California Updates Employee Leave Requirements for Coronavirus
In response to the coronavirus (COVID-19) pandemic, states have passed new laws and issued new regulations and guidance about employee leave taken for COVID-19 reasons. These provisions are in addition to the federal Emergency Paid Sick Leave and Emergency Family and Medical Leave Expansion requirements passed on March 18 as part of the Families First Coronavirus Response Act (FFCRA). Employee leave requirements for Coronavirus in California are listed below.
In general, employee leave permitted under new state COVID-19 rules and guidance varies with respect to factors like the employers and employees covered by the leave, the length and purpose of the leave, whether the leave is compensated and at what rate, and whether the leave is provided under a new law or rule, or covered under an existing provision.
This Compliance Bulletin briefly describes new state employee leave provisions and guidance enacted or issued in response to the COVID-19 pandemic, along with links to government resources providing further information. Information about similar measures in select major cities is also included. The document will be updated with additional new employee leave rules in this rapidly changing compliance area.
California Employee Leave Requirements for Coronavirus
The California Labor Commissioner has issued FAQs on employee leave options, compensation and salary in the context of COVID-19. In addition, Governor Newsom issued an executive order requiring large employers to provide up to 80 hours of paid leave for food sector workers for certain COVID-19-related reasons. Covered workers include farm workers, grocery workers and food delivery workers, among others. The measure was intended to provide paid leave for employees not covered by FFCRA’s paid leave provisions. Click here for more information.
The following entries describe select local leave laws enacted in response to the COVID-19 emergency. Additional localities (such as San Mateo County and Santa Rosa) have passed similar measures. Employers should familiarize themselves with the leave laws that apply in their county, city or town.
Long Beach—Effective May 19, 2020, a Long Beach ordinance imposes a paid sick leave requirement on employers that have 500 or more employees nationally, and that are not required to provide FFCRA emergency paid sick leave. Under the ordinance, full-time employees are entitled to 80 hours of paid leave, and part-time employees are eligible for paid leave in an amount equal to their average number of work hours over a two-week period, for specified COVID-19-related reasons. As with the FFCRA, different rates of compensation apply, depending on the reason for leave. The ordinance also contains pay caps and employee and employer exceptions, such as for health care worker and emergency responder employees (as defined in the ordinance).
Los Angeles—Mayor Eric Garcetti has issued a public order, effective April 10, 2020, requiring up to 80 hours of supplemental paid sick leave for certain workers for specified COVID-19-related reasons. The order applies to private employers with 500 or more employees within the city of Los Angeles, or 2,000 or more employees within the United States. The order includes employer and employee exemptions, and pay caps apply. The city has issued rules to implement the order.
Los Angeles County—Under an urgency ordinance, employees in unincorporated areas of Los Angeles County are entitled to 80 hours of supplemental paid sick leave for specific COVID-19-related reasons, retroactive to March 31, 2020. Part-time employees receive paid sick leave equal to their average two weeks’ pay. Pay is capped at $511 per day and $5,110 total.
The ordinance applies to employers with 500 or more employees nationally, but employers covered by the FFCRA or the state order requiring paid leave for food sector employees are exempt. Employees who are emergency responders or health care providers, as defined in the ordinance, are not entitled to the leave.
Oakland—On May 12, 2020, Oakland passed a law requiring employers with 500 or more employees to provide their workers with emergency paid sick leave for specified COVID-19-related reasons, including employees at least 65 years old or at other risk of serious illness from COVID-19 exposure. The law took effect immediately upon passage. Full-time workers receive 80 hours of leave, while part-time workers are entitled to an amount of leave equal to their average work hours over a 14-day period, based on hours worked during the period Feb. 3 – March 4, 2020. Pay caps and exemptions, including for health care worker and emergency responder employees, apply.
