If you’re like me, I’m sure you are completely tired of the words “pandemic” and “unprecedented”, and yearn for a return to our normal lives.  Unfortunately, it doesn’t seem that we are destined to return to our old “normal” anytime soon so we must evolve and embrace our new “normal” in many facets of our lives.  Due to COVID’s physical distancing guidelines and social unrest directed at law enforcement, we need to bring everyone up to speed on the importance of documenting all evidence at the scene of an accident.  In normal times, we all relied upon law enforcement to come to the scene of an accident and document the physical aspects of the incident, which generally led to someone being charged for the accident which provided great insight for the claims adjusters to follow in managing the claims and litigation process.  We are now in August 2020, and many Cities, Counties and States are simply not responding to vehicle accidents unless there is resulting Bodily Injury or a vehicle has to be towed.  We recently had a client in Texas whose vehicle was hit by another vehicle but with no Bodily Injury, law enforcement was contacted and they refused to come to the scene.  The client exchanged insurance information at the scene, but did not capture any evidence to help show they were not at fault. Now the other driver that hit him is stating it was not their fault and as a result, their insurance carrier has denied the claim filed by our client.  Clearly this is a terrible situation for our client and we want to try and mitigate it from happening to anyone else.  So, whether law enforcement responds to your incident or not, be proactive in protecting yourself by gathering the following information as quickly as possible:

• Ensure your own safety
• Do not admit liability, let the facts prove who was at fault
• Take pictures and/or video from every angle of the scene
• Show and comment on the view each driver had prior to impact
• Take pictures and/or video of the entirety of the vehicle including license plates
• Take pictures and/or video of any skid marks or debris from the vehicles involved
• Take pictures and/or video of the environment, commenting on traffic control signals, road width, blind spots, as well as damage to the road or weather conditions that may have contributed to the accident
• Identify and obtain contact information of witnesses who could corroborate the facts surrounding the accident
• DO NOT TAKE PICTURES OR VIDEO OF INJURED PERSONS

We hope you are not involved in any accidents, but if you are, please take charge of your defense by quickly documenting the above while waiting to learn if law enforcement is going to respond or not.  Even if law enforcement responds, your ability to recite and provide the above information will go a long way towards their analysis of the incident, as well as help your claims adjuster protect your interest to the fullest extent possible.

Interim Recommendations for U.S. Non-emergency Transport Vehicles that May Have Transported Passengers with Suspected/Confirmed Coronavirus Disease 2019 (COVID-19)

People who are known or suspected to have COVID-19 may use non-emergency vehicle services, such as passenger vans, accessible vans, and cars, for transportation to receive essential medical care. When transporting a known confirmed positive passenger, it is recommended that drivers wear an N95 respirator or facemask (if a respirator is not available) and eye protection such as a face shield or goggles (as long as they do not create a driving hazard), and the passenger should wear a facemask or cloth face covering. Occupants of these vehicles should avoid or limit close contact (within 6 feet) with others. The use of larger vehicles such as vans is recommended when feasible to allow greater social (physical) distance between vehicle occupants. Additionally, drivers should practice regular hand hygiene, avoid touching their nose, mouth, or eyes, and avoid picking up multiple passengers who would not otherwise be riding together on the same route.

CDC recommends that individuals wear cloth face coverings in settings where other social distancing measures are difficult to maintain, especially in areas with significant community transmission. Cloth face coverings may prevent people who don’t know they have the virus from transmitting it to others; these face coverings are not surgical masks, respirators, or personal protective equipment (PPE). Cloth face coverings should not be placed on anyone who has trouble breathing, or is unconscious, incapacitated or otherwise unable to remove the mask without assistance.

 

The following are general guidelines for cleaning and disinfecting these vehicles. Similar guidance can be found for cleaning and disinfecting EMS vehicles used to transport persons with suspected or confirmed COVID-19.

At a minimum, clean and disinfect commonly touched surfaces in the vehicle at the beginning and end of each shift and between transporting passengers who are visibly sick. Ensure that cleaning and disinfection procedures are followed consistently and correctly, including the provision of adequate ventilation when chemicals are in use. Doors and windows should remain open when cleaning the vehicle. When cleaning and disinfecting, individuals should wear disposable gloves compatible with the products being used as well as any other PPE required according to the product manufacturer’s instructions. Use of a disposable gown is also recommended, if available.

