Business Insurance

Update: Maine Flood Insurance Re-Authorized until May 31

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For the second time in a month, The National Flood Insurance Program lapsed on March 28 due to lack of continued federal funding. The Senate left for Easter recess until April 12 without addressing HR4851, which would have offered an extension. This leaves anyone looking to buy Maine flood insurance – or in any other state – high and dry, in the height of flood season.

If You’re Buying a Home and Need Flood Insurance
Flood insurance servicing companies are collecting applications, but cannot accept them or bind coverage until the NFIP is re-authorized by the Senate. If your lender requires proof of flood insurance, this may delay your closing. Talk to your lender for more information. You literally can not buy flood coverage without an act of Congress.

If You Already Have Flood Insurance, and Need to Make a Claim
Claim payments  will be continued as usual for all policies currently in effect.

If You Have Flood Insurance and Need to Increase Your Coverage
Coverage cannot be increased on existing policies until the NFIP is reauthorized. This may delay a loan closing if you are refinancing or taking out a home equity loan.

If Your Flood Policy is About to Renew
Renewal policies can not be issued during the lapse. Many companies sent renewal bills prior to March 28. If you received a bill and paid it, your coverage should be in force. If your premium was not paid before March 28, coverage cannot be bound until after the NFIP is reauthorized by Congress.

What You Can Do
The NFIP is the only primary flood insurance available for residential properties. Many insurers have a servicing contract to issue business on behalf of the NFIP, but it is a government program. Without reauthorization, the program is essentially shut down. Call or email your senator to let them know what this lack of funding means to you. While there’s no guarantee, the NFIP reauthorization will likely be retroactive to March 28 – once it’s finally passed. That’s usually what happens in these cases.

Even during normal operation, the National Flood Insurance Program operates differently than most insurance programs. There are waiting periods and underwriting rules and requirements that are unique to this program. It’s impossible to advise you about your individual situation with a blog post like this. Call a Maine homeowners insurance agent for advice about your own insurance.

UPDATE:
As of April 15, 2009, Congress passed, and the President signed into law, a bill reauthorizing the National Flood Insurance Program (NFIP) until May 31, 2010.  The extension included retroactive funding to cover two gaps in the program (March 1 – 2 and March 29 – April 15, 2010). The program will expire again on May 31 unless it is further extended. Stand by!

Independent Contractor or Employee in Maine

Posted on by Bob O'Brien

Workers’ Comp Costs Hang in the Balance

(Note: Maine law regarding independent contractor or employee changed January 1, 2013. This post from March, 2010 remains accurate. For the most up-to-date information, see “How to Save Insurance Costs and Win More Jobs Under Maine’s New Subcontractor Law“. )

What’s the difference between an independent contractor or employee? It’s the Maine workers comp insurance question that’s worth a lot more than $64,000: Guess wrong and you could end up with a huge Maine workers comp audit bill from your insurance company.

Independent Contractor or Employee – Why it Matters

Maine workers comp policies pay the costs of medical and lost time damages for employees. Who’s responsible if a worker is hurt on the job? Contractors are not responsible for injury costs for independent contractors; the independent should buy their own workers comp insurance to protect themselves and their own employees.

Independent contractor or employee? It's an important question in Maine.

Up to Now
Until recently, Maine workers comp insurance agents instructed their contractor clients to obtain certificates of workers comp insurance from subcontractors. Then, when the insurance company conducted the Maine workers comp audit, the premium auditor would exclude the subcontracted cost when calculating workers compensation premium. This was an effective cost and risk control technique.

Maine Independent Contractor or Employee: a New Definition

A new Maine law, effective January 1, 2010, (P.L. 2009, Ch. 452) sets a new standard for defining an independent contractor in the construction industry. It says that a person is presumed to be an employee unless that person meets all 12 parts of a new definition of independent contractor.

Contractors must pay Maine workers compensation insurance (by reporting the payroll to their workers comp insurer) for anyone who does not meet that new definition. Moreover, the employer must get pre-determination before each job starts, or all workers are considered employees.

Best Practices for Employers

Under  PL 2009, a contractor must obtain either:

  1. A Maine workers compensation certificate of insurance for the independent showing that coverage was in force for the duration of the job; or
  2. “Predetermination of Independent Contractor Status” from the Maine Workers Compensation Board. This predetermination is not binding – an injured worker might still be shown to be an employee after the fact – but it allows the contractor to presume that the worker is an independent contractor, and thereby not purchase Maine workers compensation insurance on their behalf.

The Maine Workers Comp Board does not approve predetermination requests retroactively; the contractor must have the determination letter as of the date the work begins. Moreover, the Maine Workers Compensation Board took the position that a predetermination is required for each and every job that the independent does, regardless of the scope or duration of the job.

Needless to say, this is proving to be a hardship for general contractors and independents alike. The contractor’s typical job is short-notice, and independent contractors are often hired on the same day, leaving no time for a predetermination request to work its way through the Workers Compensation Board. Contractors are paying higher workers compensation premiums to include independent contractors, or risk losing the work due to delays.

