Protecting Your Assets with a Personal Umbrella Policy

Every day, we're faced with risks in our personal lives. Those who have experienced great career and personal success are unfortunately susceptible to risk factors unique to their lifestyle.

Protecting your personal assets, your family's wellbeing and your future earning potential isn't just possible – there are strategies your personal insurance advisor can put in place to safeguard what's most important to you. It's not just about insuring your home and possessions, it's about securing everything you've built. Let's explore how an personal umbrella policy can be an indispensable ally in your securing your financial present and future.

What is an Umbrella Policy?

An umbrella insurance policy is a type of extra liability insurance designed to go beyond the limits of the your homeowner's, auto, watercraft, or other standard policies. An umbrella policy provides an extra layer of protection beyond the limit of your standard policy.

Anyone is at risk for a lawsuit due to damages to other people's property, or for injuries caused to others in the event of an accident. But high earners and those in the public eye can quickly become targets for litigation. In addition to providing higher liability limits, an umbrella policy can also offer broader coverage – including claims such as libel, vandalism, slander and invasion of privacy.

Who Needs an Umbrella Policy?

An umbrella policy is beneficial for anyone who wants an extra layer of liability protection, but it is particularly valuable for individuals who have significant assets or a lifestyle that puts them at increased risk for lawsuits.

Those with substantial assets, such as luxury real estate, investments, businesses, or savings, should protect themselves against risks that could jeopardize their wealth. Large lawsuits, particularly those involving medical costs or property damage, can easily exceed the limits of standard insurance policies.

Other Groups Who Should Consider an Umbrella Policy

How Does an Umbrella Policy Help?

Given its extensive coverage, an umbrella policy is an essential component of financial planning, offering peace of mind and security against unforeseen legal battles that could arise from seemingly everyday activities.

Imagine this: You're at fault in a major vehicle accident, or someone suffers a severe injury on your property. In an instant, you're facing a lawsuit with claims that spiral well above your standard liability coverage. Without an umbrella policy, you're left exposed, with your assets on the line. This policy steps in where other policies step out.

Consider this as well: you can't put a price on your time, or on the value of alleviating the emotional stress that can come from an unresolved incident. Let your insurance partner handle the complexities of your unique liabilities so you can focus on the pursuits that are most important to you.

Nuclear Verdicts

A nuclear verdict is an award of damages handed down by a jury that is significantly larger than what would be expected, given the facts of the case. Successful individuals can often become a target for these types of awards in the case of a lawsuit over damages.

Imagine a scenario where a high earner, the owner of a large estate and several luxury vehicles, is involved in an automobile accident. The individual’s car, driven by a family member, collides with another vehicle at a significant speed, causing serious injuries to the occupants of the other car.

As the case goes to trial, the plaintiffs (the injured parties) argue that the wealthy individual's status and the lifestyle promoted within his family contributed to a disregard for standard driving safety, directly leading to the accident. The plaintiffs' legal team presents the case in such a way that it highlights the wealth disparity between the parties and suggests that the wealthy individual's assets enabled the careless behavior.

The jury, influenced by the emotional arguments presented and perhaps the visible wealth gap, awards a verdict that far exceeds the actual economic damages and medical costs incurred by the plaintiffs. This award includes punitive damages intended to punish the defendant and serve as a deterrent against similarly reckless behavior by others. Such punitive damages contribute to what is deemed a "nuclear verdict," an exceptionally large judgment that goes beyond compensating the victims and aims to send a broader societal message.

Ready to Elevate Your Liability Protection?

Navigating the world of personal liability insurance can be as complex as it is critical. This is a journey you should not embark on alone. Connect with us for a personal consultation, and let our team of experts craft a policy that seamlessly integrates with your lifestyle while offering an unprecedented level of asset protection.

Reach out today by completing the form below, and let's ensure your tomorrow is secure.

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More Blogs About Private Client Insurance

Best Practices for International Travel Safety

Do I Need to Insure My Wedding Ring?

Best Practices for Purchasing and Protecting Your Fine Art

This content is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. Gregory & Appel is neither a law firm nor a tax advisor; information in all Gregory & Appel materials is meant to be informational and does not constitute legal or tax advice.

Employee Benefits Provisions in the One Big Beautiful Bill Act

On July 3, 2025, Congress passed a reconciliation bill (the “Reconciliation Act”) previously named the One Big Beautiful Bill Act, but subsequently redesignated “An Act to provide for reconciliation pursuant to title II of H. Con. Res. 14.”  The text of the Act can be found here.

The most notable impacts of the Reconciliation Act on health and welfare benefit plans are as follows:

The Expansion of HSA Compatibility

Telehealth and Other Remote Care Services

The Reconciliation Act resurrects and makes permanent the pandemic-related relief previously provided under the CARES Act, which was extended by the CAA 2022 and CAA 2023, and allows HDHPs to provide first-dollar coverage of telehealth and other remote care services prior to satisfying the HDHP deductible (and regardless of whether such services were preventive services) while maintaining HSA eligibility.  This provision is effective retroactively to plan years beginning after December 31, 2024 (i.e., when the last extension of the relief expired).  Employers seeking to take advantage of this relief may amend their plans to provide for no-cost telehealth services.

Primary Care Service Arrangements

The Reconciliation Act has resolved the unsettled question relating to the viability of HSA coverage for individuals with a direct primary care service arrangement (i.e., a contract between an individual and one or more primary care physicians to receive certain medical care in exchange for a fixed periodic fee).  Effective for months beginning after December 31, 2025, a direct primary care service arrangement will not be considered disqualifying coverage (and therefore will not preclude an employee from qualifying for HSA coverage), as long as the fixed periodic fee for the direct primary care service arrangement is no more than $150 per month for the individual, indexed for inflation (or $300 per month if the arrangement covers more than one individual, indexed for inflation).