• For hard non-porous surfaces within the interior of the vehicle such as hard seats, arm rests, door handles, seat belt buckles, light and air controls, doors and windows, and grab handles, clean with detergent or soap and water if the surfaces are visibly dirty, prior to disinfectant application. For disinfection of hard, non-porous surfaces, appropriate disinfectants include:
  • EPA’s Registered Antimicrobial Products for Use Against Novel Coronavirus SARS-CoV-2external icon, the virus that causes COVID-19. Follow the manufacturer’s instructions for concentration, application method, and contact time for all cleaning and disinfection products.
  • Diluted household bleach solutions prepared according to the manufacturer’s label for disinfection, if appropriate for the surface. Follow manufacturer’s instructions for application and proper ventilation. Check to ensure the product is not past its expiration date. Never mix household bleach with ammonia or any other cleanser.
  • Alcohol solutions with at least 70% alcohol.

• For soft or porous surfaces such as fabric seats, remove any visible contamination, if present, and clean with appropriate cleaners indicated for use on these surfaces. After cleaning, use products that are EPA-approved for use against the virus that causes COVID-19external icon and that are suitable for porous surfaces.

• For frequently touched electronic surfaces, such as tablets or touch screens used in the vehicle, remove visible dirt, then disinfect following the manufacturer’s instructions for all cleaning and disinfection products. If no manufacturer guidance is available, consider the use of alcohol-based wipes or sprays containing at least 70% alcohol to disinfect.

Gloves and any other disposable PPE used for cleaning and disinfecting the vehicle should be removed and disposed of after cleaning; wash hands immediately after removal of gloves and PPE with soap and water for at least 20 seconds, or use an alcohol-based hand sanitizer with at least 60% alcohol if soap and water are not available. If a disposable gown was not worn, work uniforms/clothes worn during cleaning and disinfecting should be laundered afterwards using the warmest appropriate water setting and dry items completely. Wash hands after handling laundry.

Content source: National Center for Immunization and Respiratory Diseases (NCIRD), Division of Viral Diseases, CDC Coronavirus Disease 2019 (COVID-19)

We can all agree the COVID-19 virus has flipped our nation on its side. Some industries seem to be thriving while others are floundering. Grocery stores are empty, children are finishing out their school year online, people are having to cancel vacations, and all non-essential medical appointments are postponed until further notice. In the meantime, bills are still due. Now the question becomes, what can be done to help navigate these unfamiliar waters? While we cannot speak to what banks, credit card companies, utility providers, etc. are and/or will be doing to help their customers, we can offer insight as to what actions some insurance carriers within the NEMT arena are taking during this pandemic.

Unfortunately, each insurance carrier is different and there isn’t one set action or accommodation to cover the NEMT industry as a whole. Over the past two  weeks we’ve seen some carriers allow their insureds to complete a “Temporary Out of Service” form that essentially allows their insureds to list vehicles currently not running trips, and provides a premium reduction on said vehicles for the next 45 days. Other companies are relaxing their normally stringent requirements, allowing more flexibility for insureds to temporarily remove unused vehicles from their policy.

While the options mentioned above might seem to offer immediate relief, it may take longer than expected, and there are two primary reasons for this: First, normal turnaround time to process an endorsement (change to policy) can range anywhere from two weeks to 45 days (pending workflow of the insurance company). Second, the majority of insurance premiums in the NEMT industry are financed via a Premium Finance Company (lending companies for insurance premiums). It is very important to understand that premium finance companies are NOT insurance companies. If your insurance policy is financed through a premium finance company, credits for changes made to your policy have to be sent from the insurance company to the finance company and applied to your loan. Unfortunately, this process adds additional time to the “relief” company owners are looking for.

So, what do you need to do? The most important thing to do is be proactive. If you are in a position where you need assistance, don’t expect companies to reach out to you first. While everyone is doing their best during this time, the truth is, this pandemic is uncharted territory for all of us. Many companies that are able to remain in operation are doing so remotely, which again, is a new process for many people. Be proactive, take the first step. There are people ready and willing to assist you with whatever your specific situation may be.

We will make it through this pandemic. Our Country and our people are stronger than this virus. There are sure to be tough times in the upcoming weeks, but together we will successfully Navigate the COVID-19 Waters.

Your Sovereign Risk Team

You may have asked yourself “what do I get paid for my vehicle in the event of a total loss?”.  The answer depends on the coverage you selected when originally securing coverage.  The two most common types of automobile valuations are Stated Value and Actual Cash Value.

