Tag Archives: certificate of insurance

6 Worst Things to Happen to Insurance

On Dec. 31, I will close out nearly three decades with the Big “I” at both the state and national levels, which followed a 19-year career with ISO and its predecessors.

To paraphrase the Farmers commercial, I know a thing or two because I’ve seen a thing or two over nearly 50 years. I’m so old I can remember when there were underwriting cycles and when investment income was as critical in driving those cycles as underwriting results.

When I started to look back over a long career, I was initially inclined to write about all the great things I’ve experienced—there have been many. But I decided to take an approach that I hope won’t be perceived as negative.

The good things don’t need fixing. So rather than focus on the best of 47 years, I’d like to address six issues I think are bad for the industry that have evolved at an accelerated rate in recent years. Here’s my roundup of the six worst things that have happened to the insurance industry in the last 47 years.

See also: How to Reimagine Insurance With IoT  

The ‘insurance is a commodity’ myth. Anyone who pays attention to TV’s incessant insurance advertising knows the focus of the most prevalent ads is almost exclusively price. The public has been duped into believing that there is no real difference between insurance policies or insurers, and that the agent serves no useful purpose except to cost you an extra 15%.

At some point, even with the miracle of today’s technology in the form of automation, data analytics and more, insurers will be operating about as efficiently as they possibly can. If competition still focuses on price alone, how can insurers continue to compete? Considering two-thirds or more of the premium dollar goes to  losses and loss adjustment expenses, you have to reduce that expense. The easiest way to do that is reducing what the policy covers.

The vanishing premise that the purpose of insurance is to insure. Perhaps due in large part to price-based competition, after the coverage broadening that began in the 1970s, insurance policies are increasingly stripped down to the point of sometimes becoming illusory.

In various seminars and webinars, I recount a story about my experience with a tree removal service whose excess and surplus commercial general liability policy excluded both in-progress and completed operations. While this trend is particularly apparent in personal lines and the E&S marketplace, it is spreading to standard markets, as well.

The problem is exacerbated by regulators who no longer review insurer form filings for coverage reductions, focusing their resources almost exclusively on keeping prices low—even if the reason they’re low is lack of coverage that endangers the public. Is it time for minimum coverage specs, just as we have minimum auto liability limits?

The obsession with data vs. people. Among underwriters and actuaries, today’s buzzwords are “data analytics” and “predictive modeling.” There is nothing inherently wrong with either—as long as they’re used properly as a tool.

My son is a data scientist in another industry, and the potential applications of the data many organizations collect are remarkable. But for us, it’s just an evolution from the pure actuarial analysis the industry has practiced for many decades. The industry can’t exist without the ability to predict losses.

The movement today, though, is not about predictability in the aggregate, but whether an individual risk or very small subgroup of insureds is likely to have a loss. At issue here is the accuracy and relevancy of these models, as well as their impact on affordability and availability for those individual risks that the algorithms say don’t measure up.

As Ben Franklin said, “All things in moderation.” Self-serving firms selling analytical services use the media to tout analytics as the be-all, end-all solution for all that ails the industry.

Consider this anecdote: Several decades ago, an agent negligently failed to insure a barn that subsequently suffered a total fire loss. The branch manager of the insurer contacted the four other branch managers of farm insurers the agent represented. They each agreed to pay one-fifth of the loss “so their agent wouldn’t be embarrassed in his small community.” How likely is this to occur today?

Industry disrupters and the resurrection of the “death of the insurance agent” prediction. Insurance industry media is loaded with stories about tech disrupters that are going to revolutionize the industry and put insurance agents out of business. Been there, done that.

How these startups are getting millions from venture capitalists is puzzling when you consider some of their business premises, including a recent one involving “micro-insurance.” The premise here is that a consumer purchases a policy with a phone app that only covers a particular item—snow skis, for example—and only while they’re in use. How can insurers possibly price such a risk affordably, and who wants 40 separate micro-policies?

The reality is that the foundation of the industry rests on an often complex legal contract. It’s not like buying a pair of socks or K-cups on the internet. Not every transaction can be reduced to a smart phone app or Amazon-like “one-click” purchase, nor should it.

The certificate of insurance frenzy and the “additional insured” illusion. Everybody wants to be covered by everybody else’s insurance. There’s nothing wrong with requiring business partners to carry insurance; it’s a good thing, because with the exception of auto financial responsibility laws and loan requirements, there’s not much pressure to ensure that individuals and businesses carry insurance to protect the public.

