The East Coast Conglomerate Co (ECCC) a small manufacturing company is doing a risk management assessment and a total review of their insurance policies. They have asked you,  knowing that you are enrolled in an insurance course,  the following questions. Please provide your response or recommendation for each.

A. ECCC plans on hiring a few part time subcontractors. How does this affect their workers compensation coverage and premium?

B. ECCC is concerned about their workers compensation experience modification. It has increased from .98 to 1.10 in the past year. Explain why this may have happened and explain to ECCC how the EM is derived.

C. ECCC has employees who travel out of state and out of the country. They are concerned about their workers compensation insurance coverage when employees are working outside Virginia.  Explain how the workers compensation insurance responds to these situations.

D. ECCC is concerned that they do not have adequate liability insurance. They currently have general liability insurance, business auto insurance and employers liability insurance. Make a recommendation as to the best way to increase their liability limit.

E. An owner of ECCC has recently read a news article about a business that was sued by an employee who accused the business of discrimination. Provide guidance to ECCC regarding insurance coverage for this situation.

F. Since ECCC is relying on your professional guidance in helping to make risk mangement and insurance decisions you may want to have insurance coverage to protect yourself from professional liability (this assumes you are an insurance agent). Descibe the coverage that would be provided by such a policy.

G. ECCC has discovered two underground gas tanks on their property. What type of liability might ECCC face and what risk management remedies do you suggest for this exposure

2. Jacks Heating Co has recently signed a contract to install heating and A/C equipment in a new building. The contract requires that Jack provide a performance bond. This is the first time Jack has had to provide a bond and he has called you to find out what is involved. Describe the aspects of bond underwriting, identify the parties to the bond and the main purpose of the bond.

3.  You are asked to serve as a board member on the local banks board of directors. You are concerned about your liability as a board member. Describe the type of liability coverage that is needed to protect bank board members.