TW
FG C
omm
ercial Business School – C
omm
ercial 104
1
Commercial 104
TW
FG C
omm
ercial Business School – C
omm
ercial 104
2
TWFG Commercial Business SchoolCommercial 104
Commercial 101 – 104Commercial 101
OverviewCommercial Insurance Basic TermsCommercial Insurance Polices: OverviewImportant Auxiliary CoveragesACORD Forms OverviewCommercial Lines Workflow ProcessSubmission ChecklistPost-Binding Checklist
TW
FG C
omm
ercial Business School – C
omm
ercial 104
3
TWFG Commercial Business SchoolCommercial 104
Commercial 101 – 104Commercial 102
How Does the Underwriting Process Operate?Commercial Insurance Policy Coverages: First Level DetailSilverplume Overview (Live Demo)
TW
FG C
omm
ercial Business School – C
omm
ercial 104
4
TWFG Commercial Business SchoolCommercial 104
Commercial 101 – 104Commercial 103
Commercial Lines Basics Property: COPECommercial Lines Basics Property: BuildingCommercial Lines Basics Property: Business Personal Property (BPP)Module 3 Case Study
TW
FG C
omm
ercial Business School – C
omm
ercial 104
5
TWFG Commercial Business SchoolCommercial 104
Commercial 101 – 104Commercial 104
Commercial AutoMulti-Line Policy TypesWorkers Compensation OverviewEndorsements Common to Most Policies
TW
FG C
omm
ercial Business School – C
omm
ercial 104
6
TWFG Commercial Business SchoolCommercial 104
Learning Objectives
Understand what exposures are covered under the Commercial Auto Policy
Understand the difference between a Business Owners Policy (BOP) and a Commercial Lines Package Policy and when using each is the best choice
To gain a basic understanding of what coverages are provided the basics of rate classification under the Workers Compensation Policy
TW
FG C
omm
ercial Business School – C
omm
ercial 104
7
TWFG Commercial Business SchoolCommercial 104
Commercial AutoMost businesses use some type of auto in their operations.
For some the use is incidental, such as a contractor driving to and from a job site.
For others, the use is essential, such as furniture delivery.
Obviously, the more an auto is on the road, the greater the exposure, or chance of loss, and therefore the greater the premium
TW
FG C
omm
ercial Business School – C
omm
ercial 104
8
TWFG Commercial Business SchoolCommercial 104
Commercial AutoThis class is designed to help you become more familiar with auto coverages, how commercial autos are rated, and the exposures that an underwriter evaluates
TW
FG C
omm
ercial Business School – C
omm
ercial 104
9
TWFG Commercial Business SchoolCommercial 104
Commercial AutoCommercial Auto Definition:
A land motor vehicle or trailer designed for use on public roads
Any other land vehicle subject to a compulsory insurance law
For a vehicle to be properly insured on a Commercial Auto Policy, it must be registered in the company’s name (or individual for a sole proprietor)
TW
FG C
omm
ercial Business School – C
omm
ercial 104
10
TWFG Commercial Business SchoolCommercial 104
Commercial AutoCommercial Auto Definition:Mobile equipment is NOT a commercial auto: Farm equipment, forklifts, bobcats, bulldozers and other vehicles not designed for use over public roads.
Also included are mobile chassis with permanently attached pieces of heavy equipment designed specifically for movement of that equipment.
