2019 | JGS Insurance - Part 3 

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  1. Disaster-Specific Insurance is Essential for Your Business

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    By Bernie Cosentino, Vice President – Habitational

    Imagine this scenario: You have been successfully operating your business for five years, seeing massive year-over-year growth. One year, a flood comes through and wipes out half of your equipment and damages large parts of your main office building. No big deal, right? You call your insurance agent to go over your policy and make a claim. Uh oh. Turns out you don’t have flood insurance and that flooding isn’t covered under your general business and property policies. What do you do now? Eat the cost—that’s about the only option available to you.

    Every business owner is well aware that general business policies and others, like workers’ compensation, are important. Many don’t, however, think about the importance of having disaster-specific policies which will cover them for disasters which could occur in their area. It’s very difficult to consider the types of disasters which could occur, and it’s even harder to understand and estimate potential losses that stem from those disasters. To compound the issue, consider the fact that right after a disaster occurs, a huge influx of claims is going to be filed at the exact same time.

    Different insurance types are available for different natural disasters (and there are even some for man-made disasters, like acts of terrorism). Many natural disasters are understandably omitted from business and homeowners insurance, though. That is the key element. Believing you are covered and actually being covered are two very different things. What coverage you need depends on where you are and what kind of losses you could potentially see.

    Specific types of insurance are available for almost all natural disasters, and understanding what you might need can be as simple as calling up a local professional who understands the geographic region you live in.

    The Midwest may have a lot of tornadoes, the South may have hurricanes, the North may have huge snowstorms and flooding. It all just depends on where you are and what sort of protection you might need to have.

    It should also be noted that this type of insurance is typically called catastrophic insurance due to the losses that could potentially be suffered and the large scale of the events. It is also different from hazard insurance. Confused yet? If you were, we wouldn’t blame you. Speaking with a professional is the best way to make sense of it all.

    Do you know what types of disaster insurance you may need (or be required to have)? If so, you are already ahead of the curve. If not, you may want to pick up the phone and make some inquiries. Reach out to a professional today to keep you protected from disasters tomorrow.

     

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  2. 6 Fears to Overcome for Business Success

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    By Alicia Ambrose, Marketing Associate

    Fears are powerful. They are easy to run from and they are even harder to break. In business, like in life, fears tend to shape who we are and can be motivators or barriers in the pursuit of our goals.

    Here are six fears that may be acting as barriers to your business success:

    1. I’m afraid of failure

    Often, the fear of failure is all that is needed to cause people not to try something. Whether it is trying a new sport, applying for a new position, or going out and chasing new sales. While the thought of failure may seem earth shattering, do not let it consume you, get you down, or keep you from trying. So, what if you fail? A path to success is paved with failures. If you never try, you are guaranteed to fail.

    2. I’m afraid I’ll miss something

    Time is our most precious commodity. Unfortunately, in a 24/7 Internet-connected world, it can be extremely difficult to disconnect even when you leave work. Take time for yourself when you need to and shut work off when you leave the office. While there is no perfect ratio to a successful work-life balance, you are the only one who knows what you want in life, so be deliberate in the choices that you make.

    3. I’m afraid of being judged

    The fear of judgement is linked to the desire to be liked by all at all times. Sound crazy? Perhaps. Most of us are guilty of this. We act and think, quite often, based on the mistaken belief that others really and truly care what we are doing and are scrutinizing our every move. They aren’t. The narrow-minded opinions of others should never inhibit you from believing in yourself.

    4. I’m afraid of public speaking

    Stage fright is a very real phenomenon. Fortunately, it can be overcome. Practice, be confident, put anxiety out of your mind, take your time and don’t sweat it if you have to refer to your notes. If you’re passionate about your topic, your message will be authentic and guaranteed to be well received by your audience.

    5. I’m afraid to say no

    To be truly focused on your own objectives and goals, you have to learn when to turn down people or opportunities that run contrary to them. It is not selfish to put yourself first. In instances when a flat-out no is unreasonable, consider offering an alternative solution where you’d feel content saying yes.

