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Monthly Archives

January 2018

Jan 15
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HR AND RISK MANAGEMENT

By Risk Management Bulletin

We usually think of HR helping to avoid employment practice risks. We want to make sure not to be trapped in wage and hour claims, discrimination and harassment litigation, and wrongful termination lawsuits. Then there’s leave management, including ADA and FMLA. Although these are the major issues in HR risk management, HR is also instrumental in helping with other aspects of managing risk, such as:

Workers Compensation — Insurance companies don’t pay claims, they finance them. When you suffer a Comp claim, your experience modifier (“mod”) increases to repay the claim during a three-year period at a high interest rate. This can be the most expensive money that your company borrows. That’s one reason we recommend that employers do everything possible to get employees returned to work. Has your HR person helped develop a comprehensive return-to-work program?

Cyber Liability — To what extent are poor employee practices leaving your information systems vulnerable? To what degree is HR working with IT and security to make sure that new employees receive proper orientation and terminated employees are managed effectively from a security standpoint? For example, what precautions have you taken to have mobile devices returned, passwords retrieved, trade secrets protected, etc.? To what degree does HR make sure that telecommuting employees don’t expose the company to cyber risks?

Social Media — One element of cyber liability, risk from social media, is expanding every day. Has HR made it clear who owns the company Twitter account? Have they set social media guidelines? Do they know how to respond to any perceived risks, such as negative employee postings? Privacy exposures — Whether it’s medical records (HIPAA), Social Security information, financial information, etc., employees can both generate exposures and be subject to them.

Disaster Planning — One disaster can wipe out your company overnight. Whether it’s a tornado, hurricane, earthquake, flood, or a brutal snowstorm, the news is replete with the devastating impact of such events. To what degree has HR helped generate a plan to protect the company in the aftermath of a disaster?

Employee Benefits — With a growing number of ERISA claims and a rapidly changing benefits landscape, HR is thick in the mix. Who is responsible for staying on top of the emerging benefit trends?

Perhaps the greatest risk that HR can help with is growing the business: Providing strategic advice about what your company needs for growth and how to move in this direction. At smaller companies, it’s difficult for the HR executive to wear all these hats. In this situation, many businesses have partnered with their insurance agency or other professional providers of risk management services.

Jan 15
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USING OUTSOURCED WORKERS

By Risk Management Bulletin

That Works has an extensive report and checklist about what’s known as the “contingent workforce.” This includes temporary employees, leased employees, and more. Here are some questions to consider in these relationships:

Who is responsible for what? — As with any arrangement, it’s important to study the contract. For example, if an employee isn’t working out, who should be responsible for firing them? Consider every aspect of managing personnel from hiring through performance management and retention to termination.

How much are you paying to outsource various HR functions? — Whether you’re outsourcing because you don’t have the time, expertise, or desire to do the job in house, you’ll have to pay for someone else to do it for you. What’s the competitive rate? What about the provider’s experience and results? Do your homework and interview at least a couple of providers and their clients before you choose one.

What is the provider’s hiring process? — They should be able to show it to you in writing. If they can’t, pick someone else. Make sure that the provider does proper skill testing, character assessments, background checks, extensive interviews, immigration checks and pre-hire physicals.

What references can the provider offer? — Don’t just ask for references, get the names of companies who have used the vendor during the past year. See if the vendor is willing to share this information and allow you to interview those companies. Ask “What will these companies tell us?” Then do Google research to see what comments you can find online. What’s the knowledge on board at the vendor? — How long has the person who does the hiring and staffing been doing their job? What are their credentials? Is there expertise on board to help you with any compliance concerns?

Does the agent carry the right insurance? — Depending on whose payroll is involved, the law requires employers to provide Workers Compensation benefits, as well as withholding unemployment and Social Security taxes, and more. If the temp or leasing agency treats their workers as independent contractors you could end up being in a heap of trouble.

Does the agency provide employees benefits? — Remember, if a worker walks and talks like your employee, they’re probably going to be considered your employee, whether they’re a sole employee or in a joint employer relationship. If an employee receives no benefits from the provider, you can easily face a hefty benefits claim down the road.

