you are unsure about your EMOD and its effect on your rates, please complete the form below. Our agency places a strong emphasis on helping clients with EMOD reductions and analysis.

CLASSIFICATION CODES

The trades performed by your in-house employees will determine the class codes listed on your policy. A four-digit class code is assigned to each trade, for example, carpentry, plumbing, electrical, and drywall. The general contractor pays the rate associated with each class code per $100 of employee payroll. California work comp differs from other states due to the dual wage classification system. For more information on dual wage classifications, ask one of our agents.

OPERATIONS

The operations of the general contractor will impact the workers’ compensation rates and costs. Examples of functions that may have an effect include the following.

1 – working at heights

2 – the use of scaffolding

3 – confined spaces

4 – work near high hazard areas, such as roadways

5 – the percentage of work subcontracted to others.

SAFETY CULTURE

The safety culture of the general contracting company is imperative to a cost-effective workers’ compensation program. Insurance underwriters and work comp program admins provide more competitive rates to companies with a strong safety program and make it a part of their operations. Examples include weekly safety meetings, job site inspections, ladder safety, protective safeguards, and return-to-work programs. If your current insurance agent is not consulting you and providing these resources, we recommend hiring a new agency. Complete the form below to speak with an FOA agent to discuss our risk management and loss control services.

IN CONCLUSION

We hope this article and video help you understand the factors used to price a workers’ compensation policy for general contractors. Of course, the market for work comp, like other forms of insurance, changes based on the availability of carriers and carrier loss performance. Fusco Orsini & Associates is a true partner in work comp programs. We assist with all functions of a work comp policy, INCLUDING filing a workers compensation claim and the work comp audit. Do not hesitate to call or email us to speak with one of our professional agents regarding your work comp and risk management program.

Cybersecurity: What is Spear Phishing?

Mon, 18 Aug 2025 23:17:32 GMT

Fishing remains a top U.S. pastime. Sadly, another kind of “phishing” has become popular, too.

Phishing is a type of cyber attack in which hackers disguise themselves as trusted sources online in order to acquire sensitive information. It is a common and simple scam that can put you, your employees and your business at risk. Worse yet, more resourceful criminals are resorting to a modified and more sophisticated technique called “spear phishing” in which they use personal information to pose as colleagues or other sources specific to individuals or businesses.

Have you ever received an email that almost convinced you to urgently help a friend or coworker in need? A spear phishing attack is often disguised as a message from a close friend or business partner and is more convincing than a normal phishing attempt; when messages contain personal information, they are much more difficult to identify as malicious.

The attacks are on the rise. In fact, in a report released by the Internet Crime Complaint Center, it’s stated that there were over 120,000 cyber crime-related complaints against businesses last year, resulting in over $800 million lost.

We don’t want this to be you!

Though it’s difficult to completely avoid the risk that spear phishing attacks pose, there are ways to prevent further damage to your business. Make sure your employees are aware of these simple techniques:

Never send financial or personal information electronically, even if you know the recipient well. It may be possible for a third party to intercept this information, especially if the recipient is later subject to a spear phishing attack.
Be cautious when you are asked to divulge personal information in an email. Even if it appears to be from a trusted source, it could be a hacker impersonating another person or group.
Only share personal information on secure websites or over the phone. When in a Web browser, you can ensure a website is secure when you see a lock icon in the URL bar, or when an “s” is present in the “https” of a URL. The “s” stands for “secure” at the end of the normal “http”.
Some spear-phishing schemes use telephone numbers, so be sure to never share information over the phone unless you initiate the call to a trusted number.
Encourage employees to think twice about what they post online. Spear phishing hackers often attain personal information through social media sites. Make sure that employees know how to keep this information private to protect their own security as well as that of your business.
Regularly check all online accounts and bank statements to ensure that no one has accessed them without authorization.
Never enter any personal or financial information into a pop-up window or a Web browser. Never click on links or open attachments from unknown sources. Even opening a file that seems familiar can give a spear phishing attacker access to personal information stored on your device.
Ensure that your company’s security software is up to date. Firewalls and anti-virus software can help protect against spear phishing attacks.

For a printable version of our spear phishing prevention tips, click here.

9 Common Cybersecurity Mistakes Remote Workers Make

Mon, 18 Aug 2025 23:16:31 GMT

Cybersecurity work from home policies are so important, especially with an increase in remote jobs. Cybercriminals don’t care what size your company is or what industry you operate in. If you are in business, you are a potential target, which could lead to substantial losses that are sometimes impossible to recover from.

In this blog, we cover nine common mistakes people make that can make their data more susceptible to an attack. These mistakes can happen on and off company property. With summer travel upon us and more employees working from varied locations, now is a great time to implement or revisit your cybersecurity best practices!

As an employer, you play a crucial role in ensuring the cybersecurity of your remote team. Here are nine common cybersecurity mistakes that you should help your team avoid:

Reused or Weak Passwords: you’ve probably heard this time and again, but stop using weak or reused passwords! The most common passwords have a combination of names/seasons and numbers/years, like “sarah2023” or “jan2025!”. If these combinations sound familiar, take it as a cue to update your old passwords. And diversify your passwords! You should not use the same passwords repeatedly because this can compromise multiple accounts in a single breach.

A handy password management tool can help improve your security by generating and storing complex passwords. A password manager can generate a combination of upper- and lowercase letters and special characters which can strengthen passwords.

Skipping Multifactor Authentication (MFA): This extra verification step can reduce the risk of unauthorized access. Usually, it comes as a text to your phone, a code sent to your email, a passkey, or a code sent to an authenticator app. Authenticator apps can make things easy, as they connect to several different accounts from one app. At a minimum, always enable MFA for company accounts, email, and cloud storage services.

Putting Off Software Updates: Another software update? Please don’t ignore it! According to Zywave, “…software updates often contain patches that address known vulnerabilities. When not installed, attackers can exploit outdated software or known security gaps to access or control devices, networks, or systems.” You can enable automatic updates across all company devices and applications to avoid this. As an employer, it’s important to watch for updates released by your software vendors, especially your security vendors. Please regularly communicate with your team to ensure they update all work devices and software.

Using Public Wi-Fi: Publicly available Wi-Fi networks are often unsecured, making them a potential entry point for cybercriminals. They can slip in without you ever realizing! To avoid this, direct your team to not access sensitive information on public Wi-Fi. Only password-protected, secured networks should be used. According to Zywave, users should also “…turn off automatic Wi-Fi connection and file-sharing settings to prevent unintended connections or data leaks, and “Employees should ensure they use virtual private networks, or VPNs, that encrypt data transmissions if they are connecting to public Wi-Fi and confirm their firewall is enabled to add protection against malware and other cyber threats.”

Using Personal Devices: Bouncing between personal and work emails on personal laptops or smartphones without proper security can reduce vigilance and increase vulnerability. Aways use company-approved and secured devices or ensure that personal devices meet security standards.

Not Logging Out: Stepping away from an unlocked device risks unauthorized access, especially in shared living or coworking spaces or while an employee is on vacation. It’s wise to enable auto-lock on devices and always log out when stepping away from your devices.

Unsecured File-Sharing: Ensure your team uses approved file-sharing tools with built-in security features and access controls. Sending or storing work documents on unauthorized platforms can lead to data leaks.

Less Oversight & More Isolation: A remote worker may be more prone to clicking a suspicious link for a few reasons. First, they may not have a coworker they can quickly ask, “Does this email look legitimate?” Second, they may be on screens all day, leading to digital fatigue and reduced attention to detail. Third, they may not have IT staff to connect with or anyone informing or overseeing their security practices. Finally, they may be prone to using digital tools like email and Slack to communicate with coworkers, where phishing attacks (like an email disguised as a message from the boss) can happen.

Not Talking About It: It is estimated that only 17% of small businesses have cyber insurance. And many businesses do not continually communicate expectations or best practices to their team. If employees are unaware of threats and how to handle data safely from the top-down, the entire team is at greater risk of a cyber incident, which can impact your business’s livelihood. In addition to having a cyber plan, it’s a good idea to have remote-specific security training and regular refreshers for your team.

What can you do next? The good news is that you’re likely reading this because you want to stay informed and implement best cyber practices for your team. That is the mark of a great leader! At Fusco Orsini Associates & 4C Advising, we can help you get the right cyber insurance policy and provide you with comprehensive risk management solutions. Get started HERE.

Cyberlearning with Mike Fusco

Mon, 18 Aug 2025 23:15:36 GMT

Fusco & Orsini’s Mike and Ray discuss cybercrime, who is susceptible, what the pain points and costs are, and ways to get ahead of the crime that’s threatening businesses of all sizes.

First, what is cybercrime? Cybercrime is criminal activity carried out across computers and/or the internet.

Does it matter if you’re a small- or medium-sized company? Yes, absolutely. Target, AT&T, and Yahoo have all been under attack, but don’t let the headlines mislead you. Your small or medium-sized business is at risk, too.

As Mike shares in the video above:

“Last year, I made a call to one of my clients and he told me how he got a cyber breach…everything he’s done…ransom,” said Mike Fusco, president of Fusco & Orsini Insurance Services. “Until he paid these people overseas in Bitcoin to release his data back to him, he couldn’t do anything. The havoc caused not only on his clients…but his company…he couldn’t do anything for three to four weeks.”

How does this happen? A large percentage (up to 90 percent) of cyber-attacks result from human error. What this means is, cybercriminals prey on humans, not machines.

An attack can start with something as simple as opening a targeted email, a form of ransomware.

What is ransomware? Ransomware is a type of malware that threatens to publish a victim’s data or perpetually block access to it unless a ransom is paid.

Ransomware is typically sent to people via email. People will accidentally click on the email, realize instantly they shouldn’t have, close out the window and hope it’ll go away. They usually won’t report opening the email, especially if it was done on a work computer. Things may seem fine, until six months later when all their files are corrupted. Not only can their data be compromised, but the company’s entire network can also be compromised.

Funds transfer fraud is another common form of a cyberattack. Oftentimes, it’ll come in the form of an email directed to the accounts payable department. Worse yet, it’ll come from an email you recognize, like a client or vendor email, making you or your team more likely to transfer the funds.

What happens after these attacks? It’s two-fold. Your company and your clients can be adversely affected. In fact, 60% of companies fold within six months of a cyber-attack.

Here are some of the pain points and costs involved:

You’ll likely have to hire a forensic expert, which can cost big bucks (sometimes $500 per hour) and it can take weeks to figure it out.
There are notification laws. You must notify all your clients, which costs about $5 per person. If their social security numbers were obtained, you must provide credit monitoring to each customer for up to two years, which costs about $7 per person.
You’ll probably have to hire an attorney who can step in, should anyone try to sue.
You’ll have to replace your hardware and machinery.
If you paid a ransom, you’ve lost that money.
Your business is interrupted, so you’ll experience revenue loss from day 1.
Finally, you’ll suffer from reputational harm.

How do you get ahead of these attacks?

Keep up with trends.
Let your team know what to look out for. For example, if you click on the actual name of the sender, an email address will be revealed that does not, in fact, match the name of the sender.
Put notifications on external emails that say “this is an external email, please double-check before opening.”
If you get an email from someone that looks suspicious, don’t reply to that email asking if it’s them. Call them or open a brand-new email asking that contact if they contacted you.
Have a great IT company on your side to help you stay up-to-date with trends and make sure your security is solid.

How can insurance help? We’ve vetted many carriers to find the best possible coverage, should your company suffer from a cyber-attack. This carrier also provides policyholders with five risk-management tools, which are valued at $5,000. As part of this toolkit, your company will undergo a vulnerability scan and receive analysis on ways to improve. They’ll also provide training programs to your team and more.

The policies are reasonable. We know because we’ve put them in place for our own business and are helping our clients do the same. If you’d like to learn more, please contact Mike directly at (858) 384-1507 or mike@foagency.com.

Cyber Security Safety Poster for Your Office

Mon, 18 Aug 2025 23:14:42 GMT

Do your part to keep your office safe from cyber-attacks! You can download this one-page flyer and post it in your office: 4 Steps to Cyber Security Infographic

When in doubt, don’t click!
Think twice before installing anything on company computers.
Never give out company or personal information to people you don’t know or don’t regularly work with.
Never be afraid to ask for help if your company’s security has been compromised. Speak up!

To learn more about keeping your office safe, check out our easy-to-navigate planning guide here!

Cyber Security Planning Guide

Mon, 18 Aug 2025 23:13:19 GMT

Does cybersecurity leave you scratching your head? You can grab a coffee, and we’ll walk you through it. We promise our easy-to-navigate guide will answer all of your questions.

First, it’s important to acknowledge that businesses of all sizes need to be proactive in protecting themselves against growing cyber threats. As larger companies take steps to secure their systems, smaller, less secure businesses are becoming increasingly attractive targets for cybercriminals.

In our Cyber Security Planning Guide, you’ll discover action items for protecting your company’s data, website, email, mobile phones, facility, and more. We’ve also included a glossary to help you understand commonly used terms like skimming, pharming, and phishing.

Please note that our planning guide is designed to help employers protect their business, information, and customers from cyber threats. This guide is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. It is generally recommended that businesses using sophisticated networks with dozens of computers consult a cybersecurity expert in addition to using this cybersecurity planning guide.

To receive a copy of your free Cyber Security Planning Guide, please complete the following form:

Strengthening Your Cyber Defenses Before It’s Too Late

Mon, 18 Aug 2025 23:11:58 GMT

In today’s digital age, small and medium-sized businesses (SMBs) face increasing risks from cyber threats. A recent blog by Fusco Orsini & Associates highlighted the significant impact of the CrowdStrike incident and underscored the importance of cyber insurance in mitigating such risks. Building on that discussion, this blog from 4C Advising delves deeper into practical risk management and loss control strategies that SMBs can implement to strengthen their cyber defenses and prevent breaches.

For a comprehensive understanding of how cyber insurance plays a crucial role in loss recovery, please read our detailed analysis of the CrowdStrike incident here. This complimentary guide will equip you with essential measures to protect your business from cyber threats proactively.

Risk Management and Loss Controls for Avoiding Cyber Breaches and Attacks

Effective risk management and loss controls are essential for businesses to protect themselves against cyber breaches and attacks. Here are several strategies and best practices that SMBs can implement to enhance their cybersecurity posture:

1. Conduct Regular Risk Assessments

Identify Vulnerabilities: Regularly assess your IT infrastructure to identify potential vulnerabilities. This includes reviewing software, hardware, and network configurations.
Prioritize Risks: Determine which vulnerabilities pose the greatest threat to your business and prioritize addressing them based on their potential impact.

2. Implement Strong Access Controls

Use Multi-Factor Authentication (MFA): Implement MFA to access critical systems and data. This adds an extra layer of security beyond just passwords.
Role-Based Access Control (RBAC): Restrict access to sensitive information based on employees’ roles and responsibilities. Ensure that employees have access only to the data they need to perform their jobs.

3. Regularly Update and Patch Systems

Keep Software Updated: Regularly update all software, including operating systems and applications, to protect against known vulnerabilities.
Automate Patching: Use automated tools to apply patches promptly and consistently across all systems.

4. Employee Training and Awareness

Cybersecurity Training: Provide regular cybersecurity training for employees to help them recognize and avoid phishing scams, social engineering attacks, and other common threats.
Simulated Phishing Exercises: Conduct simulated phishing exercises to test employees’ awareness and reinforce training.

5. Data Encryption

Encrypt Sensitive Data: Encryption protects sensitive data at rest and in transit. This ensures that even if data is intercepted, it cannot be read without the decryption key.
Use Secure Connections: Ensure that all data transmitted over the internet is encrypted using secure protocols like HTTPS and VPNs.

6. Develop and Test an Incident Response Plan

Create an Incident Response Plan: Develop a comprehensive incident response plan that outlines the steps to take in the event of a cyberattack or breach.
Regular Drills: Conduct regular drills and simulations to test the plan’s effectiveness and ensure all employees know their roles and responsibilities.

7. Implement Network Security Measures

Firewalls and Intrusion Detection Systems (IDS): Use firewalls and IDS to monitor network traffic and block unauthorized access.
Segment Networks: Divide your network into segments to limit the spread of malware and contain potential breaches.

8. Backup and Recovery

Regular Backups: Regularly back up critical data and ensure that backups are stored securely and are accessible in the event of an attack.
Test Recovery Procedures: Regularly test your backup and recovery procedures to ensure data can be restored quickly and accurately.

9. Engage with Cybersecurity Experts

Consult with Experts: Work with cybersecurity experts to conduct thorough assessments and implement advanced security measures.
Managed Security Services: Use managed security services to continuously monitor and protect your systems.

By implementing these risk management and loss control strategies, businesses can significantly reduce their vulnerability to cyberattacks and enhance their ability to recover from any incidents that do occur.

Call to Action

At 4C Advising, we understand the critical importance of robust cybersecurity measures for SMBs. To help you strengthen your cyber defenses, we offer a range of resources designed to enhance your risk management strategies and loss controls. Explore our comprehensive guides and tools, including:

Cyber Incident Response Plan: A step-by-step guide to preparing and responding effectively to cyber incidents.
Risk Assessment Checklist: Identify and prioritize vulnerabilities in your IT infrastructure.
Employee Cybersecurity Training Program: Equip your team with the knowledge to recognize and avoid common cyber threats.
Data Encryption Best Practices: Protect sensitive information at rest and in transit.

