Interesting how commitments can accumulate when you’re not looking, isn’t it?

You click on a subscription, you agree to get regular updates from a retailer, you cite a preference for a particular brand. And before you know it, funds have been deducted from your checking account, your email inbox gets choked with nuisance messages, and you can’t seem to escape online ads for something for which you are rapidly losing interest.

What began innocently can end up causing issues that can cost time, money, and patience. The same principle applies to insurance coverage, as a business enters into contracts with partners, suppliers, and vendors.

These agreements are recognized as necessary to conduct, expand, and protect a business’ interests. They make complete sense, and can serve a vital purpose. But caution must be taken when entering these arrangements, to make sure that the business’ insurance policies extend to the terms of any new contracts.

Terms and conditions of insurance coverages are written to specific situations – situations that may take on new wrinkles and specifics under new contractual agreements. The last thing any business owner needs or wants is to discover down the road that a partnership or other agreement under contract with another entity means an existing policy does not offer sufficient coverage.

Working with your insurance provider to conduct a contractual review represents an easy way to safeguard against getting caught in such a scenario.

Contracts and agreements accumulate over time. That’s smart business, typically. Benign, even. Just make sure that your insurance coverage keeps up with the terms of any new situation, to avoid costing you time, money, and patience.

Contact the professionals at Evergreen Insurance for more information.

Copyright 2022 Evergreen Insurance
Evergreen Insurance provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

Worker’s compensation coverage has been insuring injured workers since the mid 20th century. What exactly does worker’s comp entail? Learn more about its origins and how to manage your own worker’s comp in our latest blog. Click on the image to download or print the information sheet.

The federal Affordable Care Act (ACA), through Internal Revenue Service (IRS) guidelines, has adjusted its affordability percentages downward in 2022, meaning that employers may need to change some of their employee contribution levels.

On August 20, 2021, the IRS issued Revenue Procedure 2021-36 to index the contribution percentages in 2022 for determining affordability of an employer’s plan under the ACA.

For plan years beginning in 2022, employer-sponsored coverage will be considered affordable if the employee’s required contributions for self-only coverage does not exceed the following:

• 9.61% of the employee’s household income for the year for purposes of both the pay-or-play rules and premium tax credit eligibility; and
• 8.09% of the employee’s household income for the year for purposes of an individual mandate exemption (adjusted under separate guidance). Although this penalty was reduced to zero in 2019, some individuals may need to claim an exemption for other purposes.

The updated affordability percentages are effective for taxable years and plan years beginning on Jan. 1, 2022.

This is a significant decrease from the affordability contribution percentages for 2021, which had been set at 9.83% and 8.27%. As a result, some employers may have to lower their employee contributions for 2022 to meet the adjusted percentage.

Under the ACA, the affordability of an employer’s plan may be assessed in the following three contexts:

• The employer shared responsibility penalty for applicable large employers (also known as the pay-or-play rules, or employer mandate).
• An exemption from the individual mandate tax penalty for individuals who fail to obtain health coverage.
• The premium tax credit for low-income individuals to purchase health coverage through an Exchange.

Although all of these provisions involved an affordability determination, the test for determining a plan’s affordability varies for each provision.

Understand where your organization falls within these ACA guidelines. Contact the Team at Evergreen Insurance for more information.

Copyright 2022 Evergreen Insurance
Evergreen Insurance provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.

People carry umbrellas to protect themselves from potential rainstorms. In the same way, your company should carry Excess Liability (Umbrella) Insurance to help protect your company from unforeseen liabilities. Click on the image to download or print the information sheet.

When running a business accidents are bound to happen. General liability can help cover any incidents that may occur. Make sure you’re covered! Click on the image to print or download the information sheet.

Many drivers experience aggression and anger while driving, especially on crowded roads. Expressing that anger can lead to dangerous, and even deadly, accidents. Click on the image to print or download the safety sheet.

Your construction business can be exposed to new risks during an economic downturn. These risks can create liabilities for your business, which can harm it in the long run. Click on the image to download or print the information sheet.

It is essential to have insurance for your construction business. Do you have a broker who knows the industry well and can save you the most time and money? Click the image to download or print the information sheet.

Electrical hazards due to poorly maintained electrical panels can be dangerous. There are steps you can take to mitigate the risks of electrical safety issues. Click the image to download or print the safety sheet.

May is Motorcycle Safety Awareness Month! While you’re having fun cruising on your motorcycle, remember to stay safe. Click the image to download or print the safety sheet.