Tips for Workers’ Compensation Policyholders During COVID-19

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Presented by: Acadia Insurance

The COVID-19 pandemic has caused many businesses to adjust or reduce their operations. Workers may have transitioned to working from home, having reduced hours, have been furloughed – some with or without pay, or have been laid off.

With this upheaval, it is important to maintain accurate payroll records to ensure you are charged appropriate premium for your Workers’ Compensation coverage. Workers’ Compensation policies are audited at the end of each policy term, and premiums will be adjusted based on your employee payroll and type of work performed over the course of the year.

In particular, make sure your records account for the following:

  • Any changes in payroll, including a reduction in staff or reduction in hours
  • If you have furloughed employees with pay during the business disruption, make sure to keep separate payroll records for these employees for the time they continue to be paid and are not working for you. Furloughed payroll will have a reduced or zero rate when used in the calculation of Workers’ Compensation premium, depending on state Workers’ Compensation rules.
  • If you have furloughed workers within the state of Massachusetts, Massachusetts has the additional requirement below:
    An employer who is making payments to paid furloughed workers must provide to their workers’ compensation carrier, within the later of 60 days of approval date of this rule or 25 days after the employer begins making payments to paid furloughed workers, a list of all paid furloughed employees, which shall also include the employee’s normal workers’ compensation classification, weekly wage, furloughed date, and anticipated date of return to work.

Tips for a Change in Operations
Many businesses are not able to run their typical operations because of states’ response to COVID-19 and, instead of closing, they may adapt their operations so they can maintain a flow of income. While businesses should take action for long COVID support of their employees, running the operation is also important. Other businesses have changed their operations to help respond to the pandemic by providing essential products. For example, many distillers have adjusted their operations to not only distill spirits but also to manufacture hand sanitizer to help with the shortage. If your business has had a material change in operations during COVID-19:

  • Contact your insurance agent to see if this change in operations could impact your how your Workers’ Compensation policy is priced.
  • Note changes in roles of your employees as part of your payroll reporting as they may be assigned to a different class code. Are employees engaging in work that is materially different from their prior role?

Maintain Workers’ Compensation Coverage
If you’ve had to make the difficult decision to lay off all employees during this time, it is important to maintain Workers’ Compensation coverage so you are protected when your business resumes operations. Maintaining accurate payroll records will ensure your premiums reflect your reduced business operations and staff during this period. More importantly, if you cancel your policy, you may find purchasing a new policy difficult or more costly when you resume operations as insurance carriers evaluate new customers on several factors, including whether the business has had continuous prior coverage in place.

Your insurance agent is an important professional resource who can help ensure your insurance keeps up with your business during this disruptive time. For more resources about managing your business during COVID-19, visit Acadia’s dedicated resource page https://www.acadiainsurance.com/coronavirus-covid-19/

Stop Leaks Before It’s Too Late

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Fire might be a homeowner’s greatest fear, but some insurance company will tell you that water is the far more common cause of property damage, even if you don’t live in an area subject to flooding. And it can come from many sources: A failing water heater, a burst pipe, a broken supply line under your sink, a clogged toilet, or even a split hose connected to your washing machine.

That is why it is critical to keep a close eye on your electrical appliances, such as a water heater, and have them repaired by contacting a popular Water Heater Repair company in your area. While noise from a water heater is normal, sounds like humming, knocking, screeching, or tapping should be investigated to rule out the need for repairs or replacement parts.

Just as it’s essential to have a smoke detector in each of your home’s bedrooms and common areas, you’d be wise to install leak detectors in places where water damage could start: The laundry room, water heater closet, the bathroom, under your kitchen sink, and so on. Most plumbers are able to install leak detectors and if you don’t already know a reliable plumber, simply search ‘plumber near La Cañada Flintridge‘ or wherever you live. It’s always better to be safe than sorry and if you do notice a leak somewhere in your home, it’s vital that you get it fixed as soon as possible.

Leaks need to be treated with urgency no matter where they come from or how they are caused. There are quite a lot of emergency plumbing services that could help you in this regard. This leak should be treated as soon as possible as dampness or waterlogging can result in mold growth. Although mold isn’t always visible, it can still seriously harm your home and health. You would then be required to look for mold damage restoration services that can help in clearing the mold and restoring the water damage.

Water shut-off devices are installed by a plumber directly onto your water line, a flow-based water leak detection device monitors the flow of water throughout your home. If an unusual activity or flow of water is detected – probably caused by a leak somewhere in your plumbing or pipes – the device will alert you first and then shut off your water supply to help minimize damage.

Many insurance companies also offer a break on your home insurance if you install water leak detection systems. A one-time investment can end up paying for itself over time.

