Archive for November, 2008
Claims Question of the Week
Friday, November 21st, 2008 | Claims Questions | No Comments
WHEN SOME EMPLOYEE INJURIES, ARE NOT ACCEPTED AS A COMPENSABLE CLAIM?
Frequently asked question of employers; when might a worker compensation injury be considered a non-compensable injury.
Injuries are not covered if…………………..
All claims at Safety Engineering Consultants are reviewed and considered based on individual merit. The compensability or denial of a claim is not limited to the above categories. It is very important that all claims information is communicated with your insurance carrier or claims adjuster to address any RED FLAGS or compensability issues that may arise.
Kathy Kinard
Claims Representative
Safety Engineering Consultants
615.826.4274
kkinard@sectn.com
Follow-up - Next Generation Underwriters grants a Very Special Wish with the Make-A-Wish Foundation
Thursday, November 20th, 2008 | Helping the Community | No Comments
John Evans
President
Next Generation Underwriters
615.822.5454
jevans@nguins.com
The Importance of Accurate Payroll Reporting for Workers Compensation
Thursday, November 20th, 2008 | Insurance Topics | No Comments
To avoid unexpected cost at the end of the workers compensation policy year, it is very important that the correct payrolls be used in the underwriting of the account. Next Generation Underwriters strives to use the correct payrolls - we are dependent on Insureds to supply us the correct numbers. We do not want the Insureds to be surprised at audit.
Donna Robinson
Customer Service Representative
Next Generation Underwriters
615.822.5454
drobinson@nguins.com
Educator Expenses Reinstated for 2008
Thursday, November 20th, 2008 | Finance | No Comments
I can remember the day my mother retired as a teacher my dad said our income would go up. He always maintained that she spent more on “stuff” for her kids and her room than she brought home in pay. Several years ago Congress recognized that teachers as a function of their job spent money that was unreimbursed by the school system and The Educator Expenses deduction was created.
If you are an eligible educator, you may be able to deduct up to $250 of expenses you paid for purchases of books and classroom supplies.
This credit expired at the end of 2007 but has been reinstated for 2008. These out-of-pocket expenses may lower your tax bill even if you don’t itemize your deductions. Unreimbursed expenses over $250 might be deductible if you itemize deductions as a miscellaneous business expense or as a charitable contribution with appropriate documentation from the school system.
Please consult with your tax professional to determine if your unreimbursed expenses are deductible.
Jeffery T. Mathis
Chief Financial Officer
Next Generation Underwriters
615.822.5454
jmathis@nguins.com
Next Generation Underwriters grants a Very Special Wish with the Make-A-Wish Foundation
Monday, November 17th, 2008 | Helping the Community | No Comments
Tonight I have the pleasure of attending a truly special event. My wife, Barbara, and I are headed to Pump-It-Up in Mt. Juliet to attend a party for a very special friend of ours. Our friend Kambryn is 5 years old and has been very, very sick for quite some time now. In fact, tonight is the first time he’s been out of the house in about a year.
We have a big surprise for Kambryn tonight: He’s going to find out that he and his family are making a trip to Disney World. I can’t wait to see his reaction, and I look forward to meeting his family. Next Generation Underwriters is privileged to sponsor Kambryn’s wish, and we’re all looking forward to continuing our work with the Make-A-Wish Foundation of Middle Tennessee. Stay tuned for a full report about Kambryn’s party.
John Evans
President
Next Generation Underwriters
615.822.5454
jevans@nguins.com
Region 5 holds meeting at West Wilson Utility District
Tuesday, November 11th, 2008 | Where we will be | No Comments
On November 5th, Region 5 held its meeting at West Wilson Utility District in Mt. Juliet, Tennessee.
Region 5 Leader Freddie Weston and General Manager of West Wilson Utility District was pleased with the turnout for the meeting as attendees settled in for the program which began at 10:00. Joyce Welborn, from the State of Tennessee Comptroller’s office presented the information to the members of TAUD concerning regulations on water loss. Erich Webber from the Nashville Environmental Field Office presented a program on the new Sanitary Survey Guidelines which sparked a great debate about program rules and regulations from the attendees.
Members also heard reports from Rural Development and from Bob Freudenthal of TAUD.
Lunch was held at Bakers Cafeteria following the meeting and was sponsored by Mike Wetherington of ADC and Frank Lammers of The Mueller Company. Special ‘thank you’ to Freddie Weston and West Wilson Utility District for hosting the Region 5 meeting.
Kirk Smith
Account Executive
Next Generation Underwriters
615.822.5454
ksmith@nguins.com
INSURANCE OR EDUCATION?
Friday, November 7th, 2008 | Insurance Topics | No Comments
How can teachers and administrators cope with the liability insurance question?
