Dear Valued Customer,

We should all know by now that the Service Station insurance marketplace has become very challenging  and in many cases very expensive. This is why claim prevention should be an important priority in your daily operations. Many of our service stations with only one or two claims on their records are seeing significant increase in premiums, with lesser coverage’s.
NOW is the time that you can be proactive in protecting your business in today’s insurance climate.
Preventing & Mitigating Slip & Falls with proper procedures & Cameras
•    Set up a documented procedure to regularly inspect your premises, multiple times a day, and immediately cleanup and/or fix any trip/slip and fall hazards. We might sound repetitive, but please note the following:
o    We have now just recently received a claim because of a customer tripping on a pot hole. If that pot hole was detected earlier and fixed, it would have prevented that claim and now the insured may be looking at considerable increases in premium come renewal time. What cost more, a couple hundred dollars to fix the pot hole or several more thousand dollars in increased premiums.
o    We are still getting inspection reports back from the insurance carriers that show large cracks and pot holes. AGAIN, it shouldn’t be the inspection report that points these hazards out to you. They should have been already repaired.
•    Video backup and documentation - When an incident occurs (whether or not it develops into a claim), please save the video, document who was working at the time and get a statement from them. As mentioned in prior newsletters, in CA the injured party has up to 2 years to report a bodily injury claim.

Maintaining a clean and well-organized premises is not only essential for customer satisfaction and employee morale but also plays a significant role in mitigating insurance risks. A cluttered or poorly maintained environment not only increases the likelihood of accidents and injuries but also raises concerns about compliance with health and safety regulations.
Insurers often conduct risk assessments of business premises as part of the underwriting process, taking into account factors such as cleanliness, maintenance practices, and adherence to safety protocols. Businesses that demonstrate a commitment to cleanliness and proactive maintenance not only reduce their exposure to liability claims but also present a lower risk profile to insurers, potentially leading to lower premiums and more favorable coverage terms.

Vehicle damage to premises:
•    Whenever a vehicle does damage to your property, get as much info on the vehicle. This would include car info, driver info and insurance info. If there’s a video, make a backup immediately. This way we will make every attempt to get their insurance company to cover the loss.

As businesses navigate the complex landscape of commercial insurance in California, proactive risk management strategies are essential for protecting assets, minimizing disruptions, and ensuring long-term viability. By leveraging tools such as surveillance cameras and prioritizing cleanliness and maintenance, insured businesses can mitigate risks, streamline the claims process, and ultimately enhance their bottom line.

This turbulent insurance environment will continue to worsen for at least 1 – 2 years.

We hope this message finds you well.

As part of our commitment to keeping you informed about important developments in insurance coverage, we want to draw your attention to a significant update regarding commercial property policies.

Assault & Battery Exclusions: What You Need to Know
In recent times, there has been a notable trend among insurance providers to exclude coverage for incidents related to assault and battery. This exclusion means that any damages, liabilities, or losses resulting from assault or battery incidents may not be covered under some existing policy.

Why is this important – Because in the last several months we have now had three incidences with our service station client are being sued for alleged “Assault and Battery” by one of their employee’s.

Whether your policy has this exclusion or not,  it's imperative to take proactive steps to protect your business from potential risks. Here are some recommended actions to consider:

1.    Enhanced Security Measures: Implement security measures to help prevent assault and battery incidents on your premises. This may involve installing more surveillance cameras and implementing access control measures.
2.    Employee Training: Provide comprehensive training to your staff on conflict resolution, de-escalation techniques, and how to respond effectively to potentially volatile situations. Equipping your employees with the necessary skills can help mitigate the risk of incidents escalating into violence.
3.    Customer Communication: Clearly communicate your zero-tolerance policy for violence and aggressive behavior to your customers. Post signs outlining your expectations for conduct on your premises and take prompt action to address any violations.
4.    Incident Response Plan: Develop a detailed incident response plan outlining the steps to be taken in the event of an assault or battery incident. This should include protocols for contacting law enforcement, documenting evidence, and providing support to affected individuals.
5.    Regular Policy Reviews: Regularly review and update your insurance policies to ensure they adequately reflect the evolving needs and risks of your business. Work closely with your insurance agent or broker to identify any gaps in coverage and make necessary adjustments.

