Category: Commercial Insurance

Florida’s Minimum Wage Increasing to $10 Per Hour on September 30

By Anita Byer, Setnor Byer Insurance & Risk

The largest minimum wage increase in Florida history is just weeks away! On September 30th, Florida’s minimum wage will increase to $10 per hour. That’s $1.35 more per hour than the current minimum wage and $1.44 more than last year’s minimum wage. A quick peak at the calendar confirms that employers have plenty of very little time left to prepare for this historic wage increase.

The upcoming increase is required by the $15 Minimum Wage Ballot Initiative (Amendment 2), which was approved by Florida voters in November 2020. Amendment 2 increases Florida’s minimum wage incrementally over a period of years until it reaches $15 per hour. The first (and largest) increase will occur September 30, 2021. It will then increase annually on September 30th per the following schedule.

2021                       $10.00

2022                       $11.00

2023                       $12.00

2024                       $13.00

2025                       $14.00

2026                       $15.00

2027                       Annual adjustments for inflation resume.

As of September 30, 2021, a minimum wage employee working full-time will need to be paid an additional $54 per week. Depending on the workforce make-up, the resulting increase in payroll expense may be minimal for some and substantial for others. Nevertheless, all employers must plan and prepare beforehand to avoid unintentional, unnecessary and costly violations. Employers should also look beyond this year’s record-breaking increase when budgeting for payroll. There will be five more increases under Amendment 2, each of which is large enough to tie the current record for largest single increase in Florida history.

To reduce the likelihood of costly mistakes, employers should provide wage and hour training to managers and supervisors. Employers should also carry Employment Practices Liability Insurance with limited coverage for wage and hour claims. Contact us to learn more about protecting your business with Employment Practices Liability Insurance.

NOAA Updates 2021 Hurricane Season Forecast to Include More Named Storms

By Anita Byer, Setnor Byer Insurance & Risk

The National Oceanic and Atmospheric Administration updated its 2021 hurricane season outlook and is now predicting more named storms than previously forecast. This is significant because the 2021 season is already breaking records—Hurricane Elsa became the earliest 5th named storm ever recorded. It’s also concerning because tropical activity spikes from mid-August through mid-October. According to NOAA, “after a record-setting start, the 2021 Atlantic hurricane season does not show any signs of relenting as it enters the peak months ahead.”

NOAA initially predicted that the likelihood of an above-normal 2021 hurricane season was 60 percent. But now, the likelihood of an above-normal season is 65 percent. The number of named storms and hurricanes is higher now too. Before hurricane season began, NOAA forecast 13-20 named storms and 6-10 hurricanes. While the initial forecast of 3-5 major hurricanes (winds of 111 mph or higher) remains unchanged, forecasters at NOAA are now expecting:

  • 15-21 Named Storms (winds of 39 mph or higher)
  • 7-10 Hurricanes (winds of 74 mph or higher)

NOAA forecasters believe that oceanic and atmospheric conditions will generally favor above-average activity for the remainder of the Atlantic hurricane season. For example, reduced vertical wind shear and an enhanced west Africa monsoon help create conditions that can increase seasonal hurricane activity. Unfortunately, these favorable conditions increase the likelihood of damaging wind, rain, flooding, storm surge, loss of property and loss of life. According to the Director of the National Weather Service, “now is the time for families and communities to ensure their preparations are in place.” We couldn’t agree more.

NOAA’s updated forecast should provide all the motivation needed to remain alert, prepared and ready to act if your home or business are in the path of a storm. Remember, it only takes one hurricane making landfall to make it an active season for you. It’s better to be safe than sorry.

Please contact us if you would like more information about protecting your personal and business property during the 2021 Hurricane Season.

Business Insurance 101: What is a BOP?

By Anita Byer, Setnor Byer Insurance & Risk

A Business Owner’s Policy (BOP) is a pre-packaged bundle of insurance coverages that are available to eligible small- and medium-sized businesses. BOPs are designed to provide a number of essential insurance coverages in a convenient and cost-effective manner. BOPs typically provide:

  • property insurance to cover damage to buildings and contents;
  • business income (business interruption) insurance to cover the loss of income resulting from a covered loss that disrupts business operations; and
  • liability insurance to protect against liability claims for bodily injury and property damage occurring on a business’s premises or arising out of its operations.