Sacramento—Under a city ordinance effective June 30, 2020, employers must provide employees up to 80 hours of supplemental paid sick leave for specified COVID-19-related purposes. The ordinance applies only to employers that have 500 or more employees nationally and are exempt from FFCRA paid sick leave requirements. Exceptions apply for employees who are emergency responders or health care providers, and employers can use certain employee leave provided for COVID-19 purposes as a credit toward the leave required under the ordinance. As with FFCRA paid sick leave, compensation varies according to the reason for the leave, and daily and aggregate pay caps apply.
San Francisco—As of April 17, 2020, the San Francisco Public Health Emergency Leave Ordinance requires employers with 500 or more employees worldwide to provide their San Francisco employees with up to 80 hours of emergency paid sick leave for certain coronavirus-related purposes. Click here for FAQs from the city on the new law.
The city of San Francisco has also passed the Workers and Families First Program, providing $10 million to businesses with employees in San Francisco to provide five days of sick leave beyond employers’ existing policies. The additional sick leave is available only to employees who have exhausted their currently available sick leave, have exhausted or are not eligible for federal or state supplemental sick leave, and whose employer agrees to extend sick leave beyond current benefits. The city has released an employer guide on the program.
The city has also published guidance on San Francisco Paid Sick Leave and the coronavirus.
San Jose—San Jose has passed a paid sick leave ordinance, effective April 8 – Dec. 31, 2020, in response to the COVID-19 crisis. The ordinance is meant to fill the gaps left by the FFCRA, and it requires employers to provide eligible employees with up to 80 hours of paid sick leave for specified COVID-19 related reasons. The city has issued FAQs on the ordinance.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business.
Extreme summer temperatures are not only uncomfortable, they are also dangerous for your health. This is particularly true for older adults and children who are more susceptible to illness. Read on to learn more about heat-related illnesses and tips for preventing them in the summer heat.
Stay Cool In The Summer Heat
Heat Exhaustion occurs when the body is not able to sweat enough to cool
itself. Symptoms of heat exhaustion include:
Dizziness, weakness,
nausea, headache and vomiting
Blurry vision
Body temperature of
101° F
Sweaty skin
Feeling hot and
thirsty
Having difficulty
speaking
When someone is suffering from heat exhaustion, he/she should move into a cooler place and drink plenty of water immediately.
Heat Stroke is the result of untreated heat exhaustion and includes the
following symptoms:
Sweating
Unawareness of heat
and thirst
Body temperature rises
rapidly above 101° F
Confusion or delirium
Loss of consciousness
Seizure
When someone is suffering from heat stroke, medical personnel should be called immediately, as the condition is life-threatening. Place ice packs on the person’s armpits and groin until help arrives.
Healthy Summer Heat Hints
To avoid heat illnesses in summer temperatures, remember to drink lots of water – even if you are not thirsty. Additionally, wear light-colored, lightweight clothing made of natural fibers and put on a well-ventilated hat. Lastly, avoid leaving air-conditioned areas in the middle of the day if you can. Instead, get things done outside in the early morning or evening when temperatures are cooler.
The combination of heat and humidity in the summer months
can be downright uncomfortable and even dangerous. Stay cool by following these
safety tips:
Drink plenty of water. The average adult needs eight 8-ounce glasses of water a day, and even more during hot weather.
Skip the caffeine and soda; drink water instead.
Dress for the weather. When outside, wear lightweight clothing of natural fabric and a well-ventilated hat.
Eat light. Replace heavy or hot meals with lighter, refreshing foods
For more tips, click here to view the American Red Cross recommendations for summer safety.
Stay Safe in the Summer Heat
Though basking in the sun is
relaxing and fun, it is also dangerous for your health. Skin cancer is both
dangerous and common – it is the most common form of cancer in the United States
and over two million people are diagnosed annually. Even more startling, sun
exposure is the primary cause of over 90 percent of non-melanoma skin cancer
cases reported in the United States.
Stay Safe in the Sun
Some people possess
characteristics that place them at a higher risk for developing the disease.
These risks include:
Having a large number of moles on the body.
Red or blonde hair, blue eyes, fair skin and freckles.
Difficulty tanning and skin that burns easily.
Family history of skin cancer.
Taking medication that increases sun sensitivity.
