Massachusetts Insurance For Actuaries

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Massachusetts Insurance For Actuaries Policy Information

MA Insurance For Actuaries

Massachusetts Insurance For Actuaries. Actuaries evaluate and determine the financial consequences of risk by applying mathematical principles to quantify uncertain events, such as death, disability, injury, or loss to property.

While some projects are of a short-term nature, most involve long-term projections of rate adequacy, premium income, adequacy of loss reserves or pension plans, and investment results.

Actuaries generally work for insurance companies, rating bureaus, or regulatory agencies, but may offer their services as consultants on an independent basis.

Accredited actuaries must pass a rigorous series of exams to earn their designation through the Casualty Actuarial Society or the Society of Actuaries.

Actuaries can work in a variety of settings as employees, but many find that owning and running their own consultancy firms offers a rewarding and interesting career.

As actuaries specialize in risk assessment, nobody will need to make them aware of the hazards they will face by running their own businesses, nor tell them about the vital role comprehensive insurance coverage plays in reducing the financial consequences of the multitude of perils they could encounter.

However, if you are curious what types of Massachusetts insurance for actuaries coverages would be needed to protect their business, this brief guide offers some answers.

Massachusetts insurance for actuaries protects your actuarial firm from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.

Why Do MA Actuaries Need Insurance?

While actuaries who are employed in commerce, in the non-profit sector, or in a public institution will have similar insurance needs as any other skilled professional, those actuaries who own and manage their own consultancy practices will require additional forms of coverage.

They can, after all, encounter some of the same perils as any other commercial venture - even the most seasoned risk-assessment professional will not be able to prevent all disasters from occurring.

Actuaries running their own firms will not, for example, be able to thwart acts of nature, such as wildfires, earthquakes, serious floods, or storms.

These catastrophic events beyond anyone's control can not only severe damage an actuary's office space, but also their smaller physical assets, such as computers, and at the same time force them to temporarily close their business.

Even alongside excellent safety measures, threats such as burglary, cyber theft, acts of vandalism, and accidents like fires, also remain very real.

Liability risks are another major hazard. A client could accuse an actuary of missing something important in their analysis, a computer virus that infects an actuary's machine could have far-reaching consequences for clients, or a client may be accidentally injured on an actuary's commercial premises.

In these cases, costly lawsuits are almost inevitable - but actuaries also always have to keep in mind that they can be sued even if they did not make any mistake in carrying out their professional duties.

Investing in a Massachusetts insurance for actuaries plan serves the purpose of safeguarding actuarial firms' financial interests - even if disaster could not be averted.

What Type Of Insurance Do Massachusetts Actuaries Need?

The precise nature of the coverage an MAactuary running a consultancy firm will need to protect their business is dependent on multiple factors.

The exact nature of the work, the size of the business, the number of employees, and the jurisdiction where the actuary is based all play important roles in determining the types of Massachusetts insurance for actuaries policies required, as well as the costs.

Consulting a commercial insurance specialist will give actuaries insights tailored to their unique circumstances, but some of the most important forms of coverage actuaries need to carry include:

  • Commercial Property - This coverage will protect your food distribution operation from third-party premises and product liability issues. For instance, if someone were to claim that the products you provided caused a foodborne illness and filed a lawsuit against you, general liability insurance would cover the related expenses.
  • Professional Liability - This type of Massachusetts insurance for actuaries coverage helps with legal defense cost in the case of professional liability claims - claims in which a client alleges that an actuary carried their duties out negligently, or caused active harm.
  • General Liability - Designed to cover broad liability issues, specifically third party bodily injury or property damage claims, actuaries are also likely to need this form of insurance.
  • Workers Compensation - Generally, any commercial venture that has employees requires workers' comp insurance, which covers the medical costs and lost wages for employees who sustain work-related injuries.
  • Commercial Auto - Actuaries who drive vehicles in a professional context will also be required to carry commercial auto insurance, in the event of accident, damage, or theft.

Because MA actuaries carry out diverse responsibilities, and each business has specific needs, consulting a commercial insurance broker about your particular Massachusetts insurance for actuaries requirements is indispensable

MA Actuary's Risks & Exposures

Premises liability exposure is often minimal since most client contact is done electronically or by mail. If clients visit the premises, they must be kept in designated areas so that they cannot view or overhear conversations regarding other clients' confidential information.

To prevent slips, trips, or falls, all areas accessible to clients must be well maintained with floor covering in good condition. The number of exits must be sufficient and be well marked, with backup lighting in case of power failure. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls.

Off-premises exposures include visits to clients' premises. There should be policies and training as to off-site conduct by employees. Personal injury liability exposures include allegations of assault, breach of confidentiality, discrimination, and invasion of privacy.

Professional liability exposure is extensive. The actuary determines the financial consequence of risk, projecting results from current data into the future.

Hazards increase if the firm fails to conduct thorough background checks to verify employees' credentials and education, ignores or has inadequate error checking procedures, or allows clerical workers to do tasks that only professionals should handle.

Ongoing training must be required for all employees. All assumptions used in analyses must be identified and discussed with clients. The firm should have stated procedures and must follow the standard and practices set by the American Academy of Actuaries.

Workers compensation exposure is generally limited to that of an office. Since work is done on computers, potential injuries include eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries that can be addressed through ergonomically designed workstations.

