Author: karstensfinancial

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EPLI Claim Scenarios

  1. Pregnancy Discrimination:

    • The clients employee, returning from maternity leave, alleges wrongful termination due to pregnancy-related complications. Despite providing a doctor’s note for her absence, the company terminated her employment. Wow with a new mother, early termination can cause issues. This case highlights the legal obligations of employers to provide reasonable accommodations for pregnant employees under anti-discrimination laws such as the Pregnancy Discrimination Act (PDA). The substantial settlement and defense costs underscore the seriousness of the allegations and the potential liability for employers in such cases.

  2. Disability Discrimination:

    • In this case, a manager alleges wrongful termination based on disability discrimination. The employer failed to engage in the interactive process to provide reasonable accommodations and terminated the manager while on medical leave.  Make sure to look out for disability discrimination within your business.  Additionally, the employer’s failure to disclose the manager’s status during a health care plan application process further exacerbated the situation. This example underscores the importance of employers’ duty to reasonably accommodate employees with disabilities under the Americans with Disabilities Act (ADA) and similar state laws, as well as the potential financial ramifications of non-compliance.

  3. Sexual Assault:

    • Allegations of sexual harassment and assault by multiple supervisors in a warehouse environment resulted in a significant settlement and defense costs exceeding $2.5 million. Wow that is a large settlement, we want to make sure that you have EPLI coverage in case something like this happens to your business. The case highlights the severe impact of workplace sexual harassment and assault on victims and the legal obligations of employers to maintain a safe and harassment-free work environment under Title VII of the Civil Rights Act of 1964. Additionally, the subsequent retaliation against the victim underscores the importance of robust anti-retaliation policies and enforcement mechanisms.

  4. Sale of Assets & Bankruptcy:

    • This case involves allegations of breach of fiduciary duty and fraudulent transfer during the sale of assets in bankruptcy proceedings. Funds and fiduciary duty with them are big with companies. The accusations include using company funds for personal gain, overpaying for office space, and improper asset transfers. Such actions can lead to significant legal and financial consequences, as demonstrated by the substantial settlement and defense costs incurred. This example highlights the importance of transparency, accountability, and adherence to fiduciary duties in corporate transactions, especially in financially distressed situations.

  5. Claim by Founders:

    • Founders of a medical device company allege breach of employment contracts following aggressive actions by new board members appointed during a Series “B” Stock Offering. The case underscores the challenges and risks associated with corporate governance changes and conflicts of interest in startups and emerging companies. The substantial defense costs incurred, despite the lack of coverage for amounts owed under employment contracts, illustrate the complexities and costs of defending against such claims.

  6. Wrongful Termination (1):

    • An employee’s termination following a business dispute with an independent contractor’s brother raises allegations of retaliation. Despite the company’s assertion of other reasons for termination, the settlement and defense costs exceeded $200,000, indicating the potential risks and costs associated with retaliation claims under employment laws.

  7. Wrongful Termination (2):

    • Allegations of wrongful termination based on age and threats to disclose violations of non-profit laws highlight the potential legal risks associated with termination decisions perceived as retaliatory or discriminatory. The settlement and defense costs exceeding $120,000 underscore the financial implications of defending against such claims, even when the underlying allegations may seem unsubstantiated.

  8. Religious Discrimination:

    • The refusal to hire an individual based on their Mormon faith raises allegations of religious discrimination. Despite the relatively lower defense and indemnity costs, this case underscores the legal obligations of employers to refrain from discriminatory hiring practices based on religious beliefs under Title VII and similar state laws. As an employer we always want to make sure we hire based on the individual and not their religious beliefs. 

  9. Quid Pro Quo:

    • Allegations of sexual harassment and retaliation following the termination of a sexual relationship with a manager highlight the pervasive issue of workplace harassment and the legal obligations of employers to prevent and address such misconduct under Title VII and related laws. The substantial defense and indemnity costs emphasize the financial consequences of failing to adequately address harassment complaints.

  10. Retaliation:

    • Allegations of wrongful termination in retaliation for testifying on behalf of another worker’s case underscore the importance of anti-retaliation protections under employment contracts and relevant laws. The total defense and settlement costs exceeding $120,000 illustrate the potential financial liabilities associated with retaliation claims and the importance of robust compliance mechanisms.

These examples provide insights into various aspects of employment-related claims, including discrimination, harassment, retaliation, and wrongful termination, highlighting the legal obligations of employers and the potential financial risks of non-compliance.  As 

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Commercial Loans

Our Commercial Property Loan Program

Our small balance commercial property loan program is ideal for real estate investors seeking to grow their portfolios with multi-family and mixed-use properties, large commercial, office and much more. 

Commercial Loan Features

•  Loan amounts from $100k-$50 million on multi-family and mixed-use properties

•  Full 30 year terms with no balloon payments

•  Loan-to-Values up to 85%

•  No personal DTI; no tax returns; qualify based on property cash flow

•  Simplified environmental review

•  Purchase, Rate & Term Refinance and Cash-Out Refinance

•  Protect your identity and other assets by borrowing in a corporate entity

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Coinsurance

Coinsurance Explained

Most property insurance policies contain a coinsurance provision. A coinsurance provision requires the insured to insure the covered property to a specified percentage of it’s full value, typically 80, 90 or 100 percent. If  there is a loss, and the limits purchased are less than what is required by the coinsurance clause, the loss recovery will be limited to that same percentage of loss as the ratio of insurance amount carried to the insurance amount.