Stated Value is the value you as the insured are “stating” the vehicle to be worth. However, this does not necessarily mean you will be paid the full stated amount should you suffer a total loss.  Insurance companies design the coverage to allow for the ability to pay out the stated value or the actual cash value, whichever is lower. Often insureds will use the Stated Amount approach in an effort to save money on their premium. However, this plan can adversely affect the insured in the event of a total loss if the stated value was underestimated at policy inception. For example, when first insuring the vehicle, the insured provides a stated value of $15,000 knowing that the vehicle is actually worth $25,000. Should a total loss occur shortly after policy inception, the insurance carrier pays out the lesser of Stated Value and Actual Cash Value, resulting in a payout of $15,000 (minus any deductible) vs. what could have been closer to $25,000 (minus any deductible).

Actual Cash Value (ACV) is a valuation process used by insurance carriers to determine how much will be paid to an insured when a total loss occurs. Regardless of what value an insured might list for their vehicle(s) at policy inception, the claim payout is based on the vehicle’s market/book value at the time of loss, less any deductible that might apply. For example, you were just involved in an accident that resulted in the total loss of a vehicle you purchased brand new three years ago for $25,000.  The insurance carrier is going to evaluate many aspects of your vehicle such as year, make, model, mileage, etc. and will determine what they believe the Actual Cash Value of the vehicle to be.  Once the insurance company determines the ACV, they will subtract any deductible you might have, and provide you with the remaining payment (ACV of $15,000 – $1,000 Deductible = $14,000 payout).

Please note, whether you have Stated Value or Actual Cash Value, the insurance carrier will pay any monies due to a lien holder on the vehicle in an effort to satisfy the loan, before any funds can be provided to you as the insured.

Insurance. There’s probably not a more disliked or misunderstood word for paratransit transportation companies. It’s very expensive and probably seems illogical that it cost so much. The first step in controlling your insurance financial destiny is to truly understand as much as possible about the entire insurance distribution process. Unlike low hazard industries, the big direct writing insurance companies (i.e. – Allstate, Progressive, State Farm, etc.) will not write paratransit as a class of business, which requires you to work with an independent agent. Selecting your independent agent is one of the most important decisions you will make in controlling your insurance cost and securely positioning your company for financial success.

We believe the following key characteristics need to be fully explored to ensure you are getting the best overall representation and return for your money:

1. Industry Experience. Non-emergency medical transportation is unlike any other form of passenger transportation as respects standards of care, levels of service, payment sources, contractual obligations, vehicle and driver requirements, and more. Your agent needs to be widely versed in all aspects of the industry in order to help mentor your company operationally which is a key component to insurance companies underwriting evaluations, where coverage terms and pricing are determined.

2. Carrier Representation. Independent agencies must “contract to represent” an insurance company, whereby there’s a formal contractual relationship between the agency and the insurance carrier that specifies all aspects of the business relationship. Very few insurance companies are currently writing paratransit operators at this time so it’s critical that your agent be contracted with as many insurance carriers writing in this industry as possible so that your options are maximized.

3. Agency Infrastructure and Commitment. Agencies are typically small companies themselves, working to balance profitability and performance. There are system tools that agencies can purchase that enhance the agency’s operational efficiencies while simultaneously enhancing client engagement, simplify communications, include better payment options, source lower cost driver screenings, and more. Is your representing agency investing in their people and systems to ensure you, the paying client, have the best communications and lowest operational costs?

4. Personal Relationship. All business engagements have some form of relationship, but has it evolved to the personal level? At the personal level both parties are able to “open up” and be completely blunt and honest with each other, allowing a level of mutual communication that cannot be held otherwise. During that process both parties can learn and grow from each other, creating mutual respect and in some cases lifelong friendships.

Independent agents are generally hardworking people who are trying to make a living, just like you. They have many of the same challenges that you do from recruiting, training and mentoring employees as well as managing their cash flow and payment of bills. When you have an agency relationship that meets the four characteristics above you have reached the pinnacle, and should be thrilled in your investment of time to find and build that relationship. If you don’t have these components in your agency relationship, we encourage you to keep looking because it can and will make a difference to the success of your company in many ways beyond just the procurement of insurance.

Technology is an invaluable asset to every organization, no matter how big or small, and the speed in which technology continues to advance is both amazing and alarming. While technology provides countless benefits to business of all shapes and sizes, it also brings along it’s fair share of problems. The truth of the matter is, that if your company has devices that are connected to the internet, it is only a matter of time before a cyber security incident occurs; regardless of risk controls your organization may have in place.

As of 2018, more than 7 out of 10 of all U.S. based organizations were affected by a data breach in some way or the other. 46% of U.S. based organizations experienced a breach incident in the past year. According to Symantec, the average cost of a cyberattack, for a small to medium sized business, is $188,242. To make matters worse, 60% of all small to midsized businesses that are compromised go out of business six months after. While these numbers are staggering, what is more staggering is that 62% of organizations surveyed by the National Center for the Middle Market and Cisco confirmed that they do not have an up-to-date or active cybersecurity strategy – if they have one at all.