What about union activities? — To what extent has the agency been faced with unionization efforts? Your temporary workforce might be considered part of an existing bargaining unit and thus covered by your union contract. HR That Works members should view the extensive Contingent Worker Report and Checklist.

Jan 15
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How to Prep Your Commercial Property for Winter Snow and Ice Removal

By Risk Management Bulletin

Winter weather often includes snow and ice, two hazards that can create dangerous conditions on your commercial property. Prepare to keep your employees and customers safe when you prep your property for winter snow and ice removal.

Inspect Lighting

The exterior, walkways and entrance lights on your property should be in good working order. Inspect them now to ensure the bulbs work and that they adequately illuminate your entire property.

Remove Debris

Leaves, branches and other debris on the ground can cause falls and slips, and this debris hinders snow and ice removal. Clear your property before winter weather arrives, and maintain ongoing clean-ups as needed so your property remains tidy and safe.

Prune Landscaping

Accumulating ice and snow can cause tree branches to bend and break, which affects safety on your property. Prune trees and bushes to prevent this hazard. Remember to trim bushes near walkways and the plow route, too.

Improve Water Drainage

Dangerous ice puddles can form in areas where water accumulates, so improve the water drainage around your property. A professional landscaper can help you prepare your sidewalks, parking lot and entire property for winter.

Prevent Slips and Falls

You are responsible to prevent slips and falls in every area of your commercial property. After you identify potential risks around the parking lot, walkways, entrances and steps, correct any issues. You may need to install rubber mats, secure handrails or fix sidewalks.

Examine the Roof

Because wet snow weighs heavily on your property’s roof, it can cause severe damage. Examine the roof to ensure it’s in good repair, and clear debris from the downspouts and drains. When snow storms start, clear the roof as often as necessary.

Prepare for a Power Loss

If ice or wind damages power lines, you could lose power, which affects the lighting and safety on your property. Purchase a generator, become familiar with how to use it properly and test it before you need it.

Stock Appropriate Equipment

Make a list of winter equipment you need to keep your property safe. Your list may include shovels, ice melter, flashlights and a snowblower.

Review Snow and Ice Removal Contracts

Before winter weather strikes, review your snow and ice removal contracts. The person or company you hire should be reliable, show proof of adequate insurance and be experienced with the proper techniques for removing snow and ice on your specific property.

This winter, you can maintain safety on your commercial property when you take these steps. Your insurance agent can also share invaluable tips with you and update your business insurance policies as you prepare your commercial property for winter weather.

Jan 15
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YOGA HELPS COMBAT STRESS IN SENIORS

By Personal Perspective

Senior citizens make up the group most affected by stress-related psychological and medical conditions. For such issues, yoga might offer great relief. Recent research shows that it is effective in treating people who suffer from high blood pressure, depression, anxiety and cardiovascular disease. The theory that researchers have might help develop mind-body practices as preventative treatments for such conditions, which are helpful when used with standard treatments.

In their theory, researchers believe that stress is a contributing factor in creating an imbalance in the autonomic nervous system. The result is sympathetic over-activity and parasympathetic under-activity. In addition to this, it causes under-activity of gamma amino-butyric acid, which is an inhibitory neurotransmitter. This transmitter’s long name is often shortened to GABA. With anxiety disorders, there is low GABA activity. Low activity is also present in people with epilepsy, depression, chronic pain and post-traumatic stress disorder. The hypothesis these researchers have could also show why vagal nerve stimulation decreases depression symptoms and seizure frequency.

Although there are differences between the two, Eastern Medicine and Western Medicine are complementary. Yoga originated in the East, but professionals in the West are embracing its benefits. Recent research contributes to the theory that seniors feel better by simply relieving symptoms that present themselves in several common disorders.

Seniors & Yoga. Fitness experts believe that yoga is one of the best tools for combating the negative aspects of aging. With seniors, it can be used to reduce health concerns and increase mobility. It reduces or helps alleviate several health challenges, which means it is easier for seniors to adopt this form of therapeutic exercise.

