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Car Sharing - Worth it?
There are all sorts of car sharing programs out there. Zip Car serves the city dwellers, Flightcar appeals to the business travelers and then there is Larry. We'll get to Larry in a minute. First let's look at some of the advantages and disadvantages of car sharing.
Zip Car is a great service because you don't own the vehicle, you just borrow it. On the plus side, insurance coverage is included and since you don't own the vehicle - your liability is not on the line as the owner. It's efficient and easy to use. No real short side except if you live in the suburbs and there aren't a lot of cars around.
Flightcar is a fairly new service where the business traveler leaves his car parked at the airport and while he is away someone else uses his car. Some of the perks include free parking, free car wash and $10/day for the privilege of giving your car to a stranger. Flightcar offers insurance coverage that is vague at best. And don't count on your insurance carrier to respond, They will be sitting that one out when the claim is filed. With all the gray areas in the coverage you are much better off enjoying your business trip and not worrying about what is going on in your car.
Now back to Larry. Larry has created a little niche market for himself with people that need a ride, but want to avoid the cost of the livery service. Instead of a car and driver, you get Larry behind the wheel of your car. Makes sense. Everyone gets home safely and Larry makes some money for his golf addiction. From a coverage perspective, your auto policy would more than likely cover the loss. What about Larry? If Larry is injured in the accident you just bought yourself a Workers Compensation loss. As much as Larry offers the convenience of a driver without the cost of a car service - best to avoid the uncovered loss.
Regards,
Edward P. Hackett, CIC CRM
Vice-President
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 Domestic Employees and Workers Compensation - What You Need to Know 
Nannies and home health aides are common types of domestic employees that often get overlooked when it comes to workers compensation coverage. Many people use third party placement services that take care of payroll taxes and workers compensation coverage. But for those of you that are contracting for those services yourself, there are three things to know.
1. Why should I? The state mandates that if you have a domestic employee that works more that 16 hours per week you are required to carry Workers Compensation Coverage. This would provide benefits to the employees if they are injured on the job.
2. Injuries, really??? Believe it or not, injuries are common with domestic workers. Back injuries are most common with home health workers that have to assist patients in getting around. They are equally common with nannies that are picking up a child. Slip and falls are a close second.
3. NO Coverage If the domestic worker is injured while driving your auto, their injuries will not be covered by the auto insurance carrier. Yes, they might be a listed operator on your auto insurance, but domestic employees are excluded from coverage for any injuries sustained under the MA auto policy.
If you have domestic employees that are covered elsewhere, ask for proof of coverage from the third party placement service on an annual basis. They should be able to provide you with a certificate of insurance with your name and address listed as certificate holder.
Don't worry if you have not secured the workers compensation coverage for your domestic employee. The process is quick and painless. The annual premium is a flat charge of $260 per person/per year regardless of their earnings. Please contact our office and we'll make sure you are properly covered.
For more details on the state requirements for taxes, etc. click here.
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