Four years ago when we hatched the idea of forming a new chamber of commerce for the City of Weston, I could have never dreamed how successful this venture would become. But thanks to the hard work of our founders and our association with the Greater Ft. Lauderdale Chamber of Commerce, we have grown to 450 members and established ourselves as THE premiere business networking organization in the city!

As one of three initial founders of this incredible organization, Chairman, and Director since inception, I am so proud to be part of Weston’s history and the formation of something I am sure will continue to be the major force behind Weston’s business community for years to come.

I began my tenure as Chairman on January 6th, and we immediately kicked off the year at Weston Hills Country Club on January 11th with a full main dining room of more than 150 people. We then helped kick off “Fondue It” with a great outdoor party on the back deck for more than 100 business folks. The food was outstanding and the event was great.

In February we went to Cooper City where we helped launch 1st United Bank and once again a packed house. This was special since we were staging an event outside of Weston, but that did not seem to hold our members back. Again in February we held our new member reception at The Bonaventure Golf & Country Club where we filled the ball room with all of our new members.

In March we sponsored the incredible outdoor concert at Weston Regional Park, put on by The Rotary Club of Weston. The concert attracted more than 4,000 people and featured RPM, (Rock and Pop Masters), a group comprised of big named Rock legends, which included, Orleans, Edgar Winter, Jimi Jamison, formerly of Survivor, Joe Lynn Turner of Deep Purple and Rainbow, 70’s legend Robbie Dupree, and John Cafferty and Michael Antunes, “Tunes,” of John Cafferty and the Beaver Brown Band. Also in March, Erin and Bill Londos, owners of Anna Bella Boutique welcomed chamber members and hosted a very unique business after hours event.

April brought another packed house at our quarterly breakfast at Weston Hills Country Club, sponsored by Advanced Cable Communications. Rick Case Luxe Collection sponsored our April after hours, attracting 150 + members.

May took us to Cypress Bay High School where we got a great inside peak at one of Weston’s great high schools. On to Pangaea Night Club at the Hard Rock Hotel in June for yet one more incredible evening. This event attracted over 125 members.

Next up, the new and stunning Hyatt Regency Bonaventure Conference Center & Spa for our July breakfast where our speaker was Senator Nan Rich. Our special guests included The Weston Fury soccer team.

The Courtyard Marriott is always a favorite in Weston and there we were again, also in July, for another Business after Hours with great food and networking. Thank you to Alan Pinado and his staff for their hospitality. August brought us to Citibank in Town Center. Thank you to Orestes Porras and staff for hosting the event.

Now came September and of course A Taste of Weston again, which has become a staple here in Weston. To no surprise, The Weston Business Chamber set an attendance record of more than 600 people. This has become the premier event of Weston each fall. We were able to donate more than $11,000 in cash to two well-known charities this year, Kids in Distress and The Children’s Home Society. Again this was held at The Hyatt Regency Bonaventure Conference Center & Spa.

October brought another breakfast at Weston Hills Country Club with another standing room only group sponsored by The South Florida Sun-Sentinel, which included the entire Editorial Board and featured Broward County Supervisor of Elections Dr. Brenda Snipes.

November included a business after hours at the Grape Merchant in Town Center.

This event attracted well over 110 members and guests. Thank you to Michelle Lambros, owner of The Grape Merchant for hosting our event.

Finally, I must tell you about my last “Business After Hours”event as your Chairman in December, The Mid Town Athletic Club (formerly the Weston Athletic Club). I was amazed at the number of members that attended, which was estimated at 400 plus. We raised $ 1,000 in raffle ticket sales for “The Circle of Love” Foundation, (Kids helping Kids with Cancer). Thank you to all who participated and donated prizes for this raffle. A special thank you to Steve Strumpf and his staff of The Mid Town Athletic Club.

Along the way we held Biz Perks events, Ribbon Cuttings and seminars always to packed houses including, American Intercontinental University, Great Florida Bank, Citibank, POC Buffet and Radiance Medspa of Weston. I also want to thank the staff and volunteers at the Greater Ft. Lauderdale Chamber for all of their support this year.

In closing, I must tell you that this has been the experience of my life as the leader of this great organization and I am extremely proud to have had the honor to create and lead such a wonderful group of dedicated business leaders.

Lawyers today are increasingly becoming the target of allegations of malpractice like all other aspects of society. Imagine, You’re a legal professional faced with a lawsuit.