Exempted are vehicles with snow plows attached and street cleaning vehicles. These are considered “autos”
TW
FG C
omm
ercial Business School – C
omm
ercial 104
11
TWFG Commercial Business SchoolCommercial 104
Commercial AutoDefinition of Insured:
You, meaning the corporation, partnership or sole proprietor listed as the name insured
Anyone else using a covered auto with your permission. There are some exceptions for family members and employees if they own the vehicle in question. These situations can be addressed by specific
endorsements
TW
FG C
omm
ercial Business School – C
omm
ercial 104
12
TWFG Commercial Business SchoolCommercial 104
Commercial AutoCommercial Auto Coverages:UM/UIM:Uninsured and underinsured motorist coverage is similar to the same coverages found in the Personal Auto Policy, as are PIP, Med Pay and Towing. UM/UIM is mandatory in most states. In others, it may be rejected, but must be done so by signing a specific form, and the form normally must be signed with each renewal. (Key Concept) This is an area where enormous E&O exposures exist. It is vital that each agent maintain an auto “checklist” both for new business and renewals, which includes verification of the acceptance/rejection and collection of the signed rejection form
TW
FG C
omm
ercial Business School – C
omm
ercial 104
13
TWFG Commercial Business SchoolCommercial 104
Commercial AutoCommercial Auto Coverages:BI/PD:The definitions for bodily injury, property damage and accident match those of the CGL
The bodily injury or property damage must result from the ownership, maintenance or use of a covered auto
We will discuss what a covered auto is in a later section
TW
FG C
omm
ercial Business School – C
omm
ercial 104
14
TWFG Commercial Business SchoolCommercial 104
Commercial AutoPhysical Damage Coverages:
Comprehensive, Collision, and Specified Causes of Loss apply similarly as they do with Personal Auto Policies
TW
FG C
omm
ercial Business School – C
omm
ercial 104
15
TWFG Commercial Business School
Commercial 104
Commercial AutoCommercial Auto Rating & Classification:
Several factors used to determine classification and rating
Understanding needed to be able to apply these factors to properly write commercial auto
TW
FG C
omm
ercial Business School – C
omm
ercial 104
16
TWFG Commercial Business SchoolCommercial 104
Commercial AutoCommercial Auto Rating & Classification:
Weight and Vehicle Type:Private passenger Form of commercial truck including vansWeights – classified as, and based on
GVW:LightMediumHeavyExtra Heavy
TW
FG C
omm
ercial Business School – C
omm
ercial 104
17
TWFG Commercial Business School
Commercial 104
Commercial AutoCommercial Auto Rating & Classification:Private Passenger: Sedan/SUV/Coupe/Non-Commercial VanLight Trucks: Pick-up Trucks/Commercial Vans up to 10,000lbs Medium Trucks: Box Trucks/Commercial Vans up to 20,000lbsHeavy Trucks: Large box and Non-Semi up to 45,000lbsExtra Heavy Trucks: Large box and Non-Semi over 45,000lbsService or Utility Trailers: Load capacity up to 2000lbsTrailers: Load capacity over 2000lbsSemi-Trailers
TW
FG C
omm
ercial Business School – C
omm
ercial 104
18
TWFG Commercial Business SchoolCommercial 104
Commercial AutoCommercial Auto Rating & Classification:Use of Vehicle: Classifications based on the degree of “Over-The- Road” exposure according to how the vehicle is normally used
Service Use: Vehicles used to transport workers/supplies to and from job sites. Parked most of the time. Ex.: Electrical Contractor’s truckRetail Use: Vehicles used for deliveries to residences, such flower/furniture delivery. Frequently changing routesCommercial Use: All other vehicles, such delivery trucks (to businesses)
TW
FG C
omm
ercial Business School – C
omm
ercial 104
19
TWFG Commercial Business SchoolCommercial 104
Commercial AutoCommercial Auto Rating & Classification:
Radius of Operation: Distance normally traveled from the place of business
Local: 50 – 100 milesIntermediate: 51 – 200 milesLong Distance: Over 200 miles
TW
FG C
omm
ercial Business School – C
omm
ercial 104
20
TWFG Commercial Business SchoolCommercial 104
Commercial AutoCommercial Auto Rating & Classification:
Special Industry Classifications: The last classification and rating factor applies to special classes, such as dump trucks and trailers, concrete trucks, and food delivery
Garaging Address: Determines the rating territory for each unit. For large fleet schedules, units may be garaged at multiple addresses
TW
FG C
omm
ercial Business School – C
omm
ercial 104
21
TWFG Commercial Business SchoolCommercial 104
Commercial AutoSymbol Values:For each coverage selected the insured will select a Symbol, which determines which vehicles are included for that coverage.
Symbo1 1 Any Auto: Any owned, non-owned, or hired auto.Typically only allowed for liability coveragesSymbol 2 Owned auto only: Used for liability, UM/UIM and other coverages.