By taking proactive measures to address the risk of assault and battery incidents, you can help protect your business and minimize potential liabilities. Our team is here to support you every step of the way and provide tailored insurance solutions to meet your specific needs.

If you have any questions or concerns regarding the assault and battery exclusion or any other aspect of your insurance coverage, please don't hesitate to reach out to our team. We are here to help and are committed to ensuring that you have the protection and support you need to safeguard your business interests effectively.

Thank you for entrusting us with your insurance needs. We look forward to continuing to serve you and to providing you with the highest level of service and support.    

Sincerely,
The RKM Team.

Dear Valued Customers,

It’s been a crazy year and we hope this newsletter finds you well. Today, we bring you a crucial legislative update that impacts Underground Storage Tank (UST) owners and operators in California. Assembly Bill 1115 (AB 1115) has been enacted, extending the deadline for the UST Cleanup Fund and related programs.
Key Provisions of AB 1115:

1. •    Extension of Cleanup Fund and Companion Programs: AB 1115 extends the UST Cleanup Fund and companion programs, including Replacing, Removing, or Upgrading (RUST) grants and loans, through January 1, 2035.
   
2. •    Financial Responsibility Mechanism Extension: UST owners and operators will now be able to use the UST Cleanup Fund as a financial responsibility mechanism until December 31, 2034.
   

     For further details or inquiries related to AB 1115, we encourage you to visit the official California State Legislature website or contact the relevant regulatory authorities. We will continue to keep you updated on developments that may impact your business or industry.

Roofing Maintenance Reminder:

     We also want to take a moment to remind our valued customers about the importance of maintaining your building's roofing system. ALL insurance companies are now asking, on buildings that are over 30 years old, when was the roof either updated or replaced.

A well-maintained roof is crucial for safeguarding your investment and ensuring the longevity of your property.
Key Roofing Maintenance Tips:

1. Regular Inspections: Schedule regular inspections to identify any signs of wear, damage, or potential issues. Early detection can prevent more extensive and costly repairs.
   
2. Clean Gutters and Drains: Ensure that gutters and drains are free from debris to prevent water buildup and potential damage to your roofing system.
   
3. Address Leaks Promptly: If you notice any leaks or water stains inside your building, address them promptly. Ignoring leaks can lead to more significant issues and compromise the integrity of your roof.
   
4.  Trim Overhanging Branches: Overhanging branches can cause damage to your roof, especially during storms or high winds. Trim branches to prevent them from scraping or puncturing the roofing material.
   
5. Professional Roofing Inspections: Consider hiring a professional roofing contractor for comprehensive inspections and maintenance. They can provide expert guidance on the state of your roof and recommend necessary repairs or upgrades.
   

A well-maintained roof not only protects your property but also gets you in better favor with the insurance carriers. We encourage you to prioritize roofing maintenance as part of your ongoing building management strategy.

We thank you for your business and wish everyone a happy Thanksgiving  

Dear valued customers,

Gasoline Theft Alert!

Fuel theft is starting to happen at a greater frequency and these thieves not only have figured out how to open and free flow the pumps (mainly diesel ) but they are now coming in with bigger tanks (Some with 1,000 gal. Capacity ).  With the gas prices as high as they are it is very attractive to them and very painful to your profit and loss’s bottom line.

Claim#1- A large flatbed truck pulled up to the diesel gas and underneath the truck was a 1,000 gallon tank custom built into the chassis. They were there for almost 2 hours , once they were done a second truck (exactly the same) took another 1,000 gallons, and 2 hours later a third truck pulled up and stole another 1,000 gallons. 3,000 gallons in total stolen in a little over 6 hours.  (thought…this should have raised huge suspicion)

Claim#-2- Customer came in and paid the cashier $300 and ask to activate pumps 5 & 6 . Then he must of opened the pump , tampered with the electronics and told the employee that the pump did not work and the cashier gave him back his $300. That same customer ended up staying at the pump for an hour and a half,  filling up not only his trucks , but several other thieves came by and continued to steal Diesel. (thought…cashier should contact  a manger/Owner  to check it out/verify first)