Take proactive steps to secure your business today. Contact us for a personalized consultation to ensure your SMB is prepared to face the ever-evolving landscape of cyber threats. Together, we can build a resilient and secure future for your business.

References:

NIST Cybersecurity Framework
Cybersecurity & Infrastructure Security Agency (CISA)
SANS Institute

I wrote this with some help from my friends at Open AI.

OpenAI. (2024). ChatGPT (4o) [Large language model].

Cyber Actors Exploiting Remote Desktop Protocol (RDP)

Mon, 18 Aug 2025 23:11:16 GMT

In a public service announcement, the Federal Bureau of Investigation (FBI) announced that remote administration tools, such as Remote Desktop Protocol (RDP), as an attack vector has been on the rise since mid-late 2016.

What does this mean for you?

Simply put, this means your identity, login credentials and other sensitive information can be compromised.

The FBI and Department of Homeland Security (DHS) recommend businesses and private citizens review and understand what remote accesses their networks allow and take steps to reduce the likelihood of compromise, which may include disabling RDP if it is not needed.

Cyber actors are exploiting Remote Desktop Protocol (RDP) vulnerabilities to gain unauthorized access. Learn how to secure your systems and protect your business from cyber threats.

What is Remote Desktop Protocol (RDP)?

RDP is a proprietary network protocol that allows an individual to control the resources and data of a computer over the Internet. Cyber actors can inject malware or ransomware into the remote systems – and they are difficult to detect.

What makes you susceptible to an attack?

Weak passwords – passwords using dictionary words or do not include a mixture of uppercase/lowercase letters, numbers, and special characters – are vulnerable to brute-force attacks and dictionary attacks.
Outdated versions of RDP may use flawed CredSSP, the encryption mechanism, thus enabling a potential man-in-the-middle attack.
Allowing unrestricted access to the default RDP port (TCP 3389).
Allowing unlimited login attempts to a user account.

How do you protect yourself?

Because RDP can remotely control a system entirely, usage should be closely regulated, monitored, and controlled. The FBI and DHS recommend implementing the following best practices to protect against RDP-based attacks:

Audit your network for systems using RDP for remote communication. Disable the service if unneeded or install available patches. Users may need to work with their technology vendors to confirm that patches will not affect system processes.
Verify all cloud-based virtual machine instances with a public IP do not have open RDP ports, specifically port 3389, unless there is a valid business reason to do so. Place any system with an open RDP port behind a firewall and require users to use a Virtual Private Network (VPN) to access it through the firewall.
Enable strong passwords and account lockout policies to defend against brute-force attacks.
Apply two-factor authentication, where possible.
Apply system and software updates regularly.
Maintain a good back-up strategy.
Enable logging and ensure logging mechanisms capture RDP logins. Keep logs for a minimum of 90 days and review them regularly to detect intrusion attempts.
When creating cloud-based virtual machines, adhere to the cloud provider’s best practices for remote access.
Ensure third parties that require RDP access are required to follow internal policies on remote access.
Minimize network exposure for all control system devices. Where possible, critical devices should not have RDP enabled.
Regulate and limit external to internal RDP connections. When external access to internal resources is required, use secure methods, such as VPNs, recognizing VPNs are only as secure as the connected devices.

For more information and to view the full public service announcement, click below:

CYBER ACTORS INCREASINGLY EXPLOIT THE REMOTE DESKTOP PROTOCOL TO CONDUCT MALICIOUS ACTIVITY

Our team is standing by to help you with your cyber security questions and needs. Call or Text: (858) 384-1506 or EMAIL: hello@foagency.com.

Creating a Cybersecurity Awareness Program

Mon, 18 Aug 2025 23:10:14 GMT

Imagine the CEO of your company emailing you to ask you to purchase $500 in gift cards. Something feels off…but it’s your CEO asking. Do you do it? Do you know who you can ask to make sure it’s legit?

Imagine your long-time associate at a top vendor emails you an invoice requesting payment via wire transfer for $100,000. You have received the same email, invoice, and instructions several times, and don’t think twice about remitting the funds. The problem is you didn’t look closely enough at the email address, nor did you call to verify the validity of the request. So, like you’ve done many times before, you wire the funds. The problem is, although the name on the email was recognizable, it was sent to you by a cyber criminal overseas. And you’ve now wired the funds to their bank account. The $100,000 cannot be retrieved, and you have lost the company’s money. Ouch!

These examples are scams that cybercriminals use to steal from businesses. Whether employees receive emails with fake links to Eras Tour tickets, text messages with misleading purposes, or phone calls from attackers impersonating trusted entities, cyber scams are a severe risk.

No matter the size of a business, it is susceptible to cyber-attacks. In an age where nearly all critical information is stored digitally, it is vital to take steps to protect it. Malware attacks, phishing scams, and ransomware schemes are prevalent and can create significant financial loss and reputational damage for businesses.

Contractors: What Should I Know About Bonds

Mon, 18 Aug 2025 23:09:19 GMT

Welcome to 4Contractors by 4C Advising → your place to build your strongest contractor business yet! The 4C series is simple. In each post, we answer one burning question contractors have so you can take care of business. Let’s jump in!

Q: WHAT SHOULD I KNOW ABOUT BONDS?

When discussing insurance for contractors, the term ” bond ” is often used. Beyond traditional types of insurance, a bond provides additional protection for clients who hire contractors for a job. Clients may ask you about this topic, so here’s what you need to know!

What does it mean for a business to be bonded?

When a business is bonded it means it has purchased a specific type of insurance called a surety bond. A surety bond is an agreement between three parties that provides a guarantee to fulfill a specific obligation or a certain performance.

The three parties involved in a surety bond are:

Principal: The party that needs to fulfill an obligation (often a contractor or a service provider).
Obligee: The party that requires the bond and is protected by it (often a client or a government agency).
Surety: The insurance company that issues the bond and guarantees compensation to the obligee if the principal fails to meet their obligations.

Why does a business need to be bonded?

Chances are your client (the obligee) will ask for it! Surety bonds protect the obligee if the principal fails to meet contractual obligations or perform designated tasks. The surety may cover costs up to the bond’s limit if the principal fails. Beyond that, it is up to the principal to cover the costs.

Bonds can be important in projects of all sizes, but are especially common in government or larger projects.

What are the most common types of bonds for contractors?

Bid Bond: This bond is commonly required in the bidding process for public construction projects. It assures the project owner that the winning bidder will enter into the contract and provide the required performance and payment bonds.
Performance Bond: This bond is often used in construction projects and guarantees that a contractor will complete a project according to the terms of the contract, including quality standards and deadlines for completion.
Payment Bond: This bond is used in conjunction with performance bonds and ensures that subcontractors and suppliers will be paid by the contractor for their work on a project.

Want to build a stronger business? Let’s bond.

Inquire Today:

INSURE ME

ADVISE ME

Take it from Elias…

“Mike came thru last minute he got me a bid bond the day of my bid. When the other company that I was working with tried for 2 weeks and couldn’t bond me. He’s the one I’ll be using for all my bonding thank you Mike you’re a rock star.” - Elias

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Fusco Orsini & Associates Insurance Services and 4C Advising work in tandem to provide small- and medium-sized businesses with professional guidance as well as vetted and competitively priced insurance, risk, compliance, HR, and wellness solutions.

Contractors: How can I easily verify my subcontractors?

Mon, 18 Aug 2025 23:08:12 GMT

Q: How do I verify my subcontractors?

Have you hired a subcontractor for your business? Do you plan on hiring one soon?

If so, it is extremely important to establish a formal relationship between your business and the subcontractor from the very beginning. Doing so lets you set expectations, define roles and responsibilities, and set terms and conditions. These steps can help you reduce risk and disputes moving forward.

Verification is just one of a number of steps that help you establish a solid subcontractor relationship. Here’s an overview of what to consider when setting up a subcontractor agreement:

Prequalify your subcontractor. Before you begin writing a contract, make sure your subcontractor has the qualifications to do the work you desire. Ensure they have the team to do the job and any necessary certifications, which you can request a copy of.
Ensure that your subcontractor is adequately insured and request certificates of insurance upon working together. The subcontractor’s insurance policy should also name the contractor (your company) as an additional insured with proper endorsements. Specifically, they should provide:
Certificates of insurance showing their business name as the named insured on an ACORD 25
The subcontractor’s insurance policy should also name the contractor (your company) as an additional insured with proper endorsements.
Insurance policies they might need to provide include: workers’ comp, general liability, auto liability, and umbrella coverage. (P.S. – We have a handy tool to help you track all of this.)
Define your scope of work. You’ll want to clearly define the scope of work, including services, roles and responsibilities, and deliverables. According to Zywave, you may also want to define “requirements for quality, including the requirement to allow independent quality inspections of materials and processes.”
Define terms and conditions. In addition to roles and responsibilities, you should clearly define deadlines, expectations, termination conditions, and payment information. Specify the payment terms, including how and when you will pay the subcontractor.
Set compliance standards. You’ll want to ensure that all parties are willing to comply with labor laws, safety standards, environmental regulations, and more.
Set dispute resolution expectations. These should be noted in your agreement, as it outlines how you will work through the dispute using mediation or arbitration.
Specify confidentiality standards. Confidentiality is essential to note when protecting sensitive information and intellectual property.

Would you be ready to simplify contractor verification? Please inquire about our tool, which takes the guesswork out of verification to ensure you and your subcontractors are covered.

Take it from JP…

“Michael and his team are very professional and extremely knowledgeable. They have our best interest as their customer, and they actively collaborate with us on securing the best value coverage to protect our business and our electronic data with the ever-changing Technologies and Market environments, so that we are focused on extending the best-in-class quality service to our clients. As a CEO and President of [my company], protecting the interests of our clients through effective quality value proposition, service, and efficiency, are precisely the type of attributes that we model and share with all of our clients, partners, and sub-contractors. Michael Fusco and team….Thank you.” – JP

Inquire Today

INSURE ME

ADVISE ME

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What’s in a Construction Employee Safety Manual?

Mon, 18 Aug 2025 23:05:17 GMT

Construction safety manuals should clearly outline key procedures and expectations to ensure a safe working environment for all. After reviewing your safety manual, employees should clearly understand that they must comply with safety rules, company policies, and any additional rules specific to the customer location.

If your safety manual is on point – excellent! If your manual is lagging or lacking and you’re ready to uplevel, this blog is for you.

Why have a construction safety manual in place?

Beyond ensuring that employees can have consistent guidance in maintaining a safe workplace, a construction safety manual can help meet OSHA’s training and documentation requirements, reduce your liability, improve compliance in the event of an inspection or injury, and possibly improve insurance underwriting outcomes.

Does your company have a safety manual in place?

While many larger construction companies (with 100+ employees) tend to have a solid safety manual in place, smaller construction businesses may be unaware of specific requirements for written safety programs. If you’re unsure if you’ve met all the safety manual requirements, regardless of the size of your business, keep reading.

Construction employee safety manuals house a lot of important information. Thankfully, insurance technology provider Zywave has published an excellent Construction Employee Safety Manual template . We’ve summarized the main points below.

Please note that this is a general outline and not an exhaustive list of everything that can or should be included in your company’s safety manual. Specific duties relating to particular hazards, equipment, or tasks require additional training and adherence to safety measures, and should be detailed in your manual.

What’s in a construction employee safety manual?

Here’s a list of topics you should consider including in your company’s construction employee safety manual.

A statement about your company’s commitment to safety
Employee safety responsibilities
General and off-site safety rules
Safety orientation training
Return-to-work program
Emergency action plan
Emergency contact information and job-site contact information
Sexual harassment policy
Workplace violence
Access to employee exposure and medical records
Vehicle use policy
Motor vehicle record (MVR) grading criteria
OSHA compliance programs
Hazard Communication
Bloodborne Pathogens
Personal Protective Equipment (PPE)
Lockout/Tagout
Confined Space
Respiratory Protection
Respirable Crystalline Silica
Walking-working Surfaces
Beryllium
Crane Operator Certification
Fire prevention and electrical safety
General safety precautions
Job-specific safety precautions
An employee acknowledgment form

Fusco, Orsini & Associates customers – reach out for a customizable safety manual template here: hello@foagency.com.

Executing a comprehensive safety manual, inclusive of the applicable topics outlined above, is your opportunity to engage your team in safety best practices while taking a proactive stance against injury and risk.

Are construction employee safety manuals required?

The Occupational Safety and Health Administration (OSHA) requires written safety programs for many construction-related hazards, such as those noted in the list above. A safety manual is a practical and compliant way to fulfill this. Reference Cal/OSHA Safety & Health Training and Instruction Requirements and OSHA’s Compliance Assistance Quickstart for more information.

Your construction employee safety guide should emphasize that safety is a continuous effort, and that training and adherence to the outlined safety procedures are mandatory to maintain a safe workplace for all employees.

When to seek help:

There are many reasons your construction employee safety manual may be lagging or lacking. It is normal to experience confusion around this topic, or perhaps you just haven’t had the resources (especially time) to solidify a manual. If this is you, please reach out to us – we’ve helped hundreds of construction companies navigate insurance and risk, and we can help you, too. Don’t rely on informal safety practices; nail down your safety manual and build your strongest business yet.

CONNECT WITH OUR TEAM

Sources:

Cal/OSHA Safety & Health Training and Instruction Requirements | State of California Department of Industrial Relations

Compliance Assistance Quickstart | Occupational Safety and Health Administration

Construction Employee Safety Manual | Zywave

AI Assistant | Zywave Labs

ATTENTION CONTRACTORS! READ your insurance requirements!

Mon, 18 Aug 2025 23:04:20 GMT

ATTENTION CONTRACTORS! READ your insurance requirements.

It will mean the difference between a profitable construction business and one that sinks into the red.

Fusco Orsini & Associates has 50+ years of combined experience working with contractors.

We KNOW insurance requirements because we read over them every day.

We notice trends when reviewing contracts for our clients, and the trends are not favorable to the contractor.

2022 has proven to be a year of harsher insurance requirements when performing projects, especially for larger, more sophisticated project owners.

Do not sign a contract until you understand the contractual insurance requirements AND the costs associated with meeting them.

Here are some trends to watch for in 2022 and moving forward.

UMBRELLA POLICIES

Secure an umbrella policy if you plan to perform jobs for larger GCs, project managers, or clients. And keep it in place. Make an umbrella part of your insurance portfolio.

Understand the cost of an umbrella policy and factor it into your overhead.

It will allow you to job cost and bid profitably.

UMBRELLA LIMITS

It seems the days of 1MM, 2MM, and even 3MM umbrella limits are gone.

More and more, we see requests for 5MM-10MM limits of insurance, which, in 2022’s hardened market, is costly.

But not as costly if you plan for the premium before signing on the dotted line.

Pay close attention to the required limits and which underlying policies the umbrella must exceed.

ENDORSEMENTS ON THE UMBRELLA POLICY

I won’t dive too deep into the technicalities of these endorsements.

Still, you may run into issues if your client requires primary wording, noncontributory wording, or waiver of subrogation endorsements ON the umbrella policy.

Do not rely on your client accepting ‘follow-form’ language from the excess carrier and the issuance of these endorsements on your underlying general liability.

Reading and understanding your requirements is crucial.

CYBER AND POLLUTION LIABILITY

You may find pollution liability more commonly requested in construction contracts.

But don’t sleep on cyber.

Although pollution liability seems like a more valuable product to indemnify construction contracts, cyber liability is a smoking gun that keeps people awake at night.

And your clients may very well be those people.

I’m not saying you’re surely going to come across the requirement for pollution or cyber liability.

But, if it’s in your contract, you need to know.

You may have luck securing a waiver. If not, the costs of these policies will chew into your profits.

Know ahead of time.

HOW DO I HIRE A KNOWLEDGEABLE AGENT TO HELP ME?

Easy!

Call FOA at (858) 384-1506 , and ask to speak to an agent.

Or, complete the form at the bottom of our BLOG, and an agent will reach out.

Thanks again for visiting!

Compliance Documents for Employee Benefits Programs

Mon, 18 Aug 2025 23:03:27 GMT

Employers must follow many steps regarding employee benefits to comply with federal laws and regulations. Two federal regulations are: Employee Retirement Income Security Act (ERISA) and Affordable Care Act (ACA).

ERISA applies to employee welfare benefit programs for employers of all sizes. It includes group health plans but excludes church and government plans.

The ACA was enacted in 2010 to make health insurance more accessible and affordable. For employers, there are several ACA requirements to be aware of.

Please keep reading for our glossary of ERISA and ACA-related terms and how they apply to your business.

ERISA

This term stands for the Employee Retirement Income Security Act and applies to employee welfare benefit plans. ERISA includes group health plans unless specifically exempted.

Summary Plan Description (SPD)

An SPD is a required disclosure the plan administrator must provide within 90 days of the participant beginning coverage. This document details the plan’s benefits and should help the participant understand them. It also outlines how an employee can participate in the plan and how they may file a claim to secure benefits.

Wrap Documents: Typically, the benefit booklet from an insurance carrier needs to satisfy SPD requirements on its own. Administrators may use a wrap document in cooperation with the benefits booklet to fill in other ERISA-required information.

Summary of Material Modifications (SMM)

This document informs participants about changes to their employee benefit plan. An SMM must be distributed at different times depending on the shift.

