Policy Reminder: Rain Season

“I’m Singing in the Rain” is an old favorite musical lullaby. However, after getting soaking wet while dancing in the street can bring on the flu.

Commercial:

Please remember, The majority of Commercial Property Policies require “physical damage” to the building (i.e. roof) caused by a covered cause of loss allowing an opening for coverage to apply for interior rain damage. In other words, wind blows off the shingles to allow an opening for the rain to leak inside or a tree limb falls on the roof to cause an opening. Without the roof damage, rain leaks to the building interior is excluded.

If the roof just leaks from lack of maintenance or leaves clogged the roof drain, there is NO coverage. So please be prepared to warn your clients that the adjuster will due their due diligence by inspecting the roof.

Home:

The majority of the home policies take the opposite approach and afford coverage regardless for a sudden roof leak. They do not require storm damage to cause an opening. The Underwriters had more empathy that day, however please be cautious to imply coverage.

Warning:

Also be very cautious to recommend restoration companies to your clients without written back up that coverage is not authorized by D & D and must be approved by the Insurance Company.

On behalf of the P & C Claims Department

FOR INSUREDS: Expanded California Sexual Harassment Training Requirements Delayed To 2021

At the height of the #MeToo movement, California lawmakers enacted a requirement that all employers with five or more employees would need to provide sexual harassment prevention training to all employees by January 1, 2020. However, in response to outcry from the business community, Governor Newsom signed into effect a law this past Friday extending the deadline for employers to provide the newly required sexual harassment prevention training to January 1, 2021. What do California employers need to know about this one-year reprieve?

Summary Of Legislation

At the prompting of the business community, the state legislature introduced and passed SB 778 to make some needed clarifications to the new sexual harassment prevention training law. Primarily, SB 778 would delay the changes made by SB 1343 – one of the many #MeToo laws passed in the 2018 legislative session – so employers would have an additional year to get up to speed with and comply with the training requirements.

The bill contained an “urgency clause,” meaning it would go into effect immediately if signed into law. Governor Newsom heard the concerns of the business community and signed the law into effect on August 30, right before the Labor Day weekend.

What Does The New Law Mean For Employers?

With the signing of SB 778, California employers with five or more employees will now be required to provide by January 1, 2021:

·        at least two hours of classroom or other “effective interactive training and education” regarding sexual harassment prevention to all supervisory employees; and

·        at least one hour classroom or other “effective interactive training and education” regarding sexual harassment prevention to all nonsupervisory employees. 

After this initial sexual harassment prevention training is completed, a covered employer must provide the requisite sexual harassment and prevention training to each employee in California once every two years.

SB 778 further requires that covered employers are required to provide training to nonsupervisory employees within six months of hire, and to new supervisory employees within six months of the assumption of a supervisory position.

Finally, SB 778 clarifies that a covered employer who provided the requisite sexual harassment training and prevention to an employee in 2019 is not required to provide refresher training and education again for such employee until two years thereafter.

The Time To Prepare Is Now

While you might be breathing a sigh of relief knowing that the next few months will not be a mad scramble for compliance, you should not let your guard down. For most California employers, complying with the requirements of the new law by the beginning of 2021 will still be a large undertaking and will require advance preparation and work. This is particularly true for employers who do not currently provide sexual harassment prevention training for their non-supervisory employees, or did not previously provide training to supervisors because they fall under the 50-employee threshold.

OSHA #MySafeSummerJob

Click here to access OSHA’s Health and Safety Awareness for Working Teens, and click here to learn about Youth Rules!, “an initiative to promote positive and safe work experiences for teens by distributing information about young workers to youth, parents, employers and educators.”

Feel free to forward this information to any clients who may appreciate or learn from these materials, and keep your eye on your inbox for more details in our newsletter.

Industry News: California Insurance Commissioner Rejects Petition to Require Fossil Fuel Underwriting Disclosure

“California’s new commissioner wasn’t getting along so well on Earth Day with groups of climate change and consumer activists.

California Insurance Commissioner Ricardo Lara, who put battling climate change on top of a liberal and consumer friendly platform on his way to winning election as commissioner, rejected a petition urging him to place new regulations on insurers to disclose what projects in the fossil fuel industry they underwrite.”

Click here to read the full article from InsuranceJournal.com.

Richard Lara Elected To Head State Insurance Department 

Democratic State Senator Ricardo Lara of Los Angeles will be the next Insurance Commissioner of California, according to final returns reported by the Secretary of State.  With 100% of all precincts reporting, Sen. Lara had 50.8 percent (3,393,189) of the vote; former Commissioner Steve Poizner, running as an independent, had 49.2 percent (3,287,452).

“As California’s Insurance Commissioner, I’ll work tirelessly to represent the great people of California, not the corporations, the billionaire class, the pharmaceutical or the insurance companies,” the Commissioner-elect pledged on his campaign website (www.ricardolara.com).  “I plan to work with anybody who is willing to come to the table, but my allegiance will always be first and foremost to the consumers, the patients, our working families, and our most vulnerable communities in our Golden State.”

 

To read the full article from IIABCal’s Independent Insider newsletter, click here.

SB 189 effective July 1, 2018

On July 1st, 2018, Senate Bill 189 (SB 189) will officially come into effect in its entirety. A small portion of SB 189 was effective 01/01/18 which allowed insurance carriers to backdate officer exclusion waivers if they met certain parameters. That backdate period has ended and the rest of the SB 189 language will come into effect on 07/01/18 for policies incepting or renewing on 07/01/18 and thereafter. SB 189 will not affect all policyholders on 07/01/18 like AB 2883 did on 01/01/17.

 

Click here to read a bulletin from the WCIRB in conjunction with the Department of Insurance which clearly lays out the upcoming changes for SB 189 on 07/01/18 along with frequently asked questions answered by the DOI.  Below are highlights of some of the changes and guidelines:

 

  • Revocable Trusts (trustee): 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 will be eligible for exclusion
  • Corporations: the stock ownership requirement for an officer to be eligible for exclusion is being lowered from 15% to 10%
  • Corporations and the “family rule”: if an officer owns at least 1% of the issued and outstanding stock of the corporation and has health insurance coverage and his or her parent, grandparent, sibling, spouse or child owns at least 10% of the stock of the corporation- that individual would be eligible for exclusion.
  • Professional Corporations: an owner of a professional corporation will be eligible for exclusion if they are covered by a health insurance plan and if they sign an officer exclusion waiver
  • Backdating: Carriers will have the ability to backdate waivers up to 15 days prior to the date of receipt of the waiver
  • LLCs and Partnerships: only Managing Members and General Partners are eligible for exclusion

 

Click here to read the complete legal text of SB-189. Please maintain this information for reference as we begin to work on 07/01/18 accounts that will be impacted by SB-189. Let Steve Gutilla Jr. know if you have any questions.

OSHA Posting Reminder

As a reminder per this email, all employers with 11 or more employees (except those in certain low-hazard establishments in the retail, professional services, finance and real estate sectors) are required to post the OSHA 300 Form summarizing their workplace illnesses and injuries for 2017. This must be posted in a place where the employees can easily read the information and understand the types of accidents that are occurring at their workplace. This form must be posted until the end of April 2018.

Please contact Steve Gutilla, Jr. with any questions you may have.