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Frequently Asked Questions

  • What States do you offer insurance in?
    At this time, Peloton Insurance is currently licensed to provide insurance services in California, Nevada, and Texas we are viewing other states and will update here.
  • What is the financial rating of your insurance carriers?
    Peloton works with A Rated Carriers for their experience and financial strength, we do not work with just one carrier for the reason should a carrier drop out of the state, we can place you with someone of the same service, strength and coverage offerings.
  • What lines of insurance do you offer?
    Peloton Insurance Brokers currently offers a broad form of coverage tailored to each specific Industry. And of course we also provide a list of recommended coverages available to your industry. Depending on your business we provide policy services for: Professional Liability (Errors & Omissions), General Liability, Workers Compensation, Business Personal Property Policy, Non Owned and Hired Auto, Cyber​ Liability, Directors & Officers, Crime/Fidelity, ERISA, Travel Coverage (medical and accident), and a wide range of Bonds.
  • How does workers' compensation work?
    Every state administers its own workers’ comp program through a commission or board, meaning each state operates differently. Typically these state agencies ensure businesses comply with workers’ comp laws, collect relevant accident information, and make final decisions on cases, in CA all this info is collected by the Workers Compensation Rating Bureau (WCIRB). When you buy a workers' comp policy, each service you provide is classified into a class code (example, officer workers in CA are classified under code 8810), each code is priced with a base rate (i.e. 8810 $1.00 rate per $100 of payroll, exclusive of any credits). The premium total on a quote is always estimated. Once your policy expires the carrier will perform an audit to confirm actual payroll paid, clarify the class codes are assigned properly. If there are any material differences in the business risk or the workforce, the insurer can collect more premium or provide a credit. Many factors go into calculating your premium (state taxes and surcharges, territorial rating, credits applied), the formula used is usually as follows: Payroll (per $100) X Class Code Base Rate X any Credits or Debits X Experience Modification (if one exists, can be a credit or debit based off of your loss history) = Premium
  • Are the insurance policies auditable?
    Depends, some General and Professional Liability Policies, can be audited (in CA most policies are usually not, except certain risks, usually manufactures, construction and similair businesses). Workers' Compensation, on the other hand is audited, because the policy is based on payroll and different classes within your business, and to ensure that the premium your were charged is a correct and fair premium.
  • Why do they use class codes?
    It is important to have class codes so the carrier can classify you in the correct code and be sure you are being charged the correct premium (some times businesses are misclassified and and result in over payment of premium). It also makes it easier for the carrier to report you work comp info to the bureau, in this case CA, the Workers Compensation Insurance Rating Bureau (WCIRB) where all your premium, loss history, claims data and payroll is kept on file, and used to calculate your Experience Rating Modification if you have one. The bureau can also come to your facility to perform a classification audit to confirm you are classified correctly. To find out more you can visit their site here
  • You mentioned an Experience Rating Modification, what is that?"
    An Experience Modification Rate is a rating factor that is unique to your business and you are assigned your own risk ID. It is used by insurers to compare the claims and payroll history of your business to similar businesses. Once you qualify for an Experience Rating Modification, it is used to adjust your insurance pricing based on actual and expected losses during the period of your coverage. Example: lets say your rate is $5.00 and you have an Experience Modification of 0.70%, you would take the rate of $5.00 and multiply it by the Experience Modification 0.70%, this will give you your new credited rate. CREDIT: Rate $5.00 X .70 = New Rate $3.50, You see any Experience Rating Modification under 1.00% works as a credit, but beware, if you have a high loss ratio, large claims or high frequency of claims an Experience Rating Modification over 1.00% will then act as a debit. Example: lets say your rate is $5.00 and you have an Experience Modification of 1.40%, you would take the rate of $5.00 and multiply it by the Experience Modification 1.40%, this will give you your new debited rate. DEBIT: Rate $5.00 X 1.40 = New Rate $7.00 As you see, having the correct Experience Modification Rate for your business is very important to get accurate pricing. NOTE, businesses that have been in operation for less than one year do not have an Experience Modification Rate. Be sure to ask your Broker or Agent about your Experience Modification to confirm it is correct and to see your rating sheets.
  • What information do I need to provide when applying for Workers' Compensation?
    All our carriers require us to submit a complete application to them, or they will turn us down for a proposal if we do not have all the required info needed to provide you with comparatible pricing. A full submission usually consits of: A completed Acord Work Comp App, (provided and completed by your broker). Loss runs (unless you are a new business), these let the carrier know if you have had any losses in the past or ongoing losses currently, (carriers will not quote without them). Estimated number of employees Full Time and Part Time by Class Code, (i.e. office employees, versus employees who go out in the field are in separate class codes). Total estimated payroll for all employees by class code. Number of owners in the business and their percentage of ownership, and if they are included or excluded from coverage. You may at times be asked to provide job desriptions for your emplyees and the nature of your business. If you use sub-contractors, the carrier will want to verify if they carry their own workers' comp, if not some carriers will charge you an addtional premium against payroll paid to them. Ask your Broker about this. Very important, if you have any employees go out of state or the country, you must let your broker know, the carrier needs to know because workers' comp laws vary state by state. Once your broker has all this information they can then approach their carriers to obtain a comparative proposal.
