A subsidiary of JGS Insurance

(888) 548-2465

Menu

Latest Posts

  1. Personalized Contract Review

    Leave a Comment

    Situation

    Wholesale florist with plant maintenance contracts for over 100 commercial buildings. This client also creates and puts up large displays in malls throughout the tristate area. Client was required to provide certificates with specific wording based on their client’s contractual requirements. Prior to working with JGS they were not reviewing any of their contracts before signing them opening them up to a lot of unnecessary and in some instances uncovered liability. Many of the companies they worked with asked them to sign contracts under which they agree to “defend, indemnify and hold harmless” a counter party – generally for their own negligent acts, but, in some cases, for those of the counterparty and their affiliates for an excess amount of time. Even though the insured’s was accepting the contractual indemnification by signing the contract it did not necessarily obligate their insurance carrier to provide coverage aligned with the intent of the parties. Failure to review and account for these contractual obligations can result in an uninsured exposure – the insured could be obligated to pay for the defense and indemnification of the counterparty, without the benefit of insurance coverage to fund that obligation.

     

    Solution

    1. Review clauses and agreements
      • Ensured compliance with their current insurance program and that they will provide the coverage requested in their indemnification & hold harmless agreements
    2. Review and amend coverage
      • Added coverage to policy via endorsement if necessary, enabling our clients to remove unfavorable and excessive clauses from their contracts
    3. Review all contracts
      • Ensured their insurance policy was in compliance with their contractual requirements

     

    Outcome

    • Sections of their contracts exposing them to an unreasonable amount of liability were removed if they were not insurable or relevant to the company’s specific operations.
    • Client walked away from a few smaller clients and jobs where their return did not exceed the potential risk the client was asking them to take on.

     

    Successfully educated our client in contractual risk transfer, resulting in more educated decisions when negotiating their contracts

     
     
    View All Case Studies

  2. Commitment to Safety

    Leave a Comment

    Situation

    A fast growing sign company specializing in high quality custom fabrication and professional sign installation was suffering a series of very large workers’ comp losses. With an experience modification rate of 1.83 and a business with inherent exposures including elevated work and high voltage electrical the company seemed doomed to be forever in the assigned risk pool. What made matters worse was the main area of operation included North Jersey and New York City. This created an additional public liability exposure that if not properly controlled could easily result in six figure lawsuits.

     

    Solution

    1. Review claims reserves with the carrier’s adjuster
      • Discrepancies were found that favored the insured. JGS, on the insured’s behalf requested the carrier to make the revisions.
    2. Implement a safety program
      • Specialized training addressed fall hazards, working near power lines and protecting the public from elevated work. Educated the owners on the contractual liabilities and labor law 240 exposures that are unique to New York.
    3. Perform unannounced site visits
      • The client gave JGS the authority to stop any work performed in an unsafe manner. Work was not to resume until corrections were made and management notified.

     

    Outcome

    • We were able to obtain reserve reductions totaling over $180,000. This accounted for a 20% reduction in total incurred over a three year period.
    • With JGS assistance and the insured’s commitment to safety there has not been a lost time accident in the past 18 months.

     

    After consulting with us, our client was well on the way to a major reduction in premiums, increased profitability and achievable safety standards

     
     
    View All Case Studies

  3. Solutions for High Risk Situations

    Leave a Comment

    Situation

    A New Jersey based design/build manufacturer of high risk products designed specifically according to government contract specifications was having difficulty finding coverage. Several brokers were approached and did not have the expertise to provide a solution. Due to increased project requirements, location needed to be moved to accommodate growth. Liability and property coverages would need to cover the location and operations properly.

     

    Solution

    1. Audit all products and revenue sources
      • Properly determined and thus explained the true risk to the insurance marketplace.
    2. Conducted an in depth survey of products
      • Allowing our client to fully understand the exposure inherent.
    3. Evaluate and place coverage
      • Placed coverage in a specialty program of a standard carrier by showing the products produced where only parts of an eventual product that was causing the problem exposure.

     

    Outcome

    • With clear understanding, multiple carriers where comfortable in providing adequate coverage at a reasonable price.
    • They have now been able to expand their business into other markets.

     

    Our client can rest assured that JGS will always ultimately explain their exposures to the market place.

     
     
    View All Case Studies

  4. Penalty Crisis Averted

    Leave a Comment

    Situation

    A manufacturing company in New Jersey with 200 employees had a long standing relationship with an employee benefits consulting firm who touted their compliance services for the last 15 years. An employee with a serious health condition was terminated due to poor performance and complained to senior management that she was wrongfully terminated based on her health condition. During this ordeal the company discovered on their own that they are required to have a HIPAA Privacy Policy and a “Wrap” Summary Plan Description (SPD) or face significant fines and non-compliance penalties – especially if the DOL and HHS had discovered the absence of these documents during an investigation of a disgruntled employee or a routine audit.

     

    Solution

    1. Educate company on compliance
      • The absence of the HIPAA Privacy Policy and the Wrap SPD are two of the most important documents needed to administer a compliant benefits program.
    2. Identify voids in current benefits program
      • JGS determined they were also missing several other key documents and procedures that must be followed throughout the year.
    3. Implement compliance strategies
      • Potential issues and monetary fines would now be avoided.

     

    Outcome

    • The company could now run their business while JGS “has their back.”
    • Implemented cost saving strategies that had no downside impact on their employees.
    • Offered additional resources to their HR Department that would reduce their workload.
    • These initiatives kept both management and the employees happy and in the end made the company look good.

     

    Our compliance know-how saved our client thousands in potential penalties.

     
     
    View All Case Studies

  5. Exposure and Coverage Analysis

    Leave a Comment

    Situation

    A large consulting firm in New York had a long standing relationship with their Property & Casualty broker for over 20 years. The consulting firm provides field inspectors for the utility industry. The field inspectors are responsible to ensure the utility company’s construction contractors install gas and electric underground facilities, substation or other assigned projects in compliance with Federal, State, and local safety and environmental rules and regulations. The field inspectors are responsible for all failures in enforcement and oversight. After the controller left the company, the client felt it was perfect timing to explore new relationships. Through a partner referral, the consulting firm contacted JGS to assist with placement of Directors & Officers coverage.

     

    Solution

    1. Diagnostic Review of Operations
      • Client was concerned about the structure of their insurance program and if they had right coverage in place.
    2. Educate the Client
      • Reviewed coverage triggers and exclusions provided under their existing insurance program.
    3. Exposure and Coverage Analysis
      • Revealed the client had no policy in place for their professional services and environmental liabilities.

     

    Outcome

    • Restructured the commercial insurance program to reduce potential coverage gaps by combining Contractors Pollution Liability and Errors & Omissions.
    • Cover cases in which error or omission causes release of harmful pollutants.
    • Errors & Omissions to cover alleged mistakes, advice, failure to perform professional services, and defense cost for law suits against their company.
    • Eliminate cost of multiple premiums of payments for separate policies.

     

    The analysis helped the client eliminate potential Errors & Omissions and Pollution liabilities by transferring the risk. They can feel at ease and focus on growing their business.

     
     
    View All Case Studies