In addition to satisfying this dollar limit, the direct primary care service arrangement must not include coverage for: procedures that require the use of general anesthesia, prescription drugs (other than vaccines), or laboratory services not typically administered in an ambulatory primary care setting.  Finally, the Reconciliation Act confirms that the fixed periodic fees payable for the direct primary care service arrangement are qualified medical expenses that may be paid on a tax-free basis from the individual’s HSA.

Bronze Level and Catastrophic Health Plans

In order for an individual to be HSA-eligible, the individual must be covered under a qualified high deductible health plan (HDHP).  (Note: The individual also must have no other disqualifying health coverage, must not be enrolled in Medicare, and must not be able to be claimed as a dependent on someone else’s current-year tax return.)

The Reconciliation Act provides that, effective for months beginning after December 31, 2025, all bronze and catastrophic level plans available on the individual market through the Exchange will be treated as HDHPs – and will, therefore, be HSA-compatible – even if those plans do not otherwise meet the standard HDHP requirements (e.g., by providing pre-deductible coverage of non-preventive services, failing to conform to out-of-pocket maximums, etc.).

Increase in DCAP Limit

The Reconciliation Act increases the amount that may be excluded from an employee’s taxable income for benefits paid under a dependent care assistance program (“DCAP”).  For plan years beginning on or after January 1, 2026, the excludable amount will increase from $5,000 for unmarried employees and married employees filing a joint tax return ($2,500 for married employees filing separately) to $7,500 for unmarried employees and married employees filing a joint tax return ($3,750 for married employees filing separately).  Like the current DCAP limit, the new limit is not indexed for inflation.  Employers desiring to offer this newly available benefit increase in 2026 should work with their benefits advisors to amend their cafeteria plans and revise their benefit summaries and open enrollment materials, as necessary. 

Student Loan Repayment Assistance

The Reconciliation Act extends and makes permanent the pandemic-related relief previously provided under the CARES Act and CAA 2021 that was otherwise set to expire at the end of 2025.  These provisions allow an employer to pay for or reimburse up to $5,250 of an employee’s student loans on a tax-free basis under a Code Section 127 educational assistance program.  Such a program must be maintained pursuant to a separate written plan document, and the employer must provide reasonable notification of the availability and terms of the program to all eligible employees.  The Reconciliation Act also indexes the $5,250 limit for inflation starting after 2026.

About the Author. This alert was prepared for Gregory & Appel Insurance by Barrow Lent LLP, a national law firm with recognized experts on the Affordable Care Act. Contact Stacy Barrow or Nicole Quinn-Gato at sbarrow@marbarlaw.com or nquinngato@marbarlaw.com.

The information provided in this alert is not, is not intended to be, and shall not be construed to be, either the provision of legal advice or an offer to provide legal services, nor does it necessarily reflect the opinions of the agency, our lawyers, or our clients. This is not legal advice. No client-lawyer relationship between you and our lawyers is or may be created by your use of this information. Rather, the content is intended as a general overview of the subject matter covered. This agency and Barrow Lent LLP are not obligated to provide updates on the information presented herein. Those reading this alert are encouraged to seek direct counsel on legal questions. © 2025 Barrow Lent LLP. All Rights Reserved.

Best Practices for International Travel Safety

As the chill of winter gives way to bright sunshine and the sound of birds chirping, it's possible you're one of the millions of Americans planning to travel internationally in 2025. Nearly 2 in every 5 Americans planned international travel last year, with the majority of these trips occurring between the months of May and September.

Spending a week immersed in local sights, sounds and cuisine may sound enticing, but unfortunately, international travel also comes with some unseen risks. With an always-changing socio-political landscape and new risks emerging each day, it's important to be aware of potential hazards when planning a trip.

If you're a high-net-worth individual, you may be a prime target if you let your guard down. But don't fear – we want to help you prepare your next international excursion with these important safety tips.

International Travel Safety is a Growing Priority

According to the 2023 Virtuoso Luxe Report, when luxury travelers were asked to prioritize their considerations when planning international travel, safety and security ranked second only to exclusive experiences when booking luxury international travel, with 78% of respondents listing it as extremely important.

The Resonance Consultancy’s 2023 U.S. Luxury Travel report agreed with these findings, saying that security concerns “significantly influence” destination selection for 76% of high-net-worth American travelers, with many avoiding locations due to apparent safety concerns.

Partner with a reputable travel agency known for catering to the needs of high-end clients. Such agencies can handle details discreetly and ensure your accommodations and transport align with enhanced security standards.

Some travelers even employ security consultants before selecting their travel destination, who can provide professional risk assessments and help plan safe travel. Working with a specialist ahead of time can ensure your personal safety from pre-travel through your return, and can identify tactics unique to your specific itinerary.

Research Your Destination

You don't need to be fluent in the local language to have a safe, fun and rewarding experience abroad. However, it's a great practice to at least learn the most important common words and phrases: think hello, goodbye, yes, no, help, police, bathroom.

This isn't just for practical reasons – it's also to help you fit in. Former CIA officer Mark Laine keeps his advice simple: "Don't act like an arrogant jerk." It sounds simple, but one of the biggest aspects of remaining safe abroad is simply blending in. Don't give anyone a reason to target you by calling attention to yourself.

Even more important: familiarize yourself with local culture, customs and regulations. We've all heard – or even witnessed – the American who doesn't even try to blend in with the local culture. Some common, everyday gestures that we take for granted here in the States may be deemed offensive in certain parts of the world. If you're already drunk and belligerent, you're not likely to be given the benefit of the doubt and may have just labeled yourself as a target.

