* Tax-free source of cash
* Supplemental income at retirement for Key Employees using
* Supplemental income at retirement for Individuals
* Out-of-pocket costs may be reduced as policy cash values grow
Presented by: Christopher F. Hawthorne
Many contractor businessowners face the question of what to do about employees that moonlight at night and on weekends. Does allowing employees to moonlight put a business in harm’s way? It could.
When an employee moonlights, they are taking on the same general liability, workers compensation, and auto exposures as the employer. Even if the employee carries their own insurance, their actions may be increasing the employer’s liability and future insurance costs.
If a moonlighting employee uses the employer’s vehicle which is still dressed with the employer’s logo, and is using the employer’s tools, could the customer state that they thought they were working with the employer after a loss occurred? Since the moonlighting employee might have little or no coverage, it is conceivable that the customer might look to the employer for coverage for damage done by the moonlighting employee. If so, the employer’s general liability, commercial auto, or even workers compensation would respond to a claim filed against the employer.
When the commercial general liability policy is examined for its wording, there are several troublesome areas. The first is the definition of an insured; it includes employees acting in the scope of their employment. This is not great wording in terms of your own protection. Second, the definition of your product includes products traded or sold under “your” name. If the employee is there with the employer’s truck, logo and knowledge, could an attorney-an insurance attorney at that-make a case to pull the employer in? Is this a bet worth taking? As contractors with claims experience know, the process can be unfair, and it can cost significant future premiums while the argument is going through court. The fact that the employer allowed moonlighting to occur makes a strong argument for vicarious liability.
If the employee got hurt while moonlighting, it could potentially pull the employer’s workers compensation (wherein, the employee might rope in professional legal counsel similar to the ones dealing with workers comp attorney in Columbus OH) in. If the employee worked for a few hours the next day and claimed that the injury really happened on the employer’s job, the employer’s workers compensation would be forced to prove the employee was not working at his or her job at the time of the injury. This could prove to be quite difficult and the employer’s workers compensation may end up paying the claim.
If the employer’s vehicle is being used with the employer’s permission, the commercial auto and possibly the umbrella would definitely be involved in a claim should there be an accident.
In short, without being paid for the risk, the employer is at risk. Contractors may wish to consider making it a condition of employment that moonlighting is not allowed. Two methods for preventing moonlight, along with a written policy, are as follows:
Employees should know that their personal homeowner’s insurance provides no liability for their business pursuits. From both the employer and the employee’s point of view, moonlighting is not a good idea.
The good news for employers is there are options to help reduce moonlighting. A possible solution may be to offer employees commissions for business they bring in. They could also offer discount pricing for the employees friends and family. These two options would help satisfy the employees desire to increase their income and alleviate the pressure of helping their friends and family after work.
Presented by Christopher F. Hawthorne, CPCU, CIC
Often people own a vehicle that is in the name of a business with no vehicle in their personal name to be used both personally and commercially. This ownership structure puts one in a position of not having auto insurance coverage in certain situations.
Commercial auto policies work differently than MA personal auto policies. The MA personal auto policy will cover anyone using an insured vehicle if operating with the permission of the vehicle’s owner. The coverage will also follow the insured and those listed on the policy into any other personal vehicle as long as they are operating that vehicle with permission. It is a very flexible policy.
The commercial auto policy is not so flexible. The commercial policy states that it will cover those vehicles that are specifically listed on the policy. Also, the commercial policy will defend the commercial entity named on the policy. This design could leave the driver of a commercially owned vehicle in harms way when they are operating a vehicle not listed on the commercial auto policy.
EXAMPLE: A business owner is attending a family cookout, driving a commercially-owned vehicle and due to getting there early, his/her auto has been blocked in by other guests. The host asks him/her to run to the store for more ice and to take another guest’s car which is not blocked in. During the trip, he/she hits and injures someone, who then sues him/her as well as the owner of the vehicle. If the owner of the vehicle unknowingly had coverage cancelled for non-payment due to an oversight or if the owner simply carried very low liability limits, the business owner who is used to having $1,000,000 of protection from their commercial auto policy as well as possible umbrella coverage, suddenly finds himself/herself on the other end of a lawsuit with little or no coverage.
A solution is to add Drive Other Car (DOC) coverage to the commercial auto policy. This coverage will act as a bridge for when the business owner is using a vehicle not named on the commercial auto policy. When DOC coverage is added, it is added in the name of a driver. The coverage will protect the named person and a spouse. It is important to know it will not automatically cover any other family members. Therefore, each family member other than the spouse must be named separately. The typical cost is typically $300 to $350 per named driver.