Emergency Legislative Relief Considered

The 124th Maine Legislature has taken up LD 1815, in an attempt to clarify subcontractor status and to ease the burden on the day-to-day operations of contractors. While a Predetermination of Independent Contractor Status would still be required, the predetermination would be valid for one year. At least a contractor would not have to have this predetermination for every job. They could keep this form in their files and thereby exclude the independent’s payroll from their workers compensation rating.

We believe the proposal to require a predetermination on an annual basis is a step in the right direction. We hope the Maine Legislature agrees.

For More Info about Maine Workers Compensation Insurance

For more information and advice about Maine business insurance, contact a Noyes Hall & Allen Insurance agent in South Portland at 207-799-5541. As an independent agency, we offer a choice of many of Maine’s preferred business insurance companies. That means we can compare insurance options to help you find the best fit for your business.

In other words, we’re independent and committed to you.

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Pay As You Go

Is the City Responsible for Your Sewer Backup in Maine?

Posted on by admin

There are few nightmares for Maine homeowners more unpleasant than a sewer backup in the basement. We don’t need to go into details about sewer backups. Suffice it to say, we hope you’ve never seen one, and never will. Unfortunately, they’re all too common in heavy rains.

What Causes Sewer Backup?

  1. Sewer lines become full of groundwater or storm water, and back up, usually through basement drains.
  2. Line blockages in the street cause a backup.
  3. Tree roots or some other obstruction on your property blocks the line from your home to the street.

How Can I Prevent a Sewer Backup?

The most common protection is to install a backflow valve. This is designed to allow sewage to flow out of your home (“the good way”), but not from the street into your home (“the bad way”). These are sometimes called check valves or flap valves. Gate valves are manually operated, and completely seal the pipe leading from your home to the street. A plumber can recommend the best solution for your home.

What if I Have a Sewer Backup?

  1. Call your city’s sewer maintenance department.
  2. They will check the line in the street near your house.
  3. If the line is not found to be blocked, you should call your plumber.
  4. We do not recommend trying to clean your own home after a sewer backup. Call a qualified remediation contractor. Search for “sewer or water cleanup contractor”.

Is the City Responsible for My Property Damage?

Probably not. The Maine Tort Claims Act holds your city responsible only if they were negligent in maintaining the lines. Most municipalities have strong maintenance programs for their systems. They’re not responsible for people dumping inappropriate items into the system, such as grease, non-flushable items, or debris. If you think that the damage was caused by your municipality’s negligence, contact their legal department.

Does My Homeowners Insurance Cover Sewer Backup?

“Off the shelf” Maine homeowners insurance policies do not cover property damage from backup of sewers or drains. Optional coverage is broadly available from your Maine insurance agent. For more information about sewer backup insurance, homeowners insurance or other storm insurance, contact Noyes Hall & Allen Insurance at 207-799-5541.

7 Tips for a Safe Halloween from a Maine Insurance Agency

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Halloween is a lot of fun, especially for children. It is also one of the most dangerous nights of the year. Here are 7 tips to make sure the scares remain all in fun.

photo of a jack-o-lantern

For Trick or Treaters

  • Be Visible – Carry a flashlight; apply light-reflecting material to costumes.
  • Stay Together – Travel in groups, stay in well-lit areas and cross only at corners – never between parked cars.
  • Inspect Childrens’  Treats – Never eat unwrapped items. Throw away any suspicious candy.

At Home

  • Keep jack-o-lanterns away from areas where children may tip them over or get too close. Even better: use battery-operated lights.
  • Remove lawn furniture and other obstacles from your yard. Children don’t always use the sidewalk.
  • Keep pets inside and away from the door. Halloween night can be stressful, even on the friendliest pet.

On The Road

  • Drive more slowly and carefully than usual. Children may be running, wearing dark costumes, or darting into the street. And , of course, drive sober!

Slips and Falls Can Be Costly. Protect Your Friends – and Yourself!

Posted on by admin

Maybe it’s all the rain and snow we’ve had this year. Maybe it’s the economy . Maybe it’s the increase in ads for plaintiff attorneys. Whatever the cause, it seems we’ve seen an increase in slip-and-fall liability claims lately.

Our agency would normally see one or two slip-and-fall accidents in a 6-month period. This year, we’ve seen almost that many every month. On stairs and in parking lots, in retail stores and private homes, southern Mainers seem to be having trouble keeping their balance.

It’s possible that today’s higher unemployment rates have left fewer people with medical insurance available to pay for their emergency room visits and doctors’ treatments. With last winter’s heavy snow and this spring’s constant rain, surfaces have been especially slippery. Combine those factors with the power of suggestive advertising by plaintiff attorneys telling the public that “someone has GOT to pay”, and it may be logical that we have seen more slip-and-fall claims.

What can you do to protect your guests, yourself and your assets?

  • Maintain your property
  • Carry adequate liability insurance limits: equal to your net worth, or $500,000 for individuals and $1,000,000 for businesses – whichever is higher.
  • Report any injuries or incidents to your insurance agent.

