Insurance Legal Description Text

Aley Moyer

THE CALIFORNIAN 2026 Q3 – HIGH-PROFILE EVENTS, HIGHER STAKES: INSURANCE CONSIDERATIONS FOR SECURITY FIRMS

High-Profile Events, Higher Stakes: Insurance Considerations for Security Firms

Tory Brownyard, Brownyard Group, CALSAGA Associate Member

California is a well-known hub for some of the world’s largest, most star-studded events, from sporting events like the Federation Internationale de Football Association (FIFA) World Cup to award shows like The Oscars and countless celebrity gatherings. Such events are often highly publicized, attracting thousands of attendees and international interest, requiring specialized security to properly protect those involved.

While not California-based, Taylor Swift and Travis Kelce’s recent wedding at Madison Square Garden in New York stands out as a prime example of a high-exposure event. Attended by nearly 1,000 celebrities and topping the headlines of major news outlets, many listed this as the event of the year. Among the coverage of the event was mention of the level of security involved. Photos of the extensive security presence, including the New York City Police Department, circulated online, with security costs reportedly reaching $160,000.

While such prominent events can present new business opportunities for security firms, they come with increased risks that could outweigh the profitability of the work. Large-scale gatherings require significant security, introducing unique insurance exposures, including public safety concerns, vendor coordination and a higher potential for severe, costly claims. With such high stakes, security firm leaders must carefully evaluate the insurance risks involved and ensure they have adequate coverage before accepting a high-profile assignment.

Risk Exposures to Consider

High-profile security jobs come in a variety of forms, from celebrity events and entertainment gatherings to conferences and even legal proceedings, like the well-covered Luigi Mangione trial. One key factor that makes these jobs different from securing a commercial building or residential neighborhood is the number of people involved. High attendance rates naturally increase the likelihood of incidents, whether it’s a slip or fall, or a more complex issue such as a crowd surge or serious medical emergency. At the same time, mass gatherings are often considered attractive targets for malicious acts, like terrorism or other intentional violence. These factors place increased responsibility on security personnel to anticipate and mitigate evolving threats.

Additionally, the more high-profile an event, the more public the consequences of an incident will be. While a security issue at a shopping mall or corporate office may attract local attention, an incident at a nationally televised sporting event or celebrity gathering can become headline news within minutes. Such visibility can create reputational damage for the security firms involved, potentially impacting future business opportunities as a result.

High-profile claims also tend to involve greater legal scrutiny and higher settlement costs, making comprehensive risk management practices even more important. Complex contractual language involving liability and indemnification makes the stakes even higher. In the case of a claim, security firms may be questioned to ensure contractual obligations were met, proper safety measures were implemented, and industry standards were followed. Without a clear understanding of contract terms and their legal implications, firms may face unexpected responsibilities or financial exposure.

Security firms should also consider operational issues when planning for liability risks. Larger events require increased staffing and coordination, from event coordinators and venue managers to law enforcement agencies, emergency responders, production teams and numerous third-party vendors. The need for more staff and organization can create liability issues, and even small breakdowns in communication or unclear lines of responsibility can increase the potential for insurance claims.

Best Practices for Security Success

It is important for security firms to consider the risks related to any contract before accepting the work. While high-visibility assignments may present an exciting growth opportunity, the risks may be outside the scope of the firm’s risk appetite and insurance coverage. Before accepting the job, security firm owners and operators should consider carefully reviewing their insurance policies and potential work contracts. In particular, they should consider:

  • Coverage Gaps: Not all insurance policies include coverage for special events. Some carriers specifically exclude security services conducted at large public gatherings unless coverage has been added or approved in advance. Before committing to event work, firms can speak with their agent or broker and thoroughly review their insurance policies for exclusions related to special events, crowd control or high-profile venues. Assuming policies include event work could result in denied claims and costly losses.
  • Coverage Limits: Firms should also consider carefully reviewing their insurance coverage limits to ensure they are appropriate for the size and risk profile of the event. A policy that is sufficient for day-to-day commercial security operations may not provide adequate protection for an event involving tens of thousands of attendees or substantial property values. The security firms may also be contractually required to provide higher limits of liability.
  • Contractual Liability: Contracts related to event work also require scrutiny to avoid risk exposure, especially when working with third parties. Event organizers and certain venues may require specific endorsements or indemnification agreements that transfer liability to the security firm should something happen. Security firm owners and operators should carefully review all contractual language to ensure clear responsibilities are defined and negotiate against accepting liability where possible in the case of a claim.