If the plan is changed without a reduction, the plan administrator has 210 days after the plan year-end in which the change takes place to provide this document.
If the change reduces benefits, the SMM must be issued within 60 days from adoption.
If an employee requests an SMM, the plan administrator must provide it within 30 days.

Form 5500

This form shows the IRS and DOL that employee benefit plans follow ERISA requirements. It must be filed by the last day of the seventh month following the plan year’s end (for calendar-year plans, this date would be July 31 of the following year).

Summary Annual Report (SAR)

The plan administrator must provide this document to participants within nine months of the plan year’s end. It is a narrative summary of Form 5500 and informs participants that they may receive a copy of their plan’s annual report.

Plan Documents

The plan administrator must provide participants with documents and information about their plan within 30 days of a written request.

ACA

This term stands for the Affordable Care Act, enacted to help reform the health insurance market.

Statement of Grandfathered Status

Grandfathered plans are exempt from some ACA mandates. The plan administrator must periodically issue this statement for plans with grandfathered status only. They must provide the participant with materials describing plan benefits, such as the summary plan description (SPD) and open enrollment materials.

Notice of Rescission

If the plan provider is going to discontinue an employee’s benefits, the plan administrator must provide a Notice of Rescission 30 days before it occurs.

Notice of Patient Protections and Selection of Providers

When a participant receives the SPD or a similar description of benefits, they must also receive this notice. This notice informs the participant of their rights under the plan, for example, their right to choose a primary care physician, emergency service benefits, and more. Previously, this requirement did not apply to grandfathered plans. But, for plan years beginning on or after Jan. 1, 2022, the Consolidated Appropriations Act removed the grandfathered plan exception to expand patient protections and benefits for emergency services to prevent surprise medical bills.

Uniform Summary of Benefits and Coverage (SBC)

The SBC must be provided by the plan administrator at specific times, such as upon coverage application and renewal. Plan administrators and issuers must also give a notice 60 days before changes to the summary that occur mid-plan year.

Exchange Notice

Employers must provide all new hires with a written notice about the ACA’s health insurance Exchanges.

This information helps demystify how ERISA and the ACA apply to your business.

How We Can Help You

Our team can help you handle essential filings and disclosures. Click HERE to connect with us or fill out the form below!

Common Workplace Wellness Myths Debunked

Mon, 18 Aug 2025 23:02:48 GMT

Did you know that 87% of employees consider health and wellness packages when selecting their employer? With the growth of hybrid work and the challenge of retaining talented employees, it is more important than ever for employers to develop and offer workplace wellness programs that improve the working environment. It is also important to note that in a digital landscape, where reviews are easily accessible and recommendations are a large part of the job search, 89% of workers at companies that support well-being initiatives are more likely to recommend their company as a good place to work.

Given the need for these health and wellness solutions for companies of all sizes, here are a few of the most common myths we hear about workplace wellness.

Employee health is just about physical health. This belief overlooks the importance of mental health, social connection, a healthy relationship with work and mental wellbeing. Solutions that focus on all aspects of employee health will likely yield better results and more satisfied employees.

Workplace wellness solutions are one-size-fits-all. For solutions to be effective, they should be tailored to the needs of your team and their specific demographics. You should consider the preferences of your employees when creating programs and ask them about the services that resonate most with them. Listening and responding to their needs will help you create programs that they actually use regularly and participate enthusiastically in.

Wellness solutions are definitely out of my company budget. Luckily, they don’t have to be! While some are more expensive than others, many affordable programs still have a positive impact on employee wellbeing. Simpler solutions, such as wellness challenges, flexible working arrangements and prioritizing the resources employees really want can have a positive impact on their wellbeing.

Employees will always actively participate. Just because you do it, doesn’t mean everyone will automatically participate! It’s important to strategize, offer incentives and clearly communicate the benefits and how they can participate. Ensure your program contributes to a company culture that values employee wellbeing, rather than offering something just to have it.

Starting a wellness program will improve productivity immediately. Though wellness programs often contribute to improved activity, they don’t always lead to results immediately. There are a large variety of factors that influence workplace productivity, such as management, environment, job satisfaction and training. Wellness solutions are just one factor that contribute to the company’s overall success. Sometimes it takes a bit of trial and error to land on solutions that employees are satisfied with.

HR is solely responsible for workplace wellness. Workplace wellness should be an initiative that is a top priority for not only HR, but also all leadership, management and employees. Support from all levels within the organization will lead to better results for everyone.

Large companies are the only ones who need wellness programs. ANY size company can benefit from wellness initiatives that support employee’s long-term health and job satisfaction. Whether you have two employees or 2,000, it positively impacts their job experience to know that their company cares about their wellbeing.

Company wellness is a quick fix rather than a long-term solution. To see positive results from your wellness programs and overall organizational outcomes, you will need to stick with your efforts for a while! Changing workplace wellness and developing a culture where employees feel supported can start today but it needs time to grow. Be patient and commit to creating a stronger culture over time.

If you need support while improving workplace wellness at your company we are here to help!

We want to help you provide your team with the support they need to thrive both inside and outside the office. We have a robust selection of customized wellness program options for you. Our employee care solutions include:

Self-Funded Plan Analysis: The ability to offer your CFO insights on the performance of existing self-funded programs or comparing self-funded plans versus a fully insured model is necessary for proper strategic planning.
Employee Assistance Program (EAP): We believe your employees’ mental health is essential, so we offer an Employee Assistance Plan to help pave the way for a brighter tomorrow.
Flexible Spending Account: Flexible Spending Accounts (FSA) are great perks employees can use to save on expenses pre-tax.
Minimum Essential Coverage Plans: MEC plans meet specific requirements outlined under the Affordable Care Act (ACA) and ERISA but at a fraction of the cost of a traditional health insurance plan.
Worksite Plans: Also known as supplemental insurance, these plans are a cost-effective solution to help employees offset out-of-pocket medical expenses.
401(K): We have developed a Pooled Employer Plan (PEP) and Multiple Employer Plan (MEP) to assist employers with recordkeeping, administration, and cost-savings strategies related to their retirement plan offerings.

Get started today with a custom proposal!

Reference list: OpenAI. (2023, August). [What are some of the top myths about workplace wellness]. Retrieved from [ChatGPT.com].

Employer Alert: Common Health Plan Mistakes That Could Cost You

Mon, 18 Aug 2025 23:01:45 GMT

Navigating the complexities of employer-sponsored health plans is a critical responsibility for any business owner. However, even well-intentioned employers can inadvertently make compliance errors, leading to significant financial penalties and legal challenges. From neglecting to provide essential documentation to overlooking mandatory testing and filings, these common mistakes can jeopardize your company’s finances and reputation. In this article, we’ll explore some of the most frequent health plan compliance pitfalls and offer guidance on avoiding them, ensuring your business remains compliant, and your employees are well informed.

Common Email Phishing Scams to Warn Your Employees About

Mon, 18 Aug 2025 23:01:01 GMT

Phishing scams continue to be a widespread and growing threat in the digital world. It’s more important than ever to educate your employees about common email phishing scams to help protect your organization from potential security breaches and data loss.

Here are some common email phishing scams to be aware of:

Generic Phishing Emails: These unsolicited emails attempt to trick recipients into revealing personal information, such as login credentials, by impersonating a trusted entity like a bank, government agency, or popular online service.

Spear Phishing: Attackers target specific individuals or organizations, often using personalized information to make the email appear legitimate. This can involve researching the target’s interests, job roles, or relationships to craft convincing messages.

Invoice and Payment Scams: Attackers send fake invoices or payment requests, often with altered bank details, to trick employees into transferring money to fraudulent accounts.

Malware-Laden Emails: Phishing emails may contain attachments or links that, when opened, download malware onto the recipient’s device. Employees should always avoid opening attachments or clicking on links from unknown or questionable sources.

Pharming: Attackers manipulate DNS records to redirect users to fraudulent websites that appear legitimate. Employees should be cautious about clicking on links in emails and verify website URLs using a tool like Google Transparency Report.

Smishing: Smishing uses text messages to trick recipients into clicking malicious links or revealing sensitive information. Employees should be cautious of unsolicited text messages.

Vishing: Vishing involves phone calls where attackers impersonate trusted entities and attempt to extract sensitive information over the phone.

CEO Fraud/Business Email Compromise (BEC): Attackers impersonate high-ranking executives within an organization to request financial transactions or confidential information from employees. These emails often appear urgent and convincing.

COVID-19 Scams: Scammers have exploited the COVID-19 pandemic to send phishing emails related to vaccines, health advice, relief funds, and more.

Job Offer Scams: Phishers may impersonate reputable companies and offer fake job opportunities via email. These scams can lead to identity theft or financial loss.

Taylor Swift Scams: Yes, really. As shared by WRTV, it looks as if someone you know, or just someone in your city, makes a Facebook post selling their Taylor Swift tickets. When you message the seller, they offer you a good deal and ask you to pay using Zelle, Venmo or a similar method. They promise that they’ll give you a full refund if anything happens. However, you never hear back from the seller after you send the money. (So far in 2023, BBB Scam Tracker has gotten about 30 reports involving fake Taylor Swift tickets, so we thought you should know.)

To help your employees recognize and avoid these phishing scams, consider implementing the following security practices:

Regular Training: Share this post! And, conduct regular cybersecurity training sessions to educate employees about the latest phishing threats and best practices for identifying them.

Email Filtering: Use advanced email filtering solutions to detect and block phishing emails before they reach employees’ inboxes.

Two-Factor Authentication: Encourage the use of two-factor authentication for all corporate accounts to provide an additional layer of security.

Verification: Encourage employees to independently verify the authenticity of requests for sensitive information or financial transactions, especially if the request appears unusual or urgent.

Security Updates: Ensure that employees keep their software, operating systems, and antivirus tools up to date to protect against malware.

Reporting Mechanisms: Establish clear procedures for employees to report suspicious emails or incidents promptly.

By raising awareness and implementing these security measures, you can help protect your organization.

To further protect your company, we strongly suggest that you consider cyber liability insurance which is intended to help the insured recoup losses related to both first- and third-party risks associated with supplying and collecting information on the Internet. Click to learn more about what cyber liability insurance can cover and how it can be customized for your organization, or schedule time with our cyber team.

Reference list: OpenAI. (2023, September). [Common Email Phishing Scams to Warn Your Employees About]. Retrieved from [ChatGPT.com].

Everything You Need to Know About COBRA Administration

Mon, 18 Aug 2025 22:59:06 GMT

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. This federal law allows individuals to extend employer-sponsored healthcare coverage for specific events temporarily. For example, employees who leave their position may pay their insurance premiums themselves to continue coverage even after their job ends.

The COBRA process can be complicated despite this being a common business requirement.

Why do some employers choose to outsource COBRA administration?

The law is complex, with severe consequences for missed deadlines, mistakes, or violations.

It can also be expensive. The Internal Revenue Service (IRS) and the Department of Labor (DOL) both oversee the process and can both levy fines. Fines can reach $110 daily for failing to issue notices or missing deadlines. In some cases, individuals also have the power to sue employers for COBRA mistakes.

COBRA administration is also time-consuming. The hours of training required to do it correctly and the time needed to carry it out can be overwhelming.

Who does COBRA apply to?

It typically applies to employers with 20 or more employees. However, if the number of employees fluctuates throughout the year or an employer has many part-time employees, this number can be more challenging to define.

If your company is subject to COBRA, what is required?

You must correctly administer notices, payment deadlines, late payments, partial payments, coverage period updates, changes to plan options, address changes, coverage terminations, and more.

What should I look for when choosing a Third Party Administrator (TPA)?

Compliance Expertise: Your TPA should have extensive knowledge of the federal guidelines and regulations for the COBRA administration process.
Use of Technology: Your TPA should use a secure and efficient system that helps them handle on-time electronic delivery of required notices and letters.
Customer Service: Choose an organization recommended for its customer service abilities. You want to ensure employees find this process as easy and comfortable as possible.
Legal Accountability: Although a TPA will never be able to take on all legal risks of COBRA administration, the contract should stipulate that the TPA is financially responsible if it makes a mistake.
Payment Schedule: For most TPAs, you can pay a fee for each qualifying event or a monthly fee per eligible employee. Based on your company’s turnover rate, you should ensure they offer your preferred option.

For most businesses, a TPA administrator is an excellent investment. In the long term, it can save your company hours and provide you peace of mind, knowing that each detail is taken care of.

At FOA, we have a proven track record of reliable and accurate compliance service across various industries. We can connect you with COBRA administration services that will make things easy, save you time, and allow you to feel confident knowing all the details are taken care of.

Click HERE to request more information!

Source: Zywave (COBRA Administration Outsourcing)

Changes to CA Workers’ Compensation Coverage Exclusions July 2018

Mon, 18 Aug 2025 22:58:23 GMT

Attention Fusco & Orsini business clients!

This is to inform you that there is an important change happening which requires your immediate attention. SB 189 is a new legislation that changed the Labor Code Section 3351. It revises the changes made in 2017 (AB 2883) on Workers Compensation policies.

These changes apply to new and renewal CA policy with effective dates of July 1, 2018 or later.

There will be a new SB 189 Waiver/Exclusion Form that will be implemented, that will replace the AB 2883 Form. The carriers will be mailing or emailing a copy of the new forms directly to you to sign. If you don’t receive it, please contact our agency ASAP.
SB 189 allows exclusion of the owners listed below with signed waivers:
Corporate Officers and Members of Board of Directors who own at least 10% of the issued and outstanding stock; and are covered by a health insurance policy or health care service plan.
Corporate Officers and Members of Board of Directors who own at least 1% of the issued and outstanding stock of the corporation if his or her parent, grandparent, sibling, spouse or child owns at least 10% of the issued and outstanding stock; and is covered by a health insurance policy or health care service plan.
An owner of a professional corporation, who is a practitioner rendering professional services for which the professional corporation is organized (i.e. Medical Group, Law Firm, etc.); and stating that he or she is covered by a health care service plan or a health insurance policy.
An officer or member of the board of directors of a cooperative corporation organized pursuant to the Cooperative Corporation Law; and stating that he or she is covered by a health care service plan or health insurance policy, and a disability insurance policy that is comparable in scope and coverage to a workers’ compensation policy. The Insurance Commissioner shall determine whether a disability policy is comparable in scope and coverage to a workers’ compensation policy.
A person holding the power to revoke a trust with respect to shares of a private corporation held in trust, or general partnership or limited liability company interests held in trust.
A general partner of a partnership or managing member of an LLC must execute a waiver to opt out of coverage.
For those eligible, a signed Waiver/Exclusion Form must be submitted to the carrier for each officer. Please be sure to sign and send the SB 189 Waiver Form. Follow the instructions stated on the waiver/exclusion form. Any prior AB 2883 waiver/exclusion form becomes void by law.
Carriers will backdate the signed waivers, up to a maximum of 15 days from the date of the receipt and acceptance.
As a qualified officer, director, managing member or general partner, you must personally file a waiver of coverage to be excluded. If you don’t do so, you will be included in coverage and premium calculations.

Important: If the carrier provides an email address for you to send the signed waiver forms, we strongly advise you to send it through the email they provided. This is an effective way to document, if the carrier claims that he or she did not receive your signed waiver form.

Please be prepared to provide proof of health coverage, as the carrier may request a copy.

If you have any questions, do not hesitate to contact our office at (858) 384-1506 . Please make sure to review your renewal with your agents as well.

Thank you.

FAQ: Can you list all my insurance policies on one Certificate of Liability ACORD 25 form?

Mon, 18 Aug 2025 22:57:51 GMT

Can you list all my insurance policies on one Certificate of Liability ACORD 25 form?

After posting my recent video titled “Learn How to Read an ACORD 25 (Certificate of Liability Insurance), many viewers reached out with great questions. Thank you to everyone that watched and commented.

The most common question is one that we often hear in our day-to-day agency operations:

Can you list all my insurance policies on one Certificate of Liability ACORD 25 form?

The short answer is ‘yes.’

But under certain conditions.

Read along and watch my video to learn more.

I AM SICK OF CALLING 3 COMPANIES EVERY TIME I NEED A CERTIFICATE!

I don’t blame you.

If you placed your workers’ compensation, general liability, and business auto insurance policies with different companies, you would spend lots of time gathering certificates (ACORD 25 forms) each time you need one.

It is time-consuming, frustrating, and, most times, inefficient. You are costing yourself money by placing your insurance with multiple companies.

UTILIZE ONE AGENCY FOR ALL OF YOUR POLICIES

Sometimes, this may not be possible.

In most cases, however, it is.

Independent agencies often have the means to produce all your insurance policies.

And when they do, you benefit from contacting one person or one company to issue ONE certificate of liability form.

How much time will you save by managing your coverage portfolio with one agency?

HOW DO I HIRE ONE AGENCY TO SERVICE ALL OF MY INSURANCE?

It’s easy; give Fusco Orsini & Associates a call at 858-384-1506; or complete the form below.

You may be surprised by the number of insurance companies we represent. So, even if you love your insurance company, we may have the ability to ‘broker of record’ the policies and service them on your behalf.

Thank you again for visiting! We look forward to connecting soon!

Celebrating 15 Years: Our 2024 Journey of Challenges and Successes

Mon, 18 Aug 2025 22:55:59 GMT

As we close the chapter on 2024 and enter 2025 as our 15th year in business, I reflect on a year marked by growth, innovation, and steadfast dedication to our clients. At Fusco Orsini & Associates and 4C Advising, our mission has always been clear: to provide the highest level of protection, compliance, and advisory services, empowering small to medium-sized businesses to thrive. This year, that mission became even more purposeful as we embraced challenges and turned them into opportunities to serve better.

