Frequently Asked Questions

How does coinsurance work?

Your property has a value of $100,000 and your co-insurance is 80% with a $1,000 deductible

Property is insured for $70,000

You sustain a $50,000 loss. What does you policy actually pay?

Value of Loss X ________________________ - Deductible = Amount of Recovery

$50,000 X ---------------------- (.875) = $43,750 - $1,000 = $42, 750

The insured would be responsible for $7,250 (including the $1,000 deductible)

The insured should look at spending the extra money to get Replacement Value with an Inflation Guard. This example contemplates that the form is REPLACEMENT COST.

If it is Actual Cash Value (ACV), then there is the possibility that depreciation can be deducted from the Value of the Loss before the coinsurance formula is applied. Conversely, the ACV on this $100,000 building may only be $80,000, in which case there wouldn’t be any coinsurance penalty, assuming the building was insured for $80,000.

In addition, they should make sure that they have an “ordinance or law” endorsement in place. This protects against improvements to older buildings that are required by law to meet new codes

What is Exclusive Remedy?

Exclusive remedy is a key component to your workers’ compensation policy and protects you from lawsuits from employees that hurt on the job. It limits the amount of the claim to the limits of liability set in your policy.

For example; if your policy reads 500/500/500 this means that you have $500,000 per accident for bodily injury by accident; $500,000 policy limit by disease; and $500,000 per employee for bodily injury by disease.

However, there is an exception to this rule. If an employer's negligent conduct rises to the level of "culpable", then a cause of action could be maintained for damages for injuries sustained due to the employer's negligent actions. Proving an employer culpable is a very difficult burden and Florida's courts rarely make such a finding.