Security firm owners and operators who consult their insurance agent or broker before accepting a contract, for a high-profile event particularly if they are outside the scope of the firm’s usual operations, can save them from the potential of significant losses. An insurance agent who is well versed in the security space can identify potential coverage gaps, explain exclusions, recommend additional coverage and help determine if adjustments to the policy are warranted.

High-profile events are a mainstay for the Golden State. Understanding insurance coverage details and limits, as well as the risks ahead related to an assignment, before accepting complex or large-scale event assignments can help security firm owners confidently pursue new business while avoiding costly coverage surprises.

Tory Brownyard, CPCU, is president of Brownyard Group (tbrownyard@brownyard.com), a program administrator that has been a leader in meeting the insurance needs of the security industry for 75 years.

/by
Aley Moyer

THE CALIFORNIAN 2026 Q3 – HOW SECURITY FIRMS CAN REDUCE COMMERCIAL AUTO PREMIUMS

,

How Security Firms Can Reduce Commercial Auto Premiums

Shaun Kelly, The Liberty Company, CALSAGA Preferred Broker

For many security contractors, commercial auto insurance has become one of the most frustrating line items in the budget. Even companies with solid operations and strong client retention are seeing auto costs climb because the market has become more sensitive to frequency, severity, distracted driving, vehicle theft, repair costs, and nuclear verdict exposure.

The good news is that while you cannot control the broader insurance market, you can control how your company presents risk. Carriers reward disciplined operations. The firms that take driver management seriously, document their controls, and reduce preventable losses are typically in a stronger position at renewal.

Why Auto Premiums Keep Climbing

Commercial auto is no longer priced solely on the number of vehicles you own. Underwriters are looking deeper at driver quality, loss history, radius of travel, vehicle use, after-hours driving, hiring practices, and whether your company has a real fleet safety program or just a handbook sitting on a shelf.

For security firms, the exposure is even more nuanced. Patrol units, alarm response vehicles, supervisor cars, and employees driving between posts all create additional movement and more opportunities for claims. The more miles your business puts on the road, the more important your controls become.

Practical Ways to Improve Your Auto Profile

  • Tighten driver selection. Use MVR reviews, minimum age and experience requirements, and clear hiring standards before anyone gets behind the wheel.
  • Create a written fleet safety program. Document expectations for phone use, seat belts, speed, distracted driving, accident reporting, and post-incident review.
  • Use telematics or dash cameras thoughtfully. Programs that monitor harsh braking, speeding, and unsafe habits can create coaching opportunities and show underwriters that management is engaged.
  • Control who drives what and when. Limit personal use, overnight use, and unauthorized drivers whenever possible.
  • Train and retrain. A one-time orientation is not enough. Ongoing driver coaching and documented corrective action matter.
  • Get ahead of claims. Fast reporting, evidence preservation, and active claims management can reduce severity and improve how your account is viewed at renewal.

What Underwriters Want to See

When an underwriter reviews your account, they want confidence that your company does not treat vehicle exposure as an afterthought. They want to see accountability. That includes driver lists, MVR protocols, written policies, telematics use, disciplinary standards, vehicle maintenance, and leadership involvement.

In other words, reducing premium is not just about shopping harder. It is about becoming a better risk.

The Bottom Line

Security contractors that invest in disciplined driver management are usually better positioned for improved pricing, better carrier interest, and more stable renewals over time. The strongest results come when operational controls, claims management, and broker strategy all work together.

Have questions about your insurance program or contract language? Reach out to Shaun directly.
Shaun Kelly, VP Security Practice
The Liberty Company Insurance Brokers, LLC
Shaun.Kelly@libertycompany.com

Shaun Kelly serves as Vice President of the Security Practice at The Liberty Company Insurance Brokers, helping security company owners and executives navigate complex coverage decisions, contractual risk, and insurance program strategy.

 

/by
Aley Moyer

THE CALIFORNIAN 2026 Q2 – HOW SECURITY CONTRACTORS CAN PROTECT THEMSELVES CONTRACTUALLY

,

How Security Contractors Can Protect Themselves Contractually

Shaun Kelly, The Liberty Company, CALSAGA Preferred Broker

Insurance matters, but contracts often decide who carries the first and heaviest burden when a claim arises. Too many security contractors focus on certificates and policies while signing service agreements that quietly expand liability far beyond the scope of their work.

A bad contract can undo a good insurance program. A strong contract, on the other hand, can help define responsibility, manage expectations, and prevent your company from absorbing exposure that properly belongs elsewhere.

