Posted on Wed, Jan 25, 2012 @ 10:00 AM
Understanding the difference between adding an additional insured and additional named insured to your policy to best protect yourself is useful however it can be complex depending on your specific scenario. Gougeon Insurance Brokers have put together a certificate of insurance checklist to help you make a more informed decision. You can download here – Certificate of Insurance Checklist.
Adding an additional insured to a policy means that the insurance provider has agreed to accept the added third party and giving them the rights under the insured’s policy. The additional insured is only insured under claims that arise out of operations performed by or on behalf of the additional insured.
This differs from the rights of an Additional Named Insured as by contrast the insurance provider of the Insured, by adding a third party as an Additional Named Insured, has extended coverage and rights of the policy to all operations of that entity.
In either case these Additional Insured or Additional Named Insured are entitled to the same right of defense in a suit seeking damages that the Insured would be entitled to.
The significant difference between additional insured and additional named insured is the limitation of coverage to liability rising out of operations performed by or on behalf of the Additional Insured versus the more blanket and extensive rights given an Additional Named Insured, who now receives the same status and benefits from that policy as those of the Insured.
Often 3rd parties can request to be added as an additional “named” insured to you policy when such protection is not appropriate and affords them protection which is over and above what they should be afforded. It is recommended that you carefully review both types of requests and that you do not grant any 3rd party additional named insured status without an in depth review as you are granted them significant rights on your insurance policy.
To better understand this process and to get you started in the right direction, please download our free certificate of insurance checklist.
Posted on Thu, Jan 19, 2012 @ 09:04 AM
Understanding insurance can be complex!
When a third party has a financial interest in the property of a first party (the Insured) they are referred to as a Loss Payee or a 
Mortgagee.
A loss payee is a secured party named in the insurance policy who will receive payment in the event of a loss on those items for which they have a financial interest. This is put into place by use of a Loss Payee Clause which forms part of the Insurance contract allowing for payment being made, in the event of a loss, to this third party rather than the Insured.
For example a client purchases a riding lawnmower from a third party and finances the purchase through them. The third party is added as a Loss Payee securing their financial interest in the lawnmower making them the beneficiary of any payments in the event of an insured loss to that item.
A mortgagee is basically a Loss Payee but in these cases they are dealing with Real Estate property. The mortgagee is a lender who provides money to the owner of the property and as such would be added to the insurance policy as the mortgagee thus protecting their financial and insurable interest on such property.
The mortgagee is granted rights under the terms of the insurance contract that allow for the protection of their financial interest. A key component of these rights being that improper or negligent acts by the Insured will not affect the rights of the mortgagee.
For example, an act of arson committed by the Insured, while being excluded under the terms of the policy will still respond to the financial interest of a mortgagee.
When adding either a Loss payee or Mortgagee it is normally done as a condition under which an item or property has been leased or purchased. These terms are set by lenders to protect their financial interest in the event of a loss.
A Certificate of Insurance Checklist is designed to ensure that you have the appropriate paperwork required for each individual to operate on your property or on your behalf. You can download this free certificate of insurance checklist here!
Posted on Tue, Jan 17, 2012 @ 09:45 AM
Nowadays, businesses are usually familiar with certificates of insurance, however it seems that a lot of confusion exists around what the certificate does and when it is really required.
At Gougeon Insurance Brokers, we like to explain the Certificate Of Insurance simply. If you have a business arrangement with another company - whether it be a concessionaire, a supplier who is often on site, or a sport organization that often hosts events at your property - you really need to have clarity as to whose insurance will be responding to an incident and in the event of a loss. Ideally, a contract between the two businesses can outline these insurance obligations clearly and effectively.
What Is A Certificate Of Insurance?
A certificate of insurance is a proof of insurance, which is provided by an insurance company regarding a business. It outlines the most important elements of that business contract on the certificate. It is an informational document only. It cannot take the place of the Insurance Policy nor can or should it contain anything that is not in the Insurance Policy. It is used to verify the existence of insurance coverage. One party provides it to another to confirm certain types of insurance, the limits applicable, the timelines applicable (if any), and other policy details.
Why do you need a Certificate of Insurance?
- A certificate will confirm that the third party has insurance coverage.
- As a certificate holder, you have requested “proof” of insurance from someone else.
