Skip to main content
search
Monthly Archives

June 2013

Jun 01
Love0

EMPLOYMENT PRACTICES RISKS: REALITY CHECK

By Your Employee Matters

I just finished listening to an interesting podcast by the Freakonomics authors about the risks that gun use presents. For example, they indicated that the odds of a gun causing a person’s death are about 1 in 10,000, while the chances of a backyard swimming pool causing a death are some 100 times greater. Does this mean that we should focus on swimming pool control and forget about gun violence? Although I doubt that anyone would suggest this, it does give food for thought.

For the past dozen years, I’ve been in a catbird seat observing the incident of employment practices liability exposures and lawsuits. My conclusion: Employee Liability Practices Insurance cannot cover the major personnel practice exposures facing businesses. For example, there’s no risk mitigation for making poor hires, fostering low productivity, triggering high turnover, or failing to have workers play like a team. The frequency of such exposures, and their expense, far exceed those associated with employee lawsuits.

Let me share another statistic. In 2012 the U.S. had one of the worst years ever for mass shootings, with approximately 700 fatalities (four times the annual average toll). As you might expect, these sensational and painful cases grabbed plenty of headlines. However, in the same year, roughly 20,000 Americans committed suicide using guns, killing some 11,000 other people in the process – and garnering little, if any, media attention.

The same thing holds true for workplace risk exposures. How many articles are you going to read about the impact of bad hires or productivity left on the table every day? Where’s the drama in that? However, a, juicy lawsuit in which a sexual harassment claimant gets a multi-million dollar verdict will get plenty of press.

Likewise, more than half of the discussions at any HR conference will involve compliance exposures. Meanwhile, the greatest risk to your company’s survival has little or nothing to do with compliance litigation. In my 30 years as an attorney, I’ve seen only a handful of small businesses go under because of employee lawsuits – and hundreds of companies of all sizes go out of business because of poor management practices.

As with the gun/swimming pool example, we need to understand the relative probabilities of the various risks employers face.

None of us need the horror of mass shootings or nasty employee lawsuits. These events make for good press (as they say, “if it bleeds, it leads.”) When we run 75 mph as a society, it’s hard for us to connect without doing so through a mass pity party. The media taps into this social reality on a daily basis with sensational headlines and lead stories, making it all too easy to divert business owners and managers from focusing on significant employment risk management issues.

Food for thought…

Jun 01
Love0

SAFETY BONUS PROGRAMS: PROS AND CONS

By Your Employee Matters

I recently received this hotline inquiry:

Q: We have a safety bonus program that gives a $25 gift card each quarter for all groups that have no lost-time accidents, and at the end of the calendar year provides them with a share in an $8,000 bonus check. In researching this, I found that OSHA has stated that safety bonus programs which give monetary rewards to employees for no-lost time accidents can be seen as creating incentives to not report accidents or to pressure fellow employees not to do so. However, I read in a SHRM article that the Secretary of Labor stated that there would not be a fine for keeping such programs. Should we stop our incentive program it or leave it as is and wait for the DOL to prohibit it?

A: We’ve seen this memo from OSHA on HR That Works. Incentives always have their shadow side. If management makes it clear that they want injuries reported, the next step is to approach your employees and ask how the company can use these incentives in a way that does not encourage non-reporting? They might well have some better ideas than what you’re using. There’s no law prohibiting safety incentives – just concerns about possible negative results from using them.

Jun 01
Love0

EDITOR’S COLUMN: HOW MANY BAD JOKES DOES IT TAKE TO GET YOU FIRED?

By Your Employee Matters

I recently reported on a California case in which a manager was fired partly because he and his buddies would tell off-color jokes after work in one guy’s office, out of the earshot of others. A female attorney who was investigating a claim brought by a poorly performing employee felt that such conduct violated the company’s sexual harassment policies, even though it had nothing to do with the claim being filed.

I say, only in America!

I realize that many people today are hypersensitive to finding their rights violated. The complaining employee in this case seemed to be such a person. If, for some reason, someone feels ostracized by society or the demographics of the company where they work, they will constantly be filtering events to show that others are discriminatory and insensitive. Of course, at the family picnic next week, this “offended” employee will be laughing when their uncle tells the same jokes they found so offensive in the workplace.

Today’s workplace has changed. Mad Men is a period piece. Whether you like the great cleansing of the American workplace or not, it’s reality. So, if you want to give an employer an excuse to fire you, tell some off-color jokes on the job – or you might realize that’s probably not worth it and tell them outside the workplace. Things have gotten to the point that Prairie Home Companion jokes can be deemed offensive when uttered in the workplace. Are we so stressed that we’ve lost all sense of humor?

I’ll leave you with a safe joke my 11-year old told me that you can share in all sorts of company: “What did the green grape say to the purple grape?” Answer: “You gotta breathe, man!” As I see it, there are too many hyper-sensitive folks in the workplace that could do some breathing as well.