Why Contract Language Matters So Much

When an incident occurs, plaintiff attorneys and carriers alike will look at the contract to understand duties, indemnity obligations, insurance requirements, and the allocation of responsibility between the parties. If the agreement is overly broad, vague, or one-sided, your company may be defending more than your actual role in the event warrants.

For security contractors, that risk is amplified because many clients use aggressive vendor agreements that were never designed with security-specific exposures in mind.

Key Provisions to Review Carefully

  • Avoid language that requires you to indemnify the client for the client’s sole negligence or for liabilities beyond your own services.
  • Additional insured requirements. Make sure any additional insured obligation is narrow, reasonable, and aligned with your operations.
  • Limitation of liability. Where possible, seek language that keeps your contractual exposure proportional and commercially reasonable.
  • Scope of services. Define what your guards are and are not responsible for. Ambiguity creates room for blame expansion after a loss.
  • Incident reporting and cooperation. Spell out expectations for communication, access to evidence, and response protocols after an event.
  • Termination rights. Give your company a practical exit if the client creates unsafe conditions, fails to cooperate, or refuses to align on material risk issues.

Best Practices Before Signing

Do not assume the client’s contract is “standard” or safe. Have agreements reviewed by knowledgeable counsel and a broker who understands security-industry risk transfer. Compare the contract requirements to your actual insurance program before execution, not after a certificate request lands on your desk.

It is also wise to use consistent paper across your organization. A disciplined contract review process is easier to manage when operations, sales, legal, and insurance are not all working from different assumptions.

What Stronger Contracts Really Do

A better contract will not eliminate claims. But it can improve your position dramatically when one happens. It can narrow disputes, reduce unintended assumption of liability, support better insurance outcomes, and help preserve the limits your business actually needs for its own protection.

The Bottom Line

Security contractors should treat contracts as part of their risk management program, not just part of the sales process. The right wording can protect your balance sheet, strengthen your insurance strategy, and keep your company from paying for risks it never agreed to take on.

Have questions about your insurance program or contract language? Reach out to Shaun directly.
Shaun Kelly, VP Security Practice
The Liberty Company Insurance Brokers, LLC
Shaun.Kelly@libertycompany.com

Shaun Kelly began his insurance career is 1992 after graduating from California State University, Fresno with a BS in Business Administration with a major in Finance. In searching for a specific industry to specialize in, he recognized that the Security Industry was growing and expected to maintain significant growth for years to come. Since 1992, he has specialized in the security industry and has experienced the changes over the years. He is the Preferred Broker for CALSAGA, California Association of Licensed Security Agencies, Guards & Associates. He is a Partner at Liberty Company Insurance Brokers, LLC. He is proud to serve his clients and the security industry.

/by
Aley Moyer

THE CALIFORNIAN 2026 Q2 – GUARDING RETAIL ESTABLISHMENTS? WHY CONTRACTUAL CLARITY IS A MUST-HAVE

,

Guarding Retail Establishments? Why Contractual Clarity Is a Must-Have

Tory Brownyard, Brownyard Group, CALSAGA Associate Member

A smash-and-grab robbery in January at an Anaheim Hills jewelry store followed an all-too-familiar pattern. An SUV crashed through the front door. Eight suspects wearing ski masks entered the store, hammers and crowbars in hand, and fled with thousands of dollars’ worth of jewels.

These types of horrifying scenes are playing out with increasing frequency throughout the Golden State, raising risks for retailers and the security guards and firms who protect them. Without clear and specific contract language, a fast-moving crime can quickly turn into a slow-moving liability claim that puts a security firm at serious financial and reputational risk.

Retail Theft is Rising

While overall crime statewide is declining, retail theft is a particularly concerning outlier. The latest data from the Public Policy Institute of California shows that reported shoplifting and commercial burglary incidents increased by 3% from 2023 to 2024 and are now up 47.5% compared to 2019.

The Bay Area alone reported 30 violent jewelry store robberies between March and September 2025. About half were smash-and-grabs similar to the January 2026 Anaheim Hills robbery. The others were mob-style, a likely indicator of Organized Retail Crime (ORC).

These numbers in California are indicative of a national trend. U.S. retailers reported an 18% increase in the average number of shoplifting incidents per year from 2023 to 2024, according to National Retail Federation data released in October 2025. Threats or acts of violence during shoplifting or theft events increased 17% during that same time period.

Avoiding Liability Traps

As criminal activity rises in frequency and severity, we expect an increase in retailers hiring private security guard companies to protect their premises this year. While this represents a golden opportunity for security companies, it could also turn into a litigation nightmare if firm owners and operators do not pay attention to the wording in their contracts.

