“Prepare & Prevent, Don’t Repair & Repent”

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Presented by: Jonathan Hall

When was the last time you checked your smoke alarm? How about your fire extinguisher? Where will you and your family meet when you need to evacuate? If you don’t know the answer to these questions, you are not alone. September is National Preparedness month and it’s important for all of us to take a moment to ensure what we value is safe. The best way to protect yourself is to prevent a loss from occurring.

Did you know that the US Fire Administration found in 2017 that every 24 seconds, a fire department in the United States responds to a fire somewhere in the nation? In addition, a home fire occurs every 88 seconds and half of home fire deaths happen between 11 p.m. and 7 a.m. Taking steps to prepare and prevent will save your life and your property. My family and I went through our own fire safety and prevention planning this month. We found two malfunctioning fire alarms and a fire extinguisher that expired four years ago!

 

“Prepared, Not Scared”

The thought of needing to rely on an emergency kit or plan seems frightening, but not something I prioritize in my daily life. Having an emergency plan for any type of disaster will ensure you and your family are prepared in the case of a fire, hurricane, tornado, earthquake, or any other potential disaster. If your house is located near a forest, it might be possible for it to be burnt into ashes by wildfire. To prevent such conditions, you may need to protect your home with a fire defense plan that might avert major loss to the structure. Also, creating an emergency kit to keep in your home and your car takes moments vs. what it could save you in the event it wasn’t accessible when you needed it most.
You can also create your own custom emergency plan for any weather related scenario by visiting: Connect with Weather. Ready.gov/September provides a vast amount of information on what you’ll need to plan for in the event of an emergency. They also have several characters and fun activities if you’re creating a plan with kids. I feel better prepared in the event something does happen. As Gandhi said “the future depends on what we do in the present.”

References

https://www.ready.gov/

https://www.usfa.fema.gov/data/statistics/

http://www.connectwithweather.com/create-your-plan

https://www.usfa.fema.gov/prevention/outreach/smoke_alarms.html

 

Are You Ready for the Massachusetts Paid Family and Medical Leave?

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Be Prepared for the January 1, 2021 Law

Starting in 2021, the state of Massachusetts will offer paid family and medical leave benefits to employees. Payroll deductions for employees begin October 1, 2019. This program allows employees to receive a portion of their pay while on leave to recover from an illness or injury, bond with a new child, take care of a sick or injured family member or certain military-related events.
  • Eligible employees: Consistent with the financial eligibility requirements for unemployment insurance.
  • Benefit percentage: Dependent on if employee earns more or less than 50% of the Massachusetts average weekly wage.
  • Elimination period: Benefit payments begin on the 8th day.
  • Maximum benefit payment period (within a 52 consecutive week period): 12 weeks family leave. 26 weeks family leave to care for a covered service member. 20 weeks medical leave. 26 weeks in aggregate for family and medical leave. Consecutive leave isn’t required. Intermittent leave is acceptable (e.g. each Tuesday for physical therapy appointment).
  • Maximum benefit: $850/week for the first year. 64% of the state average weekly wage annually thereafter. In many cases it’s important to maintain your current short term disability program so higher wage earners who gross more than $70,000 annually will not be impacted and employees will have the ability to receive more than 26 weeks’ worth of benefits. Carriers will be able to adjust your rates to accommodate for the state being primary payer.
Premium payment
The premium cost for the family and medical leave benefit is 0.75% of employee wages up to the Social Security cap. The medical leave contribution is 0.62% of payroll. The family leave contribution is 0.13% of payroll. Who pays the premium depends on the size of the employer:
  • Employer has less than 25 employees – Employees pay premiums.
  • Employer has 25+ employees – Employees and employers share the premium. Contribution rates are as follows:
    • Medical leave – 60% employer, 40% employee
    • Family leave – 0% employer, 100% employee

Employees aren’t charged more than the state’s rate. Employers may choose to pay more to give their employees coverage beyond the minimum requirements of the state plan.