Other important tips:

Don't bring items that are prohibited in your chosen destination: some medications, including contraceptives, may be banned in a certain jurisdiction. Religious items, certain literature, even alcohol – these items could put you at risk, depending on where you're traveling.

Visit the U.S. State Department website for current travel advisories, restrictions and background information. Research threats and tactics used by the local criminal population, which may vary from place to place. Doing some lead work ahead of time can increase your awareness if you're being targeted in what may otherwise seem like an innocuous interaction.

Don't assume you can trust the locals: even police and housekeeping. You don't have to be paranoid, but be smart about the information you choose to share with others, the access you give them, and the help you choose to receive. Trust your instincts – if something feels off, it probably is.

Here are some helpful resources that can help you research potential threats in your intended destination ahead of time:

Be Discreet

Don't bring your expensive jewelry or watch, don't flaunt your cash and consider dressing in a way that makes you look like you belong.

Another tip: stay off social media. You may want to share records of your travels, but that can wait until you return home. Don't broadcast to your connections that you're out of the country, no good can come from that, and you can't always control who sees your posts – or who you can fully trust with that information.

At the Hotel

Another expert, Tracy Walder – a former CIA officer and FBI special agent – recommends avoiding private rented properties because you’re trusting a person you don’t know – and you have less control over the overall environment when renting a house or apartment, versus a hotel or resort property.

Book hotels or rentals that provide advanced security measures such as 24/7 surveillance, guards and secure, gated access. However, even with these considerations in place, you can never be too careful.

Walder's advice: when staying at a hotel, request a room between the third and sixth floors. This ensures you're off the ground level, which is more easily accessible from inside and out. But it keeps you low enough that it's easier to escape the property in a hurry, and is accessible from the outside in case of fire evacuation.

Use the deadbolt, the security lock, and consider bringing your own portable door lock and doorstop.

Don’t open your door for anyone you don’t recognize, even if they look like a hotel employee. Always call the front desk to verify they’re actually part of the service staff.

Have an escape plan: know how many doors are between your room and the nearest stairwell. You need to be able to get there quickly when disoriented, in the dark, or if the corridor is filled with smoke.

Avoid the stairs unless absolutely necessary. Most crimes occur in isolated, secluded, low-visibility spaces.

Out & About

If you're traveling with children, snap a photo of each of them before leaving the hotel each day. That way, if you do get separated, you have a record not only of what they look like, but exactly what they are wearing that day.

Hire professional security transport services, especially in high-risk areas. These services include vetted drivers who are familiar with the area and can navigate away from unsafe situations. If you do have to take a cab, negotiate the fare before getting in the vehicle – and always ensure you're getting in a certified, regulated, licensed taxi. Informal taxis or minibuses can be extremely dangerous.

Before departing one destination for another, discuss all logistics with your family or travel party. Have a plan for regrouping if you get separated. And don't bring anything with you that isn't necessary – there's no reason to travel with extra cash on hand, you're only making yourself a bigger target.

One more expert tip: Keep a throwaway wallet in your back pocket with some light cash. That way, if you do get robbed, you have something to give away that doesn't contain all your money, your ID or other important documents.

Health & Medical Precautions

Consider investing in comprehensive travel insurance that covers international emergencies. Speak to your advisor about your options, they can help you identify a trusted partner and establish clearly understood terms and conditions. Work with your travel agency to identify reputable, accredited hospitals around your area of stay in the event of a medical emergency.

Technology

Work with your phone carrier ahead of time to ensure you’ll have adequate, consistent coverage, the ability to access local networks and a data plan. This ensures you can communicate with your travel party, local authorities if needed, and that you can access GPS/maps on your phone.

Store important contact information into your phone – hotel and rental car phone numbers, safe taxi phone numbers, the U.S. embassy phone number, and any other numbers you may need to access. It’s a good practice to also write these numbers down in case your phone is lost or stolen.

Maintain strict privacy protocols, including use of a secure VPN. Avoid connecting to unsecured public wifi networks, and use RFID-blocking technology to prevent unauthorized access to your phone, credit cards and even your passport.

Final Thoughts

Traveling doesn’t just come with perks of comfort and exclusivity; it also demands a high level of responsibility and precaution.

By implementing these safety measures, you can significantly mitigate risks and ensure that your international adventures aren't just memorable – they're also safe and secure. Always stay informed, prepared, and aware of your surroundings.

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Comparing Fully-Insured vs. Self-Funded Benefits Plans

Group medical benefit plans typically fall into one of two categories: self-funded or fully insured. The choice of one over the other should not be made arbitrarily. Each type carries its own set of administrative rules and legal constraints, and selecting the right funding structure for your organization requires care and planning.

What is Self-Funding?

Under an insured health benefit plan, an insurance company assumes the financial and legal risk of loss in exchange for a fixed premium paid to the carrier by the employer. Employers with self-funded (or self-insured) plans retain the risk of paying for their employees’ health care themselves, either from a trust or directly from corporate funds.

Most employers with more than 200 employees self-insure some or all of their employee health benefits. Many employers with fewer than 200 employees also self-fund, but these employers require greater stop-loss insurance protection than larger employers (stop-loss insurance is discussed in greater detail later). As a general rule, employers with fewer than 100 employees fully insure their group medical benefits.

The risk assumed in either situation is the chance that employees will become ill and require costly treatment. When employees have few claims and few expensive illnesses, the self-funded employer realizes an immediate positive impact on overall health care costs. Conversely, if the employee group has unfavorable claims experience, a self-funded employer would incur an immediate expense beyond what may have been expected. Insured plans have a more predictable cost for the year; however, large employee claims costs from one year can affect future premium amounts.