Depending on the insurance company, additional coverages may be included in a BOP, or added for an additional premium, such as:

BOP eligibility requirements can vary significantly among insurance companies, but they are typically reserved for small- and medium-sized businesses, which generally have fewer than 100 employees and annual revenues of less than $5 million. BOPs may also not be available to businesses operating in specific industries or those with highly specialized or high-risk operations.

It’s worth noting that BOPs may not be the best option for some businesses, regardless of eligibility. Some businesses, for example, may need higher limits or broader coverages than those available in a BOP. There are also a number of coverages that BOPs do not provide, such as workers compensation, commercial automobile and professional liability insurance. Even with a BOP, additional insurance policies may still be necessary.

Since BOPs are customized insurance products, coverage options (limits, exclusions, etc.) can vary significantly among insurers. This can make it difficult to understand and compare various BOP options. Businesses should work with an experienced insurance agent. Contact us to learn how a BOP can provide an effective and affordable insurance solution for your business.

Can Employers Prevent Unvaccinated Employees from Entering the Workplace?

By Anita Byer, Setnor Byer Insurance & Risk

Many employers are struggling with how to deal with the shrinking, yet substantial number of employees who are not vaccinated for COVID-19. As infection rates increase, employers are once again forced to consider actions to maintain operations while protecting the health, safety and welfare of their employees. Some are considering policies that require all employees physically entering the workplace to be vaccinated for COVID-19. Is this legal?

According to the Equal Employment Opportunity Commission, federal EEO laws do not prevent an employer from requiring all employees physically entering the workplace to be vaccinated for COVID-19. However, the EEOC stresses that it must be done in a manner that does not violate the reasonable accommodation provisions of Title VII of the Civil Rights Act and the Americans with Disabilities Act.

These laws may require an employer to provide reasonable accommodations for employees who do not get vaccinated for COVID-19 because of a disability or a sincerely held religious belief, practice or observance. Reasonable accommodations may include requiring an unvaccinated employee entering the workplace to wear a face mask, maintain social distance from others, work a modified shift, get periodic COVID-19 tests or be given the opportunity to telework. A reasonable accommodation, however, is not required if would pose an undue hardship on business operations. Courts define “undue hardship” under Title VII as having more than minimal cost or burden on the employer. This is an easier standard for employers to meet than the ADA’s undue hardship standard, which generally requires significant difficulty or expense.

The EEOC cautions that as with any employment policy, employers must ensure that their vaccine requirement does not have a disparate impact on employees based on a protected characteristic (race, color, religion, disability, etc.). Policies that disproportionately impact or exclude employees because of these characteristics are discriminatory and unlawful. The EEOC urges employers to recognize that some individuals or demographic groups may face greater barriers to receiving a COVID-19 vaccination than others. As a result, some employees may be more likely to be negatively impacted by a vaccination requirement.

Employers should remember that guidance from public health authorities is likely to change as the COVID-19 pandemic evolves. Therefore, employers should continue to follow the most current information on maintaining workplace safety. Employers should also carry Employment Practices Liability Insurance to cover the high cost of defending against claims of unlawful conduct.

Please contact us if you would like to learn more about Employment Practices Liability Insurance.

