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December 2016

Dec 12
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What Does “Aggregate” Mean?

By Business Protection Bulletin

bb_1211-01A key question in buying an insurance policy is “How much will it pay when I need it?” For most coverages, such as Property, the answer is fairly clear — the amount listed on the front page of the policy (known as the “declarations page”) for the specified property is the most you can collect for a loss to it. For damage to an auto, the policy usually sets a maximum payment equal to the current “book” value of a similar vehicle in similar condition.

Some policies have another limit — called an “aggregate” — on coverages. For example, your Liability insurance will set an aggregate limit: Basically the maximum amount the policy will pay in a given year for all damages under the policy, no matter the size or number of the claims. Depending on the nature of your business, the amount you’ll consider adequate for your aggregate can differ greatly from what’s enough to cover any single claim. Many policies automatically provide an aggregate equal to double your amount per claim (or “per occurrence”). Is this enough to meet your needs?

Let’s sit down and discuss the aggregate limits under your current policies. If they’re satisfactory, great! For those that don’t meet your needs, due to changes in valuations or business procedures, we’ll work with you to make the needed updates now, before you find yourself falling short tomorrow. Give us a call at your convenience.

Dec 12
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Environmental Liability and the Start-up Company

By Business Protection Bulletin

th369Why should every start-up company consider environmental liability coverage?

The harmless products and processes of the past have emerged as dangerous long-term pathogens of the present many times – lead-based paint, asbestos, even cigarettes.

Start-ups begin with a new idea, product or service which cannot, by the nature of business, be thoroughly time-tested. As an entrepreneur, you must decide, with sparse data, to go forward.

Unfortunately, injured parties have the advantage of hindsight and long-term studies.

The period of uncertainty after new launches creates a long-term liability for environmental liability as well as products liability. Think about:

1. What are the byproducts?
2. What is our waste stream?
3. Can our components be recycled?
4. What will be the result of employee exposures?
5. Are there any known potential issues.

Review the history of products liability. Caveat emptor morphed into warning labels which soon became punch lines. “Do not use your lawn mower as a hedge trimmer” or “Do not dive into two feet of water” seem like unnecessary warnings, but the legal cases were lost and money changed hands.

Environmental liability is likely to evolve along this same pathway.

The late seventies brought government interventions like EPA and an environmental Cabinet Post. Since then, public consciousness has risen dramatically and sensitivity towards environmental issues has grown.

Unfortunately for business owners, even the most green-minded, environmental impacts are still not well defined and responsibility not settled.

Unable to reduce or modify the environmental risk, the best solution is transferring the risk by insuring it.

No matter how benign you believe your company’s product, process or service to be, you cannot adequately predict the environmental issues twenty years in the future. Certainly asbestos, a natural mineral, was considered safe by its promoters.

Look into environmental liability insurance for your start-up, or your mature company.

Dec 12
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Size of Your 401k – Does it matter?

By Employment Resources

eb_1211-03Guess what? 401(k) plans that supply more money and a larger number of participants to a vendor receive certain benefits that smaller programs don’t enjoy. These might be extra services or fewer basis points in administrative costs. However, if you’re using a smaller plan, don’t fret: What you signed on for initially isn’t necessarily what you must live with forever.

A growing plan should be alert for any discounts and services for which it might be eligible once it reaches certain thresholds. Experts say that when companies get to about an average account balance of $30,000 they should start negotiating for a better deal or tell the plan provider that they’re looking for another vendor. Investment companies don’t want to lose their business.

Most providers designate certain products for specific plans. Some look at the number of participants; others consider the size of the plan portfolio. Still others use average account balance as a gauge. For example, one major fund company divides its clients into five groups based on size and offers different services for each classification, ranging from electronic 401(k) plans for the smallest group to defined benefit administration and consulting services for the largest. Another offers similar services for both small and medium-sized 401(k) plans, but charges different prices to each. As assets rise, an automatic adjustment feature decreases the charge.

The moral: Stay on top of your company’s plan and follow up with your provider once the assets reach a certain level. When negotiating for a new or updated contract, make sure that you understand the thresholds and try to have new product enhancements kick in automatically.

If the assets of your company’s plan have appreciated over time, call us for a review of the details. We’re here to help.

Dec 12
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HEALTH INSURANCE MARKETS ARE NOW OPEN

By Employment Resources
mp900446459-2As of November 1, the Affordable Care Act (ACA) gives businesses with 50 or fewer full-time employees the option of signing up for health coverage as an employee benefit in the 36 states with online insurance exchanges. These companies, as well as individuals, have been able to shop for policies on these sites since October 1.

Coverage under the exchanges won’t take effect until January 1, which should help sort out glitches in the complex system of websites and call centers. Experts have warned health care buyers to be prepared for problems during the enrollment period. “As with any major change, “look for some hiccups along the way,” says Joshua Welter, a spokesman for the Main Street Alliance. “This will entail the mother of all growing pains,” adds Neil Trautwein, vice president of the National Retail Federation.