A second solution is to purchase a Named Non-Owned Personal Auto policy. This policy is the equivalent of a personal auto policy but without an auto (no comprehensive or collision coverage). These policies are more expensive ($800+) however they are more flexible and protect the commercial auto policy from claims arising out of personal auto use.
Managing an office that promotes a healthy work-life balance is a trial-and-error process. Between constant accessibility as a result of technology and the pressure to meet deadlines, employee and workplace wellness is too often compromised.
It may not seem like your responsibility, but you want to encourage your employees to balance their personal and professional wellness. Some of the most successful companies in the country are investing in their employees’ wellness.
We’re here to help. Below are five ways to implement workplace wellness in your office.
Get up and active
Identify a workout studio that is close to your office location and attend a class as a group. Encourage people to initiate fitness groups within the office, or opt for walking meetings. Apps like Eventbrite and Groupon sometimes post special deals for companies looking to explore fitness.
Professional and continuing education
Employee and workplace wellness is not always about physical health – it includes mental, intellectual, and emotional. Remind your employees that their careers and growth are important to you. You can show that you mean it by going the extra mile and getting your employees in touch with wellness professionals from the likes of LeggUp (https://www.leggup.com/) or similar coaching platforms, and help them unload mentally to stay sane. Furthermore, you can offer to cover the cost of educational workshops and classes that will help people improve the work they do and strengthen their confidence in their trades. You can read up on blogs such as https://www.edenhealth.com/blog/what-are-employee-benefits/ to learn more about the aspects of employee benefits that could be integrated into the corporate culture.
Keep hydrated and improve workplace snacking options
That third cup of coffee is doing nothing to hydrate you. Water is extremely important to keep your body healthy – from your skin to your kidneys to your blood pressure – and often goes by the wayside during the busy day. Design company water bottles as a friendly reminder to your employees to prioritize hydration. If the budget allows, invest in a flavored water dispenser like this one.
Mandatory mental health days
Well, maybe not mandatory, but employers can do a much better job emphasizing the importance of mental health days. Your employees are hard-working and don’t want to be seen as slackers, though they might very much need a personal day every so often. Drop hints that you are understanding as an employer and encourage your staff to take time when they need it.
Modernize your desk and other office furniture
The research is in: desks are not healthy. Employees are often seen to be complaining about the issues in the office’s furniture, poor utilization of workspace, and absence of recreational places. For the employer, sometimes, these problems might not seem genuine, however, when ignored for a long period, it can affect the productivity of the employees. An office interior design expert might help with easy solutions for problems such as these. Also, did you know that some companies are replacing their chairs with a yoga balls as a way to fix employees’ posture and burn calories? Others are opting for adjustable desks, which allow workers to sit or stand. Both of these options often result in an increase in productivity and decrease in back pain. All in all, one must know that good office equipment and furniture could prove to go a long way in improving posture and overall health!
Get some sunshine
Encourage your employees to get their daily dose of vitamin D when the weather allows for it. Set an example by eating lunch outside or making it known that you are going for a walk.
The bottom line is this: employee and workplace wellness is not optional, it’s essential. Not only will it help your employee retention, but an increase in productivity and workplace happiness will only benefit your business.
56-percent of companies failed a business risk assessment, operating without basic safeguards against damage caused by cyber-attacks, HR issues and other common operational realities
This past summer, we conducted a study to see just how aware Boston area small business owners are of their overall insurance coverage. This was the first study of its kind; we call it the Cleary Small Business Risk Index.
The results were scary.
The Index shows that more than half (55%) of Boston area businesses failed a risk assessment that probed 19 areas of risk management including cyber security, professional liability, employment practices and more.
So what does this boil down to?
“This proved what we have always assumed – most business owners don’t understand how to properly assess or account for risk,” said Bill Cleary, president, Cleary Insurance. “The answer isn’t always ‘more insurance.’ There are many ways to offload, avoid or manage risk. But in order to succeed, you need to understand the basic situation, and too many business owners just don’t.”
The Boston-area wide survey (including businesses on the North Shore, South Shore and Metrowest) was conducted online questioning 100 business owners, operators and employees spanning a variety of industries including healthcare, retail, financial services, and more. All respondents had a significant influence on the operational decisions of each company.
Could you pass? Take the Cleary Small Business Risk Assessment today to test your understanding of coverage. Also, check back for the next few posts which outline and answer some of the greatest areas for risk.
While all businesses should have a plan in place to protect their employees and their bottom line when a natural disaster hits, they should also consider their location and the insurance that is necessary to keep their doors open after a catastrophic event.