TW
FG C
omm
ercial Business School – C
omm
ercial 104
22
TWFG Commercial Business SchoolCommercial 104
Commercial AutoSymbol Values:
Symbol 3 Owned Private Passenger Autos: Used by entities which strictly use private passenger autos, such mobile computer repair service. Need to include
symbols 8 and 9Symbol 4 Owned Autos other than
Private Passenger: Could be used by commercial trucking outfit. Need to
include symbols 8 and 9Symbols 5/6 Apply to UM/UIM, PIP, and Med
Pay
TW
FG C
omm
ercial Business School – C
omm
ercial 104
23
TWFG Commercial Business SchoolCommercial 104
Commercial AutoSymbol Values:
Symbol 7 Specifically Described Autos: Typically used for Physical Damage coverage when some units will not have the coverage, such as older units
Symbol 8 Hired Autos: Extends selected coverages to autos the insured leases, hires, rents, or borrows but NOT those belonging to employees for partners
Symbols 9 Non-Owned Autos: Extends coverage to autos which ARE owned by employees or partners. Typically only liability coverage is extended to Hired
and Non-Owned autos
TW
FG C
omm
ercial Business School – C
omm
ercial 104
24
TWFG Commercial Business SchoolCommercial 104
Commercial AutoSymbol Values:
Other Items:Need to supply complete list of drivers
with DL number
Driving records and experience will be evaluated by UW
You must determine if insured has a formal “Fleet Safety Program”
TW
FG C
omm
ercial Business School – C
omm
ercial 104
25
TWFG Commercial Business SchoolCommercial 104
Commercial AutoWho is an Insured?The named insured for a covered autoA permissive user of a covered auto (employees)
Who is not an Insured?The owner of a Hired AutoAn employee in their own autoA partner/member in an auto they own
TW
FG C
omm
ercial Business School – C
omm
ercial 104
26
TWFG Commercial Business SchoolCommercial 104
Commercial AutoImportant Endorsements:
CA 99 17 Individual Named InsuredDesigned for sole proprietors, partners
and LLC members when the car they drive (covered auto under the BAP) is their personal car
CA 99 10 Drive Other Car CoverageDesigned for officers, partners, or
employees who are furnished a company car and it’s the only vehicle available
to that individual (does not own a personal auto)
TW
FG C
omm
ercial Business School – C
omm
ercial 104
27
TWFG Commercial Business SchoolCommercial 104
Commercial AutoImportant Endorsements:CA 99 16 Hired Auto Specified as Covered Auto You OwnThis extends liability and/or physical damage to autos owned by owners or employees and used in the business. Specific autos are scheduled. CA 99 33 should also be used
CA 99 33 Employees as InsuredsExtends liability coverage to all employees whose autos are listed on the CA 99 16
TW
FG C
omm
ercial Business School – C
omm
ercial 104
28
TWFG Commercial Business SchoolCommercial 104
Commercial AutoImportant Endorsements:CA 20 01 Lessor-Additional Insured and Loss PayeeEffectively turns a leased auto into a covered auto rather than a hired auto. This makes the insured’s auto coverage primary
CA 99 47 Employee as LessorAdds the scheduled auto (which is owned by an employee and leased to the business) as a covered auto and the employee who leases it as an insured
TW
FG C
omm
ercial Business School – C
omm
ercial 104
29
TWFG Commercial Business SchoolCommercial 104
Underwriting Auto ExposuresUse of Vehicles
How vehicles are used is a major component in underwriting
Service vehicles presents the lowest exposures
Retail vehicles presents the highest exposures
TW
FG C
omm
ercial Business School – C
omm
ercial 104
30
TWFG Commercial Business SchoolCommercial 104
Underwriting Auto ExposuresAge and Condition of Vehicles
While older, well maintained vehicles are acceptable, newer units are preferred
Older units have more maintenance issues
Newer units indicates financial success, and a planned budgetary commitment to vehicle safety and quality
TW
FG C
omm
ercial Business School – C
omm
ercial 104
31
TWFG Commercial Business SchoolCommercial 104