That’s why the ACA includes $54 million for each state to have at least two “navigators”, individuals or organizations with the expertise to help explain the new health law so that participants can evaluate their options and select the coverage that’s best for them.

Unlike individuals, who have an open enrollment period just once a year, small businesses that use statewide health insurance exchanges can sign up their employees on a monthly basis throughout the year. However, workers who choose this option will not be able to pick the plan they want, but will have to sign up for the coverage that their employers selects.

Our employee benefits professionals would be happy to advise you on the most effective way of using the ACA’s exchange system to benefit your workers, and your business.

Dec 12
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Choosing Employee Health Benefits

By Employment Resources

choosing-a-pr-agency-photoWith open enrollment season in full swing, now’s the perfect time to evaluate your employee health insurance benefits. Unfortunately, a recent Aflac survey reveals that most employees don’t spend enough time evaluating their benefits packages.

*Two out of five, or 41 percent, of American employees spend under 15 minutes choosing health benefits for the upcoming year.
*Twenty-four percent spend less than five minutes selecting benefits.
*These same employees will research new cars for 10 hours, family vacations for five hours and new computers for four hours.

You owe it to yourself and your future health to invest time in choosing the right health insurance benefits.

Understand Your Benefits

Technical jargon on insurance papers can be confusing, but would you rather wade through it now or miss out on important benefits when you’re sick? Take time now to figure out which procedures are covered, where you can get treatment and how much deductible you’ll owe. Don’t be like 73 percent of employees who don’t understand their health insurance benefits.

Know What’s Changing

Maybe your employer now offers Health Savings Accounts or dental insurance. These benefit changes could help you stay healthy. Unlike 64 percent of employees who don’t take time to understand their benefit changes, you can ask about changes and understand them.

Select Partners for Long-Term Health

Now’s the time to switch coverage options if you want to switch doctors or pharmacies. While you’re inspecting your benefits package, make sure your preferred hospital and lab is covered, too. Your healthcare team partner with you for long-term health, so take time to ensure you can see your preferred partners.

Save Money

When you don’t make a careful decision about your benefits, you could be throwing away $750 a year on wasted premiums and lost benefits, which is what 42 percent of Americans do. Save that money when you invest time in choosing your health benefits.

Choose Premiums You Can Afford

Employers increasingly push rising insurance costs onto employees. By picking and choosing the benefit package options you want, you also select the premium you can afford. A few hours now prevents insurance premiums from straining your family’s budget in the new year.

Although nine out of 10 Americans auto-enroll and keep the same benefits every year, take time to ask your employer or insurance agent questions and verify the exact coverage you want. You’ll be glad you did.

Dec 12
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Are High-Deductible Health Plans Worth It?

By Life and Health

lh_1211-02More employers are offering high-deductible health care plans as an alternative to traditional health care coverage, which costs employers more.

Under a high-deductible plan, the employee assumes some of the risk for health care expenses by agreeing to pay for a larger chunk of medical treatment. The employee’s benefit comes from the provision of a Health Savings Account (HSA) — a personal account of funds withdrawn from the employee’s paycheck by the employer and dedicated for the sole purpose of reimbursing out-of-pocket medical expenses. The portion deposited into the HSA is tax deductible.

At first, these accounts might seem like a reduction in employee benefits. However, in many cases employers would not be able to offer medical benefits without them. Although costs for small, non-emergency events are transferred to the employee and some other types of care might cost them more than under traditional plans, an HSA covers major health care needs that can quickly become unaffordable.

If your employer offers a high-deductible plan with an HSA or you’re considering switching jobs to an employer who does, consult with the company employee benefits department about the coverage. If you find that the plan doesn’t cover your dependents or if you have questions about private coverage alternatives, one of our Health insurance specialists would be glad to help. Just give us a call.

Dec 12
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Premiums Under Affordable Care Act

By Life and Health

mp900442274-1A recent report from the Department of Health and Human Services (DHHS) reports that individual health insurance under the Affordable Care Act will cost an average of $2,988 yearly or $24
9 a month. Subsidies, tax credits, and Medicaid payments should reduce these premiums to no more than $100 a month for nearly 30 million people who don’t have insurance.

Although some individuals might pay more for coverage, these averages are still 16% lower than the Congressional Budget Office projected in 2012.

The health care reform act extends coverage to low-income Americans, including the 48 million now uninsured. To help offset the cost of covering older, sicker individuals in this group, the law requires every American to buy insurance or face a fine, under the “individual mandate” provision. The 55% of adults who have health coverage through their jobs are considered in compliance with the mandate.

According to the DHHS report, rates under the ACA’s state-based insurance exchanges, where individuals will shop for health plans, will vary significantly depending on the state and the level of coverage (Bronze, Silver, Gold, or Platinum). For example, in Wyoming, the least expensive Bronze plan will cost $425 a month, compared to only $192 a month for the same coverage in Minnesota.

