2019 | JGS Insurance 

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  1. What Type Of Leader Are You?

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    By Ross Rutman, Assistant Vice President – Habitational

    Whether you’re running a small start-up business or a large multinational corporation, leadership is something which is a key to your success. Yet for something which is so important, it’s interesting to note that there’s no single correct way of approaching it.

    Many psychologists have attempted over the years to define the different types of leaders. However, the majority of these have evolved from an original concept that was created by Karl Lewin in the 1930s. Here’s an overview of the three different types of leadership which are just as relevant today.

    Autocratic Leaders

    An autocratic leader is one who makes decisions on their own, acting swiftly and without consulting anyone else. They like to retain control over all the decision making and rarely, if ever, accept input from elsewhere.

    This style of leadership tends to be very rigid and highly structured, with clear rules that are well-communicated to all concerned.

    Having an autocratic leader can be useful in a small group that would otherwise drift without firm direction. It’s also perfect for situations where a decision needs to be made quickly. However, it can be demoralizing for workers, and the leader may be viewed as bossy, difficult, and controlling. This can lead to a high turnover of staff or absenteeism as workers don’t feel valued or included.

    Democratic Leaders

    Also known as participative leadership, democratic leaders are often viewed as the most effective. While still retaining overall responsibility for decision making, democratic leaders encourage creativity and participation from all members of the group.

    As a result of this inclusive atmosphere, workers are more likely to feel encouraged and to experience high levels of job satisfaction, which in turn creates improved productivity.

    There are nevertheless some negatives to this leadership style, which include an inability to respond quickly. The democratic process isn’t a fast one, and projects may falter if group members feel underqualified to contribute effectively.

    Laissez-Faire Leaders

    Often viewed negatively by others from a more structured environment, laissez-faire leaders use a far more relaxed approach by handing over control to others. A hands-off approach gives team members the freedom to manage their own time and achieve results in the way they personally prefer. Laissez-faire leaders remain available to provide support as needed, but they don’t interfere in day-to-day task management.

    Despite the negative publicity, laissez-faire leaders work extremely well when the team members are knowledgeable, experienced, and self-motivated. Giving individuals the autonomy to self-manage can provide high levels of job satisfaction and create trust. When it doesn’t work so well, productivity can drop and workers may start to avoid the jobs they dislike.

    What Type of Leader Are You?

    Do you recognize yourself in any of the above three descriptions? Although most people will have a natural inclination towards a particular style, the most effective leaders blend a combination of all three. Knowing what type of leadership style to use in any given situation can create the best possible results and leave team members feeling supported and satisfied.

     

  2. The Benefit of Benefits

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    By Barry Fields, Vice President – Employee Benefits

    Remaining competitive in the hunt for the right job candidates who will propel your business to success is a struggle. Once you find the people you need, you have to convince them that your company is a better place to work than your competitors. A strategic, quality benefits package can help you attract and retain those top employees.

    Employees value a well-rounded selection of benefits, and health insurance, a 401(k) plan, life insurance and dental coverage are a few of the plans that you can consider offering.

    The Benefits

    Benefits packages offer value to your employees and help you boost productivity and retention in a cost-effective manner. Here are a few of the advantages of offering employee benefits as part of your compensation package.

    Talent Attraction and Retention

    Employees highly value a good benefits package. Developing a strategic benefits package that targets specific types of employees can help attract the right job candidates to keep your organization running at peak efficiency.

    Once you have these top-performing employees at your company, providing a tailored employee benefits package will serve as a barrier to them leaving—a great benefits package can be a huge advantage when looking at retention strategies because it holds more than just monetary value for the employee. A bigger salary at another company likely won’t be as strong a pull for an employee tempted to leave if the other company’s benefits package isn’t as attractive as yours.

    Healthy, Productive Employees

    When your benefits package includes a combination of health insurance and dental and vision coverage, you will have employees who are able to take a proactive role in managing their health. They will have easy, affordable access to health care, reducing absenteeism due to illness.

    When they are on the job, healthy employees are more productive than sick ones. It’s beneficial for your company’s productivity and your employees when they have access to medical coverage and time off when they are sick.

    Satisfaction

    A good benefits package leads to satisfied employees with higher morale. Employees who find value in their benefits are typically more willing to commit to their company because it helps make them feel valued—which leads to increased productivity and decreased absenteeism.

    Efficient Use of Resources

    Offering valuable benefits can help lower top employees’ expectations for salary. Many employees are willing to accept good benefits in lieu of a slightly higher salary.