Underwriting Auto ExposuresFormal Safety Program
For fleets of 5 or more units a formal safety program is preferred and should include:
Designated Safety OfficerDaily Vehicle InspectionsRegular Safety MeetingsAccident Investigation ProcessDriver Safety Training Classes
TW
FG C
omm
ercial Business School – C
omm
ercial 104
32
TWFG Commercial Business SchoolCommercial 104
Underwriting Auto ExposuresDriver Selection Program
Does the insured have procedures for selecting drivers? Components would include:
Minimum number of years driving experience
Driver training program where appropriate
Acceptable driving recordRegular check of MVRs
TW
FG C
omm
ercial Business School – C
omm
ercial 104
33
TWFG Commercial Business SchoolCommercial 104
Underwriting Auto ExposuresVehicle Maintenance Program
Regular scheduled vehicle maintenance documented
Regular oil changesPerform manufacturer’s recommended
maintenanceReplacement of tires, etc. all done on a
regular basis
TW
FG C
omm
ercial Business School – C
omm
ercial 104
34
TWFG Commercial Business SchoolCommercial 104
Underwriting Auto ExposuresOvernight Garaging/Protection
Are vehicles taken home at night?Parked on the street, access by other family members?Proper endorsements in place?Parked inside a secured area?Left at job sites overnight (larger units)- properly secured/use of anti-theft devises?
TW
FG C
omm
ercial Business School – C
omm
ercial 104
35
TWFG Commercial Business SchoolCommercial 104
Underwriting Auto ExposuresLoss History
For fleets of 5 or more units a formal safety program is preferred and should include:
Severity vs. FrequencyFrequency indicates an ineffective loss
control program.Severity may be a one-off issue, but
where there preventable factors
TW
FG C
omm
ercial Business School – C
omm
ercial 104
36
TWFG Commercial Business SchoolCommercial 104
Multi-Policy TypesBusiness Owner’s Policy (BOP)Designed for small and medium sized businesses Combines basic property and general liability coverages into one packaged policyLess expensive than purchasing separatelyMost carriers include enhancement endorsements for a nominal feeCan be endorsed to include coverages such as EPL and Cyber Liability, and an Umbrella
TW
FG C
omm
ercial Business School – C
omm
ercial 104
37
TWFG Commercial Business SchoolCommercial 104
Multi-Policy TypesCommercial Package Policy (CPP)
Designed for more complicated medium sized accounts and most all large accounts
Combines property and general liability but has more flexibility in the extend of coverage options available
Allows more in-depth analysis of exposures and a more tailored approach to coverages
These are risks where “knowing the business” is essential for the agency and where credibility is a must both win and retain the account
TW
FG C
omm
ercial Business School – C
omm
ercial 104
38
TWFG Commercial Business SchoolCommercial 104
Workers Compensation Coverage OverviewBackground
Began in 1911 due to burden on society from injured employees without health insurance
Employer to bear the cost of work-related injuries and illness without regard to negligence
Workers covered regardless of fault, and employers could not be sued by employees
Workers Compensation became the sole remedy for occupational injuries
TW
FG C
omm
ercial Business School – C
omm
ercial 104
39
TWFG Commercial Business SchoolCommercial 104
Workers Compensation Coverage OverviewCoverages Provided
Workers Compensation policies provide two different coverages
Workers CompensationEmployers Liability
TW
FG C
omm
ercial Business School – C
omm
ercial 104
40
TWFG Commercial Business SchoolCommercial 104
Workers Compensation Coverage OverviewWorkers Compensation
Provides no-fault coverage to employees for work related injuries and illness
When purchased, WC is the sole remedy for injured workers
Payments are partial and periodic, with emphasis on returning employee to work
No limit on reasonable and necessary medical coverage
TW
FG C
omm
ercial Business School – C
omm
ercial 104
41
