Insurance Insights: The Cleary Insurance Blog
The Cleary Insurance blog covers insurance, risk management, and financial planning for New England businesses and individuals. Our team of licensed advisors and specialists publishes regular articles on commercial and personal coverage, employee benefits, life and financial planning, and insurance compliance. Browse recent articles below, or use the category filters to find topics relevant to your business or personal situation.
Retirement Planning Basics
Items to consider when creating a retirement plan:
Longevity
With average life expectancy now in the 80s it is likely that you could experience a retirement period that lasts 20-30 years. Your plan must be flexible enough to account for a long retirement.
Expenses and Inflation
Inflation is always a powerful enemy in any retirement plan, especially for a retirement that could last multiple decades. Your living expenses could increase multiple times over a long retirement. And, certain expenses such as medical expenses could easily outpace inflation.
Income
Any extra income, whether from part-time work or from delayed retirement, could make a substantial difference in your retirement income. Your selected social security start date can also make a meaningful difference.
Withdrawals
Almost everyone will need to augment their retirement income with withdrawals from their portfolio assets. Many recent studies have indicated the importance of reasonable and sustainable withdrawal rates. A generally accepted withdrawal rate is 4%, but every case is different.
Asset Allocation
It is always important to have a reasonable asset allocation, but it is especially important in or near retirement since your time horizon to recoup any losses is shorter. For instance, you can allocate a portion of earnings in investments like a gold IRA or similar retirement plans after taking financial advice from your trusted advisor or websites that can give proper knowledge and reviews of investment plans. A proper allocation that balances income needs with growth needs is critical. Asset allocation does not guarantee a profit or protect against a loss in a declining market.
Other Goals
Other financial goals (purchasing a vacation home or subsidizing your parents’ care for example) will impact your retirement. This analysis will take into account any other goals you have defined.
Snow and Ice: What is Your Liability?
Commercial property owners need to be concerned about potential liability issues involving ice and snow. While the level of landlord and property owner responsibility varies by state, a consistent duty of responsibility exists to ensure that sidewalks, driveways and parking lots are maintained. Some states, such as Massachusetts, have increased the level of landlord responsibility for the removal of ice and snow. A Massachusetts Supreme Court ruling in 2010 applied a “reasonable care standard” that requires landlords to take reasonable steps to keep their property free from dangerous conditions such as the accumulation of ice and snow. Landlords and property owners must therefore act as a “reasonable person” to make sure snow and ice are removed to make conditions safe.
The following are a sample of management considerations for dealing with snow and ice removal from public areas such as parking lots and sidewalks:
- Develop and implement a written plan to define issues such as frequency of removal.
- Designate someone to monitor weather conditions, walking surfaces and effectiveness of removal practices.
- Record removal activities in a log that includes date, time, weather condition and action.
- Use a professional snow removal contractor. Be clear about performance standards and make sure contractor carries appropriate and sufficient insurance.
- Be aware of melting and refreezing.
Many cities and towns have passed ordinances that specify property owner requirements for maintaining adjacent sidewalks. For example, the City of Boston requires commercial property owners to clear sidewalks within three hours of snowfall ending or three hours after sunrise if it snows overnight. Worcester has a similar requirement but dictates sidewalks must be clear within 10 hours after snow ceases to fall. Violators are susceptible to a daily fine. Check with your city or town for specific snow clearing responsibilities. Examples of ordinances for some local communities can be found below:
Boston: Snow Removal
Worcester: Snow Emergency Guidelines
Somerville: Shoveling Regulations and Information
Quincy: Be a Good Neighbor
Cambridge: The Works Property Owner Responsibility
At Cleary, we will evaluate your business exposures and work with you to develop a comprehensive plan to safeguard your business. Give us a call today at 617-723-0700.
Winter Storm Weather Preparation
With severe winter weather in the forecast, it’s important to take some time now to be sure you’re prepared. Here’s a list of items to have on hand before the storm begins.
Check your food and water supplies
- Water-at least a three-day supply; one gallon per person, per day
- Food-at least a three-day supply of non-perishable, high-energy, easy-to-prepare foods
- Baby formula and food
- Pet food
Tip #l
Set your refrigerator and freezer to the coldest settings in case the power goes out.
Prep your heating and lighting sources
- Have on hand extra blankets to stay warm
- Generator, and gas to run for 24+ hours
- Candles
- Flashlights and extra batteries
- Check your alternate heating methods, such as fireplaces or wood- or coal-burning stoves
- Fire extinguisher
Tip #2
Never use a generator inside and be sure it’s placed outside where exhaust fumes can’t enter through windows, doors or cracks. Always take safety precautions.
Be smart about electronics
- Ensure your carbon monoxide detectors are fully functioning. Most detectors have a ten year life, have you checked the date on your detectors?
- Fully charge your cell phones,tablets, etc.
- Find your battery-powered or hand-crank radio
- Have extra batteries on hand
Tip #3
Tempted to play games on your phone during the storm? Save the charge in case there’s an emergency.
Be ready to clear snow and ice
- Shovels and tools for clearing snow and ice
- Sand, rock salt or non-clumping kitty litter to make walkways and steps less slippery
- Snow blower gassed (start it to ensure it’s ready)
Tip #4
A roof rake that can be used to remove snow from your roof can help prevent structural and water damage to your home.
Check medical and personal hygiene supplies
- Medications – have at least a seven-day supply
- Medical items – hearing aids with extra batteries (you can check this related site here to compare best ones), glasses, contact lenses, syringes, etc.
- Sanitation and personal hygiene items
- Baby diapers and wipes
- First aid kit
Tip #5
If you are low on medications, visit your pharmacy to ensure you have enough for one week. And,don’t forget hand sanitizer.
Keep important information and extra money handy
- Family and emergency contact information Local emergency contacts
- Copies of personal documents
- Extra cash – in case there is no power (no ATM)
Tip #6
Be sure to have the phone numbers of your insurance company as well as Cleary Insurance should you need to file a claim.
Sources: Red Cross, National Fire Protection Association, The Hanover Risk Management
Concerned about your personal insurance coverage? At Cleary, our experienced Personal Lines department will work with you to evaluate your insurance needs, identify exposures, and create a customized insurance portfolio. Give us a call today at 617-723-0700.