Lovik & Juhl, PLLCLovik & Juhl, PLLC2026-02-18T06:09:58Zhttps://www.lovikandjuhl.com/feed/atom/WordPress/wp-content/uploads/sites/1503044/2022/07/cropped-Site-icon-LJ-32x32.jpgOn Behalf of Lovik & Juhl, PLLC<![CDATA[Why would insurance companies waive subrogation?]]>https://www.lovikandjuhl.com/?p=469662023-09-05T08:36:58Z2023-09-05T08:36:58Zinsurance subrogation in action.
Why does a waiver of subrogation matter?
When you sign a waiver of subrogation, it means you, as the insurer, ask your insurance company not to recover damages from a third party. It ensures you do not receive double compensation for your loss. It can also help expedite the claims process by not going through lengthy litigation.
Just note that this may mean paying a higher premium since you may be putting your insurer at higher risk. However, there are times when insurance companies choose to waive subrogation. What does this mean, and why would they do it?
Reasons for waiving subrogation
Below are the common reasons why insurance companies may waive subrogation:
Customer retention: Insurance companies value their customers. By waiving subrogation, they may be showing goodwill to retain your business. This customer-centric approach can help maintain long-term relationships.
Small claims: Insurance companies may waive the cost of pursuing subrogation for minor claims where the cost of pursuing subrogation exceeds the potential recovery. It's simply not cost-effective to go after small amounts.
Faster settlements: Pursuing subrogation can be a lengthy process involving legal procedures. By waiving subrogation, insurance companies can expedite the claims settlement. This means you can get compensation quickly.
Policy terms: Some insurance policies have clauses that allow the insurance company to waive subrogation under specific circumstances.
Mitigating conflict: Subrogation can sometimes lead to disputes between insurance companies and third parties. To avoid potential conflicts or legal battles, insurers may choose to waive subrogation and focus on serving their policyholders.
Insurance companies waive subrogation for various reasons, so be sure to read your insurance policy carefully to make an informed decision on whether you need to sign a waiver of subrogation or not. It might help to check with legal counsel to understand its consequences. But ultimately, this decision aims to provide you with a smoother claims experience and maintain positive insurer-policyholder relationships.
]]>On Behalf of Lovik & Juhl, PLLC<![CDATA[Using e-signatures for official documents as a business owner]]>https://www.lovikandjuhl.com/?p=469642023-08-17T19:51:15Z2023-08-17T19:51:15Z
It may surprise you that electronic signatures (e-signatures) have the same legal effect as traditional ink signatures. This means that documents and contracts signed electronically are enforceable. Creating an e-signature on documents may help your business if you plan to conduct business online.
Making transactions speedy with an e-signature
In the world of online businesses, speed can give you an advantage over your competitors. Making it easy for customers to buy and transact with you saves a lot of time. Plus, the convenience may encourage repeat business. As a business owner, you may use e-signatures in a variety of contexts, such as:
Sales contracts
Employment contracts
Financing agreements
Noncompete agreements
Leases
To ensure that your e-signatures are legally valid, it's crucial to adhere to the rules specified by the Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (ESIGN). These rules outline the legal use of electronic signatures and records in business transactions.
Risks to signing documents electronically
Despite its efficiency, there are some risks involved in using e-signatures. Conducting business online means you may come across certain threats to your online security, such as:
Fraud through forgery of your signature
Identity theft
Phishing scams
Legal compliance risks
There are risks to using your sensitive information freely. Fortunately, there are specific things you can use to set up safety measures and limited access. Doing so helps ensure the security of your transactions and minimize the risk of others falsifying documents on your behalf.
]]>On Behalf of Lovik & Juhl, PLLC<![CDATA[Do I need property insurance for my dropshipping business?]]>https://www.lovikandjuhl.com/?p=469622023-09-04T12:12:44Z2023-07-26T14:41:24ZYou won’t need it if
Dropshipping involves partnering with suppliers who directly ship products to your customers. Since you do not store or own the products, you do not need physical inventory. This may eliminate the need for commercial property insurance.
You might need it if
Even if you drop-ship your products, you still need a place to fulfill transactions. Even if you work from your home (or a rented property), your homeowners or renters policy won't extend coverage to your office space used for business purposes. That means if a fire, flood or any natural disaster hits your home, your office documents will not be protected. By obtaining a commercial property policy, you secure coverage for your office, supplies and equipment, regardless of their location.
Other insurance you might need
Even if you don't have physical inventory, you might still require other types of business insurance. For example:
General liability insurance: This coverage protects your business from claims related to bodily injury, property damage and advertising mistakes. It can protect you if a customer or third party files a lawsuit against your business due to an issue with the products you sell.
Product liability insurance: If you sell products to customers, product liability insurance can provide protection in case the products cause harm or damage to users.
Cyber liability insurance: Online businesses are susceptible to cyber risks. You might be a victim of data breaches and cyberattacks. Cyber liability insurance can help cover the costs associated with these incidents.