TWFG Commercial Business SchoolCommercial 104
Workers Compensation Coverage OverviewEmployers Liability
Provides coverage to employer for injury-related claims made by employees for things not covered by WC statutes
Legal Liability to Employees Not Covered by WC:
Gross NegligenceIntentional InjuryDual Capacity Claims
TW
FG C
omm
ercial Business School – C
omm
ercial 104
42
TWFG Commercial Business SchoolCommercial 104
Workers Compensation Coverage OverviewEmployers Liability
Legal Liability to Others:Loss of Services by Family MembersThird-Party (action-over) ClaimsConsequential Bodily Injury Claims
TW
FG C
omm
ercial Business School – C
omm
ercial 104
43
TWFG Commercial Business SchoolCommercial 104
Workers Compensation Coverage OverviewCoverage by State
WC is mandatory in all states except Texas and New Jersey, where it is elective
A sole proprietor with no employees in not eligible for WC
4 states have Monopolistic State Funds- no private insurers: ND, OH, WA and WY
TW
FG C
omm
ercial Business School – C
omm
ercial 104
44
TWFG Commercial Business SchoolCommercial 104
Workers Compensation Coverage OverviewPremium Basis
Payroll is the basis for WC premium. If payroll reaches min premium threshold the
risk qualifies for experience ratingExperience rating worksheet calculates the
Experience Mod which applies a debit or credit the rating process
Carries have option to apply a Schedule Rating based on peculiarities of a specific risk
TW
FG C
omm
ercial Business School – C
omm
ercial 104
45
TWFG Commercial Business SchoolCommercial 104
Workers Compensation Coverage OverviewStop Gap Coverage
A form of “stand alone” Employers Liability coverage used in Monopolistic Fund states which do not combine EL with WC. Usually added to the CGL
TW
FG C
omm
ercial Business School – C
omm
ercial 104
46
TWFG Commercial Business SchoolCommercial 104
Workers Compensation Coverage OverviewUnderwriting Workers CompensationManagement Attitude Toward WCIs the employer involved in minimizing hazards/reducing costs?Are safety programs mandatory and enforced?Are accidents investigated and results incorporated in an ongoing program of loss improvement?Does employer provide back-to-work programs?Are employees involved in safety process?Evidence of good housekeeping/maintenance of building, machinery, and processes
TW
FG C
omm
ercial Business School – C
omm
ercial 104
47
TWFG Commercial Business SchoolCommercial 104
Workers Compensation Coverage OverviewUnderwriting Workers CompensationIndependent Contractors:Contracting risks are impacted by how an Independent Contractor is definedIf sub-contractor does not meet the definition of an independent contractor, then the subs payroll must be included in the hiring contractors WC exposuresMost definitions include reference regarding who controls the work, and the relationship between the contractor and the sub
TW
FG C
omm
ercial Business School – C
omm
ercial 104
48
TWFG Commercial Business SchoolCommercial 104
Workers Compensation Coverage OverviewUnderwriting Workers Compensation
Descriptions of Coverages: Items 3A, 3B, and 3C
The information page (Dec Page) for the typical WC and EL policy has three important fields listed as 3A, 3B, and 3C
TW
FG C
omm
ercial Business School – C
omm
ercial 104
49
TWFG Commercial Business SchoolCommercial 104
Workers Compensation Coverage OverviewUnderwriting Workers Compensation
Item 3A: States with Active OperationsList all states where insured has known
operationsActivates WC laws for those statesCannot list Monopolistic States. Must
separately purchase the Monopolistic Fund policies in those states (add Stop Gap Coverage)
Note that there are no occurrence or aggregate limits for WC
TW
FG C
omm
ercial Business School – C
omm
ercial 104
50
TWFG Commercial Business SchoolCommercial 104
Workers Compensation Coverage OverviewUnderwriting Workers Compensation
Item 3B: Employers Liability LimitsThis is the EL limits, which apply to all
states listed under 3AConsider limits carefully, especially if an