Use These Prevention Techniques While You Are Out in the Sun:
Avoid getting a
sunburn while outside.
Stay out of the sun
between 11 a.m. and 3 p.m. when the sun is at its peak in the sky.
Wear clothes made of
tightly woven fabrics and a hat that shields your face, neck and ears.
Wear sunglasses to
protect your retinas and prevent the development of cataracts.
Use sunscreen that is
at least SPF 15, applying it all over your body and lips.
Do not use tanning
beds; they are just as damaging as natural sunlight.
Healthy Summer Safety Hints
Avoiding excessive sun exposure is
ultimately the best way to protect your body from skin cancer.
If you must go in the sun, routinely inspect your body for any changes such as a new freckle or enlarged mole. If you suspect that a spot on your skin is new or has changed in appearance, consult a dermatologist immediately.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more.
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive personal insurance quote!
Understanding Workers’ Compensation changes for COVID-19. Under most state workers’ compensation (WC) laws, COVID-19 may be a compensable, work-related condition only if an employee can show that:
He or she contracted the coronavirus while performing services growing out of and incidental to his or her employment; and
The disease arose out of that employment (work relatedness).
As of June 30, 2020, however, several states have made—or are in the process of making—changes that reverse this burden for certain employees. In general, these changes mean that it would be an employer’s burden to prove that an employee didnot contract COVID-19 on the job, rather than the employee’s burden of proving that he or she did contract it on the job. While most of these changes apply only to certain types of workers—such as first responders, health care providers or those who are otherwise deemed “essential”—some changes apply the new presumption more broadly.
Many states have also taken actions that aim to reduce the impact of COVID-19-related claims on an employer’s WC premium rates.
This Compliance Bulletin provides general information about the COVID-19-related changes made to state WC laws and policies.
Employers should follow all workplace safety guidance from the Occupational Safety and Health Administration (OSHA), the Centers for Disease Control and Prevention (CDC) and local health authorities to minimize the risk of employees contracting COVID-19 on the job.
Employers should also familiarize themselves with state laws that may impact their workers’ compensation COVID-19 obligations and premiums.
Workers’ Compensation Law Background
Workers’ compensation is a no-fault system that provides medical expenses and lost-income replacement for employees who sustain injuries or illnesses that arise out of and in the course and scope of their employment.
Each state has its own workers’ compensation law that governs of the process of determining whether an injury or illness is work related and therefore compensable. Although workers’ compensation benefits are usually the exclusive remedy against an employer for any compensable condition, employers may also be subject to private lawsuits if they intentionally cause harm to an employee or fail to have workers’ compensation coverage as required.
Workers’ Compensation Changes for COVID-19 Compensability Presumptions
The table below provides a general overview of the changes to state workers’ compensation laws that have been enacted to provide a presumption that COVID-19 is a compensable, work-related condition for certain employees. Similar changes remain pending in other states. Employers should become familiar with (and regularly check for updates to) the detailed requirements that may affect them under all applicable laws.
Premium Calculations
The premiums an employer must pay for coverage under a workers’ compensation insurance policy is usually determined based on payroll, measures of risk associated with the jobs that workers perform and the number and type of WC claims that have been made against the employer in the past. Due to the effects the COVID-19 pandemic may have on these factors, some states (including California, for example) allow employers to reclassify employees or exclude COVID-19-related claims from their calculations.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive workers’ compensation insurance quote!
Even as stay-at-home orders and restrictions are lifted, daily operations won’t be business-as-usual for many across the country. The coronavirus (COVID-19) pandemic is still going on, despite businesses reopening. Moreover, public health officials and experts are warning of a potential second wave of COVID-19 cases.
Of course, no one knows if or when a second wave of infection will strike—or whether it will be as bad as or worse than the first wave. As such, businesses across the country should start planning today so they’re properly prepared for a second wave of COVID-19 cases.
Review Federal, State and Local Guidancefor Second Wave of COVID-19 Cases
Similar to the first wave of COVID-19 cases, governmental guidance will play a large role in how your organization should respond to a second wave of COVID-19 cases.