But I’m convinced that this situation has gotten out of control. Companies are spending billions of dollars on control and monitoring, while the actual coverages they provide are becoming increasingly illusory. What is gained here? And what are the ethics behind a large firm effectively forcing smaller businesses to cover them under the little guy’s policy, even if the big guy is 99% at fault?

The dumbing down of the industry. From agents to underwriters to adjusters, far too many industry professionals do not read the policy forms they sell and service. Many others review them at some point, but fail to understand what they’re looking at. Still others read them and think they understand them, but can’t apply them to real-life loss situations.

The problem is compounded by the increasingly rapid societal changes and exposures we witness daily. Insurance executives—including the people involved in the latest wave of industry “disrupters”—appear to lack both a historical perspective of the industry and a fundamental understanding that the overriding purpose of the industry is to protect individuals, families and organizations from financial ruin.

See also: Why Are Insurance Websites So Bad?  

The insurance knowledge gap is growing, as is the apparent disdain for quality insurance and risk management education. I think mandatory, bean-counting continuing education programs carry some of the blame—by and large, they’ve almost completely failed to accomplish what they set out to accomplish.

Despite the negative tone of this article, we work in a great and indispensable industry. Civilization and commerce as we know it couldn’t exist without insurance—but there’s always room for improvement.

I have no career regrets. It has been a great ride and a privilege serving all of you over the years. In closing, I’d like to point out that I’m not disappearing from the industry—just moving to a new chapter in my twilight years. I will be unveiling a website next month, where I will be blogging about these and other industry issues for (I hope) many years to come. I hope to see you there.

Some Things Are Too Important for Paper

A little while ago, my 92-year-old mom said that she was tired most of the time and was taking more and more naps. After several doctor visits and tests, the diagnosis was that her pulse was around 40 beats per minute, as opposed to a normal rate of 60. Her cardiologist recommended a pacemaker to improve her heart function and quality of life.

When she checked into the hospital, it had all her records, history, blood work, EKG printouts, etc. Everything was correctly recorded on physical and digital paper.

The staff still hooked her up to an EKG and blood pressure cuff to get moment-by-moment readings.

You see, some things are just too important for paper.

Before she went into surgery, her pulse was 42, and her blood pressure was very high. The staff gave her two courses of blood pressure meds, which brought it back into range so the surgery could take place. When they wheeled her back into her room after surgery, her pulse was 60. Her blood pressure was starting to creep back up, so they continued with some additional meds that brought it back into range. They kept her on the EKG and blood pressure cuff until she was discharged.

I am so thankful that she went home and is back to her old self; out of the house at least five days a week, playing bingo three of those days. My 95-year-old dad still drives them to doctor appointments and worship on the weekends, followed by McDonald’s. To celebrate special occasions, my dad drives them to Chick-fil-A or the Olive Garden.

While having all documentation, forms and information available in paper or electronic image is helpful to a point, it’s just not good enough. The hospital staff needed something more. They needed to continually monitor my mom, checking her pulse, watching her blood pressure and other vital signs.

See also: New, Troubling Healthcare Model  

Some things are just too important for paper.

Now that she’s back to living a full and active life, a technician has come to her home to set up a device that communicates with her pacemaker. It monitors information on her, the pacemaker and her vitals. On a daily basis, this information is collected and forwarded to her doctor via a secure website.


The insurance industry has invested untold billions in technology, and who knows where hand-held devices, wearables, wireless high-speed communications, etc. will eventually take us? But there is one boat anchor of a technology that is dragging down speed, accuracy and efficiency while adding cost and waste.

That technology is the ubiquitous paper form.

Like any form, certificates of insurance are D.O.A. (dead on arrival). Now this might sound harsh, but the reality is that forms are created with information as of a point of time. Because the form is cut off from any possible changes or updates, the cert is potentially out of date by the time it’s delivered.

A host of possible changes and informational updates can invalidate the cert. Mid-term endorsement, renewal, changes in limits or forms, cancellation for non-payment and AM Best rating downgrades are but a few of the possible changes that can nullify the cert.

It makes absolutely no difference how the form was created (agency, company or third-party software and service providers), everyone creates D.O.A. forms. The delivered method is also irrelevant: Paper, fax, web address link, mobile phone, table, PDF and other digital images all have exactly the same problem.