ERISA vs. State Regulation

Self-funded health plans are governed by the Employee Retirement Income Security Act of 1974 (ERISA). ERISA preempts state insurance regulations, meaning that employers with self-funded medical benefits are not required to comply with state insurance laws that apply to medical benefit plan administrators. On the other hand, insured plans must comply with some of ERISA’s requirements, but are primarily governed by the state where covered employees reside.

The distinction between state and ERISA regulations is important when determining if self-funding is right for your organization. Multi-state companies with insured health plans must comply with the regulations of each state in which they have plans and covered employees. Multi-state self-funded plans need only comply with ERISA.

Premiums vs. Unbundled Fees

The risk an insurance company takes with an insured plan can be translated into a dollar amount for the employer. That dollar amount is the premium an employer pays each month for the insured group medical benefits. The premium amount includes the following:

Employers who self-fund their medical benefits do not pay the premium tax or insurance company profit. They do, however, assume the costs of paying for claims and administrative functions. Typically, employers with self-funded health plans will outsource plan administration to a third-party administrator (TPA) or insurance company who charges the employer a fee for performing administrative services.

Stop-Loss Insurance

Employers with self-funded health plans typically carry stop-loss insurance to reduce the risk associated with large individual claims or high claims from the entire plan. The employer self-insures up to the stop-loss attachment point, which is the dollar amount above which the stop-loss carrier will reimburse claims. Stop-loss insurance comes in two forms: individual/specific stop-loss and aggregate stop-loss.

Individual/Specific Stop-Loss Insurance

This protects a self-funded employer against large individual health care claims. Essentially, it limits the amount that the employer must pay for each individual. For example, an employer with a specific stop-loss attachment point of $25,000 would be responsible for the first $25,000 in claims for each individual plan participant each year. The stop-loss carrier would pay any claims exceeding $25,000 in a calendar year for a particular participant.

Aggregate Stop-Loss Insurance

This protects the employer against high total claims for the health care plan. For example, aggregate stop-loss insurance with an attachment point of $500,000 would begin paying for claims after the plan’s overall claims exceeded $500,000. Any amounts paid by a specific stop-loss policy for the same plan would not count toward the aggregate attachment point.

Nondiscrimination Rules

Nondiscrimination rules require employers to offer employee benefits that do not favor certain employees. Employers with insured plans do not have nondiscrimination rules for group medical benefits, provided they follow the policy requirements of the sponsoring insurance carrier. However, employers with self-funded plans are required to comply with nondiscrimination rules. Generally these requirements are not difficult to meet, but failure to comply can result in some employees having their benefits treated as taxable income.

Employers with either type of group medical plan are required to comply with certain reporting and disclosure requirements, usually by providing tax and other pertinent documents to the United States Department of Labor or to their particular state.

Typically, self-funded plans are required to provide copies of plan communications such as summary plan descriptions (SPDs) and summary of material modifications if the plan language changes.

Employers with insured plans that require employee contributions must file certain financial documents with the IRS. IRS filings are also required of self-funded plans, including Form 5500 and any accompanying documents.

This article was produced in a partnership with Zywave.

This content is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. Gregory & Appel is neither a law firm nor a tax advisor; information in all Gregory & Appel materials is meant to be informational and does not constitute legal or tax advice.

Do I Need to Insure My Wedding Ring?

What items in your home are most valuable to you?

Whether we're talking about pure sentimental value or the financial value of a possession, most people would consider their personal jewelry near the top of the list. Whether it's a full collection or just an engagement ring, you may not realize it's not automatically covered under a basic homeowner's policy.

According to a 2023 survey by The Knot, the average engagement ring in the United States is valued at $5,500 – with, of course, many pieces well exceeding that value. And, of course, most people would say there are few possessions more precious to them than their wedding ring!

Many homeowner's policies have a specific sub-limit for valuable personal property, including jewelry, art, collectibles and certain electronics. That means these items are only covered up to a certain dollar amount, which may only help the owner recover a small percentage of the item's value in the event of a loss.

So how do you ensure your valuables are adequately covered by your insurance?

What is jewelry insurance?

Jewelry insurance is coverage specifically designed to protect against the loss, theft or damage of jewelry. When it comes to adding this coverage, you have some options. It can be scheduled personal property, meaning it's an add-on to an existing homeowner's or renter's insurance policy where specific items are listed along with their values. It can also be purchased as standalone jewelry insurance, a separate policy exclusively set to cover jewelry.

How do I know if I need jewelry insurance?

Generally, if you own valuable jewelry such as an engagement ring or family heirloom pieces, it may be wise to consider a specialized jewelry insurance policy due to the limited coverage provided by standard property insurance policies.

It depends on your coverage, but most homeowner's policies will only pay out a small percentage of the total value for lost jewelry. Additionally, these policies only cover specific types of loss, like theft.

Other Key Factors

Value of Your Jewelry

If a single piece of jewelry is worth a significant amount relative to your overall belongings, it's likely worth insuring. 

Homeowner's Policy Limitations

Check your existing insurance policy to see if the jewelry coverage limit is sufficient for your valuable pieces. 

Sentimental Value

If a piece holds significant sentimental value, even if it's not extremely expensive, insurance can provide peace of mind. 

Risk of Loss

Consider your lifestyle and potential risks for losing jewelry, like active hobbies or frequent travel. 

How will it impact my premiums?

Depending on the amount you need to cover, these policies are also reasonably affordable. Rates vary by insurance company and by location, but in the Indianapolis area (where Gregory & Appel has been proudly located for over 140 years!) we've seen annual premiums priced around 1-2% of an item's total value. So, for instance, a $10,000 ring may be insurable at a price between $100-200 per year in the current market.

What type of coverage should I consider?

Scheduled personal property insurance would add coverage for specific, individual high-value items or collections beyond the standard policy coverage. In many cases, you'll need to take the jewelry in question to be appraised – allowing both the insurer and insured to come to an agreement on its exact value. This schedule, a list of the covered assets, is then added to your homeowner's policy.