    This is an advantage to your budget because the value you present to employees with benefits, especially health insurance plans, can be monetarily equal to a raise in salary for them, while costing you less due to group rates and lower payroll taxes. Employers can avoid the hidden cost of paying extra payroll taxes on higher salary by instead offering benefits to provide similar value to employees.

    Thinking Long-term

    Even if you think you can save a little money in the short term by skimping on employee benefits, you will eventually face the consequences through a lowered ability to attract high-achieving employees, increased difficulty retaining your top performers, and lowered morale and productivity.

    Offering a quality array of employee benefits will pay off through a stronger, more productive workforce with employees committed to your company.

    Working with JGS Insurance will help you develop a strategic benefits package that works for your budget and offers attractive options to your employees. We can also give you access to educational materials for your employees as you launch your new or improved benefits package.

     

  3. What’s The Deal With Flood Insurance?

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    By Bernie Cosentino, Vice President – Habitational

    It may be impossible to avoid a flood once it hits, but you can take steps beforehand to insure your property so that you are better prepared for it financially.

    After 2017’s severe hurricanes and flooding, did you ever consider investing in flood insurance? If so, you are certainly not alone.

    Flooding of your home or office can be a trying experience that taxes both your emotions and your finances. Even if you don’t live in a low flood-zone area, devastating flooding can still occur, often with very little warning. Hurricanes, heavy rainfall, or river or tidal surges can quickly cause excess water to build up, causing extensive damage to homes and businesses and destroying their entire contents. According to calculations on floodsmart.gov, for example, a six-inch flood in a 2,000-square-foot home can cost the homeowner nearly $40,000 in damages and repairs. In this example, some of the larger repairs include flooring ($15,000), furniture ($6,000) and wall and door replacement ($7,000).

    The average homeowner or business owner may not be aware that coverage for water damage for their property typically covers water damage from burst pipes or rain infiltration from a roof that may have been compromised in a storm. These perils are quite different than water damage caused by flood.

    Although they sound similar, water damage and flood damage are radically different insurance terms. If your home has been damaged by water, here’s how to determine if you need to file a flood insurance claim or a water damage claim.

    Simply put, the main difference between a flood claim and a water damage claim is where the water comes from. With flood damage, the water comes from a natural source and two or more properties are involved. You are most likely dealing with a flood damage claim if the water that is causing damage to your property is coming from one of the following sources: overflow of inland or tidal waters; unusual and rapid accumulation or runoff of surface waters from any source; mudflow or collapse of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.

    It may be impossible to avoid a flood once it hits, but you can take steps beforehand to insure your property so that you are better prepared for it financially. Most standard homeowner or business policies do not cover flooding unless separate coverage is purchased. Many victims of flooding may assume that federal programs will kick in to cover their losses, but this may not always be the case.

    In 1968, Congress created the National Flood Insurance Program (NFIP) to help property owners protect themselves in case of flooding. The NFIP offers flood insurance to homeowners, renters and businesses only if their community participates in the NFIP, agreeing to adopt and enforce ordinances that meet or exceed FEMA requirements to reduce the risk of flooding.

    If your home or business is located in a high-risk flood area, you must have separate flood insurance in order to qualify for a mortgage from federally regulated or insured lenders. If you are located in a moderate- to low-risk area, you are typically not required to have flood insurance, but you may want to minimize your financial risk by purchasing a policy regardless.

    You may wish to investigate Private Market Flood insurance as well, which may be available at lower rates than what is available through the federal program. According to privatemarketflood.com—which sells policies as an alternative to government FEMA-backed policies—“older homes, second homes, nonprimary residences, commercial properties and small apartment buildings enjoy significant savings compared to FEMA policies.” In fact, the Private Market Flood insurance program now insures more than $1 billion of property value in 37 states.

    There are myriad factors that influence the cost of your premiums, including building size, location, amount of coverage desired and deductible amount, so it’s best to consult with your insurance agent to determine whether an NFIP policy or private flood insurance policy makes more sense for your particular situation.

     

  4. Employment Practices Liability Insurance: A Must-Have Policy for Every Business

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    By Meaghan Tyndale-Williams, Vice President – Commercial Lines

    It isn’t a matter of if an organization will experience an employment practice related claim; it is only a matter of when. In fact, according to Advisen, a leader in data solutions for the commercial insurance market, an employer with as few as 100 employees can expect a claim once every three years.

