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October 2016

Oct 10
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Your Responsibility for an Employee’s Substance Abuse

By Risk Management Bulletin

1610-rr-3Seventy-five percent of the nation’s alcoholics are employed, according to the U.S. Department of Labor’s Occupational Safety & Health Administration. If your small business employees someone who abuses alcohol or drugs, your business’s safety, productivity and your bottom line are at risk.  For maximum protection, implement a zero-tolerance policy against drugs and alcohol and understand your responsibility for substance abuse.

Know the Law

According to federal law, only certain companies have to implement a zero-tolerance policy and test employees for substances. Those companies:

  • Have a federal contract or grant of more than $25,000
  • Are involved in any type of public or commercial transportation
  • Provide natural gas facility services
  • Work at railroads
  • Operate vehicles registered with the U.S. Coast Guard
  • Perform air traffic duties

Your small business may not meet these requirements, but you are still required to maintain a safe culture and environment in your business. If one of your employees is injured on the job, your business is responsible for the Workers’ Compensation claims. Likewise, if one of your employees injures someone else while he or she is working under the influence, your business will assume the liability.

Screen Employees  

Most substance abusers do not announce their problems. They also may gravitate toward small businesses that don’t have strict drug and alcohol policies or regular testing in place. Protect your business when you require all new employees to take a drug and alcohol test and agree to your written substance abuse policy.

Write a Substance Abuse Policy

Protect your employees and small business with a written substance abuse policy. It will:

  • Outline your zero-tolerance policy or other restrictions on substance use
  • Solidify any employment testing requirements
  • Share the consequences for positive drug or alcohol tests and subsequent use
  • Maintain confidentiality

Find more information about how to develop a legal and non-discriminatory alcohol and drug abuse policy from the Occupational Safety and Health Administration.

Provide Treatment Options

Your small business is not required by law to provide treatment options for employees who suffer from substance abuse. Consider offering treatment options, though.

Join a consortium of other small business owners. Together, you can provide an employee assistance program (EAP) that offers short-term counseling and treatment referrals and assists you in retaining your quality employees.

You should also familiarize yourself with the substance abuse treatment options provided by your insurance company. Share the available resources with employees who are covered by the policy and have a substance abuse problem.

Alcohol and drug abuse can impact your small business in a very negative way. Create a plan to address your responsibility and reduce your risk.

Oct 10
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Cash Flow Mistakes That Threaten Your Small Business

By Risk Management Bulletin

1610-rr-2Every small business needs capital to succeed. You might be making cash flow mistakes, though, that threaten your business’s success. As many as eight out of 10 small businesses and start-ups fail because of poor cash-flow management reports U.S. Bank. Take time today to analyze your small business and correct any cash flow mistakes.

    1. Buy Impulsively

      Whether you’re brand new to business or have been in operation for years, impulse buying is tempting. However, it can ruin your ability to buy what you need, weather slow seasons and grow.

      Curb impulse buying when you create a budget and follow it. Before you buy anything, analyze its purpose. Also, consider how often the item will be used and if you can find it cheaper somewhere else. As an example, insurance is a necessity, but shop around for the best rates on the coverage you need.

    1. Don’t Get Paid in Advance

      When you allow your customers to pay after you perform a service or provide a product for them, you risk not getting your money. Plus, your cash is tied up in the materials needed to make their product.

      Always collect a portion of the total cost upfront, and use that cash to pay for materials. Be sure to collect the full payment before you make the final delivery, too.

    1. Let Late Payments Slide

      You likely have a relationship with most of your customers and may not push them to pay past-due invoices. However, if you don’t receive payment for the good and services you provide, it won’t take long for you to go out of business.

      Secure your business’s future when you collect payments on time. Set up payment reminders, charge interest on past-due accounts and require invoices to be paid in full before you deliver further goods or services. Check into collections policies, too, as you protect your bottom line.

    1. Don’t Keep Enough Cash on Hand

      You never know when an emergency will occur. Plus, you need to prepare for slow times.

      Set aside adequate cash. Ideally, a cushion of three to six months of operating expenses could help you stay in business if slow sales or an emergency occurs.

  1. Make Unrealistic Revenue Projections

    As a small business owner, you may be optimistic about future sales.  Creating unrealistic projections could cause you to overextend yourself now, though.

    Be honest and objective when predicting your revenue. Use accurate expense and sale records as well as past data when you calculate future revenue.