Tips to Avoid Finacial Stress

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Whether you worry about contracting COVID-19 or not, chances are you share in the financial stress felt by millions during the last few months.

There are steps you can take today to help put some of your fears to rest. But first, a look at why controlling stress is important.

Tips to manage stress

In the case of the pandemic, the CDC suggests strategies for relieving stress. These include meditating, volunteering, taking breaks from reading the news, eating well, exercising, and using counseling or therapy services if needed.

If you are currently experiencing cash flow challenges and haven’t done so already, reach out to your creditors, and any other financial institution with whom you do business to discuss payment leniency.

The financial checkup

Your next move is to review the money that comes in and goes out every month to make sure you have a firm handle on your cash flow situation to possibly uncover some ways to reduce expenses.

Investors should ensure that their portfolios are well-balanced and reflect their financial goals, time horizon, and risk tolerance. Many investors rely on guidance from a financial professional.

Retirees can create dependable income streams (Annuities, Pensions, in addition to Social Security) to help shelter themselves from volatility. Those in the accumulation phase can establish an emergency fund of 3-6 months worth of expenses held in cash.

While it’s critical to review your financial position, it’s imperative to also address your risk management and estate planning needs.

This includes Disability Insurance, to protect your income if you become too ill or injured to work. If you have coverage through your employer, make sure you’re absolutely certain how the plan works – what % of your income it would replace (60% is most common but can be less) and if it would be taxable. The last thing you need at that point is an unpleasant surprise.

Life insurance is also of critical importance, to protect those who are financially dependent upon you. Be sure to review the coverage you have in place (if any) and make sure it’s up to date. Many times, people set up coverage early on, but don’t update it as life events occur, such as marriage, children, buying a house, etc.

The same concept pertains to updating the beneficiary designations on your retirement accounts, insurance policies, and address overall Estate Planning needs.

Being proactive with your finances puts you back in the driver’s seat, which may not solve all your immediate challenges, but can reveal a path forward to restoring financial wellness and help to manage stress.

5 Summer Wellness Tips

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Summer is an exciting time of the year that is typically filled with cookouts, outdoor activities, and other events. To promote a happy, healthy summer, try following these five wellness tips:

  1. Drink plenty of water. Dehydration in the summer months can make you more susceptible to heat exhaustion and heatstroke. To avoid symptoms of dehydration such as dizziness, weakness, and fatigue, try to drink at least eight to ten glasses of water throughout the day.
  2. Watch what you eat at summer cookouts. Common cookout foods like burgers and hot dogs are full of fats that can make you feel lethargic. Sticking to lighter more refreshing foods like fish, pasta salads and watermelon can give you more energy while still satisfying your appetite.
  3. Protect yourself from the sun. Protect yourself from the harmfulness of UV rays by wearing protective clothing, staying in shaded areas during the sun’s highest points (from 10 a.m. to 4 p.m.) and using a sunscreen with an SPF of at least 15. It may also be a good idea to install an air conditioner (get in touch with professionals from brookshvac.com/ac-installation/) so that you don’t have to worry about sweating at all times.
  4. Exercise safely outside. Exerting high amounts of energy in the heat raises your body temperature, making you more at risk for heat exhaustion and stroke. Make sure to drink lots of water, wear breathable clothing and have healthy snacks to fuel your body.
  5. Take a vacation to prevent burnout. Reduced productivity, exhaustion and decreased engagement are all symptoms of burnout. Taking time away from your work responsibilities to get your mind and body in check is essential to keep up work performance and overall health.

Workers Compensation and COVID-19 Related Furlough Payments:

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The Massachusetts Division of Insurance recently approved a new classification that will exempt COVID 19 related furlough payments to employees from Workers Compensation payroll. This means that furlough payments will not count as payroll when used to determine Workers Compensation premium. There are some very specific qualifiers for this program:

  1. The insurance carrier needs to be notified immediately if you intend to request that furlough payments be exempt from Workers Compensation payroll. We can assist you with this process. This new rule was approved on July 17th and insurance carriers need to be notified within 60 days of that date.
  2. Employers must have records listing furloughed employees, their normal Workers Compensation classification, weekly wage, furlough date and anticipated return.
  3. Furlough payments made between March 1st and December 30th are eligible. The program expires as of December 31st 2020.

Many other states have adopted similar provisions to exempt furlough payments from Workers Compensation payroll. Please contact your representative immediately if you believe that your policy will qualify for this program.