Let’s look at an example
Olivia is expecting her second child soon. While her oldest son is in pre-school, she works for a large retail chain in Massachusetts and is paid $14.00/hour. Her schedule is consistent at 30 hours/week — making her weekly pay $420. Olivia gives birth to her baby and doesn’t experience any complications from the birth. Because of the Massachusetts paid family and medical leave, she is guaranteed 12 weeks of paid family leave. Because Olivia makes less than 50% of the state average weekly wage, she receives 80% of her average weekly wage, which is $336/week for a total of 12 weeks.
For more information please refer to the Massachusetts Department of Family and Medical Leave (DFML)
https://www.mass.gov/guides/prepare-for-paid-family-and-medical-leave
Information in this letter is courtesy of Principal Life Insurance Company

 

Auto Post Accident To Do Suggestions

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Presented by Christopher F. Hawthorne, CPCU, CIC

 

It is frustrating to see a client’s auto carrier pay a claim to a third party based on false information.

An example being a client who had a car, with four people in it, pull in front of him and slam on their brakes. He stopped his vehicle but he did touch the other car. There was no visible damage to either car and no one was injured.  He exchanged information but did not call the police. He then filed the report of the accident in case a claim was made against him.

Soon after we received notice that five people were claiming to be injured and that the other car was totaled. The carrier paid $190,000 and stated without evidence and due to the fact it was a rear-end, they had to make the payment.   We see variations on this all too often.

To help avoid this situation, doing the following will put your insurance carrier in a better position to defend you and not pay false or inflated claims.

Once you have made sure you are safe, we suggest you:

  1. Do not admit fault, apologize or offer unsolicited information such as you were rushing or that you are very busy.
  2. Call the police with goal of having an official report filed to support your information. Request officer’s name and badge number.
  3. Obtain name and contact information of driver and the auto’s owner.
  4. Obtain the name of the other autos insurance carrier and policy number if possible.
  5. Get the name of all passengers in the other auto and note where they were sitting in the car.
  6. Obtain the names of any witnesses and their contact information.
  7. Ask police to ask each person if they are injured or if anything was damaged (EX; Musical Instruments).
  8. Get the year, make, model and license plate number of the other auto/s.
  9. Take pictures of your auto, the other auto, as well as, any surrounding aspects that might be useful such as a traffic sign that is shrouded by trees.
  10. If the weather is a factor, try to capture with picture and print out the weather report for that day.
  11. Record name and contact information of anyone in your auto.
  12. Complete an accident report and submit to Cleary Insurance as soon as possible.

If police are not called, do not leave until the other party had driven away.  We have seen situations where both parties agree that the police are not needed, one party departs and the other party then calls the police.

If police are called, do not leave the scene of the accident until the police arrive.  If you can no longer wait, do not leave without calling the police and getting permission. If you leave and the other party stays, you could be charged with leaving the scene of an accident.

If you would like an accident form to keep in your auto, please contact your Cleary representative.

By obtaining and recording the above information, you can put your insurance carrier is a stronger position to defend you and reduce or eliminate claim payments. As always, it takes a team effort!

Should Parents “Go for Broke” on Youth Sports?

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Many parents encourage their kids to play sports in middle school and high school because they truly believe it’s good for their children’s physical and mental well-being. Athletic participation also provides an opportunity to instill discipline and develop social skills that could have a positive impact on their children’s futures.
But lofty hopes and dreams may inspire some parents to overspend on youth sports. The costs can really add up at more competitive levels, when payments for professional instruction, specialty equipment, and travel kick into high gear. On average, families with children who competed on elite teams spent an average of $3,167 per player in 2018, up from $1,976 in 2013.

Surveys suggest that many parents are willing to make big financial sacrifices to cover these costs, possibly even taking on credit-card debt or delaying retirement. Unfortunately, some parents may have unrealistic expectations, such as those who are confident their children will become professional athletes, despite the very long odds against it. That doesn’t mean parents should give up hope on their kids, instead of spending money themselves, they can discuss the team fundraiser ideas with the school administration. Schools can contact the organizations that could help in acquiring team sponsorships and funds. Those funds can help yours and other children in sports without parents having to take up financial responsibility for it.