The COVID-19 pandemic has impacted states and regions in different ways. A second wave of coronavirus cases may follow the same suit, affecting different regions at different times and in varying capacities.
This means that businesses in one region may be able to remain open, while businesses in other regions may need to close or adjust for a second time. As such, it’s critical to understand and continually review all relevant state and local orders to determine if your business needs to take action in the face of a second wave of COVID-19 cases.
Review Your Organizational Risks
Even if there aren’t federal, state or local recommendations to close your business or make changes to prevent the second spread of COVID-19 cases, that doesn’t mean your organization is safe from the coronavirus. What’s more, some businesses may have greater exposures than others, underscoring the importance of performing a thorough risk assessment to determine how you should respond.
Similar to conducting a risk assessment for planning to reopen following the first wave of COVID-19 cases, your organization should conduct a risk assessment in preparation for a reemergence of COVID-19 cases. While the complexity of risk assessments will differ from business to business, they typically involve the following steps:
Identifying the hazards—When it comes to planning for a second wave of the coronavirus, businesses need to think critically about their exposures, particularly if an infected person entered their facilities. When identifying hazards, it’s a good idea to perform a walkthrough of the premises and consider high-risk areas. It’s also important to consider what tasks employees are performing and whether or not they are especially exposed to COVID-19 risks when performing their duties.
Deciding who may be harmed by a second wave of cases and how—Once you’ve identified hazards to your business, you need to determine what populations of your workforce are exposed to COVID-19 risks. When performing this evaluation, you will need to make note of high-risk individuals (e.g., staff members who meet with customers or individuals with preexisting medical conditions).
Assessing risks—Once you have identified the risks facing your business, you must analyze them to determine their potential consequences. For each risk facing your business, you’ll want to determine:
How likely is this particular risk to occur?
What are the ramifications should this risk occur?
When analyzing your risks, consider potential financial losses, compliance requirements, employee safety, business disruptions, reputational harm and other consequences.
Controlling risks—With a sense of what the threats to your business are, you can then consider ways to address them. There are a variety of methods businesses can use to manage their risks, including:
Risk avoidance—Risk avoidance is when a business eliminates certain hazards, activities and exposures from their operations altogether.
Risk control—Risk control involves preventive action.
Risk transfer—Risk transfer is when a business transfers their exposures to a third party.
For preparing for a second wave of the coronavirus, control measures could include cleaning protocols, work-from-home orders and mandated personal protective equipment (PPE) usage.
Monitoring the results—Risk management is an evolving, continuous process. Once you’ve implemented a risk management solution, you’ll want to monitor its effectiveness and reassess.
Remember, the COVID-19 pandemic so far has been rapidly evolving, and guidance can change quickly. Your business should be prepared to take action at short notice.
Maintain Workplace Safety
Maintaining workplace safety is crucial to preventing the spread of COVID-19 at your organization, and will continue to be crucial in protecting your organization against a second wave of COVID-19 cases. There are a number of OSHA and Centers for Disease Control and Prevention (CDC) workplace controls to consider if your risk assessment determines that COVID-19 poses a threat to your employees or customers. For instance, you should:
Implement administrative controls—Typically, administrative controls are changes in work policies or procedures that reduce or minimize an individual’s exposure to a hazard. An example of an administrative control for the coronavirus is establishing alternating days or extra shifts that reduce the total number of employees in a facility at a given time.
Utilize PPE—Businesses should focus on training workers on proper PPE best practices. Employees should understand how to properly put on, take off and care for PPE. Training material should be easy to understand and must be available in the appropriate language for all workers.