    6. I’m afraid to ask for help

    Many people believe that asking for help shows weakness. The truth of the matter is that very few people can succeed alone, and asking for help demonstrates humility and strength. Everyone relies on others to help them get where they are, and many are willing to lend a hand if they are asked.

    Overcoming these fears will not only help you succeed in your business but will also help you succeed in your personal life. Often, it is not our capabilities, training, or skills that hold us back; it is our fears. Unfortunately, overcoming fear is easier said than done. Being aware and maintaining a mindful and positive outlook, however, is the first step to success.

     

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  3. JGS Compliance Alert: House Votes to Repeal Cadillac Tax

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    Thursday, July 18, 2019

    On Wednesday afternoon, the House approved the Middle Class Health Benefits Tax Repeal Act of 2019.  After two votes to delay the implementation of the ACA’s “Cadillac tax,” on high-dollar employer-sponsored health insurance plan, the House has voted to repeal the provision altogether. The Cadillac Tax was originally intended to take effect in 2013, but was immediately delayed until 2018.  It saw two further delays bringing it out to 2022.  Fortunately it looks like it will officially go away because it would be very expensive for companies to absorb and would have a significant impact on employees in regards to both benefits and employee contributions.

    The next step is to make it through the Senate.  A Senate version of the bill has more than 40 co-sponsors and bipartisan support urging them to  promptly approve the measure and send it to the president for signature.

    The 40 percent tax, which would be based on general inflation instead of the more rapidly increasing medical inflation, was originally only intended to target high-value plans, but modest plans will also be impacted.  The provision taxes the amount, if any, of which the monthly cost of an employee’s employer-sponsored health coverage exceeds the annual limitation (called the employee’s excess benefit).  This means in order to prevent additional taxation, millions of Americans and their families would face higher copays and deductibles shifting a greater share of the financial burden of health care onto the employee.

    As always, we will keep you informed on any developments as this bill hopefully makes its way through the Senate to the president’s desk.

     

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  4. Beat the Heat: How Employers Can Control Heat Illnesses in their Workplace

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    While it’s best not to work outside in high temperatures, the nature of certain jobs—like construction, forestry, manufacturing or landscaping—sometimes makes it unavoidable. When this happens, a worker’s body temperature can rise to dangerously high levels and put them at risk of serious health complications.

    Normally, the human body cools itself through sweating. However, in hot and humid weather, sweating is often not enough and heat illnesses can occur.

    As an employer, you have a duty to take every reasonable precaution to protect your workers. Under the General Duty Clause, the Occupational Safety and Health Act (OSHA) Act of 1970, employers are required to provide a workplace free from potential hazards that can cause or are likely to cause death or serious harm to employees, including heat-related hazards.

    In order to protect the well-being of their workforce, employers often need to implement policies and procedures to protect workers in hot environments. Accordingly, any employer that mandates outdoor work or work in hot environments should be educated on heat illnesses in order to thoroughly protect its workers. In addition, training employees on heat illness and general safety practices can make all the difference when it comes to protecting them from the heat.

    It should be noted, some states have specific standards when it comes to heat illnesses so be sure to check local regulations.

    SAFEGUARDING EMPLOYEES

    Understanding heat illnesses and their contributing risk factors is a good first step for employers. However, to keep their workers safe, organizations must know how to limit and treat heat illnesses. In addition, implementing workplace controls can make all the difference when it comes to protecting at-risk employees from potentially deadly heat.

    RECOGNIZING AND TREATING HEAT ILLNESSES

    As an employer, you need to know how to recognize and treat heat illnesses if you are to protect your workers. Understanding how to respond to the symptoms of heat illnesses can mean the difference between life and death. There are a variety of ways employers can control heat illnesses in their workplace. Below are some common, yet effective methods, to help keep workers safe.

    • Heat Illness Assessments

      In situations where a worker is exposed or could be exposed to high temperatures, a heat illness assessment should be conducted. This assessment should provide employers with a general sense of the risks facing their employees. Heat illness assessments should evaluate a wide range of risk factors including workplace temperature, humidity, heat radiation, air movement, employee workload, clothing and acclimatization.