Parents who assume that investing in competitive athletics will pay off in the form of college scholarships are also likely to end up disappointed. Only about 2% of high school athletes benefit from athletic awards, and few of them are “full rides.” College coaches often have more roster spots to fill than available scholarships, so many athletes receive partial awards that may cover only a small fraction of tuition costs.
Although most parents have good intentions, there may be some unhealthy side effects. According to a 2016 research study, young athletes whose families invested a large portion of their household income to sports felt more pressure to succeed and were less likely to enjoy the experience. And even if their kids love to play, parents should attempt to keep the costs in an affordable range so that other important financial goals (such as saving for college and retirement) are not neglected.
Sources: The Wall Street Journal, April 21, 2019;
Family Relations, April 2016

Cleary Insurance Featured Speaker at The Boston Arts and Business Council’s Seminar

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Pictured (L-R): BOSTON A&BC Operations Director Alexa Dearborn, President Jim Grace, Cleary’s Chris Hawthorne, Volunteer Lawyers Association Exec. Director Luke Blackadar.

Cleary Insurance was a featured speaker at the Boston Arts and Business Council’s Seminar for the National Arts Strategies Program. The NAS gathered in Boston to learn about business related topics for artists and art non-profits. Cleary’s Chris Hawthorne led a session on structuring insurance programs for Public Artists and non-profits.

Information Management Liability aka Cyber!

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Presented by: Christopher F. Hawthorne, CPCU, CIC

Technology has delivered an exposure for those who hold, use or depend on information be it paper or electronic. Just as inventory once was the life line for a business, data and information now takes their place alongside the tangible assets of a business. This can be data in the form of client records, billing operations, employee files, websites and inventory management. When data or information is shutdown or stolen, it can represent a large loss. The loss can be both a first party loss (out of pocket) and a third-party loss (demanded by another) as well as trigger government action and penalties against the business.

First party losses are out of pocket expenses for a business such as rebuilding lost data, cost of forensic studies to determine what was lost, cost to restore systems and loss of income from business interruption.

In between first- and third-party losses are losses from extortion or ransom. A criminal may demand money to allow a computer system to released from any hold the criminal has on it or to stop a website from being overrun by an attack. While the cost is out of pocket it is caused by a third-party demand.

Third party losses arise when there is damage or loss of another’s data or private information, damage to their hardware or to their website.  The cost associated with third party losses are notifying parties of their lost or released information, credit monitoring, defending from law suits, and paying settlements.

In addition, governmental actions (fines and penalties) may arise on both state and Federal levels. It is worth noting, that Massachusetts has the toughest data privacy laws in the nation.

Neither Property nor General Liability insurance pays for these types of losses.

There are several carriers now offering coverage for this exposure and many provide hotlines and proactive risk management assistance. In addition to obtaining this coverage, it is worth reviewing your technical / system support vendor to make sure the job description includes “security and compliance” as opposed to simply having the technology function.

In summary, the Information Management Liability (Cyber) exposure requires the attention of every business from perspective of insurance protection and risk management mitigation. To fail to do so is to put the survival of the business at stake.

 

Photo by Pixabay

PCORI Filing Deadline Looming

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The Affordable Care Act imposes fees on issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans to help fund the Patient-Centered Outcomes Research Institute (PCORI). PCORI is responsible for conducting research to evaluate and compare the health outcomes and clinical effectiveness, risks, and benefits of medical treatments, services, procedures, and drugs.
Plan sponsors must pay the PCORI fee by July 31 of the calendar year immediately following the last day of that plan year.
  • Policy Or Plan Ending Date in the months of: Jan. 2018 – Sept. 2018
    File return no later than: 7/31/2019
    Applicable rate: $2.39
  • Policy Or Plan Ending Date in the months of: Oct. 2018 – Dec. 2018
    File return no later than: 7/31/2019
    Applicable rate: $2.45
  • Policy Or Plan Ending Date in the months of: Jan. 2019 – Sept. 2019
    File return no later than: 7/31/2020
    Applicable rate: $2.45
PCORI fees are reported annually on the 2nd quarter Form 720 and paid by its due date, July 31st. The fees are based on the average number of lives covered under the policy or plan.

