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Market Outlook

2021 Property & Casualty Market Outlook

Like many other sectors of the economy, the commercial insurance industry is experiencing changes to both its market cycles and its operating procedures. In particular, 2020 brought an acceleration of a hardening insurance marketplace—one that is less friendly to insurance buyers—which is now nearly two years old. Capacity has left the market, reinsurance has become more expensive, underwriting has gotten stricter and, most importantly, premiums are on the rise for nearly every line of insurance.

In the Crane Agency 2021 Q1 P&C Market Outlook, we discuss what is driving current trends and how to navigate them.  We also provide a more in-depth look at the year ahead, including detailed information about what to expect by line of coverage in the Crane Agency 2021 Property & Casualty Outlook.

In any economic climate, it is of the utmost importance to partner with an insurance broker who has the experience and resources to suggest ways to mitigate risk. Implementing effective long-term risk management strategies can help businesses become more desirable to insurance companies in a difficult market and sometimes even assist in negotiating better coverage terms and pricing. At Crane Agency, we understand our clients’ needs because our organization was built by business owners and families just like you. We can help you prepare for uncertainty by suggesting the types of insurance products and services to help support your commercial and personal needs.  For more information, please contact your Crane Agency Broker, or call us today.

COVID-19 Updates, News

OSHA Considers Good Faith Efforts When Enforcing Compliance During Pandemic

U.S. Department of Labor  |  April 16, 2020

U.S. Department of Labor Considers Employer’s Good Faith Efforts When Enforcing Compliance During Coronavirus Pandemic

WASHINGTON, DC – The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) has issued interim guidance to advise compliance safety and health officers to evaluate an employer’s good faith efforts to comply with safety and health standards during the coronavirus pandemic.

Current infection control practices may limit the availability of employees, consultants, or contractors who normally provide training, auditing, equipment inspections, testing, and other essential safety and industrial hygiene services. Business closures and other restrictions may also preclude employee participation in training if trainers are unavailable and access to medical testing facilities may be limited or suspended.

During an inspection, compliance safety and health officers should assess an employer’s efforts to comply with standards that require annual or recurring audits, reviews, training or assessments. Officers should evaluate if the employer:

  • Explored all options to comply with applicable standards (e.g., use of virtual training or remote communication strategies);
  • Implemented interim alternative protections, such as engineering or administrative controls; and
  • Rescheduled required annual activity as soon as possible.

Employers unable to comply with OSHA requirements because local authorities required the workplace to close should demonstrate a good faith attempt to meet applicable requirements as soon as possible following the re-opening of the workplace.

OSHA will take employers’ attempts to comply in good faith into strong consideration when determining whether it cites a violation. The agency may issue a citation if it finds an employer cannot demonstrate any efforts to comply. To ensure corrective actions employers have taken once normal activities resume, OSHA will develop a program to conduct monitoring inspections from a randomized sampling of cases where the agency noted, but did not cite, violations.

This guidance takes effect immediately, and remains in effect until further notice. It is time-limited interim guidance in effect due to the current public health crisis. Visit OSHA’s COVID-19 webpage frequently for updates.

Under the Occupational Safety and Health Act of 1970, employers are responsible for providing safe and healthful workplaces for their employees. OSHA’s role is to help ensure these conditions for America’s working men and women by setting and enforcing standards and providing training, education, and assistance. For more information, visit www.osha.gov.

The mission of the Department of Labor is to foster, promote and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.

For more information, please contact your Crane Agency Broker Unit.

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Media Contacts:

Emily Weeks, weeks.emily.c@dol.gov

Release Number: 20-625-NAT

News

OSHA Guidance on Preparing Workplaces for COVID-19

To reduce the impact of COVID-19 outbreak conditions on businesses, workers, customers, and the public, it is important for all employers to plan now for COVID-19. For employers who have already planned for influenza pandemics, planning for COVID-19 may involve updating plans to address the specific exposure risks, sources of exposure, routes of transmission, and other unique characteristics of SARS-CoV-2 (i.e., compared to pandemic influenza viruses). Employers who have not prepared for pandemic events should prepare themselves and their workers as far in advance as possible of potentially worsening outbreak conditions. Lack of continuity planning can result in a cascade of failures as employers attempt to address challenges of COVID-19 with insufficient resources and workers who might not be adequately trained for jobs they may have to perform under pandemic conditions.

The Occupational Safety and Health Administration (OSHA) developed this COVID-19 planning guidance based on traditional infection prevention and industrial hygiene practices. It focuses on the need for employers to implement engineering, administrative, and work practice controls and personal protective equipment (PPE), as well as considerations for doing so.

This guidance is intended for planning purposes. Employers and workers should use this planning guidance to help identify risk levels in workplace settings and to determine any appropriate control measures to implement. Additional guidance may be needed as COVID-19 outbreak conditions change, including as new information about the virus, its transmission, and impacts, becomes available.

OSHA Guidance on Preparing Workplaces for COVID-19

OSHA Cornerstones – Q1 2020

Additional Resources:

OSHA Health & Safety Topics COVID-19

CDC Interim Guidance for Businesses and Employers

World Health Organization Coronavirus Guidance

 
Case Studies

Why Workers’ Compensation Premiums Increase at Audit

A recent article I read shared the story of a Restaurateur who had a great year, only to find out their Workers’ Compensation premium doubled at expiration due to an audit.  It made me cringe!  I partner with many restaurant owners and hope none of my clients experience the frustration this business owner suffered.  When you have a profitable year, you should feel proud of that accomplishment and not blindsided by a large additional expense.

A Workers’ Compensation Policy is a contract between the Insurance Carrier and the Insured.  It states the Insurance Carrier will pay for injury to employees in the scope of their work for the Insured.  It also states that the Insured supplies payroll projections at policy inception and any adjustments are made at audit, once the policy expires.  As an insurance broker, I have found one of the easiest ways to prevent clients from receiving a large audit is to touch base quarterly to discuss how their business is doing.  This accomplishes two things:

1) It ensures that the policy payrolls are in-line with current business operations

2) It provides the opportunity to increase payrolls during the policy term, if necessary, so any additional premium may be dispersed over remaining installments.

A large, unexpected bill is never a good thing and most premium audits, unless disputed, are due upon receipt with payment in full.  That is why I encourage my clients to keep payrolls and other exposures updated throughout their policy term.

If you’ve had a great year and expanded your operation, congratulations on your success!  Just remember that talking to your insurance broker on a regular basis and updating exposures throughout the year will not only keep your insurance premiums consistent, but also help to avoid any surprises at policy expiration.