Important Training suggestions;

Have weekly or monthly meetings with all your employees. Explain to them what is happening and that they need to pay attention, watch the pumps and if anything is suspicious to report it immediately. If there is all of a sudden a long line at the diesel pump, the employee should investigate immediately.  If there is a large truck at the same pump for a long period of time, say over 30 minutes, again investigate.  While these are commonsense practices, your employees need to be aware and follow this process  when they see anything suspicious or out of the ordinary.  Another helpful suggestion is to make sure you place cameras in those hidden areas to be monitored as well.

Possible Prevention;

From what we have been told, there may be locking devices to help prevent the theft from happening in the first place. Check with your maintenance companies and see what they might have to offer.  One of our customers shared that they installed a very loud alarm system at the pumps that
would sound off if opened without authorization.  

If you do get hit by these gasoline bandits, make sure to file a police report immediately, this is an insurance requirement, and keep any video and/or witness information.

Thank you for your continued support!  And as always we are here to help with any questions you may have.

 Dear Valued Customer,

As everyone knows by now, the insurance market in California is currently in turmoil, especially for our service station customers.

So, once again we would like to dive into the complexities surrounding commercial insurance in California and shed light on the pressing challenges faced by our Customers . As we explore the current landscape, we aim to provide a better understanding of the problems and potential solutions.

1. Escalating Premiums: In recent years, California has experienced a significant increase in commercial insurance premiums. Factors such as rising claim costs, increased litigation, and catastrophic events have contributed to this trend. As a result, RKM Insurance has been working diligently on finding the best companies available in today’s market place that fit our client’s needs.
2.  Limited Availability: Certain industries, face limited availability of insurance coverage altogether. Sectors prone to high-risk activities, such as service stations, often struggle to find insurers willing to provide comprehensive coverage at affordable rates. This lack of options creates a barrier for businesses operating in these industries, hindering their ability to obtain the necessary protection.
3. Wildfire Risks: Wildfires pose a significant threat to many areas of California. As these events become more frequent and intense, insurance carriers are becoming more cautious in underwriting policies for businesses located in high-risk regions. This cautious approach results in reduced coverage availability and higher premiums, adding to the financial burden faced by businesses in fire-prone areas.
4. Liability Concerns: California's legal landscape and regulatory environment can contribute to an increase in liability claims. Businesses operating in the state are often subjected to costly lawsuits, including those related to employment practices, product and premises liability (slip/fall). This liability concern leads to higher insurance premiums, making it harder for businesses to protect themselves adequately.

Addressing the Challenges:

     While the commercial insurance challenges in California are multifaceted, there are steps businesses can take to navigate the current landscape:

1. Risk Mitigation: Implement risk management practices tailored to your industry to minimize potential hazards and demonstrate your commitment to safety. As mention in previous newsletter, you should setup procedures for your employees to inspect your premises several times a day and immediately cleanup any slip/fall hazards. This should be a documented procedure that is strictly enforced. Insurers often reward proactive risk mitigation measures with lower premiums.
2. Employee training: Provide comprehensive training programs for employees to ensure they understand safety procedures, emergency response protocols, and how to handle potentially hazardous situations. Training should cover proper handling of fuel, fire safety, first aid, and customer assistance.
3. Clear signage and markings: Clearly display warning signs and safety instructions throughout the gas station premises. Use visible and easily understandable signs for things like no smoking areas, fire extinguisher locations, emergency exits, and potential hazards.
4. Security cameras: Install security cameras in strategic locations to monitor the premises and deter criminal activities. Visible cameras can serve as a deterrent, and recorded footage can be useful in investigating accidents, thefts, or other incidents. The more cameras the better.
5. Regular safety meetings: Hold regular safety meetings with employees to discuss safety concerns, address any issues or questions, and reinforce safe practices. Encourage employees to report any safety hazards or incidents promptly.
6. Seek Professional Advice: Don’t hesitate to Call you Agent at RKM.  We  can help you navigate the insurance market, identify available options, and negotiate favorable terms.