Jun 01
Love0

FIVE GUIDELINES FOR TALKING ABOUT STRESS

By Life and Health

Although discussing stress with health care providers plays a key role in helping us stay healthy, many people aren’t doing this, according to a recent study from the American Psychological Association (APA) Dr. David Ballard, APA Assistant Executive Director for Marketing and Business Development, and Citrin Consulting President Richard Citrin offer these suggestions to help you have this conversations with your physician.

  1. Think like a doctor. Physicians are trained to diagnose symptoms. People dealing with stress often experience symptoms such as trouble sleeping or more frequent headaches.
  2. Prepare a list of specific list of symptoms and concerns, For example, telling your doctor, “We’ve picked up a lot of new clients at work,” or “My husband is travelling a lot,” can help focus on the source of your stress.
  3. Reframe your symptoms. Describe how other people in your life might talk about the stress you face. Rather than saying, “Here’s what’s going on with me,” telling the doctor, “My spouse would say this is happening,” can provide a valuable perception.
  4. Show honest emotion. Some physicians might believe stress is a mental health issue that they can’t fix easily. Sharing your concerns openly can often elicit the doctor’s empathy.
  5. Don’t rely solely on physicians. Psychologists, social workers, ministers, or rabbis are probably better suited than doctors to listen to your concerns about stress. If your situation is serious enough, they will be able to refer you to the right health care professional or recommend that you see your own physician.
Jun 01
Love0

TERM LIFE INSURANCE: EASY RIDERS

By Life and Health

Everyone knows that Life insurance helps provide financial protection for families and loved ones in case of death. However, you might not know that a number of “riders,” either included in most Term Life policies, or inexpensive to add, can provide additional benefits.

Accelerated Death Benefit (ADB). For obvious reasons, Term Life coverage doesn’t directly benefit the policyholder. If you become terminally ill, you can help cover medical bills by tapping into a portion of the policy benefit through ADB.other related expenses.

Conversion. Term life insurance covers your death for a predetermined amount of payments and a fixed period. This option allows you to convert the policy to Permanent Life insurance before a set number of years or a certain age. Because the premium is based on the original policy date, if your health declines after this date, you won’t have to pay higher premiums for converting the policy.

Term Life policies usually include these riders free of charge. Two other common options add good value for a nominal premium surcharge.

Accidental Death Benefit

This rider will raise the policy payout significantly – in many cases doubling the base coverage –to your beneficiary(ies) if you die from an accident or injury rather than natural causes or disease. Policyholders often choose this option to ease the heavy financial and emotional toll of an accidental or unexpected death on their family.

Child Rider

It’s the last thing any parent wants to think about. However, in case a child should die, this option adds a few thousand dollars of coverage to help pay funeral expenses.

You can choose (and pay for) a variety of other riders to customize your Life policy. As always, we’re happy to offer our advice.

Jun 01
Love0

WHAT HEALTH REFORM MEANS IF YOU’RE ALREADY INSURED

By Life and Health

Whether you have Health insurance through your employer or you’re self-employed and buy it on your own, the Affordable Health Care Act (ACA) will impact you starting next year – when almost everyone will have to have some form of coverage. As of October 1, small businesses and individuals can start enrolling in 2014 Health plans offered through government-run state health exchanges (“Health insurance marketplaces”).

If you work for a major corporation, your coverage probably won’t change that much. However, the ACA will require businesses with 50 to 100 full-time employees to shop on state exchanges, or pay a penalty, which will let them offer their workers more Health plan choices and lower prices (Companies with fewer than 50 employees will be exempt from this requirement).

Businesses can also give workers subsidies to purchase their own policies. If your employer doesn’t offer a Health plan, and won’t be doing so next year, you’ll be able to buy coverage through your state exchange.

If you’re self-employed and already have Health insurance, you’ll also be able to shop through the state exchange; or, if you like your current policy, you can keep coverage.

Depending on your earnings, you might experience major sticker shock. People who earn up to 400% of the poverty level can receive a government subsidy to help offset health premiums. However, if you earn more than this, rates will probably increase significantly – not to mention the skyrocketing costs of medical care!

Health care premiums for individuals will depend on a number of factors, including: 1) an increase in mandatory benefits; 2) abolition of coverage exclusions based on “pre-existing conditions”; and 3) guaranteed renewal. Our Health insurance specialists can help you find the plan that’s best suited to your needs – and your pocketbook.

Jun 01
Love0

HOW MUCH LIFE INSURANCE DO YOU NEED?