Business Interruption Insurance and COVID-19

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The COVID-19 pandemic and the various measures designed to contain its’ spread has had an unprecedented impact on the business community.  Many businesses, such as those in the hospitality sector, have had to cease or drastically curtail operations with uncertain prospects for a restart.  Not-for-profit organizations are seeing fewer donations at a time when many are seeing a higher demand in services due to the human toll of social isolation.  Businesses on the other end of the spectrum that have been able to continue uninterrupted are certain to be impacted in the future due to the economic slowdown.  Suffice it to say that the vast majority of organizations have had some level of negative impact in the past two months that will continue in the near future.

 

Business Interruption insurance has been a frequent topic in recent weeks as a possible avenue for organizations to recover lost profit and pay for continuing expenses.  There have been a number of high-profile lawsuits against insurance companies for denying these claims.  A recent and local example is the lawsuit by Legal Seafoods against their insurance carrier for a claim denial. Insurance policies vary in the scope and range of coverages so it is impossible to state that all of these types of claims should be covered or denied.  However, we believe that the majority of these claims face difficult prospects for recovery.

 

Business Interruption (also known as Business Income) is a coverage commonly found on commercial property insurance policies.  In some cases, there is a specified limit while other types of policies designed for smaller businesses are written on an “actual loss sustained” basis for a 12-month period.  The coverage is designed to allow a business to recover continuing expenses (payroll, rent, leases, taxes, etc.) and lost profit when it sustains a covered property loss that results in a shut down or curtailment operations.  An additional component called Extra Expense is often included with Business Interruption.  Extra Expense addresses the additional costs a business sustains over and above normal operating expenses that are required to expedite recovery.  A shut down required by “Civil Authority” is a common feature that can extend coverage when a municipality mandates that a business close due to some form of physical damage in the nearby proximity (i.e. gas main explosion).  In all cases the coverage trigger is a covered property loss such as fire, wind, vandalism, or collapse.

 

There are several challenges for Business Interruption claimants but two of them stand out.  The business closures or curtailments have been primarily due to government mandates designed to minimize or slow the spread of a virus.  In most cases there was no physical damage or direct contamination requiring the business closure.  Secondly, most policies contain a specific exclusion for a virus.  Exclusions for communicable diseases and viruses were almost universally added starting in 2006 as a result of SARS and have been reinforced by other outbreaks such as H1N1 and Zika.  The primary reason for these types of exclusions is that an event or series of related events impacting millions of individuals and businesses throughout the country at the same time period is “uninsurable”.   It is estimated that the monthly impact for COVID-19 is in the $250 to $350 billion range.  By comparison, the aggregate insured loss from natural disasters was $52 billion in 2018 for the full year.

 

Legislation has been introduced in a number of states, including Massachusetts, designed to compel the insurance industry to pay for Business Interruption losses due to the COVID-19 related shut downs.  These legislative actions will be contested on constitutional grounds that will likely draw out for years.  Perhaps a solution can be developed that is similar to how Congress and the insurance industry responded to the September 11th attack.  From purely an insurance point of view, the attack on September 11th was an unforeseen tragedy that generated more than $40 billion in losses in addition to the human toll.  Human and economic losses continue with high levels of cancers for first responders that worked on recovery at World Trade Center.  Congress and the insurance industry developed the Terrorism Risk Insurance Act that allowed insurance companies to absorb the initial $200 million in claims associated for a single terrorist event with the Federal government taking on the excess.

 

We have spoken with many of you over the past few weeks regarding this issue.  We encourage any of you with questions on this issue to reach out to us.  Some of you have decided to file claims and we are certainly willing to discuss and assist others that might be contemplating the same action.  Situations are unique and policy conditions can differ.  We wish all of you a speedy recovery from the recent events and, above all, good health.

Time For Spring Home Maintenance?

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Over winter houses are subjected to all types of bad weather and poor conditions during the cold dark months. There are many things that you as a homeowner might want to consider attending to once the warmer seasons come back around. Whilst there might be some tasks such as inspecting the roof or painting the exterior of your home, which could be done with possible assistance with tools potentially found on websites similar to platformsandladders.com/rolling-ladders/ or equipment that might be found in local handyman stores. Here is a list of places where you the homeowner can get started in preparing your house for the summer.