Yoga & Walking. Walking is a common fitness choice for the aging population. Researchers compared two groups of people over a span of 12 weeks. One group walked for fitness, and the other group participated in yoga. The results showed that there were no increases in GABA levels for the walking group. However, the yoga group showed increased GABA levels. In addition to this, their anxiety levels had decreased. In a separate study, patients suffering from chronic pain in their lower backs were studied. Over a span of 12 weeks, they also experienced increases in their GABA levels. Their pain levels were greatly reduced in comparison with the levels commonly seen in conventional treatment results.

Jan 15
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THINK YOU DON’T NEED FLOOD INSURANCE? THINK AGAIN

By Personal Perspective

Last month, the President signed a bill extending the National Flood Insurance Program (NFIP) for five years. This means that millions of Americans will be able to protect themselves against a risk that can cost the nation billions a year in property damage.

It makes sense to consider buying this coverage. For one thing, the chances are that your Homeowners policy does not cover losses from floods. For another, about one in four NFIP claims come from areas with a low or moderate risk of flooding, according to the Federal Emergency Management Agency.

Before you make a decision, see if you’re eligible for the program: Make sure that your community meets NFIP zoning and construction guidelines for floodplain management, crafted to reduce the danger of flooding:

To determine the degree of risk in your area, go to http://www.floodsmart.gov/floodsmart/ (a site that offers a wealth of information on Flood insurance) and enter your name and address. If you live in a community with low to moderate risk, you might qualify for Preferred Risk coverage, with an annual premium as low as $129.

Bear in mind that:

The maximum payout under a Flood policy is $250,000 (for your building) and $100,000 (for its contents)
If you need more coverage, you can purchase Excess insurance
After you buy a policy, there’s a 30-day waiting period before it goes into effect. 

If you don’t have coverage for a flood loss, don’t expect a bailout from Uncle Sam. Although you might be eligible for a federal disaster assistance loan, you’ll have to repay it, with interest.

Before you make a decision on Flood insurance, feel free to get in touch with us — we’d be happy to review the pros and cons of this valuable coverage.

Jan 15
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HMO, PPO, AND POS — PROS AND CONS

By Life and Health

When choosing a Health insurance program, it’s all too easy to drown in an alphabet soup of acronyms — everything from ACOs (Accountable Care Organizations) to WHRN (Whole Health Resources Networks).

However, the three most common types of managed health care plans are Health Maintenance Organizations (HMOs), Preferred Provider Plans (PPOs), and POS (Point of Service plans). Here’s an overview of how each type works, together with their advantages and disadvantages.

Health Maintenance Organizations.

An HMO offers a “provider network” of health services professionals (physicians, nurses, therapists, etc.) and facilities (hospitals, clinics, medical offices, and so forth). A primary care physician (PCP) will act as a “gatekeeper” who will evaluate your health and recommend referrals to specialists, as needed.

As a rule, premiums and co-pays are relatively low, saving you money. On the downside, HMOs offer limited, if any, flexibility for services outside the plan. If your current physician isn’t in the HMO, you’ll have to pay for his or her services, or select another PCP who does participate in the plan. Also, if you use a provider outside the network, you’ll have to pay out of pocket.

Preferred Provider Organizations. 

Like HMOs, PPOs operate through a network of health care providers and institutions, and set relatively low co-payments for medical treatment. However, unlike HMOs, they’ll pick up the tab for many (although not all) medical services outside the network. What’s more, you can see specialists who participate in the network without going through your primary care physician.

Of course, you’ll pay a relatively high premium for enjoying this added flexibility. Also, if you get treatment outside the PPO, you’ll have to pick up a deductible or the difference between the charges of the plan provider and those of the out-of -network specialist.

Point of Service Plans. 

This option combines elements of HMOs and PPOs. A POS plan focuses on a primary care physician participating in the plan who monitors your health care at the “point of service” and recommend referrals either inside or outside the network. In the former case, the PPO will file a claim with your Health insurance company, which will pick up the tab for a high percentage of the charges; in the latter, you’ll have to do the paperwork yourself and your reimbursement will be far lower. If you see a specialist without going through your PCP, the insurer will pay even less.

