Electricity Deregulation: How To Choose Wisely

Most everyone will be affected by California's $20 billion electric utility industry now that it's open to competition.

Among some of the changes, residential or small business customers of Pacific Gas & Electric, Southern California Edison or San Diego Gas & Electric who did not switch providers automatically received a 10 percent rate reduction as of Jan. 1, 1998. Those who switched providers will receive the 10 percent reduction in the form of a credit to their bill.

In an effort to explain how these and other changes will affect your business, the California Public Utilities Commission has developed an informational tool for business owners who wish to make informed choices in how they buy their electricity.

The kit contains an overview of the electric utility industry, a series of brochures detailing safety and reliability, consumer protection, renewable energy and shopping for electricity, and an informational video.

To order the kit or for more information, call the Electric Education Call Center at (800) 789-0550.

Have You Displayed Employee Posters?

When defending against lawsuits such as sexual harassment or family leave, it's important that you have properly displayed the required employer posters demonstrating that the employee was advised of his or her rights.

Make sure your firm is complying with employer regulations with the California Chamber of Commerce's employer packet containing federal and state rights within the workplace.

The packet includes the two required posters on issues such as safety, harassment and discrimination, equal employment opportunity, and worker's compensation. For a complete set of the required posters, contact your local chamber of commerce, the Better Business Bureau, or the Department of Labor.

Businessowners Policies: Are You Protected?

If your business sustains a loss, will your insurance cover the damages?

Most businesses are covered under package policies called Business Owners Policies (BOP), which can offer broader coverage at a smaller price.

According to Insurance Information Institute Senior Vice President Sean Mooney, here is what's typically covered in BOPs:

Building and contents: for losses caused by perils such as fire, wind and theft.
General liability: provides coverage when the business owner is legally liable to others.
Extra expense: if a loss occurs and the business has to relocate.
Business interruption: loss of income during restoration when the business does not relocate.
Damage or destruction of signs connected to the business.
Window and glass breakage.
Business automobile collision.
Personal property while in transit.
Crime: provides coverage for money and securities on and off the premises.

Stayin' Alive: Protecting Your Business

As an owner or potential owner of a business, you have many important decisions to make about your operations, and insuring your business and protecting your assets is one of the most crucial.

According to the Independent Insurance Agents of America, no matter how large or small your business, you face liability, which means that your business could be held accountable when someone else suffers an injury or damage to their property because of something your business did or did not do. General Liability includes:

	Bodily Injury - includes sickness, disease or death sustained by a person or persons.
	Property damage - includes physical damage to someone else's property and loss-of-use of the damaged property.
	Personal injury or advertising injury - personal injury refers to harm to another person's or business's reputation or basic rights, such as the right to privacy. Advertising injury refers to harm caused by an advertisement, such as an ad slandering a competitor.
	Products and completed operations injury - product coverage is extended to any harm that a business's reputation might cause, including injury arising from "completed operations" such as repair work or electrical installations.

You will need to carefully consider the limits that are sufficient to cover the type of work you are doing, the product you are selling and the amount of interaction you have with the public.

Remember, no two businesses are alike. We can help you design an insurance program specifically tailored to meet your needs, and protect your business from the many risks you face in your daily operations.

Placing Insurance With A Surplus Line Company

Wondering what a surplus line insurance company is and how it operates?

Although the term loosely refers to specialty insurance coverages, in the typical state insurance code it means insurance placed with a non-admitted insurer. A non-admitted insurer is an insurance company that has not obtained a Certificate of Authority from the state's insurance commissioner to sell insurance on an admitted basis within the state.

Admitted insurance companies submit to strict financial and examination requirements specified for admittance into the state, and participate in the state's insolvency guarantee funds and residual market mechanisms. Admitted insurers must also follow the state's form and rate filing requirements, meaning they can sell only what the state has approved, and charge only according to authorized rate plans.

Non-admitted insurers may be subject to some of these requirements but generally are not subject to (their policyholders are not protected by) guarantee funds, or form and rate filing requirements.

Non-admitted insurance is placed through a specially licensed and bonded surplus line broker, who in all but a few states must be a state resident. Some states, such as California and Alaska, are especially strict in enforcing their non-admitted insurance laws and regulations.

In California, only approved non-admitted companies may be used. Evidence of approval is shown by their placement on the List of Eligible Surplus Line Insurers.

Non-admitted insurers serve the essential needs of the insurance-buying public, especially for sophisticated commercial insurance buyers. They also spell danger for those unfamiliar with their ways.

Call our firm for more information on placing coverage with a surplus line insurance company.

Frank A. Crowl Company, Inc.
Lic. #0508258
15260 Ventura Blvd. Suite 1060
Sherman Oaks, CA 91403

www.crowlinsurance.com
800-606-5565 or 818-783-1533
Fax: 818-501-0229
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