Your small business’s success depends in part on your cash flow. Stop making these mistakes today as you pave for the way for a positive future. For assistance, contact your business mentor or local SCORE chapter.

Oct 10
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How Online Listings Secure Your Business Identity

By Risk Management Bulletin

1610-rr-1A quick Google search of your business can reveal interesting results. One of the first things that may pop up is your online business listings. They include details about your services, location, hours of operations and contact information. These listings help customers find you, and they can secure your business identity in several important ways.

Help Customers Find You

Your small business grows as customers purchase the goods and services you offer. By participating in online listings, you assist customers in learning more about your business. When you don’t claim your online listings, you could lose potential customers to your competitors, so claim all your listings, post pictures of your products and staff, update your office hours and make it easier for customers to find and get to know you.

Protect Your Brand

You’ve spent time developing your brand, and now you need to protect it. Claim your online listings before a competitor does. Remember that shady operators can also claim your listings before you do and then hold them ransom. It pays to claim all your online listings now and then monitor them regularly.

Secure Your Reputation

Almost every business has disgruntled customers or former employees. Because anyone can edit online listings, these disgruntled people may change information on your listing. Secure your reputation when you:

  • Claim all your online listings
  • Protect the accounts with a secure password
  • Check your online listings
  • Ensure the information remains correct

Include Helpful Reviews

Many customers want to know that you’re a reputable business that meets or exceeds customer expectations. Reviews are one way they can find out if you’re a good fit for them or not. Be sure to ask your loyal customers to post positive reviews on your online listings.

Maximize Customer Service

Sometimes, your customers are not satisfied and turn to the internet to leave feedback. When you stay updated on your online business listings, you can reach out to any unsatisfied customers and address their complaints. Your diligence could turn a skeptic into a loyal customer for life.

What to do Next

Now that you know how your online business listings help you, learn how to keep them working in your favor.

  • Claim all your online listings. Many are free.
  • Secure your online listings with a password to your online business listings to prevent anyone from changing the information.
  • Perform regular updates to ensure the information remains correct.
  • Add keywords that describe your business as you stay on top of the search engine listings.

Online business listings can play a role in your small business’s success. Claim your listings today and update them regularly. With these tips, you secure your business reputation and identity.

Oct 10
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Is It Cheaper to Insure an Old or New Car?

By Personal Perspective

1610-pp-4How old’s your car? To save money, you may prefer to invest in older model cars. The insurance costs could take away any financial benefit, though, so understand if it’s cheaper to insure an old or new car.

Drop Comprehensive Coverage

Older cars depreciate in value. Find your car’s value in Kelly Blue Book or Edmonds then check your insurance policy. If you’re paying more for your comprehensive coverage than the car is worth, drop it and save money.

Your Age Matters

If you’re a young or senior drivers, be prepared to pay higher auto insurance rates because statistically drivers in these age groups have a high risk of accidents. On average, middle age drivers enjoy the lowest insurance rates.

Check Out the Safety Features

The safety features on your vehicle can lower your insurance rates since they reduce accidents. Older cars without safety features such as automatic brakes and back-up cameras may be more expensive to insure.

Drive Safely

The way you drive can actually influence your auto insurance rates more than your car’s age. Maintain a clean driving record to get the best rates.

Know Other Factors that Determine Insurance Rates

Your car’s safety features, your age and your driving record impact your insurance rates. Other factors can affect your policy’s costs, too.  Those factors include:

  • Marital status
  • Gender (depending on the state in which you live)
  • How often and where you drive the vehicle
  • Claim history

How to Lower Your Rates

You increase your chances of earning low insurance rates when you take several steps.

  • Don’t drive while you’re distracted. Pay attention to your surroundings and keep your focus on the road.
  • Obey traffic laws and follow posted signs.
  • Choose a high deductible. By increasing your deductible, you can lower your annual vehicle insurance costs.
  • Improve your credit score. Many insurance companies use your credit score to decide if you’re a good insurance risk, so improve your score to get lower insurance rates.
  • Add a vehicle. Instead of purchasing two different insurance policies, add the second driver in your home to your policy and save money.
  • Bundle different policies. Purchase auto insurance from the company that also insures your home or rented apartment, and you’ll get a discount on your car insurance.