Reflecting on Our Achievements

Strengthening Risk Management: We introduced new solutions to help businesses stay ahead in a rapidly changing environment. Among the highlights were our Workplace Violence Protection Plan and online manager training—essential tools for California businesses navigating new compliance laws. Additionally, our Zenjuries Claim Concierge service provided clients with streamlined workers’ compensation management, helping to reduce costs and improve outcomes.

Tailored Insurance Solutions: Our focus on specialization shone brightly in 2024. From crafting comprehensive guides like the ultimate trailer insurance blog to addressing contractor-specific needs such as subsidence exclusions, we ensured our clients received targeted advice and coverage that fit their industries. The launch of our Small Business Unit marked another milestone, demonstrating our commitment to meeting the unique needs of smaller accounts.

Enhancing Client Education and Engagement: Education remained a cornerstone of our work, as we believe is apparent on our YouTube channel. Through initiatives like the From Mike’s Desk blog series, we tackled timely topics—including lessons from the Crowdstrike incident and Thanksgiving-themed risk management insights—to keep clients informed and inspired. We also extended our reach through engaging video content, such as “Top Strategies to Save on Commercial Insurance Costs,” solidifying our role as trusted advisors.

Acknowledging Our Challenges

While 2024 was a year of progress, it also presented significant hurdles that tested our resilience. Some partnerships we aimed to strengthen ultimately ended, highlighting the importance of shared values and open communication in achieving long-term alignment. Missed goals pushed us to reassess our strategies and reframe our approach to outreach and service. Operational setbacks challenged us but also became opportunities to refine workflows and foster innovative solutions.

Mistakes were inevitable, yet each misstep reinforced our need for flexibility, adaptability, and humility. These challenges underscored our commitment to learning and growth, strengthening our resolve to serve our clients and partners more effectively in the future. By facing these difficulties head-on, we have laid the groundwork for a more resilient and focused organization as we enter 2025.

Insights from the Team

Our team’s diverse contributions have been the cornerstone of navigating 2024’s complexities. To reflect on the year, I invited everyone to share their perspectives—celebrating achievements, lessons learned, and goals for the future. The following insights showcase the dedication and expertise driving our success as we continue to grow and adapt.

Donna Hawkins:

Achievements: Purchased her first condo.
Lessons Learned: Learned to practice patience and grace in vendor and contact interactions.
Looking Ahead: Excited about saving for another home in 2025.
Values: Recognized the value of SMART principles in fostering a supportive and effective team environment.

Daniel Morton:

Achievements: Successfully maintained a profitable book of business during one of the most tumultuous insurance markets ever.
Lessons Learned: Emphasized the importance of not placing all business with a single carrier, as even high-quality carriers can pose risks when over-relied upon.
Client Impact: Provided guidance to clients on managing subcontractors as they hired employees for the first time.
Looking Ahead: Excited about restructuring our teams and the potential for improved collaboration and results.
Values: Highlighted how SMART principles resonate with him, ensuring every decision prioritizes client safety and the agency’s reputation.

Janeth Soto:

Achievements: Stepped out of her comfort zone to embrace a new venture with Fusco Orsini & Associates.
Lessons Learned: Recognized that clients aren’t always upset; often, they’re overwhelmed and need clarity.
Client Impact: Assisted valued clients with last-minute entries for required information, working closely with underwriting to rescind non-renewals right before Christmas.
Looking Ahead: Looking forward to opportunities and challenges that lead to growth and understanding.
Values: Found guidance in SMART values to deliver thoughtful and client-focused outcomes.

Katherine Jordan:

Achievements: Earned WCIRB certification and received numerous client referrals.
Lessons Learned: Realized insureds need more than just policies—they need brokers who understand their broader business needs.
Client Impact: Helped a client secure a policy that met a new client’s requirements, enabling them to land a contract that grew their business by over 20%.
Looking Ahead: Excited to see how her clients performed in 2024 and their plans for growth in 2025.
Values: Believes PARTNER reflects the agency’s commitment to building meaningful relationships rather than offering generic solutions.

Namalie Desilva:

Achievements: Mastered service workflows to provide support when needed.
Lessons Learned: Reinforced the importance of prioritizing customer service.
Client Impact: Highlighted the agency’s streamlined platforms that simplify clients’ access to insurance.
Looking Ahead: Eager to work with the new team and make a positive impact in 2025.
Values: Strives to embody SMART principles in all aspects of work.

Kelly Pavez:

Achievements: I don’t have one particular example, but I have many instances where I have gone above and beyond for clients with tough situations and received appreciation for my efforts, which always gives even more purpose and drive to what I love to do every day.
Lessons Learned: A valuable lesson is to truly evaluate the entire client issue (big or small) and look at it from all angles to find the best solution. These situations allow me to use my communication skills and my years of insurance experience to obtain the best result.
Client Impact: A valued client contacted me regarding her son’s passing. He was an EE and had employer-paid life insurance coverage. I jumped into action and found through my research that the provider didn’t move the claim in the right direction. I went above and beyond to get everything processed for the beneficiary and worked through the challenges to get the result she was pleased with, which was a full payout of the claim. She was so appreciative and emotional all at once…that is one I will always remember because she was a very kind woman.
Looking Ahead: I am most excited to continue being part of the FOA Team, expand my knowledge, and work with wonderful clients. I truly love what I do!
Teamwork: SMART and PARTNER values are great tools and reminders we can apply daily.

Looking Ahead: Insights and Predictions for 2025

As we prepare for the year ahead, we’re closely monitoring key trends shaping the insurance landscape. While there are signs of a softening market with broader coverage options and reduced premiums, challenges such as inflation, natural disasters, and rising cyber threats remain significant. Businesses must stay proactive, reviewing and adapting their coverage to address evolving risks like hybrid work environments and the growing impact of AI on operations.

At Fusco Orsini & Associates and 4C Advising, we’ll continue to guide our clients through these complexities, ensuring they are well-prepared for whatever 2025 brings. Plans include refreshing our commercial insurance proposal templates to better serve clients, expanding HR services through 4C Advising, and continuing to develop innovative solutions tailored to evolving client needs. Our work this year has laid a strong foundation for what’s to come, and we’re more motivated than ever to push forward.

Closing Thoughts

As we celebrate the close of 2024 and prepare for the new year, I’m especially proud to acknowledge a milestone— 2025 marks 15 years in business for Fusco Orsini & Associates. Our clients’ trust, partners’ dedication, and team’s unwavering commitment have shaped this journey. We’ve built stronger foundations and made meaningful progress toward our shared goals.

I’m excited to continue this work in 2025, driven by the same passion and focus that has carried us through the past decade and a half. Here’s to a future of protection, progress, and partnership.

Let’s make 2025 our best year yet.

Sincerely,

Mike Fusco

CEO, Fusco Orsini & Associates and 4C Advising

Can you issue an additional insured on my policy?

Mon, 18 Aug 2025 22:55:04 GMT

We get this question frequently, and the answer varies based on the policy. There are many reasons someone might need to add an additional insured (AI) to a policy; the cost and terms differ based on the situation.

Let’s dive into what an additional insured is and the reasons for an additional insured endorsement.

Since most additional insured endorsements are issued on the Commercial General Liability (CGL) policy, let’s discuss the three types of insureds on the CGL policy to create a better understanding.

1. Named Insured: Person or organization named on the Declarations and any other person or organization qualifying as a named insured according to the CGL coverage form.

2. Automatic Insureds: Any person or organization qualifying as an insured according to the “Who Is an Insured” provision in the CGL Coverage Form.

3. Non-Automatic Insureds (referred to as Additional Insured): Intended to signify those persons or organizations that generally are not automatically included as insureds under the liability policy of another but for whom the name insured desires or are required to provide a certain degree of protection under its liability policies.

There are two ways to achieve additional insured status under the CGL policy.

1. Add by endorsement, or

2. By a provision in the coverage form and not by endorsement.

What are the reasons other persons or organizations request Additional Insured status?

1. May assure better safety in risk transfer.

The additional insured provides a safety net for a hold harmless or indemnification agreement in the event the agreement is not enforceable.

2. Grants direct rights under the named insured’s CGL policy.

Example: A subcontractor adds a general contractor to their CGL policy. A pedestrian is injured while visiting the job site and sues both the GC and the subcontractor. In this case, the subcontractor’s insurer has a right and duty to provide defense and pay any settlements and judgments.

3. Protects the Additional Insured from subrogation.

Normally, insurers do not subrogate against insureds.

Example: The CGL policy insurer for a tenant pays the judgment awarded to an injured customer. Upon investigation, it was determined that the landlord was partially responsible. Since the landlord was added as an additional insured under the tenant’s CGL policy, the landlord may be protected from any subrogation by the tenant’s CGL policy insurer.

4. May provide for higher total lim its available.

5. It may reduce direct insurance costs.

Better loss experience as a result of using another party’s insurance.

Why would a named insured agree to add others to their policy as additional insured?

1. Close relationship with the named insured

2. Contractual relationship requires the named insured to comply.

Examples include:

a. Tenant – Landlord

b. Subcontractor – General Contractor

c. General Contractor – Project Owner

d. Lessee – Rental Company

e. Manufacturer – Vendor / Distributor

Problems with additional insureds may arise for the named insured and additional insured, but we will not get into those today. Please look out for a future blog post regarding the issues that may arise.

What are some commonly used additional insured endorsements with the CGL policy?

This post discusses commonly used ISO endorsements to provide additional insured status. Remember that many carriers utilize proprietary forms to grant AI status, but we will not discuss those in this post.

Scheduled Basis

The following forms are used to provide additional insured status on a scheduled basis:

· CG 20 10 12 19

· CG 20 37 12 19 (completed operations)

· CG 20 11 12 19

· CG 20 26 12 19

· CG 20 28 12 19

Other endorsements are designed to provide additional insured status on an “Automatic Basis” based on a contractual obligation.

· CG 20 33 12 19

· CG 20 38 12 19

· CG 20 39 12 19

· CG 20 40 12 19

Waiver of subrogation, primary or non-contributory wording, and per project aggregate endorsements

Like the forms we discussed, the waiver of subrogation, primary or non-contributory wording, and per-project aggregate endorsements may be scheduled or issued automatically. We have other videos and resources on our website and YouTube channel discussing these commonly utilized endorsements. Don’t hesitate to search for that information if you have questions regarding these forms.

What is the cost of adding an additional insured?

The cost associated with an additional insured is relatively low compared to the existing premium. Insurance providers often consider the risk marginal, but the AI broadens coverage in some cases, so the carrier will sometimes charge.

In the case of automatic forms, they usually come on the policy and are included in the premium. But don’t be surprised if you incur additional costs for scheduled endorsements.

What other policy types can you add as additional insured?

Of course, general liability is the most common. But you can secure additional insured status from the following policy, sometimes at a cost and others without.

1. Business Automobile Liability (not to be confused with a loss payee on the physical damage portion of the business automobile policy)

What policies do not provide additional insured status?

1. Employer’s Liability (workers’ compensation)

2. Professional Liability

3. Management Liability (EPLI, D&O, CRIME)

So how do you add someone as an additional insured?

The first step is contacting your insurance agent and identifying who they are and the level of coverage they are requesting. In some cases, adding an additional insured may require an endorsement to the policy, and an additional premium may be charged.

Also, it is essential to note that not all policies can be endorsed to include additional insureds; you should check with your insurance company or agent for the specific policy you have to see if it is possible.

If you have any questions about your current policy or how you can add someone as an additional insured, please call or text us at 858-384-1506 . We’d be happy to answer your questions.

California’s Workplace Violence Prevention Law

Mon, 18 Aug 2025 22:54:19 GMT

Are you ready to navigate California’s new workplace violence prevention law and ensure your workplace is safe and compliant?

Managing a business in California is already a complex task, and introducing a new law might seem like just another demand on an employer’s extensive to-do list. It’s understandable—navigating the growing network of regulations can be daunting. Yet, California’s recent workplace violence prevention statute is more than a mere regulatory hurdle; it represents a vital measure for safeguarding the safety and welfare of everyone in the workplace, including employees, customers, and visitors. While it may appear yet another concern, grasping and enacting this law’s requirements is critical to fostering a safer, more secure work environment for everyone involved.

California Legislation Introduces New Data Breach Notification Law

Mon, 18 Aug 2025 22:53:33 GMT

Many states have embraced standards that businesses must follow to safeguard personal identifying information. Often these standards include ‘Data Security Breach Notification Requirements.’ In California, the California Attorney General’s Office implements these laws.

It’s important to note that in February new legislation was introduced to strengthen California’s data breach notification law that protects consumers. The bill was created to close a loophole in the current data breach law by requiring businesses to notify consumers when passport numbers, as well as biometric information, is compromised, which was not previously required.

California Businesses Should Take Note

As a business owner, it’s crucial that you take proactive measures to protect your customer’s private information. California Law requires individuals or businesses that own, license or maintain personal information about Californians to safeguard this information. It’s up to each company to implement reasonable security procedures and practices protecting their data from unauthorized access, use, destruction, modification or disclosure. Under these laws, a business is defined as any group that is chartered, organized, or holds an authorization certificate or license or under California law or the law of any other state, the federal government or of any other country.

There are certain businesses exempt from California’s breach notification law, including:

Health care providers, contractors, or health care service plans regulated by the Confidentiality of Medical Information Act.
Financial institutions which adhere to the California Financial Information Privacy Act.
Businesses governed by the Health Insurance Portability and Accountability Act of 1996 (HIPAA) security and privacy rules.
Companies that are regulated by federal or state laws that provide greater protections to personal identifying information than what California’s breach notification laws require.
Entities that obtain information under an agreement authorized by the vehicle code and that are subject to the confidentiality requirements of the vehicle code.

Under the breach notification law, personal identifying information includes a person’s first name or first initial and last name in conjunction with one or more of the following:

A California identification card number or driver’s license number.
A Social Security number
Medical information about a person’s medical history, mental or physical condition, or diagnosis by a health care professional medical treatment.
An account, debit or credit card number, in combination with any required access code, password or security code that would permit access to an individual’s financial information.
Information or data collected by use or operation of an automated license plate recognition system. Personal identifying information may include a username or email address, along with a password or security question and answer that would permit access to an online account.
Health insurance information.

It’s essential you know what a breach is. Under the current law, a security system breach is the unauthorized acquisition of computerized data that jeopardizes the confidentiality, security, or integrity of the personal identifying information kept by another person or business. Ascertaining whether a breach took place under the law depends on if the affected information was encrypted or unencrypted. To understand more about California’s data breach notification law, visit the following state resources.

California Attorney General’s Office

www.oag.ca.gov/home

Breach Reporting

The attorney general’s office offers the following guidance regarding data security breach reporting.

Business Resources

The attorney general’s office has made the following resources available to businesses.

Protecting Your Business

It’s critical to ensure the success of your business, and it’s the law that you do all you can to protect your customer’s private information. Here are some ways you can protect yourself and your customers from a data breach.

Safeguard Data
Keep Only the Information that You Need
Destroy Before Disposal
Manage Use of Portable Media
Keep Security Software Up-To-Date
Secure All Computers
Stop Unencrypted Data Transmission

We also recommend carrying a cyber liability policy. Cyber liability insurance is designed to help the insured recoup losses related to both first- and third-party risks associated with supplying and collecting information on the internet to. Are you ready to discuss your business needs? Call (858) 384-1506 today and chat with an insurance professional at Fusco & Orsini, who can help you create a customized cyber liability policy, tailored to your business. And remember to ask for assistance regarding our risk management services.

Business Liability 101: The Ultimate Guide to Insurance

Mon, 18 Aug 2025 22:49:12 GMT

If you own a business, you will likely purchase liability insurance to protect against any legally enforceable obligation. In other words, insurance that will pay or render service on your behalf for loss arising out of legal liability to others.

Like most people, you likely deal with confusion surrounding the various types of liability insurance available to businesses.

Let’s review five essential liability products available to protect businesses of all types.

General Liability

Most business owners are familiar with general liability because it serves as a backbone of protection for most companies.

General liability insurance, often referred to as GL or CGL, protects businesses against liability claims for bodily injury (BI) and property damage (PD) arising out of:

Premises
Operations
Products
Completed Operations
Advertising and Personal Injury Liability

A common type of general liability claim is slip and fall. In this case, a third party would sue for injuries sustained on a business’s premises caused by a slip and fall.

Professional Liability

Professional liability is a type of liability coverage designed to protect professionals, such as accountants, attorneys, and insurance agents.

You will often hear professional liability referred to as errors and omissions, or E&O, because it protects against liability incurred due to errors and omissions in performing the professional service.

Although there are a few exceptions, most professional liability policies only cover economic or financial losses suffered by third parties. Professional liability will sometimes cover BI and PD claims, also known as contingent bodily injury or property damage, for professionals such as physicians, architects, and engineers.

It’s also important to remember that most professional liability policies are written with claims-made coverage triggers. You can find videos on our YouTube channel about claims-made policies.

Employers’ Liability

Most business owners are familiar with workers’ compensation insurance, but how about employers’ liability insurance? Did you know that the second part of the workers’ compensation policy provides employers’ liability?

Employers’ liability provides coverage to the insured (employer), for liability to employees for work-related bodily injury or disease other than liability imposed on the employer by a workers’ compensation law.