Clients, regulatory agencies, corporate shareholders, even third-parties can file lawsuits accusing lawyers and their firms of all types of professional negligence.

This can be the result of an honest mistake, at times it is a result of unreasonable client expectations,misunderstanding or a failure to communicate, and often the claim is false, frivolous and at times fraudulent.

Whatever the circumstances that lead to a claim of legal malpractice, the reality is that such claims have raised significantly over the past several years in terms of sheer numbers and financial magnitude. Even when the client is completely satisfied with the quality of the representation, lawyers and law firms can find themselves named as defendants in shareholder lawsuits, class actions, and those actions brought by government agencies, alleging some breach of duty to the public.

Regardless of the size of your firm, it is critical that you protect yourself, your practice, and your assets, with a properly underwritten policy of professional liability insurance. The best way to be certain that you have the broadest possible coverage tailored specifically for the nature of your practice, at the most competitive premium, is to seek out an experienced, independent insurance broker that presents your firm with several choices each renewal. You deserve great protection even if you have been accused of less than perfect practice.

Most Agents have access to many different “A” rated insurance carriers that are aggressively seeking to write lawyers professional liability. All carriers have appetites for certain types of law firm risks and as such it is of great help in choosing the right insurance professional to help you navigate the insurance gauntlet.

Primary limits of liability are available from $100,000 to as much as several Million. Some policies include coverage for expenses in connection with disciplinary actions. Claims expenses are sometimes included within the limits of liability, though a number of carriers will offer claims expense outside of limits.

Generally, small to midsize firms often select a deductible of between $1,000-$10,000, and carriers vary in terms of whether claims costs are charged against the deductible. Obviously, all of these issues will impact the premium.

The key advantage that I offer my numerous law firm clients is the fact that as an independent insurance broker, I am not limited to a single insurance company. or insurance program. While some association endorsed professional liability programs often provide coverage at competitive prices, you should never assume that they provide the best coverage at that price level.

Programs such as these are limited in their ability to actually accept your type of firm or practice which means that the underwriters’ flexibility is limited, since each policy must be viewed as part of the entire program, rather than priced entirely on its own.

If the focus of your practice tends to be in areas of high liability potential, such as IPO’s, financial institutions, securities, patent, intellectual property, personal injury or domestic law, most agents will clearly understand which underwriters and carriers are most comfortable with these practices.

Have you just passed the Bar exam, merged your firm, dissolved a partnership, your of counsel, part time, experienced some significant claims problems and so on. Some underwriters are nervous about these circumstances while others are more comfortable with this risk.

There are many very aggressive legal professional liability carriers looking to take on good law firm risks and your independent agent should hold the key to your success in finding that protection. Don’t settle but rather explore the options that are now available to law firms.

Just about any company can feel the crippling effects of an act of Employee Dishonesty. You should be able to trust your employees. But the fact is one third of all employees admitted stealing from employers during the previous year. This problem is so widespread, the U.S. Chamber of Commerce estimates the annual cost of employee theft at $40 billion. Having to make good on the theft or misuse of Company property can cause financial hardship. Unlike fire or auto losses, a loss due to Employee Dishonesty can accumulate over time and reach devastating proportions before being discovered.

Employee theft ranks as one of the most under-reported crimes in the United States today. Many business owners victimized by employee dishonesty suffer severe financial damage and, in the worst cases, end up in bankruptcy. While the majority of dishonest acts are one-time or occasional thefts, long-term, ongoing schemes by one or more “trusted” employees cause most large losses.

Unlike losses due to burglary and robbery, losses due to employee dishonesty are excluded under all commercial property policies. Unfortunately, most business owners who choose not to be suspicious of the people working for them often overlook employee dishonesty insurance. This is a regrettable situation, as your most trusted employees are in the best position to use their knowledge of your business operations to steal or embezzle from you.

While no employer can completely eliminate the risk of employee dishonesty, there are several steps business owners can take to help minimize the risks. For example, checks should be stamped “for deposit only” immediately upon receipt and invoices should always be stamped “paid” to circumvent the chances of paying the same invoice twice. If one of your employees maintains your books, be sure that bank accounts are reconciled by someone other than the person who handles deposits and withdrawals. You might also consider instituting an internal audit system for all financial records and have an independent accountant perform a full audit annually.

Employee Dishonesty Insurance helps compensate the Company for Loss due to the acts of Employee Dishonesty of an Employee working alone or in collusion with others. Cover yourself, just in case..