The types of plans that must pay the PCORI Fees by July 31, 2019 include the following

  • Health/accident plans
  • HRAs with a plan year that began 1/1/2013 that are not an excepted benefit (Employer contribution is greater than $500)
  • Health FSAs with a plan year that began 1/1/2013 that are not an IRS excepted benefit (Plan has employer contributions with the maximum reimbursement greater than two times an employee’s salary reduction election or employer contribution is greater than $500)
  • Retiree plans

Please Note that the PCORI fee is nearing the end:

The PCORI fee will not be assessed for plan years ending after September 30, 2019. This means that for calendar year plans, the last year for assessment is the 2018 calendar year. For non-calendar year plans that end between January 1, 2019 and September 30, 2019, there were be one last PCORI payment due by July 31, 2020. There will not be any PCORI fee for plan years that end on October 1, 2019 or after.

Please click on the links below to access Form 720 and Form 720 instructions.

Budgeting, Discipline and Looking Ahead: Getting Started in Life Planning

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Achieving your financial objectives has a lot to do with how well you plan for your family’s future. It’s important to begin this process sooner rather than later because the demands of work and a busy family life can force long-term planning onto your “to-do” list. Being ready for unexpected expenses and having a plan for your children’s futures also shouldn’t be delayed, because by the time you get around to them, you may have other financial commitments and too much debt to start saving.

Savings

Saving is fundamental to financial planning, and it’s still one of the best ways to protect yourself against financial emergencies. Budget carefully, purchase wisely and plan ahead so you’re well-positioned to grow your savings. Bear in mind that saving is about more than preparing for the future; these funds are also there to shield you from the financial damage that emergency home repairs, serious illness or job loss can cause, and from having to rely on credit cards and other high-interest options.

College savings

According to US News & World Report, annual public tuition will cost more than $40,000 by 2030, with a four-year degree totaling an expected $205,000. Those are daunting figures for someone who hasn’t set aside money for a child’s college fund. If you want to help your child achieve a degree so they can get a good job and succeed in life, consider starting a college 529 plan as soon as possible.

Retirement savings

For young couples, retirement is little more than a vague idea, something their grandparents talk about. It’s difficult to feel a sense of urgency when you’re looking at 30 to 40 more years of earning money and building a life. But if you enroll in a retirement plan at work and continue investing in a 401(k) and Roth IRAs, your retirement fund will continue to grow and be there for you when it’s needed.

Life insurance

Purchasing a death benefit for your family is one of the first steps in making sure your loved ones are protected should you die unexpectedly. Joint life insurance policies cover both spouses, but tend to be more expensive and may not be the best option for some families. A 30-year term life policy can be an excellent option for a young family because it’s there for you when it’s most needed (i.e. until the kids are out of college and your mortgage is paid off). That being said, you should consult your insurance agent when choosing a life insurance plan since there are several types of plans and deciding which is best for yourself can be quite difficult. Moreover, ask your agent if he uses something like a life insurance quote engine (https://ilife.tech/life-insurance-quote-engine-for-agents/) that can help him to easily access a transparent database of the highest-rated life insurance plans quickly. If he takes the help of such a technological tool, he could perhaps provide you with a greater selection of plans that can better suit your needs.

Estate planning

Estate planning is something that people often concern themselves with later in life, perhaps when retirement is within reach and estate plans need to be finalized. But there are fundamental aspects of estate planning that require your attention now because they come into play if you or your spouse die unexpectedly or become incapacitated.

When young couples prepare a will, it’s generally so they can name a guardian for their children, but a will also provides for the distribution of money, assets and property. A living will or advance directive, another aspect of estate planning, establishes your wishes concerning end-of-life care. For further information about life planning, consult a professional financial planner or estate planning expert.

When you’re young, life planning tends to be about financial basics, like saving money, establishing retirement and college funds, getting life insurance, and taking care of estate planning basics. Careful budgeting will make it easier to stick to a plan and build the kind of savings and college funds you’ll need later on, so stay disciplined and allow those seeds you planted to grow.