When contract language is ambiguous, firms may pay a hefty price. Numerous court decisions have deemed private security companies liable for injuries to third parties, such as contractors and delivery people, even though the firm was never intended to protect those individuals.

Other decisions have held firms liable for incidents outside the perimeter of a physical location, such as crimes that occur in the parking lot of an outlet mall.

These common liability gaps can cost firms thousands of dollars and could even put their future operations at serious risk. The best way to avoid such an unfortunate situation is to conduct contractual due diligence during your negotiations with retailers and other clients.

Insist on Legal Review

First and foremost, guard firms should have their attorneys review all contracts, especially non-standard contracts drawn up by or negotiated with the client. It is standard for clients to look to transfer as much risk as possible to your guard firm. Your lawyer should review the contract language to ensure it contains appropriate indemnification clauses and limitations of liability.

At a minimum, you and your counsel should clearly understand who is financially responsible in the event of an incident or lawsuit per the terms and conditions. Key phrases to look for include:

  • “No guarantee” language that states your firm cannot ensure the prevention of theft, violence or loss
  • “Hold harmless” wording that holds your firm harmless for any incidents resulting from negligent acts or omissions on the part of the client

Also, avoid naming clients as an “additional insured” on your insurance policy for their negligence. If clients are named as additional insured, claims related to that client, their property and their employees may fall under your insurance policy. Instead, include language that limits this to “liability arising out of your work and losses caused by your negligent acts.”

Clearly Define Post Orders

Contracts should clearly define the duties and expectations of security personnel in a given location. Firms should include specifics on the type of activities guards will conduct (observe and report, prevention, notify law enforcement in the event of a crime, etc.) and the duties guards will perform (monitor entry and exit points, check for suspicious behavior, follow incident response steps).

In some cases, clients may ask to expand post orders to specify duties beyond security guard services, such as helping with janitorial duties or sharing clerical duties like inventory management during staffing shortages. Do not include services in your contract that your firm is not insured to perform. If your insurance contains exclusions for these incidental operations, you could be left uninsured for claims related to slip-and-falls from spills you neglected to handle or accounting errors during inventory.

Conduct Thorough Site Reviews

Every retail location presents unique risks, from entry and exit points and visibility limitations to staffing levels and crime history. These factors all influence how security services should be deployed.

For these reasons, guard firms should conduct in-person site reviews before finalizing any agreement. Doing so enables firm owners and operators to better understand their clients’ expectations. It also helps firm decisionmakers develop more accurate post orders and avoid misunderstandings about security professionals’ responsibilities.

As Risks Rise, Seek Clarity

With retail crime on the rise and macroeconomic headwinds, like inflation, persisting, it is safe to assume that California storeowners will continue to battle with robberies and other violent acts in 2026. As risks increase, contractual clarity is one of the most effective tools security firms can use to protect their business. Firms that carefully review contracts, clearly define post orders, and align their contractual obligations with their insurance coverage can avoid liability gaps and safeguard both their operations and their clients’ businesses.

Tory Brownyard, CPCU, is president of Brownyard Group (tbrownyard@brownyard.com), a program administrator that has been a leader in meeting the insurance needs of the security industry for 75 years.

/by
Aley Moyer

THE CALIFORNIAN 2026 Q1 -THE MORE THINGS CHANGE, THE MORE THEY STAY THE SAME

,

The More Things Change, the More They Stay the Same

Shaun Kelly, The Liberty Company , CALSAGA Preferred Broker

We are excited to announce that our team has changed to a new insurance brokerage firm, the Liberty Company Insurance Brokerage, LLC. As this is a name change for us, we want you to know that our team remains the same. We will continue to provide the same support to CALSAGA and all the Members.

The Liberty Company Insurance Brokerage, LLC operates in all 50 states with over 80 offices nationwide and growing. We are an independently owned full-service insurance broker that handles commercial, personal and employee benefits insurance needs of businesses, non-profits, and individuals for over 30 years. We are establishing a Liberty Security Program Group, in efforts to further support the Security Industry in California and other states.

Our goal is to continue providing Members with Risk Management and Safety resources to reduce claim frequency and severity.  Any broker can go out and get insurance quotes; it is the service after the quotes that really matters. Liberty Company brings additional resources that will assist in creating positive results that reduce costs, improve efficiency and decision making.

There will be more information to come in future articles.

Thank you and look forward to seeing everyone.