The fact that forms are not plugged into and alive with information pronounces them D.O.A. There is no continuing re-verification of the policy status in conjunction with the needs of the insured and the third-party that needs verification of coverage.

Islands of Misinformation

There are four stakeholders involved in any proof of insurance, and they are isolated on individual information islands. The carrier, agent, insured and third party are involved with the certificate, yet no one can monitor or have control over the entire process. Each organization has its own needs and desires and its own email system. There are also no controls, follow-ups or monitoring of the process. Everyone hits the ubiquitous “reply all” email command, creating an unintelligible spaghetti string of text that is unmanageable and unintelligible.

Business and insurance islands are not known or documented at the beginning of the process. Requirements normally leak out during the process, wasting precious time and money while raising frustration.

I’m familiar with an agency that diligently and professionally worked to get a cert out for a client. Everyone was happy when the process was finished — then the third party sent out yet one more notification, saying the use of “N/A” for “Not Applicable” was not acceptable and needed to be changed to “N.A.” Time and good manners do not permit me to retell the loud and colorful commentary that was heard throughout the agency for a good 15 minutes.


It will take significantly more than a smart mobile device or cloud-based system to solve the systemic problems once-and-for-all. There needs to be a fundamental shift in the way the industry thinks about proof of insurance.

See also: Customers’ Digital Expectations  

We need to declare the certificate D.O.A. and move toward a data-driven digital solution of the sort we have developed at GAPro: a single source where insurance information is automatically housed, updated on a daily basis and integrated with data from all stakeholders in the insurance ecosystem. Carriers send electronic versions of policy transaction data and attached forms for new, renewal, mid-term change, cancellation, reinstatement and billing status to GAPro. GAPro stores and matches policy and form information with data from other insurance-related resources, including AM Best, agency licensing and other sources. Risk profile information describing the insurance business and content needs of agents, insureds and third parties is collected and integrated on a per-policy basis.

See also: Can Risk Management Even Be Effective?  

It’s time for continual monitoring and notification leveraging 21st century technology and insurance-specific capability, wrapped in an easy-to-understand interface.

Insurance conformation and compliance verification are too important for paper.

3 Ways to Boost Agency Productivity

In the not too distant past, consumers went to independent agents for all of their insurance needs – whether simple or complex – because insurance was often an elusive concept to the man on the street. At the same time, insurance coverage was considered something everyone must have, so when insurance-related questions came up, many consumers’ initial instinct was, “I have to talk to my agent.”

Over the past few years, this paradigm has shifted toward consumers being much more willing and able to build an understanding of their needs. This trend is broadly seen across nearly every industry and is accelerating in insurance. While the trusted relationship with an agent is often still crucial, insurance consumers today are researching, purchasing and interacting with the insurance industry in new ways, and increasingly on their own terms. In working with agencies and end consumers around the industry, we think the shifting behavior of consumers can be summarized in two key ways:

  • The Knowledgeable Consumer
    This consumer actively researches insurance online and consults his peer network prior to purchasing policies – either online or in person. How can you quickly and effectively service these consumers before they research other options or take their business elsewhere?
  • The Always-On Consumer
    This consumer wants information anytime, anywhere via any device, be it smartphone, tablet or desktop computer. These consumers don’t want to stop by your office for an auto ID card or certificate of insurance. How can you give them access to their insurance information when and where they want it?

One thing these two types of consumers have in common is the expectation for instant access to information. From an agent’s perspective, providing a mechanism for online service allows for an improved experience by allowing consumers the flexibility to interact with your agency when and how they want. And while there may still be a window of opportunity for this to be considered as a differentiator for the agency, the day is approaching where nearly every consumer will expect and demand it of the agency. Consumers who don’t get this immediate accessibility and flexibility will take their business elsewhere. Further, by pushing common transactions online, agencies can free resources to focus on higher-value service interactions with consumers.

As seen across nearly every industry, advanced technology should be a key element of the agency strategy to meet these business objectives and the evolving expectations of insurance consumers. Agencies and brokerages are able to become more productive with relative ease thanks to enhanced data, mobility, better communication and increased adoption of third-party apps and other tools.

