At some point, nearly every employer will have an employee report an injury and seek treatment under a workers compensation policy. Every US State has "industrial insurance" or workers compensation laws that define the benefits payable to the injured worker (NRS 616 in Nevada). The benefits afforded to an injured worker can vary from state to state. However, there is one critical concept to which every state agrees: to be covered by workers compensation insurance (or self-insurance) the employee injury or illness must arise out of and in the course and scope of employment.
To understand this concept further, let's examine the meaning of "arise out of and in the course and scope of employment". In simplistic terms this concept dictates that:
Using the "course and scope" rule we can examine each claim and determine if workers compensation coverage might apply:
Remember too that employers are protected by exclusive remedy laws. However, exclusive remedy does not preclude the injured employee from pursuing a claim against a third-party. For example, the electrical employee that fell from the ladder may pursue a defective product case against the ladder manufacturer. The employee that was injured by a slip and fall accident in a restaurant may pursue a premises liability claim. The errant driver on the site seeing excursion may have a valid auto liability claim against another driver. Lastly, the two employees that punched-out their differences may file lawsuits against each other for personal injury.
For more information contact Ryan Dye at: email@example.com
Congratulations to DC Building Group for receiving NAIOP Spotlight’s General Contracting Firm of the Year Award for 2017. The 20th Annual NAIOP Southern Nevada Chapter Spotlight Awards were held on the evening of Saturday, March 4th, 2017 at the Red Rock Casino, Resort & Spa. The guests attire for the evening was based on the Roaring 20s to celebrate the 20th Annual NAIOP Spotlight Awards.
The attendees waited in anticipation until nearly the end of the evening to hear who would be named the General Contracting Firm of the Year. Once the NAIOP Southern Nevada Chapter Spotlight Industry Award Nominees for General Contracting category were listed, the audience waited in suspense with only this prelude hint as the host read: “This firm continues to grow and impress due to their quality of work and level of professionalism.” Before hearing “and the General Contracting Firm of the Year goes to DC Building Group!” Team representatives who accepted the award on behalf of the entire DCBG team were: Shawn Danoski, Gary Siroky, Dave Teator, Charlie Stewart and Jennifer Hall.
Shawn Danoski, CEO of DC Building Group, said, “Winning the NAIOP Spotlight Award for General Contracting Firm of the Year really means a lot because of the timing. Receiving this accolade now from such a high-caliber peer group is a testament to our firm’s successful growth and direction. This award reflects our aim to increase our capacities and recognizes our team for their dedication and solidarity.”
DC Building Group also received multiple Spotlight Merit Awards from NAIOP for these projects: Goodwill Retail Store and Donation Center, Cracker Barrel – North Las Vegas, Guy Fieri’s El Burro Borracho in Rio Hotel and Casino, JS Products Corporate Offices and Distribution Center, M&Ms World Las Vegas Renovation at Showcase Mall, Southern Hills Baptist Church.
After months of a nationwide search, you finally identified the ideal property your client wants to invest in. The property satisfies your client’s wish list representative of the right location, cap rate, tenant, lease terms and the 10 other factors you have no control over.
Following weeks of grueling contract negotiations a purchase agreement for the out-of-state property has finally been executed and contingencies have all been met or waived. Now the only hurdle is wading through the unfamiliar out-of-state closing customs, real estate practices and statutory requirements that can make all the difference between a routine versus nightmarish closing experience.
To avoid the inherent challenges of dealing with out-of -state closers who do not know you or your client, are unaware or even worse, do not care what you’re best practice closing procedures are- your solution is simple: Select your local National Closing Team as your single point of contact. There is no need to re-create a system that works locally when your business is placed with a team that you can trust and rely upon.
What is a National Closing Team?
Fidelity National Title and its family of title insurers is the largest commercial insurer in the United States. Utilizing Fidelity National Title’s local National Closing Office and its family of title insurers is the easiest and quickest way of assuring a phenomenal out-of-state closing experience.
Fidelity National Title | National Closing Specialists
Ron Bloecker, Senior Underwriter
Jennifer Hubbard, Senior Escrow Officer
Tania Box, Senior Title Officer
Chancey White, Commercial Services
Phone: (702) 877-3003
The past year has been remarkable for commercial real estate in Las Vegas. It has seen the noticeable recovery of a market that, less than a decade prior, politicians, industry experts, business owners and analysts believed might never bounce back.
