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Monthly Archives

July 2015

Jul 01
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Advantages of Extended Warranties on Completed Operations

By Construction Insurance Bulletin
Warranties provide an assurance to the owner that the contractor’s completed work will remain up to a specific standard for a defined period of time. The court system has set this time frame typically as one year in the absence of a written extension.

So to what advantage to you is it to extend that period of time?

Two advantages:
1. You can define the standard for the completed work in writing and have agreement from the owner.
2. You can create a duty for the owner to report potential issues early, becoming part of a process that shifts some of the potential public liability.

Implied warranties use phrases such as “workmanlike manner”. Tough to defend that standard because it changes over time, materials, and site conditions. Certainly basements were built in a workmanlike manner prior to radon gas accumulation discoveries. Once that potential issue is part of the equation, “workmanlike” changes.

Sink-swell soils forced a change in foundation design and build.

You can build to an excellent standard today; you cannot predict the future or know everything about the subgrade of the site. Use a warranty to assure the best possible work has been completed with today’s knowledge.

Transfer some of the reporting duties to the owner. After all, it is their site and they at least casually inspect it every day. The warranty spells out the conditions for the warranty to be in force. Require the owner to report frost heave in sidewalks or subsidence around drop inlets, or other early warning signs of trouble related to your specialty.

The bottom line is that both parties are better off fixing these problems early rather than after a trip and fall incident or a total collapse of a stormwater structure during a storm.

Consider this approach and discuss it with your attorney. Each state is a bit different in what they allow. If nothing else, these warranties help the owner understand the variables in your work. Reward them with some more time as a bonus for cooperation.

 

Jul 01
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Flying, Driving Robots to Globalization: New excess liability concerns

By Construction Insurance Bulletin
Excess liability, umbrella liability, high levels of general liability, whatever increases your limits of unknown liabilities, worries your insurer endlessly.

The modern world of commerce and delivery offers changes in liability just as fast as changes in how business is conducted and life is enjoyed.

Globalization moves labor to foreign lands which do not require many of the costs of employment that domestic manufacturing does. Supply chains may include many foreign countries with far-reaching impacts on liability.

Although superficially this cost savings sounds inviting, foreign governments insist on higher limits of liability for corporate citizenship regarding products and environmental issues.

Domestic carriers can be hesitant to accept new hazards. Foreign carriers are not admitted readily in the United States. Surplus lines carriers are more free to manuscript coverage, but Boards of Directors are less likely to allow non-admitted carriers as insurers.

This conflict can only be resolved by admitting more foreign competition to write what business now views as excess and surplus lines. Business must gain coverage for the most strict liability laws it encounters.

Delivery systems are more likely to include drone aircraft and self-driving vehicles in the near future. The vehicles are testing in several states for the open road now. They commonly deliver internal packages at companies and have done so for years.

Umbrella liability carriers concerns include sharing the skies with commercial passenger and freight delivery aircraft. Can so many signals interfere with or confuse flight controls?

The brave new world has insurance companies cowering and amending standard language to exclude some of these exposures.

With almost everything controlled by computer programs, whether air traffic control or your business’ reputation, cyber liability losses are becoming very limit.

Cyber attacks cost millions at a minimum. Diverting a robot, injuring your on-line presence, stealing data all can cause major umbrella losses, and the business liability is allowing itself to be robbed.

Excess and umbrella carriers need to prepare quickly for these new technological conditions. The market will change this decade.
Jul 01
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4 Ways to Manage Your Retirement Accounts When you Switch Jobs

By Employment Resources
When you switch jobs, you will probably also start a new retirement account. What happens to the old account? Consider managing that money in four ways.

 

1. Let Your Money Sit in Your Former Employer’s 401(k)
You usually have anywhere from 30 to 90 days to decide if this option is for you, and you can use it if you have at least $5,000 in your account. While this option is easy, especially if you have a good 401(k)plan, you may pay an extra fee to maintain the account, and you may not be able to access your funds for any reason until you retire.
2. Roll the Account Into a 401(k) Plan With Your New Employer 
Consolidating all your retirement money into one account makes keeping track of its performance easier for you. Check the plan’s investment options to make sure you have access to similar benefits and interests rates as your old plan offered.
3. Open an Individual Retirement Account (IRA)
An IRA gives you control of your retirement money. With it, you have the freedom and flexibility to choose any combination of investment stocks, bonds and mutual funds. IRAs often charge lower fees than 401(k) plans, too. You may owe taxes, though, if you move your 401(k) funds to an IRA. Ask your former employer to complete a direct transfer from the old 401(k) to your new IRA to avoid taxes.
4. Cash Out Your Old Account 
When you cash out your old retirement account, you have cash to repay debt or go on vacation. Remember, though, that you’ll have to pay income taxes on the full amount. You’ll also owe an early-withdrawal penalty on the amount you withdraw if it is before your 55th birthday. Emptying your account also means you’ll have less money for retirement.
When you switch jobs, you can handle your old retirement account in numerous ways. Talk to your financial advisor or human resources manager for additional information as you make the best decision for your future retirement.

