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March 2017

Mar 03
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All About Commercial Renters Insurance

By Business Protection Bulletin

If your business rents an office, store, warehouse, or other commercial premises, you’re responsible for any property you use or store there, as well any damage you cause to the rented property. Commercial Renters insurance (also known as Business or Commercial Property coverage) will repay you if your equipment or stock is stolen or damaged, or if you damage the premises inadvertently.

Some Commercial Renters policies also provide limited protection for possessions of your employees on premises. You might also want to buy additional coverage for flood damage, and/or glass windows and displays, as well as Business Interruption insurance (which will reimburse you if fire or theft keeps you from operating).

The premium depends on the risk factors facing your business. For example, the risk of fire depends upon how the premises you’re renting is constructed, whether it has a sprinkler system, and its distance from the nearest fire station. If you rent in a high-crime area or have particularly valuable or desirable inventory or equipment, you’ll pay a higher premium. You can reduce the premium by increasing your deductible and/or installing fire and theft alarms and other safety devices.

When insuring equipment and inventory, you can choose either replacement cost or present value coverage. Replacement cost, which is more expensive, will reimburse you for the full cost of buying new items. Present value reduces your reimbursement by calculating depreciation based on the age of the property.

If you run a home business from a rented dwelling, see if your Renters insurance covers property and liability for business activities. Although most policies don’t include this, you can obtain coverage through a policy rider.

To learn more, just give us a call at any time.

Mar 03
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Do You Need Cargo Insurance For Local Delivery?

By Business Protection Bulletin

When we think of trucking, we think of people making long hauls across state lines, delivering trailers filled with various goods loaded onto big eighteen wheelers. In reality, a lot of the miles truckers put on the road are done locally, making deliveries across town or at least within the same county. We like to think of truckers making cross-country trips from coast to coast, taking in Southwestern sunsets and driving through the mountains of Colorado. But long-haul is only one part of the trucking game. A lot of people who carry cargo for a living are making 10-mile, 15-mile trips in vans and box trucks.

If this is your company, the question is: Do you need trucking cargo insurance?

The answer: Not really. You do need cargo van insurance and liability coverage, but you’re going to be looking at a very different policy than a company that deals in eighteen wheel delivery is going to sign.

A long-haul trucker is specifically looking at policies designed to cover long-haul truckers. They’re dealing in a greater volume of cargo and a lot more miles between between stops. These policies are just plain bigger overall. They cover a greater cost and a greater risk. This is not to say that local truck drivers don’t have their share of risks, you’re likely to get into your share of fender benders in the city, but it’s the highway that carries the greater risk of serious accidents taking place, and every mile multiplies that risk.

Making smaller deliveries, there’s usually no point in insuring $500 of fresh baked bread for a 10 mile trip from the bakery to the grocery store. If you’re delivering your own goods, more likely than not you’re going to be eating any costs involved in damaged cargo, or else your business policy is going to cover it.

If you’re delivering on behalf of others, liability insurance will cover you more often than not. If you’re not using your van to make unreasonable deliveries, if you’re not trying to carry thousands of dollars worth of electronics across three states, then there’s no reason not to expect your basic liability coverage to protect you.

Trucking cargo insurance frequently covers the specific load being hauled from point A to point B for the duration of that trip. If you don’t need an eighteen wheeler and you’re not crossing state lines, liability insurance should cover your smaller deliveries.

Mar 03
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811 – Call BEFORE You Dig

By Construction Insurance Bulletin

Across the nation, utility lines, tunnels, and structures run under our feet, Each year, excavators strike approximately 700,000 of these underground lines, often triggering potentially fatal accident (from steam, gas, propane, or electricity). A single strike might easily cost a contractor hundreds of thousands, or millions, if the accident leads to an interruption of service that shuts down a factory, hospital, telecommunication lines– even a missile silo.

In most cases, insurance will not cover these losses. To deal with this threat, the Common Ground Alliance coordinates 811 –Call before You Dig, a nationwide phone and online system that contractors can use to notify local utilities so they can “mark out” their facilities before excavation of anything from to a sewer to a subway. These markouts are required under state law.
When you use the call 811.com system, bear in mind that:

    • It doesn’t matter where you are – downtown, in the middle of a suburban street, or building a private home.

 

    • Call even if you’re confident that you know where something is buried (for example, if you installed the line); many contractors dig up lines that have just put in.