It’s no secret that diversification is the key to growth and a strong economy. It opens doors to opportunities that spur more business. A number of East Coast retailers are starting to see the Las Vegas market as a viable business option, and the proof is in the pudding.
The first indicator of steady growth is that retailers are moving into the valley. There have been many this year, but a few big franchises include: Cracker Barrel, Amazon, Chick-fil-A and Dave & Buster’s.
The growth of the past two years also has affected the tourist and gaming corridor, with the construction of T-Mobile Arena, the potential NFL stadium and the new Park Theater at the Monte Carlo. What was once a 2-mile stretch focused on casinos and gambling is becoming an entertainment district.
The industrial market seems to have had a distinctive and continual effect on the industry, with developers constructing large industrial and warehouse facilities without necessarily having a tenant. That was not feasible even five years ago; it was just too risky.
The current boom is reminiscent of the golden age of real estate, from 2000 to 2004. While we may never again see the kind of heyday building of that time, the current dwindling industrial and retail space in the valley is a sign that we’re heading in the right direction. There’s more demand for space than space available.
The second half of this year has seen an increase in the need and desire for industrial properties. There seems to be significant activity completed and planned for commercial warehousing and industrial space. This industrial boom may be a result of the reinvigorated residential market. People making their home in Las Vegas equates to need for businesses to expand and diversify.
Still, there have been difficulties and setbacks with some projects. Investment in startup projects has been risky business in 2016, as we have seen with the recent suspensions of the Faraday and Alon projects. There also has been substantial lag in the construction process of the Resorts World project.
The coming year promises continued spec development and businesses trying their hand in the valley, including Del Taco, which previously had not committed to any new development since 2006. The chain is slated to bring multiple new stores to the valley.
With business diversification soaring here, the development and spec retail boom is sure to continue well into the next several years, and that’s good for all Nevadans.
Dave Teator is vice president of operations for DC Building Group.
There are too many painful stories about individual and corporate retirement funds facing severe funding deficits due to historically low interest rates on bonds. As a consequence, many fund managers have turned to commercial real estate investments as one of the few assets classes offering attractive risk-adjusted cash flow returns.
While these investments offer yields at a premium to Treasuries and a lower volatility than equities, they do require thoughtful due diligence prior to investment and careful monitoring throughout the investment life. Whether you invest yourself or with a fund manager specializing in commercial real estate, consider the following guidelines to protect your commercial real estate investments and to survive multiple economic cycles.
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Landlords and building owners commonly require tenants to name them as additional insured. The additional insured endorsement, along with the lease indemnity agreement, are designed to protect the building owner from liability claims that result from the tenant’s activities. In recent years, the additional insured endorsement commonly issued to landlords (ISO CG2011) has undergone several revisions. These revisions could limit the scope of coverage afforded to landlords and are important to understand.
The latest version of the ISO CG2011 was issued in 2013 and, as respects the landlord as an additional insured, reads as follows:
If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance:
Whichever is less.
The verbiage added in 2013 is underlined. A careful reading of this revised wording will reveal a few potential issues for landlords and building owners. Under the 2013 form, the landlord is afforded coverage no broader that what is required by contract (the lease). And, the limit of coverage available to the landlord is no more than what is required in the lease, even if the tenant carries higher limits.
We recommend several best practices to help building owners protect themselves from liability claims that occur on the property:
The 2013 revisions to the landlord additional insured endorsement only underscore the importance of carefully drafting lease documents, especially the indemnity clause and insurance requirements.
Link to CG2011 04/13
The initial excitement for the new tenant that has gone through all the processes of negotiating their lease, getting their dream design down on paper ready to be constructed, selected their contractor to complete the improvements, and purchased all their furnishings and equipment ready to open their doors; can be quickly put off when it comes to ensuring proper utility service is set up for their new facility.
It is often not thought of during the lease negotiation process; however a tenant improvement can present revisions needed to utility services such as power, gas and potentially water. Each of these utility companies in Las Vegas and the surrounding communities have very specific processes to establishing new and/or revised services to commercial facilities, and these requirements are rarely conveyed during lease negotiation processes, and subsequently new tenants are caught off guard with the cost and time it takes to establish new and/or revised service.
If there is one recommendation that could be provided to prospective owners, developers, etc. would be to engage all needed utility services, i.e. Nevada Energy, Southwest Gas, Las Vegas Valley Water District, Southern Nevada Waste Water District, Cox Cable, CenturyLink and, if applicable, Southern Nevada Health District.
