Companies Sue over Michigan Fireworks Insurance Requirement

Several fireworks companies are suing over what they call Michigan’s excessive insurance requirements under a new state law.

The companies filed suit on Feb. 1 in Detroit federal court seeking to overturn a requirement to obtain $10 million in liability insurance in order to sell an expanded line of fireworks.

A state law that took effect this year allows the sale of more powerful fireworks such as firecrackers and other devices such as bottle rockets and Roman candles

The companies suing the state say the insurance provision is unconstitutional and favors larger companies that can afford the coverage, giving them an unfair advantage in the market.

A spokeswoman for Gov. Rick Snyder says the insurance level was appropriate given safety priorities with the expanded fireworks availability.

Source: Insurance Journal

Impact Of Changes To Work Comp Law In Michigan

As you may be aware, on Dec. 19, 2011, Michigan Gov. Rick Snyder signed legislation to reform Michigan’s Workers’ Disability Compensation Act. The goal of the revisions was to help clarify and modernize the act, as well as ensure stability when it comes to application.

Accident Fund Insurance Company has reviewed the legislation and has identified three areas that we believe will have the most impact moving forward:

· Employer-Directed Medical Care ― The new law allows employers to direct care for the first 28 days from the inception of care; previously, it had been 10 days.

· Disability ― This law basically codifies the decision made in the 2008 case of Stokes v. Chrysler. A disability is “total” if the employee is unable to perform any work suitable to the employee’s qualifications and training. A disability is “partial” if the employee retains the ability to earn some wages for suitable work.

· Wage-Earning Capacity ― In determining wage-earning capacity, the employer is able to look at not only work performed, but also jobs that are reasonably available that the injured worker could perform. Police and firefighters are exempt from this provision.

 

Source: Accident Fund Insurance Company

Make Sure You Insure Your Christmas Tree Lot!

One of the greatest memories from growing up in Traverse City is the annual trek to get the family Christmas Tree. Whether it’s going to a lot set up at a local ice cream stand that’s closed for the season or a sleigh ride at one of the many Christmas Tree farms in Northern Michigan.

And when you mix snow and ice, excited kids hopped-up on hot chocolate, hundreds of trees and a few cars, your bound to have mishaps. Make sure one of those ‘mishaps’ doesn’t cost you all of your season profits or more. Protect yourself with a liability insurance policy for your lot.

It’s cheaper than you might think, and covers you for things like a tree falling on a customers leg or a child getting sick from hot chocolate or apple cider that you served.

Have a Merry (and safe) Christmas!

What is “professional liability”?

Professionals, such as doctors, lawyers and accountants, along with a growing number of other occupations, work in fields that need special protection. Pharmacists, architects, engineers, opticians, beauticians, insurance agents, and various types of consultants are frequently sued due to the high standard of accountability under which they operate.

In most instances, a type of coverage called a general or commercial general liability policy will protect a business against the damage or injury their actions may cause to others. However, this type policy is designed to handle loss associated with fairly generic and low-risk activities. Examples are customers who cut their hands on a sharp edge of an office’s reception desk or a customer who is hurt when she collides with a clerk who is stocking a shelf. Much more is at stake with professional activities. Consider several aspects that make professional liability tougher to insure:

Professional Advice – persons who need professional liability coverage are those whom the general public depend upon as experts. They provide assistance with special issues such as personal health, expensive business transactions, or personal crises. Many of these situations also involve a high-level of emotion. When something goes wrong, it is much more likely that a client will pursue “justice” through the courts.

Professional Reputation – Any claim a client makes against a professional involves that individual’s reputation. In many instances, paying a claim bears the stigma of admitting to a mistake. The professional may suffer from a lowered status and could face sanctions from related professional associations or regulatory authorities. Further, many professionals are proud of their standing and their abilities; admitting being wrong is usually fiercely resisted.

Higher Defense Costs – Defending against claims of professional error or incompetence is usually very expensive and time-consuming. Trials will usually involve expert testimony and technical arguments and the likelihood of resolving issues quickly (particularly via a settlement) is extremely low.

Identifying A Loss – The timing between when a loss occurs and when a claim or suit is filed can be a mystery. A professional may find out she’s being sued today for something that happened ten years ago. The potential for a huge time gap before a loss arises makes professional liability a very difficult type of business to underwrite and to price.

You have invested a lot in your business and your profession. It is important to be sure that you take the steps to deal with the special as well as the routine sources of loss. As usual, it is always a good idea to discuss your questions and needs with an insurance professional.