    • Heat Illness Control Plans

      To protect workers, organizations must take proactive approaches to workplace safety. Once an employer has identified the heat-related risk factors present in the workplace, a heat illness control plan should be developed to reduce exposures. Heat illness control plans typically utilize a mix of engineering and administrative controls to protect workers.

    • Employee Training

      Organizations should use the information in their heat illness control plans to train supervisors and workers. Employees and their supervisors should know how to spot signs of heat illness in themselves and their co-workers. This type of education is critical when it comes to providing timely treatment to those who need it.

    JGS Insurance is your workplace safety and risk management partner. We care about the well-being of your employees and your business. Contact us today for more tools and resources to ensure the health and safety of your workforce.

     

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  5. Does Unplugging to Recharge Really Work?

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    By Ross Rutman, Assistant Vice President – Habitational

    The modern world of technology can be overwhelming at times, with information overload hitting you from every direction. Little wonder, therefore, that there’s a growing trend to unplug with the intention of being able to properly recharge.

    However, not everyone agrees that unplugging is a good idea if you want to relax, suggesting instead that the worry about what might be happening while you are unplugged is counterproductive. Here’s a closer look at unplugging and recharging and whether it’s all it’s cracked up to be.

    What’s the Concept?

    Also known as a digital detox, unplugging to recharge is all about taking a proper break from your devices. This means having a proper rest from the constant flow of information without the incessant interruptions that a network of devices can bring.

    The idea is that without ongoing notifications and communications from work and the outside world, you will be free to really engage in the moment and relax. Waiting for the phone to ping or getting distracted in the latest social media events can prevent individuals from truly unwinding.

    Surely This Is a Good Idea?

    Not everyone is a believer in the concept, and some critics go as far as to say that it can be counterproductive. This is because if all you do when you switch off your phone is worry about what you might be missing, you may as well just stay plugged in.

    Those who eschew the notion of unplugging are, in general, successful businesspeople who thrive on the buzz of being on the cutting edge of developments. They believe that the stress of being deluged when you return, plus the impact of being unavailable for key clients, instantly wipes out any benefits that you may have gained by unplugging completely.

    Instead, they advocate “low voltage” connections during family holidays and personal time. This means still checking emails and answering those which are critical, thereby removing the stress of worrying about what’s going on.

    Taking Time for You

    Although there may be a flood of work waiting for you when you return, if you’re organized enough to delegate and communicate any upcoming absence, there’s no reason why this shouldn’t be manageable. The benefits of being totally off-grid more than make up for catching up with work when you return.

    Unplugging doesn’t have to be for extended periods to be beneficial. You could unplug for a family holiday or go off-grid to simply enjoy a night off to unwind. The benefits to your mental health and well-being cannot be overstated and will give you the chance to experience an uninterrupted connection with both your inner self and your loved ones.

    Return Recharged

    The factor that the critics don’t adequately consider is the benefits of returning from your digital detox feeling recharged and ready to go. Having some space to relax and unwind doesn’t just help you personally. It also allows you to return to the workplace with a fresh mind and renewed enthusiasm, helping to boost your performance in the long run. However, the one thing everyone agrees on is that if you want it to work, you have to commit to being unplugged and relax during the experience. Allow the silence to wash over you and savor the peace. Only then will unplugging and recharging really give you the benefits you’re looking for.

     

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  6. The Importance of Client Onboarding

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    By Conor Moran, Assistant Vice President – Commercial Lines

    Onboarding is a buzzword that’s been circulating for some time. It relates to the process of getting a new client up and running. However, it is far more involved than simply bringing them “on board” and covers a much wider spectrum of activities. The importance of the proper client onboarding process cannot be overstated. Here are there positives of a proper client onboarding:

    Having Your Support Team Come Out to the Client

    Having your account manager, risk manager and claims rep come out to the client’s facility is a great way to start the onboarding process. It gives the support staff a chance to see the client’s facility and further understand their operation. Most importantly, the team gets to meet the client face to face. Establishing a relationship in person, instead of just through the phone or email, is an important step. The client will appreciate that the full team has come out and introduced themselves and their roles to support what the client needs.

