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Work Comp Exemptions for Marijuana Businesses

Work Comp Exemptions for Marijuana Businesses

As the marijuana business landscape continues to change in California, so do the insurance rules. In many cases, what you don’t know could actually save you money. Nonprofit vs. For Profit With the implementation of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) in January 2018, adult-use cannabis businesses now have a choice. These businesses may now be organized as non-profit or for-profit. There are advantages and disadvantages to both types of business formats. If you are still deciding which is right or your business, a great article on the pros and cons of each can be found here. Whether you are just starting out or thinking about converting your business from non-profit to for-profit status, you should know that status affects your workers’ compensation insurance. What Does Work Comp Have To Do With It? As you are aware, workers’ compensation insurance is based on the number of employees and their payroll. The more employees you have, the higher your payroll and the higher your insurance premium will be. Non-profit businesses must report all payroll, even for owners and officers. This is an added expense when for-profit businesses can exclude owners and officers from coverage. There are caps for payroll for the following: Executive Officers, Partners, Individual Employers and Members of a Limited Liability Company. The minimum reported payroll for included officers is $52,900 and the maximum is $133,900. However, even those amounts can have a significant impact on the Workers Compensation premium. Have You Made the Change? If your cannabis business has converted from non-profit status to for-profit status, you should be aware that the status...
Five Insurance Basics for Businesses

Five Insurance Basics for Businesses

Whether you are starting a new business, or your company is well-established, protecting that business should be one of your main concerns. Locked doors, security personnel and a well-padded bank account are all nice things to have, but they can only do so much. Business insurance can be a hassle, but at Hayes Brokers we like to do our best to take the sting out of it. Here are the insurance basics for businesses, whether new or old. 1. General Liability A general liability policy should be at the top of the insurance list for any business owner. This policy can cover the business premises, the business operations off premises, and a host of other issues that may crop up related to advertising injury, products and completed operations and more. General liability insurance can cover both personal injury to customers and property damage to their property. Some might even call this policy “prepaid legal” since it will provide legal representation in the event of a claim or lawsuit related to the business operations. 2. Property Insurance Whether you own a building or just the contents, property insurance is a must. Property insurance is versatile enough to cover not only your structure and your company contents, but also business income or business interruption coverage in the event of a loss that leaves your business unable to operate for a period of time. There are many options available with property policies, such as equipment breakdown (boiler & machinery) coverage, ordinance or law, sinkhole collapse and more. Talk to your broker to find out which options are right for your business. 3....
Three Overlooked Policies Business Owners Need

Three Overlooked Policies Business Owners Need

When you start your own business, the main focus is getting things started. That often means going without necessary items in order to make sure the business gets a strong push out of the gate. New (and even some seasoned) business owners will often go without to make sure their hard work isn’t for nothing. One area where it is easy to cut corners is insurance. The policies entrepreneurs often leave on the table are the very ones that could be most helpful. Here are three overlooked policies every business owner needs: 1. Workers Compensation If you have a small business or even a large one with a lot of payroll, it can be tempting to file an exemption or waiver with the state, and leave yourself without workers compensation coverage in the event of an accident. This is not the best decision. As a sole proprietor or new business owner you may be the only employee your company has or you may be one of the hardest-working employees. What happens to your company if your hardest-working employee is unable to work due to a work-related injury? If you think your health insurance will cover you, think again. Many health or medical insurance policies will exclude coverage for on-the-job injuries. If you are injured on the job and unable to work for any length of time, will your business survive? Will your family suffer financially? Solution: Add yourself to the worker’s compensation policy. In most states there is a cap on owner/officer payroll (find out more here), so the premium investment won’t be as much as you think. You...
Contractors: Time for an Insurance Checkup

Contractors: Time for an Insurance Checkup

As Spring begins to bloom, many contractors come out of hibernation. It’s time now for potential customers to start building, trimming, cleaning, mowing, moving, etc. The phone is about to start ringing again. If your business is just starting to gear up again after a long winter’s nap, now is the time to review your business and your insurance coverage. Are you ready for Spring? Has Your Coverage Lapsed? During the lean months of winter, some contractors find their income from the heavy months wasn’t able to sustain times of no work. If you failed to pay your insurance premium, your policy may have lapsed, meaning you have no insurance at this time. Lack of general liability or workers compensation insurance could put you in jeopardy with general contractors, municipalities, and state agencies that require coverage to get, keep and use your business license. Lack of auto liability insurance could risk your driver’s license. Pull out your policies, dust them off, and call your insurance broker to make sure coverage is still in place and valid. When you make that call, go ahead and schedule an appointment for a risk management analysis to review current coverage and see if there is anything else you might need. Check Your Equipment We know you’d never leave for a job site without the proper tools for the job. Have you purchased any new equipment? Are you planning to lease any equipment over the next several months? Review the scheduled equipment on your inland marine policy and compare it to your current tools on hand to be sure they match. If items need...
Commercial Lines Insurance Checkup

Commercial Lines Insurance Checkup

No matter when your annual insurance policies begin or end, the new calendar year is always a good time for an insurance checkup. Pull out your policies, get your broker on speed dial, and consider these questions: Did You Hire Any New Employees? New employees can affect your insurance policies in many different ways: Workers compensation payroll may be increased, resulting in an increase in premium at audit. Auto insurance: while most new employees don’t affect your insurance premium, a new driver with a questionable or bad driving record could increase your premium or put your coverage in jeopardy. All new employees should be added as drivers to your policy upon hire, even if you don’t think they will be driving. General Liability: more employees means more work completed, which could result in more revenue. This could increase your premium at audit. Did You Move? If your office moved, did you inform your broker or insurance company? A larger or smaller premises may affect your liability insurance premium. The materials and construction of your office structure have an effect on your insurance premium, so it is important to inform your broker if you have moved. Real property coverage is not transferable so if the wrong location address is on your property insurance policy you may be paying for coverage on a building and business personal property that will not be valid in the event of a claim. Flood insurance is also not transferable, so you will need to cancel your old policy and purchase new coverage on the current location. Other types of nontransferrable coverage include boiler and machinery...