The specific insurance needs for your dropshipping business will depend on various factors. This includes the types of products you sell, the volume of sales and the risks associated with your operations. It is essential to assess your business's unique risks and consult with an insurance professional to determine the appropriate coverage to protect your business effectively.]]>On Behalf of Lovik & Juhl, PLLC<![CDATA[Trade secrets theft and Washington law]]>https://www.lovikandjuhl.com/?p=469612023-07-05T06:09:45Z2023-07-05T06:09:45ZWhat it is
The WUTSA is a law that has resulted in frequent business litigation and that prohibits a wide variety of actions related to trade secrets. These secrets are defined as information that is used by a company to forward their business and is not generally available to the public. The law also protects information that companies treat as secret. Individuals and companies are not allowed to sell these secrets or to acquire them in an illicit manner.
Companies are also not allowed to share material that they either know or should know is a trade secret. According to this law, individuals can share trade secrets via "improper means" or "misappropriation." Using "improper means" is more serious and may lead to more severe penalties. It shows actual malice in stealing secrets and then sharing them in a way that harms the original company involved.
Consequences
There are several remedies provided for by the WUTSA. Injunctive relief is often one of the most effective responses from courts. The injunction orders individuals or companies to stop sharing a particular trade secret. They can be fined or face other severe penalties for violating injunctions.
The WUTSA also allows for fines against companies or individuals for proven violations of the law. Finally, the law provides for attorneys' fees to be awarded in some cases. Hopefully, the threat of injunction and fines will deter the vast majority of parties from harming business operations and slowing down commerce in the state of Washington.]]>On Behalf of Lovik & Juhl, PLLC<![CDATA[Washington state insurance commissioner adopts rule requiring transparency in rate increases]]>https://www.lovikandjuhl.com/?p=469582023-07-03T20:18:44Z2023-07-03T20:18:44Znew rule requiring insurers to explain rate increases. The law affects all property and casualty insurance companies operating in the state that sell private auto and homeowners insurance. This includes insurers selling coverage for condominiums, manufactured homes and renters.
A statement from Kreidler’s office said that the rule was implemented after several meetings with interested parties. Those meetings revealed that some insurers’ rating formulas were so complex that they couldn’t immediately explain premium changes.
Why rate change transparency is important
You might be asking yourself: What does this rule mean to me? Knowing why your insurance premium is increasing might help justify the changes. But the rule can also help you discover if your insurer unfairly increases your rates for discriminatory reasons.
Washington state has laws prohibiting insurers from discriminating against their insureds in the amount of premiums charged. It’s believed that some insurers have used factors such as credit history, ZIP codes and even race to calculate premiums. If Washington’s new transparency rule reveals that your insurer increased your premiums based on discrimination, you could hold them responsible for such an unfair practice.
If you believe your insurer has unfairly increased your premium using discriminatory practices, consider seeking legal counsel before filing a lawsuit. You will need an ally experienced in insurance law to confront a major insurance company in court.]]>On Behalf of Lovik & Juhl, PLLC<![CDATA[Understanding 4 different types of insurance]]>https://www.lovikandjuhl.com/?p=469572023-06-20T04:44:36Z2023-06-20T04:44:36ZDisability insurance
There are two types of disability insurance that provide financial protection for people who can’t work because of injury or illness. Short-term disability insurance provides coverage if you cannot work for three to six months, while long-term disability insurance provides coverage for people who can’t work for six months or longer.
Natural disaster insurance
Unfortunately, there aren’t any insurances that cover every type of natural disaster, which means that you have to purchase different policies based on what kinds of disasters you want to insure yourself against. You can buy insurance policies that protect against earthquakes, floods and other types of natural disasters.
Identity theft insurance
The types of coverage provided by identity theft insurance continue to grow and evolve as insurance law strives to keep up with the ever-changing world of identity theft. Criminals who steal the identity of others use a variety of methods, which leads to approximately 9 million Americans having their identity stolen each year. This type of insurance covers financial loss, some of the costs associated with recovering your identity and other expenses.
Umbrella insurance
Finally, umbrella insurance is a type of insurance that provides coverage for things not covered by other plans. For example, umbrella insurance covers the difference if your homeowner’s insurance fails to pay enough after a catastrophic event.
Insurance is one product that you hope you never have to use. However, knowing about all of your insurance options, including disability, natural disaster, identity theft and umbrella insurance, allows you to better protect yourself financially against multiple types of issues.]]>On Behalf of Lovik & Juhl, PLLC<![CDATA[What are your insurance claim settlement rights in Washington?]]>https://www.lovikandjuhl.com/?p=469562023-06-06T06:53:14Z2023-06-06T06:53:14ZPrompt responses
Washington's insurance law gives providers up to 10 working days to respond to your initial claim upon receiving it, and this communication guideline also applies to all communications thereafter. Providers must also send you the necessary forms and information that you need to continue with your claim.
Fast claim investigations
In most situations, providers only have a maximum of 30 days to finish the investigation process. The time starts upon receipt of your claim. Providers might have more time to investigate if they can’t reasonably finish within 30 days. If the provider needs more time to investigate, then they need to notify you within 15 working days. They must provide the reason for needing more time.