You never know when employee theft can deliver a striking blow to your business. Small companies can be especially hard hit by theft and embezzlement, because they can’t afford extensive safeguards and aren’t large enough to absorb the losses.

An employee dishonesty crime coverage form provides coverage for loss of, and loss from damage to, money, securities and property other than money and securities caused directly by employee dishonesty. The Dishonesty Bond:

• Protects you and your customers from loss incurred by dishonest acts of your employees.
• Covers you against acts by all company employees, part-time and full-time.
• Can be obtained easily and inexpensively.
• No matter how large or small your business may be, securing adequate coverage is essential for protecting your business and your peace of mind.

As most of you know from following the extensive media coverage on how hundreds of thousands of Florida insurance consumers have suffered from “windstorm deductible” clauses, I offer the following update as of mid Decembers legislative sessions.

It appears the Florida House and Senate have agreed on what to do with the double windstorm deductible issue facing the State of Florida policyholders since this past storm seasons shocking end. Lawmakers are expected to appropriate up to $150 million from the Florida Hurricane Catastrophe Fund to reimburse residential policyholders with damage from two or more hurricanes that suffered more than one deductible. Here are a few of the tentative points as of mid December as I write this article, which are subject to change prior to being voted into law.

For residential policies issued effective May 1 2005 or after, windstorm deductibles will apply on an annual basis to all hurricanes occurring during the same calendar year. Insurers may apply the “other perils” deductible such as fire or other types of property losses other than windstorm, or the remaining amount of the hurricane deductible; whichever is greater, to subsequent hurricane losses.

Policyholders must report claims below their deductible and maintain records or receipts in order to apply the loss to a subsequent storm. If a policyholder has a hurricane loss and then changes the hurricane deductible, the highest deductible will apply. Again, these requirements apply to policies issued or renewed on or after May 1 2005.

Under these two bills things are pretty well set, as outlined below:

• A policyholder must have damage in excess of the full amount of one deductible (which may be met by adding two or more claims below the deductible).

• There is a maximum reimbursement of $10,000 per policy, or $20,000 per policy if damaged by three or more hurricanes.

• There is a maximum reimbursement for a condominium association policy up to $3,000 per unit.

• A $100 deductible will be applied to any reimbursement.

• Applications for reimbursement must be filed with the Department Of Insurance by March 1, 2005, including such information as the Department requires including documentation from the insurer. At this point it is unknown when reimbursement forms will be ready and how to request one.

• Insurers must mail notice of the reimbursement procedures to all appropriate policyholders.

• If funding is inadequate to pay everyone in full, the Department must first pay policyholders who received claims payments for two or more hurricanes for which each payment was reduced by the full amount of the deductible; then, pay other eligible policyholders on a pro rata basis until the $150 million is exhausted from the Catastrophe Fund.

If you have electricity, you need Boiler & Machinery coverage. Property policies don’t cover certain types of losses such as those resulting from electrical arcing, mechanical breakdown, or a ruptured boiler.

Equipment breakdown insurance, commonly referred to as boiler and machinery insurance covers the physical and financial damage that can result from an equipment breakdown. Equipment breakdown insurance often pays for direct property loss meaning the cost to repair or replace damaged equipment, lost business income and costs for temporary replacement equipment, other expenses incurred to limit the loss or speed restoration of operations, the lost value of spoiled products or materials as well as business recovery expenses.

Most property policies exclude the very losses that equipment breakdown insurance is designed to cover.

These special policies provide the following additional layers of coverage:
• Mechanical breakdown
• Electrical arcing
• Artificially generated electrical currents
• Centrifugal force
• Boiler overheating, cracking, bulging, sagging
• Bulging, cracking or collapse of pressure vessels

Broad definition of equipment, including the following:
• Boilers, pressure vessels, water heaters
• Electrical distribution systems
• Heating and cooling systems
• Refrigeration (including lost refrigerant)
• Production equipment
• Office equipment
• Computer technology
• Communications systems, including phone and voice-mail systems
• Security and fire detection systems
• Ovens, stoves, furnaces
• Elevators, escalators, cranes, hoists and lifts
• Cash registers and inventory control systems
• Diagnostic equipment

Keep in mind that mechanical breakdown coverage encompasses much more than just boilers and pressure vessels. It also can include refrigeration equipment, air conditioning equipment, various types of piping, turbines, engines, pumps, compressors, blowers, gearing, shafting, electric motors, generators, transformers and assorted other types of mechanical and electrical equipment.