 

Jul 01
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What to do if You’re Being Sexually Harassed at Work

By Employment Resources
The Equal Employment Opportunity Commission (EEOC) received 6,862 sexual harassment reports in 2014. Whether it’s an isolated or repetitive incident reported by a man or woman, sexual harassment is a workplace issue every employee needs to understand.

What is Sexual Harassment?

A federal law, Title VII of the U.S. Civil Rights Act provides a definition of sexual harassment that applies to businesses that employ more than 15 people. The law states that sexual harassment is defined as:
1. Quid pro quo harassment happens when someone rewards an employee for sexual favors. An example is the supervisor who promotes an employee who sleeps with her.
2. Hostile work environment harassment occurs when an employee feels intimidated, offended or uncomfortable at work. Sexual comments or treating one sex better than the other are two examples.

While hostile work environment harassment is more difficult to prove than quid pro quo harassment, both are illegal. If you believe you’re a victim, take action.

Document Each Incident

A single incident where a coworker calls you a sexual name probably won’t get that coworker fired, but document the incident anyway. It can be used to build a case. Include details of the incident, including date, time, where it happened, who it involved, the witness’s names and what happened.

Report Harassment

Your employer should have a sexual harassment policy in place that includes a section on reporting harassment incidents. Check that policy so you know who to tell. Legally, your employer cannot retaliate against you for reporting harassment, so speak up when you experience or observe illegal sexual harassment.

Contact the Equal Employment Opportunity Commission

As the federal agency that enforces anti-discrimination laws, the EEOC will investigate your complaint. You have 180 days after the harassment incident occurs to file a complaint. Consider filing as soon as possible, though, to put a stop to harassment in your workplace.

Sexual harassment is illegal. While your employer probably has Employment Practices Liability insurance, they should never allow harassing incidents to occur. Take action to prevent harassment in your workplace as you protect yourself and your coworkers.

 

Jul 01
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What Abercrombie & Fitch Can Teach You About Your Company’s Dress Code

By Employment Resources
In February 2015, Muslim teenager Samantha Elauf argued before the U.S. Supreme Court that clothing retailer Abercrombie & Fitch refused to hire her because of her head scarf. While Abercrombie had paid $71,000 in 2013 to two plaintiffs in similar cases, they argue that they didn’t know Elauf wore the scarf for religious reasons. Whether because of this case or not, Abercrombie had ended its appearance and sense of style hiring and “look policy” dress code by April 2015. So what can Abercrombie teach you about your company’s dress code?

Your Company Needs a Clear and Detailed Dress Code

Many companies need a standard dress code to maintain their brand image or comply with sanitation or safety guidelines. With thousands of world religions, though, most companies cannot know if an employee’s head covering, jewelry, body art or apparel has religious ties. Employers are also not yet required to ask if employees need religious accommodations.

That’s why employers are encouraged to be as clear as possible in regards to which types of clothing, hats, head coverings, jewelry, piercings and tattoos are allowed. The dress code should also outline a detailed dress code policy for employees in every position, particularly if it changes between positions in the company.

Likewise, employees can be open about any apparel that is worn for religious reasons. Open communication allows employers to respect an employee’s beliefs and make accommodations while maintaining the dress code.

How to Correct Dress Code Violations

When addressing dress code violations, companies can maintain an employee’s dignity. For starters, they should confront an employee in private. If the employee says the violation is because of religious reasons, the employer can start a discussion and possible change the dress code to accommodate the employee. Disciplinary action should never occur until after communication is initiated.

Most employers carry liability insurance, but they should still learn from Abercrombie & Fitch. The dress code should be detailed, in writing and taken seriously. If you need a religious apparel exemption to your company’s dress code, talk to your HR manager or supervisor as soon as possible.

 

Jul 01
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Ways to Combat Repetitive Stress Disorders at Work

By Employment Resources
Repetitive stress injury, also known as cumulative trauma disorder or repetitive stress disorder, accounts for almost 60 percent of job-related injuries. While computer usage contributes to the majority of RSDs, other repetitive motions are also to blame. Your employer is legally required to carry workers’ compensation insurance that covers these injuries, but you should know your risks so you can stay safe on the job.

What Kinds of Work Cause RSDs?

