Insurance Insights: The Cleary Insurance Blog
The Cleary Insurance blog covers insurance, risk management, and financial planning for New England businesses and individuals. Our team of licensed advisors and specialists publishes regular articles on commercial and personal coverage, employee benefits, life and financial planning, and insurance compliance. Browse recent articles below, or use the category filters to find topics relevant to your business or personal situation.
Am I Covered if I Rent a Car on Vacation?
Have you ever found yourself in this situation? You are standing at a rental car counter, with a line behind you, feeling pressured to buy insurance. It’s a tricky decision, given the fact that you may already be covered through your existing car insurance.
When you rent a car, the car rental company may offer you an insurance plan to cover the vehicle. If you have an auto insurance policy, do you need to purchase the insurance? The good news for Massachusetts Auto Policy holders is that coverage is provided on Mass Auto Policies; however not all coverages will respond in the same way your personal auto coverages respond.
Please keep in mind these important considerations:
Your Mass Auto Policy (MAP) is NOT a worldwide policy! The Mass Auto policy only covers losses that occur in the United States (including Puerto Rico and U.S. territories and possessions) and Canada.
Most rental car companies require all drivers of the vehicle to be declared. Your MAP will only provide coverage for drivers listed on your auto policy for a rental car.
Bodily Injury and Property Damage will apply as long as you are legally responsible for the accident.
Your Collision & Comprehensive coverage provide protection, less your deductible for most damage to a rental car. HOWEVER, many rental company contracts indicate that you are responsible for their loss of rental income while the damaged car is being repaired.
In the event of a total loss or theft of a rented vehicle, the MAP will pay for the actual cash value (ACV). You could end up paying the out-of-pocket difference between the ACV and replacement cost of the vehicle.
Your Mass Auto Policy will only respond to a private passenger type vehicle. It will NOT respond to a motorcycle, motor home, or moving truck. Also, the MAP will NOT respond if a vehicle is rented for an extended period of time over 30 days or is driven off road.
We recommend that you do the following:
Carefully read and understand the rental agreement before signing as not all contracts are the same.
Many credit cards will cover damages to a rental vehicle. Be sure to check available coverage, and if there are any limitations.
Above all, make sure you have some form of insurance on the rental car. The last thing you want is to get into an accident and be underinsured.
Concerned about your personal insurance coverage? At Cleary, our experienced Personal Lines department will work with you to evaluate your insurance needs, identify exposures, and create a customized insurance portfolio. Give us a call today at 617-723-0700.
DOL Audits
Over the past year a number of contractors have been subjected to audits by Department Of Labor (DOL) Investigators. ARRA (American Recovery and Reinvestment Act) funding has reinvigorated enforcement activities. It has also become apparent that these audits are becoming more complicated to resolve.
In some cases the audits have increased in complexity; with the DOL Investigators asking for a myriad of company records, and then leaving for several weeks or months without finalizing the audit. This leaves the contractor in limbo and causes apprehension with their various customers. We recommend that in these cases the contractor send a letter to the DOL Investigator’s Supervisor and include a copy to the Regional Wage Specialist, asking for closure on the audit.
Some DOL Investigators threaten to withhold contract funds if compliance is in question. On Form WH-56 “Summary of Unpaid Wages”, the investigator will list all of the employees whom the investigator determines are due back wages. Investigators may also threaten debarment if contractors do not pay all the employees noted in the Summary of Unpaid Wages.
The Professional Service Council met with DOL officials last December at The Wage and Hour Division in Washington, DC due to the vast number of complaints regarding DOL Audits. The DOL agreed to send some representatives from their Wage and Hour staff to the PSC- SCA Training program in Wash DC. This program was held in March 2013 and has an upcoming session in October.
Any contractors, who do not have experienced personnel capable of handling DOL audits, may benefit by sending some of their employees to the next SCA training class that covers DOL audits.
If you would like additional information on SCA training programs, you may contact Albert Corvigno at acorvigno@marallc.com or call him directly at 252-312-4853.
For additional information relating to SCA compliance please click here to read “Avoiding the Compliance Pitfalls of the Service Contract Act” co-authored by Al Corvigno.
SCA Update
Effective June 19, 2013, the SCA health and welfare benefit increased to $3.81. Please click here to read the All Agency Memorandum Number 214.
At Cleary, we know how important a comprehensive benefits package can be to your continued success. Give us a call today at 617-723-0700 and we will work with you to create a plan that meets your fringe-benefit obligations and provides your employees with valuable benefits.
Client Spotlight: Captain Al’s Restaurant
If you are looking for a way to beat the heat this summer we suggest a visit to Captain Al’s Restaurant & Tiki Bar. Captain Al’s is a casual, family style seafood restaurant located adjacent to Continental Marina in Buzzards Bay on the Upper Cape.
In addition to an extensive menu with delicious food and drink choices, Captain Al’s features a spacious water-side deck with breath-taking views of Buttermilk Bay.
Captain Al’s is open daily from 12 noon to 12 midnight, please click here for directions. The summer season passes quickly so plan a visit to Captain Al’s soon.