Consider this scenario.

Any employee of the insured employer sustains injuries while working in construction. The injuries are severe, and the workers’ compensation policy pays for the injured employee’s medical expenses and income replacement. The insurance company also provides disability because the employee cannot return to work.

But what about the family?

The employee was the breadwinner and supported their family. Since work is no longer viable, and extra resources are needed to care for the injured worker, the family seeks damages from the employer.

In this situation, employers’ liability provides coverage to the insured to pay the family for their losses.

Business Automobile Liability

The business auto policy contains two main parts: auto liability and auto physical damage coverage.

For those that use automobiles as part of their business, business auto liability is critical protection to cover BI and PD losses to a third party while operating the vehicle. It is crucial to keep in mind that various symbols may apply to an insured’s business auto liability protection. Examples include symbol 1 (any auto) or symbol 7 (schedule autos).

I can tell you first-hand that at our agency, we receive more business auto claims than any other line of insurance. There is an inherent risk to driving, and state laws require that everyone purchase auto liability insurance to drive legally.

When seeking business auto liability insurance, consider the need for hired liability insurance and non-owned liability insurance. You can check out our YouTube channel for more information on these essential coverages.

Management Liability

Finally, we have management liability. In our experience, it’s becoming more common for businesses to secure management liability. Examples include directors’ and officers’ liability insurance (D&O), employment practices liability insurance (EPLI), fiduciary liability, and crime insurance (kidnap, ransom, extortion).

Management liability covers exposures faced by directors, officers, managers, and business entities that arise from governance, finance, benefits, and management activities. You may also hear management liability referred to as “executive liability insurance.”

Like professional liability insurance, management liability is commonly written on a claims-made basis. Understanding claims-made policies and coverage triggers are essential before purchasing a management liability policy.

EPLI is an essential coverage to consider as a business owner. EPLI covers wrongful acts arising from the employment process, such as wrongful termination, discrimination, sexual harassment, and retaliation.

The policy can also cover other inappropriate workplace conduct, including defamation, invasion of privacy, and failure to promote.

If you have an EPLI policy, read it! EPLI policies contain lots of sub-limits and exclusions. Understand your protection to best cover your business.

Now that you have a better scope of Liability Insurance, we are here to continue to advise you on matters relating to your business. Click to start a quote today and connect with one of our associates for assistance.

Weathering Storms with a Business Continuity Plan

Mon, 18 Aug 2025 22:47:54 GMT

Just last month, Hurricane Beryl made landfall in Texas as a Category 1 hurricane, causing catastrophic damage to homes and infrastructure. The storm caused widespread property destruction, prolonged power outages and significant economic disruption throughout these areas.

As we have seen with Hurricane Beryl and countless other storms, particularly in coastal areas, weather events can cause extensive halts to business operations and massive financial losses.

With the unpredictable nature of these weather events, planning for business recovery is critical.

Two of the most important things a business can do are: create a Business Continuity Plan and include Business Interruption Insurance as part of that plan.

Does my small business need a business continuity plan?

Mon, 18 Aug 2025 22:47:03 GMT

A business continuity plan example would include various components, such as a risk assessment, plans for restoring systems, roles that outline who will do what, and more.

A business continuity plan (BCP) is your proactive strategy for keeping your business running if something goes wrong. Some examples of “what could go wrong” include natural disasters, cyberattacks, supply chain failures, pandemics, utility outages, tariffs impacting manufacturing, and more.

If you are a business owner in 2025, there’s a good chance you’ve read about some “crazy” circumstances happening to other businesses. You could rattle off the names of those businesses and identify which sank and which swam. Business owners never want to find themselves in sinking situations. Yet still, a false sense of security keeps many folks from taking necessary precautions.

At Fusco Orsini & Associates Insurance Services, we strongly recommend that our business clients consider business continuity plans to position themselves as ready and resilient.

Why do you need a business continuity plan?

According to Zywave, BCPs “establish a recovery and remediation framework to help organizations limit possible damage and ensure crucial business functions can continue when various disasters and emergencies strike.”

If you’re thinking, “Eh, my business is too small to need something like that,” keep reading. That is the first myth about BCPs, and we’re here to bust a few more.

Myth: Only large corporations or those prone to natural disasters need BCPs.

Small businesses often have limited capital, which is one of the biggest reasons they should get a BCP. According to Zywave, “multiple studies found that between 40% and 60% of small businesses fail shortly after experiencing a crisis.” A BCP can help you protect your profits, people, and operations and bounce back when a disruption occurs.

Myth: BCPs aren’t worth the time, effort, and cost.

You truly cannot afford not to have a BCP. Remember, one event, such as halted operations or a fine for non-compliance, could lead to millions of dollars in losses.

Myth: Backing up critical data is good enough.

Data backups aren’t good enough, nor is a BCP limited to technology-related disruptions. A good BCP should help protect your company’s entire operational framework and infrastructure.

Myth: Business continuity planning isn’t worth it. My business can decide how to respond to a disaster in real time.

When a disaster strikes, time is of the essence. If you are faced with a catastrophe and have no plan, you will likely scramble to figure out the next steps. The more time you waste, the more likely the disruption and its domino effect (financial loss, reputational damage, regulatory penalties, etc.) will escalate. Can you imagine how stressful this situation could be for you and your employees?

If you want to get ahead of a potential disruption, please contact our advisory team so we can provide you with a business continuity plan example and discuss what a BCP can look like for your business.

P.S. – If you’re worried about the process being too technical or you simply feel uncomfortable looking at vulnerabilities face-to-face, we completely understand. Considering worst-case scenarios is never fun, but you can find freedom in having a plan moving forward.

Source: Zywave, Risk Insights, Business Continuity Planning Myths Debunked

5 Builders Risk Policy Endorsements You Should Never Overlook

Mon, 18 Aug 2025 22:46:16 GMT

Myth: Only large corporations or those prone to natural disasters need BCPs.

Myth: BCPs aren’t worth the time, effort, and cost.

You truly cannot afford not to have a BCP. Remember, one event, such as halted operations or a fine for non-compliance, could lead to millions of dollars in losses.

Myth: Backing up critical data is good enough.

Data backups aren’t good enough, nor is a BCP limited to technology-related disruptions. A good BCP should help protect your company’s entire operational framework and infrastructure.

Builders risk insurance is an essential protection for contractors, developers, and property owners!

Construction is complex. Every project is different; timelines shift, materials change, and budgets evolve. A builders’ risk insurance policy helps protect the financial investment in a construction project, but even comprehensive coverage can fall short if key endorsements are missing. These overlooked additions can mean the difference between being reimbursed for a costly delay or facing significant out-of-pocket expenses.

Builders’ risk policy endorsements are essential for contractors, developers, and property owners who want to safeguard their construction projects from start to finish. While a standard policy offers broad coverage, there are specific situations that require tailored protection. You may be left exposed to some of the most critical phases of your project without these endorsements.

This guide explores five often-overlooked builders’ risk policy endorsements that can protect against budget overruns, construction delays, legal risks, and equipment breakdowns. Whether managing a significant commercial development or overseeing a residential renovation, these additions can help ensure your policy truly fits your needs.

Why Builders Risk Policy Endorsements Matter

Builders’ risk insurance typically covers damage to buildings under construction due to fire, theft, vandalism, weather events, and certain types of accidental loss. However, standard policies do not account for all the variables involved in modern construction projects. Endorsements have become important in filling these coverage gaps.

Endorsements are custom additions to your policy that expand or clarify coverage. They reflect your project’s specific conditions and address common financial gaps that could otherwise expose you. For example, if you extend your construction timeline or your budget increases due to design changes, your original policy may no longer reflect the true value of the risk.

Understanding and selecting the right builders’ risk policy endorsements is crucial for contractors, developers, and property owners who are serious about risk management.

Before we break down each endorsement, here is a quick visual summary of the five most essential builders’ risk insurance endorsements every construction project should consider:

1. Change Order Endorsement

Construction projects rarely proceed exactly as planned. Design modifications, material upgrades, and scope changes are common and often incur increased costs. A change order endorsement ensures that your policy reflects these updates by adjusting the total insured value of the project.

Without this endorsement, you risk underinsuring your project. In the event of a loss, your claim payment may not fully cover the increased costs associated with unreported changes. The change order endorsement is crucial if your contract value increases during the build. Insurers may apply coinsurance penalties if the policy limit does not accurately reflect the final completed value.

Change order endorsements are typically available in increments of ten, twenty, or thirty percent of the total insured value. They apply to residential and commercial projects, and we use them most commonly in single-shot policies where changes are frequent.

Key Benefits:

Prevents underinsurance from budget increases
It helps avoid coinsurance penalties
Protects agency liability during claims

2. Soft Costs Endorsement

Soft costs are indirect expenses unrelated to physical construction that can accumulate rapidly with project delays. Examples include loan interest, architectural and engineering fees, legal costs, advertising, and permit fees. These costs often continue during a delay, which can significantly affect the overall financial outcome of the project.

A soft costs endorsement covers these expenses if a covered loss causes the delay. Soft cost coverage is especially valuable in large-scale commercial or custom residential projects where even minor delays can trigger thousands of dollars in recurring expenses.

Insurers may require a breakdown of projected soft costs, especially if the requested limit exceeds twenty percent of the total completed value. A detailed cost allocation ensures that the right level of coverage is applied and that reimbursements can be processed smoothly in the event of a claim.

Key Benefits:

Covers indirect costs during project delays
Reduces financial strain on developers and owners
Enhances financial predictability during delays

3. Extended Permission to Occupy

Construction delays are common, and there may be instances where an owner or tenant occupies the property before construction finishes. Standard builders’ risk coverage typically ends when the occupant moves into the building, but the risk does not disappear. An extended permission to occupy endorsement offers limited coverage during the transitional period when the owner or developer assumes legal responsibility for the property.

This endorsement is crucial for construction projects or phased developments where tenants move in before construction ends on the entire structure or project. Without this addition, any loss occurring after occupancy but before permanent insurance takes effect could be excluded from coverage.

It is designed for new construction or major remodels insured under a single-structure policy. It provides a safety net when timelines blur and occupancy happens ahead of full project closeout.

Key Benefits:

Maintains coverage after the insured takes legal responsibility
Supports seamless transition to permanent insurance
Reduces coverage gaps during project completion

4. Waiver of Coinsurance

Coinsurance is a policy provision that requires the insured to maintain coverage equal to a certain percentage of the project’s total value. A coinsurance penalty may apply if the insured value is too low, reducing the claim payout. Estimating the exact value of a dynamic project can be difficult, and minor miscalculations can have significant consequences.

A waiver of the coinsurance endorsement eliminates this penalty if a loss occurs. For example, an insurance company we often utilize for builders’ risk insurance will adjust claims without applying the coinsurance condition for policies under certain forms. The endorsement is invaluable for smaller commercial projects or single-structure installations valued at up to ten million dollars.

This endorsement offers peace of mind for contractors and developers who must make quick decisions and might not always have perfectly accurate projections for every line item.

Key Benefits:

Removes penalties from value estimation errors
Simplifies claims process
Protects small to mid-size projects from costly miscalculations

5. Equipment Breakdown Endorsement

Construction sites rely heavily on equipment and machinery, from HVAC systems to electrical panels. These systems are vulnerable to power surges, mechanical failure, or ruptures. Standard builders’ risk policies may not cover this loss unless it includes the equipment breakdown endorsement.

This endorsement reimburses repairing or replacing essential systems when damage results from an accidental breakdown. Covered incidents may include electrical currents, mechanical malfunctions, and centrifugal force ruptures.

However, this endorsement does not cover damage due to wear and tear, flooding, or issues discovered during testing. Understanding the limits and exclusions is vital to determine if this endorsement fits your risk profile.

Key Benefits:

Covers high-cost repairs from system failure
Protects against electrical and mechanical malfunctions
Equipment breakdown applies to both residential and commercial projects

How to Choose the Right Endorsements

Selecting builders’ risk policy endorsements should be a strategic decision based on the unique characteristics of your construction project. Factors such as project value, complexity, timeline, and risk exposure will determine which endorsements are most appropriate.

Begin by consulting with an experienced insurance advisor who can help assess your specific needs. Our team works closely with contractors, developers, and property owners to customize builders’ risk coverage to align with their goals. We guide limit selection, documentation, and claims management to ensure complete protection throughout your project lifecycle.

Conclusion

Builders risk insurance is not one-size-fits-all. By incorporating these five essential endorsements, you can transform a basic policy into a comprehensive risk management tool. Change orders, soft costs, extended permission to occupy, waiver of coinsurance, and equipment breakdown endorsements address some of the most common and costly gaps in construction coverage.

Contractors, developers, and property owners cannot ignore these considerations in their insurance planning. A small oversight can lead to significant financial setbacks, while a well-structured policy can provide stability in uncertainty.

For more information about customizing your builders’ risk policy, contact Fusco Orsini and Associates. Our advisors are here to help you build smarter, safer, and with confidence.

Navigating BTIS General Liability Audits: A Guide for Small Contractors

Mon, 18 Aug 2025 22:45:31 GMT

Watch this video for important information on your BTIS audit!

Introduction

In the competitive and risk-prone construction world, small contractors often navigate through a labyrinth of insurance requirements. BTIS, a respected Managing General Underwriter (MGU), has recently implemented a policy of auditing general liability coverage for small contractors at the end of their policy term. Understanding the process and requirements is critical for contractors who wish to maintain coverage and avoid unexpected costs.

Understanding General Liability Audits

Audits serve as a verification process to ensure that the premiums paid by the contractors align with their exposure to risks during the policy period. If your operations expand or contract significantly, the premium you were initially charged may not accurately reflect your risk. An audit allows BTIS to adjust the premium accordingly.

What BTIS Expects

For contractors insured through Security National, Veta, and CNA (and possibly additional carriers), the audit requires several critical documents:

Forms 940 or 941 to verify payroll figures.
A list of all subcontractors used throughout the policy term, along with certificates of insurance and any additional insured endorsements.
A questionnaire that details operations, the number of employees, gross payroll, and gross sales.
A Profit and Loss (P&L) statement to provide a clear picture of your financial situation.

The Process

Once your policy reaches its expiration, you will be contacted by BTIS to start the audit process. As a contractor, you must gather the required documents and information, following BTIS’ guidelines closely to ensure a smooth audit experience. It’s important to be as accurate and complete as possible to avoid any discrepancies that could have financial repercussions.

Non-Compliance and Its Implications

Failing to comply with the audit requirements can lead to significant drawbacks:

You may be billed for additional premium based on an estimate that might not accurately reflect your actual exposure.
You risk non-renewal of your policy—which can be a serious setback, as general liability insurance is a necessity in the contracting industry.

The Key to a Successful Audit: Preparation and Accuracy

Start early: As soon as you receive notification of an upcoming audit, begin organizing your paperwork.
Be meticulous: Ensure that the information you provide is accurate and complete.
Ask questions: If you’re unsure about what’s required, reach out to BTIS for clarification.
Seek professional help: Consider engaging our complementary company, 4C Advising, to assist in the process.

Conclusion

General liability audits might seem daunting, but with the right approach, they can be navigated effectively. By understanding what is expected and preparing diligently, small contractors can ensure that they remain in good standing with their insurer and continue to protect their business against potential liabilities.

Remember, insurance is a partnership – staying proactive about audits not only complies with the terms of your coverage but also reinforces your commitment to responsible business practices.

Breaking down the cost of inland marine insurance for contractors

Mon, 18 Aug 2025 22:44:28 GMT

What is inland marine coverage? How much does commercial inland marine coverage cost? We answer these questions and break down the price of inland marine insurance in today’s video.

WHEN TO CONSIDER INLAND MARINE INSURANCE

At Fusco Orsini & Associates, one of the more overlooked policies for contractors is commercial inland marine. We work hard to educate our clients on the valuable protection that inland marine insurance will provide. Here’s an example of a claim that requires inland marine for protection. You own a construction company and store tools in your pickup truck. The tools are NOT attached to your vehicle. In the unfortunate event of vehicle theft, your business auto policy WILL not replace your tools. Instead, you will need an inland marine policy to protect your valuable assets. The same goes for equipment, such as bobcats and skid steers. If you leave equipment on job sites, lost to theft, fire, or vandalism, you will need an inland marine policy to cover your losses. Finally, consider trailers. We have witnessed the theft of entire trailers and all of the contents stored within. Inland marine will cover the loss of trailers and their contents.

WHAT IS THE PRICE OF INLAND MARINE INSURANCE

An inland marine policy usually starts at $750 in premium and increases based on total insured values (TIV). The inland marine policy forms provide options for several insuring sections, such as miscellaneous tools and small equipment (items valued under $1,500), scheduled tools and equipment, rented/leased equipment, and installation floaters. Generally speaking, insurance companies charge roughly 4% on the value of miscellaneous tools and equipment and 1% on the value of scheduled tools and equipment. Typically, scheduled tools and equipment are more prominent and easier to track; your insurance agent will schedule these items on an inland marine policy by listing the year, the make, the model, and the item’s serial number.

