Blog

TMI! Be Aware What You Share on Social Media

Wed, 16 May 2012 21:55:00 GMT

Great information brought to us by our friends at Central Insurance Companies:
With so many of us using social media sites like Facebook, Twitter, Google Plus and others, privacy, security, and identity theft are concerns. What can you do to protect yourself and still post, comment, and tweet?
One important thing to remember on Facebook is that even if you have selected to have your information only show to your friends, it’s not fool-proof that only your friends will see it. If you are using any Facebook applications, these applications have access to the information you have put into your profile.
Perhaps the most important piece of information you will post on social media is your date and place of birth. If this information isn’t needed, don’t enter it into the site, or at least, do not enter the year and the exact location of your birth. Keep in mind though that if you provide information about your high school and the year you graduated, the birthdate and location may not be too hard to figure out. Using only the month, day, and a more general geographic location is preferable to the exact year and location. Giving specific information facilitates someone getting a copy of your birth certificate which is an important step toward identity theft.
Posting information about where you are isn’t always a great idea either. If you have these posts limited to your friends, and you are comfortable with your friends knowing where you are at any given time, you may be OK. But when you post pictures or submit comments from a location such as a football game, play, or restaurant, people reading those comments are going to know you’re not at home. This makes it easy for a burglar to target your home. Even worse, I have read posts where someone notes the dates they will be on vacation, giving a thief plenty of opportunity. It’s best to post comments about your trip after you get home.
On Facebook, Twitter, and Google Plus, its good practice to check all your settings and make sure your posts are visible only to those you want to see them. On Facebook, allowing “friends of friends” to view any information or photos is usually not a good idea. Also keep in mind that your friends can share your posts on their pages, thus opening up your information to a whole new audience. A picture of an exciting football game is fun to share, but if you have friends doing a lot of sharing, then their friends will see this post as well.
These are only a few of the more important tips. Please feel free to post additional suggestions you may have!

Hand-held Cell Phones are Dangerous and Illegal....

Wed, 16 May 2012 21:50:00 GMT

On Jan 3, 2012, the DOT prohibited all commercial motor vehicle operators from using their hand-held phones. This is to help inhibit commercial truckers and bus drivers from distractions. In 2009 distracted drivers caused over 16% of all traffic fatalities.

Making calls, receiving calls, texting or other functions of a hand-held device are not allowed while operating the vehicle. If the driver pulls off the road or highway and the vehicle can stay stationary, this means placing vehicle in park, they may use the hand-held device.

A hands-free device may be used if it will not cause a distraction. Check the laws in your area of operations as each state may have different enforcement codes.

It is illegal to dial a devise if it requires the driver to push more than one button.

Some states allow you to answer the phone only if it is within the driver’s reach and easily accessible. Using ear buds that require the push of a button is preferred.

CB radios, two-way radios & walkie-talkies are permitted.

You are allowed to use your hand-held device for emergencies as long as you are notifying law enforcement or any other emergency agency.

If you fail to follow the laws, you could face federal civil penalties of up to $2,750 for each offense and disqualification from operating a commercial motor vehicle. A state has the right to suspend a drivers’ CDL (commercial driver’s license) after just two serious traffic violations.

If you have questions about the laws of hand-held devices, contact your supervisor. Make sure to check each state by visiting their DOT. Your safety and the safety of others is our top priority.

Avoiding Contractor Fraud James Geisler at Grange Insurance

Thu, 03 May 2012 19:39:00 GMT

The damage caused by a major storm can be a source of great anxiety,
particularly when the structural integrity of your home is affected. Rebuilding
is a priority, but you should exercise caution and common sense when hiring
a contractor to help repair and clean up storm damage.
Following these simple tips can help ensure that the contractor you are
considering is a credible and trustworthy partner.

Before contracting for services, check references. It can be helpful to see
who is working with neighbors who may also have claims.
Be suspicious of any contractor who tries to rush you, especially on nonemergency
or temporary repairs.
Be wary of anyone knocking on your door offering unsolicited repairs to
your home.
Never pay for work up front.
Get three written estimates for the work and compare bids.
Check credentials with the Better Business Bureau or state attorney
general’s office to see if the firm has any outstanding complaints.
Always have a written, detailed contract that clearly states everything the
contractor will do, including prices for labor and materials, clean-up
procedures, and estimated start and finish dates.
Never sign a contract with blank spaces, which a crooked contractor can
alter after he’s attained your signature.
Don’t believe a contractor who says he’s supported by the government.
The Federal Emergency Management Agency (FEMA) does not endorse
individual contractors or loan companies.
Avoid paying with cash; use a check or credit card instead. This creates a
record of your payments to the contractor.