Shaun Kelly began his insurance career is 1992 after graduating from California State University, Fresno with a BS in Business Administration with a major in Finance. In searching for a specific industry to specialize in, he recognized that the Security Industry was growing and expected to maintain significant growth for years to come. Since 1992, he has specialized in the security industry and has experienced the changes over the years. He is the Preferred Broker for CALSAGA, California Association of Licensed Security Agencies, Guards & Associates. He is a Partner at Liberty Company Insurance Brokers, LLC. He is proud to serve his clients and the security industry.

/by
Aley Moyer

THE CALIFORNIAN 2025 Q4 – Be Prepared for Higher Workers’ Compensation Insurance Rates

,

BE PREPARED FOR HIGHER WORKERS’ COMPENSATION INSURANCE RATES

Shaun Kelly, Assured Partners , CALSAGA Preferred Broker

Great seeing everyone at the CALSAGA conference!

I shared some of this information during the conference and thought it would be good to revisit and assist you in mitigating the potential increase in Workers’ Compensation rates that will be coming.

Over the past 4-5 years we have seen rate increases in all lines of coverage, except Workers’ Compensation, which has seen decreases in rates for the past 8 to 10 years, it was only a matter time before the claims costs caught up to the premiums paid. When rates were soft, the only time that you may have experienced a rate increase is if your Workers’ Compensation Experience Modification increased due to claims or a reduction in payroll or there was a significant change in the types of clients you serviced.

Here are some Cost Drivers for the upcoming rate increases:

  • Increasing Medical Cost Development
  • Higher Average Medical Costs
  • Increasing Cumulative Trauma (CT) Claim Frequency
  • Increasing Allocated Loss Adjustment Expense
    • Legal Defense
    • Investigation (Sub-rosa) Costs
    • Additional allocation of payroll to service claims

To assist in Mitigating the expected increase in Workers’ Compensation premiums, please review the following:

  • First, try not to have claims!
  • Report claims immediately
    • To provide medical treatment as soon as possible and return employee back to work
    • To allow claims adjuster to manage the claim without delays
  • Investigate all claims to find the “Root cause”.
    • Supervisor should be responsible to report and investigate claim to prevent similar claims in the future
  • Review “Open” claims quarterly with claims adjuster until closed.
    • Important – “Unit Stat” time is 6 months after your policy expires. At Unit Stat time, claims and payroll are provided by your insurance carriers to the WCIRB to calculate your Workers’ Compensation Experience Modification. This is a very important time to work with the claims adjusters to reduce reserves and/or close claims.
  • Implement a “Return to Work” program and inform your employees and the medical facility of your program works to get employees back to work more expediently.
  • Identify an Occupational Medical Facility in your insurance carriers Medical Provider Network (MPN). Speak with the Medical Facility to make sure they have the save desire to get the employee back to work as soon as possible.
  • KEY – Implement a safety culture where employees are recognizing your Safety Policies & Procedures before they engage in their daily activities. SAFETY FIRST!

If you have any questions or if we can be of assistance, please do not hesitate to call.

Take care.

Shaun Kelly joined Tolman & Wiker Insurance Services in 2005.  He specializes in all lines of property and casualty insurance for industries including contract security firms, agriculture, construction, oil and gas. Shaun received a BS in Business Administration with a major in Finance from California State University in Fresno, California. He is an active member of several industry associations, including the Association CALSAGA, the Kern County Builders Exchange and the Independent Insurance Agents of Kern County. Shaun can be reached at 661-616-4700 or Shaun.Kelly@assuredpartners.com. 

/by
Aley Moyer

THE CALIFORNIAN 2025 Q3 – CYBER INSURANCE

,

CYBER INSURANCE

Shaun Kelly, Assured Partners , CALSAGA Preferred Broker

Hope everyone is doing well, and I know all of you are working hard.

Recently, we are receiving more requests for Cyber Insurance coverage than we have in the past. In most cases the requests are a result of a contract requirement, growing concern for data breaches and/or a recommendation from a business legal consultant. In response to any request, we acknowledge that cyber claims should be a concern for all business owners to protect against cyber-attacks, data breaches and fraudulent activity that could potentially cost businesses hundreds of thousands of dollars.

The most common cyber claims are:

  1. Ransomware attacks which lock up your operational data, shut down your ability to operate and then follows the extortion demand to unlock your data.
  2. Social Engineering attacks are fraudulent and accidental payment(s) sent directly to the hacker’s bank account. These claims can occur through the disguise of a invoice from a hacker using one of your common suppliers letterhead and changing the bank account and routing numbers.

Cyber coverage is designed to protect you from First Party claims and Third Party claims. Most First Party claims are what is mentioned above (Ransomware and Social Engineering). Third Party claims are bought by clients, vendors, employees… who have suffered a financial loss because of a data breach or cyberattack to your system. All claims are costly; however, Third Party claims can become very expensive, time consuming and may destroy the trust between you and the other party involved in the claim.