 

  • Instead of marking the area with wooden stakes – which are all too easy to drive through gas lines – use white paint or “feathers;” even the most shallow excavation can be hazardous.

Remember, failing to contact 811.com before every excavation violates the law – and leaves you wide open to huge liability losses. Don’t take a chance your odds of losing in the Underground Damage Casino! To learn more, just get in touch with the Construction Insurance Specialists at our agency.

Mar 03
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Transporting Your Crew

By Construction Insurance Bulletin

Sometimes it’s better to get everyone to the job site in a van or bus rather than leave everyone to their own transport. Heck, for some laborers, the ride to work is the deal-breaking benefit that keeps them on your site instead of somebody else’s. By sharing a ride to work, you can make sure everyone’s there on time, at the same time, and you don’t have to worry about limited parking spots. It’s simply one less headache to deal with when you start your day.

There are essentially two reasonable arrangements you can make in order to get everyone on the job site via bus or van, both with their own upsides and downsides. It’s basically the choice between buying a vehicle, or paying a third party to do the driving for you.

  • Buying a van or bus

Buying your own van or bus can be a major expense. Even if you buy used, you’re looking at repair and registration costs, and you’re going to need to look into private hire insurance in order to legally use the vehicle for certain business expenses. That being said, this may ultimately be the most cost-effective option if it’s in your budget. If this is a major project that’s going to take up to a year or longer, then having your own transport will almost certainly be cheaper than paying a third party to make the trip every single day, and it will definitely be cheaper than renting a vehicle for that long.

  • Hiring a driving service

Hiring a driving service can be much cheaper in the short term, but whereas owning a vehicle starts expensive and becomes cheaper every day, hiring a driving service starts cheap and then the costs add up. This is ideal if you are handling a major project that will be completed in a short length of time, or if you’re not going to be taking a lot of large jobs in the future.

It essentially comes down to whether or not owning a vehicle is going to pay for itself in the long run. If transporting large crews to and from the job site is going to be an everyday task for you, then certainly, owning a van or bus is going to more than pay for itself within a year or two. If you tend to work with smaller crews on most jobs, then you need to make sure that your budget includes transportation costs.

Mar 03
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Differneces Between Installation Floater and Builders Risk

By Construction Insurance Bulletin

Construction projects involve significant financial risk for the contractors and subcontractors who must pay workers and purchase materials. To help protect themselves against these financial losses, builders have a number of insurance options. Two of the most widely used coverages are Builders Risk and Installation Floaters. The choice you make depends on the nature of each job.

Builders Risk insurance pays for damage to materials or partially completed work due to accidents, fires, weather damage, material defects, and incorrect installation or workmanship. This coverage ensures that the time and money that the builder has invested in the project aren’t lost when the costs of repairing, repurchasing or reconstructing add up and diminish profits.

Installation Floaters cover specific items that a contractor is planning to install. For example, a roofer might buy a policy to pay for the cost of roofing supplies, both during transit and while stored at the work site. An Installation Floater covers either all risks or specific sources of losses for moveable property (materials or equipment) specifically named in the policy.

Because of its more narrow coverage, an Installation Floater generally costs less than a Builders Risk policy. However, it leaves the builder more vulnerable to losses that aren’t covered. This coverage would be appropriate for a contractor performing a specific installation task, or a subcontractor who takes on limited risk to perform a specific duty for a contractor as part of a larger project.

As Construction insurance professionals, we’d be happy to recommend the type of coverage best suited to protect you against losses on each job. Just give us a call at any time.

Mar 03
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Tradesman’s Liability Insurance: Investing In Your Career

By Construction Insurance Bulletin

Maybe it’s never happened to you, maybe you’re just too careful to ever let it happen, but it’s something we all worry about, isn’t it? You’re carrying some drywall into your client’s home to patch up their wall, and you knock over a two hundred dollar trophy case, or you track something all over their beautiful Persian rug, or you slip and the drywall goes crashing through their sliding glass door.

Even if you’re not working in homes where people live, you worry about a stray 2×4 breaking a neighbor’s window, or maybe someone pops a tire on a busted hurricane tie one of your guys left laying around in a driveway or something.

Being a self-employed tradesman means that if something goes wrong, you eat the costs. You don’t have an employer whose insurance will cover anything that happens, you have clients, and if something goes wrong, they’re probably going to be the ones asking for a payout.

