July 2010 - InsureYourCompany

General instructions on how to read a certificate of liability insurance. Video covers understanding of the different sections of the form and how to tell what the individual limits for each liability insurance purchased are.

*Video uses 2009 version of the Accord 25 form commonly referred to as a certificate of liability insurance. 2010 version of the Accord 25 may vary slightly.

You may not know this, but a majority of our clients happen to be in the IT consulting industry. We are often asked what type of insurance a typical IT consulting company would need, so we came up with a fictional company, to show you the insurance that you would likely need and typical premiums for this coverage.

Howard Consulting, Manalapan, NJ 07726
Owner works from home and placed 4 consultants at client sites in New Jersey.

5 employees including one sole proprietor
$1,000,000 estimated revenue for year 2010

First of all, you will need general liability insurance. General liability insurance covers liability claims of bodily injury, other physical injury or property damage. This means you are covered for accidents at your business or at your clients’ place of business. It also covers the cost to defend or settle claims whether they are fraudulent or not.

General Liability Insurance

$1,000,000 liability per occurrence
$2,000,000 liability aggregate
$10,000 medical claims
$1,000,000 hired and non owned auto
$10,000 business property

Estimated annual premium:
$350-$750
*liability only would be $350

Umbrella insurance extends your coverage beyond the limits of your basic business insurance. Also referred to as excess liability insurance, umbrella insurance is important because it covers unexpected events. It’s generally not expensive and in certain instances, it could literally save your business.

Umbrella liability
$1,000,000 per occurrence

Estimated annual premium:
$400

Workers compensation insurance coverage represents a compromise between employers and employees regarding employment related injuries or illnesses. Here’s how workers compensation works:
Your employees relinquish their right to sue you if they suffer an on-the-job injury or illness. In return, you, the employer, agree to provide state-mandated benefits as a result of that on-the-job injury or illness.

Workers compensation insurance
$1,000,000 bodily injury

Average rate across U.S. with fees is .27-.35 per $100 of payroll
Estimated annual premium based on $360,000 of payroll
$972-$1260

Professional liability insurance is appropriate for any information technology company that provides advice, makes educated recommendations, designs solutions or represents the needs of others and protects your company from errors or omissions that damage your clients.

Professional liability

$1,000,000 per occurrence

Typical annual premium:
$750-1250

A fidelity bond covers against loss due to employee dishonesty.

Fidelity bond

$1,000,000 coverage

Typical annual premium:
$1,250-$1,750

Health insurance provides re-reimbursement for illness and provides preventive care.

Health insurance
Small group health insurance in New Jersey is based on the census of your employees and where your office is located. The average age, gender makeup, and the coverage status of your employees all factor into the price.

Here is the information used for this sample quote.

07726, effective date of 8/1

Census:

Employee 1-male-family-32 years old
Employee 2-female-single-40 years old
Employee 3- male-parent/child-35 years old
Employee 4-male-single-26 years old
Employee 5-female-family-45 years old

Health Insurance quotes:

1. Aetna HSA compatible HMO, deductible funded under 50%
$1650/$3300 deductibles

Office co-pay is $20 after the deductible
Specialist co-pay is $40 after the deductible
Hospital in-patient is $300/day for 5 day maximum after the deductible
RX benefit is 15/35/60

Monthly cost is $2,961

2. Amerihealth Cost Sharing HMO

$1000/$2000 deductible
70% co-insurance
Office co-pay is $20
Specialist co-pay is $40
Hospital in-patient is 70% after deductible
RX Benefit is 7/50% $125max/rx

Monthly cost is $3441.47

3. Horizon BCBS of NJ HMO

Office co-pay is $20
Specialist co-pay is $40
Hospital in-patient is $250/day for a 5 day max per admission
RX benefit is 10/25/50

Monthly cost is $4401.90

This is the first in a series of audio education articles that CG Benefits Group and Technology Insurance Associates has produced. Recorded by insurance broker, Paul Kaplan, the proceeding audio file introduces health savings accounts and contains information about how the underlying medical plan works, how contributions work, and advantages and disadvantages to HSA plans. Health Savings Accounts can be a great way for you to save money pre-tax to dedicate to medical related expenses. Many employers are starting to offer this as part of their employee benefits packages. I hope you enjoy listening as much as I did putting this together,

Paul Kaplan

Last week Healthcare.gov launched as a portal for U.S. citizens to explore the American health insurance market in an easily navigated and concise website. The website includes ways to find insurance coverage options, learn about preventive care, compare quality care, and ways to understand the new insurance laws.

First of all, finding insurance coverage options is a very easy process of selecting options that apply to your unique situation. Whether you are a small employer, an individual with an illness, unable to get health insurance, or a young adult under 26, the website directs to state specific resources for finding coverage.

For example, for a small IT consulting firm in New Jersey, I was informed that New Jersey is a guaranteed issue state for health insurance. An insurance carrier cannot turn a small business down for coverage if it meets the qualifications of small employer. I was then directed to Department of Banking And Insurance where I could read their online New Jersey small employer’s buyers guide to health insurance.

The preventive care section of the website partners with healthfinder.gov where you can enter your age and gender and recommended tests, immunizations, and other health tips tailored to your information is presented. This is a great feature to include in the website and I found it very helpful.

Next, the U.S. Department of Health and Human Services’ hospital compare tool allows users to search hospitals by zip code and offers the ability to compare hospitals in your area by patient care surveys, care outcomes, medical imaging statistics, their Medicare coverage, and volume. This tool is an excellent addition to healthcare.gov and provides an easy way to compare hospitals.

Lastly, the website includes information about the Patient Protection and Affordable Care Act in an easy to understand format. A timeline for establishment of reform changes is included to easily reference when certain provisions of the bill will go into effect.

Many Americans without health insurance coverage due to pre-existing conditions may find themselves with health insurance coverage due to the newly established Pre-Existing Condition Insurance Plan (PCIP.)

Starting today, July 1st, 2010 many states will start accepting applications for the new plan with coverage likely beginning on August 1st. You can check to see if your state is running their own program at the following website.

This temporary high risk pool of coverage for Americans with pre-existing conditions will expire on 2014 when denying individuals insurance based on pre-existing conditions will be outlawed.

The congress has already allocated $5 billion to the program, so if you fit the description, you are urged to apply immediately, just in case the program runs out of money if a higher number of people than anticipated enroll in the plan.

In New Jersey, for example, the department of banking and insurance has decided to run their own program under guidance from the Department of Health and Human Services.

General rules for the program are as follows:

You must be un-insured for over 6 months
You must be unable to get insurance due to a pre-existing medical condition
You must be a United States citizen or a national

Premiums will vary from state to state, but the coverage cannot be higher due to your medical conditions or age.

According to healthcare.gov typical premium for the federally run program for a 50 year old will be between $320-$570. To get an estimate of premiums, check out the details at the website for the PCIP.

The Pre-Existing Condition Insurance Plan will cover a broad range of health benefits, including primary and specialty care, hospital care, and prescription drugs. All covered benefits are available for you, even if it’s to treat a pre-existing condition.

Most plans will have a deductible for major medical services such as hospital visits and surgery and a maximum out pocket to limit the patient’s liability.