If you do have a cyberattack or an unauthorized access , a forensic investigation will be required to determine if any data in your system was breached. Sometimes cyberattacks or unauthorized access can occur with no loss of data. The cost of the forensic investigation is or should be included in the Cyber coverage terms and conditions.

Protecting yourself from cyber claims includes educating your staff on cyber security best practices, implementing Multi-Factor Authentication (MFA is mandatory for most insurance carriers to provide cyber coverage), installing protective firewalls and any other preventative measures recommended by your service provider.

The coverage terms and conditions for Cyber Insurance are extensive and the information I provided is just the tip of the iceberg. You should contact your broker to obtain quotes and detailed coverage information regarding Cyber insurance.

Take care and be safe!

Shaun Kelly joined Tolman & Wiker Insurance Services in 2005.  He specializes in all lines of property and casualty insurance for industries including contract security firms, agriculture, construction, oil and gas. Shaun received a BS in Business Administration with a major in Finance from California State University in Fresno, California. He is an active member of several industry associations, including the Association CALSAGA, the Kern County Builders Exchange and the Independent Insurance Agents of Kern County. Shaun can be reached at 661-616-4700 or skelly@tolmanandwiker.com.

/by
Aley Moyer

The Californian 2025 Q1 – ENSURING SECURITY GUARD SAFETY IN POST-APOCALYPTIC FIRE ZONES

, , ,

ENSURING SECURITY GUARD SAFETY IN POST-APOCALYPTIC FIRE ZONES

Shaun Kelly & John Koskinen, Assured Partners , CALSAGA Preferred Broker

Happy New Year from us! Here is some relevant safety information for you to consider.

With the Palisades and Eaton fires consuming tens of thousands of acres in Los Angeles, the need for security has never been greater. As an insurance broker, it’s crucial to prevent workers’ compensation claims and auto incidents by ensuring the safety of security guards in these hazardous environments.

We’ve observed an increase in workers’ compensation claims related to injuries sustained while patrolling fire zones. The top concern is air quality, followed by contact with hazardous waste. To mitigate these risks, here are some essential safety measures:

  1. Ensure guards have flashlights: Due to power outages, it’s vital that guards are equipped with reliable flashlights.
  2. Monitor air quality and provide PPE: Regularly check air quality and ensure guards are wearing appropriate personal protective equipment (PPE).
  3. Review and equip guards with PPE: Create a list of necessary PPE and review it with your guard staff. Recommended items include N95 masks or respirators, flashlights, first aid kits, whistles, patrol vehicles with at least ¾ tank of gas, car phone chargers, and fire extinguishers.
  4. Ensure guards have guard cards: Make sure staff have their guard cards ready to show law enforcement.
  5. Review post orders and SOPs: Go over your post orders and standard operating procedures (SOPs) related to fires.

In the event of Red Flag Warnings, send out notices to guards on duty and remind them of the safety tools and procedures to follow in case of a fire, mandatory evacuation, or voluntary evacuation. As an owner, your number one job is to keep security staff safe and prevent injuries and accidents.

Our hearts go out to everyone affected by these tragic fires.

Shaun Kelly joined Tolman & Wiker Insurance Services in 2005.  He specializes in all lines of property and casualty insurance for industries including contract security firms, agriculture, construction, oil and gas. Shaun received a BS in Business Administration with a major in Finance from California State University in Fresno, California. He is an active member of several industry associations, including the Association CALSAGA, the Kern County Builders Exchange and the Independent Insurance Agents of Kern County. Shaun can be reached at 661-616-4700 or skelly@tolmanandwiker.com.

 

 

Born and raised in Duluth, Minnesota, John Koskinen began his entrepreneurial journey at the age of 12 by mowing lawns. He has three years of experience in the insurance industry, specializing in claims, sales, and advisory services. John earned his Bachelor’s degree from UCSB in Santa Barbara.

Passionate about the security industry, he enjoys supporting first responders and helping other entrepreneurs thrive. To deepen his involvement, he obtained his BSIS guard card.

John lives with his wife in Ventura, CA. In his free time, he enjoys cooking, surfing, skiing, hiking, and helping others.

/by
Aley Moyer

The Californian Q4 – Frustrated With Workers’ Compensation Audits? It Used To Be Much Easier!

,

Frustrated With Workers’ Compensation Audits? It Used To Be Much Easier!