     We hope this newsletter has shed light on the current challenges surrounding commercial insurance in California. By staying informed, proactive, and seeking appropriate guidance, businesses can navigate this complex landscape and ensure adequate protection for their operations. It is RKM’s hope that this , “Hard Market”, will be temporary and that more Insurance Companies will come back to California

Thank you for your continuing support and if you have any questions regarding this newsletter or other, please contact your agent

Dear valued customer,

As most of you have heard by now, Nationwide Insurance Company is “Non-renewing” all gas station &  convenience stores in the State of California.

With Nationwide leaving this market, we are all becoming painfully aware that  Liability/Property insurance is becoming more difficult and expensive to obtain in California. Some of our customers, with claims on their record, are seeing anywhere from 25% – 200% increase in insurance premiums. In addition to this, all Carriers have also considerably expanded their  “Brush Area Maps” giving us even a greater challenge.

There are now only a hand full of companies that will insure service stations (especially 24 hour operations) and they are all becoming increasing difficult to work with.

Rest assured, that since RKM insures over 1,000 service stations, we are still one of the few agencies that have access to these companies.

It’s more important today than ever to take extra precautions on preventing claims and documenting potential incidents that may lead to a lawsuits.

A couple important steps we recommend:

•    Keep video tapes of all alleged slip/falls and/or incidents. We have  now had a couple claims were the service station had a very comprehensive camera system and kept the video tape of a bogus slip/fall. With that, the insurance company got out of paying anything. Without those videos, the insurance company would most likely had paid something, which would affect our insured’s record and premiums. Bogus Slip/fall claims are now settling out between $25K - $100K. We strongly suggest you invest in a comprehensive camera system and keep any video of allege slip/fall incident, on a flash drive, for at least 2 year.

•    Do regular daily facility inspections, a couple times a day,  to immediately clean up any slip/fall hazards. These are the most common claims for service stations and sometimes a little extra maintenance goes a long way.

•    On property damage claims, such as a vehicle striking the pumps, canopy and/or building, train your employees to get as much information on the vehicle, driver and their insurance company. We at RKM will always try and help you collect from them before it goes on your record.

We don’t want you to shoot the messenger (us) if your premiums skyrockets because of claims.

Thank you for your continuing support and if you have any questions regarding this newsletter or other, please contact your agent

As we are all becoming aware of, the Insurance industry for Service Station businesses is dramatically changing, (and not for the better) and we are anticipating that it will become even more stringent in 2023.   All claims, whether small or large, will have a significant impact on your premiums. So, whatever you can do to prevent claims is more important now than it’s ever been.

Here are a couple of important reminders we’d like to readdress.

Gasoline theft.

In just the last couple of weeks we had three more diesel gasoline thefts, one of which was significant.  There are preventative measures that can be taken to prevent this type of theft.  As mentioned in our previous newsletter, there are alarms that can be installed on the dispenser that will set off a “bell” when someone tries to tamper with it. This worked very successfully for one of our insureds and prevented a potentially large claim. They are using a Ring Security Alarm with contact sensors. Also, train your employees to be more observant on trucks that are parked at pumps for extended periods of time.

Maintenance.

Remember, improper maintenance and normal wear and tear claims are not covered on any insurance policy.  With winter approaching, it is very important that you take time and clear the roof gutters and check your premises for any other areas that may need some repair to prevent potential issues or loss.

To All Our Customers,

We believe most of you should have received the below notification from the California super cleanup fund.  As you are aware, every Gas station has been paying 2 cents per gallon for this coverage / financial responsibility.

The good news, as of January 01, 2026 you will no longer be charged on your lading invoice the 2 cents, the bad news is you will need to have in place by December 31, 2024 an Insurance policy to show or prove you have  “Financial Responsibility ” coverage.


SUBJECT:  Underground Storage Tank (UST) Financial Responsibility Requirement Changes Effective 2024
 
 This letter is to inform Underground Storage Tank (UST) owners and operators of future changes related to Financial Responsibility Requirements and the UST Cleanup Fund. Approximately 60% of UST owners and operators are currently using the UST Cleanup Fund as a part or full method of Financial Responsibility for UST systems. Effective January 1, 2026, the Cleanup Fund will no longer be available.  UST owners and operators (except those at state or federally owned facilities) utilizing the Cleanup Fund as a mechanism for financial responsibility will be required to provide an alternate financial responsibility mechanism on or before December 31, 2024.
 