Consider engineering controls—Engineering controls protect workers by removing hazardous conditions or by placing a barrier between the worker and the hazard. For COVID-19, engineering controls can include:
Installing high-efficiency air filters
Increasing ventilation rates in the work environment
Installing physical barriers, such as clear plastic sneeze guards
Screen employees before they enter the building— To keep employees safe, consider conducting screening procedures to identify potentially ill employees before they enter the workplace. The Equal Employment Opportunity Commission permits employers to measure employees’ body temperatures before allowing them to enter the worksite. Any employee screening should be implemented on a nondiscriminatory basis, and all information gleaned should be treated as confidential medical information under the Americans with Disabilities Act—specifically, the identity of workers exhibiting a fever or other COVID-19 symptoms should only be shared with members of company management with a true need to know. Be sure to notify employees of this practice prior to implementation in order to avoid catching them off guard.
Be adaptable—You should be prepared to change your business practices if needed to maintain critical operations. This could involve identifying alternative suppliers, prioritizing existing customers or suspending portions of your operations.
Create a dialogue with vendors and partners—Talk with business partners about your response plans. Share best practices with other businesses in your communities, and especially those in your supply chain.
Encourage social distancing—Social distancing is the practice of deliberately increasing the physical space between people to avoid spreading illness. In terms of COVID-19, social distancing best practices for businesses can include:
Instructing workers to maintain at least 6 feet of distance from other people
Hosting meetings virtually when possible
Limiting the number of people on the job site to essential personnel only
Discouraging people from shaking hands
Encourage employees to stay home if possible—Statistically speaking, the best way to prevent the spread of COVID-19 is to minimize person-to-person contact. As such, employers are using the following strategies to encourage employees to stay home:
Expanding telecommuting policies to ensure as many employees as possible can work from home
Highlighting benefits offerings that employees might not know about, including short-term disability
Expanding leave policies
Offering financial incentives for employees to stay home and not come into the office
Manage the different risk levels of their employees—It’s important to be aware that some employees may be at higher risk for serious illness, such as older adults and those with chronic medical conditions.
Separate sick employees—Employees who appear to have symptoms (e.g., fever, cough or shortness of breath) upon arrival at work or who become sick during the day should immediately be separated from other employees, customers and visitors, and sent home. If an employee is confirmed to have COVID-19, employers should inform fellow employees of their possible exposure to COVID-19. The employer should instruct fellow employees how to proceed based on the CDC Public Health Recommendations for Community-Related Exposure, and applicable local guidance.
Support respiratory etiquette and hand hygiene—Businesses should encourage good hygiene to prevent the spread of the coronavirus. This can involve:
Providing tissues and no-touch disposal receptacles
Providing soap and water in the workplace
Placing hand sanitizers in multiple locations to encourage hand hygiene
Perform routine environmental cleaning and disinfection—Businesses should regularly sanitize their facility to prevent the spread of COVID-19. Some best practices include:
Cleaning and disinfecting all frequently touched surfaces in the workplace, such as workstations, keyboards, telephones, handrails and doorknobs.
Discouraging workers from using other workers’ phones, desks, offices, or other tools and equipment, when possible. If necessary, clean and disinfect them before and after use.
Providing disposable wipes so that commonly used surfaces can be wiped down by employees before each use.
Be sure to consider the needs of your business and implement strategies that are specific to controlling and promoting workplace safety at your organization.
Communicate With Employees
The past few months have caused immense change for your business and your employees. A poll from Ginger, a mental health provider, revealed that 88% of U.S. workers have been moderately to extremely stressed during the past 4-6 weeks, with more than two-thirds reporting these times are the most stressful in their career.
It’s not possible for you to control the pandemic, but it is possible for you to help ease the stress your employees are experiencing. In these uncertain times, it’s imperative that you clearly communicate your business’s plans as frequently as possible. Here are some tips for effective employee communications:
Be open with employees about management decisions and ask for suggestions to rectify problems.
Provide as much information as possible about the pandemic.
Communicate the future of the business with employees often—in meetings, on the company intranet site, in newsletters and in blogs.
Be empathetic in your communications, as every employee’s situation may be different.
Additionally, try to give as much notice as possible if your organization plans to make significant workplace changes, including shutting down operations or requiring employees to work from home.
