Tag Archive for: Charter School Insurance

Charter School Insurance: EPLI Claim Scenario

in

Every few months we like to share information on various claims experienced by charter schools.  While the names and any personal information have been removed, the claims are still very real, and important to take note of.

TUV Charter School terminated a long-time administrator for alienating employees and parents and disinterest in his job. The manager was 59 years old when the termination took place, and TUV checked off “other” instead of “poor performance” on the termination form as the reason for the termination.

The administrator filed a charge of discrimination with the Equal Employment Opportunity Commission, alleging he was terminated because of his age. In his charge, he stated that he had always received regular merit pay increases, was replaced by a worker in his 30s, and that some members of senior management had made comments about needing “to get rid of the old guys.”

The administrator subsequently filed a lawsuit against the school seeking two years of lost wages and benefits, as well as compensation for emotional distress. Although TUV believed it was innocent of the allegations, the school determined that defending against the lawsuit would be costly. The case eventually settled out of court for $250,000, while expenses totaled more than $60,000.

 

What is symbol 1 mean on my auto policy?

in ,

 

What are “covered auto symbols” on a commercial auto policy (BAP)?

Commercial auto insurance policies protect several different parties; you, your vehicle and others. Covered auto symbols allow you to customize the extent that coverage is extended to these parties. The symbol may pertain to either a kind of vehicle (i.e. private passenger) and/or the vehicle’s ownership status (i.e. owned, hired, etc.).

The applicable symbols are numbered 1 through 9, and are found on the declarations page of your business automobile insurance policy corresponding to applicable coverage areas such as liability, uninsured motorist, medical payments, etc.

  • Symbol 1 – Any auto
  • Symbol 2 – Owned autos only
  • Symbol 3 – Owned private passenger autos
  • Symbol 4 – Owned autos other than private passenger autos
  • Symbol 5 – Owned autos subject to no-fault benefits
  • Symbol 6 – Owned autos subject to compulsory uninsured motorists law
  • Symbol 7 – Specifically described autos only
  • Symbol 8 – Hired autos (leased, hired, rented, or borrowed)
  • Symbol 9 – Non-owned autos (owned by employee or partners of the insured)

This article will focus on liability coverage and why symbol “1” is the best possible choice.

Why should you choose symbol “1” for liability coverage on a commercial auto insurance policy?

Symbol “1” provides coverage to any auto that is owned, hired, borrowed, or otherwise utilized by the named insured. If symbol “1” is indicated, no other symbols are needed because symbol “1” encompasses all of them.

Each of the other symbols that can be applied on your business auto policy is limited to certain types of covered autos. For example, symbol “7”, another commonly used symbol for liability, provides coverage only for specifically described autos. In other words, only autos that are documented with the insurance carrier will be covered under the policy. But what happens when you purchase a new vehicle? While some policies provide a 30 day grace period of coverage to give time for the insured to report newly acquired autos, some do not. If the insured fails to report the purchase of the new auto to the carrier and an accident occurs, the insured would not be covered. Symbol “1” does not have this limitation. Any auto that the insured acquires during the policy period is automatically covered without reporting to the insurance company.

Because of the breadth of symbol “1” coverage, it can offer peace of mind to the insured who can be assured that even as their fleet of vehicles grows or their auto usage changes they have coverage through their business auto insurance policy.

Can a combination of other symbols be as effective?

A common alternative to Symbol “1” on your auto commercial insurance is a combination of Symbol’s “7”, “8” and “9”. The benefit of this combination is potentially lower premiums due to coverage extending only to specifically described, hired, and non-owned autos, rather than any auto. This may seem to add up to similar coverage at a lower price however there are a few gaps and other concerns.

First, as described above, newly acquired vehicles need to be reported on a timely basis to the insurance carrier. Failure to report new autos to have them added to your commercial vehicle insurance policy would leave the insured with an uncovered exposure.

Second, Symbol “8” does not provide coverage to the named insured if he/she rents the car in his/her personal name rather than the business name, a common mistake. Symbol “8” also specifically states that an employee car borrowed by the named insured is not considered a “hired” vehicle.

Third, Symbol “9” only extends liability protection to the named insured for the employee’s use of their personal vehicle on the named insured’s behalf. Coverage gaps appear when the named insured is a sole proprietor, partner or an LLC. Since these individuals are considered to be the insured and the definition excludes coverage for any insured that borrows an “auto” from an employee, there is no liability coverage under the business automobile policy. Symbol “1” does not have this exclusion.

And finally, Symbol “9” extends coverage to specifically defined non-owned autos “used in connection with your business.” Without a clear definition for what a “connection” entails, this coverage is debatable.

 

What does general liability insurance protect against?

in

Business liability insurance coverage is something most schools simply must have, so it is essential that you understand what it does and doesn’t cover.

What’s typically protected by commercial liability insurance coverage

Business is inherently risky, but business liability coverage safeguards against many known and unknown risks. Commercial liability insurance coverage protects you, your school and your employees from claims involving bodily injury or property damage, up to the limits of your policy.

Policies shield you from the expense of out-of-court settlements, litigation and judgments awarded by courts.

Lawsuits, investigations and settlements

If damages are filed against you or you’re sued, general liability insurance covers the insurance company’s investigation and attorney expenses, any judgment or settlement, medical expenses in case of injury and bonds if they must be subsequently posted.

Injury damages

Claims can arise from bodily injury or property damages resulting from accidents on your premises or from your products, your operations or advertising for your business.

What’s typically NOT protected by business liability coverage

Here are some situations that would not be protected by general liability insurance coverage.

Employee injuries.  Workers compensation is the insurance you would need to protect your employees when they are hurt on the job.

Professional mistakes. Business liability insurance coverage won’t cover a professional mistake, but professional liability will. It insures against mishaps that may occur as you offer your opinion, solution, service or recommendations in the course of business.

Auto-related coverage. Business liability coverage does not protect you against auto accidents. Purchase a separate auto policy to protect your business.

Punitive damages. Though there can be exceptions, a general business liability policy rarely pays for punitive damages resulting from a lawsuit.

Intentional acts. General business liability insurance does not cover damages or injuries resulting from expected or intentional acts. For example, if an employee assaults a customer, your business liability coverage would not cover the damages if they sue. But if the employee was defending himself or the company from a criminal act, the liability insurance would provide coverage.

Your work. Referred to as the “workmanship” exclusion, and is common in general liability policies. Insurance policies do not respond to what would normally be picked by a company’s warranty for their work.