    Defined Roles and Game Plan

    It is important to have a structured onboarding. Having each of your team members introduce themselves and their capabilities in their roles is essential. For example, when the topic of how our claims process works, our claims rep will walk the client through it. The claims rep will also establish that they are the primary point of contact for any claims questions. This way the client knows exactly what to do and who to contact when a claim is filed. Just as important, the client isn’t relying on the producer for questions and concerns that the support staff can help answer.

    Managing Your Client’s Expectations

    Now that your team members have personally introduced themselves and their roles, you have given your client a clear idea of what is expected from your team. There shouldn’t be any grey areas on what team members are responsible for. All the processes and services have been clearly communicated to the client.

    Use a Formal Onboarding Process to Create Future Success

    Getting the onboarding process right is a very important step to creating future success. Oftentimes in insurance, business owners are unsure what the process of claims and risk management entail. They rely on the producer to take care of all questions and concerns, not realizing they have a full team ready to help them! Giving the client clarity and peace of mind will surely make them happy. Use a formalized onboarding process to impress clients with your company’s organization and professionalism.

     

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  7. Why Self-Care is Crucial for True Success

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    By Barry Fields, Vice President – Employee Benefits

    Whether you are a leader, an employee, or starting up your own business, the chances are that you don’t make enough time for self-care. Modern society tends to prize those willing to work the longest hours while simultaneously scorning those who look after themselves well.

    Yet if you want to be a true success, regardless of what capacity you work in, it’s absolutely essential to look after yourself. Gradually working your body into a state of total exhaustion is not beneficial for anyone, and in the end, you’ll find it hard to bounce back. Here’s a closer look at self-care and why it’s so crucial for real success.

    Stress-Busting 101

    Whether you’re in a manual job where you need to stick to production targets or a high-flying businessperson under pressure to keep the company on track, stress is the one universal factor.

    No matter who you are, the physical effects of stress on the body can be extensive, increasing blood pressure causing chest pain, headaches and digestive disorders. Psychologically, the effect can be even more devastating, making it hard to concentrate or relax while lowering mood and self-esteem.

    One way to manage stress is to take regular exercise, an important component of self-care. You don’t have to hit the gym. It might be a round of golf, a walk with the dog, or even a night out shaking your funky thing on the dance floor.

    Taking time out to exercise isn’t a luxury. It’s an essential part of making sure you’re able to function at optimal levels for as long as possible.

    Good Nutrition

    To stay mentally sharp and keep your immune system strong, you should be eating a healthy and varied diet. Everyone has days when they grab something on the move, but this should be the exception and not the norm.

    Eating well doesn’t need to be time consuming, and you don’t need top-notch chef skills to have a balanced diet. But if you want to exude energy and radiate a healthy glow, you’ll need to take the time to nourish yourself from the inside out first.

    A Clear Mind

    If you’re tired and struggling along, the chances are that you’re more likely to make a mistake. This may not just be difficult to sort out; it could cost you financially too.

    To try to avoid making preventable errors, you need to look after your mind. This means not just making enough time to sleep but also scheduling in time to relax and unwind. This doesn’t have to take a lot of time, but setting aside a slot that is dedicated just for you can make a real difference.

    You might want to book a massage, meditate, or just enjoy a long, warm bath. Whatever you choose to do, it’s your time to switch off and focus on yourself. This may feel indulgent, but in the long run, you’ll perform better and be far more mentally agile too.

    Achievable for All

    What self-care looks like depends on the person, but it’s important to take the time to really consider what you need. If you don’t look after yourself, no one else will, and in the long run, you’ll directly impact your performance and ultimately your success.

     

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  8. Live Well, Work Well – July 2019

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    Going Camping? Here’s the Rundown of What You Need to Know

    As the temperatures rise and the days become longer, many Americans will head out on camping adventures. Whether you’re a seasoned camping pro or new to the activity, it’s always a good idea to review camping safety tips.

    Don’t Forget to Pack the Essentials

    Before setting out, it is important that you remember to pack things like fresh water, food, a first-aid kit, matches, insect repellent, extra clothing and a waterproof tent.

    Think Twice Before Pitching Your Tent

    It’s important to carefully consider where you’re setting up camp. Avoid low-lying areas that could flood during a heavy rain. Also, in windy conditions, avoid setting up your tent under a tree, as possible falling limbs could present a danger.