    Employment practice related claims are increasing, and the costs associated with defending such claims can be staggering. Perhaps most unnerving is that an organization doesn’t have to be in the wrong to face a potential lawsuit. Even the best corporate policies and procedures may not deter a lawsuit, making the purchase of employment practice liability insurance a crucial and necessary component to a company’s overall risk management portfolio.

    Employees Equal Exposure

    It’s simple. If an organization has employees, it needs an employment practices liability insurance (EPLI) policy. These policies cover the cost of defending EPLI claims and damages awarded to an employee for wrongful acts committed by the employer.

    However, each EPLI policy has very specific wording on exactly which wrongful acts are indeed covered. In general, most EPLI policies provide the following coverage:

    • Defamation
    • Discrimination
    • Failure to Provide Equal Opportunity Employment
    • Harassment
    • Retaliation
    • Violation of the Family and Medical Leave Act (FMLA)
    • Wrongful Discipline
    • Wrongful Failure to Promote
    • Wrongful Termination

    The hiring, disciplining, promoting, and training of employees requires more human interaction than practically any other aspect within a business. Because of this, the exposure to employment practices liability extends to past, present, and even prospective employees.

    Wage and Hour Claims

    A common exclusion on most EPLI policies is claims related to wage and hour. Laws pertaining to wage and hour fall under the Fair Labor Standards Act (FLSA). The Act establishes minimum wage, overtime pay, recordkeeping, and child labor standards.

    Common claims include jobs which have been misclassified or the denial of overtime. And with our ever-improving technology, claims for “off the clock” work, ranging from checking emails to responding to text messages, have increased. In each scenario, an employee is paid less than what has been assured to them under federal law.

    Although coverage for wage and hour claims can be added to an EPLI policy, it will come at an additional cost. Claims related to FLSA are on the rise as employees themselves become more knowledgeable about their rights under the Act.

    The Third Party

    In addition to wage and hour claims, third-party claims are also commonly excluded from EPLI policies. Also available for an additional premium, third-party coverage can protect an organization from outside vendors, customers, or other individual claims.

    For example, a delivery driver routinely is sexually harassed by a business’s employee. If the driver were to file a harassment lawsuit against the organization, an EPLI policy which includes third-party coverage would respond.

    In today’s highly litigious environment, coupled with increased courage by employees in outing and confronting discrimination, harassment, and other inappropriate acts, businesses are exposed more than ever to a claim. Ensuring your employment practices liability insurance policy will meet the exposures of today’s world has never been more important.

    Limits Available

    Employment practices liability coverage can often be provided as an endorsement to a business owner’s policy. However, it is a best practice to have a stand-alone policy which may provide broader coverage and not be affected by an underlying policy.

    Most stand-alone policies begin with a $1 million limit and increase from there. The limit of insurance typically includes costs associated with settlements, judgments, and legal defense costs. Claims related to wage and hour (FLSA), third-party, and other exposures typically have a lower sublimit associated with them. It is important to note limits may be reduced or their availability shortened during times of mass staff reductions, mergers, or acquisitions.

    Cost of Coverage

    The cost of obtaining an employment practices liability policy is dependent on many factors including the following:

    • Hiring and Firing Procedures
    • Management’s Experience
    • Number of Employees
    • Prior Claims History
    • Type of Business

    Most policies also include a deductible, which is an amount that must be paid by the insured before a policy will respond to a claim.

    Not having an EPLI policy in place not only exposes an organization to the obvious costs associated with a claim, including defense and damages, but also the nonquantifiable costs. When an organization becomes entangled in an employment dispute, morale can decline, negatively impacting productivity. And in more extreme scenarios where claims are made public, a business’s reputation could be at risk.

    The costs associated with not carrying employment practices liability insurance outweigh whatever premium your chosen insurance company wishes to charge. If you have employees, you need EPLI.

     

  5. Let’s Talk Limits: How are the 6 CGL Limits Related?

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    By Gwenyth Luu, Director – Commercial Lines

    Any organization that purchases Commercial General Liability (CGL) insurance should have a good understanding of how limits of liability apply to claim payments in the policy. That information not only helps organizations choose what the best limits are for their policy, but it also helps them understand the requirements for umbrella or excess liability policies.

    People often speak about General Liability as if it is one coverage. General Liability is really a broad term that refers to a package of coverages and coverage limits. These coverages and how they work are often misunderstood. On the most basic level, the CGL policy covers against lawsuits alleging bodily injury, personal injury, and property damage due to negligence.