Having a solid tradesman’s liability policy in place can not only ensure that you are covered in case something goes wrong, it can also take the edge off, bringing you peace of mind so that you can be at ease while you work, knowing that everything is taken care of, and nothing short of extreme negligence is going to put you on the hook for repairs and replacements that you cannot afford.

The only question is when to buy your policy. The answer to that is simple: If you’re waiting until you have a job to go to before you buy your insurance, then you’re waiting too long.

When putting in a bid for a gig, the tradesman charging twice as much will always win the job over the tradesman who doesn’t have a good tradesman’s liability policy in place. If you don’t currently have any work lined up, it may feel like you’re spending money on a “maybe,” but it’s better to think of it as an investment into your next job. Even if you’re not in the least concerned over any damages you might do while on the job site, your client might not have the same level of confidence in your abilities. You don’t want to pay for damages out of pocket, and your clients don’t want to risk choosing between suing a self-employed contractor or eating the costs themselves. You might never need to cash in on your liability policy, but you’ll secure a lot more work if you have it.

Mar 03
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HR Success

By Your Employee Matters

I remember a Southwest executive telling me once that if we take care of our people they will take care of our customers and that will take care of our profits. Since their inception this has held to be true. The Success article was an interview with the CEO of the $1.8 billion company, Andrew Cherng. Here are some pointers that he made to help nurture your workforce:

“The environment here is about personal growth, personal well-being. When you are healthy mentally, physically, emotionally, spiritually—when you’re doing well, you’re likely to do good things in your life and that’s what we advocate.”

Tell me you wouldn’t want to work for a boss like this!

“The environment is a way you see the future. One person at a time.”

Cherng realizes your environment and culture is a choice. As he stated, you can only build a culture through individuals; one person at a time.

“People who are successful tend to take care of those little things very well. And then they accumulate credit, resources, and do whatever it is that you need in life—that’s the preparation for success.”

Do you take care of the little things very well? Have you accumulated credit, resources, and do whatever it takes to prepare for success? As the saying goes, when you take care of the little things the big things tend to take care of themselves.

“We can all do a better job. And when we do we all get rewarded. The reward may come in just being happy or in other people being happy. When you do your job well, your customer feels that and your business blossoms”

How motivated are you and your fellow employees to not do just an average job or a comfortable one but an extraordinary, awesome one? Are they doing tasks in a way that make them feel happy?

Cherng suggests that management should ask employees:

“Are you being mindful? Are you putting your heart into the work? Are you passionate about your work? Are you loving your environment? Our job is to raise everyone’s levels of understanding and caring. When you raise the level of caring, you see a good result.”

While we think of ourselves as good people and have good intentions we often times don’t manifest that. An excellent book was written about it “Leadership and Self Deception.” The essential theme being that we deceive ourselves; that we in fact manifest caring. What have you done lately to show employees that you care?

We live in an experience economy and the whole purpose of any business is to increase human well-being. What a wonderful opportunity for every one of us!

Mar 03
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The Purpose and Benefits of an Executive Benefits Plan

By Your Employee Matters

Attracting top leadership talent for your company is essential since good leaders grow businesses, increase productivity and motivate employees. However, many companies cannot afford to offer competitive benefits plans to the leaders who can guide their organization to success. Executive benefits plans provide a solution. If your company needs strong leadership, consider offering an executive benefits plan.

What is an Executive Benefits Plan

Attract, reward and retain leaders and key employees in your business with an executive benefits plan. It’s a contractual agreement between the employer and key employees. It offers retirement benefits that supplement your company’s existing benefits package.

The plan gives your company flexibility when offering compensation to executives and key employees, and it can:

  • Replace income at retirement
  • Replace benefits lost because of IRS limits on qualified plans
  • Defer compensation
  • Enhance benefits during an acquisition or other change of control
  • Add additional benefits to qualified employee benefit plans

There are no coverage, eligibility or participation requirements for an executive benefits plan, making it ideal for companies of all sizes.

Executive Benefits Plan Eligibility

Almost any employee is eligible for qualified employee benefits packages. Only select employees are eligible for executive benefits plans, however. According to the Department of Labor, these plans may only cover select management personnel with specific job titles.

  • President
  • Chief executive officer
  • Chief financial officer
  • Senior or executive vice president
  • General counsel
  • Treasurer

Additionally, highly compensated employees or those with key responsibilities may be eligible for executive benefits plans.

