General Insurance Questions
Benefits Questions
Commercial Insurance Questions
Personal Lines Questions
General Insurance Questions
What should you expect from your insurance broker?
 Obtaining competitive quotes for coverage and handling claims problems is only a small part of what you should expect from your insurance and employee benefits advisors. Lawson-Hawks goes farther, providing quality service throughout the year, including custom employee communication materials, human resources tools, claims data analysis services, and much more. We use these tools to help you meet your benefits objectives, and will raise the bar for what you expect from your insurance broker.
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How can you officially retain Lawson-Hawks’s services?
There is no “typical” contract used to retain an insurance broker on your behalf. Lawson-Hawks is an independent agency that works with a wide range of carriers in order to provide the best products for your insurance and employee benefits programs. Providing your current carriers with a simple letter that names Lawson-Hawks as your “Broker of Record” will allow us to do an in-depth market analysis. By naming us as Broker of Record, Lawson-Hawks can get quotes from more markets, better leverage our relationships with carriers, and enjoy a better negotiating position with carriers by truly serving as your representative.
We can provide a sample Broker of Record letter at your convenience.
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How is Lawson-Hawks compensated for our services?
The resources that Lawson-Hawks has invested in and provides to you are supported by commission paid to us by our clients’ carriers.
Typically, clients select carriers at renewal, and pay a premium to these carriers each month.
With those premium dollars in-hand, the carrier provides coverage to our clients and pays their claims, as well as pays commission to Lawson-Hawks.
Because brokers typically receive commission dollars on a monthly basis, your plan renewal dates do not affect your ability to retain broker services. You can easily change your broker at any time during your plan year.
Is your current broker well compensated, but providing little more than an annual visit at renewal? Consider the added value that Lawson-Hawks’s services bring to the table.
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Answers to the Most Frequently Asked Benefit Questions
Are your employees getting the best value for their money?
Your employees are paying for a portion of your benefit plans, and consequently are paying a portion of our fees. You’ll want to ensure that you are providing the best value and service for your company and its employees by working with a quality organization. Our clear and professional enrollment materials, wellness communication materials, and other resources can help keep your employees satisfied, healthy, and safe.
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What is a Deductible?
A deductible is the amount of money you or your dependents must pay toward a health claim before your organization’s health plan makes any payments for health care services rendered. For example, a plan participant with a $100 deductible would be required to pay the first $100, in total, of any claims during a plan year.
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What is Coinsurance?
Coinsurance is a provision in your health plan that describes the percentage of a medical bill that you must pay and that which the health plan must pay.
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What is Out-Of-Pocket Maximum?
The maximum amount (deductible and coinsurance) that an insured will have to pay for covered expenses under a plan. Once the out of pocket maximum is reached the plan will cover eligible expenses at 100%.
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What is an Explanation of Benefits (EOB)?
An EOB is a description your insurance carrier sends to you explaining the health care benefits that you received and the services for which your health care provider has requested payment.
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What is a Pre-Existing Condition?
A pre-existing condition is a physical or mental condition that existed prior to being covered on a health benefit plan. Some insurance policies and health plans exclude coverage for pre-existing conditions. For example, your health plan may not pay for treatment related to a pre-existing condition for one year. You should check with your insurance carrier to learn how your organization’s health plan treats pre-existing conditions
What is a Preferred Provider Organization (PPO)?
A PPO is a group of hospitals and physicians that contract on a fee-for-service basis with insurance companies to provide comprehensive medical service. If you have a PPO, your out-of-pocket costs may be lower in a PPO than in a non-PPO plan.
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What is Utilization Management?
Utilization Management is the process of reviewing the appropriateness and the quality of care provided to patients. UM may occur before (pre-certification), during (concurrent) or after (retrospective) medical services are rendered. For example, your health plan may require you to seek prior authorization from your utilization management company before admitting you to a hospital for non- emergency care. This would be an example of pre-certification. Your medical care provider and a medical professional at the UM company will discuss what is the best course of treatment for you before care is delivered. UM can reduce unnecessary hospitalizations, treatment and costs.
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Commercial Lines Frequently Asked Questions:
What is Risk Management and what can it do for me?
Risk Management is a process of identifying conditions or exposures surrounding your business operations that can cause or lead to injury or loss of business assets by their very existence. Risk Management itself is a strategy or risk analysis. A qualified insurance broker should be able to develop techniques on your behalf enabling you to curtail or control those conditions that create potential exposure to loss.
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Why do I need to purchase Business Insurance?