Courtesy of Pixabay.com

Summer Home Improvement Ideas

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JD Hostetter – a siding and roofing company in Indianapolis

When you own a home, there are always chores and tasks on your “To Do” list. Summer is the perfect time to attend to many outdoor projects and to plan ahead for others. And, if you can’t bear the thought of wasting precious outdoor time on home improvement endeavors, you can always hire someone to do them for you.
Improvements That Pay
It is always a good idea to focus on projects that add to the resale value of your home, such as adding a deck or a patio; installing a lawn sprinkler system; or landscaping your property.
Decks and patios can add visual interest to your property, while also providing you with an enjoyable living space. Hence, if you’re thinking of building a deck, get in touch with a deck contractor in Denver or anywhere near your house. Sprinkler systems water your lawn evenly and allow you to dictate the timing, which can be handy during water advisories. They also prevent waste and lower water bills; homeowners usually use 50 percent more water on their lawns than necessary. Landscaping is an easy way to improve the look of your property.Exterior Improvements

If your home already has a deck, summer is an ideal time to seal it and repaint or stain it. Sealing the deck helps to preserve the wood and protect it from weather damage while painting or staining it give it a sharp, fresh look. Additionally, you could also install one of those Edmonton deck covers. If money is a concern, contact your local household hazardous waste program – there is often unopened paint available.

Paint, wherever you obtain it, is also handy for painting the exterior of your home. Paint spruces up your home, giving it a fresh, new look; but it also serves a practical function, protecting against moisture and ultraviolet rays.

While you’re eyeing the exterior of your home, consider a couple of other tasks that are much more practical in summer than winter:

Cleaning your eavestroughs and washing/and or replacing your windows.
Eavestroughs should actually be tended twice a year, and they’re not hard to do if you own a ladder. While you’re clearing away the leaves and debris, check for any cracks or leaks.

Often this is the best time to also complete more complex home improvements. Things such as re-tiling your roof and installing or replacing siding can be better completed once the weather has improved as both can sustain damage in bad weather conditions. Potentially speaking to companies such as JD Hostetter – a siding and roofing company in Indianapolis or even local recommendations, you might get from friends can possibly be useful points of contact.

Focus On Your Windows

Looking out the windows at the flowers and greenery makes summer more of a pleasure, so make sure you can enjoy the view by cleaning your windows inside and out. If you choose to do it yourself, there are inexpensive cleaning solutions that give the glass a real sparkle:

A vinegar-water mixture or a few drops of dish soap in warm water.
While you’re washing your outdoor windows, consider applying caulk around the frames. Caulk keeps outdoor air from seeping in through potential cracks, lowering heating and cooling bills. It also prevents water from seeping into your walls to cause mildew and rot.
You can also give your windows a fresh, new look by replacing them. If you’re seeking better insulation or more sunlight, this is the time of year to invest.

Spruce Up The Grounds

When it comes to landscaping, one easy way to give your grounds a fresh look is to add mulch. Apply three to eight centimetres of mulch to your flower beds to give them a fresh, new look. At the same time, you’ll be helping to smother weeds and to hold moisture in, reducing the need for watering.You can check with your local utility company or tree service to see if they offer wood chips or shredded bark for use as mulch; they often sell it cheaply. Just be aware that some imported bark may hold pests such as woodworm or termites, so be careful before spreading it anywhere near anything that could be damaged by an attack. If you’re unfortunate enough to receive bark full of pests, get in touch with exterminators in PA or other exterminators in your area as soon as possible to rectify the problem before it gets out of hand.

Summer is also a good time to consider the shade available on your property and think about whether it’s adequate or not. It’s a perfect moment to plant trees that will provide cover in the future, but if you’re seeking relief from the sun right away, there are options: umbrellas, pergolas or covered porches. There’s no need to suffer in the hot sun if you prefer the shade.

Time For A New Driveway

Summer is the appropriate time to repave your driveway. You can choose asphalt or concrete; asphalt is less prone to cracks. Summer is its season, because asphalt adheres better when it’s warm. With a shiny, new driveway surface, you’re less likely to experience potholes come winter!

Good luck with your projects and if you need insurance advise don’t forget to call your Cleary Insurance Account Executive for help!