Have you ever wondered what the coinsurance clause on your policy means?

Coinsurance may well be one of the most confusing and misunderstood terms in insurance.

Coinsurance is the percentage of value that the policyholder is required to insurance   If you insure your property for less than that amount your insurance company imposes a “coinsurance penalty” once a claim is filed.  The value is determined at the time of the loss and if the amount of insurance is found to under the stated coinsurance percentage then a penalty is applied reducing the claim payment.

According to the independent Insurance Agents of America, most business policies include a “coinsurance” clause, determining what percentage of the value of your property must be insured in order to be fully reimbursed for a loss.

So how do we Define Coinsurance?

Coinsurance in a commercial property policy does not come into affect/play until a loss occurs. When this event/loss happens, the replacement cost is assessed at the time of the loss to determine the limit of insurance that should be in place. Depending on the coinsurance percentage selected in the policy, an insured may only have to cover up to a certain amount to avoid a coinsurance penalty.

How does Coinsurance Work?

Let’s say you have a building that you believe would cost $100,000 to replace and a coinsurance penalty in your policy of 80 percent. You insure the building for $80,000 thinking you have fulfilled the coinsurance clause. A fire loss causes $60,000 worth of damage so you submit a claim. Your insurance company subsequently determines that the replacement cost of the building is actually $150,000..

What is a good example of Coinsurance?

To determine how much to pay on the claim, the insurer divides the amount of insurance you purchased ($80,000) by the amount you should have purchased (80% of $150,000 or $120,000). The result (two-thirds, or $40,000) is the amount of your claim the insurer will pay.
If the building had been insured for at least $120,000, the insurer would have reimbursed you for the full amount of the loss. Coinsurance can be tricky and potentially cost you a ton of money if you under insure your property.

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FWCJUA

FWCJUA – Florida Workers’ Compensation Joint Underwriting Association, Inc

Advanced Protection Through FWCJUA – Florida Workers’ Compensation Joint Underwriting Association, Inc If you have stumbled upon this webpage you’re either needing Workers Compensation Insurance through the FWCJUA (Florida Workers’ Compensation Joint Underwriting Association), aka JUA, or looking for someone to write your Workmans Comp. Either Way, we Can Help! The mission of the FWCJUA simply put is to “provide Workers Comp insurance for employers that are unable to buy in the standard (voluntary) market.” Basically speaking, this policy is for employers that: 

1. Have no prior insurance

2. Too low of a payroll for standard carriers

3. Too many losses

4. High experience modification

5. Can’t find Workers Compensation in the standard markets

If you fall into one or more of those four categories you are most likely eligible for coverage with the FWCJUA. There are some circumstances that can make you ineligible, but it is best to consult with an agent to discuss options. 

How Long Does The Process Take? 

The process can be cumbersome if you don’t have the proper paperwork in order before you start. This is not the type of insurance that you can purchase same day or even same week. The majority of the time the process takes 20 days and that includes the applicant having all the paperwork ready at the start of the process. Policies can not be bound online, so that means the applicant must have original inked signature and payment in full in the hands of the Association in order to bind the policy. FWCJUA does not have in-house financing, but outside financing is available through our agency partners.

What Are The Minimum Requirements?

Florida, like most states have the minimum requirement of bodily injury by accident $100,000 each accident, bodily injury by disease $500,000 policy limit, and bodily injury by disease $100,000 each employee. 

How Much Does The Insurance Cost? 

Workers Comp costs in Florida vary depending on payroll, class code, and if the corporation officer payroll is included or excluded. That being said, there are additional fees and premiums that the FWCJA imposes that drive the minimum premium to $1,403, before adding in rating factors such as payroll and class code. 

What Paperwork Is Needed To Start The Process? 

To expedite the process, you may begin compiling the necessary information to complete a formal quote. We do recommend contacting the office first to see if other options may be available. This list comes straight from the FWCJUA website: 

1. Tax ID

2. Description of business operations

3. Business locations

4. Contact information

5. Payroll estimates

6. Job duties of employees

7. Previous Workers Comp history

8. RT-6 or 941 Payroll Verification forms for the last four quarters filed with the Department of Revenue;

9. Exemption/Election forms on file or being filed with the state of Florida;

10. Experience Rating Worksheet generated by NCCI;

11. ERM-14 form (Confidential Request for Ownership Information) to be filed by the FWCJUA with NCCI;

12. Most recent Workers Compensation policy information page reflecting class codes and payrolls;

13. Loss runs valued within the last thirty (30) calendar days generated by the prior insurer(s) identifying your loss history and corresponding premium for, at most, the immediately preceding three years;

14. Certificates of insurance issued within the last thirty (30) calendar days for all subcontractors including those with leased workers regardless of exemption status;

15. State contractor’s licenses issued by the Florida Department of Business and Professional Regulation;

16. Contracts that particularly establish exposure, such as, but not limited to, employee leasing (PEO) arrangements, temporary employment agency contracts and franchise agreements;

17. Pending and current bankruptcy filings and documentation

18. Settlements related to prior Workmans Comp obligations;

19. Valid finance agreement if premium will be financed;

20. Full details on any voluntary market offers of coverage; and

21. Full details on any voluntary market coverage declinations.

 Experience! Don’t make the mistake of going with a rookie who has little or no experience dealing with the FWCJUA.  We understand the process and are ready to help you obtain the coverage you need, in a timely matter. insurance quotes