Any job that requires repetitive motions can be at risk for RSDs. Likewise, not taking frequent breaks puts you at risk. Here’s a short list of other jobs with a high RSD risk.
  • Assembly line work
  • Butcher or meat packer
  • Date entry professional
  • Driver
  • Front desk clerk
  • Grocery clerk or packer
  • Jack hammerer
  • Instrumentalist
  • Masseuse
  • Mechanic
  • Order puller
  • Painter
  • Pipe setter
  • Polisher
  • Receptionist
  • Sawer or cutter
  • Secretary
  • Shelf stocker
  • Writer

Forms of RSD

Carpal tunnel syndrome is probably the most familiar form of RSD. It causes swelling in the tunnel between the wrist’s bone and ligament and puts pressure on passing nerves. Additionally, other forms of RSDs include:
  • Cervical radiculopathy – neck disk compression
  • Myofascial damage – muscle tenderness and swelling
  • Tendinitis – tissue tears where bones and muscles connect
  • Tenosynovitis – irritation between tendon and surrounding sheaths

RSD Warning Signs 

Typically, your body is already affected by RSD when you start to feel symptoms. However, make sure you see the doctor as soon as possible if you experience fatigue or pain, tingling, numbness or weakness in any of your extremities.

RSD Prevention Tips

RSD can be prevented in two main ways. First, use ergonomic equipment. The right desk chair protects your wrists as you type, and a stepstool can ensure you stand properly at the cash register. Second, take frequent breaks. At least once every 30 minutes, step back and give your neck, shoulders, arms, wrists and hands a break if possible.

Your employer will follow OSHA guidelines and carry workers compensation insurance, but you also need to take responsibility for your health. Understand your risk and take action to prevent RSDs as you reduce injuries at healthy at work.

 

Jul 01
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As Costs Rise for Common Procedures, Make Sure You’re Insured

By Life and Health
Between 2011 and 2013, hospitals raised patient costs for various common procedures by as much as 20 percent, well over double the rate of inflation. Learn more about the increases and ways you can save money if you need one of these procedures.

Common Procedures and Cost Increases From 2011-2013

The following medical procedures saw an increase in costs between 2011 and 2013. For comparison, the cost Medicare covers is included. 
1. Atherosclerosis (arterial disease)
Average cost: $19,219, a 17.1% increase, Medicare pays $3,188
2. Back and neck procedures, excluding spinal fusion
Average cost: $36,215, a 22% increase, Medicare pays $5,818
3. Chest pain charges 
Average cost: $19,867, an 18.1% increase, Medicare pays $3,029
4. Circulatory disorders, except acute myocardial infarction with cardiac catheterization
Average cost: $39,093, a 15.1% increase, Medicare pays $6,189
5. Degenerative nervous system disorders 
Average cost: $28,033, a 17.2% increase, Medicare pays $6,020
6. Fractures, sprains, strains and dislocations other than femur, hip, pelvis and thigh
Average cost: $22,041, a 17.3% increase, Medicare pays $4,100
7. Medical back problems 
Average cost: $26,214, a 17.5% increase, Medicare pays $4,825
8. Percutaneous cardiovascular procedures without a coronary artery stent
Average cost: $75,331, a 17.2% increase, Medicare pays $12,743

How Can You Combat These Price Increases?

Despite cost increases, you can receive medical treatment at a reduced cost when you follow two steps.

First, use in-network providers who contract with your insurance company to offer services at a reduced rate. Since many insurance companies now feature narrow networks, check your policy carefully so you know exactly which doctors and procedures are covered.

Second, update your insurance policy. Choose a plan that covers the procedures you need or plan the procedure to take full advantage of your deductible. If you know you’ll need a costly procedure done in the future, shop around now for insurance that will cover it.

Talk to your insurance agent today to discuss your needs and the best coverage for you. With the right coverage, you can ensure you’re adequately insured despite rising medical costs.

 

Jul 01
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A Guide to Health Insurance Hardship Exemptions

By Life and Health
According to the Affordable Care Act, most United States citizens must purchase health insurance or be penalized with a fine. However, certain hardship exemptions exist and can eliminate the fine for qualifying individuals.

