Entries from February 2009 ↓
Health Care
I came across an article today on the rising cost of health care, not only for individuals but for corporations as well.
Unfortunately, the cost of health care will only continue to rise in the near future! With that in mind, I thought I would share with you some ideas I often give employers for reducing the cost of health care for the company. (These tips also work if you’re thinking of adding health benefits at a lower cost!)
Share Expenses – Although you might have some long-term employees that came into the company never having to pay their own premiums, this might need to change. As much as you would like to completely take care of your employees’ health care benefits, with the rising costs you might have to instead consider a plan where you both pay a certain percentage. It might be wise to discuss this with employees before implementing it to help determine how much employees can afford.
Make More Options – Instead of having a group health plan that automatically adds in dental, mental health, or eye plans, find an insurance company that allows employees to add these independently. This might mean that the employee has to pay a small fee to cover these additional features, but it will end up saving you money on employees that would have never used the services anyway.
Consider a PPO – Also known as managed care, many companies are switching to PPO programs that incorporate a number of different family practice and specialty doctors that have agreed to be part of the network for a certain percentage less than someone outside the network. The only inconvenience would be employees having to go to certain doctors in order to receive coverage, but this can greatly reduce overall group plan charges.
Start a Wellness Program – Just as an individual insurance plan gives discounts to healthier individuals, group insurance plans offer discounts for health companies. Starting a wellness program does not have to mean building a huge state of the art workout center in the office. It can simply mean beginning a smoking cessation group, offering stress relieving massages to employees or even setting up a weight loss management program.
Remember that the savings will vary widely depending on the company, the number of employees and the type of insurance plan you are already committed to. If you have questions about savings, feel free to contact us.
Builders Risk
New construction sales in the residential housing market have slowed across the country. Many residential home builders have more unsold dwellings in inventory that ever before. This can create a Builders Risk problem. Depending on the insurance carrier, the builder may either not be able to report the unsold dwelling again on their monthly or annual reports if the dwelling has been in inventory for three years or the rate for the third year increases.
The solution for many builders is the Residential Builders Risk Unsold Dwelling policy. One of the major advantages to the Unsold Dwelling Policy is that it can be canceled mid-term and part of the premium will be refunded. Since most of these policies have a minimum earned premium be sure and check with your insurance agent. The coverages provided under the Builders Risk Reporting policy are also provided on the Unsold Dwelling policy.
My advice is to discuss your Builders Risk options with your insurance agent if you have unsold dwellings BEFORE you pay your third year premium to determine which option is best for you.
Computer Technology
The question sounds silly, but with our increasing reliance on computers and the increased virus attacks that we’ve seen recently, it’s a question that holds a lot of validity.
Computers are prone to viruses, crashes, power surges, and user mistakes that can cause lost data. It might not be the end of the world for a home user, but for a business, it could spell catastrophe. I was on the internet the other day searching for ways to protect my computer and came across some great tips that I thought I’d share with you.
1) Use anti-virus software and keep it up to date. Yes, it costs money, but it’s a small investment that protects your largest investment - your business.
2) Don’t open emails or attachments from unknown sources. It sounds obvious, but this is the number 1 way viruses are spread. Be careful even when opening emails from people you trust – people frequently spread viruses unknowingly.
3) Use “firewalls” to protect your computer from unwanted intruders. Firewalls help filter out unwanted data, keeping it from your computer. They work - if you don’t have one, get one!
4) Regularly download security updates and patches for your operating system. Software companies create patches to eliminate software vulnerabilities as they are discovered. By continually downloading these patches you help close the gaps in your computer.
5) Use passwords that are hard to guess. Passwords are easy to figure out with software programs that will run billions of potential combinations. The only way to create a secure password is to vary upper and lowercase letter with numbers and symbols, make them at least eight characters long, and change them regularly.
6) Back up your computer data regularly. It is inevitable - you WILL lose computer data at some point (if you haven’t already!). Once this happens you will know why backing up your data regularly is so important. Prevent it from happening in the future by backing up your data to removable media on a regular basis.
7) Don’t share computer access with strangers. This sounds simpler than it is. Obviously you won’t let a stranger play on your computer, but what if you use a file sharing program? That opens the door for others to use your computer from a remote location. Don’t let that happen - keep your computer to yourself!
8) Disconnect from the internet when not in use. The internet is used to send and receive information, which means that when you’re hooked up to the ‘net, you’ve opened a two-way portal. The surest way to keep people out is to disconnect. It’s that simple.
9) Check your security on a regular basis. Your security settings can become outdated over time, so check them regularly. A good rule of thumb is to review your computer security every time you change the clocks for daylight savings.
10) Make sure others who use your computer know what to do if your computer becomes infected with a virus. If other people are using your computer, make sure they know how to update virus protection software and download security patches. This way, if you aren’t around, you won’t have to worry about your computer’s security being compromised!
While you can’t protect your computer from everything, there are preemptive measures that you can take to greatly reduce your risk.
General Liability
“The three most commonly used additional insured endorsements in construction relationships are the Insured-Owners, Lessees Or Contractors-Scheduled Person Or Organization (CG 20 10); Additional Insured Owners, Lessees Or Contractors-Automatic Status when Required In Construction Agreement With You (CG 20 33); and Additional Insured-Owners, Lessees Or Contractors-Completed Operations (CG 20 37).”
All three of these General Liability additional insured endorsements have undergone some changes under the various edition dates since 11/85. Most of these changes have resulted in significant reductions in coverage for additional insureds.
The 07/04 versions of CG 20 33 and CG 20 10 are essentially the same as far as language except for the wording in CG 20 33 states that additional insured status ends when the work contracted for is completed (no completed operations coverage is extended to the additional insured). CG 20 10 arrives at the same result by limiting coverage to “ongoing operations”.
The 07/04 version of CG 20 37 states that additional insured status is approved only when the entity is scheduled. Conversely, the 07/04 CG 20 33 states that any entity requiring additional insurance status via a contract is covered.
The 07/04 edition of all three additional insured endorsements limits coverage to the additional insured’s vicarious liability for the actions of the named insured.
A basis for conflict between insurance professionals and general contractors (and their lawyers) has been the 11/85 edition of the CG 20 10. A contract requiring the CG 20 10 11 85 “or its equivalent” is still being requested even though the general contractors and their lawyers have admitted that this option does not exist and have instead asked for equivalent protection. “Equivalent” protection is not provided by the 07/04 version of CG 20 10 coupled with the CG 20 37. ISO does not have comparable wording. A few of the smaller regional carriers may have some proprietary company form that provides something similar.
Source Insurance Journal-National Region January 12, 2009
Remodeling
The latest Hanley Wood report indicates the average cost and the average recoupment on resale for various remodeling jobs such as new bedrooms, baths, kitchens, decks, windows, siding, roofing, sunrooms, etc.
This is important information for remodelers to use in their sales presentations.