The unfortunate truth is that, no matter how diligent you or your employees are, it is only a matter of time before your organization will experience a breach. Here at Sovereign Risk Solutions we work with insurance companies who are not only experts in the Cyber Insurance industry, but are forerunners within it. Our agents will assist you with designing the perfect Cyber coverage for your organization, and are ready and willing to help you with every step of the insurance process. Give us a call today to set up a Cyber Insurance consultation!

This article was originally published on PropertyCasualty360.com.

On Nov. 14, the U.S House of Representatives passed the 21st Century Flood Reform Act (H.R. 2874) to address the issue of the cost of repeatedly flooded properties draining the National Flood Insurance Program (NFIP), which is already in significant debt.

There are five sections to the bill: policyholder protection and information, increasing consumer choice through private market development, mapping fairness, protecting consumers and individuals through improved mitigation, and program integrity. Here are the highlights of each section:

Policyholder protections and information

This section limits annual premium increases to 15% and annual increases will be no less than 5%. Much of the NFIP’s financial issues arise from inadequate premiums. The bill authorizes an affordability program to provide financial assistance to those with incomes below 150% of the poverty level for the state through a state program.

The state will verify income, rate increases will be limited on eligible households, and a surcharge will be applied to each flood policy to help pay for this assistance to eligible households. Monthly installment payments will now be acceptable, and policyholders will be advised of their full flood risk determinations and the actuarial soundness of their premiums.

Upon transfer of property, the flood risk information for the property must be disclosed to the purchaser after Sept. 30, 2022. Otherwise, no new flood coverage may be provided.

Increasing consumer choice through private market development

The Write Your Own Program will no longer contain a non-compete clause, thus allowing insurers, agents, brokers and others to offer and sell private flood insurance. ISO has already developed commercial and personal flood programs that are currently being filed with the states.

Information accumulated by the NFIP related to risks of flooding on individual properties, loss ratios, current and historical claims information, identification of mitigation efforts or lack thereof will be made public through an open-source data system. A publically searchable database of community information will be established no later than 12 months after the enactment of this section.

Cancellation of a policy due to replacement with another flood policy will generate a refund of unearned premium. The cancellation will be effective the date the new policy is effective. Definitions of the terms federal flood insurance, flood insurance, mutual aid society, private flood insurance and state are provided in the bill.

The establishment of flood damage savings accounts will be allowed once reviewed and determined to be feasible. A flood damage savings account is an account established by the owner of a property and the proceeds are available only to cover losses from flooding.

Mapping fairness

Risk assessment data and tools to identify flood areas will be identified and used. The state, local government or owners of property may appeal a denial of a request to update a flood map. The appeal must be based on knowledge that the map is scientifically or technically inaccurate or that factors exist that mitigate the risk of flooding.

Protecting consumers and individuals through improved mitigation

This section amends the provision of community rating system premium credits to the maximum number of communities practicable.

Program integrity

This amends the act to review and eliminate nonessential costs within the program and to have an independent actuarial review of the program to be conducted annually. Provision is made for a nonrefundable annual surcharge to be applied to all policies newly issued or renewed after the date of this section.
The surcharge is $40 except for residences that are not the primary residence of an individual and eligible for preferred risk rate method premiums; the surcharge for these properties is $125. Nonresidential properties and properties that are not primary residences and are not eligible for preferred risk rate method premiums will be surcharged $275.

Multiple-loss, repetitive-loss, severe repetitive-loss properties and extreme repetitive-loss properties are all defined in the bill. Premiums for such policies will be adjusted by no less than 15% annually until such rates reflect the current risk of flood.

If the owner of an extreme repetitive-loss property receives claim payment under this title and refuses an offer of mitigation for the property, flood insurance will not be made available to that owner through the flood program. Grants will be made to property owners in coordination with the state and community in order to carry out mitigation activities to reduce flood damage to extreme repetitive-loss properties.

The bill now must go to the Senate for approval. The hurricanes of 2017 strongly showed how desperately flood reform is needed, not only in policy availability but also in mitigation efforts.

Christine G. Barlow, CPCU, (cbarlow@alm.com) is managing editor with FC&S, the premier resource for insurance coverage analysis. She has an extensive background in insurance underwriting. For additional information on FC&S Online, visit www.NationalUnderwriter.com

This article was originally published on PropertyCasualty360.com.

This article was originally published on PropertyCasualty360.com.

This article was originally published on PropertyCasualty360.com. For another article on Child Passenger Safety, please click HERE.