To maintain homeowners' trust and business, insurers devote many
resources to ensure that the claims process is smooth, easy and meets
consumer needs. Insurers and agents are excellent resources to help access
the services needed to handle claims. Contact your insurer at the start of the
planning process for any repair or clean-up work.

Third-Party Employment Practices Liability Insurance

Wed, 02 May 2012 14:37:00 GMT

In our increasingly litigious society, the threat of a lawsuit hangs over every business transaction, large or small. Even employers who adhere to the letter of the law at all times are likely be sued by an aggrieved employee or customer at some point. While many suits are groundless, defending against them is costly and time consuming.

If you carry Employment Practices Liability Insurance (EPLI), your business has a measure of protection against lawsuits from current, prospective or former employees who allege “wrongful acts” such as discrimination (age, sex, race, disability, etc.), sexual harassment or wrongful termination. But what happens if a customer sues you for discrimination? Are you protected?

The Importance of Third-Party EPLI

Many employers do not realize—until it is too late—that they have a gap in their insurance coverage that leaves them vulnerable to discrimination and harassment lawsuits from customers, clients, vendors and suppliers. Standard EPLI policies only provide coverage for lawsuits brought about by employees or prospective employees, and most commercial general liability (CGL) policies specifically exclude coverage for harassment and discrimination. That’s where third-party EPLI comes in.

Third-party EPLI fills this gap between EPLI and CGL, and offers protection against allegations of wrongful acts made by customers, clients, vendors and suppliers. In general, covered claims include the following:

· Discrimination, based on:

o Race

o Religion

o Sex

o Age

o National origin

o Disability

o Pregnancy

o Sexual orientation

· Harassment

o Unwanted sexual advances

o Unwanted requests for sexual favors

o Other verbal or physical actions that create a hostile or offensive work environment

Third-party EPLI is vital for businesses that deal with customers on a daily basis, but even if your firm doesn’t have a lot of interaction with the general public, you may still benefit from third-party EPLI coverage if your operations involve clients, suppliers or vendors.

The Benefits of Generic Medication

Mon, 30 Apr 2012 22:07:00 GMT

As consumer-driven health plans (CDHPs) continue to grow in popularity, many employers are looking to similar strategies to control the rising cost of prescription drug coverage. Increasing employee use of generic medication may be one of the most effective ways to make an immediate impact in your budget.

FDA-approved generic drugs are as safe and effective as their brand name counterparts, but are significantly less expensive because the companies don’t need to spend money on clinical trials, advertising, promotion and marketing. The fact that generic drugs are often 80 to 85 percent cheaper can save your organization significant amounts of money.

According to the FDA, generic medications save $3 billion every week, more than $150 billion annually. Boosting the use of generic medications by incorporating the strategies of CDHPs into your prescription coverage design can save you and your employees significant amounts of money.

Benefits Communications
CDHPs rely on an informed consumer to make intelligent health care decisions. Though many of your employees may be willing to use generic medication, they may not know enough about them to see the advantage or to feel comfortable doing so.

Consider integrating information about generic drugs into your benefits communications. Send informational payroll stuffers or emails to employees explaining the differences between generic and brand name medication and encouraging them to request generics when filling a prescription. You may wish to reach out to employees through social media with additional information regarding generics.

To maximize generic use, keep employees up to date on the newest approved generic medications through this FDA site: www.fda.gov/Drugs/DevelopmentApprovalProcess/HowDrugsareDevelopedandApproved/DrugandBiologicApprovalReports/ANDAGenericDrugApprovals/default.htm.

Copayments
By exposing employees to the higher cost of brand name medication, employers are able to encourage them to select the less expensive option, creating savings for both employer and employee.

By raising the copayment amount of your plan, employees will ideally take a proactive approach to their health care and consider using generic medication instead of filling a name brand prescription.