ADDITIONAL FACTORS TO CONSIDER

If you’re a contractor, you work hard to build your capital by acquiring tools and equipment of the trade. These capital investments become your assets, and it’s essential to protect them in the event of a loss. Inland marine policies provide great value. In most cases, you can secure inland marine insurance written on ‘special form,’ replacement cost valuation, and favorable co-insurance clauses. It would help if you also looked for a policy with low deductibles and without a higher deductible for theft. Remember to read your policy and understand the coverage; is your insurance company providing ‘actual cash value’ for your tools and equipment? If so – it’s crucial that you know!

IN CONCLUSION

We hope that you find this video insightful. If you have further questions or are considering an inland marine policy for your company, please complete the form below, and an associate of Fusco Orsini will reach you quickly. Thank you again for your time!

Bop It! Insurance Policy Bundles For Tech Startups

Mon, 18 Aug 2025 22:43:33 GMT

A business owner’s policy (BOP) can help small business owners to get up and running with the various insurance coverages they need, like property and liability insurance, without having to take out a bunch of separate policies. By having the insurance lines bundled, you can get a better rate on the whole package.

A business owner’s policy is customized to the organization. Say, for example, that your new app is revolutionizing the healthcare industry. You not only need general liability, but also cyber liability, professional liability, and business personal property coverage.

We know you’re moving fast, which is why you can request a quote on your own timeframe – either by filling out a quick form or setting up a call with one of our insurance agents. Happy BOPing!

What Does It Mean to “Block the Market” in Commercial Insurance?

Mon, 18 Aug 2025 22:41:44 GMT

If you work in commercial insurance, you may already know the term “blocking the market.” This concept plays a regular role in how insurance companies (i.e., carriers) handle commercial insurance. However, many business owners, especially those new to the process, find it confusing or frustrating.

In this post, I will explain how blocking the market works and why, when managed correctly, it actually helps business owners.

Understanding the Concept of Blocking the Market

Business owners sometimes ask several brokers to provide options for insurance quotes. These business owners or members of their teams often do not realize that many of these brokers rely on the same group of insurance carriers. Most carriers only respond to the first broker who applies on behalf of the business. In other words, the broker who submits first “reserves” that carrier, blocking others from accessing the same market.

This approach gives the first broker exclusive access to that market for that specific client.

Why Insurance Carriers Follow This Approach

Carriers want to avoid confusion and delays in the underwriting process. When they receive multiple submissions for the same business, they often see different versions of the risk or incomplete information. These discrepancies slow down their decision-making and can result in inaccurate quotes.

Most insurance carriers only accept the first submission to prevent these issues. This process helps them stay organized and reduces the chance of error. While it may appear to give brokers a competitive edge, it protects the business owner when used with a clear strategy.

How Blocking the Market Helps Business Owners

Blocking the market can provide several benefits when brokers follow a focused and transparent process.

Accurate Representation
One broker can gather consistent information and give underwriters a clear picture of your business.

Strategic Marketing
A single broker controls how and when to approach carriers, ensuring the message is precise and targeted.

Simplified Process
You avoid duplicate submissions, mixed messages, and unnecessary confusion, resulting in a cleaner and more efficient experience.

The Risk of Working with Multiple Brokers

Choosing multiple brokers might seem like a good way to explore your options. In reality, this strategy can reduce your access to carriers. If one broker submits to a carrier, that market becomes unavailable to the others, even if one of them understands your business better. Rather than gaining more choices, you could end up with fewer.

What You Should Do Instead

Choose a broker who understands your business, builds a marketing strategy, and communicates how they will approach the market. When you commit to one advisor, you create a focused approach that benefits you at every stage.

You deserve more than a stack of quotes. You deserve a trusted partner who understands the insurance market, listens to your goals, and builds relationships that work in your favor. Our team focuses on trust, clarity, and long-term relationships. We take the time to learn about your business and match you with carriers that meet your needs while offering the support you deserve.

In Closing

Blocking the market helps keep the quoting process clear and manageable. Understanding how insurance works and using the right strategy with the right broker can help you make better decisions and build a stronger insurance program.

If you want help navigating your next renewal or reviewing your current strategy, complete this form and connect with our team today. Thank you for reading!

What is a group captive insurance program, and should I consider it for my business?

Mon, 18 Aug 2025 22:40:51 GMT

What are the benefits of captive insurance programs?

A group captive insurance program is when multiple companies come together to form their own insurance company instead of relying on a third-party provider. In other words, numerous members pool their resources to become owners, decision-makers, and funders of their own insurance.

Sometimes, companies from the same industry, like construction companies, will come together to form a homogenous captive program . This program enables the group to customize its coverage to suit its similar, shared risks. Alternatively, a heterogeneous captive program unites various industries for diversified risk coverage.

At Fusco, Orsini & Associates, we keep abreast of various group captive insurance programs that have already been formed. If we think our client or prospective client is an excellent fit for a group captive program (as opposed to traditional insurance), we make the recommendation! Underwriting also plays a part in determining eligibility.

What are the benefits of a group captive insurance program?

Here are some great benefits companies may experience:

Gain greater control over risk management, including cost stabilization and decision-making
Reduce long-term costs
Financial benefit from underwriting profits and investment income
Customized coverage options
Potential tax advantages

What types of coverage can I get in a group captive program?

One benefit of group captive programs is that the coverage can be customized, potentially saving you money by not paying for what you don’t need. Coverage can include workers’ compensation, general liability, auto liability, and physical damage.

What is the structure of a group captive program?

Predictable Losses: Members absorb predictable losses like a slip-and-fall claim or minor auto accident. This means you could be paying $250,000/year for insurance, plus you will pay out-of-pocket for predictable losses.
Larger Losses: The group should share larger losses, such as serious workplace injuries, to reduce cost volatility for any member.
Catastrophic losses: These should be completely transferred to an insurance company. For example, a multi-million-dollar lawsuit from a product liability claim. For the group, this means you are protected from financially-crippling losses that could threaten the solvency of member companies.

How do you earn money from a group captive program?

Since all members pay into the program, reserves earn investment income for the members (not an insurance company). We’ve seen upwards of 15% premiums returned to participating members in specific programs, leading to strong renewals and reduced rates over time.

What kinds of companies should consider a group captive insurance program?

Businesses with predictable risk. These companies should understand their risks and be willing to manage them well.

For example, an excellent candidate would be a construction company that:

Knows their internal and external risks
Knows how much risk they are willing to take on and how much they can handle
Communicates its risk, risk management, and safety practices team-wide
Regularly reassess the above

Companies that are usually a good fit:

Agriculture
Auto Dealers
Contractors
Entertainment & Gaming
Food Products & Services
Healthcare
Hospitality
Landscaping
Manufacturing
Moving & Storage
Retail
Security Firms
Transportation
Waste Disposal
Warehouse & Distribution
If your industry is not on this list, reach out to learn if you may be eligible.

What kinds of companies are less likely to benefit from a group captive insurance program?

It depends, but businesses with fluctuating or unpredictable risks are generally not a good fit. Examples include roofing & framing, occupational disease risks, PEOs, hazmat transportation, high-ratio group transport (like bus, limo), high-ratio long-haul or heavy transport, healthcare, residential construction, and security firms.

Are all businesses eligible for a group captive insurance program?

No. Captives are not for everyone OR available to everyone.

Alternative programs may be offered to companies like roofing & framing contractors. Contact us to learn more.

I don’t think I’m eligible for a group captive program. Is traditional insurance still the way to go?

First and foremost, whether you choose a group captive or a traditional program, being insured is what counts! It is crucial to insure your business early and appropriately. Traditional insurance plans can often be less expensive upfront and will not require the same operational demands as running your own program. Further, traditional insurance is a better choice for high-risk industries that want to transfer all of their risk to their insurance provider.

When can I switch from traditional insurance to a group captive program?

It depends, but some clients choose to do this around the time of their insurance renewal dates.

What is the best way to know if a group captive insurance program is right for me?

To learn more, it is best to connect with our team. An underwriter will also help determine eligibility. We look forward to helping you decide whether a traditional insurance plan or group captive plan is best for your business!

LET’S CONNECT!

Being a Confidently Happy Small Business Owner

Mon, 18 Aug 2025 22:39:56 GMT

Is being confidently happy the underdog benefit of getting your risk management and operations in order?

I remember the day clearly. Three years into starting our insurance brokerage, I realized that we were under-resourced and didn’t have the capacity to hire a full C-suite or an expensive roster of consultants. I was frustrated and needed someone to manage our HR, employee wellness, and compliance needs, but I did not see a clear, attainable path forward. I was ready to scale, but I was also navigating a cluster of dollar signs and doorways in my mind.

So, I got to work on finding a solution. I spent the next several years sourcing and vetting the best HR, employee wellness, and compliance services and programs I could find (stuff like employee handbooks, compliance tracking, audit support, EAPs, and more). I learned that these services and programs could be made available to other small and medium businesses affordably via shared costs. Let me explain.

Instead of having to subscribe to an entire plan or platform on their own, multiple companies can buy into a shared plan. This is what I wish I had in year 3, and I knew I needed it to get into the hands of other SMBs hitting growth pains. I was so happy about this shared-cost solution—the kind of happiness that comes from making smart, confident, and savvy decisions for your business and your team—and I wanted to share it.

So, in late 2023, we launched 4C Advising to reduce the financial barrier for small businesses that need solid and affordable HR, employee wellness, and compliance solutions to grow.

Okay, okay, maybe you didn’t sign up for my business growth-pain story, but I tell you all of this because I want you to know that I get you. I hear you. I know what it feels like to make tough calls about what to do next in business, especially amid inflation, price and wage increases, and labor and cash flow demands.

If you’re an entrepreneur or business leader, you’ve probably got an entrepreneurial spirit characterized by immense drive, excitement, expertise, innovation, and a desire to catalyze positive change. Right now, you might be experiencing a pivot or growth pains, a moment when a business feels uncertain, too expensive to maintain, or even scary. But it’s still there, that entrepreneurial flicker, that desire to figure it out, make growth happen, and perhaps, build your strongest business yet.

And we’ve got your back.

I could go on to tell you the state of small businesses, but I think you already know what your business needs right now: right-fit solutions to get you to the next level. And if you’re a bit uncertain about what you need, no judgement here! A phone call is a great place to start. We’re a team of real people ready to efficiently and effectively make a difference for fellow SMBs like yours ( INQUIRE HERE and we’ll get back to you shortly).

Until we meet (and we’d love to meet you!), I’ll share one more thing that’s pretty cool. A 2024 study by Guidant Financial reveals that a majority of entrepreneurs (73%) — report either being somewhat happy (37%) or very happy (36%) as business owners.

Do you find yourself in this “happy” category? And don’t settle for blissfully ignorant (not that any of you would). I’m talking about being confidently happy as a business leader. The kind of happiness that comes from taking care of your team’s wellbeing, from the ease of knowing that you have your ducks in a row, from putting plans in place to mitigate risk and adhere to compliance standards, from onboarding and offboarding with care, and from building your strongest, most scalable business yet?

Whether you’re in year 1, year 3, or year 30, claim the greatest underdog benefit of getting your risk management and operations in order: being confidently happy.

That’s a feeling you’d want to experience more of this year, right?

Let’s get you started!

Mike

P.S. – Start exploring right-fit solutions HERE. Once we know your needs, we can launch several programs within 24 hours.

Automating Certificate of Insurance Tracking with 4C Advising

Mon, 18 Aug 2025 22:38:54 GMT

Enhancing Certificate of Insurance Tracking Through Automation: Transforming Risk Management

Managing risks is a crucial aspect of businesses today. Risk management is critical to monitoring and validating Certificates of Insurance (COIs). In the past, this was done manually, which was prone to errors and required a lot of resources. However, with the integration of advanced technologies, a new and revolutionary solution is now available – automating COI tracking.

Why Do My Auto Insurance Rates Keep Going Up Even Though My Car Keeps Getting Older?

Mon, 18 Aug 2025 22:38:02 GMT

Why do my auto insurance rates keep going up even though my car is getting older? At Fusco & Orsini Insurance Services, many of our clients ask this question so I would like to address it from a couple of angles.

First things first, even though it’s called car/auto insurance, it covers more than just your car. It should technically be called “auto-owners” insurance, similarly to how home insurance is actually called “home owners insurance”.

It’s important to understand that there are a lot of variables that go into insurance premiums, and with auto insurance, it’s no different.

The insurance company is much more concerned with you crashing into someone and causing them (or yourself) bodily harm, or death, than they are about your car. A car is a material possession which can be replaced.

A human life is not.

When is the last time you looked at your auto insurance policy?

If you look at it you’ll notice there are a lot of different coverages on your auto policy.

Bodily injury

Property damage

Un-insured motorist

Under-insured motorist

Medical Payments

Loss of Income

Funeral Expense

Loss of use

Rental Reimbursement

These are all things that you are covered for on your auto policy. How many of them have to do with your car?

None.

How many of them have a price next to them on your policy?

All of them.

Your car isn’t the only thing you’re being charged for on your policy

That’s because auto insurance covers far more important things than your car as mentioned above.

Let me re-phrase that: your car insurance rate isn’t just based on your car.

You’re not the only one…

It’s also important to understand that you are not the only person your insurance company insures. You are one fish in an ocean of other fish, sharks, and sea creatures, all who have different characteristics and risk profiles.

Insurance is all about spreading costs over a large number (risk pool) of people, which each person paying their fare share. That risk pool is constantly changing, and is impacted by a ton of different things, including the overall economic climate.

This means that you are sharing in the cost of millions of other people, many of whom may have poor loss history and/or credit.

That’s what insurance is though — sharing in the cost.

The next time your auto insurance rates go up, take a look at the big picture. Make sure you’re looking at ALL of the coverages, and corresponding rates.

Hope this helps! If you would like to know more about Car Insurance be sure to visit our page dedicated to it.

AUDIT NIGHTMARES: Why Subcontractor Compliance is Critical for General Contractors

Mon, 18 Aug 2025 22:37:16 GMT

Imagine this : Your business has just completed a successful year, projects are on track, and you’re ready to focus on new opportunities. Then, your general liability or workers’ compensation audit arrives. Instead of business as usual, you’re hit with a shocking additional premium—tens of thousands of dollars you didn’t budget for. The culprit? Subcontractor non-compliance.

For many general contractors, this scenario is far too common. Carriers are cracking down on subcontractor documentation, and without proper compliance, you could be left footing a massive bill . This blog will explore the hidden risks of neglecting subcontractor compliance and, more importantly, how to protect your business from audit nightmares.

The Real Cost of Subcontractor Non-Compliance

Subcontractor compliance isn’t just a paperwork hassle— it’s a critical safeguard for your business . When general contractors fail to collect proper documentation, the financial and coverage-related consequences can be devastating .

The Audit Premium: Insurance carriers routinely audit general liability and workers’ compensation policies to verify subcontractor coverage. If proof of insurance isn’t provided, carriers may classify subcontractors as uninsured. This leads to higher premium charges or additional audits, as seen in cases where premium adjustments reached tens of thousands of dollars.
No Coverage for Claims: Non-compliance doesn’t cost more; it can expose you entirely. Many general liability policies include subcontractor warranty clauses, which require certificates of insurance with additional named insured endorsements and subcontractor agreements to comply . If a claim arises involving a non-compliant subcontractor, your insurer may deny coverage, leaving your business to absorb the financial fallout.
PRO TIP: READ THE SUBCONTRACTOR AND INDEPENDENT CONTRACTOR WARRANTY IN YOUR GENERAL LIABILITY POLICY!
Higher Deductibles: Carriers may impose stricter terms during renewals for contractors with poor compliance records, including higher deductibles for claims involving subcontractor work. This creates additional financial strain, especially in cases of high-value losses.
The Hidden Cost of Non-Compliance: Carrier audits aren’t forgiving. Uninsured subcontractors can result in five- or six-figure premium adjustments, eroding profits, and straining cash flow. General liability carriers typically charge a higher rate per $1,000 of subcontractor costs than gross receipts. Similarly, workers’ compensation carriers may classify uninsured subcontractors or independent contractors in riskier codes, leading to significantly higher rates per $100 of payroll. These adjustments can severely impact your bottom line if proper compliance isn’t maintained.

How to Stay Audit-Ready: Subcontractor Compliance Best Practices

Collect Certificates of Insurance (COI):
All subcontractors must always require valid COIs before they begin work. Verify that the certificates include the necessary coverage types, limits, and endorsements, such as additional insured status for your company.
Secure Written Subcontractor Agreements:
Use legally binding agreements outlining insurance requirements and hold subcontractors accountable for coverage. These agreements also protect you in case of disputes or claims.
Track Expiration Dates:
Implement a system to monitor the expiration dates of subcontractor policies. Automated reminders can help ensure coverage remains active throughout the project.
Verify Coverage Details:
Don’t just collect COIs—review them carefully. Ensure subcontractors have the correct policy limits, endorsements, and classifications to meet your carrier’s requirements.
Audit Your Records:
Conduct regular internal audits of subcontractor compliance. Identify gaps or inconsistencies before the insurance carrier does during their audit.
Train Your Team:
Educate your staff on the importance of subcontractor compliance and how to manage it effectively. Clear communication and consistent processes can save your company from costly mistakes.

Real Shocks: Examples of Costly Audits

When it comes to subcontractor compliance, the stakes couldn’t be higher. We tirelessly educate our clients on the importance of maintaining proper documentation and insurance for every subcontractor they hire.

The examples below highlight actual audit adjustments general contractors face due to non-compliance. While these premium increases are substantial, they pale compared to the alternative —having an insurance carrier excluding claims involving uninsured subcontractors altogether. Some insurers have strict policy forms denying coverage for such claims, exposing contractors to costly liabilities fully.