As a rule of thumb, a POS offer more flexibility than an HMO and less than a PPO.

The Bottom Line.

HMO, PPO, or POS — which will provide the best value for your health-care dollar? That depends on your needs and life situation. Our professionals stand ready to offer you their expert advice. Just give us a call.

Jan 15
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New Year’s Resolutions That Help You Live Longer

By Life and Health

One in five people resolve to lose weight or get healthier every January. If you choose to adopt this resolution in 2018, you could live longer. Several additional New Year’s resolutions can also prolong your life, so consider adding them to your resolution list this year.

Eat Fewer Calories

Food fuels your body, but when you eat fewer calories, you lose weight and reduce your risk of developing heart disease, diabetes and certain cancers. Choose a smaller plate, chew each bite carefully and stop eating when you start to feel full to eat fewer calories and prolong your life.

Add Brain Foods to Your Diet

Certain foods help your brain and body function properly. Plan to add these brain foods to your diet as you live a healthier lifestyle this year.

  • Avocado
  • Beans
  • Blueberries
  • Nuts and seeds
  • Pomegranate juice
  • Whole grains
  • Wild salmon

Meditate Daily

Meditation reduces stress and anxiety, improves your mood and boosts your brain’s grey matter, which helps to regulate your sensory perception, muscle control, decision making and self-control. Listen to a meditative CD or simply sit still and relax as you add this practice to your daily routine and gain its benefits.

Learn Something New

When you learn a new skill, you stretch your brain and improve your memory. Resolve to take a college class, learn to edit photos or watch TED talks that enrich your life and your brain with new thoughts, ideas and lessons.

Move Every Day

Regular movement helps you stay fit, improves your overall body function and reduces stress and depression. As a bonus, moving outdoors in nature could lower your blood pressure and boost your immunity. Whether you take a walk, sign up for a dance class or join a sports team, aim to move at least 10,000 steps per day and live longer.

Start a New Hobby

Hobbies like gardening, cooking and reading improve your quality of life. Many hobbies also reduce your stress levels, improve your focus and boost your brainpower. Start a hobby or two, and you increase your enjoyment of life and life expectancy this year.

Play More

Play helps kids develop properly and learn essential skills, and play gives adults important benefits, too. Relax your body and stimulate your mind when you put together up a jigsaw puzzle, join a bowling league, shoot hoops during work breaks and play more in 2018.

Get a Physical

During your annual physical, you and your doctor review your current health and address any ongoing health issues. Prioritize this visit to stay healthy now and into the future.

Resolve in 2018 to live longer thanks to these resolutions. They improve your life and your health.

Jan 15
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LIFE INSURANCE: REDUCE YOUR WEIGHT – AND YOUR PREMIUMS!

By Life and Health

When you’re buying Life insurance, losing a few extra pounds could save you big dollars – money that you could apply to pay for the policy or increase the amount of coverage.

Here’s why: According to two recent nationwide polls, more than 35% of American adults are overweight; another 30% suffer from morbid obesity, based on such measures as the body mass index (BMI), which correlates height and weight with the percentage of body fat. As a rule of thumb, the higher an individual’s BMI, the higher their risk of dying – and thus the higher their Life insurance premium. In fact, those who are morbidly obese might be unable to buy coverage at any price! Conversely, the lower your BMI, the less you’ll pay for a Life policy.

For what it’s worth, obesity is also a major factor in driving up Health insurance premiums: A recent Cornell University study found that the annual medical expenses of an obese person exceed those of their normal weight counterpart by a hefty $2,741 a year – which comes to $190 billion a year (20.6% of the nation’s health care tab).

By reducing their weight, policyholders easily can reduce their premiums hundreds of dollars a year – or thousands over the term of coverage. For example, one sample analysis of a $1 million, 20-year Whole Life policy found that a 200-pound male in his mid-30s would save $730 a year by losing an average of 30 pounds; a 180-pound female in the same age bracket who shed 30 pounds would reduce her annual premium by $527. Savings of that size add up quickly.