For more information, call Noyes Hall & Allen Insurance.

Easy Money

Posted on by admin

Everyone’s looking to tighten up their budget these days. Many people prefer to  spread the cost of their insurance throughout the year by paying in monthly installments. But insurance companies charge an “installment charge” to cover the expense of sending those monthly bills, and to replace investment income they forgo by not collecting your premium up-front. The average “installment charge” is $5.00 per bill. That means if you pay your Maine auto insurance in monthly installments, you’re paying $50.00 or $60.00 extra a year.

Quick and Painless Savings

Instead of having the insurance company send you a bill, sign up for Electronic Funds Transfer (EFT) – automatic monthly withdrawal of your premium payments from your checking account. Most companies waive the installment charges completely for EFT customers. That saves you an extra $60.00, plus the cost of stamps, checks, and the time it takes to pay the bill.

Clients of our Maine insurance agency who are snowbirds or travel frequently love EFT. They don’t have to worry about bills being forwarded, or accumulating unpaid while they’re away.

One added benefit of EFT: no more risking cancellation notices by forgetting to pay your bill. Because your payments are automatically withdrawn, they arrive on time every month, without any action on your part.

For more information about insurance discounts, contact Noyes Hall & Allen Insurance at 207-799-5541.

Will Maine see a hurricane this year?

Posted on by admin

June 1 is the traditional beginning of the Atlantic tropical storm season. The National Weather Service’s National Hurricane Center doesn’t openly issue long range seasonal forecasts, but that doesn’t stop other organizations, from Accuweather (which predicts 10 named Atlantic storms) to the Farmers’ Almanac (9) from doing so.

  • In the event of a hurricane watch/warning or tropical storm watch/warning, new coverage cannot be bound, nor coverage added or increased for existing policies providing property, inland marine or auto physical damage coverage.
  • Policies quoted and bound prior to the issuance of a watch or warning will be honored if coverage was scheduled to take effect during the watch/warning period.

Wind damage and flooding are the most common types of damage caused by tropical storms. Wind is covered by most standard policies, but flood is not. Flood insurance is a government program, sold by virtually any insurance agency,

including us

. The flood insurance program has a 30 day waiting period from the receipt of an application until coverage begins.

Although hurricanes hit New England much less often than southern coastal areas, we are not immune. Maine has been struck by 5 named storm, including 1991’s Bob.

Bottom line: the time to evaluate your insurance coverage is before a storm hits. Be assured that if a disaster does hit our area, Noyes Hall & Allen and the companies we represent are ready to respond quickly, professionally and effectively.


We Fix $9.00 Haircuts

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There’s an old story about a hair stylist who ran a successful business by providing consistent service at a fair price. His business grew, and his customers returned year after year. His shop was a fixture in the community.

One day, a discount chain hair salon opened across the street. They put up a big banner in their window: $9.00 HAIRCUTS!

Soon, the stylist noticed that he wasn’t as busy. His phone didn’t ring as much, and walk-in business was down. He saw some of his customers walking into the discount shop across the street. He wondered how anyone could possibly make a living cutting hair for $9.00, and he felt disappointed that his customers were wooed so readily by a low price.

Then, one day it occurred to him. He went to the local sign maker and had his own banner made. He proudly hung it up in his own front window.

It read:
WE FIX $9.00 HAIRCUTS

Think about that the next time you’re shopping for a product or a service. There’s a difference between a low price and a good value. If you understand that difference, maybe you should talk to Noyes Hall & Allen about your insurance.


Complaint Dept. – Who’s Your Insurance Advocate?

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Almost 200,000 consumer complaints were filed with U.S. insurance departments in 2008, according to data released today by the National Association of Insurance Commissioners (NAIC).

Not surprisingly, claim handling generates the highest number of complaints. Perceived delays in handling claims are historically the top consumer complaint, followed by denial of a claim, and an unsatisfactory settlement or offer. 2008 was no different.

Claims Leads the Charge
While the complaint reasons remained the same over the past three years, NAIC data indicates that 5300 fewer claim complaints were filed in 2008 than 2007. Underwriting complaints (premium and cancellation) also decreased for the third consecutive year. Policy service (questions, billing, etc.) generated relatively few complaints, indicating that most insurance customers were able to get their routine questions answered satisfactorily.

Medical Insurance Generates Most Complaints
Health insurance was once again the most common type of coverage people complained about, followed by auto and homeowners insurance. Homeowners policy complaints decreased by 13,500 from 2006 to 2008, reflecting less underwriting turbulence in the property market.

What does this mean?
The way we see it, the NAIC report reinforces the value of a local independent agent, one who knows you and can advocate and advise clients on all aspects of their insurance, from claims to underwriting to service.

Who’s in Your Corner?
An independent agency like Noyes Hall & Allen can provide advice in a different way than an agent who’s an insurance company employee (direct writer), or one who represents only one company (captive agent). And, of course, being able to sit across the table from your agent, instead of talking to the next representative in queue at a remote call center is inherently more valuable.

If you have any questions about your insurance, we’re here to help!