UST owners and operators should be aware of the 2024 deadline and be diligent in finding other means for financial responsibility.  Owner/operators of USTs that are older than 30 years should be aware that some insurance providers may be hesitant to cover these systems, so insuring these tanks may be more difficult.
 
If you have questions about Financial Responsibility and the UST Cleanup Fund, please contact Kaniz Rahman at [email protected] or (909) 386-8401.
 
As you are aware RKM Insurance has several Insurance Companies that will offer this coverage. Many of our customers already have in place and purchased this coverage and therefore it will be business as usual, you are in compliant.
.
However, for the rest of you who do not have this coverage in place, you will need to start thinking about purchasing a policy. These policies can range in cost from $500 to $5,000 or higher. This cost varies due in big part to the age of the tanks, the newer tanks (just like life Insurance) is fairly inexpensive,  but when you get to the older tanks (20 years to 30 years) the price increases and once the tank is over 30 years it is more expensive and difficult to get coverage.

The applications are fairly easy and we will be more than happy to assist you in completing them. The crucial information is how many tanks (Including underground oil tanks if applicable ) and the date they were installed.

Please contact and we will be happy to start the process.

Dear valued customer,

This newsletter is for our insureds who offer, or are considering to offer filling of propane bottles.

This exposure is becoming increasingly more difficult to insure because of its potentially large claim exposure. Some insurance companies are starting to restrict this coverage and others have stopped quoting locations that have propane filling altogether.

One of the big insurance companies we represent just had a very large propane loss.

Details of the claim are as follows:

•    The service station employee filled 3 propane bottles that were expired and that had not been “requalified”
•    One tank exploded at the customer’s house.
•    2 individuals were severely burned and one of them had since passed away - a very unfortunate situation.
•    The service station is now being sued for over $8,000,000 and unfortunately, they appear to only have a $1,000,000 liability policy.

Also, our agency too, has recently had a different large propane claim similar to the one discussed above. In that claim, again the insured filled a bottle that was over 10 years old and, although that bottle was requalified, the insurance company still paid $400,000.

Something to think about…Unless propane filling generates a substantial source of income, you may want to reconsider offering that service.

However, if you continue to do propane fill,…  It is important to make sure that the employees that is filling these bottles are properly trained on what bottles they fill and that you are up to date on all regulations. DO NOT let untrained employees fill propane bottles.

The propane supplier you are working with should be able to provide such training on a regular basis.

Dear valued customers,
 
It’s important to note that when reporting final payrolls for your Workers Compensation audits, that it is done correctly.
 
As reported in the Simi Valley Acorn newspaper, a Simi Valley roofing company has just been convicted on two counts of felony workers compensation insurance fraud, for underreporting their payroll for several years.
 
The owner of the roofing company not only had to pay restitution to the insurance company, but will also be sentenced in a couple weeks to potential jail time.
 
As the District attorney said ” Workers Compensation premium fraud is not a victimless crime. It allows unscrupulous businesses to gain an unfair advantage over their competition..”
 
When reporting your end of the WC policy period audit, please make sure you correctly report your payrolls, to avoid any potential legal actions.
 
We are always happy to keep you informed on the latest Insurance trends to help protect your business.
 
You can view all of our ongoing newsletters by visiting our website at  www.RKM-INS.com.

To our valued customers;
 
Over the years, RKM has continued to help remind you about areas of your policy that you might overlook. Today we would like to talk to you about Unattached Outdoor sign coverage.
 
You might have upgraded your signs over the last few years to meet with the technological times, and converted to a new digital one.

The standard coverage limit for outdoor signs can range anywhere from $2,500 to $10,000.

New digital signs can range anywhere from $15,000 - $45,000 on average and in some cases much more. If you are still using the standard limit for your polices, this will not be enough to cover a complete loss to your sign.