If you lose weight during the term of the policy, your insurance company might not necessarily lower the premium – any more than a weight gain would lead to a premium increase. If you’re planning a long-term weight reduction program, it would make sense to switch to another policy after you’ve completed your regimen and kept the pounds from coming back. The insurance company will verify your weight by reviewing the results of your latest physical or having an examiner take a scale to your home.

The professionals at our agency would be happy to discuss this issue, or any other aspect of your Life insurance program at your convenience. Just give us a call.

Jan 15
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Factors That Affect Your Long-Term Care Insurance Costs

By Life and Health

Long-term care insurance (LTC) pays for quality nursing home, assisted living or in-home care if you need it. When you consider that the average private nursing home room cost $99,736 in 2015, you see how important an LTC policy is for your peace of mind. Plus, it protects your financial assets that would otherwise pay for your care. Before you purchase this valuable insurance coverage, learn more about the factors that can affect your policy’s premium cost.

Age

Your age at the time you purchase a long-term care insurance policy affects the premium cost. Additionally, your rate can increase by three to five percent every year you wait to purchase coverage. Don’t let your age push you to rush this purchase, though. Take your time and research your options to ensure you buy the right policy for your needs.

Health

Enjoy lower long-term care insurance policy rates when you purchase a policy while you’re healthy. Rates increase if you develop health conditions or take too many prescription medications.

Coverage

An average long-term care insurance policy includes benefits like waiver of premium, alternate care, equipment and home modifications, bed reservation and homemaker and chore service. You may purchase additional riders, too, including:

  • Inflation protection
  • Restoration of benefits
  • Survivorship benefit
  • Waiver of Home Health Care Elimination Period
  • Return of Premium
  • Nonforfeiture benefit

Each of these riders increases your total cost by five to 75 percent, so choose your coverage carefully as you balance your expected needs and budget.

Discounts

You could qualify for preferred health or marriage discounts. Ask your insurance agent about these and other discounts that could save you money on your long-term care insurance policy.

Waiting

You may decide to wait and purchase long-term care insurance right before you need it or after you save money for the premium. While you are wise to consider this purchase carefully, examine an example that illustrates how waiting will affect you.

At age 50, John purchases a long-term Care Insurance policy with a $4500 monthly benefit, four-year benefit period, 90-day elimination period and three percent inflation protection. His premium costs $2,707 per year. When he’s 85, he will have paid $94,745 in premiums. At age 55, John will pay nearly $3,589 per year for the same coverage. His total premiums paid equals nearly $107,670. John could save almost $13,000 by purchasing a policy earlier.

Afford the long-term care insurance that gives you peace of mind when you consider these factors that affect your policy’s cost. Discuss your specific needs and budget with your insurance agent as you choose the right policy for you.

Jan 08
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WORKERS FACING RETIREMENT REALITY CHECK

By Employment Resources
More than half of Americans expect to work after age 65 (56%) or their retirement (54%) – whichever comes first. That’s the bottom line on the latest Transamerica Retirement Survey. According to this nationwide study of 3,600+ workers, less than two in five respondents (39%) believe they have enough savings for financial security in their “golden years.”

The study also found that:

Nearly half of workers surveyed (47%) are relying on guesswork to estimate how large a nest egg they’ll need.

Almost three in five (57%) have created a financial plan for their retirement – and among these respondents less than one in eight (12%) have a written plan.

Among those who do have a plan, fewer than one in eight (15%) have considered the financial impact of having to retire sooner than expected, or failing to maintain adequate savings.

Fewer than half (44%) will depend on savings plans and/or their401-k account.

According to a survey by Wider Opportunities for Women of the nearly 20 million Americans 65 or older who live alone or with a spouse, about 47% (some nine million people) can’t afford to meet their daily needs for food and health care. Although there was a significant gap between seniors’ income and living expenses throughout the nation, the difference was wider in heavily urban states such as California.

How well are you prepared to ensure your financial security after you’ve retired? Our financial services professionals would be happy to tailor a plan that will fit your needs – and pocketbook.

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