Proper compliance isn’t just about avoiding hefty audit bills; it’s about ensuring that your business remains protected when it matters most.

Simplify Compliance with 4C Advising’s Done-For-You Solutions.

Managing subcontractor compliance can feel overwhelming, but it doesn’t have to be. At 4C Advising, we offer comprehensive subcontractor compliance services tailored to general contractors, taking the stress out of the process so you can focus on running your business.

Here’s how our services work:

Certificate Collection and Verification:
We handle the tedious task of collecting Certificates of Insurance (COIs) from your subcontractors and thoroughly verify each document to ensure all coverage requirements are met.
Automated Tracking and Renewals:
Say goodbye to expired insurance policies slipping through the cracks. Our system tracks expiration dates and follows up with subcontractors to secure updated certificates on time.
Customized Compliance Audits:
We regularly review your records to ensure subcontractor agreements, insurance documentation, and processes align with carrier requirements and industry’s best practices.
Gap Analysis and Recommendations:
Our team identifies potential risks or gaps in compliance and provides actionable recommendations before they become costly issues during an audit.
Expert Advisory Support:
With 4C Advising, you gain access to a team of compliance and risk management professionals ready to answer your questions and provide support when needed.

Securing Your Business Through Compliance

Ultimately, subcontractor compliance isn’t just a box to check—it’s a cornerstone of protecting your business from financial risks and coverage gaps. While the audit bills highlighted here are significant, they serve as a wake-up call to diligent record-keeping, proper agreements, and verified insurance.

Our team is committed to helping our clients navigate these complexities, ensuring their operations are compliant and safeguarded against the unexpected. Don’t leave your business vulnerable—make compliance a priority today.

Everything you should know about Workers’ Compensation experience modification factors

Mon, 18 Aug 2025 22:36:29 GMT

Small business owners in California need to know about the state’s experience rating system for Worker’s Compensation insurance. California is different from many other states in the way they manage Workers’ Compensation. If your business qualifies for an experience rating, you must use it. Understanding this rating system is integral for your small business.

The calculations used to determine your rate based on experience rating differ based on industry and your specific business operations. There is a lot of information to understand concerning how your business will be rated and how your premiums will be calculated using experience rating.

Read on to learn everything you need to know about California’s experience rating system and how to utilize it, then contact the experts at Fusco & Orsini Insurance Services to learn more.

Experience Rating

Experience rating is a rating system that uses the policyholder’s past loss history compared with industry averages to return a rating factor used in calculating a premium. This factor increases or decreases the insured’s premium according to their actual loss history, making it an accurate way to predict rates.

Since experience rating is based on actual loss results for a specific business, it is meant to incentivize business owners to reduce their losses. Experiencing fewer losses directly results in a lower premium, making it more attractive for employers to reduce the frequency and severity of Workers’ Compensation losses.

What is the Ex-Mod?

The experience modifier, or ex mod, is a factor that is developed by examining the insured’s actual loss history against the expected or average loss experience for the insured’s class of business. The calculation returns an experience modifier that will result in either a credit or debit to the insured’s premium.

Determining Eligibility

Most businesses in California qualify for an experience rating. It is based on your industry and payroll costs. Your classification code and payroll during the experience period are totaled and multiplied by the classification’s expected loss rate to determine eligibility. If the resulting number exceeds the pre-determined threshold, the business qualifies for experience rating.

It is important to note that you must utilize it once your business is deemed eligible for an experience rating. 80% of California businesses utilize experience rating; therefore, your business will likely need to use it.

Experience Period

You must determine your company’s rating effective date to find your experience period. Your company’s rating effective date is the same as the start date of your policies – if your policies begin January 1, for example, that becomes your effective rating date. Ask your agent for help with determining your company’s rating effective date.

Once you have determined your company’s rating effective date, you can calculate your experience period. The experience period is essential as the losses developed during this period are used to calculate your experience modifier. The experience period’s timeframe begins four years and nine months before your company’s rating effective date and ends one year and nine months before the rating effective date. For example, if your company’s effective rating date is January 1, 2021, your experience period spans April 1, 2016, to April 1, 2019.

Experience rating form

The experience rating form, also called the X-Mod Worksheet, rate sheet, or experience rating worksheet is provided to the insurer from the WCIRB. The completed worksheet details the company’s classifications, payroll, losses, and the experience modifier. Claims details, such as open/close status, type of injury, and the amount paid, are included. The rate sheet also lists the hypothetical loss-free rating factor, the experience modifier that would have been calculated if zero losses were reported during the experience period.

A business may request a free copy of their experience rating form annually using the Experience Rating Worksheet Request. This is the best way the company must view the data the WCIRB has on file for the company. Because the data is confidential, only the business itself may request its worksheet unless they have allowed third party access for their agent or another party.

The WCIRB

The WCIRB is a private, non-profit association in California comprised of all companies licensed to provide Workers’ Compensation insurance in the state. This list currently counts over 400 member companies.

The WCIRB provides information and data regarding Workers’ Compensation issues. They offer educational services and advisory services around rates to stimulate a healthy workers’ compensation ecosystem.

Insurance carriers submit data to the WCIRB, which aggregates it and uses it to determine classification codes and expected losses for the classification codes. Its insurer reports every Workers’ Compensation loss in the state with an estimate of claim cost. If the claim remains open, it continues to be reported. This data is used for experience rating purposes.

Ex Mod Calculations and Formulas

The formula to determine your company’s experience modification factor is as follows:

Experience modification = Actual Losses / Expected Losses

Actual losses include the indemnity costs that have been paid or are expected to be paid for Workers’ Compensation losses incurred during the experience period. On the other hand, expected losses are expected to occur based on the company’s industry. Some industries are riskier than others so that expected losses can vary depending on your company’s classification. Companies with higher payroll can expect more losses on average.

Some types of losses incurred during the experience period may affect the calculation differently. Those include death claims and those where another policy is involved either through subrogation or joint claims.

How can Ex Mod Calculations and Formulas Affect Your Premium?

Ex mod factors of less than one represent a good loss history and result in a lower premium. An experience modifier of one means an average loss history for the industry; therefore, premiums remain flat. Ex mod factors over one indicate a higher-than-average loss experience, resulting in higher premiums for the company.

How do Risk Management and Safety Programs Help?

Your experience modifier is a direct result of your company’s individual loss history; therefore, it is easy to control this factor by implementing sound safety and risk management programs. Controlling risk and managing common hazards pays off with lower premiums. Identifying the most common perils in your industry, then managing them better than your competitors results in a lower experience modifier, hence lower premiums. Your agent is a good source of help with identifying risk factors and mitigators.

Managing Workers’ Compensation risk is a win-win situation since losses are costly and should be avoided. The initial costs of the claim plus the resulting higher premium from the increased ex mod factor will cost your small business more in the long run. By reducing the frequency of claims, your ex-mod factor will also decrease. Keeping your ex-mod factor below 1 through risk management and general workplace safety means a lower premium than average in your industry. This can give your business a competitive advantage just by doing the right thing and reducing injury losses.

How do I Learn More?

Now that you know more about California workers’ compensation modification factors, you can contact Fusco & Orsini Insurance Services experts for more information. Our licensed professionals will be happy to answer any questions you have.

External Links:

https://www.wcirb.com/guide-to-workers-compensation/experience-rating

https://www.irmi.com/term/insurance-definitions/experience-modifier

https://www.wcirb.com/

https://www.wcirb.com/guide-to-workers-compensation/experience-rating/experience-rating-wksheet

Transitioning Apartment Building Coverage to the Excess and Surplus Lines Insurance Market

Mon, 18 Aug 2025 22:35:16 GMT

Last week, I moved a client who owns a five-unit apartment building in San Francisco from the ‘standard’ or ‘preferred’ market to the ‘surplus’ or ‘non-admitted’ market. Like many policyholders in California and other states, my client was non-renewed by their carrier because of the age of the structure and the increased hazard of habitational exposures. Many buildings in San Francisco are old, challenging property owners seeking coverage. My client’s structure was built in 1901. Luckily, improvements were made to the property within the last 20 years with updates on electrical, HVAC, roofing, and plumbing systems.

Monthly Limit of Indemnity for Business Income Insurance

As property markets in the insurance world continue to harden, policy non-renewals will force apartment building owners to move from the safe and sound protections of a Business Owners’ Policy (BOP) to a Commercial Package Policy or a standalone Commercial Property Policy with limits and clauses that were previously of no concern. Today, I share my thoughts on business income coverage and the monthly limit of indemnity, which you may find listed alongside the business income limit of insurance.

Business Income Actual Loss Sustained Versus Monthly Limit of Indemnity

My client became accustomed to a Business Owners’ Policy (BOP) that included Business Income coverage on an “Actual Loss Sustained” basis. Below are the primary advantages of this coverage.

Comprehensive Coverage: ALS insurance compensates for lost income, ensuring reimbursement for businesses according to their specific financial circumstances instead of a fixed limit.
Flexibility is critical: the coverage adapts to a business’s unique needs and circumstances, reflecting actual losses incurred during the period of interruption.
Compared to policies with predetermined payout limits, an ALS policy covers all actual income losses incurred during the restoration period up to the policy’s time limit, offering more extensive coverage.
Covers Fixed Costs: ALS policies generally provide coverage for continuous fixed expenses like rent, utilities, and salaries, aiding businesses in fulfilling their financial commitments even during income interruptions.
Supporting Recovery: ALS aids in businesses’ smoother and swifter recovery by covering actual losses and offering financial support until they can resume normal operations.
Tailored for Business Operations: The coverage is determined by the company’s specific financial records, ensuring greater accuracy and a true reflection of the loss’s impact.
Peace of Mind: Understanding that the policy will compensate for sustained losses gives business owners confidence and assurance against unforeseen disruptions.

Actual Loss Sustained (ALS) coverage is typically lost when shifting from a BOP to the E&S market. Instead of ALS, insureds receive a set limit for business income insurance. And with the set limit comes a coinsurance clause or a monthly limit of indemnity. In this post, I will discuss the ladder.

Understanding the Monthly Limit of Indemnity

The Monthly Limit of Indemnity refers to an option within the Business Income coverage that allows a business to choose a factor (such as 1/3, 1/4, or 1/6) to determine the maximum payment for loss of Business Income for each 30 days after the start of the “period of restoration.” This option is an alternative to coinsurance and can help avoid a coinsurance penalty (discussed in other BLOGS), especially when a business’s financial outcomes are unpredictable.

In my client’s case, we opted for a 1/3 Monthly Limit of Indemnity, with a policy limit of $150,000. Here is an example of how the limit will apply to a loss:

An example using a $150,000 Business Income Limit and 1/3 Monthly Limit of Indemnity

The Significance of Business Income Worksheets

A business income worksheet is a valuable asset for companies grappling with the level of protection required. I employed such a worksheet to assist my client in determining a $150,000 limit and a one-third Monthly Limit of Indemnity. This tool can be instrumental in making decisions about crucial protections.

We can help with your Apartment Building Insurance

We can help you transition from the standard to the E&S marketplace. Please complete this quick and easy form, and one of our brokers will contact you.

An introduction to the occurrence form general liability insurance policy

Mon, 18 Aug 2025 22:35:16 GMT

Most insurance carriers issue commercial general liability insurance policies on an occurrence form. In contrast to the claims-made policy I discussed in previous videos, the occurrence form policy covers claims arising from damage or injury during the policy period, regardless of the date of the claim filing. In this video, Mike Fusco introduces the occurrence form policy and discusses an upcoming interview with a claims specialist to provide real-life claim examples.

WHAT IS GENERAL LIABILITY

General liability insurance protects commercial policyholders from most liability exposures other than automobile, professional liability, and management liability. Furthermore, general liability does not protect businesses against losses to their property, including business interruption insurance.

THE OCCURRENCE BASIS

Insureds need to understand that for coverage to trigger under the occurrence form policy, the act giving rise to the claim must occur within the policy period. However, unlike the claims-made insurance policy, the policyholder does not need to report the claim during the policy period. In industries such as construction, the act causing damage or injury often does not occur during the policy period. The basis of an occurrence form is a big reason we constantly educate our clients on keeping consistent general liability insurance coverage.

EXAMPLES OF OCCURRENCE FORM CLAIMS FROM AN EXPERT

We will soon interview a claims expert on our podcast to provide real-life examples of claims paid under the occurrence form policy. The claims professional will also provide recommendations for business owners as follows: 1) Helpful documentation to provide during a claim; 2) Ways to avoid creating gaps of insurance; 3) Things to consider when a claim arises and; 4) Early reporting of general liability claims.

STEPS TO TAKE TO ENSURE BETTER PROTECTION

If you are unsure of your protection or don’t understand your insurance coverage, please reach us at (858) 384-1506 or complete the form below. We are happy to connect you with an associate to assist. Thank you again for visiting us!

Are car insurance premiums going up in 2025?

Mon, 18 Aug 2025 22:35:06 GMT

Article at a glance:

New car insurance minimums are in effect in California this year. The increase is to cover the person that you injure or the person that you cause damage to.
About 17% of U.S. auto insurance customers participate in usage-based insurance programs. Know what they are and how they differ from traditional auto insurance.
There are four key questions to ask when obtaining coverage.
Paying attention to your driving performance (speed, mileage, acceleration, etc.) can mean reduced premiums.
AI is scanning more data, such as prior claims, purchase history and social media, to predict future behavior.

Are car insurance premiums going up in 2025?

As we enter a new year, it’s safe to say that most of us want to maximize our dollars, crush our goals, and lead healthy, happy lives. Two-thousand-twenty-five may be the year you watch your teenager-who-was-in-kindergarten-five-minutes-ago get their driver’s license, or the year you buy the coveted carbon black metallic BMW X5 on your vision board, or the year you finally grow your team and send them out on U.S. Route 101 to do good and close deals. We see you hitting your goals – yes!

Running alongside these dreams and milestones are lots of important decisions. And often, less-than-fun ones like choosing how you will pay for, protect, and sustain what you hold close.

That’s where solid insurance guidance comes in. To us, solid guidance means your insurance broker or agent has educated you on what your policy covers – how the price/plan was determined – and, more importantly, how you can make the most of it.

What questions should I ask my auto insurance provider?

Traditional auto insurance is determined based on driving records, your credit score, vehicle types, where you live, etc. You’ve probably experienced obtaining this type of coverage at least once. Data dictates the coverage, but there are some smart questions you can ask to make sure you have the most appropriate coverage. These include:

Am I amply covered?
What is not included in my policy that I should be aware of?
Who is included in this coverage? This is especially important for work teams; for example, if your employee is using their own car for work-related activity like driving to client sites, are you required to insure them under a commercial auto policy? If you are self-employed, does your personal auto insurance cover your work vehicle? (We answer all your commercial auto insurance questions here).
Will I get a discount if I let you track my driver performance?

On the topic of tracking performance, let’s move into our next auto insurance topic: usage-based insurance.

What is usage-based car insurance?

While traditional auto insurance is commonplace, usage-based insurance is on the rise. According to a J.D. Power study, 17% of auto insurance customers in the United States participate in usage-based insurance (UBI) programs. This is more than double the percentage of customers who participated in 2016. (Clark.com).

Telematics powers “usage-based insurance” technology that can track driver behavior like speed, braking and mileage “allowing insurers to tailor premiums to individual driving habits,” says USI.

If you are a personal insurance carrier, you can request a UBI app – or UBI tracking device plugged into your vehicle – from your insurer. Note: not all insurers provide these.

The benefit of being tracked is that good driver behavior can mean a lower premium for you. “For example, if you mainly drive short distances at slower speeds, you will probably be charged less than a driver who drives long distances at high speeds,” shared NAIC. NAIC lists another benefit: “Real-time tracking may accelerate the response time if you’re in an accident.”

The downsides are privacy concerns, the novelty of user-based insurance, and of course, the fact that poor driver performance (like speeding) could increase your premium.

As of now, usage-based tracking is optional, but on the rise. Outside of personal insurance, your employer may utilize telematics to assess the performance of its fleets, with goals of improving performance and efficiency.

What does usage-based insurance mean for me?

Whether you like the idea of usage-based insurance, or it makes you grimace and you want to stick to traditional insurance, there are a few ground rules you can establish for yourself, your teen and/or your team when it comes to automobile use.

Pay attention to your own driving performance. You can often search for driver-performance stats like MPG averages or miles per trip on your electronic dashboard. Try to also be mindful of braking hard, acceleration, and speeding.
Don’t get distracted. We can’t stress this enough. Don’t be a distracted driver. Input your destination into your map ahead of time, don’t check social media, don’t text and drive, don’t put on your makeup or fix your hair…the list goes on. According to the NHTSA, 8% of fatal crashes in 2022 involved distracted drivers. Research suggests that younger drivers, especially those in their teens and early twenties, are more likely to be distracted while driving, so don’t forget to emphasize distraction-free driving with your teen.

Is AI going to change my auto insurance premium?

As shared by Dustyne Bryant in Forbes, AI will play a role in shaping auto insurance premiums in 2025. “Technology can scan through large data to find prior claims, social media evidence, purchase history and more to predict future behavior at a much faster rate than any human underwriter can.”

Unlike user-based insurance which requires you to opt in, AI is something that can impact everyone purchasing insurance.

What else is changing for auto insurance in 2025?