Each item is listed at its agreed-upon value, which may require you to provide receipts or have the items appraised to confirm their value.

Standalone jewelry insurance is separate from any existing homeowner's, renter's, or condo policy, so it can sometimes include scenarios not typically covered by homeowner's insurance. One advantage to a standalone policy is that they can offer more specialized options, tailored to the needs of jewelry owners, and may be more flexible in terms of repair or replacement options.

A standalone policy may also allow for higher limits, or add specialized coverage. It may also expand the conditions of the coverage to include accidental loss – like losing your ring at the beach – or mysterious disappearance (when you can't determine how the item was lost).

Advantages

As mentioned above, there are several notable advantages to insuring your jewelry. These include broader coverage to protect your jewelry in the case of accidental loss or mysterious disappearance, as well as agreed value meaning you'll know the exact payout in the case your items are lost or stolen.

An additional advantage is that the deductible for any listed jewelry item is $0. On a homeowner's policy, you're subject to a deductible, which would lower your payout amount.

For example: if you have a $1,000 deductible on your policy and your $1,500 wedding ring is stolen, you'll be on the hook for the first $1,000 and will only receive $500 to recuperate your loss.

What are my next steps?

If you're considering insuring your jewelry, the first thing to do would be to speak with your insurance advisor. If you're not sure who to talk to, let us know and we'd be happy to help.

If you have other valuables, you may also consider discussing coverage for additional property, such as fine art. Be sure to have a detailed discussion with your advisor to make sure your needs are being addressed.

This article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.  Gregory & Appel is neither a law firm nor a tax advisor; information in all Gregory & Appel materials is meant to be informational and does not constitute legal or tax advice.

Gag Clause Attestation Deadline: December 31, 2024

Under the transparency provisions of the Consolidated Appropriations Act, 2021 (CAA), health plans and issuers must annually submit an attestation of compliance with the gag clause prohibition to the Departments of Labor, Health and Human Services and the Treasury (Departments). This is due by December 31, 2024.

What is the Consolidated Appropriations Act, 2021?

The CAA, 2021 was a House Resolution that provided $2.3 trillion in spending, including $900 million in stimulus relief for the COVID-19 pandemic.

The CAA prohibits health plans and insurance issuers from entering into contracts with healthcare providers, third-party administrators (TPAs) or other service providers that contain gag clauses. The first attestation was due December 31, 2023. The attestation due by year-end covers the period since the last attestation.

Highlights

What is a Gag Clause?

A gag clause is any contractual restriction preventing a health plan or issuer from providing, accessing or sharing certain information, such as provider price/quality and de-identified claims.

In the case of the CAA, group plans and issuers are prohibited from entering into agreements with any partners who restricts them from:

  • Providing provider-specific cost or quality of care information or data to referring providers, the plan sponsor, participants, beneficiaries, or enrollees; or
  • Electronically accessing (de-identified) claims information for each participant, beneficiary or enrollee upon request, consistent with existing privacy regulations*
  • Sharing information described in either of the above items, or directing such information to be shared with a business associate, consistent with applicable privacy rules

* = pursuant to HIPAA, GINA and ADA

Plans and issuers must ensure their agreements with healthcare providers, networks or associations of providers, TPAs or other service providers offering access to a network of providers don't contain provisions that violate the CAA's prohibition of gag clauses.

Covered Health Plans

The attestation requirement applies to fully insured and self-insured group health plans, including ERISA plans, nonfederal governmental plans and church plans. Additionally, this requirement applies regardless of whether a plan is considered “grandfathered” under the ACA. However, plans that provide only excepted benefits and account-based plans, such as health reimbursement arrangements (HRAs), are not required to submit an attestation.

Taking Action

Employers should review all contracts and agreements with service providers to ensure they do not contain prohibited gag clauses.

Employers with fully-insured plans do not need to provide attestation if their plan's issuer provides the attestation. Self-insured employers can enter into agreements with their TPAs to provide the attestation, but the legal responsibility still remains with the health plan.


Legal and Compliance Roundup

This document is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.  Gregory & Appel is neither a law firm nor a tax advisor; information in all Gregory & Appel materials is meant to be informational and does not constitute legal or tax advice.

This content was produced through partnership with Zywave. It is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal
counsel for legal advice ©2024 Zywave, Inc. All rights reserved.

Best Practices For Reporting Workplace Injuries

When a workplace accident results in an injury, it's crucial to ask quickly. The main priority is ensuring the safety and care for the injured individuals. Steps must also be taken to protect additional people from danger, and to mitigate further risk and cost (money, time and resources) for the organization.

Consider implementing the following procedures to help protect what matters most – your organization and your people.

Here are some of the important factors to consider:

Immediate Care

The most important thing is to ensure the injured employee receives care immediately. Depending on the injury, this could mean on-site first aid, arranging for quick transport to the hospital or calling emergency medical services.

Report the Incident

Incident reporting procedures should state clearly that the employee is to self-report their injury when it occurs, unless their injury is so severe that they cannot make the report. In the event the employee cannot report their injury, a manager, supervisor or designated safety officer should accurately and officially record and report the injury.

For severe injuries involving in-patient hospitalization, amputation or loss of an eye, OSHA must be notified by management within 24 hours. For fatalities, OSHA must be notified within 8 hours.

To make a report:

*Note some states are not covered by federal OSHA, and operate their own occupational safety and health programs for private sector and/or local government workers. Learn more about the reporting requirements state-by-state by clicking here.

Be prepared to supply the following information:

Report Hotline

Establish a hotline for reporting employee injuries outside normal business hours. Provide the appropriate contact information to employees – and post it somewhere in the workplace. Require the employee to report after-hours injuries to Human Resources, safety office and/or their supervisor.