Mail-Order Pharmacies
Some of the larger mail-order pharmacies report an increase in generic substitutions among members. It may be worth considering incorporating a mail-order pharmacy component into your current health plan.

For informational employee resources such as payroll stuffers and flyers, materials about how to communicate effectively through social media, or ways to incorporate consumer-driven elements into your prescription medication plan, contact your Sullivan & Associates - Insurance and Risk Management representative.

Simple Tips for Maintaining a Sump Pump by Bob Formisano

Mon, 30 Apr 2012 22:05:00 GMT

The sump pump is one of those appliances that you depend upon to be there when you need it. And the
time you need a sump pump is when the heavy rains come. Some homes are located where water tables are
high, have poorly draining soils or are prone to heavy rains. Other homes have problems with their foundation
drains or basement wall construction. All these conditions call for a sump pump to remove excess water from a
basement. In addition, many homes have a sump pump installed “just in case” a flooding situation happens such
as from an abnormal rainfall or if a pipe bursts in the basement. Sump pumps come in submersible and pedestal
styles.

The sump pump should discharge the water to the home’s yard and not be hooked up to the sanitary sewer or
discharge into a sink or other drain.

Sump pumps often sit for months without use and it is a good idea to do some simple maintenance as outlined
below, to keep your sump pump in tip-top shape so it is there when you need it most.

Plan on doing these items every 3-4 months:

•• Clean pump inlet screen.
•• Check power cord and make sure the cord is connected to power.
•• Dump a bucket of water into the sump to raise the float and make sure the pump turns on.
Plan on doing these items once a year:
•• Remove the pump from the sump and clean it and inspect it.
•• Clean out the sump.
•• Check the Owner’s Manual to see if the pump bearings require grease or oil. If you do not have the
manual, look it up on the Internet using the manufacturer and model number of your pump or contact
the manufacturer.
•• Replace the pump in the sump.
•• Check power cord and make sure the cord is connected to power.
•• Dump a bucket of water into the sump to raise the float and make sure the pump turns on, adjusting
the float if required.

Keep Sleep Apnea From Costing You

Mon, 19 Mar 2012 22:01:00 GMT

Keep Sleep Apnea From Costing You
Continually cited as a leading cause of fatal accidents involving CMVs, driver fatigue is a significant problem in the commercial trucking industry. While the Department of Transportation (DOT) and Federal Motor Carrier Safety Administration (FMCSA) have regulations in place to ensure drivers are receiving the proper amount of rest time, they are not always able to control the quality of sleep drivers are getting.

Sleep apnea is a repertory disorder estimated to affect three out of every 10 commercial drivers, disturbing sleep quality and leading to an increase in drowsiness and fatigue. Because of its side effects, the disorder increases the chance that a driver will be involved in an accident. If you employ drivers suffering from the condition, you could be held liable for damages in the event that an accident is linked to fatigue caused by sleep apnea.

Regulation and Carrier Responsibility
Current regulation does not expressly state that drivers need to be tested or treated for sleep apnea. It does, however, prohibit carriers from hiring drivers that have existing medical conditions that could compromise job performance. The FMCSA has specifically noted that repertory disorders, including sleep apnea, could be severe enough to impair performance and make a driver unfit for work. This has opened the door for litigation against carriers who allow drivers suffering from sleep apnea to remain on duty. Whether or not you know about a driver’s condition, you could be held liable if it is found that the side effects of their sleep apnea caused an accident.

Reduce Liability, Decrease Health Costs
In the event of an accident, not only could you be liable for the damages of other parties involved, but you may also have a financial duty to the driver if they are injured. Add on potential lost time and damaged cargo, and a single accident could end up being quite costly to your organization.

It’s easy to see how quickly an undiagnosed case of sleep apnea could affect your company’s bottom line. Even if it is not required by the FMCSA, requiring sleep apnea screenings for new and existing employees can help you reduce the hazards caused by fatigued divers, along with the potential costs they can incur.

Tackling sleep apnea now could also put you ahead of schedule to comply with future regulation. The FMCSA has shown signs of moving towards a stricter stance on sleep apnea. If testing or other preventative action is required in the future you will already have a plan in place.

Training and Treatment
Being diagnosed with sleep apnea does not have to automatically disqualify a driver from service. Many times sleep apnea is brought on by other health issues, such as obesity, and can be managed through lifestyle changes. There are also mechanical controls, such as the continuous positive airway pressure (CPAP) machine, which can be used to assist airflow during sleep.