It is important for you to realize that the certificate is not an insurance document and no contract of insurance exists between the holder and the insurance company listed on the document. Often, being a certificate holder is confused with being covered by the third party’s insurance. Most certificates specifically state that they confer NO rights to the certificate holder.
How Do You Get Additional Insured Status?
To obtain protection under the third party’s policy, your business would need to be added as an additional insured and listed on the certificate.
The third party’s insurance contract should be altered to include your business as an entity who is entitled to receive some benefits in the event of a loss. Sometimes the additional insured status costs money because the insurance company has agreed to expand it’s scope of risk to include another party.
Interested in learning more about Certificates Of Insurance? Download our free certificate of insurance checklist to help manage this risk exposure.
Items in this checklist include:
- Confirming that the issuing brokerage name and address is on the certificate
- Confirming that the certificate shows the insurance company that provides coverage for the named insured and policy number
- Confirming additional insured status and any special provisions are in place.
Posted on Tue, Dec 13, 2011 @ 10:00 AM
You’ve heard it over and over again: “wash your hands to prevent the spread of germs.” What you don’t hear is how often people still aren’t washing their hands! It is estimated that approximately 30% of people aren’t washing their hands after using the restroom or during food preparation. This number grows to 75% when it comes to people failing to wash their hands after sneezing or dealing with money.
Ensuring employees are washing their hands can save you both time and money, while significantly reducing the transmission of disease and germs. An employee not washing their hands can have several negative effects on your business:
- Time off work recovering from illness
- Spread of germs to fellow employee’s
- Reduction in customer service due to staff shortage
- Ill guests, resulting in early departures and bad reviews
- In some cases, guests contracting serious illness can leave you with a potential liability claim.
Having the proper risk management procedures in place, which involve hand washing, can prevent all of these scenarios! As an employer, it is important in the workplace to ensure the following risk management protocols are in place:
- Soap is provided at all washing areas
- Signs are posted in washing area’s showing the steps to hand washing; using both photos and written instructions
- Employees are reminded of the importance of hand washing
- Hand washing is performed correctly; washing your hands should take approximately 20 seconds (singing the song “Twinkle, Twinkle, Little Star”) as you rub your hands with soap.
For more risk management advice on training new employees, download our free guide: 4 easy steps to effective staff training.
Posted on Thu, Dec 08, 2011 @ 10:10 AM
By now you probably have started hiring or are almost finished hiring for the upcoming season. Some of the seasonal workers you hired are probably young workers with maybe little to no experience. As an employer and supervisor the Occupational Health and Safety Act outlines your responsibilities to your employees and failure to abide by those responsibilities may lead to injuries or death of your workers. Also, failure to comply with the act could lead to fines or jail terms for the employer and/or supervisors.
As an employer/supervisor it is your responsibility to ensure that workplace health and safety policies, procedures and programs are current and are communicated effectively to your employees. Employee training programs that are well documented, explained and demonstrated are essential. Encourage an “open door philosophy” with employees. This will encourage workers to discuss potential safety concerns they may see while doing their job. And most importantly lead by example. Everyone in the organization has a responsibility to making the workplace a safe one.
Employees and managers should take the time to identify potential hazards at your ski resort that your workers may be exposed to. It may be something as simple as ensuring that all of your workers are wearing appropriate gear when working.
Ensuring that you have written policies and procedures or documentation in your employee manuals surrounding these topics and providing appropriate training is one way to show due diligence around worker safety.
For more tips, download our free guide: 4 Easy Steps to Effective Staff Training.
Posted on Tue, Dec 06, 2011 @ 10:03 AM
It is always a challenge to provide fresh new ideas in your training program. Video and printed materials are usually available through the various regional and national associations.
Developing interesting and informative content while covering off industry-best practices and trends can help bring your training program to the next level. Delegate different sections of the training to various supervisory people in your company so the audience can listen to a variety of voices.
Empower all supervisory staff to play a role in the training process. After all, training doesn’t stop after the one or two days of orientation; management, supervisors and staff are continually acquiring wisdom throughout their normal daily routines. Creating relationships and promoting pipelines of communication is key to creating and maintaining a vibrant and efficient staff.
It is also important to note the importance of documenting your training processes. You know what “they” say, if it isn’t written down it didn’t occur! Agendas should be created and attendance to all activities verified by all staff by initialing or signing each section. Such records as well as any certificates or credentials that your presenters and attendees may have, should be kept in their personnel file.