Notification of approval or denial
You must have notification of approval or denial within 15 working days after the provider receives your proof of loss unless the provider uses the full 30 days to perform an investigation. When an insurer denies a claim, insurance law requires that they point out which provision in their policy is the basis for denial. Claim denials must be in writing as well.
Other unfair claim practices
The law protects you from insurers who misrepresent facts or provisions. It's illegal for insurers to deny claims without conducting a fair investigation. Failure to pay claims that insurance policy holders should receive is also against the law.
Knowing your rights as an insurance policy holder in Washington helps protect you from unfair claim practices. Working with a lawyer will also ensure a favorable outcome.]]>On Behalf of Lovik & Juhl, PLLC<![CDATA[What is litigation risk in Washington?]]>https://www.lovikandjuhl.com/?p=469542023-05-23T01:31:40Z2023-05-23T01:31:40ZTypes of litigation risk
Business litigation risk is higher than personal litigation risk because companies have more money. Small businesses have a unique vulnerability as well. Large companies sometimes target small businesses over patent, trademark and copyright concerns to limit competition.
The most obvious types of litigation risk are product defects and accidents on business property. Disruptions in service and loss of service are other factors to consider. A company signing a contract with other businesses opens another door to lawsuits. Even if you follow the contract, the entity or individual on the other end might perceive you as breaking it and start a conflict that you might have to defend yourself against.
Strategies for protecting against litigation
Publicly traded companies set aside part of their budget to handle potential litigation issues. Small businesses may want to do the same after estimating the potential costs of the problems they could face. They could also build relationships with business attorneys to find someone they trust for a possible time of need. You could have a business attorney look over your contract and call them every once in a while to ask questions as a way of building a relationship.
Businesses should organize documents that can be used as a defense to a lawsuit. Easy access to evidence that proves your innocence would reduce your stress while giving you more confidence in your ability to defend your side.
Litigation risk is important to consider regardless of how large your business is. You could do everything right but still find yourself facing a complaint.]]>On Behalf of Lovik & Juhl, PLLC<![CDATA[Understanding how insurance subrogation works]]>https://www.lovikandjuhl.com/?p=469532023-05-10T02:55:17Z2023-05-10T02:55:17ZSubrogation defined
In insurance law, the subrogation process allows one party to act on another's behalf to pursue legal action. For example, if you get into an auto accident and the other party is at fault, your insurance company will pursue the other person's insurer for compensation on your behalf.
How the process works
After a car accident, even if the insurers have not determined which driver was at fault, your insurer may cover your car repairs and medical costs. They get reimbursed by the at-fault party's insurance company for the money they paid you, including any deductible you paid, through the subrogation process.
During subrogation, the insurance companies typically work with each other to determine payment details, and the policyholder has no involvement. However, suppose the person at fault in the accident had no insurance or insufficient insurance to cover the accident victim's costs. In that case, the insurance company may use a subrogation claim directly against the at-fault person to pursue reimbursement.
How subrogation affects the policyholder
Your insurer may still ask you to cover your deductible fee if you are not at fault for a motor vehicle accident before they pay for your car repairs and any medical expenses. By law, the insurance company must seek reimbursement for your deductible as part of their subrogation claim to the other party's insurer. Subsequently, the policyholder should receive a refund for their deductible. However, if you have been deemed partially at fault for the car accident, you will only receive a percentage of your deductible back.
Waiving subrogation
In some cases, you might get asked to waive your right to subrogation. In this case, if you accept the waiver, your insurance company may no longer be able to seek reimbursement on your behalf, even if you are unsatisfied with a settlement offer from the other party. If you were the at-fault party with no insurance, you might need to negotiate a settlement directly with the injured party's insurance company.
Understanding how subrogation works can help you to advocate for yourself whether you are the injured party or the one at fault in an auto accident.]]>On Behalf of Lovik & Juhl, PLLC<![CDATA[How to protect your assets as a business owner in Washington]]>https://www.lovikandjuhl.com/?p=469512023-04-27T20:02:28Z2023-04-27T20:02:28ZStructure your business as an LLC
Which company formation you choose influences how much protection you can get from business litigation. An LLC prevents creditors from acquiring your personal assets. They would only be able to seek repayment from your business assets.
Segregate assets
You shouldn't commingle personal assets with business assets. It could cause your personal property to turn into business property. You should also keep dangerous assets separate from all other types of property and investments, including other dangerous assets. Rental real estate, motor vehicles, tools and equipment are examples of dangerous assets. Safe assets are bank accounts, stocks and bonds.
Set up an irrevocable trust
Irrevocable trusts are usually safe from creditors and lawsuits. If you choose this strategy, be aware that you can't withdraw assets from the trust or revoke it. Be wary about setting up this type of trust when you are in an active lawsuit as well. An exception to irrevocable trusts is when the grantor intentionally sets it up to avoid paying debts.
Store some of your assets in offshore accounts
Offshore accounts are legitimate protection strategies as long as you don't use them for tax evasion or any other illegal activities. Additional potential benefits of offshore accounts are a hedge against inflation, protection against currency fluctuations and diversification of your portfolio.
Asset protection strategies are legal, but you must remember that your intentions still need to be honest. It would be illegal to try to avoid paying back debts or to evade taxes.]]>