Drivers should not have to be afraid of sleep apnea costing them their jobs. It is important that you offer help and support to suffering drivers so they are willing to come forward for treatment. In addition to educating drivers on the danger of sleep apnea, teach them the signs and symptoms of the disorder so they can play a role in prevention by monitoring themselves.

Take Cover in a Tornado

Fri, 09 Mar 2012 20:18:00 GMT

When it comes to tornadoes, there's no substitute for advanced planning. During peak tornado season, between March and May, storms that produce tornadoes can develop quickly, so it's important for you and your family to know exactly what to do before, during and after a twister strikes.

Tornado Safety Recommendations

Before a Tornado Strikes:

Create a family tornado plan including where you will seek shelter when a tornado warning is given and where you will meet after the disaster in case you get separated. Practice your family's tornado plan at least once per year.
Gather items that can protect you such as mattresses, sleeping bags and thick blankets and place them near your shelter area.
When the National Weather Service issues a tornado watch, go to your shelter area and check to see that everything you need for protection is there.

Stay safe after the tornado hits by doing the following:

Stay with your loved ones until emergency personnel arrive.
Stay away from power lines and puddles near fallen wires since they may still be carrying electricity.
Watch your step for broken glass, nails and other sharp objects that may have flown around.
Do not enter heavily damaged homes or buildings that could collapse at any time.
Also gather bottled water, non-perishable food items, flashlights and a battery-operated radio.
Keep an ear to the radio or television and listen for storm status updates, and stay alert for warnings.

Signs of an Impending Tornado:

In addition to listening to weather reports, the following signs may indicate that the threat of a tornado may be near:

Strong, persistent rotations at a cloud's base
Whirling dust or debris
Hail or heavy rain, followed by a dead calm or intense wind shift
Loud rumbles of noise that do not fade away in seconds like thunder

During a Tornado:

Go to the basement or lowest level of your home, get under a sturdy structure, such as a table, and then cover yourself with a protective materials. If your home does not have a basement, go to a small, central space such bathroom closet, under a stairwell or a hallway with no windows. Then, crouch down to the floor, face down and cover your head with your hands.
If you live in a mobile home, leave your house and seek other shelter. If there is nowhere else to go, lie flat on the ground and cover your head with your hands.

In addition to insuring your home, ensuring your safety and preventing losses are also top concerns. If you would like more loss prevention or safety tips, please contact us today!

Are you Ready for an Emergency?

Fri, 09 Mar 2012 17:08:00 GMT

Disasters like hurricanes, tornadoes, floods and earthquakes can strike with little or no warning. To assure that you and your family are prepared, there's no time like the present to create emergency kits: one for use if you need to evacuate your home and one for use if you get trapped in your home for several days. Get the entire family involved in creating these emergency kits so that kids understand the importance of being prepared.

Evacuation Kits

To help you evacuate quickly, keep the following items in an emergency backpack so you can grab it and go:

Gallon of water per family member and nonperishable foods
Can opener, plastic cups and eating utensils
Flashlight and extra batteries
Battery-operated radio
Change of clothing for each family member
Contact information for your family and a relative or friend out of state
First aid kit
Personal identification cards for each family member
Personal hygiene items and hand sanitizer
Medications that are needed regularly

Being prepared eliminates some of the panic that accompanies an emergency. By having these kits in place, you and your family can focus on remaining safe during a disaster and keeping each other calm.

Sequester Kits

Just as important as an evacuation kit, sequester kits are filled with important items necessary when you cannot leave your home for several day due to an emergency. Place the following items in an area of your home to be ready for and emergency:

Three gallons of water per family member
Canned food for at least three days and can opener
Pet foods and supplies for three days
Toilet paper
Extra personal hygiene items
Non-scented bleach
Blankets
Books, games and other forms of entertainment
Paper and pencils
Battery-operated radio and television
Flashlight
First aid kit

Severe Weather

Wed, 07 Mar 2012 20:25:00 GMT

In a severe weather emergency, all employees should be aware of their responsibilities and the actions they should take to protect themselves and others.