Legislative Update: Multiple Amendments to Florida’s Condominium Act Took Effect July 1st

By Anita Byer, Setnor Byer Insurance & Risk

Did you know that multiple changes to Florida’s Condominium Act went into effect July 1, 2021? As a result, board members have an obligation to find out if and how these new and amended laws may affect their condominium association and its operations. These changes may not be major or momentous, but they can be particularly significant to many, if not most associations. For condominium associations, this new legislation includes provisions that:

  • Reduce the time period an association must maintain official records of bids for work, equipment or services from seven years to one year after receipt of the bid.
  • Allow a renter to inspect and copy the declaration of condominium.
  • Permit associations with 150 or more units to make official records available for inspection through an application that can be downloaded to a mobile device.
  • Provide that only a board member’s service that occurs on or after July 1, 2018, may be used when calculating a board member’s term limit.
  • Permit associations to electronically transmit the written notice of a meeting.
  • Increase the maximum permissible fee an association may charge for the transfer of a unit from $100 to $150 (with adjustments every five years thereafter).
  • Remove the prohibition against an association employing or contracting with a service provider that is owned or operated by a board member or person who has a financial relationship with a board member or officer.
  • Permit unit owners to install charging stations for electric or natural gas fuel vehicles on a parking area exclusively designated for use by the unit owner. (Unit owners are responsible for the costs related to the installation, maintenance and removal of their charging stations.)
  • Authorize the association board to make available, install or operate an electric vehicle charging station or a natural gas fuel station upon the common elements or association property, and to establish the charges or the manner of payments for the unit owners, residents or guests who use the electric vehicle charging station or natural gas fuel station.

Board members should be reviewing all new condominium-specific legislation, as well as any other applicable statutory amendments, to ensure compliance. Depending on the circumstances, consultation with the association’s attorney may be necessary. Setnor Byer Insurance & Risk can help associations and board members identify, manage and insure their unique risks. Please contact our team to discuss the various risk management services we provide our condominium association clients, including our Unit Owner Report Line and Division-Approved New Board Member Education.

This is What Businesses Need to Know About Florida’s COVID-19 ‘Vaccine Passport’ Ban

By Anita Byer, Setnor Byer Insurance & Risk

Florida’s ban on so-called COVID-19 ‘vaccine passports’ begins July 1, 2021. Unlike guidance issued by public health authorities like the Centers for Disease Control and Prevention, Florida’s ban on COVID-19 vaccine passports is mandatory, not voluntary. Those who fail to comply can be fined up to $5,000 per violation. As a result, businesses have a vested interest in knowing what they can and cannot do under Florida’s new COVID-19 vaccine documentation law.

Who is subject to the ban? The law broadly applies to most business entities in Florida, as well as educational institutions and governmental entities. It does not apply to various healthcare-related businesses, which are specifically identified in the statute.

What is a business entity? The law broadly defines business entity to include any business operating in Florida. Unless specifically excluded, any form of corporation, partnership, association, cooperative, joint venture, business trust or sole proprietorship that conducts business in this state must comply with the vaccine passport ban.

What does the law prohibit? Covered business entities “may not require patrons or customers to provide any documentation certifying COVID-19 vaccination or post-infection recovery to gain access to, entry upon, or service from the business operations in this state.”

What does the law allow? Covered business entities are allowed to institute screening protocols consistent with authoritative or controlling government-issued guidance to protect public health.

Does the ban extend to employees? No. The law prohibits business entities from requiring “patrons or customers” to provide vaccination documentation. Legislators could have added “employees” to the list, but they didn’t.

The law itself is short and relatively straightforward, but like most things COVID, questions remain. For example, how will potential conflicts between Florida’s ban on vaccine passports and Florida’s COVID-19 Liability Protection law be resolved? Time will tell. In the meantime, since we don’t yet know how this law will be interpreted or enforced, those who are (or may be) covered business entities should proceed with caution.

Please contact us for more information about risk management measures and insurance to protect your business against COVID-19-related liability claims.

Florida Condominiums Must Now Provide Notice of Late Assessment to Collect Attorney’s Fees

Florida’s Condominium Act has a new notice requirement. This may come as welcome news to probably no board members, but it involves the collection of past due assessments, so it’s important. Beginning July 1, 2021, condominium associations may not demand or collect attorney’s fees related to a past due assessment without first delivering written notice to the unit owner. The notice must specify the amount owed, must give the unit owner an opportunity to pay without the assessment of attorney fees and must be in substantially the following form.