    Campfire Safety

    If you’re not careful, a campfire can quickly become dangerous. Keep the following tips in mind to stay safe:

    • If possible, surround the fire pit with rocks, and keep a bucket of water nearby.
    • Do not build the fire near the tent(s) or anything else flammable.
    • Never leave a fire unattended, and ensure it is completely out before going to bed.
    • Collect firewood from the ground only, never cut into living trees.

    Prioritize Safety Over Fun

    To keep the experience fun and safe there are some basic precautions that every camper should take. What’s discussed here is just the beginning of camping safety. For more information on how you can remain safe on your trip, click here.

    Sunscreen and You

    To avoid the damaging effects of the sun’s ultraviolet rays, we’re often advised to wear sunscreen whenever we go outside. And, with skin cancer being the most common type of cancer in the United States, wearing sunscreen is of the utmost importance.

    Recent changes mandated by the Food and Drug Administration have made sunscreen selection a lot easier. Under the new rules, sunscreen can only claim to reduce the risk of skin cancer and early skin aging if it is both broad-spectrum and has an SPF of 15 or higher.

    Sunscreen that is not broad-spectrum or has an SPF of less than 15 can only claim to prevent sunburn and must include a warning stating it cannot prevent skin cancer or early aging. Sunscreen products also can no longer claim to be waterproof, only water-resistant, and labels must note a time limit of either 40 or 80 minutes before the sunscreen is ineffective.

    For more information on sunscreen, visit the American Academy of Dermatology’s website.

    Wearable Tech and Your Health in 2019

    In the past few years, wearable fitness technology has become increasingly popular and advanced. Some models are now even capable of generating an electrocardiogram that can detect irregular heart rhythms. With their widespread popularity, you may be wondering if they do any good for you and your health.

    Wearing these trackers can be beneficial for your overall health. And, a fitness tracker can be especially useful for monitoring progress with a new exercise routine or weight loss program. They can count steps, monitor heart rate, add up calories and even track sleep. A number of options are available to accommodate a wide variety of budgets and fitness goals.

    Whether you’re just starting out on a healthy living journey or are well on your way, using one of these widely available fitness trackers may be beneficial for you.

     

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  9. Workers’ Compensation Audits

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    By Meaghan Tyndale-Williams, Vice President – Commercial Lines

    Preparation is Key

    It’s that dreaded time of year again. A month or two after the expiration of your Workers’ Compensation Insurance policy and you are getting calls to schedule your audit. The audit is being requested to determine the amount of premium you owe for the year. Payrolls fluctuate, so the amount used when the policy was first set up is considered your estimated exposure. The payroll estimate comes from you prior to the policy’s inception and is your best projection for the coming year. The purpose of the audit is to determine your actual exposure during the policy period. Since your workers’ compensation premium is determined by your exposures, the audit determines how much you will pay.

    There are two exposures being looked at during the audit. Your payroll and the cost of uninsured contractors. If these exposures are higher than what you originally projected, you will receive a final audit statement. The final audit statement will indicate the amount of additional premium owed in this scenario. If you’re over the projected amount, you will receive a credit on the final audit statement. The billing statement usually comes within three months after the policy expiration and, once received, generally needs to be paid within 30 days.

    Seems simple enough; however, if you are not well informed and prepared, it might not be. So what do you need to do to make sure you are prepared? First, understand what the auditor is looking for. Payroll is primary and payroll also includes payments made to uninsured contractors. For this reason, make sure you have current certificates of insurance on file showing WC coverage for each subcontractor you used during the policy period.

    To verify the payroll, the auditor will most likely request one or all of the following documents:

    Payroll Records to include

    Payroll Journal and Summary
    Federal Tax Reports – 941s that cover the audit period
    State Unemployment Reports and Individual Earnings RecordsAll Overtime Payments Shown Individually

    Employee Records

    Include a detailed explanation of the job duties of each employee<
    Include Number of Employees<
    Hours, Days, or Weeks Worked Annually

    Cash Disbursements showing

    Payments to Subcontractors
    Materials
    Casual Labor

    Certificates of Insurance

    For All Subcontractors
    For All Independent Contractors
    A detailed description of your business operations

    To make the auditor’s and your life go smoothly, have all of the requested documents ready prior to their arrival. A quick audit is a good audit, and a happy auditor usually means a happier insured!

