Transfer of Risk - Do you know What your Buying? Business Interruption Insurance
Don Noel
Non-Profit Insurance Services, Inc.
Everyone thinks about hurricanes (and rightfully should) when thinking about insurance, but there are a myriad of other perils and events that your property policy covers. This month, I’d like to focus on Business Interruption Insurance, which is sometimes also called “Time Element” insurance.
Business interruption insurance can be defined as: Insurance covering loss of income suffered by a business when damage to its premises by a covered cause of loss causes a slowdown or suspension of its operations during the time required to repair or replace the damaged property.
Many of you know how much coverage you have if you’re sued, or if your building blows down. How many of you know what would happen if a fire destroyed your administrative offices, or a tornado wiped out your entire operation and you were unable to operate for a period of days, weeks or even months? Where would your income come from? Could you move and resume operations so quickly that your financial health would not be affected? Could you pay for the normal operating expenses that don’t stop just because of a loss (think: electric, payroll, benefits, taxes, etc.)? Probably not, and that’s why you need Business Interruption coverage.
Let’s use a hypothetical example: Disney Behavioral Services, Inc. of Orlando has one major building and 11 satellite buildings throughout Orange County, Florida. DBS has an annual income of $50 million, and almost 100% of its income is derived from billings to Medicare and Medicaid.
On January 14, at 3 am, an electrical fire caused by a faulty extension cord starts in the administrative offices, and by the time the fire is extinguished the offices, along with a major portion of the main building, suffer fire, smoke and water damage. Effectively speaking, DBS is without computer servers, billing records and a substantial number of patient treatment facilities.
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Understanding Workers’ Compensation
Jennifer Lister
Workers’ Compensation Supervisor
FARA
Please allow this to serve as a brief understanding of the workers’ compensation system, and what your employees may expect once in the system. When an accident and injury occurs, it is the employee’s responsibility to report it immediately to his or her employer. The employer’s responsibility is to complete the Notice of Injury, refer for initial medical treatment, and report the injury to FARA immediately. An employer may report the injury to FARA either by E-mailing claimopening@FARA.com or faxing to 877- 652-3272.
Once an employee treats with his/her Primary Care Physician he/she will be given a DWC-25, wherein it will clearly state if the injury is work related, and if additional treatment is being recommended such as diagnostic testing, physical therapy, or possible referral to a specialist due to the severity of the injury. Please note after the employer’s initial referral for medical treatment, all other authorization must go through FARA. Workers Compensation will not cover for any treatment/testing without prior authorization from FARA.
- Letter from the Desk of the Chairman
- F.I.T. Press Release
- Online Claims Access: iClaimsExpert
- Transfer of Risk: Do You Know What You're Buying? This month: Business Interruption Insurance
- Understanding Workers’ Compensation
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