How many times have you, as a professional educator, been approached by a representative of an educator’s or administrator’s association soliciting your membership? As a professional educator, you have access to a number of professional associations to help you with everything from collective bargaining to budget preparation and management. Teachers can choose PET or TEA/NEA, School Boards may choose TSBA, Superintendents may choose to be a member of TOSS, Finance Officers can join TASBO and Principals have the TAEMSP to name a few. You know from experience that all of the associations have something to offer, even though they may not cater to your particular discipline. Each of these associations can be very helpful in their own specific way, depending on what you choose to make your priority in public education.
One thing that most of the associations have in common is an offer of some type of personal, professional liability insurance coverage. This coverage, depending on the association, is sometimes touted as the primary and most important benefit of the membership offer. It is sometimes offered in context of a presentation with horror stories about how some teacher or principal in some obscure school system lost his or her home and filed bankruptcy only to be relegated to living the rest of his or her life working at the local convience store.
I do not intend to guffaw the very real possibility of a lawsuit against a professional educator. Lawsuits occur routinely across America in considerable numbers. However, I would like to ask; have you ever personally known one of these poor, unfortunate, bankrupt former educators?
The fact is that national associations are “painting with a broad brush” when they attempt to explain why you need their membership simply to cover your personal liability. While potential personal liability is somewhat universal across the US with respect to Federal law, each state has its own version of statutes regarding the liability an educator may have in pursuit of his or her employment. I have personally worked with the majority of school systems in Tennessee since 1987 as Program Manager of the Tennessee Risk Management Trust and I have yet to see a professional educator personally pay anything as a result of an adverse judgment due to their actions within the scope and performance of their employment.
The reason for this is that the General Assembly of the State of Tennessee has recognized the value of professional educators and the quality of education that results from a well adjusted professional in pursuit of a career in public education, free of the worry of being personally ruined because of something they did or didn’t do at work. Any organization or association who uses fear as a reason to join their ranks is doing a great disservice to our professional educators and our children. This preoccupation with the possibility of ruin takes away the freedom an educator has to do his or her best work.
I am not an attorney and do not pretend to give legal advice but I can speak from years of history in Tennessee public schools. Our attorneys have advised us that, under Tennessee Code, an employee of a school system is presumed to be an agent of the employer school system and is thereby considered to have the same immunity and legal protection as the school system. The Tennessee Code provides that the school system may choose to buy insurance or indemnify their employees for the expense of defending themselves against lawsuits in the pursuit of their employment. Most of our 136 school systems have chosen to buy some form of insurance which also covers their employees. We know this because 101 of these systems and their educators are covered by the Tennessee Risk Management Trust. The remaining school systems have a variety of insurance programs or are self-insured. Every school system in Tennessee has complied with the State requirement to indemnify or insure their employees for their liability as a professional educator. Therefore, it is not necessary for an individual to purchase additional coverage.
Your next question would be; what if I am sued for something my School Board has not covered? In reality, this is not possible unless you have violated the policies of your employer and have gone outside the “scope and performance” of your job responsibilities. You may then ask; shouldn’t I buy coverage in case this happens? The answer is that any such departure from the intent and instructions given to you by your employer through board policy would be considered an “intentional act” by any insurance coverage you purchase and would not be covered.
The only exception to immunity for a public school and its employees would be a “willful and wanton act of negligence”. This could be defined as an act that any prudent and reasonably intelligent person would not do. Combine this with “intentional acts”, which can be defined as anything that you know or have the ability to know that you are not allowed to do by your employer’s policies and you can conclude that there is no insurance or other coverage that is better or more comprehensive than that the State requires your school board to provide to you at no cost.
We know that you possibly have knowledge of several teachers or administrators who have been included in a lawsuit for a variety of alleged actions or inactions. It is common practice for plaintiff’s attorneys to take the “shotgun” approach by suing anyone or any entity who may have resources they think are adequate to pay what they feel is an equitable settlement for their client’s misfortune. In each of these situations, the first action generally taken by an insurance company in defending such a claim is to ask for release of the teacher/employee from the suit as the school board is ultimately responsible for the acts of their employees as described above. This release is routinely granted and the insurance company proceeds to defend the school board with the employee or administrator participating only as a witness with no liability.
As you understand the conclusions above, you should begin to wonder if you are using the correct criterion for joining a professional association. To aid you in this thought process, consider this. All Tennessee school systems are required to cover their employee’s professional liability at no cost to the employee.
As you look at the benefits of paying dues and joining a professional association, should you consider whether they provide personal professional liability insurance as a benefit of membership? Knowing that you already have coverage as explained above, it would appear to be a waste of hard earned money to pay dues to an association only for the insurance provided through membership. The associations available to Tennessee’s educators have many benefits to offer that are of much greater importance to you as a professional and Tennessee education in general than the simplicity of adding yet another layer of liability insurance. As you choose a professional association, please look at the association’s dedication to professional excellence while you know that your personal interests have been carefully considered and protected by your State and your school board. Your choice of an association whose mantra is professional excellence rather than redundant layers of insurance will be rewarded in the quality of education that you are able to provide to our children.
John Evans
President
Next Generation Underwriters
615.822.5454
jevans@nguins.com