    Overtime is discounted, so to make sure you are not overcharged; itemize all overtime paid to your employees. Break it out per employee per job classification.

    The auditor will ask questions about your operations. To make sure the audit is accurate, the owner of the business or someone else with a very good understanding of the operations should meet with the auditor.

    Keep your answers to their questions simple and do not volunteer information. It’s a good idea to review their work prior to them leaving your office. Review how they classified your employees and make sure you are in agreement. Misclassification of employees can be very costly! If you agree with the auditor, keep a copy for your records.

    Now that the audit is over, expect to get a final audit in the mail. Once you receive this, make sure to review it for accuracy. The most common mistakes are misclassification of employees, a change in the experience modification, charges for subcontractors, policy rate changes, incorrect payroll, or instances where payroll separation are not allowed. If you find any of these things or do not agree with the audit, your insurance broker can help you file a dispute that will put a hold on any collection procedures for the premium in dispute. This needs to be put in writing to your insurance company with a detailed explanation of what is incorrect and what the correct premium should be. You will be asked to pay the undisputed portion of the premium, but ultimately, if your dispute is done correctly, it will save you from overpaying for your insurance.

     

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  10. Hurricane Coverage

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    By Gwenyth P. Luu, Director – Commercial Lines

    10 Important Issues That Can Impact Coverage

    Hurricane season is rapidly approaching. Anyone who has followed the news over the last few years likely remembers the numerous storms which have caused millions (or billions) of dollars in damages and left wreckage in their wake. Protecting property and business assets is a priority for businesses at risk of suffering damage in these storms, and understanding what insurance to have and what issues affect that insurance coverage is an essential aspect of that protection.

    Here are 10 things which can have an effect on hurricane insurance coverage:

    1) Flood Deductibles – These need to be reviewed in terms of their relationship to the policy as a whole. That is the only way to determine the out-of-pocket exposure a business may face.

    2) Named Storm Deductibles – The language in the policy needs to be fully understood, especially when it comes to named storms. The deductibles often carry wording about percentage deductibles, which can often be confusing and vary wildly from insurer to insurer.

    3) Off-Premise Power Failure – This issue can lead to business interruption but is not always covered in a typical policy. Many policies have exclusionary wording which leaves these types of expenses out of coverage.

    4) Mold, Fungi, and Bacteria Exclusions – Sometimes, simply having moisture in the air is enough to promote mold or bacteria growth. Unfortunately, this type of damage may not be covered if water from the storm did not physically touch the things that were affected. So while a painting may not have been damaged by storm water, it may be destroyed by mold caused by moisture from it.

    5) Wind-Driven Rain – Many policies have exclusions for damage caused by water or rain that is blown into an interior without clear exterior damage from the wind.

    6) Business Interruption and Period of Restoration – The period of restoration begins when the physical loss or damage occurs; it ends when the property, with reasonable speed, is repaired or replaced. There are many challenges that can play a role in the period of restoration, such as delays in rebuilding or repairing, contract or lease issues, change in designs or upgrades and compliance with building codes.

    7) Civil Authority – Prior to potential natural disasters, residents are often asked to evacuate the area. This can lead to business interruption both before and after the event. It is essential to understand exactly how this coverage is triggered and any policy limitations.

    8) Dependent Property or Interdependency Claims – These two are often confused. Dependent property is property owned by others which is depended upon by the insured. Interdependency is when an issue at one insured property affects another insured property.

    9) Repair or Replace – Determining whether a piece of property should be repaired or replaced is not always as easy as it seems to be at first glance.

    10) Contingent Business Interruption – This is meant to cover business interruption when essential suppliers or product chains are cut off to the insured.

    Knowing the limitations of your policy and exactly what is covered is an essential aspect of ensuring adequate protection. The last thing any business wants is to have storm damage occur only to find out that it is not covered due to issues in the policy. To further examine these key issues and challenges, give us a call, we can address them so you can achieve the best coverage solution for your business.

     

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