You may want to start with simple spring cleaning tasks:

  • Change and/or service your furnace filters, HVAC, smoke, and CO detector batteries. If needed, hire professionals providing services in HVAC Greensboro, or elsewhere, to give your appliances and systems, the professional check or maintenance they need. Perhaps, now is also a good time to see whether you need to get more heating oil ordered from somewhere like https://www.bondedoil.com/ after the winter months
  • Deep-clean your oven, dishwasher, coffee maker and outdoor grill, as well as drapes, upholstery, cabinets, floors, vents and baseboards
  • Clean your mudroom, garage and outbuildings, and, in the process, inventory items that need replacing
  • Look at any roofing or water related problems that you might have, and get it repaired by professionals similar to the professional Florida Southern Roofing services in Sarasota, FL (or wherever you might reside)

You can always fall back on the internet to provide you the right information in regards to this domain. Check out the Chubb Insurance brochures: How to Prepare your Home and Garden for Spring and Summer infographic or their Top 10 Spring Cleaning Tasks for more ideas and tips. Also, it’s important to remember there are common household cleaning products you should never mix, such as bleach and ammonia or bleach and rubbing alcohol. Learn more.

Then tackle more involved home maintenance inventory projects.

We can all use a little help keeping track of the home maintenance projects we need to do, and now there’s software and technology that can help.

With the HomeZada app, you can manage your home and projects, keep a digital inventory of your photos, receipts, and documents, create a home maintenance schedule program, and manage remodeling projects. HomeZada generally charges $60/year, but Chubb PRS clients are eligible for a rate of $45/year. Click here to get HomeZada now.

Stay safe in the process.

Cleary Insurance wants to make sure you and your family stay safe and healthy. Only handle projects yourself that you feel you’re truly qualified to do. You may be better off leaving projects with electrical components or those at heights, for example, to professionals who have the right equipment and skillset.

Simple Ways to Improve Your Health

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Get Active:

Did you know that exercising regularly could help you fight off chronic conditions and diseases? Exercise can help control your blood pressure, blood sugar and weight, raise your “good” cholesterol, and prevent diseases such as colorectal cancer, heart disease and Type 2 diabetes. If you’re ready to get active, keep the following tips in mind:
  • Get at least 150 minutes of moderate-intensity aerobic activity (e.g., briskly walking) or 75 minutes of vigorous-intensity aerobic activity (e.g., running) every week.
  • Incorporate muscle-strengthening exercises at least two days a week.
  • Avoid injuries by doing the following three steps each workout:
    • Warm up: Warming up allows your body time to adjust from rest to activity. Always remember to gradually increase the intensity of your warmup to reduce stress to your bones, muscles and heart.
    • Cool down: As with warming up, cooling down should include movements similar to those in your workout, but at a gradually decreasing level of intensity.
    • Stretch: After cooling down, stretching helps to build flexibility and range of motion. When stretching, remember to use gentle, fluid movements and to breathe normally.

    After an active and aggressive workout, however, it is equally necessary to take shower in order to feel fresh again. You can also elevate your bathing experience and the relaxation it gives by including CBD based bath salt or soap (click here to by some) in your shower routine.

Getting a Good Night’s Sleep

Getting enough sleep isn’t always possible, but inadequate sleep is a bigger problem than you may think. Getting an adequate amount of sleep is vital to staying healthy and avoiding fatigue, which is why those who often suffer from insomnia consider ingesting CBD capsules or pills (perhaps bought from Blessed CBD and its likes) to ease their mind and get a good night’s sleep. Remember that fatigue causes drowsiness, moodiness, loss of energy, inability to focus, and lack of motivation and alertness, which can, in turn, cause decreased productivity and even be a safety hazard. Hence, aim for seven to eight hours of sleep each night. Even if it means rearranging your schedule, make sleep a priority.
If you are struggling to fall asleep or have a delayed sleep wake disorder or something similar, try the following tips:
  • Maintain healthy habits, such as eating nutritiously, exercising regularly, managing your stress levels and not smoking-all of which will help you sleep better at night and give you more energy throughout the day.
  • Create and stick to a sleep routine. Go to bed and wake up around the same time each day, including on weekends. Make sure your bedroom is at a comfortable temperature and is quiet. Engage in a relaxing activity prior to bedtime such as listening to soft music or smoking cannabis (head to mmj express or like websites to find some premium strains).
  • Limit caffeine, alcohol, nicotine, large meals and rigorous exercise within a few hours of bedtime.

Eating 101

Eating a well-balanced diet is key to maintaining your health. In fact, improving your diet could help you live longer and reduce the chances of developing costly chronic diseases. Keep the following tips in mind when you’re getting started on your healthy eating journey:
  • Get a personalized eating plan. Speak with your doctor to develop a plan that will give you the amounts of each food group you need daily. Your doctor may recommend you seek out a registered dietician or nutritionist to create the best plan for you.
  • Set realistic goals. You are more likely to succeed in reaching realistic goals when you make changes gradually. Start with small changes.
  • Balance your plate with a variety of foods. Fifty percent of your plate should be filled with fruits and vegetables, 25 percent with lean meat, poultry or fish, and 25 percent with grains.
  • Eat slowly. It takes between 15-20 minutes for your brain to get the message that your body is getting food. When your brain gets this message, you may stop feeling hungry.
  • Practice portion control. A portion is the amount of food you choose to eat. Talk with your doctor or visit the United States Department of Agriculture’s website to learn more about proper portion sizes and daily food intake customized to your age, gender and activity level.
Please speak with your doctor if you have questions about fitness programs and/or healthy eating or how you can get started. If these tips do not help you sleep better, or you suspect you have a sleep disorder such as sleep apnea or insomnia, see your doctor.