Medical Provider

Establish, post and direct injured workers to an occupational medical provider who is open after hours. Avoid the emergency room unless it is a severe injury.

Timely Investigation

Investigate the accident scene and interview witnesses as soon as possible after the report. The physical environment can change, and memories can fade over time, so it’s important to investigate the incident the day it occurred or as soon as possible. A thorough and detailed report is vital. Complete an accident report form detailing the event, the injury and any treatment given. Include photographs and witness statements if possible.

Video Surveillance

Install video cameras in the workplace. Depending on the number and location of cameras, the reported injury could be recorded. This information is critical to the investigation process. Any record or documentation helps.

Employee Training

Train employees that state workers’ compensation and federal OSHA laws require timely reporting, and that failure to report injuries when they occur could jeopardize their benefits. There are strict deadlines for reporting in many jurisdictions.

Supervisor/Manager Training

Train supervisors and managers about workers' compensation, OSHA, how it impacts the employee – and the company's bottom line. Not only should they understand reporting procedures and policies, they should be contributing to an overall culture of safety where processes are in place to protect employees and avoid workplace incidents.

Severe Injuries & Fatalities

If you are a Gregory & Appel client, contact our emergency claims service line by calling our 24-hour emergency claims line at 1.800.968.7491 and following the voice prompts. You will be connected with a Gregory & Appel claims advocate who will assist you.

File Workers' Compensation Claims, If Applicable

If the injury qualifies for workers' compensation insurance, assist the employee in filing a claim. This may include providing necessary documentation and details about the injury and the circumstances surrounding it. If you have followed all the steps mentioned above, you should already be able to provide important details due to your thorough and accurate documentation of the incident.

Did You Know?

Gregory & Appel Insurance provides workers' compensation and OSHA 101 reporting courses for managers and supervisors.

We also host two-day OSHA 10-hour general industry training to help certify your employees and provide authorized training on workplace safety.

Contact us for more information.

This document is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.  Gregory & Appel is neither a law firm nor a tax advisor; information in all Gregory & Appel materials is meant to be informational and does not constitute legal or tax advice.

Is the Destination Property Insurance Market Softening?

An analysis of 2025 early indicators, affirmed what industry experts have been signaling: the commercial property insurance market is indeed softening.

Two compelling examples are from Florida, a state that has been hit the hardest in recent years, as property carriers have been pulling out of the state, while others have been reducing available capacity and/or charging exorbitantly higher premiums:

We have seen that this trend is not isolated – similar patterns are emerging across the industry ­– indicating a broader market movement. Evidence of this can be seen in a recent win in Nevada, where a large, multi-state property management company renewed its insurance policy flat after two years of rate increases.

This trend comes as a welcomed sign of relief for all after experiencing rate increases for the past four to five years, specifically, absorbing brutal three-digit rate increases, respectively, in the last two years.

Key Factors Influencing the Market

Several pivotal factors are driving this shift towards a softer market, each playing a critical role in reshaping the landscape of commercial property insurance:

  1. Entry of new carriers: The introduction of new insurance carriers into the market injects fresh competition, compelling established players to reassess their pricing strategies to retain and attract clients.
  2. Increased capacity: A surge in underwriting capacity, fueled by both existing insurers and newcomers, allows for more aggressive pricing and policy terms, benefiting policyholders.
  3. Changing carrier appetite: Insurers are diversifying their portfolios, showing an increased willingness to cover different types of risks, including previously underinsured segments.
  4. Organized reinsurance renewal season: This year’s reinsurance renewals have been notably more structured, contributing to retention stability and rate leveling. This is the result of enhanced profitability among reinsurers, as well as an uptick in their capital positions, enabling more competitive reinsurance rates for primary carriers.
  5. Alignment of property valuations: Current valuations are increasingly reflecting today’s construction costs, aiding in the accurate pricing of risks and contributing to market equilibrium.

Taking Advantage of Trends

These key factors are having an impact on the insurance industry, which can have a significant impact on your risk management program. In the video below, see how Gregory & Appel's expert risk advisors are uniquely suited to represent you in the marketplace. Their creativity in creating coverages to help you manage risks is vital – and they can help secure the right coverage for your unique needs.

Who Stands to Benefit?

In this evolving market, certain properties are poised to see better-than-normal returns:

  1. Non-catastrophe (Non-CAT) properties: Locations outside high-risk zones for natural disasters can expect more favorable terms.
  2. Higher-rated construction: Properties built with fire-resistant materials as opposed to frame construction are deemed a lower risk, attracting better rates.
  3. Low-loss properties: Buildings with minimal or no claims history are likely to be rewarded with lower premiums.
  4. Corrected valuation properties: Those that have addressed and overcame previous undervaluation issues stand to benefit from more accurate and potentially favorable insurance terms.
  5. Industry class considerations: The nature of your business and the associated risk profile could also influence the insurance terms and rates you receive.

Trends to Watch

As the market continues to adjust, timeshare HOAs and property managers should keep a close eye on several key areas:

Ongoing Reinsurance Renewals

The outcomes of recent and upcoming treaty renewals will be critical in determining if the early trend towards a softer market holds. As these are renewed or renegotiated, we'll see trends in the availability of reinsurance and pricing adjustments.

What is Reinsurance?

In simple terms, reinsurance is a way for insurance companies to protect themselves from large financial losses. When an insurance company sells policies to individuals or businesses, it takes on the risk of having to pay out claims if certain events occur, such as accidents, disasters, or other covered incidents.

Reinsurance is like insurance for insurance companies. Instead of shouldering all the risk themselves, insurance companies can transfer some of that risk to other companies known as reinsurers.