Some actuarial firms have significant off-site work at clients' premises for data collection, presentations, and similar activities. Employees who travel can be injured by slips and falls at clients' premises, assaults, or in automobile or aviation accidents.

Overseas exposures will require special foreign coverage. If an employee is injured in another country, the cost of returning home could be extremely high. Repatriation coverage, including air ambulance services, should be considered.

Property exposure is generally limited to that of an office. Ignition sources include wiring, heating and air conditioning systems, wear, and overheating of equipment. There may be storage of client information in paper form, although these are now often digital instead of paper format.

Storage of paper documents should be in fireproof cabinets. Fire suppression systems must not damage the papers. Computers and other electronic equipment may be targets for theft.

Inland marine exposures are from accounts receivable if the firm offers credit, computers, and valuable papers and records for clients' information. For computers, the hazards may be extensive if equipment or laptop computers are used off-premises due to the potential for theft or transportation losses.

A morale hazard may be indicated if the insured does not keep valuable papers and disks in fireproof file cabinets to protect them from smoke, water, and fire. Power failure and power surges are potentially severe hazards. Duplicates should be kept off-site to allow for re-creation in the event of a loss.

Crime exposures are from employee dishonesty and computer fraud. The exposure can be quite serious as actuaries have access to individual customer's personal and proprietary information. Background checks should be conducted on all employees.

Hazards increase without monitoring procedures and securing all records to prevent unauthorized access. There must be a separation of duties between persons handling deposits and disbursements and reconciling bank statements.

Business auto exposure is generally limited to hired and non-owned. If vehicles are supplied for use by employees, there should be written procedures in place regarding personal use by employees and their family members.

All drivers must have appropriate licenses and acceptable MVRs. Vehicles must be maintained, and records kept in a central location.

Massachusetts Insurance For Actuaries - The Bottom Line

To find out more about the types of Massachusetts insurance for actuaries policies you'll need and how much coverage you should carry along with costs - consult with a reputable broker that is experienced in business insurance.

Massachusetts Economic Data, Regulations And Limits On Commercial Insurance

Made In Massachusetts

If you are thinking about starting a business in the Massachusetts, it's important that you have an understanding of the economic trends and commercial insurance requirements in the state before you set up shop.

Economic trends are important, as they indicate whether or not the area offers a strong economy that will be able to support your business. You also need to know what type of commercial insurance you'll need to carry so that you can plan accordingly and ensure that you are complaint with the law.

To help you determine if the Bay State is the right location for the business you are thinking about opening, below, you'll find an overview of MA's current economic trends, as well as the types of insurance policies you'll need to carry.

Economic Trends For Business Owners In Massachusetts

Unemployment rate is a good indicator of a state's economy. The lower the rate, the more job opportunities there are, which is direct reflection of the health of businesses.

As per the Bureau of Labor Statistics, the unemployment rate in Massachusetts was 2.8% in December, 2019. That's 0.7% lower than the national average, which was 3.5% in December, 2019. This indicates that the state offers a strong workforce and that there are enough jobs to support the residents of the state.

While regions throughout the area are seeing business growth, there are certain areas in particular that are seeing more growth than others. This includes large metropolitan areas and the regions that surround them, including:

  • Boston
  • Brockton
  • Cambridge
  • Lowell
  • New Bedford
  • Newton
  • Quincy
  • Springfield
  • Worcester

Several industries are doing very well in the state of Massachusetts; however, there are particular sectors that are seeing more growth than others and are truly thriving in this part of the country. These industries include:

  • Advanced manufacturing
  • Commercial fishing
  • Education
  • Financial services
  • Hospitality tourism
  • Information technology
  • Medicine and life sciences

If you are thinking about starting a business in any of these industries, chances are good that you will find the success you are looking for in the state of Massachusetts.

Commercial Insurance Requirements In Massachusetts

The Massachusetts Division of Insurance regulates insurance in MA. Massachusetts mandates very few forms of insurance coverage by law. They enforce worker's compensation.

Massachusetts requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors, but employees in domestic service must be covered if they work at least 16 hours a week.

Massachusetts also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.

Additional Resources For Professional Services Insurance

Get informed about small business professional services insurance, including Professional liability, aka errors and omissions (E&O insurance), that protects your business against claims that a professional service you provided caused your client financial loss.


Professional Services Insurance

Let's face reality. People today are claims conscious, resulting in a significant share of malpractice lawsuits against professionals.

Liability resulting from the rendering of or the failure to render professional services is excluded in most liability coverage forms. This means that a policy covering a account's or lawyers' office will cover liability arising out of the maintenance or use of the premises, but specifically exclude liability arising out of the rendering of a professional service or the omission of such a service.

In addition to the professions in which actual physical or mental injury may be caused to clients, certain other professions are exposed to claims for malpractice.

Claims may be brought against lawyers, accountants, architects, and similar professional persons for errors or omissions in their professional capacity. Errors & Omissions insurance pays damages that might be awarded to a plaintiff alleging professional negligence.

Professional liability policies are made available to such risks, and these policies provide essentially the same protection as is afforded under the physicians, surgeons or dentists professional liability policy.

Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Professional Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.

Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Money and Securities, Special Floater, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.


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