Financial Moves to Consider During the COVID-19 Pandemic

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The COVID-19 outbreak has spurred an economic crisis as well as a health-related one. Millions of Americans are now unemployed, frightened, and wondering how they’ll pay their bills in the coming weeks or months. And while it’s a scary time to be living through, there are a few moves you can make to protect yourself financially.

  1. Boost Your Emergency Fund (if possible) – Having emergency savings is crucial at all times, but it’s especially important during periods like this, when unemployment is rampant and economic uncertainty abounds. A solid emergency fund is one with enough money to cover three to six months of essential living expenses, and right now, it certainly wouldn’t hurt to hit the higher end of that range. If you’re still working, use your paycheck to pad your savings — especially if you don’t have three months of expenses in the bank.
  2. Leave Your Stock Portfolio Alone – The stock market has been swinging lately, and while it may be tempting to cash out investments to avoid further losses, doing so will only lock in any losses you’re already looking at. Rather than go that route, remind yourself that if you sit back and ride things out, the stock market is likely to recover in time. That said, you don’t have to leave your stock portfolio alone if what you’re doing is buying more stocks. Now’s a great time to invest in quality companies whose stock is on sale, so if you’re good on the emergency savings front, you can use your spare cash to add to or diversify your portfolio.
  3. Keep Putting Money Away For Retirement – When the prospect of unemployment looms over you, you may not give a hoot about what your finances will look like 20, 30, or 40 years from now. But just as now’s a good time to add to your stock portfolio, so too is it a good time to keep funding your 401(k) or IRA, provided you’re financially able to do so. The money you invest in that account now can be used to score discounted investments that could grow exponentially over time.
  4. Apply For a Home Equity Line of Credit – Even if you’re still working today, you never know whether the ongoing crisis will force you out of a job. And if you’re already unemployed, it could take quite a long time to secure a paycheck again. As such, having access to extra money is crucial, so if you’re low on emergency savings but own a home, it could pay to apply for a home equity line of credit. That way, you’re not borrowing money you immediately accrue interest on, as would be the case with a home equity loan. Rather, you’re giving yourself the option to borrow as you need to.

A final thought: The most important thing to do now is take a deep breath and resist the urge to panic. Panic leads to irrational thinking, which leads to poor financial decisions.  The COVID-19 pandemic is a terrible and frightening situation. There’s uncertainty surrounding how long the outbreak will last, how bad it will get, and many other variables. But we will get through it. So make some smart and rational financial decisions and focus on what’s really important — your health and the health of the people you care about.

 

Works Cited
Backman, Maurie. “5 Smart Financial Moves to Make During the COVID-19 Outbreak.” The Motley Fool, 7 Apr. 2020, www.fool.com/retirement/2020/04/07/5-smart-financial-moves-to-make-during-the-covid-1.aspx. Accessed 7 May 2020.
“Coronavirus and Your Finances: Here’s How to React.” The Ascent, 13 Mar. 2020, www.fool.com/the-ascent/banks/articles/coronavirus-finances-how-to-react/.

HR Compliance Bulletin: IRS Issues Guidance on Tax Credits for Coronavirus Paid Leave

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Small and midsize employers may begin using two new refundable payroll tax credits to obtain reimbursement for the costs of providing coronavirus-related leave to their employees, the U.S. Department of Labor (DOL) and Internal Revenue Service (IRS) announced on March 20, 2020.

This relief is provided under the Families First Coronavirus Response Act (the Act), which was enacted on March 18, 2020. The Act provides funds for employers with fewer than 500 employees to provide paid leave, either for their employees’ own health needs or to care for their family members. The Act aims to help employers keep workers on their payrolls while ensuring that workers are not forced to choose between their paychecks and the public health measures needed to combat the coronavirus (COVID-19).

This Compliance Bulletin provides the DOL and IRS’ guidance.

HR Compliance Bulletin: Guidance on Tax Credits for Coronavirus Paid Leave

If you have any questions or would like additional information please contact our office at 617-723-0700.