If severe weather is threatening, tune in to local radio or television stations or check local weather reports online.
If a tornado warning is issued or the weather becomes severe, seek immediate cover in the company’s pre-designated shelter area.
If you are unable to reach the pre-designated shelter area, take cover in interior rooms with small or no windows such as restrooms, kitchens or hallways on the lowest possible floor.
Climb under heavy furniture, such as tables and desks, if possible.
Cover your face and head with blankets, coats, jackets, etc. to protect yourself from flying glass.
Stay away from windows and doors and do not use the telephone.

Be prepared to take cover when the following alerts have been issued for our area:

Severe Thunderstorm Watch - Severe thunderstorms are possible.
Tornado Watch - Tornadoes are possible.
Severe Thunderstorm Warning - Severe thunderstorms are occurring.

Take immediate cover when the following warning has been issued for our area:

Tornado Warning - A tornado has been sighted or indicated by weather radar.

Smoke Detector Maintenance

Tue, 06 Mar 2012 18:01:00 GMT

Smoke detectors are one of the most important safety devices you can install in your home to protect your personal belongings and your family. The good news is, they are inexpensive, too. Once you've installed smoke detectors, it is absolutely necessary to test them regularly to ensure that they will sound during a fire. After all, what good are they if they are not working when you need them to the most.

Types of Smoke Detectors

When selecting a smoke detector, keep the following in mind:

Photoelectric units are better for smoldering fires, such as electric fires in the walls, so they are ideal for kitchens and bathrooms where these fires tend to occur.
Ionization units give nearby air an electrical charge and then measure whether the charge stays constant or whether a fire is consuming oxygen in the air. These units are better suited to areas where fires get out of control, such as a basement near a furnace.

Safety First

Replacing smoke detector batteries is critical to their usefulness. A great way to remember to change your smoke detector batteries in your home is to do so twice a year during Daylight Savings Time. When you reset your clocks forward or back, also change those batteries to keep your home and your family safe!

Testing a Smoke Detector

To ensure that smoke detectors are working properly, test them on a regular basis. To do so:

Press the test button on the unit and wait for it to sound.
Light a candle and hold it six inches below the detector so the heated air will rise into the detector.
If the alarm does not sound within 20 seconds, blow out the candle and let the smoke rise.
If the alarm still does not sound, open the detector up and clean the unit. Also make sure that all of the electrical connections are in good working order.
Then, test the unit again. If it is still not working, replace it immediately.

Helping you to avoid claims is just one of the many value-added services we provide. Call us today to learn more about all of our personal risk management solutions for your auto, home and life.

Sullivan and Associates joins Make-A-Wish Foundation of Illinois Annual Jeans for Wishes Campaign!

Wed, 29 Feb 2012 20:21:00 GMT

Wear your blue jeans and help grant the wishes of Illinois children throughas Sullivan & Associates joins the Make-A-Wish Foundation of Illinois' Annual Jeans for Wishes Campaign. If you'd like to participate in this program with your colleagues, please contact the foundation at www.jeansforwishes.org..

Sullivan & Associates employees can choose one day during the week of March 12th and donate $5 to wear jeans for that day, or $20 to wear jeans for the entire week. The inspiring stories of wish children who benefit from this fundraiser are posted online at http://www.jeansforwishes.org/ . You can send a personal message to these wish children through that website and feel great knowing that your contributions to Jeans for Wishes truly did make a child's dream come true.

For children who battle conditions like leukemia, cystic fibrosis, brain tumors, and other childhood diseases, the Make-A-Wish Foundation provides a magical experience to help them cope with their illness and its treatment. Since 1985 the Foundation has granted more than 10,000 wishes in Illinois and continues its mission to share the power of a wish® with special children across the state.

Driver Fatigue

Wed, 22 Feb 2012 20:15:00 GMT

Driver Fatigue

Fatigue is the result of physical or mental exertion that impairs performance. Driver fatigue may be due to a lack of adequate sleep, extended work hours, strenuous work or non-work activities, or a combination of other factors. The Large Truck Crash Causation Study (LTCCS) reported that 13 percent of Commercial Motor Vehicle (CMV) drivers were considered to have been fatigued at the time of their crash.
Below are some tips that will help you stay healthy and feel well rested during your time on the road.