Well, we have an unpopular opinion here: an increase in car insurance premiums are overdue. Let us explain.

New car insurance minimums are in effect in California this year. In fact, this is the first time statewide minimums have been increased for bodily injury liability and property damage in more than 50 years, according to a San Diego news report.

“This isn’t covering you, the policy holder, it’s covering the person that you injure or the person that you cause damage to — the vehicle or the property — if you’re at fault in an accident,” our CEO Mike Fusco explained in the news report.

While you may experience an increase in premiums, you’re getting an increase in coverage. You should “think about it as asset protection,” adds Fusco.

What do all of these changes mean for me?

While the auto insurance industry continues to change, our advice remains the same: have your insurance broker or agent educate you on what your policy covers – how the price/plan was determined – and more importantly, how you can make the most of it. Continue practicing good driving behaviors (whether they are tracked or not) because it’s the right thing to do.

In 2025, we hope you get the dream car, establish good ground rules with your new teen driver, and empower and protect your team on the road.

We know navigating auto insurance policies and especially commercial auto policies can be less than fun. We also know you’ve got dreams to accomplish and milestones to hit this year. That’s the very reason we’re ready to provide you with the solid guidance you need.

Reach out by completing this super brief form, and we’ll get in touch very soon!

A Summary of the $2 Trillion Stimulus Package

Mon, 18 Aug 2025 22:32:51 GMT

Below is a brief summary of how the new $2 trillion stimulus package can help small businesses.

Unlike other SBA loans, owners do not have to put up collateral or personally guarantee the loans. They also are not required to search for a loan elsewhere before applying for the SBA loan.
Interest rates cannot exceed 4%, and the maximum loan amount is $10 million.
Part of the loan can be forgiven. Costs related to payroll, including health care, mortgage or rent and utility payments incurred in the eight weeks after you receive the loan can be deducted from the loan amount and not repaid. However, if you reduce your headcount at that time, that will also decrease the amount of loan forgiveness. Adding headcount will increase the amount forgiven.
Independent contractors’ wages can be included as employee payroll costs in the loan, according to the Chamber of Commerce.
The bill includes a payroll tax holiday. Owners have until 2022 to pay 2020 payroll taxes but will need to pay 50% by the end of 2021.

We encourage you to do additional research and download this resource: Understanding the Historic 2 Trillion Stimulus Package.

We are here if you’d like to talk.

Regards,

Mike Fusco

858-384-1507

A Note of Thanks and Appreciation

Mon, 18 Aug 2025 22:32:50 GMT

Dear F&O Friends and Family,

We want to extend our warmest wishes for a peaceful holiday season and an abundant new year.

As we reflect on the year, we’d like to thank you for your continued business and support. This was a year of many changes for our team as we worked to improve your experience with an updated client service center, streamlined policy purchasing and communication platforms, and a full-time claims and audit coordinator to assist you.

Most notably, over the past 12 months, we launched a new management system, which means enhanced data security, quicker service and certificate issuance, a new client portal and mobile application, and more improvements to come!

This year, we hired new team members to serve you and partnered with additional providers to improve our offerings.

As we look toward 2020, our tenth year (!!) in business, we know the best is yet to come! We invite you to tune in for the fun, as we’ll be rolling out 10-year-anniversary giveaways on our social media channels, plus new videos and webinars to assist you.

Again, we thank you for your camaraderie and wish you many sweet and memorable moments over the days to come.

~ The F&O Family

Holiday Hours:

12/23/2019 – Closing at 4:30 PM.

12/24/2019 – Closed

12/25/2019 – Closed

12/31/2019 – Closed

1/1/2020 – Closed

An Introduction to the Fusco Orsini & Associates Client Portal for Businesses

Mon, 18 Aug 2025 22:32:40 GMT

At Fusco Orsini & Associates, we’re dedicated to making the complex insurance world easy for our clients. For that reason, we’re bringing you a brand new Client Portal. The Portal provides all clients a more straightforward way to manage their insurance in one location at no additional cost. To access the portal, click here or find the link on our homepage or the service center.

Once logged in, the Portal’s home screen will display the agency’s personnel team who can help with your policy, along with quick links and documents your FOA team uploaded for you.

Stay in Control with the Fusco Orsini & Associates Client Portal! ��

At Fusco Orsini & Associates, we strive to provide seamless access to your insurance needs—anytime, anywhere! Our client portal is designed to make managing your policies simple and stress-free. Here’s what you can do:

✅ Access Important Documents – Quickly retrieve and download essential insurance documents.

✅ Print Auto ID Cards – Need proof of insurance? Print your auto ID cards instantly.

✅ Manage Your Policies – Stay updated with your policy details and make changes as needed.

✅ View and Download New Documents – Get notified when new policy documents, endorsements, or certificates are available.

✅ Mobile Access – Scan the QR code to download our app and manage your insurance from your phone!

Our client portal, with 24/7 accessibility, ensures that you have everything you need at your fingertips. Log in today and take control of your insurance experience!

Looking for a Better Insurance Partner?

We know what it takes to be an excellent partner to our clients. Click here to get started!

A Guide to Workers Compensation Rates

Mon, 18 Aug 2025 22:29:10 GMT

Workers compensation is necessary, not evil. It protects you, the employer, from being sent into financial dire straits in the event that an employee is hurt on the job. Before workers compensation, employees would sue their workplace to recoup costs after an injury, and the employer would be forced to shell out steep sums of money that they hadn’t planned on spending.

Today, we as employers have the luxury of protecting ourselves from these unexpected costs, by taking out a workers compensation plan. “But how much do I need to pay for this protection?” you might be asking yourself. Read on to learn more about how these rates are formulated.

It’s important to note that you should be keeping careful records of your employees’hours and days worked. This is because laws came into effect in 2008, requiring insurers to perform audits on all new policies, making it easier to identify which classification employees fall into. The different classifications tell you how much you’re paying on your premium per $100 of payroll for those employees. So, it’s vitally important for you to keep careful records of hours worked for each employee each day including daily start and stop times.

Let’s dig in and define a few terms that come into play when we talk about workers compensation rates:

What’s the difference between an “advisory pure premium rate” and an “insurer’s rate”?

The difference between the two is that an advisory pure premium rate is a recommendation from the Workers Compensation Insurance Rating Bureau of California (WCIRB) to the California Department of Insurance that helps to determine insurer rates. The advisory pure premium rate accounts for claims/losses as well as a loss adjustment expense. The insurer’s rate includes both of those factors but also includes administrative costs including taxes and commissions.

What do dual wage classifications mean?

Dual wage classifications mean that there are two classifications for a particular industry segment, based on wage. For example, instead of there being one rate for “steel framing – light gauge,” there are two: #5632 for steel framing – light gauge employees who make less than $29/hour and #5633 for those who make $29/hour or more.

Each of these dual wage classifications has a different advisory pure premium rate. As of this writing, there are sixteen dual wage classifications. The WCIRB has a handy chart so you can look up the rates yourself, once you know your classification(s).

How much can I expect to spend on my worker’s comp insurance?

The premium you pay is determined in large part to your business’ industry classification(s).

The basic formula is: Insurance rate for your classification(s) x total payroll of the employees in each of your classifications.

Workers comp rates are per $100 of payroll, so if you have a rate of $5, and you have $200 of payroll, your premium is $10.

Next time you get that premium bill, you will better understand how workers’ compensation rates are determined. If you want to know more about how a workers’ compensation policy can protect you and your business, email us a question. Or, if you’re looking to take out a new policy, why not request a quote?

7 Key Coverages that All Businesses Should Have to Protect from Hurricanes

Mon, 18 Aug 2025 22:28:23 GMT

Our heartfelt sympathies go out to everyone affected by Hurricane Beryl’s devastation. We send our thoughts and best wishes to the people of the greater Houston area and neighboring communities as they navigate this difficult period.

Hurricane Beryl, a powerful and destructive force of nature, is a stark reminder of the havoc hurricanes can wreak on businesses. In recent years, Beryl has become synonymous with the devastating impact of hurricanes, particularly in coastal regions. As the season’s first hurricane, Beryl rapidly intensified, surprising many with its speed and ferocity. This unpredictable nature of hurricanes underscores the importance of being well prepared.

The aftermath of Hurricane Beryl led to widespread property damage, prolonged power outages, and significant economic disruption. Many businesses affected by its path incurred substantial financial losses, mitigated with sufficient insurance coverage. This incident emphasizes the need for comprehensive coverage to safeguard against such catastrophic events.

This article will explore seven critical insurance coverages every business should consider to protect against hurricane damage. Understanding and implementing these coverages can improve a business’s readiness for hurricanes’ unpredictable and often devastating consequences, ensuring resilience and operations continuity with minimal interruption.

Coverage #1: Wind Coverage

Wind coverage is essential for hurricane protection. However, wind damage is often not included in standard business insurance policies in many hurricane-prone areas. This omission can leave businesses vulnerable to the catastrophic effects of hurricane winds, resulting in significant property and infrastructure damage.

Business owners should carefully review their insurance policies to determine if wind damage is covered. If wind coverage is excluded, the policy will not cover the costs of repairs or replacements due to hurricane wind damage, which could impose considerable financial strain on the business.

Business owners in areas susceptible to hurricanes should consider obtaining a Difference in Conditions (DIC) policy to reduce this risk. This policy type is intended to cover perils, such as wind damage, that standard policies do not. A DIC policy enables business owners to protect against all hurricane-related risks, including the often-overlooked risk of wind damage.

Ultimately, securing wind coverage through a DIC policy is vital for businesses in hurricane-threatened regions. This coverage provides financial protection and supports a quicker and more efficient recovery after a hurricane.

Coverage #2: Flood Insurance

Flood insurance is a crucial safeguard for businesses in areas prone to hurricanes. Like wind damage, flood damage is typically not covered by standard business insurance policies, leaving businesses vulnerable to considerable losses. Hurricanes often cause heavy rainfall and storm surges, resulting in significant flooding.

Flooding can damage buildings, equipment, inventory, and other critical assets. Businesses that lack flood insurance are responsible for all repair and replacement costs, which can be financially devastating. With the heightened risk of flooding during hurricane season, securing adequate flood insurance is vital for business owners.

Flood insurance policies are designed expressly to address damages from flooding. They cover both the structure and its contents, thereby lessening the financial burden of flood damage. Businesses can access flood insurance through the National Flood Insurance Program (NFIP) or private insurers offering customized flood coverage.

Securing a flood insurance policy equips business owners with comprehensive protection against one of hurricanes’ most frequent and destructive consequences. This step is instrumental in enabling a business to recover and continue operations after experiencing a significant flood.

Coverage #3: Business Interruption Insurance

Business Interruption Insurance is vital for post-hurricane recovery, as it can prevent a business from permanently shutting down. Hurricane damage may halt business operations for an extended period, causing significant income loss and challenges in meeting continuous expenses such as payroll, rent, and utilities.

Also known as Business Income Insurance, it provides financial assistance during such interruptions. It compensates for lost income and fixed costs while business operations are suspended, including losses due to physical damage to the premises or mandatory government shutdowns after a hurricane.

Additionally, this insurance can cover extra expenses incurred to minimize downtime, like the costs associated with relocating to a temporary site, expediting repairs, or renting equipment.

Without Business Interruption Insurance, businesses may struggle to weather the recovery period following a hurricane. This coverage is crucial to ensure that a temporary stoppage does not result in a permanent closure, offering the necessary financial support to maintain operations until complete restoration. It is an indispensable part of a comprehensive risk management strategy for businesses in hurricane-prone regions.

Coverage #4: Utility Service Interruption Insurance (Off-Premises Power Coverage Endorsement)

Utility Service Interruption Insurance, also known as the Off-Premises Power Coverage Endorsement , is crucial for businesses in areas prone to hurricanes. These natural disasters frequently lead to extensive power outages, which disrupt business activities and can cause substantial financial losses.

This type of insurance covers the economic effects of utility service disruptions due to damage to utility lines or facilities located off the premises. Covered utilities include electricity, water, gas, and telecommunications. Damage to the infrastructure from a hurricane can result in outages that halt business operations.

Utility Service Interruption Insurance aims to alleviate the financial impact of these outages by compensating for lost income and additional expenses incurred during the disruption. This may cover the costs of acquiring temporary power solutions like generators or moving operations to a location with reliable utilities.

Incorporating an Off-Premises Power Coverage Endorsement into their insurance policy allows business owners to secure extensive protection against the consequences of utility service interruptions. This is especially vital for businesses dependent on uninterrupted power, such as manufacturing, healthcare, or technology.

Utility Service Interruption Insurance offers essential financial assistance to businesses impacted by hurricane-induced power outages. It supports the continuity of business operations and lessens the economic strain of service disruptions, thus enabling a swifter and more efficient recovery.

Coverage #5: Debris Removal Endorsement

Managing the debris left in its wake is one of the initial and most challenging tasks for business owners following a hurricane. The havoc wreaked by strong winds and floods can spread debris over business premises, encompassing downed trees, construction materials, and other detritus. Debris removal is crucial not just for restarting business activities but also for guaranteeing the safety and accessibility of the premises.

A Debris Removal Endorsement is a vital component of a business insurance policy, offering coverage for expenses related to the cleanup and disposal of debris after a hurricane. Conventional property insurance policies might provide limited debris removal coverage , often inadequate for the thorough cleanup after a major storm. This endorsement bridges this shortfall, ensuring businesses possess the necessary financial means for the cleanup efforts.

This endorsement encompasses costs like labor, equipment hire, and disposal charges needed to remove hurricane debris from the property. The value of this coverage is significant, given that the costs for debris removal can be considerable, particularly when specialized machinery and expert services are required.

Incorporating a Debris Removal Endorsement into their insurance policy allows business owners to be well-equipped to deal with a hurricane’s consequences. This coverage facilitates faster recovery and eases the financial strain of the cleanup process, enabling business owners to concentrate on resuming regular operations and reducing downtime.

Coverage #6: Spoilage Coverage

Spoilage Coverage is a crucial insurance provision for businesses that handle perishable goods , such as those in the food and beverage industry, pharmaceuticals, or any company relying on temperature-sensitive products. Hurricanes can lead to prolonged power outages and equipment failures, resulting in the spoilage of perishable items. With proper coverage, the financial loss from spoiled inventory can be manageable.

Spoilage Coverage protects businesses from the economic impact of perishable goods becoming unsellable due to a hurricane. This coverage typically includes compensation for the value of the spoiled goods and may cover additional expenses related to the disposal of the spoiled items.

Hurricanes can cause direct damage to refrigeration and climate control systems or indirectly through power outages that last several days. Spoilage Coverage ensures businesses can bear the total cost of lost inventory. This coverage is essential for companies where the value of perishable goods represents a significant portion of their inventory.

Business owners can mitigate the financial risks of losing perishable goods during a hurricane by securing Spoilage Coverage. This insurance ensures that businesses can recover the costs of spoiled inventory and continue operations without a substantial financial setback. For companies in hurricane-prone areas, having Spoilage Coverage as part of their comprehensive insurance plan is essential for protecting their bottom line and ensuring long-term viability.

Coverage #7: Civil Authority Coverage

Civil authority Coverage is a vital element of a business insurance policy, especially for businesses in Civil authority Coverage is a vital element of a business insurance policy, especially for businesses in areas prone to hurricanes. It offers financial protection when a government entity restricts access to a business property due to a covered disaster, such as a hurricane.

In the event of a hurricane, governmental bodies may enforce mandatory evacuations or limit access to specific regions to protect the public. These actions can halt business operations, even if the storm doesn’t directly damage the property. This can lead to significant income loss, affecting a business’s financial commitments and ongoing operations.

Civil Authority Coverage reimburses lost business income and additional expenses from these government-imposed restrictions. The coverage is activated when:

A civil authority blocks access to the insured property.
The restriction is due to a covered peril’s physical damage to adjacent properties.

For instance, if a hurricane severely damages the local infrastructure, prompting authorities to limit access for safety reasons and to aid recovery efforts, Civil Authority Coverage would offset the income loss during the access restriction period.

This coverage is crucial for businesses to ensure they are supported when government measures, enacted for the public’s benefit, temporarily impede their activities. Including Civil Authority Coverage in their insurance plans allows business owners to protect their revenue from unexpected disruptions and promotes a more efficient post-hurricane recovery.

To sum up, Civil Authority Coverage is essential to a thorough business insurance approach. It offers vital financial protection after government-enforced shutdowns or access limitations following a hurricane.

Conclusion

Hurricanes like Beryl remind us of nature’s unpredictable and devastating power. As a business owner, it’s crucial to be proactive in securing the proper insurance coverage to protect your livelihood. From wind and flood insurance to spoilage and civil authority coverage, each type is vital in ensuring your business can weather the storm and recover quickly.

Please don’t wait until it’s too late. Review your insurance policies and consider adding these essential coverages to safeguard your business against the next hurricane. Comprehensive insurance protection provides peace of mind and ensures the continuity of your operations and financial stability.

Call to Action:

Is your business fully protected against hurricanes? Please get in touch with us today to review your insurance needs and ensure you have comprehensive coverage to protect your business from the next big storm. Our team is ready to help you navigate the complexities of hurricane insurance and find the best solutions tailored to your unique needs. Don’t leave your business vulnerable—secure your protection now!

Click here to get started!

This article was developed with the assistance of OpenAI. (2024). ChatGPT (4o) [Large language model]. https://chatgpt.com