    A CGL policy has six different limits shown on the declarations page. While those limits are individual, they are also interrelated. What does that mean? Simple: a reduction due to a payment on one limit will reduce other limits as well. There is one caveat: after issuance of a CGL policy, any attempts to extend the policy period through an endorsement for less than 12 months has an adverse effect on the aggregate limits. It is better to write a longer policy period into the CGL policy at inception than to extend it in most cases.

    Two of the six limits are Aggregate Limits and are related. Aggregate Limit means that it is the most an insurer will pay during a policy period. Once the insurer has paid the full amount of the Aggregate Limit, the insurer has no further obligation to pay the insured for any claims or suits that fall within the exhausted aggregate limits. Hence, an umbrella or excess liability policy aims to drop down over an exhausted aggregate underlying limit.

    As we go through the limits, it may get confusing. To help illustrate the concept, imagine two large water tanks at full capacity as Aggregate Limits (at the beginning of the policy period) and four smaller, unfilled water tanks for the other CGL limits. Each small water tank is connected respectively to its own large water tank. When claims are paid from the smaller tanks, it draws water from the larger Aggregate tanks, reducing the water from the Aggregate tanks until they are empty. Once the large water tanks are empty, it means the Aggregate Limits are exhausted.

    The General Aggregate Limit

    The General Aggregate Limit is the most the insurance company will pay in any one policy year for claims arising out of your organization’s operations: Bodily Injury and Property Damage (Coverage A), Personal and Advertising Injury (Coverage B), and Medical Payments (Coverage C).

    Products-Completed Operations Aggregate Limit

    This aggregate limit indicates how much an insurer will pay for damages because of bodily injury or property damage resulting from the Products-Completed operations hazard. The Products-Completed Operations Aggregate is separate from the General Aggregate Limit. Payments for damages out of the Products-Completed Operations Limit does not affect the General Aggregate limit and vice versa. Under the CGL policy, the total liability exposure for the insurer is the sum of the two aggregate limits.

    To be a bit more specific, the Products-Completed Operations Limit only applies to the following cases of property damage or bodily injury:

    • Incident occurred away from the premises of the named insured, and
    • Arose due to products of the named insured that are no longer in the possession of the named insured, or
    • Arose due to work that was completed by the named insured.
    • Personal and Advertising Injury Limit

    Personal Injury refers to slander, libel, invasion of privacy, and defamation of character. Advertising Injury refers to false advertising practices. This coverage provides protection from suits related to any of these offenses. The most the insurer is required to pay is established in this Personal and Advertising Injury Limit. There are a couple of things to know about this limit:

    It is independent of the Each Occurrence Limit in Coverage A (Bodily Injury and Property Damage); however, an insurer may be required to pay both the Personal and Advertising Injury Limit and Each Occurrence Limit.

    It is applied not to each offense but to each person or organization. Regardless of the number of persons or organizations claiming damages, the most the insurer is required to pay is the Personal and Advertising Injury Limit.

    Each Occurrence Limit

    This is the maximum that the insurer is obligated to pay for any damages within Coverage A and expenses within Coverage C. Despite a separate General Aggregate Limit for Products-Completed Operations, all damages paid under Coverage A and all expenses paid under Coverage C are subject to the Each Occurrence Limit. For the purpose of this article, an “occurrence” by policy definition is defined as an accident, including continuous or repeated exposure to substantially the same general harmful conditions.

    An example of this would be a cheese processor preparing a shipment improperly, resulting in the sale of contaminated or otherwise compromised cheese. As a result, multiple people become ill. Each one of those individuals then sues the company. Does this count as multiple occurrences or does it count as one? There are two views. The first looks at the cause of the liability, which would consider them all to be the same occurrence. The second looks at the effect, which would find each individual injury to be a separate occurrence.

    Damage-to-Premises-Rented-to-You Limit

    This separate limit applies to fire damage to premises rented from a landlord by the insured and to damage—regardless of cause—to premises or their contents occupied for seven days or less by the insured. This limit applies to any premises and is a sublimit of the Each Occurrence limit. Payments under this coverage reduce the Each Occurrence and General Aggregate limits.

    Medical Expense Limit

    Medical Expenses are Coverage C, and they are meant to pay for reasonable medical treatments resulting from accidents or injuries, regardless of who is at fault. Like the Damage-to-Premises-Rented-to-You Limit, payments under this coverage reduces the Each Occurrence and General Aggregate limits.