Umbrella is purchased. $1M/$1M/$1M is recommended
There is no policy aggregate for BI by accident, only per accident limit
BI by disease has a per employee and policy limit
TW
FG C
omm
ercial Business School – C
omm
ercial 104
51
TWFG Commercial Business SchoolCommercial 104
Workers Compensation Coverage OverviewUnderwriting Workers Compensation
Item 3C: Other States CoverageActivates WC laws for listed states in
which work begins in those states after the effective date
Insured must notify the company when work begins in any state listed in 3C. Activated states must be moved to 3A at renewal
TW
FG C
omm
ercial Business School – C
omm
ercial 104
52
TWFG Commercial Business SchoolCommercial 104
Workers Compensation Coverage OverviewUnderwriting Workers Compensation
What determines which States WC laws apply? (Any may apply)
State in which the employee was hiredState of the employee’s residencyState where the Primary Employer is
locatedState in which the employee is paidState where the injury occurred
TW
FG C
omm
ercial Business School – C
omm
ercial 104
53
TWFG Commercial Business SchoolCommercial 104
Endorsements Common to Most PoliciesThere are three classes of endorsements that are common to most Commercial Lines policies
Additional InsuredsLoss PayeeWaiver of Subrogation
TW
FG C
omm
ercial Business School – C
omm
ercial 104
54
TWFG Commercial Business SchoolCommercial 104
Endorsements Common to Most PoliciesAdditional Insured
Usually requested when a business operates on property owned by others, or is doing work at another’s property
Purpose of endorsement is to protect the property owner
Numerous types of Additional Insured endorsements
Included automatically on Commercial Auto.Not used on property or WC
TW
FG C
omm
ercial Business School – C
omm
ercial 104
55
TWFG Commercial Business SchoolCommercial 104
Endorsements Common to Most PoliciesLoss Payee
Can be either lenders of lessorsHave a financial interest in specifically
described propertyProtects interest by requiring that the Loss
Payee be named on any loss checkUsually combined with an Additional Insured
endorsementCan be used on any policy that insures property
TW
FG C
omm
ercial Business School – C
omm
ercial 104
56
TWFG Commercial Business SchoolCommercial 104
Endorsements Common to Most PoliciesWaiver of Subrogation
Commonly requested in conjunction with the Additional Insured endorsement
Transfers all responsibility to the insured for losses, even if the Additional Insured contributed to loss
Waives insured’s right to subrogate (go after portion of the loss that was Additional Insured’s fault)
Common on Auto, GL, and WC
TW
FG C
omm
ercial Business School – C
omm
ercial 104
57
TWFG Commercial Business SchoolCommercial 104
TW
FG C
omm
ercial Business School – C
omm
ercial 104
58
TWFG Commercial Business SchoolCommercial 104
TW
FG C
omm
ercial Business School – C
omm
ercial 104
59
TWFG Commercial Business SchoolCommercial 104
QUIZ
TW
FG C
omm
ercial Business School – C
omm
ercial 104
60
TWFG Commercial Business SchoolCommercial 104
You are presented the opportunity to write auto coverage for an industrial electrical contractor. They have a fleet of 15 pick-ups driven by their employees to job sites. They also have 7 heavy trucks used to carry supplies and 6 utility trailers pulled by the pick-ups.
9 of the pick-ups are over 7 years old, and the insured does not want to carry comp and collision on these units. The same applies to 5 of the 7 heavy trucks.
The pick-up trucks are used for local jobs, but 5 of the heavy trucks are used for jobs within 200 miles of the insured’s shop. The insured wants PIP and UM/UIM
TW
FG C
omm
ercial Business School – C
omm
ercial 104
61
TWFG Commercial Business SchoolCommercial 104
What symbols would you use for the following Coverages?
Liability PIP UM UIM
Comp Coll Trailers
TW
FG C
omm
ercial Business School – C
omm
ercial 104
62
TWFG Commercial Business SchoolCommercial 104
What symbols would you use for the following Coverages?
