August 3, 2008 Show
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Topics
Insurance Fraud - The Crime You Pay For
Learn About Insurance Scams,
Insurance In The News:
Pay as you go, auto insurance
Insurers offer discounts to drivers with installed monitors.
There are privacy implications.
Insurance Outrage of The Week:
An Insurance company canceled around 4,550 policies
after it finds internal errors gave customers inaccurate premiums.
Insurance Trivia:
Am I Covered:
Have a question or a comment. Call the show. 480-949-1310
Special Guest
Jim Quiggle
Coalition against insurance Fraud
www.insurancefraud.org
Term of The Week:
Umbrella Policy - Coverage for losses above the limit of an underlying policy or policies such as homeowners and auto insurance. While it applies to losses over the dollar amount in the underlying policies, terms of coverage are sometimes broader than those of underlying policies.
Umbrella liability insurance is so named because it acts like an umbrella, sitting on top of your auto and homeowners liability policies to provide extra protection.
Tune in next week because I am going to give you a tip about umbrella coverage and explain how it is used.
Larry's Tip of The Week:
Eighteenth century pirates and a nineteenth century German "Iron" Chancellor preceded the United States in the creation of a social system for the protection of injured workers. The modern workers' compensation system owes parts of its existence to this unique parentage.
Arrrrg, I'm Hurt!
Pirates, contrary to popular myth, proved to be highly organized and entrepreneurial. Prior to their assignment to the ranks of outlaws, they were considered highly-prized allies of the government; plundering and sharing the spoils with governors of the pre-Revolutionary colonies giving them a safe port. (not necessarily so different today)
Privateering (the gentleman's term for piracy) was a dangerous occupation; taking booty away from those who did not want to give it up leads to sea battles, hand-to-hand combat and injury. Because of the ever-present chance of impairment a system was developed to compensate injured "employees." There was one catch: he or she (there were female pirates as well) had to survive the wounds to collect as there was no recorded compensation for death.
Piratesinfo.com provides some information regarding the amount of payment made to the injured:
Loss of an eye - 100 pieces of eight (Spanish dollar, known as a piece of eight));
Loss of a finger - 100 pieces of eight;
Loss of left arm - 500 pieces of eight;
Loss of right arm - 600 pieces of eight;
Loss of left leg - 400 pieces of eight; and
Loss of right leg - 500 pieces of eight.
The average weekly wage for colonial Americans of this period equated to approximately two pieces of eight per week. Loss of an eye or finger would merit payment approximating 50 weeks of wages. The right arm was worth 300 weeks (a little less than six years). These compare rather closely to modern compensation schedules.
In addition to being compensated, injured crew members were allowed to remain on board and offered less strenuous duty. The first return-to-work program was created.
Today, our workers compensation rules vary slightly based on upon the state in which your business is located. All states require workers compensation on employees. A sole proprietor having no employees is not required to carry workers compensation on themselves. For owners of a corporation, LLC's and LLP's the rules vary so please check your state regulations.
If you are a business owner and not required to carry workers compensation on yourself, consider opting out of workers comp and purchase a disability policy. The disability policy will cost you the same or even less than workers comp. Besides saving money you will be covered for both illness and injury on and off the job. (workers comp only covers you on the job)
Reference: Insurance Journal - July 2008
Your Insurance Matters
Your Insurance Matters
Your Insurance Matters