NOTICE OF LATE ASSESSMENT

RE:  Unit (____) of (name of association)

The following amounts are currently due on your account to (name of association), and must be paid within 30 days of the date of this letter. This letter shall serve as the association’s notice of its intent to proceed with further collection action against your property no sooner than 30 days of the date of this letter, unless you pay in full the amounts set forth below:

                Maintenance due (dates)             $_______

                Late fee, if applicable                   $_______

                Interest through (dates)*             $_______

                TOTAL OUTSTANDING                $_______

                * Interest accrues at the rate of _____ percent per annum.

This notice must be sent by first-class United States mail to the unit owner’s last known address as reflected in the association’s records. If such address is not the unit address, the notice must also be sent by first-class mail to the unit address. Notice is deemed to have been delivered upon mailing. A sworn affidavit attesting to such mailing provided by an association’s board member, officer, agent or licensed community association manager creates a rebuttable presumption of compliance with this new notice requirement.

Setnor Byer Insurance & Risk can help associations and board members identify, manage and insure their unique risks. Please contact our team to discuss the various risk management services we provide our condominium association clients, including our Unit Owner Report Line and Division-Approved New Board Member Education.

This Is What Businesses Need To Know About Florida’s COVID-19 Liability Protection Law

Florida’s COVID-19 liability protection law should help businesses avoid baseless coronavirus-related liability claims. After all, COVID-19 taught us that it’s virtually impossible to avoid a highly-contagious virus in the midst of a global pandemic. Virus-free zones are an illusion. The risk of exposure and infection can be reduced with preventative measures, but not eliminated. Nevertheless, a growing number of businesses are being sued by plaintiffs seeking compensation for personal injuries resulting from alleged exposure to COVID-19. In response, the Florida Legislature enacted a law that provides business establishments heightened legal protections against COVID-related liability.

The law seeks to deter unfounded claims against individuals and business while allowing meritorious cases to proceed. It does this by imposing heightened proof and pleading standards on plaintiffs filing COVID-19-related claims. The statute broadly defines a “COVID-19-related claim” to include civil liability claims against a person or business entity for damages, injury or death that arise from or are related to COVID-19, regardless of how the claim is denominated or presented. (A separate statute generally applies to COVID-19 claims against health care providers.)

Under this new law, COVID-19-related claims must be commenced within one year after the cause of action accrues. If the cause of action accrued prior to March 29, 2021, the plaintiff’s deadline to file a complaint is March 29, 2022. The complaint must be pled with particularity. Specific facts and details, as opposed to general statements and conclusory allegations, are required. The plaintiff must also submit a Florida-licensed physician’s affidavit attesting, within a reasonable degree of medical certainty, that the plaintiff’s COVID-19-related damages, injury or death occurred as a result of the defendant’s acts or omissions. If the plaintiff fails to comply with either of these requirements, the case will be dismissed without prejudice, which means they will be given another opportunity to comply.

Once these requirements are satisfied, the court will determine whether the defendant was making a good faith effort to substantially comply with any authoritative or controlling government-issued health standards or guidance at the time of plaintiff’s alleged exposure to COVID-19. This would include guidance issued by the CDC, the Florida Department of Health, counties, cities, etc. If the court finds a good faith effort, the defendant will not be liable for any act or omission associated with the COVID-19-related claim; otherwise, the plaintiff’s case will be allowed to proceed. But to win, the plaintiff must prove by clear and convincing evidence that the defendant’s conduct was grossly negligent, meaning that the likelihood of injury was known by the defendant to be imminent. Otherwise, the plaintiff will lose and the defendant will not be liable.

The broadest protections afforded by this law are reserved for those making a good faith effort to substantially comply with authoritative COVID-19 guidance. This should encourage businesses to implement reasonable and recommended preventative measures to reduce the risk of exposure and infection. Remember, businesses are not immune from COVID-19-related claims. If a plaintiff can satisfy the statute’s heightened pleading requirement (particularity), elevated burden of proof (clear and convincing evidence) and stricter standard or care (gross negligence), your business may be held liable.