While the age of your car does affect your car insurance rates, other factors also determine the amount of insurance premiums you pay. For more details, talk to your insurance agent. He or she can also suggest additional steps you can take to lower your rates and get the insurance coverage you need.

Oct 10
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What Timeshare Insurance Do You Need?

By Personal Perspective

1610-pp-3A timeshare is one way to vacation in style since it gives you access to your favorite vacation destination. When you purchase a timeshare, you can choose from three different types – deeded ownership, right to use and points. Before you embark on your next trip, make sure you purchase adequate timeshare insurance.

  • Deeded Ownership

    With a deeded ownership timeshare, you buy the timeshare and then live there a few weeks out of every year. When you’re not there, other people use it. Because you own the unit, you may sell, lease, bequeath or donate it.

    Title insurance is the first type of insurance you should buy for a deeded ownership timeshare. It ensures the title for the unit is free and clear and indeed legally owned by you.

    Purchase deeded timeshare property insurance, too. It covers your timeshare property against losses from fire, weather, vandalism and theft.

    Consider a comprehensive policy that insures the building and your contents and provides liability coverage as well. The contents policy covers the possessions that are in the timeshare. Liability coverage can pay medical expenses or court costs if someone is injured while staying at your timeshare, and it pays for damages a friend may do while staying in your unit.

  • Right to Use

    This type of timeshare is one that you rent or lease for a set number of years. You do not own the timeshare but can rent, transfer or bequeath the right to use the unit.

    Because you do not own the timeshare, you will not need to purchase property insurance. The actual timeshare management company or develop will carry this coverage. However, you may pay for that insurance coverage as part of the unit’s maintenance fee.

    What you will need to purchase is contents and liability insurance policies. Your full-time homeowner’s policy may provide the contents and liability coverage you need, but read the policy carefully to be sure.

  • Points

    Some timeshare developers or club managers sell points you can redeem for your vacations. This option gives you flexibility in where you stay, and the points may be redeemable for travel and other vacation-related expenses.

    If you participate in a points timeshare, the timeshare developer or club manager will usually pay for property insurance. You should read the timeshare contract and find out if content and liability coverage is also paid for or if those policies are your responsibility.

The timeshare you choose determines the type of insurance you need. With all three choices, review your contract carefully to find out what’s covered. Then talk to your insurance agent as you purchase the right timeshare insurance for your needs.

Oct 10
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What is Lock Bumping?

By Personal Perspective

1610-pp-2As many as one in five homes are invaded annually in the United States. One tool thieves use is lock bumping. They use a bump or rapping key to unlock pin tumbler locks and gain access to your home. Learn about lock bumping as you take steps to secure your home and peace of mind.

How Lock Bumping Works

Typically, you can only open a door with a key that’s specific to that lock. The key’s design aligns with the lock, pushes the pins into place above the shear line and unlocks the door.  A bump key is designed to also unlock a door except the thief inserts it into the keyhole and taps the key with a screwdriver or hammer. The bumping pushes the pins in the lock above the shear line and pops the lock.

Thieves can easily learn how to make a bump key thanks to numerous online how-to videos and instructions. With a collection of 10 different bump keys, they can open 90 percent of the doors in the U.S., and the entire process takes a few seconds. Tips That Protect Your Home From Lock Bumping

Protect your home and prevent lock bumping with several steps.

  • Buy a different pin tumbler lock. Certain locks are harder to bump. When shopping for new locks, look for ones that are:
    • Made with security pins
    • Not made from hardened steel
    • Designed with programmable side bars and not top pins
    • Equipped with a trap pin
    • Shallow drilled where one of the interior pins is slightly shallower than the others
  • Change the spring tension. Stronger top springs in the lock make bumping harder, so ask a locksmith to make at least two of the top springs firmer.
  • Replace the traditional pin tumbler lock. Instead, invest in a disk tumbler, time, combination, electronic or electromagnetic lock. They don’t contain pins and are less vulnerable to bumping.
  • Reinforce existing locks. If you don’t want to replace all the locks in your home, replace the door’s metal strike plates. It mounts on the doorjamb and costs about $10.
  • Lock your door always. Whether you’re hanging out at home, working in the yard or garage, going to work or taking an extended vacation, lock your doors. Don’t make it easy for a thief to enter your home!
  • Purchase adequate insurance. Homeowners and renters insurance won’t prevent lock bumping, but it can give you peace of mind. With the right insurance, you can replace any of your possessions that are lost, stolen or vandalized.