How to Qualify for a Hardship Exemption

Three basic qualifications can exempt you from purchasing health insurance. They include: 
1. A sudden increase in living expenses that makes purchasing insurance impossible.
2. Purchasing health insurance would deprive you of necessities like food, shelter or clothing.
3. Another legitimate circumstance that prevents you from obtaining health insurance.
Additionally, you may qualify for an exemption if you meet one of these criteria. 
  • You recently experienced a disaster like a fire or flood that substantially damaged your home.
  • You are a recent domestic violence victim.
  • Your close family member recently died.
  • You care for an ill, disabled or aging family member and face an increase in living expenses.
  • You’ve filed for bankruptcy within the past six months.
  • You have incurred significant medical expense debt in the past 24 months.
  • You’ve received a shut-off notice from a utility company.
  • You’re facing eviction or foreclosure.
  • You’ve been evicted from your home within the last six months.
  • You’re homeless.
  • Your state does not offer expended Medicaid coverage so you are ineligible for Medicaid.
  • You win an appeal for an exemption and become exempt from paying the fine for the months in which you did not have coverage.

How To Get the Hardship Exemption

To qualify for a hardship exemption, fill out the application on your state’s health insurance exchange. Be prepared to provide proof of the incident that prompts the hardship exemption. It must be legitimate and have happened fairly recently.

You may also contact your health insurance agent for details. He or she can walk you through the process and discuss alternatives like catastrophic health insurance. It covers major medical and typically includes low premiums that may be affordable despite your situation.

 

Jul 01
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5 Life Insurance Rider Options You Might Need

By Life and Health
Life insurance gives you peace of mind since it provides your survivors with financial resources to pay everyday expenses, repay debt or fund education. However, you might need five riders that enhance your life insurance policy and add a further layer of financial protection.
1. Accelerated Death Benefit Rider
Receiving a terminal illness diagnosis is emotionally and financially devastating. With an accelerated death benefit rider, you receive 40 percent of your benefits now to pay for treatment or other expenses. While this early payment reduces the amount of money your survivors receive in the future, it can ease your current financial burden and potentially prolong your life.
2. Guaranteed Insurability Rider
You might be in good health today and eligible for affordable life insurance. A change in your health condition could make you uninsurable in the future, though. With a guaranteed insurability rider, you never have to worry about needing a medical exam to qualify for life insurance.
3. Waiver of Premium Rider
Add a waiver of premium rider to your life insurance policy and receive a free pass from paying your premium. You can use this rider if you become ill, injured or unable to work. It’s a beneficial option for sole earners or anyone who doesn’t wish to lose life insurance coverage during a health or other crisis.
4. Spouse Insurance Rider
When you have life insurance but your spouse doesn’t, you’re both taking a risk. Provide your spouse with coverage, too, when you purchase a spouse insurance rider. Select the same amount of coverage as you currently have or a lower amount as you buy peace of mind and reduce your future financial risk.
5. Long-Term Care Rider
Health care expenses during your senior years can quickly drain savings, especially if you live a long time or have serious medical challenges. A long-term care rider finances your nursing home care. Although the payout reduces the benefits your survivors receive, you receive essential care in your senior years.
If any of these riders interest you, talk to your life insurance agent. Adding additional coverage increases your peace of mind and provides essential protection for you and your loved ones.

 

Jul 01
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7 Ways to Save Money on Your Life Insurance Policy

By Life and Health
As many as 57 percent of all Americans had a life insurance policy in 2014, reports the Insurance Information Institute. That’s good news because life insurance pays for funeral expenses, medical bills and debt an individual may accumulate. Unfortunately, some people don’t purchase this beneficial coverage because of its cost. Don’t make that mistake. Save money on life insurance in seven ways.
1. Purchase term life instead of whole life. Term coverage is cheaper than whole life. It also covers you for a set time period like as long as your kids live at home, for example.
2. Stick to basic coverage. Multiple riders that cover your kids or allow you to purchase more insurance later on can enhance your life insurance coverage. If saving money is your primary goal, though, skip these options and purchase basic coverage only.
3. Choose a lower coverage amount. Experts recommend consumers purchase a life insurance policy that’s 10 times your annual salary. If a policy of that amount is too expensive, try to at least cover your mortgage and debt repayment, monthly expenses, funeral costs and any educational expenses your survivors may incur.
4. Buy while you’re still young. Young people often receive better insurance rates than older adults. The sooner you purchase life insurance, the better your chances of saving money on a policy.
5. Stay healthy. Insurance companies often charge higher rates to people who are in poor health or who suffer from certain conditions like diabetes or heart disease. Other health conditions that can affect life insurance rates include: gender, tobacco use, overall health, family history and lifestyle.
6. Bundle policies. By purchasing life, auto and home insurance from the same company, you can save money. Ask your agent for more information about bundling your various insurance policies.
7. Comparison shop. Numerous companies offer life insurance, so comparison shop as you find affordable rates.
Every individual’s life insurance needs are unique. You can find affordable coverage, though, especially when you apply these seven tips. Talk to your insurance agent for additional ways to save money on life insurance.

 

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