Am I Protected from Identity Theft?

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Identity theft is a serious crime, and one that is increasing at an alarming rate. Victims should have some way of recovering their financial losses when it happens, but this type of theft is not covered by a basic homeowner’s insurance policy.

Identity theft coverage is available in most states as an optional endorsement on a homeowner’s insurance policy, and it is important to understand the benefit of purchasing this extra coverage.

Identity theft is the taking and using of your name and other personal information, including your home address, date of birth, credit card, and bank account details. If this information is stolen, a criminal can use your personal details to take out a bank loan, to withdraw money from your bank account, or to use your credit card.

More than three million Americans have recently experienced illegal use of their credit cards, according to a recent survey compiled by the US Federal Trade Commission.

Many victims of identity theft have seen unauthorized withdrawals from their personal bank account.

You may think your identity is secure if you shred all your bank statements and credit card receipts, and you take care never to reveal passwords or banking information, but it is relatively easy for a fraudster to obtain enough information about you to steal your identity, using the internet and offline.

Almost fifty percent of personal information used by identity thieves is taken from stolen laptops, lost memory sticks or other portable devices used to store data. A stolen passport, a driver’s license, or any personal documentation obtained by theft can be sold on, or used for fraudulent purposes.

Confidential information may also be gathered by fraudsters by making deceptive telephone calls or from establishing personal contact, by sending out fake emails, or using spyware that can be downloaded onto a computer when someone downloads a file, or opens an attachment in an email.

When your identity has been used fraudulently, it can take a lot of time and trouble for you
to prove that you are not personally responsible for any loans, debts, large financial transactions or serious crimes carried out by someone else using your identity.

While the fraud is being investigated, you will experience difficulties in obtaining a loan, getting a new credit card, or applying for a mortgage, until it is resolved.

There may be legal costs to be paid, or a loan may be necessary to cover your legal defense, and there will be additional expenses involved in replacing important documents. You may need to take unpaid leave from work during this process, resulting in further loss of earnings.

Having an identity theft endorsement on your Homeowners policy ensures that you and your family will be covered up to $15,000 for expenses incurred as the direct result of identity fraud.

Every year more people are becoming victims of identity theft, so it is well worth considering the benefits of paying the additional cost for identity theft coverage, as an endorsement on your homeowner’s insurance policy.

Homesite Home Insurance. (2009, March 5). Does My Homeowners Insurance Protect Me in the Case of Idenity Theft?

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

Insta-Brite Mobile Washing, Inc.

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Client Spotlight

Spring is the perfect time of the year to spotlight one of our long-term clients, Insta-Brite Mobile Washing, Inc.

For over 40 years, Insta-Brite Mobile Washing, Inc. has been distinguished as the premier provider of pressure washing and related cleaning services. They are focused on meeting their customers’ needs, including reliability, responsiveness, and consistent quality.  Their clients highly recommend Insta-Brite and all agree on their exceptional service!

They are located in Whitman, Massachusetts, and operate a fleet of 16 mobile units which are operated by professionals dedicated to solving each of their customers’ unique facility, residential, kitchen, and fleet cleaning challenges.

Ocean Marine Insurance

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Presented by Michael Regan

The cousin to “inland” marine insurance is “ocean” marine insurance; which is insurance that protects goods and vessels in waterways and oceans around the world.

The following are examples of available coverages:

  • Hull insurance to cover loss to the vessel itself
  • Freight insurance to cover loss to cargo
  • Protection & Indemnity (P&I) which provides owners of vessels liability coverage for damage to property of others or bodily injury to others

Bluewater coverage is for ocean going risks and brown water coverage is for risks on lakes and rivers.

Some examples of commercial ocean marine risks are: cargo vessels, tug boats, marinas, and offshore drilling rigs.

An example of personal ocean marine risk is personal watercraft, including sailboats, yachts and wave runners.

Ocean marine insurance is an integral part of international trade. It is believed that the insuring of vessels and cargo began back with the Phoenicians around 100 BC.

The term “underwriter” began at a London coffehouse owned by Edward Lloyd.  Individuals willing to insure vessels and cargo would write their names under the vessel’s name.
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.

Fidelity Bond (ERISA) Vs. Fiduciary Liability Insurance

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Fidelity Bond (ERISA)

A fidelity bond protects a business against theft of its assets as a result of dishonest actions by employees. It does not cover the assets within a company’s retirement plan because plan assets are not the property of the company, but of the plan beneficiaries.

The Employment Retirement Income Security Act (ERISA) was put into place to safeguard employee retirement plans.  Among other things, it requires the posting of an ERISA fidelity bond to protect the retirement plan from losses caused by fraudulent or dishonest acts by persons who handle the plan.