Please contact us for more information about risk management measures and insurance to protect your business against COVID-19-related liability claims.

How Many Storms Are Predicted for the 2021 Atlantic Hurricane Season?

The National Oceanic and Atmospheric Administration released its predictions for the 2021 Atlantic Hurricane season. The good news is that experts do not anticipate the historic level of storm activity seen in 2020. The not-so-good news is that NOAA is nevertheless predicting a season with above-normal storm activity. The Atlantic hurricane season officially begins June 1st and extends through November 30th.

According to NOAA, there is a 60 percent chance the 2021 Atlantic Hurricane Season will have above-normal storm activity. There is a 30 percent chance that storm activity will be near-normal and a 10 percent chance it will be below-normal. NOAA is forecasting:

  • 13 – 20 Named Storms (winds of 39 mph or higher)
  • 6 – 10 Hurricanes (winds of 74 mph or higher)
  • 3 – 5 Major Hurricanes (winds of 111 mph or higher)

Forecasters at Colorado State University are similarly predicting above-normal storm activity in 2021. They estimate a 45 percent chance that at least one major hurricane (Category 3-4-5) will make landfall somewhere along the U.S. east coast (including Florida). The chance of a Gulf Coast landfall (from the Florida Panhandle westward to Brownsville, Texas) is 44 percent.

Note that beginning this year, NOAA is using updated statistics to determine when hurricane seasons are above-, near-, or below-average. Not surprisingly, replacing older data with more recent data caused the season ‘averages’ to up. Before the update, 12 named storms and 6 hurricanes, including 3 major hurricanes, was considered an ‘average’ season. Now, an ‘average’ season will produce 14 named storms and 7 hurricanes, including 3 major hurricanes. In other words, an ‘average’ season will have more named storms this year than last year.

A lot is made of these annual predictions, but it only takes one storm to make it an active hurricane season for you. Start preparing now with Setnor Byer Insurance & Risk’s Hurricane Season 2021 Checklist. Our team of experienced and responsive professionals can help you find affordable options to protect your home and your business in the event of a hurricane.

Please contact us to discuss affordable options for protecting your personal and business property during the 2021 Hurricane Season.

NOAA Updates Hurricane Season ‘Averages’, Highlights Disturbing Trend

This is the time of year when most of us start thinking about the upcoming Atlantic hurricane season, which officially begins June 1st. We anxiously await forecast predictions to find out whether this season’s storm activity will be above-, near-, or below-average. But what’s considered an ‘average’ hurricane season? Hint: This is a trick question.

Once every ten years, the National Oceanic and Atmospheric Administration updates the data set used to determine whether storm activity in any given hurricane season is above- or below-average. As it turns out, the next ten-year period starts this year. Beginning with the 2021 hurricane season, NOAA will use 1991-2020 as the new 30-year period of record to determine ‘average’ storm activity. The previous Atlantic storm averages were based on the period from 1981 to 2010.

By replacing older data with newer data, the updated averages for the Atlantic hurricane season have GONE UP. As you can see, what we considered ‘above-average’ storm activity for the past ten years will be considered ‘average’ for the next ten years.

1981 – 2010                                                    1991 – 2020

12 Named Storms                                          14 Named Storms (+2)

6 Hurricanes                                                   7 Hurricanes (+1)

3 Major Hurricanes                                         3 Major Hurricanes (no change)

The reason it seems like storm activity has been steadily increasing over the years is because storm activity has been steadily increasing over the years. The updated averages reflect a very busy period over the last thirty years. But why? According to NOAA, the increase in the averages may be due, at least in part, to the warming ocean and atmosphere which are influenced by climate change.

Either way, NOAA’s updated hurricane season ‘averages’ highlight a disturbing trend. What was once considered active is now considered average. Hopefully, this new normal will encourage more homeowners and business owners to start preparing for hurricane season sooner than later. Fortunately, Setnor Byer Insurance & Risk has a long history of helping clients prepare before the storm and, more importantly, recover after the storm.

Please contact us about protecting your personal and business property during the 2021 Hurricane Season.