As an agency considers its business strategy, I’ll suggest there are three key considerations when it comes to the role technology solutions can play:

  1. Standardize and Dissect Your Data
  • Standardized Workflows
    To the extent it makes sense for your business, workflow consistency can yield real productivity gains and help capture comprehensive and better customer risk and demographic information your agency can use to better market, account round and engage customers. By leveraging standardized workflows, agency owners are ensuring data entry is consistent across an agency – regardless of location. Additionally, standardized workflows reduce the number of workarounds conducted by staff – increasing productivity at the outset and reducing any potential time spent rectifying workarounds at the back-end. The result will be improved quality and completeness of the underlying data.
  • Business Intelligence
    Over time, agencies and brokerages generate an immense amount of data – yet it can be difficult to access, analyze and understand that data in meaningful ways. Business intelligence (BI) solutions are one way to help turn all of that data into information. For example, principals can identify which producers are using their time most efficiently and driving the most revenue for the business. Principals can also evaluate how effectively their business is cross-selling and quickly identify new market opportunities. While traditional reporting can take hours if not days, BI solutions present your information in immediate and visual ways that drive new insights, enabling you to make more effective decisions to improve productivity and business growth.
  1. Think Easy Access
  • Mobile Technology
    New mobile technology affords producers all of the benefits associated with management system access within an office, without having producers tethered to a desk. This allows them to be more productive and to respond to clients and prospects more quickly and in the manner that current and prospective customers want and expect. For smaller agencies, where employees wear multiple hats within the organization, giving your employees access to tools when they’re away from the office is critical.
  • Online Access
    Consider how your business can leverage the cloud to drive productivity gains. The ability for service staff to work from home via the cloud, when needed, supports work-life balance and allows business to go on regardless of unexpected events. 
  1. Time Is Money
  • Paper No More
    Evaluate ways to become an all-digital agency and eliminate paper. Agencies and brokerages should leverage electronic signature and delivery of client documents, which reduces the time and expense of mailing paper copies.
  • Carrier Information Exchange
    Productivity gains have increased over the years as carriers improved their interface and as agencies better understood how and where to enter data in carrier systems. The vast majority of agencies use personal lines policy detail download to reduce rekeying of data, saving, on average, 81 minutes a day per employee. In addition to download, using real-time for service and rating saves agency employees as much as an hour per day. Policy download yields daily time-savings of nearly an hour and a half per department employee for personal lines and nearly an hour for commercial lines. Take the time to automate communications with your carrier on the front end to save more time over the long term.
  • Online Client Self-Service
    As mentioned, today’s insurance consumer increasingly expects information anytime, anywhere. Agencies need to provide clients the ability to access policy and billing information on their terms, which helps strengthen relationships, ensures high retention rates and drives revenue gains. Self-service capability can increase staff productivity and decrease costs in commercial lines, as well as personal.

Technology will allow you to work faster and, in turn, will redefine the products and services you offer to your clients. While working faster is one thing, using technology to provide mobile access, enhanced communication and streamlined procedures to more quickly serve clients will also drive new business and customer retention.

For additional insights on how to use technology to bolster agency productivity, check out our eBook, “Working Smarter: Finding Agency Productivity Gains.”

Increasing COI Compliance

There is mounting evidence that third-party providers of certificate-of-insurance management services can go well beyond the rote skill of tracking certificates and can improve COI compliance. That is an important issue for many companies given that, nationally, seven out of 10 COIs have been shown to be noncompliant, opening up companies to all kinds of exposure to risk.    

The most efficient and accurate process to review COIs relies on a human model, where deep insurance knowledge is supported by technology, rather than the other way around.  These professionals are typically highly experienced and credentialed insurance experts who review documents to find the issues that transcend the “dot the i’s and cross the t’s” recognition of machine-based systems and move into the realm of nuance, trend and pattern.  Only after the challenges are corrected does technology intervene to confirm corrections on a quality-assurance basis and to deliver reports.

Employing these experts is a significant burden on costs and infrastructure for most any company.  However, based on economies of scale, these insurance professionals who are so crucial to the process can be employed by third-party COI management firms and shared by the companies that truly need them, thus spreading the cost.  With this in mind, there seems to be a significant upside to consider partnering with outsourced systems.