    Understanding not only your CGL policy but also how limits can come into play if a claim is made are essential to successfully protecting your organization from risk. After all, having coverage is good, but having the wrong understanding isn’t going to help anyone. It should be more than apparent that the way limits work and connect to each other are complicated, and having a professional there to help is essential.

     

  6. Factors That Affect Your Home Insurance Premiums

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    Home insurance coverage can differ from policy to policy depending on a multitude of factors. Being aware of these factors that affect your premium can ensure that you are appropriately covered. Review this Know Your Insurance to understand the factors that are influencing your home insurance premiums.

    Your Personal Information

    Your credit history, claims history and marital status can all contribute to your premium costs:

    • Credit history—In most cases insurance companies will take your credit history into account when calculating your home insurance premium. Insurance companies will look at how good you are at making payments and how much debt you currently have. Typically, the better your credit score, the lower your insurance premium.
    • Claims history—Any claims you’ve made at previous residences will be assessed by your insurance company when determining your premium. The type and frequency of the claims you’ve filed can lead to higher premiums.
    • Marital status—Those who are married have been found to file fewer insurance claims than single individuals. Therefore, if you are married, you will generally have lower premiums.

    Your Policy

    The way you and your broker construct your insurance policy also determines your premiums. The following are policy items that have the greatest impact on the amount you pay:

    Type of coverage: There are three different coverage options you can purchase for your home insurance policy:

    • Actual cash value will replace your home or damaged belongings, minus depreciation. Depreciation is the decrease in an item’s value over time due to wear and tear.
    • Replacement cost pays to repair or replace your home or belongings without any deduction for depreciation.
    • Extended replacement cost is the most expensive coverage option—but, it will pay to rebuild your home even if the replacement cost exceeds your policy limit.

    Limit: Your policy limit is the maximum amount that your insurance will pay in the event of a covered loss.

    Deductible: Your deductible is the amount you pay in order for your insurance coverage to kick in to help cover a loss.

    Additional coverage: You may choose to purchase additional coverage for items or circumstances that may not be fully covered under a standard home insurance policy. Possible circumstances may include keeping more expensive items at your home (e.g. boats, fine art or jewelry), or living in an area more susceptible to disasters that aren’t already covered under your existing policy.

    Your Home

    There are a few factors about your home that may affect your premiums:

    • Home value — The value of your home can also influence the cost of your insurance. Typically, the greater the value of your home, the higher your insurance premiums will be.
    • Age of property — Older buildings tend to have costlier premiums since the materials they’re built with may be more expensive and harder to replace. For example, if you have stained-glass windows in your home, that could cost more to replace than a standard window since stained-glass windows are far less common.
    • Remodeling — Any improvements made to your home will lead to an increase in your premiums since renovations typically increase the value of your home—therefore increasing your home’s replacement costs. Although, repairs made to your roof, electrical or plumbing that increase safety or efficiency may allow you to receive discounts that can reduce your premiums. Always alert your broker about new home remodels to ensure they can be replaced if damaged or destroyed.

    Location

    If your home is located in a high-risk area, you will commonly pay more for your home insurance. Homes that are considered at a higher risk for damage or loss are those located near coastlines, farther away from response teams (fire or police departments) or are in areas that are more susceptible to natural disasters.

    Home-based Businesses

    If your home is being used for work purposes, you may need to purchase additional coverage. Most standard home insurance policies will provide some liability coverage and limited protection for business equipment you may keep at your home, but it may not be enough. To ensure you are sufficiently covered, you may choose to purchase additional coverage or add to your home insurance policy.

    Attractive Nuisances

    Attractive nuisances are potentially dangerous objects that could attract people, including children, onto your property. The most common attractive nuisances are pools and trampolines—if you have either on your property, you will pay more for your insurance premium.

    Dogs

    Depending on your insurance policy, your dog may be covered under your home insurance policy if they are involved in a liability claim. But, some dog breeds that are marked “aggressive” may have limited coverage or none at all. The most common dog breeds that insurance companies are wary to cover are Rottweilers and pit bulls.

    We’re Here to Help

    It’s imperative to have a clear understanding of your policy and how it works to help you recover from a loss. Remember to review your policy regularly to ensure it protects your home thoroughly, and contact us for additional guidance.