TIP # 1: GET ENOUGH SLEEP BEFORE GETTING BEHIND THE WHEEL
Be sure to get an adequate amount of sleep each night. If possible, do not drive while your body is naturally drowsy, between the hours of 12 a.m. to 6 a.m. and 2 p.m. to 4 p.m. Driver drowsiness may impair a driver’s response time to potential hazards, increasing the chances of being in a crash. If you do become drowsy while driving, choose a safe place to pull over and rest.

The circadian rhythm refers to the wake/sleep cycle that our body goes through each day and night. The cycle involves our internal clock and controls the daily pattern of alertness in a human body. With inadequate sleep, the drowsiness experienced during natural "lulls" can be even stronger and may have a greater adverse effect on a driver’s performance and alertness.

A study by the Federal Motor Carrier Safety Administration (FMCSA) found that driver alertness was related to "time-of-day" more so than "time-on-task." Most people are less alert at night, especially after midnight. This drowsiness may be enhanced if you have been on the road for an extended period of time.

A recent study conducted to determine the risk of having a safety-critical event as a function of driving-hour suggests that incidents are highest during the first hour of driving. The authors hypothesize that drivers may be affected by sleep inertia shortly after waking from sleep. This may be especially true for drivers who sleep in the sleeper berth. Sleep inertia refers to impairment in a variety of performance tasks, including short-term memory, vigilance, cognitive functioning, reaction time and ability to resist sleep.

TIP # 2: MAINTAIN A HEALTHY DIET
Skipping meals or eating at irregular times may lead to fatigue and/or food cravings. Also, going to bed with an empty stomach or immediately after a heavy meal can interfere with sleep. A light snack before bed may help you achieve more restful sleep. Remember that if you are not well-rested, induced fatigue may cause slow reaction time, reduced attention, memory lapses, lack of awareness, mood changes, and reduced judgment ability.

A recent study conducted on the sleeping and driving habits of CMV drivers concluded that an unhealthy lifestyle, long working hours, and sleeping problems were the main causes of drivers falling asleep while driving.

TIP # 3: TAKE A NAP
If possible, you should take a nap when feeling drowsy or less alert. Naps should last a minimum of 10 minutes, but ideally a nap should last up to 45 minutes. Allow at least 15 minutes after waking to fully recover before starting to drive.
Short naps are more effective at restoring energy levels than coffee. Naps aimed at preventing drowsiness are generally more effective in maintaining a driver's performance than naps taken when a person is already drowsy.

TIP # 4: AVOID MEDICATION THAT MAY INDUCE DROWSINESS
Avoid medications that may make you drowsy if you plan to get behind the wheel. Most drowsiness-inducing medications include a warning label indicating that you should not operate vehicles or machinery during use. Some of the most common medicines that may make you drowsy are: tranquilizers, sleeping pills, allergy medicines and cold medicines.

In a recent study, 17 percent of CMV drivers were reported as having “over-the-counter drug use” at the time of a crash. Cold pills are one of the most common medicines that may make you drowsy. If you must drive with a cold, it is safer to suffer from the cold than drive under the effects of the medicine.

TIP # 5: RECOGNIZE THE SIGNALS AND DANGERS OF DROWSINESS
Pay attention. Indicators of drowsiness include frequent yawning, heavy eyes and blurred vision.

Research has indicated that being awake for 18 hours is comparable to having a blood alcohol concentration (BAC) of 0.08 percent, which is legally intoxicated and leaves you at equal risk for a crash. A 2005 study suggests that three out of every four CMV drivers report having experienced at least one type of driving error as a result of drowsiness.

TIP # 6: DO NOT RELY ON “ALERTNESS TRICKS” TO KEEP YOU AWAKE
Behaviors such as smoking, turning up the radio, drinking coffee, opening the window and other “alertness tricks” are not real cures for drowsiness and may give you a false sense of security.

Excessive intake of caffeine can cause insomnia, headaches, irritability and nervousness. It takes several minutes for caffeine to get into your system and deliver the energy boost you need, so if you are already tired when you first drink a caffeinated drink, it may not take effect as quickly as you might expect. In addition, if you are a regular caffeine user, the effect may be much smaller. Rolling the window down or turning the radio up may help you feel more alert for an instant, but these are not effective ways to maintain an acceptable level of alertness.