A plan must be bonded for no less than 10% of the amount of the plan funds.  In most cases, the maximum ERISA bond required is $500,000 per plan, however higher limits are available.  They are issued on a “blanket” basis, so everyone who handles the plan is covered.

Fiduciary Liability Insurance

Fiduciary liability insurance provides coverage for breaches of duty by ERISA plan fiduciaries.  Fiduciaries are those responsible for operating and administering a retirement plan under ERISA.  Some of these duties include:  authority and management over plan assets, making high-quality prudent decisions, documenting and rendering investment advice over the plan’s assets.  Unlike the fidelity bond, fiduciary liability insurance also offers fiduciaries protection of personal assets.  Fiduciaries who breach their duties may be personally liable to make the plan whole for any losses caused by their breach, including lost opportunity and litigation costs.  Fiduciary liability insurance can be purchased as part of an organizations management liability insurance program or on a stand-alone basis.

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.

Planning for Aging Parents

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Watching a parent becoming increasingly dependent on others for the normal activities of daily life can be difficult. It can be even harder for the parent to admit needing help. Creating a plan for how your parent(s), family and parents’ medical professionals will handle that possible scenario can alleviate misunderstanding and confusion when a crisis arises.

Here are 5 tips to prepare for parents’ aging:

  1. Decide on a point of contact – one sibling/close relative should be in charge of communicating with doctors. This person should have a health care proxy for the parent.
  2. Find a family-friendly primary care physician. An elderly parent may receive care from multiple specialists. With your parents, decide on one doctor to be the primary medical resource. Make sure reports from specialists are sent to the primary care physician.
  3. Create a central storage place for vital documents, including medical records, Social Security number and health insurance policy information. Hard copies should be duplicated and stored in at least 2 fire- and water-proof locations. Digital imaging/storage services offer a convenient place to access files remotely.
  4. Nursing home costs continue to rise faster than inflation and can quickly deplete the parents’ assets. If the parents qualify for underwriting, purchasing a policy can help safe-guard your savings from the parents’ health-care expenses in the future.
  5. Discuss finances – the point of contact relative, or another relative equipped to deal with financial matters, should have a durable power of attorney. This person should know the location of key accounts and policies, and the names and phone numbers for key advisors.

Executive Order 13706 – Mandatory Sick Leave

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On September 7, 2015, President Obama signed Executive Order 13706, Establishment of Paid Sick Leave for Federal Contractors. The Executive Order requires employers that contract with the Federal Government to provide their workers with up to seven days of paid sick time annually. Regulations regarding the implementation are due from the Secretary of Labor by September 30, 2016. The Order applies to new and replacement for expiring federal contracts, on or after January 1, 2017.

Under the Order, employees may accrue up to 56 hours of sick leave annually. Any unused leave may be carried over, year to year. This sick leave is in addition to wage and benefit obligations under the Service Contract Act (SCA) and the Davis Bacon Act (DBA). If you would like to read more information about the Order please click here.

It is important that all contractors prepare themselves to meet the proposed Executive Order and have their personnel properly trained and ready to deal with SCA and DBA employees.

At Cleary, we know how important a comprehensive benefits package can be to your continued success. Give us a call today at 617-723-0700 and we will work with you to create a plan that meets your fringe-benefit obligations and provides your employees with valuable benefits.

Prepare Your Home for Spring Storms

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Spring is known for its rapidly changing weather – and that can mean severe storms. Help get your home and family ready with these tips.

Let it flow. Remove winter’s debris from your gutters, drains, and downspouts so that heavy rains can flow freely off your roof. Be sure that downspouts are secure and that water is draining well away from your home and not toward your foundation-add extensions if necessary.

Trim the trees. Prune lanky limbs and branches so they don’t snap off in a windstorm and land on your roof or a power line. In the event of Roof Hail damage, you might want to consult with an experienced roofer in your area to fix the roof and get it back to its original shape.

Check the pump. If your home has a sump pump, test it to make sure it’s clean and operable and that the outflow is draining properly. Consider adding a battery-powered backup sump pump to keep the system working if the power goes out.

Stow your gear. When strong winds are forecast, secure patio furniture and other yard items or put them in your garage or a shed so they don’t become dangerous projectiles.

Cover up. Close and secure storm shutters if your home has them. Keep blinds and shades drawn and tape or tack window coverings around the edges to help protect you from broken, flying glass. Tie thick blankets over vehicles that are exposed to the elements to diminish damage from hail.