  • What happens if I don't purchase Workers' Compensation?
    In most states, CA being one of them, it is law to purchase workers' compensation to cover your employees. Failure to do so you would be subject you to penalties, such as fines or stop-work orders. However, criminal penalties are a possibility in many states, and you could face misdemeanor or felony charges and, in some cases, jail time. More importantly, if an employee becomes injured during a time in which you’re not carrying required workers’ comp insurance, you would be responsible for the cost of any medical treatments, lost wages, and other benefits that the insurance would have paid.
  • What's covered by Workers' Compensation?
    Workers’ comp covers the damages and injuries to any employee hired by you who is injured on the job. Medical care and economic loss, such as lost wages, are often covered. It is common for states to have treatment and test guidelines, which outline the max payment that will be covered for a given injury. Many states have a limit on the number of weeks for which benefits can be paid for a temporary disability. As opposed to a permanent disability, employees eventually recover from temporary disabilities. Should an employee die in a work-related accident, their family may be entitled to death benefits.
  • How is a liability policy priced?
    Liability Policies, general and professional are usually quoted based on your gross receipts. There are some occasions when it is quoted by your equipment or employees, that is usaully building contractors and manufactures and those policies are usaully audited also.
  • Can I add endorsements to my policy to enhance coverage?
    Yes, in most cases depending on your carrier, they offer a wide array of addtional coverages that can be added to your liability policy to broaden up coverage. You may be asking why not just provide it all as a package policy? That's because not every business have the same risks, each company varies depending on the services provided, so it would be unfair to pay for a coverage that you may otherwise never need, it benefits you much more if you can add and tailor your coverage. Be sure to talk to your broker and review your areas of risks when tailoring coverage.
  • I'm a medical care business who sends out staff to patients, I had to purchase a General and Professional Liability policy combined and not separate, why is that?"
    You are correct, this is because you have risks under both poliicies from services you provide, where one coverage excludes claims the other picks it up, because of the definitions of the claims. General Liability This coverage protects firms against third-party lawsuits arising from claims of bodily injury, property damage and personal injury claims. In a home environment, trip and fall hazards are often present even more than they would be in a traditional healthcare facility such as a hospital or medical office. This means that visitors and patients alike are exposed to potential injury while home care providers are on the job. Professional Liability In the visiting medical environment, professional liability insurance is also referred to as malpractice or errors and omissions (E&O) insurance. Malpractice/professional liability insurance safeguards the firm and the acts, errors or omissions of their employees against claims of negligence or harm brought by the patient they are tending to (be it professional service or companion care), or brought on by a family member. Even if these claims are unfounded, medical providers and their firms often find themselves facing legal defense costs, especially if they are required to pay a settlement.
  • What is a certificate of liability?
    A Certificate of Liability Insurance acts as proof of coverage. It is a single-page document that lists the different types of liability coverage you have and often includes workers' comp and at times includes endrosements you may have purchased. At times as is with our clients, you may need to provide your certificate to sign client contracts that require a certain amount and type of liability insurance.
  • I was asked for a certificate of insurance for a contract we are signing and they asked to be named as an addtional insured is this okay?
    Yes, it is common for our clients and many other medical service providers to solicit contracts with other providers, i.e. nursing homes, city regional centers, or government agencies, that require you, once the contract is approved, to provide them with a certificate of insurance to show proof of financial responsibility, and may also require you to add them to your policy as an additional insured. This means they are seeking coverage from your insurance in the event of an incident. For example, you go to a nursing home and injure the patient, the family will sue you and the nursing home together for any neglegent acts. Since the nursing home did not contribute to the injury they will seek protection under your policy (this is called risk transfer), therefore making your policy the primary policy and theirs secondary if needed. They may request a primary and non contributory endorsement to accompany the certificate, your broker will advise you and request all documents required.
  • I need a certificate of insurance, how do I get one?"
    Typically upon binding coverage, you will be provided a certificate of insurance to show as proof to anyone asking, this usually serves as proof until you get your policy delivered. Should you receive a request for a certificate with verbiage required by the requestor and they are requesting that the certifcate holder be added, please be sure to have them provide the certificate holder information and the exact verbiage they are requesting in writing from them. Then you can call your broker or email them with your request for a certificate of insurance and email the actual verbiage and holder information and your broker will then forward you a completed and signed certificate. Many times the requestors will ask for an endorsement to be attached to the certificate, your broker will email the carrier for the endorsement and forward to you once received, we usually require a minimum of 48 hours notice for endorsements, since we have to request them from the carrier.
Find Your Insurance Solution

Just let us know what you are looking for, how you would like to be contacted and we will start reviewing your available programs.

Need more information, no problem, just give us a call (949) 359-1380 - (713) 392-6682, a licensed professional will be more than happy to answer all your questions.

Paul Byrne

Dawn Lanclos

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