Source: DOT/FMCSA CMV Driving Tips: Driver Fatigue

Employment Practices Liability Insurance: Crucial for Small Businesses Too

Wed, 22 Feb 2012 18:26:00 GMT

Employment Practices Liability Insurance: Crucial for Small Businesses Too

According to a recent study, more than half of all claims filed for employment-related liabilities are against employers with fewer than 50 employees. Alarmingly, the study also reveals that not even 2 percent of small businesses have Employment Practices Liability (EPL) coverage.

High Price Tag

Employment-related claims can be extremely costly, especially in cases that drag on for years. With a slow economy and increasing adoption of worker-friendly laws, these cases are on the rise - in fact, discrimination claims are reaching their peak, with a record 99,922 claims filed in 2010. Of these claims, 36 percent were based on racial discrimination, 30 percent on gender, 24 percent on age and 23 percent on disabilities. Many small businesses cannot afford to pay these costs and keep their company afloat.

What Puts Small Businesses at Risk?

Understandably, it can be much more difficult for small businesses to defend themselves against employment-related claims because they tend to have fewer resources and a different work environment. Small businesses are particularly at risk for employment-related claims for the following reasons:

* Many have a minimal staff and lack of in-house counsel and/or full
human resources department to rely on
* Overall lack of extensive recordkeeping on employee performance
* More intimate working environments may cause personal riffs during
layoffs

An Affordable Solution

Fortunately, with employment-based lawsuits on the rise and the economy's sluggish upward climb, EPL coverage is becoming more affordable. More insurers are beginning to offer EPL insurance policies with comprehensive coverage to smaller businesses to protect them in tough times. In fact, EPL insurance is becoming so important to the success of small businesses that it is being offered at more affordable prices and being tailored specifically for those smaller companies. With the average cost of an employment lawsuit exceeding $270,000, the potential return dwarfs the initial cost of EPL coverage.

Talk to Sullivan & Associates - Insurance and Risk Management to learn if this risk transfer option is right for your business.

Compromise on Contraceptive Coverage for Religious Employers

Mon, 20 Feb 2012 23:06:00 GMT

Under health care reform, non-grandfathered health plans must cover women's preventive care services, including contraception, without charging a co-pay or deductible. This rule is effective as soon as August 2012 for some plans.

Churches, other houses of worship and similar organizations are exempt from covering contraception on the bais of their religious objections. However, this exemption does not cover other church-affiliated institutions, such as schools, charities, hospitals and universities.

On February 10, 2012, President Obama announced a proposal to address objections of non-exempt religious organizations. Under the proposal, the organization may choose whether or not to cover contraceptives. The insurance company providing coverage would be required to cover contraception if the religious organization chooses not to.

BACKGROUND

The health care reform law requires non-grandfathered health plans to cover preventive health services without imposing cost-sharing requirements, effective for plan years beginning on or after Sept. 23, 2010. In August 2011, the Department of Health and Human Services (HHS) issued additional preventive care guidelines for women, including contraceptives, effective for plan years beginning on or after Aug. 1, 2012.

On Aug. 3, 2011, HHS issued an amendment to the women's preventive care guidelines to allow certain non-profit religious employers offering health coverage to decide whether or not to cover contraceptive services, consistent with their beliefs. A non-profit religious employer, for this purpose, is an employer that has the inculcation of religious values as its purpose, primarily employs persons who share its religious beliefs and primarily serves persons who share its religious beliefs. This exemption covers churches and similar organizations.

On Jan. 20, 2012, HHS announced a one-year delay to the contraceptive coverage requirement for non-profit employers that do not qualify for the exception and do not provide contraceptive coverage to employees based on religious beliefs. Church and religious leaders objected, arguing that the coverage requirement violates their organizations' religious freedoms and that the delay is not an adequate solution. According to the White House, the President's proposal is an attempt to balance religious liberty with the health of women.

WHITE HOUSE PROPOSAL

There will continue to be a one-year transition period for non-exempt religious organizations. During the transition period, a new regulation will be drafted. Under the new regulation, religious organizations, such as schools, charities, hospitals and universities, will not have to provide contraceptive coverage, refer their employees to organizations that provide contraception or subsidize the cost of contraception.

However, under the new regulation, female employees of these entities will receive free preventive care that includes contraceptive services. Specifically, contraception coverage will be offered to women by their employers' insurance companies directly, free of charge, with no role for religious employers that oppose contraception.