Liability (1) PIP (2) UM (2)UIM (2)
Comp (7) Coll (7,8) Trailers (none needed)
TW
FG C
omm
ercial Business School – C
omm
ercial 104
63
TWFG Commercial Business SchoolCommercial 104
What radius of operations apply to:
The Pick-ups The Heavy Trucks
The Trailers
TW
FG C
omm
ercial Business School – C
omm
ercial 104
64
TWFG Commercial Business SchoolCommercial 104
What radius of operations apply to:
The Pick-ups (local) The Heavy Trucks (intermediate)
The Trailers (local)
TW
FG C
omm
ercial Business School – C
omm
ercial 104
65
TWFG Commercial Business SchoolCommercial 104
What use and weight classifications are applied to:
The Pick-ups The Heavy Trucks
The Trailers
TW
FG C
omm
ercial Business School – C
omm
ercial 104
66
TWFG Commercial Business SchoolCommercial 104
What use and weight classifications are applied to:
The Pick-ups (service, light) The Heavy Trucks (service, heavy)
The Trailers (service, utility)
TW
FG C
omm
ercial Business School – C
omm
ercial 104
67
TWFG Commercial Business SchoolCommercial 104
What are two main types of combination policies issued to businesses?
TW
FG C
omm
ercial Business School – C
omm
ercial 104
68
TWFG Commercial Business SchoolCommercial 104
What are two main types of combination policies issued to businesses?
BOP and Commercial Package Policies
TW
FG C
omm
ercial Business School – C
omm
ercial 104
69
TWFG Commercial Business SchoolCommercial 104
What are two coverages provided in a Workers Compensation Policy?
TW
FG C
omm
ercial Business School – C
omm
ercial 104
70
TWFG Commercial Business SchoolCommercial 104
What are two coverages provided in a Workers Compensation Policy?
Workers Compensation and Employer’s Liability
TW
FG C
omm
ercial Business School – C
omm
ercial 104
71
TWFG Commercial Business SchoolCommercial 104
If an employee sustains a routine injury on the job, can he/she sue the employer?Why or why not?
TW
FG C
omm
ercial Business School – C
omm
ercial 104
72
TWFG Commercial Business SchoolCommercial 104
If an employee sustains a routine injury on the job, can he/she sue the employer?Why or why not?
1. No2. WC is the sole remedy unless gross negligence is present
TW
FG C
omm
ercial Business School – C
omm
ercial 104
73
TWFG Commercial Business SchoolCommercial 104
If an employee sustains an injury on the job and believes the employer’s gross negligence caused the injury, can the employee sue the employer?If so, would the employer’s WC policy respond?If so, in what manner?
TW
FG C
omm
ercial Business School – C
omm
ercial 104
74
TWFG Commercial Business SchoolCommercial 104
If an employee sustains an injury on the job and believes the employer’s gross negligence caused the injury, can the employee sue the employer?If so, would the employer’s WC policy respond?If so, in what manner?
1. Yes2. Yes3. The EL coverage would respond
TW
FG C
omm
ercial Business School – C
omm
ercial 104
75
TWFG Commercial Business SchoolCommercial 104
Is Workers Compensation mandatory in Texas?
TW
FG C
omm
ercial Business School – C
omm
ercial 104
76
TWFG Commercial Business SchoolCommercial 104
Is Workers Compensation mandatory in Texas?
No
TW
FG C
omm
ercial Business School – C
omm
ercial 104
77
TWFG Commercial Business SchoolCommercial 104
What two types of rating plans can be applied to a large workers compensation risk?
TW
FG C
omm
ercial Business School – C
omm
ercial 104
78
TWFG Commercial Business SchoolCommercial 104
What two types of rating plans can be applied to a large workers compensation risk?
Experience rating and Schedule rating
TW
FG C
omm
ercial Business School – C
omm
ercial 104
79
TWFG Commercial Business SchoolCommercial 104
Future Classes
February 28th Commercial 101March 6th Commercial 102March 13th Commercial 103March 20th Commercial 104
TW
FG C
omm
ercial Business School – C
omm
ercial 104
80
TWFG Commercial Business SchoolCommercial 104
Industry Segment Classes (Beginning in March)
Retail & Service Farm/RanchArtisan Contractor Excess & SurplusCommercial Auto Professional LiabilityWorkers Compensation UmbrellaCommercial Real Estate BondsRestaurant Financial InstitutionsManufacturing Hotels/MotelsAgriculture Medical Technology
TW
FG C
omm
ercial Business School – C
omm
ercial 104
81
TWFG Commercial Business SchoolCommercial 104
Questions???