As a business owner, you have no way of looking into the future and predicting when something may happen or how catastrophic the occurrence may be. Business insurance protects the business owner from financial ruin and should play an integral part in any prudent business plan. It can also protect the business owner from unexpected out of pocket expenses.
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Do I really need this much liability insurance?
Unlike property insurance which is usually tied to a specific value, there is no way to determine the potential amount of a loss from a liability standpoint. For this reason, higher limits are always recommended. Additionally businesses are usually required by a landlord, vendor or contractual arrangement to provide proof of insurance in the form of a certificate of insurance to a specific organization requiring certain limits of liability before acceptance.
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What is Business Income Insurance and do I really need it?
Yes. Business income insurance is crucial coverage. While property insurance will pay you for the replacement or repair of damaged tangible property after a covered cause of loss, it will not pay for loss from a cessation of operations while you are rebuilding your operations. Business income insurance will pay you the net income and continuing expenses for a specified period of time. In doing so it will keep your business afloat during the recovery and rebuilding process following a covered loss.
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I really hate to sacrifice coverage so is there a way I can cut my insurance costs?
Yes. First, be sure your insurance Broker works on your behalf by obtaining quotes from a few different carriers so you can see the price range you will be in based on the coverage for your business type. Secondly, discuss with your Broker how you can tailor your coverage with flexibility to help out with the cost without giving up valuable coverage or incurring costly penalties for underinsuring in case of a loss. And finally, consider raising your deductibles. However be careful to never raise deductibles to a level higher than you can afford to pay out of pocket.
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What is Workers’ Compensation coverage?
Workers’ Compensation in California is a statutory law by where all employers who have employees are required to purchase or be self-insured. It allows workers who are injured in the course of their employment to be compensated for their injuries without having to resort to a traditional lawsuit or court proceeding. An injured worker does not have to prove his or her employer was negligent or at fault for their injury, only that the injury happened in the course of their employment.
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What kinds of injuries are covered under Workers’ Compensation coverage?
Almost any kind of physical injury or disease is covered. In some states, mental, emotional, or psychological harm is covered. An injury or condition you have already had will not qualify, unless it was aggravated or made worse on the job.
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Are Workers’ Compensation benefits taxed?
Most states do not tax Workers’ Compensation benefits. The U.S. government does not tax Workers ’ Compensation benefits.
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What is Errors and Omissions Insurance?
Errors and Omissions Insurance is purchased to protect a professional from claims relating to an error or omission in providing professional services that can lead to a lawsuit.
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Why Do I need Errors and Omissions Insurance?
Any professional can be sued for an error, omission or mistake. No matter how detailed or diligent a professional you are you can be held liable for your mistakes. Errors and omissions insurance helps protect a professional both for claims relating to mistakes and claims relating to allegations of errors or omissions. Defense costs are a significant portion of the cost of an errors and omissions insurance policy so make every effort to obtain coverage with defense costs “outside” the limit of insurance. It is not uncommon for a professional to spend thousands of dollars on defense costs for a matter that ultimately gets dismissed.
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Personal Lines Frequently Asked Questions:
Is Fire or Hazard Insurance the same as my home insurance?
Yes. Fire or hazard insurance is commonly how mortgage companies will refer to your home policy as a requirement to close a new purchase or re-finance.
*Remember though that flood and earthquake insurance is not automatically included in the home policy but can be added or placed seperately
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Is my teenager covered under my auto policy with just a permit?
As long as the teen is not excluded the coverage will extend from your auto policy while permitted. Prior to taking the driving test contact your agent to have the teen added as a driver to your auto policy.
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If my child is away at college do they need to be listed on my auto policy to have coverage?
Yes. Even though away at school the primary residence for the student is still considered yours. There are options that can be considered depending how far the school is away from home. Always contact your agent in this situation to discuss options.
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What is loss assessment coverage?
Loss assessment coverage is protection against damage caused by your property to your neighbors property. Included on a homeowners policy for $5,000, can be increased to $55,000.
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Do I have loss assessment coverage on my condo policy?
There is automatic loss assessment coverage for $1,000, however our agency increases coverage to the maximum of $50,000, for a total loss assessment coverage of $51,000.
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Do I have loss assessment coverage for earthquake coverage for common areas on my condo's policy?
Not all companies offer loss assesment coverage for earthquake coverage for common areas on a condo policy; our agency has several companies that offer this coverage.
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Do I get a discount for having both automobile and homeowners insurance with the same company?
Yes, by placing both automobile and homeowners insurance with the same company, you can recieve up to a 45% discount.
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This brochure is for informational purposes only and is not intended to replace the advice of insurance professional.
Know Your Employee Benefits is written and produced for Lawson-Hawks. © Zywave, Inc. |