Claim example; An accident happens in the intersection and one of the  vehicles hit your  brand new digital  sign. Cost to replace it $25,000.  
 Your policy limits only cover $2,500. The vehicle that hit your sign has the “California “ minimum limits which means only $5,000 for property damage on their Insurance policy  or even worst they have no coverage. Now, your out of pocket cost is more than you had expected.

Also , as a reminder, you must also protect your sign’s from Wear & Tear damage; always maintain the base, protect from water damage/corrosion, and properly prime and paint regularly. Wear & Tear damage is not covered by any policy, so proper maintenance is a crucial.

If you have any questions about your current coverage, please do not hesitate to contact your Agent and they will be happy to discuss this in full detail and reevaluate your policy with you.

Thanks you for your continuing business and support.

Dear Valued Customer,
 
This newsletter will be covering Employment Practice Liability Insurance (EPLI)
 
EPLI Insurance is protection, which covers you against claims arising from your employees for such things as Discrimination (race, sex, religion, etc..), Harassment (sexual or otherwise) and Wrongful termination.  Some  policies will also extend these coverage’s to claims filed against you by third parties (your customers). Please note that most of these policies DO NOT cover you for wage and hour dispute claims.
 
EPLI coverage is not automatically provided under your current standard Workers Compensation and / or your General Liability policies. Also EPLI Insurance has never been a requirement of the oil companies.  It is a "peace of mind" coverage.
 
We recommend you talk to your attorney, as this is becoming one of the most important coverage you need in order to protect yourself from these type of claims. In the last year, there has been several claims filed against our service station customers. They included but not limited to; wrongful termination, age discrimination, sexual discrimination, religious discrimination, sexual harassment and also a  customer suing for discrimination.  Attorneys are now focusing their attention in this area,  And, whether or not you did everything right and had the proper procedures in place, the attorney expenses to defend these claims and the potential payouts could well exceed $20,000 to $30,000.
 
The good news is you have several options, and RKM Insurance can provide you with EPLI coverage to fit your needs against these clams.  Please contact your agent for more information and a quote.
 
Even if you do not purchase an EPLI policy, which can be costly and with very high deductibles ($10,000 to $50,000), you should keep up with what’s going on in your industry and educate yourself to help reduce the possibility of having a loss. There are things you can do without the cost of attorneys , Employee Handbooks , time cards documenting lunch periods were taken as well as the 10 minute breaks, training your employees how to handle difficult situations, Etc.
 
California is always passing new laws that affect us business owners every day, drive us nuts and costs us money .

To our valued customers,

That’s right, they’re back again!
We have just received three new “handicap” lawsuits in the last month, which have all been denied by the insurance companies..

We hate to sound like your mother and repeatedly nag you about this, but these type of lawsuits are NOT covered under your standard Liability/Property policies. They are a nuisance claim, but can cost you anywhere from $5K to $15K, depending on how you handle it.

We’ve previously recommended, in these newsletters, that it would benefit your business to hire a Certified Access Specialist to inspect your premises and make sure that you are in full compliance of all the existing and new handicap ADA laws (they change every year).  All you have to do is type Certified Access Specialist in Google search, to find one close to you.

Again, we strongly recommend that you do so immediately! Nothing upsets us most then telling a our good customer that there is no coverage on any lawsuit.

To our valued customers;
 
As if the coronavirus isn't difficult enough, we can now add the riots to the pot!
 
As most of you may know by now, the coronavirus is Not a covered loss on your Liability/property policy. However, “Riot or Civil Commotion” Is a covered loss.
Some of you remember the 1992 riots, RKM had 14 gas stations damaged and burnt. All the locations were covered by the Insurance companies, although it was a lengthy claim process, they were all back in business.
We know at this point, there's a high level of frustration, and different ideas may come to mind on how to defend and protect your business, and rightfully so.  However, our best advice to you in these times and for your safety, we encourage you to stay calm, stay home and stay safe.
 
If these riots should continue and move close enough to threaten your business/station, we encourage you to close and send your employees home for their safety.
 