When it comes to COI management — especially within the Fortune 500 community, in which there is a tremendous tonnage of COIs to track and manage — organizations face a choice.  Does it add value to outsource or not?   In the case of COIs, it’s not only a cost-savings issue — although coming to a complete understanding of all the costs and resources  involved to properly manage the process internally can be eye-opening  — but is an efficacy issue, as well.   If the typical Fortune 500 company receives between 5,000 and 10,000 COIs over the course of a year, between 3,500 and 7,000 (or more) of those COIs will need to be followed up with, tracked down and resubmitted for review.

So, if outsourcing not only provides a significant cost savings but also an increase in COI compliance and accuracy, there would be a pretty strong business case for its implementation. Obviously, corporate management is thinking the same way because the demand for COI management outsourcing is growing.  In fact, more than 70% of senior executives predicted that demand for outsourcing would become even more prevalent over the next three years, in a 2011 study conducted by Accenture and the Economist Intelligence Unit.  

The expertise required for COI compliance is extensive, and not readily found in-house.   Here are some questions you need to ask yourself in evaluating the quality of your personnel and infrastructure with regard to COI management:

  1. Do your people really understand insurance? 
  2. Do your resources know what they should be looking for on the certificate?
  3. Do they know how to figure out if the certificate meets your requirements? 
  4. Do you also require endorsements and other supporting documents from your insureds?
  5. What reporting tools exist?
  6. How do you audit in the case of a claim?

Not only does COI management require administrative personnel to handle the daily clerical to-dos and followup activities, but COI management also takes the risk manager’s focus away from the strategic initiatives and other critical functions that deserve full attention.  The risk manager’s plate is more than full — it is overflowing.  Outsourcing COI management cleans up a task that should not hit the risk manager’s desk in the first place.   

Recently, technological innovations such as partially automated systems have taken hold in outsourced COI management.  This value has been enhanced with state-of-the-art, cloud-based systems that operate transparently, away from a client company’s infrastructure.  Not only does this approach provide tremendous savings in IT infrastructure and training, but it allows specialists in COI management to treat the work as though they were right down the hall.  In fact, there are some best-of-breed outsourced COI management companies that maintain full-time professionals who operate as an extension of a client’s risk management department.

Things to consider

1. What is the status of your current positioning in relation to managing vendor risk?

  • Type of insurance program you have
  • How much of it is under your control?
  • Knowledge of staff
  • Internal policies and procedures
  • Support from the top
  • Ramifications/penalties for vendor noncompliance
  • The contract language you use
  • What is the contract for?
  • Effective contractual risk transfer
  • Separate departments in various locations
  • Disconnect between the importance of vendor and the need for a compliant certificate
  • Decentralized vendor and contract tracking
  • Standardized insurance requirements

2. Elements to consider in your vendor contracts

  • Clear, concise and standardized
  • Insurance provisions support indemnity provisions
  • Language on certificates — applicable law
  • The contract is your binding document!
  • Don’t ask for things you don’t need and, if you need them, be ready to explain why!
  • Use your broker or agencies with similar exposures as a resource when determining new requirements
  • Limit any waivers or changes
  • Authority to agree to any changes or waivers should be extremely limited
  • Always consult with your legal team

3. Key vendor issues

  • Do not always understand the requirements in the contract before signing
  • Do not pay premiums on time, letting coverage lapse
  • Change insurance agencies often, making it difficult to maintain compliance
  • Do not communicate effectively with broker before signing agreement or after certificate is submitted

4. Certificate holder operational objectives

  • Central certificate tracking methodology
  • Standardized workflow
  • Centralize organization via single access point
  • Centralize deports
  • Easy access to information
  • Accountability
  • Provide clear contractual requirements
  • Provide single collection point for certificates
  • Provide a sample certificate that can be easily accessed by vendor and broker
  • Provide a centralized communication process for both vendor and broker
  • Outline specific consequences for non-compliance

5.  Smaller vendors = larger liability

  • Risk control programs are not as advanced
  • More willing to cut corners (let insurance lapse)
  • Oftentimes do not fully understand insurance requirements and why they apply
  • The most efficient way to deal with these vendors is through direct contact with their broker

6. Characteristics of larger vendors

  • Often use standardized COIs, which cannot easily be modified to reflect additional information if requested for clarity purposes
  • Self-insurance plays a larger role
  • Strong risk control programs
  • More likely to push for limited risk transfer
  • Often request contract language modifications
  • They resist whenever possible – these changes are usually not to your benefit
  • More emphasis is placed on policy language, which requires work with the broker and the insurance company to verify specific information not included on their COI


So when does outsourcing COI management make sense?  Does it cost more money for your organization to hire the talent in-house or to outsource? Just as important, can a trusted vendor do the work better?   