There are specialty consulting firms within the surrounding Las Vegas area that can assist with inception of utility services needed for commercial projects, but barring the expense to utilize one of these firms, it is recommended to engage the needed utility service organizations as soon as possible once your final lease negotiations are completed, to avoid the more common than not pitfall of being ready to open your newest dream facility, but be held back because you do not have proper utility service established.
By: Guy Gugino, Vice President / Business Development Officer.
When making the decision to get out of the rent-paying game and become a building owner, the first step is to decide if you wish to purchase an existing building or start from scratch and build your own. It’s not an easy decision. However, if you can't find an existing facility that meets your needs in the location you desire, the alternative is to build.
The first step you should take is to enlist the help and advice of experts in the construction and finance field. There is a definite timeline to follow and a few precautions you should take to protect yourself and make the entire process go as smoothly as possible. Consider these helpful hints:
Financing: Before you start scouting for a piece of property or an available lot for your business, find out what size construction loan you can qualify for and any restrictions or limitations you may have to abide by. With that information in hand, it's easier to find the land you need before making an offer. Never make any commitments to purchase and build or close escrow before you have solidified your business financing needs.
A common reason that small business owners cite for not building or owning their property is a lack of funds. In addition to conventional loan programs, U.S. Small Business Administration (SBA) Guaranteed Loans can help address that issue. SBA loans can provide high-leverage financing with low down payments for qualified borrowers. These loans can be used for a variety of purposes, including real estate purchases and new construction.
An additional benefit of SBA loan products is that a small business owner can get one loan to cover the costs of building, equipment purchases and working capital, with all the fees and costs determined and disclosed prior to closing. This means you'll only have to sign one set of documents and attend one closing.
Permits and Zoning Requirements: Once you find a spot to build, check the zoning restrictions and the permitting process. If it is properly zoned for your needs and building permits are attainable, it's now safe to make an offer. Remember, it can take up to three months to secure the necessary building permits. Make sure the closing is contingent on proper zoning and that any rezoning or remapping is complete before you sign on the dotted line. Your broker should write this into the deal, and if they don't or refuse to, look for a new broker. It's that important.
Architects: With financing information in hand, working with an architect becomes much easier. You'll know exactly how much money that’s available for your business to spend, and the architect will have guidelines and be able to stay on budget. It’s important to note that an architect may need four to eight weeks to complete the plans, so budget your time accordingly.
Contractors: Be sure to take time to identify and hire the best contractor you can afford and get several bids on the project before making a decision. Don’t make your decision based solely on the lowest bid. As part of your review process, check references, financial statements, proof of liability and worker's compensation insurance. In addition, contact the state contractor's licensing board to see if any complaints have been filed or actions taken against the contractors you’re considering. Finally, make sure your contractor and architect meet each other early on so they’re in agreement on the timeline, budget and any other special needs or circumstances.
Construction projects can be stressful and time consuming, yet with a little patience and prudence, building your own facility can be one of the wisest decisions you can make. Working with competent professionals will go a long way toward making your project a rewarding and profitable experience.
Most business owners understand the importance of securing adequate property insurance. An often overlooked companion to your property insurance, and potentially just as important, is business income coverage. More specifically, the loss of your business income due to a covered property loss.
Imagine for a moment that your business suffers a terrible fire loss. You are forced to cease operations for several months while building repairs are made and new inventory, furniture, and fixtures are secured. During this time you are unable to sell product or provide service to customers. Revenue falls to essentially zero, but you have continuing expenses that must be paid such as rent, mortgage, equipment leases, utilities, and payroll.
Business income coverage provides for this loss of revenue and continuing expenses. Most policies define business income as “net income (net profit or loss before income taxes) that would have been earned or incurred and continuing normal operating expenses including payroll” (ISO CP0003). This verbiage will vary slightly between policy forms, but the intent is to provide coverage for your lost net income and pay your continuing expenses, including payroll for owners, managers, and employees.
In addition, some business income policy forms will pay for “extra expenses” that help to reduce the amount of lost revenue, or the duration of your claim. Examples of extra expenses include leasing a temporary location, temporary furniture and computers, and expedited shipping of inventory.
Please take a moment to review your business insurance portfolio and see if business income coverage is included. Talk with your agent about the specific terms of your coverage, and any enhancements that are available. Your business insurance is incomplete without business income coverage.
If you have further questions, call Ryan Dye at 702-508-9253.
Look for new posts later this month from a variety of authors.