In exchange for a premium, the reinsurer agrees to share in the financial responsibility of paying claims. This helps the original insurance company manage its exposure to large losses and ensures that it has the financial capacity to fulfill its obligations to policyholders.

A Look Inside the Reinsurance Market

Positive trends kept pace on 4/1 as foreign markets mimicked the January 1 reinsurance renewals in the U.S. Japan saw pricing flat to slightly down, while South Korea, China and India saw increased competition for catastrophe business.

What It Means

Optimism is growing heading into midyear that reinsurers are exhibiting a returning appetite for property catastrophe business, which signals an increasing return to a softer market.

Catastrophic Events

One reason why commercial property insurance premiums are so high for destination properties is the high occurrence of natural disasters and catastrophic weather events. Despite 2023 witnessing 28 catastrophic events with losses exceeding $1 billion each, only one of these events was a hurricane.

The 28 billion-dollar disaster events events from 2023 include:

billion dollar disaster weather map 2023
In this map, you can see the distribution of the 28 billion-dollar weather events in 2023. Source: NOAA/NCEI

Severe Convective Storms

These storms, characterized by tornadoes, hail and severe wind, contributed to over $50 billion in losses in 2023. Their frequency and impact remain a significant concern.

Wildfires and Other Risks

The scale of wildfire damage, alongside potential political and socio-economic shifts, will influence the market’s trajectory.

Planning Takeaways

As the commercial property insurance market softens, it presents both opportunities and challenges. By understanding the drivers behind this trend and staying alert to ongoing changes, insureds and insurance professionals can navigate the market more effectively, securing favorable terms while adequately protecting an insured’s assets.

As 2024 unfolds, adapting to these dynamics will be key to leveraging the softening market to your advantage.

Resorts Website CTAs

Learn More About Risk Management for Destination Properties

Don’t miss the other entries in this series:

Why Are Insurance Premiums for Timeshares So High?

How Timeshare Associations Can Navigate Increasing Premiums

How HOAs and Management Companies Can Optimize the Insurance Bidding Process

Why Your HOA Board Needs Strategic Partnerships

This content is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. Gregory & Appel is neither a law firm nor a tax advisor; information in all Gregory & Appel materials is meant to be informational and does not constitute legal or tax advice.

This content originally appeared in TimeSharing Today in May 2024.

How Timeshare Associations Can Navigate Rising Insurance Premiums

Timeshare associations and property managers have already noticed the big changes sweeping through what was once a fairly predictable and stable insurance market. Across the country, resorts are plagued by skyrocketing premiums. 

Understanding the Transformation 

The disruptions affecting timeshare associations are being met with an intense overhaul of risk assessment models, an increased demand for comprehensive property inspections and a greater focus and emphasis on detailed underwriting. 

Many changes came unannounced to timeshare association board members, and property managers and have upended longstanding perceptions and practices within the insurance procurement process. 

Navigating New Challenges 

This market shift has implications reaching far beyond numbers on a spreadsheet; it’s having a real impact on communities and business operations.

One striking example is the withdrawal of key coastal insurance programs from states like Florida, which has historically been reliant on such coverage. Seeing coastal programs start to exclude states like Florida, a state that boasts 8,436 coastal miles and is home to 1.5 million condos, and you can see the severity of what is taking place. 

With reduced competition and reinsurance obstacles, remaining insurers have recalibrated their pricing strategies, often leading to substantial premium increases. In California, property insurance premiums in high-risk areas are up 1000% for some, forcing people to rethink how they can afford their insurance. 

Addressing a New Normal 

To fully grasp these changes, it’s important to recognize some of the concerns related to the current state of property insurance. The initial signs of the hardening market were showing in 2022, with a notable increase in claim frequency signaling a shift to more stringent conditions. Fast forward to 2023 – rate hikes reminiscent of a decade’s worth of increases condensed into a few months. 

The American Property Casualty Insurance Association corroborated these observations when highlighting a significant jump in net underwriting losses from $3.8 billion in 2021 to $26.5 billion in 2022. 

This paints a clear picture – insurance companies spent more than they made from premiums.

This isn’t limited to a certain geographical area; it extends coast-to-coast in both rural communities and large cities alike. In 2023, there were 28 separate natural events causing at least $1 billion in losses. 

According to the National Centers for Environmental Information, this included 1 drought, 4 floods, 17 severe storms, 2 tropical storms, 2 tornado events, 1 wildfire and 1 winter storm. These events unfolded across 33 states, causing an estimated $92.8 billion in losses for the year. 

Crafting a Strategy

Effectively navigating this insurance environment requires a deep understanding of individual properties. Things like exemplary housekeeping, good maintenance, advanced security measures and recent upgrades are key. Making sure property details are up to date with an accurate Statement of Values is crucial for getting accurate insurance quotes. 

While insurers are often willing to consider new business submissions well before renewal dates, decision-making often remains prolonged, and updates can be expected even at the last possible moment. Initiating the process well in advance of any renewal deadlines is critical. There is no such thing as too early, even if immediately following a recent policy renewal.

Finding the Right Guide

In these challenging times, selecting of an experienced and knowledgeable insurance broker could not be more important. You need a partner that works as an extension of your own team, committed to finding the best solutions for you, who can help you optimize your risk management program.

It’s not just about getting a bunch of quotes; it’s about finding someone who really knows the ins and outs of this complex market and can build the best program. You need a partner who works as an extension of your own team, committed to finding the best solutions for you. 

In this video, see how our advisors who specialize in protecting destination properties like resorts, timeshares and vacation rentals leverage their experience to provide key wins for their clients.

A Pledge to Guide and Support

It takes an unwavering commitment of insurance professionals to serve as trusted advisors and advocates – to understand the intricacies of each resort’s insurance requirements and work tirelessly to achieve the most advantageous outcomes for each property. 