Prepare Now to Stay Safe Later
Due to the nature of the COVID-19 pandemic, rules and regulations are constantly changing. You should be prepared to change your business practices if needed to maintain critical operations. For more information on how to keep your business, employees and customers safe whether a second wave of COVID-19 cases occurs or not, contact GDI Insurance Agency, Inc.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more. The GDI team has developed an “insurance cost reduction” quoting plan, that provides you with the best coverage at the best rate!
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive business insurance quote!
The Newly Acquired or Constructed Property Extension
As a business owner, your commercial property needs can change over time to help meet operational requirements and satisfy customer demands. Specifically, expanding your business will likely require you to obtain additional property. When acquiring additional business property, however, it’s important to reassess your commercial insurance coverage and ensure you will remain adequately protected following such an expansion. Fortunately, the newly acquired or constructed property extension found in many commercial property policies can offer temporary protection in these situations.
Review the following guidance for an outline of key coverage features and limitations for the newly acquired or constructed property extension.
Key Features of the Newly Acquired or Constructed Property Extension
At a glance, most commercial property policies offer newly acquired or constructed property coverage as an extension of your existing building or business personal property insurance. This extension can provide protection for commercial property that you acquire throughout your existing policy period.
You can typically apply the newly acquired or constructed property extension to your existing building insurance policy in the following situations:
When you construct a new building—If you decide to construct a new building for your business, this building should be covered by the extension—as long as it’s located at the premises listed in your existing policy declarations. For example, if you decide to build a new and improved structure in the same spot as your existing building, you will remain covered. Keep in mind that although this extension can offer protection for your building while it’s under construction, it does not provide coverage for the actual construction project. Be sure to secure additional insurance for construction project protection.
When you acquire a building at a new location—In the event that you acquire a building at a different location from the premises listed on your existing policy declarations, you could still be covered by the extension—depending on how you use the new space. For instance, most policies allow the extension to apply if you use the new building as a warehouse or for a similar purpose as your current premises.
The new extension can also be applied to your existing business personal property insurance policy to provide protection for commercial property stored at the following locations:
A newly acquired building— If you acquire a building at a different location from your existing premises, the extension should cover any property within that building—including the property acquired after your policy inception date.
A newly constructed building—If you decide to construct a new and improved building at your existing premises, the extension should cover any property within the new structure—including the property acquired after your policy inception date.
Your existing building—If you obtain additional property for your existing premises (e.g., new office furniture), the extension should cover this new property.
This extension generally does not apply to personal property of others that is temporarily in your possession during the course of installing or performing work on that property. Additionally, coverage for personal property of others that is temporarily in your possession during the course of manufacturing or wholesaling activities by your business is also excluded.
Key Limitations of the Newly Acquired or Constructed Property Extension
It’s important to note that the newly acquired or constructed property extension is a temporary insurance solution. This extension is only intended to offer protection for your business until you contact your insurer and have any newly acquired or constructed property officially added to your policy.
The new extension is also subject to certain limits. These limits usually span between $250,000 and $1 million for newly acquired buildings, and between $100,000 and $500,000 for newly acquired personal property.
Your new property will be subject to these limits until you inform your insurer of the acquisition. Once you contact your insurer and have the new property officially added to your policy, it will be covered at the limit listed on your building insurance or business personal property insurance policy. Make sure you update your policy limits to reflect the added value of any new property.
Further, this extension is typically subject to the following time and value limitations:
Time limitations—Under most commercial property policies, newly acquired or constructed property can only be covered by this extension if you inform your insurer of the acquisition within a set number of days and pay any additional premium that your insurer charges. In terms of the coverage period, protection under this extension ends after a set amount of time has passed since you acquired the property or started construction on it—usually between 30 and 180 days.
Value limitations—Some commercial property policies only provide coverage under this extension if you also satisfy specific insurance to value standards (the ratio of your limit of coverage to the value of your insured property). Such standards might include having a coinsurance percentage of at least 80% or possessing insurance that’s written on a value reporting basis.
Keep in mind that every commercial property policy is different. Be sure to review your unique policy to understand the full extent of your coverage as it pertains to the newly acquired or constructed property extension.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more.
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive commercial property insurance quote!