Products Available in an Executive Benefits Plan

Consider all the available products when you assemble an executive benefits plan. In general, you may choose from several product options, including:  

  • Executive Health Plans
  • Elective Deferred Compensation Plan (EDC)
  • Benefit Equalization Plans (BEPS)
  • Supplemental Executive Retirement Plan (SERP)
  • Medical Reimbursement Plans
  • Section 162 Bonus Plans
  • Split-Dollar Plans
  • 457(b) Plans
  • 457(f) Plans
  • Key Person Disability Coverage
  • Key Person Life Insurance

Funding Considerations

When funding an executive benefits plan, you can choose between two options.

  • Funded plans offer security since contributions are deposited into an independent trust which then pays the benefits.
  • Unfunded plans are deducted from the company’s general assets.

Talk to your benefits plan administrator or insurance agent for more details on funded and unfunded plans. Then choose the type that meets your needs.

Leaders can make or break a business. Offer an executive benefits plan to develop a strong leadership team. When choosing an executive benefits plan, look for one that’s managed by a reputable company. It should be effective and cost-efficient too as you retain leaders who help your company prosper.

Mar 03
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Highest Vehicle Theft Locations

By Your Employee Matters

The National Insurance Crime Bureau (NICB) released its list of U.S. metropolitan areas plagued with the highest stolen-vehicle rates in 2015. California cities took eight of the top ten spots, with New Mexico and Colorado filling out the list.

What does this mean for you, the business owner?

It reinforces the threat of vehicle theft. If your company vehicle is stolen, it could take some time to replace that vehicle, which could impact your business. Although it seems that those in sunny California get the short end of the stick, the bottom line is that thieves wreak havoc on business parking lots and jobsites nationwide.

The NICB recommends three levels of security:

  • Warning devices, such as alarms.
  • Immobilizing devices, such as a smart key or kill switch.
  • Tracking devices that help police locate the vehicle.

The NICB also advises owners and users of vehicles to exercise such common sense precautions such as not leaving the car unlocked.

Although NICB’s recommendations provide viable risk-management techniques, a commercial auto policy that includes theft coverage will also help.

If we haven’t discussed your coverage in a while, now’s the time. Please give us call us today

Mar 03
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Types of Employee-Sponsored Dental Benefits Plans

By Your Employee Matters

Some employers offer a dental plan as part of the employer benefits package. It can be a beneficial employment perk, so become familiar with the common types of dental benefits as you decide if your company’s plan meets your needs.

Fee-for-Service Dental Benefits

Under this type of plan, the dentist receives a set fee for services. There are five common types of fee-for-services dental benefits plans.

    1. Direct Reimbursement

      This self-funded plan allows you to choose your dentist. Your insurance will directly reimburse the dentist or you pay out-of-pocket, submit a receipt to your insurance and receive a check.

    1. Indemnity Plans

      Also called traditional insurance, indemnity plans allow you to choose your dentist and pay dentists based on the procedures they perform. The dentist determines the fee for each procedure, and your insurance covers a portion of each procedure up to a maximum allowance.

    1. Preferred Provider Organization (PPO)

      Dentists in a PPO plan contract with an insurance company and deliver specific dental services for a set fee. You’ll save money by seeing a dentist in your PPO rather than an out-of-network provider.

    1. Managed Care

      Dental providers may partner with members and provide managed dental care. This care includes dental procedures and financing.

    1. Dental Health Maintenance Organization

      A dental health maintenance organization (DHMO) is also known as a capitation or pre-paid plan. Under a DHMO, your dentist receives a certain amount of money each month. The dentist must then provide services to you at no or a reduced cost. You must visit the covered dentist and will not receive any financial reimbursement for services you don’t use.

Other Types of Dental Plans

In addition to fee-for-service dental benefits, you may choose from several other types of dental plans.
Discount or Referral Dental Plans

    1. The insurance company may contract with a network of dentists who agree to discount their services to members. You pay for treatment you need out-of-pocket according to the fee schedule.
    1. Point of Service Options

      With your managed care dental plan, you may receive treatment from dentists who are not in your network of dental providers. Expect to pay significantly more to out-of-network providers than you would for services from an in-network dentist.

    1. Table or Schedule of Allowances Plans

      A type of indemnity plan, a table or schedule of allowance dental plan assigns a dollar amount to each dental procedure. You must pay the difference between the allowance and the actual charge, and you may need to choose a PPO dentist to receive the maximum benefit amount.

Your employer may offer dental benefits as part of your employee benefits package. Understand which type of plan is offered as you decide if the coverage is right for you.

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