Q. WHY SHOULD I BUY FROM NAPOSURE?
A. NAPOsure.com has been working with the Board of Directors of NAPO since 2001 to assure that your membership would have an advocate in this critical area of your business. In those "early days", your profession was not clearly understood, causing most insurance underwriters to refuse to provide proper protection. As your profession has blossomed, it has also broadened its scope of exposures from a Liability perspective. We here at NAPOsure.com clearly understand the many nuances and intricacies of your profession. We have been in constant contact with our insurance markets to make sure that they continue to be comfortable helping you manage your liability risks. No one else in OUR profession understands YOUR profession like we do.
Q: WHAT IS “CARE, CUSTODY, AND CONTROL” AS IT RELATES TO INSURANCE?
A: The issue of Care, Custody, or Control (commonly referred to in our business as "The C,C,C EXCLUSION") is addressed in EVERY standard Liability contract. It IS an EXCLUSION....which basically states, "We are NOT going to pay for damage done to Property that is in YOUR care, custody, or control...." It is there for a reason....they want YOU to be careful (and responsible) for other people's "stuff" that is in your care, custody, or control.
Let’s look at an example - let's assume you agree to help a client reorganize a room. As a part of that process, you are moving a painting from one wall to another. While you are in the process of hanging the painting on the new wall, you slip and put your arm through the painting....and also knock over a piece of crystal sitting on a table near the wall and break it !! Based on the language contained in a “standard C,C,C exclusion"....you are NOT covered for the damage done to the painting because that was what you were "working on" at the time of the incident. You ARE, however, protected for the damage to the crystal vase. You were because you were NOT "working on it" when it was broken.
Here is the GOOD NEWS. The NAPOsure.com programs, specifically negotiated for NAPO members, include Damage to Customers Property. The standard limit is $10,000 which will generally satisfy your needs. If a higher limit is required, we can generally obtain that higher limit.
Q: EXPLAIN THE VALUE OF THE “EMPLOYEE DISHONESTY BOND FOR CUSTOMER’S PROPERTY”.
A: Your customers may have concerns about the risk of theft by YOUR employees coming onto their premises (home or business). Standard Employee dishonesty coverage protects an EMPLOYER for theft of property owned by the employer that is stolen by the employee. NAPO members, like many other service industries, often work at their client’s premises, handling property owned by the client. The NAPOsure.com program provides “Third Party Fidelity Coverage” as an enhancement. In addition to protecting your clients from theft by your employee, it also has REMOVED the normal exclusion which applies to “owners”. This allows all members who purchase this protection to provide clients with a real sense of security, by being able to assure them that they are “bonded” in the event of alleged loss by theft.
Q: IF I HIRE A SUB-CONTRACTOR (CONTRACT LABOR) AM I PROTECTED?
A: The answer is yes, YOU are protected for a covered loss even if your sub caused the loss. However, your sub-contractor is NOT protected under your policy. If he/she wants protection, they must provide their own protection under their own policy. It is imperative that any sub-contractors that work for you have their own Insurance protection. Otherwise, claims that they cause through their negligence may well impact your insurance costs in the future.
Q: DO YOU OFFER PROTECTION FOR BUSINESSES IN COASTAL AREAS?
A: If you have contacted us before and were not able to buy property coverage for your business, please try again. Our new program with the Philadelphia Companies is available for MOST coastal states without any change in coverage or deductible.
Q: IS THIS PROGRAM NOW AVAILABLE IN ALL 50 STATES?
A: In our new program underwritten by THE PHILADELPHIA COMPANIES, we can write coverage in all 50 states. If you have been turned down before, please contact us as soon as possible.
Q: AM I "AT RISK" FOR A PROFESSIONAL LIABILITY CLAIM?
A: In many businesses, the business owner provides advice or professional services for which customers pay a fee. If these services are in some way unsatisfactory, the customer may sue the service provider for professional negligence. Without question, YOU ARE A TARGET FOR THIS TYPE OF CLAIM. Professionals are now held more accountable for their mistakes than ever before. As time passes, higher and higher sums are being awarded to plaintiffs in malpractice suits. The need for professional liability insurance, written with adequate limits, has grown in direct proportion to these trends. In times past, the list of "recognized" professions was a short one. It included physicians, attorneys, accountants, architects and engineers to be professionals. That has changed. Below is a list of some of the "new" professions that are now recognized and for which "professional" liability is readily available:
Advertising Agencies, Appraisers, Auctioneers, Computer Software Companies, Data Processing Services, Financial Agents, Home Inspection Services, Investment Counselors, Management Consultants, Publishers, Shipping and Forwarding Agents, Social Service Agencies, Tax Preparers, Teachers
Q: WHAT IS THE NAPO PROFESSIONAL CHALLENGE?
A: The NAPO challenge arises from the fact that "organizing" is not yet a "recognized" profession by the courts or by the insurance industry generally. Professional liability deals with mistakes arising out of acts, errors or omissions in the rendering of or failing to render professional services that result in economic or physical loss.
To date the liability protection provided in the NAPOsure/Travelers program is written on a form that does not EXCLUDE professional liability arising from bodily injury or property damage in the classification. However, claims that allege only economic loss would not be covered.
Since many "organizers" extend their "professional" activities into some of the arenas noted above and in some cases, well beyond, we have been working to expand our program to be able to offer "PROFESSIONAL LIABILITY" specifically recognizing your professions.
Q: The SUBCONTRACTORS' Dilemma - TO HIRE OR NOT TO HIRE-THAT IS THE QUESTION?
A: Should I hire an employee, or should I use subcontractors? My accountant says one thing, my attorney says the opposite. Why would I want the "hassle" of employees, instead of the ease of a subcontractor?
From the perspective of your insurance advisor, it is imperative that you understand your risks and your responsibilities if you choose the subcontractor alternative.
- LIABILITY INSURANCE: Insurance underwriters attempt to measure the exposure to risk, and then try to assess a commensurate cost for that risk. That cost is your insurance premium. If you have employees, part of that assessment of risk is the amount of payroll you pay annually. If you hire subcontractors, the cost you pay to your subcontractors is used in a similar way. However, the insurance underwriter ASSUMES that the subcontractors you hire have their OWN Liability Insurance. Otherwise, you will be charged for the insurance that they should have been carrying. The way most businesses manage that risk is by insisting on having a Certificate of Liability Insurance from every subcontractor that they use.
- WORKERS COMPENSATION INSURANCE: Many organizers do not have employees, and therefore assume that they do not need to purchase Workers Compensation coverage. The courts, however, are making decisions that may impact your business. They look for compensation for injured workers, and YOU the CONTRACTOR are the logical first source.
If you hire a subcontractor, and he/she is injured on the job, and EVEN IF THEY ARE NOT YOUR EMPLOYEE, you, the employer may be held responsible for the injury or illness. The courts are assigning responsibility to the employer in more and more of these cases. You NEED to consider buying workers compensation insurance if you have hired workers - employees, or subcontractors.