Our Continuing Series: Unpredictable Business Lawsuits

A Michigan woman claims she was hurt at a Wal-Mart when the handle snapped on a 40-pound bag of salt rust-remover pellets, causing her to hit herself in the right eye. The woman's attorney argues that Morton and Wal-Mart acted negligently by producing a defective bag and by possibly mishandling the salt at the store in a way that could have weakened, or even torn, the bag prior to it being handled by the claimant.

-Michigan Live, June 30, 2012

Ferrero, the maker of Nutella, has settled class action lawsuits, without admitting guilt, for almost $7 million. The class actions claimed that Ferrero U.S.A. misled consumers via labeling and marketing into thinking that Nutella spread was healthy. In 2011, Kellogg  settled similar suits relating to its claims that Cocoa Krispies and Rice Krispies are helpful to children's immunity.

-Bloomberg Businessweek, June 21, 2012

The maker of the iconic Weber Grill Weber has been accused of violating the law by designating Weber grills and certain accessories as "Made in USA" when in fact not all parts were sourced within the US. Under the proposed settlement,  Class Members are eligible to receive $2.00, $5.00, or $9.00, depending on the price they paid for the qualifying Weber product.

Extreme Summer Heat Leading to New Weather Buzz Words

Here are a couple of weather terms that I've heard for the first time this summer:

Derecho - large clusters of thunderstorms that produce widespread wind damage, usually as a result of one or more curved lines of thunderstorms known as bow echoes. The word in the Spanish language means "straight" and these windstorms leave wide, long swaths of straight-line wind damage. Ordinary thunderstorm produces a swath of damaging winds usually only a mile or two wide and a few miles long, but derechoes can produce damage swaths tens of miles wide and several hundred miles long. Unlike tornadoes, which are more common in the spring, derechoes are the most active during the late spring and summer.

Flash Drought - a sudden, unexpected burst of high temperatures and low humidity that can kill plants in a matter of days.

National Hurricane Center Says Don't Tape your Windows 

Guide to Understanding the Business Owner's Policy

Independent Contractor or Employee?

One of the toughest questions for our clients is often determining whether a worker should be classified as an employee or independent contractor for Workers Compensation Insurance. The short answer is that when in doubt, consult a labor attorney. But Best's Review magazine recently ran an article that at least helps with understanding the issues involved in this determination.

According to the article, the most important factor is whether the company has the right to control the manner and means by which the worker accomplishes the desired result. In other words, does the worker manage their own work process.

Secondary factors include:

• Whether the worker is engaged in a distinct occupation or an independently established business.
• Whether the worker or the company supplies the tools or instrumentalities used in the work.
• Method of payment, whether by time or by job.
• Whether the work is part of the regular business of the company.
• Whether the worker has a substantial investment in the business.
• Whether the worker hires employees to assist him or her.

 -Best's Review, April 2012

Want more information on Workers Compensation insurance? Hartford, one of our insurance partners, has released an interactive guide to help understand it.

Common Insurance Terms      

ISAOA - Its Successors And/Or Assigns; often appears on certificates of insurance

ATIMA - As Their Interests May Appear; often appears on certificates of insurance

CPM - Cyber, Privacy, and Media Risks; growing areas of insurance covering claims due to the exposure or loss of others' information

• AmWins
• AXA
• Berkley
• Chubb
• CNA
• Hartford
• HCC Specialty
• Insurance Noodle
• Markel  
• Philadelphia
• Risk Placement Services  

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