Your home’s security and peace of mind are vital. Understand and prevent lock bumping as you protect your home and family.

Oct 10
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7 Things to Know Before You Buy Disability Insurance

By Personal Perspective

1610-pp-1
No one wants to consider becoming disabled, but what would you do if a catastrophic injury or illness prevented you from working? Disability insurance kicks in after 90 days and would pay you up to 60 percent of your annual salary. As you consider buying this valuable coverage, remember seven important things.

  • Assess Your Risk Your occupation, hobbies, family health history and current health are all factors that affect your risk for developing a disabling injury or illness. Honestly and accurately assess your risk as you decide if disability insurance is a wise investment for you. If you don’t know your risk, talk to your insurance agent and ask him or her to look in the Standard Industry Code and find out if your occupation is considered high-risk.
  • Calculate Your Average IncomeThe disability insurance you’re eligible for depends on your annual net income. If your income fluctuates, average your income from the last three years and use that figure to calculate the amount of disability insurance coverage you need.
  • Perform a Needs-AnalysisA needs-analysis reviews expenses like your mortgage, debt, savings and retirement accounts and determines how much income you need if you become disabled. With this figure, you can make sure you buy a policy with adequate coverage.
  • Apply When You’re HealthyMost disability insurance carriers review the medical records of potential customers and require a physical and blood tests. If you wait to buy a policy when you’re injured or diagnosed with a serious illness, you may be denied.
  • Consider StackingIf you purchased disability insurance years ago, you used your income at the time to determine the benefit amount. Consider purchasing an additional policy now. It stacks on top of the existing policy and covers any income difference, which gives you financial peace of mind.
  • Shop Around

Insurance companies offer a variety of products at varying costs. Shop around to find the policy that meets your needs.

Don’t rely on price alone. Check out the other benefits and features of the policy, too.

Find out if cancer in your family history automatically excludes you from getting a policy.

Verify the carrier’s definition of disability.

  • Drop the Policy When You Turn 65You may not retire when you turn 65, but drop your disability policy anyway. If a doctor diagnoses you as disabled when you’re over the age of 65, the policy won’t pay because according to its definition you are retired.

Disability insurance is a valuable asset. Use these seven tips and talk to your insurance agent as you decide if it’s right for you.

Oct 10
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Understand Your Health Insurance Deductible

By Life and Health

1610-lh-3When shopping for health insurance, you probably noticed that different plans feature different deductibles. Understand what your health insurance deductible is as you maximize your health insurance coverage.

What Is a Health Insurance Deductible?

In basic terms, a deductible is the fixed amount you must pay toward your medical bills before your insurance coverage kicks in and begins to pay your expenses in full. Your specific deductible can be as low as $250 or as high as several thousand dollars and starts over again at zero on January 1 of each year.

How Does the Deductible Work?

Here is an example of how your deductible works using a $1,000 deductible amount.

In February, you get the flu. You pay $200, the full amount, for the doctor visit and medication. Your deductible balance now totals $800.

In May, you sprain your ankle. You total costs are $500 for the doctor visit, x-rays and brace. Your deductible balance is now $300.

In August, you need a physical. You pay $300 for the doctor visit and blood work. Your deductible is now met. Any further doctor visits or health care needs that are covered by your insurance will be paid 100 percent.

What are the Different Types of Deductibles?

You can check your health insurance benefits package to see exactly what deductibles you may need to pay. Some common types include:

  • Annual: It’s the amount of money you’ll pay annually from January 1 to December 31.
  • Per Episode: Your deductible may vary based on the type of medical care you need. As an example, doctor visits may include a $25 deductible while hospital visits require a $1,000 deductible.
  • Out-Of-Network: Visit a doctor, specialist or hospital that’s not in your network, and you’ll pay higher deductibles.
  • Family: If you have family coverage, your deductible may be higher than the amount paid by individuals. When your family deductible is met, your insurance will pay your health care costs.

When Won’t You Pay a Deductible?

Some insurance plans allow you to receive three types of services and not pay a deductible. They include visits to an in-network doctor for preventative care, yearly screenings or your annual flu shot. Check your benefits package to verify that you won’t owe a deductible for these services.

What Services Don’t Count Toward the Deductible?

Even though you haven’t met your deductible, there are some health services you may need or want that don’t count toward meeting your deductible. These services are the ones your insurance won’t pay.