Insurance Considerations for Riots, Vandalism and Civil Unrest
Riots, vandalism and civil unrest can create unique challenges for business owners—resulting in stolen, damaged or defaced goods and extensive property damage. That’s why it’s crucial to secure proper commercial insurance coverage to adequately protect your business in the event that such a situation occurs within your community.
Review the following guidance for an outline of various insurance solutions that can offer compensation for losses related to riots, vandalism and civil unrest, as well as best practices to consider when making claims in these situations.
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Coverage for Riots, Vandalism and Civil Unrest
The following forms of commercial insurance coverage can provide protection in the event that your business suffers a loss related to riots, vandalism or civil unrest:
First-party property insurance—This form of coverage can offer compensation for physical losses or property damage to the insured premises and contents. Losses caused by riots, vandalism or civil unrest are typically covered on both “named peril” and “all risk” commercial policies. However, be sure to review your policy to ensure it doesn’t exclude these situations. Keep in mind that your policy might utilize different terminology for these situations (e.g., “civil commotion” as opposed to “civil unrest,” or “riots” and “malicious mischief” as opposed to “vandalism”). Make sure you understand all policy definitions.
Business interruption insurance—This type of policy (also known as business income insurance) can provide coverage for loss of income that results from having to temporarily halt business operations to recover from a physical loss or property damage to the insured premises. For your policy to be triggered, the halt of business operations must be directly caused by a physical loss or property damage that was incurred by a covered peril—such as a vandal smashing your property’s windows with a brick. In addition, some insurers might not allow your policy to be triggered unless the physical loss or property damage results in a “complete and total” halt of business operations. This means that if the physical loss or damage only affects some of your operations—but not all—you might not be covered. With this in mind, be sure to review your policy wording to understand the full extent of your coverage.
The civil authority clause—Most business interruption policies also include a civil authority clause, which can offer compensation when an action or order of civil authority temporarily prevents or restricts access to the insured premises—forcing the affected business to either limit hours or halt operations altogether. Although this clause still requires a physical loss or property damage to occur in order to be triggered, the damaged property does not necessarily have to be owned by your business—it typically just needs to occur within a set distance of your operations.
Extra expense insurance—This type of policy can provide coverage for additional expenses that result from continuing business operations while the insured premises is being repaired or replaced due to a physical loss or property damage that was incurred by a covered peril. This might include costs such as the added expense of shipping necessary business supplies overnight rather than at the standard delivery rate in order to resume operations as soon as possible.
Best Practices When Making a Claim
If riots, vandalism or civil unrest take place within your community and result in losses for your business, consider these best practices when making a claim:
Report it immediately—Be sure to report the incident right away to the local authorities and consult your broker for immediate claims assistance.
Prevent additional losses—When the loss occurs, try to do everything you can to mitigate the risk of further damages (e.g., boarding up your property’s windows and doors). However, only take these precautions if it is safe to do so. Avoid any mitigation measures that could put you or your employees at risk of injury or fatality.
Beware of waiting periods—Make sure you consider any waiting periods or other deductibles that might apply when making a claim. For example, most business interruption policies are subject to a 72-hour waiting period—meaning that you won’t be covered for any loss of income that occurs for the first three days following the incident.
Document all expenses and damages—To ensure the best possible compensation for your loss, be sure to document the full extent of the damages that your business incurred by taking plenty of pictures as evidence. Further, make sure you keep track of all expenses related to the loss by saving receipts and bank statements.
California’s Leader in Insurance and Risk Management
As one of the fastest growing agencies in California, GDI Insurance Agency, Inc. is able to provide its clients with the latest and greatest of what the insurance industry has to offer and much, much more.
We are headquartered in Turlock, CA, with locations across the heart of California’s Central Valley, Northern California and beyond to provide a local feel to the solutions and services we provide our clients. We pride ourselves on exceeding our client’s expectations in every interaction to make sure that our client’s know how much we value and appreciate their business. Contact us today 1-209-634-2929 for your comprehensive business insurance quote!
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The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