By Life and Health

The answer depends on your financial situation. These guidelines can help you review your income, calculate annual expense, and assess the needs of your family:

  • Avoid cut-and-dried formulas and calculators. Although these can help provide a baseline amount, most fail to take your individual situation into account. For example, you’ll need more insurance if you have a large family and several beneficiaries, children who will need college expenses, or high mortgage payments.
  • Adjust your current earnings for rising expenses and higher prices. Buying Life insurance to replace future earnings doesn’t factor in outlays your beneficiaries might incur, such as college tuition, wedding costs, or a home purchase. You should also allow for inflation.
  • Calculate current and future annual expenses. Determine the cost of your family’s current lifestyle and how to these expenses might change in the near future. You can separate this category into living costs and big ticket items such as college tuition for your kids. Remember, your family’s lifestyle might change significantly if a young adult leaves home, a family member needs ongoing medical care, or you plan on moving.Multiply the family’s annual budget by the length of the policy. If this is more than five or ten years, adjust expenses for inflation.
  • Review your current financial resources. Factor in any savings or assets that you can liquidate, include them in your will, and reduce the face value of the policy acc ordingly.

Our agency’s Life insurance experts stand ready to review your situation and recommend the amount of coverage you need, free of charge. Just give us a call.

Jun 01
Love0

DON’T LET INSURING YOUR TEEN DRIVER BREAK THE BANK

By Personal Perspective

One of the most exciting and terrifying moments for any parent comes the first time you watch them drive away alone. You trust your child, and you’ve either taught them well or hired a professional to do so. Still, there might not be anything quite as scary as the moment when those taillights disappear from view.

Having a solid Auto insurance policy for your teen is essential to give you peace of mind when they’re on the road without you. Although insuring a teenager won’t be cheap, you can easily get the coverage you need at an affordable price.

Most Auto policies will offer discounts to teen drivers who maintain good grades, usually rewarding a B average with some not insignificant savings. Because the vehicle your teenager drives will significantly impact the cost of coverage, when shopping for that first car look for reliability, not flash. Choosing a car with good safety ratings and consumer reviews will help keep premiums under control. Pick a model that’s not too old to need constant maintenance, but isn’t so new that repairs will break the bank. Most insurance companies keep a list of vehicles and the cost of insuring them.

Many companies also offer premium discount if you have your child receive some extra driving instruction. Most states require a minimum number of hours of driving spent with a certified professional.

Remember, an ounce of prevention is far better than a pound of cure. It makes sense to pay for a comprehensive, cost effective Auto policy now, rather than shell out big dollars for repairs and legal costs after your teen has a car accident.

As always, our insurance professionals stand ready to help you make the right choice – just give us a call.

Jun 01
Love0

HOME REPAIRS: ‘LIKE IT NEVER EVEN HAPPENED’

By Personal Perspective

A pipe bursts and water ruins a corner of your Brazilian cherry wood floor. A windstorm tears off half of the vinyl shingles on one side of the house. A fire burns a couple of kitchen cupboards. Although your Homeowners policy will cover such partial losses, the extent to which the insurance company must go to make everything look just the way you’d like can be tricky.

Let’s say that the new siding contrasts with the older, weathered shingles or that you can’t find replacement kitchen cupboards that precisely match the originally.

Your claim should put you back to pre-loss condition so the new part shouldn’t stick out like a sore thumb. For example, this might mean replacing the entire floor of a room even if only a portion needs repair, or repainting all four walls after damage to only one.

In some states, if replaced items don’t match in quality, color or size, the insurance company must make “reasonable repairs or replacement of items in adjoining areas.” Although other states don’t have laws on matching, some Homeowners insurers have added similar “non-matching language” to their policies.

Besides varying by state, insurer, and policy, the issue of patching versus full replacement can depends on insurance company adjusters.

If you can’t get make any headway with the adjuster on the repairs you want, consider going over his or her head to a supervisor, or file a complaint with the state insurance department. Another option is to hire a public insurance adjuster to work on your behalf through the claims process. These professionals usually charge about 10% of the final settlement.

Jun 01
Love0

INSURANCE WHEN FAMILIES SQUEEZE IN

By Personal Perspective

Home and Auto insurance were relatively straightforward for yesterday’s ‘typical American household” – Mom, Dad, and the kids. Today, economic pressures are leading more and more adults to move back in with their parents, double up with other families, or make room for elderly relatives. These multigenerational households and other nontraditional living arrangements can raise serious insurance issues.

In most states, when family members move in with relatives who have Homeowners (HO) insurance, their belongings will be covered under the relative’s policy. However, if the individuals who move in are not related to their policyholder, their belongings probably won’t be insured.

With a rented apartment or house has Renters insurance, the coverage rules are different. In these cases, the policy won’t cover the property of a person who moves in with the renter, regardless of whether the two are related.

In a multigenerational household, or when multiple families live under one roof, whether or not you’re the homeowner, it makes sense to supplement standard Liability coverage under a your HO policy with a relatively inexpensive Personal Umbrella policy.

If you’re in a multiple-living situation, let your Auto insurance company know even if the other drivers have their own coverage and won’t be driving the cars your policy covers. Some car owners who house other drivers with checkered histories behind the wheel might wind up paying higher premiums, On the other hand, a roommate with a clean driving record could lead to multiple car discounts or other benefits.

Whether it’s Auto, HO, or Renters insurance, please let our agency know before you find yourself in an expanded or multigenerational household.

Close Menu