Shaun Kelly, Tolman & Wiker, CALSAGA Preferred Broker

Great to see everyone at the CALSAGA Annual Conference, it was truly a great event my hat goes off to CALSAGA for coordinating all the speakers and evening activities! I believe the conference is particularly a good opportunity to network with other Members and vendors. 

Workers’ Compensation audits are becoming more confusing and frustrating to complete! Auditors are requesting more information than they ever have before, including financial statements. Prior to Covid, Workers Compensation audits were required to be in person, now most are remote by email and phone. The Information you have to provide must be submitted in to them in secured files that are difficult to use.  And, if you happen to be late, a Notice of Cancellation is sent out immediately to get your attention. What has changed? 

Here are a few possible explanations for what has changed:

  1. Experienced auditors have retired and the new underwriters are trying to understand the process without limited knowledge and experience.
  2. The new auditors are being trained to request as much information as possible.
  3. The passing of AB 5 (Recognizing Independent Contractors as employees under the new guidelines) has auditors searching for employers who are not following the AB 5 guidelines and charging them additional premium.

ISSUE: Employers have concerns with providing financials that they have not had to provide in the past. However, this is how the auditors find out if there are expenses paid to independent contractors under AB 5. Per each Workers’ Compensation insurance policy in CA, every employer must provide the following for a final premium audit:  

  1. Audit – You will let us examine and audit all your records that relate to this policy. These records include ledgers, journals, registers, vouchers, contracts, tax reports, payroll and disbursement records, and programs for storing and retrieving data. We may conduct the audits during regular business hours during the policy period and within three years after the policy ends. Information developed by audit will be used to determine final premium. Insurance rate service organizations have the same rights we have under this provision. (The rate service organization they are referencing is the Workers’ Compensation Insurance Rating Bureau (WCIRB) that may request an inspection to confirm the employees are classified correctly under the WCIRB rating guidelines).

From the WCIRB, when determining the basis of premium, the following are included as payroll:

  • Gross wages
  • Salaries
  • Commissions
  • All bonuses
  • Most profit sharing
  • Vacation, holiday and sick pay
  • Overtime (“straight time” portion only)
  • The market value of gifts
  • Automobile allowances (less reimbursement for documented expenses)

The following items are excluded from payroll when determining the rating basis:

  • Meals or lodging (unless the classification phraseology specifically includes them or they are provided in lieu of wages)
  • Tips
  • Overtime excess pay (the increase above the regular hourly wage)
  • Severance pay (except for accrued vacation, sick pay, commissions and bonuses)
  • Employer contributions to qualified insurance, stock or retirement plans
  • Stock options
  • The value of an automobile furnished to an employee

In addition, the following are not included as payroll for premium computation:

  • Employee discounts for merchandise
  • Residual payments for commercials
  • A uniform allowance

Note:

Payroll for Workers’ Compensation insurance purposes is not the same as the Internal Revenue Service definition of payroll.

If you have any questions, please do not hesitate to contact me.

Take care

Shaun Kelly joined Tolman & Wiker Insurance Services in 2005.  He specializes in all lines of property and casualty insurance for industries including contract security firms, agriculture, construction, oil and gas. Shaun received a BS in Business Administration with a major in Finance from California State University in Fresno, California. He is an active member of several industry associations, including the Association CALSAGA, the Kern County Builders Exchange and the Independent Insurance Agents of Kern County. Shaun can be reached at 661-616-4700 or skelly@tolmanandwiker.com.

/by
Aley Moyer

The Californian Q3 2023 – Cal/OSHA Employer Reporting Requirements for Work-Related Fatalities & Severe Injuries

,

Cal/OSHA Employer Reporting Requirements for Work-Related Fatalities & Severe Injuries

Shaun Kelly, Tolman & Wiker, CALSAGA Preferred Broker

Hope everyone is doing well and coping with the extreme heat we are experiencing. (Please remember to educate and train your employees on heat illness and injury prevention).

This article is to inform you about your responsibilities as employers to report Work-Related Fatalities and Severe Injuries to Cal/OSHA. This is a requirement of all employers and must be reported within 8 hours of your knowledge of serious injury or illness. Failure to report within 8 hours of acknowledgement may result in a minimum penalty of $5,000.

Who has jurisdiction over California Employers, Cal/OSHA or OSHA (Fed)?

Cal/OSHA has jurisdiction over almost every workplace in California. This means Cal/OSHA is the main government agency authorized to inspect California workplaces for occupational safety and health violations. Cal/OSHA also issues permits, licenses, certifications and registrations to ensure that work is performed safely.