If your company has a compliance-centric culture, there is a clear benefit to leveraging a flexible COI support team that understands insurance language and  can quickly refine its talent mix to support your needs — a capability you probably do not have in-house.   An increasing number of executives are finding that outsourcing can create a strategic advantage, especially for a dynamic and distributed organization whose needs are often rapidly changing.

With regard to economics, an outsourcing provider has economies of scale, knowledge expertise and the dedicated infrastructure that make its solution more affordable and cost-effective than doing the work in-house.  Outsourcing the COI management processes can cost half as much as doing the work in-house, and, with the right system, you can ultimately make yourself more attractive to insurance markets for your business.

With few exceptions, outsourcing is a viable option for you that can result in operating cost reductions and better strategic insight. 

10 Tips to Achieve Increased COI Compliance

  • A strong insurance program
  • Clear contract language
  • Effective internal policies and procedures
  • Gain support from the top
  • Good relationships with your broker and counterparts
  • Willingness to reach out to the vendor’s broker or insurer if questions arise
  • Provide a centralized tracking methodology that can be shared among all departments, divisions and locations
  • Create a standardized workflow for internal and external users
  • Provide a centralized communication among vendor, broker and client personnel
  • Training, training, training. . . .

Why A Homeowner Should Know About Complying With Workers' Compensation Laws

Workers' compensation laws protect people who are injured on the job. They are designed to make sure that employees who are injured or disabled on the job are provided with fixed monetary awards, removing the need for litigation.

The California Labor Code essentially tells us that anyone working for a homeowner will be an employee unless you can prove otherwise. Further, California Law tells employers — the homeowner in this case — that they must purchase workers' compensation insurance when any employee works for them.

The standard home policy, with liability insurance, includes coverage for “occasional workers' comp risks.” By “occasional,” the policy would be intended to provide insurance for your gardener that swings by once a week or your housekeeper that comes in twice a month, or other folks who perform small tasks at your home. The “occasional worker” is defined as someone who performs less than 10 hours outside of the house work or 20 hours inside of the house work.

When the homeowner is going to reach these thresholds, they should contact their insurance agent to change their Homeowner's policy to cover these new events. The costs for this change can vary quite considerably between companies, but it has been my experience that the additional charges are a fraction of the cost of worker's comp for a business operation.

How do you avoid all of these potential risks and threats, plus involvement in the insurance industry? Here is a short list of steps to simplify your life and avoid becoming an employer. First, hire licensed and insured contractors who have their own workers' compensation insurance. Next, hire other service providers who are licensed, if appropriate, and insured.

Any company or contractor that you hire should have liability and workers' compensation insurance. How to know if they are insured? This is the crucial point to understand. Before any organization, business or contractor begins work for you, ask them to provide you with a Certificate of Insurance which will list all of their insurance policies. This certificate will show that, on that date, there is a list of the insurance policies this business has in place listing their insurance companies, the amounts and types of insurance, and the dates the policy started and are to end.

The homeowner, to further protect themselves, should be listed as a Certificate Holder on this certificate. The Liability insurance listed on the certificate should list the homeowner as an Additional Insured, and the page of their insurance policy that confirms this is to be attached to the certificate.

The workers' compensation insurance should show that the business has provided a Waiver of Subrogation Endorsement on their policy. A waiver of subrogation endorsement requires one party on the contract to waive their right to sue for and recover damages from the other party.

In short, what do these worker's compensation terms mean to the homeowner?

First, the Additional Insured means the insurance for the hired business will provide you with some protection on their policy before your insurance policy may be involved in a claim.

Next, the Waiver of Subrogation means that when the businesses' employee is injured at the homeowner's home, the workers' comp insurance company paying for the employee's treatment can't come back to the homeowner to recover what they have paid injured workers.

When in doubt, call your insurance agent to guide you through this process. There are many talented and knowledgeable insurance agents who can help you. So, ask!

California homeowners have a duty to be aware of the workers' compensation rules to avoid fines and penalties. This knowledge can help them avoid legal problems in case a worker gets injured on their property.