     

  7. Summary of the 2019 Employer Health Benefits Annual Survey

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    Each year, the Kaiser Family Foundation and the Health Research & Educational Trust conduct a survey to examine employer-sponsored health benefit trends. This document summarizes the main points of the 2019 survey and suggests how they could affect employers.

    Health Insurance Premiums
    In 2019, the average premium rose 4% for single coverage and 5% for family coverage. The average premiums were $7,188 and $20,576 respectively.

    However, premiums for high deductible health plans with a savings option (HDHP/SOs) were noticeably lower than the average premiums. HDHP/SOs’ annual premiums for single and family coverage were $6,412 and $18,980, respectively.

    Worker Contributions
    The average worker contribution toward the premium was 18% for single coverage and 30% for family coverage. Although, employees at organizations with a high percentage of lower-wage workers (where 35% make $25,000 or less annually) made above-average contributions—19% and 41% of the premium for single coverage and family coverage, respectively.

    In terms of dollar amounts, workers contributed $1,242 and $6,015 toward their premiums for single coverage and family coverage, respectively. Workers enrolled in HDHP/SOs contributed less on average, paying $1,072 for single coverage and $4,886 for family coverage.

    Plan Enrollment
    The following were the most common plan types in 2019:

    • Preferred provider organizations (PPOs)—44% of workers covered
    • HDHP/SOs—30% of workers covered
    • Health maintenance organizations (HMOs)—19% of workers covered
    • Point-of-service (POS) plans—7% of workers covered

    PPO enrollment has decreased by 14% over the last five years, and enrollment in HDHP/SOs has risen by 10% over the same period.

    Employee Cost Sharing
    Most workers must pay a share of their health care costs, and the average deductible for all workers was $1,655 in 2019. Over the past five years, the average annual deductible has increased 36%. The prevalence of HDHP/SOs has contributed to the increase of deductible amounts. The percentage of covered workers with a general deductible of $2,000 or greater has increased from 18% to 28% in the last five years.

    Beyond deductibles, the vast majority of workers cover some portion of the costs from their health care services. For example, 66% of covered workers have coinsurance and 14% have a copay for hospital admissions.

    In addition, nearly all workers are covered by a plan with an out-of-pocket maximum (OOPM), but the costs vary considerably. Among covered workers with single coverage, 12% have an OOPM of less than $2,000, and 20% have an OOPM of $6,000 or more.

    Availability of Employer-sponsored Coverage
    Similar to the last few years, employers offer health benefits to at least some workers. Only 47% of very small employers (three to nine employees) offer benefits, while nearly every large employer (1,000 or more employees) offers coverage.

    Health and Wellness Promotion Programs
    Wellness programs help employees improve their lifestyles and avoid unhealthy habits. Fifty percent of small and 84% of large employers offer at least one wellness program. Of these large employers, 41% offer participation incentives like gift cards or merchandise. Programs vary in topic and include subjects like smoking cessation, weight management and lifestyle coaching.

    Telemedicine
    More than two-thirds of employers with 50 or more workers have embraced telemedicine, with 69% offering health care services through this method. Of these employers, 48% offer financial incentives to receive health care services this way, opposed to an in-person physician visit.

    Self-funding
    Similar to the previous year, 17% of workers with small employers are elected in plans either partially or entirely self-funded, compared to 80% of workers with large employers. In the past few years, level-funded plans have become more popular. Level-funded plans are health plans provided by insurers that include a nominally self-funded option for small or mid-sized employers that incorporates stop-loss insurance with relatively low attachment points. Of the employers with fewer than 200 workers, 7% reported that they had a level-funded plan.

    Conclusion
    This year continues a period of a stable market, characterized by relatively low-cost growth for employer-sponsored coverage. While premium growth continues to exceed earnings and inflation increases, the differences are moderately small. Additionally, while there have been some changes in terms of employer-sponsored health benefits, no trends have gained significant traction.

    The recent trend of raising deductibles to offset premium increases is popular, but its growth has slowed. A reason for the slowed growth is that health benefits are a highly effective attraction and retention tool, especially in a strong economy and tight labor market, and employers want to recruit and retain top talent.

    Looking forward, employers should begin to identify tools and resources they can use to offset higher premium growth. As costs continue to rise and possible political changes ensue, employers and employees may begin to see increased market movement.

    For more information on benefit offerings or on what you can do to control your health care costs, contact us today.

     

  8. The Basics of Builders Risk Insurance

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    Building and construction projects are complicated with no shortage of things that can go wrong. With everything that can happen during the construction process, it is essential to have the proper insurance in place. Of all of the different insurance coverages to consider, builders risk insurance is one of the most essential for companies in the construction industry.