  • If power outages are common in your area, prepare an emergency kit and keep it in a central location in your home. Basic supplies should include:
  • Flashlight and fresh batteries
  • Battery or solar-powered weather radio and/or transistor radio
  • First aid supplies Hand sanitizer or wipes
  • Three-day supply of canned or dried food and water

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.

Four Important HR Issues to Monitor for 2016

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Employers have new challenges to contend with in 2016, resulting from Supreme Court decisions, federal and state legislation, and actions by federal regulatory agencies. There is a real cost for employers who fail to comply with new laws. For example, the most recent Performance Accountability Report for the Equal Employment Opportunity Commission (EEOC), states that victims of discrimination received more than $525 million from private and government workplaces in 2015.

The following are four important issues that should be closely monitored in 2016:

  1. Overtime Rule Change: The Department of Labor (DOL) has proposed a rule to expand who is entitled to overtime pay. Once regulations are finalized, it is possible that many overtime-exempt employees will become eligible unless employers raise their salaries—a move that could cost employers billions of dollars.
  2. Same-sex Marriage: Since same-sex marriage is now accepted at a federal level, employers are required to provide the same benefits to same-sex couples as they do for opposite-sex couples. Employers must revisit their policies and practices regarding Equal Employment Opportunity (EEO), employee benefits, leave policies, marriage statuses and tax information in order to ensure that they treat all married couples equally.
  3. National Labor Relations Board (NLRB) Pursuit of Workplace Policies: The NLRB has been proactive in pursuing employers whose handbook policies can be reasonably interpreted as infringing upon the rights of employees to engage in protected conduct. In doing so, the NLRB has found that certain employer policies, such as those that deal with social media, confidentiality and employee communications, violate employee rights. Because of this development, current workplace policies should be reviewed and drafted carefully to avoid ambiguous language that could be interpreted as interfering with the right to engage in protected, concerted activity.
  4. Health Care Reform: Many employers are faced with the challenge of complying with the new annual health care reporting requirements under the Affordable Care Act (ACA). Applicable large employers (ALEs) and non-ALEs with self-insured plans were required to provide Forms 1095 or 1094 to their employees for the first time starting in 2016 for the 2015 tax year. Penalties for not doing so, or for providing inaccurate information, could be substantial. It is important for employers to know which forms to complete and what information to include.

Employers should also keep an eye on any relevant implications that might emerge as a result of the 2016 presidential election—specifically in regards to the Cadillac tax delay. Should the Cadillac tax go into effect in 2020, employers need to be sure that they are either ready to pay the tax or ready to make necessary changes to their health care plans.

At Cleary, we know how important a comprehensive benefits package can be to your continued success. Give us a call today at 617-723-0700 and we will work with you to create a plan that meets your business objectives, takes into account state and federal laws, and capitalizes on incentives and innovative solutions now being offered.

Client Spotlight: Butler-Dearden

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We are pleased to spotlight Butler-Dearden in our winter newsletter.  They are a family owned and operated wholesale distributor headquartered in Boylston, Massachusetts.

Butler-Dearden has been providing superior quality, service and value to their customers since 1882. They began as a twine and packaging store and grew into offering janitorial supplies, office papers, packaging materials, and food service supplies.  Their state of art facility allows for an efficient operation so they can deliver and maintain the quality customer service they are known for.

They continue to be successful by keeping their core ideal that excellent customer service is the most important product they deliver!

Click here to learn more about them!

Public Private Partnerships

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More frequently known as 3-P’s (PPP), Public Private Partnerships are becoming more prevalent as a way to finance, engineer, construct, and operate infrastructure projects across the United States. They have been used in other countries for some time now. For example the EU has had over 260 Billion Euro’s worth of 3P projects since 1990.

PPP involves a contract between a public sector authority and a private party in which the private party provides for a public project and assumes substantial financial, technical, and operational risk of the project. In some cases those end uses of the project bear the cost of of the project rather the the taxpayer. Toll roads are an example of this.

There are a few reasons why these have now taken hold in the United States. First, it is a way for government entities to harness the engineering and technical efficiencies of the private sector to bring projects on line. Second, it allows for the project to be done “off balance sheet” of the government entity. The funding is arranged for by the private sector vehicle implementing the project, although they can sometimes be done “on balance sheet” where the government entity compensates over time but gains substantial deferred cash flows.

As you can guess, the formation and structure of a PPP can be very very complex, daunting, costly, and time consuming for all parties involved. The jury is still out as to their overall success or failure. There haven’t been enough of them in the United States to conclude their viability. However, they aren’t going away any time soon.