In Comparison, a recent Government Accountability Office report on the cost of individual health insurance found that people who are young and healthy can buy relatively inexpensive policies. According to the GAO 30-year-old nonsmoker might pay as little as $30 a month in Georgia or $85 a month in Alaska. As always, our agency’s health insurance professionals are stand ready to offer their advice on selecting the health plan that’s best for you.

Dec 12
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Sleep is Imperative to Your Health

By Life and Health

sleeping11Get a good night’s sleep, and you’re more likely to wake up alert, energetic, happy and able to function. Since November is National Sleep Comfort Month, implement six tips that help you sleep better and more comfortably.

1. Invest in a Quality Mattress and Comfortable Bedding

Your sleep comfort depends largely on your mattress. If it’s lumpy, hard or scratchy, you’ll toss and turn instead of truly resting. Visit a local mattress store today and invest in the best mattress and bedding you can afford. It will quickly pay for itself as you sleep better and enjoy greater productivity and happiness.

2. Lower the Temperature

Because your body heat rises slightly as you sleep, you’ll be more comfortable when you lower your bedroom temperature by a few degrees. Opening a window or turning on a fan produces the same results.

3. Limit Big Evening Meals

Visiting the buffet for dinner tasted good at the time, but a large evening meal increases overnight discomfort. It will keep you awake and give you indigestion and heartburn. Step away from the kitchen at least two hours before bed. If you need a snack, indulge in a small portion of cereal with milk, fruit or granola.

4. Skip Alcohol and Caffeine

Your late-afternoon coffee affects your sleep 10 to 12 hours after you drink it. Your nightcap might make you drowsy, but the alcohol will wake you in the middle of the night. To boost your afternoon energy level, grab an apple, walnuts or cheese. If you want an alcoholic drink at night, enjoy it at least two hours before bedtime.

5. Relax

When you’re anxious, tense or stressed, your body won’t be able to relax. Practice yoga, deep breathing and visualization. As you relax your mind, your body will follow, and you’ll enjoy more comfortable sleep.

6. See Your Doctor

If you still can’t get comfortable at night, talk to your doctor. Discuss physical or mental issues that might be preventing you from getting adequate rest. Check with your insurance agent, too, about whether chiropractor visits or specialty pillows are covered by your insurance.

With a good night’s sleep, you wake up in a good mood and ready to tackle the day. Use these six tips to get your most comfortable sleep this month.

Dec 12
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Commuting to Work? Take a Second Look at Your Auto Insurance.

By Personal Perspective

As traffic increasingly approaches gridlock in urban areas, and higher housing costs cause workers to push their homes ever further from work, it’s no surprise that commuting times have lengthened considerably.

Longer trips to work mean that more and more car-bound commuters are looking for ways to pass that seat time either productively or pleasantly. Hands-free cell phones, enhanced stereo systems, laptop computers, PDAs, and (hopefully only in the back seat) DVD players and video games are standard equipment in many vehicles.

Have you considered how your Personal Insurance coverage will cover losses to these often-expensive additions?

To determine how much coverage, if any, your Auto or Homeowners policy will provide for these tech “toys,” you’ll need to determine:

  • The value of the device.
  • Whether it’s “built-in” to the vehicle, or powered through an adapter.
  • The value of any media (such as CDs, DVDs, or game cartridges) used with the device.
  • Whether the device is for personal or business use, or both.

Be sure you have the coverage you want before a loss reveals a possible gap in your protection. Contact one of our Personal Insurance professionals today.

Dec 12
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HOME SECURITY SYSTEMS: MYTHS AND REALITY

By Personal Perspective

mc900056232-1Don’t let negative rumors about home security systems keep you from adding this valuable protection for you and your family. Before you buy a system, consider these myths and realities:

Myth: No one will break into my home.

Reality: Burglars can target any home anywhere, and they’re seeking unprotected targets like yours. In 2011, the FBI reported more than 1.5 million residential burglaries, an average of more than one a minute.

Myth. Security systems cost too much.

Reality: According to the FBI, burglaries cost victims an average of $2,185 in 2011. A security system that costs $50 a month (a mid-range figure for most systems) can provide more than three and a half years of protection for the money and valuables you might lose in a home burglary, not to mention helping ensure your peace of mind.

Myth: My pet will set off false alarms

Reality: Many home security systems are pet friendly, designed to distinguish between pets and intruder.

Myth: Having a security system won’t lower my insurance rate

Reality: Because insurance companies can save a ton of money when policyholders use quality alarm systems (which reduce the chances of burglary claims significantly) they offer these customers a sizeable discount on homeowners coverage. You can use these savings to offset the cost of your system.

Myth: Because I have insurance, I don’t need a security system

Reality: Insurance can’t bring back irreplaceable items, such as family heirlooms or other valuables, which a home security system can help protect. What’s more, many people don’t want to deal with filing a claim and receiving an insurance settlement.

For more information on the benefits that alarm systems can provide, feel free to get in touch with us at any time.

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