    While builders risk insurance, also sometimes referred to as course of construction insurance, is important, it is also very complex and easily misunderstood. This Coverage Insights examines what you need to know about builders risk insurance and how it can protect your company.

    What Is Builders Risk Insurance?

    Builders risk insurance is a specialized type of property insurance that is intended to provide protection for buildings and structures that are under construction. These policies protect project owners, general contractors and subcontractors against direct physical loss or damage to covered property.

    In many instances, builders risk policies also provide coverage for materials and supplies that are on-site, in transit and being stored temporarily at off-site locations if they are intended to become a permanent part of a building or structure. What’s more, builders risk policies can be written to include coverage for loss of income and additional expenses. This coverage would apply if the completion of a project is delayed due to property damage caused by a covered cause of loss.

    Builders risk coverage is a temporary form of insurance. Coverage applies only during the course of construction, erection and fabrication. In most cases, builders risk coverage stays in force until a construction project is accepted by the project owner or once construction is considered complete. Once construction is completed, it is up to the owner of the building or structure to secure traditional property insurance.

    Another thing to keep in mind is that there is no standard form of builders risk insurance. Policies can vary between insurance companies, and, in many instances, the coverage terms of a builders risk policy can be negotiated. In most cases, builders risk policies are written on an “all risk” basis. This means that coverage applies for all causes of loss except those specifically excluded by the policy.

    What Am I Protected From?

    Builders risk insurance can cover a wide range of causes of property damage. The exact parameters of your policy may vary, but in general, builders risk insurance includes coverage for the following causes of property damage:

    • Fire
    • Wind
    • Hail
    • Theft
    • Lightning
    • Explosion
    • Impact by vehicle or aircraft
    • Vandalism

    It is important to comb over your policy carefully in order to make sure you are aware of what is and isn’t covered under your builders risk insurance. Builders risk policies often do not provide coverage for property damage caused by flaws in design, planning or workmanship. Other specific exclusions may be included in your policy. While exclusions vary from policy to policy, the following cases of loss are typically not covered under builders risk policies:

    • Property damage caused by employee dishonesty or theft
    • Property damage caused by earthquakes
    • Acts of war
    • Government actions
    • Mechanical breakdowns

    Talk to Your Broker

    Builders risk insurance is necessary coverage for many businesses. Remember, we’re here to help you with all of your construction industry insurance needs. Protect your project, your wallet and your company by contacting us to discuss builders risk insurance today.

     

  9. How to Fix Anything : Part 2

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    By Steve Roderick, Assistant Vice President

    If You Want To Make An Omelette, You Have To Break Some Eggs

    In the first installment of “How to Fix Anything,” we established that few things, if any at all, are really perfect. That goes for life in general as well as business and industry. We also revealed in Part One that in order to fix anything, we must first identify, very specifically, what our issues are from the standpoint of the end-user or target market. For this discussion, let’s assume that we have taken a step back and really looked at things from their point of view, realizing that our problems aren’t necessarily the same as theirs.

    For Part Two, we will discuss actually breaking down issues more literally. It’s time to take things apart. You can’t fix anything without taking it apart first.

    After careful consideration, you have determined that your product is top shelf, pricing is competitive, and customer service is on point. However, delivery of services comes in too close to deadlines for the comfort of your clientele. What can we do to fix it? We dissect the process by which we are conducting business.

    The Drawing Board

    The easy answer would be to adjust lead times, thereby adjusting the customers’ expectations and prevent disappointment. Draw it out: I bet someone else can get the goods to them sooner and win that business. No good.

    How about we hire extra people to expedite the orders or have more billable hours available each billing cycle? That might work, but can we sustain the costs incurred with new hiring and training new staff until we are back in the plus? Maybe.

    What if we update our online presence with hopes of streamlining the order process? Good answer, but now we have to play catch-up on the back side to cope with the incoming rate of orders. Remember, the end user really doesn’t care what our issues are. They simply want to be serviced.

    Disassemble Johnny 5

    How do you “take apart” a problem, metaphorically speaking? It’s really not that different from taking apart a tangible item, like a dishwasher or an engine. If you have worked on it before, it comes apart very easily, and you know exactly the order to remove all of the pieces. If the problem has just been identified, however, there will be some trial and error. It’s a good practice to try this out on paper first and take an educated guess as to what happens.