Warranties and service contracts are important but they don’t cover many of the common causes of equipment breakdowns. Maintenance contracts cover routine service such as cleaning or adjustment. But they don’t pay for damage due to operator error, the cause of over 35% of equipment breakdowns. Equipment breakdown insurance does. Warranties and maintenance contracts also don’t pay for business interruption or income loss resulting from breakdown. Nor do they pay for spoilage, damage to surrounding property or extra expenses to restore operations. Equipment breakdown insurance can cover all these risks.

You don’t have to own a building to face an equipment breakdown risk. If you are a tenant you still have equipment such as phone systems, fax machines, computers, air conditioners and an electrical system. Your lease may also make you responsible for other equipment that services your premises. Lastly, your operations and income are dependent upon equipment of others. If the electrical, heating or cooling system of your landlord broke down, the interruption of those services could impact you. The right equipment breakdown coverage can protect you in this time of need.

Business and property owners who dispute the need for business income coverage also known as business interruption or loss of rents can learn a valuable lesson from Hurricanes Charley, Frances, & Ivan although this valuable endorsement will only apply to losses that first can jump two major hurdles.

Many business owners may have been impacted by one of these storms, and insurance generally will not cover power outages caused by failure of a utility, so companies that have been forced to close due to power outages cannot claim losses because they could not open for business.

Business interruption insurance typically applies only to businesses that have suffered physical damage from the storm, and been forced to close due to the damage. Also, a great majority of policies in Florida include substantial deductibles in the event of wind or hail damage, which can range from 2 to 10 percent of insured values, not a percentage of the damage. Do the math and you can see that the amount of damage that must first be sustained is very significant. In some cases the deductible can also be a waiting period of up to 72 hours.

Companies can buy coverage that covers losses due to power outages after the business has suffered physical damage and they can also buy coverage for interruption due to action by a civil authority that forces them to shut down. But, in reality, few companies choose to purchase such additional insurance, as the cost of insuring for them would be a major additional expense for business owners.

Small business owners, usually with 20 employees or less, may qualify for a “business owners policy” that does include some business interruption coverage in addition to the regular business coverage for fire and liability. While it still may not cover power outages, if the business suffers physical damage it will provide salaries for key employees and coverage for actual lost net income for up to a year. Deductibles do apply as stated above.

The best advice I can pass on is to discuss your specific coverage with you own agent now. The time to review your insurance plan is far in advance of any potential loss.

The Department of Financial Services has issued a press release stating that workers compensation carriers & self-insured plans were fined a minimum of $875,000 for various violations. 31 workers compensation coverage providers were fined based on the results of audits completed during the past fiscal year. The audits revealed that the providers failed to fully comply with Florida law in administering workers compensation benefits to injured workers. Florida law requires carriers to promptly pay injured workers and medical providers in 95 percent of total cases in order to avoid penalties.

Insurance companies and self-insured plans are judged under statutory standards related to:
• Timely payments to injured workers
• Timely payment of bills to medical providers
• Timely filings of notice of injury reports to the Department of Financial Services

Some of the biggest offenders were as follows:

Travelers Indemnity – $229,000
Lumbermans Mutual – $80,000
Liberty Mutual – $64,000
Twin City – $49,000
Associated Ind – $115,000
Zurich American – $56,000
Zenith Ins Co – $21,000
Clarendon Ins Co – $28,000
First Commercial – $24,000
Ins Co Of Penn – $22,000
State Farm – $17,000
Fl Hospitality – $16,000

If you are an injured employee, your benefit check, which is paid bi-weekly, should be 66 2/3 percent of your average weekly wage. If you were injured before October 1, 2003, this amount is calculated by using wages earned during the 91-day period immediately preceding the date of your injury, not to exceed the state limit. If you worked less than 90% of the 91day period, the wages of a similar employee in the same employment who has worked the whole of the 91-day period or your full-time weekly wage may be used. If you were injured on or after October 1, 2003 your average weekly wage is calculated using wages earned 13 weeks prior to your injury, not counting the week in which you were injured.

In addition, if you worked less than 75% of the 13 week period, a similar employee in the same employment who has worked 75% of the 13-week period or your full time weekly wage shall be used. Call the insurance company and ask for the adjuster or claims representative if you still have questions or if your checks have stopped, call the EAO at (800) 342-1741 or e-mail wceao@dfs.state.fl.us.