For a detailed disaster plan you can visit the link: https://www.fema.gov/pdf/library/bizindst.pdf
Reviewing the insurance plan:
Businesses should review their insurance plan to reduce out of pocket expenses. Make sure you have significant coverage to pay for the indirect costs of the disaster, disruption to your business and the cost to repair or rebuild your premises. Most policies do not cover flood or earthquake damage and you may need to buy separate insurance for these perils. Be sure you understand your policy deductibles and limits. New additions or improvements should also be reflected in your policy. This includes construction improvement to a property and the addition of new equipment.
For a business, the costs of a disaster can extend beyond the physical damage to the premises, equipment, furniture and other business property. There’s the potential loss of income while the premises are unusable. Your policy should include business interruption insurance and extra expense insurance. Even if your basic policy covers expenses and loss of net business income, it may not cover income interruptions due to damage that occurs away from your premises, such as to your key customer or supplier or to your utility company. You can generally buy this additional coverage and add it to your existing policy.
Basic commercial insurance to consider:
In light of the recent natural disasters happening around the globe, we are unfortunately reminded of the importance of obtaining proper personal insurance. If you are a homeowner, it is pertinent to routinely assess your personal insurance policy’s coverage. Unforeseen events (knock on wood) happen, and at that time you will be relieved of one less stress with the proper policy.
Personal insurance can range from home to auto, and rental to expensive items like jewelry and electronics. If you have something of value that is not yet covered by insurance, there is no harm in learning about your options.
We’re here to help with the legwork. Below are a few questions you can ask yourself when evaluating your personal insurance policy.
The goal of personal insurance is to guarantee your family is secure, financially and emotionally. At Cleary, we believe a solid insurance policy is a necessary step in order for your family to live life to the fullest. Contact us with any questions.
The first step is to come up with your business idea – now it’s time to build! In order for your new startup to be a success, you need spunk, determination and a strategy.
But where to begin?
From product, to employees, to clients, the responsibility can be overwhelming. We’ve put together a few of our tried-and-true tips to help you begin to successfully build your startup.
Networking is key
Identify your professional community and engage with it. Nowadays, you can successfully and efficiently network via social media platforms like LinkedIn. While this is a manageable day-to-day tool, we also suggest taking advantage of professional networking events for face-to-face interaction.
Networking also entails meeting the right people who can help you launch your business. The benefit of having strong connections is that they can turn into powerful allies.
When you interact with people who are already running a successful business, you may be able to gain a better understanding of the funds and number of shares to authorize that can satisfy investors, and you can offer to your future employees.
Find a balance
A startup is very demanding and can eat up the bulk of your time; however, it is important for you to give yourself (and your employees) a break. There is a reason Google’s offices have Ping-Pong tables, basketball courts and rock climbing walls. These activities help people expand there minds and think outside the box.
Moreover, bonding with employees outside the office can be essential to a company’s success. Mutual respect outside the office will transfer to exist inside the office and ensure that everyone feels safe in the work environment.
Ask questions
Even though you’re the boss, don’t feel like you need to have all the answers right away. Ask questions to people you trust.
People love to share their own experiences. Particularly at Cleary, we are happy to help with your startup questions and provide information about the various types of coverage that would be most beneficial for you.
Most business owners prefer to recruit employees with proven talent in their fields. This instinct often encourages entrepreneurs to hire top talent quickly, offering competitive salaries and benefits—especially for employees with specific technical skills that may result in direct growth for the company.
But is paying high always the way to attract the best employees? After all, no business can pay its workers more than the value added to the business. At least, not long term anyways.
In order to maintain an ideal benefits strategy, business owners should have a clear picture of the type of employee they want to hire, as well as a firm understanding of their business’ needs. They should also keep in mind that if the compensation level is perceived as low, it will negatively impact both talent attraction and retention.
Again, offering high benefits makes sense in situations where the skills and ability of an employee has a direct impact on the revenue and success of the business; however, for businesses focused on customer intimacy or operational efficiency, a high compensation may neither be affordable nor required. Here, employees make the most impact through process excellence, teamwork, service orientation and discipline—rather than through individual innovation.
It’s also important to customize a benefits plan based on how the employees perceive value. Owners should therefore have a clear understanding of the demographic of its employees (age, skill level, etc.). Making the plan tax-friendly and having the right mix of fixed pay and variable (performance) pay will also bolster a high-performance culture.
Have any questions? Feel free to contact a Cleary representative and we’ll help you build the best benefits strategy for your business.