    A great way to start is to draw out the process in question on a calendar, from start to finish. Plot each part as it exists today, from conception to completion, from the view of the end user. Conception would be when end users start thinking that they need your product/service, and completion would be after you have left the picture entirely and that transaction is final. You will probably find that there is a lot of empty space on the calendar between the functions of your process, and that’s okay, for now.

    We Are Going to Need a Bigger Boat

    Rather than throwing all of our screws, nuts, and bolts into a coffee can as we disassemble, let’s organize them in such a way that we can see where each one belongs for reassembly. Carburetors have many small bits and pieces, and a great mechanic’s trick is to use an old muffin pan to sort the parts as they come off. But how do we put real-world problems in a muffin pan? We are going to need a bigger muffin pan.

    Let’s take our calendar (coffee can) and drill it down to a more organized, usable format where we can easily make changes, move things around, and experiment, without losing any of our parts (nuts and bolts). Where are we going to find a muffin pan that will fit all of our conceptual pieces of this process? Earlier, we determined that our delivery of services comes in too close to deadlines, making our clientele uneasy. We need a simple, visual, specific summary of our process, from start to finish, grouped in order, which can easily be manipulated. We need a timeline. That’s our muffin pan. Almost sounds too easy.

     

  10. Effective Driver Training

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    By Eric Wokas, Risk Control Consultant

    Commercial vehicle fleets, whether large or small, can benefit from implementing fleet safety programs to keep their drivers safe and prevent crashes while on the road.  Reducing the number and frequency of accidents will have a positive impact on a company’s profits and drivers’ safety.

    Driver safety programs can be efficiently implemented at a reasonable cost through multiple resources such as newsletters, online training, safety meetings, telematics and motor vehicle record (MVR) reviews. However you must manage and communicate program goals to shift attitudes and in turn, behavior.

    Key components of an effective safety program are timeliness and repetitiveness. This is not an investment that is one-and-done. Ongoing reminders, as well as an occasional refresher course go a long way toward making driver safety a priority.

    Here are some topics that should be included in every safety training program:

    Dealing with Driver Fatigue: Every driver has experienced the toll that extended driving time takes on performance and alertness. Fleet drivers who drive long hours are well aware that fatigue can be fatal. The Federal Motor Carrier Safety Administration (FMCSA) has established that after seven hours of driving, the frequency of accidents increases dramatically.

    Some precautions that a driver can take to mitigate fatigue include the following:

    • Avoid driving a vehicle when ill, tired or when driving capacity is not 100 percent.
    • Avoid drug and alcohol use at all times. Keep in mind prescription medications can impair one’s ability to drive safely.
    • Fatigue comes on quickly. Drivers need to get off the road as soon as they notice drowsiness or sleepiness and rest until they feel they can safely be on the road again.

    Backing a Vehicle: This can be a slow, tedious, and often dangerous procedure. Avoid backing a vehicle whenever possible. When parking find a spot that allows you to pull out going forward.

    Courteous and Defensive Driving:  Good drivers understand the importance of demonstrating courtesy and a defensive-driving attitude. They know giving a little ground and yielding the right of way, even when it belongs to you, is important in avoiding accidents. Bullheadedness and a “me-first attitude” have no place in safe driving.

    Defensive driving is about being proactive on the road by identifying conditions that could lead to accidents. A driver needs to accurately anticipate the outcome of traffic situations, road conditions, and other elements and actively apply defensive driving techniques.

    Roads and Weather: Adverse weather conditions (snow, ice, wind, rain etc.) can create double trouble. When driving under normal circumstances, steep hills, curves, and traffic congestion bring enough difficulties. Wet roads and high winds introduce another set of dangerous situations.  Proper vehicle maintenance is a key component of fleet safety program under any conditions. In adverse weather, a poorly maintained vehicle can be a death trap.

    The Three-Point Rule: Minor injuries can cost the driver and the company a lot in terms of lost income and downtime. Drivers need to get in and out of tractor cabs or trucks. In many cases they also mount and dismount trailers. There are plenty of opportunities for possible injury. Safety precautions require the use of the “three-point rule”. Three of your four limbs need to be in contact with the vehicle at all times. Two feet and an arm or two arms and a foot are the basics of this rule. This improves stability and support, reducing the risk of slipping or falling.

    This is just a sample of what a comprehensive driver safety program should include. JGS provides a full suite of services to assist your company in implementing an effective driver training program. Get in touch with us today for a personalized strategic plan.