When existing approaches fall short, generating more questions than answers, expert guidance is needed. The objective is to take control and formulate a winning strategy, making renewals less puzzling and more empowering. 

2024_RGtPR

Learn More About Risk Management for Destination Properties

Don’t miss the other entries in this series:

Why Are Insurance Premiums for Timeshares So High?

How HOAs and Management Companies Can Optimize the Insurance Bidding Process

Is the Timeshare Insurance Market Softening?

Why Your HOA Board Needs Strategic Partnerships

This content is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. Gregory & Appel is neither a law firm nor a tax advisor; information in all Gregory & Appel materials is meant to be informational and does not constitute legal or tax advice.

This content originally appeared in TimeSharing Today in January 2024.

How HOAs and Property Management Companies Can Optimize the Insurance Bidding Process

In the current insurance market, many HOAs and management companies are anxious or even fearful about their upcoming insurance renewal – and that’s justified, considering the significant premium increases across the property insurance market over the past few years.

With a little preparation, however, it is possible to minimize pain at your next renewal, or even to reduce your premiums and improve your coverage terms. But to do that, you must understand the current insurance market and the system that agents and carriers must deal with to secure quotes.

Challenges in the Insurance Marketplace

Property insurance has seen the most dramatic increase in premiums and the imposition of restrictive coverage terms, not to mention the withdrawal of carriers from certain geographic areas, along with the unwillingness of some carriers to offer coverage to timeshare resorts.

Gathering Quotes for Your Vacation Property

In the past, it was assumed that involving two, three, or even four agents on your behalf to gather insurance quotes would secure the best results. That approach is actually the least effective way to manage your renewal in today’s market, and here's why.

Resort properties in coastal areas, or areas susceptible to flood, earthquake, or wildfires, are considered undesirable by most carriers, who have limited capacity for risks of this type. Just a few years ago, a single carrier might have been willing to offer $20 million or more in property coverage limit, but today it requires the stacking, or towering, of multiple carriers to build that kind of limit. When multiple agents get involved, the limited number of carriers becomes so diluted that it’s difficult for any agent to build a complete and competitive program.

The most effective approach is to select one agent and give them full access to the market. That way, they'll be able to arrange carriers in their most competitive position to build the best available program. Much like a jigsaw puzzle, the proper placement of carriers is critical to a comprehensive and competitive program.

Choosing the Right Agent

The agent can be selected through an RFP process, or through interviews or referrals. Just be sure that you are comfortable with the agent’s knowledge of timeshares, the lineup of carriers they can access and the scope of services they offer. Because of the unique insurance exposures involved with timeshare properties and the expertise required to build a property program in today’s market, the number of qualified agents is surprisingly small.

In the video below, see how Gregory & Appel's long history of insuring resort & timeshare properties leads to knowledge other risk advisors may not share.

The Roles of Management Companies and HOAs

The direct involvement of the management company and/or HOA is critical to a successful renewal. They will need to provide a great deal of information to the agent. The more information the underwriter has about a risk, the more comfortable they are, and the more willing they will be to offer higher limits, improved terms, lower deductibles and competitive rates.

As an example, Gregory & Appel recently won a bid on a group of thirteen destination properties, most of which were in a hurricane-prone area. Prior to binding coverage, however, we performed an inspection of all the properties and uncovered several positive wind-mitigation features of the various buildings, along with formal policies and procedures that the insurance underwriters were not aware of.

The carriers viewed this information very favorably and reduced their overall property premium by 20%. The additional information increased their comfort level, and their willingness to offer more competitive pricing. Among the items of information an agent will need for the bidding process are the following:

In another example, we helped a timeshare client in Florida save money on their premiums by bringing in our own loss control experts during the renewal process. By telling a complete story of their exposure to risk – and the proactive ways they have worked to mitigate losses in the event of a catastrophic weather event – they were able to help secure big savings at renewal. Learn more in the video below.

Keep an Open-Minded Approach

In addition to the underwriting details the management company or HOA needs to provide, they will also need to have an open mind. Be prepared to consider alternate deductibles, policy limits and other creative approaches your agent might suggest to reduce premiums.

It’s also helpful to show a willingness to incorporate a carrier’s recommendations for physical changes to the property or amendments or additions to formal policies and procedures. The demonstration of cooperation can have a substantial impact on the carrier’s perception of your property, which can translate to better pricing and coverage.

Why You Should Expect Last-Minute Negotiations

One last word of caution: in today’s market, it is not unusual for you to be waiting until the last second to get your quotes. That’s because the remaining viable property carriers are swamped with submissions, and they don’t get serious about evaluating your property until the renewal date is near. That can be stressful and inconvenient for an HOA board to deal with.

At Gregory & Appel, our approach is to secure an indication from the carriers a month prior to the renewal date, which we communicate to our client as a worst-case scenario. We continue to negotiate with the carriers or involve new ones to improve terms all the way to the last minute, providing the client with weekly or even daily updates. Those last-minute negotiations almost always produce significant savings for our clients. Be sure that your agent takes advantage of the carrier’s willingness to negotiate at the last minute.

This is a difficult insurance market right now, so it is especially important that you use the bidding process to your advantage. Your preparation and involvement will help you secure the best possible outcome.

Resorts Website CTAs

Learn More About Risk Management for Destination Properties

Don’t miss the other entries in this series:

Why Are Insurance Premiums for Timeshares So High?

How Timeshare Associations Can Navigate Increasing Premiums

Is the Timeshare Insurance Market Softening?

Why Your HOA Board Needs Strategic Partnerships

This content is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice. Gregory & Appel is neither a law firm nor a tax advisor; information in all Gregory & Appel materials is meant to be informational and does not constitute legal or tax advice.

This content originally appeared in TimeSharing Today in May 2024.