Also, remember, record keeping is always important. Please keep as many receipts as possible, along with videos, pictures, etc. And make sure to keep these records/receipts OFF the premises should your station burn down.
 
On a different yet very important subject, RKM recently received a slip and fall at one of our customer stations, which may lead into a very large claim.
 
Details: A customer came to the Service Station, allegedly slipped and fell and was taken to the hospital by ambulance. The next day he passed away in the hospital. A very unfortunate situation and the reasons for his death are still unknown at this time. Unfortunately, the employee did not inform our Insured of the incident and by the time our insured was made aware of it, the video was taped over, therefore erased.
 
VERY IMPORTANT ; All employees need to constantly be reminded to notify the main office or Owners of ANY incident, no matter how small or large, and keep any and all related videos, witnesses info., phone pictures for two (2) years.
 
We ask you to please stay safe during these times, and always feel free to call us for any questions you might have.

All our Customers,

The good news is that currently it looks like our normal claims , slip & falls, pump damage , etc. has slowed down during the COVID-19 virus. The bad news is along with the COVID-19 virus there will be constantly new regulations , which we all love to see.
Below is a summary of SB 1159, which was recently passed. Please read carefully. If you don’t comply with this new State bill, there could be significant financial penalties.
You can contact your Workers Comp. Carrier directly for additional advice and assistance when filing optional claims and you should have received additional information regarding SB 1159 from your Workers Compensation carrier.
We are also here to assist  so don’t hesitate to call us                                                                                                                                                                             

IMPORTANT NOTICE: New regulations regarding COVID-19 employer requirements have gone into effect for California.
At RKM Insurance, we are dedicated to keeping you up-to-date and informed when critical notifications (such as these) directly impact you, your clients, and your business.

California Governor Gavin Newsom recently signed two bills into law: SB1159 and AB685. These place immediate requirements on California employers and will remain effective from September 17, 2020 through January 1, 2023.
Please review this information carefully as these obligations carry severe administrative penalties (up to $10,000) for failure to comply.

The First Bill: SB1159 – COVID-19 Workers’ Compensation Presumption Bill
Here are the rules for this important reporting obligation:
Positive Tests on (or after) September 17, 2020 (Must be reported in 3 Business Days)
ALL OF THE FOLLOWING must be reported to Your Insurance Carrier within 3 business days of being notified that your employee tested positive for COVID-19:
1.    TEST RESULT: Report that an employee tested positive. Do not identify the employee by name unless the employee claims the infection was work-related.
2.    DATE: Report the date the employee tested positive. This is the date the test was taken.
3.    ADDRESS: Include the address of the specific place(s) of employment where the infected employee worked during the 14-day period before testing positive.
4.    EMPLOYEE TOTAL: First, please take note of the date your employee tested positive. Second, with that date in mind, please note the number of employees who came into work within 45 days before this date. Businesses must report the highest number of employees who came to work (at the same locations where the infected employee worked) in the 45-day period before the infected employee’s last day on-the-job.
________________________________________
Positive Tests between July 6, 2020 and September 17, 2020 (Must be reported by Oct. 29,2020)
1.    TEST AMOUNTS: Report all known positive tests by October 29, 2020.
2.    TEST RESULT: Report that an employee tested positive. Do not identify the employee by name unless the employee claims the infection was work-related.
3.    DATE: Report the date the employee tested positive. This is the date the test was taken.
4.    ADDRESS: Include the address of the specific place(s) of employment where the infected employee worked during the 14-day period before testing positive.
5.    EMPLOYEE TOTAL: First, please take note of the date your employee tested positive. Second, with that date in mind, please note the number of employees who came into work within 45 days before this date. Businesses must report the highest number of employees who came to work (at the same locations where the infected employee worked) in the 45-day period before the infected employee’s last day on-the-job.

Please note these regulations only apply to businesses with 5 or more employees.
________________________________________

The Second Bill: AB685 – Employer’s Written Notice for Exposed Employees

You also need to be aware of the second bill, Assembly Bill 685. This bill will be effective on January 1, 2021 and requires California businesses to notify their employees who may have been exposed to COVID-19 at their worksite within one business day.

We hope that you, your employees, and your families are staying safe during this time