Your health insurance deductible is an important part of your medical care. Understand it as you maximize your health care coverage and take care of your health.

Oct 10
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How to Increase Your Life Insurance Coverage

By Life and Health

1610-lh-2When you first purchased your life insurance policy, you chose a policy amount that worked at the time. However, your life circumstances and needs may have changed. Here’s how you can increase your life insurance coverage.

Figure Out the Increase You Need

Marriage, children, a house and a new job all affect the amount of life insurance you need. Perform a needs analysis with your insurance agent as you determine exactly how much of a life insurance increase you need. It includes a list of categories that walks you through your financial needs and helps you determine the amount of coverage you need to cover final expenses, provide financial support for your family and repay debt.

Add Coverage to Your Employer-Sponsored Policy

Many employers offer free life insurance to employees. Ask your Human Resources manager if you can boost your policy value. Since you already hold a policy, you may not need to fill out additional paperwork or take a medical exam to get more coverage.

Increase Coverage on Your Personal Policy

Because employer-sponsored life insurance policies are often small, you may have purchased a personal policy through a commercial carrier. Contact the agent about increasing your policy amount. You may need to pay a fee for additional coverage, but the peace of mind is worth the investment.

Purchase Another Policy

A second life insurance policy may provide the additional coverage you need. It covers the gap between the coverage you already have and the amount you need. Purchase a second policy from a different carrier than your original policy. While you have to disclose that you already own life insurance, you will have additional coverage for your family and needs.

Things to Consider

When you want to increase your life insurance, remember three tips.

  • Research your options. No matter what type of coverage you currently own, a term, whole life, universal, indexed or variable policy may be best the best type for your needs now. Remember to compare policies from different companies, too, as you get the most coverage for your money.
  • Check your budget. Because your policy will lapse if you don’t pay the premiums, be sure you can afford the extra insurance costs.
  • Prepare for the underwriting process. Potential insurance companies will ask for details about your health, finances, occupation and other factors. These factors affect your life expectancy and insurability, so always tell the truth as you prepare to answer these questions.

You can add coverage to your existing life insurance policy in several ways. Talk to your agent as you purchase the right coverage for your needs.

Oct 10
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How a Health Savings Account Reduces Medical Costs

By Life and Health

1610-lh-1Since 2003, the health savings account (HSA) has supplemented your health insurance. It’s a product that’s designed to reduce your medical costs in several important ways.

Supplement Your High-Deductible Health Insurance Policy

Many employers only offer high-deductible or catastrophic health insurance plans because the premiums are low. With these plans, your deductibles could be as high as $1,250 for individuals or $2,500 for families.

If you have this type of health insurance, add an HSA to your portfolio. The money in this account can be used for a variety of approved medical expenses. You’ll pay lower premiums and save money that pays for your deductible and other costs associated with your medical care.

Pay for Medical Expenses

In any given year, you may incur multiple medical expenses. Your HSA funds can pay those costs if they’re incurred after you set up your HSA and if they are associated with diagnosing, curing, preventing or mitigating an illness or disease. Acupuncture, medication and co-pays are three examples of covered expenses, but you can’t use your HSA funds to pay for cosmetic surgery, cosmetics or grooming products or other items that you may use for your general well-being.

Reduce Your Tax Liabilities

No matter how much you usually owe on your annual tax return, an HSA can reduce your liability. You can use the money you save to boost your HSA savings or cover other expenses.

Many HSA owners elect to have money deposited directly to your account from every paycheck. That money is deducted before you pay taxes on it, and you won’t pay taxes on any of the money you take out of your HSA as long as you use it for approved medical expenses. This makes an HSA a valuable asset since it limits your tax liabilities. For more information on your tax savings, talk to your financial advisor.

Accumulate HSA Funds

There are other accounts that help you pay for medical expenses and reduce your tax liability. One is the flexible spending account (FSA) that you can use to pay medical or child care expenses during the calendar year, but remember that if you don’t use the money in your FSA, you forfeit it.

The funds you contribute to your HSA don’t expire, and they can move with you when you switch employers. That means you may use what you can this year and save any unused amount for next year when your medical costs may be higher than they are this year.

An HSA helps you reduce your medical expenses as it supplements your high-deductible health insurance plan. Discuss your options with your Human Resources Department or insurance agent as you save money.

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