Due to the current market situation regarding workers compensation availability in the State of Florida, many business owners find their current work comp coverage being cancelled and have been faced with the option of purchasing alternative coverage through the Florida Work Comp JUA which is an accessible fund of last resort.

Recently that fund announced an incredible shortfall of upwards of 35 million dollars due to claims uncovered by paid premiums which puts each and every policy holder in a position of being assessed their proportionate share to make up this deficit regardless of individual claim results.

Senate bill 2270 which has come from the Committee on Banking & Insurance as well as House Bill 1251 have been proposed to significantly revise the rules regarding the treatment of this deficit allowing for a one time appropriation to cover the existing negative balance in the fund so many business owners would not have to bail out the JUA. These bills also restructure the plan to allow for more equitable rates, which would reflect the good safety records of responsible employers.

As a business owner purchasing work comp coverage here in Florida you may have a choice to avoid allowing your coverage to be placed in the JUA and it would be advisable to elect other coverage if your Agent allows you that option. Be sure to ask your Agent if they can provide your company with any other choices and if you find that you have already been placed in the JUA, request other proposals at once. There are now a few new programs aimed at those employers who have demonstrated good safety records over a 1-3 year period but find themselves in this pool due to lack of alternative markets available to the agent.

The goal of your company should be to obtain coverage in a standard admitted Florida insurer , not in a self insured fund or the Florida JUA. If you are unsure as to the status of your current carrier or fund you can obtain financial ratings at www.ambest.com or by visiting the Florida Department of Financial Services at http://www.fldfs.com.

Prior legislation dictated the responsibility of the unit owner as well as the master association with regard to who is responsible for what in the event of damage or other loss to the structure of the condominium unit. Thanks to recent legislation contained in statute 718.111 this is no longer a mystery as the new law applies to each and every association across the state regardless of its individual declarations. This takes effect on or after January 1 2004.

The new law clearly defines how the burden of loss will be assigned in the event that it occurs to condominium property outside of the unit, condominium property located inside the units as was originally installed, or replaced with like kind and quality as called for in the original plans of the association at the time the unit was conveyed to the unit owner , and any portions of the condominium property defined by the declarations which may have called for these items to be covered by master association coverage.

The new law clearly dictates that the following items are now the full responsibility of the individual unit owner and now excluded by the master policy:

Flooring, walls, ceilings, electrical fixtures, appliances, ac or heating units, water heaters & filters, countertops & cabinets, all window treatments, and any air compressors that service the individual unit owner regardless of whether they are located inside or outside the unit.

It is imperative that each condominium association stresses to their unit owners the need to purchase individual coverage to protect their own investments and avoid unwanted and needless conflict in the event of a loss to any part of the condominium. Leave the battle to the insurance carriers and they will sort out the responsibility to indemnify for a loss between them.

If you are a unit owner, please call your agent right away and request a condominium unit owner’s policy. If you are part of an association’s board of directors, advise your unit owners of this important change in the state statute at once.

Let me begin by stating that you should not feel personably responsible if you have recently received notification of non renewal from your insurance carrier. Most all carriers use detailed statistics compiled over the last several years to determine acceptability of risk in any given geographic location or class of business, and thus feel they have done their “due diligence” in determining what factors will provide the best underwriting results for their company in today’s environment.

Factors used in determining a current acceptable profile may include geographic area, proximity to catastrophic elements like wind and flood, quality of construction, willingness to abide by loss control recommendations, prior loss history & results of the same class of business, and specific financial stability, and availability of reinsurance for this type of risk.

Choices available to most insurers are limited once the above data is compiled and evaluated and include some of the following: File for major rate increases which are sure to be unpopular with both consumers as well as insurance regulators, lose financial ratings established by companies that report financial stability grades such as AM Best, or simply non renew mass numbers of policies in areas causing the potential financial burden. Unfortunately, the latter choice has become most common in today’s market climate.

Some of the above factors used to determine long term suitability cannot be made palatable by individual policy holders, however other risk factors can be improved to make you more attractive as a policy holder.

Some suggestions include: never submit a claim for a minor first party loss, but rather understand that you have a long term relationship with your insurer, always be receptive to ideas and recommendations made by an insurance company loss control representative, report all third party loss incidents to your carrier immediately, and include as much documentation regarding the incident as possible to your insurer, be sure that you have made your environment safe and free from all possible foreseeable loss, and in my opinion, value long term relationships with your carrier and agent regardless of any sudden current incentive to switch coverage.