Cal/OSHA lacks jurisdiction in only a few limited areas. Some of these areas are listed below. (DISCLAIMER: This list of areas outside Cal/OSHA jurisdiction is not a definitive, exhaustive list. There are exceptions to the list and other areas not listed. If you have a question about Cal/OSHA jurisdiction, please contact the Cal/OSHA Legal Unit at 510-286-7348.)

Federal Occupational Safety and Health Administration (OSHA) jurisdiction

Federal OSHA has jurisdiction with regard to the following:

  • United States Government employees;
  • United States Postal Service (USPS) contractors and contractor-operated facilities engaged in USPS mail operations;
  • Private sector employers within the borders of all U.S. military installations;
  • Private sector employers within the borders of all U.S. national parks, national monuments, national memorials, and national recreation areas;
  • Private sector and tribal employers within the borders of all U.S. Government-recognized Native American reservations and trusts lands;
  • Maritime employment (except marine construction, which Cal/OSHA covers on bridges and on shore) on the navigable3 waters of the United States. Maritime employment includes:
    1. Longshore operations on all vessels from the shore side of the means of access to the vessels.
    2. Shipbuilding, shipbreaking, and ship repair on vessels afloat; shipbuilding, shipbreaking, and ship repair in graving docks or dry docks; ship repair and shipbreaking done on marine railways or similar conveyances used to haul vessels out of the water. This includes ship repair activities from a scaffold or other equipment adjacent to the ship that allows employees direct access to perform work on the vessel.
    3. Floating fuel operations.
    4. Diving from vessels afloat on navigable waters.

Cal/OSHA Definition of Serious Injury or Illness

With regard to reporting to Cal/OSHA, a serious injury or illness is now defined as one involving:

  • inpatient hospitalization, regardless of length of time, for other than medical observation or diagnostic testing;
  • amputation;
  • loss of an eye; or
  • serious degree of permanent disfigurement.

Accidents that result in serious injury or illness, or death that occur in a construction zone on a public street or highway are now included by statute. Work-related injuries, illnesses and deaths caused by the commission of a Penal Code violation are no longer excluded from the definition of “serious injury or illness”.

A serious exposure is now defined as an exposure to a hazardous substance that occurs as a result of an incident, accident, emergency, or exposure over time and is in a degree or amount sufficient to create a realistic possibility that death or serious physical harm in the future could result from the actual hazard created by the exposure.

Reporting Requirements

  • Every employer shall report immediately to the Division of Occupational Safety and Heath any serious injury, illness or death, of an employee occurring in a place of employment or in connection with any employment. The report shall be made by the telephone or through a specified online mechanism established by the Division for this purpose. Until the Division such mechanisms available, the report may be made by telephone or email.
  • Immediately means as soon as practically possible but not longer than 8 hours after the employer knows or with diligent inquiry would have known of the death or serious injury or illness. If the employer can demonstrate that exigent circumstances exist, the time frame for the report may be made no longer than 24 hours after the incident.
  • Whenever a state, county, or local fire or police agency is called to an accident involving an employee covered by this part in which a serious injury, or illness, or death occurs, the nearest office of the Division of Occupational Safety and Health shall be notified by telephone immediately by the responding agency.
  • When making such report, the reporting party shall include the following information, if available:
  1. Time and date of accident.
  2. Employer’s name, address and telephone number.
  3. Name and job title, or badge number of person reporting the accident.
  4. Address of site of accident or event.
  5. Name of person to contact at site of accident.
  6. Name and address of injured employee(s).
  7. Nature of injury.
  8. Location of where injured employee(s) was (were) moved to.
  9. List and identity of other law enforcement agencies present at the site of accident.
  10. Description of accident and whether the accident scene or instrumentality has been altered.
  • The above reporting requirements is in addition to any other reports required by law and may be made by any person authorized by the employers, state, county, or local agencies to make such reports.

The well-being and protection of your employees is a priority. Effective implementation and training on your safety policies and procedures help to prevent workplace injuries and illnesses, however not allaccidents can be prevented. Having the proper procedures in place after an accident is just as important to mitigate the injury or illness for your employee’s well-being.

Take care and please be safe.

Shaun Kelly joined Tolman & Wiker Insurance Services in 2005.  He specializes in all lines of property and casualty insurance for industries including contract security firms, agriculture, construction, oil and gas. Shaun received a BS in Business Administration with a major in Finance from California State University in Fresno, California. He is an active member of several industry associations, including the Association CALSAGA, the Kern County Builders Exchange and the Independent Insurance Agents of Kern County. Shaun can be reached at 661-616-4700 or skelly@tolmanandwiker.com.

/by